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1 April 2024
Wichita man sentenced for trafficking fentanylRead the Press Release
WICHITA, KAN. – A Kansas man was sentenced to 180 months in prison for trafficking fentanyl.
Devonte Smith, 28, of Wichita pleaded guilty to possession with intent to distribute fentanyl.
According to court documents, in April 2023, Smith and a co-defendant traveled by plane from Wichita to Arizona, to purchase fentanyl-laced pills, which they arranged to bring back to Kansas. In his plea agreement, Smith admitted he flew back to Wichita and directed a co-defendant to return to Kansas with the pills, which were seized by law enforcement in a car driven by a second co-defendant.
Law enforcement’s car stop occurred in Pratt, Kansas, resulting in the discovery of more than 100,000 pills which tests confirmed were fentanyl-laced.
Criminal charges against the co-defendants are pending within the court system.
The Federal Bureau of Investigation (FBI), Wichita Police Department, Sedgwick County Sheriff’s Office, IRS-Criminal Investigation, U.S. Postal Inspection Service, and U.S. Department of Homeland Security Investigations (HSI) investigated the case.
Assistant U.S. Attorneys Deb Barnett and Ola Odeyemi prosecuted the case.
OCDETF
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
###Vernon County Man Sentenced to 11 ½ Years for Trafficking Methamphetamine and FentanylRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Stanley J. Holte, 34, Coon Valley, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 11 ½ years in federal prison for conspiring to distribute and possess with intent to distribute methamphetamine and fentanyl. The prison term will be followed by 5 years of supervised release. Holte pled guilty to this charge on January 16, 2024.
On June 12, 2023, law enforcement officers executed a search warrant at the residence of Holte and his co-defendant Julia Lloyd in Coon Valley. Holte was pulled over after being observed leaving the residence. Officers searched Holte and his car and found a large quantity of cash, methamphetamine, and fentanyl. Officers arrested Lloyd at the residence, where they found additional quantities of methamphetamine and fentanyl. In total, officers seized just under five pounds of methamphetamine, over an ounce of fentanyl, and almost $50,000 in cash. Lloyd and Holte were later interviewed and admitted to trafficking significant quantities of methamphetamine and fentanyl.
At sentencing, Judge Conley emphasized that a lengthy prison sentence was necessary for Holte because of the significant quantities of dangerous drugs that he was distributing in the community and his long history of selling drugs. At the time of this incident, Holte was on extended supervision with the State of Wisconsin for a prior methamphetamine trafficking offense. His probation in that case was revoked because of his new criminal conduct, and he was sentenced to approximately 16 months in state prison. Judge Conley ordered that the federal sentence run concurrently with the remainder of Holte’s state revocation sentence.
On March 1, 2024, Judge Conley sentenced Julia Lloyd to 78 months in federal prison for conspiring with Holte to traffic methamphetamine and fentanyl.
The charges against Lloyd and Holte were the result of an investigation conducted by the Campbell, La Crosse, and Onalaska Police Departments, La Crosse County and Vernon County Sheriff’s Offices, and the United States Drug Enforcement Administration, with the assistance of the Vernon County District Attorney’s Office. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
U.S. Attorney’s Office and National Children’s Advocacy Center Partner to Educate Parents on SextortionRead the Press Release
HUNTSVILLE, Ala. – During Child Abuse Prevention Month, the U.S. Attorney’s Office (USAO) and the National Children’s Advocacy Center (NCAC) have partnered to release a digital series to educate parents and caretakers about sextortion and how they can help prevent kids and teens from being victims. But the commitment does not end there. The USAO continues to prosecute child predators and prevent the proliferation of these abhorrent crimes, but the public’s support is needed help protect our children from exploitation.
“Engaged parents and teachers are our first-line defense against child predators,” said U.S. Attorney Prim Escalona. “I am happy to come alongside the NCAC to educate parents on such an important topic. As your U.S. Attorney and a mother of four, I encourage parents to put in as many safeguards as they can when it comes to their children using devices. The technological advancements of camera phones - the ease and norm these days of snapping, sharing, and posting images on the various of social media platforms and apps that our youth have access to – has created an opportunity for those with nefarious intentions to take full advantage. Together, we can create a shield of protection around our children and ensure their well-being.”
“Young people are vulnerable to sextortion for many reasons that we will discuss throughout this video series,” said NCAC CEO Chris Newlin. “Emerging research tells us 60% of the victims know the perpetrator, and these victims are more often male than female. Through our collaboration with the U.S. Attorney’s Office, we hope to empower parents with vital tools to guide children through the natural curiosity surrounding sexuality while safeguarding them from people who use these curiosities to cause harm.”
This series offers three-to-five-minute videos about current online safety topics and provides essential information about the true dangers of online activities. Presentations from individuals familiar with sextortion and the impact on victims share diverse strategies and resources that parents and caregivers can use to protect their children. The presenters will include leaders from various federal, state, and local agencies. Parents will learn how to start the dialog about sextortion with their child and how to best respond to a child who comes forward to report sextortion. Parents will be informed on who to contact for help if their child has potentially been affected by sextortion or online child sexual abuse. Importantly, the series will explore potential mental health repercussions and explain what to do if a child needs that type of help after being targeted.
A new video will be released every Monday in April.
Monday, April 1 – U.S. Attorney Prim Escalona, Sextortion and the Internet
Monday, April 8 – USAA Deputy Director Trisha Mellberg Cater, Sextortion and Cyberbullying
Monday, April 15 – Alabama Department of Child Abuse and Neglect Prevention Director Sallye Longshore, Talking with Your Child About Sextortion
Monday, April 21 – ANCAC Executive Director Lynn Bius, Sextortion and the Suicide Risk
Monday, April 28 – NCAC CEO Chris Newlin, Sextortion and Youth Vulnerabilities
The videos can be accessed from the following locations:
nationalcac.org/sextortion-prevention/
https://www.youtube.com/@nationalcac
Anyone can become a victim. The Northern District of Alabama and the National Children’s Advocacy Center strive to safeguard all children. To help protect your children from online predators, we encourage parents to:
- Tell your children to avoid communicating with strangers online.
- Explain to your children that sometimes predators will offer them gifts in exchange for them taking and sending sexually explicit images or videos. Sometimes, the predators will make threats. Parents should explain to their children that these are strategies abusers use to get what they want, and if this happens, the child should not feel guilty. Instead, they should tell a parent or other trusted adult.
- To the extent possible, educate yourself about the internet tools your children use. For example, set up your child’s specific profile on cellphones, iPads, and computer devices to limit the websites and content your child can access, and have a weekly “usage” sheet sent to you for that profile. Make sure your children use privacy settings to restrict access to their online profiles.
- Check your children’s social media and gaming profiles and posts. Talk to your children about what is appropriate to say or share.
- Remind your child the world can see what they publicly post on the internet, people can share those posts, and that images can never be fully erased.
Federal offenses charged as a result of sextortion and the sexual exploitation of children are serious federal crimes, carrying severe penalties for offenders and potentially long-term impacts for victims. Some violations carry a maximum sentence of life in prison. The U.S. Attorney’s Office has prosecuted and continues to prosecute child exploitation cases in the Northern District of Alabama.
In May 2006, the Department of Justice launched a nationwide initiative called Project Safe Childhood to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
We encourage anyone who suspects or has information regarding trafficking of minors, sextortion, child pornography or any other means of child exploitation to immediately contact law enforcement. You can file a report on the National Center for Missing & Exploited Children (NCMEC)’s website at www.cybertipline.com, call 1-800-843-5678.
U.S. Attorney’s Office Launches Second Operation Aimed at Prosecuting Child PredatorsRead the Press Release
TULSA, Okla. – Today, U.S. Attorney Clint Johnson announced the launch of Operation Clean Sweep II. This operation is aimed at holding accountable child predators throughout the Northern District of Oklahoma.
Operation Clean Sweep II is partnered with the Tornado Alley Child Exploitation and Trafficking Task Force (TACETT) created by Homeland Security Investigations (HSI). More than 40 federal, state, and tribal law enforcement committed resources to help prevent, identify, investigate and ultimately prosecute child exploitation.
“Statistics show that crimes against children are growing at a large rate across the country,” said U.S. Attorney Clint Johnson. “The Northern District of Oklahoma will remain steadfast in our battle against child predators and those who exploit children.”
“Operations of this magnitude are necessary to identify and prosecute those who exploit children in our community,” said Robert Melton, Assistant Special Agent in Charge, HSI Dallas – Oklahoma and Texas Panhandle Division. “HSI is committed to working with federal, state, and tribal partners to ensure those who victimize children are held accountable for their actions.”
The operation’s first 11 defendants were arrested and charged with:
- Timothy Don Major, Jr., 34 of Tulsa is charged with Coercion and Enticement of a Minor; Receipt of Child Pornography; Possession of Child Pornography in Indian Country.
- Nicholas Kyle Dietzel, 43, of Tulsa is charged with Attempted Aggravated Sexual Abuse of a Minor Under 12 Years of Age; Attempted Interstate Travel with Intent to Engage in Illicit Sexual Conduct with a Person Under 18 Years of Age; Attempted Coercion and Enticement of a Minor; Attempted Distribution of Child Pornography to a Minor; Receipt and Distribution of Child Pornography; Possession of Child Pornography in Indian Country.
- Sequoyah Hinzo, 29, of Jay, a United Keetoowah Band of Cherokee Indians Tribe member, is charged with Aggravated Sexual Abuse of a Minor Under 12 Years of Age in Indian Country (Counts 1 and 2); Aggravated Sexual Abuse of a Minor by Force and Threat in Indian Country (Count 3); Coercion and Enticement of a Minor (Count 4); Receipt and Distribution of Child Possession of Child Pornography in Indian Country (Count 5) Possession of Child Pornography in Indian Country (Count 6).
- Lorenzo Ricky Jones, 34, of Tulsa, is charged with Failure to Register as a Sex Offender
- Kevin Lee Forney, 63, of Skiatook, is charged with Receipt and Distribution of Child Pornography; Possession of Child Pornography
- Justin Lee Wheeler, 41, of Terlton, and member of the Choctaw Nation of Oklahoma, Attempted Coercion and Enticement of a Minor
- Tallo Dominic Williams, 48, of Bristow, is charged with Failure to Register as a Sex Offender
- Bryon Alan Lee, 31, of Sapulpa and a member of the Cherokee Nation, is charged with Production of Child Pornography; Receipt and Distribution of Child Pornography; Possession of Child Pornography in Indian Country; Commission of Felony Sex Offense Involving a Minor by a Registered Sex Offender.
- Brandon Earl Presley, 29, of Bixby, is charged with Sexual Abuse of a Minor in Indian Country; Production of Child Pornography; Possession of and Access with Intent to View Child Pornography
- Jason Wayne Case, 43, of Miami, is charged with Receipt and Distribution of Child Pornography; Possession of and Access with Intent to View Child Pornography
- Kyle Jackson Fugate, 26 of Bixby, is charged with Attempted Coercion or Enticement of a Minor
The National Center for Missing & Exploited Children’s (NCMEC) CyberTipline is the nation’s centralized reporting system for the online exploitation of children. Since its inception in 1998, the NCMEC’s CyberTipline has received more than 144 million reports.
Statistics from 2023 provided by NCMEC show the following:
- The CyberTipline received more than 36.2 million reports which is a dramatic increase from 2019 when they received 16 million reports.
- The largest category reported in 2023 is related to suspected child sexual abuse material.
- An increase of 300% in online enticement reports between 2021 – 2023. This increase was due to the trend of financial sextortion, where offenders aggressively blackmail children for financial gain.
- More than 4,700 reports of child sexual abuse material were generated using GAI (AI) technology
To combat the dramatic increase of exploitation of children, in December 2022, NCMEC launched a groundbreaking platform, Take It Down. This free and anonymous service allows users to submit a report online. This report can help remove online nude, partially nude, or sexually explicit photos and videos that depict a child under 18 years old. For example, if a child sent a picture to someone and now that person is threatening to post it online. Whether the photo is posted or not, Take It Down helps remove it from places it might appear.
Operation Clean Sweep II is led by Deputy Criminal Chief Christopher J. Nassar and Assistant U.S. Attorney Ashley Robert. The TACETT incorporates personnel from HSI Tulsa, Oklahoma State Bureau of Investigations, Oklahoma Bureau of Narcotics, Tulsa County Sheriff’s Office, Tulsa Police Department, Oklahoma Attorney General’s Office, Rogers County Sheriff’s Office, LeFlore County District Attorney’s Office, Muskogee Police Department, Tulsa County District Attorney’s Office, Pryor Creek Police Department, Skiatook Police Department, Broken Arrow Police Department, Wagoner County Sheriff’s Office, Collinsville Police Department, Owasso Police Department, Mayes County Sheriff’s Office, Cherokee Nation Marshal Service, Checotah Police Department, Sapulpa Police Department, Bristow Police Department, Glenpool Police Department, Tahlequah Police Department, Coweta Police Department, Muscogee Creek Nation Lighthorse Police Department, Osage County Sheriff’s Office, McCurtain County Sheriff’s Office, and the U.S. Attorney’s Office.
Each case listed above is part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. The U.S. Attorneys' Offices and Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
If you or someone you know is a victim of child exploitation confidential help is available. Resources and contact information for child exploitation are available through the National Center for Missing and Exploited Children. The CyberTipline can be found here.
An indictment or criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Warner Bros. Discovery Directors Resign after Justice Department Expresses Antitrust ConcernsRead the Press Release
The Justice Department announced today that two directors of Warner Bros. Discovery Inc. (WBD) have resigned from the WBD board after the Antitrust Division expressed concerns that their positions on both the WBD and Charter Communications Inc. boards violated Section 8 of the Clayton Act (Section 8). Section 8, which Congress made a per se violation of the antitrust laws, prohibits the same person or company from serving simultaneously on the boards of competitors, subject to limited exceptions. The division’s enforcement efforts to date have unwound or prevented interlocks involving at least two dozen companies.
Charter, through its Spectrum cable service, and WBD, including through its Max streaming subscription services, both provide video distribution services to customers. Representatives of the privately-held media company Advance Publications Inc. (Advance) had designees on both Charter’s and WBD’s boards of directors.
“Today’s announcement is a win for consumers,” said Deputy Assistant Attorney General Michael Kades of the Justice Department’s Antitrust Division. “In enacting Section 8 of the Clayton Act, Congress was concerned that competitors who shared directors would compete less vigorously to provide better services and lower prices. We will continue to vigorously enforce the antitrust laws when necessary to address overreach by corporations and their designated agents.”
WBD is a Delaware multimedia corporation headquartered in New York. Among other things, it produces, licenses and distributes films and television programs, operates domestic and international television networks and provides premium pay television and streaming services.
Charter is a Delaware telecommunications and media company headquartered in Stamford, Connecticut. It provides cable television, internet and telephone services through its Spectrum brand and operates numerous news and sports networks.
Anyone with information about potential interlocking directorates or any other potential violations of the antitrust laws is encouraged to contact the Antitrust Division’s Citizen Complaint Center at 1- 888-647-3258 or [email protected].
Two More Defendants Plead Guilty to Roles in Methamphetamine Trafficking OrganizationRead the Press Release
HUNTINGTON, W.Va. – Today, Gary Diaz, also known as “Poppy,” 66, of Nitro, pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine and Thomas Shane Holland, 54, of Salt Rock, pleaded guilty to possession with intent to distribute methamphetamine. Diaz and Holland each admitted to their roles in a drug trafficking organization (DTO) responsible for distributing large quantities of methamphetamine and fentanyl in the Southern District of West Virginia.
