Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 30 January 2024
Repeat Offender Sentenced to 10 Years for Possessing More than 12,000 Images and 1,000 Videos of Children being Sexually AbusedRead the Press Release
PORTLAND, Maine: A Lewiston man was sentenced today in U.S. District Court in Portland for possessing child sexual abuse material.
Chief U.S. District Judge Jon D. Levy sentenced Mark A. Burns, 61, to 10 years in prison followed by eight years of supervised release. He was also ordered to pay $58,000 in restitution. Burns pleaded guilty on August 28, 2023.
According to court records, in April 2023, the Maine State Police Computer Crimes Unit learned that a computer at an IP address belonging to Burns had shared a sexually explicit image of a child under the age of six. Homeland Security Investigations (HSI) agents executed a search warrant at Burns’ residence, where he admitted that he had downloaded child sexual abuse material. A search of his tablet revealed that it contained 1,103 video files and more than 12,000 images of children ranging in age from infants to young teens. Burns has a 2016 state conviction for possessing sexually explicit material involving a child under the age of 12, which subjected him to a 10-year mandatory minimum sentence.
At the sentencing hearing, Chief Judge Jon D. Levy noted that Burns’ collection of child pornography was “immense.” When imposing sentence, Judge Levy called the volume of Burns’ collection a “significant aggravating factor,” as well as the fact that Burns had previously been convicted of the same conduct.
HSI and the Maine State Police Computer Crimes Unit investigated the case.
To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material – "child pornography" – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer re-victimization every time the images are viewed. File a report with the National Center for Missing & Exploited Children at https://report.cybertip.org/ or 1-800-843-5678. If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
###
Registered Sex Offender Sentenced to 10 Years in Prison for St. Louis Gun CrimeRead the Press Release
ST. LOUIS – A registered sex offender caught by St. Louis police with a gun during a domestic dispute was sentenced by U.S. District Judge Ronnie L. White Tuesday to 10 years in prison.
Mario Long, 53, was arrested at a home in the 4600 block of Louisiana Avenue on Aug. 6, 2020 by St. Louis Metropolitan Police Department officers. Long’s then-girlfriend had locked him out of the house during a dispute. He then shattered the glass on the home’s front door, assaulted his girlfriend, got a gun from a bedroom and pointed it his girlfriend and her daughter, according to evidence and testimony at Long’s trial in August. The jury found Long guilty of being a felon in possession of a firearm.
Long is a convicted felon and is barred from possessing a gun. His prior convictions include unlawful use of a weapon, unlawful possession of a firearm, assault, child molestation, statutory rape and statutory sodomy.
The case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Catherine Hoag and John Ware prosecuted the case.
Queens Woman Sentenced to 25 Months in Prison for Leadership Role in Visa Fraud, Identity Theft and Human Smuggling SchemeRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, Stella Boyadjian was sentenced by United States Chief District Judge Margo K. Brodie to 25 months in prison for her role in a multi-year visa fraud, identity theft, and immigrant smuggling conspiracy that brought Armenian citizens into the United States for profit. Boyadjian pleaded guilty in March 2019 to conspiracy to defraud the United States, commit visa fraud, and unlawfully bring aliens to the United States, visa fraud and aggravated identity theft.
Breon Peace, United States Attorney for the Eastern District of New York, Nicole M. Argentieri, Acting Assistant Attorney General of the Justice Department’s Criminal Division, and Carlos F. Matus, Director of the U.S. Department of State’s Diplomatic Security Service (DSS), announced the sentence.
Boyadjian led a transnational network of co-conspirators who engaged in a widespread visa fraud scheme to bring Armenian citizens into the United States by fraudulently claiming to the U.S. Citizenship and Immigration Services (USCIS) that the Armenians were members of performance groups and thus qualified for P-3 “Culturally Unique Artist” visas. The P-3 nonimmigrant visa classification allows foreign nationals to temporarily travel to the United States to perform, teach, or coach as artists or entertainers, under a program that is culturally unique. A U.S. employer or sponsoring organization is required to submit a USCIS Form I-129 Petition for a Non-Immigrant Worker, along with supporting documentation, attesting that the performances in the United States are culturally unique.
Boyadjian ran a non-profit organization called Big Apple Music Awards (BAMA) Foundation based in Rego Park, Queens. She used the BAMA Foundation as well as formal and informal music industry contacts in the United States and Armenia to perpetuate the scheme. Boyadjian and others solicited Armenian citizens who wanted to come to the United States and charged them between $3,000 and $15,000 to be included on the Form I-129 Petitions. Boyadjian and other associates in Armenia acquired fraudulent performer certificates and organized staged photo sessions where the aliens wore traditional Armenian folk outfits to appear to be traditional Armenian performers. After being trained by Boyadjian and her conspirators on how to answer questions from USCIS visa adjudicators, the individual aliens presented these certificates and photos to U.S. consular officers during their visa interviews. Once the Armenians entered the United States, some would pay Boyadjian and her associates additional money to be included in another fraudulent petition asking for P-3 visa extensions. Some aliens overstayed their visas and remained unlawfully in the United States.
The DSS’ Criminal Fraud Investigations and Overseas Criminal Investigations Divisions investigated the case, with assistance from the USCIS Fraud Detection and National Security, Center Fraud Detection Operations in Vermont.
Assistant United States Attorney John O. Enright of the Eastern District of New York and Rami S. Badawy, Chief of the Criminal Division’s Human Rights and Special Prosecutions Section are in charge of the prosecution.
The Defendant:
STELLA BOYADJIAN
Age: 53
Rego Park, Queens
E.D.N.Y. Docket No. 18-CR-57 (MKB)Project Manager Pleads Guilty to Kickback Scheme to Defraud a U.S. Army FacilityRead the Press Release
A former project manager for a government contractor pleaded guilty today for his role in a conspiracy to inflate project costs by over $200,000 and receive kickbacks related to contracts for commercial flooring services at a U.S. Army facility in Fairbanks, Alaska.
Kevin Mahler pleaded guilty to a six-count felony information filed on Jan. 29, in the U.S. District Court for the District of Alaska. According to the plea, from March 2016 to March 2021, Mahler conspired to receive kickbacks from Benjamin McCulloch, the owner of a commercial flooring services company, related to construction contracts administered by the U.S. Army at Fort Wainwright. Mahler pleaded guilty to conspiring with McCulloch to inflate the costs of flooring construction subcontracts and receiving half of the proceeds as kickback payments from McCulloch. During the five-year scheme, Mahler received over $100,000 in kickbacks. As a part of his plea, he has agreed to pay restitution. According to the information, Mahler also failed to report his income from the scheme to the IRS, in violation of federal tax laws. McCulloch previously pleaded guilty for his role in the conspiracy.
“Taking advantage of U.S. taxpayers by defrauding U.S. Army facilities is a crime and will not be tolerated,” said Deputy Assistant Attorney General Manish Kumar of the Justice Department’s Antitrust Division. “The Justice Department’s Procurement Collusion Strike Force will hold accountable individuals who conspire to illegally profit — through kickbacks or otherwise — at the expense of the public.”
“We are very pleased with today's announcement,” said Special Agent in Charge Keith K. Kelly of the Department of the Army Criminal Investigation Division’s Fraud Field Office. “This is a true testament to our continued commitment to work closely and seamlessly with our outstanding fellow law enforcement agencies to help bring those to justice who attempt to defraud the U.S. Government and U.S. Army.”
“The FBI and our partners are committed to protecting the integrity of the government’s competitive contracting practices,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “This outcome demonstrates that those who engage in fraudulent kickback schemes, harming American taxpayers in the process, will be held accountable for their crimes.”
“This plea marks a significant milestone in the ongoing efforts to combat corruption and uphold integrity within government contracting processes,” said Special Agent in Charge Bryan D. Denny of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. “Mahler’s actions, which involved a calculated scheme to defraud the U.S. Army and exploit American taxpayers, were brought to light thanks to the diligent work and collaborative efforts of multiple law enforcement agencies.”
“‘Be all you can be’ is a resounding call by the U.S. Army for excellence, dedication and bravery. It is not a call for fraudsters to fill their coffers illegally at the Army’s expense,” said Special Agent in Charge Adam Jobes of the IRS Criminal Investigation (IRS:CI) Seattle Field Office. “Mahler’s disregard and theft from those who serve our country is being brought to light today, and this guilty plea emphasizes IRS:CI’s commitment to fighting fraud no matter where it is found.”
Mahler faces a maximum penalty of 10 years in prison and a fine of $250,000. The fine for the anti-kickback conspiracy charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The Antitrust Division’s San Francisco Office, U.S. Attorney’s Office for the District of Alaska, FBI Anchorage Field Office, DCIS’s Western Field Office in Seattle and IRS:CI Seattle Office are investigating the case.
Anyone with information in connection with this investigation is urged to contact the Antitrust Division’s San Francisco Office at 415-934-5300, Antitrust Division’s Citizen Complaint Center at 888-647-3258 or www.justice.gov/atr/contact/newcase.html or the FBI Anchorage Field Office at 907-276-4441.
In November 2019, the Justice Department created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to federal government contracts, go to www.justice.gov/procurement-collusion-strike-force.
Portland Man Sentenced to Federal Prison for Role in SIM Swapping Identity Theft and Fraud SchemeRead the Press Release
PORTLAND, Ore.—A local man was sentenced to federal prison today for participating in a conspiracy to steal millions of dollars of cryptocurrency using a SIM swap scam technique that takes over victims’ cellular phone accounts to access sensitive personal information.
Daniel James Junk, 22, of Portland, was sentenced to 72 months in federal prison and three years’ supervised release. He was also ordered to pay more than $3 million in restitution to his victims.
According to court documents, from at least December 2019 through March 2022, Junk engaged in an online fraud scheme known as SIM swapping to access and steal from his victims’ cryptocurrency exchange accounts. SIM swapping is a cellular phone account takeover scam technique where a victim’s incoming calls and text messages are routed to a different phone. Once a SIM is swapped, an individual may be able to gain access to a victim’s personal accounts including email accounts, cryptocurrency exchange accounts, and other accounts that use two-factor identification.
Junk actively participated in an online SIM-swapping community where various individuals would partner with one another to play different roles needed to successfully execute a SIM swap scam. Throughout his involvement in such schemes, Junk performed some aspects of all the required roles including finding victims to target through breached databases or other exploits, porting victim phone numbers to devices controlled by members of the fraud conspiracy, and physically possessing the phone used for the “swap.” Junk and members of his online community also coordinated with one another to plan and carry out various in-person crimes including attempting to steal a 90-year-old victim’s cell phone and committing fraud at cellular telephone stores.
On March 3, 2022, the FBI executed a federal search warrant on Junk’s apartment. Agents seized nearly all of Junk’s electronic equipment including a computer with an active browser showing that Junk was attempting to illegally access accounts in other people’s names when the agents arrived at his residence. The FBI seized more than 71 bitcoin worth approximately $3 million the day of the search. Two months later, Junk surrendered an additional 33 bitcoin worth approximately $1 million.
On March 15, 2023, Junk was charged by criminal information with conspiracy to commit wire fraud and, on April 20, 2023, he waived indictment and pleaded guilty to the single charge.
In early January 2024, while awaiting sentencing, Junk was found by law enforcement to possess additional evidence of fraud including multiple victim target lists and approximately 25,000 compromised email addresses. On January 10, 2024, Junk’s release was revoked, and he was ordered into custody pending sentencing.
This case was investigated by the FBI with assistance from the Portland Police Bureau. It was prosecuted by Quinn P. Harrington, Assistant U.S. Attorney for the District of Oregon.
Pittsburgh Resident Pleads Guilty to Computer Fraud ChargeRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of computer fraud, United States Attorney Eric G. Olshan announced today.
Kevin N. Ukaegbu, 31, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the Court was advised that, on December 5, 2022, Ukaegbu, formerly a graduate nurse at Allegheny General Hospital, criminally used the hospital credentials of a Highmark resident physician and attempted to modify prescription medications for two patients, putting one of the patients at risk of serious bodily harm. In neither case was the medicine administered to the patients.
Judge Bissoon scheduled sentencing for May 21, 2024. The law provides for a maximum total sentence of up to 30 years in prison, a fine of $500,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
Homeland Security Investigations of the United States Department of Homeland Security, with the assistance of Highmark Health Police, conducted the investigation that led to the prosecution of Ukaegbu.
Philadelphia Woman Charged with Interfering with Flight Crew, Simple Assault, and Indecent Exposure on Frontier Airlines FlightRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Dulce Huertas, 60, of Philadelphia, Pennsylvania, was arrested and charged by criminal complaint with interference with flight crew members and attendants, simple assault, and indecent exposure on a Frontier Airlines flight from Orlando, Florida, to Philadelphia.
