District of Rhode Island
Press releases recorded for this federal judicial district.
Providence Man Sentenced to Federal Prison for Trafficking Cocaine and FentanylRead the Press Release
PROVIDENCE – A Providence man, who court records show has been convicted multiple times on various felony drug, firearm, and/or assault charges, has been sentenced to federal prison for trafficking in fentanyl and crack cocaine, announced United States Attorney Zachary A. Cunha.
According to information presented to the court, in early 2020, while on state probation for an unrelated felony firearm conviction in state court, Josimar Pereira, 36, in the course of six transactions in a one-month period, sold a total of more than $6,300 worth of cocaine and fentanyl to another person while under surveillance by members of the FBI’s Rhode Island Safe Streets Gang Task Force. On each occasion, the drugs were quickly seized by Task Force agents.
In December 2022, Pereira pleaded guilty in federal court to a charge of distribution of cocaine and a charge of distribution of fentanyl. He was sentenced on May 15, 2023, by U.S. District Court Judge Mary S. McElroy to forty-four months in federal prison to be followed by three years of federal supervised release,
According to court records, at the time of his arrest in this matter Pereira was serving a term of state probation related to his 2018 conviction in Rhode Island Superior Court on a charge of possession of a sawed-off shotgun or rifle.
The most recent case filed against Pereira was prosecuted in U.S. District Court by Assistant United States Attorney Stacey A. Erickson.
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Pawtucket Man Sentenced to Federal Prison for Trafficking Crack Cocaine While on Supervised ReleaseRead the Press Release
PROVIDENCE – A Pawtucket man, who was previously convicted on federal crack cocaine drug trafficking and firearm charges and incarcerated, has been sentenced to five years in federal prison for again trafficking crack cocaine while on federal supervised release, announced United States Attorney Zachary A. Cunha.
Estefano J. Lobo, 31, who since 2010 has been convicted of felony crimes on eight separate occasions, admitted to a ninth felony before a federal judge. Lobo admitted that, in March 2022, less than a year after leaving federal prison to begin serving a three-year term of federal supervised release, he sold and delivered crack cocaine to another individual and had been dealing crack cocaine for several months.
According to information presented to the court, during an investigation into Lobo’s renewed drug trafficking activity, and while under law enforcement surveillance, Bureau of Alcohol, Tobacco, Firearms and Explosives agents and Pawtucket Police Department detectives witnessed Lobo make a hand-to-hand crack cocaine delivery to another person.
At the time of his arrest, Lobo was found to be in possession of 1.35 grams of crack cocaine and $580 in cash. A court-authorized search of Lobo’s residence resulted in the seizure of 98.45 grams of crack cocaine, $7,652 in cash, and, among other items, tools associated with processing cocaine powder into cocaine base.
Lobo pleaded guilty to his most recent charges in federal court on October 4, 2022, to possessing cocaine base with intent to distribute and possessing cocaine with intent to distribute; he was sentenced on Tuesday by U.S. District Court Judge William E. Smith to a term of 60 months in federal prison to be followed by three years of federal supervised release.
The case is being prosecuted by Assistant United States Attorney Milind M. Shah.
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Administrative Team at R.I. U.S. Attorney’s Office Receives National Award from Department of Justice LeadershipRead the Press Release
PROVIDENCE – On Wednesday of this week, at a Washington, D.C. ceremony attended by Attorney General Merrick Garland, Deputy Attorney General Lisa O. Monaco, U.S. Attorney Zachary A. Cunha, and other senior Department of Justice leadership, seven members of the Rhode Island U.S. Attorney’s Office Administrative Division were honored with a Director’s Award for their exceptional service to this Office and the United States.
“I am intensely proud of the quality and impact of the work that this Office does on behalf of the people of Rhode Island, and the nation, every day,” said U.S. Attorney Cunha. “But while much of our legal work receives public attention, many of the dedicated public servants in this Office, without whom our mission would be impossible, often do not. I am delighted to see our exceptional administrative team receive this well-deserved honor from the Department, and honored to serve alongside these dedicated professionals.”
Presented annually, the Director’s Awards recognize excellence throughout the U.S. Attorney community, honoring exceptional contributions to the Department’s mission by Assistant United States Attorneys in criminal and civil cases, appellate work, litigation in Indian Country, and other programmatic areas, across the 94 federal Districts that comprise the United States. Two Administrative teams were also recognized, one of them from the District of Rhode Island, where Administrative Officer Lynn Danchuk, Executive Assistant Sheila Grant, Contracting Officer Ryan Crotty, Budget Officer Vincent Onorato, Paralegal Supervisor (Ret.) Sandra Mascola, and Litigation Technology Support Specialists Nicole Williams and Michael Ward were each honored with a Director’s Award.
The awards were presented by Monty Wilkinson, Director of the Executive Office for United States Attorneys, in the two-story Great Hall of the Department of Justice, located in the Robert F. Kennedy Building that serves as the Department’s headquarters in Washington, D.C.
Administrative Division Director's Award recipients with United States Attorney Zachary A. Cunha (center) at the Department of Justice (left to right) Contracting Officer Ryan Crotty, Administrative Officer Lynn Danchuk, Litigation Technology Support Specialist Nicole Williams, Litigation Technology Support Specialist Michael Ward, Paralegal Supervisor (Ret.) Sandra Mascola, Executive Assistant Sheila Grant, not shown Budget Officer Vincent OnoratoVessel Operator, Captain and Chief Engineer Convicted of Environmental CrimesRead the Press Release
Zeus Lines Management S.A. (Zeus), a vessel operating company, pleaded guilty on Monday in Providence, Rhode Island, to maintaining false and incomplete records relating to the discharge of oily bilge and for failing to report a hazardous condition on board the oil tanker Galissas. The company’s chief engineer, Roberto Cayabyab Penaflor, and Captain Jose Ervin Mahigne Porquez also pleaded guilty today for their roles in those crimes. The defendants are scheduled to be sentenced on Aug. 8.
According to court documents, Zeus and Penaflor admitted that oily bilge water was illegally dumped from the Galissas directly into the ocean without being properly processed through required pollution prevention equipment. Oily bilge water typically contains oil contamination from the operation and cleaning of machinery on the vessel. They also admitted that these illegal discharges were not recorded in the vessel’s oil record book as required by law.
Specifically, on three separate occasions between November 2021 and February 2022, Penaflor ordered crew members working for him in the engine room to discharge a total of approximately 9,544 gallons of oily bilge water from the vessel’s bilge holding tank directly into the ocean using the vessel’s emergency fire pump, bypassing the vessel’s required pollution prevention equipment. In addition, in preparation for the U.S. Coast Guard’s inspection of the Galissas, Penaflor instructed crew members on several occasions to not tell the Coast Guard about bypassing the pollution prevention equipment resulting in illegal discharges.
“This prosecution demonstrates our commitment to ensuring the health and safety of the marine environment, and to safeguarding coastal communities against hazardous conditions,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The Department of Justice will continue to work with our partner agencies to ensure those who pollute and endanger our coastal communities are held fully accountable.”
“A critical mission of this office is protecting our environment from pollution and polluters, whether they impact our neighborhoods or precious natural resources like the Narragansett Bay, one of the crown jewels of Rhode Island,” said U.S. Attorney Zachary A. Cunha for the District of Rhode Island. “In this case, a foreign company decided it could ignore its obligation under American law, putting our waters and coastal communities at risk. Today’s guilty pleas are a reminder that this office will enforce our environmental laws to hold violators – individuals and corporate – accountable and protect our vital natural resources and our citizenry.”
“This case demonstrates the U.S. government’s resolve to ensure the safety of life at sea and protect our ports from rogue and negligent actors,” said Rear Admiral John Mauger, Commander of the First Coast Guard District. “Every day, thousands of ships safely call on U.S. ports and handle nearly 95% of U.S. trade that drives our economy and provides for our national security. By sailing into a major U.S. port with a known faulty inert gas generator, the operator, and senior officers of the Galissas endangered not only their shipmates but also the people of Rhode Island. The Coast Guard will continue to train and deploy our vessel examiners to protect mariners and our nation's ports by deterring and detecting unsafe and illegal activity. We appreciate the strong resolve from the Justice Department in holding these rogue actors accountable.
In addition to the illegal discharges of oily bilge water, on Feb. 2, 2022, while the Galissas was conducting cargo operations in Rotterdam, the Netherlands, crew members became aware that the vessel’s inert gas system was inoperable. This system is necessary to ensure that oxygen levels within the vessel’s cargo tanks remain at safe levels – at or below 8% – and do not pose a hazardous condition that could lead to an explosion or fire. Rather than remaining in Rotterdam until the inert gas system could be repaired, shore side management of Zeus and Captain Porquez determined that the vessel should instead sail to the United States, where a spare part would be delivered upon the vessel’s arrival for the crew to repair the system.
On Feb. 11, 2022, while the Galissas was transiting the Atlantic Ocean from the Netherlands to the United States, Porquez submitted a required notice of arrival to the U.S. Coast Guard informing the Coast Guard of, among other things, the vessel’s last port of call, planned arrival in the United States and the type of cargo onboard the vessel. In this notice of arrival, Porquez did not report that a hazardous condition existed onboard the vessel (the inoperable inert gas system).
On Feb. 19, 2022, the Galissas arrived off the coast of Rhode Island and although the vessel’s crew received and installed the spare part, the inert gas system remained inoperable. The following day, the U.S. Coast Guard measured the oxygen levels within the vessel’s cargo tanks and found levels ranged between 15 and 17%, well beyond the maximum allowable 8%. The Coast Guard then ordered that the vessel be moved further offshore so as to not endanger the port of Newport, Rhode Island.
Porquez had a logbook created that indicated the cargo tanks were at safe oxygen levels when the vessel left the Netherlands and remained at safe levels during the majority of the vessel’s transit of the Atlantic Ocean. In reality, the crew had not taken any readings of the oxygen levels in the cargo tanks during the vessel’s voyage. Porquez had tasked the vessel’s chief officer with creating this fraudulent logbook that was then presented to the U.S. Coast Guard during its inspection.
Zeus and Penaflor each pleaded guilty to a felony violation of the Act to Prevent Pollution from Ships for failing to accurately maintain the oil record book for the Galissas. Zeus and Porquez also pleaded guilty to a felony violation of the Ports and Waterways Safety Act for failing to report the vessel’s hazardous condition to the U.S. Coast Guard. Under the terms of the plea agreement Zeus will pay a total monetary penalty of $2.25 million, consisting of a fine of $1,687,500 and a community service payment of $562,500. The community service payment will go to the National Fish and Wildlife Foundation to fund projects to benefit marine and coastal natural resources located in the State of Rhode Island. Additionally, Zeus will serve a four-year term of probation, during which any vessels operated by the company and calling on U.S. ports will be required to implement a robust environmental compliance plan.
The U.S. Coast Guard Southeastern New England Sector and the U.S. Coast Guard Investigative Service are investigating the case.
Senior Trial Attorney Stephen Da Ponte of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney John P. McAdams for the District of Rhode Island are prosecuting the case with assistance from Lieutenant Commander Paul J. Milliken of the U.S. Coast Guard District One Legal Office.
Ship’s Operator, Captain, and Chief Engineer Admit to Environmental Crimes Aboard a Rhode Island-Bound Oil TankerRead the Press Release
PROVIDENCE –The Greek company that owned and operated the Galissas: a tanker carrying diesel oil from Rotterdam, the Netherlands, to Providence, RI, in February 2022, pled guilty in U.S. District Court in Rhode Island to federal environmental crimes carried out by its captain and chief engineer. In addition, the vessel’s captain pled guilty to failing to report a hazardous condition in the vessel’s cargo tanks to the United States Coast Guard prior to the tanker entering the port of Newport, Rhode Island. The vessel’s chief engineer pled guilty to knowingly discharging untreated oily bilge water directly from the tanker into the sea during the transatlantic voyage.
During proceedings in U.S. District Court in Providence, Zeus Lines Management S.A., (Zeus) owner/operator of the Gallissas, admitted violating The Ports and Waterways Safety Act and The Act to Prevent Pollution from Ships. The Galissas’ captain Jose Ervin Mahinge Porquez, a resident of the Philippines, admitted to violating The Ports and Waterways Safety Act. The Galissas’ Chief Engineer Roberto Cayabyab Penaflor, also a resident of the Philippines, admitted violating the Act to Prevent Pollution from Ships.
Under the terms of the plea agreement Zeus will pay a total monetary penalty of $2.25 million, consisting of a fine of $1,687,500 and a community service payment of $562,500. The community service payment will go to the National Fish and Wildlife Foundation to fund projects to benefit marine and coastal natural resources located in the State of Rhode Island. Additionally, Zeus will serve a four-year term of probation, during which any vessels operated by the company and calling on U.S. ports will be required to implement a robust environmental compliance plan.
“A critical mission of this office is protecting our environment from pollution and polluters, whether they impact our neighborhoods or precious natural resources like the Narragansett Bay, one of the crown jewels of Rhode Island,” said United States Attorney for the District of Rhode Island Zachary A. Cunha. “In this case, a foreign company decided it could ignore its obligation under American law, putting our waters and coastal communities at risk. Today’s guilty pleas are a reminder that this Office will enforce our environmental laws to hold violators – individuals and corporate – accountable and protect our vital natural resources and our citizenry.”
“This prosecution demonstrates our commitment to ensuring the health and safety of the marine environment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The reckless actions of these defendants not only threatened the marine environment, but also the safety of this coastal community. The Department of Justice will continue to work with our partner agencies to ensure those who pollute and endanger our coastal communities are held fully accountable.”
“This case demonstrates the U.S. government’s resolve to ensure the safety of life at sea and protect our ports from rogue and negligent actors,” said Rear Adm. John Mauger, Commander of the First Coast Guard District. “Everyday thousands of ships safely call on U.S. ports and handle nearly 95% of US trade that drives our economy and provides for our national security. By sailing into a major U.S. port with a known faulty inert gas generator, the operator, and senior officers of the Galissas endangered not only their shipmates but also the people of Rhode Island. The Coast Guard will continue to train and deploy our vessel examiners to protect mariners and our nations ports by deterring and detecting unsafe and illegal activity. We appreciate the strong resolve from DOJ in holding these rogue actors accountable.”
According to information presented in court, while the Galissas was conducting cargo operations in Rotterdam, the Netherlands in February 2022, crew members became aware that the vessel’s inert gas system became inoperable. The inert gas system is necessary to ensure that oxygen levels within the vessel’s cargo tanks remain at safe levels and do not pose a hazardous condition. Rather than remaining in Rotterdam until the inert gas system could be repaired, Zeus and the ship’s captain, Porquez, decided to instead sail to the United States, where a spare part would be delivered upon the vessel’s arrival. On February 11, 2022, while crossing the Atlantic, Porquez submitted a “Notice of Arrival” to the U.S. Coast Guard which failed to report the hazardous condition. On February 15, 2022, the Coast Guard sent an email in preparation for inspection which inquired about the vessel’s inert gas system. Porquez responded to the email but did not disclose the inoperable inert gas system. Upon arrival off the coast of Rhode Island February 19, 2022, the vessel embarked a local ship’s pilot to sail the vessel closer to shore and take delivery of the spare part. Although the crew installed the spare part, the inert gas system remained inoperable. Porquez failed to report to the Coast Guard the hazardous condition that the vessel’s inert gas system was inoperable while the tanks were not gas free.
