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16 February 2024
U.S. Citizen Charged with Providing Material Support to Isis and Receiving Military-Type Training at Isis Fighter CampRead the Press Release
A complaint was unsealed today charging Harafa Hussein Abdi, 41, of Minneapolis, with providing and conspiring to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (ISIS) and receiving and conspiring to receive military-type training from ISIS. Abdi, a U.S. citizen, was recently taken into custody overseas and was transported to the United States yesterday. Abdi will be presented before U.S. Magistrate Judge Valerie Figueredo in Manhattan federal court later today.
“As stated in the complaint, Mr. Abdi left his country to join ISIS, trained as a fighter and actively aided the group’s propaganda efforts to spread its vile ideology,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “There is no higher priority for the National Security Division than to protect Americans from terrorist organizations and we will work tirelessly to find and hold accountable those who would join these groups to do our people harm wherever they may be.”
“As alleged, Harafa Hussein Abdi, a citizen of this country, traveled from Minnesota to join a group of ISIS fighters in Somalia,” said U.S. Attorney Damian Williams for the Southern District of New York. “While training with ISIS fighters in Somalia, Abdi allegedly carried an AK-47, threatened to attack civilians in New York City, and encouraged others to carry out such attacks. Our law enforcement partners have relentlessly pursued this investigation to ensure the disruption of Abdi’s alleged plans to wage terror on our shores and bring Abdi to an American court to face justice. No matter how long it takes, this office is steadfast in its commitment to investigate, disrupt and prosecute terrorist threats against Americans.”
“Abdi allegedly trained in an ISIS camp, encouraged others to fight on behalf of ISIS, and sent social media messages about committing violent acts in New York City,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “The FBI works tirelessly to protect the American people against acts of terrorism and will hold accountable all those who break our laws and endanger our citizens. We will continue to work with our law enforcement partners both here and overseas to uncover and disrupt terrorist activity.”
As alleged in the complaint, Abdi, moved from Minnesota to Somalia in 2015. Once there, he joined a group of ISIS fighters at an ISIS training camp in the Puntland region of Somalia. During his time with the group, Abdi regularly carried an AK-47 assault rifle and received training on how to use it. In addition, Abdi worked in the ISIS group’s “media” wing, where he filmed footage for distribution by a pro-ISIS media outlet.
In social media communications during his time at the ISIS camp, Abdi described how he had left the United States and joined the “Islamic state.” Abdi also stated that he had made “hijra,” an Arabic term used by ISIS supporters to refer to traveling overseas to join ISIS and engage in jihad. Abdi also sent a photograph of himself carrying an AK-47 assault rifle, as depicted below:
In or about January 2017, Abdi sent an audio clip of rap lyrics in which he expressed support for ISIS and described multiple acts of violence, including shooting and bombing individuals in New York City. Specifically, Abdi stated, “hollow tips put a hole in your Catholic vest, and chop his head off let it rest on his Catholic chest.” Abdi further stated, “We going to carry on jihad”; “Fly through America on our way to shoot New York up. They trying to shut this thing. We ain’t going. We going to come blow New York up.” Abdi sent the audio clip to at least 20 other social media users and included messages with the audio clip, such as “Fighting back the kuffar who’s at war with Muslims if [that] is not islam then I don’t know wats Islam.”
Abdi left the ISIS camp in 2017 after his relationship with the ISIS group’s leadership deteriorated. After being jailed by the group, Abdi escaped and traveled to East Africa, where he was arrested by law enforcement authorities. In subsequent Mirandized interviews with FBI personnel, Abdi admitted that he had joined the training camp, which was affiliated with a known ISIS leader in Somalia. Abdi also identified himself in an ISIS propaganda video that he helped to film at the training camp in which Abdi carried an AK-47 assault rifle, promoted ISIS and urged others to join and fight on its behalf. In the video, Abdi said, “We thank almighty God for making us His soldiers and chose us to be among the Khilafa troops,” and “So do not stay behind, brother, and get on this caravan…. Those who believe fight in the cause of Allah, and those who reject Faith fight in the cause of Evil.” Abdi also admitted that he was trained on and regularly carried an AK-47 assault rifle and practiced shooting the AK-47 in the Somali wilderness outside the camp.
Abdi is charged with (i) conspiring to provide material support to a designated foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (ii) providing material support to a designated foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (iii) conspiring to receive military-type training from a designated foreign terrorist organization, which carries a maximum penalty of five years in prison; and (iv) receiving military-type training from a designated foreign terrorist organization, which carries a maximum penalty of 10 years in prison, a fine or both.
The FBI’s New York Field Office’s Joint Terrorism Task Force investigated the case. The National Security Division’s Counterterrorism Section, Justice’s Department’s Office of International Affairs, FBI’s Counterterrorism Division, the FBI’s International Operations Division and the Department of Homeland Security, U.S. Customs and Border Protection provided assistance.
Assistant U.S. Attorney Nicholas S. Bradley for the Southern District of New York is prosecuting the case, with assistance from Trial Attorney Kevin Nunnally of the National Security Division’s Counterterrorism Section.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Citizen Charged with Providing Material Support to ISIS and Receiving Military-Type Training at ISIS Fighter CampRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Matthew G. Olsen, the Assistant Attorney General for National Security; James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a Complaint charging HARAFA HUSSEIN ABDI with providing and conspiring to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (“ISIS”), and receiving and conspiring to receive military-type training from ISIS. ABDI, a U.S. citizen, was recently taken into custody overseas and was transported to the United States yesterday, February 15, 2024. ABDI will be presented before U.S. Magistrate Judge Valerie Figueredo in Manhattan federal court later today.
U.S. Attorney Damian Williams said: “As alleged, Harafa Hussein Abdi, a citizen of this country, traveled from Minnesota to join a group of ISIS fighters in Somalia. While training with ISIS fighters in Somalia, Abdi allegedly carried an AK-47, threatened to attack civilians in New York City, and encouraged others to carry out such attacks. Our law enforcement partners have relentlessly pursued this investigation to ensure the disruption of Abdi’s alleged plans to wage terror on our shores and bring Abdi to an American court to face justice. No matter how long it takes, this Office is steadfast in its commitment to investigate, disrupt, and prosecute terrorist threats against Americans.”
Assistant Attorney General Matthew G. Olsen said: “As stated in the complaint, Mr. Abdi left his country to join ISIS, trained as a fighter, and actively aided the group’s propaganda efforts to spread its vile ideology. There is no higher priority for the National Security Division than to protect Americans from terrorist organizations, and we will work tirelessly to find and hold accountable those who would join these groups to do our people harm wherever they may be.”
FBI Assistant Director in Charge James Smith said: “Harafa Hussein Abdi allegedly moved overseas to join ISIS, aided in their propaganda efforts, and openly threatened violence against New York City. Abdi was arrested before his plans came to fruition. The FBI’s New York Joint Terrorism Task Force is determined to bring to justice anyone willing to carry out evil in order to protect the American people.”
NYPD Commissioner Edward A. Caban said: “As alleged, this arrest is the result of New York law enforcement’s ongoing commitment to hold accountable anyone who voices solidarity with terrorist organizations and, motivated by ideology, desires to harm Americans. I commend everyone from the NYPD, the FBI, and the dozens of other agencies on New York’s Joint Terrorism Task Force for always relying heavily on the strength of our partnerships here and around the world.”
As alleged in the Complaint:[1]
ABDI is a U.S. citizen who moved from Minnesota to Somalia in 2015. Once there, ABDI joined a group of ISIS fighters at an ISIS training camp in the Puntland region of Somalia. During his time with the ISIS group, ABDI regularly carried an AK-47 assault rifle and received training on how to use it. In addition, ABDI worked in the ISIS group’s “media” wing, where he filmed footage for distribution by a pro-ISIS media outlet.
In social media communications during his time at the ISIS camp, ABDI described how he had left the United States and joined the “Islamic state.” ABDI also stated that he had made “hijra,” an Arabic term used by ISIS supporters to refer to traveling overseas to join ISIS and engage in jihad. ABDI also sent a photograph of himself carrying an AK-47 assault rifle, as depicted below:
In or about January 2017, ABDI sent an audio clip of rap lyrics in which ABDI expressed his support for ISIS and described multiple acts of violence, including shooting and bombing individuals in New York City. Specifically, ABDI stated, “hollow tips put a hole in your Catholic vest, and chop his head off let it rest on his Catholic chest.” ABDI further stated, “We going to carry on jihad”; “Fly through America on our way to shoot New York up. They trying to shut this thing. We ain’t going. We going to come blow New York up.” ABDI sent the audio clip to at least 20 other social media users and included messages with the audio clip, such as “Fighting back the kuffar who’s at war with Muslims if [that] is not islam then I don’t know wats Islam.”
