Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 5 February 2024
Schuylkill County Man Indicted for Distribution of Child PornographyRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Thomas Keister, age 68, of Schuylkill County, PA, was indicted on charges of distribution, receipt, and possession of child pornography.
According to United States Attorney Gerard M. Karam, the indictment alleges that Keister distributed, received, and possessed child pornography from March 2021 to October 2023, in Schuylkill County.
The case was investigated by Homeland Security Investigations - Allentown. 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 are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #
San Diego Drug Dealer Sentenced to Eight Years in Fatal Fentanyl OverdoseRead the Press Release
NEWS RELEASE SUMMARY—February 5, 2024
SAN DIEGO— Derek Neal Turfler of San Diego was sentenced in federal court today to 97 months in prison for his role in selling fentanyl pills to a 27-year-old woman who fatally overdosed on May 9, 2022.
According to his plea agreement, Turfler arranged a meeting to deliver fentanyl to the victim, Faithe Sioban Thogode, who died later that morning after using the fentanyl he provided. According to the government’s sentencing memorandum, the defendant was addicted to fentanyl, knew how deadly the drug was, and knew the consequences for selling the drug and causing another’s death, yet he sold her the drug anyway.
Turfler also knew that the victim worked at a drug and alcohol treatment center, had just celebrated five years of sobriety, and was going through a drug relapse when he sold her the deadly pills.
According to the sentencing memo, this was not the first time the defendant had seriously hurt someone due to fentanyl. In 2019, he was convicted in California state court of driving under the influence of fentanyl and causing great bodily harm and was on formal probation for that felony conviction at the time he sold the deadly pills to Thogode.
“Faithe Thogode is not a statistic. She was a loving daughter and a devoted friend to dozens of people who appeared in court today to show their lasting appreciation for her infectious laugh and kind heart,” said U.S. Attorney Tara McGrath. “The U.S. Attorney’s office is committed to our partnership with the DEA and the Overdose Response Team to hold accountable dealers—like this defendant—who deliver a fatal overdose.”
“Fentanyl kills and those who sell this lethal drug must be brought to justice,” said DEA Acting Special Agent in Charge Paul Abosamra.
Special Agents and Task Force Officers with the Drug Enforcement Administration’s Overdose Response Team (formerly known as Team 10) led the investigation into Thogode’s death. This case is the result of ongoing efforts by the U.S. Attorney’s Office, the Drug Enforcement Administration, the San Diego Police Department and the California Department of Health Care Services to investigate and prosecute the distribution of illegal drugs—fentanyl in particular—that results in overdose deaths. The Drug Enforcement Administration created the Overdose Response Team as a response to the increase in overdose deaths in San Diego County.
This case was prosecuted by Assistant U.S. Attorney Patrick C. Swan.
DEFENDANT Case Number: 23-cr-175-LL
Derek Neal Turfler Age: 29 San Diego, CA
SUMMARY OF CHARGES
Distribution of Fentanyl – Title 18, United States Code, Section 841(a)(1)
Maximum penalty: Twenty years in prison
AGENCIES
Drug Enforcement Administration
San Diego Police Department
State of California Department of Health Care Services
Previously Deported Mexican Man Sentenced to Nine Months’ Imprisonment for Illegal Re-EntryRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Alfredo Sandoval-Madrigal, age 50, was sentenced on January 30, 2024, by U.S. District Court Judge Sylvia H. Rambo, to nine months’ imprisonment on the charge of illegal re-entry into the United States by a previously deported alien.
According to United States Attorney Gerard M. Karam, Sandoval-Madrigal was last deported from the United States to Mexico in June 2018. He re-entered the United States again sometime after June 2018 without first obtaining legal permission to do so. Sandoval-Madrigal was encountered in Lebanon County, Pennsylvania, on June 12, 2023.
The matter was investigated by U.S. Immigration and Customs (ICE) Enforcement and Removal Operations (ERO). Assistant United States Attorney David C. Williams prosecuted the case.
###
Pornographic chat room discussions lead to convictionRead the Press Release
CORPUS CHRISTI, Texas – A 46-year-old Corpus Christi resident has pleaded guilty to distributing child pornography, announced U.S. Attorney Alamdar S. Hamdani.
The investigation into Jonathan Follis began when authorities discovered he was participating in chat rooms involving discussions of child pornography. Follis conducted the majority of these conversations using a cellular phone kept in his office at work.
Law enforcement later conducted a search at that office where they discovered a phone hidden under his keyboard. Follis admitted to using the phone to distribute child pornography.
Law enforcement conducted a forensic analysis of the phone. It confirmed Follis had been engaging in chat rooms discussing child pornography utilizing the username “frickenwierdo.” In addition to those rooms, Follis was participated in distributing child pornography in private chats.
The investigation revealed Follis distributed a video of child pornography as recently as April 5, 2023, approximately one month before law enforcement executed the search warrant leading to his arrest.
U.S. District Judge David Morales will impose sentencing May 1. At that time, Follis faces up to 20 years in federal prison and a possible $250,000 maximum fine.
He will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with assistance of the Corpus Christi Police Department’s Internet Crimes Against Children task force.
Assistant U.S. Attorneys Patrick Overman and John Marck prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Plaquemines Parish Man Pleads Guilty to Violations of the Federal Controlled Substances and Federal Gun Control ActsRead the Press Release
NEW ORLEANS, LOUISIANA – JORDAN MEAUX, age 33, of Buras, Louisiana, pled guilty on February 1, 2024 to one (1) count of conspiracy to distribute and possess with intent to distribute five grams or more of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(B), and 846, and one (1) count of being a felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8), announced U.S. Attorney Duane A. Evans.
According to court documents, On March 17, 2023, Plaquemines Parish Sheriff’s deputies executed a search warrant at MEAUX’s residence in Buras, Louisiana. Upon their arrival at the residence, deputies observed MEAUX in a vehicle in front of the residence. From the floorboard of the passenger seat where MEAUX was sitting, agents seized 19.66 grams of methamphetamine and a pipe. Inside the residence, deputies seized a Maverick Arms Model 88 Field Slide Action, 12-gauge shotgun.
In a post-arrest statement, MEAUX claimed ownership of all drugs seized and identified his drug source of supply. Deputies then arrested the source of supply when he arrived at MEAUX’s residence later that morning and seized 21.61 grams of methamphetamine and a gram of fentanyl from him. The source admitted to deputies that he stored methamphetamine at his place of employment. Deputies searched his place of employment and seized almost 18 grams of fentanyl from the source’s place of employment.
For the conspiracy count, MEAUX faces a mandatory minimum term of imprisonment of five years and maximum term of imprisonment of forty years, a fine of up to $5,000,000.00, a mandatory minimum term of supervised release of four years, and a mandatory special assessment fee of $100.00. For the felon in possession count, MEAUX faces a maximum term of imprisonment of fifteen years, a fine of up to $250,000.00, a maximum term of supervised release of three years, and a mandatory special assessment fee of $100.00.
This case was investigated by the Drug Enforcement Administration and the Plaquemines Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney André Jones of the Narcotics Unit.
Philadelphia Man Charged with Making Antisemitic and Islamophobic ThreatsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Yaniv Gola, 50, of Philadelphia, Pennsylvania, was charged today by information on eight counts of interstate communication of threats.
The information alleges that between August 2, 2022 and November 5, 2023, Gola used a Voice over Internet Protocol service to mask his phone number and make telephone calls threatening to injure, rape and kill eight different victims. On one of these calls, Gola threatened, “You f***ing Jew, now I know where you are. I’m going to kill all you Jews … You all should be shoved back into ovens. I’m going down to [victim’s business location] to kill you.” On another call, Gola said to a victim, “I want to put a bullet in your head … You f***ing Muslims.” In the most recent call, Gola threatened a victim, “You’re Jewish, I’m from Hamas. You’re animals and pigs … If you don’t leave that place, we’re going to blow you up.”
If convicted, the defendant faces a maximum possible sentence of 40 years’ imprisonment, three years of supervised release, a $2,000,000 fine and an $800 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney J. Jeanette Kang. The FBI was assisted by the Philadelphia Police Department, the Media Borough Police Department, the Cinnaminson Township (NJ) Police Department, the Newtown Township (Delaware County) Police Department, and the Haddonfield (NJ) Police Department.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Man Facing Federal Felony Charges for Illegally Operating a Drone During the National Football League’s AFC Championship GameRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Matthew Hebert, age 44, of Chadds Ford, Pennsylvania, on federal felony charges related to his flying a drone over M&T Bank stadium during the National Football League’s AFC Championship game in Baltimore on January 28, 2024.
The federal charges were announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation (“FBI”), Baltimore Field Office; Acting Special Agent in Charge Thomas Neighbors of the U.S. Department of Transportation, Office of Inspector General, Mid-Atlantic Regional Office; and Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police (“MSP”).
“Illegally operating drones poses a significant security risk that will lead to federal charges,” said United States Attorney Erek L. Barron, “Temporary flight restrictions are always in place during large sporting events.”
“Operating a drone requires users to act responsibly and educate themselves on when and how to use them safely,” said Acting Special Agent in Charge R. Joseph Rothrock of the FBI's Baltimore Field Office. “The FBI would like to remind the public of the potential dangers of operating a drone in violation of federal laws and regulations. The reckless operation of a UAS in the vicinity of a large crowd can be dangerous to the public, as well as interfere with other law enforcement and security operations.”
According to the affidavit filed in support of the criminal complaint, on January 28, 2024, the Federal Aviation Administration had put in place a temporary flight restriction (“TFR”) for M&T Bank Stadium in Baltimore during the National Football League (“NFL”) AFC Championship game, which precluded the flight of any UAS, including flying a UAS under the Exception for Recreational Flyers. A TFR temporarily restricts certain aircraft, including an UAS, from operating within a three nautical mile radius of the stadium. This is a standard practice for stadiums or sporting venues where a regular or postseason Major League Baseball, NFL, or NCAA Division One Game is occurring; or a NASCAR Cup, Indy Car, or Champ Series Race is occurring. The TFR goes into effect one hour before the scheduled start time and lasts until one hour after the end of a qualifying event.
During the game on January 28, 2024, the incursion of an unidentified and unapproved drone was deemed a serious enough threat that NFL Security temporarily suspended the game. MSP Troopers tracked the movement of the drone directly over the stadium and deployed to the area where the drone landed in the 500 block of South Sharp Street in Baltimore. FBI agents traveled to that location and assisted MSP Troopers. Hebert was located at that location and spoke with law enforcement.
Hebert advised law enforcement that he purchased a DJI UAS in 2021 and used the DJI account to operate the drone. The drone was not registered, nor did Hebert possess a Remote Pilot certificate to operate it. As detailed in the affidavit, on past occasions, the DJI application prevented him from operating the UAS due to flight restrictions and Hebert relied exclusively on the DJI application to tell him if he was not allowed to fly the UAS. The affidavit alleges that on January 28, 2024, Hebert assumed he was allowed to fly his UAS since the DJI application did not prevent him from doing so. Hebert allegedly flew the drone approximately 100 meters or higher for approximately two minutes. According to the affidavit, while in flight, Hebert captured approximately six photos of himself and the Stadium and may have taken a video as well.
If convicted, Hebert faces a maximum sentence of three years in federal prison for knowingly operating an unregistered UAS and for knowingly serving as an airman without an airman’s certificate. Hebert faces a maximum of one year in federal prison for willfully violating United States National Defense Airspace. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. An initial appearance and arraignment will be scheduled later this month.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the FBI, DOT OIG, and MSP for their work in the investigation, and thanked the FAA Office of Security & Hazardous Materials Safety for its substantial assistance. Mr. Barron thanked Assistant U.S. Attorney P. Michael Cunningham, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
# # #
Oldsmar Felon Sentenced to Seven Years for Firearms and Narcotics OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Sean Peter Brewer (36, Oldsmar) to seven years in federal prison for possessing a firearm as a convicted felon, possessing methamphetamine with the intent to distribute it, and possessing a firearm in furtherance of a drug trafficking crime. Brewer entered a guilty plea on September 1, 2023.
