Month: May 2023

Source: United States Department of Justice News

The Justice Department announced today that it has secured a $450,000 settlement resolving allegations that Salazar Dos Santos, a Chicopee, Massachusetts, landlord, violated the Fair Housing Act by sexually harassing female tenants for at least 11 years. The settlement also resolves claims against the Trusts of Salazar Dos Santos and America Dos Santos, which held the properties where the harassment occurred.

The Justice Department’s lawsuit, filed in 2019, alleged that from at least 2008, Dos Santos subjected multiple female tenants to unwelcome sexual contact, which included coercing them to engage in sex acts, physically sexually assaulting them, exposing himself and locking them in his office to sexually assault them. The lawsuit asserted that Dos Santos implicitly offered to provide relief from rental payment obligations in exchange for engaging in sexual acts with him and threatened tenants who resisted or objected to his unwelcome sexual harassment. It is further alleged that some victims were sexually harassed dozens of times for months (one tenant on more than 40 occasions), and that Dos Santos evicted some tenants after they refused his advances.

“Coercing tenants to engage in sex acts and retaliating against those who resist are among the most egregious forms of sexual harassment that we see today,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains committed to combating sexual harassment in housing, and securing relief for those whose lives have been upended by such dehumanizing and unlawful conduct.”

“Sexual harassment and the conduct alleged here is repugnant and completely unacceptable. Stable and safe housing is fundamental for positive outcomes in life. Insidiously, sexual harassment and violations in the context of housing often target vulnerable tenants who fear eviction and homelessness,” said U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “Although not present in this case, there are also times that immigration status is the manipulation utilized to target and victimize vulnerable tenants. Under the Fair Housing Act, the federal government has the authority to investigate and hold to account predatory landlords and property managers who engage in this despicable conduct. The District of Massachusetts is committed to actively and aggressively investigating these types of cases. Last, but certainly not least, I want to commend the brave women who came forward in this matter.”

Under the proposed consent decree agreed upon by all parties, subject to approval by the U.S. District Court for the District of Massachusetts, the defendants are required to pay a total of $425,000 to compensate individuals harmed by the harassment and a $25,000 civil penalty. The consent decree also bars future discrimination and retaliation, requires that property management responsibilities be turned over to an independent manager, mandates the implementation of a sexual harassment policy, complaint procedure, and Fair Housing Act training and requires detailed reporting regarding property management activities and compliance with the terms of the consent decree. The consent decree permanently bars Dos Santos from participating in any property management responsibilities at any residential rental property.

The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The goal of the department’s initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the department has filed 30 lawsuits alleging sexual harassment in housing and recovered over $10 million for victims of such harassment.

The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. The Civil Rights Division is committed to protecting people from sexual misconduct. More information about the Civil Rights Division and the laws it enforces is available at justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.

Source: United States Department of Justice News

Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher today sentenced Thomas Jones, age 53, of Baltimore, Maryland, to 11 years in federal prison, followed by 11 years of supervised release for conspiracy and for possession with intent to distribute five kilograms of more of cocaine.  

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration (DEA), Washington Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.

According to his guilty plea, in April 2020, DEA investigators with the Baltimore OCDETF Strike Force began an investigation of drug trafficking in West and Northwest Baltimore.  During the investigation, Jones was identified as one of the conspirators who agreed to acquire and distribute controlled substances, including cocaine and crack cocaine.

As detailed in his plea agreement, law enforcement overheard calls between Jones and other conspirators discussing the distribution of cocaine and crack cocaine.  Jones also met with customers and co-conspirators at his home in the 1600 block of Edmondson Avenue to engage in drug transactions and other drug trafficking activities.  On April 29, 2021, law enforcement executed a search warrant at Jones’ home and seized 143 grams of cocaine, 62 grams of crack cocaine, drug packaging material and scales, and $19,965 in cash.  Investigators also recovered a .45-caliber pistol, two standard .45-caliber magazines and one extended magazine clip, and 170 rounds of .45-caliber ammunition from Jones’ home.  Jones admitted that he planned to distribute the cocaine and that the cash represented proceeds of drug trafficking.

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.

This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location.  This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against priority targets and their affiliate illicit financial networks.  These prosecutor-led co-located Strike Forces capitalize on the synergy created through relationships forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime.  The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.

United States Attorney Erek L. Barron commended the DEA and the Baltimore Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys LaRai N. Everett and James T. Wallner, who are prosecuting the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.