ABDI left the ISIS camp in 2017 after his relationship with the ISIS group’s leadership deteriorated. After being jailed by the ISIS group, ABDI escaped and traveled to East Africa, where he was arrested by law enforcement authorities. In subsequent Mirandized interviews with FBI personnel, ABDI admitted that he had joined the ISIS training camp in the Puntland region, which was affiliated with a known leader of ISIS fighters in Somalia. ABDI also identified himself in an ISIS propaganda video that he helped to film at the ISIS training camp in which ABDI carried an AK-47 assault rifle, promoted ISIS, and urged others to join ISIS and fight on its behalf. In the video, ABDI stated, “We thank almighty God for making us His soldiers and chose us to be among the Khilafa troops,” and “So do not stay behind, brother, and get on this caravan. . . Those who believe fight in the cause of Allah, and those who reject Faith fight in the cause of Evil.” ABDI also admitted that he was trained on and regularly carried an AK-47 assault rifle while at the ISIS camp and practiced shooting the AK-47 in the Somali wilderness outside the camp.
* * *
ABDI, 41, of Minneapolis, Minnesota, is charged with (i) conspiring to provide material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; (ii) providing material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; (iii) conspiring to receive military-type training from a designated foreign terrorist organization, which carries a maximum sentence of five years in prison; and (iv) receiving military-type training from a designated foreign terrorist organization, which carries a maximum sentence of 10 years in prison, a fine, or both.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies. Mr. Williams also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, the Department of Justice’s Office of International Affairs, the FBI’s Counterterrorism Division, the FBI’s International Operations Division, and the Department of Homeland Security, U.S. Customs and Border Protection for their assistance.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorney Nicholas S. Bradley is in charge of the prosecution, with assistance from Trial Attorney Kevin Nunnally of the Counterterrorism Section.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two Riverside County Brothers Plead Guilty to Priority Mail Insurance Scam that Defrauded U.S. Postal Service Out of More Than $2.3 MillionRead the Press Release
LOS ANGELES – Two Temecula brothers pleaded guilty today to defrauding the United States Postal Service (USPS) out of more than $2.3 million by filing thousands of fraudulent Priority Mail insurance claims.
Anwer Fareed Alam, 35, and Yousofzay Fahim Alam, 31, each pleaded guilty to one count of mail fraud.
According to their plea agreements, from October 2016 to May 2019, the Alam brothers purchased from the USPS Priority Mail packages and postages that included $100 in insurance for lost or damaged parcel contents. Anwer Alam wrapped empty packages or packages containing little or no value and then sent them via Priority Mail to fake recipients at fictitious addresses.
Yousofzay Alam then submitted to USPS fraudulent insurance claims via the Postal Service’s website and falsely certified that the packages contained items of higher value than they did and lied that the packages were lost or had been damaged in transit. Yousofzay Alam also included false invoices as well as photographs of goods that were not actually inside the parcels. The Alam brothers used aliases and fake business names to hide the number of false insurance claims they submitted.
Relying on the false information in the fraudulent insurance claim forms, USPS issued checks to the Alam brothers to cover their purported losses up to $100 in value plus the cost of shipping. USPS sent the insurance claim checks by mail to the Alam brothers to various addresses in Temecula, which included their home addresses, their business addresses, and approximately 15 different post office boxes at two different post offices. The brothers then deposited the fraudulently obtained funds into their bank accounts.
For example, in November 2018, the Alam brothers fraudulently caused to be sent in the mail via USPS a $106.59 Priority Mail claim check, which was mailed to a business address in Temecula.
The total loss caused to USPS through this scheme was at least $2,367,033.
United States District Judge Wesley L. Hsu scheduled a November 1 sentencing hearing for the Alam brothers, at which time each of them will face a statutory maximum sentence of 20 years in federal prison.
The United States Postal Service Office of Inspector General investigated this matter.
Assistant United States Attorney Courtney N. Williams of the Riverside Branch Office is prosecuting this case.
Two New Orleans Men Plead Guilty to Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – KEVIN TYLER, III, age 25, and ANTHONY ROMAN, age 25, residents of New Orleans, pleaded guilty on February 7, 2024, before U.S. District Judge Jay C. Zainey to federal drug and weapons charges. TYLER pleaded guilty to possession with intent to distribute 40 grams or more of fentanyl and a quantity of cocaine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 841(b)(1)(C). ROMAN pleaded guilty to possession with intent to distribute tapentadol and conspiracy to distribute tapentadol and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B-D), and 846. TYLER and ROMAN also each pleaded guilty to possession of a firearm in furtherance of drug trafficking, in violation of Title 18, United States Code, Section 924(c). ROMAN additionally pleaded guilty to possessing a vehicle stolen from the Norfolk Southern Automotive Distribution Facility, in violation of Title 18, United States Code, Section 659.
According to court documents, on January 29, 2023, law enforcement observed ROMAN driving an Infinity QX80 that was stolen from the Norfolk Southern Automotive Distribution Facility. Federal Bureau of Investigation (FBI) subsequently executed search warrants at two of ROMAN’s residences and recovered tapentadol, marijuana, and ten firearms. ROMAN purchased two of the firearms and possessed them in furtherance of drug trafficking.
The FBI executed a search warrant at TYLER’s residence and recovered fentanyl, a fentanyl precursor, cocaine, and loaded firearms. TYLER possessed the fentanyl and cocaine with the intent to distribute those substances and possessed a firearm in furtherance of drug trafficking.
For his conviction for possession with intent to distribute 40 grams or more of fentanyl, TYLER faces a minimum of five years and up to 40 years in prison, up to a $5,000,000 fine, and at least four years of supervised release. For his convictions for possession with intent to distribute and conspiracy to distribute tapentadol, ROMAN faces up to 20 years in prison, up to a $1,000,000 fine, and at least three years of supervised release on each count. For their convictions for possessing a firearm in furtherance of drug trafficking, TYLER and ROMAN each face a minimum of five years and up to life in prison, which must run consecutively to any other sentence, up to a $250,000 fine, and up to five years of supervised release. Finally, for his conviction for possessing a vehicle stolen from the Norfolk Southern Automotive Distribution Facility, ROMAN faces up to 10 years in prison, up to a $250,000 fine, and up to three years of supervised release. As to each count of conviction, TYLER and ROMAN must pay a mandatory $100 special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
Two Men Charged with Sexually Exploiting MinorRead the Press Release
BOSTON – Two men have been charged in U.S. District Court for their alleged sexual exploitation of a minor female and filming the assault.
Michael Lamountain, 41, of Oxford, Mass. and Jalen Latimer, 25, of Woonsocket, R.I., were charged with one count each of sexual exploitation of a minor. Both defendants are in state custody on related offenses and will appear in federal court in Worcester today at noon.
According to the criminal complaint, on or about July 7, 2022, Latimer traveled to Oxford where he and Lamountain created video recordings of themselves sexually exploiting a minor.
Lamountain was previously arrested in August 2023 and subsequently charged in Worcester Superior Court with rape of a child; aggravated indecent assault and battery on a child; depicting minors in sexual conduct; human trafficking of a minor; possession of child pornography; distribution of child pornography; and intimidation of a witness. According to court documents, Latimer was arrested in February 2024 and is facing charges in Worcester Superior Court of rape of a child, aggravated indecent assault and battery of a child, human trafficking of a minor and depicting a minor in sexual conduct.
The charge of sexual exploitation of a minor provides for a mandatory minimum sentence of 15 years and up to 30 years in prison, up to a lifetime of supervised release and a fine of $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; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Worcester Police Chief Paul B. Saucier; and Oxford Police Chief Michael K. Daniels made the announcement. Valuable assistance was provided by Rhode Island State Police and Massachusetts State Police. Assistant U.S. Attorney Kristen M. Noto of the Worcester Branch Office 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.
The details contained in the charging document are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Two Maryland Men Charged with Stealing over 50 Firearms from Virginia Firearms StoreRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment yesterday charging two Maryland residents with the burglary of a federal firearms licensee (FFL), conspiracy to steal firearms from FFLs, and interstate transportation of stolen firearms and stolen vehicles.
According to allegations in the indictment, Cedric Minger, 21, and Victor Jones, 22, stole more than 50 firearms—including pistols, rifles, short-barreled rifles, and silencers—from Dominion Defense, an FFL in Springfield, Virginia, on April 29, 2023. According to the indictment, Minger, Jones, and two co-conspirators traveled from Washington, D.C. to Dominion Defense in a stolen Acura ILX. After breaking the business’s exterior glass door, the defendants and their co-conspirators allegedly struggled to gain entry through the interior door, with Minger at one point resorting to shooting at the door with a firearm. Ultimately, Minger allegedly shimmied his way through an opening at the top of the interior door. Once inside, Minger allegedly grabbed more than 50 firearms, passing them along to his co-conspirators, including Jones, who then loaded them into the stolen Acura, which they used to flee back to Washington, D.C.
