Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
14 March 2024
St. Louis Man Admits Home Health Care FraudRead the Press Release
ST. LOUIS – A man from St. Louis, Missouri on Thursday admitted using his brother’s identity to fraudulently obtain about $31,700 from the Missouri Medicaid Program.
Christopher J. Spencer, 46, waived indictment by a grand jury and pleaded guilty to five counts of making false statements relating to health care benefits. Spencer admitted making false statements from June 2018 to February 2022 in connection with claims for Medicaid-reimbursed personal care assistance services.
Spencer previously received those services, which can include housekeeping, meals, bathing, grooming and transportation, from his brother, who lived with Spencer. At that time, his brother was reimbursed for the services by the Missouri Medicaid Program and its vendors via a debit card. After his brother moved out in 2018, Spencer continued to submit, on a near daily basis, time sheets and Electronic Visit Verification (EVV) records falsely claiming that his brother was providing care for him. Spencer also submitted enrollment paperwork to the Medicaid vendor listing his brother as his personal care attendant and containing his brother’s forged signature. In reality, Spencer’s brother never provided services to Spencer after June 2018. Spencer retained the debit card used by the Missouri Medicaid Program and its vendors to reimburse his brother and spent the fraudulently-obtained payments deposited onto the card.
Between June 2018 and February 2022, Spencer fraudulently received about $31,700 on the debit card that he used for personal expenses such as bills, rent, groceries, shopping and hotels. He also used his brother’s name and personal information to obtain loans or advances on reimbursement payments from the Medicaid vendor.
“Through his scheme to defraud the Medicaid program, the defendant stole taxpayer funds meant to pay for legitimate services for eligible beneficiaries,” said Linda Hanley, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will hold accountable those who exploit federal health care system for personal gain.”
Spencer is scheduled to be sentenced August 4. Each false statement charge is punishable by up to five years in prison, a $250,000 fine or both prison and a fine. Spencer will also be ordered to repay the money.
The U.S. Department of Health and Human Services Office of Inspector General and the Missouri Attorney General’s Medicaid Fraud Control Unit investigated the case. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.
St. Louis Area Pediatrician Indicted, Accused of Exchanging Prescriptions for Sex ActsRead the Press Release
ST. LOUIS – A St. Louis County, Missouri pediatrician was indicted Wednesday and accused of prescribing pain pills and other controlled substances in exchange for sex acts or cash.
The indictment charges Craig A. Spiegel, 67, with 17 counts of illegal distribution of controlled substances and six counts of making false statements related to health care matters. Dr. Spiegel and an acquaintance, April Bingham, 46, were also indicted on one count of conspiracy to distribute controlled substances.
The indictment says that since at least 2014, Dr. Spiegel repeatedly issued controlled substance prescriptions to numerous adult women – many of whom he met because he was their pediatrician when they were children – in exchange for sexual acts and sexual photographs, without regard for the patient’s medical condition or the medical necessity of the prescription. In many cases, Spiegel issued those controlled substance prescriptions even though he knew the recipients had a substance use disorder and he knew that issuing the prescription was illegal and could endanger the recipient’s mental health and physical safety, the indictment says. He also pressured reluctant women to engage in sex acts at his pediatrics office in Bridgeton, Missouri, the indictment says.
In a motion seeking to have Dr. Spiegel held in jail until trial, the government alleges that investigators are aware of at least 25 individuals with whom Spiegel exchanged controlled substance prescriptions for sexual acts or cash.
The indictment alleges that Dr. Spiegel ignored widely known “red flags” that can indicate prescription drugs are being abused or sold, endangering the well-being of the patients and the community. The indictment also lists a series of examples. One patient met Dr. Spiegel through a friend who told her that he would write any prescription she desired if she performed a sex act while topless. On numerous occasions she did so or provided nude photos in exchange for Adderall, Xanax and Percocet, the indictment alleges. Dr. Spiegel provided the same three drugs to another patient in exchange for sex acts, despite knowing that she had a severe substance use disorder and was at high risk of overdose, the indictment alleges. She died of a drug overdose in April of 2022 at the age of 40, it says.
The indictment also alleges that beginning in 2021, Bingham, who did not have any medical training or a Drug Enforcement Administration registration allowing her to prescribe controlled substances, agreed to distribute controlled substances under Dr. Spiegel’s DEA registration. Dr. Spiegel issued controlled substance prescriptions to Bingham for sexual favors Bingham provided, the indictment says. Dr. Spiegel knew that Bingham was selling some of the drugs he prescribed to her for cash, the indictment says. Dr. Spiegel used the identities of third-party individuals, including Bingham’s ex-husband, mother, and friends, to either take advantage of their prescription insurance benefits or conceal from pharmacies the frequency with which Bingham was receiving controlled substances prescribed by Dr. Spiegel, the indictment says. Bingham also introduced Dr. Spiegel to others who provided him with cash or sex acts in exchange for prescriptions, the indictment says.
“The conduct alleged in the indictment represents an exploitation of patients who were vulnerable because they had been treated by Dr. Spiegel since they were girls, because they were struggling with an addiction, or both, to satisfy a sexual desire,” said U.S. Attorney Sayler A. Fleming. “It is illegal and unethical for a doctor to prescribe controlled substances as payment for sexual favors or for cash, or to provide drugs to someone who is suspected of diverting or abusing those drugs.”
“Physicians who recklessly and illegitimately distribute controlled substances undermine critical efforts to battle the opioid crisis and betray their professional responsibility to serve the health and well-being of the public. As alleged, Dr. Spiegel took advantage of individuals struggling with addiction--some of them his former pediatric patients--all for his own personal gratification,” said Special Agent in Charge Linda Hanley of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to address such abuse to protect patients, communities, and taxpayers from such dangerous conduct.”
“Every day, prescription drugs are misused in the United States at an alarming rate because many people have a false sense of security regarding these potent, and sometimes dangerous, drugs,” said Special Agent in Charge Michael Davis, leader of Drug Enforcement Administration operations in Missouri, Kansas and southern Illinois. “Reducing prescription drug misuse is vital to the health and welfare of the American people and is a priority we take seriously. When the medical practitioners Americans trust contribute to that misuse, DEA is obliged to investigate.”
"The allegations laid forth in the federal indictment describe a heinous abuse of trust,” said FBI Assistant Special Agent in Charge Christopher Crocker. “The investigation was made possible through strong federal, state, and local partnerships."
Individuals with concerns about Dr. Spiegel should call HHS-OIG at 800-447-8477.
The charges of conspiracy and illegal distribution of controlled substances are each punishable by up to 20 years in prison, a $1 million fine or both prison and a fine. Each charge of making false statements is punishable by five years in prison, a $250,000 fine, or both.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The Bridgeton Police Department, the Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, the Drug Enforcement Administration and the Missouri Attorney General’s Office Medicaid Fraud Control Unit investigated the case. Assistant U.S. Attorney Amy Sestric is prosecuting the case.
Southwest Ohio man sentenced to prison for $8.6 million investment fraud scheme that defrauded Pike County investorsRead the Press Release
COLUMBUS, Ohio – A Southwest Ohio man was sentenced in U.S. District Court here today to 24 months in prison for orchestrating an investment fraud scheme in Pike County and for failing to remit money withheld from employee paychecks to employee retirement funds.
Robert W. Walton, Jr., 55, of Loveland, Ohio, was also ordered to pay more than $8.6 million in restitution.
According to court documents, Walton committed two distinct financial crimes that resulted in a total loss of $8,657,603. He defrauded investors in a company he co-founded and stole retirement funds of its employees.
Walton engaged in a scheme to defraud investors of Hadsell Chemical Processing, LLC (HCP) and related entities. Walton was the president of HCP and fraudulently sought investments in the form of promissory notes from dozens of victim investors.
Walton claimed the notes were personally guaranteed by a prominent local business owner when in fact they were not. Walton repeatedly forged the business owner’s signature from 2012 through 2015 without the business owner’s authority on several loan documents and promissory notes.
Walton falsely represented his company’s future revenues from another business to be in the millions by creating fake invoices. The actual total legitimate business revenue HCP had with that other business was approximately $50,000. He provided the fake invoices to investors. Walton also provided investors with falsified profit and loss statements, including one that changed HCP’s net income from a loss of approximately $800,000 to a profit of nearly $395,000.
Walton also engaged in Ponzi-type activity by paying earlier investors with money received from new investors.
During part of his employment at HCP, Walton was responsible for approving the remittance of employee retirement funds to an employee benefit plan sponsored by HCP. Walton failed to remit approximately $53,000 withheld from employees’ paychecks, failing to transfer the funds into employee retirement funds.
Walton pleaded guilty in March 2023 to wire fraud and embezzling from employee benefit plans.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Cheryl Mimura, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI) Cincinnati Division; and L. Joe Rivers, Regional Director, United States Department of Labor Employee Benefits Security Administration, Cincinnati Regional Office, announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.
# # #
Southgate Man Sentenced to 15 Years for Exploiting Teen GirlRead the Press Release
DETROIT - A Southgate resident was sentenced to 15 years for sexually exploiting a child, coercion and enticement of a minor, and receipt of child pornography, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by acting Special Agent in Charge Shawn Gibson, Homeland Security Investigations (HSI) Detroit field office.
Nopphadon Ninsawat, 32, was convicted on November 28, 2023, following a 4-day jury trial before United States District Judge David M. Lawson.
Ninsawat met the 15-year-old victim on Snapchat. After they communicated for some time, the victim’s mother discovered the communications, contacted the defendant, and told him that her daughter was 15-years old. The defendant agreed not to have further contact with her. Instead, the defendant resumed requesting that the child produce sexually explicit images, even though she indicated that she no longer wanted to do so. The defendant persisted, and the victim eventually produced numerous images of herself engaged in sexually explicit conduct.
“This sentence will hopefully bring some closure to the victim of this defendant’s offenses and serve as warning to those who would seek to exploit the children of this District.” stated United States Attorney.
“The communities we serve can sleep easier knowing that predators like Ninsawat are off our streets,” said HSI Detroit acting Special Agent in Charge Shawn Gibson. "HSI along with our partners will continue to aggressively investigate and root out child exploitation wherever it may be.”
The crime was originally investigated by the Gibraltar Police Department, who then enlisted the assistance of the Department of Homeland Security. The case was prosecuted by Assistant United States Attorneys Tara Hindelang and Christopher Rawsthorne.
Silk Road Drug Trafficker Charged with Laundering Drug Proceeds through CryptocurrencyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a nine-count indictment today against Matthew Gillum, 40, formerly of Loomis, charging him with engaging in monetary transactions in property derived from specified unlawful activity, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Gillum was convicted in the Eastern District of California in 2014 with a federal drug trafficking offense. Gillum used the Silk Road website to solicit drug orders and receive payment in Bitcoin. After Gillum completed service of his 108-month prison sentence, he subsequently attempted to launder the drug trafficking proceeds through the legitimate financial system.
This case is the product of an investigation by the Federal Bureau of Investigation and the IRS Criminal Investigation with assistance from the U.S. Postal Inspection Service, the U.S. Customs and Border Protection, and the Sacramento County Sheriff’s Office. Assistant U.S. Attorney Justin Lee is prosecuting the case.
If convicted, Gillum faces a maximum statutory penalty of 10 years in prison and a $250,000 fine, or twice the amount of money laundered. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Seventeen Defendants Charged in Connection with Cocaine Trafficking Operation Originating in Puerto RicoRead the Press Release
PITTSBURGH, Pa. – Seventeen individuals from Lawrence County, Pennsylvania; Puerto Rico; and Youngstown, Ohio, have been indicted by a federal grand jury in Pittsburgh for violating federal narcotics, firearms, and racketeering laws, United States Attorney Eric G. Olshan announced today. The defendants were charged in two Indictments that were unsealed today and allege that, between September 2022 and March 2024, the defendants conspired to distribute cocaine throughout Western Pennsylvania, specifically in the New Castle area, as well as in Youngstown, Ohio.
As alleged in the Indictments, members of the two charged groups would transport, either by person or mail, drugs from Puerto Rico to Western Pennsylvania, Ohio, and elsewhere to distribute those drugs as part of an ongoing illicit business enterprise. Two of the defendants, Daniel Feliciano and Markus Hobel, allegedly possessed firearms in furtherance of the drug trafficking. Another defendant, Jamie Klinesmith, allegedly possessed with intent to distribute a significant quantity of methamphetamine.
A complete list of the defendants, charges, and maximum penalties is included at the bottom of this release. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of each defendant.
“Today’s indictments represent an important step toward dismantling a multi-state drug trafficking operation that brought significant quantities of cocaine from Puerto Rico to Western Pennsylvania and our neighbors in Ohio,” said U.S. Attorney Olshan. “Together with our federal, state, and local law enforcement partners, we will continue to work collaboratively to keep our communities safe from drug traffickers and, in particular, those who choose to carry firearms in connection with their drug dealing.”
“Joint investigations that involve federal, state, and local law enforcement agencies working together as part of the HIDTA and OCDETF programs are what lead to successful cases and significant indictments, as is the case here,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “These individuals are accused of trafficking cocaine, methamphetamine, and firearms from outside the continental United States, specifically Puerto Rico, to right here in Western Pennsylvania. I commend the efforts of all the agencies involved.”
Assistant United States Attorney Carl J. Spindler is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration, Lawrence County High Intensity Drug Trafficking Area (HIDTA) Drug Task Force, and United States Postal Inspection Service led the investigation resulting in the Indictments in this case, with significant assistance from the New Castle Police Department, Ellwood City Police Department, Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, Pennsylvania Office of Attorney General, Pennsylvania State Police, Pittsburgh Bureau of Police, and United States Department of Agriculture.