According to court documents, on November 11, 2022, officers from the Clearwater Police Department (CPD) responded to a gas station on Gulf to Bay Boulevard in Clearwater after receiving a report that a man was unresponsive in the driver’s seat of a vehicle parked at a gas pump. CPD and the Clearwater Fire Department discovered Brewer unconscious behind the wheel of his car. After Brewer was assessed by emergency services, CPD officers administered a field sobriety test, which Brewer failed. Officers arrested Brewer for driving under the influence and conducted a search incident to the arrest. That search revealed a backpack containing a scale with clear plastic baggies consistent with narcotics distribution, marijuana, multiple types of pills, 61 grams of a mixture and substance containing methamphetamine, a loaded Smith & Wesson M&P 9 Shield pistol and a “Cash App” debit card with the name “$seanbrew87.”
At the time of the incident, Brewer had a previous felony conviction for unlawful use of a two-way communication device. As a convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clearwater Police Department. It was prosecuted by Assistant United States Attorneys David W.A. Chee and David P. Sullivan.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Northern Ohio Man Sentenced to Prison for Coercion and Enticement of a Minor and Transportation of a Minor Across State Lines for Sexual ActivityRead the Press Release
TOLEDO – Jeffrey Deitsch, 36, of St. Marys and later Spencerville, Ohio, was sentenced on February 1, 2024, to 210 months in prison by U.S. District Judge Jeffrey J. Helmick, after he pleaded guilty to coercion and enticement of a minor and transportation of a minor across state lines for illicit sexual activity. Deitsch was also sentenced to 25 years of supervised release after he serves his prison term and ordered to pay a $200 special assessment and an additional assessment of $5,000 under the Justice for Victims of Trafficking Act.
According to court documents, Deitsch met a 15-year-old Illinois girl online, drove from Ohio to Illinois less than a week later, and transported her back to Ohio where he engaged in illicit sexual activity with her. On June 25, 2020, Allen County Sheriff’s Deputies were dispatched to a hotel in Lima after receiving a report that the Illinois runaway was staying there with Deitsch, who was more than twice her age. Sheriff’s Deputies located the victim who later advised that Deitsch had told her to tell anyone who asked that she was 18. Deitsch admitted to law enforcement that he knew the victim’s age before transporting her and engaging in the sex acts.
Deitsch had just been released from state prison the month before, after having served a prison term for abduction of a different female.
The investigation was conducted by the Federal Bureau of Investigation in Lima, Ohio. This case was prosecuted by Assistant U.S. Attorneys, Tracey Tangeman and Angelita Cruz Bridges.
Nigerian National Pleads Guilty to Fraud ChargesRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Uchenna Christian Nlemchi pleaded guilty in federal court to one count each of wire fraud and conspiracy to commit money laundering. Nlemchi, 31, a Nigerian national, will remain in custody pending sentencing, which has not been scheduled.
A federal grand jury indicted Nlemchi on May 24, 2017. According to publicly available court records, in 2015, Nlemchi opened a bank account in Houston, Texas in the name of Jay Auto & Machine Parts, a fictional business, with the intent to siphon proceeds of political corruption in Nigeria to another individual in Nigeria. Between September 2015 and February 2016, Nlemchi received $868,295 into the account. Nlemchi withdrew approximately $167,000 in cash in person, $32,000 from ATMs, and transferred $75,000 to his personal bank account. Nlemchi transferred the rest of the money to various businesses and individuals at the direction of his co-conspirators.
In his plea agreement, Nlemchi admitted that he learned the money was procured through romance scams that his co-conspirators were running, not political corruption, and that by receiving the money, he facilitated the scams.
Nlemchi was arrested on the indictment in June of 2017 and released on conditions pending trial. In Oct. of 2017, Nlemchi violated the conditions of his release, and an arrest warrant was issued. At that time, Nlemchi fled the country and was believed to have returned to his native Nigeria. The FBI pursued Nlemchi for five years before locating him in Hungary. Nlemchi was extradited to the United States and arrested on June 6, 2023.
The Albuquerque Division of the FBI investigated this case with assistance from the Albuquerque Police Department during the extradition process. Assistant U.S. Attorney Jeremy Peña is prosecuting the case.
View the Plea Agreement###
24-55
New York Resident Sentenced After Pleading Guilty to Cocaine Distribution ConspiracyRead the Press Release
NEW ORLEANS, LOUISIANA – PEDRO SARANTE, age 42, a resident of Bronx, New York, was sentenced on February 1, 2024 by United States District Judge Carl J. Barbier to ninety-six (96) months imprisonment, 3 years of supervised release, and a $100.00 mandatory special assessment fee, after previously pleading guilty to conspiracy to distribute and possess with intent to distribute a quantity of cocaine hydrochloride, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 846, announced U.S. Attorney Duane A. Evans.
According to court documents, on May 2, 2022, a Louisiana State Trooper stopped a 2005 Peterbilt tractor with a New Jersey license plate, for a motor carrier inspection, on Interstate 12 East. The trooper identified the driver and the passenger, and confirmed that the passenger, SARANTE, owned the tractor.
When interviewed by the trooper regarding their itinerary and cargo, neither man could describe their cargo or itinerary. Later on, troopers consensually searched the vehicle, seized three (3) rolling duffel bags containing approximately seventy-four (74) kilograms of suspected cocaine and arrested both occupants.
SARANTE later admitted that he was hired to travel from the Bronx Borough, of New York City, to Baytown, TX, to pick up a load of narcotics and transport them to Newark, NJ. SARANTE also admitted that he was going to be paid $1,000.00 per kilogram, once he delivered the drugs to Newark.
This case was investigated by the U.S. Drug Enforcement Administration and the Louisiana State Police. The prosecution was handled by Assistant United States Attorney André Jones of the Narcotics Unit.
New York Man Sentenced for Mailing Fentanyl to MaineRead the Press Release
PORTLAND, Maine: A New York man was sentenced today in U.S. District Court in Portland for distributing fentanyl through the U.S. Postal Service (USPS).
U.S. District Judge John A. Woodcock, Jr. sentenced Tyler Dean, 49, to 24 months in prison followed by three years of supervised release.
According to court records, in June 2020, Dean shipped an envelope via USPS Priority Mail Express from the Schenectady, New York area to a residence in Rockland, Maine using an alias. Text and Facebook messages confirmed Dean mailed the envelope and knew that he was sending a controlled substance but did not know the identity of the substance he shipped. Lab testing confirmed that the envelope contained fentanyl. The package’s recipient and their spouse died of accidental overdoses the day the package arrived.
The U.S. Postal Inspection Service, Rockland Police Department, and Maine Attorney General’s Office investigated the case.
Fentanyl listed as a cause of death in 78% of Maine overdose deaths in 2023: According to the December 2023 Maine Monthly Overdose Report, from January 2023 thru December 2023, 78% of confirmed overdose deaths in Maine included fentanyl or fentanyl analogs, alone or in combination with other drugs. To find help dealing with substance use disorder for yourself or a loved one in Maine, including finding naloxone (Narcan) to have on hand and accessible in the case of an opioid overdose emergency, visit https://knowyouroptions.me.
###
New Britain Resident Pleads Guilty to Child Exploitation OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that LUIS A. ROSADO, 30, of New Britain, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in New Haven to possession of child pornography.
According to court documents and statements made in court, in May and June 2022, the National Center for Missing and Exploited Children (“NCMEC”) received two CyberTipline reports from Kik Messenger that two separate Kik Messenger accounts had been used to upload video files depicting the sexual abuse of children. The investigation connected both Kik Messenger usernames to Rosado and determined that, between April and June 2022, he used them to upload and distribute 104 video files depicting the sexual abuse of children, including prepubescent children.
Rosado, who resided in Manchester at the time of the offense, was arrested on October 6, 2022.
At sentencing, which is not scheduled, Rosado faces a maximum term of imprisonment of 20 years. He is released on a $100,000 bond pending sentencing.
This matter has been investigated by Homeland Security Investigations (HSI), the Connecticut State Police, the Manchester Police Department, and the Connecticut Center for Digital Investigations. The case is being prosecuted by Assistant U.S. Attorney Daniel E. Cummings.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Miami armed career criminal sentenced to 30 years in federal prisonRead the Press Release
MIAMI – On Jan. 25, a Miami man was sentenced to 30 years in federal prison, followed by five years of supervised release, for unlawfully possessing a firearm and ammunition as an armed career criminal. The sentence comes after a jury convicted him in October 2023.
As shown at trial and sentencing, this case involved an eight-day span where Demetris Kewan Mackie, 29, of Miami, Florida, possessed and used the same gun to shoot at two victims, injuring one.
On April 12, 2023, Mackie pistol-whipped and shot a male victim outside a laundromat in Miami. Miami-Dade Police Department (MDPD) officers responded to the scene. When MDPD officers arrived, they found a blood trail on the ground that led them to where the victim had collapsed. The next morning, the victim advised MDPD officers that a male with a silver-topped gun and a teardrop-shaped tattoo next to his right eye had pistol-whipped him before shooting at him the day before. Surveillance footage verified the victim’s story.
Three days later, North Miami Beach Police Department (NMBPD) officers responded to another shooting. This time the victim was unharmed and was able to identify Mackie as the attacker.
On April 20, 2023, MDPD officers arrested Mackie. At the time of the arrest, Mackie was carrying a silver-topped gun whose test-fired casings matched the casings from both shootings.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division announced the sentence imposed by U.S. District Judge Rodolfo A. Ruiz II.
ATF Miami Field Office investigated the case with assistance from MDPD and NMBPD. Assistant U.S. Attorneys Zachary A. Keller and Vanessa Bonhomme prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20204.
###
Mescalero Man Charged with Domestic ViolenceRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Ronnie Pernell Evans appeared in federal court on a criminal complaint charging him with assault by strangulation and/or suffocating a spouse or intimate partner. Evans, 20, of Mescalero, and an enrolled member of the Mescalero Apache Tribe, will remain in custody pending trial, which has not been scheduled.
According to the criminal complaint, on Nov. 8, 2023, Evans confronted Jane Doe’s outside her house and they got into an argument. When Jane Doe tried to enter the home, Evans blocked her path and grabbed her by the throat with one hand and the back of her head with the other and began pushing her towards her car. Evans and Jane Doe tripped over something on the path and Jane Doe fell backwards and hit the back of her head on concrete. Evans got back up and continued dragging Jane Doe towards his car, at which point a neighbor intervened and Evans fled the scene.
Responding officers later stopped Evans on Highway U.S. 70 and arrested him.
A criminal complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted of the current charge, Evans faces up to 10 years in prison.
The Bureau of Indian Affairs investigated this case. Assistant U.S. Attorney Joni Autrey Stahl is prosecuting the case.
View the Criminal Complaint# # #
24-56
Maryland Man Sentenced to 14 Years’ Imprisonment for Bank RobberyRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on February 1, 2024, United States District Court Judge Jennifer P. Wilson sentenced James Henderson Bryant III, age 46, of Westminster, Maryland, to 14 years’ imprisonment for bank robbery. Judge Wilson also ordered Bryant to serve five years on supervised release after the conclusion of his prison sentence and ordered him to pay BB&T and Citizens Banks restitution of more than $26,000.
