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19 March 2024
Former Finance Director Charged for Role in $10M Foreign Bribery SchemeRead the Press Release
A federal grand jury in the Southern District of Florida returned an indictment today charging a former finance director of the Latin America division of Stericycle Inc., an international waste management company headquartered in Lake Forest, Illinois, for his role in an alleged scheme to pay over $10 million in bribes to foreign officials in Brazil, Mexico, and Argentina.
According to court documents, between 2011 and 2016, Abraham Cigarroa Cervantes, 51, of Mexico, and others allegedly caused hundreds of bribe payments to be made to government officials in Brazil, Mexico, and Argentina to obtain and retain business and to secure improper advantages for Stericycle, a U.S. securities issuer, in connection with providing waste management services. As part of the scheme, employees at Stericycle’s offices in Mexico, Brazil, and Argentina allegedly made bribe payments, typically in cash, and calculated the amount of the bribes as a percentage of underlying contract payments made by or owing from a government customer. In all three countries, Cigarroa and his co-conspirators allegedly tracked the bribe payments through spreadsheets and described the bribes through code words and euphemisms. To conceal the corrupt payments, Cigarroa and others allegedly maintained false books, records, and accounts that did not accurately and fairly reflect the transactions and dispositions of Stericycle’s assets, causing Stericycle to falsely record bribe payments as legitimate expenses in its consolidated books, records, and accounts. Cigarroa also allegedly submitted and maintained falsified Sarbanes-Oxley certifications and business unit representation letters falsely attesting that the books, records, and accounts were accurate.
Cigarroa is charged with one count of conspiracy to violate the Foreign Corrupt Practices Act’s (FCPA) anti-bribery provisions and one count of conspiracy to violate the FCPA’s books and records provisions. If convicted, he faces a maximum penalty of five years in prison on each count.
In April 2022, Stericycle admitted to bribing officials in Mexico, Brazil, and Argentina in violation of the FCPA’s anti-bribery and books and records provisions. Stericycle entered into a three-year deferred prosecution agreement with the Criminal Division’s Fraud Section and agreed to pay more than $84 million as part of a coordinated resolution with the Justice Department, the Securities and Exchange Commission, and authorities in Brazil.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Markenzy Lapointe for the Southern District of Florida; and Assistant Director in Charge James Smith of the FBI New York Field Office made the announcement.
The FBI New York Field Office is investigating the case.
Trial Attorneys Paul A. Hayden and Jil Simon of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Manolo Reboso for the Southern District of Florida are prosecuting the case. The Justice Department’s Office of International Affairs and authorities in Brazil and Mexico provided assistance in the matter.
The Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former DuBois Resident Sentenced to More than Five and a Half Years in Prison for Methamphetamine TraffickingRead the Press Release
PITTSBURGH, Pa. – A former resident of DuBois, Pennsylvania, was sentenced in federal court on March 14, 2024, to 70 months of imprisonment, to be followed by three years of supervised release, on his convictions for violating federal narcotics laws resulting from a nine-month Title III wiretap investigation into drug trafficking in and around Jefferson, Clearfield, and Allegheny counties, United States Attorney Eric G. Olshan announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Brent Coder, 57.
According to information presented to the Court, Coder sold two ounces of methamphetamine to a confidential source on August 19, 2020. A month later, Pennsylvania State Police troopers seized approximately one and a half pounds of methamphetamine from Coder’s vehicle, resulting in Coder’s indictment. Federal agents executed a search warrant at Coder’s residence on August 31, 2021, with investigators seizing an additional pound of methamphetamine and four firearms during the search.
Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Drug Enforcement Administration, Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Service, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police for the investigation leading to the successful prosecution of Coder. The Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and Clarion Borough Police Department also assisted.
This prosecution 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.
Florida Woman Admits to Elder Financial FraudRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Spring Hill, Florida, woman has pled guilty to defrauding a Berkeley County man who suffered from dementia.
Wendy Renee Bunner, age 48, pled guilty on Monday to one count of money laundering. According to court documents and statements made in court, Wendy Bunner conspired with her husband to obtain a $280,318.73 cashier’s check from a United Bank account belonging to the elderly victim to purchase real estate in Charles Town, West Virginia.
Samuel Bunner, husband of Wendy Bunner, previously pled guilty to bank fraud and aggravated identity theft. According to court documents, Samuel Bunner defrauded the same victim of $1,906,229 by selling his real estate, emptying his investment and bank accounts, and opening a credit card in his name. Together, the Bunners used the money taken from the victim for their own personal benefit and purchased homes, campers, cars, and hundreds of thousands of dollars’ worth of consumer goods.
“The Bunners took advantage of a vulnerable victim to fund a lifestyle that they otherwise could not have afforded,” said United States Attorney William Ihlenfeld. “The U.S. Attorney’s Office will continue to pursue those who prey upon the elderly to ensure that there is accountability when this type of conduct occurs.”
Samual Bunner faces up to thirty (30) years in prison and Wendy Bunner faces up to ten (10) years in prison. Sentencing hearings for each will take place later this year.
Assistant U.S. Attorney Eleanor Hurney is prosecuting the case on behalf of the government.
The investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. The Jefferson County Prosecutor’s Office, the U.S. Attorney’s Office in the Middle District of Florida, and FBI-Tampa assisted with the matter.
U.S. Magistrate Judge Robert W. Trumble presided.
Final Defendant Sentenced to over 12 Years in Prison for Role in Conspiracy to Distribute over 1,000 Pounds of MethamphetamineRead the Press Release
RENO – The final defendant involved in a large methamphetamine trafficking conspiracy was sentenced Monday by United States Chief District Judge Miranda M. Du to 145 months in prison for his role in a large methamphetamine trafficking conspiracy.
According to court documents, in 2014, Nassrollah Behmard fled to Mexico to avoid being arrested for his involvement in a Washoe County drug trafficking case. In March 2022, the FBI learned that Behmard, who was still in Mexico, was conspiring with co-conspirators located in Reno and Los Angeles to distribute multi-pound quantities of methamphetamine in the Reno area. From March 2022 to June 2022, Behmard and his co-conspirators were responsible for distributing over 140 pounds of methamphetamine.
On June 6, 2022, Behmard arranged with co-conspirator Ramon Guadalupe Sanchez Maldonado to deliver 100 pounds of methamphetamine from Los Angeles to Reno. Law enforcement intercepted the methamphetamine and traced it back to a clandestine lab located in the Los Angeles area. Law enforcement dismantled the lab and seized approximately 1,000 pounds of methamphetamine.
In June 2022, a federal grand jury in Reno charged Behmard, also known as “Benny” and “Michael Holt,” and his co-conspirators Sanchez Maldonado, Melissa Ann Longo, Owen Eugene Dick, and Jesus Sanchez Vargas with conspiracy to distribute methamphetamine and related offenses including money laundering. Maldonado was sentenced to 120 months in prison, Longo was sentenced to 57 months in prison, and Dick was sentenced to 57 months in prison.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The FBI Northern Nevada Safe Streets Task Force, comprised of the FBI, Reno Police Department, Carson City Sheriff’s Office, Nevada Gaming and Control Board, Nevada Department of Corrections, and the Douglas County Sheriff’s Office investigated the case with assistance by the FBI Los Angeles Field Office, the San Bernardino Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Andolyn Johnson prosecuted the case.
This case was 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. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
If you have information of potential drug trafficking, call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit an anonymous tip online at TIPS.FBI.GOV.
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Fayette County Man Sentenced to 18 Years for Production of Child PornographyRead the Press Release
LEXINGTON, Ky. – A Lexington man, Dakota Douglas Himes, 27, was sentenced on Monday, by U.S. District Judge Gregory Van Tatenhove, to 18 years in prison, for attempted production of child pornography.
According to his plea agreement, from February 23 to February 27, 2019, Himes engaged in online chats with a New Jersey man who had a toddler son. In the chats, the New Jersey man talked about abusing the toddler and discussed his preferred method of sharing sexually explicit imagery of the toddler, prompting Himes to ask if he could see “live” sexually explicit images of the toddler. Although the New Jersey man did not create new images in response to Himes’s request, he sent Himes an image of the toddler’s genitals that had been taken earlier in the day. In his guilty plea, Himes admitted that he attempted to receive sexually explicit images of a minor via the Internet and had previously received sexually explicit images of the minor via the Internet.
Under federal law, Himes 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 for 25 years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office; and Russell Coleman, Kentucky Attorney General, jointly announced the sentence.
The investigation was conducted by the FBI, with computer-forensic assistance from the Kentucky Attorney General’s Office. Assistant U.S. Attorney Mary Melton is prosecuting the case on behalf of the United States.
The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 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 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 as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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El Departamento de Justicia llega a un acuerdo con una imprenta con sede en North Carolina que resuelve acusaciones de discriminación relacionada con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Printful Inc. (Printful), una empresa de impresión y logística a la carta con sede en Charlotte, Carolina del Norte. El acuerdo resuelve la determinación del Departamento que Printful infringió la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) cuando discriminó a un trabajador por motivos de su estatus de ciudadanía a la hora de verificar su permiso para trabajar, y al tener una política discriminatoria que requiere que los no ciudadanos de los EE. UU. presenten documentos específicos para demostrar su permiso para trabajar.
«Al verificar su permiso para trabajar, las empresas no pueden rechazar documentos válidos de los trabajadores ni tampoco requerir que entreguen documentos específicos o innecesarios, con base en su estatus de ciudadanía», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia seguirá responsabilizando a los empleadores que vulneren las leyes de derechos civiles de nuestra nación».
Las investigaciones del Departamento determinaron que Printful rechazó la licencia de conducir y la tarjeta del Seguro Social válidas de un residente permanente legal, aunque esos documentos eran suficientes para demostrar su permiso para trabajar, y le exigió que presentara su tarjeta de residente permanente (a veces denominada «tarjeta verde»). Por otra parte, la Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés), de la División de Derechos Civiles, también concluyó que Printful mantuvo una política durante al menos un año, eso es, desde julio del 2022 hasta julio del 2023, de exigir que los no ciudadanos de los EE. UU. presentasen documentos específicos para demostrar su permiso para trabajar mientras ofrecía una selección de documentos a ciudadanos de los EE. UU. Las leyes federales permiten a todos los trabajadores elegir la documentación válida y legalmente aceptable que desean presentar para demostrar su identidad y permiso para trabajar, independientemente de su estatus de ciudadanía, estatus migratorio o nacionalidad de origen. Los empleadores no pueden exigir más documentos de los necesarios ni especificar la documentación que prefieren ver como parte de este proceso.
En virtud de los términos del acuerdo, Printful pagará sanciones civiles a los Estados Unidos y pagos retroactivos al trabajador que presentó una reclamación. El acuerdo también requiere que Printful capacite a su personal en cuanto a los requisitos antidiscriminatorios de la INA, que revise sus políticas de empleo y que se someta a los requisitos de supervisión y declaración departamentales.
La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Puede obtener más información sobre cómo los empleadores pueden evitar la discriminar al verificar el permiso para trabajar de alguien en el sitio web de la IER. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscribirse a un seminario en línea gratuito o visualizar una presentación a la carta; enviar un correo electrónico a [email protected]; o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico desde la IER.
Durham man sentenced for possession of a firearmRead the Press Release
WINSTON-SALEM – A North Carolina man was sentenced today to 224 total months of imprisonment, after pleading guilty to one count of felon in possession of a firearm, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
ARMAND SAQUAN SUFYAN LEWIS-LANGSTON, age 26, of Durham, North Carolina, was sentenced by the Honorable Thomas D. Schroeder, United States District Judge in the United States District Court for the MDNC to a 200-month term of imprisonment after pleading guilty on December 11, 2023, to felon in possession of a firearm, a violation of Title 18, United States Code, Sections 922(g)(1) and 924(e). He was sentenced to an additional twenty-four-month term of imprisonment to run consecutively to the 200-month term for violating the terms of his federal supervised release.
According to court records, LEWIS-LANGSTON, then on federal supervised release after serving a 26-month term of imprisonment for felon in possession of a firearm, was found asleep in a car by a Durham Police Department (DPD) officer on October 22, 2020, with a Cugir 7.62x39 Draco assault-style pistol. He was arrested and charged by the state and bonded out of custody.
On November 17, 2020, officers with the DPD Select Enforcement Team arrested LEWIS-LANGSTON at a residence on Scheer Avenue in possession of a Kel-Tec Sub2000 9mm foldable rifle. This firearm was forensically linked to the shooting of an off-duty Durham County Sheriff’s Office deputy that occurred on November 14, 2020. Specifically, a forensic firearms examiner with DPD microscopically compared 9mm cartridge casings recovered from the November 14, 2020, shooting of the deputy with a cartridge casing test fired from the Kel-Tec Sub2000 9mm foldable rifle and determined that, based on similar class characteristics and sufficient agreement of individual characteristics, the 9mm cartridge casings recovered from the scene on November 14, 2020, were fired from the Kel-Tec Sub2000 9mm foldable rifle.
At the time of these offenses, LEWIS-LANGSTON had been previously convicted of multiple felonies. In connection with these offenses, LEWIS-LANGSTON was sentenced to multiple terms of imprisonment exceeding one year. Thus, at the time of the offenses, LEWIS-LANGSTON was legally barred from possessing a firearm due to his status as a felon.
The case was investigated by the Federal Bureau of Investigation’s Raleigh-Durham Safe Streets Task Force (SSTF), the Durham Police Department, and the Durham County Sheriff’s Office. The lead investigator was an FBI Task Force Officer from the Durham County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney JoAnna G. McFadden.
Since 1992, the FBI’s Safe Streets Violent Crime Initiative has successfully aligned FBI Agents, state and local law enforcement investigators, and federal and state prosecutors onto SSTFs to reduce violent crime. This nationwide initiative brings resources together in a “force multiplier concept” and utilizes the expertise of each agency. SSTFs focus primarily upon street gang and drug-related violence through sustained, proactive, coordinated investigations to obtain prosecutions on violations such as racketeering, drug conspiracy, and firearms violations.
A copy of this press release will be posted on our website. Related court documents and information can be found on the website of the U.S. District Court for the Middle District of North Carolina or on PACER by searching for Case Nos. 1:23-cr-321-1 and 1:16-cr-10-1.Driving Instructor Who Bribed RMV Road Test Examiner Pleads GuiltyRead the Press Release
BOSTON – A driving instructor pleaded guilty today to conspiring to defraud the Registry of Motor Vehicles (RMV) resulting in driver’s licenses being issued to applicants who did not pass the road test.
Ngan Dinh, 48, of Boston, pleaded guilty to one count of conspiracy to commit honest services mail fraud. U.S. District Court Judge Patti B. Saris has scheduled a sentencing hearing for June 5, 2024.
Dinh paid a road test examiner at the Brockton RMV service center to misrepresent to the RMV that certain driver’s license applicants had passed their road test when in fact they had not. Some of the applicants did not even show up to take the test. As a result of the fraud, the RMV mailed driver’s licenses to applicants who had not proved they were qualified.
