Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

Damian Williams, the United States Attorney for the Southern District of New York; Stuart M. Goldberg, the Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division; James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); Thomas M. Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”); and Jonathan Mellone, the Special Agent in Charge of the Northeast Regional Office of the U.S. Department of Labor – Office of Inspector General (“DOL-OIG”), announced the arrests today of five defendants on fraud charges: MARK ANGAROLA, ALLISON ANGAROLA, JOSE GARCIA, MICHELLE COX, and LISA MINCAK.  The five defendants are charged with perpetrating a yearslong embezzlement scheme that involved both no-show jobs and disguising personal expenses as purported business expenses.  In addition, three of the defendants — MARK ANGAROLA, GARCIA, and COX — are charged with tax fraud for their failures to report income to the IRS, including income derived from the embezzlement scheme.  MARK ANGAROLA and ALLISON ANGAROLA were arrested earlier this week in Point Lookout, New York, and were presented in Manhattan federal court before U.S. Magistrate Judge Katharine H. Parker; JOSE GARCIA and MICHELLE COX surrendered today and will be presented in Manhattan federal court before Magistrate Judge Parker; and LISA MINCAK surrendered yesterday and was presented in the Eastern District of Texas before U.S. Magistrate Judge Kimberly C. Priest Johnson.  The case has been assigned to U.S. District Judge Dale E. Ho.

U.S. Attorney Damian Williams said: “As alleged, the five defendants engaged in a brazen, lengthy embezzlement scheme that involved no-show jobs, false timesheets, fraudulent billings, and disguising personal expenses as purported business expenses.  In total, they allegedly bilked a corporate victim out of more than $7 million.  As part of the alleged scheme, the defendants charged an array of personal expenses to a corporate victim, including a cruise, hotels, private car service, gentlemen’s clubs, and more.  Several defendants also allegedly sought to conceal the fraud by failing to report, or pay taxes on, the income they received from the scheme.  Today’s arrests are yet another example of this Office’s commitment to holding accountable those who commit financial fraud.”

FBI Assistant Director in Charge James Smith said: “When an individual puts in an honest day’s work, they deserve to be compensated fairly.  The defendants in this case allegedly sought to do the opposite, scheming to create a dishonest plan involving no-show jobs and reporting personal spending as business.  Through their alleged scam, they received significant benefits including payment, travel, and entertainment.  The FBI will ensure that anyone attempting to benefit from deceit is instead held accountable in the justice system.”

IRS-CI Special Agent in Charge Thomas M. Fattorusso said: “The five defendants allegedly created a web of lies, resulting in a scheme to embezzle millions, while three are additionally charged with evading taxes on their illicit gains.  Though it’s purported they ‘lived the good life’ through this deception, today’s arrests ensure that their very near future won’t be so comfortable.”

According to the allegations in the Indictment:[1]

From at least in or about May 2010 through at least in or about February 2019, the five defendants and others (the “Conspirators”) executed a fraudulent scheme to unlawfully enrich themselves by submitting and causing to be submitted fraudulent invoices and expenses to an information technology (“IT”) services company (the “Contractor”), at which MARK ANGAROLA was employed in a senior position. 

Specifically, MARK ANGAROLA was a Global Account General Manager at the Contractor, working out of the Contractor’s office in New York, New York.  MARK ANGAROLA was responsible for managing the Contractor’s relationship with a particular client, which was a subsidiary of a global financial institution (the “Client”).  The Contractor had a service contract with the Client, pursuant to which the Contractor would provide IT support services to the Client at locations across the United States.  The Contractor subcontracted certain of its work under the Service Contract to a technology solutions company (the “Subcontractor”) based in New Jersey.  Pursuant to the agreement between the Contractor and the Subcontractor (the “Subcontract”), the Subcontractor provided certain IT support services directly to the Client in the place of the Contractor.  MARK ANGAROLA was responsible for oversight of the Subcontractor’s performance under the Subcontract, which included approving payment to the Subcontractor on invoices submitted for work purportedly performed and expenses purportedly incurred in the Subcontractor’s performance on the Subcontract. 

