District of Rhode Island
Press releases recorded for this federal judicial district.
Bank Employee Admits Role in Fraud ConspiracyRead the Press Release
PROVIDENCE – A Providence woman who was previously employed by Citizens Bank admitted to a federal judge that she stole the banking information of unsuspecting individuals, businesses, and a law firm, and then provided that information to the leader of a bank fraud conspiracy, who used it to create fraudulent personal and business checks, announced United States Attorney Zachary A. Cunha.
Savonnah Briggs, 28, admitted that, while employed by the bank, she accessed customer information and check images, and provided screenshots of that information to Richard Kobi, 27, of Providence. Kobi then used the stolen information to create fraudulent checks that he deposited into his own bank, or that he provided to other individuals that he solicited on Facebook and paid to deposit the checks into bank accounts they controlled. 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.
On Thursday, Briggs pleaded guilty to a charge of conspiracy to commit bank fraud. She is scheduled to be sentenced on April 25, 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.
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.
###
Burrillville Man Admits to Illegally Possessing More Than 200 Firearms, Making False Statements on ATF Firearm Purchase FormsRead the Press Release
PROVIDENCE – A Burrillville man admitted today to a federal judge that he was an unlawful user of controlled substances, including cocaine, when he purchased and possessed more than 200 firearms, and that he made false statements when purchasing the firearms, claiming on the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) forms that he was not an unlawful drug user, announced United States Attorney Zachary A. Cunha.
During a routine review of multiple sales reports of firearms in the fall of 2018, ATF learned that Ronald Andruchuk, 38, purchased 169 firearms between July 2021 and November 2021. Agents began to investigate further to ensure that the purchaser was not involved in illegal firearms-trafficking activities. During that review, agents learned that Andruchuk had previous contact with Cranston Police Department, during which he admitted being a medical marijuana user; during later contact with the Cranston Police when he was arrested on controlled substance offenses, Andruchuk admitted to having a substance abuse problem.
Further investigation determined that in December 2021 two firearms, as well as 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, who did not have a license to carry a firearm in Massachusetts.
ATF also reviewed ATF Firearm Transaction Records that Andruchuk filled out on November 17, 2021 and December 11, 2021 when attempting to purchase firearms at two different gun stores in Rhode Island and discovered that he had falsely claimed that he was not “an unlawful user of, or addicted to, marijuana or any depressant, stimulant, narcotic drug, or any other controlled substance."
On February 24, 2022, Burrillville Police were called to Andruchuk’s home to investigate reports of shots fired; this was the ninth such complaint the Department had received. As police arrived, numerous gunshots could be heard – with some passing overhead of responding officers. Andruchuk was found to be wearing a bulletproof vest and was carrying four firearms and methamphetamine. Burrillville Police arrested him on a state arrest warrant for Firing in a Compact area at that time. At the same time, ATF agents executed a federal search warrant at Andruchuk’s home and seized more than 200 unsecured firearms from the residence, in addition to various controlled substances.
Andruchuk today pleaded guilty 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. He is scheduled to be sentenced on April 17, 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.
According to a plea agreement filed with the court, Andruchuk will forfeit all of the 219 firearms seized by ATF and Burrillville Police which included an AR-style privately-made firearm and a drilled lower receiver with functioning trigger assembly, in addition to assorted firearm magazines and accessories and approximately 25,390 (1,555.8lbs) rounds of assorted boxed and loose ammunition of various calibers. The forfeited firearms and ammunition will be destroyed.
The case is being prosecuted by Assistant United Sates Attorney Ronald R. Gendron.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Burrillville Police Department.
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.
###
Texas Man Admits Role in Scamming Seniors in Rhode Island and Elsewhere in Online Romance ScamsRead the Press Release
PROVIDENCE – Fola Alabi, aka Folayemi Alabi, 52, of Richmond, Texas, pleaded guilty in federal court in Providence to charges of conspiracy and money laundering, admitting to a federal judge that he created companies and opened bank accounts that were used to launder more than $1.6 million in proceeds bilked from seniors in at least eleven states, including Rhode Island, in online romance scams, announced United States Attorney Zachary A. Cunha.
To carry out these schemes, a member of the conspiracy befriended unsuspecting seniors online, often posing as a General in the U.S. military 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 or directed that it be deposited into one of several bank accounts that he controlled. He then quickly withdrew or transferred the funds to other accounts.
Among Alabi’s victims is a Rhode Island widow who was contacted by a member of the conspiracy claiming to be a “General Miller,” purportedly 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 purported “General Miller’s” direction, a check was made payable to Full Circle Import Exports, a company created by Alabi, and mailed to Alabi’s residence in Texas. 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.
According to court documents, in a cellphone seized from Alabi at the time of his arrest in May 2022, federal agents discovered photographs and videos of packages containing cash and checks received by Alabi from victims of the scam.
According to a plea agreement filed in this matter, for purposes of sentencing, the loss attributed to the romance scams perpetrated by Alabi and members of the conspiracy is $1,640,421. Under the terms of the plea agreement, Alabi will forfeit assets derived from his criminal conduct, to include his Texas residence and $31,773.22 contained in a bank account.
Alabi is scheduled to be sentenced on April 25, 2023. 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 case is being prosecuted by Assistant United States Attorneys Ly T. Chin and Sara 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.
###
East Providence Man Sentenced for Fraudulently Applying for COVID-Relief Business LoansRead the Press Release
PROVIDENCE, R.I. – An East Providence man who submitted eight fraudulent loan applications seeking more than $375,000 in COVID-19 relief business loans guaranteed by the federal Small Business Administration has been sentenced to four years in federal prison, announced United States Attorney Zachary A. Cunha.
Kevin Mancieri, 49, submitted fraudulent Paycheck Protection Program (PPP) applications to secure the loans, complete with fabricated bank records and tax forms. In addition to submitting two fraudulent applications in his own name, Mancieri prepared fraudulent applications in the names of four other individuals that he was associated with. Additionally, Mancieri used a stolen identity and submitted a fraudulent PPP application in that person’s name as well, seeking an additional $60,710 in loans.
According to information presented to the court, Mancieri submitted fraudulent PPP applications seeking a total of $375,928, resulting in a loss of $152,246. Of that amount, Mancieri personally obtained $92,438.
Mancieri pleaded guilty on August 15, 2022, to conspiracy to commit bank fraud, access device fraud, and aggravated identity theft. Mancieri was sentenced today by U.S. District Court Judge William E. Smith to forty-eight months in federal prison to be followed by three years of federal supervised release. Additionally, Mancieri was fined $10,000 and ordered to pay restitution in the amount of $152,246.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter was investigated by the FBI and Internal Revenue Criminal Investigation.
###
California-Based Company, Company President Plead Guilty 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, today admitted to a federal judge in Providence that he and his company participated in a conspiracy to conceal 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, Inc., pleaded guilty as charged by way of indictment to conspiracy, violation of the Export Control Act, and money laundering conspiracy.
Jiang and Broad Tech System admitted that they conspired together and 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, 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 the research, development and production of core chips and key components in China’s military strategic early warning systems, air defense systems, airborne fire control systems, manned space systems, and other national large-scale projects. Photoresist and HPRD are essential to the chip manufacturing process.
The Chinese company 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.
According to information presented to the court, 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.
Jiang and Broad Tech System are scheduled to be sentenced on April 11, 2023. The defendants’ sentences will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
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 are being 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.
###
Warwick Man Convicted on Drug Trafficking, Firearm Charges as Federal Jury Trial is Set to BeginRead the Press Release
PROVIDENCE – Jose Manuel Rosario-Mella, a/k/a Luis Cortes, 55, of Warwick, arrested in August 2020 by Rhode Island DEA Drug Task Force agents following a month-long investigation into his drug trafficking activities, pleaded guilty in federal court today to possession with intent to distribute 100 grams or more of heroin and being a felon in possession of a firearm, announced United States Attorney Zachary A. Cunha.
Rosario-Mella’s guilty plea was entered as his federal jury trial was scheduled to begin.
On August 12, 2022, DEA agents and Warwick Police detectives executed a court-authorized search of Rosario-Mella’s residence and seized a 1,002-gram brick of heroin from a closet shelf; a loaded 9mm Glock pistol and ammunition in a compartment in the master bedroom; $337,600 in cash; three kilogram presses used to compress heroin into bricks for transportation and sale; and assorted items used in the preparation and distribution of heroin.
Present in the residence at the time of the search was the defendant’s girlfriend and her two minor daughters.
Rosario-Mella is scheduled to be sentenced on April 13, 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 United States Attorney’s Paul F. Daly, Jr., and Zechariah Chafee.
The Rhode Island DEA Drug Task Force is comprised of personnel from the DEA; Rhode Island State Police; and the Central Falls, East Providence, Cranston, Coventry, Newport, North Kingstown, Pawtucket, Providence, South Kingstown, Warwick, West Warwick, Woonsocket and Amtrak Police Departments.
Additionally, United States Attorney Cunha thanks ATF for their assistance in the investigation.
###
Providence Man Sentenced to Federal Prison for Participating in Fraud Schemes Before and After His Initial Arrest for Bank FraudRead the Press Release
PROVIDENCE – A Providence man who admitted to participating in check cashing fraud schemes, and who continued to do so while on federal pre-trial release after his arrest on related charges, was sentenced today to three years in federal prison, announced United States Attorney Zachary A. Cunha.
Rachon Waite, 32, previously admitted to a federal judge that, from December 2020 to June 2021, and then again, after his August 2, 2021, arrest, from October 2021 through April 2022, he recruited individuals on social media to use their personal identifying information and bank accounts to cash fraudulently-created checks. Members of the conspiracy working with Waite stole checks of multiple Rhode Island and Massachusetts business from the U.S. Mail stream and then used the information from those checks to create fraudulent checks using the names and personal identifying information of individuals recruited by Waite. Waite, his co-conspirators, and, in some instances, the individuals Waite recruited deposited these fraudulent checks in their bank accounts and quickly withdrew the funds, or attempted to, before banks determined that the deposited checks were fraudulent. In other instances, individuals recruited by Waite cashed the fraudulent checks.
