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6 March 2024
Man Convicted of Multiple Child Exploitation OffensesRead the Press Release
A federal jury convicted a Nevada man yesterday for sexually exploiting multiple minors, and advertising and distributing child sexual abuse material (CSAM) that he coerced these minors into producing.
According to court documents and evidence presented at trial, between 2018 and 2021, James Patrick Burns, 55, of Sparks, sexually exploited multiple minors online via Omegle, Snapchat, Tiktok, and Mega.NZ. Burns, a registered sex offender, threatened these minors into producing CSAM and then posted the CSAM on dark web forums. At the time, Burns was the most prolific creator of illegal content on these forums. He victimized over 100 children, many of whom have yet to be identified. Burns’ offenses came to the attention of law enforcement when a mother of one of his victims saw threats on the victim’s phone and reported what she saw to the police.
The jury convicted Burns of eight counts of sexual exploitation of a minor, eight counts of coercion and enticement of a minor, and one count each of advertising, receiving, distributing, and possessing child pornography. In a separate trial, the jury also convicted Burns of committing specified felony offenses (from the first trial) while required to register as a sex offender.
Burns is scheduled to be sentenced on June 10. He faces a mandatory minimum of at least 25 years in prison and a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Jason M. Frierson for the District of Nevada, Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division, Special Agent in Charge Spencer L. Evans of the FBI Las Vegas Field Office, and Special Agent in Charge Christopher Miller of Homeland Security Investigations (HSI) Las Vegas made the announcement.
The FBI-led Northern Nevada Child Exploitation and Human Trafficking Task Force, which is comprised of detectives and investigators from the Sparks Police Department, Washoe County Sheriff’s Office, Nevada Attorney General’s Office, and HSI, investigated the case. The Los Angeles County Sheriff’s Office, HSI Chicago Field Office, and local law enforcement around the country provided substantial assistance.
Trial Attorney Rachel L. Rothberg of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Andolyn R. Johnson for the District of Nevada are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Lower Brule Man Sentenced for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Lower Brule, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on March 4, 2024.
Garrett Goodlow, age 26, was sentenced to six years and eight months in federal prison, followed by three years of supervised release, $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Goodlow was indicted by a federal grand jury in July of 2023. He pleaded guilty on November 30, 2023.
The conviction stemmed from a conspiracy beginning in February of 2022 when Goodlow knowingly and intentionally conspired and agreed with others to distribute methamphetamine in and around the central South Dakota area, including on the Lower Brule and Crow Creek reservations. Goodlow received distributable quantities of methamphetamine and re-distributed it. During the course of the conspiracy, a traffic stop occurred on February 28, 2023, where Goodlow was arrested after over a pound of methamphetamine was located in his vehicle.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the FBI, and the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Goodlow was immediately remanded to the custody of the U.S. Marshals Service.
Level-2 Sex Offender Pleads Guilty to Possessing Child PornographyRead the Press Release
BOSTON – A Chelsea man pleaded guilty today to possessing child sexual abuse material (CSAM).
Lasall Johnson, 55, pleaded guilty to one count of possession of child pornography before U.S. District Court Judge Leo T. Sorokin who scheduled a sentencing for June 5, 2024. Johnson was charged by criminal complaint in March 2023 and subsequently indicted by a federal grand jury in April 2023.
Johnson was identified as a user in an online peer to peer file sharing network exchanging CSAM. During a search of Johnson’s residence, six electronic devices were seized from his bedroom. Forensic examination of the devices recovered hundreds of CSAM image and video files.
In 1989, Johnson was convicted in Norfolk County Superior Court of two counts of assault to rape, for which he received a 20-year state prison sentence with two years committed and the balance suspended for 18 years. As a result of those convictions, Johnson is a Level-2 registered sex offender.
Due to Johnson’s prior convictions, the charge of possession of child pornography provides for a mandatory minimum sentence of 10 years and up to 20 years in prison, at least five years and up to a lifetime 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 Chelsea Police Chief Keith Houghton made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of the Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Leominster Man Sentenced to Six Years in Prison for Drug OffensesRead the Press Release
BOSTON – A Leominster was sentenced today in federal court in Worcester for possessing large quantities of counterfeit Adderall pills containing methamphetamine intended for distribution.
Chanhda Onesyvieng, 49, was sentenced by U.S. District Court Judge Margaret R. Guzman to six years in prison followed by three years of supervised release. In July 2023, Onesyvieng pleaded guilty to possession with intent to distribute methamphetamine.
In early April 2023, Onesyvieng was identified as a drug distributor who was distributing significant quantities of counterfeit Adderall pills containing methamphetamine in Rhode Island. On April 28, 2023, approximately two kilograms of counterfeit Adderall pills containing methamphetamine and approximately 135 grams of cocaine were seized from Onesyvieng’s vehicle during a traffic stop in Worcester. A subsequent search of the defendant’s residence in Leominster resulted in the seizure of approximately one kilogram of counterfeit Adderall pills containing methamphetamine, approximately one kilogram of cocaine and approximately $60,000 in cash.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and John. E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Danial E. Bennett of the Worcester Branch Office prosecuted the case.
Leesburg man pleads guilty to COVID relief fraud schemeRead the Press Release
ALEXANDRIA, Va. – A Leesburg man pleaded guilty today to wire fraud for his scheme to defraud a federal COVID-19 relief plan.
According to court documents, Russell Laraway, 56, an Army Reserve officer, incorporated two business entities in Virginia that he purported to operate out of his home in Leesburg: Loudoun Innovation LLC (“LI LLC”) and Commonwealth Commerce LLC (“CC LLC”). Beginning in April 2020, Laraway submitted loan applications through the Paycheck Protection Program (PPP), a COVID-19 relief program that was intended to provide loans backed by the Small Business Administration to certain businesses, nonprofit organizations, and other entities to help them retain their employees or stay afloat during the pandemic. In his applications, Laraway inflated the numbers of people his business entities employed and falsified payroll expenses and revenues for each company.
Laraway sought loan forgiveness for some of the PPP loans by falsely certifying that the PPP money had been used solely for payroll or other authorized purposes, while he actually intended to use the money to engage in spurious investment ventures and pay off personal debts. Laraway fraudulently received two PPP loans for LI LLC and two PPP loans for CC LLC. The four PPP loans totaled approximately $488,952, some of which Laraway paid to foreign entities in scams of which he was a victim.
Laraway is scheduled to be sentenced on July 25. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Christopher Dillard, Special Agent in Charge for the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service’s Mid-Atlantic Field Office; and David J. Scott, Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division, made the announcement after U.S. District Judge Patricia Tolliver Giles accepted the plea.
Assistant U.S. Attorney Katherine E. Rumbaugh for the Eastern District of Virginia is prosecuting 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. 1:24-cr-44.
Keystone Heights Multi-Convicted Felon Arrested for Possession of Ammunition by A Convicted FelonRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Allen Tereal Grimes (33, Keystone Heights) with possession of ammunition by a convicted felon. If convicted, Grimes faces up to 15 years in federal prison. The indictment also notifies Grimes that the United States intends to forfeit ammunition, which is alleged to be traceable to his offense. Grimes made his initial appearance in federal court on March 4, 2024, and was ordered detained.
According to the indictment, on August 11, 2023, Grimes was in possession of Winchester 9mm ammunition. At the time of the incident, Grimes had seven prior felony convictions, including battery on a law enforcement officer, resisting arrest with violence, fleeing and eluding a police officer, felony battery, and assault with intent to commit to a felony. As a previously convicted felon, Grimes is prohibited from possessing a firearm or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Clay County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives – Jacksonville Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
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.
Justice Department Sues to Shut Down Michigan Return PreparersRead the Press Release
The Justice Department filed a complaint today seeking to bar several Michigan tax return preparers from owning or operating a tax return preparation business and preparing tax returns for others.
The civil complaint against J&A Tax Services LLC, doing business as Equitax; Anne Heibeck aka Ann Marie Dziergas; Crystal Patrick; Debra Washington; Kianna Dancy; Sade Cooper and Tasha Washington was filed in the U.S. District Court for the Eastern District of Michigan.
The complaint alleges that the defendants, using a variety of schemes, knowingly took unreasonable or incorrect positions on tax returns they prepared that resulted in understating their customers’ tax liabilities or overstating the amount of refunds their customers were entitled to receive. The complaint alleges that the defendants prepared customers’ returns that included various false or fabricated deductions and credits, including falsely reporting business income or loss on Form 1040 Schedule C, either by reporting fictitious sole proprietorships or by manipulating authentic sole proprietorship income and expenses, fabricated child and dependent care expenses, fictitious credits for education expenses and false COVID-19 sick and family leave credits.
The government further alleges that in 2022 alone, the defendants filed 865 returns, with at least 98% of the returns claiming a refund. By repeatedly reducing their customers’ tax liabilities or inflating their customers’ refunds, the complaint alleges that defendants harmed the United States through, among other things, the significant loss in tax revenue, estimated at over $2 million for the 2021 tax year alone.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
J&A file stamped complaint.pdfJustice Department Sues New Mexico Property Manager for Sexually Harassing TenantsRead the Press Release
The Justice Department filed a lawsuit today against Ariel Solis Veleta, of Albuquerque, New Mexico, for sexually harassing female tenants in violation of the Fair Housing Act (FHA). Solis was employed as a leasing agent and property manager at St. Anthony Plaza Apartments in Albuquerque between 2010 and 2022.
The lawsuit, filed in the U.S. District Court for the District of New Mexico, alleges that between 2010 and 2022, Solis requested sex acts from female tenants, subjected female tenants to unwelcome sexual touching, made unwelcome sexual comments and advances to female tenants, locked female tenants in his office to demand sex acts, demanded that female tenants engage in sex acts with him in order not to lose housing and entered female tenants’ homes in the guise of conducting property management work to demand sex acts.
“The Justice Department is firmly committed to holding property managers and landlords accountable when they abuse their power and prey on vulnerable tenants,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This action represents our latest effort to ensure that no one lives in fear of experiencing sexual harassment in their home.”
“Women and children deserve to live free from sexual predation,” said U.S. Attorney Alexander M.M. Uballez for the District of New Mexico. “And everybody deserves safe and affordable housing for their families. When property managers use their power over housing as a weapon to extort sexual favors from tenants, they exploit one fundamental right in order to violate another. Our office is committed to protecting both the sanctuary of the home and the basic human rights of tenants. These cases are made possible by the bravery of tenants. I thank each of the alleged victims for having the courage to come forward and to tell their story.”
“Every person deserves to feel safe in their homes without facing the threat of being sexually harassed or abused by a property manager or others who have control over housing,” said Inspector General Rae Oliver Davis of the Department of Housing and Urban Development (HUD). “Victims should not hesitate to report such harassment and abuse to law enforcement authorities. HUD’s Office of Inspector General (HUD OIG) will continue to work with our prosecutorial and law enforcement partners to hold housing providers accountable for this type of depraved conduct.”
The lawsuit also names as defendants the owners of St. Anthony Plaza Apartments, St. Anthony Limited Partnership and PacifiCap Holdings XXXVIII LLC and Solis’ employer, PacifiCap Properties Group LLC. It also seeks monetary damages to compensate persons harmed by the alleged harassment, a civil penalty to vindicate the public interest and a court order barring future discrimination.
The Justice Department and HUD OIG jointly investigated the case.
The FHA prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. It also prohibits sexual harassment, a form of sex discrimination. Individuals who believe they may have been victims of sexual harassment or other types of housing discrimination by Ariel Solis or at St. Anthony Plaza Apartments, or who have information that may be relevant to this case, may contact the Housing Discrimination Hotline at 1-833-591-0291. Individuals may also send an email to [email protected] or may submit a report online.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The initiative seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers and other people who have control over housing. Since launching the initiative in October 2017, the department has filed 39 lawsuits alleging sexual harassment in housing and recovered nearly $12 million for victims of such harassment.
Indiana Sex Offender Sentenced to 21 Months in Prison for Failure to Register in MinnesotaRead the Press Release
MINNEAPOLIS – A Bemidji man has been sentenced to 21 months in prison followed by eight years of supervised release for knowingly failing to register as sex offender as required by federal law, announced U.S. Attorney Andrew M. Luger.
According to court documents, in June 2009, Stephon Rene Jones, 34, was convicted of molesting a 7-year-old child in LaPorte County, Indiana. Based on this conviction, Jones is a Tier III sex offender under federal law. As a Tier III sex offender, Jones was aware that he was required to register as a sex offender for life and complete verification every three months. Additionally, Jones was required to provide registration updates within three days of a change of where he lived, worked, or attended school, under the Sex Offender Registration and Notification Act (SORNA). However, starting in 2018, Jones was noncompliant and evaded his registration requirement for five years after he relocated from Indiana to Minnesota. Additionally, Jones admitted that he fraudulently used aliases and others’ names and social security numbers in order to gain employment in Minnesota in 2022 and 2023, most recently at a language immersion camp.
Jones pleaded guilty on October 20, 2023, in U.S. District Court to one count of failure to register as a sex offender. He was sentenced on March 4, 2024, by Judge Katherine M. Menendez. Jones has a lifetime registration requirement as required under SORNA.
This case is the result of an investigation conducted by the U.S. Marshals Service, the FBI, and the Beltrami County Sheriff’s Office.
Assistant U.S. Attorney Hillary A. Taylor prosecuted the case.
Houghton Area Methamphetamine Trafficker SentencedRead the Press Release
Gregory James Knuuttila Sentenced to 324 Months in Prison
MARQUETTE, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Gregory James Knuuttila, of Mohawk, Michigan, was sentenced for his role in distributing methamphetamine throughout Houghton and Keweenaw Counties in Michigan’s Upper Peninsula. The Honorable Janet T. Neff, U.S. District Court Judge in Grand Rapids, sentenced Knuuttila to 324 months in prison for possession with intent to distribute 50 grams or more of methamphetamine.
“Methamphetamine continues to have devastating effects on individuals in Michigan’s Upper Peninsula,” said U.S. Attorney Mark Totten. “Gregory James Knuuttila trafficked these poisons, threatened violence, and then obstructed criminal proceedings. He now faces accountability for his crimes.”
In July 2022, members of the Michigan State Police Hometown Security Team, in collaboration with the Upper Peninsula Substance Enforcement Team (UPSET), stopped Knuuttila and a passenger as they drove through Ontonagon County. During a search of the vehicle, investigators found 207.8 grams of high-purity methamphetamine. After being charged in federal court for his involvement in methamphetamine trafficking, Knuuttila attempted to deter potential witnesses from testifying in his case.
