Former NBA Player Sentenced for False Tax Returns, Identity Theft Related to Charity Fraud Scheme

  A former professional basketball player was sentenced in federal court today on charges related to an extensive charity fraud scheme.

Kermit Alan Washington, 66, of Las Vegas, Nev., was sentenced by U.S. District Judge Greg Kays six years in federal prison without parole. The court also ordered Washington to pay $967,158 in restitution. Washington was taken into federal custody at the conclusion of today’s sentencing hearing.

“This former NBA player abused his fame and status to promote a charity scam by which he raised hundreds of thousands of dollars that he diverted to personal spending on lavish vacations, shopping sprees, and even plastic surgery for his girlfriend,” said Garrison. “Although he told his donors that 100 percent of all donations would go to support charitable work in Africa, including a medical clinic for needy families and HIV-positive children, in fact he spent most of the donated funds on himself. His fraud scheme also victimized law-abiding taxpayers by stealing from the public treasury rather than paying taxes owed.”

On Nov. 30, 2017, Washington pleaded guilty to two counts of filing a false tax return and one count of aggravated identity theft. Washington is among 11 defendants who have been convicted in several cases arising from the investigation of one of the largest software piracy schemes ever prosecuted by the U.S. Department of Justice. Investigators seized more than $20 million in assets from conspirators who are estimated to have sold in excess of $100 million worth of illicit, unauthorized and counterfeit software products to thousands of online customers.

eBay/PayPal Software Piracy Fraud Scheme

Washington’s charity, The Sixth Man Foundation, doing business as Project Contact Africa, operated an eBay store and used a PayPal account to facilitate payments. Approximately $12 million in items, including unauthorized, illicit, and counterfeit software and software components were sold on the Project Contact Africa eBay store.

In a separate but related case, Reza Davachi of Damascus, Md., pleaded guilty to a fraud scheme for abusing the benefits afforded a charity in these sales on Project Contact Africa’s eBay store.

Customers of the charity’s eBay store were under the impression that “100 percent” of the proceeds of sales were intended to go to the charity when, in fact, only a portion of the proceeds actually went to the charity. Washington admitted that he diverted funds from the charity’s bank account to pay himself or for personal spending, such as rent, credit card payments, vacation trips and plastic surgery for his then-girlfriend. Washington claimed to pay the rent and school fees for a family in Africa when, in fact, these payments were to a former prostitute, and rose and fell depending on their level of sexual intimacy.

By using the charity’s account to sell items through the eBay charity store, conspirators saved thousands of dollars per month that would have otherwise been paid to eBay in the form of various fees. As a result, eBay/PayPal sustained losses of approximately $908,231 due to the waived fees.

Workers’ Compensation Referral Scheme

Washington also admitted that he referred professional athletes to attorney Ronald Jack Mix, 80, of San Diego, Calif., so that Mix could file workers’ compensation claims in the state of California on behalf of the athletes. Mix then agreed to make donations to Washington’s charity.

Washington accepted approximately $155,000 in donations to his charity, which were actually illegal referral payments from Mix and his law firm. Washington diverted those funds from the charity’s bank account to pay himself or for personal spending. Washington admitted that he failed to account for this income to the charity on Project Contact Africa’s IRS filings during those years.

In a separate but related case, Mix pleaded guilty to filing a false tax return. Mix admitted that he made donations ranging from $5,000 to $25,000 for referrals of athletes, some of whom lived in the Western District of Missouri. Mix then claimed those payments as charitable contributions on his individual tax returns from 2010 to 2013. Mix was sentenced to time served and ordered to pay $49,543 in restitution.

False Tax Returns, Identity Theft

According to court documents, Washington diverted charity proceeds and failed to declare this income on federal income tax returns from 2010 to 2014. During this time, Washington also improperly claimed tens of thousands of dollars in personal charitable deductions. Washington’s additional tax due for his underreported income is $90,181. 

Additionally, Washington is assessed $876,977 in excess benefit taxes related to the payment of excess benefits to a disqualified person (the use of charity funds for personal purposes by an officer of a charity). Washington’s accumulated tax loss for 2010 through 2014 thus totals $976,158.

Washington specifically pleaded guilty to filing a materially false individual tax return on Feb. 18, 2014, and to filing a materially false Form 990-EZ for his tax-exempt organization on Aug. 20, 2012.