MARK ANGAROLA used his position at the Contractor — and in particular his oversight of the Contractor’s relationship with the Client and the Subcontractor — to fraudulently enrich himself, his family, and his friends.  For example, MARK ANGAROLA arranged for the Subcontractor to hire certain of his family members, friends, and subordinates, despite the fact that these individuals — which included a schoolteacher, a homemaker, a police sergeant, and a manager in the construction industry — lacked apparent qualifications to perform deskside IT work.  MARK ANGAROLA arranged for the Subcontractor to hire, among others, ALLISON ANGAROLA, JOSE GARCIA, MICHELLE COX, and LISA MINCAK, the defendants.  Thereafter, ALLISON ANGAROLA, GARCIA, COX, MINCAK, and others who MARK ANGAROLA caused to be hired by the Subcontractor, repeatedly falsely reported to the Subcontractor that they had performed work under the Subcontract and incurred business expenses.  GARCIA also used nominee corporate and limited liability entities to further disguise his receipt of funds for purported work performed under the Subcontract, including for alleged “Management Fees” due.  The Subcontractor submitted invoices to the Contractor for the hours purportedly worked by several of the Conspirators, for purported management fees allegedly due and for the purported business expenses incurred by several of the Conspirators in connection with that work, which hours, fees, and expenses were falsely reported to the Subcontractor by the Conspirators.  MARK ANGAROLA, in turn, caused the Contractor to pay the Subcontractor on these fraudulent invoices.

The purported business expenses incurred by several of the Conspirators and ultimately paid for by the Contractor at the direction of MARK ANGAROLA included, among other things, restaurant meals, hotel stays, transportation fees, a cruise, and gentlemen’s clubs.  In fact, the expenses were personal expenses and were not reimbursable.  In addition, to circumvent the Contractor’s expense policies, MARK ANGAROLA charged certain of his own personal expenses — including a private car service that he used for personal travel to restaurants, cigar bars, and gentlemen’s clubs, and to transport his children to visit family regularly and his friends to parties at his residence — to credit cards in the name of co-conspirators, including LISA MINCAK.  MARK ANGAROLA, with the assistance of MINCAK and others, who falsely represented to the Subcontractor that the expenses were incurred in connection with work for the Subcontractor, fraudulently caused the Contractor to pay for such personal expenses of MARK ANGAROLA.

As a result of the scheme, MARK ANGAROLA, ALLISON ANGAROLA, JOSE GARCIA, MICHELLE COX, and LISA MINCAK, and entities controlled by certain Conspirators, received personal benefits, including travel, meals, and entertainment, and were paid substantial sums.  For example, despite the fact that most Conspirators provided few, if any services, to the Client, the Conspirators fraudulently obtained at least the following approximate amounts through this scheme: $1,468,215 to MARK ANGAROLA; $751,641 to ALLISON ANGAROLA; $4,554,950 to JOSE GARCIA and entities he controlled; $335,500 to MICHELLE COX; $88,793 to LISA MINCAK; and $90,521 to Anthony Lisi, a previously charged co-conspirator who pled guilty for his involvement in the embezzlement scheme on September 13, 2022, before U.S. District Judge Paul A. Engelmayer.

Several participants in this fraud scheme also committed related tax fraud by concealing from the IRS substantial income that they had obtained through the scheme.  For several years, MARK ANGAROLA and JOSE GARCIA committed tax evasion, and MICHELLE COX failed to file individual income tax returns.

*                *                *

MARK ANGAROLA, 50, of Point Lookout, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud conspiracy, which carries a maximum sentence of 20 years in prison; and three counts of tax evasion, which each carry a maximum sentence of five years in prison.

ALLISON ANGAROLA, 53, of Point Lookout, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of wire fraud conspiracy, which carries a maximum sentence of 20 years in prison.

JOSE GARCIA, 52, of New York, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud conspiracy, which carries a maximum sentence of 20 years in prison; and three counts of tax evasion, which each carry a maximum sentence of five years in prison.