According to United States Attorney Gerard M. Karam, in July 2021, a little more than two months after being released from nearly 13 years in state prison, Bryant stole more than $3,000 from a BB&T Bank branch in Hanover, Pennsylvania using a demand note. In August 2021, Bryant robbed two different BB&T Bank branches in Gettysburg, and Spring Grove, Pennsylvania, threatening tellers that he had a firearm before fleeing with cash. In September 2021, Bryant robbed a Citizens Bank branch in Dillsburg, Pennsylvania, this time brandishing what looked like a handgun at three tellers before stealing more than $6,200. Bryant was arrested on October 5, 2021, minutes after robbing a Citizens Bank branch in Carlisle, Pennsylvania, while brandishing what appeared to be a firearm. Days following Bryant’s arrest, he assaulted a corrections officer while being transported to a local hospital for medical care, for which charges remain pending. According to court records, Bryant was charged federally with bank robbery in December 2021, and pleaded guilty in January 2023.
The matter was investigated by the Federal Bureau of Investigation with assistance provided by the Pennsylvania State Police, Penn Township Police Department, Gettysburg Police Department, York Area Regional Police Department, Carroll Township Police Department, and the Carlisle Township Police Department. Assistant United States Attorney Christian T. Haugsby prosecuted the case.
# # #
Martha's Vineyard Man Sentenced to More Than Eight Years in Prison for Armed Bank RobberyRead the Press Release
BOSTON – An Edgartown man was sentenced today for robbing a Falmouth bank. Defendant zip-tied bank employees and customers, brandished a firearm, placed a purported bomb on the counter and fled the scene in the vehicle of a bank customer.
Petar Petyoshin, 40, was sentenced by U.S. District Court Judge Angel Kelley to 100 months in prison to be followed by five years of supervised release. In October 2023, Petyoshin pleaded guilty to one count of armed bank robbery.
On April 8, 2023, Petyoshin departed Martha’s Vineyard aboard a Steamship Authority vessel at 7 a.m. and arrived at Woods Hole in Falmouth. At approximately 8:58 a.m. on April 8, 2023, Petyoshin entered the Rockland Trust Bank in Falmouth, placed a purported bomb on the teller counter and brandished a firearm. Petyoshin pointed the firearm at the tellers and customers, telling one bank employee, “I’m robbing you,” before having the customers and bank employees zip-tie each other’s hands together. Petyoshin then had two tellers place over $20,000 in cash from the bank into a brown bag, took a customer’s car keys and fled the scene in the customer’s vehicle. Petyoshin then boarded a 1:15 p.m. return ferry to Martha’s Vineyard.
On May 23, 2023, Petyoshin was arrested on state charges in connection with the robbery. A subsequent search of his residence in Edgartown resulted in the recovery of thousands of dollars in cash bundled together in Rockland Trust money bands, zip ties and clothing items Petyoshin was captured wearing on surveillance footage both before and after the robbery. Additionally, 57 firearms and a large quantity of ammunition were seized during the search. The same jacket worn by Petyoshin during the robbery was recovered during a search of Petyoshin’s personal locker at the Oak Bluffs Water Department where he was employed. The investigation also determined that the Facebook page for Petyoshin’s clothing store, Dapper Martha’s Vineyard, displayed photos of the same clothing – including jacket, sunglasses and wig – he wore during the bank robbery.
Immediately following the robbery, Petyoshin made a several thousand-dollar cash downpayment on a lease for a new Mercedes.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and John. E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the Falmouth and Edgartown Police Departments; Barnstable County Sheriff’s Department; and the Cape & Islands District Attorney’s Office. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit prosecuted the case.
Man Sentenced for Unlawful Firearm PossessionRead the Press Release
Acting United States Attorney Susan Lehr announced that Drew T. Frost, 41 of Omaha, Nebraska was sentenced January 25, 2024, in federal court in Omaha, for being a felon in possession of a firearm. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Frost to 41 months’ imprisonment. There is no parole in the federal system. After Frost’s release from prison, he will begin a 3-year term of supervised release.
On August 1, 2022, an ATF confidential source made a controlled buy of a Mossberg 12-gauge shotgun from Frost, who is a convicted felon. The confidential source, equipped with audio and video recording devices, drove to a meet location on the 42nd block of Frances Street (Frost’s residence). Frost came out of his apartment and entered the confidential source’s vehicle.
The confidential source gave Frost $360 of ATF buy fund money in exchange for the shotgun. Frost was previously convicted of Theft by Shoplifting (April 17, 2015), in the District Court of Lancaster County, Nebraska which is a felony. He is prohibited from possessing firearms.
The Mossberg 12-gauge shotgun was manufactured outside of Nebraska.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Luzerne County Man Sentenced to 42 Months’ Imprisonment for Fentanyl DistributionRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on February 1, 2024, United States District Court Judge Malachy E. Mannion sentenced Luis Polanco-Lopez, age 29, of Nanticoke, Pennsylvania, to 42 months’ imprisonment for distribution of fentanyl. Judge Mannion also ordered Polanco-Lopez to serve three years on supervised release after the conclusion of his prison sentence.
According to United States Attorney Gerard M. Karam, during the spring of 2022, Polanco-Lopez sold 1000, and on a second occasion 500, counterfeit prescription pills during controlled purchase operations conducted by law enforcement agents. The counterfeit prescription medication contained fentanyl, a dangerous and potentially lethal opioid. In all, Polanco-Lopez sold a total of 7.063 grams of pure fentanyl in the counterfeit pills, which is 3,531 doses of potentially fatal fentanyl.
The matter was investigated by the DEA with assistance provided by the Kingston, Pennsylvania Police Department. Assistant United States Attorney Todd K. Hinkley prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of opioids. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin and fentanyl traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
# # #
Last Defendants Sentenced for Central Valley Drug ConspiracyRead the Press Release
FRESNO, Calif. — Ignacio Alcantar Torres, 34, of McFarland, was sentenced today to 10 years and 10 months in prison, and on Jan. 22, 2024, Alexis Mendiola, 38, of North Hollywood, was sentenced to one year in prison for conspiring to distribute fentanyl and methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on four separate occasions, Alcantar served as a courier for Pedro Delgado-Montenegro, 43, a former resident of Porterville, and delivered 1,150 counterfeit oxycodone pills containing fentanyl and one-half pound of methamphetamine to an undercover officer for a total of $5,940. Delgado-Montenegro also arranged for Mendiola, his “pill source,” to deliver to an undercover officer 1,000 counterfeit oxycodone pills containing fentanyl. Alcantar and Mendiola are the last of eight defendants to be sentenced for the conspiracy.
This case was the product of an investigation by the Drug Enforcement Administration with assistance from the Federal Bureau of Investigation, the Porterville Police Department, the Coalinga Police Department, and the Fresno Police Department. Assistant U.S. Attorney Karen Escobar prosecuted the case.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Key figure in international cocaine trafficking operation sentenced to 20 years in federal prisonRead the Press Release
SAVANNAH, GA: A key conspirator in a Colombian drug trafficking operation has been sentenced to 20 years in federal prison for attempting to fly cocaine to other countries using U.S.-registered aircraft to evade scrutiny.
Agim Cerma, a/k/a “Jimmy,” 54, a citizen of Albania living in Colombia, was sentenced to 240 months in prison after pleading guilty to his role in a conspiracy to transport cocaine aboard U.S.-registered aircraft, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Cerma to serve three years of supervised release upon completion of his prison term and to be deported as part of his release conditions.
There is no parole in the federal system.
“International trafficking in illegal drugs represents a direct threat to the safety of the citizens of the United States, and this investigation and prosecution dismantles an operation planning to fly hundreds of kilos of cocaine out of Colombia,” said U.S. Attorney Steinberg. “We applaud the exceptional work of our law enforcement partners in shutting down this operation and bringing the conspirators to justice.”
As described in court documents and testimony, in 2020 the Drug Enforcement Administration, working with law enforcement agencies in Colombia, identified individuals involved in large-scale drug distribution. The investigation determined that Cerma and others were planning and coordinating production and transportation of hundreds of kilograms of cocaine from Cali, Colombia, to Europe via a U.S.-registered aircraft, hoping U.S. registration would avoid the additional scrutiny given to Colombian-flagged aircraft.
The scheme involved the payment of corrupt airport employees, production of more than 300 kilograms of cocaine from a lab in Colombia, and payments toward the organization and execution of the scheme at approximately $300,000 in U.S. Currency. The investigation revealed Cerma to be the leader of the drug trafficking organization and conspiracies with co-defendants to export the cocaine using an U.S. registered aircraft.
Law enforcement authorities at the Bonilla Aragon International Airport in Cali later seized suitcases containing approximately 330 kilograms of cocaine destined for an aircraft traveling to Europe.
Cerma was arrested in Colombia in July 2021 and extradited to the United States in September 2023. Four Colombian co-defendants also were extradited to the United States, and three of them have entered guilty pleas in U.S. District Court: Jairo Fernando Cardona Lopez, 52, has been sentenced 175 months in prison; Edwin Durlandy Montilla Gonzalez, 39, has been sentenced to 150 months in prison; and Pedro Antonio Penagos Londono, 47, has been sentenced to 48 months. The fourth co-defendant, William Cruz Perez, 67, is awaiting trial and is presumed innocent unless and until proven guilty in court.
ADD AGENCY COMMENTS
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
The case was investigated by the U.S. Drug Enforcement Administration, with assistance from the U.S. Marshals Service, United States Customs and Border Protection, and the Georgia Ports Authority. The Justice Department’s Office of International Affairs and the Narcotic and Dangerous Drug Section’s Judicial Attaché’s office at the U.S. Embassy in Bogota provided significant assistance in securing the arrests and extraditions from Colombia. The case was prosecuted for the United States by Assistant U.S. Attorneys Marcela C. Mateo and Darron Hubbard.
Justice Department and State of North Carolina Secure $13.5 Million Agreement with First National Bank of Pennsylvania to Resolve Redlining Claims in North CarolinaRead the Press Release
The Justice Department and the State of North Carolina jointly announced today that First National Bank of Pennsylvania (FNB) has agreed to pay $13.5 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining predominantly Black and Hispanic neighborhoods in Charlotte and Winston-Salem, North Carolina. Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color, or national origin of residents in those communities.
“Lending discrimination violates the law and harms communities and entire families for generations,” said Attorney General Merrick B. Garland. “Today’s settlement will invest $13.5 million in expanding access to credit services for Black and Hispanic neighborhoods in Charlotte and Winston-Salem that for too long have been denied to them. With this settlement, the Justice Department’s Combating Redlining Initiative has now secured over $122 million in relief for communities across the country. But we recognize how much work we have left to do, and we are not letting up in our efforts to combat discrimination in lending wherever it occurs.”
“This agreement will have a transformative impact for Black and Hispanic communities, providing them with new opportunities to become homeowners, bank in their neighborhoods and create generational wealth,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “As we take time across the nation to commemorate Black History Month, we must also create space to acknowledge the ongoing harms caused by structural racism and long-term discrimination. Modern-day redlining is a stain on our economy and underscores the need to keep pushing for equal economic opportunity and racial justice in our country. The Justice Department stands ready to hold banks and financial institutions accountable to ensure that communities of color are not shut out of access to mortgage credit due to modern-day redlining.”
“The devastating effects of discriminatory lending that become entrenched in neighborhoods can reverberate through generations,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “The settlement announced today demonstrates our commitment to combating redlining and ensuring the equal access to credit required by law. We will continue our efforts to hold accountable financial institutions that avoid communities of color in their markets or erect barriers that make it harder for minority residents to access credit. Banks and mortgage companies should evaluate their lending practices and take immediate corrective action to reach underserved communities in their market areas.”
“When banks discriminate, it means hardworking people can’t buy a house, start a business, or invest in their futures,” said North Carolina Attorney General Josh Stein. “I want every person who calls North Carolina home to have a fair shot, and I’m pleased that this settlement will create better borrowing opportunities for all North Carolinians.”