Lawrence County is one of six Western Pennsylvania counties officially designated as a High Intensity Drug Trafficking Area by the White House’s Office of National Drug Control Policy. The county received its HIDTA designation in July 2022, allowing it to receive dedicated federal resources to coordinate federal, state, and local governments in fighting drug trafficking and abuse.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
List of Defendants
Feliciano Indictment:
Name
Age
Place of Residence
Charges
Maximum Penalty
Daniel Feliciano
47
New Castle, PA
Conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine
Life imprisonment
Possession with intent to distribute and distribution of a quantity of cocaine on various dates
20 years’ imprisonment
Possession of a firearm in furtherance of a drug trafficking crime
Life imprisonment
Luciano Bratini Rivera
36
New Castle, PA
Conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine
Life imprisonment
Possession with intent to distribute and distribution of a quantity of cocaine on various dates
20 years’ imprisonment
Antonio Bernacett Rodriguez
39
Barceloneta, Puerto Rico
Conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine
Life imprisonment
Interstate travel or transmission in aid of racketeering
Five years’ imprisonment
Jean Sanchez Tulla
37
Florida, Puerto Rico
Conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine
Life imprisonment
Interstate travel or transmission in aid of racketeering
Five years’ imprisonment
Ruben Noel Sanchez
28
Youngstown, Ohio
Conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine
Life imprisonment
Jamie Klinesmith
39
Ellwood City, PA
Conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine
40 years’ imprisonment
Possession with intent to distribute 500 grams or more of methamphetamine
Life imprisonment
Amanda Kelosky
37
Ellwood City, PA
Conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine
40 years’ imprisonment
Thomas James Myers
45
Ellwood City, PA
Conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine
40 years’ imprisonment
Roberto Muniz Sanchez
45
Rochester, PA
Conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine
40 years’ imprisonment
Rubel Sanchez
21
Youngstown, Ohio
Conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine
40 years’ imprisonment
Markus Hobel
34
New Castle, PA
Conspiracy to distribute and possess with intent to distribute a quantity of cocaine
20 years’ imprisonment
Possession of a firearm in furtherance of a drug trafficking crime
Life imprisonment
Dorothy Myers
41
New Castle, PA
Conspiracy to distribute and possess with intent to distribute a quantity of cocaine
20 years’ imprisonment
Lindsay Ostrom
37
Ellwood City, PA
Conspiracy to distribute and possess with intent to distribute a quantity of cocaine
20 years’ imprisonment
Glenn Samuels
32
New Castle, PA
Conspiracy to distribute and possess with intent to distribute a quantity of cocaine
20 years’ imprisonment
Tulla Torres Indictment:
Name
Age
Place of Residence
Charges
Maximum Penalty
Kevin Tulla Torres
28
New Castle, PA
Conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine
Life imprisonment
Possession with intent to distribute and distribution of a quantity of cocaine
20 years’ imprisonment
Luis Rivera Otero
37
New Castle, PA
Conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine
40 years’ imprisonment
Franchely Shymko Vazquez
31
New Castle, PA
Conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine
40 years’ imprisonment
Schenectady Man Pleads Guilty to Drug ChargesRead the Press Release
ALBANY, NEW YORK – Andrew Deleon, age 27, of Schenectady, New York, pled guilty today to conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl, and to the distribution of methamphetamine.
United States Attorney Carla B. Freedman; Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division; and Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS), made the announcement.
Deleon admitted that he received multiple packages in the U.S. Mail that he knew contained controlled substances and intended to give the controlled substances to the leader of his drug trafficking organization. Deleon further admitted that he also distributed methamphetamine on behalf of the organization. As part of the conspiracy, Deleon distributed and possessed with the intent to distribute approximately 1,827.18 grams of pure methamphetamine and 10.68 grams of fentanyl.
Sentencing is scheduled for July 12, 2024 before United States District Judge Anne M. Nardacci. Deleon faces a maximum term of 20 years in prison, a fine of up to $1 million, and a supervised release term of at least 3 years and up to life, to begin he finishes his prison term. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Three other defendants charged as part of this conspiracy have pled guilty to conspiracy to distribute and possess with intent to distribute methamphetamine, and to the distribution of methamphetamine, and are scheduled to be sentenced as follows:
- Melissa Karwan, age 37, of Schenectady, New York, is scheduled to be sentenced on April 16, 2024.
- Flor Arencibia, age 39, of Albany, is scheduled to be sentenced on June 7, 2024.
- Stefanie Plass, age 37, of Schenectady, is scheduled to be sentenced on April 17, 2024.
The DEA and USPIS investigated this case. Assistant U.S. Attorneys Ashlyn Miranda and Joshua Rosenthal are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Savoy, Illinois Man Sentenced to 15 years in Prison for Sexual Exploitation of a MinorRead the Press Release
Peoria, Ill. – A Savoy, Illinois man, David Berry, of the 800 block of Hartwell, has been sentenced to 180 months in the Bureau of Prisons, to be followed by five years of supervised release, and registration as a sex offender, for the sexual exploitation of a minor.
At the sentencing hearing, the government presented evidence that in October of 2021, Berry brought a minor to his home, sexually assaulted her, and recorded the acts on video.
During the hearing, U.S. District Court Judge Michael Mihm noted that Berry was responsible for trauma caused to the minor and ordered a $6,140 restitution amount.
Berry was indicted by the U.S. Attorney’s Office in February of 2022. He pleaded guilty in September of 2023.
The statutory penalties for Sexual Exploitation of a Minor are 15 to 30 years in prison, and 5 years to life term of supervised release.
The U.S Immigration and Customs Enforcement Homeland Security Investigations, the Champaign County Sherriff’s Office, the Urbana Police Department, and the Champaign County State’s Attorney’s Office participated in the investigation. Special Assistant U.S. Attorney Shannon O’Brien, who is also the Deputy Bureau Chief in the High Tech Crimes Bureau for the Illinois Attorney General’s Office, represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a Department of Justice initiative led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), to marshal federal, state and local resources to locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Sarasota Man Sentenced to Federal Prison for Leaving Threatening Voicemail Targeted at Jewish Organization in New YorkRead the Press Release
Tampa, Florida – U.S. District Chief Judge Timothy Corrigan today sentenced Deep Alpesh Kumar Patel (21, Sarasota) to six months in federal prison for transmitting an interstate threat to injure. Patel pleaded guilty on December 15, 2023.
According to the plea agreement, on October 21, 2023, Patel left a threatening voicemail at a Jewish organization in New York City identifying himself by name and screaming, among other expletives, “If I had a chance, I would kill every single one of you Israelis. Every single one of you! Cause mass genocide of every single Israeli.” Patel also admitted that he had called a synagogue in Temple Terrace, Florida the same day, and left a voicemail threatening voicemail laced with expletives. As part of a hate crimes penalty enhancement, Patel agreed that he intentionally selected Jewish and/or Israeli individuals as the objects of his threat based on their actual or perceived race, religion, national origin, or ethnicity.
“No one should live under the threat of violence or intimidation because of their religion, race, ethnicity or beliefs,” stated U.S. Attorney for the Middle District of Florida Roger Handberg. “We will continue working with our law enforcement partners at every level to investigate and prosecute those who threaten harm to any citizen as we stand united against hate.”
This case was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, the Florida Department of Law Enforcement, and the Sarasota Police Department. It was prosecuted by Assistant United States Attorney Risha Asokan.
Sandusky Doctor Sentenced to Prison for Illegally Dispensing Drugs to PatientsRead the Press Release
TOLEDO – Gregory J. Gerber, age 58, of Port Clinton, Ohio, was sentenced to prison by U.S. District Judge James R. Knepp, II after earlier pleading guilty to illegally dispensing narcotics to patients. Gerber was sentenced to 42 months imprisonment to be followed by one year of home confinement for the first of 3 years of supervised release. Gerber was also ordered to pay a $100 special assessment and restitution in the amount of $861,892.13.
According to testimony and court records, from January 2010 to August 2018, Gerber repeatedly prescribed controlled substances outside the usual course of professional practice and not for a legitimate medical purpose, including powerful painkillers such as fentanyl, oxycodone, oxymorphone and other drugs. Gerber distributed narcotics that were not medically necessary by writing controlled substance prescriptions without first performing adequate patient physical examinations. He also used faulty diagnoses to prescribe excessive doses of controlled substances for long periods of time without evidence that the controlled substances were helping the patients, all while ignoring signs of addiction and drug abuse among those patients.
Gerber, who operated Gregory J. Gerber, M.D. LLC on Hayes Avenue in Sandusky, also profited significantly from prescribing Subsys, a particular branded formulation of fentanyl manufactured by Insys Therapeutics, Inc. Between 2013 and 2016, Gerber received $175,000 from Insys for promoting the drug through Insys’s speaker’s bureau program. During that same time, Gerber wrote 835 prescriptions for Subsys.
“When he became a physician, Dr. Gerber vowed to care for his patients—to heal, not harm,” said U.S. Attorney Becky Lutzko. “But Dr. Gerber violated both federal law and his oath when he illegally distributed addictive painkillers to his patients. The Northern District of Ohio, like many districts throughout the country, continues to combat a staggering opioid crisis. My Office and our law enforcement partners are dedicated to investigating and prosecuting physicians who abuse their positions of trust by unlawfully prescribing medically unnecessary opioid prescriptions and endanger their patients’ lives.”
“Abusing one’s position as a trusted healthcare provider by deliberately harming others for personal gain is disgraceful,” said FBI Cleveland Special Agent in Charge Greg Nelsen. “Gregory Gerber exhibited a blatant disregard for his patients’ wellbeing and instead, purposefully sought ways to capitalize on—and at times, contribute to—a worsening condition.
The FBI will continue to work with our federal, state and local partners to find and investigate practitioners in the medical community who target and victimize vulnerable populations.”
“Physicians are expected to be trusted individuals within the communities they serve. The defendant’s actions placed patients at risk of harm and further burdened the federal health care system through his illegal conduct,” said Mario M. Pinto of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Chicago Region. “HHS-OIG will continue to work with our law enforcement partners to ensure that those who endanger beneficiaries of our federal health care programs are brought to justice.”
“This disgraced doctor violated the most important oath—to do no harm,” said Ohio Attorney General Dave Yost. “No punishment can reverse the damage of the opioid crisis, but we are fortunate to have investigators and partner agencies that root out these criminal schemes.”
This case was investigated by the FBI, Drug Enforcement Administration, Health and Human Services – Office of Inspector General, Ohio Attorney General’s Healthcare Fraud Section and Ohio Board of Pharmacy. This case is being prosecuted by Assistant United States Attorney Megan R. Miller.
Rochester man who lured child to hotel for sex arrested, charged with enticementRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Jonathan Woody, 30, of Rochester, NY, was arrested and charged by criminal complaint with enticement of a minor, which carries a minimum penalty of 10 years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that according to the complaint, in January 2024, Woody engaged in sexually explicit online and text communications with a 13-year-old minor victim that he met online. On January 2, 2024, Woody paid to transport the child to a hotel in Greece, NY, where he rented a room. While at the hotel, Woody provided alcohol and marijuana, and engaged in sexual acts with the minor victim. When the minor victim’s family realized that the child was missing from home, 911 was called to initiate a missing person investigation. The minor victim returned home on their own, at which time law enforcement learned of Woody’s interactions with the minor victim. Subsequent investigation led to the identification and arrest of Woody.
The defendant made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen and was detained.
The criminal complaint is the result of an investigation by the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter, the Greece Police Department, under the direction of Chief Michael Wood, and the Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Recidivist Sex Offender Sentenced to More Than Two Decades in Federal Prison for the Sexual Exploitation of MinorsRead the Press Release
CONCORD – A Manchester man was sentenced today in federal court for producing child sexual abuse material, U.S. Attorney Jane E. Young announces.
Chad Lawlor, 48, was sentenced by U.S. District Court Judge Landya McCafferty to 25 years in prison and 30 years of supervised release. Lawlor pleaded guilty to four counts of sexual exploitation of a minor on November 13, 2023.
“The defendant is a recidivist sex offender that continued to prey upon and exploit children long after his previous conviction for hands-on sex offenses against a minor,” said U.S. Attorney Jane E. Young. “Today’s sentence ensures that the public will be safe from the defendant for more than two decades. We will never be able to undo the immeasurable harm Lawlor caused his survivors, but I hope today’s lengthy sentence provides the survivors some measure of comfort and justice that they deeply deserve.”
“Lawlor, already a convicted sex offender, manipulated young children into engaging in sexually explicit conduct in a private video chat which he recorded. He was the ringleader of an online group devoted to the sharing of images and videos that immortalized the abuse of innocent kids for the members’ own sick gratification. Today’s sentence takes him off the street,” said Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England. “We stand with the families of those Lawlor preyed on and hope today’s sentence can bring some closure as they begin to move forward.”
"NH ICAC is honored and privileged to work with so many dedicated law enforcement officers and prosecuting attorneys,” said Lieutenant Eric Kinsman, Commander of the New Hampshire ICAC Task Force. “It's this type of professional and collaborative relationship that brings cases like this to a successful conclusion and helps the victims of these heinous crimes take one step closer to the peace and happiness they deserve."
“Anyone who chooses to engage in the sexual exploitation of children possess a significant threat to society,” said Chief Kevin Rourke of the Nashua Police Department. “The Nashua Police Department is committed to identifying, arresting and prosecuting those individuals to the fullest extent of the law.”