Washington also specifically pleaded guilty to using the name, personal address and business address of another person without lawful authority in numerous state and federal filings on behalf of the charity. The identity theft victim, identified in court documents as “T.G.”, was a resident of Oregon. Washington admitted that he used her identity information so that Project Contact Africa could maintain its active status within the state of Oregon, which enabled the charity to receive the charitable donations and to maintain the charity store on eBay.

Two Defendants Arrested For Distribution Of Controlled Substances Through Sham Internet Pharmacy

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Valerie Nickerson, the Special Agent in Charge of the New Jersey Office of the Drug Enforcement Administration (“DEA”), and Judy Ramos, the Acting Inspector in Charge of the New Jersey Office of the United States Postal Inspection Service (“USPIS”), announced today that EVELIN BRACY and JORGE RODRIGUEZ LOPEZ were arrested and charged in Manhattan federal court with conspiracy to distribute controlled substances, including oxycodone, hydrocodone, and more than 40 grams of the fentanyl analogue U-47700, distribution of controlled substances over the Internet, and conspiracy to commit money laundering, in connection with a large-scale drug distribution operation  purporting to be an online pharmacy.  BRACY and RODRIGUEZ LOPEZ were both arrested this morning.  Both defendants will be presented today before U.S. Magistrate Judge Sarah Netburn. 

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As alleged, Evelin Bracy and Jorge Rodriguez Lopez distributed controlled substances to individuals throughout the United States as part of a drug trafficking organization that sold pharmaceuticals through a website purporting to be an online pharmacy.  Bracy and Rodriguez Lopez allegedly conspired to distribute oxycodone, hydrocodone, and a fentanyl analogue, and laundered hundreds of thousands of dollars in narcotics trafficking proceeds. Thanks to the outstanding investigative work of the DEA and USPIS, these two defendants are now facing prosecution.”  

DEA Special Agent in Charge Valerie Nickerson said:  “The two individuals arrested allegedly have been distributing powerful narcotics not just in New Jersey, but across the United States, based on orders place through a supposed online pharmacy.  This very profitable, alleged illegal endeavor has come to an end thanks to the hard work of the men and women of the DEA and the USPIS.  Whether on a street corner or in cyberspace we will continue to pursue those pushing these drugs in our communities.”

USPIS Acting Inspector in Charge Judy Ramos said:  “Postal Inspectors, federal prosecutors and our law enforcement partners have diligently worked to identify and disrupt the activities of an online pharmacy suspected of peddling illegal pills and money laundering.  Postal Inspectors will continue to tirelessly investigate these types of crimes that utilize the U.S. Postal Service to facilitate illicit transactions.”

According to the allegations in the Complaint[[1]] unsealed today in Manhattan federal court:

Law enforcement agents began investigating an online pharmacy website (the “Pharmacy Website”) following an overdose death of a victim in Boise, Idaho, on or about March 17, 2017, whose death was caused by elevated levels of multiple prescription opioids as well as fentanyl. The victim’s computer showed that he had repeatedly ordered painkillers from the Pharmacy Website, and that he had wired thousands of dollars to a bank account in connection with these purchases.  Law enforcement subsequently discovered that this bank account was being used by BRACY and RODRIGUEZ LOPEZ.  Bank records show that this bank account and several others used by BRACY have received over $750,000 in apparent narcotics proceeds, and that BRACY and RODRIGUEZ LOPEZ have withdrawn hundreds of thousands of dollars in cash from these accounts, and have also used these bank accounts to pay for costs associated with the drug distribution operation, including the costs of shipping controlled substances.

In the course of the investigation, undercover law enforcement agents conducted multiple purchases of controlled substances from the Pharmacy Website, and received instructions to send payment for these drugs to BRACY and RODRIGUEZ LOPEZ.  The substances purchased by undercover law enforcement agents included substances that tested positive for oxycodone and hydrocodone.

The investigation has revealed that in some cases customers purchased what they believed to be prescription drugs such as alprazolam or oxycodone from the Pharmacy Website, but instead received pills containing other substances.  In the course of the investigation, law enforcement agents seized a package that had been sent to RODRIGUEZ LOPEZ, and recovered over 200 pills weighing over 40 grams.  These pills tested positive for U-47700, which is a fentanyl analogue listed on Schedule I.

