District of Rhode Island
Press releases recorded for this federal judicial district.
Texas Man Charged in Rhode Island with Fraud, Money Laundering, SCAMS ActRead the Press Release
PROVIDENCE – A Texas man who allegedly participated in a conspiracy where one member posed as a high-ranking military officer stationed overseas while befriending and gaining the trust of seniors in at least ten states, including Rhode Island, has been charged in federal court in Rhode Island with bilking seniors out of nearly one million dollars, announced United States Attorney Zachary A. Cunha.
Fola Alabi, aka Folayemi Alabi, 51, was arrested at his Richmond, Texas, home on Tuesday, and charged by way of a federal criminal complaint filed in U.S. District Court in Providence with conspiracy to commit wire and mail fraud; wire fraud; mail fraud; conspiracy to commit money laundering; money laundering; Alabi was also charged under the Senior Citizens Against Marketing Scams Act of 1994, which provides for enhanced penalties for telemarketing fraud that targets or victimizes persons over age 55.
An investigation by the United States Postal Inspection Service, FBI, United States Secret Service, Homeland Security Investigations, and the United States Attorney’s Office determined that Alabi allegedly bilked seniors out of at least $915,301.
It is alleged in charging documents that one member of the conspiracy befriended unsuspecting seniors online, often posing as a General in the U.S. military serving overseas; or, as a family member offering an investment opportunity. It is alleged that this conspirator, feigning to have a personal, and sometimes romantic, interest in his victims, convinced his victims to send substantial sums of money, usually in the form of bank checks or cash, to addresses and companies in Texas controlled by Alabi or an individual associated with him. It is alleged that once received, the money was deposited into one of several bank accounts controlled by Alabi and quickly withdrawn or transferred to other accounts.
It is alleged that among Alabi’s victims is a 78-year-old Rhode Island widow who was persuaded by someone claiming to be “General Miller,” purportedly a four-star General currently overseas, to provide $60,000 to finance shipment of his personal belongings to the United States. At “General Miller’s” direction, a check was made payable to Full Circle Import Exports and mailed to a Texas address that was determined by investigators to be Alabi’s residence. It is further alleged that the victim was prepared to send a second, and significantly larger sum of money to “General Miller,” when it was determined by her bank and the Westerly Police Department that she was likely being defrauded.
The federal criminal complaint filed in this matter is merely an accusation. The defendant is presumed innocent unless and until proven guilty. In addition to the criminal charges announced today, the government has seized several bank accounts associated with the defendant’s alleged criminal activity and a 2010 Mercedes Benz registered to Alabi.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
United States Attorney Cunha thanks the Rhode Island Attorney General’s Elder Abuse Unit; the Westerly, RI, and Prescott Valley, AZ, Police Departments; Texas Department of Public Safety; West Virginia State Police; and the Santa Clara, CA, County District Attorney’s Office for their assistance in the investigation of this matter.
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Federal Prosecutor Named as Environmental Justice Coordinator for the District of Rhode IslandRead the Press Release
PROVIDENCE – United States Attorney Zachary A. Cunha has appointed Assistant United States Attorney (AUSA) Kevin L. Hubbard to the position of Environmental Justice Coordinator for the District of Rhode Island.
On May 5, 2022, Attorney General Merrick B. Garland announced a series of actions to secure environmental justice for all Americans, including the launch of the Office of Environmental Justice within the Justice Department and a new comprehensive environmental justice enforcement strategy to guide the Justice Department’s work. The Department also issued an Interim Final Rule that will restore the use of supplemental environmental projects in appropriate circumstances; where appropriate to the resolution of an environmental enforcement action, these projects often benefit communities by addressing specific local environmental issues.
In announcing these steps, Attorney General Garland noted, “Although violations of our environmental laws can happen anywhere, communities of color, indigenous communities, and low-income communities often bear the brunt of the harm caused by environmental crime, pollution, and climate change. For far too long, these communities have faced barriers to accessing the justice they deserve. The Office of Environmental Justice will serve as the central hub for our efforts to advance our comprehensive environmental justice enforcement strategy.”
The Attorney General directed U.S. Attorneys across the country to appoint a District Coordinator. In his role as Environmental Justice Coordinator for the District of Rhode Island, AUSA Hubbard will play a key part in identifying and pursuing environmental justice matters in coordination with the Environmental and Natural Resource Division and the Civil Rights Division at Main Justice; and will work closely with key local and regional agencies such as the Environmental Protection Agency, Department of Agriculture, and U.S. Housing and Urban Development.
"Our environment and natural resources are part of what makes the Ocean State such a beautiful and unique place,” said U.S. Attorney Cunha. “But environmental protection is not just about preserving shoreline and scenery, it’s about ensuring that peoples’ health and safety are protected from pollution and contamination in all of our communities - including ones that have historically been ignored or marginalized. Today’s appointment of Kevin Hubbard—an exceptional litigator—to this important new role underscores my office’s commitment to vigorously enforcing federal laws to protect our air, water, and environment for every Rhode Islander.”
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“Operation River Fork” Defendant Sentenced for Trafficking Crack CocaineRead the Press Release
PROVIDENCE, R.I. – A Woonsocket man was sentenced today to two years in federal prison for participating in the distribution of crack cocaine, announced United States Attorney Zachary A. Cunha. Bradley Dewalt, 30, was one of eighteen “Operation River Fork” defendants arrested during an FBI Project Safe Neighborhoods investigation in 2020, in Woonsocket, Providence, and Cranston. The arrests resulted in the recovery of six loaded firearms and more than a kilo of crack cocaine.
On June 2, 2021, Dewalt pled guilty to distribution of crack cocaine. At the time of his guilty plea, Dewalt admitted to the court that, at the direction of another person, he contacted an individual seeking to arrange for the purchase of crack cocaine and sold him 24.64 grams of crack cocaine for $1,150.
Today, U.S. District Court Judge Mary S. McElroy sentenced Dewalt to 24 months of incarceration to be followed by two years of federal supervised release. Prior to his arrest in this matter, Dewalt was previously convicted and sentenced on assault, drug trafficking, and firearm charges.
This case, prosecuted by Assistant United States Attorney Stacey P. Veroni, was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The FBI Safe Streets Task Force consists of agents and law enforcement officers from the FBI; Rhode Island State Police; the Providence, Cranston, Woonsocket, Pawtucket, West Warwick, and Central Falls Police Departments; and the U.S. Marshals Service.
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Wyatt Detention Center to Provide Opioid Use Disorder Treatment to Detainees in Treatment Prior to DetentionRead the Press Release
PROVIDENCE – United States Attorney Zachary A. Cunha announced today that his office has entered into an agreement with the Donald W. Wyatt Detention Facility (Wyatt) to ensure that detainees being treated for Opioid Use Disorder (OUD) prior to entering the facility will continue to receive that treatment while in Wyatt’s custody, as required by the Americans with Disabilities Act.
Individuals who are receiving treatment for OUD are generally considered disabled under the ADA. Accordingly, among other things, the law requires that jails and prisons maintain medications that individuals have already been prescribed to treat OUD. Based on an investigation, the U.S. Attorney’s Office’s determined that the Wyatt Facility was not in full compliance with its obligations under the ADA. The investigation determined that Wyatt failed to provide medications used to treat OUD, such as methadone and buprenorphine; and did not provide any individualized medical determination to assess whether each person should be maintained on or withdrawn from such treatment. As a result, individuals who had previously received treatment for OUD under the supervision of a licensed health care professional had to undergo forced withdrawal while incarcerated at Wyatt.
Under the terms of the agreement, Wyatt will adopt non-discriminatory medication management policies at the facility and provide methadone or buprenorphine for individuals with OUD who have been prescribed such medication under the supervision of a licensed health care professional.
“Efforts to combat substance abuse and opioid deaths require every tool at our disposal,” said U.S. Attorney Cunha. “That means not just vigorous and targeted law enforcement, but also sensible and humane treatment that provides a bridge to recovery. Where medical professionals have determined that OUD treatment is appropriate, the ADA requires jails like the Wyatt to continue to provide it, and I am pleased that, with today’s agreement, the facility has committed to meet this critical obligation to its detainees.”
This matter was handled by Assistant U.S. Attorney Amy Romero. Those interested in finding out more about the ADA can call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint. The department has issued guidance on the ADA and the Opioid Crisis, available at https://www.ada.gov/opioid_guidance.pdf.
Anyone in the District of Rhode Island may also report civil rights violations directly to the U.S. Attorney’s Office for the District of Rhode Island at https://www.justice.gov/usao-ri/civil-rights-enforcement or 401-709-5000.
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Central Falls Men Sentenced for Roles in Drug Trafficking OrganizationRead the Press Release
PROVIDENCE, R.I. – Two men from Central Falls who played integral roles in a Drug Trafficking Organization (DTO) that shipped dozens of kilos of cocaine into Rhode Island through the U.S. Postal Service were sentenced today to federal prison, announced United States Attorney Zachary A. Cunha.
George Mojica, 42, and Angel Delgado, 25, were sentenced to serve seven years and five years respectively. The two men previously admitted to the court that they retrieved numerous packages delivered to residences around Rhode Island, each containing a kilo or more of cocaine. United States Postal Inspection Service agents determined that sender and recipient names on the packages were not associated with the delivery addresses listed on the packages.
According to court documents, numerous packages were intercepted by U.S Postal Service Inspectors and DEA and found to each contain significant quantities of cocaine. Based on the packages seized; the known size and weights of many of the parcels not intercepted; and positive K9 alerts on packaging materials discarded by DTO members, the DTO is believed to have shipped and/or attempted to ship approximately 51 kilos of cocaine to Rhode Island between January 2018 and December 2019.
Mojica pled guilty on December 7, 2021, to conspiracy to distribute and possession with intent to distribute 5 kilograms or more of cocaine; and possession with intent to distribute 5 kilograms or more of cocaine. He was sentenced today by U.S. District Court Judge Mary S. McElroy to 84 months in federal prison to be followed by 4 years of federal supervised release.
Delgado pleaded guilty on January 7, 2022, to conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine. He was sentenced today by U.S. District Court Judge McElroy to 60 months of incarceration to be followed by 5 years of federal supervised release.
The cases were prosecuted by Assistant U.S. Attorney Denise M. Barton.
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Pair Sentenced for Their Roles in Dispersing Proceeds of Internet and Email Fraud SchemesRead the Press Release
PROVIDENCE – Two men who played various roles in an underground financial network in support of international internet and email fraud schemes have been sentenced to federal prison, announced United States Attorney Zachary A. Cunha.
Babawale Jenyo, 33, of Warwick, previously convicted at trial of operating an illegal money transmitting business, was sentenced on Tuesday by U.S. District Court Chief Judge John J. McConnell, Jr., to a year and a day in federal prison; Abiodun Shobaloju, 29, of Baltimore, MD, who previously pled guilty to wire fraud, was sentenced by Chief Judge McConnell on April 26, 2022, to 24 months of incarceration and ordered to pay restitution to fraud victims totaling $136,431.
According to court documents, Shobaloju was part of a conspiracy that carried out email and romance scams that succeeded in fraudulently obtaining large sums from multiple victims. As part of his role in the conspiracy, Shobaloju provided members of the conspiracy with critical bank information, and also created a shell company and bank account to be used expressly to receive and disperse proceeds from the fraud scheme. Once the ill-gotten funds were deposited in accounts controlled by Shobaloju, he would often withdraw cash for his own use and then transfer the remaining funds to other bank accounts.
In the matter of the United States v. Babawale Jenyo, the government presented evidence and testimony at trial that funds fraudulently obtained from unsuspecting victims of email and romance scams were passed through bank accounts that Jenyo controlled. Jenyo’s criminal conduct was first discovered by Rhode Island State Police in 2017, resulting in his arrest May 2017 on charges that he participated in an email scam that defrauded a West Des Moines, IA, couple. In May of 2019, Jenyo was arrested again, this time by the United States Secret Service, which determined that, even after his encounter with Rhode Island State Police, Jenyo continued to engage in illicit money transferring activities up until the date of his second arrest.
The cases were prosecuted by Assistant United States Attorneys Sandra R. Hebert and Richard B. Myrus.