The charge of conspiracy to commit honest services mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a $250,000 fine. 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; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; and Christopher A. Scharf, Special Agent in Charge, U.S. Department of Transportation Office of Inspector General, Northeast Region, made the announcement today. Assistant U.S. Attorneys Christine J. Wichers and Adam W. Deitch of the Public Corruption & Special Prosecution Unit are prosecuting the case.
District Felon, a Member of ‘No Rats Allowed,’ Pleads Guilty to Fentanyl Trafficking and Possession of an Illegal FirearmRead the Press Release
WASHINGTON – Keith Jones, 27, of Washington D.C., pleaded guilty today for participating in a long-running drug trafficking conspiracy that distributed fentanyl throughout the District of Columbia, announced U.S. Attorney Matthew M. Graves and FBI Special Agent in Charge David J. Scott of the FBI Washington Field Office.
Jones, a member of the violent No Rats Allowed crew, pleaded guilty before U.S. District Judge Carl J. Nichols to conspiring to distribute 40 grams or more of a mixture containing fentanyl and unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. Judge Nichols scheduled sentencing for June 10, 2024, where he will face a five-year mandatory minimum sentence. At the time of the trafficking offenses, he was on supervised probation for a robbery conviction out of Prince George’s County, Maryland.
The plea follows a lengthy investigation by the Metropolitan Police Department’s Narcotics Enforcement Unit (NEU), FBI’s Washington Field Office, and the U.S. Attorney’s Office for the District of Columbia. The law enforcement partnership identified a crew of young men operating within on the 200 block of K Street, Southwest, with firearms, large amounts of U.S. currency, and illegal narcotics. The members of the group wore matching insignia on clothing printed with “NO RATS ALLOWED” or “N.R.A.” Jones, aka “Chief,” and other members of the N.R.A. crew used several townhouses on the block as stash locations or “trap houses” for narcotics and firearms. Many of Jones’ N.R.A. associates have been arrested and successfully prosecuted for firearms offenses and the possession and distribution of counterfeit pills containing fentanyl.
The government’s investigation showed from October 2021 to October 2023, Jones relied heavily on social media to both make connections with other drug dealers to conduct sales of illegal substances to individual customers and N.R.A. crew members. On his Instagram account and cell phone, investigators found evidence showing Jones’ trafficking of crack cocaine, promethazine, and wholesale quantities of counterfeit pills containing fentanyl and marijuana. Furthermore, the digital evidence showed that Jones was aware that at least some of the counterfeit pills he sold contained fentanyl, was warned by another drug dealer that certain pills he was selling might contain lethal amounts of fentanyl, and knowingly distributed the pills with full knowledge they might harm or kill customers.
Metropolitan Police Department officers arrested Jones on October 28, 2023, following a foot chase, during which he discarded a firearm in the lobby of the Capitol Park Plaza Apartments in Washington D.C. That firearm discharged as he tossed it and the bullet struck a glass window in the lobby of the apartment building, narrowly missing two security guards that were feet away from him.
This case was investigated by the FBI’s Violent Crimes Task Force, with valuable assistance from the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorney Justin F. Song.
Depew Man Sentenced for Child Sex Crimes After Federal Jury Trial ConvictionRead the Press Release
Yesterday, U.S. District Judge Eric F. Melgren sentenced Johnny Lee Summers, 24, of Depew. Summers was convicted by a federal jury in March 2023 for Coercion and Enticement of a Minor; Sexual Abuse of a Minor in Indian Country; and Abusive Sexual Contact with a Minor in Indian Country. Summers was sentenced to 340 months imprisonment, followed by 15 years of supervised release. Judge Melgren further ordered that Summers register as a sex offender upon his release.
During the trial, three victims testified against Summers explaining how he took advantage of them. From February 2021 through January 2022, Summers sought out and coerced one of the victims, who was 14 years old. Summers wanted to engage in sexual activity and sent her thousands of sexually inappropriate messages. He requested that she send him nude photos and eventually sexually abused her.
Summers is a citizen of the Eastern Shawnee Tribe of Oklahoma and will remain in custody pending transfer to the U.S. Bureau of Prisons.
The FBI, Tulsa Police Department, and Creek County Sheriff’s Department investigated the case. Assistant U.S. Attorneys Valeria Luster and Steven Briden prosecuted 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.
Decatur Man Sentenced to 300 Months in Prison for Sexual Exploitation of a ChildRead the Press Release
URBANA, Ill. – A Decatur, Illinois, man, Tevin Ford, 29, was sentenced on March 13, 2024 to 300 months in the Bureau of Prisons, to be followed by a 5-year term of supervised release, for sexual exploitation of a child.
At the sentencing hearing, the government presented evidence that Ford had sexually assaulted three minors at a hotel room in Decatur in September of 2021. Also at the hearing, U.S. District Court Judge Michael M. Mihm found that Ford’s intent to abuse the minors had been clear from the beginning of the offense.
Ford pleaded guilty to the offense on September 14, 2023.
The statutory penalties for sexual exploitation of a child are 15 to 30 years imprisonment; a fine up to $250,000; and not less than five years of supervised release.
Decatur Police Department investigated the case with assistance from the United States Marshal Service. Assistant U.S. Attorneys Elly Peirson and Rachel Ritzer represented the government in the prosecution.
This case was investigated as part of Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the 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, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Court Sentences Leader in Interstate Bank Fraud and Identity Theft SchemeRead the Press Release
United States Attorney Susan Lehr announced that Saheed B. Dairo, 40, most recently of Chicago, Illinois, was sentenced on March 19, 2024, in federal court in Omaha, Nebraska for bank fraud and aggravated identity theft. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Dairo to 151 months’ imprisonment for bank fraud and a consecutive 24 months’ imprisonment for aggravated identity theft. There is no parole in the federal system. After Dairo’s release from prison, he will begin a 5-year term of supervised release. Dairo was also ordered to pay $1,491,802.39 in restitution. Dairo was identified as a Nigerian citizen who may be deported following completion of his sentence.
During approximately 2018 to 2021, Dairo and others traveled from city to city conducting fraudulent transactions at bank branches using real customers’ information and false identification documents. Dairo was the leader. He created phony driver’s licenses and credit cards and supplied them to other fraudsters who posed as customers. He also provided other individuals working the fraud scheme with account and personal information about customers and instructed them how to conduct the transactions. The group’s pattern was to conduct a series of fraudulent transactions in a particular area during a short period of time, then travel to a different city and conduct fraudulent transactions there. Overall, individuals acting at Dairo’s direction attempted approximately $5.2 million in fraudulent transactions and obtained about $1.49 million.
This case was investigated by the Omaha Police Department, the Council Bluffs, Iowa Police Department and Homeland Security Investigations, in coordination with law enforcement agencies in other states.
Convicted Felon Indicted for Possessing Methamphetamine with Intent to Distribute and Possessing A Firearm in Furtherance of Drug TraffickingRead the Press Release
Tampa, FL - United States Attorney Roger B. Handberg announces the return of an indictment charging Lewis James Scott (35, Tampa) with one count of possession of methamphetamine with intent to distribute, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of possession of a firearm by a convicted felon. If convicted of the narcotics charge, Scott faces up to 20 years in prison. If convicted of the first firearm charge, he faces a maximum penalty of life imprisonment. This charge also carries a minimum mandatory sentence of 5 years in prison, to run consecutive to any other sentence. The second firearm charge for possessing the firearm as a convicted felon carries up to 15 years in federal prison.
According to the indictment, Scott has previously been convicted of a felony for tampering with physical evidence. The indictment charges that on September 4, 2023, Scott possessed methamphetamine with intent to distribute it. It also alleges that on September 4, 2023, Scott possessed a Smith and Wesson Model M&P Bodyguard .380 and three rounds of ammunition and possessed this firearm in furtherance of drug trafficking.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Samantha Newman.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Columbia County Man Indicted for Receipt and Possession of Child PornographyRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 12, 2024, Vincent Shaffer, age 44, of Schuylkill County, PA, was indicted on a charge of possession of child pornography.
According to United States Attorney Gerard M. Karam, the indictment alleges that Shaffer received child pornography on August 20, 2023, and possessed child pornography on December 7, 2023, in Columbia County.
The case was investigated by the Federal Bureau of Investigation-RAC Williamsport and the Pennsylvania State Police. Assistant United States Attorney Tatum R. Wilson is prosecuting the 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 the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
The maximum penalty under federal law for these offenses is 20 years, with a mandatory minimum sentence of 5 years, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Colorado man admits criminal endangerment charge for vehicle crash on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Colorado man accused of drinking alcohol and causing a one-vehicle crash on the Blackfeet Indian Reservation in which a passenger suffered significant injuries admitted to a criminal endangerment charge today, U.S. Attorney Jesse Laslovich said.
Bryson Elijah Owens-Johnson, 29, of Denver, Colorado, pleaded guilty to a superseding information charging him with criminal endangerment. Owens-Johnson faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for July 17. Owens-Johnson was released pending further proceedings.
In court documents, the government alleged that on July 29, 2021, near St. Mary, on the Blackfeet Indian Reservation, Owens-Johnson was drinking with co-workers at a local bar. The group left the bar at closing time and six of them got into Owens-Johnson’s sedan. Owens-Johnson was traveling north on Highway 89 when he veered off the road, striking the guardrail almost head-on and damaging multiple steel and wood posts connected to it. Witnesses confirmed that everyone had been drinking alcohol at the local bar and that Owens-Johnson had been looking at his phone and veering on the roadway. Medical records from the Indian Health Service showed that Owens-Johnson had a blood alcohol concentration of .093 almost two hours after the crash was reported. One of the passengers, identified as John Doe, who is an enrolled member of the Blackfeet Indian Tribe, suffered significant injuries and continues to receive ongoing medical care.
Assistant U.S. Attorney Kalah A. Paisley is prosecuting the case. The Montana Highway Patrol, Blackfeet Law Enforcement Services and FBI conducted the investigation.
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Cincinnati woman pleads guilty to Social Security number fraudRead the Press Release
CINCINNATI – A Cincinnati woman pleaded guilty in U.S. District Court today to committing Social Security number fraud. The defendant stole the identity of a deceased child and used it to avoid a pending criminal prosecution and to obtain thousands of dollars in government benefits.
Christina Vaskovsky, 56, pleaded guilty to five counts of Social Security number fraud. She was charged and arrested in November 2023.
According to court documents, Vaskovsky was indicted in Hamilton County in July 2008 for allegedly stealing $14,500 from her employer. Vaskovsky failed to appear at her trial scheduled in December 2008. A nationwide warrant was issued for her arrest.
In 2010, Vaskovsky obtained a new Ohio driver’s license using the name, date of birth and Social Security number of a child who was born the same year as Vaskovsky but who died in 1977.
The defendant then began using the child’s identity in a variety of contexts over a span of 13 years, including:
- Receiving $19,570 in food stamp benefits;
- Filing bankruptcy to discharge nearly $128,000 in debt;
- Obtaining Social Security disability benefits totaling nearly $39,000;
- Providing the false identity upon being arrested for shoplifting in Kentucky;
- Applying for an Economic Injury Disaster Loan;
- Receiving more than $11,600 in unemployment benefits;
- Obtaining Supplemental Security Income disability benefits totaling $4,833; and
- Receiving Medicare benefits under the stolen identity totaling more than $116,000.
The plea agreement recommends a sentence of 12 to 30 months in prison. As part of her plea, Vaskovsky has agreed to pay nearly $191,000 in restitution to the Center for Medicare and Medicaid Services, Social Security Administration, U.S. Department of Agriculture and Ohio Department of Job and Family Services.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the guilty plea entered today before U.S. District Judge Jeffery P. Hopkins. This case was investigated by the Social Security Administration’s Office of Inspector General with assistance from the USDA Office of Inspector General, Ohio BMV Investigations, Department of Labor Office of Inspector General, United States Postal Inspection Service and U.S. Marshals Service. Special Assistant United States Attorney Timothy Landry is representing the United States in this case.
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Bullitt County Felon Sentenced to over 2 Years in Federal Prison for Illegally Possessing a FirearmRead the Press Release
Louisville, KY – A Bullitt County, Kentucky, man was sentenced yesterday to 2 years and 9 months in federal prison for illegally possessing a firearm after having been previously convicted of a felony offense.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office, and Colonel Marcus Laytham, Chief of the Mt. Washington Police Department, made the announcement.
According to court documents, James Nott, 41, was sentenced to 2 years and 9 months in prison, followed by 3 years of supervised release, for illegally possessing an AK-type 7.62 mm rifle, a Charter Arms .38 special revolver, and ammunition on July 11, 2023. Nott was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses.
On November 11, 2011, in the United States District Court for the Western District of Kentucky, Nott was convicted of possession of an unregistered destructive device and possession of a firearm by an unlawful user of marijuana.
There is no parole in the federal system.
This case was investigated by the FBI and the Mt. Washington Police Department.
Assistant U.S. Attorneys Christopher Tieke and Stephanie Zimdahl prosecuted the case.
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Brandon Man Sentenced for Attempted Receipt of Child PornographyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Brandon, South Dakota, man convicted of Attempted Receipt of Child Pornography. The sentencing took place on March 14, 2024.
Gatlin Wayne Herrera, age 31, was sentenced to five years in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Herrera will also need to register as a sex offender.
Herrera was indicted by a federal grand jury in April of 2022. He pleaded guilty on November 30, 2023.
The conviction stemmed from incident between March 7, 2022, and March 16, 2022, when Herrera used his cell phone to knowingly request child pornography from an undercover agent posing as a 14-year-old female.
This case was investigated by Homeland Security Investigations, with the assistance of the Internet Crimes Against Children Task Force, South Dakota Division of Criminal Investigation, Sioux Falls Police Department, Minnehaha County Sheriff’s Office, South Dakota Highway Patrol, Air Force Office of Special Investigations, and the FBI. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted 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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Herrera was immediately remanded to the custody of the U.S. Marshals Service.
Bosque Farms Man Charged with AssaultRead the Press Release
Albuquerque – A federal grand jury has returned an indictment charging a Bosque Farms man with assault resulting in serious bodily injury.
According to the indictment, on Sept. 22, 2023, Richard Jaramillo, 42, of Bosque Farms and an enrolled member of Pueblo of Isleta, assaulted John Doe and the assault resulted in serious bodily injury.
Yesterday, Jaramillo appeared in federal court for an initial appearance where the Court temporarily detained Jaramillo pending a detention hearing, which is scheduled for March 20, 2024. If convicted, Jaramillo faces a maximum of 10 years in federal prison. There is no parole in the federal system.
The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
U.S. Attorney Alexander M.M. Uballez made the announcement today. The Isleta Police Department investigated, and Assistant United States Attorney Nicholas J. Marshall is prosecuting this case.