According to court documents and statements made in court, on November 15, 2023, law enforcement officers executed a search warrant at Diaz’s residence in Nitro and seized multiple bags of methamphetamine and a loaded Diamondback DB 9mm pistol. A forensic analysis later confirmed that the seized methamphetamine included 6.32 grams that was 100 percent purity, 55.76 grams that was 91 percent purity and 871.7 grams that was 75 percent pure. Diaz admitted to possessing the methamphetamine and the firearm and further admitted that he intended to distribute the methamphetamine.
Diaz participated in the DTO from approximately November 2022 through November 2023. Diaz admitted that he received a total of at least 30 pounds of methamphetamine for distribution during this period. Diaz commonly obtained the methamphetamine on consignment, paying for it after it was distributed. Diaz admitted that he received at least 1 pound and as much as 2 pounds at a time during the final six months of his participation in the conspiracy.
Holland admitted to buying approximately 16 grams of methamphetamine from co-defendant Derrell Cashawn Massey outside a Huntington gas station on October 18, 2023. Holland further admitted to arranging the transaction with Massey beforehand by phone. Following the transaction, law enforcement officers conducted a traffic stop of a vehicle in which Holland was a passenger. Officers found the methamphetamine in a container beside Holland in the vehicle during the traffic stop. Holland admitted that he intended to distribute the 16 grams of methamphetamine.
Diaz is scheduled to be sentenced on July 15, 2024, and faces a mandatory minimum of 10 years and up to life in prison, at least five years of supervised release, and a $10 million fine.
Holland is scheduled to be sentenced on July 31, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
Diaz and Holland are among 27 individuals indicted in a 53-count indictment that charges the defendants with distributing methamphetamine and fentanyl transported from Detroit, Michigan, in Huntington and other locations within the Southern District of West Virginia.
Diaz and Holland are among 13 defendants who have pleaded guilty in the main case. One other of the 27 indicted individuals pleaded guilty to a related offense in a separate case. The indictment against Massey and the remaining defendants is pending. An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Cabell County Sheriff’s Department, the Drug Enforcement Administration (DEA), the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the U.S. Postal Inspection Service. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
United States District Judge Robert C. Chambers presided over the hearings. Assistant United States Attorneys Joseph F. Adams and Stephanie Taylor are prosecuting the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-180.
Two Individuals Indicted for Distributing Heroin and Fentanyl that Caused the Death of Transgender ActivistRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, a four-count indictment was unsealed charging Michael Kuilan and Antonio Venti with distributing the heroin and fentanyl that caused the death of New York transgender activist, Cecilia Gentili. Kuilan is also charged with unlawful gun possession. Kuilan and Venti are in custody and are scheduled to be arraigned this afternoon before United States Magistrate Judge Lois Bloom.
Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino, III, Special Agent-in-Charge, Drug Enforcement Administration (DEA) and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the charges.
“Cecilia Gentili, a prominent activist and leader of the New York transgender community was tragically poisoned in her Brooklyn home from fentanyl-laced heroin. Today, the alleged perpetrators who sold the deadly dose of drugs to Gentili have been arrested,” stated United States Attorney Peace. “Fentanyl is a public health crisis. Our Office will spare no effort in the pursuit of justice for the many New Yorkers who have lost loved ones due to this lethal drug.”
“Today’s indictment delivers a strong message to anyone who profits from poisoning our communities with illicit drugs: There are dedicated investigators, across multiple agencies, working tirelessly to disrupt your shameful industry by pinpointing the source of these unlawful substances,” stated NYPD Commissioner Caban. “It is imperative that we continue to hold distributors accountable for their callous actions. I commend the NYPD’s partners at the DEA and the office of the U.S. Attorney for the Eastern District of New York for their ongoing commitment to this critical mission.”
“These arrests result in the charges brought against the defendants for causing the death of transgender rights activist Cecilia Gentile. Drug poisonings take too many lives too soon from communities nationwide and DEA is committed to bringing to justice those responsible. Fentanyl is a deadly drug that dealers mix into their product and has accounted for 70% of drug related deaths nationwide. The more people that know about the dangers of today’s drug landscape, the more lives can be saved” stated Special Agent in Charge Frank Tarentino of the Drug Enforcement Administration - New York Division “The death of Ms. Gentile is a reminder of the dangers that illicit drugs have on all communities, including the LGBTQ+ community. I applaud the hard work by the DEA New York Division, NYPD Brooklyn South Narcotics and the U.S. Attorney’s Office Eastern District of New York.”
According to the indictment and court documents, on February 6, 2024, following a 911 call by Gentili’s partner, NYPD officers reported to Gentili’s home in Brooklyn, New York and found Gentili dead in her bedroom. Gentili died due to the combined effect of fentanyl, heroin, xylazine, and cocaine. Text messages, cell site data, and other evidence revealed that Venti sold the fentanyl and heroin mixture to Gentili on February 5, 2024, and Kuilan supplied Venti with those lethal narcotics.
In addition, law enforcement searched an apartment in Williamsburg, Brooklyn belonging to Kuilan and found hundreds of baggies of fentanyl, a handgun, and ammunition.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If found guilty, they face up to life in prison.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant U.S. Attorney Adam Amir is in charge of the prosecution, with the assistance of Paralegal Specialist Samuel Ronchetti.
The Defendants:
MICHAEL KUILAN
Age: 44
Brooklyn, New YorkANTONIO VENTI
Age: 52
West Babylon, New YorkE.D.N.Y. Docket No. 24-CR-130 (BMC)
Twin Cities Felon Charged with Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A Twin Cities man has been charged with illegal possession of a firearm, announced United States Attorney Andrew M. Luger.
According to court documents, on October 7, 2022, Salvador Anthony Pacheco, 45, knowingly possessed a Kahr .45 caliber semi-automatic pistol. Because Pacheco has prior felony convictions, including assault, weapons violations, and murder, he is prohibited under federal law from possessing firearms or ammunition at any time.
The indictment charges Pacheco with one count of possessing a firearm as a felon. Pacheco made his initial appearance before Magistrate Judge Elizabeth Cowan Wright in U.S. District Court on March 29, 2024.
This case is the result of an investigation conducted by the FBI Headwaters Safe Trails Task Force, the Minnesota Bureau of Criminal Apprehension, and the Minnesota State Patrol.
Assistant U.S. Attorney Campbell Warner is prosecuting the case.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tiverton Man Admits to Enticing, Transporting a Minor to Engage in Criminal Sexual ActivityRead the Press Release
PROVIDENCE, RI – A Tiverton man admitted to a federal judge that he enticed a 13-year-old girl he knew to be a minor to travel with him from her home in Pennsylvania to his family’s residence in Rhode Island, during which time he engaged in criminal sexual activity with her, announced United States Attorney Zachary A. Cunha.
William C. Stewart, 22, pleaded guilty on Friday to charges of enticement of a minor to engage in criminal sexual activity, transportation of a minor with intent to engage in criminal sexual activity, and interstate travel with intent to engage in illicit sexual conduct.
Stewart admitted that on June 17, 2021, he began communicating with the minor victim via SnapChat, quickly learning that she was 13 years old. During his ongoing communications, he persuaded the young girl to engage in unlawful sexual activity.
Stewart admitted that in the middle of the night on June 30, 2021, he picked the girl up from outside her home and began to drive with her to his home in Tiverton, Rhode Island for the purpose of engaging in sexual activity with her. Stewart drove with the girl through Pennsylvania, New Jersey, New York, Connecticut, and Rhode Island. While enroute to Rhode Island, Stewart stayed at a hotel in New London, Connecticut, where he engaged in sexual activity with the minor victim. According to court documents, after arriving in Rhode Island, Stewart also engaged in sexual activity with the minor female.
According to information presented to the court, upon arrival at his family’s Tiverton residence on July 4, 2021, Stewart introduced the minor victim to his family members, using a false name for her and falsely stating that she was soon to turn 19 years old. On July 7, the young girl contacted a friend via SnapChat and asked for help, after which the Tiverton Police identified the minor victim’s location and responded to Stewart’s home.
Stewart is scheduled to be sentenced on June 18, 2024. The defendant’s sentences will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant U.S. Attorneys G. Michael Seaman and Denise M. Barton.
The investigation was conducted by the FBI, Tiverton Police Department, and Pennsylvania State Police.
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Thirteen Members of a Drug Trafficking Conspiracy Involving Louisiana State Penitentiary Inmates, Former Angola Guards, and Other Sentenced to Federal PrisonRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced the sentencing of thirteen individuals by Chief Judge Shelly D. Dick in connection with an extensive federal, state, and local investigation by the Middle District Organized Crime and Drug Enforcement Task Force (OCDETF) aimed at a large-scale cocaine, heroin, marijuana, and methamphetamine trafficking network based in the Louisiana State Penitentiary at Angola, with suppliers in East Baton Rouge Parish, Louisiana, and Colton, California.
Michael Augustine, age 44, of Erath, Louisiana, was sentenced to 51 months imprisonment in federal prison following his conviction for conspiracy to distribute and possess with intent to distribute marijuana and methamphetamine. The Court further sentenced Augustine to serve three years of supervised release following his term of imprisonment.
Arthur Basaldua, age 44, of Angola, Louisiana, was sentenced to 192 months imprisonment in federal prison following his conviction for conspiracy to distribute and possess with intent to distribute cocaine, heroin, marijuana, and methamphetamine. The Court further sentenced Basaldua to serve five years of supervised release following his term of imprisonment.
Manuel Cadena, age 44, of Hesperia, California, was sentenced to 48 months imprisonment in federal prison following his conviction for conspiracy to distribute marijuana and methamphetamine. The Court further sentenced Cadena to serve four years of supervised release following his term of imprisonment.
Michael Cadena, age 33, of Hesperia, California, was sentenced to 48 months imprisonment in federal prison following his conviction for conspiracy to distribute marijuana and methamphetamine. The Court further sentenced Cadena to serve three years of supervised release following his term of imprisonment.
Jeffery Day, age 38, of Centreville, Mississippi, was sentenced to 57 months imprisonment in federal prison following his conviction for conspiracy to distribute methamphetamine. The Court further sentenced Day to serve three years of supervised release following his term of imprisonment.
Deanthony Ford, age 37, of Angola, Louisiana, was sentenced to 151 months imprisonment in federal prison following his conviction for conspiracy to distribute and possess with intent to distribute cocaine, heroin, marijuana, and methamphetamine. The Court further sentenced Ford to serve five years of supervised release following his term of imprisonment.
Joshua Gonzalez, age 40, of Angola, Louisiana, was sentenced to 72 months imprisonment in federal prison following his conviction for conspiracy to distribute and to possess with intent to distribute cocaine, heroin, marijuana, and methamphetamine. The Court further sentenced Gonzalez to serve five years of supervised release following his term of imprisonment.
Jared Graham, age 34, of Angola, Louisiana, was sentenced to 126 months imprisonment in federal prison following his conviction for conspiracy to distribute and to possess with intent to distribute marijuana and methamphetamine. The Court further sentenced Graham to serve four years of supervised release following his term of imprisonment.
Xavier Johnson, age 39, of Baton Rouge, Louisiana, was sentenced to 80 months imprisonment in federal prison following his conviction for conspiracy to distribute and to possess with intent to distribute cocaine, heroin, marijuana, and methamphetamine. The Court further sentenced Johnson to serve three years of supervised release following his term of imprisonment.
Dudley Melancon, age 35, of Angola, Louisiana, was sentenced to 72 months imprisonment in federal prison following his conviction for conspiracy to distribute marijuana and methamphetamine. The Court further sentenced Melancon to serve three years of supervised release following his term of imprisonment.
Ismael Ochoa, age 37, of Riverside, California, was sentenced to 90 months imprisonment in federal prison following his convictions for conspiracy to distribute and to possess with intent to distribute cocaine, heroin, marijuana, and methamphetamine and unlawful travel in the aid of racketeering enterprise. The Court further sentenced Ochoa to serve three years of supervised release following his term of imprisonment.
Kevin Narcisse, age 38, of Angola, Louisiana, was sentenced to 60 months imprisonment in federal prison following his conviction for conspiracy to distribute and to possess with intent to distribute cocaine, heroin, marijuana, and methamphetamine. The Court further sentenced Narcisse to serve five years of supervised release following his term of imprisonment.
Nelson Tippen, age 44, of Angola, Louisiana, was sentenced to 48 months imprisonment in federal prison following his conviction for conspiracy to distribute and to possess with intent to distribute cocaine, heroin, marijuana, and methamphetamine. The Court further sentenced Tippen to serve three years of supervised release following his term of imprisonment.
Through their pleas, the defendants admitted involvement in a conspiracy to distribute cocaine, heroin, marijuana, and methamphetamine between February 2017 and May 2019. During that time, the defendants worked in concert with each other to obtain and distribute controlled substances in the Louisiana State Penitentiary at Angola and elsewhere through the use of correctional officers and other non-incarcerated individuals, and with the intent to profit from the distribution of these controlled substances. Most of the controlled substances distributed by this drug trafficking network were shipped to addresses in Baton Rouge from individuals in California.
U.S. Attorney Gathe stated, “The sentencing of these 13 defendants is evidence of our commitment to dismantling large-scale criminal conspiracies and drug trafficking networks. With the use of federal, state, and local partnerships we identified individuals from California to Louisiana and were able to hold them accountable for their narcotics distribution through Angola State Penitentiary. The collaborative efforts into OCDETF investigations reduces the availability of illegal narcotics in our communities, and we will continue this approach to fetter out organized crime in our district.”
“The FBI’s goal is to identify and target criminal enterprises and other groups engaged in drug trafficking. Today, justice was served to those who chose to traffic and distribute illicit narcotics in Angola State Penitentiary. I want to thank the efforts and collaboration of the United States Attorney's Office, the United States Postal Inspection Service, The Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as the Louisiana Department of Corrections, the Louisiana State Police, and St. Francisville Police Department who worked tirelessly to dismantle this criminal enterprise,” stated the FBI Special Agent in Charge Lyonel Myrthil. “I assure you, the FBI will continue to enforce the laws and intervene when drug traffickers distribute narcotics on the streets or in the prison system.”
This investigation was led by the Federal Bureau of Investigation and the United States Postal Inspection Service, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Louisiana Department of Corrections, the Louisiana State Police, and the St. Francisville Police Department. The case was prosecuted by First Assistant United States Attorney April Leon Johnson and Assistant United States Attorney Paul L. Pugliese.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Shiprock Man Charged with Involuntary ManslaughterRead the Press Release
ALBUQUERQUE – A Shiprock man is facing federal charges for killing two people and seriously injuring a third in a head-on collision while driving under the influence of alcohol. Brian Gonnie, 44, an enrolled member of the Navajo Nation., is charged with two counts of involuntary manslaughter and one count of assault resulting in serious bodily injury.
The indictment alleges that on December 1, 2023, Gonnie operated a motor vehicle without due caution and with a wanton and reckless disregard for human life, resulting in the deaths of John Doe 1 and John Doe 2, and assault resulting in serious bodily injury of John Doe 3.
Gonnie appeared in federal court for an arraignment today and will remain on conditions of release pending trial. If convicted, Gonnie faces up to 10 years in prison.
U.S. Attorney Alexander M.M. Uballez, Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
This case is being investigated by the Farmington Resident Agency of the FBI Albuquerque Field Office with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations and the New Mexico State Police. Assistant United States Attorney Jesse Pecoraro is prosecuting the case.