Waite was first arrested on a federal complaint in August 2021 for participating in the fraudulent check cashing scheme. He was released on bail and placed on pretrial supervision by the Court. Despite this, in October 2021, Waite recommenced his role in the check cashing fraud scheme. On May 24, 2022, Waite was charged for his role in the fraudulent check cashing activity that followed his release on bail on the first complaint.
According to information presented to the court, criminal conduct attributed to the defendant caused a loss to banks and businesses totaling more than $169,000.
Waite pleaded guilty on August 22, 2022, to conspiracy to commit bank fraud, aggravated identity theft, and commission of an offense while on release. He was sentenced today by U.S. District Court Judge William E. Smith to thirty-six months in federal prison to be followed by three years of federal supervised release. Restitution will be determined at a later date.
The case was prosecuted by Assistant United States Attorney Denise M. Barton.
The matter was investigated by the FBI and the Bristol and Narragansett, RI, and Wrentham, MA, police departments.
###
Fourteen Firearms to be Forfeited as Convicted Felon Admits to Federal Firearm ChargeRead the Press Release
PROVIDENCE, R.I. – A California man who leaped into the Providence River in a bid to evade arrest pled guilty today in federal court in Providence to a charge of being a felon in possession of firearms; fourteen guns will be forfeited and destroyed as a result, announced United States Attorney Zachary A. Cunha.
The firearms were seized from James Darosa, 29, in February 2022, during an East Providence Police Department Special Investigations Unit (SIU) firearms investigation.
According to information presented to the court, members of the SIU established surveillance of a residence from which Darosa was seen exiting, placing a suitcase in the trunk of a vehicle, and entering the vehicle as a passenger. A short time later, East Providence Police initiated a traffic stop of the vehicle for a tinted window violation.
As officers approached the vehicle, Darosa got out of the rear passenger side and jumped off a bridge into the Providence River. With the assistance of Providence Police and Rhode Island State Police, Darosa was located along the shoreline and arrested. The suitcase that Darosa had placed in the trunk of the vehicle was found to contain 14 guns- thirteen handguns and one .22 caliber rifle.
According to court records, at the time of his arrest in February 2020, Darosa was serving a term of federal supervised release, having recently completed a term of incarceration of sixty months imposed in May 2016 in the U.S. District Court for the Eastern District of California on a conviction for distribution of methamphetamine.
Darosa, previously charged by way of indictment, today pleaded guilty in federal court to being a felon in possession of firearms. No plea agreement has been filed in this matter. Upon his conviction, Darosa must forfeit the fourteen firearms seized by East Providence Police.
Darosa is scheduled to be sentenced on April 5, 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 United States Attorney Zechariah Chafee.
United States Attorney Cunha thanks the Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance in the investigation of the firearms seized in this matter, as well as the Rhode Island State Police, and the East Providence and Providence Police Departments for their investigation of this case and the apprehension of the defendant.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
###
U.S. Attorney’s Office Collects Nearly $3.8 Million in Civil and Criminal ActionsRead the Press Release
(PROVIDENCE) - U.S. Attorney Zachary A. Cunha announced today that the District of Rhode Island collected $3,769,390.83 in criminal and civil actions in Fiscal Year 2021, an approximately thirty-six percent increase over fiscal year 2020. Of this amount, $2,715,990.83 was collected in criminal cases and $1,053,400 was collected in civil actions.
Additionally, the District of Rhode Island worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect a further $6,998,789 in cases pursued jointly with these offices. Of this amount, $4,957.79 was collected in criminal cases and $6,993,831.56 was collected in civil actions.
These figures primarily represent criminal restitution collections, criminal fines, and civil judgments. The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Finally, the U.S. Attorney’s office in Rhode Island, working with partner agencies and divisions, collected $1,668,469 via asset forfeiture actions in FY 2021. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
###
Statement from United States Attorney Zachary A. Cunha on the Passing of Former United States Attorney Lincoln C. AlmondRead the Press Release
PROVIDENCE – The men and women of the United States Attorney’s Office for the District of Rhode Island mourn the passing of Lincoln Carter Almond, who led this Office with distinction for twenty-one years, over two terms.
“As United States Attorney, Lincoln C. Almond led by example: whether trying cases, or fearlessly pursuing investigations into organized crime and corruption, he set a standard for this Office that continues to resonate to this day,” remarked U.S. Attorney Zachary A. Cunha. “More than any other figure in recent memory, Lincoln Almond’s tenure set the bar for what it means to excel as a servant of justice. This Office mourns the passing of a legendary figure, and extends our heartfelt condolences to his family.”
First nominated as U.S. Attorney by President Richard M. Nixon, Almond was confirmed by the United States Senate on June 19, 1969, and served until 1978; he took up the post for the second time in November of 1981, following his nomination by President Ronald Reagan, and served with distinction until 1993. During his more than two decades as United States Attorney, believed to be the longest tenure in the State’s history, Mr. Almond was an exemplar of professionalism, the scourge of organized crime, and a prosecutor’s prosecutor. He served on the first committee of United States Attorneys formed to advise the Attorney General of the United States; led investigations and prosecutions of leading figures of the New England La Cosa Nostra and was a staunch and unremitting foe of corruption at every level of government.
###
Nathan Bishop Middle School Students Complete First Rhode Island “Discovering Justice” ProgramRead the Press Release
PROVIDENCE – In record time, a jury sitting in federal court in Providence returned a verdict for the plaintiff, finding that a school principal violated her 4th Amendment rights. The student, suspended for damaging school property, was punished based on information the principal discovered while searching her electronic devices during an unrelated investigation. The student claimed that the search was unreasonable, and unconstitutional.
While this true-to-life scenario could have been argued by skilled attorneys in a federal courtroom anywhere in the country, this jury verdict was the crowning event of the inaugural Rhode Island session of Discovering Justice: a four-month long civics education program undertaken by nine eighth grade students from Providence’s Nathan Bishop Middle School.
The program, hosted by the United States Attorney’s Office, and staffed by volunteer federal prosecutors and office staff, delved into the workings of the judicial system and explored the ideals of justice. The class focused on legal and constitutional issues, with students each taking on the role of plaintiff, defendant, and witnesses during trial preparations. The program culminated with a mock trial held in federal court, presided over by the Honorable O. Rogeriee Thompson of the U.S. Court of Appeals for the First Circuit. Students authored and delivered opening statements; examined and cross-examined witnesses (made up of volunteers from the U.S. Attorney’s Office staff); and prepared and delivered closing arguments to a volunteer jury.
On Thursday, United States Attorney Zachary Cunha met with each of the students and their teacher to congratulate them on their performance and dedication, providing each with a Department of Justice Certificate of Congratulations and photos taken during the trial.
“These students did an amazing job, not just as advocates, but as engaged, passionate participants in learning about our legal system and how it works,” said U.S. Attorney Zachary A. Cunha. “Civics programs like Discovering Justice are an important way of engaging the kids who will be tomorrow’s judges, lawyers, and jurors, and show them that we all have a role to play to make our justice system fair, effective, and evenhanded. I’m thrilled that we were able to partner with Discovering Justice to make this happen here in Rhode Island.”
Discovering Justice is a Boston-based, non-profit organization, with more than two dozen programs currently in progress in Massachusetts. Nathan Bishop Middle School became the first Rhode Island school to participate in the program.
United States Attorney Cunha thanks United States District Court Chief Judge John J. McConnell, Jr., Clerk of Court Hanorah Tyer-Witek, and the staff of the U.S. District Court for hosting the mock trial; the teachers and staff of Nathan Bishop Middle School for their assistance during the eleven-week program; and the prosecutors and staff of the U.S. Attorney’s Office for their volunteer efforts.
###
Providence Man Admits to Wire Fraud Conspiracy, Identity Theft While on Federal Supervised Release for Sex TraffickingRead the Press Release
PROVIDENCE – A Providence man today admitted to a federal judge that he participated in a conspiracy to fraudulently submit online applications in his name and in the names of other persons to collect COVID-related unemployment benefits from at least seven states, and that he did so while serving a term of federal supervised release that followed his conviction and incarceration for sex trafficking, announced United States Attorney Zachary A. Cunha.
Mackenzy Scott, 26, pleaded guilty to conspiracy to commit wire fraud, seven counts of wire fraud, theft of government money, and four counts of aggravated identity theft.
According to information presented to the court and contained in court documents, beginning in March 2020, approximately four months after his release from Bureau of Prisons’ custody, and continuing to May 2021, Scott used his own name, and the names of others to carry out a scheme to submit fraudulent online applications for COVID-related, federally-funded unemployment benefits from state agencies in North Dakota, Massachusetts, Arizona, Nevada, Kentucky, Texas, Hawaii, Pennsylvania, Michigan, and Indiana. In each of these applications, Scott falsely claimed that he, and the other persons in whose names he submitted applications, were entitled to benefits and made false statements about employment and/or residence in the applications submitted to respective states.
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 his federal supervised release.
The case is being prosecuted by Assistant U.S. Attorneys Denise M. Barton and Stacey Erickson.
The matter was investigated by the FBI and the Department of Labor – Office of Inspector General.
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.
###
Pawtucket Man Admits Role in Counterfeit Check Fraud ConspiracyRead the Press Release
PROVIDENCE – A Pawtucket man admitted to a federal judge on Tuesday that he conspired with others to deposit and cash counterfeit checks created using stolen business and personal banking information, announced United States Attorney Zachary A. Cunha.
Maximilian Mwah, 29, admitted that he and others, including Richard Kobi, 27, of Providence, recruited individuals who would allow counterfeit checks to be deposited into their bank accounts. Once the checks were deposited, the funds were quickly withdrawn from ATMs and bank tellers. In one instance, Mwah arranged with Koboi to locate a look-alike who matched the description of an actual bank account holder. The look-alike was provided with a picture ID and the account holder’s banking information and used them to successfully make a withdrawal.