According to the indictment, as part of the conspiracy to steal firearms from FFLs, Minger and Jones attempted to burglarize Engage Armament in Rockville, Maryland, on April 30, 2023, and Minger and at least two co-conspirators attempted to burglarize Top Gun Firearms in Fallston, Maryland, on May 10, 2023.
The indictment also charges Minger and Jones with multiple counts relating to the possession and interstate transportation of stolen vehicles, including the above-mentioned Acura and a Nissan Sentra used to travel to and from the attempted burglary of Top Gun Firearms.
If convicted, Minger and Jones face a maximum of five years in prison for the conspiracy to steal firearms from FFLs, and up to 10 years in prison for each additional count charged in the indictment. 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; Steve T. Descano, Commonwealth’s Attorney for Fairfax County; Craig B. Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division; and Kevin Davis, Fairfax County Chief of Police, made the announcement.
Significant assistance on this investigation was provided by the City of Fairfax Police Department, Metropolitan Police Department, Alexandria Police Department, Montgomery County Police Department, Maryland State Police, Prince George’s County Police Department, Howard County Police Department, and Prince William County Police Department.
Assistant U.S. Attorneys Meredith Edwards and Cristina C. Stam are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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-39.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
Two Individuals Convicted for $11M COVID-19 Relief Fraud SchemeRead the Press Release
A federal jury in Atlanta convicted a Georgia man and woman yesterday for their roles in an over $11 million Paycheck Protection Program (PPP) fraud scheme.
Teldrin Foster, 42, of Decatur, was convicted of bank fraud, wire fraud, conspiracy to commit bank fraud and wire fraud, false statements to a federally insured financial institution, and money laundering in connection with 14 loan applications.
Carla Jackson, 55, of Tucker, was convicted of two counts of money laundering in connection with laundering the proceeds of a PPP loan.
According to court documents and evidence presented at trial, between April and August 2020, Foster and co-conspirators submitted, or assisted in the submission of, PPP loan applications on behalf of 14 businesses seeking loans of approximately $800,000 for each company. In the loan applications, the co-conspirators certified that each applicant business was in operation on Feb. 15, 2020, and had employees for whom it paid salaries and payroll taxes or that it paid independent contractors; that the funds would be used to retain workers and maintain payroll or to make mortgage interest payments, lease payments, and utility payments; and that the information provided in the application and in all supporting documents was true and accurate in all material respects. The co-conspirators reported that each business had approximately 60 employees and approximately $300,000 in average monthly payroll expenses. To support these payroll figures, each business’s loan application was accompanied by an IRS Form 941, which employers use to report payroll taxes. In reality, each Form 941 was fraudulent.
After the PPP loan proceeds were deposited into the businesses’ accounts, Jackson and others laundered certain of the funds through a series of transactions that were devised to disguise the origins of the funds and how the funds were spent.
The defendants face a maximum penalty of 20 years in prison on each of the wire fraud and money laundering charges and a maximum penalty of 30 years in prison on each of the bank fraud and false statement to a federally insured bank charges. 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 Ryan K. Buchanan for the Northern District of Georgia, Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division, Acting Special Agent in Charge Demetrius Hardeman of the IRS Criminal Investigation (IRS-CI) Atlanta Field Office, and Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration Office of Inspector General (SBA-OIG) Eastern Region made the announcement.
The FBI, IRS-CI, and SBA-OIG investigated the case.
Trial Attorney Siji Moore of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Tal Chaiken and Samir Kaushal for the Northern District of Georgia are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Two Former U.S. Marines and Nurse Practitioner Sentenced in $65 Million TRICARE FraudRead the Press Release
SAN DIEGO – Three members of a massive conspiracy to bilk the military’s healthcare program known as TRICARE out of more than $65 million have been sentenced in federal court.
Former U.S. Marines, Daniel Castro and Jeremy Syto, were sentenced to 21 months and 15 months, respectively; Nurse Practitioner Candace Craven was sentenced to serve three months in home confinement. Castro and Syto recruited fellow Marines to receive expensive compounded drugs; Craven and others wrote bogus prescriptions and filled out fraudulent paperwork to process the insurance reimbursements. All told, tens of millions of dollars in false claims were submitted; everyone got kickbacks.
All of the defendants were working for Jimmy and Ashley Collins, a married couple living in Birchwood, Tennessee, who quarterbacked the scheme. Two weeks ago, Jimmy Collins received a 10-year prison sentence; Ashley Collins was sentenced to 18 months in home confinement. To account for all the fraud, the couple was ordered to pay $65,679,512.71 in restitution to Defense Health Agency and TRICARE.
According to plea agreements, the Marines who Castro and Syto recruited agreed to receive the pricey compounded medications in return for a monthly kickback of approximately $300. For young Marines-turned-straw-beneficiaries, this money significantly augmented their monthly paycheck. One defendant noted “it took very little work to sign people up to receive free money.”
For recruiting bogus patients, Castro and Syto were paid a commission—somewhere between 3 to7 percent of the total TRICARE reimbursement paid to the pharmacy for the drugs sent to their recruits. By the time this fraud scheme was in full swing, the average cost for these compounded drugs was more than $13,000 for a 30-day supply, peaking at around $25,000 for certain individual drugs. Over the course of the conspiracy, the illegal kickbacks amounted to at least $1,013,450.36 for Castro and $264,000 for Syto.
In total, TRICARE paid at least $11,949,710.15 in insurance reimbursements for compounded medications prescribed to straw beneficiaries directly recruited by Castro. During the same period, TRICARE paid at least $8,620,215.83 for compounded medications prescribed to straw beneficiaries directly recruited by Syto.
Nurse Practitioner Craven admitted that her primary role was to write and process fraudulent prescriptions and fill out other fraudulent paperwork for compounded drugs for the straw beneficiaries.
According to the pleadings, the sharp increase in the number of bogus prescriptions for compounded drugs was the result of multiple fraud schemes, including this one, that popped up around the country. As a result, the TRICARE program faced a $2 billion explosion in liability for compounded prescription drugs.
“This outrageous scheme undermined health services for those who risk their lives to serve our country,” said U.S. Attorney Tara McGrath. “Our military members and taxpayers deserve so much better. This case reflects our dedication to the well-being of our armed forces and our steadfast protection of the U.S. taxpayer.”
During the course of the investigation, authorities seized numerous items and properties purchased by the Collinses and others with the proceeds of the fraud: an 82-foot yacht; multiple luxury vehicles, including two Aston Martins; a multimillion-dollar investment annuity; gold and silver bars; dozens of pieces of farm equipment and tractor-trailer trucks; and three pieces of Tennessee real estate.
This case was prosecuted by Assistant U.S. Attorney Mark W. Pletcher.
DEFENDANTS Case Number: 18-CR-0432-JLS
Daniel Castro Age: 36 Oak Lawn, IL
Jeremy Syto Age: 30 Chula Vista, CA
DEFENDANTS Case Number: 18-CR-4209-JLS
Candace Michelle Craven Age: 57 Apison, TN
SUMMARY OF CHARGES
Daniel Castro:
Conspiracy, in violation of 18 U.S.C. § 1349, 1347
Maximum penalty: Ten years in prison and $250,000 fine or double loss amount, whichever is greater
An order of restitution requiring defendant to repay at least $11,949,710.15 to DHA/TRICARE
Jeremy Syto:
Conspiracy, in violation of 18 U.S.C. § 1349, 1347
Maximum penalty: Ten years in prison and $250,000 fine or double loss amount, whichever is greater
An order of restitution requiring defendant to repay at least $8,620,215.83 to DHA/TRICARE
Candace Craven:
Conspiracy, in violation of 18 U.S.C. § 1349, 1347
Maximum penalty: Ten years in prison and $250,000 fine or double loss amount, whichever is greater
An order of restitution requiring defendant to repay at least $32,750.00 to DHA/TRICARE
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
IRS Criminal Investigation Division, Gulfport, MS
Federal Bureau of Investigation - Jackson, MS Field Office
Temich-Ramirez Sentenced to 10 Months for Illegally Possessing a FirearmRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on February 16, 2024, Ciro Temich- Ramirez, 35 of Mexico, was sentenced by Chief United States District Judge Geoffrey W. Crawford to a term of 10 months’-imprisonment. Temich-Ramirez previously pleaded guilty to illegal possession of a firearm by an individual who is unlawfully in the United States.
According to court records, on September 30, 2023, a federal agent encountered Temich-Ramirez less than one mile south of the United States and Canada border in North Troy, Vermont. Temich-Ramirez was standing next to a vehicle. Following a brief conversation, a physical altercation ensued between the agent and Temich-Ramirez. Additional federal agents responded and, after they restrained Temich-Ramirez, found a shotgun in Temich-Ramirez’s car. Law enforcement also found ammunition, methamphetamine, brass knuckles, and a knife. Temich-Ramirez, who is a Mexican national, is prohibited from possessing firearms because he is an individual unlawfully in the United States.