View the Indictment# # #
Aventura Technologies, Inc. Pleads Guilty to Wire Fraud and Illegal Importation for Reselling Chinese Goods as U.S.-MadeRead the Press Release
CENTRAL ISLIP, NY – Earlier today, Aventura Technologies, Inc. (Aventura) pleaded guilty to committing mail and wire fraud conspiracy and illegal importation in federal court in Central Islip. The guilty plea reflects Aventura’s long-running, lucrative scheme to purchase Chinese-made security equipment (such as networked surveillance cameras) and resell it as U.S.-made, including to multiple agencies of the U.S. government, branches of the military and to customers overseas in the public and private sectors. The scheme began in 2006, ending in 2019 when charges were brought in this case. Aventura made more than $112 million in sales during that time. Today’s proceeding was held before United States Magistrate Judge Arlene R. Lindsay.
In connection with its guilty plea, the company agreed to dissolve itself and to forfeit more than $3 million in seized assets, including Aventura’s headquarters and a seventy-foot yacht partially owned by the defendants, as well as more than 7,000 seized items of merchandise. All seven individuals charged in this case have pleaded guilty, including Aventura’s nominal president Frances Cabasso and its true chief executive, her husband Jack Cabasso.
In addition to Aventura’s fraudulent resale of Chinese-made goods, the company defrauded customers by falsely claiming that Frances Cabasso was in charge of Aventura in order to obtain access to valuable government contracts reserved for women-owned businesses. Frances Cabasso pled guilty to wire fraud conspiracy in connection with that scheme.
The individual defendants who pled guilty in the case were Frances Cabasso, Jack Cabasso, and senior executives Jonathan Lasker, Christine Lavonne Lazarus and Eduard Matulik, as well as employees Wayne Marino and Alan Schwartz.
The charges were announced by Breon Peace, United States Attorney for the Eastern District of New York; James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Robert C. Erickson, Jr., Deputy Inspector General, General Services Administration Office of Inspector General (GSA OIG); Brian J. Solecki, Acting Special Agent in Charge, Defense Criminal Investigative Service, Northeast Field Office (DCIS); Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS-CI); Francis J. Russo, Director, Customs and Border Protection, New York Field Office (CBP); William W. Richards, Special Agent in Charge, Air Force Office of Special Investigations, Office of Procurement Fraud Investigations (AFOSI); Heather Hill, Acting Inspector General, Treasury Inspector General for Tax Administration (TIGTA); Greg Gross, Special Agent in Charge, Naval Criminal Investigative Service, Economic Crimes Field Office (NCIS); Keith K. Kelly, Special Agent-in-Charge, Army Criminal Investigation Division’s Fraud Field Office (Army CID); and Teri L. Donaldson, Inspector General for the Department of Energy (DOE IG).
“For years, the defendants, while pretending to be a women-owned business, intentionally corrupted the U.S. military supply chain by passing off Chinese-made networked electronics with known vulnerabilities as American-made,” stated United States Attorney Peace. “This case highlights the importance of national and international inter-agency cooperation in securing our cyber supply chain and protecting our military readiness. We will spare no effort in holding accountable those who undermine and threaten the national security of the United States.”
“This GSA contractor lied about its surveillance and security equipment being made in the United States when it was actually being made in China,” stated GSA Deputy Inspector General Erickson. “Company executives also misrepresented to GSA that the company was woman-owned to gain access to government contracts they otherwise would not have been eligible to receive. We remain committed to investigating contract fraud such as this and holding criminals accountable.”
“The introduction of misbranded parts and materials into the DoD’s supply chain poses a significant risk to America’s military readiness and our national security,” stated DCIS Acting Special Agent-in-Charge Solecki. “We remain committed to working with our law enforcement partners and the Department of Justice, to ensure that individuals and companies who engage in fraudulent activity, at the expense of our nation’s military members, are investigated and prosecuted.”
“Executives of Aventura Technologies have already pled guilty, detailing how the company fronted illegal importations and wire fraud by the sale of thousands of goods that entered the U.S. under fraudulent circumstances to federal entities,” stated IRS-CI Special Agent-in-Charge Fattorusso. “Their scheme went further to purport that Aventura was a woman-owned business simply to win additional government contracts. It is not common to see both the executives and the company face prosecution, but in this case, today’s guilty plea is proof of the significant amount of evidence present in this case.”
“U.S. Customs and Border Protection provided the critical link to an ongoing investigation that resulted in the takedown of an elaborate criminal enterprise,” stated CBP Director Russo. “This case serves as a great example of collaborative law enforcement efforts to uncover and dismantle criminal enterprises that seek to defraud the United States government for personal gain while jeopardizing our national defense and causing economic harm to their competitors.”
“This outcome demonstrates the Office of Procurement Fraud’s commitment to identify and hold accountable those who engage in fraudulent behavior that places our warfighters at risk,” stated AFOSI Special Agent-in-Charge Richards. “AFOSI, alongside our joint investigative and prosecutorial partners, will work tirelessly to combat fraud threatening the Department of the Air Force.”
“The Treasury Inspector General for Tax Administration (TIGTA) is the nation’s tax watchdog agency committed to ensuring the integrity of the IRS contracting and procurement process,” stated TIGTA’s Acting Inspector General Hill. “We are aggressively investigating individuals who attempt to defraud the IRS, like the individuals in this case. Companies working with the IRS and the Department of Treasury must conduct themselves with integrity and honesty. Thank you to the U.S. Attorney’s Office and law enforcement partners for their support in this investigation.”
“Falsely misrepresenting the country of origin for equipment sold to the U.S. Government that is directly used in support of the safety and readiness of our warfighters is a serious crime,” said NCIS Special Agent-in-Charge Gross. “NCIS is committed to protecting the integrity of the Department of the Navy’s procurement and acquisitions process.”
“Today's plea is a fitting end for those who conspire to defraud the government,” stated Army CID Special Agent-in-Charge Kelly. “We are proud to work alongside our federal law enforcement partners to protect the United States Government from those who seek to misrepresent themselves and their product, thereby threatening the readiness of the U.S. Army and potentially risking the lives of countless soldiers.”
“The installation of the material provided by Aventura in a Department of Energy facility would have provided a possible pathway for the PRC to gather information on the personnel who work at one of the Nation’s most advanced research facilities,” said DOE Inspector General Donaldson. “I thank our law enforcement partners who supported our Special Agents to ensure this equipment didn’t make its way into the lab, and the US Attorney’s Office in the Eastern District of New York for holding the company who put our national security at risk, accountable for its actions.”
The Country of Origin Fraud and Unlawful Importation Scheme
As admitted in court, Aventura lied for over a decade to its customers, including the U.S. military, the federal government, numerous private customers in the United States, and public and private sector customers abroad. Between 2008 and November 2019, Aventura made upwards of $112 million, including over $20 million in federal government contracts, while claiming that it was manufacturing its products at its headquarters in Commack, New York. In fact, since at least 2006, Aventura imported goods, primarily from the People’s Republic of China (PRC), then resold them as American-made or manufactured in a small number of other countries.
The company’s marketing relied heavily on U.S. flags and “American-made” branding, and its sales force routinely asserted that Aventura was the sole U.S. manufacturer of security equipment. As described below, Jack Cabasso went to extreme lengths to conceal the Chinese origin of his products, while at the same time writing to U.S. government procurement officials to accuse his competitors of reselling Chinese-made goods. Visitors to Aventura’s corporate headquarters were shown a fictitious “lab,” and were told that a separate building was reserved for classified government work and was off-limits to visitors. In fact, Aventura did not own or occupy the building in question.
In the course of its investigation, the government intercepted and covertly marked numerous shipments from PRC sources to Aventura’s Commack, New York headquarters. In some cases, cameras shipped from the PRC were pre-marked with Aventura’s logo and the phrase “Made in USA,” accompanied by an American flag. In many instances, the items were later resold to government agencies to whom the defendants falsely represented that the products were American-made. Examples include:
- In March 2019, the U.S. Navy ordered from Aventura a $13,500 laser night vision camera that was specified as American-made on Aventura’s U.S. General Services Administration (GSA) price list. In April 2019 at a shipping facility in Jamaica, Queens, a team led by Customs and Border Protection (CBP) officers intercepted a shipment from a PRC manufacturer to Aventura that contained a camera matching the Navy’s order, and surreptitiously marked it for later identification. Two weeks later, that same camera was delivered to Naval Submarine Base New London in Groton, Connecticut.
- In September 2018, the Department of Energy (DOE) ordered approximately $156,000 worth of supposed American-made networked automated turnstiles from Aventura, to be installed at a facility in Tennessee. In January 2019, turnstiles matching DOE’s order were intercepted in a shipment from a PRC manufacturer and marked by CBP; one month later, they arrived at the DOE facility in Tennessee. The crates shipped by Aventura to the DOE appeared identical to those that the CBP-led team had inspected, except that the shipping labels from the PRC directing the crates to Aventura had been peeled off, leaving behind visible traces of paper and glue. A special agent with the Department of Energy Office of Inspector General placed a call to Lazarus regarding the turnstile shipment in May 2019. During the call, Lazarus falsely stated that the turnstiles were “U.S. made [in] New York.”
- In 2018, Aventura sold the U.S. Air Force 25 body cameras. Aventura was contractually required to provide goods from a limited set of countries that did not include the PRC. In August 2018, however, an Air Force service member observed Chinese characters on the built-in screen of one of the body cameras. The body camera was sent for analysis to a specialist, who downloaded its firmware and found numerous indications that the camera was manufactured in the PRC. The camera contained multiple preloaded images that were apparently designed to display on the built-in screen—including the U.S. Air Force logo, the logo of the PRC Ministry of Public Security, and the logo of a PRC manufacturer of security equipment. All three logos had been saved to the camera’s firmware using the same software, on a computer that was set to a time zone in the PRC—indicating that the camera’s manufacturer in the PRC had been aware that the U.S. Air Force was a likely end user of the camera.
Coverup of the Country of Origin Fraud and Unlawful Importation Scheme
The defendants, working with counterparts in the PRC, went to extraordinary lengths to conceal this scheme. For example:
- In November 2018, Jack Cabasso exchanged emails with an employee of a PRC manufacturer of surveillance equipment (PRC Manufacturer-2), identifying the need to “hide” the name of PRC Manufacturer-2 from Aventura’s customers. One week later, Cabasso stressed the need to take steps so that “they cannot trace” the product to PRC Manufacturer-2. Cabasso added that “the biggest problem” was that PRC Manufacturer-2’s initials were marked on its circuit boards, and said that he had “lost several potential customers” because of similar practices by another PRC manufacturer (PRC Manufacturer-1). The employee responded that the company’s initials would be removed from all circuit boards shipped to Aventura.
- Similarly, in December 2018, Aventura executives exchanged emails with employees of another PRC-based digital video equipment manufacturer (PRC Manufacturer-4). They complained to the employees that “communication from the server to the client contains [PRC Manufacturer-4’s name] visible in clear text. This should be changed.” When one of the employees wrote that this could not be changed, Jack Cabasso responded: “WE CANNOT HAVE CUSTOMERS ABLE TO SEE [PRC Manufacturer-4’s name]”, later adding: “we also sent a sample to a customer and he found [PRC Manufacturer-4] … branding in the [operating system] which is a problem.”
On or about November 23, 2016, Jack Cabasso sent an email to a GSA representative accusing 12 other GSA contractors of selling products to the U.S. Government that were manufactured by a PRC manufacturer of surveillance equipment (PRC Manufacturer-1). Cabasso asserted that this was a “big problem” and “doesn’t get any worse,” because PRC Manufacturer-1 was “actually the Communist Chinese Government and ha[d] ‘significant’ cybersecurity issues aside from” compliance with U.S. laws specifying country-of-origin requirements for government purchases. Cabasso stated that PRC Manufacturer-1 “will acknowledge they manufacture no products outside of China,” and appended an article about the removal of cameras manufactured by PRC Manufacturer-1 from the U.S. Embassy in Afghanistan.
Notably, Aventura was importing security equipment from PRC Manufacturer-1 while Jack Cabasso was complaining to GSA about other contractors’ supposed dealings with the company. For example, bank records show that Aventura wired funds to PRC Manufacturer-1 in the PRC on or about October 31, 2016 and November 29, 2016, and law enforcement records show that on or about December 13, 2016, Aventura imported from PRC Manufacturer-1 in PRC an approximately 1,800-pound shipment of goods manifested as “digital video.”
In November 2018, Aventura executives communicated with a potential distributor in Qatar who asked for assurance that Aventura’s cameras were American-made. Cabasso responded: “I believe Ed [Matulik] confirmed that they are made in the Aventura factory here in New York and [anyone] may visit at any time.” Cabasso attached what purported to be a photograph of Aventura’s assembly line, depicting a row of seated individuals in blue lab coats and protective hairnets working at laboratory benches—a photograph that also appeared on Aventura’s website. In reality, this photograph first appeared in a trade publication article recounting a reporter’s visit to PRC Manufacturer-1’s manufacturing facility in Hangzhou, PRC, and it depicts PRC Manufacturer-1’s assembly line—not Aventura’s.
The Scheme to Misrepresent Aventura as a Woman-Owned Small Business
In a parallel scheme, Jack and Frances Cabasso, along with other Aventura executives, falsely represented on numerous occasions that Frances Cabasso was the chief executive of Aventura. In fact, Frances Cabasso was in charge only on paper; the true chief executive officer of Aventura was Jack Cabasso, and Frances Cabasso played a minimal role at the company. This misrepresentation gave Aventura access to government contracts that were set aside for women-owned small businesses, a category that is legally defined to include only businesses owned by women where management and daily operations are also controlled by one or more women.
Aventura’s website and its GSA webpage identify Aventura as a woman-owned business, and the defendants repeatedly certified to the GSA and stated to government procurement officers that Aventura is a woman-owned business. For example, on or about January 13, 2014, a GSA employee emailed Frances Cabasso to “verify if Aventura Technologies, Inc. is a Woman-Owned business.” She replied: “Yes we are still a certified women-owned business.” Aventura won multiple contracts from the federal government on the strength of its status as a woman-owned business.
In fact, real control at Aventura was exercised by Jack Cabasso. Frances Cabasso worked as a bookkeeper at a nearby business and was rarely present at Aventura’s offices. At times, emails sent to Frances Cabasso’s email address were auto-forwarded to Jack Cabasso, who sometimes signed his responses in Frances’s name. The defendants openly joked about the fact that Frances Cabasso did not work at Aventura. For example, in an instant message exchange on December 5, 2016 between Jack Cabasso and Lazarus, both defendants discussed moving another employee into “Fran’s office”--the office of the purported owner of the company—putting the word “Fran’s” in quotation marks.
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The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander Mindlin, Kayla Bensing and Claire Kedeshian are in charge of the prosecution. Significant contributions were made by former Assistant United States Attorney Ian Richardson, now Chief Counsel for Corporate Enforcement within the Department’s National Security Division.
The Defendant: AVENTURA TECHNOLOGIES, INC.
Commack, New YorkE.D.N.Y. Docket No. 19-CR-582 (JMA)
Attorney General Merrick B. Garland Statement on Sentencings of Former Mississippi Law Enforcement Officers Who Tortured and Abused Two Black MenRead the Press Release
Two former Mississippi law enforcement officers were sentenced today for the torture and abuse of two Black men in Rankin County, Mississippi. Hunter Elward, 31, a former Rankin County Sheriff’s Office (RCSO) Deputy, was sentenced to 20 years in prison. Jeffrey Middleton, 46, a former RCSO Lieutenant, was sentenced to 17.5 years in prison.