Mwah pleaded guilty on Tuesday to conspiracy to commit bank fraud and to bank fraud. He is scheduled to be sentenced on March 16, 2023. His sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
Koboi 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 to thirty-six months in federal prison; three years of federal supervised release; and ordered to pay restitution totaling $31,928, the actual loss to banks attributed to his criminal conduct.
Cases related to this bank fraud conspiracy are 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.
###
North Providence Woman Sentenced for Defrauding the Federal Housing Administration, Business and Unemployment COVID Relief ProgramsRead the Press Release
PROVIDENCE – A North Providence woman convicted of defrauding multiple publicly-funded programs was sentenced on Tuesday to eighteen months in federal prison for making false statements when applying for a Federal Housing Administration (FHA)-backed mortgage, a Small Business Association (SBA) loan, and for fraudulently applying for government-funded COVID unemployment benefits, announced United States Attorney Zachary A. Cunha.
In March 2022, Juliana Martins, 53, admitted to a federal judge that, while simultaneously on federal supervised release for her role in a stolen identity and refund scheme, as well as state probation for an unrelated 2014 conviction for forgery and counterfeiting, Martins applied for an FHA-guaranteed loan. As part of the application process, she provided false explanations about gaps in her employment history, claiming that she was unemployed due to a “family emergency,” when in fact she had been incarcerated and serving an earlier federal sentence. claiming she was Martins also failed to disclose the fact that she was subject to a $385,533 federal restitution order.
Following the application, Martins and a co-borrower were issued an FHA-insured mortgage in the amount of $265,109.
Additionally, Martins admitted that in July 2020, she submitted a fraudulent application for a Small Business Administration (SBA) low-interest COVID-related Economic Injury Disaster Loan (EIDL), falsely claiming that she was an independent contractor in the health service business, and that her business had been impacted by the pandemic. Finally, Martins admitted that she fraudulently applied for and received COVID-related unemployment insurance benefits in April 2020, while she was in fact employed as an office manager. In total, Martins received over $40,000 in COVID relief benefits to which she was not entitled.
Martins pleaded guilty on March 2, 2020, to making a false statement on a loan application and theft of government property. Martins was sentenced on Tuesday by U.S. District Court Chief John J. McConnell, Jr., to eighteen months in prison and three years of federal supervised release. The defendant was ordered to pay restitution totaling $43,537.
The case was prosecuted by Assistant U.S. Attorneys G. Michael Seaman and Sandra R. Hebert.
The matter was investigated by the U.S. Department of Housing and Urban Development - Office of Inspector General; U.S. Department of Labor – Office of Inspector General; FBI; and Rhode Island State Police, with the assistance of the Rhode Island Department of Labor and Training Unemployment Insurance Fraud 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 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.
###
United States Resolves Civil Claims Against Woonsocket Defense Contractor for Foreign GoodsRead the Press Release
PROVIDENCE – The United States Attorney’s Office has resolved a civil False Claims Act investigation into Hyman Brickle & Son, Inc., a Woonsocket-based Rhode Island textile manufacturing company that supplies products to the U.S. military, announced United States Attorney Zachary A. Cunha.
The investigation focused on allegations that Hyman Brickle sold woolen blankets to the U.S. Department of Defense, despite knowing that the blankets were produced using labor from India, rather than U.S. labor, as federal law requires. Through legislation known as the Berry Amendment, Congress has required that textiles sold to the Department of Defense be produced in the United States, including using United States labor for the production of the textiles. The government alleges that Hyman Brickle’s sale of these nonconforming goods to the Department of Defense violated the False Claims Act.
As part of the False Claims Act settlement, Hyman Brickle will pay $492,236 to the federal government, representing full restitution for the cost of product paid for by the U.S. government and double the damages on the relevant claims.
Assistant U.S. Attorney Bethany Wong handled the litigation of this matter. The case was investigated by the U.S. Defensive Criminal Investigative Service, Northeast Field Office, and the U.S. Army Criminal Investigation Division, Major Procurement Fraud Field Office.
###
Providence Man Sentenced in Scheme to Defraud Home DepotRead the Press Release
PROVIDENCE – A Providence man who admitted to participating in a conspiracy that defrauded Home Depot out of more than one half-million dollars in tools and building supplies was sentenced today to one year and a day in federal prison, announced United States Attorney Zachary A. Cunha.
According to charging documents, Luiyi Taveras-Garcia, 35, participated in a wide-ranging scheme that used stolen or fraudulently created business credit accounts to defraud Home Depot of $600,000 in building, roofing, electrical, plumbing and other contractor supplies at stores in Rhode Island, Massachusetts, and New Hampshire.
Additionally, at the time of his guilty plea to conspiracy to commit wire fraud, Tavares admitted to a federal judge that he also purchased construction materials for use in his roofing business from another member of the conspiracy who allegedly obtained those materials from Home Depot with the use of stolen credit information.
At sentencing today, U.S. District Court Judge Mary S. McElroy sentenced Tavares-Garcia to 12 months and one day of incarceration; three years of federal supervised release; and he was ordered to pay restitution in the amount of $46,749 to Citibank, who provided lines of customers to Home Depot customers.
A second defendant charged in this matter, Abel Bier Romero, 29, of Cranston, is awaiting trial on charges of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. 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.
The matter was investigated by the United States Secret Service New England Cyber Fraud Task Force, with the assistance of the Smithfield Police Department.
###
Office Manager and Her Son Charged in Federal Financial and Health Care Fraud InvestigationRead the Press Release
PROVIDENCE – The former office manager for a Pawtucket dermatologist’s office and her son are facing federal charges following a joint federal and state law enforcement embezzlement, fraud, and health care fraud investigation, announced United States Attorney Zachary A. Cunha.
It is alleged in charging documents that Tianna Keller, 66, of South Easton, MA, used her position as office manager, her authority to sign office documents, and her position as benefits manager to orchestrate schemes to enrich herself, her son, and a friend.
According to court documents, Keller allegedly defrauded the practice of approximately $490,000. She allegedly did this by giving herself unauthorized salary increases totaling approximately $185,061; adding family members and a friend to the payroll and providing them with unauthorized gross wages totaling approximately $46,703; failing to deposit nearly $108,000 in patient cash payments; issuing dozens of checks payable to herself and others, signing the name of the medical practice’s owner without his permission; and using company funds and credit cards as payment for her rent, a daughter’s tuition, restaurant, grocery, retail and other personal and travel expenses; and personal services.
Additionally, it is alleged that Keller authorized continued enrollment and payment for family medical insurance coverage for her son, Brandyn Coffman, 30, of New Braunfels, TX, and his family, even after his self-termination as a data clerk at the medical practice, authorizing payment of nearly $40,000 for this coverage. It is alleged that Blue Cross Blue Shield paid more than $14,000 in claims submitted by Coffman and his family. It is further alleged that Coffman made false statements to law enforcement, claiming he was unaware of the coverage and that he “didn’t even think to use the plan.”
The criminal complaint also alleges that Keller, who was receiving temporary disability insurance (TDI) payments at the time of her termination from the medical practice, continued to collect TDI even after she began employment elsewhere; as a result she fraudulently collected $11,847.
Tianna Keller is charged with conspiracy to commit health care fraud, health care fraud, wire fraud, and aggravated identity theft; Brandyn Coffman is charged with conspiracy to commit health care fraud, health care fraud, and making materially false statements to agents.
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 Attorney Ronald R. Gendron.
The matter was investigated by the U.S. Department of Labor, Office of Inspector General; the U.S. Department of Labor, Employee Benefits Security Administration; and the Rhode Island State Police Financial Crimes Unit.
###
Former 6/10 Construction Project Supervisor Pleads Guilty to Making False StatementsRead the Press Release
PROVIDENCE – A former Superintendent of the 6/10 Interchange Construction Project, who falsely represented the origin and environmental quality of railroad ballast (loose stone) and the origin of soil imported into the 6/10 Project, today pleaded guilty in federal court to three counts of making a false statement in connection with a federally funded highway project, announced United States Attorney Zachary A. Cunha.
Dennis Ferreira, a former employee of Barletta Heavy Division, Inc., a Massachusetts construction company responsible for the construction of the Route 6/10 Interchange Project, admitted to a federal judge that, in July 2020, he falsely reported to the Rhode Island Department of Transportation (RIDOT) the origin of 93 truckloads of railroad ballast imported to the 6/10 Project from Massachusetts; 52 truckloads of dirt imported to the 6/10 Project from the Barletta Pawtucket/Central Falls Rail Station Project; and that he was responsible for a report submitted to RIDOT by Barletta stating that the stone imported from Massachusetts had been tested and met environmental criteria as required in a Soil and Materials Management Plan (SMMP) prepared by RIDOT. In fact, the stone had not been tested and did not meet the environmental criteria.
In October, United States Attorney Cunha announced the resolution of federal criminal and civil investigations into Barletta and Ferreira. The resolutions included Ferreira’s agreement to plead guilty; a civil resolution that will recover from Barletta more than twice the amount paid by the government as a result of the conduct; and a non-prosecution agreement with the construction firm.
Federal investigations into contracting and procurement on portions of the federally-funded 6/10 Project centered on false statements by Ferreira and the company, as well as billing submissions made to the federal government for the stone and dirt. This fill, which was required to either be used at its original location, or subjected to additional testing and handling, did not meet the requirements of the contract.
Ferreira is scheduled to be sentenced on March 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.
The United States has separately entered into a Non-Prosecution Agreement with Barletta in connection with the false statements that were made to the Federal Highway Administration and RIDOT. These statements were meant to conceal the fact that Barletta had imported regulated material in violation of the SMMP, which was part of the contract governing the 6/10 Project. Under the Agreement, Barletta accepts responsibility for the actions of its employees and admits to the facts that constitute making false statements in connection with a federally funded highway project. In addition to paying a $500,000 criminal fine, the agreement requires Barletta to implement ongoing monitoring, reporting, and compliance measures for a period of three years; failure to comply with these conditions will make the company subject to prosecution for the conduct set forth in an agreed-upon Statement of Facts.