United States Attorney Nikolas P. Kerest commended the investigatory efforts and rapid response of the United States Border Patrol.
The case was prosecuted by Assistant U.S. Attorney Zachary Stendig. Temich-Ramirez was represented by Assistant Federal Public Defender Sara Puls.
Springfield, Illinois, Man Sentenced to Twenty Years for Drug TraffickingRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, man, Denziel Witherspoon, 32, was sentenced on February 15, 2024, by Senior U.S. District Judge Sue Myerscough to twenty years in prison to be followed by ten years of supervised release, for his role in a wide-spread drug conspiracy lasting from approximately May of 2020 through November of 2020.
At the sentencing hearing, Witherspoon was held accountable for 72,000 grams of methamphetamine, 12,000 grams of heroin, 6,000 grams of fentanyl, and 5,129.1 grams of marijuana. During the hearing, Judge Myerscough noted that the amount of drugs Witherspoon was responsible for was the most she had seen during her judicial career.
Co-defendants in the case have received the following sentences James Cooper, 180 months; Isadore Montgomery, 120 months; Rashaud Brown, 84 months; Paul Davis, 40 months; and Taylor Cockrell, 36 months.
Charges remain pending against Derrick Bailey, Lavar Maney, Dorothy Jackson, Christopher Wallace, Haley Riley, Haylee Vaughn, and Shelton Witherspoon. Members of the public are reminded that an indictment is merely an accusation and defendants are presumed innocent unless proven guilty.
Witherspoon was indicted on December 15, 2020, and pleaded guilty on February 9, 2023. He has remained in the custody of the United States Marshal since his arrest.
The statutory penalties for the most serious charge Witherspoon was convicted of include, 15 years to life imprisonment, up to a $20,000,000 fine, and up to a life term of supervised release.
This case was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation, Springfield Field Office, Illinois State Police, and Springfield Police Department Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution.
The case against Witherspoon was part of an investigation of the Springfield based Boss Playas street gang and was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Russian Citizen Pleads Guilty to Selling Stolen Financial Information on Criminal Internet Marketplace, SlilppRead the Press Release
WASHINGTON – Georgy Kavzharadze, 27, pleaded guilty today to being a prolific vendor of stolen financial information, login credentials, and other personally identifying information (PII) on a criminal internet marketplace called Slilpp, announced U.S. Attorney Matthew M. Graves and FBI Special Agent in Charge David J. Scott of the FBI Washington Field Office Criminal and Cyber Division.
Kavzharadze pleaded guilty to conspiracy to commit bank fraud and wire fraud before U.S. District Judge Colleen Kollar-Kotelly, who scheduled sentencing for July 19, 2024.
Kavzharadze is also known as “George” and “Georgii” and went by online monikers of “TeRorPP,” “Torqovec,” and “PlutuSS.” In Cyrillic his name is ГЕОРГИЙ КАХОВИЧ КАВЖАРАДЗЕ.
According to court documents, between July 2016 and May 2021, Kavzharadze, using the name “TeRorPP,” listed for sale over 626,100 stolen login credentials on Slilpp and sold more than 297,300 of them on the illegal marketplace. Those credentials were subsequently linked to $1.2 million in fraudulent transactions, or attempted transactions. On May 27, 2021, Kavzharadze's account on Slilpp listed 240,495 login credentials for sale that would allow the buyer to use the information to steal money from the victim’s online payment and bank accounts. The credentials included access to bank accounts in New York, California, Nevada, and Georgia. Kavzharadze only accepted Bitcoin as payment for the credentials. An FBI analysis connected Kavzharadze to withdrawals of more $200,000 in Slilpp profits from his Bitcoin account.
In June 2021, the FBI, in a coordinated action with international law enforcement partners, disrupted Slilpp by seizing its infrastructure and domain names. The Slilpp database contained a wealth of historical information about Slilpp vendors, customers and transactions, including subscriber and payment information for individual accounts that have been used to buy and sell login credentials over Slilpp. The database accurately reflected known Slilpp transactions and subscriber records, including FBI undercover purchases.
On August 19, 2021, Kavzharadze was charged with conspiracy to commit bank fraud and wire fraud, bank fraud, access device fraud, and aggravated identity theft. He was subsequently extradited to the United States. He had an initial appearance in the U.S. District Court on May 18, 2022.
This case was investigated by the FBI.
This case is being prosecuted by Assistant U.S. Attorney Christine Macey and Special Assistant U.S. Attorney Joseph “Tony” Misher. Valuable assistance was provided by Paralegal Specialist Lisa Abbe, former Assistant U.S. Attorney Demian S. Ahn, and former Paralegal Specialist Michon Tart.
Richmond Man Pleads Guilty to Mail Theft and Bank Fraud SchemeRead the Press Release
RICHMOND, Va. – A Richmond man pleaded guilty today to conspiring to carry out a bank fraud scheme that targeted victims whose personal and financial information the defendant and his co-conspirators had obtained by stealing mail from United States Postal Service (USPS) mailboxes.
According to court documents, Olden Ellerbe III, 24, conspired with other individuals to steal or otherwise unlawfully obtain U.S. mail, sometimes using stolen or otherwise misappropriated USPS “arrow” keys, which unlock all Postal Service blue collection boxes within a given geographic area. Ellerbe and his co-conspirators obtained the personal and financial information of numerous victims through these mail thefts and misappropriations, and utilized that stolen information to fraudulently withdraw funds from those victims’ accounts at local banking institutions.
Ellerbe and his co-conspirators targeted the victims’ financial accounts through a variety of means, to include creating fictitious checks drafted on the victims’ bank accounts; utilizing the victims’ stolen debit and/or credit cards to withdraw funds from the victims’ bank accounts; and applying for loans in the names of these victims (and then withdrawing the fraudulently obtained loan proceeds with the victims’ stolen debit cards).
At the time of his arrest on November 15, 2023, Ellerbe and another conspirator had just completed the final transaction in a series of fraudulent withdrawals—amounting to a total of $85,000—from a victim’s bank account. Ellerbe possessed both a Glock handgun and numerous items stolen from the U.S. mail, including 83 stolen checks, $59,940 in U.S. currency, nine stolen credit or debit cards, and six stolen U.S. savings bonds.
Ellerbe is scheduled to be sentenced on August 19. He faces a maximum penalty of 35 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, and Ajay D. Lall, Acting Inspector in Charge for the U.S. Postal Inspection Service – Washington Division, made the announcement after U.S. District Judge David J. Novak accepted the plea.
Assistant U.S. Attorneys Thomas A. Garnett and Robert Day are prosecuting the case.
U.S. Attorney Aber thanked Colette Wallace McEachin and the City of Richmond Office of the Commonwealth’s Attorney for their assistance in this matter.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-9.
Retired FBI Special Agent in Charge Sentenced for Concealing Information from the Federal Bureau of InvestigationRead the Press Release
WASHINGTON – Charles F. McGonigal, 55, a former Federal Bureau of Investigation (FBI) Special Agent in Charge of the New York Field Office, was sentenced today to 28 months in prison for his undisclosed receipt of $225,000 in cash from an individual with ties to the Albanian government while McGonigal was supervising counterintelligence investigations.
The sentence was announced by U.S. Attorney Matthew M. Graves; FBI Assistant Director in Charge Donald Alway of the Los Angeles Field Office; and FBI Assistant Director in Charge David Sundberg of the Washington Field Office.
In addition to the prison term, U.S. District Court Judge Colleen Kollar-Kotelly ordered McGonigal to serve three years of supervised release. McGonigal pleaded guilty on September 22, 2023, to one count of concealing material facts. In imposing the sentence, the Court found that McGonigal’s conduct involved substantial interference with the administration of justice.
According to papers filed with the court, McGonigal was responsible for overseeing counterintelligence and national security matters when he served as Special Agent in Charge (SAC) of the FBI’s New York Field Office from August 2017 through his retirement from the FBI in September 2018. During this time, McGonigal concealed from the FBI the nature of his relationship with a former foreign security officer and businessperson who had ongoing business interests in foreign countries and before foreign governments. Specifically, McGonigal hid from the FBI that he received at least $225,000 in cash from the individual and traveled abroad with him and met with foreign nationals, in-part to advance their private business interests.
The FBI arrested McGonigal on January 21, 2023, at J.F.K. International Airport in New York. He was simultaneously indicted on charges by DDC and Southern District of New York. In December 2023, McGonigal was sentenced to 50 months in prison and ordered to pay a $40,000 fine for conspiring to violate the International Emergency Economic Powers Act (IEEPA) and to commit money laundering in an unrelated case being prosecuted in the Southern District of New York.
Today’s sentence of 28 months will be served consecutively with McGonigal’s previous sentence of 50 months out of the Southern District of New York.