If convicted, the defendant faces a maximum possible sentence of 21 years and three months in prison, three years of supervised release, and a $355,000 fine.
The case is being investigated by the Federal Bureau of Investigation and the Federal Air Marshal Service, an agency of the Department of Homeland Security’s Transportation Security Administration. The Philadelphia Police Department has also provided assistance.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Sentenced to 413 Months for Shooting Pharmacy EmployeeRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Gregory Stevens, 25, of Philadelphia, Pennsylvania, was sentenced to 413 months’ imprisonment by United States District Judge Mitchell S. Goldberg for shooting a pharmacy employee during a robbery.
On February 22, 2021, at 3:55 p.m., the defendant entered Universal Pharmacy at 3908 Kensington Avenue in Philadelphia while on parole for another robbery. The defendant brandished a gun and demanded narcotics. After an employee tried to defend himself by putting the defendant into a bear hug, the defendant broke free, intentionally shot the employee, and took $8,200 in narcotics from the pharmacy. The employee survived his injuries but spent three days in the Temple University Hospital ICU and sustained severe damage to his liver.
On March 9, 2021, before being arrested for the robbery and shooting, the defendant rode on South Broad Street in a group of dirt bikes in the middle of the day. The defendant suddenly slowed, and he was tapped by the car behind him near the intersection of Broad and Washington. When the car’s driver exited the vehicle to check on the defendant, the defendant assaulted the driver, grabbed a firearm, and nearly shot the driver. The defendant then threw cinder blocks at the driver’s vehicle while the driver hid inside, unable to drive away because of the vehicles in front of him. A viral video of the attack attracted national and international media attention.
“Gregory Stevens has proven himself to be a vicious and violent repeat offender with no regard for others,” said U.S. Attorney Romero. “He was so determined to steal drugs, he shot a pharmacy employee, inflicting life-changing injuries. Just two weeks later, his shocking assault on a driver horrified people around the world. The lengthy sentence imposed today ensures Mr. Stevens will be off the street for decades, making the city safer for all.”
“Predatory violent criminals like Gregory Stevens terrorize our communities,” said Wayne A. Jacobs, FBI Philadelphia's Special Agent in Charge. “Today’s sentencing resulted from the coordinated efforts of the FBI and our community partners. The FBI and its law enforcement partners will never stop working to make our communities safer and free from violent crime.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Michael R. Miller.
Oraine Christie Convicted of Drug Trafficking and Firearms ChargesRead the Press Release
KNOXVILLE, Tenn. – On January 29, following a three-day trial in United States District Court, Knoxville, Tennessee, a jury convicted Oraine Christie, 44, of Massachusetts, of drug trafficking and firearms charges relating to a traffic stop conducted by the Knoxville Police Department’s drug interdiction team, on December 1, 2021.
Christie will be sentenced by the Honorable Judge Katherine C. Crytzer at a later date. Christie faces a mandatory minimum sentence of 15 years and a maximum sentence of life, fines, and a term of supervised release of at least five years.
The evidence presented at trial showed that Oraine Christie, the driver of a Chevy Trailblazer, and co-conspirator Shemar Newland, the passenger, were transporting 3.5 kilograms of crystal methamphetamine and six firearms, including a stolen Smith & Wesson revolver and a PA-15 assault rifle when they were stopped after committing a traffic violation on Highway 640. An investigation revealed that the pair were heading back to Atlanta with the guns and drugs after failing to sell the drugs in West Virginia, as initially planned. Testimony at trial revealed that Newland obtained the drugs from an individual in Atlanta and Christie conspired with Newland to sell the drugs to Christie’s associate in West Virginia.
Newland pleaded guilty on July 14, 2022, and his sentencing is set for February 8, 2023, before Judge Crytzer, in the United States District Court in Knoxville, Tennessee.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
Law enforcement agencies participating in the joint investigation which led to the indictment and subsequent convictions included the Knoxville Police Department, and the Drug Enforcement Administration.
Assistant U.S. Attorneys Anne-Marie Svolto and Brian Samuelson represented the United States at trial.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community face.
###
Oil Companies to Pay $7.4 Million in Civil Penalties to Resolve U.S. Claims for Pipeline Spill on Allotted Tribal LandRead the Press Release
The Justice Department and Environmental Protection Agency (EPA) today announced that Holly Energy Partners-Operating L.P. and Osage Pipe Line Company LLC have agreed to pay $7.4 million in Clean Water Act civil penalties and implement corrective measures to settle claims stemming from a pipeline rupture and crude oil spill from the Osage pipeline onto land owned by members of the Sac and Fox Nation in Oklahoma. In addition to payment of the civil penalties, the settlement requires that the two companies complete the cleanup and remediation of the impacted area and take additional steps to prepare for and prevent future spills.
“Oil companies have a responsibility to prevent harmful oil spills, and today’s settlement demonstrates that those who violate this duty will be held accountable under the law,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We appreciate the Sac and Fox Nation’s steady involvement in monitoring the cleanup efforts for environmental, natural resource and cultural resource impacts and respect the Nation’s efforts to be caring stewards of lands owned by its members.”
“The pipeline spill in this case dumped nearly 300,000 gallons of crude oil, contaminating Skull Creek and severely hampering water quality and the aquatic environment in the creek,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “EPA and its federal partners are requiring the oil companies who caused the spill to restore Skull Creek, operate safely, and take steps to prevent future spills.”
“Safeguarding Oklahoma’s natural resources is of the utmost importance for future generations,” said U.S. Attorney Robert J. Troester for the Western District of Oklahoma. “My office remains committed to furthering environmental justice by ensuring those responsible for oil spills remediate and rectify the impacts to our communities and tribal partners.”
“The Sac and Fox Nation is a strong partner in conserving and protecting the environment and natural resources. EPA worked closely with the Nation to keep its environmental staff and leadership updated during the response and cleanup of the Osage Pipeline spill,” said Administrator Dr. Earthea Nance of EPA Region 6. “Today’s settlement is an important step in holding the company accountable for the impacts to Skull Creek and other potential effects.”
The United States filed its complaint today in the U.S. District Court for the Western District of Oklahoma along with the notice of lodging of a proposed consent decree to resolve the case. In the complaint, the United States alleges that the two related Dallas-based companies are liable under the Clean Water Act for the crude oil spill that occurred on July 8, 2022. Osage Pipe Line Company owns the 135-mile-long, 20-inch-diameter pipeline that transports crude oil from a tank farm in Cushing, Oklahoma, to the HollyFrontier refinery in El Dorado, Kansas. Holly Energy Partners-Operating is the operator of the pipeline.
The complaint alleges the spill occurred when a segment of the pipeline ruptured adjacent to Skull Creek about five miles north of Cushing. From the point of the discharge, Skull Creek flows about three more miles before entering the Cimarron River. The pipeline was operating at the time of the rupture and discharged about 300,000 gallons (7,110 barrels) of crude oil into the creek. The land where the rupture occurred, and the adjacent downstream parcel that the creek runs through, are both allotment lands owned by members of the Sac and Fox Nation.
The companies, the EPA, the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA), the Department of the Interior’s Bureau of Indian Affairs and the Sac and Fox Nation responded to the rupture and spill. The companies are continuing cleanup work in Skull Creek under the oversight of the EPA, and the pipeline was returned to operation at reduced pressure under the oversight of PHMSA through its corrective action authority. The Sac and Fox Nation deployed tribal monitors to observe the companies’ work at the spill site and monitor for impacts to natural and cultural resources.
In addition to payment of the civil penalties in the proposed consent decree, the companies will be required to complete the cleanup and remediation of the impacted area, improve their pipeline integrity management program, provide additional training for all their control room operators and expand their spill notification efforts for Tribal governments with land interests within the footprint of the pipeline. The penalties and remedial measures required by the proposed consent decree are in addition to the costs the companies have incurred to clean up the oil spill.
Section 311(b) of the Clean Water Act makes it unlawful to discharge oil or hazardous substances into or upon the navigable waters of the United States or adjoining shorelines, the contiguous zone, or in connection with activities under the Outer Continental Shelf Lands Act in quantities that may be harmful to the environment or public health. The penalties for this spill will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Funds Center. The Oil Spill Liability Trust Fund is used to pay for federal response activities and to compensate victims for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances.
The Justice Department’s Environmental Enforcement Section lodged the consent decree with the U.S. District Court for the Western District of Oklahoma. The proposed consent decree is subject to a 30-day public comment period and court review and approval. A copy of the proposed consent decree is available on the Justice Department website at www.justice.gov/enrd/consent-decrees.
Oil Companies to Pay $7.4 Million in Civil Penalties to Resolve U.S. Claims for Pipeline Spill on Allotted Tribal LandRead the Press Release
Clean Water Act Settlement Addresses July 2022 Crude Oil Pipeline Rupture into Oklahoma’s Skull Creek
OKLAHOMA CITY – Today, the Justice Department and Environmental Protection Agency (EPA) announced that Holly Energy Partners-Operating L.P. and Osage Pipe Line Company LLC have agreed to pay $7.4 million in Clean Water Act civil penalties and implement corrective measures to settle claims stemming from a pipeline rupture and crude oil spill from the Osage pipeline onto land owned by members of the Sac and Fox Nation in Oklahoma. In addition to payment of the civil penalties, the settlement requires that the two companies complete the cleanup and remediation of the impacted area and take additional steps to prepare for and prevent future spills.
“Oil companies have a responsibility to prevent harmful oil spills, and today’s settlement demonstrates that those who violate this duty will be held accountable under the law,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We appreciate the Sac and Fox Nation’s steady involvement in monitoring the cleanup efforts for environmental, natural resource, and cultural resource impacts and respect the Nation’s efforts to be caring stewards of lands owned by its members.”
“The pipeline spill in this case dumped nearly 300,000 gallons of crude oil, contaminating Skull Creek and severely hampering water quality and the aquatic environment in the creek,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “EPA and its federal partners are requiring the oil companies who caused the spill to restore Skull Creek, operate safely, and take steps to prevent future spills.”
“Safeguarding Oklahoma’s natural resources is of the utmost importance for future generations,” said U.S. Attorney Robert J. Troester for the Western District of Oklahoma. “My office remains committed to furthering environmental justice by ensuring those responsible for oil spills remediate and rectify the impacts to our communities and tribal partners.”
“The Sac and Fox Nation is a strong partner in conserving and protecting the environment and natural resources. EPA worked closely with the Nation to keep its environmental staff and leadership updated during the response and cleanup of the Osage Pipeline spill,” said EPA Region 6 Administrator Dr. Earthea Nance. “Today’s settlement is an important step in holding the company accountable for the impacts to Skull Creek and other potential effects.”
The United States filed its Complaint today in the U.S. District Court for the Western District of Oklahoma along with the notice of lodging of a proposed Consent Decree to resolve the case. In the Complaint, the United States alleges that the two related Dallas-based companies are liable under the Clean Water Act for the crude oil spill that occurred on July 8, 2022. Osage Pipe Line Company owns the 135-mile-long, 20-inch-diameter pipeline that transports crude oil from a tank farm in Cushing, Oklahoma, to the HollyFrontier refinery in El Dorado, Kansas. Holly Energy Partners-Operating is the operator of the pipeline.
The Complaint alleges the spill occurred when a segment of the pipeline ruptured adjacent to Skull Creek about five miles north of Cushing. From the point of the discharge, Skull Creek flows about three more miles before entering the Cimarron River. The pipeline was operating at the time of the rupture and discharged about 300,000 gallons (7,110 barrels) of crude oil into the creek. The land where the rupture occurred, and the adjacent downstream parcel that the creek runs through, are both allotment lands owned by members of the Sac and Fox Nation.
The companies, the EPA, the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA), the Department of the Interior’s Bureau of Indian Affairs, and the Sac and Fox Nation responded to the rupture and spill. The companies are continuing cleanup work in Skull Creek under the oversight of the EPA, and the pipeline was returned to operation at reduced pressure under the oversight of PHMSA through its corrective action authority. The Sac and Fox Nation deployed tribal monitors to observe the companies’ work at the spill site and monitor for impacts to natural and cultural resources.
In addition to payment of the civil penalties in the proposed Consent Decree, the companies will be required to complete the cleanup and remediation of the impacted area, improve their pipeline integrity management program, provide additional training for all their control room operators, and expand their spill notification efforts for tribal governments with land interests within the footprint of the pipeline. The penalties and remedial measures required by the proposed Consent Decree are in addition to the costs the companies have incurred to clean up the oil spill.
Section 311(b) of the Clean Water Act makes it unlawful to discharge oil or hazardous substances into or upon the navigable waters of the United States or adjoining shorelines, the contiguous zone, or in connection with activities under the Outer Continental Shelf Lands Act in quantities that may be harmful to the environment or public health. The penalties for this spill will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Funds Center. The Oil Spill Liability Trust Fund is used to pay for federal response activities and to compensate victims for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances.