Additionally, Barletta has entered into a False Claims Act settlement that resolves allegations that the company knowingly submitted claims for payment for work on the project in connection with the movement of dirt that did not comply with contract requirements, in violation of the federal and Rhode Island state False Claims Acts. Barletta will pay $1,000,000 to the government, representing more than twice the government funds paid as a result of the relevant claims.
Assistant U.S. Attorneys Dulce Donovan and Bethany Wong are handling the prosecution and litigation of these matters.
The matter was investigated by the U.S. Department of Transportation, Office of Inspector General, and the U.S. Department of Labor, Office of Inspector General, with the assistance from the Rhode Island Department of Environmental Management, Division of Law Enforcement.
###
“Operation River Fork” Defendant Pleads Guilty to Drug TraffickingRead the Press Release
PROVIDENCE – Michael Wilkerson, 38, of Woonsocket, one of eighteen individuals arrested in October 2020 as the result of a wide-ranging FBI Safe Streets Task Force Project Safe Neighborhoods investigation into the trafficking of drugs and firearms in four Rhode Island cities pleaded guilty today to federal cocaine trafficking charges, announced United States Attorney Zachary A. Cunha.
“Operation River Fork” a ten-month investigation that began in Woonsocket and quickly expanded into Providence, Cranston, and Warwick, led to the identification of three drug and/or firearms trafficking conspiracies and eight individuals who were independently involved in the trafficking of drugs and/or firearms. During the investigation, FBI Task Force agents witnessed multiple controlled sales of drugs and firearms, including drug sales by Wilkerson, and agents seized five loaded firearms and more than a kilo of cocaine.
Detained since his arrest on October 7, 2020, Wilkerson today pleaded guilty to distribution of cocaine and possession of cocaine with intent to distribute. Wilkerson admitted to a federal judge that over a three-month period beginning in June 2020, he sold nearly 93 grams of cocaine.
On the day of his arrest in October 2020 members of the FBI Task Force seized nearly 375 grams of cocaine and $78,212 in cash during a court-authorized search of his residence; those funds will be forfeited as part of his sentence.
Wilkerson is scheduled to be sentenced on March 13, 2023. 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 case is being prosecuted by Assistant United States Attorneys Stacey Erickson and Christine D. Lowell.
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.
###
Providence Man Sentenced to Federal Prison for Possessing Thousands of Images and Videos of Child PornographyRead the Press Release
PROVIDENCE – Mario F. Martinez, 27, of Providence, found in August 2020 by members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force to be in possession of thousands of images and hundreds of videos depicting child sexual abuse, was sentenced today to three years in federal prison, announced United States Attorney Zachary A. Cunha.
The ICAC Task Force opened an investigation after receiving information from a networking website typically used by individuals interested in video games or gaming that Martinez had uploaded files to his account that depicted sexually explicit conduct involving minors.
In August 2020, members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force executed a court-authorized search of Martinez’s residence and discovered three electronic devices that contained a total of 2,800 images and 387 videos of child pornography involving prepubescent children.
Martinez pleaded guilty on February 23, 2021, to possession of child pornography. He was sentenced today by U.S. District Court Judge Mary S. McElroy to thirty-six months in federal prison to be followed by five years of federal supervised release.
United States Attorney Cunha thanks the Rhode Island Attorney General’s Office and Homeland Security Investigations for their assistance in preparing this case for prosecution in federal court.
The case was prosecuted by Assistant United States Attorney Milind M. Shah.
###
Providence Man Admits to Trafficking Cocaine and FentanylRead the Press Release
PROVIDENCE – A Providence man charged in federal court with trafficking cocaine and fentanyl pleaded guilty today to federal drug distribution charges, announced United States Attorney Zachary A. Cunha.
According to court documents, on six occasions in just over one month, beginning in early January 2020, Josimar Pereira, 36, who was at the time serving a term of state probation related to an unrelated firearm conviction in state court, sold a total of more than $6,300 worth of cocaine and fentanyl to another person. Each transaction was monitored 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.
Today, Pereira pleaded guilty to a charge of distribution of cocaine and a charge of distribution of fentanyl. He is scheduled to be sentenced on March 23, 2023.
The defendant’s sentences will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
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 case is being prosecuted by Assistant United States Attorney Stacey Erickson.
###
Defendant Convicted of Arson Sentenced to Five Years in Federal PrisonRead the Press Release
PROVIDENCE – A 23-year-old man who set three fires inside a Woonsocket mill-type building after breaking into the structure in April 2019, was sentenced today to five years in federal prison, announced United States Attorney Zachary A. Cunha.
Jacob E. Lahousse previously admitted to a federal judge that he gained access to the building by climbing a ladder and entering the rear of the structure, and then set fires to the inside of a desktop computer on the basement level; to a piece(s) of fabric on the basement level; and to a loveseat in a first-floor office.
After receiving a fire alarm activation from the building, Woonsocket firefighters discovered smoke in the building and that water was flowing from sprinkler heads. They extinguished a small fire inside a desktop computer and smoldering papers on a desk. Investigators also observed evidence of forced entry, smashed computers, ransacked offices, and an attempted forced entry into a safe.
In the office that sustained fire damage a handwritten note was posted on the wall that stated, “[i]n case you decided 2 call the feds I got pics of the fam.” On the desk next to the note was an empty picture frame that previously contained a family photo.
Video surveillance shows Lahousse walking around the inside of building which, at the time, housed at least two business, collecting various items and placing them into bags. Two hours after entering the building, Lahousse is seen on surveillance video destroying several video surveillance cameras.
Lahousse pleaded on September 12, 2022, to a charge of arson. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to sixty months of incarceration in federal prison to be followed by three years of federal supervised release. Additionally, the court ordered Lahousse to pay $333,333 in restitution for damages caused by his criminal actions.
The case was prosecuted by Assistant United States Attorney Dulce Donovan.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Woonsocket Police Department; and the Rhode Island State Fire Marshal’s Office.
###
West Warwick Man Pleads Guilty to Conspiracy, Production, and Possession of Child PornographyRead the Press Release
PROVIDENCE – A West Warwick man today pleaded guilty in federal court to multiple child pornography charges, announced United States Attorney Zachary A. Cunha.
According to charging documents, Russell C. Trafford, 55, conspired with others to produce child pornography through the sexual abuse of a female known to the defendant and his family. Trafford began producing sexually explicit photographs of the victim when she was four years old. The abuse lasted for fourteen years, during which time Trafford created images of the victim engaged in sexually explicit conduct with himself and with other adult men.
Sexually explicit images created by Trafford were seized by members of the Rhode Island State Police Internet Crimes Against Children Task Force and the FBI during an April 2022 court-authorized search of Trafford’s residence.
Today, Trafford pleaded guilty to conspiracy to produce child pornography, production of child pornography, and possession of child pornography. He is scheduled to be sentenced on March 8, 2023.
Conspiracy to produce child pornography and production of child pornography are each punishable by statutory penalties of 30 years in federal prison, with a mandatory term of incarceration of 15 years; possession of child pornography is punishable by up to 20 years of incarceration. 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 case is being prosecuted by Assistant United States Attorney Sandra R. Hebert.
Trafford, detained at the ACI, is charged in Rhode Island state court with two counts of first-degree child molestation and one count of first-degree sexual assault.
###
Providence Man Sentenced to Federal Prison on Conspiracy, Bank Fraud, and Firearm ChargesRead the Press Release
PROVIDENCE – A Providence man, Richard Koboi, aka Sunnyboy Taylor, 27, who organized and led a conspiracy to create and deposit approximately $330,000 worth of counterfeit checks, and who illegally possessed and then sold a firearm to a drug dealer, all while serving a state term of probation, was sentenced today to three years in federal prison, announced United States Attorney Zachary A. Cunha.
“Richard Koboi, undeterred by his prior state fraud conviction, decided to help himself to other people’s money using stolen banking information, confident that his crimes would go undetected,” remarked U.S. Attorney Cunha. “He could not have been more wrong. Thanks to superb investigative work by our federal, state, and local law enforcement partners, Mr. Koboi’s campaign of criminality has ended where it belongs: with a well-earned sentence to federal prison.”
“Today’s sentencing clearly illustrates that individuals who engage in these types of illegal activities will be held accountable for their actions,” stated Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “Bank fraud and identity theft are not victimless crimes and individuals who attempt to commit these crimes face significant penalties as a result of their criminal activity. Postal Inspectors are ever vigilant in bringing to justice individuals who use the U.S. Mail to defraud and otherwise take advantage of the financial circumstances of innocent consumers.”
Kobio previously admitted to a federal judge that he recruited bank employees and bank account holders to assist him in obtaining stolen banking information of unsuspecting victims and businesses. Koboi used the stolen information to create counterfeit checks that he deposited into his own bank, or that he provided to other individuals who he paid to deposit the checks into bank accounts that they controlled. After depositing the checks, Koboi and others made, or attempted to make, rapid withdrawals of cash from ATMs or bank tellers.
According to court documents, while soliciting a would-be co-conspirator via Facebook messages Koboi wrote:
Okay, so basically what I do is simple. I want you to know what it is I do isn’t legal but it’s safe. This isn’t something where you have to worry about cops or your bank and credit. I do business with individuals who have good history with the[ir] banks. I make typed up or written checks from offshore 300k plus accounts. That type up or written check will be made out to you where we will then deposit it into your account. Usually it days one business day to two the most for the money to be available. Once the account shows that the money is there we will then take the steps needed to take the money out of the account. We will then spilt 50/50. No middle man or bad blood. You will still be able too [sic] use and keep your account as well as do it again in the future if you please. Let’s eat.