The following day, February 20, the U.S. Coast Guard boarded the Galissas to conduct an inspection. Only then did Porquez inform the Coast Guard that the inert gas system was inoperable. The Coast Guard immediately took measurements of the oxygen levels within the vessel’s cargo tanks, which were registered more than double the maximum allowable levels. The Coast Guard then ordered that the vessel be moved further offshore so as to not endanger the port of Newport, Rhode Island. Zeus’ Operations Manager directed Porquez to create a logbook showing oxygen levels during the transatlantic voyage. Porquez had a logbook created that falsely indicated the cargo tanks were at safe oxygen levels when the vessel left the Netherlands and remained at safe levels during the majority of the vessel’s transit of the Atlantic Ocean. In reality, the crew had not taken any readings of the oxygen levels in the cargo tanks during the vessel’s voyage. Porquez had tasked the vessel’s Chief Officer with creating this fraudulent logbook that was then presented to the U.S. Coast Guard during its inspection.
Additionally, Zeus and chief engineer Penaflor admitted that throughout the transatlantic voyage, oily bilge water was illegally dumped from the Galissas directly into the ocean without being properly processed through required pollution prevention equipment. Oily bilge water typically contains oil contamination from the operation and cleaning of machinery on the vessel. They also admitted that these illegal discharges were not recorded in the vessel’s oil record book as required by law.
Specifically, on three separate occasions between November 2021 and February 2022, Penaflor ordered crew members working for him in the engine room to discharge a total of approximately 9,544 gallons of oily bilge water from the vessel’s bilge holding tank directly into the ocean using the vessel’s emergency fire pump, bypassing the vessel’s required pollution prevention equipment. In addition, in preparation for the U.S. Coast Guard’s inspection of the Galissas, Penaflor instructed crew members on several occasions to not tell the Coast Guard about bypassing the pollution prevention equipment resulting in illegal discharges.
A sentencing hearing in this matter is scheduled to be held on August 8, 2023. The defendants’ sentences will be determined by a federal judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
Senior Trial Attorney Stephen Da Ponte of the Department of Justice’s Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney John P. McAdams for the District of Rhode Island are prosecuting the case with assistance from Lieutenant Commander Paul J. Milliken from the U.S. Coast Guard District One Legal Office. The U.S. Coast Guard Sector Southeastern New England and the U.S. Coast Guard Investigative Service investigated the case.
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Fentanyl Supplier Sentenced to More Than Six Years in Federal PrisonRead the Press Release
PROVIDENCE – A Providence man who acted as a supplier of fentanyl to a mid-level drug trafficker was sentenced today to nearly six-and-a-half years in federal prison, announced United States Attorney Zachary A. Cunha.
Keven Restrepo, 32, formerly of Kissimmee, FL, was arrested in September 2021, as the result of a wide-ranging FBI Safe Streets Gang Task Force and Providence Police Department drug trafficking investigation in Rhode Island that resulted in the arrest of sixteen individuals.
According to court documents and information presented to the court, Restrepo set up multiple deliveries of fentanyl to a Providence man, and instructed him on how to “cut,” or increase the weight of fentanyl he was selling to him to increase its volume and provide a greater profit. On at least two occasions Restrepo set-up deliveries that totaled 70 grams of fentanyl.
According to court documents, with judicial approval, law enforcement monitored and recorded telephone conversations in which Restrepo boasted of supplying significant quantities of drugs to others in the past; detailed how to “cut” and increase the volume of drugs; and discussed obtaining a firearm.
At the time of his arrest on federal drug trafficking charges, Restrepo was on bail and awaiting sentencing in Rhode Island state court, having been convicted of multiple firearm and assault charges in a case in which an individual was shot in a gang-related incident and suffered serious injuries.
In the matter charged in federal District Court, Restrepo pleaded guilty on December 12, 2022, to a charge of conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl. He was sentenced today by U.S. District Court Judge Mary S. McElroy to seventy-seven months in federal prison to be followed by four years of federal supervised release.
The case was prosecuted by Assistant U.S. Attorney Stacey A. Erickson.
The Rhode Island FBI Safe Streets Gang Task Force consists of agents and law enforcement officers from the FBI, United States Marshals Service, Central Falls Police Department, Cranston Police Department, Pawtucket Police Department, Providence Police Department, West Warwick Police Department, Woonsocket Police Department, and Rhode Island State Police.
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Federal Government Reaches Settlement with Providence Skilled Nursing Center for Alleged Violations of the Americans with Disabilities ActRead the Press Release
PROVIDENCE –Elmhurst Rehabilitation & Healthcare Center (“Elmhurst”) has entered into an agreement with the United States Attorney’s Office for the District of Rhode Island, resolving allegations that Elmhurst failed to furnish sign language interpreting services during interactions with a resident who is deaf, announced United States Attorney Zachary A. Cunha.
Under the settlement agreement, Elmhurst will adopt new ADA policies and practices, train its staff on those policies, will report any future complaints, and agrees to cooperate with the U.S. Attorney’s Office to ensure ongoing compliance with the terms of the settlement agreement. Elmhurst will also pay a settlement of $30,000 to the complainant and a $5,000 civil penalty.
“When deaf Rhode Islanders seek medical care, they shouldn’t have to worry whether a lack of legally required interpreter services will keep them from communicating effectively with their healthcare providers,” remarked U.S. Attorney Cunha. “Today’s settlement ensures that those services will be provided, as the law requires, for all patients.”
Elmhurst is a private medical practice that provides skilled nursing services, post-acute medical services, and rehabilitation programs in Providence. Title III of the ADA prohibits discrimination against people with disabilities in places of public accommodations, such as medical centers. The ADA requires places of public accommodation to provide the necessary auxiliary aids and services to ensure that communication is effective. Such aids and services can include American Sign Language interpreters for individuals who are deaf or hard of hearing and must be paid for by the place of public accommodation.
The matter was litigated by Assistant U.S. Attorney Amy R. Romero.
The Department of Justice has a number of publications available to assist entities in complying with the ADA, including Effective Communication and a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings. For more information on the ADA and to access these publications, visit www.ada.gov or call the Justice Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD).
Any member of the public who wishes to file a complaint alleging that a place of public accommodation or public entity in Rhode Island is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at (401) 709-5000 or by email at [email protected].
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California-Based Company, Company President Sentenced in Scheme to Violate the Export Control ActRead the Press Release
PROVIDENCE – Tao Jiang, the president and owner of Broad Tech System, Inc., a California-based electronics distribution company, and his company were both sentenced today in U.S. District Court in Rhode Island for concealing information from the U.S. Department of Commerce and from U.S. Customs and Border Protection as part of a scheme to illegally export chemicals manufactured and/or distributed by a Rhode Island-based company to a technology company in China with ties to the Chinese military, announced United States Attorney Zachary A. Cunha.
Tao Jiang, aka Jason Jiang, 53, of Riverside, CA, and Broad Tech Systems pleaded guilty on January 11, 2023, to charges of conspiracy, violation of the Export Control Act, and money laundering conspiracy. Jiang was ordered by U.S. District Court Chief Judge John J. McConnell, Jr., to serve one year of federal probation, to pay a fine of $5,500, and to perform 100 hours of community service; Broad Tech Systems was placed on federal probation for one year and ordered to pay a fine of $120,000.
Additionally, Jiang and Broad Tech Systems were ordered to implement ethics and training programs for all officers and employees of Mr. Jiang and his companies; and to hire an employee whose responsibility is to monitor Broad Tech, and all companies owned by Mr. Jiang, to ensure that his companies and his employees are in full compliance with U.S. laws and regulations.
In pleading guilty, Jiang and Broad Tech System admitted to a federal judge that they conspired together, as well as with Bohr Winn-Shih, an engineer employed at Broad Tech System, to order the chemicals Photoresist and HPRD (Developer) from a North Kingstown-based manufacturer, and then knowingly submitted false and misleading documentation to the U.S. Government and to shipping companies in an effort to have those products illegally shipped to a company in China, in violation of the Export Control Reform Act.
The intended recipient of the shipment, a state-owned Chinese entity in Nanjing, China, mainly engages in the manufacturing of electronic components and research, development and production of core chips and key components that are used in China’s military strategic early warning systems, air defense systems, airborne fire control systems, manned space systems, and other large-scale national projects. Photoresist and HPRD are essential to the chip manufacturing process.
The Chinese company that was intended to receive these products is on a U.S. government list of businesses that are not permitted to receive products manufactured in the United States.
In October 2018, the Customs and Border Protection National Targeting Center alerted the U.S. Department of Commerce (DOC) of an intended export of 58 gallons of Photoresist to the China-based company. The product was returned to the manufacturer. Several days after the shipment was halted, the Rhode Island manufacturer received a call from Jiang, acting on behalf of Broad Tech System, seeking to purchase 94 gallons of Photoresist, and asking that it be shipped to a different China-based company. The manufacturer communicated to DOC agents that they found this to be suspicious because they had not done business with Broad Tech in the past; the quantity of Photoresist ordered was unusually significant; and the request came just days after the first shipment had been recalled. It was determined by DOC agents that Jiang, Shih and Broad Tech concealed the intended recipient, and that the shipment’s final destination was actually the Nanjing-based company controlled by the Chinese government.
On January 29, 2019, Broad Tech received a wire transfer of $65,984 to its bank account within the United States, representing payment for the 58 gallons of Photoresist. It was determined that the wire transfer originated from an account controlled by the Nanjing, China-based company.
Bohr Winn-Shih, 65, of Ontario, CA, pleaded guilty on May 11, 2021. Winn-Shih was sentenced on August 3, 2021, to one year of probation.
The cases were prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The matter was investigated by the U.S. Department of Commerce and U.S. Customs and Border Protection.
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Providence Man Sentenced for Bank FraudRead the Press Release
PROVIDENCE – A citizen of Liberia residing in Providence who participated in a fraud scheme to create and deposit fraudulent checks and then quickly withdraw the funds from banks before the fraud was discovered was sentenced today to forty-one months in federal prison, announced United States Attorney Zachary A. Cunha.
Maximillian Mwah, 39, previously admitted to a federal judge that he conspired with others to create and deposit numerous counterfeit checks drawn on the accounts of individuals and businesses, including local law firms.
As part of the scheme, conspirators recruited individuals with bank accounts who were willing to deposit the counterfeit checks and then quickly withdraw the resulting funds. Court records show that Mwah often communicated via Facebook messenger with a leader of the fraud scheme, and with others, about effectuating the fraud.
Mwah pleaded guilty on December 20, 2022, to a charge of conspiracy to commit bank fraud and a charge of bank fraud. He was sentenced today by U.S. District Court Chief judge John J. McConnell, Jr., to forty-one months in federal prison to be followed by three years of federal supervised release. Mwah was ordered to pay restitutions to banks defrauded totaling $8,404.24.
An immigration detainer has been lodged against Mwah by U.S. Immigration and Customs Enforcement; he faces removal from the United States.
The case was prosecuted by Assistant U.S. Attorney Ly T. Chin.
The matter was investigated by the U.S. Postal Inspection Service, with the assistance of the FBI, United States Secret Service, ATF, Rhode Island State Police, Providence Police Department, and Delaware State Police.
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Texas Man Sentenced for Role in Scamming Seniors in Rhode Island and Elsewhere in Online Romance ScamsRead the Press Release
PROVIDENCE – A Texas man who participated in a conspiracy that fraudulently used the identities and images of two United States military Generals, and others, to defraud seniors in at least eleven states, including Rhode Island, of at least $1.5 million through online romance scams, was sentenced today to more than three years in federal prison, announced United States Attorney Zachary A. Cunha.
Fola Alabi, 52, of Richmond, Texas, previously admitted to a federal judge that he created companies and opened bank accounts that were used to launder the proceeds realized from the romance scams. According to court filings, the funds laundered by Alabi were often wired overseas to China and India.
According to information presented to the court, a member of the conspiracy befriended unsuspecting seniors online, often fraudulently posing as a General in the U.S. military who was serving overseas. The conspirator feigned a personal, and sometimes romantic, interest in his victims, and convinced them to send substantial sums of money, usually in the form of bank checks or cash, to addresses and companies in Texas that were controlled by Alabi. Alabi received the money and either deposited it or directed that it be deposited into one of several bank accounts that he controlled. He quickly withdrew or transferred the funds to other accounts, including some that were overseas, and used the funds to pay the mortgage of his house.
Among Alabi’s victims is a Rhode Island widow who was contacted by a member of the conspiracy falsely claiming to be a “General Miller,” a four-star General, who convinced the victim to provide $60,000 to finance shipment of his personal belongings to the United States. At the fraudster’s direction, a check was made payable a company created by Alabi and mailed to Alabi’s Texas residence. The victim was prepared to send an additional significant sum of money to the purported “General Miller,” when it was determined by her bank and the Westerly Police Department that she was likely the victim of fraud.
In brief victim impact statements delivered to the court, the two actual U.S. military Generals whose identities were used as part of the scheme acknowledged that they continue to be victimized by online romance scams through the use of their likeness and identities. One of the Generals urged seniors to be diligent and to be aware of the significant potential of being scammed.
Alabi, arrested in May 2022, pleaded guilty on January 13, 2023, to conspiracy and money laundering. He was sentenced today by U.S. District Court Judge William E. Smith to thirty-seven months in federal prison to be followed by three years of federal supervised release; pay restitution to identified victims of the romance scams totaling $1,495,421; and to forfeit funds contained in a bank account that he controlled containing $31,773, and to forfeit his Texas residence which was valued at the time of his arrest at $560,000.
The case was prosecuted by Assistant United States Attorneys Ly T. Chin and Sara Miron Bloom.
The matter was investigated by the United States Postal Inspection Service, FBI, United States Secret Service, and Homeland Security Investigations.
United States Attorney Cunha thanks the Westerly, RI, and Prescott Valley, AZ, Police Departments; Texas Department of Public Safety; West Virginia State Police; the Santa Clara, CA, County District Attorney’s Office; and Defense Criminal Investigative Service for their assistance in the investigation of this matter.
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Pawtucket Man Admits to Being an Armed Heroin TraffickerRead the Press Release
PROVIDENCE – A Pawtucket man admitted to a federal judge on Monday that he was in possession of more than two kilos of fentanyl, a loaded Glock handgun, and nearly $80,000 in cash when Pawtucket Police executed a court-authorized search of his home and arrested him in October 2019, announced United States Attorney Zachary A. Cunha.
Appearing in U.S. District Court, Adrian Montalvo, 36, pleaded guilty to charges of possession with intent to distribute 40 grams of more of fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
According to information presented to the court, members of the Pawtucket Police Department’s Special Squad /Narcotics Unit developed information that Montalvo, previously convicted multiple times in state courts for trafficking narcotics, was selling large quantities of fentanyl in the city of Pawtucket. Following an investigation that included surveillance of Montalvo and his residence, Pawtucket Police requested and received a court-authorized search warrant for his residence. Pawtucket Police executed the search warrant on October 1, 2019, and seized a total of 2,118.35 grams of fentanyl; $79,106 in cash; a Glock 9mm semi-automatic pistol with an obliterated serial number; as well as several items used in the preparation and packaging of fentanyl for distribution.