Four more defendants, all former Mississippi law enforcement officers, will be sentenced tomorrow and Thursday. In 2023, all six defendants pleaded guilty to a criminal information charging them with multiple felony offenses, including civil rights conspiracy, deprivation of rights under color of law, discharge of a firearm during a crime of violence, conspiracy to obstruct justice, and obstruction of justice.
The Justice Department issued the following statement from Attorney General Merrick B. Garland:
“These defendants will spend 20 years and 17.5 years in prison for their heinous attack on citizens they had sworn an oath to protect,” said Attorney General Merrick B. Garland. “These defendants kicked in the door of a home where two Black men were residing, handcuffed and arrested them without probable cause, called them racial slurs, and punched, kicked, tased, and assaulted them. After one of the defendants fired his gun in the mouth of one of the victims, breaking his jaw, the defendants gathered outside to come up with a cover story as the victim lay bleeding on the floor. The Justice Department will hold accountable officers who violate constitutional rights, and in so doing, betray the public trust.”
Attorney General Merrick B. Garland Statement on FBI Quarterly Uniform Crime ReportRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland on the release of the FBI Quarterly Uniform Crime Report:
“In May 2021, the Justice Department launched our violent crime reduction strategy aimed at addressing the spike in violent crime that occurred during the pandemic.
“Since then, our prosecutors, agents, and grantmaking experts have worked in close partnership with police departments and communities across the country to go after the recidivists and gangs that are responsible for the greatest violence; to seize illegal guns and deadly drugs; to make critical investments in hiring more law enforcement officers; and to fund evidence-based, community violence intervention initiatives.
“We know that hard fought progress can easily slip away, and we must remain focused and vigilant. But today, we are encouraged by this data indicating a decrease in violent crime in communities across the country in 2023 compared to the prior year, including an over 13% decline in homicides. This important indicator of declining violent crime comes in the wake of other encouraging data we have seen released within the last year.
“The Justice Department will continue to remain laser-focused on working with our law enforcement and community partners to drive down violent crime. We will not rest until every community in our country is safe.”
Attorney and Former Bank Director Sentenced to 30 Months in Prison for Bank FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that MENDEL ZILBERBERG was sentenced today to 30 months in prison in connection with a scheme to obtain a fraudulent $1.4 million loan from Park Avenue Bank. The defendant was a member of Park Avenue Bank’s board of directors at the time of the offense. ZILBERBERG was previously found guilty following a one-week trial before U.S. District Judge George B. Daniels, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Those entrusted with the stewardship of financial institutions must uphold their responsibilities with integrity, not exploit their positions. Mendel Zilberberg’s manipulation of his roles as a legal practitioner and a director of Park Avenue Bank exemplifies a disturbing breach: one that led to a staggering loss for the institution. Safeguarding the integrity of our financial systems is imperative, and this Office will not tire in our mission to track down those who pose threats to this vital cornerstone of stability.”
According to the allegations contained in the Indictment, the evidence offered at trial, and matters included in public filings:
In or about 2009, ZILBERBERG conspired with a co-defendant, Aron Fried, and others to obtain a fraudulent loan from Park Avenue Bank (the “Bank”). Knowing that the co-conspirators would not be able to obtain the loan directly, the co-conspirators recruited a straw borrower (the “Straw Borrower”) to make the loan application. The Straw Borrower applied for a $1.4 million loan from the Bank on the basis of numerous lies, as directed by ZILBERBERG and his co-conspirators.
ZILBERBERG used his privileged position at the Bank to ensure that the loan was processed promptly. Based on the false representations made to the Bank and ZILBERBERG’s involvement in the loan approval process, the Bank issued a $1.4 million loan to the Straw Borrower, which was quickly disbursed to ZILBERBERG and his co-conspirators through multiple bank accounts and transfers. In total, ZILBERBERG received more than approximately $500,000 of the loan proceeds. The Straw Borrower received nothing from the loan and ultimately defaulted, resulting in a loss to the Bank of over $1 million.
On November 15, 2022, Fried pled guilty to conspiracy to commit bank fraud. On April 10, 2023, Judge Daniels sentenced Fried to one year and one day in prison.
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In addition to the prison term, ZILBERBERG, 65, of Monsey, New York, was sentenced to three years of supervised release and ordered to pay $1,066,853 in restitution and $506,000 in forfeiture.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation’s Office of the Inspector General.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Dina McLeod, Daniel G. Nessim, and Kimberly Ravener, with the assistance of Paralegal Specialist Joseph Carbone, are in charge of the prosecution.
Atlanta Meat Market Owner Sentenced to Federal Prison in $10 Million Food Stamp Fraud SchemeRead the Press Release
ATLANTA – Uttam Halder has been sentenced to federal prison for a $10 million scheme to purchase Supplemental Nutrition Assistance Program benefits from low-income recipients. After his arrest, Halder became a fugitive, fled to Mexico, and attempted to flee to Istanbul, where he was apprehended by foreign authorities with a counterfeit Mexican passport.
“The federal government trusted Halder to safeguard precious SNAP funds designed to alleviate hunger but he abused that trust to fuel his greed by profiting from a multimillion-dollar scheme to fraudulently redeem SNAP benefits,” said U.S. Attorney Ryan K. Buchanan. “Despite Halder’s attempt to flee, the coordinated response from multiple agencies and foreign law enforcement returned him to the United States to face justice for his crimes.”
“Today’s sentence serves not only as just punishment for this defendant but also as a notice to others who seek to prey on defrauding the taxpayer through SNAP,” said Miles Davis, Special Agent-in-Charge, USDA-Office of Inspector General. “Purchasing those benefits for cash and sharing Point-of-Sale terminals will be vigorously investigated. This collaborative effort with our state and federal partners demonstrates that wherever you are, we will find you and fully hold you accountable for the law.”
“Halder’s attempt to defraud the government and evade prosecution was thwarted due to the diligence of HSI and its law enforcement partners,” said Homeland Security Investigations (HSI) Atlanta Acting Special Agent in Charge Anthony J. Patrone, who oversees HSI operations in Georgia and Alabama. “For those contemplating similar crimes, HSI will tirelessly pursue those engaged in fraud schemes that violate the public trust.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Uttam Halder owned and operated a small meat market in Atlanta called Big Daddy’s Discount Meat (“Big Daddy’s”). Halder enrolled Big Daddy’s as a retailer for the USDA’s Supplemental Nutrition Assistance Program (“SNAP”) in 2014. SNAP, formerly known as the Food Stamp Program, is designed to alleviate hunger among low-income families by providing benefits on Electronic Benefit Transfer (“EBT”) cards that can be exchanged for eligible food items. USDA regulations state that SNAP benefits may not be purchased or sold in exchange for cash.
Between 2015 and 2020, Halder loaned his EBT terminals to two stores, Food World and Big Brother Mini Supermarket, contrary to SNAP rules. Co-conspirator Paltu Roy, the operator of Big Brother Mini Supermarket, and another co-conspirator who operated Food World, agreed to share profits with Halder from Big Daddy’s terminals used illegally at those stores. After receiving Big Daddy’s EBT terminals, both stores made cash payments to customers in return for redeeming their SNAP benefits at the rate of roughly 50 cents on the dollar. During this six-year period, Big Daddy’s terminals collected more than $10 million in fraudulent redemptions of SNAP benefits, and Halder shared a substantial portion of the profits.
Following his arrest in January 2021, Halder was released on bond. Contrary to his bond conditions, Halder fled and became a fugitive in late 2022. In June 2023, foreign authorities in Turkey located Halder when he attempted to enter Istanbul from Cancun, Mexico with a fake passport. Halder was returned to the United States and placed into custody.
Uttam Halder, 43, of Decatur, Georgia, has been sentenced to 68 months of incarceration, followed by three years of supervised release, and ordered to pay restitution in the amount of $10,340,986. On September 19, 2023, Halder pleaded guilty to one count of conspiracy to commit wire fraud and one count of failure to appear.
His co-conspirator, Paltu Roy, 51, of Stone Mountain, Georgia, pleaded guilty to one count of conspiracy to commit wire fraud on December 9, 2021. Roy was sentenced on April 20, 2022, to three years and one month in prison, followed by three years of supervised release, and ordered him to pay $3,071,235 in restitution to the USDA.
This case was investigated by the U.S. Department of Agriculture, Office of Inspector General and Homeland Security Investigations.
Assistant U.S. Attorney Nathan P. Kitchens prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Apple Valley Man Sentenced to 13.5 Years in Prison for Possession of Narcotics, FirearmsRead the Press Release
MINNEAPOLIS – An Apple Valley man has been sentenced to 162 months in prison followed by five years of supervised release for possession of methamphetamine, fentanyl, and firearms, announced U.S. Attorney Andrew M. Luger.
According to court documents, on July 23, 2023, law enforcement attempted to arrest Timothy Allen Torell Wetzstein, 31, on outstanding warrants. Wetzstein fled from police officers but was arrested after a short foot chase. During the chase, Wetzstein threw away a Springfield Armory .45 caliber semi-automatic pistol. Police searched Wetzstein’s backpack and vehicle and recovered quantities of methamphetamine, fentanyl, more than $11,000 in cash, and three additional firearms. As part of his guilty plea, Wetzstein also admitted to possessing methamphetamine, fentanyl, and firearms on multiple other occasions between October 2020 and July 2023.
On November 9, 2023, Wetzstein pleaded guilty to one count of possession of methamphetamine and fentanyl with the intent to distribute. He was sentenced yesterday in U.S. District Court by Chief Judge Patrick J. Schiltz.
This case is the result of an investigation conducted by the FBI, Ramsey Police Department, Washington County Sheriff’s Office, Dakota County Drug Task Force, and Minneapolis Police Department.
Assistant U.S. Attorney Campbell Warner prosecuted the case.
Alabama Man Sentenced for Wire Fraud and Preparation of False Tax ReturnsRead the Press Release
FRANKFORT, Ky. – A Boaz, Ala. man, Jeremy Clay Guthrie, 45, has been sentenced to 27 months in federal prison, by U.S. District Judge Gregory Van Tatenhove, for wire fraud and aiding and assisting in the preparation of false tax returns.
According to his guilty plea agreement, Guthrie was employed as the manager of the Frankfort, Ky. branch of a privately owned aviary supply business, until he was fired on September 27, 2017. During his last two years as a manager, he stole over $550,000 from his employer and customers, by charging customer credit and debit cards for products but
diverting payment for those products to his own personal company, Guthrie’s Naturals. He also altered the pay-to lines on checks from customers and routinely offered customers unauthorized discounts in exchange for cash payments, embezzling much of the cash he received. Guthrie also created false pick tickets for sales to customers of his employer’s products, concealed those sales from his employer, and pocketed the proceeds.
The Defendant also failed to disclose all the income he received from this fraudulent scheme to his tax preparer or the IRS, for tax years 2016 and 2017. Ultimately, Guthrie agreed that he underreported his income by $325,543and admitted that he intentionally concealed a significant portion of his company sales and other unlawfully obtained proceeds and spent proceeds from unreported sales and cash transactions, in part, to fund a drug addiction. At sentencing, the Court found that the criminal loss caused by Guthrie’s crimes was between $550,000 and $1,500,000. An order of restitution to the victims remains pending.
Under federal law, Guthrie must serve 85 percent of his prison sentence; and upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Karen Wingerd, Acting Special Agent in Charge, Cincinnati Field Office, IRS-Criminal Investigation; Robert Holman, Special Agent in Charge, United States Secret Service; and Chris Quire, Franklin County Sheriff, jointly announced the sentence.
The federal investigation was conducted by IRS-CI, USSS, and Franklin County Sheriff’s Office. The United States was represented by Assistant United States Attorney Tashena A. Fannin.
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Akua Mosaics, Inc. and its President Plead Guilty to a Conspiracy to Smuggle Goods into the United States to Avoid Paying over $1 Million in Duties and TariffsRead the Press Release
SAN JUAN, Puerto Rico – Kenneth Fleming and Akua Mosaics, Inc. (“Akua Mosaics”) pleaded guilty today to a conspiracy to smuggle goods into the United States in violation of Title 18, United States Code, Sections 371 and 545, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
According to the plea agreements, from 2021 through June 2022 Akua Mosaics and its president, Kenneth Fleming, conspired to defraud the United States by smuggling and clandestinely importing porcelain mosaic tiles manufactured in the People’s Republic of China (PRC), by falsely representing to the U.S. Customs and Border Protection (CBP) that said merchandise was of Malaysian origin. This was done with the intent to avoid paying antidumping duties of approximately 330.69%, countervailing duties of approximately 358.81%, and other duties of approximately 25% which were owed when importing these tiles from PRC to the United States.
Fleming and Akua Mosaics conspired with Shuyi Mo, a citizen and resident of PRC. Between October 2021 and January 2022, these caused a container with porcelain tiles manufactured in PRC to be shipped from PRC to Malaysia. They caused “Made in Malaysia” labels to be placed on boxes containing porcelain tiles manufactured in PRC and then caused a container with porcelain tiles manufactured in PRC to be shipped from Malaysia to Puerto Rico misrepresenting the country of origin as Malaysia, when in fact, PRC was the country of origin. The total amount of unpaid duties and tariffs on this shipment was approximately $1,090,000.
Mo was arrested on April 29, 2023 in the Northern District of California while attempting to the leave the United States. See May 3, 2023 Press Release. Mo pleaded guilty on to his participation in the conspiracy and was sentenced on September 1, 2023 to the approximately four month term of imprisonment he had served and was removed from the United States.
Fleming and Akua Mosaics face a maximum penalty of five years in prison, a $250,000 fine, a three-year term of supervised release, and a payment of $1,090,000 in restitution. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Homeland Security Investigations (HSI) San Juan Global Trade Investigations Group (GTIG) in collaboration with the U.S. Customs and Border Protection (CBP) are investigating the case.
Assistant U.S. Attorney Alexander L. Alum is prosecuting the case.
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18 March 2024
“Rock Doc” Sentenced for Opioid Distribution ConspiracyRead the Press Release
A Tennessee nurse practitioner known locally as the “Rock Doc” was sentenced today to 20 years in prison for illegally prescribing opioids — including oxycodone and fentanyl — from his medical practice in Jackson, Tennessee.
“The self-proclaimed ‘Rock Doc’ abused the power of the prescription pad to supply his small community with hundreds of thousands of doses of highly addictive prescription opioids to obtain money, notoriety, and sexual favors,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The defendant’s conduct endangered his patients and the community as a whole. Today’s sentence reflects the seriousness of this criminal conduct and the department’s commitment to protecting communities from the scourge of illegally prescribed drugs.”