At the sentencing hearing, Judge Neff called Knuuttila a “menace to the Upper Peninsula.” Judge Neff found during his sentencing that Knuuttila directed others to use violence to collect drug debts and possessed firearms. Judge Neff concluded Knuuttila was responsible for distributing and possessing with intent to distribute more than two pounds of methamphetamine. Judge Neff also found that while his federal charges were pending, Knuuttila attempted to obstruct justice and attempted to smuggle drugs into a jail for purposes of redistribution.
While imposing sentence, Judge Neff referred to Knuuttila’s criminal history as “atrocious” and found it “impossible to overlook the nature and extent of his criminal history.” Knuuttila had nearly unbroken involvement in the criminal justice system since he became an adult. Knuuttila’s first criminal convictions were in 1996. Over the intervening decades, he was convicted of more than twenty additional crimes, including robbery, breaking and entering, assault with a dangerous weapon, and domestic assault on two occasions. Knuuttila was nearly continuously in custody or under the supervision of a court from 1996 to 2022, when he was arrested for the offense to which he pleaded guilty in federal court.
The Upper Peninsula Substance Enforcement Team, Michigan State Police Hometown Security Team, and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorneys Hanna L. Rutkowski and Ted Greeley prosecuted the case.
Gregory James Knuuttila has been implicated in various other criminal activities throughout Houghton and Keweenaw Counties, and elsewhere. If you have additional information about Knuuttila’s criminal activities, please contact the Michigan State Police – Calumet Post at (906) 337-5145.
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Harrison County Man Admits to Selling FentanylRead the Press Release
CLARKSBURG, WEST VIRGINIA – James Edward Breeden, age 30, of Clarksburg, West Virginia, has admitted to selling fentanyl in Upshur County.
According to court documents, during a traffic stop, deputies were told Breeden was selling fentanyl in the area. Investigators searched Breeden’s motel room and found 277 fentanyl stamps.
Breeden faces up to 20 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Stephen Warner is prosecuting the case on behalf of the government.
The Upshur County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
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Gun smuggler sent to prison for second illegal re-entry convictionRead the Press Release
LAREDO, Texas – A 23-year-old Mexican man has been sentenced following another conviction for illegally re-entering the United States following an order of removal, announced U.S. Attorney Alamdar S. Hamdani.
Jose Luis Arevalo Gonzalez pleaded guilty Jan. 4.
U.S. District Judge Marina Garcia Marmolejo has now ordered Arevalo to serve 23 months in federal prison to be immediately followed by three years of supervised release. Not a U.S. citizen, Arevalo is expected to face removal proceedings following his imprisonment. At the hearing, the court heard how Arevalo was a member of the Paisas gang and was previously convicted of trafficking firearms.
In that case, law enforcement discovered Arevalo was attempting to smuggle 11 semi-automatic rifles and 85 rifle magazines into Mexico.
Arevalo was released from prison Oct. 18, 2023, and was ordered removed the following week. A week after his removal, authorities encountered Arevalo near Laredo.
Arevalo will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol conducted the investigation. Special Assistant U.S. Attorney Terence A. Check Jr. prosecuted the case.
Georgia Man Sentenced to 4.5 Years in Federal Prison for Using Stolen Credit Card Numbers to Obtain over Half a Million Dollars in Gift CardsRead the Press Release
EVANSVILLE- Yapo Jean Franck Ngbichi, 41, of Georgia, has been sentenced to 54 months in federal prison after pleading guilty to use of unauthorized access devices.
According to court documents, between December 2017 and September 2019, Ngbichi used 318 different stolen credit card numbers to purchase gift cards at Lowe’s Home Improvement stores in 28 states, including Indiana. Ngbichi conducted over 1,363 fraudulent transactions using the stolen credit card numbers, thereby causing a loss of $587,626.
On two separate occasions, Ngbichi used stolen credit card numbers to purchase four Visa gift cards valued at $200 each from Lowe’s stores located in Evansville, Indiana.
After obtaining a search warrant for Ngbichi’ s laptop, law enforcement discovered documents titled, “Everything You Wanted to Know About Instore Carding,” “Basic Mistakes That Lead to People Getting Arrested from Darknet—Free,” as well as numerous chat threads related to credit card numbers, several email fragments containing credit card numbers, and even Internet search history that included searches for “which embosser is best,” “federal charges stolen gift cards,” “federal criminal possession of forged instrument,” “possession of counterfeit credit card,” and “how long after a crime can you be charged.”
At the time of arrest, Ngbichi had a previous similar conviction in state court. In May 2018, Ngbichi was convicted in Scott County, Kentucky for attempted false making/embossing of a credit card/debit card and attempted criminal possession of a forged instrument.
“Every year, American lose billions of dollars to identity theft and fraud. This defendant alone stole nearly half a million dollars and is responsible for more than 1,300 fraudulent transactions,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Frauds such as these have lasting impacts on victim individuals and businesses. The serious federal prison sentence imposed here is a warning to others considering these schemes—the FBI, Secret Service, and U.S. Attorney’s Office are committed to unraveling financial crimes and holding fraudsters accountable.”
“The defendant wreaked havoc on the lives of those he perpetrated this financial fraud against, leaving them to pick up the pieces,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “This case highlights the strong relationships we have with our law enforcement partners in diligently pursuing those who take advantage of others through their criminal behavior.”
The FBI and United States Secret Service investigated this case. The sentence was imposed by U.S. District Court Judge Richard L. Young. Judge Young also ordered that Ngbichi be supervised by the U.S. Probation Office for 3 years following his release from federal prison and pay $587,623.91 in restitution.
U.S. Attorney Myers thanked Assistant United States Attorney Matthew B. Miller, who prosecuted this case.
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Generic Pharmaceuticals Manufacturer Pleads Guilty, Agrees to $1.5 Million Criminal Penalty for Distributing Adulterated Drugs and $2 Million to Resolve Civil Liability under the False Claims ActRead the Press Release
KVK Research Inc., a generic drug manufacturer in Bucks County, Pennsylvania, pleaded guilty today to criminal charges that it introduced adulterated drugs into interstate commerce.
A criminal information filed in federal court in Philadelphia charged KVK Research and its corporate affiliate, KVK Tech Inc., with two misdemeanor counts of introducing adulterated drugs into interstate commerce in violation of the Federal Food, Drug and Cosmetic Act (FDCA). Pursuant to a plea agreement, KVK Research pleaded guilty to the information and agreed to a proposed fine and forfeiture amount of $1.5 million.
KVK Tech agreed to a three-year deferred prosecution agreement (DPA) that will allow the company to avoid conviction on the charges in the information if it complies with the terms of the agreement, which include implementation of a compliance program designed to prevent and detect violations of federal regulations regarding current good manufacturing processes. The DPA also requires KVK Tech to engage an independent compliance monitor to evaluate the company’s corporate compliance program to address and reduce the risk of future violations.
U.S. District Judge Harvey Bartle III presided over the KVK Research plea hearing.
“Consumers have a right to expect that the drugs they purchase are safe and manufactured in compliance with the FDCA and FDA regulations,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will continue to work with FDA to prosecute companies that put consumers at risk by selling adulterated drugs.”
“Consumers in this District expect that manufacturers will adhere to FDA regulations,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “When adulterated drugs are introduced into interstate commerce, that conduct has the potential to jeopardize patient safety. This case exemplifies my office’s commitment to holding manufacturers responsible for their crimes, as well as refocusing efforts on the company’s compliance to prevent future illegal conduct. In this case, the joint efforts between the office’s criminal and civil divisions to hold defendants accountable also returned money to those federal agencies affected by the defendants’ conduct.”
“The FDA’s requirements for manufacturing generic drugs are designed to ensure that patients receive safe and effective medical treatments. Evading the FDA process and distributing adulterated drugs to U.S. consumers will not be tolerated,” said Special Agent in Charge George Scavdis of the FDA Office of Criminal Investigations, Metro Washington Field Office. “We will continue to investigate and protect the public health of the nation.”
As part of the plea agreement and the DPA, the companies admitted that between January 2011 and October 2013, KVK Tech introduced into interstate commerce at least 62 batches of adulterated hydroxyzine tablets. The tablets were manufactured with an active pharmaceutical ingredient (API) made at a foreign facility. KVK Tech failed to notify FDA or seek FDA authorization to use that facility as a source of API for its hydroxyzine products. The companies also admitted that between Feb. 27, 2019, and April 16, 2019, KVK Tech manufactured prescription drugs while failing to exercise appropriate controls over computer and related systems as required by current good manufacturing practices regulations. Under federal law, such drugs are deemed to be adulterated.
Additionally, KVK Tech agreed to pay $2 million to resolve its civil liability under the False Claims Act arising from the company’s failure to exercise appropriate controls as required by current good manufacturing practice regulations, which caused KVK Tech to introduce into interstate commerce drugs deemed to be adulterated. During the Feb. 27, 2019, through April 16, 2019, time period, KVK Tech sold the adulterated pharmaceuticals, which resulted in alleged false claims submitted to the TRICARE program, Federal Employees Health Benefits Program (FEHBP), Veterans Administration (VA) and Department of Labor, Office of Workers Compensation Programs (DOL-OWCP), in violation of the False Claims Act.
“Protecting the welfare of our nation’s military members and their families is a priority for the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General,” said Acting Special Agent in Charge Brian J. Solecki of the DCIS Northeast Field Office. “The introduction of adulterated pharmaceuticals into the TRICARE system endangers the lives of American service members and threatens our military readiness. The DCIS is committed to working with the Justice Department and our law enforcement partners to ensure that companies who engage in fraudulent activity, at the expense of the U.S. military, are investigated and prosecuted.”
“We expect manufacturers to comply with all federal laws and regulations when they are serving federal health care recipients,” said Deputy Assistant Inspector General for Investigations Conrad J. Quarles of the Office of Personnel Management Office of the Inspector General. “We applaud our investigative staff, and our law enforcement partners for their hard work protecting FEHBP enrollees and their families.”
FDA’s Office of Criminal Investigations investigated the case.
Assistant Director Ross S. Goldstein and Trial Attorney Alisha Crovetto of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys M. Beth Leahy and Patrick Murray for the Eastern District of Pennsylvania are prosecuting the case. Deputy Chief Charlene Keller Fullmer, Assistant U.S. Attorney Anthony D. Scicchitano and Auditor Dawn Wiggins for the Eastern District of Pennsylvania handled the civil case.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.
Except to the extent that the defendants’ admissions are part of its criminal resolution, the claims resolved by the civil settlement are allegations only and there has been no determination of liability.
Generic Pharmaceuticals Manufacturer Pleads Guilty, Agrees to $1.5 Million Criminal Penalty for Distributing Adulterated Drugs and $2 Million to Resolve Civil Liability under the False Claims ActRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that KVK Research Inc., a generic drug manufacturer in Bucks County, Pennsylvania, pleaded guilty today to criminal charges that it introduced adulterated drugs into interstate commerce.
A criminal information filed in federal court in Philadelphia charged KVK Research and its corporate affiliate, KVK Tech Inc., with two misdemeanor counts of introducing adulterated drugs into interstate commerce in violation of the Federal Food, Drug and Cosmetic Act (FDCA). Pursuant to a plea agreement, KVK Research pleaded guilty to the information and agreed to a proposed fine and forfeiture amount of $1.5 million.
KVK Tech agreed to a three-year deferred prosecution agreement (DPA) that will allow the company to avoid conviction on the charges in the information if it complies with the terms of the agreement, which include implementation of a compliance program designed to prevent and detect violations of federal regulations regarding current good manufacturing processes. The DPA also requires KVK Tech to engage an independent compliance monitor to evaluate the company’s corporate compliance program to address and reduce the risk of future violations.
U.S. District Judge Harvey Bartle III presided over the KVK Research plea hearing.
“Consumers in this District expect that manufacturers will adhere to FDA regulations,” said U.S. Attorney Romero. “When adulterated drugs are introduced into interstate commerce, that conduct has the potential to jeopardize patient safety. This case exemplifies my office’s commitment to holding manufacturers responsible for their crimes, as well as refocusing efforts on the company’s compliance to prevent future illegal conduct. In this case, the joint efforts between the office’s criminal and civil divisions to hold defendants accountable also returned money to those federal agencies affected by the defendants’ conduct.”
“The FDA’s requirements for manufacturing generic drugs are designed to ensure that patients receive safe and effective medical treatments. Evading the FDA process and distributing adulterated drugs to U.S. consumers will not be tolerated,” said Special Agent in Charge George Scavdis of the FDA Office of Criminal Investigations, Metro Washington Field Office. “We will continue to investigate and protect the public health of the nation.”
As part of the plea agreement and the DPA, the companies admitted that between January 2011 and October 2013, KVK Tech introduced into interstate commerce at least 62 batches of adulterated hydroxyzine tablets. The tablets were manufactured with an active pharmaceutical ingredient (API) made at a foreign facility. KVK Tech failed to notify FDA or seek FDA authorization to use that facility as a source of API for its hydroxyzine products. The companies also admitted that between Feb. 27, 2019, and April 16, 2019, KVK Tech manufactured prescription drugs while failing to exercise appropriate controls over computer and related systems as required by current good manufacturing practices regulations. Under federal law, such drugs are deemed to be adulterated.
Additionally, KVK Tech agreed to pay $2 million to resolve its civil liability under the False Claims Act arising from the company’s failure to exercise appropriate controls as required by current good manufacturing practice regulations, which caused KVK Tech to introduce into interstate commerce drugs deemed to be adulterated. During the Feb. 27, 2019, through April 16, 2019, time period, KVK Tech sold the adulterated pharmaceuticals, which resulted in alleged false claims submitted to the TRICARE program, Federal Employees Health Benefits Program (FEHBP), Veterans Administration (VA) and Department of Labor, Office of Workers Compensation Programs (DOL-OWCP), in violation of the False Claims Act.
“Protecting the welfare of our nation’s military members and their families is a priority for the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General,” said Acting Special Agent in Charge Brian J. Solecki of the DCIS Northeast Field Office. “The introduction of adulterated pharmaceuticals into the TRICARE system endangers the lives of American service members and threatens our military readiness. The DCIS is committed to working with the Justice Department and our law enforcement partners to ensure that companies who engage in fraudulent activity, at the expense of the U.S. military, are investigated and prosecuted.”
“We expect manufacturers to comply with all federal laws and regulations when they are serving federal health care recipients,” said Deputy Assistant Inspector General for Investigations Conrad J. Quarles of the Office of Personnel Management Office of the Inspector General. “We applaud our investigative staff, and our law enforcement partners for their hard work protecting FEHBP enrollees and their families.”