View the IndictmentAn indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Shelby County Man Indicted for Offenses Relating to Child Pornography, Encouraging Illegal Entry into the United States, and Making False Statements to a Federal AgencyRead the Press Release
LEXINGTON, Ky.— In a federal indictment, returned on March 21, 2024 and unsealed Thursday, Natividad Aguilera Garcia, 37, of Shelbyville, Ky., was charged with one count of production of child pornography, one count of receipt of child pornography, one count of online enticement of a minor to engage in prohibited sexual activity, one count of transportation of a minor to engage in prohibited sexual activity, one count of encouraging illegal entry, one count of making a false statement to a federal agency, and one count of presenting a false document to a federal agency.
The indictment alleges that, beginning on May 1, 2021, Garcia enticed a minor (“Minor A”) to engage in prohibited sexual activity, produced and received sexually explicit visual depictions of Minor A, and transported Minor A in interstate or foreign commerce for the purpose of prohibited sexual activity. The indictment further alleges that Garcia induced three aliens, including Minor A, to illegally enter the United States. Following Minor A’s illegal entry, the indictment alleges that Garcia made false statements and used false documents in an application to the Office of Refugee Resettlement (“ORR”), the subdivision of Health and Human Services that oversees the care of unaccompanied migrant children, claiming that he was Minor A’s uncle, knowing that he was not.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Rana Saoud, Special Agent in Charge, Homeland Security Investigations, Nashville Field Office; Jason E. Meadows, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Dallas Regional Office; Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police; and Chief Bruce Gentry, Shelbyville Police Department, jointly announced the indictment.
The investigation preceding the indictment was conducted by HSI, HHS-OIG, Kentucky State Police, and Shelbyville Police Department. The indictment was presented to the grand jury by Assistant U.S. Attorney Mary Melton.
Garcia appeared in federal court for his arraignment on Monday. For the production charge, he faces a minimum of 15 years in prison and a maximum of 30 years. However, any sentence following a conviction would be imposed by the Court, after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
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Romanian National Sentenced to More Than 6 Years in Prison for Leading Scheme that Stole Benefits from Low-Income FamiliesRead the Press Release
LOS ANGELES – A Romanian man has been sentenced to 75 months in federal prison for leading a group that used illegal skimmers on ATMs to harvest data, created counterfeit debit cards using the stolen account holder information, then used the cloned cards to make cash withdrawals from numerous victims, including low-income individuals on public assistance, the Justice Department announced today.
Marius Oprea, 38, who most recently was residing in a short-term rental property in Port Hueneme, was sentenced late Friday by United States District Judge Maame Ewusi-Mensah Frimpong. In addition to the prison term, Judge Frimpong ordered Oprea to pay $28,974 in restitution.
Oprea – whom prosecutors believe illegally entered the United States – pleaded guilty in June 2023 to one count of conspiracy to commit bank fraud, admitting that he and his accomplices used counterfeit cards to fraudulently make withdrawals from the accounts of numerous victims.
Using an alias, Oprea received sophisticated skimming devices shipped to a mail drop he rented, lived in a short-term residence, and maintained the master list of stolen account information, according to a sentencing memorandum filed by prosecutors that called the criminal crew “unusually professional.”
The skimming ring focused on Bank of America accounts, which provides debit cards for California anti-poverty programs, including those providing benefits for unemployed and disabled individuals.
“[T]he individuals whose accounts are looted most frequently are those who depend on government payments to survive,” according to declaration by an FBI agent.
“[Oprea] illegally entered our country for one purpose – to take advantage of the weaker ATM security here, which does not require cards containing computer chips,” according to the government’s sentencing memorandum. “He pursued fraud like a full-time job, netting thousands of victims’ accounts.”
The FBI investigated this case and received significant assistance from the Ventura County District Attorney’s Office and the Los Angeles County Sheriff’s Department.
Assistant United States Attorney Andrew Brown of the Major Frauds Section prosecuted this case.
This case is the product of an investigation by the Vulnerable Communities Task Force, which is focused on investigating and prosecuting individuals and entities that prey on communities that typically are less likely to report crimes to law enforcement and historically have had less legal recourse to address the offenders targeting them. These groups may include immigrants and migrant workers defrauded in immigration schemes, indigent individuals reliant on public benefits, the elderly, and those who have been reluctant to seek assistance from government authorities.
Pembroke Township Man Convicted of Filing False Tax ReturnsRead the Press Release
Urbana, Ill. – A federal jury returned guilty verdicts on 3 offenses on March 28, 2024, against Larry Dean Gibbs, 64, of E. 6000 Road in Pembroke Township, Illinois, for Filing False Federal Income Tax Returns. Sentencing for Gibbs has been scheduled for July 17, 2024, at the U.S. Courthouse in Urbana, Illinois.
During two days of testimony, the government presented evidence to establish that, in January of 2017, Gibbs filed three federal income tax returns for the tax years 2012, 2013, and 2014, each falsely claiming that he had earned $10 million in annual income from the “Larry Dean Gibbs Estate.” Gibbs further falsely claimed that the IRS withheld over $3 million per year from his earnings each year and that he was entitled to refunds totaling over $6.8 million. In contemporaneous filings, Gibbs claimed that he had changed his name to Mulumbua Humraukn El Taikem Bey and that he was the Ambassador for the Al Moroccan Empire National Republic, which is not officially recognized by the U.S. State Department. At the time Gibbs filed the three false tax returns, he had just been released from federal prison for a prior conviction for filing a false federal tax return in 2005, when he had obtained a $66,282 refund to which he was not entitled.
“With the collaborative efforts of our law enforcement partners, the United States Attorney’s Office will continue to protect our society by actively prosecuting individuals who defraud the government and, ultimately, honest taxpayers” said U.S. Attorney Gregory K. Harris.
“This verdict is an appropriate outcome to the fraud that Larry Gibbs committed against the U.S. Treasury. Instead of learning from his prior conviction for tax fraud, Gibbs decided to flaunt the Internal Revenue Code, yet again,” said Justin Campbell, Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “We look forward to the conclusion of this case at sentencing.”
“This conviction demonstrates the FBI’s commitment to working with our federal investigative and prosecutorial partners to hold defendants accountable for their fraud schemes,” said Robert W. “Wes” Wheeler Jr., Special Agent in Charge of the Chicago Division of the FBI. “We will continue to take strong action against those who seek to profit illegally from the theft of taxpayer dollars.”
Gibbs remains released on conditions of bond, which includes home detention, pending sentencing.
At sentencing, Gibbs faces statutory penalties of up to three years of imprisonment and a $100,000 fine on each of the three counts of conviction.
The case investigation was conducted by the Internal Revenue Service Criminal Investigation Division and Federal Bureau of Investigation, Chicago Field Office. Supervisory Assistant United States Attorney Eugene L. Miller represented the government at trial.
New Haven Man Sentenced to 14 Years in Federal Prison for Gunpoint Robberies, CarjackingRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that CHRISTIAN BORRERO, 20, of New Haven, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 168 months of imprisonment, followed by five years of supervised release, for committing gunpoint robberies of convenience stores and an armed carjacking in 2022.
According to court documents and statements made in court, ATF and the New Haven Police Department investigated a series of gunpoint robberies and a carjacking that occurred in late June and early July 2022. The investigation revealed that Borrero committed an armed robbery of a Citgo Gas Station located at 957 Foxon Road in East Haven on June 29, 2022; an armed carjacking followed by an armed robbery of a 7-Eleven Convenience Store located at 1089 Campbell Avenue in West Haven on July 3, 2022; and an armed robbery on an Xpress Mart Gas Station located at 180 Wakelee Avenue in Ansonia on July 7, 2022. In addition, on July 6, 2022, Borrero and his associate, Robert Smith, committed an armed robbery of a Shell Gas Station located at 195 State Street in North Haven.
Borrero has been detained since July 13, 2022. On January 3, 2024, he pleaded guilty to two counts of carrying, using, and brandishing a firearm during and in relation to a crime of violence.
On September 28, 2023, Smith, of New Haven, pleaded guilty to one count of aiding and abetting Hobbs Act robbery and one count of aiding and abetting the carrying, using, and brandishing a firearm during and in relation to a crime of violence. He awaits sentencing.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) with the assistance of the New Haven, East Haven, West Haven, Ansonia, and North Haven Police Departments. The case is being prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
U.S. Attorney Avery thanked the State’s Attorneys for the Judicial Districts of New Haven and Ansonia/Milford for their cooperation in investigating and prosecuting this matter.
The prosecution is part of Project Safe Neighborhoods (PSN), 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.
Member of Violent New Haven Gang Sentenced to 78 Months in Federal PrisonRead the Press Release
KIVEON HYMAN, also known as “Tiny, ” 26, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in New Haven to 78 months of imprisonment, followed by three years of supervised release, for a racketeering offense stemming from his role in a violent New Haven street gang.
Today’s announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; John P. Doyle, Jr., State’s Attorney for the New Haven Judicial District; James Ferguson, Special Agent in Charge, ATF Boston Field Division; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration for New England; and New Haven Police Chief Karl Jacobson.
According to court documents and statements made in court, in an effort to address violence in New Haven, including murders and attempted murders, the ATF, FBI, DEA and New Haven Police Department, working closely with the U.S. Attorney’s Office and New Haven State’s Attorney’s Office, have been investigating an ongoing gang war between members and associates of the Exit 8 street gang and rival gangs in the Hill section and other areas of the city. The Exit 8 gang is named after the geographic area accessed by exiting Interstate 91 at Exit 8 in New Haven. Recently, younger members of Exit 8 are identifying themselves with the word “Honcho,” which is derived from the street name of an Exit 8 member who was murdered on Quinnipiac Avenue in February 2020.
The investigation revealed that Hyman and other members of the Exit 8 gang engaged in drug trafficking, used, and shared firearms, and, since June 2018, have committed at least three murders and 16 attempted murders. Exit 8 members and associates stole vehicles, at times from outside of the state, and used those stolen vehicles when committing acts of violence. Gang members also promoted, coordinated, facilitated, and celebrated their narcotics distribution and acts of violence through text messaging and the use of social media applications and websites including Facebook, Instagram, Snapchat, and YouTube.
Specifically, on June 16, 2018, Hyman and other Exit 8 members shot at and attempted to kill a member and associate of a rival gang in the area of Fountain Street, Davis Street, and Lakeview Terrace in New Haven. In the shooting, the intended victim’s associate suffered seven gunshot wounds, but survived the attack. Investigators found 15 spent ammunition casings.
Hyman has been detained since his arrest on March 24, 2023. On October 12, 2023, he pleaded guilty to conspiracy to engage in a pattern of racketeering activity.
This investigation is being conducted by ATF, the FBI, the DEA, the New Haven Police Department, and the New Haven State’s Attorney’s Office, with the assistance of the Connecticut State Police and the Connecticut Forensic Science Laboratory. The case is being prosecuted by Assistant U.S. Attorneys Tara E. Levens, Rahul Kale and Jocelyn C. Kaoutzanis.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Marketers and Physicians in Five States Agree to Pay over $1.5 Million to Settle Laboratory Kickback AllegationsRead the Press Release
NEWARK, N.J. – Two laboratory marketers, their marketing companies, and five doctors have agreed to pay over $1.5 million to resolve allegations of False Claims Act allegations of involvement in laboratory kickback schemes in violation of the Anti-Kickback Statute.
U.S. Attorney Philip R. Sellinger“The kickbacks resulted in the submission of fraudulent laboratory testing claims to Medicare. Clinical laboratories, marketing companies, and health care practitioners are on notice that kickback arrangements in any form are not acceptable. No matter how they are named – as a ‘consulting fee,’ ‘commission,’ or otherwise – or whether they are paid through intermediaries, kickbacks undermine the integrity of medical decision making and have no place in our healthcare system. Today’s agreement is yet another example of my office’s commitment to enforcing the False Claims Act and the Anti-Kickback Statute and protecting Medicare from shelling out taxpayer money for reimbursements tainted by improper kickbacks.”
“Kickbacks can harm taxpayer-funded healthcare programs, distort the market for healthcare services and improperly influence healthcare providers’ medical decisions,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said. “We will continue to pursue those involved in illegal kickback schemes, including marketers, doctors, and medical practices.”
“Certain violations of the Anti-Kickback Statute can induce medically unnecessary testing and inappropriately steer medical tests to providers who may not return timely or quality results,” Special Agent in Charge Naomi D. Gruchacz of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), said. “We will continue to work with our law enforcement partners to seek resolutions and effect change to preserve the integrity of the federal health care system.”
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The Anti-Kickback Statute holds accountable parties on both sides of an impermissible kickback arrangement. The settlements announced today resolve allegations that laboratory marketers and their companies paid or conspired to pay kickbacks to doctors, and that doctors and their companies received kickbacks in return for laboratory referrals. The alleged kickbacks resulted in the submission of false or fraudulent laboratory testing claims to Medicare in violation of the False Claims Act.
The Marketer Settlements
George Carralejo of Yorba Linda, California, and his marketing company, OC Genetic Consultants Inc., agreed to pay $400,000 to resolve allegations that they entered into two illegal schemes to pay kickbacks to doctors for laboratory referrals. From August 2020 to September 2021, Carralejo and his company allegedly conspired with a South Carolina marketer, Ralston Health Group Inc., to pay kickbacks disguised as consulting and medical director fees to a doctor in Houston, Texas. Carralejo and his company paid the kickbacks in order to induce the doctor to order laboratory testing from RDx Bioscience Inc. (RDx), a clinical laboratory in Kenilworth, New Jersey, and NEXT Bio-Research Services LLC, doing business as NEXT Molecular Analytics (Next Molecular), a clinical laboratory in Chester, Virginia. Carralejo’s company and Ralston allegedly profited from the kickback scheme in the form of commissions from RDx and Next Molecular based on the Houston doctor’s referrals.
From October 2021 to October 2022, Carralejo and his company allegedly conspired with a Texas marketer to pay kickbacks disguised as consulting fees to induce a doctor in Little Rock, Arkansas to order RDx laboratory testing. The settlement resolves allegations that Carralejo provided commission numbers to the Arkansas doctor or her staff so that she could prepare false consulting invoices to disguise both the reason for the Texas marketer’s payments (to induce referrals, not for consulting work) and the calculation of such payments (based on reimbursements from her referrals, not hourly pay for consulting work). Carralejo allegedly tried to hide his role in the fraud scheme by deleting related text messages on the day he and the Texas marketer received subpoenas from the Department of Justice.
Michael Jeresaty of Daniel Island, South Carolina, and his company, Ralston, agreed to pay $320,000 for allegedly paying kickbacks to the Houston physician referenced above and to a South Carolina doctor who previously settled related allegations. The Department of Justice previously settled with RDx allegations relating to Carralejo’s and Jeresaty’s kickback schemes.
The Physician Settlements
The settlements announced today also resolve allegations that four physicians and related entities received kickbacks in violation of the Anti-Kickback Statute from purported management service organizations (MSOs) in return for making referrals to laboratories in Florida and Texas.
- Dr. Paul Bierig agreed to pay $120,634 to resolve allegations that from October 2016 to June 2022, he and his medical practice, Paul C. Bierig, M.D., P.A., received thousands of dollars in payments from Avior Group LLC and other purported MSOs, including Infinity One Health Group MSO LLC and Infinity Three Health Group MSO LLC, in return for ordering laboratory tests from RDx and InHealth Diagnostic LLC doing business as RealLab (InHealth), a clinical laboratory in Dallas, Texas.