Lawlor was identified during an online undercover investigation as being the administrator of an online chat group that was devoted to the exchange of child sexual abuse material (CSAM). Lawlor used the chat group to both send and receive images of CSAM with other users. Lawlor is a registered sex offender based on a 2005 Massachusetts conviction for indecent assault and battery on a person over 14.
Pursuant to a search warrant in April 2021, federal agents seized and examined two cell phones belonging to Lawlor, one of which contained numerous videos Lawlor created while engaged in online video chats with minors. During the video chats, Lawlor directed the minors to engage in sexually explicit conduct. Lawlor used the screen recording function of his cell phone to create videos of the minors engaged in sexually explicit conduct from the video chats. Lawlor pled guilty to charges relating to four identified minors ranging in age from 8 to 13 years old.
Homeland Security Investigations led the federal investigation. Valuable assistance was provided by the Nashua Police Department, the Manchester Police Department, the New Hampshire Internet Crimes Against Children (ICAC) Task Force, and the Hillsborough County Sheriff’s Department. Assistant U.S. Attorney Kasey Weiland prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
###
Rare, Wrongfully Obtained Manuscript Returned to Peruvian GovernmentRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero and FBI Philadelphia Special Agent in Charge Wayne A. Jacobs announced that a rare sixteenth-century manuscript was repatriated to the Peruvian government at a ceremony today presided over by U.S. Secretary of State Antony J. Blinken. The ceremony took place at the U.S. Department of State in Washington, D.C., with the Philadelphia case team in attendance.
On behalf of the Republic of Peru, Foreign Affairs Minister Javier González-Olaechea accepted the manuscript from the FBI. It will now be returned to the Archivo General de la Nación del Perú, the Peruvian national archives.
This six-page document, dated June 28, 1599, is a contract for the formation of the first theatrical company in the Americas in Lima, Peru. It had been in the collection of the Rosenbach Museum & Library (“the Rosenbach”) for almost a century, when it was voluntarily transferred by the Rosenbach to the custody of the FBI in November 2023.
In 2017, at the request of the Republic of Peru and in coordination with the Bureau of Educational and Cultural Affairs of the United States Department of State, the FBI Art Crime Team and the United States Attorney’s Office began an investigation into whether these manuscript pages in the Rosenbach collection had been wrongfully removed from a sixteenth-century bound volume in the Peruvian national archives. The Rosenbach cooperated fully in this investigation and concluded that the manuscript, which had been purchased in the 1920s by its founder, Dr. A.S.W. Rosenbach, had been removed from the bound volume in the archives at some time prior to Dr. Rosenbach’s purchase.
“It’s been an honor for our office to assist in the return of this centuries-old manuscript to the people of Peru,” said U.S. Attorney Romero. “The document represents a unique part of Peru’s history, and its repatriation reflects the Department of Justice’s ongoing commitment to protecting cultural heritage, not just in our own country, but around the world.”
“We are incredibly grateful to stand alongside our partners, both national and international, to return cultural property to its rightful home,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The Bureau, through the diligent work of our Art Crime Team, is committed to preserving cultural heritage and returning them to the communities to which they belong.”
The United States Attorney’s Office and the FBI thank the Peruvian government for their partnership, and acknowledge the cooperation and assistance of the Rosenbach that led to today’s repatriation.
This case was investigated by the FBI Art Crime Team and was handled by Assistant United States Attorney K.T. Newton.
Q1 2024 Local Papering Rates and the Impact of Mandatory Arrest on Local ProsecutionsRead the Press Release
The U.S. Attorney's Office For the District of Columbia, today, released Q1 24 papering rates.
Providence Man Sentenced for Possession of Stolen U.S. Mail, Violating the Terms of Federal Supervised ReleaseRead the Press Release
PROVIDENCE, RI – A Providence man found to be in possession of nearly $200,000 in stolen and fraudulent checks while serving a term of federal supervised release for an unrelated bank fraud conviction was sentenced today to eighteen months in federal prison, announced United States Attorney Zachary A. Cunha.
On February 2, 2023, during his arrest on an unrelated state narcotics charge, Edmilson Rodrigues, 25, was found by Providence Police Detectives to be in possession of ninety-one legitimate checks totaling approximately $170,758.26 and eight fraudulent checks totaling approximately $22,838.01. Also seized was blank check-paper stock used for creating fraudulent checks and a printer.
The United States Postal Inspection Service determined that the legitimate checks seized from Rodrigues’ residence had been mailed out by various businesses but were never received by the intended recipients. Combined with the fraudulent checks, the intended loss totals $193,596.27.
At the time of his arrest on an unrelated state drug charge in February 2023, Rodrigues was serving a term of federal supervised release that followed a sentence of twenty-four months of incarceration imposed by a federal judge in September 2020, as a result of his conviction on bank fraud charges.
Rodrigues pleaded guilty in federal court on November 14, 2023, to a charge of possession of stolen mail. He was sentenced today by U.S. District Court Judge William E. Smith to eighteen months of incarceration to be followed by three years of federal supervised release. The Court ordered that Rodrigues serve the first three months of federal supervised release at a halfway house.
The case was prosecuted by Assistant United States Attorney Ly T. Chin
The matter was investigated by the United States Postal Inspection Service and the Providence Police Department.
###
Previously Convicted Sex Offender Found Guilty After Three-Day Trial for Production of Child Pornography and Coercion and Enticement of a MinorRead the Press Release
Greenbelt, Maryland – A federal jury yesterday convicted Brian Patrick Werth, age 39, of Beltsville, Maryland, for two counts of production of child pornography and for coercion and enticement of a minor to engage in sexual activity. Werth was also convicted of committing a crime involving a minor by a registered sex offender.
The guilty verdict was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; and Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police.
According to the evidence presented at his three-day trial, between January and June 2021, Werth persuaded, enticed, and coerced two minor female victims to engage in sexually explicit conduct to produce visual depictions of such conduct and to transmit the images to Werth using the internet-based applications. Werth communicated with the victims over an internet-based chat application.
As detailed in testimony at trial, Werth enticed and persuaded a 14-year-old female victim through various means, including, for example, sending her pictures of other apparent minors engaged in sexually explicit conduct, flattering her, and sending her cash card codes for the purchase of lingerie and “school girl” outfits that the 14-year-old female had identified in texts to Werth. Werth also enticed and persuaded a separate 15-year-old female victim to produce child pornography for him and transmit it to him via internet-based applications.
Trial evidence proved that during that same time frame, Werth also communicated with a third 11-year-old female victim. The conversations were sexual in nature with Werth asking directly for nude pictures of the 11-year-old victim.
Werth faces a mandatory minimum sentence of 25 years in federal prison and a maximum of 50 years in federal prison for production of child pornography due to his prior conviction, to be followed by a 10 year mandatory consecutive sentence for commission of a new offense involving a minor while being required to register as a sex offender. Werth also faces a mandatory minimum of 10 years in federal prison and up to life in prison for coercion and enticement of a minor. Upon his release from prison Werth will be required to continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act. U.S. District Judge Theodore D. Chuang has scheduled sentencing for July 23, 2024 at 9:30 a.m.
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 Attorney’s 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.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
United States Attorney Erek L. Barron commended HSI and the Maryland State Police for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys LaShanta Harris and Adam K. Ake, who are prosecuting the 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
# # #
Previously Convicted Man Pleads Guilty to Escaping from CustodyRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that William Valencia pleaded guilty in federal court to escape from custody. Valencia, 33, of Paguete, New Mexico, will remain in custody pending sentencing, which has not yet been scheduled.
Valencia was convicted in January 2020 for assault of an intimate partner by strangling and suffocating and sentenced to 75 months in prison to be followed by three years of supervised release. Valencia was placed at the Dismas Charities Diersen Residential Reentry Center in Albuquerque to serve the last 6 months of his custodial sentence. On July 27, 2023, Valencia left the facility without permission and failed to return. On Oct. 6, 2023, Valencia was arrested by the Albuquerque Police Department for possession of a controlled substance and was taken into federal custody on Oct. 10, 2023.
At sentencing, Valencia faces up to five years in prison.
The United States Marshals Service investigated this case. Assistant United States Attorney Jesse Pecoraro prosecuted the case.
# # #
Pocatello Woman Sentenced to over 15 Years in Federal Prison for Methamphetamine and Fentanyl DistributionRead the Press Release
POCATELLO – Helen Lorraine Monaco, 38, of Pocatello, was sentenced to 188 months in federal prison for possession with the intent to distribute methamphetamine, and fentanyl, U.S. Attorney Josh Hurwit announced today.
According to court records, on February 4, 2023, Monaco, and her husband (co-defendant Jonathan Monaco, 43,) were traveling from California to Idaho – where they reside – when their vehicle was stopped by law enforcement in Washoe County, Nevada. Law enforcement initially found 65 grams of methamphetamine in the vehicle along with fentanyl, marijuana, and a digital scale. Monaco and her husband were arrested and booked into the Washoe County Jail. While in jail, law enforcement obtained a search warrant to re-search the vehicle and found an additional 4,000 fentanyl pills, and over two pounds of methamphetamine hidden in a void behind the spare tire. Investigators gathered additional evidence that Monaco and her husband were working with co-defendant Eric Weimer, in the distribution of methamphetamine and fentanyl in southeast Idaho, and elsewhere.
Senior U.S. District Judge B. Lynn Winmill also ordered Monaco to be placed on supervised release for five years following her prison sentence. Monaco pleaded guilty to the charge on December 11, 2023.
Co-defendant Jonathan Monaco entered a guilty plea to the charge of possession with the intent to distribute methamphetamine, and fentanyl, on February 1, 2024, and is scheduled to be sentenced before Judge Winmill on May 7, 2024. Co-defendant Eric Weimer, 46, also of Pocatello, entered a guilty plea to the charge of possession with the intent to distribute methamphetamine, and fentanyl, on February 1, 2024, and is set to be sentenced before Judge Winmill on May 8, 2024.
“Fentanyl enforcement is a top priority for us in Eastern Idaho and throughout the state,” said U.S. Attorney Hurwit. “I am thankful to our law enforcement partners who investigated this case and helped to dismantle this trafficking operation. We will continue to support this important work and make sure that drug traffickers face the justice that they deserve.”
“The successful outcome of this case is a testament to the strength of collaboration between law enforcement agencies across state lines. The Idaho State Police, along with our partners, remain committed to protecting our communities from the dangers of drug trafficking. Together, we will continue to work tirelessly to ensure the safety and security of Idaho's citizens,” said Captain Fritz Zweigart, District 5, Idaho State Police.
U.S. Attorney Josh Hurwit applauded the Federal Bureau of Investigation, the Idaho State Police, the BADGES/HIDTA Taskforce, the Washoe County Sheriff’s Office in Nevada, and the Montana Highway Patrol for their collaborative work on the case. Assistant U.S. Attorney Justin Paskett prosecuted this case.
The BADGES Task Force is a collaboration of federal, state, and local law enforcement agencies that focuses primarily on drug trafficking crimes in Bannock County and throughout the region.
###
Pierce Brosnan fined for foot travel in a thermal area in Yellowstone National ParkRead the Press Release
Pierce Brosnan, 70, of Malibu, California, was fined $500, and required to pay a $1,000 community service payment to the Yellowstone Forever Geological Fund, a $30 court processing fee, and a $10 special assessment. U.S. Magistrate Judge Stephanie A. Hambrick imposed the sentence on Mar. 14, in Mammoth, Wyoming.
Mr. Brosnan pleaded guilty to foot travel in a thermal area. According to court documents, on or about Nov. 1, 2023, Brosnan uploaded pictures to his Instagram page of himself standing on a Yellowstone National Park thermal feature at Mammoth Hot Springs. There are signs posted in the area that warn visitors of the dangers of thermal features and state that visitors must remain on the designated boardwalks and trails.
The United States Attorney’s Office asked the court to sentence Brosnan to 2 years’ probation and the maximum fine of $5,000.
The National Park Service (NPS) reminds Yellowstone visitors that the ground in thermal areas is fragile and thin, and scalding water is just below the surface. Therefore, trespassing on thermal features is dangerous and can harm delicate natural resources within the park. Additionally, the park was established primarily to protect these hydrothermal areas. NPS encourages visitors to exercise extreme caution around thermal features by staying on boardwalks and trails.
NPS also urges people to protect themselves and the fragile environment by taking the Yellowstone Pledge: act responsibly and safely and set a good example for others. If you see someone, in person or online, whose behavior might hurt them, others, or the park, tell a ranger. If you’re in the park, dial 911. Learn about safety in Yellowstone.
For additional information related to Yellowstone National Park, please contact the Public Affairs Office at 307-344-2015 or [email protected].
This crime was investigated by the National Park Service. The case was prosecuted by Assistant U.S. Attorney Ariel Calmes.
On the Second Day of Trial, Fake Doctor Pleads Guilty to Mail FraudRead the Press Release
SALT LAKE CITY, Utah – Before opening statements, Gordon Hunter Pedersen, 64, of Cedar Hills, Utah, pleaded guilty today to mail fraud and introduction of misbranded drugs into interstate commerce with intent to defraud and mislead. The case against Pedersen received national attention after he, acting as a doctor, promoted and sold silver products that falsely claimed could treat and cure diseases, including COVID-19.
In August 2023, Pedersen, a three-year fugitive, was arrested after he fled from law enforcement in 2020 and failed to appear on the indictment in this case. See prior news release here.