FDA’s Office of Criminal Investigations investigated the case.
Assistant Director Ross S. Goldstein and Trial Attorney Alisha Crovetto of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys M. Beth Leahy and Patrick Murray for the Eastern District of Pennsylvania are prosecuting the case. Deputy Chief Charlene Keller Fullmer, Assistant U.S. Attorney Anthony D. Scicchitano and Auditor Dawn Wiggins for the Eastern District of Pennsylvania handled the civil case.
Except to the extent that the defendants’ admissions are part of its criminal resolution, the claims resolved by the civil settlement are allegations only and there has been no determination of liability.
Four Individuals Arrested During Joint Law Enforcement Operation in Tuscaloosa CountyRead the Press Release
TUSCALOOSA, Ala. – A 3-month operation focused on combatting the illegal possession of “Glock switches” in the City of Tuscaloosa and surrounding areas resulted in the arrests of four individuals, announced U.S. Attorney Prim F. Escalona, Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
“Possession of a ‘Glock switch’ by an individual is a threat to the peace and safety of our communities. Our hope is that these arrests and continuing enforcement efforts across North Alabama will have a deterrent effect,” said U.S. Attorney Prim Escalona. “Our ongoing collaboration with our federal, state, and local law enforcement partners is instrumental in reducing violent crime and removing illegal firearms from our communities.”
“This operation demonstrates the effectiveness of working together to confront a growing threat to public safety,” said Tuscaloosa Police Chief Brent Blankley. “Combining resources to enforce and prosecute offenders is the most effective way to stop the threat before it becomes more widespread. These partnerships between federal, state, and local agencies will strengthen our efforts to remove dangerous firearms from our community.”
In February, nine individuals were indicted on firearm charges. Of the nine, seven individuals were indicted on charges of illegal possession of machine gun conversion devices, commonly referred to as a “Glock switch” and two individuals were indicted on charges involving straw purchases of firearms. The federal indictments are the result of collaborative efforts with the ATF, Tuscaloosa Police Department, Tuscaloosa County Sheriff’s Office, and Tuscaloosa District Attorney’s Office to identify and focus enforcement on individuals who illegally possess “Glock switches” and firearms in the Northern District of Alabama.
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.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Founder of LGBTQ+ Non-Profit Arrested, Ordered Held on Fraud and Money Laundering CountsRead the Press Release
WASHINGTON – Ruby Corado, 53, the founder of Casa Ruby, Inc., a Washington D.C.-based non-profit that provided services to the LGBTQ+ community, had her first appearance in U.S. District Court today to face charges of defrauding Paycheck Protection and the Economic Injury Disaster Loan programs, and money laundering. Corado allegedly diverted at least $150,000 of $1.3 million in taxpayer-backed emergency relief funds, intended for Casa Ruby, to private bank accounts off-shore for her personal use.
Corado is charged by complaint with bank fraud, wire fraud, laundering of monetary instruments, monetary transactions in criminally derived proceeds, and failure to file a report of foreign bank account.
According to court documents, Corado received more than $1.3 million from the Paycheck Protection Program and the Economic Injury Disaster Loan program. Instead of using the funds as she promised, Corado stole at least $150,000 by transferring the money to bank accounts in El Salvador, which she hid from the IRS. During 2022, when financial irregularities at Casa Ruby became public, Corado sold her home in Prince Georges County and fled to El Salvador. FBI agents arrested Corado on March 5, 2024, at a hotel in Laurel, Maryland, after her unexpected return to the United States. Corado is being held pending a detention hearing on Friday.
Casa Ruby effectively ceased operations in July 2022 when it shuttered its transitional housing, failed to pay its employees, and faced eviction from multiple properties for failure to pay rent.
Bank fraud carries a maximum sentence of 30 years in prison. Wire fraud carries a maximum sentence of up to 20 years in prison. The money laundering charges carry a maximum penalty of 20 years. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, a defendant’s sentence will be determined by the court based on the advisory U.S. Sentencing Guidelines and other statutory factors.
This case is being investigated by the FBI Washington Field Office and the D.C. Office of Inspector General. It is being prosecuted by Assistant U.S. Attorneys John Borchert, Madhu Chugh, and Kathryn Rakoczy.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Fort Washakie man arraigned on assault chargesRead the Press Release
Aaron Clair Bigknife, age 30, of Fort Washakie, Wyoming, was arraigned on Mar. 6 for assault with a dangerous weapon with intent to do bodily harm and assault resulting in serious bodily injury. Bigknife pleaded not guilty. A trial has been scheduled to begin on May 13 before U.S. District Court Judge Alan B. Johnson.
Bigknife was detained at the request of the government and remanded to the custody of the U.S. Marshals Service. If convicted, Bigknife faces up to 20 years in prison, six years of supervised release and up to a $500,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Michael J. Elmore.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No. 23-CR-00134
Former local non-profit VP sentenced to 3 years in prison for wire fraud, identity theftRead the Press Release
CINCINNATI – The former vice president of a Cincinnati nonprofit and manager of a purported staffing corporation was sentenced in U.S. District Court to 36 months in prison for wire fraud and aggravated identity theft.
Teela Gilbert, 37, of Cincinnati, served as the vice president, academic affairs advisor and office manager of Hope 4 Change, a nonprofit organization that provided housing and care for adults with developmental disabilities, drug addiction problems and mental disorders.
She also managed the operations of Black Wall Street Cooperative, a corporation registered with the state of Ohio that purported to create employment and business opportunities for low-income individuals.
Gilbert and co-defendant Barry Rene Isaacs – the founder, owner, CEO and president of Hope 4 Change and founder of Black Wall Street Cooperative – induced payments for false invoices to a company.
Specifically, Gilbert submitted more than 30 fraudulent invoices totaling approximately $246,000 for services not actually performed by Black Wall Street Cooperative. Her fraudulent invoices named individuals who did not work for the corporation, including the identity of one woman who had died in 2019.
According to co-defendant Isaacs’s court documents, Hope 4 Change withheld FICA taxes from its 120 to 180 employees’ paychecks but did not pay over the employment taxes to the IRS for five quarters in late 2013 and 2014. Isaacs also fraudulently applied for an auto loan and credit card using someone else’s social security account number.
Isaacs caused Hope 4 Change to spend thousands of dollars for clothing, massages, beauty care, travel and personal vehicles for Isaacs and Gilbert and their family. He was sentenced in November 2021 to 48 months in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Karen Wingerd, Acting Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Cincinnati Field Office; and the Social Security Administration Office of Inspector General announced the sentence imposed on March 5 by U.S District Judge Matthew W. McFarland. Assistant United States Attorney Ebunoluwa A. Taiwo is representing the United States in this case.
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Former College Track and Field Coach Sentenced to Five Years in Prison for Sextortion, Cyberstalking, and Cyber FraudRead the Press Release
BOSTON – A former college track and field coach was sentenced today in federal court in Boston in connection with a scheme to fraudulently obtain thousands of explicit photos from over 100 women across the country through the use of nearly two dozen sham social media and email accounts. The defendant cyberstalked one female student-athlete and orchestrated another scheme to gain unauthorized access to other victims’ Snapchat accounts.
The defendant previously worked as a track and field coach at several academic institutions, including Northeastern University, Penn State University, Illinois Institute of Technology, University of Tennessee and Concordia University Chicago.
Steve Waithe, 31, formerly of Chicago, Ill., and Somerville, Mass., was sentenced by U.S. District Court Judge Patti B. Saris to five years in prison to be followed by three years of supervised release. Among the terms of his supervised release conditions, Waithe will be prohibited from taking any jobs in which he could serve as a coach, teacher, mentor, or any similar role involving women or girls and his internet usage will be strictly monitored by probation. In November 2023, Waithe pleaded guilty to 12 counts of wire fraud; one count of cyberstalking; one count of conspiracy to commit computer fraud; and one count of computer fraud, aiding and abetting. Waithe was arrested and charged by criminal complaint in April 2021 and subsequently indicted by a federal grand jury in December 2021.
“This defendant’s conduct is deplorable. He exploited his trusted role as a coach to college athletes to engage in a sextortion campaign that has left a trail of emotional devastation in its wake. We stand by the courageous victims who came forward and help this Office hold Mr. Waithe accountable. The array of on-line threats is striking, and this Office will be vigilant in investigating and prosecuting those who sexually exploit victims,” said Acting United States Attorney Joshua S. Levy.
“The depth of deceit demonstrated by Steve Waithe in this case is deeply disturbing. This predator readily betrayed the trust of over 50 women, tricking them into sending him explicit photos which he then used to exploit and extort them. His reprehensible actions inflicted significant anguish on these victims who were living in fear of being so personally exposed,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s sentence shows that cyberstalking and sextortion is not some sick game, they’re serious crimes, and the FBI will continue to unmask and hold accountable anyone who uses today’s technology in such a vile way.”
While a track coach at Northeastern University, Waithe requested the cell phones of female student-athletes under the pretense of “filming their form” at practices and meets and then covertly sending himself explicit photos of the victims that had previously been saved on their phones.
Approximately one year later in February 2020, and after he no longer worked at Northeastern University, Waithe began perpetrating an evolving series of schemes to deceive women into sending him nude or semi-nude photos of themselves.
In total, Waithe victimized at least 56 women and attempted to victimize 72 more. Waithe used anonymized social media accounts with usernames like “anon.4887” and variations of the phrase “Privacy Protector” to contact prospective victims, including some of the same student-athletes from the Northeastern University track and field team, claiming that he had “found” compromising photos of them online and offering to “help” get the photos removed from the internet. Waithe also requested additional nude or semi-nude photos from victims that he could purportedly use for “reverse image searches.” Notably, none of the Northeastern University student-athletes were tricked by this scheme, though Waithe continued to try it on new prospective victims.
Further, Waithe fabricated at least two female personas, “Katie Janovich” and “Kathryn Svoboda,” in an effort to obtain additional nude and/or semi-nude photos of women. Under the purported premise of an “athlete research” or “body development” study, Waithe emailed prospective victims pretending to be “Katie” or “Kathryn” with email accounts in their names. The emails described a phony study for athletes and requested information relating to height, weight, body fat and diet habits. The emails also included a request for the victims to send photos of themselves in order to “track their progress” and recommended that the photos show the women in a “uniform or bathing suit to show as much skin as possible.” The emails often included attachments of sample nude and semi-nude images to illustrate the types of photos that victims should send.
Investigators identified 22 sham online accounts across at least seven different platforms used by Waithe and hundreds of photos sent by dozens of victims who thought they were emailing someone conducting a legitimate research study.
Waithe also cyberstalked one victim, from at least June 2020 to October 2020, through text messages and direct messages sent via social media, as well as by hacking into her Snapchat account. He texted and sent nude photos of the victim to the victim’s boyfriend, stating, “I wanted to make you aware that someone hacked your girlfriend’s snapchat account and will leak it soon. I need your help to assure this does not happen.” Over the course of five months, Waithe sent harassing and intimidating messages to the victim and her boyfriend. The messages included explicit photos that Waithe had stolen from the victim’s phone when she was on the track and field team at Northeastern.
In October 2020, Waithe conspired with another individual to hack into Snapchat accounts, ultimately gaining access to at least one account and its private “My Eyes Only” folder that contained nude and/or semi-nude photos. Additionally, Waithe provided his co-conspirator with the usernames and phone numbers for the Snapchat accounts of at least 15 women. Waithe and his co-conspirator then used this information to craft and send text messages purporting to be from the “Snapchat Support Team” and requesting security information, through which they gained access to at least one account.
The investigation revealed that Waithe’s internet browsing history included visits to webpages with titles like, “Can anyone trace my fake Instagram account back to me?” and “How to Hack Someones Snapchat the Easy Way.” Waithe’s search history also included searches for, among other things, “how to hack snapchat with a username and phone number.”
Waithe distributed some of the stolen images on websites where stolen and so-called “leaked” photos are posted, shared, and traded. In one post, Waithe wrote, “Does anyone want to trade nudes? I’m talking girls you actually know. Could be exes or whatever. I have quite a few and [am] down to trade over snap[chat] or something.” In total, Waithe posted or otherwise offered to trade images of victims on no fewer than 55 occasions.
After being released on conditions following his arrest in April 2021, Waithe continued to engage in virtually identical conduct while under pre-trial supervision. Specifically, Waithe accessed his Instagram account on more than a hundred occasions, soliciting new prospective victims and requesting that they send him photos of themselves via direct messages. In one Instagram conversation in late May and early June 2022 – approximately one year after his initial charge and arrest in this case, and months after being indicted by a federal grand jury – Waithe complimented a young woman via Instagram direct message and offered to pay her in exchange for allowing him to make “drawings” using photos of her. In another Instagram conversation with a separate prospective victim in June 2022, Waithe told a young woman that she is in “such great shape” and offered her $50 to participate in a “study.”
Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. The Northeastern University Police Department provided substantial assistance with the investigation. The Suffolk County District Attorney’s Office and the Chicago Police Department also provided valuable assistance. Assistant U.S. Attorney Adam W. Deitch of the Criminal Division prosecuted the case.
Former CEO of Medical Device Company Convicted of Creating and Selling A Fake Component That Was Implanted into PatientsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that a jury returned a guilty verdict today against LAURA PERRYMAN on two counts of an Indictment charging her with conspiracy to commit health care fraud and wire fraud and substantive health care fraud in connection with her company’s creation and sale of a fake medical device component. U.S. District Judge Denise L. Cote presided over the 11-day trial.
U.S. Attorney Damian Williams said: “Laura Perryman brazenly created a dummy medical device component — made entirely out of plastic — to be implanted into patients. She marketed that dummy component as a means for doctors to bill Medicare and private insurance companies approximately $18,000 for each implantation of the piece of plastic. She did this so that she could entice doctors to buy her device for many thousands of dollars. Perryman recklessly used patients as tools for financial gain, and this jury’s unanimous verdict sends a resounding message that individuals who defraud health care programs will be held criminally accountable.”
According to the allegations in the Indictment and the evidence at trial:
Stimwave was a medical device company that manufactured and distributed implantable neurostimulation devices. As the founder and CEO of Stimwave, PERRYMAN oversaw the design of the StimQ PNS System (the “Device”), pictured below, a neurostimulator system designed to treat chronic pain by providing electrical currents to peripheral nerves. The Device included a component containing electrodes (the “Lead”) and a receiver component that acted as an antenna, transmitting energy from an external power source to the Lead (the “Pink Stylet”). From at least in or about 2017 up to and including 2020, PERRYMAN, as Stimwave’s CEO, engaged in a multi-year scheme to design, create, manufacture, and market an inert, non-functioning component of the Device — called the “White Stylet.” The White Stylet was marketed as a receiver of radiofrequency energy, but it was made of plastic and could not function as a receiver.