Montalvo is scheduled to be sentenced on July 27, 2023. The defendant’s sentences will be determined by a federal judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Civil Complaint Alleges Millions of Dollars in Medicaid FraudRead the Press Release
PROVIDENCE, R.I. – The United States and the State of Rhode Island announced today that they have intervened in a civil lawsuit against Journey to Hope, Health, and Healing, Inc. and its then-CEO, Kenneth L. Richardson, Jr., filing a complaint alleging that these defendants billed the Rhode Island Medicaid program for millions of dollars for substance use disorder treatment services that the Defendants knowingly and routinely failed to provide to their patients who needed these services, and subsequently falsified records in order to make it appear that required services were being provided, according to United States Attorney Zachary A. Cunha and Rhode Island Attorney General Peter F. Neronha.
The Complaint in Intervention under the federal and Rhode Island state False Claims Acts and other theories of civil liability unsealed by a federal judge late this afternoon, lays out the governments’ allegations that Journey, despite holding itself out as a certified and accredited opioid treatment provider, routinely failed to provide treatment plans and adequate counseling for patients for whom they were providing methadone, while at the same time collecting over $15 million from the federal-and-state-administered Medicaid program during the period between January 2015 and July 2021. The complaint further alleges that in preparation for upcoming reviews by accreditation officials and other auditors, Journey personnel were instructed by management to falsify records in order to make it appear that the missing services had been provided. The United States and the State of Rhode Island allege that over half of amount claimed by Journey during this time period was false, and the government is seeking to recover up to three times the amount paid as a result of the alleged false claims, plus penalties.
As alleged in the governments’ complaint, in many cases, Medicaid beneficiaries were receiving methadone from Journey for years without any required individualized treatment plan in place, and that in some cases where plans did exist, they were not updated for years. Journey is further alleged to have failed to provide increased services or attention to patients who tested positive for illicit substances, including fentanyl, and to have maintained patient caseloads for counselors at a volume so high that it was physically impossible to offer required counselling services. Finally, the company is alleged to have altered and backdated documents in order to make it appear that updated individualized treatment plans were in place and that the required counseling sessions were occurring when, in fact, they were not.
Whistleblowers Sara Quaresma and Michael Delmonico, who are former employees of Journey, filed an action in federal court in October of 2020 under the qui tam provisions of the False Claims Act. Those provisions authorize private parties to sue on behalf of the United States and/or the State and to share a portion of any recovery; such a filing is initially made under seal. The Act permits federal and state governments to intervene and take over the lawsuit, as has occurred here, in part, by filing this complaint in intervention. The case was unsealed on Monday following the governments’ filing.
The case is being litigated in U.S. District Court by Assistant U.S. Attorneys Bethany N. Wong and Kevin Love Hubbard, and Rhode Special Assistant Attorney General Genevieve M. Allaire Johnson.
The matter has been investigated by the Office of Inspector General for the Department of Health and Human Services.
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Armed Heroin Dealer Sentenced to Seven Years in PrisonRead the Press Release
PROVIDENCE – A 35-year-old Providence man for whom court records indicate multiple previous state court convictions for similar conduct, was sentenced today to seven years in federal prison for being an armed drug dealer, a felon in possession of firearms, and for trafficking heroin, announced United States Attorney Zachary A. Cunha.
According to court documents, Giancarlo Fermin has repeatedly engaged in similar conduct in the past, despite multiple state convictions; his first term of incarceration came at age eighteen following a Rhode Island state conviction on narcotics and firearm charges.
Most recently, Fermin was arrested when members of the FBI Safe Street Task Force executed a court-authorized search of his residence in August 2021, where they located two fully loaded firearms, ammunition, approximately 16 grams of heroin, and numerous items used to prepare and package narcotics for distribution, including a grinder, a digital scale, and more than 2,000 blue miniature paper envelopes. As FBI agents entered Fermin’s residence, the agents witnessed Fermin tossing blue envelopes, some containing heroin, out of a window. Fermin later admitted that he possessed the firearms for “protection.”
“Armed drug traffickers who choose to make a career out of peddling opioids into our Rhode Island communities can look forward to prison, not profits,” said U.S. Attorney Cunha. “Today’s sentence should leave no doubt about this Office’s resolve to use every means at our disposal to deal with those who put guns and drugs on our streets.”
“Today’s sentence makes it clear that career criminals like Giancarlo Fermin who refuse to learn from their mistakes by repeatedly breaking the law and threatening the safety of others will be held accountable,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “No community is untouched by violent crime which is why our RI Safe Streets Task Force continues to work hard every day alongside our law enforcement partners in identifying, investigating, and disrupting others like Mr. Fermin who incite violence and threaten the safety our citizens.”
Fermin pleaded guilty on November 3, 2022, as charged by way of indictment, to possession with intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm. He was sentenced today to eighty-four months in federal prison to be followed by three years of federal supervised release.
The case was prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Former Owner of RI Ophthalmology Chain to Pay $1.1M in Settlement of False Claims Inquiry by the United StatesRead the Press Release
PROVIDENCE – The United States Attorney’s Office has reached an agreement with Paul S. Koch, M.D., the former owner of a chain of Rhode Island ophthalmology practices that bear his name, to resolve civil allegations that Koch paid kickbacks to optometrists who referred patients to him and his practice for cataract surgeries, announced United States Attorney Zachary A. Cunha.
The agreement, under which Dr. Koch will pay $1,166,072, resolves claims brought as part of a qui tam complaint filed in federal court in the District of Rhode Island by two whistleblowers.
“Patients should be able to feel secure that when their doctors make decisions that impact their health- whether about prescriptions, surgeries, or referrals- those decisions are based on sound medical judgment, and not illegal monetary incentives,” said U.S. Attorney Cunha. “When medical decision making is corrupted by kickbacks, at the expense of federal Medicare dollars, we will hold those responsible to account.”
“Kickback schemes undermine the integrity of medical decisions, subvert the health marketplace and waste taxpayer dollars,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General. “We will continue to hold accountable those who refuse to play by the rules and provide illegal incentives to influence the decision making of health care providers.”
“Kickback schemes can undermine our healthcare system, compromise medical decisions, and waste taxpayer dollars. Today’s settlement makes it clear that medical decisions by doctors should be based on what is best for each patient, not a doctor’s personal financial interest,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “This unscrupulous scheme orchestrated by Dr. Koch is just one example of how the FBI and are partners are working hard every day to protect patients and federal health care programs from fraud and abuse by removing the corrupting influence of money.”
The government alleged that, during the roughly five-year period between January 1, 2013, through December 31, 2017, Dr. Koch, Koch Eye Associates and Claris Vision, paid financial kickbacks to referring optometrists whose patients elected to receive laser-assisted cataract surgery, for which patients paid up to $2,900 out-of-pocket per eye. The government alleges that these payments to the referring optometrists were illegal under the anti-kickback statute, a federal law that, among other things, prohibits financial payments to induce medical referrals that are reimbursed by federal healthcare payors, like the Medicare program.
In this case, the government alleged that the kickbacks resulted in the submission of false claims to Medicare under the federal False Claims Act. Through this settlement, the government is recovering twice the amount paid by Medicare for claims associated with the illegal kickbacks paid by Dr. Koch and his affiliates. Under the provisions of the False Claims Act, the whistleblowers will receive $256,534.84 out of the settlement payment.
The government’s case was litigated by Assistant United States Attorneys Dulce Donovan and Bethany N. Wong and was investigated by the U.S. Department of Health and Human Services, Office of Inspector General.
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East Providence Businesswoman Charged with Visa Fraud, Aggravated Identity TheftRead the Press Release
PROVIDENCE – An East Providence businesswoman who allegedly arranged for eight Columbian Vallenato musicians to obtain work visas to enter the United States, purportedly to work in the performing arts industry, has been charged in federal court with visa fraud and aggravated identity theft, announced United States Attorney Zachary A. Cunha.
It is alleged in documents filed with the court that Yaneth Yanitza Caicedo Grandos, operator of Tu Voz Es Musica (“TVEM”), a music talent school she operates out of her residence, created and provided false itinerary information on work visa applications submitted to United States Citizenship and Immigration Services (USCIS) on behalf of each of the musicians. Included with each application were contracts on TVEM letterhead that described agreements TVEM had with venues in seven states, including Rhode Island, where the Vallenato musicians were scheduled to perform.
According to information presented to the court, a review by Homeland Security Investigations of the contracts submitted with the visa applications to USCIS revealed discrepancies, including, for example, similar looking signatures on six contracts with five different venues. It is alleged that venue managers/owners whose names and signatures appear on the contracts did not authorize nor endorse the information; and that venue operators confirmed that the Vallenato musicians had not performed nor were scheduled to perform at their respective venues.
As further alleged in court documents, this matter came to the attention of federal authorities when an East Providence resident provided information that Caicedo Grandos restricted the movements of the Columbian musicians, forced them to sleep on the floor of an apartment from which they have since been evicted, attempted to confiscate their passports, and threatened them with immigration consequences.
Yaneth Yanitza Caicedo Grandos, charged by way of a federal criminal complaint with visa fraud and aggravated identity theft, made an initial appearance before U.S. District Court Magistrate Lincoln D. Almond on Tuesday and was released on unsecured bond.
Work visas issued to eight Vallenato musicians have been revoked by the U.S. Department of State.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
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Hopkinton Man Sentenced to Six Years in Prison on Child Pornography ChargesRead the Press Release
PROVIDENCE – A Hopkinton man who previously admitted to a federal judge that he possessed and shared child pornography while he was awaiting trial in Rhode Island state court in two unrelated child pornography cases was sentenced today to six years in federal prison, announced United States attorney Zachary A. Cunha.
Christopher Leherissier, 34, admitted that in February 2021, he uploaded video files of child pornography involving prepubescent children via an account on the online messenger application Kik that he managed and that he used to store child pornography.
Members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force identified an IP address, email address, and a Kik screenname Leherissier untilized to upload images of child pornography. Task Force members identfied 160 images and 124 videos of child pornography stored on a mobile device and a hard drive seiezed from Leherisser at the time of his arrest; and 80 images and 101 videos of child pornography stored in two email accounts he controlled.
At the time of his arrest in this matter, Leherissier was on pre-trial on two different cases pending in Rhode Island state court involving charges of allegedly solicitating a minor and disseminating indecent matter to that minor in early 2020; and, in a separate matter dated from the fall of 2020, for allegedly being in possession of child pornography stored in a DropBox account as well as on his electronic devices.
Related to his most recent arrest, Leherisser pleaded guilty in federal court on November 15, 2022, to charges of distribution of child pornography and possession of child pornography. He was sentenced today by U.S. District Court Judge William E. Smith to seventy-two months of incarceration to be followed by ten years of federal supervised release. Additionally, Leherisser is ordered to pay a statutory mandated restitution in the amount of $3,000 to each of eight identified victims who appear in images and videos shared by Leherisser and who sought restitution.
The matter prosecuted in U.S. District Court was prosecuted by Assistant United States Attorney Dulce Donovan.
Homeland Security Investigations assisted the ICAC Task Force in the investigation of this matter.
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Former Bristol Woman Sentenced for Theft of Federal FundsRead the Press Release
PROVIDENCE, R.I. – A former Bristol woman who perpetrated a scheme to fraudulently collect more than $42,000 in Social Security Supplemental Security Income (SSI) benefits earmarked for a disabled child who was no longer in her care or custody was sentenced today to three years of federal probation and ordered to reimburse the Social Security Administration, announced United States Attorney Zachary A. Cunha.
Sonia Pimentel, 44, formerly of Bristol, RI, now residing in Norwich, CT, pleaded guilty in U.S. District Court in Providence on December 1, 2022, to a charge of theft of public funds.
Pimentel admitted that, from December 2011 through October 2016, she continued to receive, and to keep for her own personal use, monthly SSI payments totaling $42,346.73; those funds were earmarked for the care of a disabled child who was no longer in her custody or care at the time. The child was, in fact, in the custody and care of his father at that time Pimentel fraudulently and willfully collected and retained the SSI payments.
At sentencing today, U.S. District Court Judge Mary S. McElroy sentenced Pimentel to three years of federal probation and ordered her to pay restitution in the amount of $42,346.73 to the Social Security Administration.
The case was prosecuted by Assistant U.S. Attorney Denise M. Barton.
The matter was investigated by the Social Security Administration Office of Inspector General.
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Federal Grand Jury Indicts Level III Sex Offender for Receipt and Possession of Child PornographyRead the Press Release
PROVIDENCE – A level III sex offender, charged and convicted three times in Rhode Island state court on child pornography charges, has been in indicted by a federal grand jury on additional, and unrelated, child pornography charges, announced United States Attorney Zachary A. Cunha.
The grand jury returned an indictment charging Patrick K. Beattie, 37, of Charlestown, with two counts of receipt of child pornography and one count of possession of child pornography.
It is alleged in court documents that in February 2023, a state probation officer received information that Beattie, while serving a terms of state probation related to previous state child pornography convictions, was allegedly violating the terms of his state probation. It was alleged that Beattie possessed an internet-connected smartphone in violation of the terms of his court-imposed probation.
Court documents allege that, on February 10, 2023, during an unannounced home visit of Beattie’s residence, as was permitted by the terms of his state probation, Beattie was found to be in possession of a smartphone. A subsequent, court-authorized search of the phone revealed child pornography involving prepubescent minors.
Beattie was arraigned on Friday in federal court and ordered detained in federal custody. A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
According to court documents, Beattie was previously convicted in Rhode Island State Court in April 2017, March 2022, and in January 2023, on child pornography charges.
The current case, charged by way of a federal grand jury indictment, is being prosecuted in federal court by Assistant U.S. Attorney Denise M. Barton.
The matter was investigated by Homeland Security Investigations, Charlestown Police, and Rhode Island State Police, with the assistance of the Rhode Island Department of Corrections Probation and Parole Unit.
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Burrillville Man Sentenced for Illegally Possessing More Than 200 Firearms, Making False Statements on ATF Firearm Purchase FormsRead the Press Release
PROVIDENCE – A 39-year-old Burrillville man who falsely claimed on federal documents that he was not an unlawful user of controlled substances, including cocaine, when he purchased and possessed more than 200 firearms and tens of thousands of rounds of ammunition was sentenced today to more than five years in federal prison, announced United States Attorney Zachary A. Cunha.
In February 2022, when Burrillville Police responded to reports of shots fired at the home of Ronald Andruchuk, numerous gunshots could be heard – with some bullets passing overhead of responding officers. Andruchuk was found wearing a Commando-style multipurpose vest and was carrying four firearms and methamphetamine. After Andruchuk was taken into custody, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) agents and Burrillville Police executed a federal search warrant and seized 219 firearms strewn unsecured within Andruchuk’s home. Among the items seized were an AR-style privately-made firearm; assorted firearm ammunition magazines and accessories; and approximately 25,390 rounds (1,555.8lbs) of assorted boxed and loose ammunition of various calibers.
Additionally, an ATF investigation determined that Andruchuk previously admitted to law enforcement that he was a user of controlled substances and that he had a substance abuse problem. Further investigation determined that when attempting to purchase firearms from federally licensed firearms dealers, Andruchuk falsely claimed on federal forms that he was not “an unlawful user of, or addicted to, marijuana or any depressant, stimulant, narcotic drug, or any other controlled substance.”