The Justice Department’s Environmental Enforcement Section lodged the consent decree with the U.S. District Court for the Western District of Oklahoma. The proposed Consent Decree is subject to a 30-day public comment period and court review and approval. A copy of the proposed Consent Decree is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html.
Ohio Man Sentenced to 18 Years in Prison for Firebombing a Church that Planned to Host Drag Show EventsRead the Press Release
An Ohio man was sentenced yesterday to 216 months in prison followed by three years of supervised release for attempting to burn down a church because of its support for the LGBTQ+ community.
Aimenn D. Penny, 20, of Alliance, Ohio, was arrested and charged last year with one count of violating the Church Arson Prevention Act, one count of using fire to commit a federal felony, one count of malicious use of explosive materials, and one count of possessing a destructive device. On Oct. 23, 2023, Penny pleaded guilty to the church arson hate crime and using fire and explosives to commit a felony.
According to court documents, on March 25, 2023, Penny made Molotov cocktails and drove to the Community Church of Chesterland (CCC), in Chesterland, Ohio. Angered by the church’s plan to host two drag events the following weekend, Penny threw two Molotov cocktails at the church, hoping to burn it to the ground. Through Penny’s guilty plea, he admitted to using force through fire and explosives, intending to obstruct CCC congregants in their enjoyment and expression of their religious beliefs.
“This sentence holds Mr. Penny accountable for carrying out violence against an Ohio church because he disagreed with the way congregants chose to express their beliefs,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Such acts of extremist violence have no place in our communities and the Justice Department is committed to bringing to justice those who would use or threaten violence to prevent their fellow citizens from freely exercising their fundamental rights.”
“We hope this significant sentence sends a clear and resounding message that this type of hate-fueled attack against a church will not be tolerated in our country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant tried to burn down a church simply because its members created space for and provided support to the LGBTQ+ community. The Justice Department will vigorously investigate and prosecute such senseless, bias-motivated violence against people exercising their constitutionally protected right to practice their religion and express their beliefs.”
“Aimenn Penny will spend the next 18 years in prison because he committed crimes fueled by hate, attempting to burn down a church because its members supported the LGBTQI+ community,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Hate crimes like Penny’s hurt not only the individual target, but the entire community, causing people to fear attack based on who they love and undermining the sense of safety within places of worship. Violent, bias-motivated extremism has no place in our country, and our office will aggressively prosecute those who commit such crimes.”
“Aimenn Penny is being held accountable for trying to burn down a house of worship because he disagreed with the church hosting certain events,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “Individuals who commit acts of violence, destroy property, and interfere with the free exercise of religion will face justice for those crimes. As in this case, the FBI, together with our law enforcement partners, will use our lawful authorities to protect our communities from such violence, and ensure those responsible pay the price.”
The FBI Cleveland Field Office investigated the case.
Assistant U.S. Attorneys Brian Deckert and Matthew W. Shepard for the Northern District of Ohio, Trial Attorneys Jacob Warren and Justin Sher of the National Security Division’s Counterterrorism Section, and Trial Attorney Eric Peffley of the Civil Rights Division’s Criminal Section prosecuted the case.
Ohio Man Sentenced to 18 Years in Prison for Firebombing a Church that Planned to Host Drag Show EventsRead the Press Release
An Ohio man was sentenced yesterday to 216 months in prison followed by three years of supervised release for attempting to burn down a church because of its support for the LGBTQ+ community.
Aimenn D. Penny, 20, of Alliance, Ohio, was arrested and charged last year with one count of violating the Church Arson Prevention Act, one count of using fire to commit a federal felony, one count of malicious use of explosive materials, and one count of possessing a destructive device. On Oct. 23, 2023, Penny pleaded guilty to the church arson hate crime and using fire and explosives to commit a felony.
According to court documents, on March 25, 2023, Penny made Molotov cocktails and drove to the Community Church of Chesterland (CCC), in Chesterland, Ohio. Angered by the church’s plan to host two drag events the following weekend, Penny threw two Molotov cocktails at the church, hoping to burn it to the ground. Through Penny’s guilty plea, he admitted to using force through fire and explosives, intending to obstruct CCC congregants in their enjoyment and expression of their religious beliefs.
“This sentence holds Mr. Penny accountable for carrying out violence against an Ohio church because he disagreed with the way congregants chose to express their beliefs,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Such acts of extremist violence have no place in our communities and the Justice Department is committed to bringing to justice those who would use or threaten violence to prevent their fellow citizens from freely exercising their fundamental rights.”
“We hope this significant sentence sends a clear and resounding message that this type of hate-fueled attack against a church will not be tolerated in our country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant tried to burn down a church simply because its members created space for and provided support to the LGBTQ+ community. The Justice Department will vigorously investigate and prosecute such senseless, bias-motivated violence against people exercising their constitutionally protected right to practice their religion and express their beliefs.”
“Aimenn Penny will spend the next 18 years in prison because he committed crimes fueled by hate, attempting to burn down a church because its members supported the LGBTQI+ community,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Hate crimes like Penny’s hurt not only the individual target, but the entire community, causing people to fear attack based on who they love and undermining the sense of safety within places of worship. Violent, bias-motivated extremism has no place in our country, and our office will aggressively prosecute those who commit such crimes.”
“Aimenn Penny is being held accountable for trying to burn down a house of worship because he disagreed with the church hosting certain events,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “Individuals who commit acts of violence, destroy property, and interfere with the free exercise of religion will face justice for those crimes. As in this case, the FBI, together with our law enforcement partners, will use our lawful authorities to protect our communities from such violence, and ensure those responsible pay the price.”
The FBI Cleveland Field Office investigated the case.
Assistant U.S. Attorneys Brian Deckert and Matthew W. Shepard for the Northern District of Ohio, Trial Attorneys Jacob Warren and Justin Sher of the National Security Division’s Counterterrorism Section, and Trial Attorney Eric Peffley of the Civil Rights Division’s Criminal Section prosecuted the case.
New Yorker sentenced for possessing automatic rifle in basilica school zoneRead the Press Release
BEAUMONT, Texas – A Brooklyn, NY man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Ahmed Abdalla Allam, 26, pleaded guilty to possession of a firearm in a school zone and was sentenced to 60 months in federal prison, the statutory maximum, by U.S. District Judge Marcia A. Crone on Jan. 30, 2024.
According to information presented in court, Allam, who is from New York, purchased an AR-15 style rifle in Pennsylvania, two days after a counterterrorism operation resulted in the death of Al Qaeda leader, Ayman al-Zawahiri. Allam then undertook a trek throughout the United States that ended in Beaumont, Texas, where he parked his car next to a Christian elementary school.
On January 29, local police searched Allam’s vehicle following a traffic stop and found him in possession of the AR-15, a 30-round magazine, and 150 rounds of ammunition. Chillingly, Allam penned writings that indicated he was planning to murder children and their parents in retaliation for the counter-terrorism work of the United States. The day he was arrested, Allam, told a parent that he was on a “mission” and that “no one would ever see him again.”
“The citizens of Beaumont and the Saint Anthony’s community should be proud that their collective vigilance in reporting Mr. Allam’s suspicious activities—parking his SUV outside of a Catholic school for hours at a time over the course of several days, while armed with an AR-15 rifle and multiple rounds of ammunition—prevented what would have been a mass shooting,” said U.S. Attorney Damien M. Diggs. “The work of the Beaumont Police Department and our federal law enforcement partners should be commended, as they worked together to prevent what was sure to be a sad day in Beaumont and the nation.”
“Vigilant Beaumont citizens took the phrase ‘See Something, Say Something,’ to heart, potentially saving numerous lives and uncovering Mr. Allam’s sinister motivations,” said FBI Houston Special Agent in Charge Douglas Williams. “Days after a U.S. military operation killed a top al-Qaeda leader, Ahmed Allam drove to Beaumont, parked his car near a Catholic school, and observed children and their parents while possessing a rifle and hundreds of bullets. The quick reporting of Allam’s suspicious activities to law enforcement by community members allowed FBI Beaumont counterterrorism agents, Beaumont police officers, and ATF investigators to swiftly respond and disrupt what could have been a devastating retaliatory attack.”
“This incident serves as a prime example of the success of the ‘See Something, Say Something’ campaign,” said Acting ATF SAC Francisco Ortega. “ATF was able to work hand in hand with our law enforcement partners to prevent a potential violent crime. It is through the community’s collective efforts that we can maintain a safe and secure environment for everyone. We encourage all members of our community to remain vigilant and report any suspicious activities to law enforcement.”
“The Beaumont Police Department is committed to the safety of all of our citizens, especially our children,” said Beaumont Police Chief Jimmy Singletary. “This case is a perfect example of the importance of the ‘See Something, Say Something’ campaign. It takes all of us working together to be vigilant and report suspicious activity. Protecting our children is a mission everyone should stand behind. BPD will continue to work with our Federal Law Enforcement partners to ensure swift justice for anyone who jeopardizes the safety of the most vulnerable in our community. I would like to commend the leadership of Saint Anthony for their diligence and steadfastness in protecting their students.”
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.
This case was investigated by the FBI's Beaumont Resident Agency; Bureau of Alcohol, Tobacco, Firearms and Explosives; Beaumont Police Department; Jefferson County District Attorney's Office; Port Arthur Fire Department, and Montgomery County Fire Marshall. This case was prosecuted by Assistant U.S. Attorneys John B. Ross and Joseph R. Batte.
###
New York Man Found Guilty of Federal Firearms ChargeRead the Press Release
GREENEVILLE, Tenn. – Following a trial in the United States District Court in Greeneville, Jatally Williams, 33, of Utica, New York, was found guilty of possessing a firearm while being a prohibited person, specifically a person having been convicted of a crime punishable by more than one year in prison.
Sentencing is set for May 16, 2024, before the Honorable Clifton Corker, in United States District Court in Greeneville, Tennessee. Williams faces a potential fifteen-year minimum mandatory and a maximum life sentence in prison pursuant to the Armed Career Criminal Act (ACCA).
Evidence at trial showed that on February 4, 2022, Williams was a passenger in a vehicle pulled over by law enforcement officers on Roan Street in Johnson City. During the traffic stop, Williams admitted that he possessed a gun and officers located a 9mm pistol in Williams’ waistband. Williams’ criminal record includes prior felony convictions for robbery, burglary, and a felony drug offense.
U.S. Attorney Francis M. Hamilton, III of the Eastern District of Tennessee, made the announcement.
The Johnson City Police Department led the investigation that resulted in the indictment and subsequent conviction of Williams.
Assistant U.S. Attorney Tom McCauley and Ryan Blackwell represented the United States at trial.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community face.
###
New Haven Man Pleads Guilty to Federal Narcotics Distribution OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that JERRARD SANTIAGO, 43, of New Haven, pleaded guilty yesterday before U.S. District Judge Jeffrey A. Meyer in New Haven to narcotics distribution offenses.
According to court documents and statements made in court, this investigation began after an individual who had purchased narcotics in a restroom of the Mohegan Sun Casino on May 18, 2021, overdosed on the casino floor and died approximately 11 days later. On February 3, 2023, investigators made a controlled purchase of fentanyl and heroin from Santiago. On February 14, 2023, investigators made a controlled purchase of fentanyl and cocaine from Santiago.
Santiago pleaded guilty to two counts of possession with intent to distribute, and distribution of, a controlled substance, an offense that carries a maximum term of imprisonment of 20 years on each count. Judge Meyer scheduled sentencing for April 22.
Santiago has been detained since his arrest on March 30, 2023.
This matter is being investigated by the Drug Enforcement Administration and the Mohegan Tribal Police. The case is being prosecuted by Assistant U.S. Attorneys Ross Weingarten and Christopher W. Schmeisser.
New Haven Felon Sentenced to 46 Months in Federal Prison for Possessing FirearmRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that TEEJAY JOHNSON, 38, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 46 months of imprisonment, followed by three years of supervised release, for unlawfully possessing a firearm. Johnson must also serve the first six months of his supervised release in home detention.
According to court documents and statements made in court, on March 9, 2022, members of the New Haven Police Department Shooting Task Force and other law enforcement officers executed a state search warrant at Johnson’s residence. Johnson was found coming out of the bathroom after narcotics had been flushed down the toilet. Investigators collected samples of narcotics from the bathroom, and found in other areas of the residence fentanyl and other narcotics, marijuana, more than $8,600 in cash, and a loaded .40 caliber handgun with an extended magazine and 16 rounds of ammunition.