According to court documents, from 2012 through 2020, Pedersen lied to consumers about his education, qualifications, and about the palliative abilities of his silver products – “structured alkaline silver solution,” silver lozenges, silver probiotics, silver soap, silver mouthwash and silver gel. His fraudulent salesmanship generated thousands of dollars and his sales skyrocketed in 2020, when the COVID-19 pandemic began, and before approved vaccines were available. Mr. Pedersen distributed his Silver Products through his company My Doctor Suggests, LLC (MDS), where he was 25% owner and the company spokesman and primary marketer.
At the end of 2019 through May 2020, through YouTube videos and other advertising means, Mr. Pedersen claimed that his silver products would prevent, cure, and treat COVID-19. Via the internet, Pedersen, sold the “structured alkaline silver” solution, which he claimed, “resonates or vibrates, at a frequency that destroys the membrane of the virus, making the virus incapable of attaching to any healthy cell, or to infect you in anyway.” To further defraud, Pedersen falsely claimed on YouTube videos to be medical doctor. On January 30, 2020, Pedersen posted a video promotion on YouTube entitled “Coronavirus Best Solution! Hand Sanitizers! Structured Silver Gel from Dr. Gordon Pedersen.”
In April 2020, Pedersen shipped his silver products, via United States Postal Service, first class mail from American Fork, Utah to Kansas City, Kansas, therefore impacting interstate commerce.
Pedersen is scheduled to be sentenced May 29, 2024, at 2:00 p.m. in courtroom 8.1 at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
United States Attorney Trina A. Higgins of the District of Utah made the announcement.
Assistant United States Attorneys Jacob J. Strain and Brian Williams from the U.S. Attorney’s Office for the District of Utah are prosecuting the case with assistance from Trial Attorney Speare Hodges and Sarah Williams from the Department of Justice, Civil Division’ Consumer Protection Branch. James Smith from FDA’s Office of Chief Council is also assisting.
The case is being investigated jointly by the FDA’s Office of Criminal Investigation (FDA-OCI), Homeland Security Investigations (HSI), Federal Bureau of Investigation (FBI) Salt Lake City Field Office. Valuable assistance was also provided by the U.S. Marshals Service.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus and https://www.justice.gov/coronavirus/combatingfraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.
New Baltimore Pharmacist Sentenced to over 8 Years in Prison for Filling Fake PrescriptionsRead the Press Release
DETROIT –A New Baltimore resident was sentenced yesterday to 8 years and 4 months in federal prison following her convictions fo 26 drug-related crimes, including unlawful distribution of controlled substances and conspiracy to unlawfully distribute prescription drug-controlled substances, announced United States Attorney Dawn N. Ison.
Joining Ison in the announcement were Orville Greene, Special Agent in Charge of the Detroit Field Office of the Drug Enforcement Administration, and Mario M. Pinto, Special Agent-In-Charge, United States Department of Health and Human Services – Office of Inspector General.
Hasna Bashir Iwas, 62, the owner and operator of Beacon Pointe Pharmacy in Grosse Pointe Park, Michigan was sentenced by United States District Judge Laurie J. Michelson following a jury trial.
The convictions resulted from defendant’s operation of Beacon Pointe Pharmacy in Grosse Pointe Park during 2013-2018. The defendant regularly filled many prescriptions issued by a local doctor, Otis Crawford. Dr. Crawford was charged with unlawfully writing controlled substance prescriptions and pleaded guilty, but died before his sentencing. Pharmacist Iwas was held criminally responsible for distributing over 300,000 dosage units of controlled substances. The drugs had an estimated street value of $1.8 to $3.3 million. She personally received gross income of $781,546 from the illegal distribution of pills from her pharmacy. As part of her sentence, she was ordered to forfeit $781,546, which represents the proceeds of her drug dealing.
“My office will continue to devote resources to prosecuting healthcare professionals such as this defendant, who use their trusted roles as healthcare providers to deal drugs in our community,” said U.S. Attorney Ison.
The investigation was conducted by the Drug Enforcement Administration, the Department of Health and Human Services – Office of Inspector General, with assistance from the Detroit Police Department.
The case was prosecuted by Assistant United States Attorney Wayne F. Pratt, while forfeiture litigation was handled by Assistant United States Attorney Gjon Juncaj.
Nevada Man Sentenced to 27 Months in Prison and Ordered to Pay over $1.1 Million in Restitution for Tax FraudRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Carissa Messick, Acting Special Agent in Charge, IRS Criminal Investigation Phoenix Field Office, announced today that Victor Kearney was sentenced to 27 months in prison and ordered to pay $1,188,645.00 in restitution. A federal jury convicted Kearney, 59, of Zephyr Cove, Nevada, for filing false tax returns on March 10, 2023.
A federal grand jury indicted Kearney and his co-defendant Robert Fiser, 63, of Albuquerque, on August 29, 2019. According to the evidence at trial and other publicly available court records, from 1997 to 2013, Kearney received about $16 million in trust income as lifetime beneficiary of two testamentary trusts established after the death of his first wife, Mary Pat Abruzzo-Kearney. These trusts were shareholders in Alvarado Realty Company (“ARCO”).
At first, Kearney properly reported his trust income on tax returns prepared by a certified public accountant. Then ARCO restructured into a C corporation with subchapter S status. This meant corporate income, losses, deductions, and credits now passed to shareholders for tax purposes. Since the taxes Kearney owed to the government were no longer withheld by ARCO or the trusts, Kearney did not pay them. Instead, Kearney conspired with Fiser, an attorney specializing in tax law and the preparation of federal income tax returns, to submit knowingly false tax returns from 2007 through 2011 showing little or no trust income. As a result, Kearney owes the IRS $1,188,645.00.
Kearney came to the attention of the IRS in 2013 when he filed a lawsuit against his former brothers-in-laws, Benjamin and Louis Abruzzo. Kearney claimed that the Abruzzos mismanaged Mary Pat Abruzzo-Kearney’s trusts to Kearney’s financial disadvantage. During the litigation, District Judge Alan M. Malott heard evidence that prompted him to refer Kearney’s case to the IRS for further investigation. The state case was resolved in favor of the Abruzzos.
Upon his release from prison, Kearney will be subject to three years of supervised release.
Fiser pleaded guilty on July 11, 2022, to one count each of conspiracy and aiding and assisting in preparation of a false and fraudulent return.
IRS Criminal Investigation investigated this case with the assistance of the Office of the U.S. Trustee also assisted. Assistant United States Attorneys Sean J. Sullivan and Kimberly A. Brawley prosecuted the case.
# # #
N.C. Man Admits to Traveling to Virginia to Have Sex with MinorRead the Press Release
CHARLOTTESVILLE, Va. – A North Carolina man, who lied about his age to a 14-year-old girl he met on Instagram before traveling to Virginia to have sex with her, pled guilty yesterday in U.S. District Court.
Rayvon Birden, 26, of Raleigh, North Carolina, pled guilty yesterday to one count of traveling in interstate commerce for the purpose of engaging in sexually illicit conduct. As part of his plea agreement, Birden and the government agreed to a sentencing range between 78 and 120 months in prison and that he will be required to register as a convicted sex offender upon his release.
According to court documents, Birden contacted the 14-year-old victim through Instagram direct messaging and represented himself as a 16-year-old named “Nolan.”
Birden and the victim exchanged phone numbers and began communicating via text messages and Facetime regularly. Over the course of their conversations, Birden masturbated in front of the victim and, on at least one occasion, asked for nude photographs of her, which the victim sent via text messaging.
Birden then drove from his home in North Carolina to meet the victim at a hotel near her Virginia home where they had sexual intercourse on multiple occasions, at least one of which Birden filmed.
United States Attorney Christopher R. Kavanaugh and Special Agent in Charge Derek W. Gordon of Homeland Security Investigations (HSI) Washington, D.C. made the announcement.
HSI- Harrisonburg, Virginia, in conjunction with the Albemarle County Police Department and the Southern Virginia Internet Crimes Against Children Task Force, is investigating the case.
Assistant U.S. Attorney Jordan E. McKay is prosecuting the case.
Muskogee Resident Sentenced to Life for MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Robert William Rainford, age 51, of Muskogee, Oklahoma, was sentenced to life in prison for one count of First Degree Murder in Indian Country. Rainford also received a consecutive sentence of 10 years for using a firearm to commit the offense.
The charges arose from investigations by the Federal Bureau of Investigation and the Muskogee County Sheriff’s Office.
On May 5, 2023, Rainford was found guilty at trial by a federal jury. According to investigators, on December 12, 2021, Rainford intentionally shot his neighbor multiple times in the head and torso, killing him. Law enforcement officers responding to the 911 emergency call encountered a bloodied Rainford, who directed them where to find the weapon. The crime occurred in Muskogee County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
The Honorable David C. Joseph, U.S. District Judge in the United States District Court for the Western District of Louisiana, sitting by assignment, presided over the hearing in Muskogee. Rainford was remanded into the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorneys Kevin Gross and Ryan Bondura represented the United States.
Muskogee Resident Pleads Guilty to RobberyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Darrin Renay Kimble, a/k/a Darrin Latroy Kimble, a/k/a Darrin Renay Teague, age 58, of Muskogee, Oklahoma, entered a guilty plea to one count of Robbery in Indian Country.
At the plea hearing, Kimble admitted that on February 21, 2021, he took a television from the person and presence of the victim by force, violence, and intimidation. The crime occurred in Wagoner County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Coweta Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Kimble will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Michael E. Robinson represented the United States.
Mooresburg Man Sentenced to 190 Months for Firearm OffenseRead the Press Release
GREENEVILLE, Tenn. – On March 14, 2024, George Wesley Short, 56, of Mooresburg, Tennessee, was sentenced to 190 months of imprisonment by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville. During the sentencing proceeding, Judge Corker found Short to be an Armed Career Criminal based on his prior criminal history. Following his incarceration, Short will be on supervised release for five years. Judge Corker also ordered the forfeiture of the firearm seized during Short’s arrest.
Short pled guilty to a Superseding Indictment, which charged him with being a felon in possession of a firearm in violation of 18 U.S.C. § 922(g)(1). According to the stipulated facts, which were filed with the court, Short admitted that on December 29, 2021, a deputy with the Hawkins County Sheriff’s Department attempted a traffic stop on his vehicle; however, Short refused to stop and a vehicle pursuit ensued. After his vehicle broke down, Short attempted to flee on foot, but was apprehended. When law enforcement searched his vehicle, they located a firearm on the passenger-side floorboard of the vehicle. Short also admitted that he was previously convicted of a felony offense.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee and Special Agent in Charge, Marcus S. Watson, of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) made the announcement.
The criminal indictment was the result of an investigation by the Hawkins County Sheriff’s Department and the ATF. This investigation was led by ATF Special Agent Bryan Williams.
Assistant United States Attorneys B. Todd Martin and Luke McLauren represented the United States.
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.
###
Moldovan National Sentenced to Federal Prison for Operating Websites Involved in the Illicit Sale of Compromised Computer CredentialsRead the Press Release
Tampa, Florida – U.S. Senior District Judge James Moody, Jr. has sentenced Sandu Boris Diaconu (31, Moldova) to 42 months in federal prison for conspiracy to commit access device and computer fraud and possession of 15 or more unauthorized access devices. Diaconu pleaded guilty on December 1, 2023.
According to court documents, Diaconu developed, published online, and conspired with others to manage the operations of the E-Root Marketplace, a series of websites that operated for years and was used to sell access to compromised computers worldwide, including servers belonging to companies and individuals in the United States. The E-Root Marketplace operated across a widely distributed network and took steps to hide the identities of its administrators, buyers, and sellers. Buyers could search for compromised computer credentials on E-Root, such as usernames and passwords that would allow buyers to access remote computers for purposes of stealing private information or manipulating the contents of the remote computer. Buyers could search for credentials by desired criteria, such as price, geographic location, internet service provider, and operating system. The Marketplace also used Perfect Money, an online payment system, in order to help conceal buyers’ payments, and it offered its illicit cryptocurrency exchange service for the purpose of converting Bitcoin to Perfect Money and vice-versa. This exchange was also seized.
Based on evidence obtained during the investigation, authorities believe that more than 350,000 credentials were listed for sale on the Marketplace. The victims span the globe and all industries, as well as at least one local government agency in Tampa. Many victims were subject to ransomware attacks, and some of the stolen credentials listed on the Marketplace were linked to stolen identity tax fraud schemes.
Diaconu was arrested while attempting to leave the United Kingdom in May 2021, at the request of the United States, and extradited to the United States on October 13, 2023.
This U.S. investigation was led by the IRS – Criminal Investigation Cyber Crimes Unit (Washington, D.C) and the FBI – Tampa Division. Substantial assistance was provided by the IRS – Criminal Investigation (Tampa Field Office), the Department of Justice’s Office of International Affairs, IRS-CI and FBI International Operations at Mission UK, the United Kingdom’s National Extradition Unit, and the U.S. Marshals Service (Tampa Field Office). The criminal investigation was overseen at various stages of the prosecution by Assistant United States Attorneys Rachel Jones and Adam J. Duso. Asset forfeiture was handled by Assistant United States Attorney Suzanne Nebesky.
Middleburg Man Sentenced to 25 Years for Producing Child Sexual Abuse ImagesRead the Press Release
Jacksonville, Florida – Chief U.S. District Judge Timothy J. Corrigan has sentenced Sam David Harris, Jr. (38, Middleburg) to 25 years in federal prison for production of child sexual abuse images, to be followed by a lifetime of supervised release. The court also ordered Harris to pay $65,500 in restitution to the victims of his offenses. Harris pleaded guilty on September 21, 2023.