Stimwave sold the Device to doctors and medical providers for approximately $16,000. Stimwave instructed health care providers to bill medical insurance providers, including Medicare, for implanting the Device into patients through two separate reimbursement codes. One code was for implantation of the stimulator portion of the Lead, and a second was for implantation of a receiver. The billing code for implanting the Lead provided for reimbursement at a rate of between approximately $4,000 and $6,000, while the billing code for implanting a receiver provided for reimbursement at a rate of between approximately $16,000 and $18,000.
Soon after the Device was released, physicians informed Stimwave that they were having trouble implanting the Pink Stylet in certain patients because the Pink Stylet was too long. Stimwave and PERRYMAN knew that the Pink Stylet could not be cut or trimmed to shorten it without interfering with the functionality of the Pink Stylet as a receiver. And, without a receiver component for doctors to implant and seek reimbursement for, doctors would incur a substantial financial loss with every purchase of the Device, thereby making it more difficult for Stimwave to sell the Device to doctors and medical providers at the approximately $16,000 price.
However, Stimwave — at the direction of PERRYMAN — did not lower the price of the Device so that its cost to doctors and medical providers could be covered by reimbursement for the implantation of only the Lead. Nor did PERRYMAN recommend that doctors not implant the Device or its receiver component in cases where the Pink Stylet could not fit comfortably. Instead, PERRYMAN directed that Stimwave create the White Stylet — a dummy component made entirely of plastic, but which Stimwave misrepresented to doctors as a receiver alternative to the Pink Stylet. The White Stylet could be cut to size by the doctor for use in smaller anatomical spaces and was created solely so that doctors and medical providers would continue to purchase the Device for use in those scenarios and continue to bill for the implantation of a receiver component. To perpetuate the lie that the White Stylet was functional, PERRYMAN oversaw training that suggested to doctors that the White Stylet was a “receiver,” when in fact it was made entirely of plastic, contained no copper, and therefore had no conductivity. In addition, PERRYMAN directed other Stimwave employees to vouch for the efficacy of the White Stylet as a receiver, when she knew that the White Stylet could not function as a receiver.
As a result of these misrepresentations regarding the functionality of the White Stylet, PERRYMAN caused doctors and medical providers to implant the White Stylet into patients and submit reimbursement claims for implantation of the White Stylet to health insurance providers, including Medicare.
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PERRYMAN, 55, of Delray Beach, Florida, was convicted of one count of health care fraud, which carries a maximum sentence of 10 years in prison, and one count of conspiracy to commit health care fraud and wire fraud, which carries a maximum sentence of 20 years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jacob Bergman, Mónica Folch, Steven Kochevar, and Kimberly Ravener, with the assistance of Paralegal Specialists Joseph Carbone and Benjamin Wasserburg, are in charge of the prosecution.
Former Boyle County Sheriff’s Deputy Found Guilty of Federal Civil Rights Charges following Multiple Assaults and ObstructionRead the Press Release
LEXINGTON, Ky. – A federal jury in Lexington, Kentucky, on Monday found former Boyle County, Kentucky, Sheriff’s Deputy Tanner Abbott, 31, guilty of criminal civil rights violations and obstruction of justice.
Evidence at trial proved that, during the first four months of 2021, Abbott willfully violated the civil rights of four people by using excessive force while arresting them, and obstructed justice by writing and directing another to write false reports to cover up his violations.
“We’re grateful to this jury of Kentucky citizens who held an officer accountable for repeatedly and violently brutalizing people he was arresting, even though they were not resisting arrest and did not pose a threat,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This prosecution makes clear our commitment to confronting law enforcement criminality from the bottom to the top. The Justice Department will continue to investigate and prosecute law enforcement officers who abuse their authority and violate their public trust by preying upon those they are sworn to protect.”
“This case is a disgraceful example of betrayal of trust, a profound violation of the rights of others, and a danger to our communities,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “When those charged with enforcing the law and protecting the public turn to violating the rights of others and trying to cover it up, that does real damage. It not only injures victims, but also undermines the hard work and true dedication of so many in law enforcement. The defendant will now face the consequences of such a grave betrayal of the public trust.
“Law enforcement officers are given a gun, a badge and an incredible amount of power when it comes to protecting the communities they serve,” said Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office. “Therefore, when the FBI learns of allegations of color of law violations, they are taken seriously and investigated rigorously. Through our thorough investigation of former Sheriff Deputy Abbott, and re-enforced by the jury’s guilty findings, it was found that on more than one occasion, he clearly abused his power and deprived individuals of their civil rights. Seeking justice for victims of police misconduct continues to be of the upmost importance to the FBI.”
According to evidence presented at trial, on Jan. 20, 2021, Abbott conducted a traffic stop on two young men driving to a restaurant in Danville, Kentucky. When the driver requested to speak with the defendant’s supervisor, Abbott punched him in the face, pulled him out of the car and struck him several more times as he lay on the ground, not resisting arrest or posing any threat. When the passenger, the driver’s brother, stepped out of the car and pleaded with Abbott to stop the beating, the defendant struck him in the face with an elbow, breaking his glasses.
On Feb. 2, 2021, Abbott was involved in another traffic stop during which the passenger of the stopped vehicle was arrested. While the passenger was being handcuffed, the defendant suddenly and without justification punched him in the face, although the passenger’s actions posed no threat to the defendant at the time. The defendant then conspired with another officer to write a report in which the other officer falsely alleged that the victim had advanced aggressively toward Abbott before being punched.
On March 31, 2021, the defendant went to a hotel in Harrodsburg, Kentucky, intending to search the room of a guest. He obtained a key to the room he wished to search by falsely representing to hotel staff that he had a search warrant, then used the key to force his way into the room, over the guest’s objection. Once inside, without consent or other lawful authority, he conducted an intrusive search of the guest’s personal property. Abbott then wrote a false report in which he claimed the guest had consented to the search.
On April 28, 2021, the defendant arrested a driver who had failed to pull over when the defendant attempted to conduct a traffic stop of his car. After the chase ended and the driver had been arrested and handcuffed, Abbott approached the driver and punched him in the face, although he was not resisting arrest and posed no threat to the defendant or anyone else.
The jury convicted Abbott of four counts of deprivation of rights under color of law, one count of conspiracy, and one count of falsification of records within federal jurisdiction. Abbott was also found not guilty of one count of deprivation of rights under color of law. A sentencing here is scheduled for June 7, at 10:00 AM in Lexington.
The FBI Louisville Field Office investigated the case.
Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Zachary Dembo for the Eastern District of Kentucky are prosecuting the case.
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Former Army lieutenant colonel sentenced to federal prison for possessing child pornographyRead the Press Release
MIAMI – On March 5, a former Army lieutenant colonel was sentenced to 42 months in federal prison, followed by 15 years of supervised release for possession of child pornography, after pleading guilty in December 2023.
On March 10, 2021, law enforcement officers executed a residential search warrant at home of Edgar Ali Cerda, 49, of Cooper City. An examination of Cerda’s electronic devices revealed multiple images and videos depicting sexual exploitation of children under 12 years of age, with one victim as young as two years old. Evidence also revealed that Cerda shared images within a group chat. Law enforcement officers arrested Cerda, who was home at the time.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, and Sheriff Gregory Tony of the Broward Sheriff’s Office (BSO) announced the sentence imposed by U.S. District Judge Rodney Smith.
FBI Miami and BSO investigated the case with assistance from the Florida Department of Law Enforcement (FDLE), Fort Lauderdale Police Department, and Homeland Security Investigations (HSI). Assistant U.S. Attorney Ajay J. Alexander prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), PSC 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 PSC, please visit www.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-60115.
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Former Alabama Sheriff’s Deputy Pleads Guilty to Federal Civil Rights Offense for Excessive ForceRead the Press Release
Former Elmore County, Alabama Sheriff’s Deputy Blake Hicks, 33, pleaded guilty yesterday to depriving an arrestee of his civil rights under color of law.
According to documents and statements made in court, Hicks willfully used unreasonable force against an arrestee, identified as T.Q. Specifically, without legal justification, Hicks punched and kicked T.Q. in or around the head while T.Q. was handcuffed and incapacitated on the ground. T.Q. suffered a broken cheekbone, concussion and lacerations from Hicks’ assault.
“Communities entrust law enforcement officers with upholding the rule of law,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “By physically assaulting a defenseless member of the community, Hicks violated both the victim’s fundamental constitutional rights and the community’s trust. The Justice Department will continue to ensure that law enforcement officials who abuse their powers are held accountable.”
“Maintaining law and order in a civil society requires trust in law enforcement,” said Acting U.S. Attorney Jonathan S. Ross for the Middle District of Alabama. “Breaching that trust has consequences. Civil rights violations, such as this one, makes the job of every law enforcement officer in America more challenging, and more dangerous.”
A sentencing hearing is scheduled for June 24. Hicks faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Mobile Field Office investigated the case.
Trial Attorney Laura-Kate Bernstein and Special Litigation Counsel Michael J. Songer of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Eric Counts for the Middle District of Alabama are prosecuting the case.
Florida Man Sentenced to Federal Prison for Sexual Exploitation of MinorsRead the Press Release
FLINT — Petar Vuk Pejic, 23, of Hollywood, Florida was sentenced yesterday to 30 years in federal prison on charges of sexual exploitation of a minor and distribution of child pornography, U.S. Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan, Jeffrey B. Veltri, Special Agent in Charge of the FBI’s Miami, Florida office, Sheriff Christopher R. Swanson, Genesee County Sheriff and David Leyton, Genesee County Prosecutor.
U.S. District Court Judge F. Kay Behm imposed sentence on Pejic following his guilty plea to sexually exploiting a Michigan minor and distributing child pornography that he produced of the minor. According to court documents, after Pejic met the Michigan minor online, he requested that the minor send him sexually explicit videos, and the minor complied. In February 2022, Pejic travelled from Florida to Michigan to have sex with the minor, whom Pejic knew was 12 years old at the time. Pejic then took the minor to a hotel and engaged in sexual acts with the minor, which he recorded. He subsequently distributed videos of the minor engaged in sexual conduct using the internet.
As part of his plea agreement, Pejic also admitted to using the internet to entice two other minors to engage in sexual activity. In March 2022, he travelled from Florida to the states of Oregon and Washington to engage in sexual activity with those minors, who were 14 and 15 years old at the time. Pejic also admitted to possessing, receiving, and distributing other child pornography.
Law enforcement first learned of Pejic’s activities in Michigan when the suspected sexual abuse of the Michigan minor was reported to the Genesee County Sheriff’s Office. The Sheriff’s Office, local law enforcement officers in Florida, and the FBI then worked together to arrest Pejic and investigate his sexual exploitation of children, with the additional assistance of local law enforcement officers in Oregon and Washington.
“This investigation highlights the importance of child sexual abuse reporting requirements. It was because of the initial abuse report in this case that law enforcement officers were able to identify and stop Pejic from continuing to sexually exploit children online and in person,” said United States Attorney Ison. “The strong cooperation between federal and local law enforcement partners across the country then helped bring Pejic to justice.
“The safety and security of our children remains one of the FBI’s top investigative priorities,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “With the help of our partners, we remain committed to identifying, investigating, and prosecuting those who victimize our most vulnerable. I would like to especially thank the FBI Miami Field Office and the Genesee County Sheriff’s Office for their assistance with this case.”
“The FBI will do everything in our power to protect children and punish those who prey upon society’s most vulnerable people and inflict irreparable damage upon those innocent lives,” said Jeffrey B. Veltri, Special Agent in Charge, FBI Miami Field Office. “I commend the close cooperation and professionalism we encountered with the Genesee County Sheriff’s Office, FBI Detroit, the U.S. Attorney’s Office for the Eastern District of Michigan, and the numerous other law enforcement agencies in Florida, Oregon, and Washington whose cooperation and commitment were essential for this case.”
Prosecutor Leyton stated, “This case highlights the very real and very dark side of child sexual exploitation but, at the same time, it highlights the very real and very positive side of law enforcement working together at every level from the local Sheriff and Prosecutor to federal agents and U.S. Attorneys across multiple state lines. I am proud of the work we have done together to stop this child predator in his tracks and to see justice through in a court of law.”
This investigation was conducted by the Genesee County Sheriff’s office and special agents of the FBI’s Flint Resident Office and Miami, Florida, with additional assistance from local law enforcement officers in Florida, Oregon, and Washington. The case was prosecuted by Assistant United States Attorneys Ann Nee, Katharine Hemann and Anthony Vance.
Five New Mexico Compound Defendants Sentenced to Life in Prison in Connection with Kidnapping and Terrorism PlotRead the Press Release
A federal judge in New Mexico today sentenced five defendants: Jany Leveille, Siraj Ibn Wahhaj, his sisters Hujrah Wahhaj and Subhanah Wahhaj, and Subhanah’s husband, Lucas Morton. Siraj, Hujrah and Subhanah Wahhaj, and Lucas Morton were sentenced to life in prison without the possibility of parole. Per the terms of her plea agreement, Leveille was sentenced to 15 years in prison. Upon her release from prison, Leveille will enter removal proceedings.
On Oct. 17, 2023, after a three-week trial, a federal jury convicted Siraj Wahhaj and Lucas Morton of conspiracy to provide material support to terrorists, providing material support to terrorists and conspiracy to murder an officer or employee of the United States. Hujrah Wahhaj, Subhanah Wahhaj and Lucas Morton were additionally convicted of conspiracy to commit kidnapping resulting in death and kidnapping resulting in death. Jany Leveille pleaded guilty to conspiracy to provide material support to terrorists and being in possession of a firearm while unlawfully in the United States on Aug. 8, 2023.
According to publicly available court records, in December 2017, the group, led by Leveille, abducted Siraj Wahhaj’s three-year-old son, Abdul Ghani, from his mother in Georgia and transported him to a remote property in Amalia, New Mexico. The group intended to use the child as a prop in a plan to rid the world of purportedly corrupt institutions, including the FBI, CIA, and U.S. military, and to kill those who did not convert and follow Leveille. The planning and training for this conspiracy took place at a heavily fortified, purpose-built, militarized compound in Amalia.