“By repeatedly violating federal law to acquire an arsenal of firearms – firearms that he stored and used in a way that is the antithesis of responsible gun ownership, Ronald Andruchuk put his family, his neighbors, and our communities at risk,” said U.S. Attorney Cunha. “Today’s sentence should make crystal clear that we and our law enforcement partners intend to vigorously enforce federal gun laws to keep our communities safe.”
"Individuals who illegally use controlled substances are prohibited from possessing firearms,” said James M Ferguson Special Agent in Charge of the ATF Boston Field Division “ATF will continue to work with our law enforcement partners to ensure these offenders do not have the opportunity to illegally possess firearms. In this case, we were able to recover 219 guns and thousands of rounds of ammunition from Ronald Andruchuk”
“Ronald Andruchuk’s child-like infatuation with weapons, recklessness and illegal drug use posed an extreme threat to the lives and safety of his neighbors, his family and the Burrillville Police, added Burrillville Police Chief Colonel Stephen J. Lynch. “The Burrillville Police is appreciative of the collaborative work with ATF, its Task Force members, and the US Attorney’s Office in bringing Andruchuk to justice.”
According to court documents, during a routine review of multiple sales reports of firearms, ATF learned that between July and November of 2021, Andruchuk had purchased 169 firearms. Agents began to investigate further to ensure that Andruchuk was not involved in illegal firearms-trafficking activities. During that review, agents learned that Andruchuk had previous contact with the Cranston Police Department, during which he admitted to being a medical marijuana user. During a later contact with Cranston Police, Andruchuk was arrested on controlled substance offenses and admitted to having a substance abuse problem.
Further investigation by ATF determined that, in December 2021, two firearms, drugs, and other items were located in the drop ceiling of a bathroom inside a Millbury, MA, retail store shortly after Andruchuk vacated the restroom. Both firearms were traced to Andruchuk as the purchaser. He did not have a license to carry a firearm in Massachusetts.
Andruchuk pleaded guilty on January 18, 2023, to two charges of making a false statement of material fact during a firearm purchase and possession of a firearm by an unlawful user of a controlled substance. At sentencing today, U.S. District Court Judge Mary S. McElroy sentenced Andruchuk to sixty-three months in federal prison to be followed by three years of federal supervised release, and to pay a $10,000 fine.
At the request of the U.S. Attorney’s Office, the court ordered the 219 firearms and more than 25,000 rounds of ammunition seized from the defendant to be forfeited to the Government to be destroyed.
The case is being prosecuted by Assistant United Sates Attorney Ronald R. Gendron.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Three Rhode Island Fisherman Among Seven Charged with Tax Evasion and Failing to File ReturnsRead the Press Release
PROVIDENCE - Federal grand juries in Providence and Boston returned separate indictments charging seven commercial fishermen with tax evasion and failing to file returns.
According to the indictments, the commercial fishermen each worked for fishing companies operating primarily out of New Bedford, Massachusetts, or Point Judith, Rhode Island, and received substantial compensation. The companies allegedly paid the fishermen as independent contractors and documented that income by, among other things, filing Forms 1099 with the IRS that reported the funds paid to the fishermen. It is alleged that notwithstanding the receipt of this income, each fisherman did not file individual tax returns or pay all the taxes owed on that income – for some defendants, they allegedly failed to file and/or pay taxes for a decade or more. To conceal the source and disposition of their income, the fishermen allegedly cashed paychecks and then used the cash to fund their lifestyles. One of the defendants allegedly also used the name and Social Security number of another individual to conduct business as a further effort to hide income. In some instances, the fishermen allegedly filed false tax returns for certain years by either not reporting their fishing income or by reporting false business expense deductions to reduce the amount of taxes they owed. Each allegedly evaded tax on between $900,000 and $1.9 million in income.
The seven fishermen indicted are:
Jorge Cazarin of New Bedford, Massachusetts, was charged with five counts of tax evasion and five counts of willful failure to file tax returns for 2016 through 2020.
Christopher Garraty of Newport and East Greenwich, Rhode Island, was charged with three counts of tax evasion and three counts of willful failure to file for 2016 through 2018, and a fourth count of tax evasion related to taxes he allegedly owed for 2007 through 2011.
Wojciech Kaminski of West Warwick, Rhode Island, was charged with five counts of tax evasion for 2014 and 2016 through 2019 and four counts of willful failure to file tax returns for 2016 through 2019.
Brian Kobus of Durham, Connecticut, was charged with five counts of tax evasion for 2017 through 2021.
Rodolfo Membreno of Fall River, Massachusetts, was charged with six counts of tax evasion for 2012 and 2017 through 2021 and four counts of willful failure to file tax returns for 2017 through 2019 and 2021.
John Doe of New Bedford, Massachusetts, was charged with six counts of tax evasion for 2016 through 2021 and three counts of willful failure to file tax returns for 2016 through 2018.
Miguel Cruz Rubio of New Bedford, Massachusetts, and Elizabethtown, North Carolina, was charged with four counts of tax evasion for 2016 through 2019.
If convicted, each defendant faces a maximum sentence of five years in prison for each evasion count and one year in prison for each failure to file a tax return charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division thanked and U.S. Attorney Zachary A. Cunha for the District of Rhode Island and U.S. Attorney Rachael S. Rollins for the District of Massachusetts for their help and assistance in the investigation and prosecution of these cases.
IRS-Criminal Investigation is investigating these cases.
Assistant Chief John Kane and Trial Attorneys Samuel Bean, Matthew Cofer, Christina Grimes, and Ezra Spiro of the Justice Department’s Tax Division are prosecuting the cases.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Note: Indictments returned in this matter are available for review and/or download at https://www.justice.gov/opa/pr/seven-new-england-fishermen-charged-tax-evasion-and-failing-file-returns
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Gang Leader Sentenced for Possessing Ammunition While on Federal Supervised Release Less Than a Year After Serving More Than Fifteen Years in Prison for Trafficking DrugsRead the Press Release
PROVIDENCE – A Providence man identified by law enforcement as a leader of the Trinitarios street gang, has been sentenced to thirty months in federal prison for being a felon in possession of ammunition, announced United States Attorney Zachary A. Cunha.
Juan Guerrero, 42, was found to be in possession of 9 mm cartridges in October 2019, ten months after he completed serving a fifteen-and-a-half-year federal prison sentence for trafficking drugs. The October 2019 arrest occurred while Guerrero was subject to a five-year term of supervised release that followed his term of incarceration.
Minutes after Providence Police saw a vehicle driven by Guerrero speed away from an area where they were investigating reports of shots fired, a traffic stop resulted in the discovery of a knapsack containing 9 mm ammunition in Guerrero’s vehicle. The investigation later determined that ten spent shell casings recovered by police from the shooting location carried the same marking as did live 9 mm cartridges retrieved from the knapsack.
“Gang violence and gun crimes sow fear on our streets and rob Rhode Islanders of the safety that every one of us deserves in all of our communities,” said U.S. Attorney Cunha. “Rather than learning from the consequences of his past crimes, this Defendant chose to reoffend and put lives at risk. Thanks to superb investigative work by the Providence Police, however, he has been held accountable yet again, and our streets are safer for it.”
“I commend the outstanding work conducted by our officers to assist in removing this dangerous career criminal from our streets,” said Providence Police Colonel Oscar L. Perez. “The continued partnership amongst our law enforcement partners has been an invaluable resource in the reduction of drug and gun violence and in this case the defendant is more than deserving of the sentence he was given. We will continue to utilize every resource available to us to make our streets safe and I thank the Office of the United States Attorney for their commitment to public safety.”
According to a government Sentencing Memorandum filed with the court, on October 21, 2019, at approximately 1:20 am, Providence Police received reports of shots fired. As they were responding, they saw a vehicle speed away from the general area. Providence Police followed the vehicle and attempted to stop it. At first, the driver refused to stop. When it did, the driver, Juan Guerrero, was uncooperative with police and refused officers’ commands. Guerrero was removed from the vehicle at gunpoint and handcuffed. Police later determined that the 16-year-old was, at the time, in the custody of the Rhode Island Training School, but was allowed home under the supervision of his mother. A knapsack containing the ammunition was discovered in the vehicle.
As detailed in court filings, a subsequent investigation by Providence Police revealed surveillance video showing several shots being fired into the air by a person that matched a physical description of Guerrero and the clothing he was wearing at the time of his arrest. The individual is seen in the video firing the gun into the air, and nine or ten muzzle flashes can be seen as shots are fired. The shell casings retrieved from the scene of the shooting and the ammunition contained in the knapsack retrieved from Guerrero’s car carried the same markings.
As a result of his arrest related to this incident, Guerrero was found to have violated the conditions of his federal supervised release and was sentenced to 24 months of incarceration.
On March 23, 2023, Guerrero pleaded guilty to a separate charge of being a felon in possession of ammunition. He was sentenced on Wednesday by U.S. District Court Judge William E. Smith to 30 months of incarceration to be followed by three years of federal supervised release. The Court ordered Guerrero to serve the additional 30-month sentence imposed today consecutive to the term of incarceration he is currently serving for violating his supervised release conditions.
The matter was prosecuted by Assistant United States Attorney Stacey A. Erickson.
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Providence Man Sentenced on Federal Drug and Firearm ChargesRead the Press Release
PROVIDENCE, R.I. – A Providence man found to be in possession of more than 500 grams of cocaine and 100 fentanyl pills, and who, as a previously convicted felon, was illegally in possession of several magazines of ammunition that he was legally prohibited from possessing, was sentenced today to twenty-six months in federal prison, announced United States Attorney Zachary A. Cunha.
Henry Arnaut, 27, pleaded guilty on February 8, 2022, to possession with intent to distribute 500 grams or more of cocaine; possession with intent to distribute fentanyl; and possession of ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year.
In November 2020, the U.S. Postal Inspection Service (USPIS), with the assistance of the FBI’s Rhode Island Safe Streets Gang Task Force, began a Project Safe Neighborhoods Investigation into the shipment of packages to Arnuat’s residence. A search warrant was obtained for a suspicious package addressed to Arnaut and it was found to contain a significant quantity of cocaine. Arnaut was arrested on February 8, 2021, shortly after claiming the package at the U.S. Post Office. A court-authorized search of Arnaut’s residence that day resulted in the seizure of an additional quantity cocaine, approximately 100 fentanyl pills, $1,180 in cash, several magazines, and ammunition.
The total amount of cocaine seized from the package and from Arnaut’s residence exceeded 500 grams. Arnaut, previously convicted of a felony and sentenced to a term exceeding one year, was legally prohibited from possessing ammunition.
U.S. District Court Chief Judge John J. McConnell, Jr., today sentenced Arnaut to twenty-six months of incarceration to be followed by three years of federal supervised release.
The case was prosecuted by Assistant U.S. Attorney Stacey A. Erickson.
This case was investigated and 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.
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Former North Kingstown Man Sentenced for Transferring Obscene MaterialRead the Press Release
PROVIDENCE – A former North Kingstown man who transferred sexually explicit material to another person online, after the other person represented that he was a 10-year-old child, has been sentenced to five years of federal probation, announced United States Attorney Zachary A. Cunha.
Neil Streich, 60, whose currently resides in West Warwick, pleaded guilty in October 2020 to a charge of importation or transportation of obscene material.
Streich admitted that in March 2020, he transferred three sexually explicit videos of himself via Kik, an Internet-based text and social media platform, to a person who was posing as a 10-year-old girl. Streich made the transfer after approximately one week of communications with the person who was, in fact, an FBI undercover agent based in Pennsylvania who was assigned to the FBI Violent Crimes Against Children Task Force.
At the time of Streich’s arrest, FBI agents, with the assistance of the North Kingstown Police Department and the United States Marshals Service, executed a court-authorized search of Streich’s residence and seized electronic devices owned by Streich. A forensic examination of the devices revealed images and videos from Streich’s communications with the undercover agent.
Streich was sentenced on Thursday by U.S. District Court Judge William E. Smith to a term of five years of probation and ordered to pay a $5,000 fine.
The case was prosecuted by Assistant United States Attorneys Milind M. Shah and G. Michael Seaman.
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Nurse Practitioner Sentenced in Twelve Million Dollar Health Care Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – A registered nurse and nurse practitioner, who defrauded commercial health insurers and Medicare of nearly $12 million by devising and executing fraudulent billing schemes in three states seeking payment for patient services that were never performed, has been sentenced to seven years in federal prison, announced United States Attorney Zachary A. Cunha.
Alexander A. Istomin, 57, pleaded guilty in October 2022 to an eleven-count Information charging him with health care fraud, mail fraud, aggravated identity theft, and causing the introduction of misbranded drugs into interstate commerce. Istomin admitted that he routinely submitted fraudulent claims for in-person patient services that he did not perform, including supposed patient visits at a “ghost office” in Rhode Island and at offices in Florida and New York. Istomin used seven different tax identification numbers while defrauding eight insurers out of a total of $11,923,686.30.
The “ghost office” was an address that Istomin maintained in East Greenwich, Rhode Island, that he claimed was part of his medical practice when, in fact, he used the location solely for the purpose of receiving mail, including fraudulently obtained insurance payments.
“By billing for services that he never performed, including at a Rhode Island location that was little more than a mail drop, Alexander Istomin thought he could make off with millions in taxpayer and insurance dollars that were meant to fund real medical care, for real people, all without consequence,” remarked U.S. Attorney Zachary Cunha. “He was very much mistaken. The sentence imposed reflects both this Office’s commitment to bring to justice individuals who perpetrate this kind of brazen fraud and abuse of our health care system, and should serve notice of the consequences for those who seek to enrich themselves through schemes like these.”
"The Office of Inspector General will continue to fervently pursue those who defraud the Medicare system. Greed, at the expense of our most vulnerable citizens, will not be tolerated," said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Today’s sentencing is a strong reminder that we will spare no resource to bring to justice those that undermine the integrity of our federal health care system and those served by it.”
“Alexander Istomin went to great lengths to conceal his multi-state, multi-million-dollar health care fraud scheme, billing for services he never provided and patients he never saw. With the proceeds of his illegally gotten gains, he bought a million-dollar home in Florida and expensive cars. This sentence is more than just, given that this is not the first time Mr. Istomin has been accused of health care fraud, nor is it his first brush with the law,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The unscrupulous tactics he used to steal from taxpayers is what drives our investigators to combat healthcare fraud. After all, these taxpayer-funded programs are designed to provide essential medical services to the elderly and disadvantaged, not to enrich corrupt health care professionals and other fraudsters.”
According to documents and information provided to the court, in many instances, patients that Istomin claimed he met with in person were, in fact, out of the country at the time of the supposed visits. On other occasions that Istomin claimed to have been seeing patients, he himself was either in a different state or another country, often visiting his native Russia.
As part of his schemes, Istomin waived copayments for some Medicare patients, despite being aware that waiving copayments is prohibited. He did so to induce his patients not to report his fraudulent billing to Medicare. Additionally, Istomin used patient names and information to get prescriptions filled at various pharmacies and be returned to him. Istomin then distributed those drugs to individuals other than those in whose names the prescriptions were filled.
On Tuesday, U.S. District Court Chief Judge John J. McConnell, Jr., sentenced Istomin to 84 months of incarceration to be followed by three years of federal supervised release; to pay a fine of $30,000; and to pay restitution to Medicare and private insurers totaling $11,923,686.30.
The case was prosecuted by Assistant U.S. Attorney Dulce Donovan, with the assistance of Assistant U.S. Attorneys Milind M. Shah and Mary Rogers.