The complaint alleges, from 2017 through 2021, FNB, including as successor in interest to Yadkin Bank, which it acquired in 2017, failed to provide mortgage lending services to predominantly Black and Hispanic neighborhoods in Charlotte and Winston-Salem, and discouraged people seeking credit in those communities from obtaining home loans. FNB’s home mortgage lending was focused disproportionately on white areas of Charlotte and Winston-Salem. For example, other lenders generated applications in predominantly Black and Hispanic neighborhoods at two-and-a-half times the rate of FNB in Charlotte and four times the rate of FNB in Winston-Salem. FNB’s branches in both cities were also overwhelmingly located in predominantly white neighborhoods, with the bank closing its sole branch in a predominantly Black and Hispanic neighborhood in Winston-Salem in 2021.
The complaint further alleges that FNB relied on mortgage loan officers working out of predominantly white areas to generate loan applications and that the bank did not track how its mortgage loan officers developed loan referrals or how they distributed the bank’s mortgage marketing materials.
The Justice Department and the State of North Carolina have resolved their claims via two proposed consent orders, which are both subject to court approval. The consent orders require FNB to invest $13.5 million to increase credit opportunities for communities of color in Charlotte and Winston-Salem. Specifically, FNB will:
- Invest at least $11.75 million in a loan subsidy fund to increase access to home mortgage, home improvement and home refinance loans for residents of majority-Black and Hispanic neighborhoods in FNB’s Charlotte and Winston-Salem service areas;
- Spend $1 million on community partnerships to provide services related to credit, consumer financial education, homeownership and foreclosure prevention for residents of predominantly Black and Hispanic neighborhoods in those service areas;
- Spend $750,000 for advertising, outreach, consumer financial education and credit counseling focused on predominantly Black and Hispanic neighborhoods in those service areas;
- Open three new branches in predominantly Black and Hispanic neighborhoods in Charlotte and Winston-Salem (two in Charlotte and one in Winston-Salem), with at least one mortgage banker assigned to each branch; and
- Hire a director of community lending who will oversee the continued development of lending in communities of color.
FNB also agreed to retain independent consultants to enhance its fair lending program and better meet the communities’ needs for mortgage credit. The bank will conduct a community credit needs assessment, evaluate its fair lending compliance management systems, and conduct staff trainings.
FNB worked cooperatively with the Justice Department and the State of North Carolina to resolve and remedy the redlining concerns that were identified and agreed to settle this matter without contested litigation. During the course of the investigation, FNB established a Special Purpose Credit Program to provide greater access to home loans in communities of color across the seven states where it does business and the District of Columbia.
With assets of over $45 billion, FNB is headquartered in Pennsylvania and operates approximately 350 branches throughout the District of Columbia, Maryland, North Carolina, Ohio, Pennsylvania, South Carolina, Virginia, and West Virginia. It is among the 100 largest banks in the United States.
In October 2021, Attorney General Garland and Assistant Attorney General Clarke launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since 2021, the department has announced 12 redlining resolutions and secured over $122 million in relief for communities of color that have been the victims of lending discrimination across the country.
A copy of the joint complaint and information about Justice Department’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the U.S. Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online.
###
Justice Department and State of North Carolina Secure $13.5 Million Agreement with First National Bank of Pennsylvania to Resolve Redlining Claims in North CarolinaRead the Press Release
The Justice Department and the State of North Carolina jointly announced today that First National Bank of Pennsylvania (FNB) has agreed to pay $13.5 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining predominantly Black and Hispanic neighborhoods in Charlotte and Winston-Salem, North Carolina. Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color, or national origin of residents in those communities.
“Lending discrimination violates the law and harms communities and entire families for generations,” said Attorney General Merrick B. Garland. “Today’s settlement will invest $13.5 million in expanding access to credit services for Black and Hispanic neighborhoods in Charlotte and Winston-Salem that for too long have been denied to them. With this settlement, the Justice Department’s Combating Redlining Initiative has now secured over $122 million in relief for communities across the country. But we recognize how much work we have left to do, and we are not letting up in our efforts to combat discrimination in lending wherever it occurs.”
“This agreement will have a transformative impact for Black and Hispanic communities, providing them with new opportunities to become homeowners, bank in their neighborhoods and create generational wealth,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “As we take time across the nation to commemorate Black History Month, we must also create space to acknowledge the ongoing harms caused by structural racism and long-term discrimination. Modern-day redlining is a stain on our economy and underscores the need to keep pushing for equal economic opportunity and racial justice in our country. The Justice Department stands ready to hold banks and financial institutions accountable to ensure that communities of color are not shut out of access to mortgage credit due to modern-day redlining.”
“The devastating effects of discriminatory lending that become entrenched in neighborhoods can reverberate through generations,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “The settlement announced today demonstrates our commitment to combating redlining and ensuring the equal access to credit required by law. We will continue our efforts to hold accountable financial institutions that avoid communities of color in their markets or erect barriers that make it harder for minority residents to access credit. Banks and mortgage companies should evaluate their lending practices and take immediate corrective action to reach underserved communities in their market areas.”
“When banks discriminate, it means hardworking people can’t buy a house, start a business, or invest in their futures,” said North Carolina Attorney General Josh Stein. “I want every person who calls North Carolina home to have a fair shot, and I’m pleased that this settlement will create better borrowing opportunities for all North Carolinians.”
The complaint alleges, from 2017 through 2021, FNB, including as successor in interest to Yadkin Bank, which it acquired in 2017, failed to provide mortgage lending services to predominantly Black and Hispanic neighborhoods in Charlotte and Winston-Salem, and discouraged people seeking credit in those communities from obtaining home loans. FNB’s home mortgage lending was focused disproportionately on white areas of Charlotte and Winston-Salem. For example, other lenders generated applications in predominantly Black and Hispanic neighborhoods at two-and-a-half times the rate of FNB in Charlotte and four times the rate of FNB in Winston-Salem. FNB’s branches in both cities were also overwhelmingly located in predominantly white neighborhoods, with the bank closing its sole branch in a predominantly Black and Hispanic neighborhood in Winston-Salem in 2021.
The complaint further alleges that FNB relied on mortgage loan officers working out of predominantly white areas to generate loan applications and that the bank did not track how its mortgage loan officers developed loan referrals or how they distributed the bank’s mortgage marketing materials.
The Justice Department and the State of North Carolina have resolved their claims via two proposed consent orders, which are both subject to court approval. The consent orders require FNB to invest $13.5 million to increase credit opportunities for communities of color in Charlotte and Winston-Salem. Specifically, FNB will:
- Invest at least $11.75 million in a loan subsidy fund to increase access to home mortgage, home improvement and home refinance loans for residents of majority-Black and Hispanic neighborhoods in FNB’s Charlotte and Winston-Salem service areas;
- Spend $1 million on community partnerships to provide services related to credit, consumer financial education, homeownership and foreclosure prevention for residents of predominantly Black and Hispanic neighborhoods in those service areas;
- Spend $750,000 for advertising, outreach, consumer financial education and credit counseling focused on predominantly Black and Hispanic neighborhoods in those service areas;
- Open three new branches in predominantly Black and Hispanic neighborhoods in Charlotte and Winston-Salem (two in Charlotte and one in Winston-Salem), with at least one mortgage banker assigned to each branch; and
- Hire a director of community lending who will oversee the continued development of lending in communities of color.
FNB also agreed to retain independent consultants to enhance its fair lending program and better meet the communities’ needs for mortgage credit. The bank will conduct a community credit needs assessment, evaluate its fair lending compliance management systems, and conduct staff trainings.
FNB worked cooperatively with the Justice Department and the State of North Carolina to resolve and remedy the redlining concerns that were identified and agreed to settle this matter without contested litigation. During the course of the investigation, FNB established a Special Purpose Credit Program to provide greater access to home loans in communities of color across the seven states where it does business and the District of Columbia.
With assets of over $45 billion, FNB is headquartered in Pennsylvania and operates approximately 350 branches throughout the District of Columbia, Maryland, North Carolina, Ohio, Pennsylvania, South Carolina, Virginia, and West Virginia. It is among the 100 largest banks in the United States.
In October 2021, Attorney General Garland and Assistant Attorney General Clarke launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since 2021, the department has announced 12 redlining resolutions and secured over $122 million in relief for communities of color that have been the victims of lending discrimination across the country.
A copy of the joint complaint and information about Justice Department’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the U.S. Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online.
Jefferson Parish Man Charged with Trafficking MethamphetamineRead the Press Release
NEW ORLEANS, LOUISIANA – COREY ESQUERRE, age 50, a resident of Jefferson Parish, was indicted on February 2, 2024, for possessing with intent to distribute fifty grams or more of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A), announced U.S. Attorney Duane A. Evans.
If convicted, ESQUERRE faces a mandatory minimum term of imprisonment of 10 years, up to life imprisonment, a fine of up to $10,000,000, at least 5 years of supervised release, and a $100 mandatory special assessment fee.
On July 31, 2023, Drug Enforcement Administration agents searched Mr. Esquerre’s residence pursuant to a state search warrant and discovered 1,917 grams of methamphetamine.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by the U.S. Drug Enforcement Administration. The prosecution is being handled by Assistant United States Attorney Lauren Sarver of the Narcotics Unit.
Highlands County man sentenced to 100 months for distribution of methamphetamineRead the Press Release
MIAMI – On Jan. 30, a Highlands County man was sentenced to 100 months in federal prison, followed by three years of supervised release, for distribution of methamphetamine. The sentence comes after his guilty plea on Sept. 27, 2023.
Between January and May 2023, Rafael Junior Morrero, 46, of Sebring, Florida, sold a total of 204.09 grams of pure methamphetamine on five separate occasions in Highlands County.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division, and Sheriff Paul Blackman of the Highlands County Sheriff’s Office (HCSO), announced the sentence imposed by U.S. District Judge Aileen M. Cannon.
DEA Miami Field Division, Port St. Lucie Resident Office and HCSO investigated the case. Assistant U.S. Attorney Christopher Hudock prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-14014.
###
Grand Island Women Sentenced for MethamphetamineRead the Press Release
United States Attorney Susan Lehr announced that Tarra Arcos, 47, and Glenda Aguilar, 67, both of Grand Island, Nebraska, were sentenced on Monday, February 5, 2024, in federal court in Lincoln, Nebraska for possession of methamphetamine with intent to distribute. Senior United States District Court Judge John M. Gerrard sentenced Arcos to 132 months’ imprisonment; and Aguilar to 120 months’ imprisonment. There is no parole in the federal system. After Arcos and Aguilar are released from prison, each will begin an 8-year term of supervised release. Approximately $66,000 in United States currency was forfeited to the United States as part of sentencing.
In March of 2023, investigators made a controlled purchase of meth from Glenda Aguilar at the residence of Tarra Arcos, Aguilar’s daughter. During this transaction, Aguilar stated that Arcos could supply a larger amount of meth.
The following day, investigators executed a search warrant at Arcos’ residence where they seized over 10 ounces of meth and approximately $66,000 in United States currency.
Tarra Arcos and Glenda Aguilar both have a prior federal conviction for selling meth.
This case was investigated by the Tri-Cities Drug Enforcement Team (TRIDENT) Task Force which is made up of officers from the Grand Island Police Department, Hall County Sheriff’s Office, Hastings Police Department, Adams County Sheriff’s Office, Kearney Police Department, Buffalo County Sheriff’s Office, Nebraska State Patrol, Homeland Security Investigations, and the Federal Bureau of Investigation.
Fresno Fentanyl Trafficker Sentenced to 9 Years in PrisonRead the Press Release
FRESNO, Calif. — Uriel Diaz-Santos, 21, of Fresno, was sentenced today to nine years in prison for possession with intent to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking crime, U.S. Attorney Phillip A. Talbert announced.