“The epidemic of opioid abuse is fueled by doctors like the defendant who are willing to over-prescribe highly addictive drugs and exploit patient pain for their own financial gain,” said U.S. Attorney Kevin Ritz for the Western District of Tennessee. “This sentence sends a strong message that healthcare professionals who prey on those who suffer from addiction are no better than street corner drug dealers — and that our office and law enforcement partners will hold them just as accountable for their crimes.”
According to court documents and evidence presented at trial, Jeffrey W. Young Jr., 49, of Jackson, used his medical practice, Preventagenix, to illegally prescribe medically unnecessary controlled substance pills to hundreds of patients, including a pregnant woman and women with whom he was having inappropriate physical relationships. Young maintained a party-type atmosphere at his clinic, and prescribed these drugs at least in part to boost his popularity on social media and promote a self-produced reality TV show pilot based on his self-identified persona, the “Rock Doc.” Young prescribed more than 100,000 doses of hydrocodone, oxycodone, and fentanyl into the community.
“Mr. Young operated a medical practice with a wanton disregard for the health and well-being of his patients who entrusted him with their medical care,” said Acting Special Agent in Charge Erek Davodowich of the Drug Enforcement Administration (DEA) Louisville Field Division. “Any healthcare provider who conducts business in such a manner that causes harm to his patients and community should expect to meet the full weight of the justice system.”
“While we applaud the dedication of the overwhelming majority of medical providers, on occasion, a provider such as Mr. Young abuses his prescribing authority to serve self-interests and contribute to patient addiction and endangerment,” said Director David Rausch of the Tennessee Bureau of Investigation (TBI). “Alongside our valuable law enforcement partners, the healthcare community, and private citizens, the TBI stands committed to identifying, investigating, and bringing to justice those who seek to misuse their authority for personal gain or notoriety and put our community at risk.”
The DEA and TBI investigated the case, with valuable assistance from the Jackson Police Department.
Assistant Chief Kate Payerle and Trial Attorney Drew Pennebaker of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
“Rock Doc” Sentenced for Opioid Distribution ConspiracyRead the Press Release
A Tennessee nurse practitioner known locally as the “Rock Doc” was sentenced today to 20 years in prison for illegally prescribing opioids — including oxycodone and fentanyl — from his medical practice in Jackson, Tennessee.
“The self-proclaimed ‘Rock Doc’ abused the power of the prescription pad to supply his small community with hundreds of thousands of doses of highly addictive prescription opioids to obtain money, notoriety, and sexual favors,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The defendant’s conduct endangered his patients and the community as a whole. Today’s sentence reflects the seriousness of this criminal conduct and the department’s commitment to protecting communities from the scourge of illegally prescribed drugs.”
“The epidemic of opioid abuse is fueled by doctors like the defendant who are willing to over-prescribe highly addictive drugs and exploit patient pain for their own financial gain,” said U.S. Attorney Kevin Ritz for the Western District of Tennessee. “This sentence sends a strong message that healthcare professionals who prey on those who suffer from addiction are no better than street corner drug dealers — and that our office and law enforcement partners will hold them just as accountable for their crimes.”
According to court documents and evidence presented at trial, Jeffrey W. Young Jr., 49, of Jackson, used his medical practice, Preventagenix, to illegally prescribe medically unnecessary controlled substance pills to hundreds of patients, including a pregnant woman and women with whom he was having inappropriate physical relationships. Young maintained a party-type atmosphere at his clinic, and prescribed these drugs at least in part to boost his popularity on social media and promote a self-produced reality TV show pilot based on his self-identified persona, the “Rock Doc.” Young prescribed more than 100,000 doses of hydrocodone, oxycodone, and fentanyl into the community.
“Mr. Young operated a medical practice with a wanton disregard for the health and well-being of his patients who entrusted him with their medical care,” said Acting Special Agent in Charge Erek Davodowich of the Drug Enforcement Administration (DEA) Louisville Field Division. “Any healthcare provider who conducts business in such a manner that causes harm to his patients and community should expect to meet the full weight of the justice system.”
“While we applaud the dedication of the overwhelming majority of medical providers, on occasion, a provider such as Mr. Young abuses his prescribing authority to serve self-interests and contribute to patient addiction and endangerment,” said Director David Rausch of the Tennessee Bureau of Investigation (TBI). “Alongside our valuable law enforcement partners, the healthcare community, and private citizens, the TBI stands committed to identifying, investigating, and bringing to justice those who seek to misuse their authority for personal gain or notoriety and put our community at risk.”
The DEA and TBI investigated the case, with valuable assistance from the Jackson Police Department.
Assistant Chief Kate Payerle and Trial Attorney Drew Pennebaker of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Yorba Linda Man and Colorado Man Plead Guilty to Fatally Shooting Wild Burros in Mojave Desert and Unlawfully Possessing FirearmsRead the Press Release
RIVERSIDE, California – An Orange County man and a Colorado man pleaded guilty today to federal criminal charges for shooting three wild burros (donkeys) to death in the Mojave Desert in San Bernardino County in late 2021.
Christopher James Arnet, 32, of Loveland, Colorado, and Cameron John Feikema, 36, of Yorba Linda, California, each pleaded guilty to one felony count of possession of an unregistered firearm, namely a short-barreled rifle, and one misdemeanor count of maliciously causing the death of a burro on public lands.
According to their plea agreements, on November 5, 2021, the defendants drove in Arnet’s truck to public land north of the town of Yermo, in San Bernardino County. Arnet and Feikema eventually got out of Arnet’s truck and were dressed in tactical gear, including ballistic helmets equipped with night vision goggles. Arnet and Feikema each possessed an AR-style firearm.
At approximately 1 a.m. on November 6, 2021, Arnet and Feikema collectively fired at least 13 rounds from their firearms, striking and killing three wild burros. Arnet fired at least five rounds from his firearm while Feikema fired at least four rounds from his weapon. One burro was shot near its spine towards its hind legs, which paralyzed the burro’s hind legs and caused the animal severe pain before it died. A bullet removed from that burro was fired from Arnet’s firearm.
Law enforcement later seized the firearms involved in the burro shootings at Arnet and Feikema’s residences. When the firearms were seized, each was a short-barreled rifle and therefore required to be registered under federal law. Neither of the firearms was registered.
United States District Judge Jesus G. Bernal scheduled July 8 sentencing hearings for the defendants, who will face a statutory maximum sentence of 10 years in federal prison for the firearm count and up to one year in federal prison for the burro death count. As part of the plea agreements, defendants agreed to forfeit or abandon the illegally possessed rifles, over 4,000 rounds of ammunition, night vision goggles, and other tactical gear.
The Bureau of Land Management investigated this matter.
Assistant United States Attorneys Cory L. Burleson, of the Riverside Branch Office, and Alexander Su, of the Asset Forfeiture & Recovery Section, are prosecuting these cases.
West Hills Woman Who Disposed of One Victim’s Body Sentenced to 20 Years in Federal Prison for Stealing Identities, Homes and AssetsRead the Press Release
LOS ANGELES – A San Fernando Valley woman has been sentenced to 240 months in federal prison for fraudulently obtaining ownership of real estate and money via identity theft and forged power-of-attorney forms in a near-$3.9 million scheme that included dismembering and disposing of a dead body to prevent the discovery of this victim’s death, the Justice Department announced today.
Caroline Joanne Herrling, 44, a.k.a. “Carrie Phenix,” of West Hills, was sentenced late Friday by United States District Judge Maame Ewusi-Mensah Frimpong. Judge Frimpong also ordered Herrling to pay $3,887,051 in restitution.
“This defendant’s misconduct was both greedy and grotesque, causing profound pain to the victims and their loved ones,” said United States Attorney Martin Estrada. “There must be serious consequences for those who prey on vulnerable communities, such as older adults, and my office will remain steadfast in bringing these offenders to justice.”
“The U.S. Postal Inspection Service will continue to work diligently with our local law enforcement partners to protect our communities from criminals who target our most vulnerable population,” said Inspector in Charge Carroll Harris of the Los Angeles Division. “Today’s sentencing shows that justice will be served to those who commit such criminal acts.”
“The LAPD would like to thank our federal partners at the US Postal Inspection Service and the United States Attorney’s Office, without whom a resolution in this case would not have been possible,” said Los Angeles Police Deputy Chief Alan Hamilton.
According to court documents, Herrling and her co-conspirators preyed on vulnerable victims by searching for properties in affluent neighborhoods that appeared unkempt. For example, Herrling used online mapping programs and visited nicer neighborhoods to search for algae-filled swimming pools or overgrown shrubs to identify houses with vulnerable victims who were unable to care for their properties.
After finding such a home in Sherman Oaks in 2020, Herrling and her co-conspirators broke into the residence, where an elderly victim resided. At some point in September 2020, the victim died – investigators are uncertain how – and they believe that Herrling and others took over the property while his body decomposed in his home. Rather than reporting his death, Herrling and others in the conspiracy left his body in his house while they looted his assets. Herrling used a forged power-of-attorney form so she could pretend to act on the victim’s behalf while stealing his real estate and financial accounts.
In October 2021, law enforcement began investigating the case when neighbors reported the victim missing. According to court documents, Herrling identified herself to police as a close friend of the victim and his family. She also was listed as the trustee of the victim’s family trust – which purportedly had been created by the victim’s mother, who died in June 2017 – but in fact was a forgery. She told police that the victim had moved from Sherman Oaks to Carpinteria, which was not true because the victim was already dead.
After Herrling learned of the police investigation into the missing victim, her co-conspirators and she executed an elaborate scheme to ensure his body was never found and his death remain unreported, this to support the idea that the victim agreed to distribute his assets to Herrling and her co-conspirators.
Herrling and her co-conspirators moved the victim’s body to her apartment in West Los Angeles, where they attempted to dissolve his body in a concoction of chemicals, investigators found. When that did not work, Herrling and her co-conspirators dismembered the body, placed the pieces in vacuum-sealed bags and moved the victim’s body to the Bay Area. Another member of the conspiracy who owned a sailboat assisted in disposing of the mutilated remains of the deceased victim into San Francisco Bay, the investigation revealed. The victim’s remains have never been found.
During Friday’s sentencing hearing, Judge Frimpong said this victim was “a man and a human being,” but Herrling “did not see that” and instead treated him “like a cash register.”
The deceased victim was the listed executor and beneficiary to the will of another victim, but this document was another forgery that Herrling claimed to have “discovered” in a safe deposit box rented by the deceased victim’s mother, court papers state. Based on this forged will, the missing victim was to inherit an estate worth more than $1.7 million – assets that ultimately fell under Herrling’s control as the trustee for his estate.
Herrling and her co-conspirators also defrauded a third victim and sold his home without his consent by using a conspirator with fake identity documents to pose as the victim. Herrling set up accounts to receive the proceeds of the sale of this victim’s real estate, a transaction that generated approximately $1.5 million. According to court documents, this victim, who was already suffering from mental health issues, took his own life after losing his home. Herrling later used her ill-gotten gains to purchase a residence in West Hills.
The total loss in this case was $3,887,051.
Herrling pleaded guilty in March 2023 to one count of conspiracy to commit wire fraud. She has been in federal custody since January 2023.
One of Herrling’s accomplices – Matthew Jason Kroth, 50, of Tarzana – pleaded guilty in October 2023 to one count of conspiracy to commit wire fraud and one count of possession with intent to distribute methamphetamine. He faces up to 20 years in federal prison for wire fraud, and up to 40 years for methamphetamine trafficking when he is sentenced on June 7.
The United States Postal Inspection Service and the Los Angeles Police Department, Valley Bureau Homicide are investigating this matter. Significant assistance was provided by the Los Angeles Joint Regional Intelligence Center.
Assistant United States Attorney Andrew Brown of the Major Frauds Section prosecuted this case.
U.S. Attorney Ismail Ramsey Announces Policies Underlying Whistleblower Pilot ProgramRead the Press Release
SAN FRANCISCO – Today, United States Attorney Ismail Ramsey publicly announced the release of new policies underlying the Northern District of California (NDCA) Whistleblower Pilot Program. The recently-announced NDCA Whistleblower Pilot Program (attached and published here) is designed to proactively uncover criminal conduct in the District.
U.S. Deputy Attorney General Lisa Monaco announced the pilot program on March 7, 2024, as part of her keynote address to the American Bar Association’s 39th National Institute on White Collar Crime in San Francisco, California. During the keynote address, Deputy A.G. Monaco observed that the program complements the Department of Justice’s Voluntary Self Disclosure (VSD) programs—programs that encourage companies to take responsibility for misconduct within their organizations. The Whistleblower Pilot Program is, “in essence, [a] voluntary self-disclosure program[ ] for individuals.” Like the VSD program, the new Whistleblower Pilot Program rewards self-disclosure, in part by “offering non-prosecution agreements to certain categories of at-fault individuals who self-disclose wrongdoing . . . .”
United States Attorney Ramsey said:
“Our District’s new Whistleblower Program creates a strong incentive for wrongdoers to come forward, report crimes, and cooperate with us in several critical areas – fraud, public corruption, and theft of trade secrets. In exchange for the self-disclosure of unknown federal crimes and for ongoing cooperation against other individuals, qualifying whistleblowers can receive a promise from this Office not to prosecute them.
Our message to companies and individuals alike is straightforward: If you know a crime has been committed, you have a limited window to come forward and receive leniency. If you choose not to come forward, someone else will, and then you will face prosecution and punishment. To get on the right side of the law and take advantage of this program, email us using the instructions on our website.”
The Whistleblower Pilot Program encourages early and voluntary self-disclosure of criminal conduct by individual participants in certain non-violent offenses. In exchange for self-disclosure and cooperation against others involved in the criminal conduct, the Office of the United States Attorney in the NDCA will enter into a non-prosecution agreement where certain specified conditions are met, including, importantly, the condition that the Government was not previously aware of the criminal conduct that is the subject of the disclosure. By providing clarity on the requirements and the benefits of such self-disclosure, the published policies incentivize individuals and their counsel to provide actionable and timely information. That will, in turn, help bring more misconduct to light and better protect the communities within the District.
As with all internal policies of the U.S. Attorney’s Office, this program provides guidance to prosecutors. Nothing in these policies creates any substantive or procedural rights, privileges, or benefits enforceable in any administrative, civil, or criminal matter by prospective or actual witnesses or parties. It remains at all times in the sole discretion of the U.S. Attorney’s Office to determine whether an individual has satisfied each of the conditions necessary for the Office to enter into a non-prosecution agreement in exchange for the individual’s cooperation, and, where the Office has determined that any of those conditions are not met, it remains at all times in the sole discretion of the Office to determine whether to extend a non-prosecution agreement in exchange for the individual’s cooperation.
U.S. Attorney Dena J. King Leads Panel Discussion with Student Government Representatives on Youth Violence Prevention and InterventionRead the Press Release
CHARLOTTE, N.C. – Forty-eight student government representatives from high schools in North Carolina’s westernmost counties and the Eastern Band of Cherokee Indians gathered today at the Cherokee High School on the Qualla Boundary for the 2024 Western North Carolina Student Council Spring Conference (WNC Conference).
The annual conference is an opportunity for high school student leaders to exchange ideas and information on important topics that impact their schools, network with other student body representatives, and collaborate on how to engage their campus communities.