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Department of Justice Secures Agreement with EOHHS to Provide Community-Based Services to Children with Disabilities in Rhode IslandRead the Press Release
PROVIDENCE, R.I. – The United States Attorney’s Office for the District of Rhode Island and the U.S. Department of Justice today entered into a settlement agreement with the Rhode Island Executive Office of Health and Human Services (EOHHS) to resolve alleged violations of the Americans with Disabilities Act (ADA).
The parents of a child with autism filed a complaint with the U.S. Attorney’s Office, alleging that Rhode Island failed to provide their minor son with community-based Medicaid services that the State had authorized. These services allow children with disabilities to remain in their homes and communities rather than enter residential treatment facilities. The parents alleged that while the State authorized their son to receive 25 to 34 hours per week of community-based services, their son only received, on average, half of the weekly authorized hours. As a result, the parents feared that their son would be forced to leave their home and move to an institution. After the United States opened an investigation of this complaint, the child entered an out-of-state residential treatment facility for several months.
“Integrated, community-based services for children with intellectual and developmental disabilities are critical to keeping families together and ensuring that children receive care in a supporting and loving environment; no family should be forced to make a choice between care and separation from their children when adequate support is possible in a community setting,” said U.S. Attorney Zachary A. Cunha of the District of Rhode Island. “That is what the ADA requires, what today’s agreement is designed to ensure, and what this office will continue to demand as we go forward.”
“The ADA requires states to provide disability services in the most integrated setting appropriate so that children can remain at home with their families,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Providing community-based services allows children with disabilities to live at home and avoid residential facilities. The Civil Rights Division will vigorously enforce the ADA so that people with disabilities can get services at home instead of in facilities.”
Under the agreement reached today, Rhode Island will modify its policies so that children with intellectual and developmental disabilities such as autism will receive the community-based services that they are authorized. The State will require that every family receive a family care plan, allow families to receive services from different provider agencies, and provide oversight to make sure children with disabilities receive authorized community-based services. The State will also create an ombudsman program to allow individuals and their family members to express concerns. For the complainants’ son, EOHHS will develop an individualized service plan to identify the community-based services necessary for him to live at home, and pay $75,000 in damages.
This matter was handled jointly by Assistant US Attorney Amy Romero of the U.S. Attorney’s Office for the District of Rhode Island and the Disability Rights Section of the Department’s Civil Rights Division.
The Justice Department plays a central role in advancing the ADA’s goals of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit http://www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at www.ada.gov/complaint.
Anyone in the District of Rhode Island may also report civil rights violations directly to the U.S. Attorney’s Office for the District of Rhode Island at https://www.justice.gov/usao-ri/civil-rights-enforcement or 401-709-5000.
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Warren Man Sentenced to Sixteen Years in Prison for Enticement of a Minor to Engage in Sex, Possessing and Distributing Child PornographyRead the Press Release
PROVIDENCE, RI – A Warren man who admitted to enticing a minor female online to meet him at a local mall where he planned to dress her in a diaper and engage in illicit sexual activity, and who further admitted to possessing and distributing child pornography, was sentenced today to sixteen years in federal prison, announced United States Attorney Zachary A. Cunha.
Christopher Kinney, 47, previously admitted in court that in April 2018, he had a series of online communications with a person whom he believed to be a 14-year-old girl. The communications rapidly became sexually explicit, with Kinney expressing an interest in meeting the teenager at the Warwick Mall and then engaging in sexual activity in the mall or elsewhere. The person Kinney was communicating with was in fact a Rhode Island State Police Detective assigned to the Internet Crimes Against Children (ICAC) Task Force.
Kinney was subsequently arrested on April 26, 2018, when he travelled to the mall, believing he was going to meet the girl at the food court. A search of Kinney’s car resulted in the discovery of, diapers, condoms and various items that he had discussed using for sexual purposes during his prior chats. A cellphone seized from Kinney at the time of his arrest was found to contain 56 images of child pornography, as well as evidence that, on numerous occasions, he had electronically received and shared files of child pornography and images of children being harshly punished and/or beaten.
Kinney pled guilty in May 2018 to coercion and enticement of a minor, possession of child pornography, and distribution of child pornography. He was sentenced today by U.S. District Court Judge William E. Smith to 192 months in federal prison to be followed by lifetime supervised release. He was also ordered to pay $3,000 in restitution to a victim identified in the images found on his phone.
The case was prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
The matter was investigated by the Rhode Island Internet Crimes Against Children Task Force, with the assistance of Homeland Security Investigations.
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Previously Convicted Sex Offender Sentenced to Ten Years in Federal Prison for Possessing Child PornographyRead the Press Release
PROVIDENCE – A registered sex offender convicted in Rhode Island state court in 1999 on charges of first and second degree child molestation and sentenced to fifteen years to serve in state prison, was sentenced today to ten years in federal prison, following his conviction in federal court in October 2019 on a charge of possession of child pornography, announced United States Attorney Zachary A. Cunha.
In January 2019, Peter R. Medeiros, 59, of Pawtucket, while on state probation, was found by the Rhode Island State Police Internet Crimes Against Children Task Force (ICAC) to have downloaded 268 image files of child pornography depicting prepubescent minors, some as young as infants, and images depicting sadistic/ masochistic/ violent sexually explicit conduct.
The ICAC Task Force was alerted to Mr. Medeiros’ online activities by virtue of a Cybertip Report sent by the National Center for Missing and Exploited Children.
Medeiros was sentenced today by U.S. District Court Judge William E. Smith to 120 months in federal prison to be followed by lifetime federal supervised release. The court ordered Medeiros to pay $3,000 restitution to each victim depicted in the images he possessed that requested compensation.
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Providence Man Admits to Possessing Nearly 2 Kilos of CocaineRead the Press Release
PROVIDENCE – A Providence man, arrested in April 2021 moments after he claimed a package that was found by investigators to contain nearly two kilograms of cocaine shipped from Puerto Rico, pled guilty in federal court on Wednesday to possession with intent to distribute 500 grams or more of cocaine and using a communication device to facilitate the commission of a drug felony, announced United States Attorney Zachary A. Cunha.
The cocaine was concealed inside the heavily wrapped package whose contents had been wrapped in duct tape, spray foamed, and wrapped again with birthday gift wrap.
According to court documents and information presented to the court, on April 15, 2021, moments after a Postal Service employee was unable to make a controlled delivery of the package, addressed to “Jose Azcona,” to a Providence residence, the postal worker was approached by an individual claiming to be a relative of Azcona. This person claimed the package contained medication for his relative and asked that he be allowed to take custody of it, but he was informed that the addressee would have to inquire about a redelivery and personally claim the package. Two days later, after a series of telephone calls inquiring about the package were received by the Postal Service, Robinson Padilla-Rosario, 38, claiming to be Azcona, retrieved the package. He was arrested as he left the post office, and found to be in possession of a fake Rhode Island driver’s license bearing his photograph; the name Jose A. Azcona; and the address to which the package had been mailed. Investigators also discovered evidence on a cellphone in Padilla-Rosario’s possession that he had been using an app to communicate with a person in Puerto Rico; those communications included an image of the Postal Service redelivery slip for the package containing the cocaine.
Padilla-Rosario is scheduled to be sentenced on August 16, 2022. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
The matter was investigated by the U.S. Postal Inspection Service and Rhode Island State Police.
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Rhode Island U.S. Attorney Cunha Recognizes National Police WeekRead the Press Release
PROVIDENCE - In honor of National Police Week, United States Attorney Zachary A. Cunha joins Rhode Islanders across the state in recognition of the service and sacrifice of federal, state, and local law enforcement. This year, the week is observed Wednesday, May 11 through Tuesday, May 17, 2022.
“This week, we gather to pay tribute to the law enforcement officers who sacrificed their lives in service to our country,” said Attorney General Garland. “We remember the courage with which they worked and lived. And we recommit ourselves to the mission to which they dedicated their lives. On behalf of a grateful Justice Department and a grateful nation, I extend my sincerest thanks and gratitude to the entire law enforcement community.”
“Each May, for almost sixty years, we have paused as a nation to commemorate National Police Week and to honor the service and commitment of each and every member of law enforcement, past and present, who serve or served to protect our communities,” noted United States Attorney Zachary A. Cunha. “While our commemoration lasts a week, their dedication spans a career, and sadly in some instances involves the ultimate sacrifice. This year, we remember those who have given their lives in the line of duty, and salute the men and women who honorably serve in local, state, and federal law enforcement.
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), 472 law enforcement officers died nationwide in the line of duty in 2021. Of that number, 319 succumbed to COVID-19.
Additionally, according to 2021 statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 73 law enforcement officers who died in the line of duty in 2021 were killed as a result of felonious acts, whereas 56 died in accidents. Deaths resulting from felonious acts increased in 2021, rising more than 58 percent from the previous year. In 2021, unprovoked attacks[1] were the cause of 24 deaths significantly outpacing all other line of duty deaths resulting from felony acts and reaching the highest annual total in over 30 years of reporting. Additional LEOKA statistics can be found on FBI’s Crime Data Explorer website for the LEOKA program.
The names of the 619 fallen officers added this year to the wall at the National Law Enforcement Officer Memorial will be read on Friday, May 13, 2022, during a Candlelight Vigil in Washington, D.C., starting at 8:00 PM EDT. Those who wish to view the vigil live online, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/TheNLEOMF. The schedule of National Police Week events is available on NLEOMF’s website.
[1] An unprovoked attack is defined as an attack on an officer not prompted by official contact at the time of the incident between the officer and the offender. Source: Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program.
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Reference to any specific organization or service(s) offered by an organization is for the information and convenience of the public, and does not constitute endorsement, recommendation, or favoring by the United States Department of Justice.
[1] An unprovoked attack is defined as an attack on an officer not prompted by official contact at the time of the incident between the officer and the offender. Source: Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program.
“Career Fraudster” Sentenced to Ten Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – A Providence man described in court documents as a career with a propensity to engage in obstructive and violent behavior toward law enforcement, was sentenced today to ten years in federal prison for bilking food distributors out of more than $830,000 and for assaulting federal officers, announced United States Attorney Zachary A. Cunha.
As reflected in prior court filings and proceedings, Paul Diogenes, a/k/a Paul Dejullio, 50, orchestrated a sophisticated and elaborate scheme in which he used stolen banking information from various businesses and a fictitious catering company to fraudulently obtain $831,572 worth of lobster, sea bass, shrimp, scallops, filet, rib eye steak, and wild boar, most of which he resold to area businesses. In some instances, Diogenes sold the ill-gotten products to the same business whose stolen banking information he used to gain credit from food distributors.
On August 3, 2021, as FBI agents, FBI Task Force officers, and Rhode Island State Police attempted to arrest Diogenes behind an East Providence business, he rammed his car into two FBI task force vehicles, one with a task force officer and State Police trooper still inside; drove his vehicle toward an FBI agent who narrowly avoided serious injury; and rammed his car into a delivery van parked nearby before speeding away. The defendant was located by the U.S. Marshals Service and the FBI nine days later at a Middleborough, MA., hotel. He was in possession of a briefcase containing $116,404 in cash, which is to be forfeited to the government.
Diogenes pled guilty on December 17, 2021, to wire fraud and assault of a federal officer. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 120 months in federal prison; three years of federal supervised release; and ordered to pay restitution totaling $831,572.
Diogenes, described in court documents as “an unrepentant and compulsive fraudster,” has been, according to court records, convicted in various courts and jurisdictions thirty-four times, including multiple convictions for fraud-related criminal activity and for charges brought as a result of his violent behavior toward law enforcement.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
Diogenes’s fraud activity was investigated by the FBI’s Rhode Island Complex Financial Crimes Task Force, with the assistance of Rhode Island State Police and the Providence, Woonsocket, East Providence, Bourne, and Fall River Police Departments.
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Providence Man Sentenced in Wide-Ranging Bank Fraud and COVID Small Business Loan SchemesRead the Press Release
PROVIDENCE, R.I. – A Providence resident was sentenced today to five years in federal prison for using the stolen personal identifying information (PII) of unsuspecting individuals to defraud banks and retailers, and for fraudulently seeking more than $3.3 million dollars in small business loans earmarked for businesses impacted by the pandemic, announced United States Attorney Zachary A. Cunha.
Courtney Hilaire, 29, pled guilty on December 20, 2021, to conspiracy to commit wire fraud, fourteen counts of wire fraud, and two counts of aggravated identity theft. He was sentenced today by U.S. District Court Judge William E. Smith to 60 months in federal prison to be followed by three years of federal supervised release.