This case is being investigated by the FBI’s Los Angeles and Washington Field Offices.
The case was prosecuted by Assistant U.S. Attorneys Elizabeth Aloi and Stuart D. Allen, and former Assistant U.S. Attorney Michael Friedman of the U.S. Attorney’s Office for the District of Columbia, with assistance from Deputy Chief Evan N. Turgeon of the DOJ’s National Security Division Counterintelligence and Export Control Section, and the Criminal Division’s Office of International Affairs.
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Retired FBI Special Agent in Charge Sentenced for Concealing Information from the FBIRead the Press Release
Charles F. McGonigal, 55, a former FBI Special Agent in Charge of the New York Field Office, was sentenced today to 28 months in prison followed by three years of supervised release for his undisclosed receipt of $225,000 in cash from an individual with ties to the Albanian government while McGonigal was supervising counterintelligence investigations.
McGonigal pleaded guilty on Sept. 22, 2023, to one count of concealing material facts. In imposing the sentence, the court found that McGonigal’s conduct involved substantial interference with the administration of justice.
According to papers filed with the court, McGonigal was responsible for overseeing counterintelligence and national security matters when he served as Special Agent in Charge of the FBI New York Field Office from August 2017 through his retirement from the FBI in September 2018. During this time, McGonigal concealed from the FBI the nature of his relationship with a former foreign security officer and businessperson who had ongoing business interests in foreign countries and before foreign governments. Specifically, McGonigal hid from the FBI that he received at least $225,000 in cash from the individual and traveled abroad with him and met with foreign nationals, in-part to advance their private business interests.
The FBI arrested McGonigal on Jan. 21, 2023, at J.F.K. International Airport in New York. He was simultaneously indicted on charges by the U.S. Attorneys’ Offices for the District of Columbia and the Southern District of New York. In December 2023, McGonigal was sentenced to 50 months in prison and ordered to pay a $40,000 fine for conspiring to violate the International Emergency Economic Powers Act (IEEPA) and to commit money laundering in an unrelated case being prosecuted in the Southern District of New York.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Matthew M. Graves for the District of Columbia, Assistant Director in Charge Donald Alway of the Los Angeles Field Office and Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement.
The FBI Los Angeles and Washington Field Offices investigated the case.
Assistant U.S. Attorneys Elizabeth Aloi and Stuart D. Allen and former Assistant U.S. Attorney Michael Friedman for the District of Columbia prosecuted the case, with assistance from Deputy Chief Evan N. Turgeon of the National Security Division’s Counterintelligence and Export Control Section and the Justice Department’s Office of International Affairs.
Report to Waterville Police of ‘Large-Scale Drug Trafficker’ Leads to 17 ½-Year Sentence for Local ManRead the Press Release
BANGOR, Maine: A Waterville-area man was sentenced today in U.S. District Court in Bangor for possessing fentanyl and cocaine with the intent to distribute.
U.S. District Judge Lance E. Walker sentenced Victor Soto Sanchez, 39, to 210 months in prison followed by five years of supervised release. Soto Sanchez had been found guilty on October 18, 2023, following a two-day federal jury trial.
According to the evidence presented during the trial, in late November 2021, the Waterville Police Department received information about a large-scale drug trafficker selling cocaine and fentanyl out of his apartment. The resulting three-week drug investigation culminated in the execution of a search warrant at Soto Sanchez’s residence where law enforcement found approximately five pounds of fentanyl in pill and powder form, almost five pounds of cocaine, over $5,000 in cash, and several firearms. The value of the narcotics seized was over $400,000.
The Waterville Police Department and Homeland Security Investigations investigated the case with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Maine State Police; and U.S. Customs and Border Protection.
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Recidivist Offender Sentenced to Nearly 15 Years in Federal Prison for Unlawful Possession of a Machinegun While on Supervised ReleaseRead the Press Release
PITTSBURGH, Pa. – A former resident of the East Hills area of Pittsburgh, Pennsylvania, has been sentenced in federal court to 10 years in prison followed by three years of supervised release for his conviction on charges of possession of a firearm and ammunition by a convicted felon and possession of a machinegun, United States Attorney Eric G. Olshan announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Oronde Shelton, 51, on February 13, 2024.
According to information presented to the Court, on March 17, 2021, Shelton possessed a semi-automatic Glock pistol equipped with an extended magazine and an aftermarket auto-sear, commonly referred to as a “Glock switch,” which rendered the gun capable of firing in a fully automatic capacity. Under federal law, the auto-sear or switch device was itself a machinegun. At the time of this offense, Shelton was a convicted felon and therefore prohibited from possessing any firearm or ammunition.
By his own admission at the time of his guilty plea, Shelton had used the machinegun on three occasions prior to his 2021 arrest, including during an exchange of gunfire on Frankstown Road in which an innocent bystander was struck by a bullet in his right ankle. In the incident that served as the basis for the most recent federal charges against him, Shelton admitted that he was driving in the North Side of Pittsburgh with the modified Glock pistol on the passenger seat. After occupants of another vehicle pulled up to Shelton’s vehicle and opened fire, Shelton returned fire from his weapon’s 30-round capacity magazine, shooting through his own windshield and striking a building nearby and at least one parked vehicle. Shortly after, Shelton abandoned his vehicle and walked away with his fully automatic firearm, which was found in his residence in April 2021 at the time of his arrest.
Judge Wiegand rejected Shelton’s attempt to minimize his conduct by claiming that he needed to carry the firearm for protection, finding that such a defense is unavailable for a felon’s “sustained possession of a firearm for personal protection over the course of” a period of months and “based on a generalized concern that unnamed individuals might” present a threat. Moreover, the Court clarified, because the law “prohibits anyone, even law-abiding individuals, from possessing a machinegun . . . it would be nonsensical for there to be an exception for ‘justified’ possession of a machinegun.”
At the time of these latest violations, Shelton was serving a term of supervised release following a prior 120-month federal prison sentence for his participation in a conspiracy to distribute large quantities of heroin in 2008. As a result of his current firearms conviction, Judge Wiegand determined that Shelton had violated the terms of his federal supervision, which the Court subsequently revoked, sentencing Shelton to an additional 57 months’ incarceration to be served consecutively to the 120 months he received for the machinegun possession.
“Oronde Shelton has repeatedly endangered the community, and in particular innocent bystanders, with his use of illegal firearms, in this case, a machinegun,” said U.S. Attorney Olshan. “This combined sentence of nearly 15 years is a recognition of how dangerous and destructive machineguns are, particularly when possessed and used by chronic violent offenders. Through coordinated efforts by our federal, state, and local law enforcement partners, and by using federal resources to investigate and prosecute those who are driving violence, we continue to prioritize the safety of our neighborhoods.”
Assistant United States Attorneys Barbara K. Doolittle and Michael R. Ball prosecuted this case on behalf of the government.United States Attorney Olshan commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Shelton.
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.
Readout of Civil Rights Division’s Quarterly LGBTQI+ Community Stakeholder MeetingRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and the division’s LGBTQI+ working group convened a quarterly meeting yesterday with LGBTQI+ community stakeholders.
Department leadership, including representatives from the Civil Rights Division, FBI, Community Relations Service, Office of Justice Programs and Office on Violence Against Women heard from attending organizations on an array of topics. Those topics included hate crimes targeting the LGBTQI+ community, threats of violence against LGBTQI+ organizations and healthcare providers serving LGBTQI+ patients; discriminatory legislation targeting the LGBTQI+ community; protections for LGBTQI+ parents in the foster care and adoption process; and discrimination faced by both intersex individuals and individuals living with HIV. Representatives from other federal government agencies were also in attendance, including the Equal Employment Opportunity Commission and the Departments of Health and Human Services, Education, Housing and Urban Development, Labor, Homeland Security, Defense and Veterans Affairs.
This week’s meeting reinforces the Justice Department’s commitment to taking an all-of-department approach to protecting LGBTQI+ rights, including by engaging with organizations and stakeholders on issues affecting the LGBTQI+ community. The department’s recent work on LGBTQI+ rights issues includes a statement of interest challenging North Carolina’s bans on gender-affirming health care for transgender minors and an amicus brief in support of transgender individuals who are seeking medical treatment for gender dysphoria that is excluded from Medicaid coverage by a Florida administrative rule and state statute.
The department has also prosecuted hate crimes based on LGBTQI+ status or affiliation with the LGBTQI+ community, addressed discrimination based on transgender status in employer-provided health insurance coverage, affirmed that correctional institutions cannot deny medically appropriate care for people with gender dysphoria, took action to combat the criminalization of HIV status, and continued to educate the public about threats facing the LGBTQI+ community, including by hosting another virtual, nationwide community meeting outlining practical steps for protecting LGBTQI+ communities from hate-motivated attacks and threats of violence. These and other efforts can be found on the Civil Rights Division’s LGBTQI+ working group’s website.