According to court documents, after two juveniles overdosed on fentanyl pills, investigators interviewed witnesses and reviewed phone records, ultimately developing enough evidence to obtain a search warrant for Diaz-Santos’s residence. On Nov. 2, 2021, investigators searched Diaz-Santos’s house and found thousands of fentanyl pills and a firearm.
This case was the product of an investigation by the Fentanyl Overdose Resolution Team (FORT), composed of officers from Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno and Clovis Police Departments. Assistant U.S. Attorney Justin J. Gilio prosecuted the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the U.S. Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Former Washougal, Washington resident sentenced to 15 years in prison for production of images of child sexual abuseRead the Press Release
Tacoma – A 29-year-old former resident of Washougal, Washington, was sentenced today in U.S. District Court in Tacoma to 15 years in prison for making videos of the rape of two infant children, announced U.S. Attorney Tessa M. Gorman. Steven Rian Price was convicted at trial of multiple felonies in Clark County Superior Court. Price was sentenced to 108 years in state custody. The 15-year federal sentence will run concurrently with the state sentence. At the sentencing hearing U.S. District Judge Benjamin H. Settle said, “The seriousness of this offense cannot be overstated. The crime was unspeakably cruel and depraved. No words can describe the horrors of the abuse… The victims will live with this for the rest of their lives.”
According to records in the case, Price was residing in a motel in Washougal. In summer 2019, Price used a smartphone to videotape the rape of an infant child. Later that year, Price used the online communication platforms Discord and Skype to share videos depicting the rape of the infant. Also in the summer of 2019, Price filmed the sexual assault of a second infant – the child of an acquaintance. In October 2019, the day after one of the videos was uploaded, Discord alerted law enforcement and Vancouver Police moved quickly to arrest Price.
The case was investigated by the Vancouver Police Department Digital Evidence Cybercrimes Unit.
The case is being prosecuted by Assistant United States Attorney Zachary Dillon.
Former Overland Park Business Owner Pleads Guilty to $800,000 COVID FraudRead the Press Release
KANSAS CITY, Mo. – A former Overland Park, Kansas, man pleaded guilty in federal court today to charges related to fraudulently receiving more than $800,000 under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Mirza Michael Reazuddin, 66, currently a resident of Lawrenceville, Georgia, pleaded guilty before U.S. Chief District Judge Beth Phillips to one count of wire fraud and one count of money laundering.
Reazuddin was a partner in a hotel operation called Grandview Hotel, LLC, which was established in 2013 and ceased operations in 2018. Another company then took over operations of the hotel until it ultimately closed in 2021.
The purpose of the CARES Act was to provide emergency financial assistance due to the economic impact caused by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration to provide low-interest Economic Injury Disaster Loans to eligible small businesses that experienced substantial financial disruption due to the economic impact of the COVID-19 pandemic. Additionally, the Paycheck Protection Program (PPP) authorized forgivable loans to small businesses to retain workers and maintain payroll, and make mortgage interest payments, lease payments, and utility payments. Under the PPP, both the principal and interest on those loans were eligible for forgiveness.
On June 25, 2020, Reazuddin, on behalf of Grandview Hotel (which had ceased operations), applied for and received a PPP loan in the amount of $384,100. Reazuddin made numerous false statements on the application and submitted false and fraudulent documents in support of the application.
On Jan. 26, 2021, Reazuddin, on behalf of Grandview Hotel, applied for and received a second draw of PPP funding in the amount of $420,000. Reazuddin made similar false statements on this application.
Under the terms of today’s plea agreement, Reazuddin must pay $804,100 in restitution to the Small Business Administration and forfeit to the government $804,100, which represents the proceeds he personally obtained from the scheme, as well as his residential property in Lawrenceville.
Under federal statutes, Reazuddin is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.
Former Brooklyn Tax Preparer Pleads Guilty in False Return SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Melinda Jacob, the former owner of a tax preparation business, pleaded guilty to a criminal Information charging her with the preparation of false tax returns. The proceeding was held before United States Magistrate Judge James R. Cho. When sentenced, Jacobs faces a maximum penalty of three years in prison as well as restitution and monetary penalties.
Breon Peace, United States Attorney for the Eastern District of New York, and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation (IRS-CI), announced the guilty plea.
“With the tax season upon us, today’s guilty plea underscores the message that tax preparers have an obligation to perform their duties honestly, and when they abuse their position by filing false information that defrauds the IRS, the return will be a felony conviction like this and additional penalties,” stated United States Attorney Peace.
“While most tax preparers are reputable, it is the bad apples like Melinda Jacob who spoil the bunch. She took advantage of her role and her clients by using their returns to steal money from the government. Jacob’s plea puts her a step closer the consequences of her dishonesty and deceit,” stated IRS-CI Special Agent-in-Charge Fattorusso.
Jacob owned and operated Melinda Jacob Tax Services, a tax preparation business located in her home in Brooklyn, New York. Between 2019 and 2022, Jacobs prepared false and fraudulent Forms 5695 for multiple clients. Form 5695 was an IRS form on which a taxpayer reported expenditures or costs associated with clean energy or energy efficient improvements to their home, and claimed one or both of the “Residential Clean Energy Credit” and the “Energy Efficient Home Improvement Credit” against their tax liability. A Form 5695, where applicable, is filed as an attachment to a taxpayer’s Form 1040. Jacob inflated her clients’ tax refunds by preparing and submitting to the IRS false tax returns that claimed fictitious expenses relating to solar water heaters and geothermal heat pumps that resulted in the clients receiving fraudulent Residential Energy Credits. In most cases, Jacob made up the energy expenses listed on her clients’ tax returns and did not discuss the Residential Energy Credit with her clients. As a result of these false Forms 5695, the IRS suffered an aggregate tax loss of approximately $1,151,761.
The case is being prosecuted by Assistant United States Attorney Raffaela S. Belizaire.
The Defendant:
Melinda Jacob
Age: 48
Lake Mary, FloridaE.D.N.Y. Docket No. 24-CR-35 (RER)
Former Bank Employee Sentenced for Bank FraudRead the Press Release
United States Attorney Susan Lehr announced that Jacqueline R. Brandt, 44, of Minden, Iowa, was sentenced on January 31, 2024, in federal court in Omaha, Nebraska for bank fraud. United States District Judge Brian C. Buescher sentenced Brandt to time served and five years of supervised release and ordered that she pay $64,102.52 in restitution. Brandt will be required to pay at least $1,000 per month toward restitution during her sixty-month term of supervised release.
During approximately November 2019 to July 2022, Brandt used her access as a Foundation One Bank employee to embezzle funds from customers’ accounts and to steal cash from the bank. Brandt fraudulently obtained a total of approximately $118,337.52, of which Foundation One Bank was able to recover $54,235.
This case was investigated by the Federal Bureau of Investigation.
Florida Man Sentenced to 10 Years in Prison for Selling Fentanyl over the Dark WebRead the Press Release
SACRAMENTO, Calif. — Chaloner Saintillus, 35, of Delray Beach, Florida, was sentenced today to 10 years and one month in prison for distributing controlled substances into the Eastern District of California using the dark web, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Saintillus operated multiple narcotics vendor accounts on the dark web under the username “chlnsaint,” through which he sold fentanyl, oxycodone, oxymorphone, and other narcotics in exchange for cryptocurrency. Taking advantage of the dark web’s anonymity, Saintillus completed more than 1,000 drug deals between August 2019 and August 2020 alone. Saintillus used the U.S. Postal Service to send his customers the fentanyl, opioids, and other narcotics they purchased from “chlnsaint.”
Law enforcement officers conducted 12 controlled purchases of narcotics from “chlnsaint” between April and October 2020. Agents identified Saintillus as “chlnsaint” through physical surveillance and analysis of financial, package tracking, and photographic records maintained by the Postal Service. Agents executed search warrants at Saintillus’s Florida residence in October 2020, during which they arrested Saintillus and seized narcotics, more than $20,000 in cryptocurrency, a firearm, and a suitcase full of ammunition. On April 6, 2023, Saintillus pleaded guilty to 12 counts of distributing controlled substances.
This case was the product of an investigation by Northern California Illicit Digital Economy Task Force (NCIDE), which is composed of agents from the Federal Bureau of Investigation, Homeland Security Investigations, the U.S. Postal Inspection Service, the IRS Criminal Investigation, and the Drug Enforcement Administration. NCIDE agents received assistance from the Palm Beach County Sheriff’s Office and the Delray Beach Police Department. Assistant U.S. Attorneys Sam Stefanki and Ross Pearson prosecuted the case.
Federal Jury Convicts Albuquerque Man of Federal Firearms OffensesRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that on Jan. 30, 2024, a federal jury returned two guilty verdicts against Walter Palmon Eddings, 40, of Albuquerque, after approximately two hours of deliberation. The jury convicted Eddings of two counts of being a felon in possession of a firearm and ammunition. Judge Kea W. Riggs presided.
A federal grand jury issued an indictment against Eddings on Feb. 24, 2022. According to evidence presented at trial and other publicly available court records, on Jan. 31, 2022, during a joint operation between the New Mexico State Police (NMSP) and the Albuquerque Police Department to apprehend a homicide suspect, a NMSP tactical team was surveilling the Ambassador Inn Hotel in Albuquerque. Prior to surveillance, the team was told that Eddings, who had recently been released from federal supervision, was known to frequent the Ambassador Inn, was a convicted felon, and may be armed and dangerous.
While conducting surveillance, several team members observed Eddings at the Ambassador Inn. Eventually, a team member observed Eddings follow another man, who was carrying a rifle in a soft case with the barrel sticking out, to the parking lot. The other man placed the rifle in the back seat of a vehicle. A short time later, a team member observed Eddings clean the same vehicle and reposition the rifle within the vehicle. Three individuals then entered the vehicle, including Eddings, and left the Ambassador Inn property. Officers followed the vehicle to a 7-Eleven gas station, where the team confronted Eddings and arrested him. At the time, Eddings was carrying a backpack with two stolen firearms inside.
Eddings will remain in custody pending sentencing, which has not been scheduled. At sentencing, Eddings faces up to 20 years in prison. Eddings has numerous prior felony convictions including for armed robbery, kidnapping, unlawfully stealing firearms from a federal firearms licensee, breaking and entering, and larceny.
The FBI Violent Crime Task Force investigated this case. Assistant United States Attorneys Timothy Trembley and Patrick E. Cordova are prosecuting the case.
# # #
24-52
Federal Inmate Sentenced to 21 Months in Prison for Possession of A Weapon at USP AllenwoodRead the Press Release
Williamsport– The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert John Palmer, an inmate at United States Penitentiary at Allenwood, was sentenced on January 30, 2024, to 21 months’ imprisonment by Chief United States District Court Judge Matthew W. Brann, for possession of contraband in prison.
According to United States Attorney Gerard M. Karam, Palmer was found in possession of an inmate-made weapon; specifically, a 5 and ¾ -inch piece of plastic sharpened to a point, commonly referred to as a “shank.”
This matter was investigated by the Federal Bureau of Investigation and the Bureau of Prisons. Assistant United States Attorney Luisa Honora Berti is prosecuting the case.
# # #
Federal Inmate Convicted of Assaulting Three Federal Corrections OfficersRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Thomas Waters, age 37, of Florence, South Carolina, was convicted following a jury trial of three counts of assaulting a federal officer. The trial, held before United States District Judge Malachy E. Mannion, spanned three days, and the jury deliberated for approximately two hours before returning its verdict.
According to United States Attorney Gerard M. Karam, Waters, a federal inmate at the United States Penitentiary at Canaan located in Waymart, Pennsylvania, assaulted three federal corrections officers which resulted in bodily injury. The evidence at trial showed that on January 18, 2023, while being counseled for a rule violation, Waters repeatedly struck a corrections officer in the head with his fists. During the assault, Waters disarmed the officer of his service baton and used it to strike the officer in the head. The officer suffered lacerations and bruising to his head and face and a hematoma to his shoulder. When additional corrections officers responded to assist, Waters bit two corrections officers in the arm and finger respectively. All three officers sustained bodily injury and required medical treatment at local hospitals. Following the incident, Waters boasted about the assaults to prison officials and on a recorded telephone call.