Hilaire’s involvement in bank fraud and credit card fraud schemes was discovered by Warwick Police on July 3, 2020, when officers found Hillaire and two other men sleeping inside a stolen vehicle in the parking lot of a Warwick hotel. Inside the vehicle, officers discovered eighteen cell phones and other electronic devices; a list of identities and corresponding stolen PII; equipment used to transfer information to credit card magnetic strips; 44 counterfeit credit cards and numerous fraudulent drivers’ licenses from multiple states; and approximately $13,000 in crisp, clean $100 and $50 dollar bills.
A forensic audit of the electronic devices by Homeland Security Investigations revealed links to folders containing templates to create credit cards, fraudulent driver’s licenses, currency, and a link to lists of PII available for purchase on the “dark web.”
One month after being arrested by Warwick Police, Pawtucket Police encountered Hilaire in a rented vehicle; on this occasion, he was found to be in possession of three cell phones, nearly $3,000 in cash, and eight debit cards linked to fraudulently obtained Pennsylvania unemployment benefit accounts. A forensic audit of the cell phones revealed numerous sets of stolen PII and evidence of involvement in Small Business Administration loan fraud.
As a result of their continuing investigation into Hilaire’s fraudulent activity, Homeland Security Investigations arrested Hilaire in April 2021. During a search of his residence, agents seized $47,119 in cash; eleven cell phones and two laptop computers; and devices used to create fraudulent credit cards. When agents arrived at his residence, Hilaire was online filing a fraudulent COVID-related unemployment benefits claim with the state of Alabama. A forensic audit of the cell phones and computers found in his residence revealed that Hilaire had filed 60 fraudulent COVID Economic Injury Disaster Loan applications with eight states, including Rhode Island, with an intended loss to the program of $3,328,695. Loans totaling $328,700 were issued.
Forensic auditors also uncovered evidence that Hilaire spent time online collaborating with and counseling other would-be fraudsters, and provided them with materials and advice on committing economic fraud.
The case was prosecuted by Assistant United States Attorney William J. Ferland.
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Providence Resident Sentenced for Distributing Crack CocaineRead the Press Release
PROVIDENCE – A Providence resident who sold crack cocaine on at least three occasions while under surveillance by members of the FBI’s Safe Street Task Force was sentenced today to five years in federal prison, announced United States Attorney Zachary A. Cunha.
Michael Rodriguez, 26, pled guilty on August 31, 2021, to two counts of distribution of 28 grams or more of cocaine base and distribution of cocaine base.
According to court documents, on July 30, 2020, Rodriguez cooked crack cocaine inside a family member’s Providence apartment while two children were inside the apartment. Rodriguez later sold the crack cocaine, engaging in one transaction that day, and two other sales on later dates.
U.S. District Court Chief Judge John J. McConnell, Jr., today sentenced Rodriguez to 60 months of incarceration to be followed by four years of federal supervised release.
The matter was prosecuted by Assistant U.S. Attorney Ly T. Chin.
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Previously-Convicted Sex Offender Charged with Producing, Distributing, Possessing Child PornographyRead the Press Release
PROVIDENCE – A registered level three sex offender living in Narragansett who is alleged to be the administrator of at least three chat groups on a social media platform often used to download and share child pornography, appeared today in federal court in Providence on charges that he allegedly produced, distributed, and possessed child pornography, announced United States Attorney Zachary A. Cunha.
Jeremy P. Barton, 41, arrested this morning by FBI agents, is charged by way of a federal criminal complaint with production of child pornography; distribution of child pornography; and possession and access with intent to view a visual depiction of a minor in sexually explicit conduct. He was ordered detained following his appearance in federal court.
According to charging documents, in March and April 2022, an FBI online covert employee in Tennessee communicated with multiple members of an online-based social media platform, and observed users trading download links containing child sexual abuse material. The FBI employee communicated with the administrator of least three accounts, later identified by the FBI as Jeremy Barton.
It is alleged that during communications with the FBI employee, Barton discussed online interactions he had with two boys, one known to be 12 years old and another who Barton believed to be 13 or 14. It is alleged that Barton had each of the boys provide him with a video of themselves performing a sex act. Barton allegedly shared the images with the FBI employee.
On Tuesday morning, FBI agents in Rhode Island executed a court-authorized search of Barton’s residence and seized a cell phone belonging to the defendant. The phone is alleged to contain an app that was used to access the accounts allegedly administered by Barton and used when communicating with the FBI employee.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Christine D. Lowell.
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Thrice-Convicted Rhode Island Businessman Sentenced for Pocketing Employee Federal Withholding TaxesRead the Press Release
PROVIDENCE – A Rhode Island businessman convicted of misusing more than a half-million dollars in employment taxes collected from his employees to finance his own personal expenditures, including rent payments on a luxury home and fess for online dating services, has been sentenced to nearly three years in federal prison, announced United States Attorney Zachary A. Cunha.
Steven M. Allard, 60, of North Scituate, owner and operator of BR Steel Corporation in Burrillville and Greystone Iron Corporation in Smithfield, previously admitted in court that from at least 2017 through 2018, he failed to turn over to the IRS more than $570,000 in federal employment taxes and FICA payments withheld from his employees. Instead, Allard used the money to pay for personal expenditures including the purchase of more than $216,000 in “credits” to an online dating website, RussianBrides.com, and $93,000 in rent payments for a luxury home in Scituate.
Allard pleaded guilty on September 20, 2020, to willful failure to collect or pay over taxes. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 33 months in federal prison to be followed by three years of federal supervised release; and pay $625,186.29 restitution to the IRS.
This case marks the third federal conviction and sentencing of Allard in U.S. District Court in Rhode Island. In 2009, Allard pleaded guilty to tax evasion and bankruptcy fraud and was sentenced to 30 months in prison. In that matter, Allard admitted that from March 2005 to July 2006, he diverted for his own use $1.6 million dollars due the IRS; and that he made false statements about real estate holdings in a bankruptcy filing in 2005. Prior to that, Allard was found guilty by a jury at trial of accepting kickbacks from public employees and was sentenced to 10 months in federal prison.
Allard’s most recent federal case was prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
The matter was investigated by the Internal Revenue Service Criminal Investigation, the FBI, and the U.S. Department of Labor Employee Benefits Security Administration.
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Providence Resident Admits to Role in Bank Fraud ConspiracyRead the Press Release
PROVIDENCE – A Providence man appeared in federal court in Providence today and admitted to his role in a conspiracy to defraud banks of up to $550,000, announced United States Attorney Zachary A. Cunha.
Richard Koboi, aka Sunnyboy Taylor, 26, admitted to the court that he and others obtained stolen checks and stolen banking information of businesses and individuals that they used to create counterfeit checks. Some of the banking information used to create fraudulent checks was provided surreptitiously by two bank employees.
Koboi admitted that he and others recruited individuals through Facebook and by other means and paid them to allow the counterfeit checks to be deposited into their bank accounts. Once the counterfeit checks were deposited, Koboi and others made or attempted to make rapid withdrawals of cash from ATMs or teller withdrawals. The deposits and attempts to withdraw cash from the affected accounts resulted in an intended loss to banking institutions of between $250,000 and $550,000.
During the course of the investigation, law enforcement discovered a Facebook “for sale” posting accompanied by a photograph of a firearm posted by Koboi; communications between Koboi and another individual arranging for the purchase and delivery of the firearm displayed in the posting; and additional photographs of the firearm stored on Koboi’s cellphone.
Appearing today before U.S. District Court Chief Judge John J. McConnell, Jr., Koboi pleaded guilty to conspiracy to commit bank fraud, ten counts of bank fraud, and being a felon in possession of a firearm.
Koboi is scheduled to be sentenced on July 26, 2022. 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 matter is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
The matter was investigated by the U.S. Postal Inspection Service, with the assistance of the FBI, United States Secret Service, ATF, Rhode Island State Police, Providence Police Department, and Delaware State Police.
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North Attleboro Resident Sentenced to Six Years in Federal Prison for Leading Steroid Distribution ConspiracyRead the Press Release
PROVIDENCE – A North Attleboro, MA, resident convicted of leading a conspiracy to import significant quantities of steroids and distribute them across the United States was sentenced Tuesday in the U.S. District Court in Providence to six years in federal prison.
David M. Esser, 48, arranged for the importation of raw steroids from international suppliers, primarily based in Hong Kong. The steroids were, at Esser’s direction, shipped directly to various locations in the United States where individuals “cooked” the raw steroid product into liquid form; packaged the final product into pills and vials; and shipped the products to a stash house in North Attleboro. From there, Esser and others shipped the products to customers throughout the United States.
First arrested in February 2020, Esser was arrested for a second time ten months later when, while awaiting trial, he resumed the sale, packaging, and distribution of anabolic steroids with co-conspirators in Virginia, Texas, and elsewhere in the United States.
“David Esser oversaw every aspect of a sprawling drug operation in which he and his confederates prepared and shipped massive quantities of illegal anabolic steroids throughout the nation, and funneled his profits into real estate, cryptocurrency, and a luxury lifestyle, persisting in his crimes even after his initial arrest and pretrial release,” said U.S. Attorney Cunha. “Not only did his actions put thousands of his customers at risk, but they also reflect a breathtaking disregard for the law, both of which are appropriately answered by the significant sentence meted out by the Court.”
“Esser pursued his criminal enterprise and quest for profit— even after his first arrest in early 2020—trafficking illegal steroids manufactured by the network he oversaw. Complex cases like this require collaboration and HSI is grateful to our partners for their assistance on this case,” said Matthew Millhollin, Special Agent in Charge for the Homeland Security Investigations’ New England Field Office.
Esser pleaded guilty on March 23, 2021, to conspiracy to distribute anabolic steroids, conspiracy to distribute anabolic steroids while on (pre-trial) release, and money laundering. He was sentenced on Tuesday by U.S. District Court Chief Judge John J. McConnell, Jr., to 72 months in federal prison to be followed by 3 years of federal supervised release and a fine of $10,000.
In addition to the fine, Esser will forfeit $414,600 in proceeds realized from his criminal conduct as well as all interest in cryptocurrency that he owns or in which he has an interest.
The case was prosecuted by Assistant United States Attorney Christine D. Lowell.
United States Attorney Cunha thanks the Homeland Security Investigations Agents in the Providence, Boston, Houston, and Winston-Salem Offices; United States Postal Inspection Service; Alamance County North Carolina Narcotics Enforcement Team; U.S. Food and Drug Administration; Internal Revenue Service Criminal Investigation; DEA Agents in Norfolk, Virginia; Rhode Island State Police; and the North Attleboro and Mansfield Police Departments for their assistance in the investigation of this matter and arrest of defendants charged in this matter.
Mr. Cunha also acknowledges and thanks the United States Attorney’s Office in the Eastern District of Virginia for their valuable assistance in the preparation for the prosecution of this case.
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Johnston Man Sentenced for Bank FraudRead the Press Release
PROVIDENCE, R.I. – A Johnston man who recruited individuals to allow counterfeit checks to be deposited into their accounts as part of a scheme to defraud banks; deposited counterfeit checks into those bank accounts; and aided and abetted in the withdrawal of funds from the accounts, was sentenced today to sixteen months in federal prison, announced United States Attorney Zachary A. Cunha.
According to charging documents and information presented to the court, beginning in October 2020, while on federal supervised release, having been convicted of bank fraud and sentenced in 2019 for participating in a similar conspiracy, Nestor Concepcion, 26, arranged for and coordinated the deposit of multiple counterfeit checks with an intended loss to banks totaling $71,717.77.
In this latest matter, Concepcion pleaded guilty on January 21, 2022, to conspiracy to commit bank fraud and three counts of bank fraud.
At sentencing today, U.S. District Court Judge William E. Smith sentenced Concepcion to sixteen months in federal prison to be followed by three years of federal supervised release. Conception was ordered to pay restitution totaling $33,635, representing the actual loss to banks.
The case was prosecuted by Assistant United States Attorney William J. Ferland.
The matter was investigated by the United States Postal Inspection Service.
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Central Falls Man Returned to Federal Prison for Violating the Terms of Supervised ReleaseRead the Press Release
PROVIDENCE – A Central Falls man sentenced in 2018 to four years in federal prison on aggravated identity theft and fraud charges, and subsequently arrested twice for violating the terms of his federal supervised release after completing his term of incarceration, was sentenced today to 24 months in prison, announced United States Attorney Zachary A. Cunha.