Assistant Attorney General Clarke and the division's LGBTQI+ working group meet with LGBTQI+ community stakeholders.Professional Money Launderer Sentenced to 40 Months in Prison for Transmitting $42 MillionRead the Press Release
SAN DIEGO –Jesus Vazquez Padilla of Tijuana was sentenced in federal court today to 40 months in custody for the unlicensed transmission of more than $42 million of illicit proceeds derived from the sale of drugs across the United States.
According to court records, between January 4, 2016 and May 24, 2019, Vazquez Padilla led the operation of an illegal unlicensed money transmission business by using 22 shell corporations and 85 corporate bank accounts at various U.S. banks to launder drug sale proceeds. Using the corporate bank accounts, Vazquez Padilla and his co-conspirators offered money transmitting services to the public for a fee by performing tasks that included: (1) depositing cash at financial institutions throughout the United States; (2) transferring money by wire, checks, and inter-bank transfers, and (3) transferring money to Mexico on behalf of third parties.
“The complexity of this money laundering operation was remarkable but as it unraveled so did the string of drug proceeds into the coffers of the cartels,” said U.S. Attorney Tara McGrath. “The United States will prosecute not only the drug traffickers, but also the facilitators who cannot out-maneuver justice.”
“Mr. Vasquez Padilla knowingly and willingly subverted laws that protect our financial institutions from becoming unwitting pawns in funding transnational crime and terrorism,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Furthermore, by moving over $42 million in drug money, Mr. Vasquez Padilla and his co-conspirators’ put our sons and daughters at risk of becoming statistics in the drug crisis we face as a country. IRS Criminal Investigation is committed to following the money to bring criminals like Mr. Vasquez Padilla to justice.”
In total, Vazquez Padilla’s business deposited $42,276,668 into the U.S. financial system. Of those deposits, approximately 95 percent of those funds were transferred to third party bank accounts in Mexico. The remaining 5 percent constituted the business’ fee for transmitting the funds.
Under U.S. law, a money transmission business must register with the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury; file Currency Transaction Reports and Suspicious Activity Reports; and maintain an effective anti-money laundering compliance program. Vazquez Padilla did not comply with any of these requirements.
On December 5, 2022, Vazquez-Padilla’s co-conspirator, Jose Gonzalez, was sentenced to 30 months’ custody for operating an unlicensed money transmission business and for assisting in the preparation of false tax returns related to the conspiracy. Gonzalez helped Vazquez Padilla open approximately 11 shell corporations and then, to create a veneer of legitimacy, Gonzalez filed federal tax returns on behalf of 10 of the shell corporations in tax years 2016 and 2017. In doing so, Gonzalez invented $19,615,192 in false and fictitious deductions so the shell corporations would not owe taxes.
On December 18, 2023, another co-conspirator, Juan Medina, was sentenced to 12 months and one day in custody for operating an unlicensed money transmission business. Despite knowing the laundered money represented illegal drug proceeds, Medina helped Vazquez Padilla open bank accounts for the shell corporations to enable the money laundering.
Vazquez Padilla’s sister and co-conspirator, Monica Vazquez, remains at large.
Assistant U.S. Attorneys Christopher Beeler and Carl Brooker of the Southern District of California are prosecuting the case.
DEFENDANT Case Number 22-CR-1551-RBM
Jesus Vazquez Padilla Age: 47 Tijuana, Mexico
DEFENDANT Case Number 22-CR-1472-W
Jose Gonzalez Age: 52 San Diego, California
DEFENDANT Case Number 22-CR-1473-RBM
Juan Medina Age: 42 San Diego, California
SUMMARY OF CHARGES
Conspiracy to Operate an Unlicensed Money Transmission Business – Title 18, U.S.C., Sections 371, 1960
Maximum penalty: Five years in prison, $250,000 fine; forfeiture and restitution
AGENCY
Internal Revenue Service Criminal Investigation
Peoria Man Pleads Guilty to Conspiring to Commit Bank Fraud and Money LaunderingRead the Press Release
PEORIA, Ill. – A Peoria, Illinois man, Richard Weiss, 62, of the 1500 block of North Knoxville Avenue, pleaded guilty today to one count of bank fraud and one count of conspiracy to commit money laundering. Sentencing for Weiss will be scheduled following the conclusion of proceedings against a co-conspirator.
At the hearing before U.S. Magistrate Judge Jonathan E. Hawley, Weiss admitted that he conspired with another federal defendant, Chad D. Campen, who is separately charged with multiple felony offenses, to create false and fraudulent documents. Weiss admitted that he created, at Campen’s direction, false bank statements, tax returns, and other documents for the express purpose of deceiving banks and other third parties.
In Court, the government stated Weiss had gone into business with Campen and allowed Campen to corrupt him into creating false documents, artificially inflating Campen’s apparent wealth and success. This included Weiss altering bank statements for Campen to make it appear that the account held approximately $200,000 more than it contained.
Weiss’ scheme with Campen began in or around August 2015, continuing to about January 2022, during which Weiss and Campen knowingly engaged in a scheme to defraud several financial institutions, including Community State Bank, headquartered in Galva, Illinois, with branches and offices throughout Central Illinois.
Weiss faces statutory penalties of up to 30 years imprisonment, $250,000 in fines and 5 years of supervised release on the bank fraud charge, and up to 20 years imprisonment, up to $500,000 in fines or twice the value of the property involved in the transactions and up to 5 years of supervised release on the money laundering charge.
The federal trial for Campen is scheduled to begin on April 8, 2024. Members of the public are reminded that the indictment against Campen is merely an accusation; Campen is presumed innocent unless proven guilty.
Agencies participating in the investigation include the Federal Bureau of Investigation, Springfield Field Office, and the Internal Revenue Service. Assistant U.S. Attorney Douglas F. McMeyer is representing the government in the prosecution.
Pennsylvania Man Arrested for Stalking and Possession of A SilencerRead the Press Release
KNOXVILLE, Tenn. – On February 16, 2024, Michael Charles Hoffpowier, 46, of Middlebury, Pennsylvania, was charged via federal criminal complaint with stalking in violation of Title 18, United States Code, Section 2261A, and Possession of a Silencer in violation of Title 26, United States Code, Section 5861(d). The complaint was issued by the Honorable Debra C. Poplin, United States Magistrate Judge for the Eastern District of Tennessee. If convicted, Hoffpowier could face imprisonment of up to 10 years and other penalties.
According to documents filed with the Court, it is alleged that over the course of a few months, Hoffpowier tracked the alleged victim from Pennsylvania, to Texas, and finally to Knoxville, Tennessee. On February 12, 2024, the victim disclosed to law enforcement that Hoffpowier attempted to contact him/her through his/her employer by using a false name but using his actual phone number. The victim’s employer contacted Hoffpowier and cancelled his appointment. Hoffpowier responded by saying, “I’ll see you at 9:00.” The employer contacted the police. On February 14, 2024, witnesses watched Hoffpowier drive around the Knox County business. Knox County Deputies located Hoffpowier in a nearby parking lot minutes later. Following Miranda warnings, Hoffpowier admitted to making the appointment under a false name to surprise the victim. With Hoffpowier’s consent, Deputies found text messages on his phone from the victim instructing him to cease contact with him/her. Deputies arrested Hoffpowier, searched the car he was in, and found two firearms, one with an attached silencer, two sets of binoculars, and a key to the victim’s car.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee, and ATF Resident Agent in Charge, Keith Jordan, made the announcement.
This prosecution is the result of an ongoing investigation by the ATF and the Knox County Sheriff’s Office, with support from the Knox County District Attorney General’s Office.
Assistant United States Attorney Miriam Johnson will represent the United States.
Members of the public are reminded that a complaint constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community face.
If you are in immediate danger, call 911. Contact your local police department to report stalking and stalking-related incidents and/or threats. Immediate and confidential support is available 24/7 through the National Domestic Violence Hotline by visiting thehotline.org, calling 1-800-799-7233 (TTY 1-800-787-3224), or texting “START” to 88788. You can also call the National Center for Victims of Crime hotline at 855-4-VICTIM (855-484-2846) or the Strong Hearts Native Helpline at 844-762-8483.
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Paycheck Protection Program Fraud Defendants Convicted Following Jury TrialRead the Press Release
ATLANTA – Teldrin Foster and Carla Jackson were found guilty by a jury for their roles in schemes to steal Paycheck Protection Program (“PPP”) funds during the COVID-19 pandemic. Foster was charged with 14 counts of wire fraud, six counts of bank fraud, 14 counts of conspiracy to commit wire and bank fraud, six counts of making a false statement to a federally insured financial institution, and one count of money laundering. Jackson was charged with two counts of money laundering. After a seven-day trial, both defendants were convicted on all counts. Foster and Jackson were charged in a 16-defendant indictment containing 63 felony counts, alleging numerous conspiracies among defendants. This indictment is part of a wide-ranging investigation into PPP fund theft that has resulted in the convictions of 23 of 24 defendants charged during the investigation. A final defendant’s case remains pending.