After Abdul Ghani died at the compound, Leveille prophesized, and the rest of the group believed, that Abdul Ghani was going to resurrect on Easter, which was April 1, 2018, and that he would lead the group to face society and kill those who did not join them. In response, the group’s firearms and tactical training ramped up in frequency, intensity, and complexity in anticipation of the Easter resurrection. When Abdul Ghani did not resurrect on Easter, Leveille began to talk about him returning around the time of his birthday (Aug. 6, 2018) or as Subhanah Wahhaj’s soon-to-be born child.
On Aug. 3, 2018, the Taos County Sheriff’s Office’s Tactical SRT Unit integrated with agents from New Mexico Office of the Superintendent of Insurance and executed warrants on the heavily fortified compound. SRT was able to secure the compound and the suspects without incident or a single shot fired. Additionally, the children in the compound were secured and safely turned over to child welfare authorities. While clearing the compound, weapons, ammunition, and training documents were discovered confirming intelligence that had been received. During a subsequent search of the compound on Aug. 6, 2018, Abdul Ghani’s birthday, law enforcement located the remains of Abdul Ghani in an underground tunnel. The investigation found Abdul died on Christmas Eve, 2017, before anyone was aware the group was in New Mexico.
The FBI Albuquerque Field Office investigated this case with assistance from the U.S. Department of Homeland Security, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Taos County Sheriff’s Office, NM Office of the Superintendent of Insurance, and the 8th Judicial District Attorney’s Office.
Assistant U.S. Attorneys Kimberly Brawley and Tavo Hall for the District of New Mexico and Trial Attorneys Jessica Joyce and George Kraehe of the National Security Division’s Counterterrorism Section prosecuted the case.
Fifteen Kokomo Methamphetamine Traffickers Dealers Sentenced to a Total of over 175 Years in Federal PrisonRead the Press Release
INDIANAPOLIS- Fifteen individuals have been convicted and sentenced for their roles in a large drug trafficking operation based in Kokomo, Indiana.
According to court documents, in 2020, the Kokomo Police Department Drug Task Force, Drug Enforcement Administration and other law enforcement partners began an investigation into multiple individuals trafficking illegal drugs in Kokomo, Indiana. Over the course of two years, fifteen people were charged in the Southern District of Indiana on various drug trafficking-related charges.
As a result of the years’ long investigation, law enforcement officers seized approximately 18.3 pounds of methamphetamine, 171 grams of fentanyl, 48 grams of heroin, $95,664 in U.S. Currency, and 11 firearms. The following individuals were charged and have sentenced to federal prison:
Name, Age, Residence
Offense
Prison Sentence
Demario Barker, 34, Kokomo
Distribution of methamphetamine
25 years
Shawn Brent, 45, Kokomo
Possession with intent to distribute methamphetamine
17.5 years
Deriq Watters, 33, Kokomo
Possession with intent to distribute methamphetamine
21 years, 10 months
Janie Maxieson, 56, Fishers
Possession with intent to distribute methamphetamine
15 years
Eddie Maxieson, 52, Fishers
Possession with intent to distribute methamphetamine
15 years
Carl Chandler, 44, Kokomo
Possession with intent to distribute methamphetamine
15 years
Zachary Burkhead, 38, Kokomo
Conspiracy to possess with intent to distribute and distribution of methamphetamine
14 years, 2 months
Cody Long, 27, Kokomo
Distribution of methamphetamine
11 years
Jerry Glenn, 36, Kokomo
Possession with intent to distribute methamphetamine
11 years
Cassandra Shepard, 42, Kokomo
Conspiracy to possess with intent to distribute and distribution of methamphetamine
10 years
Shaquille Cannon, 32, Kokomo
Conspiracy to possess with intent to distribute and distribution of methamphetamine
7 years, 8 months
Cynthia Ponder, 37, Kokomo
Possession with intent to distribute methamphetamine
5 years
Amy Lowe, 33, Kokomo
Distribution of methamphetamine
5 years
Sirtorry Carr, 33, Kokomo
Felon in possession of a firearm
3 years, 1 month served
Matthew Vance, 32, Kokomo
Possession with intent to distribute methamphetamine
3 years, 10 months
“Methamphetamine and other deadly controlled substances have devastating impacts on users, their loved ones, and our communities,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Drug traffickers like these fifteen defendants, responsible for pushing this poison into our neighborhoods, must be held accountable for the suffering they cause in search of quick profits. This large-scale, multi-year operation is an outstanding example of the impact we can have with the help of our state and local law enforcement partners. I commend the efforts of the DEA and Kokomo Police Department to make our communities safer by getting meth and armed meth dealers off our streets.”
“This investigation serves as another example that drug trafficking in Kokomo will not be tolerated and will be prosecuted to the fullest extent for the safety of our community,” said Kokomo Police Chief, Douglas Stout. “The Kokomo Police Department is very thankful to be able to work with partners at the Drug Enforcement Administration and the US Attorney’s Office, and we commend them for all their assistance in the prosecution of offenders in our community.”
The Kokomo Police Department and Drug Enforcement Administration investigated this case, with valuable assistance provided by the Internal Revenue Service Criminal Investigations, United States Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hamilton/Boone County Drug Task Force. The sentences were imposed by U.S. District Court Judges, Sarah Evans Barker, James P. Hanlon, Jane Magnus-Stinson, James R. Sweeney, and Chief Judge Tanya Walton Pratt. Each of the defendants will be supervised by the U.S. Probation Office for between three and ten years following their release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Michelle Brady, who prosecuted these cases.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Father & son sentenced to federal prison for dealing drugsRead the Press Release
COLUMBUS, Ohio – A father and son were sentenced in U.S. District Court to serve 24 years and eight years in prison, respectively, for trafficking multiple kilograms of methamphetamine.
Eric Dewayne Turner, Jr., 33, was sentenced in federal court today to 97 months in prison. His father, Eric Dewayne Turner, Sr., 50, was sentenced in federal court on Jan. 16 to 290 months in prison.
Turner, Sr. led a drug trafficking organization and sold large quantities of methamphetamine to undercover agents on four occasions. These controlled purchases, plus a fifth transaction that was not completed, involved nearly eight kilograms of pure methamphetamine.
Turner, Sr. pleaded guilty in May 2023 to the six counts with which he was charged in a bill of information.
He admitted his guilt to four counts of distributing methamphetamine, one count of possessing with intent to distribute the drug and one count of illegally possessing a firearm after a prior felony conviction.
Turner, Jr. conspired with his father and others from September 2022 through January 2023 to distribute and possess with intent to distribute the narcotics. Turner, Jr. personally participated in two of the drug transactions, transporting packages of methamphetamine for his father to sell to the undercover agents.
When the son was arrested, he possessed more than $16,000 in suspected drug trafficking proceeds.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration (DEA), Detroit Division; announced the sentences imposed by U.S. District Court Judge Michael H. Watson. Deputy Criminal Chief Brian J. Martinez is representing the United States in this case.
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FBI Electronics Technician Found Guilty of Child Exploitation OffensesRead the Press Release
NASHVILLE – On March 4, 2024, a jury in the Middle District of Tennessee found Justin Carroll guilty of sexual exploitation of a minor, coercion and enticement of a minor to engage in unlawful sexual activity, receipt of child pornography, and transfer of obscene material to an individual under the age of sixteen, announced United States Attorney Henry C. Leventis.
According to evidence presented at trial, between June 2020 and April 27, 2021, Carroll, who was employed by the Federal Bureau of Investigation as an electronics technician, engaged in sexually explicit chats and exchanged sexually explicit images with three fourteen-year-old females over various social media platforms after connecting with the minors on chatting websites. Carroll’s conduct was discovered after one of the victims mailed a Valentine’s Day package to the FBI office. Sexually explicit images of the minor females were found in Carroll’s social media accounts and on his cell phone. Images of Carroll were found in one of the minor’s social media accounts and on another minor’s cell phone. Carroll continued communicating with the fourteen-year-old victim who mailed the package, even after receiving an e-mail from her mother inquiring why her daughter mailed him a package and advising him of her daughter’s age.
“It is no longer adequate to keep our children physically separated from strangers,” said United States Attorney Henry C. Leventis. “We must be vigilant in monitoring who they communicate with online to ensure their safety and to prevent the type of egregious conduct committed by the defendant in this case. I commend the trial team and our law enforcement partners for their excellent work investigating this case and presenting it to the jury.”
“The FBI will continue to find, arrest, and prosecute those who seek to exploit our most vulnerable population, no matter who they are or what their profession is,” said Special Agent in Charge Douglas DePodesta of the FBI Memphis Field Office.
“This individual abused his position of trust as an FBI technician to prey on the vulnerability of children,” said HSI Nashville Special Agent in Charge Rana Saoud. “Thanks to the outstanding teamwork between the dedicated men and women at HSI Nashville and our federal, state and local law enforcement partners, we were able to remove this dangerous predator from the community before he could victimize any more innocent children.”
Carroll will be sentenced on August 9, 2024, by United States District Judge Aleta A. Trauger. He faces a mandatory minimum prison sentence of five years and a maximum sentence of life.
This case was investigated by the Federal Bureau of Investigation and the Department of Homeland Security. Assistant U.S. Attorneys Monica R. Morrison and Juliet Aldridge prosecuted the case.
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Essex County Woman Convicted of Possession with Intent to Distribute Cocaine and MethamphetamineRead the Press Release
CAMDEN, N.J. – An Essex County woman was convicted for possession with intent to distribute cocaine and methamphetamine, U.S. Attorney Philip R. Sellinger announced today.
Mahogany Hawkins, 32, of Newark, was convicted on one count possession with intent to distribute cocaine and methamphetamine.
According to documents filed in this case and the evidence at trial:
In March 2021, two FedEx parcels addressed to “John Brown” in Newark were lawfully intercepted by law enforcement and found to contain cocaine. On March 15, 2021, an undercover officer delivered the packages to the addressee, and a woman – later identified as Hawkins – answered the door and accepted the packages. Officers again knocked on Hawkins’s door, this time identifying themselves as law enforcement. Hawkins said she was “getting dressed” but didn’t open the door. The officers forced entry and found Hawkins standing in the bedroom.
After obtaining a search warrant, the officers searched Hawkins’s apartment and entered a backroom – locked by a keypad – that was a workstation for packaging narcotics. The two FedEx packages from the controlled delivery were found inside a garbage can in the backroom, and the room also contained methamphetamine pills, two plastic bags containing additional cocaine, numerous empty vials used for packaging narcotics, and a heat sealer. Laboratory analysis confirmed substances were cocaine and methamphetamine. Officers also found a loaded handgun and an extended magazine.
The possession with intent to distribute count of which Hawkins was convicted carries a maximum potential penalty of 20 years imprisonment, and a $250,000 fine.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso; U.S. Customs and Border Protection officers, under the direction of Port Director TenaVel Thomas, Port of New York/Newark; and members of the Newark Department of Public Safety, under the direction of Director Fritz Fragé, with the investigation leading to the conviction. He also thanked the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz Ortiz, and the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark.
The government is represented by Assistant U.S. Attorneys Rebecca A. Sussman and Jake A. Nasar of the U.S. Attorney’s Office’s Criminal Division in Newark.
Essex County Man Charged with Producing and Possessing Child PornographyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was charged for allegedly inducing two minors to send him sexually explicit videos via text message and possessing child pornography, U.S. Attorney Philip R. Sellinger announced today.
Abdur-Razzaaq Henderson, 26, of East Orange, New Jersey, is charged by complaint with two counts of producing child pornography and one count of possessing child pornography. Henderson appeared this afternoon before U.S. Magistrate Judge André M. Espinosa and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
In April 2023, Henderson communicated via text message with a minor victim located outside of New Jersey. At Henderson’s request, the minor victim created and sent Henderson via text messages videos of the victim engaging in sexually explicit conduct.
In July 2023, Henderson communicated via text message with another minor victim located outside of New Jersey. At Henderson’s request, the second minor victim created and sent Henderson via text messages videos of the victim engaging in sexually explicit conduct. Henderson then engaged the second minor victim in a conversation about sexually assaulting a younger sibling.
On March 5, 2024, Henderson was found with a cell phone that contained multiple videos depicting child sexual abuse material.
The production of child pornography charges are each punishable by a mandatory minimum penalty of 15 years in prison and a maximum potential penalty of 30 years in prison and a $250,000 fine. The child pornography possession charge is punishable by up to 10 years in prison and a $250,000 fine.
U.S. Attorney Sellinger credited the Newark Child Exploitation and Human Trafficking Task force, under the direction of FBI Special Agent in Charge James E. Dennehy, with the investigation leading to the arrest.
The government is represented by Assistant U.S. Attorneys Rebecca Sussman and Eli Jacobs of the Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
henderson.complaint.pdfEdwardsville Doctor Pleads Guilty to Healthcare FraudRead the Press Release
EAST ST. LOUIS, Ill. – A doctor from Edwardsville admitted guilt to a federal healthcare fraud charge for falsely documenting services provided to nursing home patients for reimbursement from Medicare.
Phillip J. Greene, 59, pleaded guilty to one count of healthcare fraud.
“We entrust medical professionals to provide ethical care, but some choose to act in bad faith,” said U.S. Attorney Rachelle Aud Crowe. “I’m thankful to the investigators who uncovered Greene’s fraud and partnered with our office to hold him accountable.”
According to court documents, Greene was a practicing licensed physician employed by General Medicine and working at various nursing home locations throughout the Southern District of Illinois. He was an enrolled provider in the federal Medicare program.
To conduct the fraud, Greene documented misrepresentations in his medical and progress notes for nursing home patients for services he did not perform, including claims related to patients who were already deceased at the time of the billed services.
By way of General Medicine, Greene submitted false claims to Medicare totaling more than $20,000 for health services he did not provide from October 2016 through September 2018.
“Physicians who submit fraudulent claims in our federal health care programs not only unjustly enrich themselves, but also undermine the trust and confidence of their patients,” said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Our agency will continue to work diligently with our law enforcement partners to hold accountable those who defraud these valuable programs.”
Medicare reimbursed Greene and General Medicine more than $15,000 for the false claims.
Greene’s sentencing is scheduled for 10:30 a.m. on June 5. Healthcare Fraud is punishable by up to 10 years’ imprisonment, a fine of up to $250,000, and up to three years’ supervised release. Greene must also pay restitution for government losses.