In November 2017, Reynaldo Martinez, 29, pleaded guilty to four counts of aggravated identity theft; two counts of access device fraud; and one count each of bank fraud, conspiracy to commit fraud, attempted access device fraud, and interstate transportation of stolen goods. Martinez admitted that he participated in a scheme to use the stolen identities of numerous individuals to open retail store credit cards and lines of credit that he then used to purchase tens of thousands of dollars worth of goods in Rhode Island and Massachusetts. He was sentenced in January 2018 to forty-eight months in prison to be followed by three years of federal supervised release.
According to court documents, Martinez was arrested in August 2021 and again in February 2022 by the United States Marshals Service for violating the terms of his supervised release. On February 22, 2022, Martinez appeared before U.S. District Court Magistrate Judge Lincoln D. Almond and admitted that he violated the terms of his probation. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 24 months in prison to be followed by 4 years of supervised release.
The matter was prosecuted by Assistant U.S. Attorney William J. Ferland.
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Woonsocket Drug Runner Sentenced to Federal PrisonRead the Press Release
PROVIDENCE, R.I. – A Woonsocket woman who acted as a runner for two men convicted of brokering drug deals and supplying fentanyl and crack cocaine has been sentenced to one year and one day in federal prison, announced United States Attorney Zachary A. Cunha.
Natalie Cassidy, 28, pleaded guilty on May 5, 2021, to conspiracy to distribute and to possess with intent to distribute cocaine base; distribution of cocaine base and fentanyl; and possession with intent to distribute fentanyl.
At the time of her guilty plea, Cassidy admitted that, working in conjunction with Juan Batista, 36, of Woonsocket, and Angel Aviles, 33, of Cranston, she delivered crack cocaine and fentanyl to individuals with whom Batista and Aviles brokered drug deals.
Batista and Aviles are awaiting sentencing, having pled guilty to conspiracy to distribute and to possess with intent to distribute cocaine base; distribution of cocaine base and fentanyl; and possession with intent to distribute fentanyl.
A defendant’s sentence is determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The cases are being prosecuted by Assistant U.S. Attorney Christine D. Lowell.
The matter was investigated by the FBI Rhode Island Safe Streets Gang Task Force, comprised of agents and law enforcement officers from the FBI, United States Marshals Service, Central Falls Police Department, Cranston Police Department, Pawtucket Police Department, Providence Police Department, West Warwick Police Department, Woonsocket Police Department, and Rhode Island State Police.
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Scituate Resident Sentenced to Federal Prison for Possessing, Distributing Child PornographyRead the Press Release
PROVIDENCE, R.I. – A Scituate man who shared sexually explicit images of prepubescent girls online with an undercover federal law agent he thought to be the parents of a 13-year-old girl has been sentenced to five years in federal prison, announced United States Attorney Zachary A. Cunha.
David C. Duquette, 54, pleaded guilty on November 29, 2021, to possession of child pornography and distribution of child pornography. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 60 months of incarceration to be followed by eight years of federal supervised release.
According to charging document, in February 2019, a Homeland Security Investigations agent engaged in a series of online exchanges with Duquette, posing as both the mother and father of a 13-year-old girl. In those exchanges, Duquette admitted that, in the past, he communicated online with young teenage girls, and that some of them shared sexually explicit images. The agent suggested he too shared an interest in viewing child pornography. Duquette sent him two sexually explicit images depicting prepubescent girls.
Duquette was arrested on April 17, 2019. His cellphone was found to contain approximately 1,400 images of child pornography.
The case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
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United States Reaches Agreement with CVS Pharmacy, Inc., to Ensure Online Access to COVID-19 Vaccine Registration for People with DisabilitiesRead the Press Release
PROVIDENCE, R.I. – The United States Attorney’s Office for the District of Rhode Island and the Justice Department announced today that they have reached a settlement agreement with CVS Pharmacy, Inc., (CVS) to ensure that people with disabilities can get information about COVID-19 vaccinations and book vaccination appointments online. CVS, headquartered in Woonsocket, Rhode Island, is the country’s largest retail pharmacy, with nearly 10,000 locations nationwide.
Following investigation, the United States determined that CVS’s COVID-19 vaccine registration portal, currently located at https://www.cvs.com/immunizations/covid-19-vaccine, was not accessible to people with certain disabilities, including those who use screen reader software or have a hard time using a mouse. For instance, at the outset of the scheduling process, the types of vaccine appointments offered (which included influenza, pneumonia, and others in addition to the COVID-19 option) were not read to screen reader users. Further, on the page where a user picks a time for their appointment, screen reader users were told that all available times were “checked,” even though the user had not made any selection. Additionally, people who use the “Tab” key instead of a mouse to navigate websites were not able to navigate past a request for insurance information.
Title III of the Americans with Disabilities Act (ADA) requires public accommodations like drugstores and grocery stores to provide individuals with disabilities with full and equal enjoyment of goods and services. The ADA also requires public accommodations to provide effective communication with people with disabilities, including through the use of auxiliary aids and services like accessible technology.
Under the terms of the agreement, CVS will facilitate accessibility by conforming its web content about the COVID-19 vaccine, including the forms for scheduling an appointment to get the vaccine, to the Web Content Accessibility Guidelines (WCAG), Version 2.1, Level AA. WCAG is a set of voluntary industry guidelines for making information on a website accessible to users with disabilities. The agreement also requires CVS to regularly test the pages of its website that include vaccine scheduling and information about the COVID-19 vaccine, and quickly fix any problems that keep people with disabilities from being able to use these pages.
“While web accessibility is always important, when it comes to critical health services like COVID-19 vaccination, making sure that everyone—regardless of disability—can access information and care is essential,” said U.S. Attorney Zachary A. Cunha of the District of Rhode Island. “This Office is committed to vigorously enforcing the ADA to eliminate unnecessary barriers that stand in the way of lifesaving care.”
“Now more than ever, we must ensure web accessibility for people with disabilities seeking access to critical needs and services,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We are working aggressively to identify and remove barriers that prevent people with disabilities from privately and independently securing potentially life-saving COVID-19 vaccines. We will continue to work towards the ADA’s promise of equal access during the ongoing global pandemic.”
This matter was handled jointly by Assistant United States Attorney Amy R. Romero of the District of Rhode Island and Anne Langford and Joy Welan, attorneys for the Disability Rights Section of the Department’s Civil Rights Division.
The U.S. Attorney’s Office for the District of Rhode Island is committed to investigating alleged violations of the Americans with Disabilities Act. The Department of Justice has a number of publications available to assist entities in complying with the ADA. For more information on the ADA and to access these publications, visit www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TTY). Any member of the public who wishes to file a complaint alleging a public entity or public accommodation in Rhode Island is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at https://www.justice.gov/usao-ri/civil-rights-enforcement or 401-709-5000.
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Fourth Defendant Pleads Guilty in Scheme to Employ Homeless Individuals to Cash Bogus Business ChecksRead the Press Release
PROVIDENCE, R.I. – A fourth Georgia man charged in federal court in Rhode Island with participating in a long-running scheme to entice homeless and transient individuals in the Providence area to cash counterfeit business checks in return for cash payments pled guilty today to conspiracy to commit bank fraud, announced United States Attorney Zachary A. Cunha.
Cortavious Benford, 28, of Atlanta, GA, pled guilty today; Austin Weaver, 26, of Decatur, GA, pled guilty on April 6; Jalen Ronald Stanford, 28, of East Point, GA, pled guilty on March 10; and Michael Williams, 27, of East Point, GA, pled guilty on July 7, 2021.
Benford, Weaver, and Stanford are awaiting sentencing; Williams was sentenced by U.S. District Chief Judge John J. McConnell, Jr., on February 16, 2022, to 41 months in federal prison to be followed by 3 years of federal supervised release. A defendant’s sentence is determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
According to charging documents, homeless and other individuals enlisted by the four men were provided a bogus business check in their name and driven to financial institutions in Rhode Island, Massachusetts, Connecticut, Maine, and elsewhere. The bogus business checks had been created by members of the conspiracy using stolen banking information of actual businesses. The individuals recruited by the conspirators were instructed on how to enter the bank, cash the check using their own Rhode Island ID card or driver’s license for identification, and then return to the vehicle with the cash. Upon their return, a member of the conspiracy paid them between $100 and $200.
Two members of the conspiracy, Michael Williams and Cortavious Benford, were arrested on February 5, 2021, after they recruited and drove a homeless person to a Providence bank. They threatened to injure him if he failed to provide them with all of the check’s proceeds. Despite the threat, once inside the bank, the man pointed out the vehicle parked outside of the bank as containing individuals who provided him with a counterfeit check. Providence Police located the vehicle a short distance away and arrested Williams and Benford. They were in possession of $12,000 in cash.
A court-authorized search of a Providence residence by Providence Police and the United States Secret Service resulted in the seizure of a computer, which had a program used to design and print checks; a printer; blank check stock; and an envelope containing stolen checks and approximately $5,000 in cash. Several completed fraudulent checks were found on the computer.
Jalen Ronald Stanford was arrested on February 25, 2021; Austin Weaver was arrested on March 3, 2021.
The investigation determined that members of the conspiracy attempted to cash approximately $677,687 worth of counterfeit checks throughout the New England region, causing losses to financial institutions of approximately $480,000.
The cases are being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
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Woonsocket Businessman Admits Defrauding the IRS of over Two Million DollarsRead the Press Release
PROVIDENCE, R.I. – A Woonsocket businessman today admitted in federal court that he participated in scheme to defraud the Internal Revenue Service of more than two million dollars in taxes, announced United States Attorney Zachary A. Cunha.
In pleading guilty to conspiracy to defraud the United States and wire fraud, Jesus Jose Mendez, 44, co-owner J&J Drywall, Inc., a subcontracting business incorporated in Massachusetts and operating in Rhode Island, admitted that he, and the co-owner of the business, paid most employees in cash, failing to properly account for, withhold, and pay federal and state employment taxes; the two similarly failed to make required unemployment insurance contributions.
According to charging documents, from 2013 to 2017, Mendez and his business partner, Jamie Zambrano, 36, of Woonsocket, allegedly used check-cashing businesses to cash more than 600 business receipt checks totaling more than $16 million dollars. While under law enforcement surveillance, Mendez and his business partner allegedly cashed checks at a Rhode Island check-casher, then travelled to construction sites carrying backpacks full of cash, which they left at the construction sites to be used to pay their employees.
During the same period, Mendez and Zambrano made just over $4 million in deposits in the business’s bank accounts, frequently structured in amounts of less than $10,000. Most of the remaining millions were allegedly used to fund a cash payroll for under-the-table laborers. With the exception of a small number of employees placed on an official payroll and paid by check, income and employment taxes were not withheld or paid to the IRS, and unemployment contributions were not made.
The IRS calculated the total federal tax loss at $2,821,463; the Massachusetts Department of Labor calculated a loss of unemployment contributions to the Commonwealth of Massachusetts at $62,730.
Mendez is scheduled to be sentenced by U.S. District Court Chief Judge John J. McConnell, Jr., on July 14, 2022. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
Zambrano is currently a fugitive facing an indictment charging him with conspiracy to defraud the United States (IRS); 17 counts of failure to collect and pay over taxes; tax evasion; and eight counts of structuring financial transactions to evade reporting requirements. A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by Internal Revenue Service Criminal Investigation and U.S. Department of Labor Office of Inspector General, with substantial assistance from the U.S. Department of Labor – Office of Labor-Management Standards in Boston and the Rhode Island State Police.
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Providence Man Sentenced on Firearm, Transportation of Stolen Property ChargesRead the Press Release
PROVIDENCE, R.I. – A Providence man who admitted to being a prohibited person in possession of a firearm and with participating in a conspiracy to transport stolen recreation vehicles into Rhode Island was sentenced on Wednesday to thirty-seven months in federal prison, announced United States Attorney Zachary A. Cunha.
On December 21, 2020, Luis M. Morales, 39, pled guilty to being a prohibited person in possession of a firearm, and, in a separate case, to conspiracy to commit interstate transportation of stolen property and two counts of interstate transportation of stolen property.