BRACY, 34, and RODRIGUEZ LOPEZ, 32, who both reside in New Brunswick, New Jersey, have each been charged with one count of conspiracy to distribute controlled substances including at least 40 grams of the fentanyl analogue U-47700, which carries a maximum sentence of 40 years in prison and a mandatory minimum sentence of five years in prison, one count of distribution of controlled substances over the Internet, which carries a maximum sentence of 40 years in prison and a mandatory minimum sentence of five years in prison, and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.  The maximum potential 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. Berman praised the investigative work of the DEA and USPIS in this investigation. He added that the investigation is continuing.

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

[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

BRONX MAN SENTENCED TO 25 YEARS IN PRISON FOR MURDER OF WOMAN ON THANKSGIVING EVE 2014

Victim And Defendant Lived On Same Block; She Was Stabbed Repeatedly 

  Bronx District Attorney Darcel D. Clark today announced that a 52-year-old Bronx man was sentenced to 25 years in prison following his conviction for first-degree Manslaughter in the stabbing of a 53-year-old woman on Thanksgiving Eve in 2014. 

  District Attorney Clark said, “The defendant stabbed the victim, whom he was acquainted with, over 20 times. He will now serve many years for the vicious crime he committed. Hopefully this sentence will bring some justice for the victim’s loved ones.” 

 District Attorney Clark said the defendant, Antonio Gonzales, 52, of 105 East Clarke Place, was sentenced today by Bronx Supreme Court Justice Steven Barrett to 25 years in prison and five years post-release supervision. The defendant pleaded guilty to first-degree Manslaughter on June 12, 2018. 

 According to the investigation, on November 27, 2014 the defendant went to 121 East Clarke Place, the home of the victim, Cynthia Taylor. The defendant stabbed the victim more than 20 times, striking her in the neck and torso. The defendant said in previous statements that he hit, kicked, and stabbed the victim with scissors. The defendant was arrested for the killing on September 22, 2016 after his DNA was matched to the crime scene.

State Senator Gustavo Rivera Introduces Dakota's Law To Protect Children in New York State From Lead Poisoning

Legislation Will Implement Stronger, More Proactive Measures To Address Lead Poisoning and Exposure of Children in Public and Private Housing Across New York State

Senator Rivera Partnered with NYCHA Resident and Leader Tiesha Jones To Create This Bill After Jones' Daughter, Dakota, Suffered Permanent Developmental Challenges from Extended Lead Exposure 

  State Senator Gustavo Rivera introduced 'Dakota's Law' in the State Senate - a bill that will establish a comprehensive system of preventive measures to address elevated blood lead levels and lead poisoning in all children in New York State. Whether in public or private housing, this bill will expand screening and testing to all children in New York State under 18 years old, prompt adequate action by healthcare providers to report elevated blood lead levels to their local health officers, and trigger proactive action to mitigate the source of lead exposure. Further, this bill will enhance protocols for parents, guardians, healthcare providers, state and local health officers, private property owners, and public housing officials to take proactive action to prevent lead poisoning in children. 

If enacted, Dakota's Law would: 

• Lower the definition of elevated blood lead levels from 10 micrograms to 5 as recommended by the Center for Disease Control and Prevention (CDC). Triggering action at 5 micrograms allows time to address exposure before it causes permanent damage.

• Raise the age of children who are protected and screened under state law from 6 years of age to up to 18 years old.

• Require physicians to report elevated blood lead levels of 5 micrograms or more found in screening and testing of any child under 18 years old to the local or state health department.

• Create a hotline for physicians to report elevated blood lead levels that would activate health officers across the state to conduct investigations in private or public housing units.

• Require that the state assist any local health office with investigations if need be.

• Mandate private insurers and Medicaid to cover screening and testing.

• Include lead exposure testing and elevated blood lead levels on the statewide immunization information system.

• Add questions to a lead exposure risk assessment to check if children were screened and tested at 12 and 24 months old so parents and physicians can assess potential risk or need for additional screening and testing.