The case was investigated by the FBI-Scranton Division and the Special Investigations Section for the Bureau of Prisons. Assistant U.S. Attorneys Jeffery St John and Tatum Wilson are prosecuting the case.
The maximum penalty under federal law for each offense is 20 years of imprisonment, 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.
# # #
Federal Indictment Accuses Three Chicago Residents of Committing Carjackings and MurdersRead the Press Release
CHICAGO — A federal superseding indictment charges three Chicago residents with conspiring to commit multiple carjackings in the city and suburbs. The indictment also accuses them of committing a murder during an attempted carjacking and a second murder using a carjacked vehicle.
According to the indictment returned Thursday in U.S. District Court in Chicago, EDSON RESENDEZ, MAVERICK CELA, and PREZILA APREZA murdered Nabil Mahouar during an attempted carjacking in Chicago’s Dunning neighborhood on Sept. 21, 2020, and later that day used a car taken in another carjacking to fatally shoot Eduardo Triano in the city’s North Park neighborhood.
The superseding indictment renews firearm and carjacking charges filed in 2022 against Resendez and Cela for allegedly violently committing carjackings in Morton Grove, Ill., and Skokie, Ill. The new indictment adds Apreza as a defendant and charges her, Resendez, and Cela with conspiracy and firearm offenses, as well as two other carjackings in Skokie, Ill. and Berwyn, Ill.
The superseding indictment contains a notice of special findings that would make the defendants eligible for the death penalty if convicted of the new charges.
Resendez, 22, Cela, 22, and Apreza, 23, all of Chicago, are in law enforcement custody. Arraignments on the superseding charges have not yet been scheduled.
The superseding indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Skokie, Ill. Police Department, Chicago Police Department, Morton Grove, Ill. Police Department, and Berwyn, Ill. Police Department. The government is represented by Assistant U.S. Attorneys Cornelius A. Vandenberg and Simar Khera.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Resendez et al superseding indictmentFast Food Manager Charged with Wire Fraud for Embezzling More Than $140,000 from EmployerRead the Press Release
MINNEAPOLIS – A Woodbury man has been indicted for embezzling over $140,000 from his employer, announced U.S. Attorney Andrew M. Luger.
According to court documents, Timothy Michael Hill, Jr., 36, was employed by The Grove, Inc., to manage a Chik-fil-A franchise restaurant at the Minneapolis airport. As manager, Hill was responsible for collecting and making daily cash deposits into a safe deposit box.
According to court documents, between September 2022 and October 2023, Hill collected the daily cash receipts from The Grove’s airport restaurants and instead of depositing it into the safe deposit box, pocketed some or all of the cash. Hill used future cash receipts to cover his theft, creating a false impression that the cash deposits were delayed rather than stolen. Hill spent the stolen cash on jewelry, online sports betting, and the adult website Only Fans. He also transferred thousands of dollars through CashApp to various individuals, including several female colleagues in exchange for personal photos and videos.
In total, Hill knowingly and willfully embezzled approximately $144,000 from The Grove over a period of 13 months.
Hill was charged with five counts of wire fraud and will make his initial appearance in U.S. District Court on February 14, 2024.
This case is the result of an investigation conducted by the FBI and the Minneapolis Airport Police Department.
Assistant U.S. Attorney Matthew C. Murphy is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
False Claims Act complaint filed against former president and co-owner of mobile cardiac PET scan providerRead the Press Release
HOUSTON – The United States has filed a complaint under the False Claims Act against Rick Nassenstein, a resident of Florida and formerly the president, chief financial officer and co-owner of Illinois-based Cardiac Imaging Inc. (CII), a provider of mobile cardiac positron emission tomography (PET) scans.
The complaint alleges Nassenstein knowingly played a central role in a scheme whereby CII paid doctors exorbitant, above-fair market value fees who referred patients to CII for cardiac PET scans in violation of the Physician Self-Referral Law, also known as the Stark Law. It prohibits health care providers from billing Medicare for certain designated health services referred by a physician with whom the provider has a financial relationship, including a compensation arrangement, that does not meet any statutory or regulatory exception. Congress enacted the Stark Law to protect Medicare patients from financial arrangements that can adversely impact physicians’ decision making and lead to unnecessary services. Claims knowingly submitted to Medicare in violation of the Stark Law also violate the federal False Claims Act (FCA).
“Improper compensation arrangements unnecessarily drive-up healthcare costs and cloud a physician’s medical judgment,” said U.S. Attorney Alamdar S. Hamdani. “This complaint alleges that in an effort to increase profits, Nassenstein caused CII to enter into improper compensation arrangements with cardiologists who referred patients for cardiac PET scans. We are committed to enforcing the Stark Law and protecting Medicare from these types of improper financial relationships.”
“Financial relationships between healthcareproviders and referring physicians can undermine the objectivity of medical treatment decisions and increase the cost of care,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will enforce provisions designed to prevent prohibited financial conflicts to ensure that taxpayers and patients can have confidence that decisions about patient care are driven by the medical needs of patients rather than the financial interests of physicians or providers.”
Cardiac PET scans are nuclear medicine tests that doctors use to help assess heart function and diagnose cardiac disease. The United States’ complaint alleges CII provided cardiac PET scans on a mobile basis and paid the referring physicians, usually cardiologists, to provide the physician supervision required under Medicare rules. The United States alleges that from at least 2017 through June 2023, Nassenstein caused CII to enter into compensation arrangements with referring cardiologists, under which the cardiologists were paid as if they were fully occupied supervising CII’s scans, even though the cardiologists were actually providing care to other patients in their offices or were not even on site. The complaint alleges CII’s fees also purportedly compensated the cardiologists for additional services beyond supervision that were not actually provided.
The lawsuit was originally filed under the qui tam or whistleblower provisions of the FCA by Lynda Pinto, a former billing manager at CII. Under the FCA, private parties, known as relators, can file an action on behalf of the United States and receive a portion of the recovery. The FCA permits the United States to intervene in and take over the action, as it has done here. If a defendant is found liable for violating the FCA, the United States may recover three times the amount of its losses plus applicable penalties.
The Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas (SDTX) are handling the matter with assistance from the Department of Health and Human Services (HHS) Office of Inspector General. The case is captioned U.S. ex rel. Pinto v. Nassenstein, No. 18-cv-2674 (S.D. Tex.). CII and its current owner, Sam Kancherlapalli, previously settled related claims arising from the conduct described above. See “Mobile Cardiac PET Scan Provider and Founder to Pay $85 Million to Resolve Allegedly Unlawful Payments to Referring Doctors.”
SDTX Assistant U.S. Attorney Melissa M. Green and Trial Attorneys Samuel Lehman and Jake M. Shields of the Justice Department's Civil Division are handling the matter.
The investigation and prosecution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the HHS at 800-HHS-TIPS (800-447-8477).
The claims asserted in this case are allegations only, and there has been no determination of liability.
False Claims Act Complaint Filed Against Former President and Co-Owner of Mobile Cardiac PET Scan ProviderRead the Press Release
The United States has filed a complaint in the U.S. District Court for the Southern District of Texas under the False Claims Act (FCA) against Rick Nassenstein, a resident of Florida and formerly the president, chief financial officer, and co-owner of Illinois-based Cardiac Imaging Inc. (CII), a provider of mobile cardiac positron emission tomography (PET) scans.
The complaint alleges Nassenstein knowingly played a central role in a scheme whereby CII paid exorbitant, above-fair market value fees to doctors who referred patients to CII for cardiac PET scans in violation of the Physician Self-Referral Law, also known as the Stark Law. It prohibits health care providers from billing Medicare for certain designated health services referred by a physician with whom the provider has a financial relationship, including a compensation arrangement, that does not meet any statutory or regulatory exception. Congress enacted the Stark Law to protect Medicare patients from financial arrangements that can adversely impact physicians’ decision making and lead to unnecessary services. Claims knowingly submitted to Medicare in violation of the Stark Law also violate the federal FCA.
“Financial relationships between healthcare providers and referring physicians can undermine the objectivity of medical treatment decisions and increase the cost of care,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will enforce provisions designed to prevent prohibited financial conflicts to ensure that taxpayers and patients can have confidence that decisions about patient care are driven by the medical needs of patients rather than the financial interests of physicians or providers.”
“Improper compensation arrangements unnecessarily drive-up healthcare costs and cloud a physician’s medical judgment,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “This complaint alleges that in an effort to increase profits, Nassenstein caused CII to enter into improper compensation arrangements with cardiologists who referred patients for cardiac PET scans. We are committed to enforcing the Stark Law and protecting Medicare from these types of improper financial relationships.”
Cardiac PET scans are nuclear medicine tests that doctors use to help assess heart function and diagnose cardiac disease. The United States’ complaint alleges CII provided cardiac PET scans on a mobile basis and paid the referring physicians, usually cardiologists, to provide the physician supervision required under Medicare rules. The United States alleges that from at least 2017 through June 2023, Nassenstein caused CII to enter into compensation arrangements with referring cardiologists, under which the cardiologists were paid as if they were fully occupied supervising CII’s scans, even though the cardiologists were actually providing care to other patients in their offices or were not even on site. The complaint alleges CII’s fees also purportedly compensated the cardiologists for additional services beyond supervision that were not actually provided.
The lawsuit was originally filed under the qui tam or whistleblower provisions of the FCA by Lynda Pinto, a former billing manager at CII. Under the FCA, private parties, known as relators, can file an action on behalf of the United States and receive a portion of the recovery. The FCA permits the United States to intervene in and take over the action, as it has done here. If a defendant is found liable for violating the FCA, the United States may recover three times the amount of its losses plus applicable penalties.
The Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas (SDTX) are handling the matter with assistance from the Department of Health and Human Services (HHS) Office of Inspector General. The case is captioned U.S. ex rel. Pinto v. Nassenstein, No. 18-cv-2674 (S.D. Tex.). CII and its current owner, Sam Kancherlapalli, previously settled related claims arising from the conduct described above.
Trial Attorneys Samuel R. Lehman and Jake M. Shields of the Justice Department's Civil Division and Assistant U.S. Attorney Melissa M. Green for the Southern District of Texas are handling the matter.
The investigation and prosecution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the HHS at 800-HHS-TIPS (800-447-8477).
The claims asserted in this case are allegations only, and there has been no determination of liability.
ComplaintEstherville Woman to Federal Prison for Firearm ConvictionRead the Press Release
Jodeci Holmes, 22, from Estherville, Iowa, was sentenced on February 1, 2024, to 30 months in federal prison. Holmes pled guilty September 21, 2023, to being a prohibited person in possession of a firearm.
At the plea and sentencing hearings, evidence showed that on April 1, 2023, in Estherville, Iowa, law enforcement conducted a traffic stop on a vehicle in which Holmes was a passenger. After the officer smelled marijuana from inside the vehicle, a search was conducted where marijuana and a 9mm pistol which belonged to Holmes were found. Holmes was a marijuana user and had been convicted of felony possession with intent to deliver marijuana. Both prohibit an individual from possessing a firearm.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Holmes was sentenced to 30 months’ imprisonment and must serve a term of three years of supervised release following the imprisonment. There is no parole in the federal system. Holmes remains in custody of the United States Marshal until she can be transported to a federal prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Emmet County Sheriff’s Office, Estherville Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-3008.
Follow us on Twitter @USAO_NDIA.