According to charging documents and information presented to the court, Morales is one of nine individuals who participated in a conspiracy, stretching across several states, to steal and sell sport boats, jet skis, all-terrain vehicles, excavators, and trailers. Morales admitted that on July 17, 2020, he drove a pick-up truck to a Stafford, CT, recreational vehicle dealership where he and others stole a 2020 Yamaha watercraft, a 2019 Can-Am Maverick Sport off-road vehicle, and two trailers; all of these items were transported into Rhode Island. Morales similarly admitted that he and others stole three jet skis from a dealership an Easton, MA, on July 20, 202, and transported them to Rhode Island.
In a separately charged case, an Easton Police Detective encountered Morales while investigating the theft of the jet skis. During interviews police obtained his cell phone, which was turned over to the FBI and searched pursuant to a federal warrant. The FBI review discovered text messages indicating that Morales was also brokering the sale of fentanyl to a Massachusetts drug user in exchange for firearms. An analysis of these text messages established that Morales received or brokered the sale/trade of six firearms. Among the firearms obtained by Morales was an AR-15 assault rifle.
On Wednesday, U.S. District Judge Mary S. McElroy sentenced Morales to thirty-seven months in federal prison to be followed by three years of federal supervised release. In addition, Judge McElroy ordered Morales to pay a combined total of $55,455 in restitution to the owners of the stolen property and to insurance companies. Additionally, Judge McElroy ordered Morales to pay a $1,000 fine.
The cases were prosecuted by Assistant U.S. Attorneys William J. Ferland and Ly T. Chin.
An investigation by the Johnston and North Providence Police Departments, joined by the FBI Safe Streets Task Force and merged with a parallel investigation by Rhode Island and Connecticut State Police, and the Easton, MA, and the Hampstead, NH, Police Departments, determined that between November 2019 and July 2020, three Bobcat excavators, ten jet skis, four boats, eight all-terrain vehicles, and ten trailers valued at over $700,000 were stolen.
United States Attorney Cunha thanks the FBI and ATF for their assistance in investigating Morales’ firearms trading activity.
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North Providence Man Admits to Wire Fraud, Theft of Government FundsRead the Press Release
PROVIDENCE, R.I. – A North Providence man who lives and works in Rhode Island today admitted that he filed COVID-relief unemployment applications in at least two other states, collecting more than $20,000 in benefits he was not entitled to receive, announced United States Attorney Zachary A. Cunha and Rhode Island Attorney General Peter F. Neronha.
Derrick Gadson, 35, pled guilty in federal court to two counts of wire fraud and one count of theft of government money.
According to information presented to the court, while collecting COVID-relief unemployment benefits in Rhode Island in June 2020, Gadson began filing for unemployment benefits in Massachusetts and Arizona, fraudulently claiming that he worked in both states. Gadson collected a total of $20,727 in federally funded unemployment insurance benefits that he was not entitled to receive.
Gadson is scheduled to be sentenced by U.S. District Court Judge William E. Smith on July 11, 2022. The defendant’s sentence 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, the Rhode Island State Police, and the U.S. Department of Labor – Office of Inspector General. Cases are jointly reviewed, charged, and prosecuted by a team of prosecutors that include Assistant U.S. Attorneys Denise M. Barton, Stacey P. Veroni, and G. Michael Seaman, and Rhode Island Assistant Attorney General John M. Moreira, chief of the Rhode Island Attorney General’s Public Integrity Unit.
Rhode Islanders who believe their personal identification has been stolen and used to fraudulently obtain unemployment benefits are urged to contact the Rhode Island State Police at [email protected] or the FBI Providence office at (401) 272-8310.
On May 17, 2021, the United States Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID- 19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Dominican National Pleads Guilty to Drug Trafficking, Firearm, Illegal ReentryRead the Press Release
PROVIDENCE, RI – A Dominican national living in Providence faces sentencing in U.S. District Court and deportation proceedings after pleading guilty today to drug trafficking, firearm, and illegal reentry charges, announced United States Attorney Zachary A. Cunha.
Stevens Morales-Rivera, 46, who previously identified himself using several aliases, pleaded guilty to possession of cocaine with the intent to distribute, possession of a firearm by a prohibited person, and illegally re-entry of a removed alien.
According to charging documents, in August 2021, a Newport Police Department Detective and other members of the Rhode Island DEA Drug Task Force began a Project Safe Neighborhoods investigation into Morales-Rivera’s drug trafficking activities. The investigation included several DEA supervised purchases of cocaine from the defendant.
On October 19, 2021, members of the DEA Task Force conducted a court-authorized search of Morales-Rivera’s residence and seized six kilograms of cocaine, a .25 caliber semiautomatic pistol, a kilogram-press, $8,995 in cash, and various items used in the preparation and distribution of narcotics.
According to information presented to the court, at the time of his arrest, Morales-Rivera was found to have fingerprints on file with law enforcement under a different name; he had criminal records under two names, including a conviction in Massachusetts for trafficking cocaine; and he had been deported and re-entered the United States illegally.
Morales-Rivera, detained since his arrest in October 2021, is scheduled to be sentenced by U.S. District Court Judge Mary S. McElroy on June 23, 2022. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant U.S. Attorney G. Michael Seaman.
The Rhode Island DEA Drug Task Force is comprised of personnel from the DEA; United States Postal Service Office of Inspector General; Rhode Island Attorney General’s Office Bureau of Criminal Identification and Investigation; Rhode Island State Police; the East Providence, Cranston, Coventry, Newport, North Kingstown, Pawtucket, Providence, South Kingstown, Warwick, West Warwick, and Woonsocket Police Departments; and Amtrak Police Department.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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U.S. Attorney’s Office Commemorates Sexual Assault Awareness MonthRead the Press Release
PROVIDENCE, R.I. – Each April, the Department of Justice and United States Attorney’s Offices across the nation join survivors, advocates, and communities in observing Sexual Assault Awareness and Prevention Month. Sexual assault is far too prevalent, and it is important to not only raise awareness of the myriad forms of it takes, but to engage in meaningful prevention efforts, take action to hold offenders accountable, and care for survivors in a trauma-informed manner.
United States Attorney Zachary A. Cunha joins the Department of Justice and the Office on Violence Against Women (OVW) in applauding the recent passage of the Violence Against Women Reauthorization Act of 2022 (VAWA 2022), which treats sexual assault as the serious violation it is and creates new programs and initiatives that provide survivors of sexual violence with increased access to services and justice.
VAWA 2022 also expands outreach to survivors in underserved communities, including by improving access to sexual assault medical forensic examinations for survivors in rural areas; providing community-specific services for LGBT survivors; and restoring tribes’ jurisdiction to prosecute non-Indian perpetrators of sexual violence and sex trafficking, among certain other offenses committed on tribal lands.
“This year, as we recognize Sexual Assault Awareness and Prevention Month, we honor the victims of sexual assault and its impacts by rededicating ourselves- not just this month, but every month- to doing everything in our power to combat these crimes in our communities, to support sexual assault victims, and to raise awareness,” said U.S. Attorney Cunha. “It is imperative that victims know that they are not alone, and that the law enforcement community stands with them and will continue to seek justice on their behalf.”
“During Sexual Assault Awareness and Prevention Month, and every month, OVW-funded programs across the nation provide essential services to survivors of sexual assault, responding to their needs, helping them heal, and supporting them as they pursue the justice they seek,” said OVW Principal Deputy Director Allison Randall. “The impact of sexual violence is felt by the entire community and can devastate survivors’ lives, which is why it is critical that VAWA 2022 strengthens not just services and justice interventions but also prevention.”
Recently awarded funding provides more than $2.7 million in OVW funds to agencies in Rhode Island, to include $575,000 to the Blackstone Valley Advocacy Center; $179,076 to Day One; $98,706 to the Rhode Island Coalition Against Domestic Violence; $1,401,676 to the Rhode Island Department of Public Safety; and $500,000 to Sojourner House.
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
If you or someone you know is experiencing or has experienced sexual violence, you are not alone and there are many services available to help, including the Sexual Assault Hotline, 1-800-656-HOPE (4673). In addition, you can find a local resources page on OVW’s website, which lists state sexual assault coalitions that can direct you to local resources and services, as well as opportunities to get involved.
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Providence Man Sentenced to More Than Four Years on Drug and Firearm ChargesRead the Press Release
PROVIDENCE, R.I. – A Providence man previously convicted and incarcerated on drug trafficking charges today was sentenced to more than four years in federal prison on additional and unrelated drug trafficking and firearm charges brought as the result of a Project Safe Neighborhoods investigation, announced United States Attorney Zachary A. Cunha.
Joaquin Fabian, 24, was sentenced by U.S. District Court Judge Mary S. McElroy to 50 months of incarceration to be followed by three years of federal supervised release. He pleaded guilty in December to possession of a firearm by a prohibited person, possession of cocaine with intent to distribute, and possession of marijuana with intent to distribute.
According to charging documents and information presented to the court, in January 2021, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Task Force agents and Providence Police Detectives determined that Fabian regularly drove to Southeastern Massachusetts to conduct drug trafficking business, routinely changing vehicles and employing counter-surveillance techniques in an effort to avoid detection. During one such trip on April 14, 2021, he posted a photograph on social media of a handgun positioned between his legs while he was seated in a motor vehicle.
As Fabian returned to the area of his Providence residence, members of the ATF Task Force conducted a traffic stop of his vehicle. As he exited the vehicle, Fabian grabbed towards his waistline consistent with efforts to draw a firearm, and fled on foot. Task Force officers quickly located Fabian; a Glock semi-automatic pistol, consistent with the firearm in the photograph, was located on the ground nearby.
Following Fabian’s arrest, a total of 64.8 grams of cocaine, 1,030.9 grams of marijuana, three loaded magazines of ammunition, nearly 300 rounds of assorted ammunition, and $18,802 in cash were seized from Fabian’s vehicle and residence.
Fabian had recently completed a term of incarceration at the Adult Correctional Institutions for a drug trafficking conviction prior to his arrest in April 2021. Additionally, he was free on bail awaiting trial in state court on unrelated assault and firearm charges.
The case in federal court was prosecuted by Assistant U.S. Attorney William J. Ferland. United States Attorney Cunha thanks the Providence Police Department for their support and assistance in this investigation.
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.
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Rhode Island Man Admits to Fraudulently Filing for COVID-Relief Unemployment BenefitsRead the Press Release
PROVIDENCE, R.I. – A Providence man who filed fraudulent online COVID-relief unemployment insurance claims in five states pled guilty today in federal court to a charge of wire fraud, announced United States Attorney Zachary A. Cunha and Rhode Island Attorney General Peter F. Neronha.
According to charging documents and information presented to the court, in May 2020, Jesse Hazard, 31, who worked only in Massachusetts, submitted an online application seeking expanded pandemic unemployment benefits from the Massachusetts Department of Unemployment Assistance. Despite receiving these benefits from Massachusetts, between June 17, 2020, and September 12, 2020, Hazard filed similar online benefit applications with unemployment agencies in five other states: Arizona, Nevada, California, Colorado, and Nebraska. In his applications, Hazard falsely claimed that he worked in, or was a resident of, each of those states.
Hazard received $12,876 in funds from California; his claims to Arizona, Nevada, Nebraska, and Colorado were denied. The total loss, both actual and intended, amounts to $48,152.
Hazard is scheduled to be sentenced on July 14, 2022. The defendant’s sentence 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, the Rhode Island State Police, and the U.S. Department of Labor – Office of Inspector General. Cases are jointly reviewed, charged, and prosecuted by a team of prosecutors that include Assistant U.S. Attorneys Denise M. Barton, Stacey P. Veroni, and G. Michael Seaman, and Rhode Island Assistant Attorney General John M. Moreira, chief of the Rhode Island Attorney General’s Public Integrity Unit.
United States Attorney Cunha and Attorney General Neronha thank the United States Secret Service and Internal Revenue Service-Criminal Investigations for their assistance in the investigation of this matter.
Rhode Islanders who believe their personal identification has been stolen and used to fraudulently obtain unemployment benefits are urged to contact the Rhode Island State Police at [email protected] or the FBI Providence office at (401) 272-8310.
On May 17, 2021, the United States Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID- 19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Providence Man Admits to Distributing MethRead the Press Release
PROVIDENCE, R.I. – A Providence man today pled guilty in federal court to a charge of knowingly and intentionally distributing and possessing with intent to distribute 50 grams or more of a methamphetamine mixture, announced United States Attorney Zachary A. Cunha.