Additionally, law enforcement discovered a Facebook “for sale” posting accompanied by a photograph of a firearm posted by Koboi; communications between Koboi and marijuana drug dealer, arranging for the purchase and delivery of the firearm displayed in the posting; and additional photographs of the firearm stored on Koboi’s cellphone. The firearm was later recovered by Cranston Police from the residence of a different drug dealer during an unrelated investigation.
Koboi pleaded guilty on April 27, 2020, to conspiracy to commit bank fraud, ten counts of bank fraud, and being a felon in possession of a firearm. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to thirty-six months in federal prison; three years of federal supervised release; and ordered to pay restitution totaling $31,928, the actual loss to banks attributed to Koboi’s criminal conduct.
At the time of his arrest in these matters, Koboi was serving a term of state probation, having been convicted in 2018 in state court in an unrelated fraudulent check scheme. He was sentenced to a term of 5 years – with 18 months to serve, 3 years & 6 months suspended, and 5 years of probation.
The federal prosecution of this matter was handled by Assistant U.S. Attorney Ly T. Chin.
The case 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.
###
Former IT Director Charged with Fraud, Aggravated Identity TheftRead the Press Release
PROVIDENCE – The former IT Director at a Warwick supplier of precision tubing and fabricated metal components has been charged in federal court in Providence with wire fraud and aggravated identity theft for allegedly embezzling more than $1M from the company, announced United States Attorney Zachary A. Cunha.
Charging documents allege that Juan Hicks, 47, of New Bedford, MA, who was employed at the time as IT Director for the AT Wall Companies, used his access to the company’s computer network; his purchasing authority for computer hardware, software, and other equipment; his management authority over the company phone systems and internet services; and his access to company credit cards to orchestrate schemes in which he obtained goods and services for himself, family members, and friends, and paid personal expenses for Hicks and his family.
According to court documents, during a cyber-attack which took place in March 2022, AT Wall Companies hired forensic analysts to determine the source of the attack and to identify vulnerabilities. According to company officials, during that inquiry, Hicks refused to provide his computer and passwords, as per company policy. An internal investigation provided by the company to the Warwick Police Department, Homeland Security Investigations, and the United States Attorney’s Office subsequently revealed that Hicks had allegedly embezzled over one million dollars from the company since 2012.
According to information voluntarily provided by the company to law enforcement, Hicks’ alleged fraud included getting reimbursement for false expense reports and fraudulent invoices he created; enrolling family members on the company’s wireless phone service plan and issuing company phones to himself and six family members; purchasing airline and entertainment tickets for himself and family members; and using a company credit card to make purchases at retail stores and payments for auto repairs.
Hicks, arrested today, was released on unsecured bond following an initial appearance in U.S. District Court. 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 Attorney Lee H. Vilker.
###
Providence Man Sentenced for Distributing Meth PillsRead the Press Release
PROVIDENCE, R.I. – A Providence man who, on multiple occasions, while under surveillance by members of the Rhode Island DEA Drug Task Force, sold pills containing methamphetamine, was sentenced today to three years in federal prison, announced United States Attorney Zachary A. Cunha.
Jamont Patrick, 30, arrested in November 2021, pleaded guilty in November to a charge of knowingly and intentionally distributing and possessing with intent to distribute pills containing a methamphetamine mixture.
According to court documents, during a six-week span, while under surveillance by DEA agents, Patrick sold over a pound of meth pills to a law enforcement confidential informant. The pills were quickly seized by DEA agents.
On November 10, 2021, members of the task force conducted a court-authorized search of Patrick’s residence and seized approximately 189 grams of pills containing methamphetamine, two scales, and other items used in the distribution of narcotics.
At sentencing today, U.S. District Court Judge William E. Smith sentenced Patrick to thirty-six months of incarceration, to be followed by three years of federal supervised release.
The case was prosecuted by Assistant U.S. Attorney G. Michael Seaman.
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.
###
Providence Man Sentenced to Federal Prison for Trafficking CocaineRead the Press Release
PROVIDENCE – A Providence man who acted as a middleman as he bought and sold cocaine as a member of a drug trafficking conspiracy was sentenced today to nearly four years in federal prison, announced United States Attorney Zachary A. Cunha.
Miguel Colon, 36, pleaded guilty on August 24, 2022, to a single charge of conspiracy to distribute and possess cocaine with intent to distribute. An FBI Safe Streets Task Force investigation revealed that on multiple occasions Colon purchased various quantities of cocaine from a supplier, and that he was in the business of reselling the drugs to others. Colon also offered to help his supplier gain access to kilogram quantities of drugs.
On September 16, 2021, members of the FBI Task Force executed a court-authorized search of Colon’s apartment and seized over five grams of cocaine as well items used in the packaging and sale of drugs.
At sentencing today, U.S. District Court Judge Mary S. McElroy sentenced Colon to forty-six months of incarceration to be followed by three years of federal supervised release.
The person from whom Colon allegedly purchased cocaine: William Mendez, 47, is awaiting trial in federal court, charged by way of indictment with conspiracy to distribute and to possess cocaine with intent to distribute; and conspiracy to distribute and possess with intent to distribute forty grams or more of fentanyl. 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 Stacey Erickson.
###
Felon Previously Convicted and Incarcerated on Gun, ID Theft, and Domestic Assault Charges Sentenced for Bank RobberyRead the Press Release
PROVIDENCE – A Providence man with nine previous criminal convictions, including convictions on firearms, fraud, aggravated identity theft, and domestic assault charges, was sentenced today to nearly five years in federal prison for robbing a downtown Providence bank in April 2021 while on federal supervised release, announced United States Attorney Zachary A. Cunha.
Less than six months after his release from a twelve-year term of incarceration in federal prison, Roldy Francois, 38, brandished what appeared to be a firearm and threatened to “shoot this place up” as he robbed a downtown bank branch office. Providence Police located Francois using GPS trackers concealed in a stack of cash handed over to Francois, and he was arrested after a brief foot pursuit. Among the items dropped by Francois and recovered by police was a toy handgun.
Francois’ arrest followed a 144-month term of incarceration imposed for his 2011 conviction on four counts of being a felon in possession of a firearm; one count of possession of a firearm with an obliterated serial number; four counts of making false statements to a federally licensed firearms dealer in acquisition of firearms; four counts of possession of an identification document with intent to defraud the United States; and four counts of aggravated identity theft. Although prohibited from acquiring firearms by his 2007 conviction of felony domestic assault for stabbing his girlfriend in the leg, Francois illegally purchased five handguns using a stolen identity.
At the time of his arrest on these earlier charges, Francois pointed a handgun at U.S Marshals, causing a six-hour standoff with law enforcement prior to his being taken into custody.
At sentencing today on a charge of bank robbery and for violating the terms of federal supervised release, U.S. District Court Judge William E. Smith Sentenced Francois to fifty-seven months in federal prison to be followed by three years of federal supervised release – the first six months of supervised release to be served at a residential reentry center.
The case was prosecuted by Assistant United States Attorneys G. Michael Seaman, Sandra R. Hebert, and Paul F. Daly, Jr. The matter was investigated by the Providence Police Department, with the assistance of the FBI.
###
Providence Brothers Charged in Federal Court as ATF, Postal Service Agents Seize Five Firearms, Including Four “Ghost Guns”Read the Press Release
PROVIDENCE – Two Providence brothers previously convicted in New York state court on violent crime charges are facing federal charges following the seizure of five firearms, including four “ghost guns,” and ammunition during searches of their residences as part of a Project Safe Neighborhoods (PSN) investigation, announced United States Attorney Zachary A. Cunha.
Both Lucas Soriano, 41, and Rafael Soriano, 44, are charged by way of a federal criminal complaint with possession of firearms and ammunition after having been previously convicted of a crime punishable by a term of imprisonment exceeding one year; Lucas Soriano is also charged with making false statements to a federally licensed firearms dealer when attempting to purchase a firearm and with causing false records to be kept by a federally licensed firearms dealer.
Since July 2022, agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and United States Postal Inspection Service (USPIS) Postal Inspectors have been investigating individuals who are believed to be using the United States mail in furtherance of violating federal firearm laws. Additionally, ATF Agents have been focusing on individuals who are prohibited from possessing firearms, as well as individuals who are engaging in firearm-trafficking activities by illegally manufacturing and distributing guns.
According to court documents, a number of retailers that specialize in the advertising and sale of firearm parts, ammunition and firearm accessories allegedly shipped orders through the U.S. Postal Service to both Lucas and Rafael Soriano at their mother’s address, located in the same dwelling where Rafael also resides. These orders contained items that are commonly used to manufacture privately made firearms that lack serial numbers and other manufacturer or importer markings, rendering them difficult for law enforcement to trace.
During the course of this PSN investigation, ATF also learned that in June 2022, a federally licensed firearm dealer in Rhode Island denied Lucas Soriano application to purchase a firearm after he allegedly falsely claimed on ATF forms that he had not been previously convicted of a crime, when in fact he had.
On Friday, ATF agents and Postal inspectors executed court-authorized search warrants at the residences of both men. Law enforcement seized three “ghost guns,” an additional 9mm firearm, and assorted ammunition from Lucas Soriano’s apartment, and seized one “ghost gun,” two ammunition magazines with 37 rounds of 9mm ammunition, and a bag containing various loose ammunition from Rafael Soriano’s residence.
Both men made initial appearances in U.S. District Court on Friday. A criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
According to court records, Rafael Soriano was previously convicted in New York state court on robbery charges and in federal court in Rhode Island on drug-trafficking charges; Lucas Soriano was convicted in New York state court on armed robbery and a firearm charge.
The cases in federal court are being prosecuted by Assistant United States 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.
###
New York Man Sentenced by Federal Court in Rhode Island Fraud Scheme Targeting SeniorsRead the Press Release
PROVIDENCE – Jason Hatcher, 40, of New York, NY, was sentenced today to nearly three years in federal prison for his participation in a conspiracy that defrauded more than a dozen Rhode Island seniors who unknowingly fell victim to a so-called “grandparent scam,” announced United States Attorney Zachary A. Cunha.