Johnson’s criminal history includes state felony convictions for firearm and assault related offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Johnson has been detained since his federal arrest on April 21, 2022. On August 28, 2023, he pleaded guilty to unlawful possession of a firearm by a felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Anastasia King through 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.
Morris County Woman Admits Compensation FraudRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, woman employed by the U.S. Postal Service today admitted making false statements in several claim forms seeking disability compensation, U.S. Attorney Philip R. Sellinger announced.
Pamela VanSyckle, 60, of Oak Ridge, New Jersey, pleaded guilty before U.S. District Court Judge Katharine S. Hayden in Newark federal court to an information charging her with one count of federal employee compensation fraud.
According to documents filed in this case and statements made in court:
VanSyckle worked for the U.S. Postal Service as a rural carrier. In September 2020, VanSyckle signed and filed a claim form alleging that she sustained an injury at work. Thereafter, she signed and filed multiple federal claim forms alleging that she had not worked or had outside employment for extended periods of time. Based on the submission of those claims, VanSyckle received $156,872 in disability payments from the federal government.
During the time in which she received disability benefits, VanSyckle was in fact working as the owner and operator of a travel agency. While alleging in her claim forms that she was neither self-employed nor involved in any business enterprise, VanSyckle performed a variety of services for the travel agency including sales, marketing, and financial operations.
The fraud charge carries a maximum potential sentence of five years in prison and a maximum fine equal to the greatest of $250,000 or twice the gross amount of any pecuniary gain that any persons derived from the offense. Sentencing is scheduled for June 12, 2024.
U.S. Attorney Sellinger credited special agents of the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modaferri in Newark; special agents of the U.S. Department of Labor – Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone; and members of the Jefferson Township Police Department, under the direction of Chief Paul Castimore, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office Special Prosecutions Unit in Newark.
vansyckle.information.pdfMexican National Charged with Smuggling Firearms into Mexico from the United StatesRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Jason T. Stevens, Acting Special Agent in Charge of Homeland Security Investigations - El Paso, announced that David Fehr Wiebe appeared in federal court on a criminal complaint charging him with smuggling goods from the United States. Wiebe, 51, of Janos, Chihuahua, Mexico, will remain in custody pending trial, which has not yet been scheduled.
According to the criminal complaint, on Dec. 3, 2023, Wiebe applied for entry into the United States at the Antelope Wells Port of Entry in Hachita, New Mexico. Wiebe stated that he had just departed the same point of entry but had turned around when he was denied entry into Mexico because he lacked the proper documentation to export a vehicle which he was towing. Customs and Border Protection Officers referred the vehicle for secondary inspection, during which time officers located two handguns wrapped in cellophane beneath the center console. Officers placed Wiebe under arrest. When officers asked Wiebe if he understood why he was being arrested, Wiebe responded that it was because of the firearms in the vehicle. Officers asked Wiebe how many firearms where in the vehicle and he stated that there was a total of 14.
Officers located four rifles between the back seat and the back panel of the vehicle, three handguns, and multiple shotguns. During a subsequent interview, Wiebe told officers that he purchased the firearms in Seminole, Texas with the intent of smuggling them to Mexico and that he was going to be paid $350 for each weapon.
A criminal complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted on the current charges, Wiebe faces up to 10 years in prison.
Homeland Security Investigations investigated this case. Assistant U.S. Attorney Mark Saltman is prosecuting the case.
View the Criminal Complaint# # #
24-41
Mexican National Charged with Being an Alien in Possession of a FirearmRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Jason T. Stevens, Acting Special Agent in Charge of Homeland Security Investigations - El Paso, announced that David Pasillas Martinez appeared in federal court on a criminal complaint charging him with being an alien in possession of a firearm. Pasillas Martinez, 52, of Ciudad Juarez, Chihuahua, Mexico, will remain in custody pending trial, which has not yet been scheduled.
According to the criminal complaint, on Jan. 7, 2024, while conducting surveillance at the Las Cruces Gun Show in Las Cruces, agents with Homeland Security Investigations (HSI) observed a vehicle with Chihuahua, Mexico license plates which was registered to Pasillas Martinez. Agents observed Pasillas Martinez leave the gun show and place a firearm in the rear passenger side door of his vehicle before he drove away. Agents followed Pasillas Martinez from Las Cruces to El Paso, Texas. A short time later, a New Mexico State Police trooper executed a traffic stop on Pasillas Martinez for impeding traffic in a safety corridor. After the stop, HSI agents conducted an investigation of Pasillas Martinez, who agreed to speak to agents.
Pasillas Martinez told agents that he was a Mexican national and had travelled to Las Cruces to attend the gun show and purchase a firearm because he knows vendors there will not ask for identification when selling a firearm. Pasillas Martinez stated that he purchased three or four rifles and a pistol to take to Juarez, Chihuahua, Mexico for sport shooting and planned to register the firearms in Mexico. Pasillas Martinez identified himself as a Municipal Police Officer in Juarez and stated that he knew it was illegal to purchase firearms in the U.S. and export them to Mexico.
A criminal complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted on the current charges, Pasillas Martinez faces up to 15 years in prison.
Homeland Security Investigations investigated this case. Assistant U.S. Attorney Mark Saltman is prosecuting the case.
# # #
24-43
McComb Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A McComb man pled guilty to possession of a firearm by a convicted felon.
According to court documents, on April 1, 2021, Norkeithus Malik Reed, 24, was found in possession of a firearm when Brookhaven Police officers responded to a complaint at an area restaurant where Reed was causing a disturbance. Reed was previously convicted in state court of drug-related felony charges and is prohibited from possessing a firearm.
Reed will be sentenced on April 30, 2024, and faces a maximum penalty of 10 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives made the announcement.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Matt Allen is prosecuting the case.
Maryland U.S. Attorney’s Office and Justice Department’s Civil Rights Division Secure $440,000 Agreement with MedStar Health, Inc. to Provide People with Disabilities Equal Access to Medical CareRead the Press Release
Baltimore, Maryland – A complaint and proposed consent decree have been filed in U.S. District Court in Maryland to resolve allegations that MedStar Health, Inc., a healthcare provider in Maryland and the Washington, D.C., region, violated the Americans with Disabilities Act by denying people with disabilities equal access to medical care by excluding their necessary support persons. Under the proposed consent decree, which the Court must approve, MedStar Health has agreed to pay a total of $440,000 to compensate eligible affected individuals. MedStar Health will also revise its policies to ensure ADA compliance, train its workforce on the new policies, and report to the Department on any future exclusion of support persons, as defined in the Decree.
The lawsuit and proposed consent decree was announced by United States Attorney for the District of Maryland Erek L. Barron and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division.
“Patients are entitled to equal access to healthcare.” said U.S. Attorney Erek L. Barron. “We appreciate MedStar Health’s cooperation in this investigation and are pleased that MedStar Health has agreed to take comprehensive steps to ensure that patients with disabilities have the same opportunities to obtain medical care and services.”
“For some people with disabilities, having a support person accompany them is critical to ensure they have the same access to health care as everyone else. This is a key promise of the ADA,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When health care providers do not appropriately account for the needs of people with disabilities, they may provide unequal care in violation of the ADA. The Justice Department is committed to combatting such discrimination.”
As detailed in the complaint, certain individuals with dementia, intellectual disabilities, autism spectrum disorder, and other disabilities may require the assistance of a support person (such as a family member, companion, or aide) when accessing medical care, including to provide information about medical history and/or to understand medical directions. During the COVID-19 pandemic, MedStar Health instituted policies restricting the flow of individuals into its buildings. The government’s complaint alleges that MedStar Health failed on numerous occasions to modify its visitor restrictions so that people with certain disabilities, which affected their ability to independently access medical care, could be accompanied by their support persons. As a result, they were unable to receive equal care without the assistance of their support person.
This matter was handled jointly by the U.S. Attorney’s Office for the District of Maryland and the Civil Rights Division’s Disability Rights Section. U.S. Attorney Erek Barron thanked Assistant U.S. Attorney Sarah Marquardt and Trial Attorney Anne Langford of the Civil Rights Division, who handled the case.
Title III of the Americans with Disabilities Act (ADA) requires private hospitals and other health care providers to provide individuals with disabilities with full and equal enjoyment of their goods and services. For more information on the Maryland U.S. Attorney’s Office’s civil rights work, please visit https://www.justice.gov/usao-md/civil-rights. ADA complaints may be filed online at https://www.ada.gov/file-a-complaint/. Anyone in Maryland may also report civil rights violations by emailing [email protected].
# # #
Maryland Man Sentenced to 22 Years in Federal Prison for Sexual Exploitation of a Child to Produce Child PornographyRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Jose Hilario Aldana-Moreno, age 37, of Baltimore, Maryland, yesterday to 22 years in federal prison, followed by 40 years of supervised release, for sexual exploitation of a child to produce of child pornography. Judge Hollander also ordered that, upon his release from prison, Aldana-Moreno must 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 (“SORNA”).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Richard Worley of the Baltimore Police Department; and Baltimore City State’s Attorney Ivan Bates.
According to his guilty plea and other court documents, from 2014 to 2020 Aldana-Moreno sexually abused a minor victim, beginning when the victim was 10 years old. Aldana-Moreno was a truck driver and traveled for work. On at least five occasions while Aldana-Moreno was away, he engaged in video chats with the victim and convinced the victim to pose for him, taking screenshots of her genitals. Aldana-Moreno also took images and videos documenting his sexual abuse of the victim at her home and when the victim traveled with him.
As detailed in his plea agreement, Aldana-Moreno was arrested on January 15, 2022, and his cellphone was recovered. A search of the phone revealed that Aldana-Moreno used a messaging application to send a video depicting the genitals of two prepubescent males to two separate individuals on May 29, 2018.
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 the FBI, the Baltimore Police Department, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Colleen Elizabeth McGuinn, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
# # #
Maryland Man Pleads Guilty to Fentanyl DistributionRead the Press Release
WASHINGTON – Edward Steven Monge, 22, of Beltsville, Maryland, pleaded guilty today to participating in a fentanyl distribution conspiracy, announced U.S. Attorney Matthew M. Graves, Drug Enforcement Administration Special Agent in Charge Jarod Forget of the Washington Division, and Chief Pamela Smith of the Metropolitan Police Department (MPD). Monge pleaded guilty in the District of Columbia to an information charging him with conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl.
U.S. District Judge Ana C. Reyes set a sentencing date for May 29. Monge faces a mandatory minimum sentence of five years in prison, but the plea agreement calls for a sentence of 87 to 108 months. The prison term will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
According to the government’s evidence, between February and August 2023 Monge sold more than 4,500 pills containing fentanyl to Jennifer Echeverria Flores, 26, of Silver Spring, MD. Echeverria Flores then sold the pills to a DEA undercover agent on five separate occasions between February 17 and July 19, 2023, in the District and Maryland and the District of Columbia. The pills were blue, marked “M” on one side, and “30” on the other. The total approximate weight of the pills was 479 grams. These pills are designed to look like authentic oxycodone “M30” pills, but instead contain fentanyl.
Echeverria Flores was arrested on July 31, 2023. On August 3, 2023, law enforcement arrested Monge in Hyattsville, MD, and found him carrying about 1,102 pills, which field tested positive for the presence of fentanyl. As part of the Plea Agreement, Monge also admitted that he possessed a firearm in connection with his unlawful distribution of fentanyl.
Echeverria Flores pleaded guilty in December to the drug conspiracy charge. She is scheduled to be sentenced March 19.
This case was investigated by the DEA – Washington Division.
The case is being prosecuted by Special Assistant U.S. Attorneys Javier Urbina and Assistant U.S. Attorney David T. Henek, of the Violence Reduction and Trafficking Offenses section. Valuable assistance was provided by former Special Assistant U.S. Attorney Jordan Leiter.
Man Sentenced to 17 Years in Prison for Child PornographyRead the Press Release
A Mansfield, Texas man who used Snapchat to inappropriately communicate with 14-year-old boy was sentenced Friday to 210 months in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Juan Aguilera Duran, 33, was charged via criminal complaint in May 2023 and was indicted in August 2023. He pleaded guilty in October 2023 to receipt of child pornography. He was sentenced Friday by U.S. District Judge Reed C. O’Connor, who also ordered the defendant to a lifetime of supervised release.
“Our dedicated federal prosecutors are committed to taking child predators like this defendant off the street,” said U.S. Attorney Simonton. “We thank the Secret Service and Mansfield Police Department for their tireless efforts in investigating cases like this to keep the kids in our communities safe.”
“The Secret Service is committed to using our forensic and investigative capabilities to help catch criminals who prey on the most vulnerable among us,” said Christina Foley, Acting Special Agent in Charge of the U.S. Secret Service’s Dallas Field Office. “We are proud of the coordinated effort with our partners from the Mansfield Police Department and U.S. Attorney’s Office to ensure that justice was served.”