“These defendants brazenly stole pandemic relief funds intended for struggling small businesses during the COVID-19 pandemic,” said United States Attorney Ryan K Buchanan. “This investigation has produced charges against 24 defendants and secured guilty verdicts by a jury of the only two defendants to proceed to trial thus far. This successful prosecution is the culmination of a comprehensive collaboration between multiple federal agencies and our office that demonstrates our collective commitment to comprehensively investigating and prosecuting criminals who stole pandemic relief funds.”
“Foster and Jackson’s actions affected every tax paying citizen in this country and took away from government funds that were intended to provide relief to small businesses and employees who desperately needed it during the pandemic,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “These convictions reiterate the message that the FBI and our federal partners remain vigilant prosecuting people who misuse government funds for their own personal greed.”
“IRS Criminal Investigation special agents and our law enforcement partners will continue investigating and bring to justice those who committed fraud on the Paycheck Protection Program,” said Demetrius Hardeman, Acting Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Atlanta Field Office.
According to U.S. Attorney Buchanan, a second superseding indictment, and other information presented in court: from April 2020 through August 2020, Teldrin Foster worked with co-defendant Darrell Thomas and others to fraudulently obtain at least 14 fraudulent loans. Each of the businesses obtained a PPP loan between $700,000 and $850,000, for a total of over $11.1 million. The loan applications certified that each applicant business was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes or paid independent contractors; that the funds would be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments; and that the information provided in the applications and in all supporting documents and forms were true and accurate in all material respects.
The PPP loan applications reported that each business had between 59 and 69 employees and approximately $295,000 to $342,000 in average monthly payroll expenses. To support these payroll figures, each business’s loan application was accompanied by an Internal Revenue Service Form 941, which employers use to report payroll taxes, for each quarter of 2019 and by a bank statement or a spreadsheet reflecting payroll expenses. But none of the businesses had employees or payroll expenses. The Form 941s, bank statements, and W2 payroll spreadsheets had all been fabricated. Indeed, some of the supporting documents the businesses submitted were substantively identical, including identical Form 941s, identical bank statements, and W2 payroll spreadsheets where the reported figures were identical and only the purported employee names changed.
To conceal and launder the stolen funds, PPP funds were sometimes disguised by the defendants. Jackson acted as a money launderer, receiving more than $300,000 of the stolen PPP funds into her business’s bank account. The funds were transferred through two transactions, a check in the amount of $155,252.50 and a wire transfer in the amount of $179,985.72. The check falsely claimed that the funds were being provided to Jackson as consulting fees and daily business management, and the wire transfer paperwork falsely stated that the funds were for payroll services. In reality, Jackson was just trying to prevent the detection of funds obtained from the PPP program and seizure of those proceeds by federal law enforcement.
This case is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration, and the Small Business Administration-Office of the Inspector General.
Assistant U.S. Attorneys Tal Chaiken, Samir Kaushal, and Nathan Kitchens of the Northern District of Georgia and Trial Attorney Siji Moore of the Criminal Division’s Fraud Section are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Oxford Woman Sentenced for Conspiracy to Distribute Methamphetamine and FentanylRead the Press Release
United States Attorney Susan Lehr announced that Samantha Miller, 31, of Oxford, Nebraska, was sentenced February 16, 2024 in federal court in Lincoln, Nebraska, for conspiracy to distribute methamphetamine and fentanyl. Senior United States District Court Judge John M. Gerrard sentenced Miller to 60 months’ imprisonment. There is no parole in the federal system. After Miller’s release from prison, she will begin a 5-year term of supervised release.
From July 2021 to July 2022, Miller and others worked together to sell methamphetamine and fentanyl in and around Kearney, Nebraska. Miller was identified after a confidential informant purchased meth from a different drug dealer, who told the confidential informant he had to pick up the meth from a different location. Law enforcement followed that drug dealer to Miller’s residence, where the drug dealer obtained the meth and then provided to the confidential informant. During the course of the investigation, law enforcement learned that Miller was working with others to deal meth and fentanyl and sending money from drug proceeds back to Mexico.
This case was investigated by the Nebraska State Patrol and FBI.
Owner of Telemedicine Companies Charged with $110 Million Medicare Fraud SchemeRead the Press Release
BOSTON – The owner of Expansion Media (Expansion) and Hybrid Management Group (Hybrid) has been charged and has agreed to plead guilty in connection with a $110 million telemedicine fraud scheme involving medically unnecessary durable medical equipment (DME), including orthotics such as back and knee braces.
Steven Richardson, 40, of Parkland, Fla., has agreed to plead guilty to one count of conspiracy to commit health care fraud. A plea hearing has not yet been scheduled by the Court.
According to the charging documents, between March 2016 and January 2023, Richardson, through his companies Expansion and Hybrid, entered into business relationships with telemarketing companies that generated leads by targeting Medicare beneficiaries. The telemarketers then allegedly paid Expansion and Hybrid on a per-order basis to generate orders for DME for these beneficiaries. To arrange for these orders to be signed, Richardson allegedly worked with medical staffing companies – including one in Massachusetts – to find doctors and nurses who were willing to review and sign prepopulated orders, typically without any contact with the beneficiaries. It is alleged that the records falsely portrayed the medical providers as having performed a legitimate examination of the beneficiary. Richardson then allegedly provided the signed orders to the telemarketing companies which sold the orders to DME suppliers. Richardson allegedly knew that these DME suppliers would use the signed orders to submit claims to Medicare for DME that was medically unnecessary, based on false documentation and tainted by kickbacks.
The charge of conspiracy to commit health care fraud provides for a sentence of up to 10 years in prison, supervised release for up to three years and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. 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; Robert Coviello, Special Agent in Charge, Health and Human Services-Office of Inspector General; Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigations, Boston Division; Ketty Larco-Ward, Inspector in Charge, United States Postal Inspection Service, Boston Division; Carol S. Hamilton, Regional Director, Employee Benefits Security Administration, U.S. Department of Labor; and Patrick J. Hegarty, Special Agent in Charge, Defense Criminal Investigation Service, North East Field Office made the announcement today. Assistant U.S. Attorneys Lauren Graber and Howard Locker of the Health Care Fraud Unit and Alexandra Brazier and Lindsey Ross of the Affirmative Civil Enforcement Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Orleans Parish Woman Charged with Wire FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that SHAVONDA CHAMBERS, age 43, of New Orleans, Louisiana, was charged on February 8, 2024, with wire fraud.
According to documents filed in federal court, SHAVONDA CHAMBERS administered payroll for a local business and was discovered submitting false payroll vouchers as part of a scheme to steal money from her employer.
The maximum penalty for the offense is twenty years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim followed by up to three years of supervised release, and a mandatory special assessment of one hundred dollars.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Secret Service in investigating this matter. Assistant United States Attorney Richard R. Pickens, II of the Financial Crimes Unit is in charge of the prosecution.
Oklahoma Man Pleads Guilty to Federal Threats Charge and Admits to Telephoning Bomb Threats to Five Schools in Los AngelesRead the Press Release
LOS ANGELES – An Oklahoma man who grew up in Los Angeles pleaded guilty today to a federal criminal charge for telephoning bomb threats to five Los Angeles schools, including two elementary schools, and threatened to shoot the children as they exited one of the elementary schools.
Marcus Jamal Sanchez, 45, a.k.a. “Marcus James Buchanan,” of Blackwell, Oklahoma, pleaded guilty to one count of making a threat through interstate commerce to damage and destroy buildings by fire and explosives.
Sanchez, who was arrested in June 2022, has been free on bond since July 2022.
“Sanchez put children, teachers, and staff at risk through his reckless and irresponsible actions,” said United States Attorney Martin Estrada. “Schools should be safe havens for our kids, and my office will use the force of federal law – when necessary – to prosecute individuals who threaten the educational safety of our young people.”
“The depraved act of making death threats to vulnerable schoolchildren is incomprehensible to most and will not be tolerated by the FBI, nor the American people,” said Amir Ehsaei, the Acting Assistant Director in Charge of the FBI's Los Angeles Field Office. “When threats such as these are reported, they must always be treated as credible and so they continue to drain valuable resources from law enforcement at the expense of the taxpayers who fund them.”
“The Los Angeles School Police Department’s commitment to the safety of our school communities is our top priority,” said Lieutenant Nina Buranasombati, LASPD spokesperson. “We are pleased with the significant step toward justice for the affected school communities. We sincerely appreciate the dedication and collaboration of all parties involved in the judicial process.”