El Departamento de Justicia y el Estado de North Carolina llegan a un acuerdo de $13.5 millones con First National Bank de Pennsylvania para resolver quejas de exclusión financiera en North CarolinaRead the Press Release
El Departamento de Justicia y el Estado de North Carolina anunciaron conjuntamente hoy que First National Bank de Pennsylvania (FNB) ha acordado pagar $13.5 millones para resolver las alegaciones que incurrió en un patrón o una práctica de discriminación crediticia al practicar la exclusión financiera en barrios de mayoría negra e hispana en Charlotte y Winston-Salem, North Carolina. La exclusión financiera es una práctica ilícita en la que los prestamistas evitan la provisión de servicios crediticios a individuos que viven en comunidades de color por motivos de la raza, el color de piel o el origen nacional de las personas que viven en esas comunidades.
“La discriminación crediticia infringe la ley y perjudica a comunidades y familias enteras durante generaciones”, comentó el Fiscal General Merrick B. Garland. “El acuerdo de hoy invertirá $13.5 millones en la expansión del acceso a servicios crediticios para barrios negros e hispanos en Charlotte y Winston-Salem que durante demasiado tiempo se les ha denegado. Con este acuerdo, la Iniciativa contra la Exclusión Financiera del Departamento de Justicia ha conseguido más de 122 millones de dólares en ayuda para comunidades por todo el país. No obstante, reconocemos cuánto trabajo nos queda por hacer, y no desistiremos nuestros esfuerzos por combatir la discriminación crediticia dondequiera que ocurra”.
“Este acuerdo tendrá un impacto transformador para las comunidades negras e hispanas, proporcionándoles nuevas oportunidades para convertirse en propietarios, realizar operaciones bancarias en sus mismos barrios y crear riqueza generacional”, afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “A medida que dedicamos tiempo en todo el país para conmemorar el Mes de la Historia Negra, también debemos crear un espacio para reconocer los daños continuos causados por el racismo estructural y la discriminación a largo plazo. La exclusión financiera de hoy es una mancha en nuestra economía y subraya la necesidad de seguir presionando para lograr la igualdad de oportunidades económicas y la justicia racial en nuestro país. El Departamento de Justicia está preparado para responsabilizar a los bancos e instituciones financieras con el fin de garantizar que las comunidades de color no dejen de tener acceso al crédito hipotecario debido a la exclusión financiera actual”.
“Los efectos devastadores de los préstamos discriminatorios que se arraigan en los barrios pueden reverberar durante generaciones”, declaró Sandra J. Hairston, al Fiscal Federal para el Distrito Centro de North Carolina. “El acuerdo que se ha anunciado hoy demuestra nuestro compromiso a combatir la exclusión financiera y garantizar el acceso igualitario al crédito requerido por la ley. Seguiremos esforzándonos por responsabilizar a las instituciones financieras que evitan las comunidades de color en sus mercados o que construyen barreras que dificulten el acceso al crédito a los residentes minoritarios. Los bancos y las compañías hipotecarias deben evaluar sus prácticas crediticias y tomar medidas correctivas inmediatas para llegar a las comunidades desatendidas en sus áreas de mercado”.
“Cuando los bancos son discriminatorios, significa que las personas trabajadoras no pueden comprar una casa, establecer un negocio o invertir en su futuro”, afirmó Josh Stein, el Fiscal General de North Carolina. “Quiero que todo residente de North Carolina tenga la misma oportunidad, y me complace que este acuerdo cree mejores oportunidades crediticias para todos en North Carolina”.
La queja alega que, desde el 2017 hasta el 2021, el FNB, incluido como sucesor en interés de Yadkin Bank, que adquirió en el año 2017, no proporcionó servicios de préstamos hipotecarios a barrios de mayoría negra e hispana en Charlotte y Winston-Salem, y desalentó a las personas que buscaban crédito en esas comunidades de obtener préstamos hipotecarios. Los préstamos hipotecarios de FNB se centraron de forma desproporcionada en áreas blancas de Charlotte y Winston-Salem. Por ejemplo, otros prestamistas generaron solicitudes en barrios de mayoría negra e hispana a una tasa dos veces y media mayor a la del FNB en Charlotte y cuatro veces mayor a la del FNB en Winston-Salem. Las sucursales del FNB en ambas ciudades también estaban, de forma abrumadora, ubicadas en barrios de mayoría blanca, y el banco cerró su única sucursal en un barrio de mayoría negra e hispana en Winston-Salem en el 2021.
Más aún, la queja alega que el FNB se basó en prestamistas hipotecarios que trabajaban en áreas de mayoría blanca para generar solicitudes de préstamos y que el banco no realizó un seguimiento de cómo sus prestamistas hipotecarios desarrollaron referencias de préstamos o cómo distribuyeron los materiales de mercadeo hipotecario del banco.
El Departamento de Justicia y el Estado de North Carolina han resuelto sus quejas a través de dos órdenes de consentimiento propuestas, que están sujetas a la aprobación del tribunal. Las órdenes de consentimiento requieren que el FNB invierta $13.5 millones para mejorar las oportunidades crediticias para las comunidades de color en Charlotte y Winston-Salem. En concreto, FNB:
- Invertirá al menos $11.75 millones en un fondo de subsidios para préstamos para aumentar el acceso a préstamos hipotecarios, mejoras en la vivienda y préstamos de refinanciamiento residencial para residentes de barrios de mayoría negra e hispana en las áreas de servicio del FNB en Charlotte y Winston-Salem;
- Gastará $1 millón en asociaciones comunitarias para proporcionar servicios relacionados con el crédito, la educación financiera del consumidor, la adquisición de viviendas y la prevención de ejecuciones hipotecarias para residentes de barrios de mayoría negra e hispana en esas áreas de servicio;
- Gastará $750,000 en publicidad, proyección comunitaria, educación financiera al consumidor y asesoramiento de crédito centrado en barrios de mayoría negra e hispana en esas áreas de servicio;
- Abrirá tres nuevas sucursales en barrios de mayoría negra e hispana en Charlotte y Winston-Salem (dos en Charlotte y uno en Winston-Salem), con al menos un bancario hipotecario asignado a cada sucursal; y
- Empleará a un Director de Préstamos Comunitarios que supervisará el desarrollo continuo de préstamos en comunidades de color.
Asimismo, el FNB acordó contratar a consultores independientes para mejorar su programa de préstamos justos y satisfacer mejor las necesidades de crédito hipotecario de las comunidades. El banco llevará a cabo una evaluación de las necesidades crediticias comunitarias, evaluará sus sistemas de gestión de cumplimiento con las leyes de préstamos justos y llevará a cabo capacitaciones del personal.
El FNB colaboró con el Departamento de Justicia y el Estado de North Carolina para resolver y corregir las preocupaciones de exclusión financiera que se identificaron y acordó resolver este asunto sin litigios impugnados. Durante el transcurso de la investigación, el FNB estableció un programa de crédito para fines especiales para proporcionar mayor acceso a préstamos hipotecarios en comunidades de color en los siete estados donde opera y en el Distrito de Columbia.
Con activos de más de $45 mil millones, el FNB tiene su sede central en Pennsylvania y opera aproximadamente 350 sucursales en todo el Distrito de Columbia, Maryland, North Carolina, Ohio, Pensilvania, South Carolina, Virginia y West Virginia. Se encuentra entre los 100 bancos más grandes de los Estados Unidos.
En octubre del 2021, el Fiscal General Merrick B. Garland y la Fiscal General Auxiliar Kristen Clarke lanzaron la Iniciativa contra la Exclusión Financiera del Departamento de Justicia, un esfuerzo coordinado de aplicación de la ley para abordar esta forma persistente de discriminación contra las comunidades de color. Desde el año 2021, el Departamento ha anunciado doce casos de exclusión financiera y ha obtenido más de $122 millones por concepto de compensación para comunidades de color que han sido víctimas de discriminación crediticia por todo el país.
Puede encontrar una copia de la queja e información sobre la aplicación de las leyes de préstamos justos del Departamento en www.justice.gov/fairhousing. Para informarnos de incidentes de discriminación en el ámbito crediticio, llame a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o entregue un informe en línea.
Des Moines Man Sentenced to 120 Months in Federal Prison for Firearm ChargeRead the Press Release
DES MOINES, Iowa – A Des Moines man was sentenced today to 120 months in federal prison for felon in possession of a firearm.
According to public court documents, Walter John Dawson Jr., 26, was identified in early 2023 during a Des Moines Police Department investigation of a two-week shooting spree that involved six separate drive-by shootings in the Des Moines area. Dawson repeatedly fired into occupied residences at multiple locations. In March 2023, Dawson was located asleep in a stolen vehicle by law enforcement and subsequently found to be in possession of a loaded firearm with an extended and loaded magazine. Dawson had previously been convicted in state court of a felony charge, which bars him from possessing a firearm.
After completing his term of imprisonment, Dawson will be required to serve three years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Des Moines Police Department.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. 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 Man Found Guilty of Federal Firearms Charges After a Two-Hour Shootout with Police OfficersRead the Press Release
NASHVILLE – On February 2, 2024, a jury in the Middle District of Tennessee found Jamal Gardner guilty of being a convicted felon in possession of a firearm, announced United States Attorney Henry C. Leventis.
According to evidence presented at trial, on February 2, 2019, Gardner beat and tried to strangle the mother of his children. A little over an hour later, a Columbia Police officer initiated a traffic stop of a vehicle for reckless driving. As the officer approached the vehicle, the driver got out holding an AR-15 rifle and immediately began firing at the officer. As the officer took cover and returned fire, the driver, later identified as Jamal Gardner, fled into a nearby residence and continued firing at responding officers. Over the next two hours, Gardner fired approximately 80 rounds from at least four firearms, before escaping from the house. Gardner fled the scene and was arrested a few days later in Michigan.
“This prosecution underscores the Justice Department’s commitment to hold violent criminals accountable, especially those that are brazen enough to attack law enforcement as the defendant did in this case,” said United States Attorney Henry C. Leventis.
Gardner will be sentenced a later date by United States District Court Judge William L. Campbell, Jr. If the court finds that Gardner qualifies as an Armed Career Criminal, he will be sentenced to a mandatory minimum of fifteen years to life in federal prison.
Additional charges relating to Gardner’s attempted murder of multiple Columbia Police Department officers and his aggravated assault on his former domestic partner are pending in state court. He remains presumed innocent of those state charges.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Columbia Police Department, and the 22nd Judicial District Attorney’s Office. Assistant U.S. Attorneys Josh Kurtzman and Phil Wehby prosecuted the case.
# # # # #
Central Illinois Man Sentenced to Five Years in Prison for Attempted Arson of ClinicRead the Press Release
URBANA, Ill. – A Prophetstown, Illinois, man, Philip J. Buyno, 73, was sentenced today to five years of imprisonment, to be followed by three years of supervised release, for attempting to use fire to damage a building used in interstate commerce. United States District Judge Colin S. Bruce also ordered that Buyno pay $327,547.14 in restitution.
Buyno had previously pleaded guilty, admitting that, on May 20, 2023, he brought several containers filled with gasoline with him and used his car to breach the front entrance to a commercial building at 600 N. Logan Avenue in Danville, Illinois, for the purpose of burning it down before it could be used as a reproductive health clinic. Danville police officers responded to an alarm at the building around 4:30 a.m. early on a Saturday morning. They found Buyno stuck inside a maroon Volkswagen Passat that he had backed into the entrance of the building, which was being renovated for use as a reproductive health clinic. A search of the car by FBI agents found bottles containing gasoline, a hatchet, road flares, multiple old tires, and a pack of matches. Agents also found that Buyno had fortified the trunk of the Passat with 4x4 wooden beams.
Buyno was arrested on May 20, 2023, and has remained in official custody since that time.
Buyno faced statutory penalties of a minimum five years up to twenty years in prison, a fine of up to $250,000, three years of supervised release, and restitution for the damage caused to the building.