The matter was investigated the U.S. Department of Health and Human Services, Office of Inspector General; Federal Bureau of Investigation; and the Food and Drug Administration, Office of Criminal Investigations.
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President of Rhode Island Trucking Company and Truck Computer Design Service, and Companies, Admit to Conspiring to Violate the Clean Air ActRead the Press Release
PROVIDENCE – The owner and President of a North Kingstown-based trucking company, along with his two corporations, all admitted to a federal judge in Providence today that they conspired together with trucking and diesel vehicle sales and service companies throughout the United States and with a foreign national to violate the Clean Air Act by selling and providing a software program that tampered with on-board computers in order to alter or bypass key features in emission control systems, announced United States Attorney Zachary A. Cunha.
Under the federal Clean Air Act, the Environmental Protection Agency (EPA) has established standards that limit the emission of air pollutants from various types of vehicle engines. To meet those standards, vehicle manufacturers design and install certain hardware components as part of the systems that manage and treat engine exhaust to reduce multiple types of pollution.
“Our environmental laws are here to protect the clean air that every Rhode Islander deserves to breathe,” said U.S. Attorney Zachary Cunha. “When companies choose to ignore those laws and put profit over their legal duties, and spew diesel soot and contaminants across Rhode Island and New England in the process, this Office will hold them to account.”
“Tampering with diesel vehicles by installing defeat devices increases emissions of smog and soot, both of which contribute to serious health problems that often disproportionately affect families, especially children, living in underserved communities,” stated Tyler Amon, Special Agent in Charge for EPA’s Criminal Investigation Division for New England. “Placing profit over public health in Rhode Island has clear accountability.”
According to court documents, from roughly September of 2014 through approximately August 27, 2019, Michael J. Collins, his North Kingstown company M&D Transportation, Inc.; his now-defunct computer company Diesel Tune-Ups of RI, Inc.; various trucking and diesel vehicle sales and repair companies throughout the United States; and a foreign national all conspired to alter or disable certain functions of the Electronic Control Modules (ECM) and On Board Diagnostic (OBD) monitoring systems of heavy-duty diesel vehicles such as semi-trucks or “big rigs.” These alterations were referred to in the industry as “tunes.”
In exchange for a fee, the foreign national would download tuning software through a laptop computer, provided by Collins and his companies, that was then connected to each vehicle. The tuning business was marketed on Facebook, with claims that it provided increased power and better fuel mileage and offered tuning for “BigRig semi-trucks & engines” including tuning related to emission control equipment. The Facebook page directed interested companies to contact a Rhode Island telephone number associated with Collins, M & D and Diesel Tune-Ups.
When tuning was done through a laptop computer, Collins instructed the Companies to call the foreign national for further instructions once they had received the laptop. Through a remote connection, the “tunes” were then downloaded onto each vehicle’s ECM or computer to reprogram the vehicle’s monitoring systems. The tunes tampered with the vehicle’s monitoring systems so that they would not detect malfunctions in the emission control components, thereby allowing vehicles to operate without proper emission controls. As a result, “tuned” vehicles could run with increased horsepower and torque, which can reduce maintenance and repair costs, but which results in significant increases in pollutant emissions. Often, installation of the “tunes” was undertaken in concert with diesel sales and service centers that were making other changes to trucks’ pollution control systems. Collins also employed the same techniques to circumvent emission controls on some of M & D's own diesel vehicles.
Customers paid Collins’ companies between $1,700 and $3,650 for each vehicle tuned. Collins and his companies wired a portion of the funds to their foreign co-conspirator and retained a portion of the funds for themselves. From at least March of 2017 through at least June 1, 2018, Collins either deposited or caused to be deposited into the Diesel Tune-Ups bank account fees received from approximately 25 different diesel trucking or repair shops throughout the United States.
According to court documents, diesel exhaust is known to contain a variety of air pollutants identified as hazardous air pollutants under the Clean Air Act. The act of completely removing or disabling a vehicle's emission control system can increase pollutant emissions, presenting a risk to the environment and public health. More recent testing conducted by EPA indicates that the pollutant increase is even greater when the emission controls are deleted from commercial semi-tractor trailer trucks.
Collins, M&D Transportation, and Diesel Tune Ups of RI pleaded guilty to conspiracy to violate the Clean Air Act. They are scheduled to be sentenced on July 10, 2023. The defendant’s sentence will be determined by United States District Judge Mary S. McElroy after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant United States Attorney John P. McAdams.
The matter was investigated by the Environmental Protection Agency Criminal Investigation Division - Boston Area Office.
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Contractor and His Wife Charged with Bankruptcy Fraud, Money Laundering, and Wire FraudRead the Press Release
PROVIDENCE – A North Kingstown self-employed contractor who “flipped houses,” and his wife, have both been charged in federal court with executing schemes to conceal substantial assets from the U.S. Bankruptcy Court in Providence, as well as money laundering and wire fraud, announced United States Attorney Zachary A. Cunha.
Court documents allege that Ernest P. Ricci and his wife, Brenda L. Ricci, have been accruing large, outstanding debts to creditors and to the IRS dating back to 2004, and that they have engaged in conduct designed to evade their creditors since 2011. It is alleged that, in October 2017, Ernest Ricci filed a Chapter 7 Bankruptcy Petition to protect a $1.5 million dollar home in Florida that he and his wife used as both rental property and a vacation home. Bank records indicate that Ricci has failed to make any mortgage payments on the property since at least 2012.
Ricci and his wife are alleged to have concealed assets and knowingly made false representations and omissions in filings with the U.S. Bankruptcy Court. Specifically, according to court documents, Ricci swore under oath that he had been unemployed for many years; that he had no income, no bank accounts, and no assets or properties other than the Florida home; and that he garnered no compensation of any kind from his wife’s company. In those bankruptcy filings, Ricci at first claimed liabilities in excess of $200,000,000 against assets of $1.3 million. He later amended his filings to claim liabilities of more than $2.3 million.
In reality, however, it is alleged that Ricci, before filing for bankruptcy, Ricci transferred all the assets of his business: Premier Home Restoration LLC (Premier) in order to shield those assets from his creditors. While Ricci claimed in bankruptcy filings that, following the transfer of the company’s assets, he performed services for Premier without compensation, according to court documents, an investigation determined that, in fact, Ricci continued to control Premier, ran its day-to-day operations, and made use of company financial resources to maintain his lifestyle. Among other falsehoods, it is alleged that Ricci failed to truthfully disclose his monthly income; rental income from his Florida property and income from property he owned in New Hampshire; failed to disclose an actual Rolex watch as an asset (he allegedly went so far as to produce a fake watch for the Bankruptcy Trustee to examine); and failed to disclose ownership of a boat he was offering for sale as late as February 2023. Additionally, Ernest and Brenda Ricci allegedly falsely claimed, under oath, that Ernest Ricci held a $200,000 mortgage in the name of another person for the New Hampshire property that, in fact, he owned and for which he was collecting rent.
It is further alleged that, after the Bankruptcy Trustee was declared to be the equitable owner of Premier, Ernest and Brenda Ricci fraudulently applied for COVID-related Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) from the Small Business Administration, supposedly to pay Premier employees and to company expenses. When filing, they failed to disclose that the Trustee was the owner of Premier, and that they were involved in bankruptcy proceedings.
It is alleged that, after fraudulently obtaining the EDIL and PPP funds, Ernest and Brenda Ricci committed money laundering by conducting a series of financial transactions designed to conceal the location, ownership, and control of the PPP and EDIL proceeds, and to use those funds to purchase rental property in Warwick, RI, in the name of another person.
Additionally, it is alleged that Ernest Ricci fraudulently applied for and received COVID-related unemployment benefits from the Rhode Island Department of Labor and Training at the same time he collected approximately $84,370 rental property income from his New Hampshire property.
Court documents detail a number of alleged stalling tactics, frivolous pleadings, and fraudulent claims by Ernest Ricci, including claims that he was indigent, during the years’ long bankruptcy proceedings. Documents also detail numerous combative communications allegedly sent by Ernest to the bankruptcy Trustee, some laced with profanities.
Ernest and Brenda Ricci were arrested by FBI agents on Friday and charged by way of federal criminal complaints filed by the United States Attorney’s Office. Ernest P. Ricci is charged with Bankruptcy Fraud; Wire Fraud; and Money Laundering; Brenda L. Ricci is charged with Aiding and Abetting Bankruptcy Fraud; Aiding and Abetting Concealment of Assets in Bankruptcy; Aiding and Abetting Wire Fraud; and Aiding and Abetting Money Laundering.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by the FBI, Internal Revenue Service Criminal Investigation, and the United States Bankruptcy Trustee.
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North Providence Man Sentenced to Thirty Years in Federal Prison for Sexual Exploitation of Minors, Possession of Child PornographyRead the Press Release
PROVIDENCE – A North Providence man who previously admitted to a federal judge that he coerced and sexually assaulted two minor females, assaults that he recorded and retained on his cell phone, was sentenced today to thirty years in federal prison, announced United States Attorney Zachary A. Cunha.
In pleading guilty to two counts of sexual exploitation of a minor and one count of possession of child pornography, Francis Scott, 42, admitted that on February 14, 2017, while falsely posing as a ride-share driver, he offered a ride to a 15-year-old girl who requested that she be brought to her Providence school. Rather than driving her to the school, Scott drove the girl to a secluded area behind some commercial buildings where, after taking her cell phone from her, he coerced and sexually assaulted her. Scott recorded the assault on his cell phone.
Additionally, Scott admitted to coercing and sexually assaulting a 17-year-old female months earlier. Scott admitted that after he offered the 17-year-old female a ride, he provided her with marijuana and sexually assaulted her. The victim told police that, in addition to providing her with marijuana, Scott provided her with alcohol, and that she felt drugged before passing out. Scott recorded the sexual assault on his cell phone.
“The degradation, exploitation, and depravity represented by this defendant’s abuse of his victims - and his recording of those acts for his own obscene enjoyment, are contemptible,” remarked U.S. Attorney Cunha. “Today’s sentence should serve notice that we will bring to bear every law enforcement resource to address this kind of appalling abuse of children.”
According to court documents, the Providence Police Major Crimes Unit, the Providence Police Special Victims Unit, and the FBI’s Child Exploitation Unit also discovered videos allegedly filmed by Scott of him engaging in sex acts with numerous unidentified women, some of whom appear in the videos to be unconscious or semi-conscious.
Scott was sentenced today by U.S. District Court Judge William E. Smith to 360 months of incarceration in federal prison to be followed by 20 years of federal supervised release. Additional charges against Scott are pending in Rhode Island state court.
The case in U.S. District Court was prosecuted by Assistant U.S. Attorney Denise M. Barton.
United States Attorney Cunha thanks the Rhode Island Attorney General’s Office for their assistance in preparing the case charged in federal court.
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Former IT Director Admits to Embezzling More Than $1MRead the Press Release
PROVIDENCE – A former IT Director for a Warwick, RI, metals fabrication and supply company pleaded guilty on Wednesday to a charge of wire fraud, admitting to a federal judge that he used his purchasing authority to embezzle more than one million dollars from the company, announced United States Attorney Zachary A. Cunha.
Juan Hicks, 47, of New Bedford, MA, admitted that he defrauded AT Wall Companies by: creating false invoices and expense reports payable to himself; altering legitimate credit card statements to make purchases appear to be business expenses, when, in fact, they were for Hicks’ personal expenses; issuing company phones to himself and six family members and then enrolling the phones on the company’s wireless phone service plan; by submitting invoices and using company credit cards to purchase airline and entertainment tickets for himself, family members and friends; and by also using those company cards to make purchases at retail stores and auto repair centers.
Hicks’ criminal conduct came to light in March 2022, when AT Wall Companies hired forensic analysts to determine the source of a cyberattack and to assess vulnerabilities in its computer system. Hicks refused to provide his computer and passwords, as per company policy. Information and analysis provided by the company to the Warwick Police Department, Homeland Security Investigations, and the United States Attorney’s Office subsequently revealed that Hicks had embezzled over one million dollars from the company since 2012.
Hicks is scheduled to be sentenced on June 20, 2023. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
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Career Offender Sentenced to Six Years in Federal PrisonRead the Press Release
PROVIDENCE – A 37-year-old Woonsocket man previously arrested more than two dozen times and convicted on nearly four-dozen charges, including assault, domestic assault, and drug trafficking, has been sentenced to six years in federal prison for his leadership role in a drug trafficking conspiracy, announced United States Attorney Zachary A. Cunha.
Juan Batista was among nearly two-dozen individuals arrested and charged during an expansive investigation, initiated in January 2020by the FBI Rhode Island Safe Streets Gang Task Force that targeted sources of supplies and suppliers of drugs and firearms across Rhode Island.
According to information presented to the court, not long after he was released from prison for trafficking in narcotics, and while still serving an eleven-year term of probation, Batista rebuilt his drug trafficking business in and around Woonsocket. His resumed drug trafficking activities included trafficking in fentanyl, powder cocaine, and crack cocaine.
Between February 26, and June 23, 2020, members of the FBI Task Force surveilled at least six occasions when drug purchases were requested from, and delivered by, members of the conspiracy, at times including Batista himself. The transactions included deliveries of between 6.74 and 33.98 grams of crack cocaine and 5.3 grams of fentanyl, for between $360 and $1,800. Law enforcement also seized over $18,000 in cash, 5 grams of cocaine, 35 grams of crack cocaine, and 120 grams of fentanyl inside a residence where Batista was living.
Batista pleaded guilty on May 5, 2021, to conspiracy to distribute 28 or more grams of cocaine base, distribution of 28 or more grams of cocaine base, and possession with intent to distribute 40 or more grams of fentanyl. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 72 months in federal prison to be followed by four years of federal supervised release.
The case was prosecuted by Assistant U.S. Attorney Christine D. Lowell.
The Rhode Island FBI Safe Streets Gang Task Force consists of agents and law enforcement officers from the FBI, United States Marshals Service, Central Falls Police Department, Cranston Police Department, Pawtucket Police Department, Providence Police Department, West Warwick Police Department, Woonsocket Police Department, and Rhode Island State Police.
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Providence Man Sentenced for Fraud, Theft of Government Funds, and Identity Theft Committed While on Federal Supervised Release for Sex TraffickingRead the Press Release
Mackenzy Scott, 26, began filing fraudulent applications for pandemic-related benefits on March 28, 2020, one day after the CARES Act, passed by Congress to provide economic assistance programs in response to the COVID-19 pandemic, became law. Scott’s fraudulent activity was discovered in February 2021 by a United States Probation Officer, during an investigation into alleged violations of the terms of Scott’s federal supervised release related to his earlier conviction for sex trafficking.
Scott used his own name and the names of others to carry out the scheme in an attempt to collect COVID-related, federally-funded unemployment benefits from state agencies in ten states: North Dakota, Massachusetts, Arizona, Nevada, Kentucky, Texas, Hawaii, Pennsylvania, Michigan, and Indiana. In each of the applications he filed, Scott made false statements about employment and/or his residence.
Scott pleaded guilty on December 21, 2022, to conspiracy to commit wire fraud, seven counts of wire fraud, theft of government money, and four counts of aggravated identity theft. He was sentenced on Tuesday by U.S. District Court Chief Judge John J. McConnell, Jr., to 30 months of incarceration to be followed by 3 years of federal supervised release. Scott was ordered to pay restitution in the amount of $16,336.