According to court documents, in February 2023, Homeland Security Investigations (HSI) began an investigation into a Cyber Tip received by the National Center for Missing and Exploited Children about child sexual abuse materials (CSAM) being uploaded to a particular site of an electronic services provider. This investigation led law enforcement to Harris and his residence.
On April 20, 2023, HSI Jacksonville special agents and task force officers executed a search warrant at Harris’s residence. During the search, a thumb drive was discovered concealed in the bottom portion of a small box located in the top drawer of a bedside nightstand. Also found in the top drawer was a prescription medicine container bearing Harris’s name. An onsite forensic preview of the thumb drive led to the discovery of numerous videos and images depicting child sexual abuse material (CSAM). Additional analysis of the thumb drive revealed more than 100 images that appeared to have been produced by Harris. Harris’s hand, arm, and forearm were visible in several of the files. One of the females in the images was subsequently identified as a child to whom Harris had access.
This case was investigated by the Northeast Florida INTECEPT Task Force, to include Homeland Security Investigations (HSI) Jacksonville, the Jacksonville Sheriff’s Office, the St. Johns County Sheriff’s Office, the Clay County Sheriff’s Office, and the Columbia County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Ashley Washington and former Assistant United States Attorney Kelly Karase.
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.justice.gov/psc.
Memphis Resident Sentenced for Conspiracy to Commit Federal Firearm OffensesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Andria Victoria Dowdy, age 22, of Memphis, Tennessee, was sentenced to 42 months in prison for conspiring to violate federal firearms offenses, including unlawful possession of a silencer and unlawful possession of non-serialized firearm.
The charges arose from investigations by the Sequoyah County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On June 1, 2023, Andria Victoria Dowdy and co-defendants Jemarcus Maquel Williams and Anfernee Deshon Sherrod each entered guilty pleas to one count of Conspiracy to violate federal firearms offenses. According to investigators, the trio conspired to obtain firearms in the State of Oklahoma. On December 29, 2021, Sequoyah County Sheriff’s deputies initiated a traffic stop on I-40 in Sequoyah County. Law enforcement ultimately discovered Dowdy, Williams, and Sherrod in possession of six firearms with large capacity magazines and an unserialized silencer. On February 21, 2024, Williams and Sherrod were sentenced to 60 months in prison for their role in the offenses.
The Honorable David C. Joseph, U.S. District Judge in the United States District Court for the Western District of Louisiana, sitting by assignment, presided over Dowdy’s sentencing hearing in Muskogee. Dowdy was remanded to the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve her non-paroleable sentence of incarceration.
Assistant United States Attorney Edith Singer represented the United States.
Man Who Robbed Raleigh Sweepstakes Business Sentenced to 25 YearsRead the Press Release
WILMINGTON, N.C. – Joseph Plummer, age 36, of Raleigh was sentenced today to 300 months in prison and five years of supervised release, for brandishing a firearm while robbing a Raleigh sweepstakes parlor.
“Luck was not on the side of Mr. Plummer and his crew when they targeted this sweepstakes parlor,” said U.S. Attorney Michael Easley. “After disarming a security guard and holding employees at gun point, he is now facing the next 25 years behind bars. Police also recovered every penny of the stolen cash. When you gamble with crime the odds are never on your side.”
“I am grateful for the work of U.S. Attorney Michael Easley’s office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for their ongoing partnership in this case. This is another example of how collaboration with our federal, state, and local partners puts violent offenders behind bars. Plummer chose to conspire with others to terrorize and commit an armed robbery of a local business. This violence has no place in our community, and we will continue to vigorously investigate these incidents to ensure our Federal and state prosecutors have the necessary evidence to send these offenders to prison,” said Raleigh Police Chief Estella Patterson.
“ATF and our law enforcement partners remain committed to apprehending those who pose a threat to our communities,” said ATF Special Agent in Charge Bennie Mims. “Through a focused collaboration, we’ve recovered multiple firearms and removed a dangerous individual from our streets.”
According to court records and evidence presented in court, in the spring of 2021, Plummer arranged a robbery of the NGM City Sweepstakes where his then-girlfriend, Tawanna Godwin, worked. Plummer sought the assistance of Eric Lamonte Fair, whom he had previously met in federal prison, to plan a robbery of the business. During the early morning hours of July 27, 2021, Plummer drove Fair, Ky’sheke Hishad Sweat and Elij-wn Unique Oglesby to the business on N. Market Drive in Raleigh. Fair, Sweat and Oglesby entered the business with assistance provided by Godwin. Once inside, all three men disarmed the business’s security guard and held the employees at gunpoint while they collected money and other items, such as an employee’s cell phone, from the victims. Plummer then drove Fair, Sweat and Oglesby back to the residence he shared with Godwin.
Witnesses gave Raleigh Police a description of the vehicle seen leaving the scene. A vehicle matching the description was located at a townhome complex. While an officer was examining the car, Fair, Sweat, and Oglesby came out of the residence. The clothing they were wearing was similar to the clothing worn by the robbers on the surveillance footage from the NGM City Sweepstakes. The trio denied being involved in the robbery but admitted to having been in the car. Officers obtained a warrant to search the residence and found nearly $60,000 in cash in the washer/dryer, and five firearms, including the gun taken from the security guard.
Sweat, age 24, of Concord pled guilty to robbery of a business in interstate commerce and aiding and abetting and brandishing a firearm during and in relation to a crime of violence and aiding and abetting. On September 27, 2023, Sweat was sentenced to serve 130 months in prison.
Oglesby, age 25, of Salisbury, pled guilty to robbery of a business in interstate commerce and aiding and abetting and brandishing a firearm during and in relation to a crime of violence and aiding and abetting on February 8, 2023. On January 25, 2024, Oglesby was sentenced to serve 65 months in prison.
Fair, age 35, of Salisbury, pled guilty to robbery of a business in interstate commerce and aiding and abetting and brandishing a firearm during and in relation to a crime of violence and aiding and abetting on April 25, 2023. On March 13, 2024, Fair was sentenced to 96 months and 1 day in prison.
Godwin, age 46, of Raleigh pled guilty to robbery of a business in interstate commerce and aiding and abetting on December 12, 2023. Godwin’s sentencing is set for the May 21, 2024, term of court.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Raleigh Police Department investigated the case with the assistance of the ATF. Assistant U.S. Attorneys Sarah E. Nokes and Erin C. Blondel prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-251-M.
###
Malden Food Market Settles Allegations of Food Safety Law ViolationsRead the Press Release
BOSTON – A retail food market in Malden – operating under a consent decree for previous violations of federal law relating to the sale and transport of misbranded and uninspected meat food and poultry products – has entered into a settlement agreement with the government to resolve allegations that it violated the law for the third time in four years.
Under the terms of the settlement agreement, Kim Long Market Malden, LLC and its managers, Chien Hong Pham, Thomas Pham and Tien Manh Pham, will voluntarily close the business, pay civil penalties and restrict their future employment in the food retail business.
In 2019, the defendants entered into a consent decree with the United States Department of Agriculture (USDA) and admitted that they had purchased, offered for sale and sold meat food products that were not inspected by USDA and were misbranded in violation of the Federal Meat Inspection Act (FMIA). In addition, the defendants admitted that they failed to maintain appropriate business records concerning those meat products. The defendants also agreed to pay civil penalties and be subject to other restrictions if they violated the FMIA again.
Since entering into the consent decree, the defendants have violated the FMIA twice –in 2020 and again in January 2023 – by selling and offering to sell 217 pounds of uninspected and misbranded meat food products to retail customers.
The settlement agreement, which resolves the January 2023 allegations, requires the defendants immediately pay $65,000 in civil penalties and holds in abeyance an obligation to pay an additional $262,000 in civil penalties if the defendants close Kim Long Market; Chien Hong Pham and Thomas Pham agree to not work in the retail food business again; and Tien Manh Pham agrees to not own or manage a food retail business and report his employment with any food retail business for a period of five years.
“Consumers should be able to trust that their food is produced and sold under safe and sanitary conditions,” said Acting United States Attorney Joshua S. Levy. “This settlement agreement protects the public and holds the defendants accountable for their repeated failures to comply with the Federal Meat Inspection Act.”
“The work our personnel do every day is critical to protecting public health,” said Administrator Paul Kiecker of USDA’s Food Safety and Inspection Service. “We do not tolerate repeated violations of the laws and regulations in place to protect American families.”
Acting U.S. Attorney Levy and USDA FSIS Administrator Kiecker made the announcement today. Assistant U.S. Attorney Steven Sharobem of the Affirmative Civil Enforcement Unit handled the matter.
Leader of Drug Trafficking Organization Sentenced for International Cocaine Trafficking ConspiracyRead the Press Release
A leader of the Lorenzana drug trafficking organization was sentenced last week to 33 years in prison and ordered to forfeit $27 million for charges related to international drug trafficking.
According to court documents, beginning in or about 2008 and continuing to at least 2019, Marta Julia Lorenzana-Cordon, 47, from Zacapa, Guatemala, was a leader of the Lorenzana drug trafficking organization, one of the largest and most influential drug cartels in Guatemala, which was comprised primarily of family members. The organization transports tonnage quantities of cocaine from Colombia into Guatemala, where the cocaine is inventoried and stored on properties owned by the organization throughout Guatemala. Once processed, the organization works with the Sinaloa Cartel, among other organizations, to traffic cocaine into Mexico, through Central America, and eventually, into the United States.
Lorenzana-Cordon was extradited in December 2021 to the United States from Guatemala. She pleaded guilty on May 2, 2023, to conspiring to distribute five kilograms or more of cocaine, knowing and intending that it would be unlawfully imported to the United States.
Between 1996 continuing through 2019, the organization coordinated the transportation, storage, and distribution of multi-ton quantities of cocaine from Colombia to Central America and Mexico, for eventual distribution into the United States. Lorenzana-Cordon’s siblings, Eliu Elixander Lorenzana-Cordon, 53, and Waldemar Lorenzana-Cordon, 59, were convicted in March 2019 on international narcotics trafficking charges in the District of Columbia and sentenced to life in prison. Lorenzana-Cordon’s father, Waldemar Lorenzana-Lima Sr., who has since passed away, pleaded guilty in August 2014 to international narcotics trafficking charges in the District of Columbia and was sentenced to 23 years in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division and Administrator Anne Milgram of the Drug Enforcement Administration (DEA) made the announcement.
This investigation is part of “Operation Slipknot,” which is supported by the Organized Crime Drug Enforcement Task Forces (OCDETF). The DEA’s 959/Bilateral Investigations Unit is investigating the case, with assistance from the DEA Guatemala City Country Office. The Justice Department thanks the Department of the Treasury’s Office of Foreign Assets Control for their support and contributions to the case.
The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition of the defendants. The department appreciates the assistance provided by the government of Guatemala.
Trial Attorneys Imani Hutty and Douglas Meisel of the Criminal Division’s Narcotic and Dangerous Drug Section prosecuted the case.
Leader of Belle Glade Based Bank Fraud Conspiracy Sentenced to Federal PrisonRead the Press Release
MIAMI - Ja’kevious Ri’shaad Vickers, the leader of a bank fraud conspiracy, was sentenced today to federal prison.
Vickers, Gregory Bernard Ashley Jr., and Naim W. Kahook were involved in a bank fraud conspiracy involving stolen checks, theft of personal identifying information, and the production of fraudulent or fake checks.
Vickers was sentenced to 57 months imprisonment, to be followed by five years of supervised release, and was ordered to pay $269,611.19 in restitution by U.S. District Judge Donald M. Middlebrooks. Vickers previously pleaded guilty to conspiracy to commit bank fraud, bank fraud, and aggravated identity theft.
Ashley Jr. and Kahook each previously pleaded guilty to conspiracy to commit bank fraud. Ashley Jr. and Kahook were sentenced to seven months and two months prison, respectively. Ashley was further ordered to pay $30,986.91 in restitution.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, Sheriff Ric Bradshaw of the Palm Beach County Sheriff’s Office (PBSO), Chief David E. England of the Jupiter Police Department, and Special Agent in Charge Javan Wilson of the U.S. Department of the Treasury Office of Inspector General (TIG) made the announcement.
The FBI Miami, West Palm Beach Resident Agency, PBSO, Jupiter Police Department, and TIG investigated the case. Assistant U.S. Attorney Marton Gyires prosecuted the case. Assistant U.S. Attorney Jorge Roberto Delgado is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-80185.
###
Leader of “Pure Armenian Blood” Sentenced to Six Years in Prison for Racketeering and Multimillion-Dollar FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that NAREK MARUTYAN and SARO MOURADIAN, a/k/a “Paul Mouradian,” were sentenced today to six years and 10 months in prison, respectively, for their participation in a multi-year, coast-to-coast credit card fraud scheme run by a racketeering enterprise referred to as “Pure Armenian Blood” or “P.A.B.” MARUTYAN, a leader of the P.A.B., previously pled guilty to participating in a racketeering conspiracy on June 12, 2023, before U.S. Magistrate Judge Ona T. Wang, and MOURADIAN, who owned and operated a Florida-based business that was used by the P.A.B. to run sham credit card charges, previously pled guilty to participating in a conspiracy to commit access device fraud on August 17, 2023, before U.S. Magistrate Judge Katherine H. Parker. U.S. District Judge Victor Marrero imposed today’s sentences.