Fourteen known victims, who ranged from seventy-nine to ninety-four years of age, were contacted by telephone by callers impersonating family members or attorneys. These callers falsely told the victims that a loved one, generally a grandchild, had been arrested after being involved in a motor vehicle accident, and needed cash bail. The victims were directed to gather cash for these fake bail payments and told to provide the money to a courier who would be sent to their home. Different members of the conspiracy played various roles to carry out the scam; Hatcher travelled around Rhode Island and met face-to-face with many of the victims to collect the cash payments.
Rhode Island victims were scammed out of approximately $394,033.
Hatcher pleaded guilty on July 5, 2020, to conspiracy to commit wire fraud and aggravated identity theft. He was sentenced today by U.S. District Court Judge William E. Smith to thirty-three months in federal prison to be followed by three years of federal supervised release. Hatcher was ordered to pay restitution in the amount of $394,033.
Two co-defendants in this matter, Bryan Valdez-Espinosa, 22, and Diego A. Alarcon, 22, of Union City, NJ, pleaded guilty in July to conspiracy to commit wire fraud and are awaiting sentencing in U.S. District Court in Providence.
The cases are being prosecuted by Assistant United States Attorneys G. Michael Seaman, Christine D. Lowell, and Lee H. Vilker.
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.
###
Coventry Woman Admits to Fraudulently Applying for and Receiving COVID Unemployment BenefitsRead the Press Release
PROVIDENCE – A Coventry woman today admitted to a federal judge that she fraudulently applied for and received more than $17,000 in unemployment benefits provided for by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Pandemic Unemployment Assistance (PUA) program, announced United States Attorney Zachary A. Cunha and Rhode Island Attorney General Peter F. Neronha.
Deanna Alston, 34, admitted to the court that while collecting pandemic related unemployment benefits from the Rhode Island Department of Labor and Training, she filed fraudulent applications with the States of California and Pennsylvania, knowing that she was not entitled to collect benefits from those states. Between July 30, 2020, and September 8, 2020, Alston collected approximately $17,075 in unemployment befits that she was not entitled to receive.
Alston today pleaded guilty to a charge of wire fraud. She is scheduled to be sentenced on February 27, 2023. The defendant’s sentences will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
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, 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 Stacey P. Veroni, 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.
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.
###
Providence Man Admits to Trafficking MethamphetamineRead the Press Release
PROVIDENCE – A Providence man who was arrested by members of the FBI’s Rhode Island Safe Streets Gang Task Force during an investigation into methamphetamine trafficking throughout Rhode Island pleaded guilty in federal court on Thursday to charges of possession with intent to distribute 50 grams or more of methamphetamine and two counts of distribution of methamphetamine, announced United States Attorney Zachary A. Cunha.
Casimiro Pereira, 30, admitted that on July 25, 2019, and on August 15, 2019, he sold and delivered 20 grams of crystal meth to another individual.
A court-authorized search of Pereira’s residence on January 31, 2022, resulted in the seizure of approximately 136 grams of crystal meth and 8 grams of crack cocaine, along with various items used in the preparation, packaging, and distribution of crystal meth and crack cocaine.
Pereira is scheduled to be sentenced on March 2, 2023. Possession with intent to distribute 50 grams or more of methamphetamine is punishable by a statutory minimum mandatory term of incarceration of 10 years; distribution of methamphetamine is punishable a statutory minimum mandatory term of incarceration of 5 years. 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 case is being prosecuted by Assistant United States Attorneys Sandra R. Hebert and Christine D. Lowell.
###
Former VA Employee Charged with Threatening a Federal OfficialRead the Press Release
PROVIDENCE – A former employee of the Department of Veteran Affairs, Veteran Benefits Administration Regional Office (VARO) in Providence has been charged by way of a federal criminal complaint with retaliating against a federal official by threatening, announced United States Attorney Zachary A. Cunha.
It is alleged in charging documents that Andrew M. Nyamekye, 38, of Centerville, MA, sent a series of text messages to current and former VBA employees containing threats directed at, among others, the executive director of the Providence VARO. Nyamekye, who served in the United States Army from 2007 to 2011, was employed at the Providence VARO from 2012 until his termination in March of this year.
Nyamekye made an initial appearance in U.S. District Court on Thursday and was released on unsecured bond. 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 Attorney G. Michael Seaman.
The matter was investigated by the U.S. Department of Veterans Affairs, Office of the Inspector General (VA-OIG). Nyamekye was arrested by VA-OIG agents, with the assistance of the Veteran Affairs Police Service, Federal Protective Service, and the Barnstable, MA, Police Department.
###
Woonsocket Man Admits to Participating in Fentanyl Distribution ConspiracyRead the Press Release
PROVIDENCE – A Woonsocket man today admitted to a federal judge that he participated in a conspiracy that trafficked hundreds of grams of fentanyl, announced United States Attorney Zachary A. Cunha.
Nelson J. Davila, 28, pleaded guilty to a single count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl.
According to court documents, it is alleged that Davila participated in a conspiracy with Gregory Ortega, 33, of Woonsocket, in which multiple purchases and deliveries of fentanyl were executed. Davila admitted that the amount of fentanyl trafficked as a result of his conduct was at least 280 grams but less than 400 grams.
Davila is scheduled to be sentenced on March 2, 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.
Ortega is currently detained and awaiting trial on charges of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl; and possession with intent to distribute 400 grams or more of fentanyl. 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 Attorneys Zechariah Chafee, Richard B. Myrus, and G. Michael Seaman.
The matter was investigated by the FBI Rhode Island Safe Streets Gang Task Force.
###
Registered Sex Offender Convicted Three Times on Child Pornography Charges Sentenced to Ten Years in PrisonRead the Press Release
PROVIDENCE – Christopher J. Skinner, 33, of Providence, convicted in unrelated child pornography cases brought by the United States Air Force in 2010, in Rhode Island state court in 2014, and, most recently, in federal court in Providence in February 2022, was sentenced today to ten years in federal prison for possession of child pornography, announced United States Attorney Zachary A. Cunha.
In January 2022, the National Center for Missing and Exploited Children notified the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force that files containing child sexual abuse had been uploaded by an individual in Rhode Island. Further investigation by a Homeland Security Investigations agent and a Rhode Island State Police detective determined that the files had been uploaded from an IP address assigned to Skinner’s residence. A court-authorized search in February 2022 of Skinner’s home and his cell phone led to the discovery of images containing child sexual abuse.
Skinner pleaded guilty in U.S. District Court in June 2022 to possession of child pornography. He was sentenced today by U.S. District Court Judge Mary S. McElroy to 120 months in federal prison to be followed by 10 years of federal supervised release.
According to court records, in 2010, Skinner was convicted of possession of child pornography by the United States Air Force and sentenced to 2 years of confinement and dishonorable discharge from the Air Force; and, in an unrelated case in 2014, Skinner was convicted in Rhode Island state court of possession of child pornography and sentenced to 10 years of incarceration - 3 years to serve.
Skinner has also been convicted of failure to register as a sex offender.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
###
Pawtucket Woman Sentenced to Fifteen Years in Prison for Sexually Exploiting a Minor, Distributing Child PornographyRead the Press Release
PROVIDENCE – A Pawtucket woman who recorded herself molesting a toddler and sent the video to her then boyfriend was sentenced today to fifteen years in federal prison, announced United States Attorney Zachary A. Cunha.
Samantha York, 34, pleaded guilty on June 8, 2022, to sexual exploitation of a minor and distribution of child pornography.
According to court documents, in December 2016, following the arrest of York’s then boyfriend, John Q. Adams, 33, of Foster, in an unrelated investigation, law enforcement allegedly discovered a video on Adams’ cell phone of an adult molesting a toddler. Adam’s allegedly told investigators that his then girlfriend, Samantha York, provided him with the video to satisfy his sexual desire for young girls.
Upon further investigation, law enforcement identified the child whose face was clearly visible; determined that York, who was a caregiver for the child, was the person shown in the video molesting the child; that she recorded her actions; and that she sent the video to Adams. Adams later sent the video to another individual.
York was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 180 months in federal prison to be followed by 10 years of federal supervised release.
Adams is awaiting trial on unrelated charges of receipt of child pornography and possession of child pornography. 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 Denise M. Barton.
The matter was investigated by the Rhode Island State Police Internet Crimes Against Children Task Force, Woonsocket Police, and Homeland Security Investigations.
###
Second U.S. Attorney Workshop to Combat Hate Crimes Focuses on LBGTQ+ CommunityRead the Press Release
PROVIDENCE – United States Attorney Zachary A. Cunha on Tuesday held the second in a series of “United Against Hate Workshops” to increase awareness of hate crimes and hate incidents in Rhode Island, and how to report them. More than seventy attendees attended the workshop that focused on identifying and reporting hate crimes and incidents in the LBGTQ+ community.
In June, several dozen members of the Rhode Island faith-based community attended a similar workshop aimed at improving law enforcement training, the reporting of hate crimes and incidents, and community outreach.
The workshops, part of the Department of Justice’s “United Against Hate: Identifying, Reporting and Preventing Hate Crimes” program, continue efforts to: (1) improve reporting of hate crimes by teaching community members how to identify, report, and help prevent those hate crimes; (2) build trust between law enforcement and communities; and (3) create and strengthen alliances to combat hate between the United States Attorney’s Office; federal, state, and local law enforcement partners; and community organizations.
“The enforcement and defense of civil rights- for every American- is at the core of the Justice Department’s mission,” said U.S. Attorney Cunha. “And carrying out that mission is about more than just bringing cases. It’s about building partnerships, spreading knowledge, and deepening connections between communities and their law enforcement partners. That is exactly what we are striving to do with our United Against Hate initiative, and I am proud that our office has the chance to stand with the LGBTQ+ community in this effort.”