“The Mansfield Police Department values partnerships,” said Mansfield Chief of Police Tracy Aaron. “This case is a testament to the great work that occurs when agencies collaborate and work together for the common good to fight evil in our community. This particular unit is established to protect our most valuable and vulnerable, our kids. Job well done from the start to the finish.”
According to court documents, on August 13, 2022, the Mansfield Police Department was dispatched to a residence in Mansfield, Texas to meet with a 14-year-old boy who received sexually explicit messages, images and videos via Snapchat from Mr. Duran. Search and arrest warrants were obtained that later resulted in Duran pleading Guilty to receiving Child Pornography.
Mr. Duran later pled guilty to receiving images of child pornography on his computer.
The Mansfield Police Department, Tarrant Co. District Attorney’s Office Digital Forensics and Technical Services, and Secret Service conducted the investigation. Assistant U.S. Attorney Brandie Wade prosecuted the case.
Man Pleads Guilty to Sex Trafficking ConspiracyRead the Press Release
WASHINGTON – A Texas man pleaded guilty today to conspiracy to commit sex trafficking by force, fraud, or coercion.
According to court documents, in 2021 and 2022, Gregory Massey, 30, and his girlfriend and co-defendant Patricia Hart forced two adult victims to engage in commercial sex in different locations. Massey and Hart advertised the victims for commercial sex on websites, kept the money the victims made from commercial sex transactions, required the victims to meet a minimum dollar threshold from commercial sex every day, and restricted the victims’ access to food. Massey also tracked the geolocation data on the victims’ phones so that they could not leave and used violence to accomplish the scheme.
Massey is scheduled to be sentenced on May 21. If the court accepts the plea, the government and Massey will agree to a sentence of 22 years and six months in prison, followed by eight years of supervised release. He will also agree to pay $128,800 in restitution to the victims. As a result of his plea, Massey must also participate in the sex offender registration and notification program.
Hart also pleaded guilty in November 2023 to conspiracy to commit sex trafficking. She is scheduled to be sentenced on March 26, 2024
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division and U.S. Attorney Duane A. Evans for the Eastern District of Louisiana made the announcement.
Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Louisiana State Police investigated the case.
Trial Attorney Melissa E. Bücher of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Maria M. Carboni for the Eastern District of Louisiana are prosecuting the case.
Man Pleads Guilty to Sex Trafficking ConspiracyRead the Press Release
A Texas man pleaded guilty today to conspiracy to commit sex trafficking by force, fraud, or coercion.
According to court documents, in 2021 and 2022, Gregory Massey, 30, and his girlfriend and co-defendant, Patricia Hart, forced two adult victims to engage in commercial sex in different locations. Massey and Hart advertised the victims for commercial sex on websites, kept the money the victims made from commercial sex transactions, required the victims to meet a minimum dollar threshold from commercial sex every day, and restricted the victims’ access to food. Massey also tracked the geolocation data on the victims’ phones so that they could not leave and used violence to accomplish the scheme.
Massey is scheduled to be sentenced on May 21. If the court accepts the plea, the government and Massey will agree to a sentence of 22 years and six months in prison, followed by eight years of supervised release. He will also agree to pay $128,800 in restitution to the victims. As a result of his plea, Massey must also participate in the sex offender registration and notification program.
Hart also pleaded guilty in November 2023 to conspiracy to commit sex trafficking. She is scheduled to be sentenced on March 26.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division and U.S. Attorney Duane A. Evans for the Eastern District of Louisiana made the announcement.
Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Louisiana State Police investigated the case.
Trial Attorney Melissa E. Bücher of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Maria M. Carboni for the Eastern District of Louisiana are prosecuting the case.
Man Pleads Guilty to International Money Laundering Linked to Nigerian Romance Scams and Business Email CompromisesRead the Press Release
A Florida man pleaded guilty yesterday in the Southern District of Florida to money laundering for his role in funneling the proceeds of scams against American consumers and businesses to co-conspirators located in Nigeria.
Niselio Barros Garcia Jr., 50, of Kissimmee, was indicted by a grand jury on July 12, 2023. According to court documents, Garcia supplied bank accounts to his co-conspirators for the purpose of receiving proceeds from romance scams, business email compromises and other fraud schemes. After receiving the criminal proceeds, Garcia used a cryptocurrency exchange to conceal and transfer the funds in Bitcoin to co-conspirators in Nigeria. Garcia personally laundered over $2.3 million of criminal proceeds and earned hundreds of thousands of dollars in fees.
Business email compromises involve criminals hacking or spoofing business email accounts to initiate fraudulent money transfers. Romance scams involve fraudsters creating fake online personas to gain the trust and affection of victims, leading to financial exploitation. These schemes not only cause significant financial losses, but also deeply impact the lives of victims.
“This prosecution demonstrates our ongoing commitment to protecting the public from complex financial crimes,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “This case serves as a reminder of the sophisticated methods employed by criminals and the need for vigilance in the digital age. The Justice Department remains committed to aggressively pursuing individuals and groups involved in these kinds of illicit activities.”
Garcia is scheduled to be sentenced in the Southern District of Florida on April 23. He faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Four additional defendants have been charged in this scheme but remain at large.
The FBI Buffalo Field Office investigated the case.
Trial Attorneys Lauren Elfner and Matthew Robinson of the Civil Division’s Consumer Protection Branch are prosecuting the case.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Information about the Justice Department’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
Long Beach Man Sentenced for Attempted Coercion of a MinorRead the Press Release
FRESNO, Calif. — Aldo David Alcaraz, 30, of Long Beach was sentenced Monday to 10 years and one month in prison for attempted coercion of a minor, U.S. Attorney Phillip A. Talbert announced. The sentence imposed includes a lifetime term of supervised release, during which Alcaraz’s access to minors, computers, and the internet will be restricted.
According to court documents, Alcaraz used an iPhone, the messaging application Skout and text messages to engage in sexually explicit communications for several days with a person he believed to be 14 years old. On Jan. 23, 2021, Alcaraz traveled to Bakersfield to meet the purported minor for sexual activity. The “minor” was actually undercover law enforcement investigators. On arrival, Alcaraz was arrested and booked into the Kern County Jail.
This case was the product of an investigation by the Central California Internet Crimes Against Children Task Force, Homeland Security Investigations, and the Kern County Sheriff’s Office. Assistant U.S. Attorney David Gappa is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Lodi Man Sentenced to 25 Years in Prison for Methamphetamine Trafficking and for Being a Felon in Possession of AmmunitionRead the Press Release
SACRAMENTO, Calif. — Marcello Marlo Rivera, 49, of Lodi, was sentenced today to 25 years in prison for possession with the intent to distribute methamphetamine and for being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, on May 11, 2022, while law enforcement agents were attempting to execute a federal search warrant, Rivera flushed methamphetamine down the toilet at his residence in Lodi. The agents found large bags with leftover methamphetamine shards and residue in Rivera’s room. Rivera was also found to be in possession of a loaded high-capacity magazine containing 17 live rounds of ammunition. Rivera cannot legally possess ammunition because he has previously been convicted of multiple felonies.
This case was the product of an investigation by the Drug Enforcement Administration, the California Highway Patrol, the Lodi Police Department, the San Joaquin Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys David Spencer and Kerry Blackburn prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
This case is also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations.
The mission of the OCDETF Sacramento Strike Force is to identify, investigate, disrupt, and dismantle the most significant drug trafficking organizations (DTOs), transnational criminal organizations (TCOs), and Priority Transactional Organized Crime Groups (PTOCs).
Lake Worth Man Sentenced to Two Years in Federal Prison for Straw Purchasing FirearmsRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Charles David Mobley (50, Lake Worth) to two years in federal prison for making a false statement to a federally licensed firearms dealer in connection with the acquisition of a firearm. Mobley entered a guilty plea on April 4, 2022.
According to court documents, special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) identified Mobley as a potential black-market firearms dealer after law enforcement recovered several firearms purchased by Mobley in connection with separate criminal investigations. Undercover ATF agents subsequently engaged in five different straw purchases from Mobley between July 2021 and August 2021. For each purchase, Mobley went to federally licensed firearms dealers, bought firearms requested by the undercover agents, and falsely certified in ATF paperwork he was purchasing the firearms for himself. Mobley subsequently provided the undercover agents with the purchased firearms. In total, Mobley straw-purchased nine firearms for the undercover ATF agents, some of which had large-capacity magazines attached.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney David B. Mesrobian.
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.
LaPorte Man Sentenced to 144 MonthsRead the Press Release
SOUTH BEND – Pedro Gomez Jr., 31 years old, of LaPorte, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to distribution of methamphetamine, announced United States Attorney Clifford D. Johnson.
Gomez was sentenced to 144 months in prison followed by 5 years of supervised release.
According to documents in the case, during the fall of 2022, Gomez and his co-defendant, Monica Harrington, distributed methamphetamine in the Michigan City area. In October 2022, co-defendant Amanda West supplied Gomez and Harrington with an ounce of methamphetamine. In total, Gomez distributed almost 200 grams of methamphetamine.
Harrington was previously sentenced to 75 months in prison followed by 3 years of supervised release. West was previously sentenced to 57 months in prison followed by 3 years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration with assistance from the DEA North Central Laboratory and the LaPorte County Drug Task Force. The case was prosecuted by Assistant United States Attorney Katelan McKenzie Doyle.
Kevin Love Hubbard Appointed as Civil Division ChiefRead the Press Release
PROVIDENCE – U.S. Attorney Zachary A. Cunha announced today that he has appointed Assistant U.S. Attorney Kevin Love Hubbard to serve as Chief of the Office’s Civil Division, overseeing a complex and growing practice that represents the interests of the United States in litigation in the federal District Courts as well as on appeal. The Division’s work encompasses affirmative civil cases and investigations, in which the government sues to address fraud, recover federal funds, and enforce a variety of other statutes; defensive litigation, in which the United States represents the government and its agencies and employees in suits filed in federal court; and civil rights, as well as a number of other non-criminal areas of focus that defend the public interest and enforce federal law.
Mr. Hubbard joined the United States Attorney’s Office in 2021; at the time, he was a partner in the law firm of Medina Orthwein. Earlier in his career, Mr. Hubbard served as a law clerk to the Honorable Neil Wake of the United States District Court for the District of Arizona, and held litigation roles with two nationally prominent law firms. He is a graduate of the Pennsylvania State University and Yale Law School. He succeeds Bethany N. Wong, who has served as civil Chief for the past two years, overseeing substantial growth and expansion in the Office’s already thriving civil practice, particularly in the area of affirmative litigation; Ms. Wong will continue to focus on those critical and significant matters by serving as the office’s Affirmative Civil Enforcement Coordinator.
###
Kentucky Lab Agrees to $4.9 Million Civil Judgment and Drug Treatment Center Enters Settlement to Pay $2.2 Million to Resolve False Claims Act AllegationsRead the Press Release
LEXINGTON, Ky. – The United States District Court for the Eastern District of Kentucky has entered an agreed judgment for $4.9 million, in favor of the United States and against AccuLab, LLC d/b/a Thoroughbred Diagnostics (“Thoroughbred”), holding the lab liable for submitting false claims for urine drug testing services to the Medicare and Kentucky Medicaid programs.
Relatedly, the United States entered into a settlement agreement with Edgewater Recovery Center, LLC (“Edgewater”), the drug rehabilitation facility that caused the submission of those false laboratory claims, to resolve its own False Claims Act liability. Pursuant to that settlement agreement, Edgewater will pay the Government $2.2 million.
Edgewater operates residential and outpatient drug rehabilitation facilities in multiple locations in Kentucky. The Government alleged that Edgewater requested the same complex panel of urine drug tests for all its patients on a weekly basis, without considering whether individual patients needed them. In typical cases, Edgewater did not even use the results of these expensive tests for the patients’ medical diagnosis or treatment.
Thoroughbred is a clinical laboratory based in Bowling Green, Ky., that performed urine drug tests for Edgewater’s patients. The Government alleged that Thoroughbred performed the urine drug tests requested by Edgewater and billed them to Medicare and Kentucky Medicaid, despite knowing the tests were not typically used for patients’ medical diagnosis or treatment. The Government further alleged that Thoroughbred billed for urine drug screens – a less complex test – performed on Edgewater specimens without a proper medical order requesting the test. As a result, Thoroughbred improperly received substantial payments from Medicare and Kentucky Medicaid.
The False Claims Act is a federal law that prohibits the submission of false or fraudulent claims for payment to the federal government. Medicare and Kentucky Medicaid only authorize payment for laboratory testing that is individualized to each patient, is used for medical diagnosis or treatment, and is supported by a proper medical order. As federally-funded health care programs, Medicare and Kentucky Medicaid require all tests and procedures to be medically necessary and in compliance with program rules and applicable law.