WNC Conference organizers invited U.S. Attorney Dena J. King again this year to lead a panel on youth violence disruption, prevention and intervention. During the panel discussion, U.S. Attorney King shared information on the contributing factors of youth violence and encouraged students to trade ideas with their peers on how to prevent and stop incidents of violence in their schools. U.S. Attorney King also stressed the important role student governments play in facilitating solutions that can reduce acts of violence and enhance safe learning. Over the course of the panel, students had an opportunity to ask questions and share their perspectives on the causes and circumstances that may lead to youth violence and offered possible remedies to help reduce violence on school grounds.
“Student council members are elected to be the students’ voice within their schools and represent the interests, concerns and needs of their peers,” said U.S. Attorney King. “As student leaders, they are also tasked with raising issues that may impact academic achievement and prevent students from thriving in their classrooms. I encourage all students attending the conference to network with each other, share their experiences, and facilitate ideas that can be implemented in their own high schools.”
U.S. Attorney King also stressed the importance of developing effective communication and leadership skills, increasing student involvement within the community, and facilitating positive interactions with law enforcement.
U.S. Attorney King noted, “Today’s event is an opportunity to connect with student leaders, encourage them to make the right choices and develop skills and ideas that will be beneficial to their schools and the students they represent. Helping young people understand the root causes of violence, listening to their input, and sharing perspectives on how to increase safety in their schools can make our broader communities better and safer and strengthen the ties between law enforcement and the youth population we seek to nurture, serve and protect.”
Two Men Plead Guilty to Roles in Methamphetamine Trafficking Organization, and Kanawha County Woman Pleads Guilty to Aiding Co-DefendantRead the Press Release
HUNTINGTON, W.Va. – Today, two men pleaded guilty today to roles in a drug trafficking organization (DTO) responsible for distributing large quantities of methamphetamine and fentanyl in the Southern District of West Virginia, and a Kanawha County woman pleaded guilty to aiding and abetting one of their co-defendants.
Christopher Anthony O'Dell, 38, of Hurricane, pleaded guilty to distribution of quantities of methamphetamine and fentanyl and Shakur Raekwan Joyce, also known as “Cheeta,” 23, of Huntington, pleaded guilty to possession with intent to distribute a quantity of methamphetamine. The woman, Sharon Lyn Teston, 62, of Nitro, pleaded guilty to aiding and abetting the possession with intent to distribute a quantity of a mixture and substance containing methamphetamine.
According to court documents and statements made in court, on August 18, 2023, O’Dell sold approximately 1.1 grams fentanyl and 3.5 grams of methamphetamine for $200 to a confidential informant at O’Dell’s Hurricane residence. O’Dell admitted to the transaction and to arranging it beforehand with the confidential informant by text message.
O’Dell further admitted to participating in the DTO with other individuals from approximately November 2022 through November 2023. The DTO participants used a St. Albans residence to store and distribute fentanyl and methamphetamine. O’Dell conducted distributions and transported various individuals from the St. Albans residence to a Ninth Avenue residence in Huntington where they received additional amounts of fentanyl and methamphetamine before O’Dell transported them back to the St. Albans residence.
On August 24, 2023, Teston traveled with Gary Diaz, a co-defendant of O’Dell and Joyce, to the Ninth Avenue residence in Huntington, where Diaz received approximately 1 pound of methamphetamine. Teston admitted that Diaz gave her the methamphetamine and she hid it in her pants before they drove from Huntington to Nitro. A law enforcement officer conducted a traffic stop of their vehicle on Interstate 64 in Hurricane. During the traffic stop, an officer located and seized the methamphetamine hidden in Teston’s pants. Teston admitted that she knew Diaz was a methamphetamine distributor and that he intended to distribute the methamphetamine she concealed for him.
On August 28, 2023, a law enforcement officer conducted a traffic stop of a vehicle driven by O’Dell in St. Albans. The officer seized approximately 51 grams of fentanyl and two muzzleloading pistols from the vehicle during the traffic stop. O’Dell admitted that co-defendant Jashawn William Lawson was a passenger in his vehicle during the traffic stop and that he was aware that Lawson was in possession of fentanyl that Lawson was transporting to St. Albans to distribute. O’Dell further admitted to possessing the seized firearms.
On November 15, 2023, law enforcement officers served an arrested warrant on Joyce at his Huntington residence. Officers conducted a search of the residence with Joyce’s consent and found a quantity of methamphetamine in his bedroom. Joyce admitted that he possessed the methamphetamine and intended to distribute it.
Joyce further admitted to participating in the DTO from at least August 2023 to in and around November 2023. Joyce transported methamphetamine and collected and transported drug proceeds on behalf of other individuals, and received methamphetamine that he distributed to various customers. Joyce admitted that he possessed approximately 877 grams of methamphetamine seized by law enforcement officers during a September 20, 2023 traffic stop of a vehicle in which he was traveling on I-64 in Hurricane.
O'Dell, Joyce and Teston are scheduled to be sentenced on July 17, 2024. Each faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
O'Dell, Joyce, Lawson and Diaz 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. Teston was among the 27 individuals indicted, but pleaded guilty in a separate case.
O’Dell and Joyce are among eight defendants who have pleaded guilty in the main case. The indictment against Lawson, Diaz 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 cases.
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 Nos. 3:23-cr-180 (O’Dell and Joyce) and 3:24-cr-8 (Teston).
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Two Brothers Sentenced to Prison for Multi-District Scheme to Defraud the United States Postal Service, UPS, and Citizens BankRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Zumar Dubose, 35, of Atlantic City, NJ, and Abdush Dubose, 37, of Boynton Beach, FL, were sentenced by United States District Judge Wendy Beetlestone, in connection with their scheme to defraud and obtain money from the United States Postal Service, UPS, and Citizens Bank.
Zumar Dubose was sentenced on Friday, March 15, 2024, to 125 months’ imprisonment, five years of supervised release, and restitution of $281,223.
Abdush Dubose was sentenced on Thursday, March 14, 2024, to 57 months’ imprisonment, three years of supervised release, and restitution of 281,223.
Their brother and codefendant Kariem Dubose, 42, of Philadelphia, PA, was sentenced on February 15, 2024, to 24 months’ imprisonment, three years of supervised release, and restitution of $47,813.09.
In May 2023, a federal jury convicted Zumar and Abdush Dubose on mail fraud, wire fraud, bank fraud, and money laundering conspiracy charges related to their fraud scheme, with Kariem Dubose convicted on mail fraud, wire fraud, and bank fraud charges.
Starting as early as October 2018, over the course of approximately 1.5 years, the defendants submitted over 1,200 fraudulent insured-parcel claims with the United States Postal Service and UPS and received almost $300,000 in ill-gotten gains. As part of the scheme, the Dubose brothers sent parcels to themselves containing items of no value, using insured U.S. Postal Service postage and UPS tracking labels. Their parcels often included worthless items like sand, cardboard, paper, and cheap plastic headphones. They then filed fraudulent claims with the U.S. Postal Service and UPS, claiming that these parcels contained valuable items such brand name headphones, designer sunglasses and clothing, and other electronic items. They claimed that these valuable items were lost or damaged in transit and attached sham proofs of value.
The defendants used numerous emails, addresses, postboxes, bank accounts and bank cards, fake individual names, and fictitious corporations, including “Urmajesty Banktruckfit Solutions,” “Miworld Three Incorporated,” and “4 Entertainment Corporation,” which were incorporated in the State of New Jersey, and “Seeds of Beauty Incorporated,” which was incorporated in the State of Florida. The U.S. Postal Service and UPS then issued claim checks to cover the defendants’ alleged losses, and the defendants deposited those checks into Citizens Bank accounts opened in the names of their fake companies. The defendants made these deposits through ATMs in Philadelphia, Pennsylvania, and elsewhere.
When the U.S. Postal Service and UPS refused to issue or deliver some of the fraudulently obtained claim checks, and when Citizens Bank placed a hold on a bank account that was used to deposit the fraud proceeds, the Dubose brothers were undeterred. Using fake names, the brothers repeatedly sought recoveries from the U.S. Postal Service and UPS. They even filed lawsuits against UPS in various counties in New Jersey, using fake plaintiff names and falsely claiming that UPS did not pay them funds that they were owed. The defendants also filed lawsuits against Citizens Bank, again using false identities, in an effort to obtain the funds from their fraud scheme.
“The Dubose brothers made their fraud a family affair,” said U.S. Attorney Romero. “They took advantage of the U.S. Postal Service and UPS policies intended to make customers with legitimate losses whole, collecting hundreds of thousands of dollars they weren’t entitled to in the process. We and our partners are committed to shutting down flagrant fraud schemes like this and holding the perpetrators accountable.”
“I want to thank the United States Attorney’s Office for the work and support they put into in convicting and sentencing the Dubose brothers,” said Christopher Nielsen, the Inspector in Charge of the Philadelphia Division of the U.S. Postal Inspection Service. “The two brothers each received significant sentences as a result of their efforts to steal from the United States Postal Service and the United Parcel Service. These two individuals defrauded the Postal Service’s shipping insurance service by claiming shipping losses they never incurred. Together with our partners at the Postal Service’s Office of Inspector General, Postal Inspectors unraveled an elaborate scheme that resulted in almost $300,000 in losses to the Postal Service and UPS.”
“The USPS OIG will continue to work with our law enforcement partners to vigorously investigate these indemnity fraud cases. Hopefully the sentences handed down will be a deterrent to those who might attempt to defraud the USPS by filing false claims,” said Jeffrey Krafels, Executive Special Agent in Charge, USPS OIG Mid-Atlantic Area Field Office.
The case was investigated by the United States Postal Service Office of the Inspector General and the United States Postal Inspection Service and prosecuted by Assistant United States Attorneys Louis D. Lappen and J. Jeanette Kang. UPS and Citizens Bank provided crucial cooperation in the investigation.
Troy Felon Indicted for Possessing a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
ALBANY, NEW YORK – Richawn McClain, age 25, of Troy, New York, was ordered detained today following an indictment filed last week alleging that he possessed a firearm in furtherance of a drug trafficking crime.
United States Attorney Carla B. Freedman and Special Agent in Charge Frank A. Tarentino III of the Drug Enforcement Administration (DEA), New York Division, made the announcement.
McClain allegedly possessed a Glock .40 caliber handgun that had been modified into a machinegun, and a cocaine-fentanyl mixture and more than 900 oxycodone pills, which he intended to sell. The indictment also alleges that McClain unlawfully possessed the firearm as a previously convicted felon. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charges filed against McClain carry a mandatory prison term of at least 5 years and up to life, a supervised release term of at least 3 years and up to life, and a maximum $1 million fine. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
United States Magistrate Judge Daniel J. Stewart ordered McClain detained pending a trial before United States District Judge Mae A. D’Agostino.
The DEA is investigating the case, which Assistant U.S. Attorney Jonathan S. Reiner is prosecuting.
Toppenish Man Sentenced to Prison for Strangling and Threatening His Partner with a FirearmRead the Press Release
Yakima, Washington - Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that Tyler Jonas Senator, age 24, of Toppenish, Washington has been sentenced after pleading guilty to one count of Brandishing a Firearm During and in Relation to a Crime of Violence, and one count of Assault of a Spouse, Intimate Partner, or Dating Partner by Strangling or Suffocating. Chief United States District Judge Stanley A. Bastian imposed a sentence of 84 months and 1 day imprisonment to be followed by 5 years of supervised release.
According to court documents and information presented at the sentencing hearing, on April 23, 2023, Senator, and his partner, who are both enrolled members of the Yakama Nation, were driving in the victim’s vehicle. Senator assaulted the victim by grabbing the victim’s neck and strangling her, leaving bruises and scratches around the victim’s throat. Later that day, Senator and the victim were inside their house in Toppenish. Senator resumed the assault, hitting, kicking, and biting the victim. Senator also hit the victim in the head with the butt of a rifle, then pointed the firearm at the victim and threatened her.
“Mr. Senator assaulted the victim, who is the mother of his young child, by choking her and hitting her with a firearm. I commend the bravery of the victim in coming forward,” said U.S. Attorney Waldref. “Everyone deserves to live in a safe home free of domestic violence. We recognize that indigenous communities suffer domestic violence at much higher rates than many other demographics. We are committed to addressing violent crimes in Indian country and elsewhere and holding perpetrators accountable.”
“While no sentence will take away the horror of being assaulted by a trusted partner, we hope this case shows our continued commitment to fighting back against violent crime on our state’s reservations,” said Kelly M. Smith, Assistant Special Agent in Charge of the FBI Seattle field office.
This case was investigated by the Federal Bureau of Investigation and the Yakama Nation Police Department. This case was prosecuted by Assistant United States Attorney Michael Murphy.
Three District Men Indicted on Murder and Related ChargesRead the Press Release
WASHINGTON – On Friday, March 15, 2024, Steven Metts, 18, Keondre Carroll, 21, and Jovontae Wallace, 19, all of Washington, D.C., were indicted by a Superior Court grand jury for first-degree murder while armed for the shooting death of Raymond Ballard on January 23, 2024 and the armed kidnapping and robbery on a Metrobus related to a January 24, 2024 offense in Southeast Washington, D.C., announced U.S. Attorney Matthew M. Graves, Chief Pamela Smith of the Metropolitan Police Department (MPD), Chief Michael Anzallo of the Metro Transit Police Department (MTPD), and Special Agent in Charge Craig Kailimai of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Washington Field Division.
The sixteen-count indictment charges Metts, Carroll, and Wallace with one count of first-degree murder while armed, two counts of kidnapping while armed, one count of armed robbery, and four counts of possession of a firearm during a crime of violence. Both Metts and Carroll are each additionally charged with assault with a dangerous weapon and other related firearms charges. The defendants were presented before the Honorable Heidi Hermann who ordered that all three defendants be held without bond pending trial.
According to the government’s evidence, at approximately 9:00 p.m. on January 23, 2024, the defendants drove their vehicle into the 3000 block of Martin Luther King Jr. Avenue SE and fired approximately 29 shots, striking Raymond Ballard, an innocent bystander at the E-Z Mart. On January 24, 2024, the defendants drove that same vehicle into the 4600 block of Livingston Road SE and attempted to rob an individual of a Moose Knuckle jacket. When that individual fled onto a Metrobus, the defendants followed the Metrobus, boxing in the Metrobus at the intersection thereby restraining its movement. Two of the three defendants then exited the vehicle with firearms, boarded the bus, and took the victim’s Moose Knuckle coat. The defendants then exited the bus, got back into the vehicle, and began driving away while shooting at the bus.
This case is being investigated by the Metropolitan Police Department, Metro Transit Police Department, and the Bureau of Alcohol, Tobacco and Firearms. It is being prosecuted by Assistant U.S. Attorney Emma McArthur of the U.S. Attorney’s Office for the District of Columbia.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Terrebonne Parish Man Sentenced for Conspiracy to Distribute CocaineRead the Press Release
NEW ORLEANS, LOUISIANA – DIOGO HERNANDEZ, age 19, a resident of Bourg, La., was sentenced on March 14, 2024 to twelve (12) months imprisonment, three (3) years of supervised release, and a $100 mandatory special assessment fee, announced U.S. Attorney Duane A. Evans. HERNANDEZ previously pleaded guilty to conspiracy to distribute and possess with intent to distribute a quantity of cocaine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C) and 846.