Tuesday’s workshop, held at New England Institute of Technology, included remarks by United States Attorney Cunha and presentations by and discussions with Assistant United States Attorney Kevin L. Hubbard of the United States Attorney’s Office’s Civil Division and FBI Special Agent Pepper Daigler, who, among other matters, investigates allegations of civil rights violations.
Among those in attendance were LBGTQ+ community leaders and members; state, local, university and college law enforcement agencies; health care providers and related service providers; child, parent, and family support service providers and organizations; students; and domestic violence service providers.
United States Attorney Cunha urges individuals who believe they are victims of a hate crime or incident, or may have witnessed one, to contact their local or state law enforcement agency, the FBI, or the United States Attorney’s Office.
###
Hopkinton Man Pleads Guilty to Child Pornography ChargesRead the Press Release
PROVIDENCE – A Hopkinton man pleaded guilty today to federal charges of distribution of child pornography and possession of child pornography, announced United States Attorney Zachary A. Cunha.
Christopher Leherissier, 34, admitted to a federal judge that, in February 2021, he uploaded video files of child pornography involving prepubescent children using an online messenger application account that he managed and that he stored child pornography on a mobile device.
In April 2021, the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force reviewed a report from the National Center for Missing and Expolited Children that a Kik platform user possessed and transferred child pornography. An ICAC investigation determined that an IP address, email address, and a Kik screen name untilized by Leherissier had been used to upload the images. During the execution of a court-authorized search warrant, investigators discovered multiple videos of child pornography on Leherissier’s mobile device and evidence that he used his email and Kik account to upload child pornography on February 16, 2021.
Leherissier is scheduled to be sentenced on February 16, 2023.
Distribution of child pornography is punishable by statutory penalties of 5-20 years of incarceration to be followed by a term of up to lifetime supervised release. Possession of child pornography is punishable by up to 20 years of incarceration followed a term of up to lifetime supervised release. 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 case is being prosecuted by Assistant United States Attorney Dulce Donovan.
Homeland Security Investigations assisted the ICAC Task Force in the investigation of this matter.
###
Providence Man Sentenced for Fraudulently Applying for COVID Unemployment BenefitsRead the Press Release
PROVIDENCE, R.I. – A Providence man who filed a fraudulent application for unemployment benefits under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Pandemic Unemployment Assistance (PUA) program, and received more than $7,000 in ill-gotten payments, was sentenced on Tuesday to thirty days of incarceration to be followed by three months home confinement, announced United States Attorney Zachary A. Cunha and Rhode Island Attorney General Peter F. Neronha.
Deeshawn Gadson, 32, pled guilty in January to a charge of wire fraud.
In April 2020, Gadson, who lived and worked in Rhode Island, submitted online applications to the Rhode Island Department of Labor and Training (RIDLT) for benefits that had been made available by the CARES Act. In May 2020, Gadson began receiving benefits from RIDLT. He received approximately $20,302 in unemployment benefits.
Shortly after he began receiving these benefit payments from the RIDLT, Gadson submitted a fraudulent online application to the Arizona State Department of Economic Security, falsely stating that he lived and worked in Arizona. As a result, Gadson was paid $7,170 in PAU program benefits that he was not legally entitled to receive.
Gadson was sentenced today by U.S. District Court Judge William E. Smith to thirty days of incarceration to be followed by three years of federal supervised release, with the first three months to be served in home confinement with electronic monitoring. Gadson was also ordered to pay $7,170 in restitution to the Arizona State Department of Economic Safety.
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, 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.
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.
###
West Warwick Man Arraigned on Federal Firearm and Drug ChargesRead the Press Release
PROVIDENCE – A West Warwick man appeared in federal court today on federal firearm and drug charges, brought after West Warwick Police, investigating allegations of domestic violence that occurred at the man’s residence, discovered and seized seven firearms, nearly a kilo of cocaine, and more than one-half million dollar in cash, announced United States Attorney Zachary A. Cunha.
It is alleged in charging documents that, in the early morning of October 31, 2022, Geovhan Rashaine Thomas, 35, held a woman against her will, repeatedly verbally and physically assaulting her and threatening to shoot her. The alleged victim told police that, about an hour after the incident began, as she was being allowed to leave the residence with her two children who witnessed the alleged assaults, Thomas retrieved a firearm from a bedroom. The woman alleged to police that she previously saw Thomas handle firearms inside his residence on numerous occasions.
West Warwick Police sought and executed a state arrest warrant charging Thomas with forceable confinement, domestic assault, domestic disorderly conduct, and obstructing an emergency call to police. Members of the West Warwick/Coventry Police Departments Regional SWAT team also executed a court-authorized search of Thomas’ residence and allegedly seized seven firearms, five of which were loaded, one of them with no visible serial number; 827.6 grams of cocaine; and approximately $575,000 in cash.
Thomas, already being held in state custody on domestic violence charges, appeared today in U.S. District Court, charged by way of a federal criminal complaint with possession with intent to distribute 500 grams or more of cocaine and being a felon in possession of firearms. A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
According to court records, Thomas was previously convicted in Rhode Island state court on unrelated drug charges.
The matter is being prosecuted in U.S. District Court by Assistant United States Attorney Stacey P. Veroni.
The West Warwick Detective investigating this matter is assigned to the FBI’s Safe Streets Task Force.
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.
###
Massachusetts Man Charged in Rhode Island After Federal Agents Seize More Than Three Pounds of Crystal MethRead the Press Release
PROVIDENCE – A Lawrence, MA, man has been ordered detained in federal custody on drug trafficking charges after DEA Task Force agents and Boston Police detectives allegedly interrupted the delivery of more than three pounds of crystal methamphetamine, announced United States Attorney Zachary A. Cunha.
It is alleged in charging documents that Rhode Island DEA Task Force agents developed information that Hector Gonzalez Michel, 31, was preparing to deliver a substantial quantity of crystal meth to a person in Boston who allegedly supplied the drug to others. Gonzalez Michel was approached by Rhode Island and Boston DEA task force agents and Boston Police Detectives as he arrived outside a Boston residence where, it is alleged, he was to have delivered the drugs. It is alleged that he was found to be carrying 3.4 lbs. of crystal methamphetamine stored inside a small cooler.
Gonzalez Michel made an initial appearance in federal court in Providence on Friday, charged by way of a criminal complaint with conspiracy to distribute controlled substances in excess of 500 hundred grams and distribution of controlled substances in excess of 500 grams. 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 Attorney Stacey P. Veroni.
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 the Rhode Island Attorney General’s Office Bureau of Criminal Identification and Investigation.
Members of the DEA Boston Task Force Group 5 assisted in the investigation and arrest of Gonzalez Michel.
###
Convicted Felon Admits to Being an Armed Drug DealerRead the Press Release
PROVIDENCE – A Providence man convicted multiple times on Rhode Island state drug charges admitted to a federal court judge that he illegally possessed two loaded firearms and 16 grams of heroin seized during an FBI Project Safe Neighborhoods investigation, announced United States Attorney Zachary A. Cunha.
Giancarlo Fermin, 35, today pleaded guilty 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.
According to information presented to the court, in August 2021, FBI agents executed a court-authorized search of Fermin’s residence and 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 saw Fermin tossing blue envelopes, some containing heroin, out of a window.
Fermin is scheduled to be sentenced on February 23, 2023. The defendant’s sentences will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
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 case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
###
Cranston Man Appears in Federal Court on Child Pornography ChargesRead the Press Release
PROVIDENCE – A Cranston made an initial appearance in federal court today on charges that he allegedly produced and possessed child pornography, announced United States Attorney Zachary A. Cunha.
It is alleged that Gregory Phillips, 42, coerced a 7-year-old child to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, and that he possessed images and videos of child pornography.
Phillips is charged by way of a federal criminal complaint with production of child pornography and possession of child pornography.
The defendant’s alleged conduct was brought to the attention of a Cranston Police Department Detective and the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force in June 2022 by way of a report provided by the National Center for Missing and Exploited Children. After further investigation, Philips was arrested on September 3, 2022, and ordered detained on Rhode Island state charges.
Philips was taken into federal custody today pursuant to a federal arrest warrant issued on October 26, 2022.
United States Attorney Cunha thanks the Rhode Island Department of Attorney General for their assistance which led to the filing of a federal criminal complaint A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Homeland Security Investigations assisted the ICAC Task Force and the Cranston Police Department in the investigation of this matter.
The case is being prosecuted by Assistant United States Attorney Lee H. Vilker.
###
North Kingstown Man Admits to Transferring Obscene MaterialRead the Press Release
PROVIDENCE – A North Kingstown man today admitted to a federal judge that he transferred provocative material to another person online, after the other person represented that they were a child, announced United States Attorney Zachary A. Cunha.
Neil Streich, 59, whose federal jury trial was scheduled to begin today, pleaded guilty to importation or transportation of obscene matters.
Streich admitted that in March 2020, he transferred three sexually provocative videos of himself via Kik, an Internet-based text and social media platform, to a person who represented themself to be a 10-year-old girl. The person Streich was communicating with was, in fact, an undercover FBI agent based in Pennsylvania and assigned to the FBI Violent Crimes Against Children Task Force.
According to information provided to the Court, Streich communicated online with the person who represented themself to be a 10-year-old girl for about a week before sending them obscene materials. 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 is scheduled to be sentenced on January 31, 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 United States Attorneys G. Michael Seaman and Milind Shah.
###
Providence Meth Dealer Sentenced to Federal PrisonRead the Press Release
PROVIDENCE – A Providence man found by law enforcement to be in possession of more than 50 grams of crystal methamphetamine and two guns was sentenced today to five years in federal prison, announced United States Attorney Zachary A. Cunha.
Sean M. Francis, 34, pleaded guilty on February 16, 2022, to possession with intent to distribute 5 grams or more of methamphetamine and possession of a firearm by a prohibited person.
