Category: US Department of Justice

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 Richard D. Bennett sentenced Godlove Nche Manchoe, age 44, of Bowie, Maryland, yesterday to 46 months in federal prison, followed by two years of supervised release, for conspiracy, and for illegally exporting firearms and ammunition from the United States to Nigeria without obtaining the required licenses from the U.S. State Department.  According to trial testimony and court documents, the purpose of the conspiracy was to assist separatists fighting against the government of Cameroon. 

The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge James C. Harris of Homeland Security Investigations (“HSI”) Baltimore; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) Baltimore Field Division; and Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (“DCIS”) – Mid-Atlantic Field Office.

According to his plea agreement, from at least November 2017 until July 19, 2019, Manchoe and his co-conspirators agreed to export firearms, ammunition and other military-type items in violation of the federal smuggling statute, the Arms Export Control Act and other export laws.  Manchoe participated in meetings of the conspirators, both online and in person, including in the basement of co-conspirator Tamufor St. Michael’s residence, where the conspirators, including Manchoe, also reloaded ammunition, assembled firearms, and wrapped various items for overseas shipment.  Manchoe also donated and forwarded funds received from other co-conspirators to St. Michael, to be used towards the purchase of ammunition and/or weapons in furtherance of the conspiracy. 

As detailed in his plea agreement, in December 2018, a shipping container, with a 1989 Toyota truck inside, was delivered to the street outside St. Michael’s residence for the conspirators to use to export the firearms, ammunition and other items.  St. Michael and other co-conspirators then loaded the container, secreting weapons, ammunition and other military-type items inside the truck and multiple compressors.  The container was sent to the Port of Baltimore for export, departing on January 17, 2019, with a destination of Onne, Nigeria.  The conspirators caused the electronic export information (“EEI”) to be filed with the Department of Commerce listing the contents of the container as one Toyota Tundra truck, one 1989 Toyota truck, and “doors and frames.”  The EEI also listed the U.S. Principal Party in Interest as an individual with the initials M.A.O. and a non-existent address.  The telephone number listed for M.A.O. corresponded with a pre-paid cellular telephone. 

Approximately one month later, the shipping container was ordered returned to the Port of Baltimore and on May 20, 2019, law enforcement personnel in Baltimore unsealed the container and examined its contents.  In addition to the trucks and what appeared to be the contents of an old schoolhouse, the conspirators had concealed firearms, ammunition, rifle scopes, and other items in duffle bags placed in the trucks and in heavily wrapped packages inside sealed compressor units, in the shipping container.  In all, law enforcement recovered from the shipping container 38 firearms, 28 of which had obliterated serial numbers.  The guns included sniper rifles, SKS assault rifles (some with bayonets), other rifles and several handguns.  There were 44 high-capacity magazines, two rifle scopes and over 35,000 rounds of ammunition, as well as military-type items, including boots, pepper spray, zip-tie style handcuffs, hydration packs, and other items.  

Six other members of the conspiracy pleaded guilty to their involvement in the conspiracy.  In April, Judge Bennett sentenced Tse Ernst Bangarie and Edith Ngang each to 46 months of incarceration and an additional three are awaiting are awaiting sentencing.  A jury convicted three other members for the conspiracy, transportation of firearms with obliterated serial numbers, and smuggling following a jury trial in May 2022.  Judge Bennett has sentenced two of those individuals, Eric Fru Nji and Wilson Nuyila Tita, to 63 months of incarceration and the third, Wilson Che Fonguh, is awaiting sentencing.

United States Attorney Erek L. Barron commended HSI, the ATF and DCIS for their work in the investigation.  Mr. Barron recognized the U.S. Department of Commerce, Office of Export Enforcement; the U.S. Department of State, Diplomatic Security Service; the Naval Criminal Investigative Service; and the U.S. Postal Inspection Service for their contributions to the investigation.  U.S. Attorney Barron thanked Assistant U.S. Attorney Kathleen O. Gavin, who is 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/community-outreach.

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Source: United States Department of Justice News

“Nathaniel Chastain exploited his advanced knowledge of which NFTs would be featured on OpenSea’s website to make profitable trades for himself.  Although this case involved trades in novel crypto assets, there was nothing particularly innovative about his conduct — it was fraud.  A jury has found that Chastain is guilty of using inside information for his own personal gain, and he now faces time in federal prison.” 

Source: United States Department of Justice News

A former deputy sheriff with the Dallas County, Alabama, Sheriff’s Office pleaded guilty today in the Southern District of Alabama for sexually assaulting a woman while he was on duty.

According to the superseding information and plea documents, on Jan. 30, 2020, Joshua Davidson, 32, while on duty as a Dallas County Deputy Sheriff, placed the victim in custody and drove her down a dark road to a desolate location where the victim performed oral sex on him against her will. The victim, who reported the assault immediately, was in fear that Davidson would shoot her if she did not cooperate.

“Law enforcement officials who sexually assault women and those in their custody will and must be held accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to take allegations of sexual assault seriously, and vigorously prosecute those who violate the civil rights of people in their custody and prey on vulnerable victims.”

“The people of Dallas County and the Southern District of Alabama deserve better than to have their rights violated by someone sworn to protect them,” said U.S. Attorney Sean P. Costello for the Southern District of Alabama. “Working with our federal, state and local partners, we will continue to bring to justice law enforcement officers who become criminals themselves.”

“All law enforcement personnel who take an oath to protect and serve the American people must be held to a higher standard,” said Special Agent in Charge Paul Brown of the FBI Mobile Field Office. “FBI Mobile remains committed to holding those who do not meet this standard accountable for their actions, especially those who wear the badge.”

Sentencing is set for Aug. 25.

The FBI Mobile Field Office investigated the case.

Assistant U.S. Attorney Andrew Arrington for the Southern District of Alabama and Trial Attorneys Maura White and MarLa Duncan of the Civil Rights Division’s Criminal Section are prosecuting the case.

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.