According to charging documents, during a Rhode Island DEA Drug Task Force investigation that began in September 2021, members of the task force monitored transactions between Jamont Patrick, 30, and another person on November 3, 2021; during these transactions Patrick sold the individual a total of approximately 203 grams of methamphetamine pills.
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.
Patrick is scheduled to be sentenced on July 14, 2022. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant U.S. Attorney G. Michael Seaman.
The Rhode Island DEA Drug Task Force is comprised of personnel from the DEA; United States Postal Service Office of Inspector General; Rhode Island Attorney General’s Office Bureau of Criminal Identification and Investigation; Rhode Island State Police; the East Providence, Cranston, Coventry, Newport, North Kingstown, Pawtucket, Providence, South Kingstown, Warwick, West Warwick, and Woonsocket Police Departments; and Amtrak Police Department.
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Cumberland Man Charged with Possessing and Distributing Child PornographyRead the Press Release
PROVIDENCE, R.I. – A Cumberland man made an initial appearance in federal court on Wednesday, charged with allegedly possessing and distributing child pornography, announced United States Attorney Zachary A. Cunha.
Patrick K. Newton, 26, is charged by way of a federal criminal complaint with distribution of child pornography, and possession and access with intent to view child pornography. He was released on unsecured bond following an appearance before a United States Magistrate Judge.
It is alleged in charging documents that, in January, a Homeland Security Investigations agent reviewed information from the National Center for Missing and Exploited Children regarding a person allegedly downloading and sharing child pornography. The agent determined that an email and IP address allegedly belonging to Newton was being used to view and share the material.
On Wednesday, HSI and members of the Rhode Island State Police Internet Crimes Against Children Task Force executed a court-authorized search of Newton’s residence. It is alleged that videos and images of child pornography were discovered during a brief on-scene forensic preview of a cell phone and a digital storage device belonging to Newton. Several computers, cell phones, and a second digital storage device were seized and will further analyzed by the ICAC Task Force.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
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West Warwick Man Indicted in Unemployment Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – A West Warwick man was arraigned on Monday in U.S. District Court on charges contained in a federal indictment alleging that he participated in a conspiracy to use the stolen identities of others to gain COVID related unemployment insurance benefits, announced United States Attorney Zachary A. Cunha and Rhode Island Attorney General Peter F. Neronha.
Richard Allen, 56, pled not guilty to conspiracy to commit mail fraud, five counts of aggravated identity theft, and two counts of theft of government money.
Charging documents allege that Allen and other members of the conspiracy used stolen personal identifying information of other individuals, to file for COVID-related unemployment benefits. It is alleged that fraudulent applications were filed with agencies in multiple states, including Ohio, Massachusetts, Arizona, and Texas. Allen and co-conspirators are alleged to have listed addresses associated with Allen to which benefit payments by check or debit card should be mailed.
Charging documents allege that Allen communicated with co-conspirators to activate benefit debit cards; withdrew funds from the debit cards; and sent a portion of the funds to co-conspirators, including via Bitcoin transactions. U.S. Department of Labor – Office of Inspector General databases show that checks and debit cards in the names of other persons with at least $58,734 in unemployment and expanded COVID benefits were mailed to Allen’s address.
The indictment also alleges that Allen, while conspiring to and receiving debit cards and checks with fraudulent unemployment insurance benefits, also fraudulently received payments from the Social Security Administration.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty. A defendant’s sentence 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, the Rhode Island State Police, and the U.S. Department of Labor – Office of Inspector General. Cases are jointly reviewed, charged, and prosecuted by a team of prosecutors that include Assistant U.S. Attorneys Denise M. Barton, Stacey P. Veroni, and G. Michael Seaman, and Rhode Island Assistant Attorney General John M. Moreira, chief of the Rhode Island Attorney General’s Public Integrity Unit.
United States Attorney Cunha and Attorney General Neronha thank the Social Security Administration, Office of Inspector General for their assistance in the investigation of this matter.
Rhode Islanders who believe their personal identification has been stolen and used to fraudulently obtain unemployment benefits are urged to contact the Rhode Island State Police at [email protected] or the FBI Providence office at (401) 272-8310.
On May 17, 2021, the United States Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID- 19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Warwick Man Sentenced for Illegal Unlicensed Firearms Dealing and False Statements in Firearms PurchasesRead the Press Release
PROVIDENCE, R.I. – Ademola Kayode, Jr., 30, of Warwick, convicted by a federal court jury of being in the business illegally buying and possessing firearms, and selling them on the streets of Rhode Island and elsewhere, was sentenced today to twenty-four months in federal prison, announced United States Attorney Zachary A. Cunha.
Kayode was found by a jury to have purchased at least sixteen firearms, in each case falsely stating on ATF forms that he was not an unlawful user of controlled substances when, in fact, he was, and thus he was prohibited from possessing a firearm. The jury also convicted Kayode of acting as an unlicensed firearms dealer, selling firearms to persons legally prohibited from possessing a firearm; and found that he repeatedly lied to federal agents when questioned about the whereabouts of sixteen firearms that he illegally purchased.
The government’s evidence showed that Kayode sold at least five of the firearms and that they ended up in the hands of individuals who were legally prohibited from possessing them. Three of the guns were recovered Providence, one in Atlanta, and one in Queens, New York.
The jury convicted Kayode of engaging in the business of dealing in firearms without a license, possession of a firearm by an unlawful user of a controlled substance, false statement during purchase of firearms, and two counts of false statements to federal agents.
According to the government’s evidence presented at trial, in June 2016, Kayode was surveilled by ATF agents as he left a licensed Rhode Island firearms dealer after taking possession of four firearms. He later told investigators that he had taken those firearms, as well as others he had purchased in Rhode Island, to Georgia. Two of those firearms were later recovered in Providence by Rhode Island State Police and the FBI, from people who were legally prohibited from possessing them.
During a recorded interview with ATF agents played for the jury, Kayode was unable or refused to provide ATF agents with an accounting as to where the guns he had purchased could be located. Kayode stated that he brought the guns to Georgia and that they were in different places; that he used them in a music video; and that he was planning to bring the guns back to Rhode Island. In the same interview, after first denying he sold any firearms at all, Kayode told investigators that he did sell firearms to people he met through Armslist, an online firearms marketplace. According to the government’s evidence, although it appeared that Kayode purchased firearms through Armslist, ATF agents found no evidence that Kayode actually sold any firearms on the website.
Two days after being interviewed by ATF agents, Kayode went to the Warwick Police Station and reported that a storage shed in his yard had been broken into, and a safe containing the firearms he purchased in Rhode Island and Georgia, along with a leaf blower and grass trimmer, had been stolen. A Warwick Police Officer who responded with other officers to Kayode’s residence testified at trial that they found no evidence of the shed having been broken into or of a safe having been in the shed.
ATF agents reviewed thousands of Kayode’s text messages, emails, and other communications, in determining that Kayode regularly resold firearms that he purchased from licensed dealers to others for a higher price than he paid.
At today’s sentencing hearing, U.S. District Court Judge William E. Smith sentenced Kayode to twenty-four months of incarceration to be followed by three years of federal supervised release.
This Project Safe Neighborhoods case was prosecuted by Assistant United States Attorneys Ronald R. Gendron and Lee H. Vilker.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Three Charged with Trafficking CocaineRead the Press Release
PROVIDENCE, R.I. – Three individuals made initial appearances in U.S. District Court on Tuesday, charged with allegedly trafficking cocaine shipped to Rhode Island from Puerto Rico through the United States Postal Service, announced United States Attorney Zachary A. Cunha.
May Rosario, 27, Patri Hiciano Felix, 24, and Rafael Fleury Munoz, 22, of Providence, are charged by criminal complaint with conspiracy to distribute and possession with intent to distribute 500 grams of a mixture or substance containing cocaine; possession with intent to distribute 500 grams of a mixture or substance containing cocaine; and unlawful use of a communication facility (including the mail) to facilitate the distribution of a controlled substance.
It is alleged in charging documents that on March 26, 2022, a United States Postal Service carrier was approached by a male seeking to take custody of a Priority Express parcel she was preparing to deliver to a Providence residence. It is alleged that the male, who refused to provide an ID to the carrier, showed the postal carrier a photo of the package, claiming that the package had been sent to him. The carrier refused to provide the package to the man and left the area, taking the package with her. As she drove away, the male began to follow her in his vehicle.
It is further alleged that two days later, authorities became aware that a single individual or device was tracking the delivery of a package addressed to a Johnston residence. As Rhode Island State Police surveilled the Johnston location, they saw a vehicle slowly drive through the area twice. It is alleged that moments after the package was delivered to the front porch of the residence, a person ran out from behind the building to the front porch and then entered the building. About twenty minutes later, the same vehicle that the State Police surveillance team saw driving through the area earlier in the day reappeared. It is alleged that the person previously seen running into the building ran back out with the Priority Mail Parcel and got into the vehicle, which then drove away. A State Police cruiser nearby stopped the vehicle. It is alleged that the package delivered to the Johnston residence was found on the floor of the vehicle, and that Rosario, Hiciano Felix, and Fleury Munoz were inside the car.
A court-authorized search of the package seized in Johnston was found to contain 1.07 kilograms of cocaine; the package addressed to the Providence residence was found to contain 1.15 kilograms of cocaine. It is alleged that the Postal Carrier in Providence identified Rosario as the person who attempted to retrieve a package from her on March 26.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton.
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Settlement Agreement Reached with Rhode Island Department of Children, Youth and Families to Address Discrimination Against Parents with DisabilitiesRead the Press Release
The United States Attorney’s Office for the District of Rhode Island and the Office for Civil Rights at the Department of Health and Human Services (HHS) announced today that the Rhode Island Department of Children, Youth and Families (DCYF) has agreed to resolve alleged violations of the Americans with Disabilities Act and Section 504 of the Rehabilitation Act of 1973. DCYF is a state agency responsible for child welfare services, juvenile corrections, and children’s behavioral health services.
The investigation was opened after the U.S. Attorney’s Office and HHS received multiple complaints from parents with disabilities. Three complaints alleged that DCYF failed to provide sign language interpreter services to parents who are deaf during DCYF child protection investigations, including when DCYF removed their children from their homes. A fourth complaint alleged that DCYF based conclusions about the parental capacity on a parent’s disabilities (epilepsy and intellectual disabilities) and failed to provide reasonable modifications to the parent’s plan. The U.S. Attorney’s Office and HHS investigated and concluded that DCYF may not have taken appropriate steps to ensure for effective communication with parents and caretakers who are deaf or hard of hearing. Additionally, the investigation indicated that DCYF lacked sufficient policies, procedures, and related training to ensure that DCYF fulfills its obligations under federal civil rights laws to ensure that individuals with disabilities have an equal opportunity to access to DCYF’s services because of disability.
Under the terms of the agreement, DCYF will, among other things, create and implement a policy on how it will communicate effectively with individuals who have communication disabilities including individuals who are deaf and hard of hearing. In addition, it will ensure sufficient contracts with qualified interpreting services, provide training to all personnel on federal civil rights laws and accommodations for individuals with disabilities, designate an ADA coordinator, and report quarterly for three years.
“Eliminating disability discrimination is important in any context,” said U.S. Attorney Zachary A. Cunha, “but nowhere more so than when interactions that affect the integrity and unity of families are on the line. We are pleased that, as a result of today’s settlement, DYCF is committing to meet its obligations to remove barriers to full and appropriate service in these critical encounters, regardless of disability.”
“Recipients of federal financial assistance, like state agencies that provide child welfare and other services, have a fundamental responsibility under law to take necessary steps to eliminate unnecessary barriers for those who are deaf or hard of hearing,” said OCR Director Lisa Pino. “This agreement sends an important message to organizations to examine and update their policies, procedures, and training programs to fulfil their obligations to those that they serve."
This matter was handled jointly by Assistant United States Attorney Amy R. Romero and HHS Investigator Timothy Stark.
The U.S. Attorney’s Office for the District of Rhode Island is committed to investigating alleged violations of the Americans with Disabilities Act. The Department of Justice has a number of publications available to assist entities in complying with the ADA. For more information on the ADA and to access these publications, visit www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TTY).
Any member of the public who wishes to file a complaint alleging a public entity or public accommodation in Rhode Island is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at https://www.justice.gov/usao-ri/civil-rights-enforcement or 401-709-5000.