According to court documents, a Project Safe Neighborhoods investigation in November 2019 by members of the Rhode Island FBI Safe Streets Task Force, the Rhode Island State Police High Intensity Drug Trafficking Area Task Force, and the Warwick Police Department determined that Francis regularly received packages containing pound-quantities of crystal methamphetamine shipped from Arizona. Francis stored the meth in his residence and distributed the drug to others.
On November 7, 2019, the FBI Task Force and other members of law enforcement executed a court-authorized search of Francis’ residence and found multiple packages of crystal meth, totaling 51 grams; items used in the distribution of methamphetamine; a handgun, a speed loader, and 14 rounds of .357 magnum ammunition; a revolver with no serial number; and dozens of crystal meth smoking pipes and needles.
At sentencing today, U.S. District Court Chief Judge John J. McConnell, Jr., sentenced Francis to 60 months in federal prison to be followed by four years of federal supervised release. The court ordered that Francis serve the first six months of his term of supervised release at a reentry facility.
The case was prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and Christine D. Lowell.
United States Attorney Cunha thanks the Providence Police Department for their assistance in the investigation of this matter.
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.
###
DEA Prescription Drug Take Back Day Set for SaturdayRead the Press Release
PROVIDENCE – The United States Attorney’s Office joins the Drug Enforcement Administration in encouraging Rhode Islanders to take advantage of the 23rd National Prescription Drug Take Back Day this Saturday by disposing of unneeded or unwanted medications safely and anonymously at any one of dozens of drop-off locations across the state.
For more than a decade, DEA’s National Prescription Drug Take Back Day has provided an easy, no-cost opportunity to dispose of medicines stored in the home that may be susceptible to misuse and theft. Opioid misuse remains at epidemic levels in the United States. The Centers for Disease Control and Prevention estimates that in the United States, approximately 107,622 people died as the result of a drug poisoning last year. This means that someone in the United States is dying of a drug poisoning every five minutes.
Rhode Island Department of Health statistics show that in 2021, 435 lives were lost in Rhode Island to drug overdoses, 51 more than in 2020. Current statistics for 2022 continue to trend upward. According to a report published by the Substance Abuse and Mental Health Services Administration (SAMHSA), a majority of people who misused a prescription medication obtained the medicine from a family member or friend.
“I encourage everyone across the country to dispose of unneeded medications to help keep our communities safe and healthy,” said DEA Administrator Anne Milgram. “The Take Back campaign is part of DEA’s continued efforts to combat the drug poisoning epidemic and protect the safety and health of communities across the United States.”
“DEA’s Take Back campaign is a great opportunity for Rhode Islanders to dispose of unused and unneeded medication in a way that’s safe, effective, easy and anonymous, and that makes sure that unwanted prescription drugs don’t do unintended harm,” said U.S. Attorney Zachary A. Cunha.
On Saturday, the DEA and its partners, including many Rhode Island police departments and pharmacies, will host secure collection boxes to collect tablets, capsules, patches, and other forms of prescription drugs. Visit www.DEATakeBack.com for easy reference to nearby collection sites.
Collection sites will not accept syringes, sharps, and illicit drugs. Liquid products, such as cough syrup, should remain sealed in their original container. The cap must be tightly sealed to prevent leakage. The event will also continue to accept vaping devices and cartridges provided lithium batteries are removed.
# # #
More than 4,000 Rhode Island Students Participate in U.S. Attorney’s Office Circles and Silence ProgramRead the Press Release
PROVIDENCE, R.I. – More than 4,000 middle and high school students across Rhode Island have participated in the United States Attorney’s Office’s community outreach program Circles and Silence program during the first two months of the current school year, announced United States Attorney Zachary A. Cunha.
Addressing opioid addiction and prevention, the Circles and Silence Program is built around a five-time Emmy nominated, locally produced U.S. Attorney’s Office documentary film narrated by a diverse group of Rhode Island young adults whose personal true-life stories delve deeply into their distinct journeys of drug dependency and recovery. The film documents their paths from addiction, in some instances to prison, to successful management of addiction, to working daily to lead productive and healthy lifestyles. In addition to sharing their stories, individuals who appear in the film participate in in-person conversation sessions with students.
With presentations this week at Central Falls High School and Blackstone Academy, the number of students participating thus far this school year far exceeds the number of participants in any previous start to a school year.
Circles and Silence is a critical part of our efforts to use every tool at our disposal to combat the opioid crisis,” said U.S. Attorney Cunha. “That means not just vigorous law enforcement, but education, outreach, and support for recovery. Every student we reach, every person who leaves this program with a better understanding of what is at stake and the fact that recovery is possible, is a vital part of that mission.”
In addition to viewing the documentary and engaging in discussion with the individuals who appear in the film, attendees are provided critical information about substance abuse disorder and the many prevention, recovery, and social service programs available statewide through an expansive network.
Video clips from Circles and Silence can be viewed at https://www.justice.gov/usao-ri/circles-and-silence .
The United States Attorney's Community Outreach Office Circles and Silence program is available to students grades 7-12 in all Rhode Island public and private schools, and to community and not-for-profit organizations at no cost. To learn more about the Circles and Silence Program or to schedule a presentation contact United States Attorney’s Office Community Engagement & Crime Prevention Coordinator David Neill at (401) 709-5035 or at [email protected]
###
Justice Department, U.S. Attorney’s Office, FBI Prepared to Handle Complaints of Voting Rights Concerns, Election FraudRead the Press Release
PROVIDENCE - United States Attorney Zachary A. Cunha announced today that Assistant United States Attorney Terrence P. Donnelly has been appointed to serve as the District Election Officer (DEO) for the District of Rhode Island for the upcoming November 8, 2022, general election. The District Election Officer is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
United States Attorney Cunha said, “It is a cornerstone of our Republic that every citizen be able to vote without interference or discrimination and to have their vote counted in a fair and free election. And it is equally critical that election officials and staff be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has long had an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud, and will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations. During the upcoming election, AUSA Donnelly will be on duty in this District to respond to any complaints of voting rights or election fraud concerns and to ensure that such complaints are handled or directed to the appropriate authorities. He can be reached by the public at (401) 709-5068
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English). . .
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (401) 272-8310.
Complaints about possible violations of the federal voting rights laws can also be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.
United States Attorney Cunha added, “Ensuring free and fair elections depends in large part on the assistance and vigilance of the American electorate. If you have specific information about voting rights concerns or election fraud, we rely on you to make that information available to the Department of Justice.”
Please note, however, that if you are the victim of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
###
Three Indicted, Arraigned in Alleged Conspiracies to Defraud Land Rover DealershipsRead the Press Release
PROVIDENCE – Three Rhode Island men were arraigned on Friday in federal court in Providence, charged by way of indictment for their alleged participation in a conspiracy to use stolen identities to defraud Land Rover dealerships in Rhode Island and New Hampshire, announced United States Attorney Zachary A. Cunha.
It is alleged that on April 25, 2022, Dennis Odoom, 24, of Pawtucket, took custody of a Land Rover from a Rhode Island dealer. That purchase was financed for more than $120,559 with the use of a stolen identity. It is further alleged that, on May 10, 2022, Roy Sweets, 25, of Providence, allegedly took custody of a Land Rover from a New Hampshire dealership, financed for $111,183, again with the use of a stolen identity. It is further alleged that, two days after the delivery in New Hampshire, a person, posing as the “brother” of the New Hampshire buyer, attempted to take possession of another vehicle after a dealer financing application had been submitted online and approved. That delivery was halted when a dealership employee determined that the driver’s license presented by the buyer may have been altered. Adalberto Mauricio Romero, 25, of Providence, was arrested by Bedford, NH, Police when he appeared at the dealership to take possession of the vehicle.
During their appearance in court on Friday, Odoom, Sweets, and Romero pleaded not guilty to conspiracy to commit wire fraud and aggravated identity theft. The three men, previously charged by way of federal criminal complaints, were released on unsecured bond. 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 Attorneys William J. Ferland and Paul F. Daly, Jr.
The matter was investigated by Warwick, RI, and Bedford, NH, Police Departments, Homeland Security Investigations, and Department of Labor, Office of Inspector General.
###
Nurse Practitioner Admits to Perpetrating $4.37 Million Health Care Fraud Scheme; Will Forfeit the Profits of His FraudRead the Press Release
PROVIDENCE, R.I. – A registered nurse and nurse practitioner who fraudulently billed commercial health insurers and Medicare nearly $4.4 million for services that he falsely claimed to have provided to patients in Rhode Island, New York, and Florida, pleaded guilty on Wednesday in federal court in Rhode Island 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, announced United States Attorney Zachary A. Cunha.
Alexander A. Istomin, 56, admitted that he routinely submitted fraudulent claims for in-person patient services that he falsely claimed to have performed at his offices in Rhode Island, New York, and Florida. In some instances, the patients that Istomin claimed he met with in person were out of the country at the time of the alleged visits. On many other occasions that he claimed to have been seeing patients, Istomin himself was either in a different state or another country, often times in Russia. The investigation also determined that the supposed office that Istomin maintained in East Greenwich, and to which he had some payments mailed, was a non-existent medical practice at which no medical services were provided.
Additionally, Istomin admitted to a federal judge that he waived copayments for some Medicare patients, despite being aware that waiving copayments is prohibited. By waiving copayments that patients otherwise would be responsible for, Istomin induced his patients not to report his fraudulent billing to Medicare.
Istomin also admitted that he carried out schemes in which he would use patient names and information to get prescriptions to be filled at pharmacies. He arranged for those prescriptions to be returned to him so that he could then distribute those drugs to individuals other than those in whose names the prescriptions were filled.
According to a signed Plea Agreement filed with the court, in addition to pleading guilty to charges of health care fraud, mail fraud, aggravated identity theft, and causing the introduction of misbranded drugs into interstate commerce, Istomin will forfeit $4,379,158.98, the sum of money equal to the amount he received from perpetrating health care fraud.
Istomin is scheduled to be sentenced on January 26, 2023. 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 case is being 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; Food and Drug Administration, Office of Criminal Investigations; and the FBI.
###