- Dr. Mohd Azfar Malik of St. Louis, Missouri, agreed to pay $217,430 to resolve allegations that from January 2019 to March 2020, he and his medical practice, Psych Care Consultants LLC (PCC), received thousands of dollars in payments from a purported MSO, Alari Group LLC (Alari), in return for ordering laboratory tests from Genesis Reference Laboratories LLC (Genesis), a clinical laboratory in Orlando, Florida, and InHealth Diagnostic LLC doing business as RealLab (InHealth), a clinical laboratory in Dallas, Texas. Genesis and InHealth allegedly paid commissions to an independent contractor recruiter, Corum Group LLC (Corum), which used Alari to pay kickbacks to Malik and other healthcare providers in return for their referrals. The Department of Justice previously settled related allegations with Genesis and PCC.
- Dr. Robert Ain of Wichita, Kansas, and his pain management practice, Comprehensive Pain Treatment LLC, agreed to pay $100,632 to resolve allegations that from May 2017 to February 2019, they received thousands of dollars in payments from a purported MSO named Ruthenium Management LLC in return for ordering laboratory tests from Landmark Diagnostics LLC (Landmark), a clinical laboratory in Houston, Texas.
- Dr. Barry Feinberg, Dr. Rachel Feinberg, of St. Louis, and BIF Family Trust, a family trust, agreed to pay $342,466 to resolve allegations that from January 2016 to December 2018, they received thousands of dollars in payments from purported MSOs named ESA Toxicology LLC and Beachwood Services LLC in return for ordering laboratory testing from Landmark.
The parties have agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged schemes.
The settlements were the result of a coordinated effort between the U.S. Attorney’s Office for the District of New Jersey and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG.
The government is represented by Assistant U.S. Attorney Kruti Dharia of the U.S. Attorney’s Office, District of New Jersey, Opioid Abuse Prevention and Enforcement Unit and Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section).
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
ralstonjeresaty.settlement.pdf malik.settlement.pdf feinberg.settlement.pdf carralejo.settlement.pdf bierig.settlement.pdf ain.settlement.pdfMarketers and Physicians in Five States Agree to Pay over $1.5 Million to Settle Laboratory Kickback AllegationsRead the Press Release
Two laboratory marketers, George Carralejo of Yorba Linda, California, and Michael Jeresaty of Daniel Island, South Carolina and their marketing companies, as well as five physicians, Dr. Paul Bierig of Plano, Texas, Dr. Mohd Azfar Malik of St. Louis, Missouri, Dr. Robert Ain of Wichita, Kansas and Drs. Barry Feinberg and Rachel Feinberg also of St. Louis, and certain affiliated entities have agreed to pay a total of $1,501,162 to resolve alleged False Claims Act violations arising from their involvement in laboratory kickback schemes. The parties have agreed to cooperate with the Justice Department’s investigations of other participants in the alleged schemes.
“Kickbacks can harm taxpayer-funded healthcare programs, distort the market for healthcare services and improperly influence healthcare providers’ medical decisions,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to pursue those involved in illegal kickback schemes, including marketers, doctors and medical practices.”
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare and other federally funded healthcare programs. The settlements announced today resolve allegations that laboratory marketers and their companies paid or conspired to pay kickbacks to doctors, and that doctors and their companies received kickbacks in return for laboratory referrals. The alleged kickbacks resulted in the submission of false or fraudulent laboratory testing claims to Medicare in violation of the False Claims Act.
The Marketer Settlements
George Carralejo and his marketing company, OC Genetic Consultants Inc. agreed to pay $400,000 to resolve allegations that they entered into two illegal schemes to pay kickbacks to doctors for their laboratory referrals. First, from August 2020 to September 2021, Carralejo and his company allegedly conspired with a South Carolina marketer, Ralston Health Group Inc. (Ralston), to pay kickbacks disguised as consulting and medical director fees to a doctor in Houston to induce him to order laboratory testing from RDx Bioscience Inc. (RDx), a clinical laboratory in Kenilworth, New Jersey, and NEXT Bio-Research Services LLC, doing business as NEXT Molecular Analytics (Next Molecular), a clinical laboratory in Chester, Virginia. Carralejo’s company and Ralston allegedly profited from the kickback scheme in the form of commissions from RDx and Next Molecular based on the Houston doctor’s referrals.
Second, from October 2021 to October 2022, Carralejo and his company allegedly conspired with a Texas marketer, BeauMed Consultants LLC, to pay kickbacks disguised as consulting fees to a doctor in Little Rock, Arkansas, to induce her to order laboratory tests from RDx. Carralejo allegedly provided commission numbers to the Arkansas physician or her staff, to allow for the preparation of false consulting invoices disguising that the Texas marketer’s payments were designed to reimburse for referrals rather than consulting work and were calculated based on the amount generated by those referrals. Carralejo allegedly tried to hide his role in the fraud scheme by deleting related text messages on the day he and the Texas marketer received subpoenas from the Justice Department.
In addition, Michael Jeresaty and his company, Ralston, agreed to pay $320,000 for allegedly paying kickbacks to the Houston physician referenced above and to a South Carolina doctor who previously settled related allegations involving referrals to RDx. The Justice Department previously settled with RDx allegations relating to Carralejo’s and Jeresaty’s kickback schemes.
The Physician Settlements
The settlements announced today also resolve allegations that five physicians and related entities received kickbacks in violation of the Anti-Kickback Statute from laboratory marketers’ purported management service organizations (MSOs) in return for making referrals to RDx and other laboratories.
- Paul Bierig: Dr. Bierig agreed to pay $120,634 to resolve allegations that from October 2016 to June 2022, he and his medical practice, Paul C. Bierig M.D., P.A., received thousands of dollars in payments from Avior Group LLC and other purported MSOs, including Infinity One Health Group MSO LLC and Infinity Three Health Group MSO LLC, in return for ordering laboratory tests from RDx and InHealth Diagnostic LLC doing business as RealLab (InHealth), a clinical laboratory in Dallas, Texas.
- Mohd Azfar Malik: Dr. Malik agreed to pay $217,430 to resolve allegations that from January 2019 to March 2020, he caused his medical practice, Psych Care Consultants LLC (PCC), to receive thousands of dollars in payments from Alari Group LLC (Alari) in return for ordering laboratory tests from Genesis Reference Laboratories LLC (Genesis), a clinical laboratory in Orlando, Florida, and InHealth. Genesis and InHealth allegedly paid commissions to an independent contractor recruiter, Corum Group LLC (Corum), which used Alari to pay kickbacks to Dr. Malik and other healthcare providers in return for their referrals. The Justice Department previously settled related allegations with Genesis and PCC.
- Robert Ain and Comprehensive Pain Treatment LLC: Dr. Ain and his pain management practice agreed to pay $100,632 to resolve allegations that from May 2017 to February 2019, they received thousands of dollars in payments from a purported MSO named Ruthenium Management LLC in return for ordering laboratory tests from Landmark Diagnostics LLC (Landmark), a clinical laboratory in Houston.
- Barry Feinberg, Dr. Rachel Feinberg and BIF Family Trust: Drs. Feinberg and Feinberg and a family trust agreed to pay $342,466 to resolve allegations that from January 2016 to December 2018, they received thousands of dollars in payments from purported MSOs named ESA Toxicology LLC and Beachwood Services LLC in return for ordering laboratory tests from Landmark.
“The kickbacks resulted in the submission of fraudulent laboratory testing claims to Medicare,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Clinical laboratories, marketing companies and health care practitioners are on notice that kickback arrangements in any form are not acceptable. No matter how they are named – as a ‘consulting fee,’ ‘commission’ or otherwise – or whether they are paid through intermediaries, kickbacks undermine the integrity of medical decision making and have no place in our healthcare system. Today’s agreement is yet another example of my office’s commitment to enforcing the False Claims Act and the Anti-Kickback Statute and protecting Medicare from shelling out taxpayer money for reimbursements tainted by improper kickbacks.”
“Violations of the Anti-Kickback Statute can induce medically unnecessary testing and inappropriately steer medical tests to providers who may not return timely or quality results,” said Special Agent in Charge Naomi D. Gruchacz of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “We will continue to work with our law enforcement partners to seek resolutions and effect change to preserve the integrity of the federal health care system.”
The settlements were the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of New Jersey, with assistance from HHS-OIG. Senior Trial Counsel Christopher Terranova of the Civil Division’s Commercial Litigation Branch (Fraud Section) and Assistant U.S. Attorney Kruti Dharia for the District of New Jersey handled the settlements. The United States has recovered over $47 million relating to conduct involving MSO kickbacks to healthcare providers, including False Claims Act settlements with 46 physicians.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only. There has been no determination of liability.
Ralston-Jeresaty Settlement Feinberg Settlement Malik Settlement Carralejo Settlement Ain Settlement Bierig SettlementMarion County Man Admits to Federal Firearms ChargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jermel Matthew Williams, age 32, of Fairmont, West Virginia, has admitted to a firearms charge.
Williams pled guilty to one count of making a false statement in connection with the acquisition of a firearm. According to court documents and statements made in court, investigators uncovered that Williams, a known drug user, falsified forms to purchase firearms from a licensed dealer in Fairmont. Several of those guns later were discovered in crime investigations in California and Puerto Rico.
Assistant U.S. Attorney Brandon Flower is prosecuting the case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
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Man Sentenced to Prison for Distributing Fentanyl and Acetyl Fentanyl Causing DeathRead the Press Release
A man who faced his second sentencing in federal court in a case involving an overdose death was sentenced March 28, 2024, to 27 years in federal prison.
Kevin Lorenzo Perry, age 35, from Austell, Georgia, received the prison term after a September 12, 2023, guilty plea to distribution of a controlled substance resulting in death.
In a plea agreement, Perry admitted he supplied fentanyl and acetyl fentanyl to another person causing the death of that person on February 6, 2020. This death occurred in Independence, Iowa.
Perry was previously sentenced to 240 months in the Southern District of Iowa for another overdose death in case number 20-cr-58 that also occurred in 2020 in Iowa City, Iowa.
Perry was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Perry was sentenced to 324 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Judge Strand ordered that part of sentence in this case be run consecutive to the sentence in Southern District resulting in a total term of 32 years in federal prison.
Perry is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Iowa Division of Narcotics Enforcement, the Drug Enforcement Administration, the Independence Police Department, the Iowa City Police Department, and the Johnson County Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-cr-2016.
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Man Sentenced to over 19 Years in Prison for Illicit Sexual Activity Involving a MinorRead the Press Release
MIAMI – On March 28, Stuart Leibov, 22, was sentenced to federal prison for his actions relating to the sexual abuse of a minor and child sexual abuse material (CSAM).
Leibov was sentenced to 235 months imprisonment, to be followed by supervised release for life by U.S. District Judge Rodney Smith. Leibov previously pleaded guilty to possession of child pornography and enticement of a minor to engage in illicit sexual activity.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, made the announcement.
The FBI Miami, West Palm Beach Resident Agency investigated the case. Assistant U.S. Attorney M. Catherine Koontz prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-80185.
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Maine Man Pleads Guilty to Conspiracy to Straw Purchase FirearmsRead the Press Release
BOSTON – A Maine man pleaded guilty to conspiring to straw purchase firearms in Maine and traffic the firearms to Massachusetts.
Traveyon Richardson, 26, of Bangor, Maine pleaded guilty to one count of conspiracy to straw purchase firearms and one count of trafficking of firearms. Chief United States District Judge F. Dennis Saylor IV scheduled sentencing for July 10, 2024. Richardson along with his co-conspirator Breon Stroup were indicted by a federal grand jury in July 2023.
In September 2022, Stroup allegedly used Snapchat to ask Richardson to purchase two specific firearms for him in Maine, where Richardson resides. It is alleged that the following day, Stroup sent Richardson a Cash App money transfer and Richardson purchased the firearms online. Then, Richardson allegedly picked up the firearms from the federal firearm license dealer and drove the firearms to Massachusetts in October 2022.
It is further alleged that approximately two weeks later, in October 2022, Richardson and Stroup had a phone conversation where Stroup assured Richardson that he had deleted his Snapchat account. When Richardson allegedly inquired about Stroup’s iCloud account, Stroup responded that he had deleted his iCloud account also.
The charge of conspiracy to straw purchase firearms provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of $250,000. The charge of trafficking of firearms provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement. Valuable assistance was provided by the Fall River Police Department and the Maine State Police. Assistant U.S. Attorneys Lucy Sun and Timothy E. Moran of the Organized Crime & Gang Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lynn Man Pleads Guilty to Counterfeit Pill Trafficking ConspiracyRead the Press Release
BOSTON – A Lynn man pleaded guilty today in federal court in Boston to participating in a North Shore-based drug trafficking organization (DTO) that allegedly distributed tens of thousands of counterfeit prescription pills containing fentanyl and methamphetamine.
Lawrence M. Nagle Sr., 56, pleaded guilty to one count each of conspiring to distribute and to possess with intent to distribute controlled substances. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing Aug. 2, 2024. Nagle Sr. was among 23 individuals charged in October 2022.
According to court documents, the DTO distributed counterfeit oxycodone pills containing fentanyl and counterfeit Adderall pills containing methamphetamine, among other things, to various individuals in the Lynn area.
As part of the conspiracy, Nagle Sr. stored various controlled substances including counterfeit oxycodone pills containing fentanyl and counterfeit methamphetamine pills containing methamphetamine at his apartment on behalf of the DTO. A search of his apartment in October 2022 resulted in seizure of various quantities fentanyl, methamphetamine, and cocaine, as well as three loaded firearms and more than $26,000 in drug proceeds
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the Beverly, Everett, Peabody, Revere, Salem, Saugus and Swampscott Police Departments. Assistant U.S. Attorneys James E. Arnold and Evan D. Panich of the Narcotics & Money Laundering Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lynn Man Charged with Sex Trafficking Three WomenRead the Press Release
BOSTON – A Lynn man has been charged with allegedly trafficking three women to engage in commercial sex acts and transporting one of them to another state for the purpose of engaging in prostitution.
Anthony Coleman, 34, was indicted on three counts of sex trafficking by force, fraud, or coercion and one count of transporting a person for purposes of prostitution. He was arrested on March 29, 2024, and will appear in federal court in Boston at 11:30 a.m. before Magistrate Judge M. Page Kelley.
“The indictment alleges that Mr. Coleman chose to prey on women who were struggling with employment and housing when the Covid-19 pandemic hit in March 2020. He allegedly forced these women to sell their bodies, took their money and violently assaulted them to make sure they obeyed his commands,” said Acting U.S. Attorney Joshua S. Levy. “Human trafficking is abhorrent whenever it occurs and it is typically the product of exploiting a victim’s vulnerability, in this case the onset of a pandemic. Mr. Coleman now faces real consequences for his alleged conduct and his victims will finally be free of his torment.”
“Anthony Coleman is accused of staggering violence and cruelty against women he trafficked and forced into commercial sex. In a pattern we see over and over with human traffickers, Coleman allegedly targeted women in need and offered them security only to use violence and threats to control their money and their bodies. These cases are complex and can only be worked in close collaboration with our partners in law enforcement and victims support services who share our commitment to holding these human traffickers to account and working towards a life of dignity for survivors,” said Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England.
According to the indictment, Coleman targeted victims who had lost their jobs or homes during the COVID-19 pandemic shutdowns in March through August of 2020. It is alleged that Coleman had his victims move with him into a house in Lawrence, posted or controlled online commercial sex advertisements for them, provided them scripts to negotiate payment and terms with commercial sex buyers and transported his victims to hotels and other places to engage in commercial sex – requiring them to give him all the money they made. It is further alleged that Coleman also regularly coerced and forced his victims to have sex with him.
Specifically, in March 2020, Coleman allegedly recruited one victim who had lost her job due to the pandemic. It is alleged that the victim would sometimes serve up to 10-16 clients per day, with Coleman taking all the profits. Coleman allegedly took the victim to Florida on multiple occasions and had her engage in commercial sex in Florida. It is further alleged that Coleman physically abused the victim – one time holding the victim underwater and threatening to drown her and another time requiring the victim to walk outside naked on broken glass when she disobeyed him. On one occasion, Coleman allegedly threw the victim against a wall, causing her to become concussed. On another occasion, Coleman allegedly threw a phone at the victim’s face, causing a visible injury to her eye.