These matters and other cases of alleged criminal activity related to fraudulent applications for unemployment insurance benefits due to the pandemic are being investigated jointly by the FBI and Rhode Island State Police, with the assistance of the U.S. Department of Labor, Office of Inspector General. Cases are jointly reviewed, charged, and prosecuted by a team of prosecutors to include Assistant U.S. Attorneys Stacey A. Erickson, Denise M. Barton, G. Michael Seaman, and Rhode Island Assistant Attorney General John M. Moreira, chief of the Rhode Island Attorney General’s Public Integrity Unit. Assistant U.S. Attorney Lee H. Vilker represented the government at today’s sentencing hearing.
Rhode Islanders who believe their personal identification has been stolen and used to fraudulently obtain unemployment benefits are urged to contact the Rhode Island State Police at [email protected] or the FBI Providence office at (401) 272-8310.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID- 19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Rhode Island Woman Sentenced to Federal Prison for Falsifying Military Service; False Use of Military Medals; Identity Theft; and Fraudulently Collecting More Than $250,000 in Veteran Benefits and Charitable ContributionsRead the Press Release
PROVIDENCE – A Rhode Island woman who never served in the U.S. Military but perpetrated a massive fraud scheme by falsely masquerading as a Purple Heart and Bronze Star-decorated United States Marine who claimed to have been wounded by an IED in Iraq and to have developed service-related cancer was sentenced today to nearly six years in federal prison, announced United States Attorney Zachary A. Cunha.
Sarah Jane Cavanaugh, 32, whose near-daily criminal conduct over a period of five years is described in court documents as being “among the more reprehensible seen in this District from a fraud defendant,” defrauded veterans, veterans’ organizations, veterans’ charities, friends, and co-workers in a “methodical and calculated manner.”
Cavanaugh previously admitted to a federal judge that, while employed as a civilian by the Department of Veterans Affairs at the Rhode Island Veterans Affairs Medical Center, a role in which she was supposed to help and support military veterans, she used her position to misappropriate veterans’ identities, their combat experiences, their diagnoses of illnesses, and their valor to devise schemes to enrich herself by using the stolen information to obtain more than $250,000 in cash, charitable donations, and services reserved for injured veterans.
“Sarah Cavanaugh’s conduct in the course of her scheme is nothing short of appalling,” remarked U.S. Attorney Cunha. “By brazenly laying claim to the honor, service, and sacrifice of real veterans, this defendant preyed on the charity and decency of others for her own shameless financial gain. I am grateful that, with today’s sentence, she has been brought to justice and will face the consequences of her actions.”
“Today’s sentencing sends a strong message to those who would represent themselves as something they’re not in order to profit from the kindness and respect shown to our nation’s deserving veterans,” said Special Agent in Charge Christopher Algieri of the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “The VA OIG thanks the United States Attorney’s Office and our law enforcement partners for their efforts in bringing this defendant to justice.”
"Individuals who falsely represent themselves as decorated veterans of the U.S. Armed Forces degrades the service of the men and women who selflessly serve our country," said Patrick J. Hegarty, Special Agent in Charge of the Defense Criminal Investigative Service Northeast Field Office, the law enforcement component of the Department of Defense Office of Inspector General. "Profiting from such an egregious scheme is an affront to the U.S. military's long-standing tradition of honoring and awarding its brave service members. Today's sentencing demonstrates our commitment to work with our law enforcement partners and the U.S. Attorney's Office to investigate allegations of stolen valor."
“Ms. Cavanaugh deserves to be held fully accountable for falsely claiming to be wounded Marine veteran as part of a reprehensible scheme to collect more than $250,000 in veterans benefits and charitable contributions that should have been directed to real veterans in need,” said Special Agent in Charge Michael T. Wiest of the NCIS Northeast Field Office. “NCIS and our partners remain committed to investigating all allegations of fraud that harms Department of the Navy service members and their families.”
“Sarah Cavanagh feigned having cancer, and falsely claimed valor where there was none, to gain hundreds of thousands of dollars in benefits and charitable donations. Her actions are an insult to every veteran who has served our country, and today she learned her fate for her criminal conduct,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Make no mistake, the FBI and our law enforcement partners are committed to seeking justice for anyone who lies about serving our country and illegally takes money from federal programs that help veterans who rightfully deserve it.”
Court documents detail Ms. Cavanaugh’s “repugnant” criminal activity: falsely purporting to be a combat-injured veteran allowed her to gain introduction to, and acceptance by, friends, charities, businesses, and organizations whom she then exploited and/or defrauded. Nine veterans’ charities combined to fund Cavanaugh’s travel to retreats, in-home care, gym memberships, physical therapy, paying electric bills, and provided donated gift cards for use in obtaining groceries and other essentials. Cavanaugh also used false documentation to fraudulently obtain months of paid leave from two federal employee benefit programs based on her cancer claims.
Even more brazenly, Cavanaugh exploited her purported experiences to assume leadership roles in the veteran community, including as commander of a VFW Post in North Kingstown, RI; gave public speeches while dressed in full U.S. Marine uniform, complete with a Purple Heart and Bronze Star that she purchased on the internet; and secured a spot in an arts program at the University of Southern California, a program she described to a U.S. Army veteran she met through the Wounded Warrior Program who was later accepted into the program. In a letter to the court, the Army veteran faulted Cavanaugh for taking “a spot [in the program] from another veteran who could have participated in the program and, ultimately, may not have committed suicide.”
Sarah Cavanaugh pleaded guilty on August 9, 2022, to wire fraud, aggravated identity theft, forged military discharge certificate, and fraudulent use of military medals. She was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 70 months in federal prison to be followed by 3 years of federal supervised release. Additionally, the court ordered Cavanaugh to pay restitution to all victims perpetrated by her fraud totaling $284,796.82. The court also issued an order that the federal government reinstate a total of 261 hours of federal employee paid leave time they donated to Cavanaugh.
The case was prosecuted by Assistant United States Ronald R. Gendron.
The matter was investigated by the U.S. Department of Veterans Affairs Office of Inspector General; U.S. Department of Veterans Affairs Police Service; U.S. Defense Criminal Investigative Service; U.S. Naval Criminal Investigative Service; FBI; U.S. Postal Inspection Service; and Internal Revenue Service Criminal Investigations.
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Providence Resident Sentenced for Pandemic-Related Benefits Fraud and Aggravated ID TheftRead the Press Release
PROVIDENCE – A Providence man who, with others, fraudulently applied for over $90,000 in pandemic-relief unemployment benefits, and who actually received over $30,000 of those benefits, some of which he boasted that he used to purchase firearms, an iPhone and marijuana, has been sentenced to two years in federal prison, announced United States Attorney Zachary A. Cunha and Rhode Island Attorney General Peter F. Neronha.
According to court documents, Rashaad Hill, 23, who had been employed in both Rhode Island and Massachusetts prior to the start of the pandemic, fraudulently applied for and received $31,540 in pandemic-relief benefits from the states of Arizona and California. Hill and others shared stolen identities - including names, dates of birth, addresses, and Social Security numbers – when filing some fraudulent benefits claims.
According to court filings, Hill used some of his ill-gotten unemployment benefits to purchase, among other things, four firearms, boasting in text messages to his friends, “I got an iPhone and my stimmy went to weed and guns.”
Hill pleaded guilty on July 27, 2022, to charges of conspiracy to commit wire fraud; wire fraud; aggravated identity theft; and theft of government funds. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 24 months of incarceration to be followed by 12 months of supervised release. Hill was ordered to pay restitution in the amount of $34,500.
These matters and other cases of alleged criminal activity related to fraudulent applications for unemployment insurance benefits due to the pandemic are being investigated jointly by the FBI and Rhode Island State Police, with the assistance of the U.S. Department of Labor. Cases are jointly reviewed, charged, and prosecuted by a team of prosecutors to include Assistant U.S. Attorneys Stacey A. Erickson, Denise M. Barton, G. Michael Seaman, and Rhode Island Assistant Attorney General John M. Moreira, chief of the Rhode Island Attorney General’s Public Integrity Unit.
Rhode Islanders who believe their personal identification has been stolen and used to fraudulently obtain unemployment benefits are urged to contact the Rhode Island State Police at [email protected] or the FBI Providence office at (401) 272-8310.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID- 19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Former Massachusetts Resident Admits to Methamphetamine Trafficking in Rhode IslandRead the Press Release
PROVIDENCE – A former Pepperell, MA, man arrested during an FBI Safe Streets Task Force drug trafficking investigation that led to the seizure of more than 461 grams of pure crystal methamphetamine pleaded guilty in federal court in Providence today to conspiracy and drug trafficking charges, announced United States Attorney Zachary A. Cunha.
According to information presented to the court, Peter Walkovich, 38, was arrested on May 22, 2022, shortly after he drove away from a Cranston residence in a vehicle that was found to contain three backpacks and various other packaging materials that held a total of 461.23 grams of 100% pure methamphetamine. The residence was under surveillance by FBI Safe Streets Task Force agents at the time. Also seized was a total of $21,711 in cash.
Walkovich pleaded guilty as charged by way of indictment to conspiracy to distribute and possess with intent to distribute methamphetamine, and to a charge of possession with intent to distribute methamphetamine. Walkovich is scheduled to be sentenced on June 15, 2023. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
A co-defendant in this matter, Charles Bersch, 38, of Providence, RI, is awaiting trial on similar charges. A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The cases are being prosecuted by Assistant United States Attorney Paul F. Daly, Jr.
United States Attorney Cunha thanks the Cranston and Central Falls Police Departments and the DEA for their assistance in the investigation of this matter.
The FBI Safe Streets Task Force consists of agents and law enforcement officers from the FBI, Rhode Island State Police, the Providence, Cranston, Woonsocket, Pawtucket, West Warwick, and Central Falls Police Departments, and the U.S. Marshals Service.
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Operators of Addiction Treatment Chain Charged in Alleged Health Care FraudRead the Press Release
PROVIDENCE – The Massachusetts operator of a chain of addiction treatment clinics is charged in federal court in Providence, RI, with millions of dollars of health care fraud, aggravated identity theft, money laundering and obstruction, announced United States Attorney Zachary A. Cunha. In addition, the treatment center and its former supervisory counselor were also charged with health care fraud.
Michael Brier, 60, of Newton, MA, Mi Ok Bruining, 62, of Warwick, RI, and Recovery Connections Centers of America, Inc. (RCCA) are charged by criminal complaint with health care fraud. Michael Brier was also charged in the complaint with aggravated identity theft, money laundering and obstruction.
It is alleged in court documents that, Brier, Bruining, and RCCA shortchanged Rhode Island and Massachusetts substance abuse disorder patients out of much needed counseling and treatment services, while defrauding Medicare, Medicaid, and other health insurers out of millions of dollars.
At a press conference announcing the culmination of this investigation and resulting criminal charges and arrests, United States Attorney Zachary A. Cunha commented, “What makes the fraud scheme that we have charged today particularly pernicious – is that not only was this scheme, as we allege, designed to defraud by enriching these defendants with federal and private healthcare dollars they did not earn, but that in the process it cheated a vulnerable population of recovery patients out of the full, genuine support and treatment that they need to have a chance at recovery.”
"Today’s arrests serve as a strong reminder that we will not tolerate fraud schemes that target our federal health care programs, as alleged, nor will we accept anything less than high quality care for the people served by those programs,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General. “Our agency’s mission is to protect the well-being of the public and the integrity of the federal health care system, and we will hold accountable those who seek to exploit the opioid epidemic for personal gain.”
“Today, we arrested and charged Michael Brier, Mi Ok Bruining, and Recovery Connections Centers of America, for a wide-ranging scheme in which they are accused of abusing our health care system, cheating taxpayers, and leveraging the opioid crisis to take advantage of those struggling with substance abuse so the company could rake in millions,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The allegations set forth in this case represent one of the most brazen and egregious examples of health care fraud the FBI has seen here in Rhode Island in recent history, and make no mistake, it is not a victimless crime. Anytime the integrity of our federal health care programs is undermined, we all pay the price through the cost of higher insurance premiums, greater out-of-pocket expenses, and co-pays, and even reduced or lost benefits.”
According to the charging documents, Brier, Bruining and RCCA operated a chain of addiction treatment centers but failed to provide the patients with the required counseling sessions and treatment, while simultaneous billing Medicare, Medicaid and other health care payors for 45-minute counseling sessions on a routine basis even though the sessions were not more than 15 minutes, and often only 5-10 minutes or less. At times, so many counseling sessions were billed at this level that the total amount of time would be impossible for the available therapist to have provided in any 24 hours period.
Brier and RCCA are also alleged to have caused a fraudulent application to be submitted to Medicare which, among other things, misrepresented and concealed the role that Brier was playing in the business and failed to disclose Brier’s 2013 criminal conviction for federal tax crimes, which was relevant to Medicare’s consideration of the application.
The Complaint also alleges that Brier purported to practice medicine and wrote and caused to be filled fraudulent prescriptions using the names and prescriber information, including Drug Enforcement Administration numbers, of doctors without their permission.
Brier is also alleged to have falsified a document in a matter within the jurisdiction of an agency of the United States by causing the Medical Director to sign a false and back-dated document.
The complaint alleges that defendants caused millions of dollars in fraudulent billings to be submitted to Medicare and millions more in fraudulent billings to other health care payors.
The government is also seeking to forfeit thirteen bank accounts, two buildings, and two vehicles allegedly realized by the defendants as a result of the alleged criminal conduct.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorneys Sara Miron Bloom and Kevin Love Hubbard.
The matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation. United States Attorney Cunha thanks the IRS, Customs and Border Protection, and the Rhode Island Office of the Attorney General for their assistance in the investigation.
Additionally, United States Attorney Cunha thanks the United States Department of Health and Human Services and the Centers for Disease Control, and their partners in Rhode Island and Massachusetts, for their quick response to establish services for patients who may be impacted by this law enforcement action.
Additionally, United States Attorney Cunha thanks the United States Department of Health and Human Services Centers for Disease Control and Prevention’s Opioid Rapid Response Program, and their partners in Rhode Island Department of Behavioral Healthcare and Massachusetts Department of Public Health, for assisting patients who may be impacted by this law enforcement action.
Rhode Island Department of Behavioral Healthcare, Developmental Disabilities and Hospitals is working to assure continuity of treatment for RCCA patients. Rhode Island patients in need of a new or immediate bridge prescription are urged to call (401) 606-5454; Rhode Island patients in need of behavioral health referrals for physicians, counselor, or clinic information may call (410) 414-LINK.
Massachusetts Department of Public Health, Bureau of Substance Addiction Service is working to assure continuity of care and treatment RCCA patients. Massachusetts patients in need of a new or immediate bridge prescription are urged to call (617) 414-4175; Massachusetts patients in need of behavioral health referrals for physicians, counselor, or other services may call (800) 327-5050 or use helplinema.com.
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Two Sentenced for Roles in Drug Trafficking Organization That Imported 37 Kilos of Cocaine into Rhode IslandRead the Press Release
PROVIDENCE – A leader of a long-running drug trafficking organization (DTO) that used the U.S. Postal Service to import 37 kilograms of cocaine into Rhode Island from Puerto Rico, along with a co-conspirator who provided addresses for mailing and retrieved many of the packages of cocaine, were sentenced to federal prison today, announced United States Attorney Zachary A. Cunha.