According to court documents, HERNANDEZ was arrested on July 27, 2022, when he conspired with his co-defendant, Anthony Monreal-Fabela, to possess with intent to distribute cocaine that had been smuggled into the Port of New Orleans via container ship.
This case was investigated by the United States Homeland Security Investigations, the United States Customs and Border Protection, and the Jefferson Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorney J. Benjamin Myers of the Financial Crimes Unit.
Stilwell Resident Sentenced for Federal Drug and Firearm CrimesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Tyre Lowery Ford, age 34, of Stilwell, Oklahoma, was sentenced to a total of 120 months in prison for federal drug and firearm charges. Ford was sentenced to 60 months in prison for Possession with Intent to Distribute Methamphetamine and a consecutive 60 months in prison for Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
The charges arose from investigations by the Stilwell Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On November 10, 2022, Ford pleaded guilty to the charges. According to court documents, on February 23, 2022, Stilwell police responded to the report of a stolen car. Ford attempted to get out of the car and, in the process, made movements behind his back. Police recovered a 9mm handgun from the driver’s seat and approximately 100 grams of a substance containing methamphetamine from Ford.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Ford was remanded into the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Kevin Gross represented the United States.
Slidell Man Charged with Making False Statements to the United States Small Business AdministrationRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that DEAN MEILLEUR, age 57, a resident of Slidell, La., was charged on March 13, 2024, with making or using false writings or documents to the United States Small Business Adminstration (SBA), in violation of Title 18, United States Code, Section 1001(a)(3).
According to the charging document, MEILLEUR, to obtain Economic Impact Disaster Loans (“EIDL”), submitted false writings and documents to the SBA. In his EIDL applications, among other things, MEILLEUR falsely represented that he was the owner of a trucking business formed in 2017 and that he was eligible for EIDL funds. As a result of these false submissions, MEILLEUR obtained $147,400 from SBA.
MEILLEUR faces up to five years in prison, up to three years of supervised release, up to a $250,000 fine, and a $100 mandatory special assessment fee.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
U.S. Attorney Evans commended the Special Agents of the Federal Bureau of Investigation for their work on this case. Assistant United States Attorney Andre J. Lagarde of the Public Integrity Unit is in charge of the prosecution.
Saratoga County Man Pleads Guilty to Drug and Firearms OffensesRead the Press Release
ALBANY, NEW YORK –Anthony Luizzi, age 24, of Halfmoon, New York, pled guilty today to drug and gun crimes in connection with his trafficking in large amounts of fentanyl, cocaine and methamphetamine, as well as his possession of nearly 40 firearms.
United States Attorney Carla B. Freedman; Frank A. Tarentino III, Special Agent in Charge of the Drug Enforcement Administration (DEA), New York Division; and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), made the announcement.
Luizzi pled guilty to conspiracy to distribute and possess with intent to distribute cocaine, methamphetamine and fentanyl; possession with intent to distribute cocaine, methamphetamine and fentanyl; and possession of firearms in furtherance of drug trafficking crimes.
He admitted that he conspired to distribute, and possessed with intent and distribute, cocaine, methamphetamine and fentanyl, from his residence in Halfmoon, and from an apartment on Western Avenue in Albany. On May 23, 2023, law enforcement searched his Halfmoon apartment where they found more than 11 kilograms of fentanyl pills, along with five firearms, including a defaced shotgun. Law enforcement also seized $2,616 in cash as drug proceeds. On that same day, law enforcement also searched the Western Avenue apartment and found 34 more firearms, as well as more than 400 grams of fentanyl pills, more than 7,000 grams of pills containing methamphetamine, and more than 700 grams of cocaine.
Sentencing is scheduled for July 16, 2024, before United States District Judge Anne M. Nardacci. Luizzi faces at least 15 years and up to life in prison, a fine of up to $10 million, and a supervised release term of at least 5 years and up to life, to begin after he finishes his prison term. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The following defendants, who were also arrested on May 23, 2023, still face charges in connection with this case:
- Brandon Bartley was charged by criminal complaint on May 23, 2023, with possession with intent to distribute cocaine. He has been ordered detained pending trial.
- Jabree Jones was charged with a violation of the terms of his supervised release on May 23, 2023, and has been detained pending the resolution of the supervised release violation petition.
The charges against Bartley and Jones are merely accusations. Both defendants are presumed innocent unless and until proven guilty.
The DEA and the ATF are investigating the case, with assistance from the Saratoga County Sheriff’s Office, the United States Postal Inspection Service (USPIS), and U.S. Department of Labor, Office of Inspector General (USDOL-OIG). Assistant U.S. Attorney Alexander Wentworth-Ping is prosecuting the case.
Repeat offender sentenced for federal firearms offenseRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to three and a half years in prison for being a felon in possession of a firearm.
According to court documents, on June 9, 2023, two Richmond Police Officers observed Henry Leon Marrow, Jr, 34, conducting a narcotics transaction in a convenience store parking lot on Richmond Highway. The officers found Marrow in possession of 3.18 grams of cocaine and arrested him. Marrow later informed officers he was in possession of a firearm, and the officers found a loaded Glock 9mm handgun in his pants.
Marrow has previous felony convictions for robbery, abduction, and use of a firearm in commission of a felony in 2010 and shoplifting in 2019. As a previously convicted felon, Marrow cannot legally possess a firearm or ammunition. Marrow pleaded guilty on Nov. 9, 2023.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason S. Miyares, Attorney General of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Rick Edwards, Chief of Richmond Police, made the announcement after sentencing by U.S. District Judge Roderick C. Young.
Special Assistant U.S. Attorney Ellen Hubbard, an Assistant Attorney General with the Virginia Attorney General’s Office, and Assistant U.S. Attorney Olivia Emerson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-105.
Readout of U.S. Justice Department Senior Officials’ Trip to London to Join Foreign Partners in Advancing Efforts to Fight FraudRead the Press Release
On March 11 and 12, Deputy Assistant Attorney General (DAAG) Arun G. Rao of the Civil Division’s Consumer Protection Branch (CPB), Deputy Assistant Attorney General Lisa H. Miller of the Criminal Division’s Fraud and Appellate Sections, CPB leadership, London-based Justice Department Attaché Ken Kohl, and the department’s London-based Fraud Prosecutorial Liaison Vanessa Sisti attended the United Kingdom (U.K.) Home Office’s first Global Fraud Summit in London. Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division, FBI Deputy Assistant Director James C. Barnacle, U.S. Department of Homeland Security (DHS) Deputy Under Secretary Kelli Ann Burriesci, and DHS Attaché to the United Kingdom Craig Symons were also part of the U.S. delegation. They were joined by over 200 leaders from government, law enforcement, regulatory agencies, and the public and private sectors, as well as experts from the banking, technology, and telecommunications industries from 11 countries, including Australia, Canada, France, Germany, Italy, Japan, New Zealand, the Republic of Korea, Singapore, and the United Kingdom, along with INTERPOL, EUROPOL, and the United Nations’ Office on Drugs and Crime.
Parsons MediaU.S. Delegation at the Global Fraud Summit.
Parsons MediaDAAG Rao participated in discussions at Global Fraud Summit.
While at the Global Fraud Summit, DAAG Rao delivered remarks on behalf of the department at two plenary ministerial sessions on March 11, facilitated by U.K. Home Secretary James Cleverly, where he spoke about the scale of the global fraud threat and the role of law enforcement, as well as how governments and institutions can collaborate to protect the public. DAAG Rao and members of the U.S. delegation also participated in a series of strategic discussions on the nature of global fraud with experts from the banking, technology, and telecommunications industries on March 12. DAAG Miller and FBI Assistant Director Nordwall co-chaired a law enforcement roundtable about the challenges that law enforcement face when investigating fraud and what law enforcement can do to ensure they remain responsive to these evolving threats.
DAAG Miller and FBI Assistant Director Nordwall co-chaired a law enforcement roundtable.
The U.S. delegation joined international ministers to endorse a framework and commit to coordinate for purposes of giving global law enforcement agencies access to enhanced intelligence to stop fraud at the source and disrupt international fraud networks.
On March 11, DAAG Rao and the CPB leadership met with Josephine Teo, the Minister for Communications and Information of Singapore, to discuss ways to work together against shared transnational fraud threats.
DAAG Rao, CPB Director Amanda Liskamm, and CPB Senior Deputy Director of Criminal Litigation A.J. Nardozzi met with Singaporean delegation.
On March 13, DAAG Miller, DAAG Rao, and the CPB leadership met with Nick Ephgrave QPM, Director of the U.K.’s Serious Fraud Office to discuss areas of future collaboration.
DAAGs Rao and Miller with Director of the U.K.’s Serious Fraud Office Nick Ephgrave QPM (center).
On March 13, DAAG Miller separately met with Mark Francis, the U.K. Financial Conduct Authority’s Director of Wholesale and Unauthorized Business Investigations. DAAG Miller also participated in a panel of enforcers and regulators at the Practising Law Institute’s 23rd Annual Institute on Securities Regulation in Europe, where she summarized the Justice Department’s approach to combating complex fraud and foreign corruption schemes, recent enforcement efforts, and emerging developments in corporate criminal enforcement policies.
Global threats such as transnational fraud and money laundering require global responses. The visit helped further partnerships with foreign governments and technology and telecommunications sectors as well as strengthen existing law enforcement collaboration to combat, prevent, and protect the public from this shared threat. We look forward to continuing our efforts to investigate and prosecute individuals and corporations that commit cross-border crimes.
CPB leads the department’s Transnational Elder Fraud Strike Force, which investigates and prosecutes individuals and organizations engaged in foreign-based fraud schemes that disproportionately affect American seniors. The strike force was created in 2019 and expanded in 2022 by Attorney General Merrick B. Garland. The strike force is comprised of attorneys and analysts from CPB and 20 U.S. Attorney’s Offices. The FBI, U.S. Postal Inspection Service, and Homeland Security Investigations provide dedicated resources for identifying the most harmful elder fraud schemes and bringing perpetrators to justice.
The department coordinates its response to transnational fraud schemes through its leadership of the Global Anti-fraud Enforcement Network (GAEN), which CPB co-chairs, an alliance of law enforcement from numerous countries around the world. GAEN members work together to identify the highest impact threats posed by international fraud schemes, evaluate strategies for disruption, and engage in law enforcement operations to dismantle illegal conduct.
Reporting from consumers about fraud and fraud attempts is critical to law enforcement efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available through the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This department’s hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available. More information about the department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
The Fraud Section’s Market Integrity Unit is a national leader in prosecuting fraud and market manipulation involving cryptocurrency. Since 2019, the unit has charged cryptocurrency fraud cases involving over $2 billion in intended financial losses to investors from around the world. Prosecutors use blockchain data analytics and traditional law enforcement techniques to identify and prosecute complex cryptocurrency investment schemes; price and market manipulation involving cryptocurrencies; unregistered cryptocurrency exchanges involved in fraud schemes; and insider trading schemes affecting cryptocurrency markets. Prosecutors in the Unit frequently work in parallel with the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission and with law enforcement authorities across the globe. For further information, visit www.justice.gov/criminal/criminal-fraud/crypto-enforcement.
The UK GovernmentDAAG Rao (back row) with Ministers of 10 countries and senior officials of INTERPOL, EUROPOL, and the UN Office on Drugs and Crime.
Puerto Rico Police Officer and Two Other Individuals Charged with Conspiracy to Possess with Intent to Distribute Controlled SubstancesRead the Press Release
SAN JUAN, Puerto Rico – On March 17, 2024, the Federal Bureau of Investigation arrested Zachary Quiñones-Bon, Jouseph Quiñones-Andino and Alexander Martínez-Andino for conspiracy to possess with intent to distribute approximately 67 kilograms of cocaine, which they attempted to smuggle in luggage through the Luis Muñoz Marín International Airport, in violation of Title 21, United States Code, Sections 846 and 841(a)(1).
W. Stephen Muldrow, United States Attorney for the District of Puerto Rico, and Joseph González, Special Agent in Charge of the Federal Bureau of Investigation (FBI), made the announcement. The FBI and the Puerto Rico Police Bureau are investigating the case.
According to the government’s allegations in a criminal complaint filed in the case, on March 17, 2024, the three defendants conspired to possess with intent to distribute approximately 67 kilograms of cocaine at the Luis Muñoz Marín International Airport (SJU). In addition, Quiñones-Bon is charged with possessing a firearm in furtherance of the drug trafficking conspiracy, in violation of Title 18, United States Code, Section 924(c).
Quiñones-Bon, a PRPB police officer assigned to work at the airport, utilized his credentials and uniform to access one of the terminals at the airport with pieces of luggage full of cocaine. Once inside the terminal, Quiñones-Bon (in police uniform and armed with his police-issued firearm) handed off the luggage to Quiñones-Andino and Martínez-Andino, who then took the luggage to a bathroom and unloaded the contents into different bags. Quiñones-Andino and Martínez-Andino then attempted to board a domestic flight headed to the State of Florida. The luggage containing approximately 67 kilograms of cocaine was seized and the three individuals were arrested.
Assistant U.S. Attorneys César Rivera and Jonathan Gottfried of the Violent Crimes Section are in charge of the prosecution of the case. Special Agent Jonathan Vega of the Federal Bureau of Investigation is the case agent of the investigation. If convicted on the drug trafficking conspiracy, the defendants face a maximum sentence of life imprisonment. Quiñones-Bon also faces a mandatory consecutive sentence of five years to life imprisonment on the firearms charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This investigation is part of the Caribbean Corridor Strike Force (CCSF) and the Airport Investigations and Tactical Team (AirTAT). The specific mission of the CCSF is to identify, disrupt, and dismantle large scale international drug trafficking and money laundering organizations importing and further transshipping controlled substances, and related money laundering activities. CCSF signatory agencies include the Drug Enforcement Administration, Homeland Security Investigations, Coast Guard Investigative Service, Federal Bureau of Investigation, United States Marshals Service, and the U.S. Attorney’s Office.
AirTAT is an Organized Crime Drug Enforcement Task Force (OCDETF) co-located multi-agency initiative created to identify, locate, disrupt, dismantle, and prosecute Domestic and Transnational Criminal Organizations (DTCOs) and its operatives using the Luis Muñoz Marín International Airport (LMMIA), the Fernando Luis Rivas Dominicci Airport (FLRDA), and airport peripherals as platforms to smuggle narcotics, weapons, human cargo, counterfeit documents, illicit proceeds, and other contraband through these critical airport infrastructures.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Previously Convicted Sex Offender Sentenced to 120 Months for Possessing 10,000 Images of Child PornographyRead the Press Release
WASHINGTON – Morez King, 34, of Washington D.C, was sentenced today to 120 months in prison for amassing an enormous collection of child pornography on 10 different devices that held 10,000 images depicting the sexual exploitation of very young children, announced U.S. Attorney Matthew M. Graves and Special Agent in Charge Derek W. Gordon of Homeland Security Investigations (HSI) Washington, D.C.