According to the indictment, around March and April 2020, Coleman recruited a second victim, convincing her to come live with him after she was kicked out of her home by a relative following their disagreements around COVID-19 safety practices. This victim was unable to get a job because many businesses were closed due to COVID-19. It is alleged that the victim began engaging in commercial sex for Coleman and, when she wanted to leave Coleman threatened her – telling her that if she left, he would hurt her mother and her sibling.
It is further alleged that Coleman recruited a third victim who was homeless in the summer of 2020. The victim allegedly engaged in commercial sex and after a few days, was required to give Coleman all the money she earned. It is alleged that when the victim did something Coleman did not like or refused to engage in commercial sex, Coleman would physically and verbally assault her. On one occasion, Coleman allegedly hit the victim in the face with an open hand. Another time, Coleman allegedly struck the victim in the face, pulled her hair, strangled her and threw her to the ground.
Members of the public who believe they may be a victim of this alleged crime should contact [email protected]. If you or someone you know may be impacted or experiencing commercial sex trafficking, please visit https://polarisproject.org/ for information and resources.
The charge of sex trafficking by force, fraud, or coercion provides for a mandatory minimum sentence of 15 years and up to life in prison, at least five years of supervised release and a fine of up to $250,000. The charges of transportation of an individual for purposes of prostitution provides for a sentence of up to 10 years in prison, up to three of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy and HSI SAC Krol made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Revere and Cambridge Police Departments. Assistant U.S. Attorney Torey B. Cummings of the Civil Rights and Human Trafficking Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Louisiana Department of Education to Pay $1.26 Million to Resolve Civil Liability in Connection with Hurricane Disaster Assistance PaymentsRead the Press Release
The Louisiana Department of Education (LDE) has agreed to pay the United States $1,262,614.01 to resolve allegations that it received excess payments from the Federal Emergency Management Agency (FEMA) for the replacement of an educational facility in Louisiana that was damaged by Hurricane Katrina.
The settlement resolves allegations that, from August 2005 to December 2016, LDE received certain payments from FEMA for the replacement of a school facility damaged by Hurricane Katrina based on erroneous information. Under FEMA’s Public Assistance Program, eligible applicants are entitled either to receive repair costs or, if repair costs exceed 50% of replacement costs, receive replacement costs for a facility damaged by a disaster. According to the allegations in the government’s complaint, LDE received FEMA Public Assistance Program funds to replace the Florence J. Chester Elementary School Cafeteria Building (Chester Cafeteria Building) based on erroneous information prepared, reviewed and submitted to FEMA by a government contractor. Relying on the erroneous application for funds, FEMA obligated funding to replace the Chester Cafeteria Building even though LDE was entitled only to repair funds under the applicable FEMA rules.
“FEMA provides critical financial support to help communities recover from disasters,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates the department’s commitment to protecting the integrity of such funds and ensuring that they are disbursed in accordance with program requirements.”
“DHS-OIG along with our law enforcement partners will continue to investigate and help recover overpayments from FEMA’s disaster relief fund,” said Inspector General Joseph V. Cuffari of the Department of Homeland Security (DHS). “Today’s agreement reflects our collective commitment to protecting taxpayer dollars.”
The United States has now recovered more than $26 million in connection with the disaster assistance applications for educational facilities submitted to FEMA following Hurricane Katrina. The United States previously settled with AECOM Inc., Xavier University of Louisiana and the Roman Catholic Archdiocese of New Orleans with respect to their alleged role in the submission of false certifications for FEMA funding prepared by AECOM. The settlement with LDE resolves allegations made by the government in a lawsuit that was originally filed against AECOM and other parties, captioned United States ex rel. Robert Romero v. AECOM Inc., et al., No. 16-cv-15092 (EDLA.), to which the United States added LDE as a defendant in 2020.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana, with assistance from FEMA’s Office of Chief Counsel. Investigative support was provided by DHS-OIG, through its Major Fraud and Corruption Unit and New Orleans Resident Office.
Trial Attorneys Laura Hill, Richard Hagner, Gavin Thole and Robin Overby of the Civil Division’s Commercial Litigation Branch, Fraud Section, along with Assistant U.S. Attorney Mimi Nguyen for the Eastern District of Louisiana and Charles Schexnaildre of FEMA’s Office of Chief Counsel handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementLocal man heads to prison for stealing checks from the mailRead the Press Release
HOUSTON – A 44-year-old Houston resident has been sentenced for bank fraud, announced U.S. Attorney Alamdar S. Hamdani.
Rhett Dean Stringer pleaded guilty Feb. 15, 2022.
U.S. District Judge George C. Hanks has now ordered Stringer to serve 105 months in federal prison to be immediately followed by five years of supervised release. He was also ordered to pay restitution of $1,475 to Amegy Bank and $6,515.27 to Wells Fargo. At the hearing, the court heard evidence detailing Springer’s nine previous felony convictions. In handing down the sentence, Judge Hanks noted Stringer’s sentence is based on the actions of the person he has been, not the person he can be.
“Stringer, a serial mail thief and habitual criminal, possessed over 1,000 stolen checks,” said Hamdani. “One hundred and five months in a federal prison is wholly appropriate for the thousand times he decided to steal from the mail, violating an important and sacred trust, one as old as America - a trust in the U.S. mails.”
Law enforcement arrested Stringer on three different occasions. Each time, he was found in possession of checks that were stolen from the mail. Authorities also found counterfeit ID cards with the names and personal information of others, with Stringer’s photo, as well as credit cards in the names of others and various items of stolen mail.
At the time of his last arrest, Springer was found in possession of over 1,000 checks totaling more than $2.6 million that had been stolen from the U.S. mail. The checks he cashed totaled nearly $8,000.
U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Jay Hileman prosecuted the case.
Lexington Man Sentenced to 47 Years for Armed Drug TraffickingRead the Press Release
LEXINGTON, Ky. – A Lexington man, Chase Russell Downey, 36, was sentenced on Friday, by Chief U.S. District Judge Danny Reeves, to 47 years in prison, for drug trafficking and firearms offenses.
Following a jury trial in October 2023, Downey was convicted of conspiracy to distribute and to possess with intent to distribute more than 5 kilograms of cocaine, possession with intent to distribute more than 500 grams of cocaine, possession of firearms by a convicted felon, conspiracy to commit money laundering, and possession of firearms in furtherance of drug trafficking.
According to testimony at trial, Downey was selling kilogram quantities of cocaine in Lexington. Downey had a residence in Mexico, that he used as a base of operation in Mexico; he had a residence in Houston, Texas; and he had a residence where he stayed in Lexington. The evidence established that law enforcement conducted surveillance and encountered Downey, on several occasions. Then, on December 12, 2022, law enforcement observed Downey leaving a residence in Lexington, while carrying two large plastic bags, and going to potential meet locations, where he would then distribute cocaine. Ultimately, Downey was arrested, and a search warrant was executed on the Lexington residence. There a large amount of cocaine, other drugs, numerous loaded firearms, and $70,000 in drug trafficking proceeds were seized.
Additional investigation determined that Downey made at least fourteen trips to Mexico during the relevant period. Downey also had prior felony convictions and was on supervised release for at least one federal felony conviction at the time of the commission of these offenses.
Under federal law, Downey must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI Louisville Field Office; Erek Davodowich, Acting Special Agent in Charge, DEA Louisville Field Division; Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police (KSP); and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentencing.
The investigation was conducted by the FBI, DEA, KSP, and Lexington Police Department. Assistant U.S. Attorney Roger West is prosecuting the case on behalf of the United States.
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Jury Finds Serial Bank Robber Guilty of 2023 Bank Robbery Following Two-Day Federal TrialRead the Press Release
FLORENCE, S.C. —John Henry Stack, 76, of Myrtle Beach, was convicted of bank robbery following a two-day jury trial in federal court. Stack was on supervised release from previous federal bank robbery convictions.
Evidence presented by the Government at trial established that just before 1 p.m. on March 10, 2023, Stack entered the Anderson Brothers Bank in Aynor, placed a pillowcase on the teller’s counter, and pulled from his pocket a long-handled lighter. Stack concealed the lighter under his hand to look like a gun, pointed it at the teller, and demanded money. When the teller complied, placing $2,130 in cash in the pillowcase, Stack took the pillowcase of money and left the bank. Just before entering the bank, Stack changed clothes, placing a blue medical scrub shirt over his black jacket. He also wore a winter hat, sunglasses, and a medical-style mask during the robbery.
In the hours following the robbery, local, state, and federal law enforcement worked together to identify and apprehend the robber. Law enforcement identified the vehicle the robber drove to and from the robbery as a Ford Focus with significant passenger side damage. About 10 p.m. on March 10, an officer with Myrtle Beach Police Department stopped the Focus. Stack was driving the car, and officers found a parking hang tag for a nearby hotel hanging from the car’s rearview mirror. Records at the hotel showed Stack had rented a room that afternoon and paid in cash.
Law enforcement searched the Focus and the hotel room and found clothing consistent with that worn by Stack during the robbery, including a blue medical scrub shirt, pillowcases like the one Stack placed on the teller’s counter, a bag that contained Stack’s medications and $765 in cash, and a red long-handled lighter.
Following the stop on the Ford, Stack confessed to law enforcement that he robbed the bank. He detailed for them how he robbed the bank, what he wore while robbing the bank, and explained that he concealed the lighter under his hand to make it look like a gun and “fake out” the teller, so that she would hand over the money.
Stack previously served time in federal prison for multiple bank robberies in South Carolina and North Carolina. He was released in 2022.
More than 90 exhibits were entered into evidence during the trial, and 10 witnesses testified. The jury convicted Stack of bank robbery.
“When given the opportunity to return to society, this defendant went back to the dangerous crimes that put him in prison in the first place.” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “We will continue to pursue those that pose a threat to our community.”
“Violent crime erodes the safety of our citizens and security of our society,” said Steve Jensen, Special Agent in Charge of the FBI Columbia Field Office. “This guilty verdict is truly the culmination of the diligent investigative efforts by local, state, and federal law enforcement, as well as the U.S. Attorney’s Office. We remain committed to working tirelessly to prevent and address crime and upholding the rule of law.”
“This was truly a team effort,” said SLED Chief Mark Keel. “Law enforcement coordination and cooperation on all levels is vital to solving crimes and holding offenders accountable.”
Senior United States District Judge Cameron McGowan Currie presided over the trial and will sentence Stack after receiving and reviewing a pre-sentence report prepared by the U.S. Probation Office. Judge Currie will also sentence Stack for violating his supervised release. Stack faces a maximum penalty of 20 years in federal prison, and a fine of $250,000 on the 2023 bank robbery. Stack faces additional time in prison for violating his supervised release.
The case was investigated by Aynor Police Department, Myrtle Beach Police Department, the South Carolina Law Enforcement Division, and the FBI Columbia Field Office. Assistant U.S. Attorneys Katherine Flynn and Lauren Hummel prosecuted the case.
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Iowa Nurse Sentenced to Federal Prison after Stealing Pain Medication from at Least 50 New Mothers at Waterloo HospitalRead the Press Release
An Iowa nurse who stole pain medication from at least 50 new mothers at a Waterloo hospital was sentenced on March 27, 2024, in federal court in Cedar Rapids, Iowa. Christina Eileen Olson, formerly known as Christina Eileen Hovey, age 43, of Waterloo, received the prison term after pleading guilty on October 12, 2023, to one count of acquiring a controlled substance by misrepresentation, fraud, deception, and subterfuge, one count of adulteration and misbranding with intent to defraud and mislead, and one count of false statements relating to health care matters.
At the plea hearing, and in a plea agreement, Olson admitted that the State of Iowa granted her a nursing license in 2004. In 2017, a Waterloo hospital hired Olson to work as a nurse in its labor and delivery unit. Olson was responsible for caring for late-term pregnant women, women in active labor, and post-partum women, including women recovering from recent Caesarean section (“c-section”) surgery. Obstetricians prescribed these women Schedule II narcotics, including hydromorphone, oxycodone, and fentanyl, in order to control physical pain associated with the birthing process.
From no later than January 2022, to at least March 25, 2022, Olson used her nursing license to gain access to controlled substances in the hospital’s labor and delivery unit. Instead of administering the controlled substances to the women in pain, Olson diverted the controlled substances to herself for her own illicit drug use. Olson admitted she stole narcotics from no less than 50 victims. In order to cover up her crimes, Olson used a variety of fraudulent means, including falsely documenting that she had administered pain medication to new mothers when she had not done so. Olson also admitted to tampering with pain medication—replacing fentanyl inside a vial with saline and diverting the narcotic for her own use.
For example, on March 25, 2022, Olson was supposed to care for three new mothers and their babies during her shift from 3 a.m. to 3 p.m. One of Olson’s victims, known in court documents as “Mother-1,” had given birth via c-section on March 23, 2022, in a high-risk pregnancy. In addition to caring for Mother-1, it was Olson’s responsibility to come into Mother-1’s room and document how much the baby was eating every hour, as this is important to ensure the health of a newborn. Instead of caring for Mother-1 and her baby, however, Olson never came into the room or checked on Mother-1 or her baby or administered pain medication to Mother-1 on March 25, 2023, even though Olson documented in the hospital’s records that she was administering pain medication to Mother-1. Rather, Olson diverted the pain medication to her own use.
As a result of Olson’s crimes, Mother-1 suffered “horrible and excruciating pain” on March 25, 2023. Further, because Olson had created false health care records documenting that she had administered the pain medication to Mother-1, the next nurse on shift declined to give pain medication to Mother-1 for at least 30 additional minutes in order to ensure Mother-1 was not feigning her need for narcotics. And despite repeated requests by Mother-1’s husband for formula, Mother-1’s newborn did not receive any formula until the end of Olson’s shift.
Another c-section patient, Mother-2, did not speak fluent English. Olson stole needed pain medications from Mother-2, as well. Mother-2’s husband made multiple complaints to the hospital about Mother-2’s pain to no avail.
The next day, March 26, 2023, Olson was again working first shift at the hospital. During this shift, the hospital drug tested Olson. The drug test was positive for opiates (oxycodone and hydromorphone) and marijuana. Another nurse then found an open fentanyl vial, an open ephedrine vial, and an epidural bag in another new mother’s room. The hospital’s records revealed that Olson had removed these three items under the new mother’s name despite the fact there were no such orders for her. The fentanyl vial had puncture marks on the top and bottom stopper surfaces, and laboratory results later revealed that nearly all the fentanyl in the vial had been replaced with saline.
Olson admitted that she routinely drank alcohol and used marijuana while working at the Waterloo hospital. In order to pass a drug test at the hospital, Olson injected another person’s urine into her bladder. In September 2021, after receiving reports that Olson was disappearing from her shift for extended periods of time, the hospital’s director referred Olson to an employee assistance program. On September 9, 2021, however, Olson took a leave of absence from the hospital for about three months after she was arrested for drunk driving. Olson’s blood alcohol level at the time of her arrest was no less than .274.
In July 2022, Olson entered into a settlement agreement with the Iowa Board of Nursing under which she agreed to voluntarily surrender her nursing license for one year. As a part of her plea agreement, Olson has now forfeited her nursing license to the United States.
“Ms. Hovey callously stole pain medications from over 50 new mothers, subjecting them to additional suffering during their procedures,” said United States Attorney Timothy T. Duax. “Our office is committed to protecting new mothers, and all medical patients, from such violations of trust by prosecuting health care employees who prey on their patients.”