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East Providence Man Alleged to Have Fraudulently Applied for Eight COVID-Relief Business LoansRead the Press Release
PROVIDENCE, R.I. – An East Providence man made an initial appearance in federal court in Providence today on charges that he filed eight fraudulent loan applications seeking more than $337,000 in Small Business Association (SBA) guaranteed COVID-19 relief business loans, announced United States Attorney Zachary A. Cunha.
Kevin Mancieri, 48, is charged, by way of criminal complaint, with conspiracy to commit bank fraud.
Charging documents allege that Mancieri, acting alone or with the assistance of others, applied for eight loans: two in his own name and six in the names of others. Applications were allegedly submitted in the names of four different sole proprietorships purporting to perform flooring and carpeting services. The applications are alleged to have falsely represented that multiple employees worked for these different companies, when, in fact, there were few if any, such employees; the applications were also allegedly supported with digitally altered personal bank statements, business bank account records, and tax records.
It is alleged that Mancieri fraudulently sought at least $337,096 in forgivable SBA guaranteed loans, and that his applications caused at least $131,414 in funds to be disbursed. It is alleged that he personally received approximately $29,038 in loan proceeds and conspired with others to receive up to half of the proceeds disbursed to other entities. It is further alleged that Mancieri received at least $49,400 in kickbacks for applying for fraudulent loans for his associates.
Mancieri was ordered detained following his 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 U.S. Attorney Lee H. Vilker.
The matter was investigated by the FBI and Internal Revenue Criminal Investigation. Mancieri was arrested at his home this morning by federal agents, with the assistance of the Rhode Island State Police.
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Providence Woman Charged with Drug TraffickingRead the Press Release
A Providence woman was arrested and detained in federal custody after allegedly emerging onto her front porch to retrieve a UPS package shipped from California with more than two kilograms of fentanyl inside; she was also allegedly found to have more than a kilo of fentanyl and other indicia of drug trafficking stored in her bedroom closet.
Rosangeles Bueno, 40, is charged by way of a federal criminal complaint with conspiracy to distribute and possession with intent to distribute 400 grams or more of fentanyl; possession with intent to distribute 400 grams or more of fentanyl; and unlawful use of a communication facility (including the mails) to facilitate the distribution of a controlled substance.
It is alleged in charging documents that, on March 16, 2022, a Homeland Security Investigations (HSI) agent was made aware by UPS security of a suspicious package addressed to a Providence residence with an addressee name that appeared to be fictious. UPS reported that, since January, six packages with similar characteristics had been shipped to the same address. All six packages were addressed to individuals not associated with the residence.
According to charging documents, the package was opened by UPS security and found to contain a brick-like object stashed inside a speaker. A Warwick Police Department K9 examined the package and alerted to the presence of narcotics. The package was removed to HSI offices and was found to contain 2.33 kilograms of fentanyl.
On March 21, 2022, after agents removed the fentanyl from the package and replaced it with a substance similar in appearance to fentanyl, a HSI agent, posing as a UPS employee, delivered the package to the front porch of Bueno’s residence. A surveillance team allegedly observed Bueno exit the residence, check the surrounding area in an apparent effort to determine if law enforcement was present, then retrieve and carry the package to the rear of the building.
HSI task force officers executed a court-authorized search of the Bueno’s residence and located the package inside an abandoned vehicle at the rear of the building. Inside the residence, agents encountered Bueno, three juvenile children, a Certified Nursing Assistant, and another adult. From within Bueno’s bedroom, agents allegedly recovered approximately 1,180.61 grams of suspected fentanyl; 61.23 grams of cocaine; 11.15 grams of butyryl fentanyl; cutting agents; two hydraulic kilo presses; and numerous items used in the preparation and distribution of drugs.
Bueno made an initial appearance on Tuesday before U.S. District Court Magistrate Judge Patricia A. Sullivan and was ordered held in federal custody until a preliminary hearing scheduled to be held on Friday.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton.
The matter was investigated by Homeland Security Investigations, with the assistance of the DEA, Warwick Police Department, Newport Police Department, Central Falls Police Department, and Providence Police Department.
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Providence Man Pleads Guilty in Fraudulent Checks, Bank Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – A Providence man who participated in a scheme to use stolen banking information to create fraudulent business checks and obtain hundreds of thousands of dollars in bank proceeds today pleaded guilty in federal court to conspiracy and bank fraud charges, announced United States Attorney Zachary A. Cunha.
Terrence Richardson, 30, pleaded guilty to conspiracy to commit bank fraud and twelve counts of bank fraud.
Appearing in U.S. District Court in Providence, Richardson admitted that, beginning in as early as April 2020, he conspired with others to create and deposit counterfeit checks drawn on the accounts of actual businesses. The counterfeit checks were typically deposited into the accounts of individuals, many of whom were solicited through Facebook, in exchange for a cash payment. Soon after the counterfeit checks were deposited the funds were rapidly withdrawn.
According to information presented to the court, numerous fraudulent checks created by members of the conspiracy were deposited and the funds were quickly withdrawn before the checks were deemed counterfeit. Some of the checks deposited were deemed fraudulent before any money was withdrawn. According to charging documents, Richardson executed schemes to deposit and withdraw funds represented by numerous counterfeit checks for between $2,824 and $60,322.
Richardson is scheduled to be sentenced by U.S. District Court Chief Judge John J. McConnell, Jr., on June 21, 2022.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
The matter was investigated by the United States Postal Inspection Service, with the assistance of the FBI, United States Secret Service, Rhode Island State Police, and the Providence and Bethel CT, Police Departments.
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Providence Man Sentenced, Faces Deportation for Misuse of a Passport, False Citizenship and False Social Security Number Claims, Health Care FraudRead the Press Release
PROVIDENCE, R.I. – A Dominican national who resided in Providence is facing deportation after being convicted and sentenced in federal court for falsely representing his citizenship and Social Security number, misusing a passport, and for health care fraud, announced United States Attorney Zachary A. Cunha.
Diomedes Ramirez Rodriguez, 47, who has been detained in federal custody since his arrest on March 9, 2021, was sentenced Thursday by U.S. District Court Judge Mary S. McElroy to time served – one year and eight days. He is further detained by Immigration and Customs Enforcement awaiting deportation proceedings.
Rodriguez pled guilty on December 1, 2021, to false representation of a Social Security number, health care fraud, theft of public money, false representation of citizenship, and misuse of a passport.
According to charging documents, in 2008 and 2010, Rodriquez applied for and received a passport using the personal identifying information of a person living in Puerto Rico. Subsequently, Rodriguez, using the same personal information and that person’s Social Security number, applied for and received a Rhode Island driver’s license and identification card; Supplemental Nutrition Assistance Program benefits totaling $7,342.64; and RI Medicaid Program RIte Care benefits totaling $39,023.61.
The case was prosecuted by Assistant United States Attorney Paul F. Daly, Jr.
The matter was investigated by Homeland Security Investigations, the U.S. Department of State Diplomatic Security Service, U.S. Department of Health and Human Services, U.S. Social Security Administration - Office of the Inspector General/Office of Investigations, and the U. S. Department of Agriculture, Office of Inspector General.
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Federal Defendant Admits to Threatening U.S. Probation OfficerRead the Press Release
PROVIDENCE, R.I. – A Woonsocket man convicted in September 2011on drug trafficking and firearm charges admitted in U.S. District Court on Wednesday that, while serving a term of supervised release related to that conviction, he threatened a United States Probation Officer, announced United States Attorney Zachary A. Cunha.
Following his conviction in 2011, Jason Collymore, 41, was sentenced to 144 months of incarceration to be followed by five years of federal supervised release. On Wednesday, Collymore pleaded guilty to an information charging him with threatening of a federal officer with bodily harm with intent to impede, intimidate, or interfere with the federal officer while engaged in the performance of his official duties.
According to charging documents, in June 2021, a U.S. Probation Officer twice contacted Collymore to discuss his failure to attend counselling sessions as required by the court. After the second call, Collymore made several vulgar-filled and combative telephone calls to the Probation Officer. Collymore continued failing to attend the court-ordered counselling sessions.
During a subsequent telephone conversation between Collymore and his Probation Officer, and witnessed and recorded by the Probation Officer’s supervisor, Collymore threatened to appear at the court in person with the “whole gang” and physically harm the Probation Officer.
Collymore is scheduled to be sentenced on June 22, 2022. Threatening of a federal officer with bodily harm with intent to impede, intimidate, or interfere with the federal officer while engaged in the performance of his official duties is punishable by statutory penalties of up to six years in federal prison to be followed by a term of supervised release of three years. 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 was prosecuted by Assistant U.S. Attorney Zechariah Chafee, Sandra R. Hebert, and Lauren S. Zurier.
The matter was investigated by the United States Marshals Service.
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Two Sentenced in Schemes to Defraud Home Improvement StoresRead the Press Release
PROVIDENCE, R.I. – Two Providence men who admitted to participating in a scheme to defraud credit card companies and home improvement stores out of more $160,000 were sentenced to federal prison today, announced United Sates Attorney Zachary A. Cunha.
Jose Brens, 40, was sentenced to fifteen months in prison and ordered to pay restitution totaling $140,578. He pleaded guilty on December 13, 2021, to conspiracy to commit access device fraud and six counts of access device fraud. Jose R. Delarosa, 45, was sentenced to twelve months and one day of incarceration and ordered to pay restitution in the amount of $20,141. He pleaded guilty on December 16, 2021, to conspiracy to commit access device fraud and four counts of access device fraud.
At the time of their guilty pleas, Brens and Delarosa admitted that they and others unlawfully obtained credit card information of other individuals, and used that information to purchase construction tools and building supplies from at least six Home Depot and Lowes stores in Rhode Island and Massachusetts.
According to charging documents, the scheme employed by Brens, Delarosa, and others came to light when, in September 2018, a Smithfield resident contacted the Smithfield Police Department to report that his credit card information had been used without his permission to purchase $2,100 worth of construction items and tools at a nearby Home Depot. A joint investigation with the United States Secret Service determined that Brens, Delarosa, and others were working together to carry out this and similar schemes in multiple stores, repeatedly making purchases of between $1,000 and $4,000.
The cases were prosecuted by Assistant U.S. Attorneys William J. Ferland and Terrence P. Donnelly.
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Justice Department Honors Fifth Annual Attorney General’s Award for Distinguished Service in Community PolicingRead the Press Release
WASHINGTON – The Justice Department today announced the recipients of the Fifth Annual Attorney General’s Award for Distinguished Service in Community Policing. This year’s awards recognize the exceptional work of 18 law enforcement officers and deputies from 12 jurisdictions across the country.
Attorney General Garland announced the award recipients in Atlanta, Georgia. Later, he attended a ceremony for three award recipients from the DeKalb County Police Department.
“The work of law enforcement has always been difficult—but perhaps no more so than in the recent past, as officers have faced a host of significant challenges. The officers and deputies receiving this year’s awards demonstrate how so many go above and beyond, even in the midst of trying circumstances,” he said. “Every day, thousands of people who work in law enforcement forge and maintain strong community ties that are essential for ensuring public safety. The recipients of this award represent quintessential examples of such critical efforts. It is an honor to recognize them.”
United States Attorney Zachary A. Cunha added, “Doing justice is about a lot more than arrests and convictions - it’s about working hand-in-hand with every one of our communities to understand their needs and to serve as partners in keeping our families and neighbors safe. Today’s awards represent well-earned recognition of exactly that kind of partnership in policing. I am proud to congratulate Central Falls Police Department Investigative Bureau Major Christopher Reed and Central Falls Police Department Detective Commander Sgt. Jeffrey Araujo on their superb work as reflected by this award.
The Attorney General’s Award recognizes individual state, local, Tribal, and territorial police officers, deputies, and troopers for exceptional efforts in community policing. The awarded officers and deputies have demonstrated active engagement with the community in one of three areas: innovations in community policing, criminal investigations, or field operations. This year, the Department received 185 nominations from 145 agencies, recognizing a total of 347 individual officers, deputies, and troopers. There were 39 states represented in the nomination pool, covering state, local, campus, sheriff, and other agency types.
The work being honored this year reflects numerous examples of law enforcement officers working closely with the community to build trust, solve problems, reduce crime, and improve public safety.
The Department of Justice works closely with national law enforcement stakeholder groups during the award review period, taking advantage of their expertise and experience to determine the recipients in a competitive nomination process. The Department also works closely with its components, utilizing the breadth of knowledge within the Department to ensure a successful program that honors the exceptional service of our nation’s law enforcement officers and deputies.