MICHELLE COX, 52, of New York, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud conspiracy, which carries a maximum sentence of 20 years in prison; and two counts of failure to file an individual income tax return, which each carry a maximum sentence of one year in prison.

LISA MINCAK, 46, of Plano, Texas, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of wire fraud conspiracy, which carries a maximum sentence of 20 years in prison.

The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Williams praised the outstanding efforts of the FBI, IRS-CI, and DOL-OIG.  Mr. Williams also noted that the investigation is ongoing.

This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Michael D. Neff, Timothy V. Capozzi, and Special Assistant U.S. Attorney Jorge Almonte of the Tax Division are in charge of the prosecution.

The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

Earlier today, in federal court in Brooklyn, Tyshawn Corbett, also known as “Reck,” was sentenced by United States District Judge Kiyo A. Matsumoto to 45 years in prison.  In September 2022, the defendant pleaded guilty to three firearm offenses involving murder or assault in-aid-of racketeering, each of which carried a mandatory consecutive term of 10 years. 

Breon Peace, United States Attorney for the Eastern District of New York; James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Edward A. Caban, Commissioner, New York City Police Department, announced the sentence. 

“For years, Corbett inflicted violence on rivals and terrorized the East New York community with impunity, but with today’s sentence, he has been punished for his repeated, flagrant disrespect for the law,” stated United States Attorney Peace.  “My Office is deeply committed to combating gang violence and will continue to work tirelessly with federal and local law enforcement to dismantle these groups.” 

“Everyone who was subjected to the intimidation and brutality perpetrated by Mr. Corbett can breathe easier today with news of this meaningful prison sentence,” stated NYPD Commissioner Edward A. Caban. “The NYPD, in close partnership with our colleagues at the FBI and the office of the U.S. Attorney for the Eastern District, will continue to focus its resources on the relatively small number of criminals responsible for driving the violence in New York City. Neither we nor the people we serve will ever stand for our neighborhoods to be overrun by illegal drugs, guns, and associated gang violence, and I commend the investigators and prosecutors involved in this case for their steadfast commitment to our public safety mission.”

According to court filings and transcripts, Corbett was a long-time member of the East New York-based Elite Assassin Millas (E.A.M.), a set of the Bloods street gang that operated primarily in East New York.  The gang made money through fraud and drug dealing, particularly sales of crack cocaine and marijuana.  The gang’s members murdered or attempted to murder its rivals to maintain its power.  E.A.M. even referred to its East New York-based chapter as “Gun Town” for the level of violence its members and associates committed and perpetuated.  

Within the gang, Corbett developed a reputation as a “shooter” for being willing to shoot and kill other people.  In this case, Corbett pleaded guilty to committing three shootings.  In April 2015, Corbett shot and killed Michael Tenorio.  Then, between 2016 and 2018, Corbett engaged in extensive efforts to stalk and kill another individual (John Doe #1).  Corbett attempted to shoot and kill John Doe #1 in March 2016 but John Doe #1 survived the shooting.  When that murder attempt failed, Corbett and other members of E.A.M. stalked John Doe #1 to try to kill him again.  On June 28, 2018, Corbett located John Doe #1 and fired at him repeatedly at close range, striking him approximately six times.  John Doe #1 survived the shooting but was left paralyzed.  Evidence presented during the trial of a co-defendant showed that Corbett participated in at least four additional shootings over the years.

The government’s case has led to the convictions of six members and associates of E.A.M. in addition to Corbett, including E.A.M.’s leader, Quandel Smothers, who was convicted at trial and is scheduled to be sentenced in March 2024.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Jonathan Siegel, Genny Ngai and Matthew Galeotti are in charge of the prosecution. 