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Source: United States Department of Justice News

CONCORD – Dale Stewart, 54, appeared before Magistrate Judge Andrea K. Johnstone for an initial appearance in federal court in connection with two pipe bomb explosions in Weare, New Hampshire, U.S. Attorney Jane E. Young announces.

Stewart, 54, was charged with possessing an unregistered firearm, a destructive device, and possessing a destructive device unidentified by a serial number on April 28, 2023. Stewart remains in custody on state charges.

According to the charging documents, Stewart allegedly constructed and detonated two destructive devices in Weare, New Hampshire on April 26, 2023 and April 27, 2023. In response to the explosions, law enforcement obtained a search warrant for Stewart’s vehicle and retrieved an additional destructive device, constructed of white PVC pipe, with glued end caps, wrapped in black electrical tape, with a green hobby fuse protruding from one of the end caps. The destructive device found in the vehicle contained more than 4 ounces of an explosive material, consistent with the manufacturing of the two recovered suspected pipe bombs from the two separate detonation scenes in Weare, New Hampshire.

The charges of possessing an unregistered destructive device and possessing a destructive device unidentified by serial number provide for a sentence of up to 10 years in prison, and a fine of up to $ 10,000. 

The Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Weare Police Department; and the Federal Protective Service led the investigation. Valuable assistance was provided by Federal Bureau of Investigation, and the New Hampshire State Police. Assistant U.S. Attorney Cesar Vega is prosecuting the case.

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

 

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Source: United States Department of Justice News

            WASHINGTON – A Tennessee man was found guilty in the District of Columbia today of felony and misdemeanor charges for his actions during the Jan. 6, 2021, Capitol breach. 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.

            Joseph “Jose” Lino Padilla, 42, of Cleveland, Tennessee, was found guilty of 10 charges, including eight felony counts and two misdemeanors, following a bench trial before U.S. District Judge John D. Bates, who scheduled sentencing for September 13, 2023. Padilla was charged with two counts of civil disorder; and one count each of assaulting, impeding, or resisting officers; assaulting, resisting, or impeding certain officers with a dangerous weapon; obstruction of an official proceeding; entering and remaining in a restricted building or grounds with a deadly or dangerous weapon; disorderly and disruptive conduct in a restricted building or grounds with a deadly or dangerous weapon; and engaging in physical violence in a restricted building or grounds with a dangerous weapon. He was also convicted of two misdemeanors: disorderly conduct in the Capitol grounds or buildings and an act of physical violence in the Capitol grounds or buildings.

            According to evidence presented in court, Padilla traveled from his Tennessee home to D.C. in response to former President Trump’s December 19, 2020, tweet to “Be there [on January 6th], will be wild!” After reaching the Capitol grounds, Padilla repeatedly pushed against the bike racks on the Lower West Terrace, forced his way into the Tunnel, and threw a flag pole into the Tunnel, striking an officer in the helmet. During the riot, Padilla messaged a family member, “I’ve been beaten. Sprayed and [tased]. Resting before I go in for more,” “Were pushing the door. Had to take a break,” and “It’s not a rally anymore it’s a revolution.”  After the riot, Padilla posted on social media, “[T]he Declaration of Independence, one of our founding documents, specifically gave me the right to do what I did. ‘… it is the Right of the People to alter or to abolish it, and to institute new Government,’” and “Yeah, I’m proud of what I did yesterday. It’s guns next, that’s the only way.” 

            The most serious assault charge and the obstruction charge each carry a statutory maximum sentence of up to 20 years in prison. A federal court judge will determine the appropriate sentence after considering all factors and the U.S. Sentencing guidelines.

            The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia. Valuable assistance was provided by U.S. Attorney’s Office for the Northern District of Texas.

            The case is being investigated by the FBI’s Knoxville and Washington Field Offices, which listed Padilla as #181 on their seeking information photos. Valuable assistance was provided by the U.S. Capitol Police, and the Metropolitan Police Department.

            In the 27 months since Jan. 6, 2021, more than 1,000 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 320 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 News

Fraud Scheme Involved Multiple Law Firms

            WASHINGTON – An indictment was unsealed today charging four people, including two lawyers, with conspiring to defraud thousands of distressed homeowners who thought they were hiring a legal firm to help them avoid foreclosure. The defendants, some of whom were licensed to practice law in Washington, D.C., New Jersey, and Florida, allegedly reaped millions of dollars in ill-gotten gains.