Complete information on the Fifth Annual Attorney General’s Award for Distinguished Service in Community Policing can be found at https://www.justice.gov/ag/policing-award.
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Providence Man Admits Accessing Child Pornography via Anonymous Internet NetworkRead the Press Release
PROVIDENCE, R.I. – A Providence man today admitted in federal court in Rhode Island that he accessed child pornography via an Internet network designed to facilitate anonymous communications and hide the identity of individuals seeking to view, upload, or download child pornography, announced United States Attorney Zachary A. Cunha.
John A. Amaral, 29, pled guilty to possessing and accessing child pornography.
According to charging documents and information presented to the court, Amaral was among individuals whose IP address was identified by the FBI as being used to access the online network. Administrators of the network had established protocols that made it difficult for law enforcement to identify individual IP users. They did so by utilizing software that caused users to move through several online networks around the world before finally accessing the website’s content, thus making it difficult to identify the IP address.
With the authorization of a federal court judge in the Eastern District of Virginia, the FBI employed a Network Investigative Technique that allowed them to log in to the network and, through investigative techniques, identify IP users who were accessing the network. The FBI determined that an IP address used by Amaral at his residence accessed the network on several occasions to view sexually explicit videos and images depicting prepubescent children and prepubescent children being sexually abused.
As a result of the FBI investigation, the Department of Justice seized the website.
Amaral is scheduled to be sentenced on June 16, 2022.
This Project Safe Childhood case is being prosecuted by Assistant United States Attorney Terrence P. Donnelly.
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Newport Woman Sentenced for Possessing Child PornographyRead the Press Release
PROVIDENCE – A Newport woman who solicited and received a video depicting the sexual exploitation of a toddler and an image depicting the sexual exploitation of prepubescent minors was sentenced today to five years in federal prison, announced United States Attorney Zachary A. Cunha.
Karissa A. Cave, 25, pleaded guilty on February 26, 2020, to receipt of child pornography.
At the time of her guilty plea, Kave admitted to the court that, in December 2016, while communicating on Facebook messenger with a person known to her, she requested that the person send her a video that she knew the person possessed. The video depicted an adult engaged in sexually explicit conduct with a female toddler. After receiving the video, she asked, “Is there anymore?” In return, the person sent her an image of prepubescent girls and boys engaged in sexually explicit conduct. The government’s evidence showed that after receiving the video, Kave and the person who sent it to her engaged in graphic sexual chats about the video and the depicted toddler.
At sentencing today, U.S. District Court Chief Judge John J. McConnell, Jr., sentenced Cave to sixty months in federal prison to be followed by eight years of federal supervised release.
This Project Safe Childhood case was 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 and Homeland Security Investigations, with the assistance of the Woonsocket Police Department.
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Rhode Island Woman Charged with Falsifying Military Service; Fraudulently Collecting Hundreds of Thousands of Dollars in Charitable Contributions Earmarked for Wounded and Other VeteransRead the Press Release
PROVIDENCE, R.I. – A Warwick woman who is alleged to have (1) fraudulently claimed to be a wounded United States Marine Corps (USMC) veteran and recipient of a Purple Heart and Bronze Star, and (2) schemed to collect hundreds of thousands of dollars in veteran benefits and charitable contributions, was arrested today by federal agents and made her initial appearance in federal court in Providence, announced United States Attorney Zachary A. Cunha.
Sarah Jane Cavanaugh, 31, is charged by way of a federal criminal complaint with using forged or counterfeited military discharge certificates, wire fraud, fraudulently holding herself out to be a medal recipient with intent to obtain money, property, or other tangible benefit, and aggravated identity theft.
Charging documents allege the following:
- Cavanaugh used the personal identifying information of an actual Marine, and falsely claimed that she served in the USMC from 2009-2016; was honorably discharged; achieved the rank of Corporal; and was wounded in action in Iraq/Afghanistan.
- Cavanaugh used an official Veterans Administration (VA) email account, which was issued to her as a VA employee, to purchase and later display on a Marine uniform a Purple Heart and Bronze Star. She had not been awarded either award. In fact, a search of the Defense Personnel Records Information Retrieval System, a database containing military-service records, provided no records or information pertaining to Cavanaugh.
It is further alleged that Cavanaugh:
- Created and submitted falsified military discharge documents, medical diagnosis, and medical bills to “HunterSeven,” an organization that provides monetary aid to veterans in need. Cavanaugh did so to request financial assistance and falsely claim that she was being treated for cancer from exposure to burn pits in Iraq/Afghanistan and inhaling particulate matter in the aftermath of an Improvised Explosive Device.
- Posing as a combat veteran, Cavanaugh contacted “Code of Support,” and collected $18,472 in financial assistance for mortgage payments, repairs to her home furnace, a gym membership, and for other unspecified bills,
- Posing as a combat veteran diagnosed with cancer related to her military service, Cavanaugh collected approximately $4,700 from an internet-based fundraising website,
- Claiming to be a Purple Heart and Bronze Star recipient, Cavanaugh collected approximately $16,000 from a charity that provides therapy for veterans through art programs, and
- Posing as a wounded combat veteran, Cavanaugh collected $207,000 from the Wounded Warrior organization to pay for groceries and physical therapy sessions.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Cavanaugh was arrested by federal agents on Monday and appeared before U.S. District Court Magistrate Judge Lincoln D. Almond. She was released on $50,000 unsecured bond.
The matter is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron and investigated by the U.S. Department of Veterans Affairs Office of Inspector General, U.S. Department of Veterans Affairs Police Service, and the FBI, with the assistance of the U.S. Defense Criminal Investigative Service, U.S. Naval Criminal Investigative Service, U.S. Postal Inspection Service, and Internal Revenue Service Criminal Investigations.
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Indian National Sentenced in Tech Support Scheme that Defrauded Elderly AmericansRead the Press Release
PROVIDENCE, R.I. – An Indian national who sought asylum in the United States and then played a critical role in ensuring that an international tech-support scheme succeeded in defrauding Americans, many of them elderly, of their life savings, has been sentenced to six years in federal prison, announced United States Attorney Zachary A. Cunha.
While living in California, Angad Singh Chandhok, 34, operated a long-running and complex money laundering network, in which he created and used shell companies to move millions of dollars stolen from Americans through an online tech support scheme, and later an online travel fee scheme. Chandhok, who had at least five others working at his direction, was in direct contact with high-ranking international members of the scheme.
United States Attorney Zachary A. Cunha noted, “It is the sad reality that, each and every day, fraudsters all over the world target vulnerable and elderly Americans in efforts to trick them out of their savings and livelihoods; sophisticated criminals like Mr. Chandhok are an essential part of these fraud schemes. Fortunately, thanks to a superb investigation undertaken by Newport Police in seamless collaboration with Homeland Security Investigations, this defendant has been brought to justice and held accountable for the financial harm he has visited on his victims.”
Newport Police Chief Gary T. Silva commented, “This case is a perfect example of how local detectives Lt. Michael Naylor and Sgt. Scott Moody, working alongside the United States Attorney’s Office and Homeland Security Investigations, were able to follow the money taken from fraud victims in Rhode Island and Massachusetts, and laundered to California and countries abroad, and eventually arresting Chandhok and holding him accountable.”
“Chandhok operated a sophisticated money laundering network to launder the fraudulent proceeds of scams targeted at elderly individuals—defrauding them of over a million dollars. This laundering network allowed the fraudsters to move the proceeds of their scams out of the country, but our investigation caught up with them.” said Matthew Millhollin, Special Agent in Charge for the Homeland Security Investigations’ Boston Field Office. “These types of scams are all too common and we encourage any other victims to come forward and reach out to law enforcement for assistance.”
According to court documents, Indian students who were present in the United States on visas, including four in Newport, RI, received funds from victims of the tech support scheme. They then transferred the funds to accounts controlled by Chandhok for further laundering. Chandhok’s money laundering business provided an essential link between the participants of the fraud scheme in the United States and others who were operating internationally.
According to information presented to the court, Chandhok’s criminal activity spanned two years, during which time he “cleaned” at least than $1.5 million dollars. The government’s evidence showed that in just one month he laundered nearly $930,000.
Chandhok pleaded guilty on August 19, 2019, to conspiracy to launder criminal proceeds. He was sentenced on Thursday by U.S. District Court Chief Judge John J. McConnell, Jr., to 72 months of incarceration to be followed by 3 years of federal supervised release.
Chandhok is wanted in his native country of India for fraud, and he was an international fugitive from justice at the time he engaged in his sophisticated money laundering activities here in the United States.
The case was prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
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Woman Previously Convicted in Fraud Scheme Admits to Defrauding the Federal Housing Administration, Business and Unemployment COVID Relief ProgramsRead the Press Release
PROVIDENCE – A North Providence woman today admitted in federal court that she provided false information to a mortgage lender when applying for a Federal Housing Administration (FHA)-backed mortgage, and that she fraudulently applied for a COVID Economic Injury Disaster Loan (EIDL) and unemployment insurance benefits under both the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security (CARES) Act, announced United States Attorney Zachary A. Cunha.
Juliana Martins, 53, who was on federal supervised release at the time of the charged fraudulent activities, pleaded guilty to false statement on a loan application and theft of government property. She is scheduled to be sentenced on August 4, 2022.
At the time of her guilty plea, Martins admitted to the court that while on federal supervised release for her role in a stolen identity refund scheme, as well as while on state probation for an unrelated 2014 conviction for forgery and counterfeiting, she applied for an FHA-guaranteed loan. As part of the application process, she provided false explanations as to her gaps in employment while serving her federal sentence, claiming she was unemployed due to a “family emergency.” 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 while she was in fact employed as an office manager in April 2020. In total, Martins received over $40,000 in COVID relief benefits to which she was not entitled.
The case is being 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.
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Providence Man Detained on Fraud Charges, Threatening a Corrections OfficerRead the Press Release
PROVIDENCE, R.I. – A Providence man has been ordered detained in federal custody on charges that he filed fraudulent applications for pandemic unemployment assistance payments in at least eight states and that he threatened to assault a corrections officer, announced United States Attorney Zachary A. Cunha and Rhode Island Attorney General Peter F. Neronha.
Mackenzy Scott, 25, is charged by way of a federal superseding indictment with conspiracy to commit wire fraud, seven counts of wire fraud, four counts of aggravated identity theft, theft of government money, and threat to assault a federal corrections officer. He was arraigned in U.S. District Court on Tuesday.
It is alleged in charging documents that Scott filed fraudulent applications seeking unemployment insurance benefits provided for by the Coronavirus Aid, Relief, and Economic Security Act and the Pandemic Unemployment Assistance (PUA) Program from the states of North Dakota, Massachusetts, Arizona, Nevada, California, Kentucky, Texas, and Pennsylvania. It is alleged that Scott filed at least four applications using the personal identifying information of others in three different states, and that he filed fraudulent applications in his own name in at least seven states.
Scott’s alleged fraudulent activity was discovered by a Rhode Island U.S. Probation Officer during a routine inspection of Scott’s cellphone. At the time, Scott was serving a term of federal supervised release, having completed a term of incarceration of 60 months on a conviction for conspiracy to commit sex trafficking of a child. Scott’s cellphone was turned over to the FBI and Rhode Island State Police to further investigate Scott’s alleged fraudulent activity.
It is alleged that Scott fraudulently collected at least $102,000 in PUA benefits.
Scott was charged by federal criminal complaint for the alleged fraudulent unemployment insurance activity on June 1, 2021, and, after making his initial appearance on the complaint, he was ordered detained on June 2, 2021. It is further alleged that while detained on the criminal complaint, Scott threatened a corrections officer at the Donald W. Wyatt Correctional Facility.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
This case, as well as other instances of criminal activity related to fraudulent applications for pandemic-related unemployment insurance benefits are being investigated jointly by the FBI, the Rhode Island State Police, and the U.S. Department of Labor – Office of Inspector General. Cases are jointly reviewed, charged, and prosecuted by a team of prosecutors that include Assistant U.S. Attorneys Denise M. Barton, Stacey P. Veroni, and G. Michael Seaman, and Rhode Island Assistant Attorney General John M. Moreira, chief of the Rhode Island Attorney General’s Public Integrity Unit.
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.
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