Arcadio Torres, 41, of North Smithfield, sentenced today to eight years in federal prison, previously admitted to a federal judge that, as a leader of the DTO, he worked with family members and co-conspirators to have kilogram quantity parcels of cocaine regularly shipped to addresses in Rhode Island; that he tracked many of the shipments and watched as they were delivered and retrieved by other members of the DTO; and that he coordinated with co-conspirators to store the cocaine for him.
Nelson Carvalho, 48, of Cranston, sentenced today to more than seven years in federal prison, previously admitted to the court that he provided members of the DTO with residential and business addresses in Rhode Island as destinations for U.S. Priority mail parcels, each containing approximately one kilogram of cocaine. Carvalho also discussed arrival dates and retrieval of the parcels with co-conspirators; retrieved the packages from locations throughout Rhode Island, including his work address; transported the cocaine to co-conspirators in Rhode Island; and performed other functions as needed to facilitate the operations of the DTO.
At least eleven of the parcels were shipped to Women and Infants Hospital, where Carvalho was employed as a mail courier, addressed to names provided to the DTO by the defendant. Carvalho retrieved the packages from the Hospital mail and provided them to other co-conspirators.
Torres, who pleaded guilty on June 30, 2022, to conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine, was sentenced today by U.S. District Court Judge Mary S. McElroy to 96 months in federal prison to be followed by 4 years of federal supervised release.
Carvalho, who pleaded guilty on August 1, 2022, to conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine, was sentenced today by U.S. District Court Judge Mary S. McElroy to 90 months in federal prison to be followed by 4 years of federal supervised release.
Co-conspirators George Mojica, 42, and Angel Delgado, 25, of Central Falls, previously admitted to a federal judge that they participated in the conspiracy and performed various functions to assist the DTO. Mojica and Delgado were sentenced in May 2022 to serve seven years and five years in federal prison, respectively.
The cases were prosecuted by Assistant U.S. Attorney Denise M. Barton.
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Twice Convicted Drug Trafficker Detained in Third Drug Trafficking InvestigationRead the Press Release
PROVIDENCE – A United Parcel Service employee twice convicted and incarcerated for trafficking kilos of heroin, and, who allegedly used his position at UPS to attempt to locate a package shipped from Columbia that contained multiple kilograms of cocaine, has been ordered detained in federal custody on drug trafficking charges, announced United States Attorney Zachary A. Cunha.
In November 2022, Custom and Border Protection intercepted a package sent from Colombia and it was discovered that it contained cocaine packed inside of two ball bearings. When the package failed to be delivered to one of several addresses associated with Levys Tovar, 43, of Central Falls and Pawtucket, Tovar allegedly inquired of a customer service supervisor where he worked as to the location of the package. Tovar allegedly claimed that he was attempting to locate the package “for his neighbor.”
Information obtained by Homeland Security Investigations determined that the intended delivery address was the home Tovar shared with his girlfriend and that the “neighbor” Tovar described did not exist.
Tovar, charged by way of a criminal complaint with conspiracy to distribute and possess with the intent to distribute over 500 grams of cocaine and unlawful use of a communication facility (including the mails) to facilitate the distribution of a controlled substance, was ordered detained following his arrest on Monday.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
According to court records, Tovar was convicted in federal court in 2004 of possession with intent to distribute one kilogram of heroin, and again in 2011on a charge of attempt to possess with intent to distribute one kilogram or more of heroin. Tovar is currently on supervised release for the 2011conviction, and is scheduled to return to court on March 7, 2023, for an initial appearance as an alleged violator of supervised release.
The case is being prosecuted by Assistant United States Attorney Stacey A. Erickson.
The matter was investigated by Homeland Security Investigations’ Northeast Corridor Border Enforcement Team; Custom and Border Protection; and the Central Falls, Pawtucket, Providence, and Warwick Police Departments.
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Cumberland Man Sentenced to Federal Prison for Possessing Child PornographyRead the Press Release
PROVIDENCE – A Cumberland man who accessed and downloaded images and videos of child pornography, including images of prepubescent children, was sentenced today to nearly three years in federal prison, announced United States Attorney Zachary A. Cunha.
In January 2022, the National Center for Missing and Exploited Children provided Homeland Security Investigations (HSI) with information that they obtained from a Canadian-based online messaging and chat service that, on multiple dates, an IP address and email, later determined by law enforcement to belong to Patrick K. Newton, 27, was used on multiple dates to access and view child pornography.
On March 30, 2022, HSI agents and members of the Rhode Island State Police Internet Crimes Against Children Task Force executed a court-authorized search of Newton’s residence and found that electronic media storage devices possessed by Newton contained videos and images of child pornography.
Newton pleaded guilty on October 17, 2022, to a charge of possession of child pornography. He was sentenced today by U.S. District Court Judge Mary S. McElroy to thirty-three months in federal prison to be followed by five years of federal supervised release.
The case was prosecuted by Assistant United States Attorney Paul F. Daly, Jr.
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Three Sentenced in “Grandparent Scam” Conspiracy that Defrauded Rhode Island SeniorsRead the Press Release
PROVIDENCE – Three men have been sentenced to federal prison for their roles in a “grandparent scam” conspiracy that defrauded more than a dozen Rhode Island seniors between the ages of seventy-nine and ninety-four out of more than $300,000, announced United States Attorney Zachary A. Cunha.
At least fourteen Rhode Island seniors were contacted by members of the conspiracy who impersonated family members or attorneys, claiming that a family member, often a grandchild, had been arrested and was in immediate need of cash for bail payments. The victims were directed to gather cash for these fake bail payments and to provide the money to a courier who would be sent to their home.
Bryan Valdez-Espinosa, 22, and Diego A. Alarcon, 22, of Union City, NJ; and Jason Hatcher, 40, of New York, NY, previously admitted to a federal judge that in June 2021, they traveled around Rhode Island posing as the couriers, collecting cash from victims of the scam. The elder victims were defrauded out of a total of $304,081.
In July 2022, Hatcher pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft; Alarcon and Valdez-Espinosa each pleaded guilty to conspiracy to commit wire fraud.
On Friday, Alarcon was sentenced by U.S. District Court Judge William E. Smith to 30 months of incarceration to be followed by 3 years of federal supervised release, and ordered to pay restitution totaling $304,081; Valdez-Espinosa was sentenced by Judge Smith on February 13, 2023, to 30 months of incarceration to be followed by 3 years of federal supervised release, and to pay restitution in the amount of $262,240; Jason Hatcher was sentenced on November 21, 2022, to 33 months in federal prison followed by three years of federal supervised release, and ordered to pay restitution totaling $304,081.
The cases were prosecuted by Assistant United States Attorneys Lee H. Vilker , G. Michael Seaman, and Christine D. Lowell.
The matter was investigated by Homeland Security Investigations.
United States Attorney Cunha thanks the Warwick, Cranston, East Providence, Johnston, Hopkinton, Cumberland, Coventry, North Kingstown, Barrington, and Smithfield Police Departments for their assistance with the investigation.
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West Warwick Man Sentenced in Unemployment Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – A West Warwick man who admitted to a federal judge that he participated in a conspiracy to use the stolen identities of others to gain COVID related unemployment insurance benefits was sentenced today to three years in federal prison, announced United States Attorney Zachary A. Cunha and Rhode Island Attorney General Peter F. Neronha.
Richard Allen, 57, previously admitted to the court that he and other members of the conspiracy used stolen personal identifying information of other individuals, to file for COVID-related unemployment benefits in multiple states, including Ohio, Massachusetts, Arizona, and Texas. In the fraudulent applications, co-conspirators listed addresses associated with Allen to which benefit payments by check or debit card were mailed.
According to information presented to the court, Allen communicated with co-conspirators to activate fraudulently obtained benefit debit cards; withdrew funds from the debit cards; and sent a portion of the funds to co-conspirators, including via Bitcoin transactions.
Additionally, Allen admitted that he failed to report a change of income to the Social Security Administration (SSA), and specifically stated on SSA documents that “I do not receive any other type of income,” thus fraudulently continuing to collect Supplemental Security Income payments from the SSA he began receiving in June 2018.
Allen, detained in federal custody, pleaded guilty on June 29, 2022, to conspiracy to commit mail fraud, five counts of aggravated identity theft, and two counts of theft of government money. He was sentenced today by U.S. District Court Judge William E. Smith to 36 months of incarceration to be followed by 3 years of federal supervised release, and pay restitution in the amount of $152,054.
This case, as well as other instances of criminal activity related to fraudulent applications for pandemic-related unemployment insurance benefits are being investigated jointly by the FBI, the Rhode Island State Police, and the U.S. Department of Labor – Office of Inspector General. Cases are jointly reviewed, charged, and prosecuted by a team of prosecutors that include Assistant U.S. Attorneys Denise M. Barton, Stacey P. Veroni, and G. Michael Seaman, and Rhode Island Assistant Attorney General John M. Moreira, chief of the Rhode Island Attorney General’s Public Integrity Unit.
United States Attorney Cunha and Attorney General Neronha thank the Social Security Administration, Office of Inspector General for their assistance in the investigation of this matter.
Rhode Islanders who believe their personal identification has been stolen and used to fraudulently obtain unemployment benefits are urged to contact the Rhode Island State Police at [email protected] or the FBI Providence office at (401) 272-8310.
On May 17, 2021, the United States Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID- 19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Cumberland Man Sentenced to Ten Years in Federal Prison in Largest Counterfeit Pill SeizureRead the Press Release
PROVIDENCE – A Cumberland man who admitted to possessing approximately 665,728 methamphetamine-laced counterfeit Adderall® pills, the largest known seizure of its kind in the country, was sentenced today to ten years in federal prison, announced United States Attorney Zachary A. Cunha.
Dylan Rodas, 27, has been detained since his arrest on March 28, 2022, as the result of an expansive Project Safe Neighborhoods Rhode Island and DEA Drug Task Force investigation into the trafficking of methamphetamine in Rhode Island. Rodas was arrested for delivery of methamphetamine to a confidential source which had occurred earlier in the month.
At the time of his arrest, Rodas immediately provided DEA agents with information about his drug trafficking activities, including the location where he packaged and stored narcotics and that he was in possession of a number of firearms, assorted ammunition and other illegal substance. Upon searching this location, agents seized approximately 665,728 methamphetamine-laced counterfeit Adderall® pills, weighing a total of approximately 660 pounds; approximately eleven kilograms of methamphetamine powder; fake Oxycodone fentanyl-laced pills; two motorized pill presses; 250 grams of cocaine; $15,000 in cash; and seven handguns, including two “ghost guns. This is believed to be the largest seizure of counterfeit Adderall pills and among the largest single methamphetamine seizures by DEA’s New England Field Division.
Rodas pleaded guilty on September 29, 2022, to possession with intent to distribute 500 grams or more of methamphetamine. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 120 months in federal prison to be followed by five years of federal supervised release and to pay a $5,000 fine.
The case was prosecuted by Assistant United States Attorney Stacey A. Erickson.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The Rhode Island DEA Drug Task Force is comprised of personnel from the DEA; Rhode Island State Police; the East Providence, Cranston, Coventry, Newport, North Kingstown, Pawtucket, Providence, South Kingstown, Warwick, West Warwick, and Woonsocket and Amtrak Police Departments; and Rhode Island Attorney General’s Office Bureau of Criminal Identification and Investigation.
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Third Georgia-Based “Romance Scam” Co-Conspirator Convicted in Federal Court in Rhode IslandRead the Press Release
PROVIDENCE – A third member of an Atlanta-based conspiracy that bilked unsuspecting seniors in Rhode Island and several other states out of more than $3.2 million was convicted today in federal court in Rhode Island after pleading guilty to a charge of conspiracy to commit money laundering, announced United States Attorney Zachary A. Cunha.
Sadae Mills, 28, of Houston, TX, admitted to a federal judge that for approximately three months, beginning in April 2018, she agreed to receive payments that she knew had been fraudulently obtained from women through internet and app-based romance scams. Mills would take these payments, mostly in the form of money orders, cash, or wire transfers, deposit the ill-gotten funds into her bank account, and would then withdraw or transfer the proceeds, as directed by a co-conspirator. In doing so, Mills acted with the intent to conceal and disguise the nature, location, source, ownership, and control of the funds.
Mills admitted that from approximately April 25, 2018, through June 7, 2018, she received a total of $34,710 in fraud proceeds and deposited them into her bank account. Mills also admitted that she spent some of the funds; transferred some of the proceeds to other banks, as directed by co-conspirator Dominique Golden, 31, of Houston, TX; and withdrew some of the funds in cash, which she then provided to Golden.
Golden, convicted on September 1, 2022, after pleading guilty to one count of conspiracy to commit mail fraud and wire fraud, was sentenced on January 25, 2023, to 78 months in federal prison to be followed by three years of federal supervised release, and to pay restitution in the amount of $1,263,822.54, romance scam proceeds she admitted to collecting and banking.
Co-conspirator Breauna Williams, 29, of Jacksonville, NC, is awaiting sentencing, having pleaded guilty on January 17, 2023, to charges of conspiracy to commit wire fraud and conspiracy to commit money laundering. Williams is scheduled to be sentenced on April 18, 2023.
Co-conspirators Wisdom Oghenekaro Onyobeno, 42, of Atlanta, GA. and Syretta Scherer, 41, of Atlanta, GA, are awaiting trial in U.S. District Court in Providence. The trial is scheduled to be begin on May 1, 2023. Onyobeno has been in custody since his arrest on November 19, 2019.
Mills is scheduled to be sentenced on May 23, 2023. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The cases are being prosecuted by Assistant United States Attorneys Denise M. Barton and John P. McAdams.
The matter was investigated by the U.S. Postal Inspection Service, with the assistance of the Federal Bureau of Investigation, U.S. Department of Labor-Office of Inspector General, and U.S. Treasury Inspector General for Tax Administration in Atlanta.
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Providence Man Admits to Possessing More than Forty Grams of Fentanyl Six Days After Pleading Guilty to Trafficking Anabolic SteroidsRead the Press Release
PROVIDENCE – A 30-year-old Providence man today admitted to a federal judge that he possessed more than 250 grams of fentanyl and a firearm, and did so less than a week after pleading guilty, in February 2021, to conspiracy to distribute anabolic steroids, announced United States Attorney Zachary A. Cunha.
According to court documents, Mason A. Nieves previously participated in a conspiracy that distributed significantly more than 60,000 units of steroids, leading to his arrest on February 19, 2020. He pleaded guilty on February 3, 2021, to a charge of conspiracy to distribute anabolic steroids.
Six days after Nieves entered his guilty plea, and while he awaited sentencing, members of the Rhode Island State Police High Intensity Drug Area (HIDTA) Task Force executed a court-authorized search of Nieves’ Providence residence as part of an ongoing Project Safe Neighborhoods investigation into the trafficking of fentanyl in Rhode Island . During the search, law enforcement seized 251 grams of fentanyl and drug packaging materials from inside a kitchen cabinet; a loaded firearm from under Nieves’ bed; and $1,591 in cash. Today, Nieves pleaded guilty to an additional charge of possession with intent to distribute 40 grams or more of fentanyl.
Nieves is scheduled to be sentenced on June 1, 2023, for both conspiring to distribute anabolic steroids and for possessing with intent to distribute 40 grams or more of fentanyl. The defendant’s sentences will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The cases are being prosecuted by Assistant United States Attorney Christine D. Lowell.