The investigation was conducted by the Southern District of Illinois Health Care Fraud Task Force: the United States Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, the United States Department of Labor Employee Benefits Security Administration, the United States Postal Inspection Service, the Department of Defense Criminal Investigative Service, Railroad Retirement Board Office of Inspector General, Office of Personnel Management Office of the Inspector General, the Illinois State Police Medicaid Fraud Control Bureau and the Illinois Attorney General’s Office Medicaid Fraud Control Unit. Trial attorneys Victor Yanz and Andres Almendarez with the Fraud Section of the Department of Justice’s Criminal Division, and Assistant U.S. Attorney Kevin Burke are prosecuting the case.
Dual U.S. and Greek National Arrested for Multimillion-Dollar Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A dual U.S. and Greek national was charged for a multimillion-dollar bank fraud conspiracy, U.S. Attorney Philip R. Sellinger announced today.
Dino Koutsogiannis, 57, of Fairview, New Jersey, is charged by complaint with one count of conspiracy to commit bank fraud. Koutsogiannis made his initial appearance on March 4, 2024, before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
From July 2022 to July 2023, Koutsogiannis and others conspired to defraud multiple financial institutions by conducting a “bust-out” debit card conspiracy. As part of the scheme, Koustogiannis and his conspirators would create shell companies and open bank accounts in those companies’ names. Koustogiannis and the conspirators would then fund those accounts with nominal funds. Then, after a few months with no activity, Koutsogiannis and the conspirators would fund the accounts via transfers from external sources, including accounts controlled by Koustogiannis and the conspirators. Several weeks later, Koutsogiannis and the conspirators would make very large debit purchases over the course of several days from those accounts, causing those accounts to accrue significantly negative balances, frequently in the amount of hundreds of thousands of dollars.
After the bust-out was complete and the accounts were left in significant negative balances, the victim financial institutions would then close the accounts. But Koutsogiannis and his conspirators would nevertheless continue executing the scheme with bank accounts at other financial institutions. Koustigannis and the conspirators executed this scheme numerous times at six victim financial institutions between July 2022 and July 2023, causing those institutions approximately $2.8 million in losses.
The charge carries a maximum penalty of 30 years and a fine of up to $1 million.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation leading to the charges. He also thanked the Springfield Police Department, the Teaneck Police Department, and the New Jersey State Police.
The government is represented by Assistant U.S. Attorney Chana Y. Zuckier of the General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
koutsogiannis.complaint.pdfDriver Who Crashed During a Police Chase Gets 12 Year Prison SentenceRead the Press Release
WASHINGTON – Shaquille Taylor, 28, of Washington, D.C., was sentenced to 12 years in prison, yesterday, for causing near-fatal injuries to another motorist in May 2022, announced U.S. Attorney Matthew M. Graves, Special Agent in Charge Michael Buck of the U.S. Secret Service Uniformed Division (USSS), and Chief Pamela Smith of the Metropolitan Police Department (MPD).
A Superior Court jury convicted Taylor, in November 2023, of aggravated assault while armed, assault with a dangerous weapon, fleeing a law enforcement officer, and destruction of property. According to the government’s evidence, a USSS officer had initiated a traffic stop of Taylor, near 17th Street and Massachusetts Avenue NW, at approximately 2:00 AM on May 6, 2022. Taylor had initially complied with the stop and started to get out of his car, but then got back in the car and drove off at a high rate of speed. As he did so, Taylor ran a red light at 12th Street and Massachusetts Avenue, NW, travelling just under 100 MPH, and crashed into the victim’s car. As a result of the crash, the victim sustained near-fatal injuries and spent weeks on a ventilator. As a result, the victim will suffer chronic pain for the rest of his life. Taylor sustained a broken arm and leg. Police officers later recovered a firearm from Taylor’s car.
In announcing the sentence, U.S. Attorney Graves, Special Agent in Charge Buck, and Chief Smith commended the work of those who investigated the case from the United States Secret Service Uniformed Division and the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Antoinette Sakamsa, Supervisory Paralegal Specialist Renee Prather, Victim Witness Service Coordinator Maenylie Watson, Victim Witness Program Specialist Lakeisha McFall, Supervisory IT Specialist Leif Hickling, and Assistant U.S. Attorneys Kathleen Houck and Jamie Carter who assisted with the investigation of the matter.
Finally, they commended the work of Assistant U.S. Attorneys Kathryn Bartz and Benjamin Helfand, who investigated and prosecuted the case.
Doctor Sentenced to Prison for Unlawful Drug Distribution, False Statements to Medicare, and Paycheck Protection Program FraudRead the Press Release
Tampa, FL – U.S. District Judge Charlene E. Honeywell today sentenced Tommy Louisville (71, Pembroke Pines) to one year and one day in federal prison for unlawful drug distribution, false statements relating to health care matters, and Paycheck Protection Program fraud. The court also ordered Louisville to pay restitution in the amount of $35,319.23 to the Small Business Administration and $8,466.56 to Medicare. Louisville entered a guilty plea on November 3, 2023.
According to court documents, Louisville was a Florida-licensed physician and Drug Enforcement Administration registrant. On May 30, 2019, the Florida Board of Medicine suspended Louisville from the practice of medicine for two years, thereby making him ineligible to lawfully prescribe controlled substances. Louisville continued to issue controlled-substance prescriptions after his medical license was suspended. Furthermore, he concealed the fact that he was not authorized to issue prescriptions from Medicare in connection with the submission to Medicare of the prescriptions for payment. Louisville eventually shuttered his medical business in November 2019.
Between April 2020 and May 2020, Louisville used his closed business to fraudulently obtain a federal Paycheck Protection Program (PPP) loan in the amount of $33,034. Louisville submitted an application that contained multiple fraudulent representations, including stating average monthly payroll suggesting he actively operated a medical business; stating he employed six employees; and certifying that loan proceeds would be used for business-related purposes.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.
This case was investigated by the U.S. Department of Health and Human Services - Office of Inspector General, the Drug Enforcement Administration (Tampa District Office), and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Greg Pizzo.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
District Man Pleads Guilty to Federal Firearms and Drug Trafficking OffensesRead the Press Release
WASHINGTON – Christopher Norece Mitchell, 25, of Washington, D.C., pleaded guilty today to federal firearms and drug trafficking offenses stemming from his possession of three loaded firearms and distributable quantities of narcotics on April 20, 2023, in the Chinatown neighborhood of Northwest Washington, announced U.S. Attorney Matthew M. Graves; Special Agent in Charge Craig Kailimai of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Mitchell pleaded guilty in the U.S. District Court for the District of Columbia to one count of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year and one count of possession with intent to distribute N,N-Dimethylpentylone, a Schedule I controlled substance. The Honorable Jia M. Cobb scheduled sentencing for July 9, 2024.
According to plea documents, in the early afternoon hours of April 20, 2023, members of the Metropolitan Police Department approached a group of men who were loitering on private property in the District’s Chinatown neighborhood. As the men left the area, one took a black plastic bag off a fence post and threw it into a public trash can. The officers recovered the bag, which contained a distributable quantity of marijuana, a digital scale, empty plastic bags consistent drug distribution, and a key for a nearby SUV. Minutes later, Mitchell arrived on scene and claimed the SUV belonged to his mother. Mitchell consented to a search of his person, which yielded almost $4,000 in U.S. currency and distributable quantities of drugs that were later determined to include fentanyl and the synthetic stimulant N,N-Dimethylpentylone. Officers also searched the SUV and recovered additional N,N-Dimethylpentylone among other drugs, along with additional scales. Officers also recovered three loaded Glock firearms and additional ammunition. Subsequent DNA testing and analysis tied Mitchell to the firearms.
On May 18, 2023, a federal grand jury indicted Mitchell on firearms and drug trafficking offenses. Mitchell was arrested on May 19, 2023, and has remained in custody since.
Federal law prohibits Mitchell from possessing a firearm because he previously was convicted in the Superior Court of the District of Columbia for crimes punishable by imprisonment for a term exceeding one year.
Mitchell faces a maximum sentence of 15 years in prison and a $250,000 fine on the firearms count and a maximum sentence of 30 years in prison and up to a $2,000,000 fine on the drug trafficking count. The maximum potential sentences in this case are prescribed by Congress and is provided here for informational purposes only, as any sentence imposed in this case will be determined by the Court after considering the United States Sentencing Guidelines and other statutory factors.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Police Department as part of Project Safe Neighborhoods. Valuable assistance was provided by the Drug Enforcement Administration Mid-Atlantic Laboratory and the Federal Bureau of Investigation Laboratory in Quantico, Virginia.
The case was indicted by former Special Assistant U.S. Attorney Rick Kelley and is being prosecuted by Assistant U.S. Attorney Paul V. Courtney.
District Man Found Guilty in the Kidnapping and Multiple Rapes of a Maryland Woman, a Total StrangerRead the Press Release
WASHINGTON – Mark A. Blue, 34, of Washington, D.C., was found guilty today in the December 2018 kidnapping, robbery, and multiple rapes of a total stranger. The jury verdict in U.S. District Court for the District of Columbia was announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office’s Criminal and Cyber Division, and Chief Pamela A. Smith of the Metropolitan Police Department.
The jury found Blue guilty of kidnapping, conspiracy to commit kidnapping, kidnapping while armed, robbery while armed, and two counts of first degree sexual abuse while armed. The Honorable Carl J. Nichols, who presided over the case, scheduled sentencing for June 14, 2024. This conviction carries a maximum penalty of life imprisonment.
According to court documents, Blue, along with a co-conspirator, targeted the victim, who was walking home from a bus stop in Prince Georges County, MD. Blue stripped her naked, robbed her, forced her into a car, threatened to kill her, covered her eyes with her shirt so she would not be able to see, and sexually assaulted her in Maryland. Then Blue drove her to Southeast Washington, D.C., where he forced her to disclose her ATM information. His co-conspirator drained her bank account of nearly everything as Blue assaulted her again. Blue drove the victim to an alley where both men sexually assaulted her yet again. They left her naked in an alley, with her shirt covering her head.
At the time of the attack, Blue was under supervised release for a 2013 armed robbery conviction. Elements of the crime were captured by surveillance footage and ATM cameras. Two days after the offenses, on December 5, 2018, Blue quit his job and fled to North Carolina. A tipster, who recognized Blue’s mugshot on a television news show, called law enforcement. The tipster stated that Blue had said he was wanted by police for robbing and kidnapping a girl.
Blue was arrested on January 29, 2019, in North Carolina and has remained in custody since his arrest.
This case was investigated by the FBI Washington Field Office's Violent Crimes Task Force, the Metropolitan Police Department, and the Prince Georges County Police Department. It was prosecuted by Assistant U.S. Attorneys Caroline Burrell, Rachel Forman, and Paralegal Specialist Alexis Spencer-Anderson of the District of Columbia. The prosecution team received valuable assistance from Veronica Vaughn of the Victim Witness Assistance Unit, as well as Assistant U.S. Attorneys Stuart Allen, Nicholas Miranda, and Jessica Wash.
District Man Charged with First-Degree Murder for Killing a Teenager on the MetroRead the Press Release
WASHINGTON- Keith Williams, 23, of the District of Columbia, was indicted today on the charge of first-degree murder while armed for the shooting death of 17-year-old Brendan Ofori, on board a green line Metro rail car, announced U.S. Attorney Matthew M. Graves. The Honorable Michael O’Keefe ordered that Williams be held without bond pending trial.
According to the indictment, on May 28, 2023, Williams and the victim were both traveling on the Metro rail system separately. Surveillance video captured the victim get on a southbound Green Line train at the West Hyattsville Metro Station. The defendant was captured entering the Stadium Armory Metro Station and transferring to a Green Line train at L’Enfant Plaza Metro Station. At approximately 11:40 a.m., while both were on the same train traveling to the Waterfront station, Williams shot the victim multiple times following an altercation between the two. The victim was found to be unresponsive by emergency personnel and pronounced dead a short time later.
This case is being investigated by the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorney John Interrante.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Departments of Justice, Commerce and Treasury Issue Joint Advisory on Compliance of Foreign-Based Persons with Sanctions and Export LawsRead the Press Release
The Department of Justice, Department of Commerce’s Bureau of Industry and Security (BIS), and the Department of the Treasury’s Office of Foreign Assets Control (OFAC) today issued a joint compliance note focusing on the obligations foreign-based individuals and entities have to comply with U.S. sanctions and export control laws and the risks of exposure that they face for non-compliance. Today’s note marks the third collective effort by the three agencies to inform the private sector about enforcement trends and provide guidance to the business community on compliance with U.S. sanctions and export laws. All three agencies also joined three other multi-seal advisories in the past year.
“Any person or company participating in the global marketplace has an obligation to comply with our sanctions and export control laws, regardless of where they are located,” said Assistant Attorney General for National Security Matthew G. Olsen. “Today’s advisory makes clear that the global business community must ensure that they are educated about how these laws apply and take steps to mitigate any risks they may face as a result of their business operations.”
“As today’s compliance note makes clear, it doesn’t matter where in the world you’re located – if you’re dealing in items subject to the EAR, you must comply with U.S. export controls,” said Matthew S. Axelrod, Assistant Secretary of Commerce for Export Enforcement. “Failure to do so may risk you being the subject of an administrative or criminal enforcement action.”
The compliance note highlights the applicability of U.S. sanctions and export control laws to persons and entities located abroad and describes the enforcement mechanisms available to hold violators accountable, including civil enforcement actions and criminal prosecutions. In addition, the note provides an overview of compliance considerations for non-U.S. companies and compliance measures that could potentially help mitigate their risk.
“OFAC will continue to actively enforce our sanctions against those who violate them, whether in the United States or abroad.” said Director Bradley T. Smith of the Department of the Treasury’s Office of Foreign Assets Control. “As underscored by today’s advisory, foreign persons should be vigilant in understanding their OFAC-administered sanctions obligations and take steps necessary to comply.”
As with prior multi-agency advisories, the compliance note underscores the importance of an effective and robust compliance program to mitigate any risks of non-compliance that they may face in today’s global business environment. This is especially true for foreign companies who do business with both the United States and jurisdictions, people, or entities who are subject to restrictions under U.S. sanctions or export control laws.
The full compliance note is available hereDayton man sentenced to prison for possessing stolen mailRead the Press Release
DAYTON, Ohio – Jayon Everett Perrin, 22, of Dayton, was sentenced in U.S. District Court to 32 months in prison for unlawfully possessing stolen mail.
According to court documents, in October 2022, law enforcement executed a search warrant at Perrin’s Dayton apartment and discovered a postal service key, a United States Postal Service logo jacket, $6,000 in cash, more than 500 checks, and approximately 15 debit or credit cards.