The Defendant:

TYSHAWN CORBETT (also known as “Reck”)
Age: 32
Brooklyn, New York

E.D.N.Y. Docket No. 20-CR-213 (KAM)

Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

This morning, Horst Jicha, a German national, will be arraigned at the federal courthouse in Brooklyn on an indictment charging him with securities fraud and conspiracies to commit securities fraud, wire fraud, and money laundering for his role in a cryptocurrency scheme called USI Tech.  Jicha was arrested, and the charges against him were unsealed when he entered the United States on December 23, 2023 attempting to vacation in Miami, Florida. 

Breon Peace, United States Attorney for the Eastern District of New York and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.

“As alleged, in the early days of crypto, the defendant deployed a multilevel marketing scheme to defraud U.S. investors excited about the crypto market,” stated United States Attorney Peace.  “Although the defendant did not return to the United States for half a decade, my Office and the FBI worked to ensure that when he did, he would be brought to justice.  Our Office is committed to prosecuting any criminal actor defrauding U.S. investors for their own gain, regardless of where in the world they may come from.”

“Too often honest investors fall victim to schemes surrounding emerging financial opportunities. Horst Jicha allegedly advertised a platform that made cryptocurrency investing simple and more accessible to investors, with guaranteed returns.  In reality the platform was  just a facade, and when questions arose, Jicha stole millions of his investors’ money and fled the country.  No matter how long it takes, the FBI will continue to bring to justice criminal financial fraudsters,” stated FBI Assistant Director-in-Charge Smith.

As alleged in the indictment, USI Tech was an online platform that began in Europe and purported to make cryptocurrency investments easy and accessible to the average retail investor.  In reality, it was a multilevel marketing scheme that relied on investors recruiting other investors below them to buy various purported cryptocurrency investments.  Jicha was one of USI Tech’s founders and its Chief Executive Officer.  In 2017, Jicha brought USI Tech to the United States and aggressively marketed it to U.S. retailers on social media and through in-person presentations in which he falsely guaranteed high returns on investments and made false claims about the legality of the platform’s investment offerings. 

In early 2018, after USI Tech faced regulatory scrutiny in the United States, it ceased all U.S. operations overnight, leaving investors with no ability to access their money and resulting in millions of dollars in losses.  Much of the missing money – Ether and Bitcoin valued at approximately $150 million as of the date of his arrest – was sent to cryptocurrency deposit addresses controlled by Jicha after USI Tech ceased operations.  Jicha had not returned to the United States for over five years, until the date of his arrest.  

If you believe that you have been a victim of this crime, please contact USITechFraud@fbi.gov. 

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.

The government’s case is being prosecuted by the Office’s Business and Securities Fraud and General Crimes Sections.  Assistant United States Attorneys Kaitlin Farrell, Genny Ngai, and Daniel Marcus are in charge of the prosecution with assistance from Paralegal Specialist Liam McNett.

Defendant:

HORST JICHA
Age:  64
Germany

E.D.N.Y. Docket No. 23-CR-342 (OEM)

Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

PITTSBURGH, Pa. – A resident of Marianna Borough, Pennsylvania, has been sentenced in federal court to two years of probation, including 90 days of home detention, on her conviction for mail fraud, United States Attorney Eric G. Olshan announced today.

United States District Judge W. Scott Hardy imposed the sentence on Erica Pinkney, 39. A hearing to determine the amount of restitution owed by Pinkney will be held in April.

According to information presented to the court, Pinkney previously served as the Secretary and Tax Collector for Marianna Borough. While employed in those roles, Pinkney used the Borough’s credit cards to pay for personal purchases. Then, to pay toward the balance of those credit cards, Pinkney used money that had been collected from Borough residents as payment for their tax, water, and garbage bills.

Prior to imposing sentence, Judge Hardy stated that Pinkney had committed a serious offense that had eroded public trust in the Borough.

Assistant United States Attorney Jeffrey R. Bengel prosecuted this case on behalf of the government.

United States Attorney Olshan commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Pinkney.

Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

HUNTINGTON, W.Va. – Kayla Dawn Powell, 37, of Hurricane, and Donald James Duty, 52, of Huntington, pleaded guilty today to distribution of fentanyl. Powell and Duty admitted to their roles in a drug trafficking organization (DTO) responsible for distributing large quantities of methamphetamine and fentanyl in the Huntington area.