            The indictment charges: David Maresca, 48, of Manassas, Virginia, Scott Marinelli, 51, of Mountainside, New Jersey, Sam Babbs, III, 41, of Orlando, Florida, and Terrylle Blackstone, 35, of Woodbridge, Virginia, with conspiracy to commit wire fraud and mail fraud for charging clients on the false and fraudulent promise to help them avoid foreclosure but never providing any of those legal services. The indictment further charges Maresca, Marinelli, and Blackstone with five counts of mail fraud; Maresca, Babbs, and Blackstone with three counts of wire fraud and two counts of mail fraud; and Maresca with five counts of monetary transactions in criminally-derived property, and two counts of falsification of bankruptcy records. Maresca was arrested today and made an initial appearance in Washington, D.C.; Marinelli was arrested today and made an initial appearance in New Jersey.

            The charges were announced by U.S. Attorney Matthew M. Graves, Special Agent in Charge Wayne A. Jacobs, of the FBI Washington Field Office Criminal and Cyber Division, and Acting Special Agent in Charge Kareem A. Carter of the Internal Revenue Service – Criminal Investigation (“IRS-CI”) Washington, D.C. Field Office.

            Maresca formed Synergy Law LLC (“Synergy”), in Washington DC, in 2016, and Themis Law PLLC (“Themis”) in  2019. Marinelli, who was licensed in New Jersey, owned 10 percent of Synergy; Babbs, who was licensed in Florida and D.C., owned his own firm – Babbs Law Firm P.L. (“Babbs”) – and 10 percent of Themis. Blackstone worked for all three firms.

            According to the indictment, the scheme involved marketing Synergy Law and Themis Law through telephone, television, and Internet advertising which told homeowners that attorneys could help them avoid foreclosure. The defendants, through the law firms, operated  call centers, where workers used scripts during calls with homeowners falsely promising that an attorney would review the homeowner’s case file; that this attorney knew their lender’s “internal guidelines,” for a “mortgage resolution”; and that an assigned “legal team” would contact the homeowner’s lender to negotiate a resolution.

            The conspirators knew these representations were false and fraudulent. Synergy Law and Themis Law never operated a “national law firm,” and never provided legal services to homeowners. Neither Synergy Law nor Themis Law had attorneys review homeowner files, and neither Synergy Law nor Themis Law had attorneys contact a client’s lender to discuss a mortgage resolution. The homeowners signed agreements in which the law firms promised to provide “legal representation,” “attorney services” and “legal services” to the homeowner-client. Synergy Law required homeowner-clients to pay an initial retainer amount (often between $995 and $1,750), followed by a monthly recurring amount (often between $595 and $1,200), for as long as Synergy Law represented the homeowner. Once victim funds were in that account, Maresca, Marinelli, and Blackstone used the funds for their personal benefit, and continued to collect monthly payments from the clients. When the clients faced imminent foreclosure, Synergy Law provided non-legal bankruptcy petition preparation services and directed clients to file pro se bankruptcy petitions to stop foreclosure. Synergy Law directed clients not to disclose that the clients had worked with Synergy Law to prepare their bankruptcy petition. Themis Law clients, who were considering filing for bankruptcy to save their homes, were referred to Babbs Law where they signed a new retainer agreement and paid additional fees.

            When bankruptcy judges, Synergy Law clients, and the U.S. Trustee’s Program raised concerns about Synergy Law’s practices in bankruptcy matters, Blackstone attended court hearings on behalf of Synergy Law and made false statements to the court about Synergy Law’s operations. When Marinelli’s law license was suspended in New Jersey in 2017, and the District of Columbia in 2018, Maresca, Marinelli, and Blackstone continued to operate Synergy Law and collect monthly payments purportedly for legal services.

            Maresca is also charged with falsely filing for bankruptcy on behalf of Synergy Law.  According to the indictment, in answering a question on the bankruptcy forms about financial affairs, which required Synergy Law LLC to list transfers of money or other property that was not in the ordinary course of business, Maresca falsely stated “None,” when he knew he had withdrawn S315,083.42 from Synergy Law accounts to purchase his personal residence.

            The indictment includes a notice of forfeiture for all illegally derived proceeds from the fraud scheme.

            The U.S. Attorney’s Office and the FBI urge anyone who did business with these law firms, and who think they were defrauded, to visit https://www.justice.gov/usao-dc/mortgage-fraud and/or call the FBI at 1-800-CALL-FBI.

            This case was investigated by the FBI Washington Field Office and the Washington, D.C. Field Office of the Internal Revenue Service – Criminal Investigations.

            It is being prosecuted by Assistant United States Attorney John Borchert.

            An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.