The checks had payable amounts ranging from approximately 50 cents to $282,000. The stolen mail also included sensitive forms and documents, such as a federal tax return, payment slips for medical and dental bills, and a loan-forgiveness application.
Perrin also possessed equipment and supplies for cloning debit and credit cards and altering stolen checks.
Perrin was charged federally in October 2022 and pleaded guilty in September 2023.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Lesley Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division, announced the sentence imposed on March 5 by Senior U.S. District Court Judge Walter H. Rice. Assistant United States Attorneys Rob Painter and Elizabeth L. McCormick are representing the United States in this case.
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Corinth man sentenced to 30 years for producing and distributing child pornographyRead the Press Release
GREENVILLE, Miss. – A Corinth, Mississippi man was sentenced in federal court today to 30 years in prison for producing sexually explicit images with minors and posting them on the dark web.
According to court documents, Paul Burk, III, 36, recorded child sexual abuse videos using minors under the age of 10 years old and posted them on forums on the dark web. The victims were identified through Operation Rescue Me, a strategic partnership between the FBI and the National Center for Missing and Exploited Children, which focuses on determining the identity of child victims depicted in child exploitation material.
Following a sentencing hearing on Wednesday in Greenville, Chief U.S. District Judge Debra M. Brown ordered Burk to serve 360 months in prison, followed by a term of supervised release for the remainder of his life.
“The depraved conduct of this defendant inflicted horrific damage upon innocent lives, for which he was appropriately sentenced to the maximum possible penalty in this case,” said U.S. Attorney Clay Joyner. “Our office will always remain committed to protecting children from such abhorrent conduct, and we are proud of the partnership between the FBI, the Mississippi Attorney General’s Office, and our prosecutor who worked together to see justice done for the victims in this case.”
"Safeguarding our society's future begins with protecting the youth in our community from criminals like, Paul Burk III,” remarked FBI Assistant Special Agent in Charge Maher Dimachkie “Those who commit these heinous crimes against our youth will not be tolerated. The FBI maintains a commitment to support our DOJ partners in aggressively investigating and protecting the innocence of our minors, assuring offenders are brought to justice. "
“The suffering these children have endured is unimaginable,” stated Mississippi Attorney General Lynn Fitch. “I am grateful for our partners at the U.S. Attorney’s Office and FBI. Working together across agencies we were able to ensure justice is served here. We cannot give these children back what their abuser has taken from them, but we have at least started them on the road to healing.”
The FBI and the Mississippi Attorney General’s Office investigated the case. Assistant U.S. Attorney Parker S. King prosecuted the case.
Connecticut Dentist Sentenced to Prison for Tax EvasionRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that BOULOS HANNA, also known as “Paul Hanna,” 66, of East Lyme, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 10 months of imprisonment, followed by three years of supervised release, for tax evasion. Judge Williams also ordered Hanna to pay a $25,000 fine in addition to his restitution obligation.
According to court documents and statements made in court, Hanna is the sole owner of Paul Hanna DMD PC, a dental practice in New London. Hanna takes fees from dental patients in the form personal checks, cash, and credit card payments. Hanna owns the building where his dental practice is located and the practice pays rent to Hanna individually.
For each of the 2000 through 2009 tax years, Hanna filed a Form 1040, U.S. Individual Income Tax Return for himself and his wife, and paid the tax due and owing for those years, typically by having withholdings during the year sufficient to cover his tax liability. For the 2010 through 2012 tax years, Hanna filed a Form 1040 for himself and his wife, but did not pay the tax due and owing. As a result, from approximately April 2012 through 2017, Hanna was subject to IRS collections enforcement for the 2010 through 2012 tax years, including forced collection activity, such as liens placed on property and seized payments taken by way of levy.
From 2013 through 2020, Hanna earned approximately $1.6 million in taxable income from his work as a dentist and from rental income. However, he failed to file tax returns for any of those years, resulting in a loss to the IRS of $244,541. In addition to failing to file personal federal income tax returns, Hanna attempted to evade the assessment of tax by paying himself “management fees” instead of a reasonable wage, operating in cash by self-endorsing business checks to himself and cashing these checks to keep money out of his personal bank accounts, and paying personal expenses directly from his business accounts without reflecting those payments as income.
Hanna is required to pay $244,541 in restitution.
Hanna pleaded guilty on July 17, 2023. He is required to report to prison on May 6.
This matter was investigated by the Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Susan Wines.
Columbia Man, Woman Sentenced in $1.1 Million Insurance Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – Two Columbia, Mo., residents were sentenced in federal court today for their roles in a $1.1 million insurance fraud scheme that involved false claims of injuries suffered in faked car accidents.
Michael Lee Gene Stapleton, 37, and Latoya Marie Brown, 37, were sentenced in separate appearances before U.S. District Judge Roseann Ketchmark. Stapleton was sentenced to four years and three months in federal prison without parole and ordered to pay $166,363 in restitution to his victims. Brown was sentenced to four years in federal prison without parole and ordered to pay $72,069 in restitution to her victims.
On April 6, 2023, Stapleton pleaded guilty to two counts of aiding and abetting mail fraud. On Feb. 14, 2023, Brown pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit mail fraud.
This case stems from a long investigation by the FBI into co-defendant Lawrence Courtney Lawhorn, 36, of Kansas City, Mo. (formerly of Columbia), for a series of automobile accidents throughout Missouri. All but one of those accidents were staged. The conspiracy defrauded six insurance companies of a total of $1,234,581 from June 2017 to July 2020.
Lawhorn recruited friends, acquittances, family, and friends of friends to participate in the staged accidents. Conspirators went to various medical providers, claiming injuries from the staged accidents and requesting various testing, such a MRIs, CT scans, and/or X-rays. Conspirators then submitted false claims to insurance companies that they had suffered bodily injuries and that they would be personally liable for any medical bills related to insurance claims. Conspirators, some of whom were involved in multiple incidents, received thousands of dollars, and in some cases tens of thousands of dollars, based on these false claims. However, none of the conspirators made any payments to medical providers and instead used the funds for their personal expenses.
Brown admitted she was involved in three incidents and received a total of $44,269 in insurance payments. Two of the accidents were in Boone County, Mo., and one of the accidents was in Kansas City, Mo.
Stapleton admitted that he and co-defendant Tara Colleen Jackson, 60, of Independence, Mo., who is Lawhorn’s mother, participated in a staged automobile accident in Kansas City, Mo. State Farm issued a $50,000 check to Stapleton and a $50,000 check to Jackson. None of the medical bills totaling $188,920 at Research Medical Center (where Stapleton was treated) and St. Luke’s East Hospital (where Jackson was treated) have been paid.
Stapleton and Brown are among 16 defendants who have been sentenced in this case.
Lawhorn pleaded guilty on June 8, 2023, to one count of conspiracy to commit wire fraud, one count of conspiracy to commit mail fraud, and one count of aggravated identity theft. Lawhorn also pleaded guilty in a separate and unrelated case to commit wire fraud. His sentencing date has not yet been scheduled.
Jackson pleaded guilty on April 6, 2023, to one count of conspiracy to commit wire fraud and one count of conspiracy to commit mail fraud and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Aaron M. Maness. It was investigated by the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Cincinnati man sentenced to prison for submitting false PPP loan applicationRead the Press Release
CINCINNATI – A Cincinnati man was sentenced in U.S. District Court to 18 months in prison for committing wire fraud as part of a scheme to fraudulently obtain a Covid relief loan.
Kelton McClarrin, 33, received nearly $21,000 from the Paycheck Protection Program (PPP) under false pretenses and used the money for personal expenditures including jail commissary services, CashApp, Grubhub, DoorDash, Facebook purchases and hotels.
According to court documents, McClarrin applied for a Covid relief loan on May 16, 2021, falsely claiming in the application that he was the sole owner of a business named “Kelton McClarrin.” McClarrin claimed his business was established in 2019 and had a gross income of $100,000 for that year. McClarrin also submitted a forged bank statement in support of the loan application.
McClarrin was sentenced to two years in prison in a Hamilton County case on May 7, 2019. He remained incarcerated until Nov. 17, 2020, when he was paroled to a halfway house. He used the address of the halfway house as his business address on the loan application.
In April 2022, McClarrin applied for loan forgiveness for the $21,000 PPP loan. He stated on the application forms that he had 20 employees and had spent $20,000 of the loan on payroll costs.
McClarrin was arrested in August 2023 and pleaded guilty in October 2023.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the sentence imposed on March 5 by U.S. District Judge Douglas R. Cole. The case was investigated by the Social Security’s Office of Inspector General with assistance from the U.S. Department of Labor Office of Inspector General, the U.S. Marshals, and the Ohio Department of Rehabilitation and Corrections. Special Assistant United States Attorney Timothy Landry is representing the United States in this case.
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Chinese National Residing in California Arrested for Theft of Artificial Intelligence-Related Trade Secrets from GoogleRead the Press Release
View the indictment here.Watch U.S. Attorney Ramsey's video statement here.
A federal grand jury indicted Linwei Ding, aka Leon Ding, charging him with four counts of theft of trade secrets in connection with an alleged plan to steal from Google LLC (Google) proprietary information related to artificial intelligence (AI) technology. The announcement was made by Attorney General Merrick B. Garland this afternoon while participating in a “Fireside Chat” at the American Bar Association’s 39th National Institute on White Collar Crime in San Francisco.
According to the indictment, returned on March 5 and unsealed earlier today, Ding, 38, a national of the People’s Republic of China and resident of Newark, California, transferred sensitive Google trade secrets and other confidential information from Google’s network to his personal account while secretly affiliating himself with PRC-based companies in the AI industry. Ding was arrested earlier this morning in Newark.
“The Justice Department will not tolerate the theft of artificial intelligence and other advanced technologies that could put our national security at risk,” said Attorney General Garland. “In this case, we allege the defendant stole artificial intelligence-related trade secrets from Google while secretly working for two companies based in China. We will fiercely protect sensitive technologies developed in America from falling into the hands of those who should not have them.”
“While we work to responsibly harness the benefits of AI, the Justice Department is on high alert to its risks, including global threats to our national security,” said Deputy Attorney General Lisa Monaco. “As alleged in today’s charges, the defendant stole from Google over 500 confidential files containing AI trade secrets, while covertly working for China-based companies seeking an edge in the AI technology race. The Justice Department will relentlessly pursue and hold accountable those who would siphon disruptive technologies – especially AI – for unlawful export.”
“Today’s charges are the latest illustration of the lengths affiliates of companies based in the People’s Republic of China are willing to go to steal American innovation,” said FBI Director Christopher Wray. “The theft of innovative technology and trade secrets from American companies can cost jobs and have devastating economic and national security consequences. The FBI will continue its efforts to vigorously pursue those responsible for stealing U.S. companies’ intellectual property and most closely guarded secrets.”
“Mr. Ding allegedly schemed to siphon off cutting-edge AI technology from Google while secretly trying to go into business with Chinese competitors,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Through the Disruptive Technology Strike Force, we will work relentlessly to find and hold accountable those who would steal advanced American technology and jeopardize our national security and economic prosperity.”
“While Linwei Ding was employed as a software engineer at Google, he was secretly working to enrich himself and two companies based in the People’s Republic of China,” said U.S. Attorney Ismail Ramsey. “By stealing Google’s trade secrets about its artificial intelligence supercomputing systems, Ding gave himself and the companies that he affiliated with in the PRC an unfair competitive advantage. This office is committed to protecting the innovation of our Silicon Valley companies. To that end, we will aggressively investigate and prosecute the theft of sensitive trade secrets by insiders like Ding, including criminal efforts to jump start illegitimate competition.”
“In the one year since its inception, the Disruptive Technology Strike Force has been relentless in protecting advanced U.S. technologies, like artificial intelligence, from malign actors,” said Assistant Secretary Matthew S. Axelrod of the Commerce Department’s Office for Export Enforcement. “Let today’s announcement serve as further warning – those who would steal sensitive U.S. technology risk finding themselves on the wrong end of a criminal indictment.”
According to court documents, the technology Ding allegedly stole involves the building blocks of Google’s advanced supercomputing data centers, which are designed to support machine learning workloads used to train and host large AI models. According to the indictment, large AI models are AI applications capable of understanding nuanced language and generating intelligent responses to prompts, tasks, or queries. The indictment describes how Google developed both proprietary hardware and software to facilitate the machine learning process powered by its supercomputing data centers. With respect to hardware, Google uses advanced computer chips with the extraordinary processing power required to facilitate machine learning and run AI applications. With respect to software, Google deploys several layers of software, referred to in the indictment as the “software platform,” to orchestrate machine learning workloads efficiently. For example, one component of the software platform is the Cluster Management System (CMS), which functions as the “brain” of Google’s supercomputing data centers. The CMS organizes, prioritizes, and assigns tasks to the hardware infrastructure, allowing the advanced chips to function efficiently when executing machine learning workloads or hosting AI applications.
According to the indictment, Google hired Ding as a software engineer in 2019. Ding’s responsibilities included developing the software deployed in Google’s supercomputing data centers. In connection with his employment, Ding was granted access to Goggle’s confidential information related to the hardware infrastructure, the software platform, and the AI models and applications they supported. The indictment alleges that on May 21, 2022, Ding began secretly uploading trade secrets that were stored in Google’s network by copying the information into a personal Google Cloud account. According to the indictment, Ding continued periodic uploads until May 2, 2023, by which time Ding allegedly uploaded more than 500 unique files containing confidential information.
In addition, the indictment alleges that Ding secretly affiliated himself with two PRC-based technology companies. According to the indictment, on or about June 13, 2022, Ding received several emails from the CEO of an early-stage technology company based in the PRC indicating Ding had been offered the position of Chief Technology Officer for the company. Ding allegedly traveled to the PRC on Oct. 29, 2022, and remained there until March 25, 2023, during which time he participated in investor meetings to raise capital for the new company. The indictment alleges potential investors were told Ding was the new company’s Chief Technology Officer and that Ding owned 20% of the company’s stock.
According to the indictment, unbeknownst to Google, by no later than May 30, 2023, Ding had founded his own technology company in the AI and machine learning industry and was acting as the company’s CEO. Ding’s company touted the development of a software platform designed to accelerate machine learning workloads, including training large AI models. As alleged in the indictment, Ding applied to a PRC-based startup incubation program and traveled to Beijing, to present his company at an investor conference on Nov. 24, 2023. As set forth in the indictment, a document related to Ding’s startup company stated, “we have experience with Google's ten-thousand-card computational power platform; we just need to replicate and upgrade it - and then further develop a computational power platform suited to China's national conditions.”