The introduction of this bill comes due to mounting concerns about the presence of lead in public housing units in New York City, which had not been adequately inspected for years. The bill was drafted with the input and support of Senator Rivera's constituent, Tiesha Jones, President of the NYCHA Bailey Houses Residents' Council, whose daughter, Dakota, suffered permanent developmental challenges due to a prolonged exposure to lead at her public housing unit during her early childhood years. Despite Jones' efforts to secure medical attention for her daughter and asking for the appropriate lead testing each year, steps were not taken to eliminate the sources of exposure inside her home before the poisoning had reached levels that irreversibly endangered Dakota's overall development.

"Tiesha Jones' leadership in our community consistently inspires me, but her fight to prevent lead poisoning and exposure in children across New York after what happened to her daughter, is truly remarkable," said State Senator Gustavo Rivera. "Our partnership in writing Dakota's Law will create stronger requirements to protect all New York children from lead poisoning and to address lead exposure in homes across our State. We must do everything in our power to find tangible solutions to end lead poisoning in New York State and ensure our children live in safe and healthy environments."

"We would like you to review your updated quote in particular: "Dakota's Law gives parents a sense of hope for their children's well being and for a healthier future free of lead poisoning and its terrible effects," said Tiesha Jones, Dakota's Mother and President of the NYCHA Bailey Houses Residents' Council. "My ultimate goal is to ensure that all children in New York State, whether in public housing or in a private home, are tested more frequently for elevated blood lead levels during their childhood and that all doctors report them to their local health agencies to quickly determine the source of lead exposure. I don't want child in our State to go through what Dakota did and this law will prevent precisely that."

Recent reports revealed disparities in the number of children reported to have elevated blood lead levels in New York City. According to the NYC Department of Health and Mental Hygiene, there were 820 children six years old and younger living in public housing who had blood lead levels of 5 micrograms or more between 2012 and 2016, while there were 4,928 children across the City with this kind of exposure in 2016 alone. This bill aims to address the critical need for a lower microgram level and to enhance protocols to protect children both in private and public residences. Although the CDC recommends to consider blood lead levels elevated at 5 micrograms, the legal requirement in New York State is to act when those levels are at 10 micrograms. Dakota's Law will codify the CDC's recommendation since children with 10 micrograms are already highly susceptible to developmental damage. In addition, currently only children 6 years and younger activate the investigative requirements in New York State. Under Dakota's Law, children up to 18 years old will be included in these enhanced protections.

This comprehensive bill seeks to provide a mechanism to connect key stakeholders in the fight to end lead exposure and poisoning in New York State. Parents, guardians, and family caretakers will have more resources to help children in their care. Physicians and other authorized practitioners will become instrumental in the process of evaluating lead levels in children and will expand their mandatory reporting requirements to prompt appropriate action. State and local health officers will be responsible for addressing reports of elevated blood lead levels in children and will receive more information about where children are potentially being exposed to lead. Public housing officials will have a legal mandate to take actions to address signs of lead poisoning in all children proactively. School Administrators will be able to access information about elevated blood lead levels in their students' immunization record in order to appropriately address any special education needs a child may have resulting from developmental delays from lead exposure.

Trump White House Continues To Attack Cynthia Nixon Over Her Call to #AbolishICE

 Today, the Trump administration put out a statement slamming Cynthia Nixon, invoking the tragedy of September 11th. The statement came just days after Vice President Mike Pence also attacked Cynthia for her calls to abolish ICE. Cynthia issued the following statement in response.

"I do remember 9/11, Donald. When I and many other New Yorkers were running to pick up our kids and make sure our loved ones were safe, you called up FOX News and talked about how you now owned the tallest building in Manhattan. The lesson of 9/11 was not that we need to tear families apart. It was that our country is strongest when we stand together."

DiNAPOLI RELEASES BOND CALENDAR FOR THIRD QUARTER

Tentative Schedule Includes $9.05 Billion of New Money, Refunding and Reoffering Debt Sales

  New York State Comptroller Thomas P. DiNapoli today announced a tentative schedule for the planned bond sales for the state, New York City and their major public authorities during the third quarter of 2018. 

The planned sales of $9.05 billion include $5.45 billion of new money and $3.6 billion of refundings as follows:

·  $5.76 billion scheduled for July, of which $3.45 billion is new money and $2.31 billion are refundings; 

· $1.99 billion scheduled for August, of which $700 million is new money and $1.29 billion are refundings; and

· $1.30 billion scheduled for September, all of which is new money.