Under the terms of its Settlement Agreement with the United States, Edgewater agreed to pay $2,249,632.92 to resolve allegations that it caused the submission of false claims. Edgewater also entered into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General, requiring the business to appoint a Compliance Officer – who will be tasked with implementing policies to ensure compliance with federal health care program requirements and monitoring Edgewater’s day-to-day compliance activities – and retain an independent compliance expert to review their compliance program.
Thoroughbred separately agreed to entry of an Agreed Judgment in the case, in favor of the United States, in the amount of $4,925,441.42. To satisfy this judgment, Thoroughbred will immediately pay the United States $450,000 and then remit the proceeds resulting from its ceasing of lab operations. Thoroughbred must pay to the United States 100% of the net proceeds of the sale of its assets, 70% of its reimbursements from healthcare payors for one year, and any funds received pursuant to an Employee Retention Tax Credit.
“Medicare and Medicaid are intended – and funded – to provide medically necessary health care benefits to millions of eligible Americans,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “When the valuable and limited resources of these programs are depleted, by fraud, waste, or abuse, it has a profound impact on us all. We simply must prioritize taking the steps available to us to prevent inappropriate billing like this, and to return the funds to their proper purpose – providing necessary medical care.”
“Providers who participate in federal health care programs must follow the law governing the integrity of federally funded health care programs such as Medicare and Medicaid,” said Tamala E. Miles, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG is committed to protecting the integrity of the Medicare and Medicaid programs and the people they serve. We will continue to work closely with our law enforcement partners to address allegations brought under the False Claims Act.”
The settlement resolves a lawsuit brought by a private citizen under the qui tam provisions of the False Claims Act. Under those provisions, a private party can file a civil action on behalf of the United States, thereby bringing allegations of fraud to the Government’s attention, and share in any financial recovery. As part of this resolution, the individual who filed the qui tam complaint will receive a portion of the settlement proceeds.
This case was investigated by the Affirmative Civil Enforcement section of the U.S. Attorney’s Office. Assistant United States Attorneys Benjamin Long and Katherine Sheridan represented the United States.
This case is captioned United States ex rel. Katharine Coale v. Edgewater Recovery Center, LLC, et al., Case No. 3:21-CV-00056-GFVT. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
– END –
Justice Department Secures Agreement with MedStar Health Inc. to Provide People with Disabilities Equal Access to Medical CareRead the Press Release
The Justice Department announced today that it filed a complaint and proposed consent decree in the U.S. District Court for the District of Maryland to resolve allegations that MedStar Health Inc., a leading health care provider in Maryland and the Washington, D.C., region, violated the Americans with Disabilities Act (ADA) by denying people with disabilities equal access to medical care by excluding their necessary support persons.
“For some people with disabilities, having a family member, aide or other support person by their side is critical to ensure they have the same access to health care as everyone else,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When health care providers impose visitor restrictions that do not appropriately account for the needs of people with disabilities, they may run afoul of the Americans with Disabilities Act. The Justice Department is committed to safeguarding the civil rights of people with disabilities, including ensuring equal access to medical care.”
“Patients are entitled to equal access to health care,” said U.S. Attorney Erek L. Barron for the District of Maryland. “We appreciate Medstar Health’s cooperation in this investigation and are pleased that Medstar Health has agreed to take comprehensive steps to ensure that patients with disabilities have the same opportunities to obtain medical care and services.”
Some individuals with dementia, intellectual disabilities, autism spectrum disorder and other disabilities may require the assistance of a support person (such as a family member, companion or aide) to provide their medical history or understand medical directions when accessing medical care. The complaint alleges that MedStar Health failed on numerous occasions to modify its visitor restrictions so that people with certain disabilities which affected their ability to independently access medical care could be accompanied by their support persons. As a result, they were unable to receive equal care without the assistance of their support person.
Under the proposed consent decree, which the court must approve, MedStar Health has agreed to pay a total of $440,000 to compensate multiple eligible affected individuals. MedStar Health will also revise its policies to ensure ADA compliance, train its workforce on the new policies and report to the department on any future exclusion of support persons, as defined in the decree.
This matter was handled jointly by the department’s Civil Rights Division and the U.S. Attorney’s Office for the District of Maryland. Title III of the ADA requires private hospitals and other health care providers to provide individuals with disabilities with full and equal enjoyment of their goods and services.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov. If you believe you’ve been discriminated against, you may file a complaint online at www.civilrights.justice.gov/. Anyone in the District of Maryland may also report civil rights violations by emailing [email protected].
Joint Statement by U.S. Attorney General Merrick B. Garland and Australia Attorney-General Mark Dreyfus KC Announcing Entry into Force of the United States and Australia’s Data Access Agreement to Support Investigations of Serious CrimeRead the Press Release
The United States and Australia today have brought into force the landmark Agreement on Access to Electronic Data for the Purpose of Countering Serious Crime. The Agreement will transform and enhance international cooperation in addressing serious crimes, including terrorism and child sexual abuse. The Agreement will complement the existing close relationships between the United States and Australia across law enforcement, contributing to the safety and security of both nations.
The Agreement will allow U.S. and Australian authorities to obtain more timely access to electronic data held by service providers in the partner nation. Obtaining this information will help U.S. and Australian agencies prevent, detect, investigate, and prosecute serious crime and safeguard our national security.
Importantly, the Agreement also provides safeguards and protections that reflect the commitment of both countries to human rights, civil liberties, and the rule of law. These include stringent privacy and oversight protections to ensure any data collected meets the Agreement’s robust requirements.
Signed between the Government of the United States of America and the Government of Australia, on Dec. 15, 2021, the Agreement is supported by each Party’s domestic legislative frameworks – the United States’ Clarifying Lawful Overseas Use of Data (CLOUD) Act and Australia’s Schedule 1 of the Telecommunications (Interception and Access) Act 1979 (Cth).
Jackson Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Jackson man pled guilty to possession of a firearm by a convicted felon.
According to court documents, Randy Rodriquez Jones, 49, sold a firearm to an individual on January 8, 2020. Jones had multiple prior drug-related felony convictions and a previous state court conviction for possession of a firearm by a convicted felon. As a convicted felon, it is contrary to federal law for Jones to possess any firearm.
Jones will be sentenced on April 30, 2024, and faces a maximum penalty of 10 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives made the announcement.
The ATF is investigating the case and Assistant U.S. Attorney Matt Allen is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Iowa Falls Felon Sentenced to Federal PrisonRead the Press Release
An Iowa Falls man who possessed a stolen gun as a felon was sentenced January 30, 2024, to more than five years in federal prison.
Deron Michael Humes, II, age 34, from Iowa Falls, Iowa, received the prison term after a June 7, 2023, guilty plea to one count of possession of a firearm by a felon.
Information disclosed at sentencing showed that, on October 4, 2022, Humes carried a Shadow Systems, MR920, 9x19mm pistol into a gun store in Iowa Falls. The Shadow Systems pistol had been stolen from its owner the week before. While Humes was inside the gun store, he purchased a thirty‑round magazine for the firearm and asked an employee of the store if they had a device that could turn the firearm into a fully automatic weapon. After Humes exited the store, law enforcement officers responded and confronted Humes. During the encounter, officers searched the vehicle Humes was located in, and they found the Shadow Systems pistol hidden behind the glovebox compartment. Humes had two prior felony convictions, and he was prohibited from possessing firearms.
Humes was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Humes was sentenced to 70 months’ imprisonment, and he must also serve a three‑year term of supervised release after the prison term. There is no parole in the federal system.
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.
Humes is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Iowa Division of Narcotics Enforcement, the Iowa Falls Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23‑CR‑00032‑CJW.
Follow us on Twitter @USAO_NDIA.
Hopewell Man Sentenced to over 10 Years for Possessing Methamphetamine and AR-Style FirearmsRead the Press Release
RICHMOND, Va. – A Hopewell man was sentenced today to 124 months in prison for possessing with the intent to distribute over fifty grams of methamphetamine in Chesterfield County, while also possessing fentanyl, cocaine, and two AR-style semiautomatic pistols.
According to court documents, Shaone Lovett, 27, was the subject of a January 2023 search warrant executed by the Drug Enforcement Administration and the Chesterfield County Police Department at his residence. When law enforcement encountered Lovett, he possessed various substances containing fentanyl, methamphetamine, and cocaine, as well as an AR-style semiautomatic pistol loaded with a high-capacity magazine containing 40 rounds of ammunition. When law enforcement searched his apartment, they found another AR-style semiautomatic pistol and dozens of rounds of ammunition.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod A. Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Colonel W. Keith Early, Prince George County Police Department; and Colonel Jeffrey S. Katz, Chesterfield County Police Department, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney, Jr.
Assistant U.S. Attorneys Shea Gibbons and Erik S. Siebert prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-102.
Home Health Company Owner Sentenced for Nearly $2.8M Medicare FraudRead the Press Release
An Indian national was sentenced today to nine years in prison for orchestrating a nearly $2.8 million health care fraud and wire fraud conspiracy and engaging in money laundering, aggravated identity theft, and witness tampering.
According to court documents and evidence presented at trial, Yogesh K. Pancholi, 43, of Northville, Michigan, owned and operated Shring Home Care Inc. (Shring), a home health company based in Livonia, Michigan. Despite being excluded from billing Medicare, Pancholi purchased Shring using the names, signatures, and personal identifying information of others to conceal his ownership of the company. In a two-month period, Pancholi and his co-conspirators billed and were paid nearly $2.8 million by Medicare for services that were never provided. Pancholi then transferred these funds through bank accounts belonging to shell corporations and eventually into his accounts in India. After being indicted, and on the eve of trial, Pancholi, using a pseudonym, wrote false and malicious emails to various federal government agencies alleging a government witness had committed various crimes and should not be allowed to remain in the United States in an attempt to keep the witness from testifying.
In September 2023, a federal jury in the Eastern District of Michigan convicted Pancholi of conspiracy to commit health care and wire fraud, two substantive counts of health care fraud, two counts of money laundering, two counts of aggravated identity theft, and one count of witness tampering.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Special Agent in Charge Cheyvoryea “Shea” Gibson of the FBI Detroit Field Office, and Special Agent in Charge Mario Pinto of the Department of Health and Human Services Office of the Inspector General (HHS-OIG) made the announcement.
The FBI Detroit Field Office and HHS-OIG investigated the case.
Trial Attorneys Shankar Ramamurthy and Andres Almendarez of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Government Contractors Agree to Pay $3.9 Million to Resolve Claims of Misrepresenting Women-Owned Small Business StatusRead the Press Release
ALEXANDRIA, Va. – QuarterLine Consulting Services, LLC, and its parent company, Planned Systems International, Inc. (PSI), both located in Arlington, agreed to pay $3.9 million to resolve allegations that QuarterLine made false statements about its women-owned small business (WOSB) status to obtain a Defense Health Agency (DHA) task order that was set aside for WOSBs to provide physicians to an Air Force military treatment facility.
“This settlement demonstrates my office’s commitment to ensuring a fair and honest playing field for companies who are called on to support the Department of Defense, and in this case, provide medical care to those serving our country,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia.
“The Defense Criminal Investigative Service is committed to rooting out fraud and corrupt schemes, which undermine the integrity of the Department of Defense procurement process,” said Christopher Dillard, Special Agent in Charge, Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office. “DCIS working together with its law enforcement partners will continue to ensure the DoD contracting process remains fair and competitive.”
“Government contractors are expected to be honest in their dealings with the government,” said Floyd Martinez, Special Agent in Charge, General Services Administration (GSA) Office of Inspector General. “GSA OIG special agents and our investigative partners are committed to holding accountable those who misrepresent themselves in order to obtain federal contracts.”
“This is the latest example of the dedication and relentless focus of Criminal Investigation Division Special Agents coupled with the wide network of partnerships with military investigation organizations and federal law enforcement partners,” said Special Agent in Charge Keith K. Kelly, of Department of the Army Criminal Investigation Command’s Fraud Field Office.
In July 2017, QuarterLine was awarded an indefinite delivery/indefinite quantity (IDIQ), multiple-award contract through the DHA. The DHA IDIQ allowed small businesses to compete for task orders to provide physician, nursing, and ancillary services to supplement the medical staff at military treatment facilities throughout the country. Federal agencies could further set aside task orders for participants in the SBA’s WOSB Federal Contract program or other socioeconomic programs to help the agency meet its small business contracting goals.
At the time of the DHA IDIQ award, QuarterLine was a WOSB and eligible to compete for set-aside task orders. In December 2018, QuarterLine was acquired by PSI, which caused QuarterLine to forfeit its WOSB status. QuarterLine was required to update its size certifications in GSA’s System for Award Management (SAM) within 30 days of the acquisition.