The indictment alleges Ding’s conduct violated his employment agreement as well as a separate code of conduct that Ding signed when he became a Google employee. Further, the indictment describes measures that Ding allegedly took to conceal his theft of the trade secrets. For example, he allegedly copied data from Google source files into the Apple Notes application on his Google-issued MacBook laptop. By then converting the Apple Notes into PDF files and uploading them from the Google network into as separate account, Ding allegedly evaded detection by Google’s data loss prevention systems. Likewise, the indictment describes how in December 2023 Ding allegedly permitted another Google employee to use his Google-issued access badge to scan into the entrance of a Google building – making it appear he was working from his U.S. Google office when, in fact, he was in the PRC.
Ding is charged with four counts of theft of trade secrets. If convicted, Ding faces a maximum penalty of 10 years in prison and up to a $250,000 fine for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and Commerce Department are investigating the case.
The U.S. Attorney’s Office for the Northern District of California and Justice Department National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Today’s action was coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation-states.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Chinese National Residing in California Arrested for Theft of Artificial Intelligence-Related Trade Secrets from GoogleRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Linwei Ding, aka Leon Ding, charging him with four counts of theft of trade secrets in connection with an alleged plan to steal from Google LLC (Google) proprietary information related to artificial intelligence (AI) technology. The announcement was made by Attorney General Merrick B. Garland this afternoon while participating in a “Fireside Chat” at the American Bar Association’s 39th National Institute on White Collar Crime in San Francisco. U.S. Attorney Ismail Ramsey posted a statement about the case here: https://youtu.be/l64VlrA-GUA.
According to the indictment, returned on March 5 and unsealed earlier today, Ding, 38, a national of the People’s Republic of China and resident of Newark, California, stole sensitive Google trade secrets and other confidential information from Google’s network to his personal account while secretly affiliating himself with PRC-based companies in the AI industry. Ding was arrested earlier this morning in Newark.
“The Justice Department will not tolerate the theft of artificial intelligence and other advanced technologies that could put our national security at risk,” said Attorney General Garland. “In this case, we allege the defendant stole artificial intelligence-related trade secrets from Google while secretly working for two companies based in China. We will fiercely protect sensitive technologies developed in America from falling into the hands of those who should not have them.”
“While we work to responsibly harness the benefits of AI, the Justice Department is on high alert to its risks, including global threats to our national security,” said Deputy Attorney General Lisa Monaco. “As alleged in today’s charges, the defendant stole from Google over 500 confidential files containing AI trade secrets, while covertly working for China-based companies seeking an edge in the AI technology race. The Justice Department will relentlessly pursue and hold accountable those who would siphon disruptive technologies – especially AI – for unlawful export.”
“While Linwei Ding was employed as a software engineer at Google, he was secretly working to enrich himself and two companies based in the People’s Republic of China,” said U.S. Attorney Ismail Ramsey. “By stealing Google’s trade secrets about its artificial intelligence supercomputing systems, Ding gave himself and the companies that he affiliated with in the PRC an unfair competitive advantage. This office is committed to protecting the innovation of our Silicon Valley companies. To that end, we will aggressively investigate and prosecute the theft of sensitive trade secrets by insiders like Ding, particularly when the theft endeavors to jump start illegitimate competition.”
“Today’s charges are the latest illustration of the lengths affiliates of companies based in the People’s Republic of China are willing to go to steal American innovation,” said FBI Director Christopher Wray. “The theft of innovative technology and trade secrets from American companies can cost jobs and have devastating economic and national security consequences. The FBI will continue its efforts to vigorously pursue those responsible for stealing U.S. companies’ intellectual property and most closely guarded secrets.”
“The FBI’s area of responsibility is home to internationally renowned innovation and cutting-edge technology. Unfortunately, this makes many businesses a target for criminals looking to steal crucial proprietary information, " said FBI Special Agent in Charge Robert Tripp. "This case exemplifies our commitment to protecting U.S. technologies and our ability to accelerate priority investigations when we have a pre-established relationship with private sector companies.”
“Mr. Ding allegedly schemed to siphon off cutting-edge AI technology from Google while secretly trying to go into business with Chinese competitors,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Through the Disruptive Technology Strike Force, we will work relentlessly to find and hold accountable those who would steal advanced American technology and jeopardize our national security and economic prosperity.”
“In the one year since its inception, the Disruptive Technology Strike Force has been relentless in protecting advanced U.S. technologies, like artificial intelligence, from malign actors,” said Assistant Secretary Matthew S. Axelrod of the Commerce Department’s Office for Export Enforcement. “Let today’s announcement serve as further warning – those who would steal sensitive U.S. technology risk finding themselves on the wrong end of a criminal indictment.”
According to court documents, the technology Ding allegedly stole involves the building blocks of Google’s advanced supercomputing data centers, which are designed to support machine learning workloads used to train and host large AI models. According to the indictment, large AI models are AI applications capable of understanding nuanced language and generating intelligent responses to prompts, tasks, or queries. The indictment describes how Google developed both proprietary hardware and software to facilitate the machine learning process powered by its supercomputing data centers. With respect to hardware, Google uses advanced computer chips with the extraordinary processing power required to facilitate machine learning and run AI applications. With respect to software, Google deploys several layers of software, referred to in the indictment as the “software platform,” to orchestrate machine learning workloads efficiently. For example, one component of the software platform is the Cluster Management System (CMS), which functions as the “brain” of Google’s supercomputing data centers. The CMS organizes, prioritizes, and assigns tasks to the hardware infrastructure, allowing the advanced chips to function efficiently when executing machine learning workloads or hosting AI applications.
According to the indictment, Google hired Ding as a software engineer in 2019. Ding’s responsibilities included developing the software deployed in Google’s supercomputing data centers. In connection with his employment, Ding was granted access to Google’s confidential information related to the hardware infrastructure, the software platform, and the AI models and applications they supported. The indictment alleges that on May 21, 2022, Ding began secretly uploading trade secrets that were stored in Google’s network by copying the information into a personal Google Cloud account. According to the indictment, Ding continued periodic uploads until May 2, 2023, by which time Ding allegedly uploaded more than 500 unique files containing confidential information.
In addition, the indictment alleges that Ding secretly affiliated himself with two PRC-based technology companies. According to the indictment, on or about June 13, 2022, Ding received several emails from the CEO of an early-stage technology company based in the PRC indicating Ding had been offered the position of Chief Technology Officer for the company. Ding allegedly traveled to the PRC on Oct. 29, 2022, and remained there until March 25, 2023, during which time he participated in investor meetings to raise capital for the new company. The indictment alleges potential investors were told Ding was the new company’s Chief Technology Officer and that Ding owned 20% of the company’s stock.
According to the indictment, unbeknownst to Google, by no later than May 30, 2023, Ding had founded his own technology company in the AI and machine learning industry and was acting as the company’s CEO. Ding’s company touted the development of a software platform designed to accelerate machine learning workloads, including training large AI models. As alleged in the indictment, Ding applied to a PRC-based startup incubation program and traveled to Beijing, to present his company at an investor conference on Nov. 24, 2023. As set forth in the indictment, a document related to Ding’s startup company stated, “we have experience with Google's ten-thousand-card computational power platform; we just need to replicate and upgrade it - and then further develop a computational power platform suited to China's national conditions.”
The indictment alleges Ding’s conduct violated his employment agreement as well as a separate code of conduct that Ding signed when he became a Google employee. Further, the indictment describes measures that Ding allegedly took to conceal his theft of the trade secrets. For example, he allegedly copied data from Google source files into the Apple Notes application on his Google-issued MacBook laptop. By then converting the Apple Notes into PDF files and uploading them from the Google network into as separate account, Ding allegedly evaded detection by Google’s data loss prevention systems. Likewise, the indictment describes how in December 2023 Ding allegedly permitted another Google employee to use his Google-issued access badge to scan into the entrance of a Google building – making it appear he was working from his U.S. Google office when, in fact, he was in the PRC.
Ding is charged with four counts of theft of trade secrets. If convicted, Ding faces a maximum penalty of 10 years in prison and up to a $250,000 fine for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and Commerce Department are investigating the case.
The U.S. Attorney’s Office for the Northern District of California and Justice Department National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Today’s action was coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation-states.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
ding_indictment_filed.pdfChicopee Man Sentenced to 20 Years in Prison for Child Pornography OffensesRead the Press Release
BOSTON – A Chicopee man was sentenced yesterday in federal court in Springfield for creating and distributing child sexual abuse material (CSAM).
Michael Geoffroy, 36, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 20 years in prison and 10 years of supervised release. On Feb. 16, 2023, Geoffroy pleaded guilty to three counts of sexual exploitation of a child, three counts of distribution of child pornography and one count possession of child pornography.
“There is no higher priority in this office than protecting vulnerable children. As this case demonstrates, we will continue to devote significant resources to holding accountable in individual who engages in the sexual exploitation of children,” said Acting United States Attorney Joshua S. Levy.
“Michael Geoffroy sexually abused a little girl and documented it for his own twisted gratification. His trove of horrific images of that child and others represents an unimaginable level of pain and trauma inflicted on young victims,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Locking this sexual predator up doesn’t undo that damage, not by a long shot. But it does keep him from hurting anyone else and for that we are thankful.”
In December 2020, Geoffroy used a minor to create two videos and two images of CSAM. Geoffroy then distributed the videos and images in a chat group that same day. Geoffroy was arrested the following day and, during a search of his cellphone, was found in possession of more than 100 videos and images that depicting CSAM.
Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Valuable assistance was provided by the Chicopee Police Department. Assistant U.S. Attorney Neil L. Desroches of the Springfield Branch Unit prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Caldwell Man Sentenced to 46 months for Unlawfully Possessing a FirearmRead the Press Release
BOISE – Gabriel Rendon, 25, of Caldwell, was sentenced to 46 months in federal prison for unlawful possession of a firearm, U.S. Attorney Josh Hurwit announced today.
According to court records, on March 23, 2023, officers responded to shots being fired at a local business in Nampa. Upon arriving, Rendon fled from officers. Rendon was apprehended and a loaded handgun was found inside a satchel he was carrying.
At the time of his arrest, Rendon was prohibited from possessing firearms due to a 2016 conviction for robbery. Rendon was also on parole for three prior felony convictions for robbery, aggravated assault, and possession of a controlled substance. Although Rendon admitted he was a gang member, he contends he dropped out of the gang during his previous prison sentence.
“Part of our public safety mission is enforcing the law that prohibits felons from possessing firearms, especially those people with prior violent felony convictions such as this Defendant,” said U.S. Attorney Hurwit. “We will continue to prosecute those who are prohibited from possessing firearms due to previous dangerous felony convictions.”
“This felon needs to be held accountable,” said Chief Joe Huff. “I am grateful no innocent community members and no police officers were injured or killed during this reckless incident, in the middle of the afternoon, in a busy commercial area of Nampa. I’m proud of the great teamwork between all of the agencies involved in bringing him to justice.”
U.S. District Judge Amanda K. Brailsford also ordered Rendon to serve three years of supervised release following his prison sentence. Rendon pleaded guilty to the federal charge in October of 2023.
U.S. Attorney Hurwit credited the cooperative efforts of the Nampa Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, which led to the charge.
This case was prosecuted by Assistant U.S. Attorney Francis Zebari and Special Assistant U.S. Attorney Kelsey Manweiler, who was hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth.
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.
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Broward Sheriff’s Office deputy convicted at trial of COVID-19 relief fraudRead the Press Release
MIAMI – On March 5, a federal jury in Fort Lauderdale convicted a Broward Sheriff’s Office (BSO) deputy of two counts of wire fraud for her COVID-19 relief fraud scheme.
In 2021, Stephanie Diane Smith, 53, of Sunrise, Florida, applied for and received two PPP loans for herself as a sole proprietor doing business as Children 1st Basketball Training and Agape Smith Vending, respectively, based upon materially false information about each business’s total amount of gross income for the year 2019, including a falsified IRS tax form submitted with each application. Smith also sought and received forgiveness of both fraudulently obtained PPP loans, which totaled over $31,000 in principal and interest. During the period of the scheme, Smith was employed as a deputy sheriff in BSO’s Department of Law Enforcement.
The sentencing is scheduled for May 29 before U.S. District Judge James I. Cohn. Smith faces up to 20 years in prison for each wire fraud conviction. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney for the Southern District of Florida Markenzy Lapointe; Special Agent in Charge Jeffrey B. Veltri, FBI, Miami Field Office; Special Agent in Charge Brian Tucker, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, and Broward Sheriff Gregory Tony of BSO made the announcement.
FBI Miami, FRB-OIG and BSO investigated this case. Assistant U.S. Attorneys David Snider and Trevor Jones are prosecuting it. Assistant U.S. Attorney Darren Grove is handling asset forfeiture.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-60203.
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Brothers Indicted for Conspiracy to Distribute 49 Kilograms of CocaineRead the Press Release
NEWARK, N.J. – A federal grand jury returned an indictment charging two brothers with conspiring to distribute and possessing with intent to distribute 49 kilograms of cocaine, U.S. Attorney Philip R. Sellinger announced today.
Nelson Santos Munoz, 30, and his brother, Amauris Santos Munoz, 31, both of Miami, Florida, are charged by indictment with one count of conspiracy to distribute and possess with intent to distribute cocaine and one count of possession with intent to distribute cocaine. The Santos Brothers appeared on March 5, 2024, before U.S. District Judge Zahid N. Quraishi in Trenton federal court. They were charged by criminal complaint in May 2023.
According to documents filed in this case and statements made in court:
On Jan. 26, 2023, law enforcement stopped a vehicle in Woodbridge, New Jersey, with three individuals, including the Santos brothers. During a search of the vehicle, law enforcement discovered approximately 49 kilograms of suspected cocaine, individually wrapped in packages with cellphone/plastic wrap in several suitcases and a backpack. A review of cell phone communications revealed that the Santos brothers traveled to the Dominican Republic and conspired to purchase cocaine and transport it to the United States for distribution. After importing the cocaine into the United States, the Santos brothers traveled from Florida to New Jersey with the intent to distribute the cocaine.
Each count carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life imprisonment, and a maximum fine of $10 million.
U.S. Attorney Sellinger credited members of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz, New Jersey Division, with the investigation leading to the charges. He also thanked the Woodbridge Police Department for its assistance.
The government is represented by Assistant U.S. Attorney Farhana C. Melo of the OCDETF/Narcotics Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
santosmunoz.indictment.pdf