According to court documents and statements made in court, Powell admitted to participating in the distribution of methamphetamine and fentanyl with others from at least June 2023 through November 2023. During that period, Powell received quantities of methamphetamine and fentanyl from a source or from others at the source’s direction in the Huntington area that she distributed to various customers in the Southern District of West Virginia.

On June 6, 2023, Powell sold approximately 3.6 grams of fentanyl to a confidential informant for $250 in a vehicle parked at a business on MacCorkle Avenue in St. Albans. Powell admitted to the transaction and to arranging it with the confidential informant beforehand.

On November 15, 2023, law enforcement officers executed a search warrant at Duty’s Jackson Avenue residence in Huntington and seized 19 firearms, approximately 73 grams of suspected fentanyl and approximately 108 grams of suspected methamphetamine. Duty admitted that he intended to distribute the seized fentanyl and methamphetamine.

Powell is scheduled to be sentenced on May 28, 2024, and Duty is scheduled to be sentenced on May 20, 2024. Each faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.

Powell and Duty are among 27 individuals indicted in a 53-count indictment that charges the defendants with distributing methamphetamine and fentanyl transported from Detroit, Michigan, in Huntington and other locations within the Southern District of West Virginia. Co-defendant Denzil Roger Grant II, 50, of Hurricane, pleaded guilty to possession with intent to distribute a quantity of methamphetamine on January 17, 2024, and awaits sentencing. The indictment against the other defendants remains pending. An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Cabell County Sheriff’s Department, the Drug Enforcement Administration (DEA), the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the U.S. Postal Inspection Service. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.

United States District Judge Robert C. Chambers presided over the hearings. Assistant United States Attorneys Joseph F. Adams and Stephanie Taylor are prosecuting the case.

The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-180. 

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Source: Federal Bureau of Investigation (FBI) State Crime News

Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on January 18, 2024, Anthony J. Michalek (age: 38) of Langlade County, Wisconsin, was sentenced to 180 months’ imprisonment for receiving obscene visual depictions of the sexual abuse of children, in violation of Title 18, United States Code, Section 1466A, and for doing so while being required to register as a sex offender.

At Michalek’s sentencing hearing, Senior United States District Judge William C. Griesbach noted the horrific nature of the defendant’s actions and the effect that his actions have on child victims.  Senior Judge Griesbach also stressed the danger Michalek presents to the community given his status as a repeat offender, having been convicted in 2007 of sexual assault in Dane County, Wisconsin. Following his release from prison, Michalek will spend 20 years on supervised release and will continue to be required to register as a sex offender under state and federal law.

This case was investigated by the Langlade County Sheriff’s Office and the Green Bay and Wausau Offices of the Federal Bureau of Investigation.  It was prosecuted by Assistant United States Attorney Daniel R. Humble.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

# # #

For Additional Information Contact:

Public Information Officer

Kenneth.Gales@usdoj.gov

414-297-1700

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Source: Federal Bureau of Investigation (FBI) State Crime News

MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Tyler Hansen, 52, Fort Atkinson, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 7 years in federal prison for wire fraud and money laundering. His wife, Jennifer Hansen, 43, was sentenced by Judge Conley to 33 months in prison for money laundering. The Hansens pleaded guilty to these charges on October 4, 2023.  

Between October 2020 and September 2022, Tyler Hansen operated a home improvement business based in Dane County and Jefferson County. The business  operated under multiple names, including Weathersealed Wisconsin and EcoView Windows of South-Central Wisconsin. Hansen entered into contracts for home improvement projects with customers throughout Wisconsin, knowing that he did not intend to order supplies for the jobs or otherwise start the projects. The contracts were for various home improvement projects, including windows, sunrooms, bathrooms, roofs, and doors.  When contracts for projects were signed, Hansen required that customers pay 50% of the total contract price as a down payment. Rather than use the money from customer down payments to pay project related expenses, Hansen used the money for personal expenses.  In total, the Hansens stole over $800,000 from over 100 victims across Wisconsin during the fraud scheme.