In January 2019, the Air Force issued a task order proposal request through the DHA IDIQ for physician-anesthesiologists to support the military treatment facility at Joint Base San Antonio. The task order was set aside for women-owned small businesses. The United States alleged that QuarterLine submitted a proposal for the task order in which QuarterLine falsely represented that it was a WOSB and that its SAM representations were current, complete, and accurate. The United States also alleged that QuarterLine submitted false representations about its size status in response to requests from the task order’s contracting official. Based on QuarterLine’s representations, the Air Force awarded the task order to QuarterLine.
PSI and QuarterLine agreed to pay $3.9 million to resolve the United States’ claims that they misrepresented QuarterLine’s WOSB status to obtain the task order. The civil claims are allegations only; there has been no admission of liability. PSI and QuarterLine provided substantial cooperation during the investigation.
The settlement arises in connection with a lawsuit filed under the whistleblower provision of the False Claims Act. A whistleblower suit, or qui tam action under the False Claims Act, is commenced by an individual filing a complaint under seal in the U.S. District Court and providing a copy of the complaint and evidence to the U.S. Attorney’s Office. The United States then has an opportunity to investigate the claims. The False Claims Act provides whistleblowers with a share of the government’s recovery.
The outcome in the case was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the U.S. Department of Defense Office of Inspector General, DCIS, the U.S. Air Force Office of Special Investigations, Army CID, and GSA’s Office of Inspector General.
The case was prosecuted by Assistant U.S. Attorney William Hochul III and assisted by Forensic Auditor Peter Melaragni.
The case caption is United States ex rel. The Arora Group, Inc. v. Planned Systems International, Inc., No. 1:21-cv-657 (E.D. Va.). A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Gloucester County Man Sentenced to Four Years in Prison for Filing False Tax ReturnsRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man was sentenced today to 48 months in prison for filing false claims against the IRS, U.S. Attorney Philip R. Sellinger announced.
Christian L. Whittaker, 43, of Williamstown, New Jersey, previously pleaded guilty before U.S. District Judge Christine P. O’Hearn to one count of an indictment charging him with making false claims against the IRS. Judge O’Hearn imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Whittaker knowingly and willfully prepared, electronically signed, and filed with the IRS false U.S. Individual Income Tax Returns (Forms 1040) for the tax years 2016 to 2019. Whittaker claimed that a business paid him significant wages and incurred substantial losses, when in fact the business was fictitious. Based on the false claims, the IRS paid more than $300,000 in refunds to Whittaker. More than $80,000 was paid by the IRS and garnished to pay debts that Whittaker had previously incurred.
In addition to the prison term, Judge O’Hearn sentenced Whittaker to three years of supervised release and ordered restitution of $390,682.
U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Daniel A. Friedman and Andrew D’Aversa of the U.S. Attorney’s Office’s Criminal Division in Camden.
Gainesville Man Sentenced to 320 Months in Federal Prison for Production and Distribution of Child PornographyRead the Press Release
GAINESVILLE, FLORIDA – Justin Ray Crosby, 25, of Hawthorne, Florida, was sentenced to 320 months imprisonment for one count of production of child pornography and 240 months imprisonment for one count of distribution of child pornography, the terms to run concurrent with each other. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“Crimes against children are among the most heinous types of offenses and deserving of the most significant sentences,” said U.S. Attorney Coody. “Those who produce child pornography facilitate the abuse of children and rob them of not only of their innocence but their very childhood. We will continue to work tirelessly with our law enforcement partners to investigate and vigorously prosecute those who engage in such vile conduct.”
In July 2022, law enforcement officers in Gainesville, Florida began an investigation related to the distribution of an image depicting the sexual abuse of a 12-year-old minor child on an instant messaging app. Investigators determined the child resided in Gainesville, Florida. The child was interviewed, and several social media accounts and electronic devices were obtained and examined, leading to Crosby’s identification. Investigators determined Crosby had met with the child on several occasions, and in one instance he filmed himself engaged in sexual contact with the child. He later distributed the video on an instant messaging application.
Crosby’s prison sentence will be followed by a lifetime of supervised release. He was ordered to pay $20,000 in restitution to the victim. Crosby will also be required to register as a sex offender and be subject to all sex offender conditions.
The case was investigated by Internet Crime Against Children Task Force Gainesville Police Department. Assistant United States Attorney Frank Williams 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 and led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), it marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Four Massachusetts State Troopers, Two Others Arrested for Alleged Bribery ConspiracyRead the Press Release
BOSTON – Two current and two former Massachusetts State Police (MSP) troopers are among six charged in a 74-count indictment in connection with an alleged conspiracy to falsify records and give passing scores to certain Commercial Driver’s License (CDL) applicants, including individuals who had failed or did not take the CDL skills test, in exchange for bribes.
The following individuals have been indicted on three counts of conspiracy to falsify records; three counts of conspiracy to commit extortion; three counts of extortion; six counts of honest services mail fraud; 31 counts of falsification of records; 27 counts of false statements; and one count of perjury:
- Gary Cederquist, 58, of Stoughton;
- Calvin Butner, 63, of Halifax;
- Perry Mendes, 63, of Wareham;
- Joel Rogers, 54, of Bridgewater;
- Scott Camara, 42, of Rehoboth; and
- Eric Mathison, 47, of Boston.
Butner and Mendes were arrested yesterday in Southern and Middle District of Florida, respectively. They will appear in federal court in Boston at a later date. The remaining defendants were arrested this morning and will appear in federal court in Boston at 2 p.m. this afternoon.
According to the charging document, MSP Sergeant Cederquist was in charge of MSP’s CDL Unit, of which Trooper Rogers and retired Troopers Butner and Mendes were members.
Members of MSP’s CDL Unit were responsible for administering CDL skills tests. Test requirements for CDLs are established by the Federal Motor Carrier Safety Administration, which is part of the U.S. Department of Transportation. The CDL skills test is a demanding, in-person test that consists of three segments: Vehicle Inspection, in which an applicant is tested on their knowledge of the vehicle; Basic Control Skills, in which an applicant is tested on their ability to perform certain maneuvers; and the Road Test, in which an applicant is tested on their ability to drive a commercial vehicle on an open roadway.
In Massachusetts, the pass rate was 48% in 2019, 44% in 2020, 41% in 2021 and 41% in 2022. Test scores reported by members of MSP’s CDL Unit are material to whether applicants meet federal requirements for, and therefore whether the Registry of Motor Vehicles (RMV) is permitted to issue said applicants, CDLs. Class A CDLs are required to drive combination vehicles (e.g., tractor-trailers). Class B CDLs are required to drive heavy single vehicles (e.g., box trucks, school buses).
According to the charging document, between in on or about May 2019 and January 2023, Cederquist, Butner, Mendes, Rogers and others conspired to give preferential treatment to at least 17 CDL applicants by agreeing to give passing scores on their skills tests whether or not they actually passed, using the code word “golden” to identify these applicants who received special treatment. The indictment alleges that the following texts, some by Cederquist and others by Butner, were sent about some of these applicants:
- “Your buddy passed yesterday he owes you that’s an automatic Fail leaving the door open!!!;”
- “This guys a mess. Lol. He owes u a prime rib 6inch. 4 compounds and no watch;”
- “Your buddy is a mess. He owes you big time. He will be fine though. Anything for you;”
- “Golden mess. ??????;”
- “He’s a mess Class A truck 2psi loss with truck running truck cut our again while timing ????;” and
- “Total mess this guy I think some time we should just do what we can but not golden.”
Each of these applicants received a passing score on their skills test.
Additionally, it is alleged that Cederquist gave preferential treatment to four Class A CDL applicants who were MSP Troopers by falsely reporting that each trooper took and passed a Class A skills test. In reality, however, it is alleged that the Troopers did not pass the skills test and that they drove a vehicle which did not qualify as a Class A vehicle. It is alleged that Cederquist conspired with his friend Camara, who worked for a truck-driving school in Brockton, to accomplish this offense.
It is further alleged that Cederquist conspired with his friend Mathison, who worked for a spring water company that employed drivers who needed CDLs, to give passing scores to certain applicants affiliated with the water company. The indictment alleges that Cederquist gave passing scores to three such applicants who actually failed, in exchange for bribes of free inventory from the water company, such as cases of bottled Fiji, VOSS and Essentia water, cases of bottled Arizona Iced Tea, and coffee and tea products, all of which Mathison delivered to an office trailer at the CDL test site in Stoughton. The indictment alleges that Cederquist sent Mathison a text describing one of these applicants as “an idiot,” who had “no idea what he’s doing,” and “should have failed about 10 times already.” It is alleged that Cederquist then texted Mathison that Mathison’s boss “owes big time.”
The indictment also alleges that Butner assisted with this conspiracy, including by giving Mathison a key to the Stoughton yard so that Mathison could drop off water company inventory even when the test site was closed. The indictment alleges that Mendes also took part in the conspiracy, including by accepting cases of Fiji and VOSS water from Mathison immediately after administering an incomplete skills test to a new driver for the water company, with Mathison helping to put the cases in Mendes’s cruiser. It is alleged that on one occasion Mathison texted Cederquist that he was heading to the water company’s warehouse in Bridgewater, writing: “Was heading to Bridgewater seeing if you all need anything on return trip. Did you get a new key for the midnight express,” to which Cederquist replied, “Not yet but I need Voss and Italian toast espresso and some decaf for an old timer at the office.”
According to the charging document, in addition to Mathison’s bribes of free inventory from the water company, Cederquist accepted additional bribes in exchange for using his official position as the Sergeant in charge of MSP’s CDL Unit to give preferential treatment to certain CDL applicants including, but also a $750 granite post and mailbox; a new driveway valued at over $10,000; and a snow blower valued at nearly $2,000. The indictment alleges that Cederquist described one such applicant as “horrible,” and “brain dead,” but gave him a passing score anyway in exchange for the snow blower.
All CDL recipients identified as not qualified in the course of this investigation have been reported to the Massachusetts Registry of Motor Vehicles.
The investigation remains ongoing.
The charges of conspiracy to falsify records each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of conspiracy to commit extortion each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of extortion each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of honest services mail fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of falsification of records each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of false statements each provide for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of perjury provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; and Christopher A. Scharf, Special Agent in Charge, U.S. Department of Transportation Office of Inspector General, Northeast Region made the announcement today. Assistant U.S. Attorneys Christine J. Wichers and Adam W. Deitch of the Public Corruption & Special Prosecutions Unit are prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fort Wayne Man SentencedRead the Press Release
FORT WAYNE – On January 25, 2024, Donald E. James, age 65, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to bankruptcy fraud, announced United States Attorney Clifford D. Johnson.
James was sentenced to 24 months of probation.
According to documents in the case, on or about October 9, 2018, James lied in relation to his bankruptcy case filed in the United States Bankruptcy Court for the Northern District of Indiana. James falsely stated on the Voluntary Petition of Individuals Filing for Bankruptcy, that he had not filed for bankruptcy within the last 8 years and falsely stated that he had received a briefing from an approved credit counseling agency within 180 days before the filing of the petition, both which were not true.
This case was investigated by the Internal Revenue Service, Criminal Investigation Division with assistance from the Northern Indiana Bankruptcy Fraud Working Group coordinated by Region 10 U.S. Trustee Nancy J. Gargula. The case was prosecuted by Assistant United States Attorney Stacey Speith.
The United States Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis with additional office in South Bend, IN and Peoria, IL.
Former Fall River Man Sentenced to Thirty -Two Months in Prison for Role in Nationwide Identity Theft Fraud SchemeRead the Press Release
PROVIDENCE, RI – A former Fall River resident was sentenced today in federal court in Boston in connection with a nationwide conspiracy to open fraudulent driver accounts with rideshare and delivery service companies.
Caio Felipe Oliveira Dos Santos, 27, of Brazil, was sentenced by U.S. Chief District Court Judge F. Dennis Saylor IV to 32 months in prison to be followed by three years of supervised release. In October 2023, Dos Santos pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft.
From approximately January 2019 until April 2021, Dos Santos and others conspired to use stolen identities and/or falsified documents to open fraudulent driver accounts and/or rent or sell those accounts to individual drivers who might not otherwise qualify to drive for the rideshare or delivery services. Co-conspirators exploited referral bonus programs offered by the rideshare and delivery companies and used “bots” and GPS “spoofing” technology to increase the income earned from the companies. As a result of the scheme, Internal Revenue Service Forms 1099 were generated in victims’ names for income co-conspirators earned from the rideshare and delivery companies.