The anticipated sales in the third quarter compare to past planned sales of $4.29 billion during the second quarter of 2018, and $8.58 billion during the third quarter of 2017. 

The State Comptroller’s office chairs the Securities Coordinating Committee, which was created by Gubernatorial Executive Order primarily to coordinate the borrowing activities of the state, New York City and their respective public authorities.  All borrowings are scheduled at the request of the issuer and done pursuant to their borrowing programs. 

A new schedule is released every quarter and updated as necessary. The schedule is released by the committee to assist participants in the municipal bond market. It is contingent upon execution of all project approvals required by law. The collection and release of this information by the Office of the State Comptroller is not intended as an endorsement of the proposed issuances it contains, many of which will be subject to approval by the Office of the State Comptroller. 

The prospective third quarter calendar includes anticipated bond sales by the following issuers: the City of New York, the Dormitory Authority of the State of New York, New York City Housing Development Corp., New York City Transitional Finance Authority, the New York State Environmental Facilities Corporation, the Port Authority of New York & New Jersey, the State of New York Mortgage Agency and the Triborough Bridge & Tunnel Authority.

The detailed forward issuance calendar can be obtained at: www.osc.state.ny.us/pension/scccalendar.pdf

Continued Increase in Federal Regional Violent Crime Prosecutions

 These cases are 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 make our neighborhoods safer for everyone.  Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

June 1 - June 30, 2018

St. Louis, MO – The United States Attorney’s Office will prosecute aggressively violent criminals and drug dealers.  Federal prosecution is a powerful tool in the fight to reduce violent crime.  At least 85% of federal sentences must be served; there is no parole in the federal system.  None.  Sentences are served in prisons far from St. Louis.  Below is a list of defendants prosecuted federally in June as a result of the hard work of police and agents:

Robert Childs, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Don Collins, 36, Jennings, was indicted by a federal grand jury on one felony count of conspiracy with the intent to distribute heroin; possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm.

Joseph Paster, 30, was indicted by a federal grand jury on one felony count of conspiracy with the intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime.

Clifton Hudson, 34, was indicted by a federal grand jury on one felony count of conspiracy with the intent to distribute heroin; possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm.

Daylin Crafton, 30, Florissant, was indicted by a federal grand jury on one felony count of felon in possession of a firearm and ammunition.

Joseph Dixon, Jr., 21, St. Louis, was indicted by a federal grand jury on one felony count of carjacking and possession of a firearm in furtherance of a crime of violence. 

Joey Foster, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Davian Hampton, 39, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Virgil Johnson, 38, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Anthony Langston, 35, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Terrence McGee, 40, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Robert Siebert, 63, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm with an obliterated serial number and user of illegal narcotics in possession of a firearm.

Tredell Wilkes, 40, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Jevin Fossie, 31, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute heroin and possession of a firearm in furtherance of a drug-trafficking crime.

Eric Jackson, 28, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Corzelius Kent, 34, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute a controlled substance; and possession of a firearm in furtherance of a drug-trafficking crime.

Luis Sanchez-Padilla, 21, St. Louis, was indicted by a federal grand jury on one felony count of illegal alien in possession of a firearm.

Anthony Tobias-Haywood, 22, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Clarence Hill, 22, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Terrance White, 31, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Jaleel Adams, 23, St. Louis, was indicted by a federal grand jury on one felony count of distributing acetyl-fentanyl and that the death of a person resulted from the use of such acetyl-fentanyl; possession of a firearm in furtherance of a drug-trafficking crime; and possessed a stolen firearm.

Jesse Calhoun, 51, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Jeremy Dickerson, 27, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking crime.

Michael Dilworth, 29, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Leroy Eason, III, 43, St. Louis, was indicted by a federal grand jury on one felony count of conspiracy to distribute and possess with intent to distribute heroin; felon in possession of a firearm; and possession of a firearm in furtherance of a drug-trafficking crime.

John Ehrsam, 33, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Anthony Ewing, 27, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Dominick Foote, 38, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute a controlled substance; possession of a firearm in furtherance of one or more drug-trafficking crimes; and felon in possession of a firearm.

Danny Harris, 22, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Leona Jackson, 43, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Cyrano Jones, 47, was indicted by a federal grand jury on one felony count of conspiracy to distribute and possess with intent to distribute cocaine base; possession with intent to distribute cocaine base; and possession of a firearm in furtherance of a drug trafficking crime.