Hansen, together with his wife, also engaged in money laundering. The Hansens used multiple financial transactions to conceal and disguise the true nature of the funds in their bank accounts and to make it more difficult for clients to receive refunds of their down payments. They deposited down payment checks from customers into multiple business bank accounts then transferred the funds to multiple personal accounts.  

 At the sentencing hearing, Judge Conley called the Hansens’ actions “horrific” because they targeted elderly and vulnerable people and resulted in substantial financial losses. Judge Conley also explained that while both the Hansens lied to victims, Tyler Hansen deserved a longer sentence because he was the driving force behind the scheme and had a prior criminal history.

In order to determine the appropriate amount of restitution owed to the victims in the case, Judge Conley scheduled a hearing for March 15, 2024, at 1:00 pm.

The charges against the Hansens were the  result of an investigation led by the Federal Bureau of Investigation, the Internal Revenue Service, the Wisconsin Department of Agriculture, Trade and Consumer Protection, the Columbia County Sheriff’s Office, and the Walworth County Sheriff’s Office, with the assistance of law enforcement officers and district attorneys’ offices in the following counties in Wisconsin:  Richland, Vernon, Grant, Dane, Fond Du Lac, Green Lake, Jefferson, Vilas, Walworth, Waukesha, Iowa, Kenosha, Adams, Columbia, Green, Monroe, Rock, Sauk, Winnebago, Sheboygan, Dodge, and Brown. Assistant U.S. Attorney Aaron Wegner handled the prosecution.  

Source: Federal Bureau of Investigation (FBI) State Crime News

NEWPORT NEWS, Va. – A federal grand jury returned an indictment yesterday against a Hampton-based landlord for using force and threats of force against African American victims, including a businessman, a city official in Newport News, and four tenants. The indictment further charged the landlord with defrauding tenants and the government to obtain rent relief benefits, housing assistance payments for public housing, and other funds to which he was not entitled.

According to the indictment, David L. Merryman, 58, owns more than 60 rental properties in Hampton and Newport News. As alleged, Merryman repeatedly harassed his tenants with racist slurs, threats to kill or injure, and retaliatory eviction actions. The alleged threats and racial harassment were often highly graphic and included references to slavery and mocking comments about the Black Lives Matter movement. In addition, Merryman allegedly engaged in physical assaults and other threatening behavior towards tenants, including on one occasion striking a tenant in the face with a shovel and on another occasion attacking a tenant with the blade of a chainsaw while it was off.

According to the indictment, Merryman also orchestrated a scheme to defraud the government and his tenants. For example, the indictment alleges that, to obtain housing-assistance payments from the Department of Housing and Urban Development (HUD), Merryman repeatedly made false representations about the condition of his rental properties and whether he was receiving other payments that would be duplicative of federally funded rental assistance. Merryman also submitted fraudulent applications for rent-relief benefits made available during the COVID-19 pandemic by allegedly stealing the identities of his tenants and forging their signatures without their consent. In many cases, Merryman obtained significant sums of rent relief without telling the tenants, all the while evicting, or seeking to evict, the tenants for unpaid rent.

As alleged, Merryman also defrauded tenants by obtaining money and property from them under false pretenses—primarily false representations that he would repair his properties or repay tenants for repairs they made, which served to induce tenants to pay him significant upfront fees for neglected, even uninhabitable, properties that Merryman never intended to improve. The indictment further alleges that Merryman’s conduct was part of a pattern in which he would demand significant initial fees or deposits from prospective renters and then subject those same tenants to racist and discriminatory practices, in part so they would leave the property, which would allow Merryman to start the cycle again with new tenants.

Merryman is charged with ten counts of wire fraud, four counts of interfering with housing rights, two counts of interstate communications with threats to injure, six counts of theft of government money, four counts of making false statements to HUD, and four counts of aggravated identity theft. If convicted, Merryman faces a mandatory minimum sentence of two years in prison for each count of aggravated identity theft, and maximum terms ranging between one year and twenty years in prison on each of the remaining counts. 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; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Rae Oliver Davis, Inspector General of the Department of Housing and Urban Development, made the announcement.