“Patients rely on the knowledge that they will receive FDA-approved medications to manage their pain,” said Special Agent in Charge Charles Grinstead, FDA Office of Criminal Investigations, Kansas City Field Office. “We will continue to pursue and bring to justice healthcare professionals who jeopardize patients’ health by interfering with their pain medications.”
Olson was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Olson was sentenced to one year and one day of imprisonment. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated by the Food and Drug Administration, Office of Inspector General, and the Iowa Medicaid Fraud Control Unit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-2055.
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Indy Man Sentenced to over 28 Years in Federal Prison for Molesting and Exploiting 12-Year-Old Boy While BabysittingRead the Press Release
INDIANAPOLIS- Ronald May, 54, of Indianapolis, has been sentenced to 340 months in federal prison after pleading guilty to two counts of sexual exploitation of a child.
According to court documents, the victim was a twelve-year old boy living with his mother in Indianapolis. In the spring of 2023, Ronald May and the mother worked at the same company. The mother was a store manager, and her duties occasionally required her to work overnight shifts. May volunteered to babysit her son while she was at work overnight.
Beginning on March 5, 2023, and continuing until April 28, 2023, May purchased items for the child, “wrestled” with him, required him to sleep in May’s bed together nude, showed the boy adult pornography, and discussed sexual activity with the child. Individuals with a sexual interest in children engage in these behaviors, often referred to as “grooming,” to build trusting relationships with potential victims and lower their defenses to sexual exploitation by adults.
May sexually assaulted the boy during the forced “wrestling” sessions. May also used his cellphone to take at least 39 sexually explicit images of the child.
On April 23, 2023, the mother discovered the abuse and reported May to police. After the police searched his home, May began to harass the mother by constantly calling and sending her text messages. May also drove by the mother’s home after the search and sent threatening messages including, “u can’t hide I know where u live.”
“This criminal’s actions are every parent’s nightmare. Every day, children are horrifically abused by predators like this defendant, who work insidiously to build trust—while hiding the worst of intentions,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “The exploitation of our children is utterly unacceptable in a civilized society, and pedophiles like this one will be held accountable for their crimes. Thanks to the hard work of investigators and prosecutors, this man will never harm another child.”
The U.S. Secret Service and IMPD investigated this case. The sentence was imposed by Chief U.S. District Judge Tanya Walton Pratt. Chief Judge Pratt ordered that May be supervised by the U.S. Probation Office for 20 years following his release from federal prison and pay $10,000 in restitution to the child victim.
U.S. Attorney Myers thanked Assistant U.S. Attorney Tiffany J. Preston, who prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
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Indiana Man Sentenced for Conspiracy to Traffic Fentanyl PillsRead the Press Release
COVINGTON, Ky. – A Columbus, Ind. man, Raymond Anderson, 40, was sentenced last week, by U.S. District Court Judge David Bunning, to 132 months in prison, for his part in a drug trafficking conspiracy involving over 5,000 fentanyl pills that were pressed to appear as oxycodone pills.
According to his plea agreement, between June 5 and June 8, 2023, Raymond Anderson conspired with Dominic Anderson, his cousin and co-defendant, and others to possess with intent to distribute over 400 grams of a mixture of substance containing fentanyl. On June 7, 2023, the United States Postal Inspection Service (USPIS) intercepted a package that contained over 5,000 fentanyl pills before it could be delivered to a residence in Erlanger. The next day law enforcement conducted a controlled delivery of the package to that residence. David Bradford, another co-defendant, and Dominic Anderson were arrested after each attempted to take possession of the package. Evidence revealed that Raymond Anderson had also been conspiring with Dominic Anderson, and others, to receive the package for subsequent distribution of the drugs inside.
Dominic Anderson was previously sentenced to 170 months in prison. Bradford was previously sentenced to 60 months.
Under federal law, Bradford and each of the Andersons must serve 85 percent of their prison sentences. Upon their release from prison, the Andersons will each be under the supervision of the U.S. Probation Office for five years. Bradford will be supervised for six years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Lesley Allison, Special Agent in Charge, United States Postal Inspection Service, Pittsburgh Field Division; and Erek Davodowich, Acting Special Agent in Charge, DEA, Louisville Field Division, jointly announced the sentence.
The Investigation was conducted by the USPIS, NKDSF, and DEA. Assistant United States Attorney Andrew Spievack is prosecuting the case on behalf of the United States.
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Indiana Felon Sentenced to 10 Years in Prison for Illegal Firearm Possession Following Inver Grove Heights Bank RobberyRead the Press Release
MINNEAPOLIS – An Indiana man has been sentenced to 120 months in prison followed by three years of supervised release for illegal possession of a firearm, announced United States Attorney Andrew M. Luger.
According to court documents, on December 22, 2022, two men wearing masks entered a bank in Inver Grove Heights, zip-tied two bank employees, and stole nearly $80,000 in cash. The investigation into the bank robbery led law enforcement to execute search warrants on January 11, 2023, during which law enforcement searched Deundrick Damon McIntosh, 45, and a residence at which he had stored some of his belongings. On McIntosh’s person, law enforcement found money with serial numbers matching cash from the bank robbery. Inside the residence was McIntosh’s gun with an extended magazine, along with additional bait bills stolen from the bank.
Because McIntosh has prior felony convictions, including bank robbery and domestic assault, he is prohibited under federal law from possessing firearms or ammunition at any time.
On November 13, 2023, McIntosh pleaded guilty to possessing a firearm as a felon. He was sentenced today in U.S. District Court by Judge John R. Tunheim.
This case was the result of an investigation conducted by the FBI, the Inver Grove Heights Police Department, and the Dakota County Sheriff’s Office.
Assistant U.S. Attorney Lindsey E. Middlecamp prosecuted the case.
Huntington Woman Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Laura Leigh Jones, 32, of Huntington, was sentenced today to two years and eight months in prison, to be followed by three years of supervised release, for distribution of a quantity of a mixture and substance containing methamphetamine.
According to court documents and statements made in court, on May 5 2023, Jones sold approximately 1 ounce of methamphetamine to a confidential informant at her Richmond Street residence. Jones admitted to arranging the transaction beforehand. Jones further admitted to selling quantities of methamphetamine to the informant on two other occasions in May 2023.
On May 11, 2023, law enforcement officers executed a search warrant at Jones’ residence and seized quantities of methamphetamine and fentanyl, a Tauris PT22 .22-caliber pistol, and .22-caliber ammunition. Jones admitted to the officers that she had been involved in the distribution of drugs within the Southern District of West Virginia and possessed the seized firearm for protection following the theft of fentanyl from her.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI).
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-82.
Huntington Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Tykeith Diemell Martin, 22, of Huntington, pleaded guilty today to possession with intent to distribute heroin.
According to court documents and statements made in court, on July 14, 2023, law enforcement officers executed a search warrant at a Huntington residence where Martin was staying. Officers found approximately 37 grams of heroin, an SCCY 9mm pistol and 9mm ammunition. Martin admitted that he possessed the heroin and firearm and that he intended to distribute the heroin.
Martin is scheduled to be sentenced on July 29, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff's Office.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-150.
Honduran National Indicted for Illegal Re-Entry of Removed AlienRead the Press Release
NEW ORLEANS, LOUISIANA – CARLOS ROBERTO LINARES-MENDEZ (LINARES-MENDEZ), age 44, a native of Honduras, was indicted on March 22, 2024, for illegal re-entry of a removed alien, in violation of Title 8 United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans.
According to the indictment, LINARES-MENDEZ reentered the United States illegally after being previously deported on July 25, 2018. If convicted, LINARES-MENDEZ faces up to 2 years imprisonment, up to 1 year of supervised release, up to a $250,00 fine, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of United States Immigration and Customs Enforcement and Homeland Security Investigations in investigating this matter. Assistant United States Attorney Paul J. Hubbell of the General Crimes Unit is in charge of the prosecution.
Grant Administrator to Pay $500,000 to Resolve False Claims Act Investigation Involving Misuse of Federal Funds Intended for Combating Youth Substance AbuseRead the Press Release
ALBANY, NEW YORK – Victoria Shaw, of Mahwah, New Jersey, the owner of Suffern, New York-based Wellcore, Inc., has agreed to pay $500,000 for her role in a scheme whereby she and a former Wellcore official forged signatures of community leaders on federal grant applications and then diverted for personal use federal funds intended to combat youth substance use, announced United States Attorney Carla B. Freedman.
“Protecting taxpayer dollars from fraud and abuse is one of my top priorities,” said United States Attorney Freedman. “Under the False Claims Act, Victoria Shaw paid far more in damages and penalties than she misappropriated, showing the important deterrent effect that this law can have in combatting fraud on federal programs.”
Wellcore is a not-for-profit corporation that secures and administers Drug-Free Communities (DFC) Support Program grants. DFC is a grant program that provides resources to community coalitions to prevent youth substance use. A “community coalition” consists of community leaders representing twelve sectors that organize to meet the local prevention needs of the youth and families in their communities. As part of the DFC grant-application process, applicants must submit to the federal government copies of signed agreements with representatives from each sector reflecting that the individual has agreed to represent their sector for purposes of the grant.
As part of the settlement agreement, Shaw admitted to the following:
In 2009, Wellcore applied to the Substance Abuse and Mental Health Services Administration (SAMHSA) for a DFC grant on behalf of the South Orangetown Community Awareness of Substance Abuse (SOCASA) coalition. Wellcore forged signatures of sector representatives and addended them to SOCASA’s application, including signatures of a local business owner (using the wrong first name), a physician (using the wrong spelling of the last name), and a school principal. Wellcore then submitted or caused the application to be submitted to the government, with the forgeries, to provide the false impression that each purported signatory had agreed to serve as a sector representative for SOCASA. SOCASA received the DFC grant in 2009, which Wellcore administered for SOCASA. Wellcore renewed the DFC grant on SOCASA’s behalf in 2011, 2013, and 2015.
In 2015, Wellcore applied to SAMHSA for a DFC grant on behalf of Suffern United Coalition Against Substance Abuse (SUCASA). Wellcore forged signatures of sector representatives and addended them to SUCASA’s application, including signatures of a law-enforcement official, a physician, and a school guidance counselor. Wellcore then submitted or caused the application to be submitted to the government, with the forgeries, to provide the false impression that each purported signatory had agreed to serve as a sector representative for SUCASA. SUCASA received the DFC grant in 2015, which Wellcore administered for SUCASA.
Wellcore officials also misappropriated funds from the SUCASA and SOCASA grants for unallowable costs. For example, Shaw admitted that she used SOCASA grant funds to pay $15,000 to a criminal-defense attorney to represent a family member in a personal matter and that she spent thousands of dollars of DFC grant funds to pay for gym memberships for herself and for her immediate family members. Shaw also provided evidence that an individual who was previously affiliated with Wellcore misappropriated DFC grant funds while so affiliated. Shaw provided examples of how this individual misappropriated DFC grant funds, including by spending such funds to purchase home furnishings, to pay for their child’s day camp expenses, to pay for their child’s birthday party, to pay a contractor to do home-improvement work, to pay for personal travel, and to pay for their swim club membership.
Wellcore officials had access to SOCASA and SUCASA grant funds and spent some such funds in the Northern District of New York, including for meals at several restaurants in Albany.
“This is an egregious example of misappropriating federal grant funds for personal use,” said Special Agent in Charge Naomi D. Gruchacz of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “We will continue to work with our law enforcement partners to preserve the integrity of HHS programs.”
The investigation and settlement were the result of a coordinated effort between the United States Attorney’s Office for the Northern District of New York and HHS-OIG. The United States was represented by Assistant United States Attorney Adam J. Katz.
Forty-One Individuals Charged in Massive Poly-Drug Indictment Linked to CartelRead the Press Release
A total of 23 people were taken into custody following the return of a 50-count indictment alleging cocaine, fentanyl, heroin, and meth trafficking and related crimes in the Houston and Galveston areas.
The indictment alleges they all operated under the overall control of the Jalisco New Generation Cartel (CJNG).
From Dec. 28, 2018, to April 22, 2020, the conspirators allegedly operated and distributed drugs smuggled into the United States from Mexico. The leader of one of these groups, Roque Zamudio-Mendoza, 52, of Mexico, was the main source of drugs smuggled into the United States, according to the charges. Other co-conspirators allegedly distributed the narcotics in the Houston and Galveston, Texas, areas to other locations throughout the United States, including New Orleans; Pensacola, Florida; Atlanta; Nashville, Tennessee; and Chicago.
“Countless American lives have been lost because of the Jalisco and Sinaloa Cartels,” said Attorney General Merrick B. Garland. “Over the past three years, the Justice Department has zeroed in on these cartels, and with these arrests of dozens of Jalisco Cartel associates, we are taking yet another step in our fight to dismantle these deadly organizations.”
“The fentanyl threat to America constitutes a public health, public safety, and national security threat, and it’s primarily fueled by Mexican drug trafficking organizations, including the prominent and deadly Jalisco cartel,” said Deputy Attorney General Lisa Monaco. “The charges and arrests announced today target every element of the Jalisco cartel’s trafficking network, reflecting the Justice Department’s urgent and relentless battle, along with our Mexican partners, to dismantle all aspects of the illicit fentanyl supply chain.”
“DEA’s number one operational priority is to save lives by defeating the Mexican drug cartels responsible for the deadliest drug threat our country has ever faced. The Jalisco Cartel’s drugs and violence threaten the health and safety of Americans everywhere,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “The DEA will continue to target and defeat the cartels’ U.S. distributors, like the Zamudio-Mendoza organization, which fuel drug poisonings and violent crimes across our communities. This DEA-led investigation has saved lives in Texas, and across the country, by disrupting their operations and seizing their deadly drugs, cash and assets.”
“I want to commend our U.S. Marshal Service personnel and partners for their roles in this vital operation to dismantle a network that supplied dangerous drugs to communities in south Texas on behalf of the Jalisco New Generation Cartel,” said U.S. Marshals Service (USMS) Director Ronald L. Davis. “This is just one example of the significant work we can accomplish together to confront one of the most dangerous criminal organizations in Mexico.”
“CJNG is known as one of the most powerful and dangerous criminal organizations in Mexico, characterized by a business model that involves extreme violence and trafficking in the most deadly of substances — cocaine, heroin, meth, and fentanyl,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “This massive indictment demonstrates our tireless efforts to protect our communities against this cartel’s ruthless pursuit of profit which has come at the cost of countless young lives.”
During the law enforcement operation that spanned multiple jurisdictions to include the Houston, Arlington, Corpus Christi, Brownsville and McAllen areas in Texas as well as Louisiana, Colorado, Washington, and California, authorities arrested a total of 20 people. They join three individuals who were previously in custody. Two are now deceased. Zamudio-Mendoza, who is believed to be in Mexico, and 15 others are still at large, and warrants remain outstanding for their arrests.
The indictment, returned Dec. 14, 2023, also seeks forfeiture of any illegal proceeds of the alleged crimes, estimated at $10 million. To date, records indicate authorities have seized approximately 550 kilograms of meth, 249 kilograms of cocaine, 34 kilograms of heroin, five kilograms of pentobarbital, and 22,600 fentanyl-laced pills. As part of the arrests, they also allegedly found nine firearms and several luxury Rolex watches and large amounts of U.S. currency to include $190,000 seized during a traffic stop in Porter.
All are charged with conspiracy to possess with intent to distribute cocaine, fentanyl, heroin, and meth and face up to life in prison. Each is also charged in varying counts to include conspiracy to launder monetary instruments, laundering of monetary instruments, possession with intent to distribute meth, heroin, fentanyl, and/or cocaine.