Jeffrey Jones, 21, St. Ann, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Avion Kincade, 27, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Jared Levitt, 19, St. Louis, was indicted by a federal grand jury on one felony count of drug user in possession a firearm; possession with the intent to distribute liquid marijuana; and possession of a firearm in furtherance of a drug-trafficking crime.

De’Andre Logan, 18, St. Louis, was indicted by a federal grand jury on one felony count of carjacking and possessing a firearm in furtherance of a crime of violence.

William Young, 25, St. Louis, was indicted by a federal grand jury on one felony count of carjacking and possessing a firearm in furtherance of a crime of violence.

Lorenzo Luna-Espinoza, 22, Midland, TX, was indicted by a federal grand jury on one felony count of illegal alien in possession of a firearm.

Donte Parks, 27, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Clark Roberts, 49, Cahokia, IL, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with the intent to distribute cocaine; and possession of a firearm in furtherance of a drug-trafficking crime.

Travis Robinson, 21, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Devin Thompson, 24, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute fentanyl; and possession of a firearm in furtherance of a drug trafficking crime.

Cory Chandler, 43, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Vinson Griffin, Jr., 35, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute heroin; and possession of a firearm in furtherance of a drug trafficking crime.

Victor Mora, 33, was indicted by a federal grand jury on one felony count of interference with commerce by violence.

Tyrell Phillips, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Jerome Rankins, 24, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Earl Rice, 60, was indicted by a federal grand jury on one felony count of felon in possession of one or more firearms.

Darius Scott, 29, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

John Spudich, Jr., St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Quoc Tran, 22, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Kenneth Watkins, 40, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Emanuel Wesseh, 26, was indicted by a federal grand jury on one felony count of prohibited person in possession of a firearm.

Anthony Williams was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute a controlled substance; and possession of a firearm in furtherance of a drug-trafficking crime.

Brandon Woods, 34, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; interference with commerce by violence; brandishing a firearm in furtherance of a crime of violence; and carjacking.

Roger Goff, 21, was indicted by a federal grand jury on one felony count of felon in possession of a firearm and possession with intent to distribute a controlled substance.

Dyanthany Proudie, 26, St. Louis, pled guilty to felon in possession of a firearm and possession with intent to distribute.

Jamarco Cousins, 30, St. Louis, pled guilty to felon in possession of a firearm.

Anthony Williams, 40, St. Louis, pled guilty to felon in possession of a firearm.

Cortez Cooper, 38, St. Louis, pled guilty to felon in possession of a firearm.

Justin Willis, 24, St. Louis, pled guilty to felon in possession of a firearm.

Domonique Isreal, 25, St. Louis, pled guilty to possession of a firearm in furtherance of a drug trafficking crime.

Christopher Wilson, 28, Omaha, NE, pled guilty to felon in possession of a firearm.

Marlon Adams, 37, St. Louis, pled guilty to felon in possession of a firearm.

Devosha Gray, 19, St. Louis, pled guilty to felon in possession of a firearm.

Alex Wheelis, 27, St. Louis, pled guilty to felon in possession of a firearm.

Donovan Jacobs, 26, St. Louis, pled guilty to felon in possession of a firearm.

Kirk Wallace, 33, St. Louis, pled guilty to felon in possession of a firearm.

William Johnson, 23, St. Louis, pled guilty to felon in possession of a firearm.

Corey States, 40, St. Louis, pled guilty to felon in possession of a firearm.

Andre Adams, 32, St. Louis, pled guilty to felon in possession of a firearm.

Devin Tate, 25, pled guilty to felon in possession of a firearm.

Devosha Gray, 19, St. Louis, pled guilty to felon in possession of a firearm.

Maurice Cooper, 38, St. Louis, pled guilty to felon in possession of a firearm.

Demarco Moorehead, 27, St. Louis, pled guilty to felon in possession of a firearm.

Deandre Thompson, 45, St. Louis, pled guilty to felon in possession of a firearm.

Acotra Weaver, 28, St. Louis, pled guilty to felon in possession of a firearm.

Darryl E. Allen, 50, St. Louis, pled guilty to felon in possession of a firearm.

Tito Santiago, 33, St. Louis, pled guilty to felon in possession of a firearm.