King pleaded guilty on February 13, 2023, to one count of possession of child pornography, his second conviction for this offense in less than a decade. In addition to the 10 year prison sentence, U.S. District Court Judge Rudolph Contreras ordered King to serve 10 years of supervised release and to pay $88,000 in restitution to many of his child victims.
According to court documents, King first made contact with an undercover agent with Homeland Security Investigations in January 2020. King, aka “pervboi3” and “xmarcoboi,” chatted with an undercover agent over a social media app, then sent the agent graphic videos of child sexual abuse from a New Zealand-based website.
On December 15, 2021, HSI Special Agents and officers from the Metropolitan Police Department (MPDC) served a search warrant and subsequently searched King’s residence in Northeast Washington D.C. In the home, agents recovered two SD memory cards, four cellular telephones, two tablets, one laptop, and a MicroSD card reader belonging to King. Taken together, the defendant’s devices contained well over 10,000 images of child sexual abuse materials. Specifically, a Samsung Galaxy S20 held approximately 1,000 videos depicting the sexual abuse. King’s Samsung Galaxy S20 phone also had the Telegram application downloaded onto it. King used that application, which allows individuals to use encryption to send messages, to trade photographs and videos depicting the abuse of children. Further, King’s Galaxy S9 cell phone stored approximately 8,700 images depicting child sexual abuse, while an HP laptop recovered from the residence held about 1,800 videos depicting child sexual abuse. At the time that King possessed and distributed the images described above, he already had been convicted in 2015 in Fairfax County, VA, for possession of obscene material with a minor.
More than 20 victims have filed Victim Impact Statements in this case, and 14 of the victims submitted requests for restitution with the court.
This case was investigated by Homeland Security Investigations, Washington, DC. It was prosecuted by Assistant U.S. Attorneys Jocelyn Bond and Janani Iyengar, with valuable assistance from the Metropolitan Police Department.
Podiatrist Convicted of $4M Foot Bath Fraud SchemeRead the Press Release
Memphis, TN – A federal jury convicted a Tennessee podiatrist today for a scheme to defraud Medicare and TennCare by prescribing and dispensing medically unnecessary foot bath medications and obtaining millions of dollars in reimbursements.
According to court documents and evidence presented at trial, Nathan Lucas, D.P.M., 59, of Memphis, owned and operated a podiatry clinic, Advanced Foot & Ankle Care of Memphis LLC, as well as two in-house pharmacies. Lucas regularly prescribed antibiotic and antifungal drugs to be mixed into a tub of water for patients to soak their feet. These drug cocktails included capsules, creams, and powders that were not indicated to be dissolved in water and some of which were not even water soluble. Lucas chose these medications to prescribe and dispense based on their anticipated reimbursement amount, rather than medical necessity. From October 2018 through September 2021, Lucas caused his pharmacies to submit nearly $4 million in claims to Medicare and TennCare for dispensing expensive foot bath medications that were not medically necessary and not eligible for reimbursement, for which Lucas’s pharmacies were reimbursed over $3 million.
The jury convicted Lucas of five counts of health care fraud. He is scheduled to be sentenced on June 20 and faces a maximum penalty of 10 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Kevin G. Ritz for the Western District of Tennessee, Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG), and Director David Rausch of the Tennessee Bureau of Investigation (TBI) made the announcement.
HHS-OIG and TBI investigated the case.
Trial Attorney Sara E. Porter and Assistant Chief Justin M. Woodard of the Criminal Division’s Fraud Section are prosecuting the case, with assistance from the U.S. Attorney’s Office for the Western District of Tennessee.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Podiatrist Convicted of $4M Foot Bath Fraud SchemeRead the Press Release
A federal jury convicted a Tennessee podiatrist today for a scheme to defraud Medicare and TennCare by prescribing and dispensing medically unnecessary foot bath medications and obtaining millions of dollars in reimbursements.
According to court documents and evidence presented at trial, Nathan Lucas, D.P.M., 59, of Memphis, owned and operated a podiatry clinic, Advanced Foot & Ankle Care of Memphis LLC, as well as two in-house pharmacies. Lucas regularly prescribed antibiotic and antifungal drugs to be mixed into a tub of water for patients to soak their feet. These drug cocktails included capsules, creams, and powders that were not indicated to be dissolved in water and some of which were not even water soluble. Lucas chose these medications to prescribe and dispense based on their anticipated reimbursement amount, rather than medical necessity. From October 2018 through September 2021, Lucas caused his pharmacies to submit nearly $4 million in claims to Medicare and TennCare for dispensing expensive foot bath medications that were not medically necessary and not eligible for reimbursement, for which Lucas’s pharmacies were reimbursed over $3 million.
The jury convicted Lucas of five counts of health care fraud. He is scheduled to be sentenced on June 20 and faces a maximum penalty of 10 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Kevin G. Ritz for the Western District of Tennessee, Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG), and Director David Rausch of the Tennessee Bureau of Investigation (TBI) made the announcement.
HHS-OIG and TBI investigated the case.
Trial Attorney Sara E. Porter and Assistant Chief Justin M. Woodard of the Criminal Division’s Fraud Section are prosecuting the case, with assistance from the U.S. Attorney’s Office for the Western District of Tennessee.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Pennsylvania Resident Sentenced to Statutory Maximum of 30 Years in Prison for Shooting Death of Oconee County ManRead the Press Release
ATHENS, Ga. – A Pennsylvania resident convicted of federal charges resulting from the lengthy investigation into the shooting death of an Oconee County, Georgia, man was sentenced to the statutory maximum of 30 years in prison for his crimes in federal court today.
Ahkil Nasir Crumpton aka “Crump,” 26, of Philadelphia, Pennsylvania, was sentenced to the statutory maximum of 240 months in prison for interference with commerce by attempted robbery and 120 months in prison for false statement during the purchase of a firearm for a total of 360 months in prison to be followed by three years of supervised release by U.S. District Judge Tilman “Tripp” Self, III on March 18. Crumpton was found guilty by a federal jury of all counts on Oct. 25, 2023. The defendant is not eligible for parole. Crumpton is facing state charges for murder and other offenses in Georgia.
“Ahkil Crumpton’s violent crime ended Elijah Wood’s young life and has been the cause of immeasurable pain to many people in the Oconee County community and beyond,” said U.S. Attorney Peter D. Leary. “Local, state and federal agencies have worked tirelessly to seek justice on behalf of Elijah. Our hope is the conclusion of the federal case offers some peace for all those who have been affected by this tragedy.”
“Crumpton’s crime was senseless, tragic and irreversible,” said Robert Gibbs, Senior Supervisory Resident Agent of FBI Atlanta’s Athens office. “This sentencing reflects the commitment of the FBI to working with our law enforcement partners to hold violent offenders accountable to greatest extent the law allows. We hope that Elijah Wood’s family can find some sense of healing and justice in this sentence.”
“NIBIN is proven technology used to link the criminal use of firearms with the person who pulled the trigger,” said ATF Assistant Special Agent in Charge Beau Kolodka. “In this case, NIBIN allowed investigators to successfully connect both shootings to the defendant. Working alongside our local, state and federal partners, ATF is committed to using every resource at our disposal to reduce violent crime and hold violent offenders accountable.”
According to court documents and evidence presented at trial, Crumpton was alone when he entered the RaceTrac gas station and convenience store on Macon Highway in Watkinsville, Georgia, on March 19, 2021, where Elijah Wood was working as the store clerk, filling in for a sick coworker. Crumpton’s face was covered, and he was wearing dark clothing and football gloves. There was another customer in the store; Crumpton is seen on surveillance video exiting and then returning at 1:15 a.m. Upon his return, Crumpton approached Wood, who was standing behind the counter at the cash register. Crumpton pointed a Glock 19 pistol with a weapon mounted light at Wood, firing one round at close range towards Wood, striking him in the chest. Wood’s girlfriend testified at trial that she was on a FaceTime call with Wood at the time. Crumpton ran out of the store without taking any money or merchandise. Wood died at the scene. The Oconee County Sheriff’s Office (OCSO) located one 9mm shell casing from the counter between two of the cash registers.
Four months later, on July 17, 2021, Crumpton was seen exiting the South Street Diner at 140 South Street, Philadelphia, Pennsylvania, at 3:18 a.m. to retrieve a Glock 43 pistol from a vehicle and was approached by Anthony Jones. Surveillance video from a nearby business captured the encounter between Jones and Crumpton. Jones brandished a silver handgun and pointed it at Crumpton, then appeared to grab the car keys out of Crumpton’s left hand. Jones forcefully removed the Glock 43 pistol from Crumpton’s right pocket while simultaneously holding him at gunpoint. When Jones turned around following the robbery and began to run away, Crumpton pulled a Glock 19 pistol from his waistband and fired 13 gunshots that ultimately struck and killed Jones. The spent 9mm shell casings ejected from Crumpton’s handgun were collected by law enforcement and later submitted to ATF’s National Integrated Ballistic Information Network (NIBIN) for comparison testing. The analysis confirmed that the firearm used in the RaceTrac murder in Oconee County, Georgia, was the same firearm used in the Philadelphia, Pennsylvania, shooting.
On the morning of March 16, 2022, FBI and ATF agents arrested Crumpton in Philadelphia on a murder warrant issued out of the Superior Court of Oconee County, Georgia. Crumpton jumped out of his bedroom window to escape arrest, but he was taken into custody by FBI SWAT following a chase. Inside Crumpton’s bedroom, agents located the Glock 19 pistol in his backpack that was confirmed in ballistics testing to be the one used in the shooting deaths of Elijah Wood in Oconee County and Anthony Jones in Philadelphia. In addition, agents found items of clothing worn by Crumpton in both shooting deaths and a loaded AR-15 rifle.
Crumpton was a former member of the University of Georgia (UGA) football team, where he played wide receiver during the 2017 and 2018 season and attended UGA as a student from the fall of 2017 to the spring of 2021, although he did not graduate. At the time of Elijah Wood’s murder, Crumpton resided at an apartment in Watkinsville, Georgia, less than two miles from the RaceTrac, with his teammate Juwan Taylor. Taylor testified at trial that Crumpton came to their apartment after the shooting holding the pistol and was visibly upset saying, “I didn’t mean to do it – I just wanted the money, I just shot him at the store, at the store.” Crumpton explained further that when he lifted the gun up, it “just went off.” Taylor said he was frightened for his own safety and did not tell anyone. In July 2021, Crumpton returned to live in his hometown of Philadelphia.
Co-defendant James North Armstrong, 35, of Commerce, Georgia, testified that Crumpton was a client of his at his tattoo studio. Armstrong testified that Crumpton asked him to purchase a gun for him. Armstrong admitted that he illegally purchased the Glock 19 for Crumpton on Feb. 8, 2021, at the Franklin Gun Shop in Athens, Georgia, by falsely claiming to be the buyer on the Firearms Transaction Record-Form 4473 when Crumpton was the actual buyer. It is a federal offense to lie on Form 4473. Armstrong pleaded guilty to one count of false statement during the purchase of a firearm on Oct. 3, 2023, and faces a maximum of ten years in prison and a $250,000 fine. Sentencing for Armstrong is March 20.
Crumpton was originally indicted on four federal charges (for more information, please see https://www.justice.gov/usao-mdga/pr/federal-murder-attempted-robbery-firearms-charges-filed-shooting-death-oconee-county). The U.S. Supreme Court’s ruling in United States v. Taylor, handed down a month and ten days after Crumpton’s federal indictment, found that attempted Hobbs Act robbery was not a crime of violence. Therefore, Counts Two and Three in Crumpton’s original indictment were dismissed prior to trial.
This case was made possible by investigative leads generated from the ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, please visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
The case was investigated by the Oconee County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), FBI, GBI, the Athens-Clarke County Police Department and the Philadelphia Police Department, with assistance from the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
Assistant U.S. Attorneys Mike Morrison and Daniel Peach prosecuted the case for the Government.
Owner of Bay Area Real Estate Company Charged with Wire Fraud and Aggravated Identity TheftRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco indicted Vikram Srinivasan, charging him with wire fraud and aggravated identity theft in connection with an alleged fraudulent real estate investment scheme, announced United States Attorney Ismail J. Ramsey and FBI Special Agent in Charge Robert Tripp.
The indictment was filed February 29, 2024, and unsealed earlier today. According to the indictment, Srinivasan, 31, of Fremont, operated, controlled, and at least partially owned Paragon Holdings, LLC, a San Francisco Bay Area-based company that he used to facilitate the fraud. Specifically, the indictment describes how in August of 2019, a victim (identified in the indictment only as “R.K.”) provided money to an individual for the purchase of real estate in San Francisco and, after fearing the invested money had been fraudulently obtained, eventually met with Srinivasan. Srinivasan represented to the victim that he (Srinivasan) could salvage the prior real estate deal. According to the indictment, rather than salvage the deal, Srinivasan made things worse. For example, Srinivasan claimed he could retrieve the victim’s money; however, rather than retrieve the money, Srinivasan allegedly transferred at least some of it to an account in his own name and used the transferred money for his own purposes. Further, the indictment describes how Srinivasan represented that the victim’s money was held by certain escrow companies, when, in fact, it was not. Srinivasan allegedly provided false and fraudulent documentation in support of these representations.
In addition, Srinivasan allegedly solicited additional funds from the victim, promising to use the money for the purchase of additional real estate in Pleasant Hill. Srinivasan represented that he would use Paragon to facilitate the transaction. The indictment alleges the victim provided Srinivasan approximately $125,000 based on this and related misrepresentations. For example, the indictment alleges Srinivasan again allegedly provided fraudulent documentation that suggested there was a sale of the property from a seller through a real estate agent to Srinivasan, as Paragon. This sale of the property did not occur. Rather than use the money for the real estate transaction, Srinivasan transferred some of it to an account in his own name and used it for his own purposes. The indictment also alleges that Srinivasan unlawfully used means of identification of at least two other victims during and in relation to his fraud (identified in the indictment only as “B.R.” and “A.S.”).
In sum, the indictment charges Srinivasan with one count of wire fraud, in violation of 18 U.S.C. § 1343, and two counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A. If convicted of wire fraud, Srinivasan faces a maximum sentence of 20 years in prison, and a fine of $250,000 (or twice the value of the gain or loss from the scheme), plus restitution, if appropriate. In addition, if Srinivasan is convicted of aggravated identity theft, each count carries a mandatory two years in prison which would be consecutive to any prison term imposed for the wire fraud count. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Srinivasan made his initial appearance this morning before Chief Magistrate Judge Donna M. Ryu. His next scheduled appearance is scheduled for March 20, 2024, before Magistrate Judge Ryu for further proceeding including a further bail review.
Assistant U.S. Attorney Robert David Rees is prosecuting the case with the assistance of Katie Turner and Kay Konopaske. The prosecution is the result of an investigation by the FBI.