Some of the defendants have already made their appearances in federal court before U.S. Magistrate Judge Andrew Edison. Others are set for April 2 at 10 a.m. in Galveston or April 3 at either 11 a.m. or 2 p.m in Houston.
DEA and USMS investigated the case, with assistance from the Houston Police Department, Galveston Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Kenneth Cusick and Rick Hanes for the Southern District of Texas are prosecuting the case.
The arrests are the culmination of a 63-month Organized Crime Drug Enforcement Task Forces investigation (OCDETF) dubbed Operation Rainmaker that began in 2019. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Justice Department’s OCDETF webpage.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Fort Dodge Man Pleads Guilty to Illegal Purchase of FirearmRead the Press Release
A man who illegally purchased a firearm pled guilty April 1, 2024, in federal court in Sioux City.
Hunter Collier, 22, from Fort Dodge, Iowa, was convicted of making a false statement during the purchase of a firearm.
At the plea hearing, Collier admitted to purchasing a.380 ACP pistol in July of 2022, from The Iowa Outdoor Store, in Fort Dodge. At the time of purchase, Collier represented he was purchasing the firearm for himself, when in fact he was purchasing the firearm for another. Collier purchased an additional firearm for this same individual from JT Guns & Supply in Des Moines, Iowa.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Collier remains free on bond previously set pending sentencing. Collier faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and not more than three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and Shawn S. Wehde and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Webster County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-3035. Follow us on Twitter @USAO_NDIA.
Former Hospital Administrator Pleads Guilty in Identity Theft Scheme That Spanned Three DecadesRead the Press Release
A former Iowa hospital administrator who lived under a false identity for more than 30 years and caused the false imprisonment of his victim pled guilty today in federal court in Cedar Rapids, Iowa. Matthew David Keirans, age 58, from Hartland, Wisconsin, was convicted of one count of false statement to a national credit union administration insured institution and one count of aggravated identity theft.
Evidence presented at hearings in the case established that Keirans and his identity theft victim worked together at a hotdog cart in Albuquerque, New Mexico, in the late 1980s. Keirans assumed the victim’s identity and, for the next three decades, used that identity in every aspect of his life. Keirans obtained several false documents in the victim’s name, including a Kentucky birth certificate.
In 2013, Keirans obtained employment as a high-level administrator in an Iowa City hospital. Keirans provided the hospital with false identification documents during the hiring process, including a fictitious I-9 form, social security number, date of birth, and other identification documents in his victim’s name. After getting hired, Keirans worked for the hospital remotely from his residence in Wisconsin. Keirans’ access to, and roles in, the system architecture of the hospital’s computer infrastructure were “the highest it could be,” and Keirans “was the key administrator of critical systems.”
Between August 2016 and May 2022, Keirans repeatedly obtained vehicle and personal loans from two credit unions in the Northern District of Iowa using the victim’s name, social security number, and date of birth. Keirans obtained eight loans with a total value of over $200,000 from the credit unions.
Keirans also maintained deposits at a national bank. In 2019, the victim, who was homeless at the time, entered the branch of the national bank in Los Angeles, California, and told a branch manager that he had recently discovered that someone was using his credit and had accumulated large amounts of debt. The victim stated that he did not want to pay the debt and wished to close his accounts at the bank. The victim presented the bank with his true social security card, as well as an authentic State of California identification card. Due to the large amount of currency in the accounts, the branch manager asked the victim a series of security questions, which the victim was unable to answer. The national bank then called the Los Angeles Police Department (“LAPD”).
LAPD officers spoke with Keirans on the telephone, who stated he lived in Wisconsin and did not give anyone in California permission to access his bank accounts. After faxing the LAPD a series of phony identification documents, the LAPD arrested Keirans’ victim on two felony charges. The victim was charged in Keirans’ name and held without bail at the Los Angeles County Jail.
In the ensuing months, Keirans contacted the LAPD and Los Angeles District Attorney (LADA) numerous times requesting updates on the victim’s prosecution. Meanwhile, Keirans’ victim continued to assert throughout the California criminal proceedings that he was not Keirans. A California state court judge ultimately found Keirans’ victim was not mentally competent to stand trial and ordered Keirans’ victim to a California mental hospital. The California state court also ordered Keirans’ victim to receive psychotropic medication.
In March 2021, Keirans’ victim pled “no contest” to the two felony charges in exchange for a “time-served” sentence and immediate release from custody. In total, Keirans’ victim spent 428 days in county jail and 147 days in the mental hospital as a result of Keirans’ false reports to the LAPD and LADA. The state court also ordered Keirans’ victim to “use only their true name, Matthew Keirans” in the future.
After his release from jail and hospital, Keirans’ victim made numerous attempts to regain his identity. For his part, Keirans continued to make false reports and statements to law enforcement officials in Wisconsin and California.
In January 2023, after learning where Keirans was employed, the victim contacted the Iowa City hospital’s security department about Keirans. The hospital referred Keirans’ complaint to a local law enforcement agency, which assigned an experienced detective to investigate the victim’s complaint. The detective conducted an investigation and, over the course of the ensuing months, unraveled Keirans’ identity theft scheme. Among other things, the detective obtained DNA evidence that conclusively proved that Keirans was not the son of an elderly man in Kentucky, as Keirans had claimed, but that Keirans’ victim was the man’s son.
During an interview with the detective in July 2023, Keirans initially insisted that the victim was “crazy” and “needed help and should be locked up.” When the detective presented Keirans with the results of the DNA testing, however, Keirans confessed to the three-decade identity theft scheme. Keirans also admitted to providing fraudulent documents to authorities in Los Angeles from his residence in Wisconsin to aid in the arrest, prosecution, and incarceration of the victim.
Sentencing before United States District Court Chief Judge C.J. Williams will be set after a presentence report is prepared. Keirans remains in custody of the United States Marshal pending sentencing. Keirans faces a mandatory minimum sentence of 2 years’ imprisonment and a possible maximum sentence of 32 years’ imprisonment, a $1.25 million fine, and five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated by the Federal Bureau of Investigation and the University of Iowa Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-1020.
Follow us on Twitter @USAO_NDIA.
Drug Dealer Accused of Attempting to Sell over 124,000 Blue Pills Containing Fentanyl is IndictedRead the Press Release
SALT LAKE CITY, Utah – A foreign national living in Utah will appear before a U.S. Magistrate Judge today after he was indicted March 27, 2024, by a federal grand jury in Salt Lake City for federal crimes, including possession of fentanyl with the intent to distribute.
According to court documents, Gustavo Flores-Hernandez, 31, of Salt Lake City, was under investigation for allegedly distributing a controlled substance throughout Salt Lake County, Utah. On March 21, 2024, detectives with the Utah County Major Crimes Task Force (UCMC) executed a search warrant at an apartment in Salt Lake City. During the search, detectives found approximately 12,404 grams (124,044 pills) of blue pills that field-tested positive for the presence of fentanyl. Upon completion of the search, a man later identified as Flores-Hernandez, entered the apartment and was arrested. Flores-Hernandez possessed approximately $9,000 cash and 50 grams (500 pills) of blue pills that field-tested positive for the presence of fentanyl.
Flores-Hernandez is charged with possession of fentanyl with intent to distribute, and reentry of a previously removed alien. His initial court appearance on the indictment is April 1, 2024, at 2:30 p.m. in courtroom 8.4 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is being investigated jointly by a task force officer with the Utah County Major Crimes Task Force, the American Fork Police Department and the FBI Salt Lake City Field Office.
Special Assistant United States Peter Reichman of the U.S. Attorney’s Office for the District of Utah is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
California Man and Utah Man Sentenced for Drug Trafficking in IdahoRead the Press Release
POCATELLO – Hank David Langley, 42, of Visalia, California, and Thomas Joel Schooley, 39, of Hyrum, Utah, were sentenced to 11-and-a-half years and eight years in federal prison, respectively, for trafficking methamphetamine and fentanyl in eastern Idaho, U.S. Attorney Josh Hurwit announced today.
Langley and Schooley were indicted by a federal grand jury on methamphetamine trafficking charges in March 2023. According to court records, detectives with the HIDTA BADGES Task Force learned that Langley was bringing large amounts of illegal controlled substances into eastern Idaho from California. In January 2023, investigators intercepted a package sent through the U.S. Postal Service that contained 1,000 grams of methamphetamine. The package was addressed to Langley. Later the same month, Langley was arrested after a traffic stop in Pocatello. A pound and a half of methamphetamine, over 1,000 fentanyl pills, and a firearm were found in the car. Another firearm was later found in Langley’s hotel room as part of the investigation.
Based on information obtained during the investigation, detectives identified Schooley as Langley’s drug trafficking partner. On January 31, 2023, officers arrested Schooley after a traffic stop in Pocatello. Eighty grams of methamphetamine were seized during his arrest.
Langley entered a guilty plea to the charges on September 14, 2023. He was sentenced on January 16, 2024, by Chief U.S. District Judge David C. Nye to 140 months (11.5 years) in federal prison to be followed by five years of supervised release.
Schooley entered a guilty plea to the charges on October 16, 2023. He was sentenced on March 27, 2024, by Judge Nye to 97 months (8 years) in federal prison to be followed by five years of supervised release.
“Drug traffickers looking for a safe-harbor in Idaho should think again or be prepared to face the same consequences as the defendants in this case,” said U.S. Attorney Hurwit. “Idaho enjoys stellar partnerships between federal and local law enforcement and, together, we will continue to target and remove dangerous drug dealers from our communities.”
“Drug traffickers such as Mr. Langley and Mr. Schooley prey on our communities peddling poison like methamphetamine and fentanyl,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “The lengthy sentences in this case show the seriousness with which the Drug Enforcement Administration, our law enforcement partners, and the judicial system take this threat. If you deal drugs in Idaho, you will pay the price.”
U.S. Attorney Hurwit commended the investigations by the Bannock County Sheriff's Office, the Drug Enforcement Administration, the Idaho State Police, and the Pocatello Police Department, which participated as part of the HIDTA BADGES Task Force. Assistant U.S. Attorney Blythe H. McLane prosecuted the case.
The BADGES Task Force is a collaboration of federal, state, and local law enforcement agencies that focuses primarily on drug trafficking crimes in Bannock County and throughout the region.
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Bismarck Man Sentenced to 10 Years in Federal Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
BISMARCK – United States Attorney Mac Schneider announced that on April 1, 2024, Stacey Tyrone Fasthorse, age 33, from Bismarck, North Dakota, appeared before U.S. District Court Judge Daniel M. Traynor and pleded guilty to one count of Possession of a Firearm and Ammunition by a Convicted Felon. He was sentenced to serve 10 years in federal prison, followed by three years of supervised.
During the early morning hours of November 2, 2022, Fasthorse was a passenger in a motor vehicle that was stopped for a traffic violation in Bismarck, North Dakota. When the traffic stop was initiated, Fasthorse brandished a firearm and told the driver to not stop. After the vehicle was stopped, one of the other passengers informed the officer that she had a firearm that Fasthorse asked her to secrete. In addition to the loaded handgun, Fasthorse possessed methamphetamine and fentanyl. Fasthorse is prohibited from legally possessing a firearm and ammunition due to multiple North Dakota felony convictions, including aggravated assault, burglary, and delivery of a controlled substance.
“The United States Attorney’s Office for the District of North Dakota is committed to turning felons in possession of firearms into federal defendants,” Schneider said. “Violent felons with guns are a threat to law enforcement and public safety in North Dakota communities. I give credit to our career prosecutors and our federal and local partners for the strong and fair sentence in this case.”
This case was investigated by the Bismarck Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and was prosecuted by the United States Attorney’s Office, with Assistant United States Attorney David Hagler assigned to the case.
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Alex Murdaugh Sentenced to 40 Years in Prison for Federal Financial CrimesRead the Press Release
CHARLESTON, S.C. — Richard Alexander “Alex” Murdaugh, 55, of Hampton, was sentenced to 40 years in prison for 22 federal financial crimes, including conspiracy to commit wire fraud and bank fraud; bank fraud; wire fraud; and money laundering.
Murdaugh was a personal injury attorney at a law firm in Hampton, South Carolina. He pleaded guilty to 22 federal crimes in September 2023, admitting to engaging in three different schemes to obtain money and property from his personal injury clients.
In one scheme, Murdaugh admitted that from in or around July 2011 until at least October 2021, Murdaugh conspired with his banker, Russell Laffitte, to commit wire fraud and bank fraud. Murdaugh asked Laffitte to serve as personal representative or conservator for numerous personal injury clients. Laffitte collected hundreds of thousands of dollars in fees as personal representative or conservator for Murdaugh’s personal injury clients.
As part of the scheme, Murdaugh directed law firm employees to make settlement checks payable to “Palmetto State Bank.” The checks were drawn on Murdaugh’s law firm’s trust account and identified the personal injury clients on the memo lines. Murdaugh then had the checks delivered to Laffitte, who distributed the checks for Murdaugh’s benefit, including to pay off personal loans and for personal expenses and cash withdrawals. Murdaugh pleaded guilty to one count of conspiracy to commit wire and bank fraud, one count of bank fraud, and two counts of wire fraud associated with this scheme.
In November 2022, Laffitte was convicted on six federal charges for conspiracy to commit wire and bank fraud, bank fraud, wire fraud, and misapplication of bank funds for his role in this scheme. In August 2023, Laffitte was sentenced to seven years in federal prison.
In a second scheme, from at least September 2005 until at least September 2021, Murdaugh obtained money from his clients and his law firm by means of false pretenses. As part of the scheme, he routed and redirected clients’ settlement funds to personally enrich himself, including by:
- Drafting, or directing law firm employees to draft, disbursement sheets to send settlement funds to Murdaugh’s bank accounts without proper disclosure or client or law firm approval;
- Claiming funds held in the law firm’s trust account as attorney’s fees and directing the disbursement of those funds for his benefit;
- Claiming and collecting attorney’s fees on fake or nonexistent annuities;
- Creating fraudulent “expenses” that were never incurred on client matters and directing the disbursement of settlement funds to pay the cited costs, including claimed medical expenses, construction expenses, and airline expenses;
- Directing other attorneys with whom he was associated on client matters to disburse attorney’s fees directly to him, rather than appropriately routing the fees through the law firm; and
- Intercepting insurance proceeds intended for beneficiaries and depositing them directly into his personal account.
Murdaugh admitted that in September 2015, he created a bank account in the name of “Forge,” presenting as a legitimate corporation for structuring insurance settlements. Murdaugh was the owner of and the only authorized signer on this “fake Forge” account. From in or around May 2017 through at least July 2021, Murdaugh funneled stolen personal injury settlements through the “fake Forge” account. Murdaugh pleaded guilty to three counts of wire fraud and 14 counts of money laundering relating to the theft of client money using the “fake Forge” account.
Finally, Murdaugh admitted that, from in or around February 2018 until at least October 2020, Murdaugh conspired with Beaufort personal injury attorney Cory Fleming to defraud the estate of Murdaugh’s former housekeeper and Murdaugh’s homeowner’s insurance carriers. In February 2018, Murdaugh’s housekeeper passed away after a fall at Murdaugh’s home. Murdaugh recommended that the housekeeper’s estate hire Fleming to represent them and file a claim against Murdaugh to collect from his homeowner’s insurance policies.
Murdaugh’s insurance companies settled the estate’s claim for $505,000 and $3,800,000. Murdaugh admitted that he directed Fleming to retain hundreds of thousands of dollars in settlement funds for their own personal benefit, representing those funds as “prosecution expenses” to the state court. Murdaugh and Fleming knew the funds did not belong to them and that there were no legitimate prosecution expenses. Murdaugh and Fleming reduced Fleming’s attorney’s fees, and Murdaugh knew he would steal the additional funds.