Damen Gascic, 33, pled guilty to felon in possession of a firearm; possession of an unregistered firearm; possession of controlled substance; and possession of a firearm in furtherance of a drug trafficking crime.

Wilbert Anderson, 26, St. Louis, pled guilty to felon in possession of a firearm.

Squacar Gray, 40, St. Louis, pled guilty to felon in possession of a firearm.

Donnell Witherspoon, 37, St. Louis, pled guilty to felon in possession of a firearm.

Melvin Cooper, 49, St. Louis, pled guilty to felon in possession of a firearm.

Damon Catchings, 44, pled guilty to felon in possession of a firearm.

Charles D. Smith, 29, St. Louis, pled guilty to felon in possession of a firearm.

Marvin Williams, 42, St. Louis, pled guilty to felon in possession of a firearm; forcible assault with a firearm; and possession with the intent to distribute marijuana.

Marquis Shores, 35, pled guilty to felon in possession of a firearm.

Sterling Turner, 39, pled guilty to felon in possession of a firearm.

Donovan Jacobs, 26, St. Louis, pled guilty to felon in possession of a firearm.

Deon D. Story, Jr., 38, St. Louis, pled guilty to felon in possession of a firearm.

Justin I. Morrow, 20, St. Louis, pled guilty to armed robbery and discharging a firearm in furtherance of a crime of violence.

Charles J. Jones, 45, St. Louis, pled guilty to felon in possession of a firearm.

Kenneth Foster, 44, St. Louis, pled guilty to felon in possession of a firearm.

Donnell Witherspoon, 37, St. Louis, pled guilty to felon in possession of a firearm.

Kenneth J. Pace, 24, St. Louis, was sentenced to 42 months in prison for felon in possession of a firearm.

Darryl Easley, 48, St. Louis, was sentenced to 96 months in prison for possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime.

Dominique D. Simpson, 26, St. Louis, was sentenced to 46 months in prison for felon in possession of a firearm.

Kenyetta Chapman, 22, Stockton, CA, was sentenced to 27 months in prison for felon in possession of a firearm.

Raynard Davison, 44, St. Louis, was sentenced to 8 months in prison for felon in possession of a firearm.

Amin Suluki-Bey, 48, St. Louis, was sentenced to 114 months in prison for armed robbery and brandishing a firearm in furtherance of a crime of violence.

Rashad Faries, 26, St. Louis, was sentenced to 18 months in prison for receipt of a firearm  while under Indictment.

Joshua Brison, 24, St. Louis, was sentenced to 30 months in prison for importing a firearm/ammunition into the United States.

Johnnie Stewart, 36, St. Louis, was sentenced to 37 months in prison for felon in possession of a firearm.

Demante Syms, 26, St. Louis was sentenced to life in prison for his participation in the killing of three individuals in furtherance of drug trafficking and his tampering with a witness.

Jerome Hughes, 31, St. Louis, was sentenced to 21 months in prison for felon in possession of a firearm.

Anthony Young, 45, St. Louis, was sentenced to 108 months in prison for felon in possession of a firearm.

George Grice, 32, St. Louis, was sentenced to 46 months in prison for felon in possession of a firearm and possession with intent to distribute heroin.

Terrell Raney, 40, St. Louis, was sentenced to 19 months in prison for felon in possession of a firearm.

Chad M. Jackson, 34, Florissant, was sentenced to 30 months in prison for felon in possession of a firearm.

Cory Smith, 29, Fenton, was sentenced to 33 months in prison for possession of a firearm/ammunition.

Jacobi Temple, 27, St. Louis, was sentenced to 50 years in prison for conspiracy to distribute heroin and two counts of discharge of a firearm in furtherance of drug trafficking where deaths resulted.

Ramiro C. Valenzuela, 29, St. Charles, was sentenced to 21 months in prison for felon in possession of a firearm.

Jake Richardson, 24, St. Louis, was sentenced to 36 months in prison for felon in possession of a firearm.

Willie McFarland, 43, St. Louis, was sentenced to 18 months in prison for felon in possession of a firearm.

Quavo D. Williams, 22, Washington Park, IL, was sentenced to 12 years in prison for attempted carjacking and brandishing a firearm in furtherance of a crime of violence.