“Our office strongly condemns the defendant’s attempt to prevent women in our community from accessing important reproductive health services,” said U.S. Attorney for the Central District of Illinois Gregory K. Harris. “We are committed to prosecuting such crimes and thank our federal and local law enforcement officers for their critical work in pursuing this case.”
“The FBI will always protect First Amendment rights, but when someone crosses the line from expressing beliefs to violating federal law, we will work to hold them accountable,” said FBI Springfield Field Office Special Agent in Charge David Nanz. “It is important to remember to immediately report suspicious behavior or threats of violence by calling FBI Springfield at 217-522-9675.”
The charges are the result of an investigation by the Federal Bureau of Investigation, Springfield Field Office, and the Danville Police Department. Supervisory Assistant U.S. Attorney Eugene L. Miller represented the government in the prosecution.
Canonsburg Man Pleads Guilty to and is Sentenced for Killing of Bald EagleRead the Press Release
PITTSBURGH, Pa. - A resident of Canonsburg, Pennsylvania, pleaded guilty and has been sentenced in federal court to two years of probation and 50 hours of community service on his conviction of violating the Bald and Golden Eagle Protection Act, United States Attorney Eric G. Olshan announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Rodney Thomas, 51. Thomas also was ordered to pay a fine of $2,500 and restitution of $9,800 to the Pennsylvania Wildlife Rehabilitation and Education Council.
According to information presented to the Court, Thomas shot and killed a mature bald eagle with an air rifle in Mount Pleasant Township in Washington County on May 12, 2023.
Prior to sentencing, testimony was offered from residents of Mount Pleasant Township.
Assistant United States Attorneys Gregory C. Melucci and Nicole A. Stockey prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Mount Pleasant Township Police Department, Pennsylvania Game Commission, U.S. Fish and Wildlife Service and Washington County District Attorney’s Office for the investigation leading to the successful prosecution of Thomas.
Canoncito Man Pleads Guilty to Voluntary ManslaughterRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Landen Toledo pleaded guilty in federal court to voluntary manslaughter. Toledo, 20, of Canoncito, New Mexico, and an enrolled member of the Navajo Nation, will remain in custody pending sentencing, which has not been scheduled.
According to publicly available court records, on May 27, 2022, Toledo, Cole Ray Shorty and Keon Apachito went to the home of John Doe to retrieve Shorty’s backpack. The group approached John Doe while he was seated in the driver’s seat of his car. When Shorty opened the back door of the car to look for his backpack, John Doe got out of the car with a baseball bat. Toledo grabbed John Doe by the wrists and threw him to the ground and kicked him in the stomach several times, causing John Doe to drop the baseball bat. Shorty picked up the baseball bat and hit John Doe on the head with the baseball bat. Others in the group hit John Doe’s with a golf club and stomped on his leg. John Doe fell to the ground and tried to crawl away. Shorty hit John Doe in the head again, then the group left John Doe unconscious on the ground. The Office of the Medical Inspector’s found that the cause of John Doe’s death was blunt head trauma.
Cole Ray Shorty pleaded guilty to voluntary manslaughter on January 19, 2024, and faces up to 15 years in prison. Apachito remains out of custody pending trial, which is currently scheduled for June 10, 2024.
At sentencing, Toledo faces up to 15 years in prison.
The FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations. Assistant United States Attorney Brittany DuChaussee is prosecuting the case.
View the Plea Agreement# # #
24-54
CEO of Beverage Company Marketed for Women Indicted for Alleged Securities Fraud that Took in More Than $13.5 Million from InvestorsRead the Press Release
LOS ANGELES – An Antelope Valley woman was arrested today on a 39-count federal grand jury indictment alleging she obtained more than $13.5 million from more than 1,000 investors for her for-women beverage company, the lion’s share of which she spent at casinos, on luxury items and cars, and renting a house.
Lupe Louise Rose, 54, of Palmdale, surrendered to federal authorities this morning. She is charged with 38 counts of securities fraud and one count of making false statements to federal investigators.
Rose pleaded not guilty at her arraignment this afternoon at United States District Court in downtown Los Angeles and a March 19 trial was scheduled. A federal magistrate judge today ordered Rose freed on $20,000 bond.
According to the indictment returned on January 18 and unsealed today, Rose in 2009 founded She Beverage Co. Inc., a Lancaster-based beverage manufacturer. Rose was the company’s president, CEO, and chairman of its board of directors. Rose promoted She Beverage as a woman-owned beverage manufacturer that marketed – primarily to female consumers – and sold beer, wine, bottled water, and other products purported designed specifically to cater to women’s needs.
From 2017 to December 2020, Rose raised investments in She Beverage amounting to more than $13.5 million from more than 1,000 investors nationwide. Specifically, she caused the company to offer and sell its shares through an offering memorandum, offering shares in the company at a price of $2.50 per share. Rose also hosted in-person meetings for current and prospective investors, some of which were livestreamed to out-of-town investors.
Even though Rose marketed She Beverage as a successful company, in fact, she allegedly used the vast majority of the $13.5 million she raised from investors personally to enrich herself, her family and friends. She also used victim investor money to “purchase” shell companies to give the false appearance that She Beverage was expanding, according to the indictment.
Contrary to Rose’s written promises to spend 30% of money raised from investors on inventory, she allegedly spent only 2.5% of investors’ money on inventory from 2015 to 2021.
From 2016 to 2021, Rose caused $6 million of victim investor funds raised in the company offerings to be used for the benefit of herself and her friends, the indictment alleges. Rose allegedly failed to inform investors that she spent more than $1 million of company funds at casinos, and she also used company money to purchase cars and trucks for family and friends. She allegedly also used company money to pay for a lease on a house she rented and used company money to purchase luxury clothing from retailers such as Gucci and Louis Vuitton.
Rose allegedly lied to investors by stating in 2018 that her company had “generated approximately $4-5 million dollars in revenue” when, in fact, that year She Beverage had sold less than $263,000 in merchandise.
She allegedly also made false statements to investors that She Beverage sold United States Food and Drug Administration-approved bottled water made with a proprietary formula that cured cancer. Rose made other alleged false claims about her prior business experience, including that she had developed McDonald’s Bagel Sandwich and the creation of Versace’s “Tribute” clothing line.
Other false statements included that there were nine-figure offers from other companies to purchase She Beverage and about Rose’s educational background, including that she received “professional certificates in the field of Medicine, Journalism,
Broadcasting, Education and Company Branding,” according to the indictment. Rose allegedly made false statements to investors and to investigators with the United States Securities and Exchange Commission (SEC).
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted of all charges, Rose would face a statutory maximum sentence of 20 years in federal prison for each securities fraud count and up to five years in federal prison for the false statements count.
In September 2021, the SEC sued Rose for allegedly fraudulently raising millions of dollars from She Beverage investors throughout the United States. On January 16, United States District Judge Christina A. Snyder imposed a judgment finding Rose, She Beverage Co. Inc., and two others jointly and severally liable for disgorgement of $12,021,500, representing net profits from the fraud, as well as $738,774 in pre-judgment interest.
The FBI and IRS Criminal Investigation are investigating this matter.
Assistant United States Attorney Jeff P. Mitchell of the Major Frauds Section is prosecuting this case.
Burlington Man Sentenced for Child Exploitation OffenseRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont stated that on February 5, 2024, Deyquan Martin, 22, of Burlington, Vermont, was sentenced to a five-year term of imprisonment as well as 10 years of supervised release by U.S. District Judge William K. Sessions III following Martin’s guilty plea to possession of child pornography (also known as child sexual abuse material or CSAM).
According to court documents, in 2022, Martin met a twelve-year-old minor through an online video game and, using an online messaging platform, posed as a thirteen-year-old and induced the twelve-year-old to send him CSAM in the form of photographs and videos of herself. Using the messaging platform, Martin later threatened the minor and caused the minor to send him additional CSAM in the form of photographs and videos of the minor. In another instance also in 2022, Martin met a thirteen-year-old minor through a different online video game and, using the same online messaging platform, induced the minor to send him CSAM in the form of photographs of the minor.
On September 22, 2022, Homeland Security Investigations, with the assistance of the Burlington Police Department, Vermont’s Internet Crimes Against Children Task Force, and the New Jersey State Police, executed a search warrant at Martin’s Burlington residence. In searching Martin’s residence, law enforcement found CSAM depicting the twelve-year-old minor as well as other CSAM on Martin’s computer. Following the search, law enforcement placed Martin under arrest. Subsequent forensic analysis of electronic devices seized from Martin’s residence revealed additional CSAM in the form of photographs and videos.
United States Attorney Nikolas P. Kerest stated, “Thanks to our partners at Homeland Security Investigations, the Burlington Police Department, the Vermont Internet Crimes Against Children Task Force and the New Jersey State Police we put a stop to Martin’s predatory behavior exploiting minors playing video games. Protecting vulnerable victims is central to our mission and this case exemplifies our dedication in this area.”
“This is every parent’s worst nightmare. These children were simply playing an online game when they were approached and extorted by a predator. With kids online now more than ever, HSI continues to work alongside our partners to keep kids safe and ensure predators face justice for their crimes,” said Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England.
Martin was represented by Assistant Federal Public Defender Steven L. Barth. Assistant U.S. Attorney Andrew C. Gilman represented the United States.
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.
Burbank Man Sentenced to 10 Years in Federal Prison for Illegally Selling ‘Ghost Guns’ and for Possessing MethamphetamineRead the Press Release
LOS ANGELES – A hookah lounge owner was sentenced today to 120 months in federal prison for illegally selling firearms – including several “ghost guns” – out of his business in downtown Los Angeles and for possessing with intending to distribute methamphetamine.
Hovik Dagesian, 42, of Burbank, was sentenced by United States District Judge Mark C. Scarsi.
Dagesian pleaded guilty in September 2023 to one count of engaging in the business of dealing in firearms without a license and one count of possession with intent to distribute methamphetamine.
From October 2020 to January 2021, Dagesian illegally sold 11 firearms – including firearms not bearing serial numbers, weapons that are commonly referred to as “ghost guns.” The firearms Dagesian illegally sold included a 12-gauge shotgun, an AR-15-type rifle with no serial number, and a 9mm handgun. Dagesian also admitted to selling methamphetamine to a buyer on October 30, 2020. The illegal firearm and drug sales took place at Dagesian’s hookah business in downtown Los Angeles.
In total, Dagesian sold $34,250 worth of firearms and methamphetamine to a buyer.
In January 2021, law enforcement executed a search warrant at Dagesian’s business. During the search, law enforcement seized 163.3 grams (5.8 ounces) of methamphetamine, a digital scale, approximately 215 rounds of ammunition, and many firearms he was willing to sell, including a sawed-off shotgun.
Dagesian has never been licensed as a dealer, manufacturer or importer of firearms.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Los Angeles Police Department investigated this matter.
The International Narcotics, Money Laundering, and Racketeering Section prosecuted this case.
Bucks County Man Sentenced to 151 Months’ Imprisonment for Methamphetamine TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Matthew Moss, age 37, of Warminster, Pennsylvania, was sentenced on January 31, 2024, by U.S. District Court Jennifer P. Wilson, to 151 months’ imprisonment on the charge of possession with intent to distribute methamphetamine.
According to United States Attorney Gerard M. Karam, Moss previously pleaded guilty and admitted to possessing approximately 273 grams of methamphetamine for distribution in the York County area in 2021. The charge stems from an investigation in which investigators purchased 140 grams of methamphetamine from Moss in November 2021 in York County. During investigators’ attempt to arrest Moss, Moss fled, leading law enforcement on a vehicular and foot chase. During Moss’s arrest, investigators recovered an additional 133 grams of 96-percent-pure methamphetamine from Moss’s vehicle.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Springettsbury Township Police Department, and was prosecuted by Assistant United States Attorneys David C. Williams and Johnny Baer.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
###