Murdaugh directed Fleming to draft three checks totaling $3,483,431.95 made payable to “Forge.” Murdaugh then deposited the checks into his “fake Forge” account and used the funds for his own personal enrichment. The estate did not receive any of the settlement funds. Murdaugh pleaded guilty to conspiracy to commit wire fraud for his role in this scheme.
Fleming pleaded guilty to a conspiracy charge for his role in this scheme. In August 2023, he was sentenced to 46 months in federal prison.
“Murdaugh’s victims turned to him when they were particularly vulnerable, after suffering serious injuries and losing loved ones,” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “They put their trust in him as their lawyer, and he betrayed them. His crimes were cold, calculated, and brazen, and he earned every day of his 40-year sentence. We hope that it provides at least some closure to his victims.”
"Justice was served today and a sentence of this magnitude should caution anyone who engages in financial crimes," said Steve Jensen, Special Agent in Charge of the FBI Columbia Field Office. "The defendant's actions undermine the integrity of our financial systems and cause distrust. Our message is clear: We will hold those who commit financial fraud accountable, and they will be met with severe consequences."
“Law enforcement working together at every level is vital to solving crimes and holding offenders accountable,” said Chief Mark Keel of the South Carolina Law Enforcement Division. “I’ve always said from day one of this case, and every case SLED investigates, is about following the facts no matter where they may lead. Today is another step forward for justice in South Carolina.”
United States District Judge Richard M. Gergel imposed the sentence:
- 360 months for conspiracy to commit wire fraud and bank fraud; bank fraud; and two counts of wire fraud affecting a financial institution, all to run concurrently.
- 240 months for conspiracy to commit wire fraud and three counts of wire fraud, to run concurrently to each other and to the 360-month sentences.
- 120 months for 14 counts of money laundering, to run concurrently to each other and consecutive to the 360- and 240-month sentences.
Murdaugh’s 480-month federal sentence will be served concurrently with his active state sentences for the murders of his wife and son and the state financial offenses to which Murdaugh previously pleaded guilty.
The court also ordered Murdaugh to pay $8,762,731.88 in restitution to his victims and imposed a $10,034,377.95 forfeiture order for Murdaugh’s ill-gotten gains.
The case was investigated by the FBI Columbia Field Office and the South Carolina Law Enforcement Division. Assistant U.S. Attorneys Emily Limehouse, Kathleen Stoughton, and Winston Holliday are prosecuting the case.
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Albuquerque Man Pleads Guilty to Possession of Child PornRead the Press Release
ALBUQUERQUE – An Albuquerque man has pleaded guilty in federal court to possessing child pornography. In his plea agreement, William Dane Day, 59, admitted that he downloaded images and videos depicting minors engaging in sexually explicit conduct, including prepubescent minors.
The Court ordered that Day remain on condition of release pending sentencing, which has been scheduled for July 26, 2024. At sentencing, Day faces up to 60 months in prison for possession of child pornography involving a prepubescent minor or a minor who had not attained 12 years of age. Upon his release from prison, Day will be subject to not less than five years of supervised release and must register as a sex offender.
There is no parole in the federal system.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation, made the announcement today.
The FBI Albuquerque Field Office investigated this case with assistance from the Albuquerque Police Department. Assistant U.S. Attorneys Maria Elena Stiteler and Jesse Pecoraro are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
View the Plea Agreement# # #
41 charged in massive poly-drug indictment linked to cartelRead the Press Release
GALVESTON, Texas – A total of 23 people were taken into custody following the return of a 50-count indictment alleging cocaine, fentanyl, heroin and meth trafficking and related crimes in the Houston and Galveston areas, announced U.S. Attorney Alamdar S. Hamdani.
The indictment alleges they all operated under the overall control of the Jalisco New Generation Cartel.
From Dec. 28, 2018, to April 22, 2020, the conspirators allegedly operated in and out of the Southern District of Texas (SDTX) and distributed drugs smuggled into the United States from Mexico.
The leader of one of these groups – Roque Zamudio-Mendoza, 52, Mexico, was the main source of drugs smuggled into the United States, according to the charges. Other co-conspirators allegedly distributed the narcotics in the Houston and Galveston areas to other locations throughout the United States, including New Orleans, Louisiana; Pensacola, Florida; Atlanta, Georgia; Nashville, Tennessee; and Chicago, Illinois.
During the law enforcement operation that spanned multiple jurisdictions to include the Houston, Arlington, Corpus Christi, Brownsville and McAllen areas in Texas as well as Louisiana, Colorado, Washington and California, authorities arrested a total of 20 people. They join three individuals who were previously in custody. Two are now deceased. Zamudio-Mendoza, who is believed to be in Mexico, and 15 others are still at large and warrants remain outstanding for their arrests.
Some have already made their appearances in federal court before U.S. Magistrate Judge Andrew Edison. Others are set for April 2 at 10 a.m. in Galveston or in Houston April 3 at either 11 a.m. or 2 p.m.
The indictment, returned Dec. 14, 2023, also seeks forfeiture of any illegal proceeds of the alleged crimes, estimated at $10 million. To date, records indicate authorities have seized approximately 550 kilograms of meth, 249 kilograms of cocaine, 34 kilograms of heroin, five kilograms of pentobarbital and 22,600 fentanyl-laced pills. As part of the arrests, they also allegedly found nine firearms and several luxury Rolex watches and large amounts of U.S. currency to include $190,000 seized during a traffic stop in Porter.
All are charged with conspiracy to possess with intent to distribute cocaine, fentanyl, heroin and meth and face up to life in prison. Each is also charged in varying counts to include conspiracy to launder monetary instruments, laundering of monetary instruments, possession with intent to distribute meth, heroin, fentanyl and/or cocaine.
The arrests are the culmination of a 63-month Organized Crime Drug Enforcement Task Forces investigation (OCDETF) dubbed Operation Rainmaker that began in 2019.
The Drug Enforcement Administration and U.S. Marshals Service conducted the OCDETF investigation along with Houston Police Department, Galveston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorneys Kenneth Cusick and Rick Hanes are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
$6 Million Worth of Oregon Properties Forfeited in Connection to Interstate Marijuana Trafficking OrganizationRead the Press Release
PORTLAND, Ore.—The U.S. Attorney’s Office for the District of Oregon announced today that it has forfeited on behalf of the United States 14 real properties located in Oregon—together worth more than $5.7 million—that were used by an interstate drug trafficking organization to illegally grow marijuana for redistribution and sale in other states. The owner of a 15th property agreed to pay the government $400,000 in lieu of having their property forfeited.
Beginning at an unknown time, and continuing until September 2021, the properties, located in Clatsop, Columbia, Linn, Marion, Polk, and Yamhill counties, were used as illegal marijuana grow houses by an interstate drug trafficking organization led by Fayao “Paul” Rong, 53, of Houston, Texas. On July 19, 2023, after previously pleading guilty to conspiracy to manufacture marijuana, Rong was sentenced to 30 months in federal prison and five years’ supervised release.
“This prosecution and yearslong effort to forfeit properties used by the Rong organization to grow and process thousands of pounds of marijuana demonstrate the long reach of our commitment to holding drug traffickers accountable and mitigating the damage these criminal organizations inflict on neighborhoods and communities,” said Natalie Wight, U.S. Attorney for the District of Oregon.
“The goal of drug traffickers is to generate profits through their crimes,” said David F. Reames, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), Seattle Field Division. “The DEA and our partners at the U.S. Attorney’s Office for the District of Oregon and the Oregon State Police worked hard in this case to investigate and forfeit the ill-gotten gains of this organization, benefiting our entire community.”
“The Oregon State Police is committed to disrupting and dismantling drug trafficking organizations operating within our state. Our priorities include safeguarding Oregon’s natural resources and mitigating the impact illicit marijuana has on them,” said Tyler Bechtel, Oregon State Police (OSP) Lieutenant. “This case is a great example of the results that can be achieved when all levels of law enforcement work together toward our common goals.”
According to court documents, Rong purchased numerous residential houses in Oregon using several different identities and, with others in his organization, used them to grow and process marijuana and prepare it for transport to states where its use remains illegal. In a 12-month period beginning August 2020, Rong’s organization trafficked more than $13.2 million dollars in black market marijuana.
In early September 2021, a coordinated law enforcement operation led by DEA and OSP targeted Rong’s organization. Federal, state, and local law enforcement partners executed search warrants on 25 Oregon residences and Rong’s home in Houston. During the precipitating investigation and ensuing search warrants, investigators seized nearly 33,000 marijuana plants, 1,800 pounds of packaged marijuana, 23 firearms, nine vehicles, $20,000 in money orders, and more than $591,000 in cash.
The Rong organization takedown followed a 14-month investigation initiated by OSP after the agency learned of excessive electricity use at the various properties, which, in several instances, resulted in transformer explosions. Multiple citizen complaints corroborated law enforcement’s belief that Rong was leading a large black market marijuana operation. With the assistance of the Columbia and Polk County Sheriff’s Offices, OSP found associated marijuana grows in Clatsop, Columbia, Linn, Marion, Multnomah, and Polk Counties. On February 18, 2022, Rong was arrested by DEA agents in Houston.
This case was investigated by DEA, OSP, and the U.S. Marshals Service with assistance from the FBI; Homeland Security Investigations; Oregon Department of Justice; Portland Police Bureau; the Yamhill, Clatsop, Marion, Multnomah, Columbia, and Polk County Sheriff’s Offices; Central Oregon Drug Enforcement Team; and Linn Interagency Narcotics Enforcement Team. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon. Forfeiture proceedings were handled by the U.S. Attorney’s Office’s Asset Recovery and Money Laundering Division.
The proceeds of forfeited assets are deposited in the Justice Department’s Assets Forfeiture Fund (AFF) and used to restore funds to crime victims and for a variety of other law enforcement purposes. To learn more about the AFF, please visit: https://www.justice.gov/afp/assets-forfeiture-fund-aff.
This prosecution is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the U.S. by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
29 March 2024
Youth Wrestling Coach and Referee from Ocean County Sentenced to 87 Months in Prison for Distribution of Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was sentenced to 87 months in prison for distributing child pornography, U.S. Attorney Philip R. Sellinger announced today.
Alec Donovan, 26, of Brick, New Jersey, a youth wrestling coach and referee, previously pleaded guilty before U.S. District Judge Zahid N. Quraishi to an information charging him with one count of distribution of child pornography. Judge Quraishi imposed the sentence on March 28, 2024, in Trenton federal court.
According to documents filed in this case and statements made in court:
From January 2021 through March 2021, Donovan used an internet-based application to exchange multiple images and videos of child sexual abuse, including depictions involving pre-pubescent children. Donovan also used the web-based messaging application to solicit and engage in conversations with minors, including requesting nude photographs from the minors and sending nude photographs to them.
In addition to the prison term, Judge Quraishi sentenced Donovan to 30 years of supervised release.
U.S. Attorney Sellinger credited the Newark Child Exploitation and Human Trafficking Task force, under the direction of FBI Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Michelle L. Goldman of the General Crimes Unit in Newark.
Wilburton Couple Sentenced for Role in Murder-For-Hire SchemeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Courtney Nicole Deatherage, age 28, and Dustin Keith Deatherage, 27, both of Wilburton, Oklahoma, were sentenced for their roles in a murder-for-hire plot.
On March 27, 2024, Courtney Deatherage was sentenced to 120 months in prison for one count of Use of Interstate Facility in Murder-for-Hire, and Dustin Deatherage was sentenced to 97 months in prison for one count of Use of Interstate Facility in Murder-for-Hire.
The charges arose from investigations by the Oklahoma State Bureau of Investigation, the Latimer County Sheriff’s Office, and the Wilburton Police Department.
In July of 2023, the Deatherages each pleaded guilty to the charge. According to investigators, on January 21, 2021, Courtney Deatherage contacted an individual to request a murder-for-hire and to negotiate terms. Over text messages, Courtney Deatherage specified the target, gave instructions, and agreed to an upfront fee, with the same amount to be paid out after the murder. On January 22, 2021, Courtney and Dustin met in person with the individual they believed they were hiring to perform the murder, paid a down payment on the contract, and produced a loaded 12-guage shotgun to be used in the murder. Courtney and Dustin Deatherage were arrested by law enforcement shortly after completing their transaction, and the target of the murder-for-hire plot was unharmed.
United States Attorney Christopher J. Wilson commended the OSBI and local law enforcement for their work in uncovering the defendants’ scheme.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. The Deatherages will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve non-paroleable sentences of incarceration.
Assistant United States Attorney Patrick M. Flanigan represented the United States.
Weston Man Pleads Guilty to Fraud Offense Stemming from $890K Embezzlement SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that CHARLES M. AMEER, 64, of Weston, pleaded guilty yesterday before U.S. District Judge Stefan R. Underhill in Bridgeport to a fraud offense stemming from an $890,000 embezzlement scheme.
According to court documents and statements made in court, from 2017 through 2022, Ameer was the Chief Financial Officer at Indeco North America, a wholly owned subsidiary of Indeco Ind. S.P.A, headquartered in Milford. From 2014 until February 2018, Ameer served as the treasurer of the Weston Soccer Club (“WSC”), located in Weston. Beginning in 2016, Ameer misappropriated at least $38,500 from the WSC and used the funds for personal expenses. In October 2017, Ameer created a $40,000 check, which was drafted on Indeco’s bank account and made payable to the order of “WSC,” and used the check to reimburse the WSC for the funds he had taken. Ameer subsequently opened a line of credit at a bank in WSC’s name, without WSC’s authorization or knowledge, and transferred funds into the WSC account that he had stolen from to further conceal his theft.
Between October 2018 and July 2022, Ameer created 14 additional checks, in the total amount of $850,000, which were drafted on Indeco’s bank account and made payable to him. He deposited the checks into his personal bank account and used the funds for his own benefit.
Ameer pleaded guilty to one count of wire fraud, an offense that carries a maximum term of imprisonment of 20 years. Judge Underhill scheduled sentencing for June 20.
Ameer was arrested on a criminal complaint on August 31, 2023. He is released on a $500,000 bond pending sentencing.
This investigation has been conducted by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Heather Cherry.
Waite Park Man Pleads Guilty to Armed Bank RobberyRead the Press Release
ST PAUL, Minn. – A Waite Park man has pleaded guilty to a St. Cloud bank robbery, announced U.S. Attorney Andrew M. Luger.
According to court documents, on May 6, 2021, Ray Reco McNeary, 38, entered a Wells Fargo Bank in St. Cloud and alleged that there was fraud on his bank account. After the bank manager was unable to locate any accounts belonging to McNeary, McNeary became enraged and demanded that $60,000 in cash be taken from the vault and placed in a bank bag. The bank manager activated the silent panic alarm, notifying law enforcement of a problem at the bank.
According to court documents, upon arrival, St. Cloud police officers learned that five employees of the bank were being held hostage by McNeary. Multiple times throughout the incident, McNeary held a pair of scissors against the bank manager’s neck and back. FBI hostage negotiators spoke with McNeary repeatedly during what turned out to be an eight-hour standoff. During the course of negotiations, four of the employees were allowed to leave the bank. The standoff ended at approximately 10:24 p.m. when the bank manager fled the bank and law enforcement moved into the bank and arrested McNeary.
McNeary pleaded guilty today to one count of armed bank robbery in U.S. District Court before Judge Jeffrey M. Bryan. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by the FBI and the St. Cloud Police Department.
Assistant U.S. Attorney David P. Steinkamp is prosecuting the case.