U.S. Attorney Damian Williams said: “Pure Armenian Blood’s members enriched themselves and their criminal associates for almost a decade through fraudulent schemes that involved stealing others’ identities and spending millions of dollars of other people’s money as though there were no consequences. As a leader of the sophisticated, organized criminal enterprise, Narek Marutyan orchestrated these schemes and reaped the ill-gotten gains. He now faces years in prison for his crime. This prosecution reaffirms our unwavering commitment to combating organized crime in all its forms.”
According to the Indictment, public filings, and statements made during court proceedings:
Pure Armenian Blood was an organized criminal group operating under the direction and protection of an unindicted co-conspirator (“CC-1”), a “vor v zakone” or “vor,” which are Russian phrases translated roughly as “Thief-in-Law” or “Thief,” and which refer to an order of elite criminals from the former Soviet Union who receive tribute from other criminals, offer protection, and use their recognized status as a vor to adjudicate disputes among lower-level criminals. Members and associates of Pure Armenian Blood operated under the direction and protection of CC-1, a vor of Armenian descent previously based in Los Angeles before being deported in or about 2018. Pure Armenian Blood operated through groups of individuals, often with overlapping members or associates, dedicated to criminal aims, particularly identity theft, access device fraud, and credit card fraud, among others. While Pure Armenian Blood exploited victims and the financial system in New York City, it had operations in various locations throughout the U.S. and abroad, including through the use of purportedly legitimate business entities operating under the control and in conjunction with members of P.A.B. at various points throughout the conspiracy.
As a leader of the P.A.B. in New York, MARUTYAN orchestrated P.A.B’s various illicit activities, including the use of stolen personal identifying information, fraudulently opening and exhausting lines of credit, making purchases at collusive businesses with counterfeit credit cards or credit cards that were fraudulently opened, selling goods purchased with those lines of credit for profit, and the falsification of documents to “clean” the credit of account holders in whose names the lines of credit were opened.
As the owner and operator of two of the collusive businesses used by the P.A.B. to facilitate the credit card fraud scheme, MOURADIAN used credit cards that had been fraudulently obtained to run sham charges for which no legitimate goods or services were provided in exchange. He also provided personal identifying information of individuals that he knew to P.A.B. members, who used that information to fraudulently obtain additional credit cards that were used in furtherance of the fraud scheme.
* * *
In addition to his prison term, MARUTYAN, 33, of Brooklyn, New York, was ordered to pay restitution of $4,258.999.79 and forfeiture of $4,258.999.79. MOURADIAN, 40, of Hollywood, Florida, was ordered to pay restitution of $517,502.00 and forfeiture of $50,190.00. In addition to MARUTYAN and MOURADIAN, five other co-defendants have pled guilty and been sentenced, and one other co-defendant has pled guilty but has not yet been sentenced, as set forth below.
Mr. Williams praised the outstanding work of the New York Field Office of the Federal Bureau of Investigation’s Eurasian Organized Crime Squad, as well as the FBI’s New Jersey, Los Angeles, and Miami offices, Homeland Security Investigations, the New York City Police Department, the United States Postal Inspection Service, and United States Customs and Border Protection.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The prosecution of this case is being handled by the Office’s Illicit Finance & Money Laundering Unit. Assistant U.S. Attorney Emily Deininger is in charge of the prosecution.
DEFENDANT
CHARGE OF CONVICTION
SENTENCE
Narek Marutyan
Racketeering Conspiracy
6 Years
Albert Marutyan
Racketeering Conspiracy
51 Months
Davit Yeghoyan
Racketeering Conspiracy
45 Months
Mikayel Yeghoyan
Racketeering Conspiracy
41 Months
Saro Mouradian
Access Device Fraud
10 Months
Zaven Yerkaryan
Access Device Fraud
Pending
Vahe Hovhannisyan
Travel Act Money Laundering
364 Days
Gohar Illangyozyan
Making False Statements to Law Enforcement
Time Served
Last Conspirator Sentenced in Firearms and Drug Trafficking Conspiracy CaseRead the Press Release
United States Attorney Susan Lehr announced that Alexis Bernal Lopez, 24, of Omaha, Nebraska, was sentenced on March 14, 2024, in federal court in Omaha for his participation in a firearms conspiracy in the furtherance of drug trafficking. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Bernal Lopez to 30 months’ imprisonment on the firearms charge and 60 months’ imprisonment on the use of the firearm in the furtherance of drug trafficking charge for a total of 90 months. There is no parole in the federal system. After Bernal Lopez’s release from prison, he will begin a 3-year term of supervised release.
Codefendant Rodolfo Falcon owned a house that was the central location for the distribution of marijuana, marijuana derivatives, and cocaine. Falcon rented that house out to several younger drug dealers including Kenneth Blair, Alexis Bernal-Lopez, and Keland Strong. The Federal Bureau of Investigation Safe Streets Task Force performed a search of the residence and recovered cocaine, marijuana, currency, drug paraphernalia, and several firearms. Falcon, who has a distinctive tattoo on his hand, was seen in photos posing with firearms. One of the firearms shown in the picture was recovered from the residence. Agents also located a stolen firearm and AR15 rifle.
At the time of the search, Blair was in the basement of the residence along with two apparent narcotics customers. Drugs and cash were also recovered from that location. Strong was located in an upstairs room that contained numerous firearms. Falcon lived on the main level of the home where agents recovered cash, cocaine. and personal identification documents. Evidence of significant marijuana distribution such as wrappers for large quantities of marijuana were also recovered. This, along with text messages between the group members revealed that the home was being used as a narcotics distribution hub and that Majok Bethow, Bernal-Lopez, Strong, and Blair all worked together to sell drugs, particularly marijuana to ‘serves’ (their code word for narcotics purchasers) and would drive each other to sales and work together to get the right types of THC cartridges and marijuana to customers.
On September 28, 2023, Bethow pleaded guilty to firearms conspiracy in the furtherance of drug trafficking and was sentenced on January 11, 2024, to 24 months’ imprisonment to run concurrently with a federal case charging him with possessing a machinegun.
On September 28, 2023, Blair pleaded guilty to firearms conspiracy and was sentenced December 21, 2023 to 21 months’ imprisonment.
On October 27, 2023, Falcon pleaded guilty to firearms conspiracy and possession of a firearm in furtherance of drug trafficking. He was sentenced on January 19, 2024 to 24 months’ imprisonment.
On November 17, 2023, Strong pleaded guilty to firearms conspiracy and possession of a firearm in furtherance of drug trafficking. He was sentenced on February 8, 2024 to 72 months’ imprisonment.
This case was investigated by the Federal Bureau of Investigation.
Las Vegas Man Sentenced to Prison for COVID-19 Relief Loan Scheme Committed While on Supervised ReleaseRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced today by United States District Judge Cristina D. Silva to two and a half years in prison to be followed by three years of supervised release for devising a scheme to fraudulently obtain more than $550,000 in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loan applications that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, at the time of the fraud scheme, Arian Anthony Bailey, 34, was serving a term of federal supervised release for felony drug and gun convictions. While on release, Bailey devised a scheme to defraud the SBA. As part of the scheme, Bailey submitted on behalf of businesses – including a home health services business – that did not exist loan applications that contained false information, including: (a) false revenue amounts for non-existent companies, and (b) false certifications that Bailey would spend the loan money on business expenses, such as payroll costs, interest on mortgages, rent, and utilities. He also provided fraudulent documentation in support of his loan applications. The loss caused by Bailey’s scheme was $46,731.39.
In addition to the prison term, Bailey was ordered to pay restitution in the amount of $46,731.39.
United States Attorney Jason M. Frierson for the District of Nevada, Special Agent in Charge Spencer L. Evans for the FBI, Western Region Special Agent in Charge Weston King for the Small Business Administration, Office of Inspector General (SBA OIG), and Special Agent in Charge Jon W. Ellwanger for the Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau (FRB-CFPB OIG) made the announcement.
The case was investigated by the FBI, the SBA OIG, and the FRB-CFPB OIG. Assistant United States Attorney Kimberly Frayn prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
###
Kennewick Drug Trafficker Sentenced to Prison for Possessing More Than a Dozen WeaponsRead the Press Release
Richland, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Kyle Keith Trapp age 61, of Kennewick, Washington, was sentenced after pleading guilty to one count of Felon in Possession of a Firearm and Possession with Intent to Distribute Heroin. United States District Judge Mary K. Dimke imposed a sentence of 78 months imprisonment to be followed by 3 years of supervised release.
According to court documents and information presented at the sentencing hearing, on January 7, 2023, an assault victim arrived at a hospital in the Tri-Cities, bleeding and missing several teeth. He told law enforcement several individuals had beaten him and accused him of stealing drugs from Trapp.
Law enforcement obtained and executed a search warrant for Trapp’s residence. Investigators located 18 firearms including 5 shotguns, 8 rifles, and 5 handguns. Two of the weapons had unknown serial numbers, a third was a privately manufactured firearm or “ghost gun”. Officers located a quantity of ammunition and miscellaneous gun parts. Investigators also located approximately 300 grams of suspected heroin and substances used to mix with heroin for the purpose of distribution, 9 grams of suspected methamphetamine and various drug paraphernalia.
Trapp told detectives the assault and kidnapping happened at his residence, but he did not contact police because he had guns and drugs at his house. He also admitted to distributing heroin and trading guns for drugs. Furthermore, he told detectives he knew he was prohibited from possessing guns because of his prior felony.
“This case is an example of the culture of violence and dangerous behavior which surrounds drug distribution. Mr. Trapp had drugs, and more than a dozen illegal firearms, including a ghost gun, stashed at his house,” stated U.S. Attorney Waldref. “My office will continue to target violent offenders who threaten the safety of our communities.”
“Mr. Trapp knew he was barred from possessing firearms but demonstrated his complete disregard for the law and safety of his community.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “In addition to illegally possessing numerous weapons, he was distributing dangerous drugs into the community. I commend the work of our investigators and partners, whose hard work brought justice through putting this violent offender back in prison.”
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rebecca Perez.
Kanawha County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Arthur Ray Elkins, 59, of Chesapeake, pleaded guilty today to distribution of 50 grams or more of a mixture and substance containing methamphetamine.
According to court documents and statements made in court, on March 6, 2023, Elkins sold 55.5 grams of methamphetamine to a confidential informant in Chesapeake.
Elkins is scheduled to be sentenced on July 11, 2024, and faces a mandatory minimum of five years and up to 40 years in prison, at least four years of supervised release, and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the U.S. Route 119 Drug Task Force.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Samuel D. Marsh is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-15.
###
Justice Department and Federal Trade Commission File Comment with U.S. Copyright Office Supporting Renewal and Expansion of Exemptions Facilitating Consumers’ and Businesses’ Right to Repair Their Own ProductsRead the Press Release
The Justice Department’s Antitrust Division and Federal Trade Commission (FTC) have submitted a comment to the U.S. Copyright Office to advocate for regulations that would facilitate consumers’ and businesses’ right to repair their own products.
The Justice Department and FTC submitted the comment as the Copyright Office considers whether to recommend that the Librarian of Congress renew and expand temporary exemptions to the Digital Millennium Copyright Act’s (DMCA) prohibition against the circumvention of technology protection measures that control access to copyrighted content.
In their comment, the Justice Department and FTC said that renewing and expanding repair-related exemptions would promote competition in markets for replacement parts, repair and maintenance services, as well as facilitate competition in markets for repairable products. Promoting competition in repair markets benefits consumers and businesses by making it easier and cheaper to fix things they own. Expanding repair exemptions can also remove barriers that limit the ability of independent service providers — including small businesses and entrepreneurs — to provide repair services.
Manufacturers use technology protection measures to protect copyrighted works from theft and infringing uses, but these software locks can also be used to prevent non-infringing third-party repair, according to the Justice Department and FTC comment. For example, such measures can restrict access to computer maintenance hardware and software programs, leaving only original equipment manufacturers able to do maintenance and repair work. In their comment, the Justice Department and FTC say that by limiting access to the data and software needed for independent repair and maintenance, these technology protection measures can be used to squash competition for replacement parts, repair and maintenance, which ultimately limits consumers’ and businesses’ choices and raises costs.
The Justice Department has actively opposed repair restrictions that limit the ability of consumers and businesses to repair their own products. In a recently filed statement of interest in In re Deere & Co. Repair Services Litigation, 3:22-cv-50188 (N.D. Ill., 2023), the Antitrust Division stated clearly that “federal antitrust laws have long protected competition in aftermarkets,” such as markets for replacement parts and repair services by independent dealers.[1] The division has also brought cases to protect competition in markets for repair services or component parts, engaged in competition advocacy and provided technical assistance to Congress on proposed legislation that would promote the right to repair.
In their joint comment, the Justice Department and FTC expressed support for renewing, expanding and adding some specific DMCA exemptions. The agencies support renewing the current exemption related to computer programs that control devices designed primarily for use by consumers for diagnosis, maintenance or repair of the device and expanding it to include commercial and industrial equipment. In addition, they also support renewing an exemption related to the repair of motor vehicles and granting a new exemption to allow vehicle owners or independent repair shops to access, store and share vehicle operational data.
[1] Statement of Interest of the United States at 8, In re: Deere & Company Repair Services Antitrust Litigation, No. 3:22-cv-5018 (N.D.Ill. 2023). The district court recently denied the defendant’s motion for judgment on the pleadings, in part, citing the Division’s statement. The court’s reasoning acknowledged that the defendant plausibly has market power in the equipment market, and the difficulty of lifecycle pricing can support a repair aftermarket for purposes of determining harm to competition. Memorandum Opinion and Order at 39-49, In re: Deere & Company Repair Services Antitrust Litigation, No. 3:22-cv-5018 (N.D.Ill. 2023).