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 gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Providence Man Admits Role in Counterfeit Check SchemeRead the Press Release
PROVIDENCE – A Providence man today admitted to a federal judge that he willingly participated in a bank fraud scheme that obtained bank routing and account information of unsuspecting individuals that were used to create and deposit counterfeit checks and withdraw funds, announced United States Attorney Zachary A. Cunha.
In pleading guilty to charges of conspiracy to commit bank fraud and bank fraud, Julio Ariza, 27, admitted that, from approximately October 28, 2020, to November 4, 2020, he arranged for and coordinated the deposit of at least seven counterfeit checks, with the intent of defrauding banks of $102,694.38.
Ariza is scheduled to be sentenced on May 16, 2023. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
A co-defendant in this matter, Nestor Concepcion, 27, of Johnston, similarly charged, pleaded guilty on January 21, 2022, and was sentenced on April 25, 2022, to sixteen months of incarceration to be followed by four years of federal supervised release. Concepcion admitted to the court that the intended loss to banks due to his criminal conduct totaled $71,717.77.
These cases are being prosecuted by Assistant United States Attorney Ly T. Chin.
The matter was investigated by the United States Postal Inspection Service.
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Massachusetts Man Sentenced to Ten Years in Prison for Attempting to Entice a Minor, Traveling to Engage in Illicit Sex, Attempting to Transfer Obscene Material to a MinorRead the Press Release
PROVIDENCE, R.I. – A Massachusetts man who engaged in a series of online communications, often of a sexual nature, with someone whom he believed to be a 12-year-old girl, and then traveled to Rhode Island with the intent of having sex with the girl and sexual contact with her younger sister, has been sentenced to ten years in federal prison, announced United States Attorney Zachary A. Cunha.
Cody J. Hansen, 38, of Orange, MA., previously admitted to a federal judge in Providence that he posted an online classified advertisement seeking to connect with “someone that likes to play when the girl is passed out.” In May 2018, he engaged in a series of online communications with a person who responded to his posting; Hansen believed that this person to be the caretaker of 12 and 8-year-old girls living in Rhode Island. The caretaker provided Hansen with an email address he could use to contact the 12-year-old girl. In actuality, Hansen was communicating with an undercover Rhode Island State Police detective assigned to the Rhode Island Internet Crimes Against Children (ICAC) Task Force.
On May 22, 2018, Hansen drove to Rhode Island and met with the person he believed to be the young girl’s caretaker. In a conversation with the undercover officer, Hansen confirmed that he knew the ages of the girls that he came to meet and to have sex with. He was immediately arrested by members of the ICAC Task Force and Homeland Security Investigations.
Hansen pleaded guilty on December 15, 2021, to attempted enticement of a minor, attempted transfer of obscene material to a minor, and travel with intent to engage in illicit sexual conduct. He was sentenced on Tuesday by U.S. District Court Chief Judge John J. McConnell, Jr., to 120 months in federal prison to be followed by twenty years of federal supervised release.
This Project Safe Childhood case was prosecuted by Assistant United States Attorney Dulce Donovan.
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Providence Man Admits to Assaulting U.S. Postal CarrierRead the Press Release
PROVIDENCE – A 19-year-old Providence man admitted to a federal judge today that he was one of two men who assaulted a U.S. Postal Service letter carrier in November 2021, while the carrier was delivering mail in South Providence, announced United States Attorney Zachary A. Cunha.
According to information presented to the court, in November 2021, Ismael Colon Pena was one of two men seated inside a BMW sedan that had stopped on a narrow South Providence street that was only wide enough to allow one vehicle to pass at a time. As the postal driver maneuvered his truck past the stopped BMW, the postman smiled at the car’s driver in acknowledgement of the brief awkwardness. This was not the end of the interaction, however, as a short time later, when the letter carrier returned to his truck after delivering a package, he was allegedly met by the driver of the BMW, Branly Ferreras-Severino, 22, of Providence. As alleged in court documents, Ferreras-Severino allegedly said, “You think it’s funny? You almost hit me. You wanna get popped?” before striking the letter carrier with his fists. Colon admitted to the court that he also assaulted the postal employee with his fist.
Colon pleaded guilty today to a charge of assault of a federal employee. He is scheduled to be sentenced on May 18, 2023. Ferreras-Severino, charged similarly, is awaiting trial.
The matter was investigated by the United States Postal Inspection Service. United States Attorney Cunha thanks the Rhode Island High Intensity Drug Trafficking Area Task Force for their assistance in the investigation of this matter.
The case is being prosecuted by Assistant U.S. Attorney Zechariah Chafee.
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Rhode Island Law Enforcement Working Collaboratively to Combat Elder FraudRead the Press Release
PROVIDENCE – “Every day, this Office sees the financial ruin and emotional devastation inflicted on elderly victims by scams and fraud schemes. The most recent FBI statistics are staggering: in 2021 nearly 100,000 American seniors reported being defrauded by scammers of $1.7 billion dollars. That’s more than just a statistic – it’s a life changing event that many never recover from, and we are determined to leverage our resources to bring to justice those who prey on our elderly and vulnerable friends and neighbors.”
That’s the sobering reality United States Attorney Zachary A. Cunha outlined today at the outset of a law enforcement elder fraud investigation and prosecution training program attended by more than sixty members of Rhode Island federal, state, and local law enforcement.
Hosted by the United States Attorney’s Office and the Rhode Island Police Chiefs’ Association, in collaboration with the United States Postal Inspection Service, today’s training program focused on identifying the most common elder fraud scams; utilizing techniques and federal laws to build a case from a one-victim complaint to identifying larger fraud networks; overcoming challenges law enforcement and prosecutors face while investigating and prosecuting elder fraud cases; the importance of collaboration between law enforcement agencies; and support and resources available for victims of crimes against the elderly.
“Elder fraud consists of financial crimes that target older people’s money or property. It includes telephone, internet, and varying mail scams, noted Bristol Police Chief Kevin M. Lynch. “As President of the Rhode Island Police Chiefs’ Association, we know that your local police will be your first call to report an incident. We pledge to work with our partners in State and Federal law enforcement and will be your advocate and champion to ensure that your property, identity, and concerns are investigated and safeguarded to the best of our ability. Do not hesitate to contact your local police department even if you are embarrassed or have questions, as knowledge and timely collaboration are key to successful outcomes.”
“The partnership between the U.S. Postal Inspection Service and the Rhode Island U.S. Attorney’s Office has always been a strong one,” said Darnell Edwards, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “Today’s training on elderly fraud investigation and prosecution highlights our joint effort to combat criminals’ ability to prey on our most vulnerable. The U.S. Postal Inspection Service remains committed to investigating and pursuing criminals to ensure the public’s trust in a safe and secure mail system.”
In addition to significant collaboration across the country between federal and state law enforcement agencies investigating and prosecuting the perpetrators of scams against the elderly, the Department of Justice recently expanded its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas. In the past year, the Justice Department notified over 550,000 individuals that they may be eligible for remission payments.
United States Attorney Cunha and Chief Lynch thank New England Institute of Technology for the use of their East Greenwich facility for today’s training program, and thank Assistant United States Attorney Denise M. Barton, Elder Justice Coordinator for the United States Attorney’s Office, and United States Postal Inspection Service Inspector Cory P. McManus for their presentations at today’s program.
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Dominican National Sentenced, Faces Deportation for Trafficking CocaineRead the Press Release
PROVIDENCE – A Dominican national detained on drug trafficking charges since March 28, 2022, today admitted to a federal judge that he acted as a member of a criminal drug conspiracy when he attempted to retrieve U.S. Priority Mail packages containing cocaine intended for later distribution, announced United States Attorney Zachary A. Cunha.
Rafael Fleury Munoz, 23, admitted that, on March 26, 2022, working with other members of the criminal drug conspiracy, he attempted, unsuccessfully, to retrieve a package from a postal carrier that had been mailed to an address in Providence. That package contained 1.15 kilograms of cocaine; two days later, Fleury Munoz successfully retrieved a different parcel, delivered to a Johnston residence, that contained 1.07 kilograms of cocaine.
Appearing today before U.S. District Court Judge Mary S. McElroy, Fleury Munoz pleaded guilty to a charge of conspiracy to distribute and possess with intent to distribute cocaine and a charge of possession with intent to distribute cocaine. Detained in federal custody since his arrest on March 28, 2022, Fleury Munoz was sentenced to time served and he was ordered turned over to Immigration and Custom Enforcement to face deportation proceedings.
The case was prosecuted by Assistant United States Attorneys Denise M. Barton and Stacey A. Erickson.
The matter was investigated by the U.S. Postal Inspection Service.
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Texas Woman Sentenced in Romance Fraud Scams that Defrauded Seniors of More than $2.6 MillionRead the Press Release
PROVIDENCE – A Houston, TX, woman who admitted to a federal judge in Providence, RI, that she collected and banked more than $1.26 million of the more than $2.5 million she and co-conspirators bilked from the unsuspecting victims of internet-based “romance scams” that they executed, was sentenced today to 78 months in federal prison, announced United States Attorney Zachary A. Cunha.
Dominique Golden, 31, previously admitted that, as part of the scam, she obtained fraudulent identification using various aliases; created business in her own name as well as in the names of her aliases; and opened multiple bank accounts using both her aliases and businesses, all for the purpose of receiving and depositing “romance scam” victim funds. From approximately February 4, 2018, through December 12, 2018, she collected and deposited a total of $1,263,822.54 into the bank accounts she controlled.
To carry out these schemes, members of the conspiracy contacted victims via the internet and app-based communication platforms, cultivated relationships of trust, convinced the victims that money was needed for an urgent purpose, and then directed the victims to send money via mail or wire transfer to various persons, including Golden. Golden admitted that she was aware that other members of the conspiracy contacted and developed relationships with the victims for the sole purpose of perpetrating the scam.
Golden admitted that, collectively, members of the conspiracy defrauded victims of approximately $2,545,041 during the period that Golden was involved in the conspiracy.
Golden pleaded guilty on September 1, 2022, to one count each of conspiracy to commit mail fraud and wire fraud. She was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 78 months in federal prison to be followed by three years of federal supervised release, and to pay restitution in the amount of $1,263,822.54.
“Fraud that preys on the emotions and vulnerabilities of vulnerable victims - especially the elderly - to cheat them out of their hard-earned savings is unconscionable,” said U.S. Attorney Cunha. “With today’s sentence, Ms. Golden will deservedly trade her stolen luxuries for a prison jumpsuit, and I am pleased that we have the chance to return at least some of the proceeds of her fraud to her many victims.”
Additionally, Golden will forfeit all interest in any fraud-related assets traceable or derived from her criminal conduct in this matter that were seized from her residence and vehicles during execution of search warrants in September 2109, to include a 2018 Bentley Bentayga; a 2017 Mercedes E-Class; $11,731 seized from her home and from the Bentley, 13 money orders totaling $6,000 in money orders, a gold oyster perpetual women’s Rolex watch; a gold oyster perpetual men’s Rolex watch; a gold and diamond Rolex bezel; a 16” gold rope chain with a diamond coin pendant; a 24” gold rope chain; and three firearms. GOLDEN also agreed to forfeit a sum of $1,263,822.54, to be offset by the forfeited assets, and a judgment against her in that amount will be entered.
Chief Judge McConnell ordered that the 78-month term of incarceration imposed today is to commence today. That 78-month term will be served concurrently with a separate 54-month federal sentence that Golden began serving in March 2020 in the Northern District of Georgia, having been convicted for conspiracy to commit money laundering in an unrelated fraud conspiracy.
The case was prosecuted by Assistant United States Denise M. Barton, with the assistance of Assistant United States Attorney John McAdams.
The matter was investigated by the U.S. Postal Inspection Service, with the assistance of the Federal Bureau of Investigation, U.S. Department of Labor-Office of Inspector General, and U.S. Treasury Inspector General for Tax Administration in Atlanta.
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Indiana Woman Indicted in Rhode Island in Online Romance Scam that Allegedly Defrauded a 96-Year-Old Rhode Island WidowerRead the Press Release
PROVIDENCE – An Indiana woman has been indicted by a federal grand jury in Rhode Island, charged with perpetrating an online romance scam that allegedly defrauded a 96-year-old Coventry widower of approximately $80,000, announced United States Attorney Zachary A. Cunha.
Brittany Rakia Shawnai Lasley, 32, of Anderson, IN, is charged by way of indictment with five counts of wire fraud and one count of aggravated identity theft.
The indictment alleges that Lasley created a social media account containing fake profile information on the internet dating site “Plenty of Fish.” It is alleged that Lasley used the false profile to lure the victim into responding, and then promptly began a campaign to persuade the victim to provide her with money, credit cards, gift cards, and his personal identifying information. Lasley allegedly led the victim to believe that providing her with these items would facilitate meetings between the two and foster a romantic relationship.
It is further alleged in the indictment that Lasley made numerous false representations to the victim to persuade him to provide her with money for home improvements, medical treatment, and travel to Rhode Island; to authorize and provide her with more than fifty prepaid money cards and unique login information necessary to redeem the cards; and that she gained access to the victim’s credit card and checking account that she used to make numerous unauthorized purchases; finally, she is alleged to have obtained access to the victim’s credit card by fraudulently representing herself as the victim’s daughter.
Lasley is currently detained in Indiana state custody in Indiana on unrelated charges. A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Paul F. Daly, Jr.
The matter was investigated by the United States Postal Inspection Service.
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Second Bank Employee Admits Role in Fraud ConspiracyRead the Press Release
PROVIDENCE – Another former bank employee today admitted to a federal judge that she stole the banking information of unsuspecting individuals and businesses and provided that information to co-conspirators, who used it to create fraudulent personal and business checks, announced United States Attorney Zachary A. Cunha.
Isha-Lee Savage, 24, admitted that, while employed by Santander Bank, she accessed customer information and sent screenshots of that information to co-conspirators. The information was used to create fraudulent checks that the leader of the fraud conspiracy, Richard Koboi, provided to other individuals that he solicited on Facebook and paid to deposit the checks into bank accounts that they controlled. Savage also used her position working in the bank’s call center to ask customers to provide their debit card information which Savage then provided to her co-conspirators so that they could make fraudulent purchases.
On January 19, 2023, Savonnah Briggs, 28, a now former employee of Citizens Bank, admitted that, while employed by the bank, she similarly accessed customer banking information and check images and provided them to Kobi, who similarly used the information to create fraudulent checks for deposit by himself or others. After the checks were deposited, Koboi and others made, or attempted to make, rapid withdrawals of cash from ATMs or bank tellers.
According to information presented to the court, members of the conspiracy created and deposited approximately $330,000 worth of counterfeit checks.
Savage and Briggs each pleaded guilty to a charge of conspiracy to commit bank fraud. Briggs is scheduled to be sentenced on April 25, 2023; Savage is scheduled to be sentenced on May 2, 2023. The defendants’ sentences will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
Richard Kobi pleaded guilty on April 27, 2022, to conspiracy to commit bank fraud, ten counts of bank fraud, and being a felon in possession of a firearm. He was sentenced in December 2022 to three years in federal prison.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
The matter was investigated by the U.S. Postal Inspection Service, with the assistance of the FBI, United States Secret Service, ATF, Rhode Island State Police, Providence Police Department, and Delaware State Police.
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