Dos Santos and his co-conspirators also used victims’ identifiers to apply for driver accounts with the rideshare and delivery companies, enabling Dos Santos and his co-conspirators to pass those companies’ required background checks and create driver accounts in victims’ names. At times, co-conspirators edited victims’ driver’s license images to display photos of the drivers renting or buying the fraudulent accounts in order to circumvent facial recognition technology that the rideshare and delivery companies used as a security measure. Dos Santos and his co-conspirators obtained victims’ names, dates of birth, driver’s license information, and/or Social Security numbers from co-conspirators and other sources, including sites on the Dark Net. They also obtained driver’s license images directly from victims, by photographing victims’ licenses while completing an alcohol delivery through one of the services.
Eighteen co-conspirators were indicted in connection with the scheme in May 2021. Fifteen of those defendants have been arrested, while three remain at large. Of those arrested, 14 have been convicted and sentenced. If you believe that you may be a victim of the allegations in this case, please visit: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/us-v-wemerson-dutra-aguiar-and-us-v-priscila-barbosa-et-al.
United States Attorney Zachary Cunha and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by Massachusetts State Police; U.S. Customs and Border Protection; U.S. Postal Inspection Service; National Crime Insurance Bureau; and the Concord, Lexington, Plymouth, Wilmington, Marlborough and Village of Rye Brook (N.Y.) Police Departments. Assistant U.S. Attorneys Kristen A. Kearney and David M. Holcomb of the District of Massachusetts Securities, Financial & Cyber Fraud Unit prosecuted the case.
Mr. Cunha was assigned to oversee this matter by the Department of Justice upon recusal of the U.S Attorney for the District of Massachusetts.
###
Florida man pleads guilty to production of images of child sexual abuse, and traveling to sexually assault a minorRead the Press Release
Tacoma – A 42-year-old New Port Ritchey, Florida, man pleaded guilty today in U.S. District Court in Tacoma to production of child pornography and interstate travel with intent to engage in a sexual act with a minor, announced U.S. Attorney Tessa M. Gorman. Samuel Aaron Leonard was arrested July 2, 2020, in Vancouver, Washington, just outside the home of the 14‑year-old girl he had spent months enticing online for sexual abuse. Leonard communicated with the girl on a number of social media platforms and represented to the girl that he was 20 years old. Leonard is scheduled for sentencing by U.S. District Judge Benjamin H. Settle on April 15, 2024.
According to records filed in the case, Leonard contacted the girl via a social media platform around April 1, 2020. Over the next few months, Leonard communicated with the girl on various social media sites and sent her a cell phone so that they could communicate by text and telephone. Unbeknownst to the girl, Leonard had installed tracking and surveillance software in the phone so that he could monitor her location and read her texts and emails. Leonard turned the conversations with the girl to a sexual nature and convinced her to send various sexually explicit photos.
The girl’s guardians became aware of the communication and contacted police in late June 2020. Law enforcement immediately seized both phones that the teen had been using to communicate and had an undercover officer take over the communication. Analyzing the communications and the cell phone information, the investigation revealed that Leonard had traveled from Florida to the Vancouver area via bus and was within a short bike ride of the girl’s home. When the officer, posing as the girl, revealed that the girl’s guardian had taken the phone Leonard had sent to her, Leonard said he would get her a new one. Police surveilled Leonard as he took a newly purchased phone, hid it in a package, and tossed the package over the fence to the girl’s backyard. Leonard was arrested shortly afterwards.
A search of Leonard’s hotel room revealed that he had a number of items used to restrain someone, such as ten sets of flex cuffs and two sets of metal handcuffs, as well as duct tape and electrical tape. He also had various sex toys and lubricants. In the plea agreement Leonard admits that in 2018 he traveled to Oklahoma to sexually assault a 16-year-old. Leonard’s phone contained videos of that sexual assault.
Production of child pornography is punishable by a mandatory minimum 15 years in prison and up to 30 years in prison. Interstate travel to engage in sex acts with a minor is punishable by up to 30 years in prison.
Under the terms of the plea agreement, both prosecutors and defense will recommend a prison term of 20 years. Prosecutors will argue for a lifetime term of supervised release to follow prison. Judge Settle is not bound by the recommendations and can impose any sentence allowed by law. Leonard will be required to register as a sex offender.
The case was investigated by Homeland Security Investigations (HSI), the Vancouver Police Department, and Kalama Police Department.
The case is being prosecuted by Assistant United States Attorneys Kristine Foerster and Sean Waite with assistance from the Clark County Prosecuting Attorney’s Office.
Florida Man Sentenced to 25 Years for Distributing MethamphetamineRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Ronnie Lee Seward (41, Seffner) to 25 years in federal prison for possessing with the intent to distribute methamphetamine. Seward entered a guilty plea on September 20, 2023.
According to court documents, on January 12, 2023, the Tampa Police Department and the Drug Enforcement Administration executed a search warrant at an apartment in South Tampa where Seward had just delivered methamphetamine to a co-defendant, Sean Barton. Seward was detained and ultimately arrested after law enforcement discovered over a half-kilogram of methamphetamine in Seward’s vehicle. Seward had previously served three separate state prison sentences in Florida. His prior convictions include lewd and lascivious molestation, felony battery, armed trafficking in amphetamine, trafficking in amphetamine, and felon in possession of a firearm, among others.
Barton previously pleaded guilty to possessing with the intent to distribute a mixture and substance containing a detectable amount of methamphetamine. He faces up to 20 years in federal prison. His sentencing hearing is scheduled for May 1, 2024.
This case was investigated by the Tampa Police Department and Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney David P. Sullivan.
Florida Man Arrested for Role in Multimillion-Dollar Medicare Scheme Based on Fraudulent Billing for Durable Medical EquipmentRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the arrest of ALAN SWISS on charges of health care fraud and conspiracy to violate the Anti-Kickback Statute. SWISS is the third defendant charged, following the arrests in December of co-defendants ERIN FOLEY and TED ALBIN. As alleged in a four-count Indictment unsealed today, SWISS ran two medical supply companies that illegally submitted more than $17 million in claims to Medicare, submitting those claims through a Medicare billing company run by FOLEY and ALBIN. FOLEY and ALBIN are charged with using that billing company to bill Medicare for more than $25 million in fraudulent claims for durable medical equipment (“DME”), on which Medicare and related private insurers paid out more than $9 million.
SWISS was presented this morning before U.S. Magistrate Judge William Matthewman in West Palm Beach, Florida, and ordered to appear again in the West Palm Beach federal courthouse on February 5 for a removal hearing. In Manhattan, the case is assigned to U.S. District Judge John G. Koeltl.
U.S. Attorney Damian Williams said: “As alleged, the defendants devised a scheme to get rich quick by fraudulently billing Medicare, a taxpayer-funded service, for medical equipment. Their alleged scheme bilked taxpayers of millions of dollars, and fraudulent practices such as this can drive up the cost of health care for everyone. Close watch for fraud must be paid to our taxpayer-funded programs to ensure fairness for all Americans who rely on these critical systems for medical care.”
According to statements made in court and publicly filed documents in this case:[1]
From approximately 2016 through April 2019, SWISS operated Tropical Medical Marketing, Inc., a call center which cold-called Medicare beneficiaries and used their personal and medical information without the beneficiaries’ knowledge or consent to prepare orders for DME. SWISS then sold these DME orders to co-conspirators who illegally obtained purported signatures or “authorizations” of health care providers so that fraudulent claims could be submitted to Medicare for reimbursement.
From approximately 2017 through April 2019, SWISS also operated two DME supply companies: Modern Medical Equipment, Inc., which SWISS used primarily to bill Medicare directly under Medicare Part B, and A&E Medical, Inc., which SWISS used primarily to bill private insurance companies under Medicare Part C, also known as “Medicare Advantage.” To obtain the DME orders that SWISS used to support his unlawful claims to Medicare, SWISS used two unlawful methods: (i) purchasing such orders outright, and (ii) using patient information that SWISS had generated through his call center and purchasing the purported signatures or authorizations of health care providers. SWISS caused the two DME supply companies that he controlled to submit claims to Medicare for more than $17 million — through the billing company operated by FOLEY and SWISS — on which Medicare paid out nearly $5 million.
FOLEY and ALBIN owned and controlled Grapevine Professional Services, Inc. (“Grapevine”), a billing company that they used to bill Medicare for more than $25 million, and to collect more than $9 million, through claims based on orders for DME that had been unlawfully sold and bought. Most of these unlawful purchases of DME orders were by Grapevine customers that were registered with Medicare as DME supply companies. Additional unlawful purchases were made directly by FOLEY and ALBIN through three DME supply companies that they themselves owned and controlled. Once these DME orders were unlawfully purchased, FOLEY and ALBIN used those orders as the basis for fraudulent claims to Medicare and to private insurers covered by Medicare Part C. Approximately 70% of the fraudulent billing submitted by Grapevine came from the two DME supply companies controlled by SWISS.
In addition, FOLEY and ALBIN acted as brokers of DME orders, introducing Grapevine customers who wished illegally to buy DME orders to co-conspirators who illegally sold them orders. In return for such introductions of buyers to sellers, FOLEY and ALBIN received additional kickbacks, both in the form of cash and in the form of additional DME orders. FOLEY and ALBIN also profited through these introductions by gaining additional illegal billing business for Grapevine. Following these introductions, FOLEY and ALBIN continued to oversee the relations between buyers and sellers of DME orders, for example by tracking how many orders particular sellers owed to particular buyers.
* * *
SWISS, 51, of West Palm Beach County, Florida, is charged with conspiracy to commit health care fraud and wire fraud, which carries a maximum sentence of 20 years in prison; health care fraud, which carries a maximum sentence of 10 years in prison; wire fraud, which carries a maximum sentence of 20 years in prison; and conspiracy to violate the Anti-Kickback Statute, which carries a maximum sentence of five years in prison.
The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the U.S. Department of Health and Human Services, Office of the Inspector General.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys David Raymond Lewis and Rushmi Bhaskaran are in charge of the prosecution.
The charges contained in the Indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
[1] The Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Final Defendant in Online Romance Scam Sentenced to 72 Months’ Imprisonment, Ordered to Pay $6.4M in Restitution JointlyRead the Press Release
SALT LAKE CITY, Utah – Nelly Idowu, 39, of Provo, Utah, was sentenced today to six years’ imprisonment followed by three years’ supervised release, after a federal jury found her guilty of one count of money laundering conspiracy and two counts of money laundering in an online romance scam. Idowu is one of four defendants sentenced in a two-year scheme that cost victims over $6 million.
According to the evidence presented at trial, from 2017 to 2019 Idowu participated in an online romance scheme that involved creating fake online dating profiles to befriend and romance victims. Idowu, and her co-conspirators, led these victims to believe the fake persona they were engaging with had an urgent and financial need, none of which were legitimate. The victims targeted were mostly widowed and divorced women over 65-years-old. These significant life changes often occurred very late in life after many years of being accustomed to the company and support of a partner. Many victims suffered significant financial loss in the final years of life, with some losing their entire life savings.
Codefendants Emmanuel Osaigbovo Adesotu, Nnamdi Joel Chukwu, and Julius Omene Fredrick were each previously convicted by guilty plea to a money laundering conspiracy. Adesotu was sentenced to a term of 36 months’ imprisonment, Fredrick was sentenced to a term of 46 months’ imprisonment, and Chukwu was sentenced to a term of 12 months’ imprisonment. Each defendant was ordered by the court to pay $6,444,787.16 in restitution jointly for the victims.
“Idowu and her co-conspirators preyed on unsuspecting and vulnerable victims,” said U.S. Attorney Trina A. Higgins of the District of Utah. “The defendants gained their trust and convinced them to send large sums of money, leaving many of the victims in financial despair. My office, along with our law enforcement partners, will continue to prosecute these online scams, and seek justice for the victims.”
“Scammers like Idowu know exactly how to prey on their victims’ vulnerabilities, and sadly, the financial and emotional consequences can be absolutely devastating,” said Shohini Sinha, Special Agent in Charge of the Salt Lake City FBI. “The FBI is committed to investigating these perpetrators and continuously works to raise awareness about romance scams. Think twice before you share personal information online, be wary of online suitors who are quick to establish a relationship and gain your trust, and don’t send money to someone you’ve never met. If you think you’re a victim of a romance scam, file a complaint with the FBI’s Internet Crime Complaint Center at ic3.gov.”
The investigation was conducted by the FBI Salt Lake City Field Office, Provo Resident Agency.
Assistant United States Attorneys Carl LeSueur and Mark Woolf of the U.S. Attorney’s Office for the District of Utah prosecuted the case.
The FBI encourages those engaged in online relationships to review and become familiar with information about romance scams on its website FBI.gov. Additionally, if you or someone you know has been a victim of elder fraud, help is available at the National Elder Fraud Hotline 833-FRAUD-11 or 833-372-8311 and online at the Office for Victims of Crime.