Jury finds Dayton men guilty on all counts in case involving murder of DEA task force officerRead the Press Release
DAYTON, Ohio – A federal jury has convicted two Dayton men on all counts in a case involving the 2019 death of Dayton Police Detective and DEA Task Force Officer Jorge DelRio.
Nathan Goddard, 44, was found guilty of murder. He and Cahke Cortner, 44, were also found guilty of multiple narcotics and firearms crimes. Goddard was found guilty of seven total counts and Cortner of four.
The verdict was announced today following a trial that began on Feb. 26 before U.S. District Judge Michael J. Newman.
“Task Force Officer Jorge DelRio dedicated his life to protecting the great people of Dayton and DEA will be forever grateful that his passion for narcotics enforcement led him to us,” said DEA Administrator Anne Milgram. “TFO DelRio was a mentor and coach to many in law enforcement, and so much more at home as a husband, a father, and a friend. Our hearts are heavy tonight after reliving the events of November 7, 2019, but more determined than ever to continue our mission of keeping Americans safe in his honor. We will never forget his sacrifice.”
“We stand with the DelRio family and our law enforcement partners, and we recognize that DEA Task Force Officer Jorge DelRio sacrificed his life to protect this community. We will never forget his ultimate sacrifice,” said U.S. Attorney Kenneth L. Parker. “This case is a reminder that, as public servants, law enforcement officers do a dangerous job every day. Today’s guilty verdicts should also serve as a reminder to perpetrators of violent crime that we see these matters through to the end and we will hold you accountable.”
“The Dayton Police Department is pleased to see that the jury has found Nathan Goddard and Cahke Cortner guilty in the tragic shooting of Detective Jorge DelRio,” said Dayton Police Chief Kamran Afzal. “This verdict marks a significant step towards closure for Detective DelRio's loved ones, our department, and our community. We extend our gratitude to the U.S. Attorney's Office for their diligent efforts throughout this case. It is imperative that those who inflict harm in our community are held accountable, and we anticipate that the sentencing will reflect this principle.”
“Today’s verdict clearly illustrates the resolve of the federal government, state and local law enforcement, to hold accountable anyone who chooses to undermine the rule of law. It also brings some semblance of closure to the DelRio family,” said DEA Detroit Special Agent in Charge Orville O. Greene. “TFO Jorge DelRio made the ultimate sacrifice serving Dayton, a city to which he dedicated more than 30 years of his life as a law enforcement professional. TFO DelRio’s courage and dedication to the City of Dayton, the State of Ohio and the country will never be forgotten.”
“While we all continue to mourn the death of Detective Jorge DelRio, this verdict is an important step forward, holding accountable those who are responsible for his death,” stated FBI Cincinnati Acting Special Agent in Charge Cheryl Mimura. “Detective DelRio is a hero who gave his life protecting the community and he will never be forgotten.”
“These individuals are responsible for the death of Detective Jorge DelRio, who was working to keep our community safe from dangerous drug traffickers,” stated Daryl S. McCormick, Special Agent in Charge of ATF’s Columbus Field Division. “As a Dayton Police Detective and DEA Task Force Officer, Det. DelRio was a selfless hero who gave his all, and ultimately his life, to protect the citizens of this nation. ATF is honored to have played a role in holding to account those responsible for Det. DelRio’s sacrifice. I hope this verdict brings some measure of closure to the family of Det. DelRio and sends a message to criminals that law enforcement will be relentless in our pursuit of justice.”
According to court documents and trial testimony, on Nov. 4, 2019, Goddard murdered Det. DelRio while Det. DelRio and others were executing a federal search warrant at 1454 Ruskin Road in Dayton.
During the execution of the search warrant, Det. DelRio and other officials announced themselves and entered the home at approximately 6:50pm. Det. DelRio descended the stairway to the basement of the residence, immediately came under gunfire from the basement, and was struck and killed.
As the government proved beyond a reasonable doubt at trial, from 2018 until November 2019, Goddard and Cortner participated in a narcotics conspiracy involving kilograms of fentanyl, cocaine and marijuana. The defendants kept firearms – including handguns fitted with laser sights – to protect the illegal drugs and their illicit proceeds.
In the residence they used, officials discovered 10 kilograms of fentanyl and cocaine, 50 to 60 pounds of marijuana, and more than $55,000 in cash.
Goddard and Cortner were originally charged in this case on Nov. 6, 2019, and were charged by superseding indictment in July 2022.
Goddard was convicted of murdering a federal law enforcement officer who was engaged in the performance of official duties, which is punishable by up to life in prison. He was also convicted of three counts of federal narcotics crimes (10 years up to life in prison), one count of intentionally killing someone while engaged in a drug crime (20 years up to life in prison), one count of discharging a firearm resulting in murder (10 years up to life in prison) and during a drug trafficking crime (10 years up to life in prison), and illegally possessing a firearm as a convicted felon (up to 10 years in prison).
Cortner was convicted of two counts of federal narcotics crimes (10 years up to life in prison), one count of participating in a drug trafficking crime that caused death (20 years up to life in prison), and one count of using a firearm during a drug trafficking crime.
Their co-defendant Lionel Combs III, 45, pleaded guilty just before the start of trial to maintaining a drug premises, a crime punishable by up to 20 years in prison.
Congress sets the minimum and maximum statutory sentences. Sentencing of the defendants will be determined by the Court at future hearings based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Dayton Police Chief Kamran Afzal; Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration (DEA); Cheryl Mimura, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Montgomery County Prosecutor Mat Heck, Jr. announced today’s verdict. U.S. Attorney Parker recognized the critical assistance of the Criminal Interdiction Team of Central Oklahoma (CITCO).
Deputy Criminal Chief Brent G. Tabacchi, Assistant United States Attorneys Amy M. Smith and Christina E. Mahy, and Special Assistant United States Attorney Erin Claypoole from the Montgomery County Prosecutor’s Office are representing the United States in this case.
# # #
Jury Finds Lexington Couple Guilty of Fraudulently Obtaining COVID Relief LoansRead the Press Release
LEXINGTON, Ky. – Two Lexington residents, Kelly Harris, 64, and Neal Harris, 57, were found guilty on Thursday, by a federal jury sitting in Lexington, following a four-day trial, of eight counts of wire fraud, for obtaining Economic Injury Disaster Loans loans under false pretenses.
According to the evidence at trial, from May 5, 2020 through July 25, 2020, the Harrises submitted materially false applications to the Small Business Administration (SBA), to obtain Economic Injury Disaster Loans (EIDL), for five businesses they claimed were impacted by the COVID-19 pandemic. They obtained $357,600 in disaster relief funds from the SBA for three of the businesses. A local bank detected the fraud in August 2020 and returned the funds remaining in the business accounts.
“The pandemic had a destructive effect on countless businesses, which prompted Congress to appropriate public funds to help them stay open,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “When such funds get dissipated through fraud, that has two results: a theft of public funds and a shortcoming in the funds available to help those businesses who were supposed to receive it. The diligence and dedication of the bank and our law enforcement partners realized this result, and will hold these defendants accountable for their disgraceful conduct.”
United States Attorney Shier; Lesley Allison, Special Agent in Charge, United States Postal Inspection Service, Pittsburgh Field Division; and Kelly K. Moening, Special Agent in Charge, Treasury Inspector General for Tax Administration, Great Lakes Field Division, jointly announced the jury’s verdict.
The investigation was conducted by the USPIS and Treasury Inspector General for Tax Administration. This case is being prosecuted on behalf of the United States by Assistant U.S. Attorney Kate Smith.
The Harrises are scheduled to appear for sentencing on July 1, 2024. They each face up to 20 years in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence. The Harris’ also face potential fines, a forfeiture money judgment, and a judgment of restitution, as ordered by the Court.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
— END —
Joint Operation Targets Las Cruces Based Drug Trafficking OrganizationRead the Press Release
ALBUQUERQUE, N.M. – Today, Alexander M.M. Uballez, United States Attorney for the District of New Mexico, Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, and Chief Jeremy Story, Las Cruces Police Department, announced the results of a coordinated enforcement operation in Las Cruces.
According to the search warrant affidavit, the FBI and the Las Cruces/Dona Ana County Metro Narcotics Agency were investigating the distribution of methamphetamine out of the Desert Lodge Motel on West Picacho Avenue in Las Cruces. In February and March of 2024, agents orchestrated controlled buys at the motel.
On March 12th, agents executed the search warrant and seized fentanyl, methamphetamine and a firearm from the motel.
The federal search was conducted in conjunction with five other New Mexico state search warrants executed by the Las Cruces Police Department. As a result of the operation, six individuals were arrested on state charges.
“We stand with our local partners to confront drug trafficking at every level,” said U.S. Attorney Uballez. “Through strong partnerships and close collaboration, we will bring justice and peace to our streets.”
"Collaborative law enforcement efforts will continue to identify and disrupt drug trafficking organizations bringing violence to our streets," said FBI Special Agent in Charge Raul Bujanda. “Investigations like this prove the essential value of strong law enforcement partnerships and working together to meet a common goal.”
“This operation is a visible reminder of the amazing work that is being done between local, state, and federal agencies every day to address the violence and crime in our communities,” said LCPD Chief Jeremy Story. “These efforts make a difference in our city, and we will continue to work together to make Las Cruces and New Mexico safer.”
The Las Cruces Resident Agency of the FBI Albuquerque Field Office investigated this case in collaboration with the Las Cruces Police Department. Assistant U.S. Attorney Maria Armijo is assisting with the investigation.
# # #
Inmate Sentenced to Prison for Possessing Weapon at FCI BeckleyRead the Press Release
BECKLEY, W.Va. – Dana Stewart, 30, an inmate at the Federal Correctional Institution (FCI) Beckley, was sentenced today to one year and eight months in prison, to be followed by three years of supervised release, for possession of a weapon by an inmate at a federal prison.
According to court documents and statements made in court, on September 30, 2022, Stewart struck another inmate with a handcrafted weapon, a lock attached to a sock. FCI Beckley staff witnessed the incident and recovered the weapon afterward. Stewart admitted to possessing a prohibited item that was designed and intended to be used as a weapon.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Prisons.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Timothy D. Boggess prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-55.
###
Inmate Sentenced to Prison for Possessing Weapon at FCI BeckleyRead the Press Release
BECKLEY, W.Va. – Dana Stewart, 30, an inmate at the Federal Correctional Institution (FCI) Beckley, was sentenced today to one year and eight months in prison, to be followed by three years of supervised release, for possession of a weapon by an inmate at a federal prison.
According to court documents and statements made in court, on September 30, 2022, Stewart struck another inmate with a handcrafted weapon, a lock attached to a sock. FCI Beckley staff witnessed the incident and recovered the weapon afterward. Stewart admitted to possessing a prohibited item that was designed and intended to be used as a weapon.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Prisons.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Timothy D. Boggess prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-55.
###
Hyattsville Man Pleads Guilty to Possession with Intent to Distribute Fentanyl and Cocaine and to Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
Greenbelt, Maryland – Garrison Thomas, age 41, of Hyattsville, Maryland, pleaded guilty today to possession with intent to distribute controlled substances and for being a felon in possession of a firearm and ammunition.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) Baltimore Field Division; and Chief Malik Aziz of the Prince George’s County Police Department (“PGPD”).
According to his guilty plea, on December 27, 2022, Thomas was the passenger in a vehicle that was stopped by PGPD officers for having expired Virginia registration tags. As officers approached the vehicle, they detected the odor of marijuana emanating from the vehicle and asked the driver and Thomas to exit the vehicle. Thomas was asked to put his hands on top of the car and as an officer attempted to pat him down a struggle ensued. During the struggle, Thomas shed his coat and ran from the scene, followed by PGPD officers. Another office picked up Thomas’ coat and recovered a 9mm pistol loaded with approximately 12 rounds of 9mm ammunition from the coat.
Thomas was apprehended and arrested. In the car, law enforcement located a magazine loaded with 10 rounds of 9mm ammunition in the vehicle and a digital scale with suspected cocaine residue. A search of Thomas recovered approximately $328 in cash, approximately 1.138 grams of para-fluorofentanyl; an open plastic bag corner containing approximately 4.840 grams of crack cocaine; two knotted plastic bag corners containing approximately 2.906 grams of powder cocaine, and approximately .545 grams of loose powder and crack cocaine.
Thomas admitted that the firearm, ammunition, magazine and cash constituted proceeds of his drug trafficking activity, or were used or intended to be used, to facilitate Thomas’s drug offense. Further, Thomas knew that he had been convicted of a felony and was prohibited from possessing a firearm and ammunition.
Thomas faces a maximum sentence of 20 years in federal prison for possession with intent to distribute controlled substances and a maximum sentence of 15 years in federal prison for being a felon in possession of a firearm and ammunition. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for July 19, 2024 at 2:00 p.m.
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.
United States Attorney Erek L. Barron commended the ATF and PGPD for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Dawn M. Ellison and Kelly O. Hayes, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
# # #
Human Smuggling Investigation Results in Seizure of over $1 Million and 90 Months in Prison for RingleaderRead the Press Release
TUCSON, Ariz. – Martin Garcia-Velazquez, 42, of San Antonio, Michoacan, Mexico, was sentenced last week by United States District Judge Scott H. Rash to 90 months in federal prison, followed by 36 months of supervised release, for his leadership role in a criminal conspiracy to transport and harbor at least 1,000 undocumented noncitizens over several years. Judge Rash also ordered Garcia-Velazquez to pay a $5,000 mandatory special assessment in compliance with the Justice for Victims of Trafficking Act of 2015 (JVTA), bipartisan legislation aimed at increasing services for survivors of human trafficking and strengthening law enforcement. Garcia-Velazquez pleaded guilty on September 20, 2023, to Conspiracy to Transport and Harbor Illegal Aliens for Profit.