Michael Thomas-Williams, 35, Hazelwood, was sentenced to 90 months in prison for felon in possession of a firearm.

Michael E. Broom, Jr., 28, St. Louis, was sentenced to 60 months in prison for felon in possession of a firearm.

Dane Reed, 41, St. Louis, was sentenced to 27 months in prison for felon in possession of a firearm.

EDITOR'S NOTE:

If the PROJECT SAFE NEIGHBORHOOD (PSN) program is working in St. Louis, why is not here in New York City?

The above was for June 1 - June 30. One month only. 118 dangerous people taken off the streets of St. Louis. How many could be taken of the streets of New York City?

The population of St. Louis is 320,000 people. The population of New York City is 8,500,000 people. The population of the Bronx is just under 1,500,000 people.

Reputed Godfather of Payday Lending Sentenced to 168 months in Federal Prison

 U.S. Attorney William M. McSwain announced that Charles Hallinan, 77, of Villanova, Pennsylvania, was sentenced today to 168 months in federal prison and ordered to pay a $2.5 million fine in connection with a scheme to collect hundreds of millions of dollars in unlawful debt obtained from high-interest loans. In November 2017, a federal jury convicted Hallinan of all 17 counts of criminal conduct the government charged in its superseding indictment: two counts of conspiracy to violate the Racketeer Influenced and Corrupt Organization Act (“RICO”); one count of conspiracy to commit mail fraud, wire fraud, and money laundering; two counts of mail fraud and aiding and abetting; three counts of wire fraud and aiding and abetting; and nine counts of international money laundering and aiding and abetting.

Hallinan, a former investment banker, was in the payday lending business from at least 1997 to 2013.  Dubbed “the Godfather of payday lending” by the media during his trial, Hallinan owned, operated, and financed companies that issued small-amount, fixed-fee loans and collected debts on these loans in excess of $690 million.  The loans were known in the industry as “payday loans” because borrowers often took them out to cover expenses and then paid back the principal, plus fees and interest, with their next paychecks or other steady income, such as social security payments.  Hallinan made his illegal fortune by charging fixed fees and high interest rates far in excess of what was permitted under states’ usury laws. 

“Charles Hallinan, a sophisticated, highly educated business person, was nothing more than a loan shark whose entire business model was built on trapping his victims in an endless debt cycle,” said U.S. Attorney McSwain. “For years, this defendant unabashedly preyed on those who could least afford it—struggling borrowers who made these loans oftentimes to pay for life’s necessities.  He bet his lifestyle on the fact that we would not catch him. He lost that bet,” McSwain commented. “Now, it’s time for Hallinan to repay his debt with the only currency we will accept: his freedom and his fortune, amassed at his victims’ expense.”

The government proved at trial that Hallinan knew these loans violated state law, so he hid his personal involvement behind a series of “straw” lenders, including a federally-insured bank and three Indian tribes.  Hallinan’s co-defendant, Delaware attorney Wheeler K. Neff, assisted Hallinan in structuring the scam and hiding Hallinan’s involvement.  Neff was sentenced in May 2018 to eight years’ imprisonment for his part in the scheme.

“Charles Hallinan devised an ugly way to make a pretty penny,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division.  “This multimillionaire lived large on the proceeds of his sleazy payday lending empire, built on the backs of people literally living paycheck to paycheck.  Exorbitant fees and usurious interest rates were the name of the game, and Hallinan always walked away the winner.  Well, not this time.  Now he’s walking away in handcuffs, headed to federal prison.”

As part of the sentence imposed today, the government sought and obtained a significant forfeiture judgment against Hallinan, which will strip him of the trappings of success he acquired as a result of his unlawful conduct.  The district court ordered the defendant to pay a forfeiture money judgment of just over $64 million as proceeds of the RICO conspiracy, and also ordered him to forfeit his interest in approximately $1.2 million in funds in 18 bank accounts; two Mercedes Benz vehicles; one Bentley vehicle; and his Villanova mansion.

“IRS Criminal Investigation is committed to using our forensic accounting skills to help unravel complex financial fraud and money laundering schemes,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco.  “We are proud to work with our law enforcement partners to investigate and prosecute individuals who attempt to enrich themselves by fraudulent means. Charles Hallinan’s prison sentence is a reminder that there are detrimental consequences for this type of criminal behavior.”