Assistant U.S. Attorneys D. Mack Coleman, Julie D. Podlesni, and Brian J. Samuels are 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. 4:24-cr-4.

An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.

Source: Federal Bureau of Investigation (FBI) State Crime News

POCATELLO – Rydon Clyde Teton, 38, who is a member of the Eastern Shoshone Tribe of Fort Washakie, Wyoming, and a resident of Fort Hall, Idaho, was sentenced to 253 months in federal prison for the shooting death of another man in January 2018, on the Fort Hall Indian Reservation, U.S. Attorney Josh Hurwit announced today.

According to court records, on February 2, 2018, the Fort Hall Police Department and the Fort Hall Fire Department were called to a residence on the Fort Hall Indian Reservation for a fire at a home.  Witnesses said they saw a fire inside the home and entered to investigate.  The witnesses found a deceased and burned body, which they moved to the porch, and they then called police.  The fire was extinguished and the body was identified as that of the victim, who had been shot several times days earlier.  The law enforcement investigation led to Teton, who reportedly had earlier been seen carrying a gun.  Officers located Teton at a trailer park in Pocatello, where Teton’s gun was located.  Teton was interviewed by Fort Hall police and FBI agents.  Teton stated that he and the victim had an argument about a debit card.  Teton said he and the victim struggled and Teton then had the idea to shoot the victim, which he did.  He admitted later burning the body.  He also admitted using his gun to commit this violent crime.

The 253-month sentence imposed by Chief U.S. District Judge David C. Nye is a combined sentence consisting of 133 months for the voluntary manslaughter charge and a consecutive 120 months for the use of the firearm in committing the killing.  Chief Judge Nye ordered Teton to pay restitution in the amount of $68,339.11 for the victim’s funeral expenses and for his lost tribal income, which is to be paid to the victim’s minor child.  Judge Nye also ordered Teton to serve five years of supervised release following his prison sentence.

Judge Nye granted Teton 111 days of credit for the time he served in tribal jail on the same charge before coming into federal custody.  He pleaded guilty to the charge of voluntary manslaughter and to a charge of the use of a firearm in a violent crime on August 16, 2023.

U.S. Attorney Josh Hurwit commended the cooperative efforts of the Federal Bureau of Investigation and the Fort Hall Police Department, which led to the charges.  Assistant U.S. Attorney Jack Haycock prosecuted the case.

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Source: Federal Bureau of Investigation (FBI) State Crime News

A federal jury convicted Cody Paul Miller, 46, of Collinsville and a member of the Cherokee Nation, Friday for Sexual Abuse of an Incapable Victim in Indian Country.

“Cody Miller rationalized his actions knowing the victim was intoxicated. This is unacceptable and criminal,” said U.S. Attorney Clint Johnson.  “This office and our law enforcement partners will bring to account those who commit acts of sexual violence.”

According to court documents, the 18-year-old victim was staying the night at Miller’s house with two of her friends, whom were both under 18 years of age. The victim brought alcohol to Miller’s home and began consuming it with Miller. Miller told the police that the victim was intoxicated, but he engaged in several sexual acts with her, none of which the victim remembered. Later, the victim woke up to Miller sexually assaulting her. She repeatedly asked the defendant to stop, and he did not. After leaving Miller’s home, the victim went to a friend’s home where she disclosed what Miller did. After receiving encouragement from her friend, the victim contacted police.

When the defendant was questioned by police, he told officers that the victim “got drunk really fast that night” and even “fell off the bed” because she was so drunk. Miller told law enforcement that the intimacy was mutual and that he stopped when the victim asked him to stop.  

Miller will remain in custody until he is sentenced at a later date. He faces up to life imprisonment. The FBI and Collinsville Police Department investigated the case. Assistant U.S. Attorneys Valeria G. Luster and Matthew P. Cyran prosecuted the case.