Garcia-Velazquez, also known as Jorge Espino-Garcia and by the nickname “Tucan,” admitted that he organized the transportation of undocumented noncitizens from the Mexico border to houses in and around Phoenix.
As a result of their multi-year investigation, HSI agents seized and forfeited from organization members over $1 million; five firearms, including an SKS 7.62 x 39mm semi-automatic rifle, with accompanying magazines and ammunition; and five vehicles.
Garcia-Velazquez’s co-conspirators were previously sentenced. Jesus Torres-Aguilera pleaded guilty to Conspiracy to Transport and Harbor Illegal Aliens for Profit and Conspiracy to Launder Monetary Instruments. Judge Rash sentenced him on October 24, 2023, to a prison term of time served, equivalent to approximately 23 months, to be followed by 36 months of supervised release. Judge Rash also ordered Torres-Aguilera to pay the $5,000 mandatory special assessment in compliance with the JVTA. Elmer Rene Del Cid Santos pleaded guilty to Conspiracy to Transport and Harbor Illegal Aliens for Profit. Judge Rash also sentenced him on October 24, 2023, to 18 months in prison, followed by 36 months of supervised release. A third individual, Angelico Roa-Joachin, pleaded guilty to Conspiracy to Transport and Harbor Illegal Aliens for Profit and Reentry of a Removed Alien. United States District Judge Jennifer G. Zipps sentenced Roa-Joachin to 78 months in prison.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This prosecution also resulted from the coordinated efforts of Joint Task Force Alpha (JTFA). The U.S. Attorney’s Office for the District of Arizona is part of JTFA, which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security, to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime.
Homeland Security Investigations - Douglas conducted the investigation in this case with assistance from the Homeland Security Investigations offices in Charlotte, North Carolina, Huntsville, Alabama, and Atlanta, Georgia; Customs and Border Protection’s United States Border Patrol; the Drug Enforcement Administration in Sierra Vista; the Georgia Bureau of Investigation, the Clayton County Police Department, and the Fulton County Sheriff’s Office. Assistant U.S. Attorney, Michael R. Lizano, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-02715-SHR-LCK
RELEASE NUMBER: 2024-031_Garcia-Velazquez# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Gun-Toting Cooler-Crawler Sentenced to 28 Years and 1 Day after Robbing Several Walgreens in Metro DetroitRead the Press Release
DETROIT – A Detroit resident was sentenced to 28 years and 1 day in federal prison following his convictions for the armed robberies and attempted armed robbery of five Walgreens in Wayne, Oakland, and Macomb Counties in 2018 and 2019, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan.
Mario Keeream Jackson, age 35, of Detroit, was convicted by a jury in May 2023 of four counts of Hobbs Act Robbery, one count of Attempt-Hobbs Act Robbery, one count of Robbery of a DEA Licensed Premises, and five firearms counts. Jackson, who at the time of the robberies was on parole with the Michigan Department of Corrections for a prior firearm conviction, used a semi-automatic handgun with an extended magazine to rob Walgreens located in Oak Park, Dearborn Heights, Royal Oak, and Warren. During the robberies, Jackson stole over $18,000 in cash and over 5000 prescription opioid pills. Jackson attempted to rob a fifth Walgreens in Southfield, but the employees were able to escape the store before Jackson could access the store safe. During all the robberies, Jackson gained access to the back area of the stores by crawling through the coolers located in the stores. In total, Jackson held nine Walgreens employees at gunpoint during the robberies. Jackson was arrested on May 2, 2019, when law enforcement executed a search warrant at Jackson’s girlfriend’s residence in Detroit where Jackson was living. During the search, agents recovered the firearm Jackson used to commit the robberies.
“This defendant wreaked havoc in our community for more than five months, committing a string of armed robberies against innocent victims. Keeping our communities safe from this type of violence is at the core of DOJ’s mission,” said U.S. Attorney Ison.
"I would like to thank the members of our Oakland County Gang and Violent Crime Task Force for their hard work and our partners for their collaborative efforts in this case,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “This sentence serves as a warning to violent criminals and demonstrates the FBI’s and its law enforcement partners’ dedication to ensuring safer communities.”
This prosecution is a part of the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Justice Department’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through the PSN program a broad spectrum of law enforcement and community 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 to reduce violence crime and gun violence, and to make our local neighborhoods safer for everyone.
The case was investigated by special agents and task force officers of the Federal Bureau of Investigation’s Oakland County Gang and Violent Crime Task Force. Assisting in the investigation were special agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives and officers from the Oak Park, Dearborn Heights, Southfield, Royal Oak, and Warren Police Departments.
Grand Jury Indicts District Teen for Armed Carjacking and Other OffensesRead the Press Release
WASHINGTON – Alvin Halmon-Daniels, now 18, of Washington, D.C., was indicted by a Superior Court grand jury for armed carjacking and other charges related to a June 16, 2023 offense in Northeast Washington, D.C., announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department (MPD). On March 13, the grand jury returned an indictment charging the defendant, who was 17-years-old at the time of the carjacking, as an adult under Title 16.
In addition to armed carjacking, Halmon-Daniels is charged with robbery while armed, and two counts of possession of a firearm during a crime of violence. According to documents filed in court, at approximately 11:20 am on June 16, an unidentified co-conspirator drove his car in front of the complainant’s sedan in the 200 block of 13th Street NE. Halmon-Daniels got out of the co-conspirator’s car, armed with a handgun, and ordered the complainant to leave her property and get out of her car. Halmon-Daniels then drove off with the complainant’s vehicle and property, with his co-conspirator following in the suspect vehicle. MPD officers responded immediately, and tracked the carjacked vehicle to Southeast D.C., where it had crashed, and apprehended Halmon-Daniels nearby. The victim subsequently identified Halmon-Daniels as the gunman. At the time of his arrest on June 16th, Halmon-Daniels still had some of the victim’s property in his pockets.
The Court released the defendant after the preliminary hearing.
This case is being investigated by the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorney John Parron of the U.S. Attorney’s Office for the District of Columbia.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Four U.S. Postal Service Employees Indicted and Arrested for Delay of Election MailRead the Press Release
SAN JUAN, Puerto Rico – On March 7, 2024, a federal grand jury in the District of Puerto Rico returned four indictments charging four U.S. Postal Service (USPS) employees assigned to the 65th Infantry Postal Office in San Juan, Puerto Rico with delay of mail in violation of Title 18, United States Code, Section 1703(a), announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
The USPS is responsible for transporting and delivering absentee and early voter ballots in Puerto Rico, which is recognized by the USPS as election mail. In September 2022, the Puerto Rico State Elections Commission (“Commission”) conducted a Special Election for the San Juan, Puerto Rico District 1 Senate vacancy. As part of the Commission’s services provided for the Special Election, in August 2022, the Administrative Board of Absent Voting and Early Voting (“Junta Administrativa de Voto Ausente y Voto Adelantado” (“JAVAA”)) mailed ballots to certain eligible voters in Puerto Rico, via USPS certified mail service.
Four individual mail carriers, employed by the USPS, delayed and did not deliver a total of forty pieces of election mail from the September 2022 Special Election to domiciled active voters in San Juan. More specifically:
- On August 5, 2022, Christian Benny Díaz-Nieves, a postal Carrier Technician, unlawfully delayed and did not deliver twenty-two pieces of election mail;
- On August 6, 2022, Jonathan David Javier-Pinango, a postal City Carrier Assistant 1, unlawfully delayed and did not deliver twelve pieces of election mail;
- On August 5, 2022, Michael Negrón-Cabrera, a postal City Carrier Assistant 1, unlawfully delayed and did not deliver one piece of election mail; and
- From August 5, 2022 through August 15, 2022, María De Lourdes Martínez-Garriga, a postal City Carrier, unlawfully delayed and did not deliver five pieces of election mail.
Each USPS employee was charged separately with unlawful delay of mail and has not been charged with participating in a conspiracy or a scheme to impact the Special Election. The U.S. Postal Service Office of Inspector General (USPS-OIG) is investigating the case with the Federal Bureau of Investigation (FBI), consistent with the mission to ensure efficiency, accountability, and integrity in the U.S. Postal Service.
“Our democracy depends on the right of eligible voters to cast a ballot and to have that ballot counted. If voters do not receive their ballots, they cannot execute one of our fundamental rights as United States citizens, the right to vote,” said United States Attorney Muldrow. “The U.S. Attorney’s Office along with our law enforcement partners will continue to protect this fundamental pillar of our society.”
“Voting allows individuals to have a say in the decisions that affect their lives and communities, and it is a powerful tool for promoting social change. Without the right to vote, marginalized groups may be further excluded from the political process, perpetuating inequality and injustice, which is why equal access is crucial and why we have this option to receive the ballot by mail,” said Joseph González, Special Agent in Charge of the FBI’s San Juan Field Office. “Public officials across all government agencies must understand that they are held to a higher standard. The people depend on us, and those unwilling to execute their duties only hurt the communities we are meant to serve. I want to thank the Puerto Rico State Elections Commission for quickly reporting this and our valued colleagues at the US Postal Service OIG, who never hesitate to do the right thing.”
The defendants are scheduled for their initial court appearances today before U.S. Magistrate Judge Giselle López-Soler of the U.S. District Court for the District of Puerto Rico. If convicted, they face a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Michele Colón and Special Assistant U.S. Attorney Tania Salas-De Jesús from the USPS-OIG are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Former Social Security Administration Employee Indicted and Arrested for $1.8 Million Theft of Social Security FundsRead the Press Release
SAN JUAN, Puerto Rico – On March 6, 2024, a federal grand jury in the District of Puerto Rico returned a 17-count indictment charging Myrna Faria, a.k.a. Myrna Oliveras-Santiago, with theft of government funds in violation of 18 U.S.C. § 641, mail fraud in violation of 18 U.S.C. § 1341, misuse of Social Security numbers in violation of 41 U.S.C. § 408(a)(8), and aggravated identity theft in violation of 18 U.S.C. § 1028A, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
According to court documents, Faria was employed by the Social Security Administration (SSA) from approximately 1991 through 2019 as a “Social Insurance Specialist” and “Claims Specialist” working in the Workload Support Unit in San Juan, Puerto Rico. From March 2012 through March 2024, Faria embezzled and stole SSA funds, namely Retirement Insurance Benefits, Survivors Insurance Benefits and Auxiliary Benefit payments, to which she knew she was not entitled. In total, Faria stole approximately $1,812,455.10.
Faria utilized her position within SSA to submit false claims on behalf of others, using the identity of individuals she believed to be deceased. She then approved those false claims and submitted her own bank and address information to fraudulently receive the corresponding SSA beneficiary proceeds. Faria proceeded to withdraw, transfer, and spend the money from the accounts that fraudulently obtained the SSA funds. Over the span of twelve years, Faria submitted and approved 13 fraudulent claims. A total of 10 fraudulent claims were still active and receiving funds as of the date of the Indictment.
“It is especially egregious when individuals that hold positions of public trust engage in criminal activity,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “The defendant charged in this case allegedly abused the trust placed in her by the Social Security Administration and the public. The U.S. Attorney’s Office will continue to work with all law enforcement agencies to safeguard the integrity of federal government institutions and to bring corrupt officials to justice.”
“Ms. Faria exploited her position with the Social Security Administration for her own personal gain stealing over $1.8 million. Evidence obtained in this investigation revealed that Ms. Faria fabricated retirement insurance benefits, divorced or widowed survivors, and auxiliary claims for 13 individuals who were deceased, or who she expected to be deceased. Ms. Faria then caused the fraudulent benefit payments to be made by SSA and directed all SSA payments to herself,” said Sharon MacDermott, Special Agent in Charge for the Social Security Administration, Office of the Inspector General. “We will continue to work with SSA to identify fraudulent benefits payments. I want to thank the FBI and the U.S. Postal Inspection Service for its efforts in this investigation and the U.S. Attorney’s Office for prosecuting this case.”
“The subject in this case used her position as an employee of the Social Security Administration to create false benefits claims using social security numbers for deceased individuals, as well as other tactics, and in doing so, she stole almost 2 million dollars. Even after she retired, she continued to enrich herself illegally. This is embarrassing and despicable conduct by a public official, someone called to serve the people, not take from them,” said Joseph González, Special Agent in Charge of the FBI San Juan Field Office. “No one is above the law, and even if you think you can get away with it, we will find out sooner or later, and you will face consequences. I want to thank our colleagues from the Social Security Administration’s OIG, who did a fantastic job analyzing an enormous amount of data to detect this scheme, and the US Postal Inspector’s Service for assisting with this investigation.”
The Social Security Administration Office of Inspector General, the Federal Bureau of Investigation, and the US Postal Inspection Service are investigating the case with the assistance from the Puerto Rico Police Bureau.
If convicted, the defendant faces the following maximum penalties: 10 years of imprisonment for Theft of Government Property; 20 years of imprisonment for Mail Fraud; 5 years of imprisonment for misuse of Social Security numbers; and a mandatory consecutive sentence of at least two years for the aggravated identity theft charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Special Assistant U.S. Attorney Vanessa D. Bonano-Rodríguez is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###