According to his plea agreement, during a period of less than two hours on the morning of February 28, 2022, Sanchez called in bomb threats to two elementary schools, two middle schools, and a high school in Los Angeles. In a call to one of the elementary schools, Sanchez threatened to shoot the children as they exited the building.
On April 27 and 28, Sanchez made additional bomb threats to two of the Los Angeles schools he previously threatened, threatening to shoot and kill children at other schools. On the afternoon of April 27, Sanchez called an elementary school and said to a school employee, “There is a bomb at your school, and we will shoot the kids when they get out of the school. That is what you get for not accepting me in ’86,” according to his plea agreement.
After receiving the threat, the school staff notified police and placed the school on lockdown. Police searched the campus for explosives or unusual items but found none.
On April 28, Sanchez called the same school again and said there was a pipe bomb placed at the school’s address. After receiving the bomb threat, the school staff notified police and placed the school on lockdown. Police searched the campus for explosives or unusual items but found none.
That same day, Sanchez called a different elementary school and said, “Stop playing games; you know who this is. I am going to shoot the school. I know the kids are there.” Afterwards, the school was placed on lockdown, but – as with all the incidents – no explosives or unusual items were found.
United States District Judge Josephine L. Staton scheduled a June 7 sentencing hearing in this case, at which time Sanchez will face a statutory maximum sentence of 10 years in federal prison.
The FBI and the Los Angeles School Police Department investigated this matter.
Assistant United State Attorney Jena A. MacCabe of the Violent and Organized Crime Section is prosecuting this case.
Oakland Resident Charged for Series of Bank RobberiesRead the Press Release
OAKLAND – Naikano Tuipulotu made his initial appearance on February 15, 2024, to face charges presented in a criminal complaint alleging he committed, and attempted to commit, a series of bank robberies in the East Bay, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation, Special Agent in Charge Robert K. Tripp.
According to the complaint affidavit, from October 23, 2023, through January 13, 2024, Tuipulotu, 30, of Oakland, robbed three banks and attempted to rob two others, each in Alameda County. During the robberies and attempted robberies, Tuipulotu passed handwritten notes stating that he had a gun and demanded money from bank tellers. The criminal complaint charges Tuipulotu with bank robbery, in violation of 18 U.S.C. § 2113(a).
Tuipulotu was arrested on February 14, 2024, and made his initial appearance in federal court in Oakland the following day. Tuipulotu remains in custody pending further proceedings in the case. Tuipulotu’s next scheduled appearance is at 10:30 a.m. on February 21, 2024, for status regarding detention before U.S. Magistrate Judge Kandis A. Westmore.
A criminal complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of twenty years in prison and a fine of $250,000, plus restitution if appropriate, for a single violation of 18 U.S.C. § 2113(a). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Jonah Ross is prosecuting the case. The prosecution is the result of an investigation by the FBI and the San Leandro, Fremont, and Hayward Police Departments.
North Carolina Man Sentenced to 19 Years in Prison for Kidnapping a Young Woman in Center City Philadelphia, Attempting to Kidnap AnotherRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jacob Montague, 38, of Wilson, North Carolina, was sentenced to 19 years’ imprisonment by United States District Judge Joel H. Slomsky for attempting to kidnap a young woman in Center City Philadelphia in November of 2020, and then kidnapping another young woman the following day.
On November 1, 2020, at approximately 11:00 p.m., the defendant approached a young woman in Center City, brandished a knife, and ordered his victim to come with him. The victim responded by calling 911, and the defendant proceeded to retreat to his vehicle and drive away.
The next day, Montague returned to Center City. At around 5:30 p.m., he snuck up behind a young woman walking her dog near the Schuylkill River Park. The defendant rushed up to his victim, put a knife to her throat, and dragged her into his vehicle. Fortunately, nearby civilians intervened before the defendant could drive away from the scene. After a physical struggle, the civilians freed the victim from the defendant’s vehicle, and police arrived and arrested the defendant. The victim was injured during the attack and required multiple stitches following the kidnapping.
Montague pleaded guilty to the attempted kidnapping and kidnapping on April 10, 2023.
“Anyone who tries to snatch a stranger off the street isn’t fit to walk those streets with the rest of us,” said U.S. Attorney Romero. “Jacob Montague did so at knifepoint — not just once, but twice in two days. He’s a clear threat to public safety, and for the protection of everyone in Philadelphia and beyond, Mr. Montague needs to be behind bars. Today’s sentence ensures he’ll be there for a very long time.”
“Mr. Montague used a weapon and attempted to forcibly kidnap strangers off the street," said Wayne A. Jacobs, Special Agent in Charge of the FBI’s Philadelphia Division. “The sentence handed out today demonstrates that brazen acts such as these are not tolerated in our city. The FBI thanks our partners, the Philadelphia Police Department and Pennsylvania State Police, for their invaluable assistance in removing violent criminals like Mr. Montague from the communities we serve.”
“The sentencing of Jacob Montague to 19 years in prison sends a clear message that predatory behavior like this will not be tolerated in Philadelphia,” said Philadelphia Police Commissioner Kevin J. Bethel. “Montague's attempted kidnapping and subsequent kidnapping were terrifying acts of violence that left lasting physical and emotional scars on his victims. This case also highlights the bravery of the bystanders who intervened and risked their safety to free the victim and help apprehend the suspect. Their actions prevented further harm and demonstrate the power of community in keeping our streets safe. This sentence also reflects the tireless work of the FBI and the Philadelphia Police Department in investigating these crimes and securing justice. While no sentence can fully undo the harm inflicted, this outcome should serve as a deterrent to anyone considering similar acts. The PPD remains committed to working with all our partners to ensure the safety and well-being of everyone who lives, works, or visits Philadelphia.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department and prosecuted by Assistant United States Attorneys Priya DeSouza and Michael Miller.
New Orleans Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that EDMOND TRUEBLOOD, age 37, of New Orleans, plead guilty on February 15, 2024, to being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
According to court documents, TRUEBLOOD was previously convicted of felony offenses in Orleans Parish. Due to his criminal history, he is prohibited from having a firearm. He is now charged with possessing a firearm on May 22, 2023. On May 22, 2023, TRUEBLOOD possessed a stolen Glock Model 48, 9-millimeter, semi-automatic pistol in a bag he carried around his person in New Orleans.
The maximum penalties for possession of a firearm by a convicted felon are fifteen (15) years imprisonment, a fine of up to $250,000, not more than (3) years of supervised release, and a $100.00 mandatory special assessment fee.
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.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. The case is being prosecuted by Special Assistant U.S. Attorney Nicholas Rayburn of the Violent Crime Unit.
Montgomery, Alabama Man Convicted of Illegally Possessing a Firearm in Pike CountyRead the Press Release
Montgomery, Alabama – On February 14, 2024, a federal jury convicted 30-year-old Deion Larry Jamar Mangum, a resident of Montgomery, Alabama, for possession of a firearm by a convicted felon, announced Acting United States Attorney Jonathan S. Ross.
According to court records and evidence presented during Mangum’s trial, on November 7, 2022, law enforcement officers in Brundidge, Alabama, responded to a residence after receiving reports of a domestic disturbance involving a firearm. Deputies arrived at the scene and spoke with the potential victim, then located Mangum nearby. He was putting air in a tire on his vehicle. During questioning, Mangum stated that he could not find his cell phone. Investigators dialed Mangum’s number to help locate the device. After a brief search of the property, deputies located Magnum’s ringing cell phone, along with a loaded AK-47 style pistol, at the edge of the wood line a short distance from the scene. At trial, two witnesses testified that, before the officers found the firearm next to Mangum’s phone, they saw the weapon in Mangum’s possession. Mangum has previous felony convictions and is prohibited by federal law from possessing a firearm or ammunition.
Following this conviction, Mangum faces a sentence of up to 15 years in federal prison with no parole. A sentencing hearing will be scheduled for Mangum in the coming months. At that hearing, a federal district court judge will determine Mangum’s sentence after considering the United States Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pike County Sheriff’s Office investigated this case, which Assistant United States Attorneys Brandon W. Bates and Michelle R. Turner prosecuted.
Middleburgh Woman Sentenced to 36 Months for Drug CrimesRead the Press Release
ALBANY, NEW YORK – Teirra Pickering, age 59, of Middleburgh, New York, was sentenced today to 36 months in prison on four counts of distributing controlled substances, including heroin-fentanyl mixtures. United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.
As part of her prior guilty plea, Pickering admitted that she distributed heroin-fentanyl mixtures on four occasions between late February 2021 and early March 2021. One of the people Pickering distributed to died hours later of an overdose.
United States District Judge Anne M. Nardacci also imposed a 3-year term of supervised release to follow the prison term.
DEA and the Greene County Sheriff’s Office investigated the case. Assistant U.S. Attorney Dustin C. Segovia prosecuted the case.
Mexican National Sentenced to 27 Months for Illegal Border CrossingRead the Press Release
BANGOR, Maine: A Mexican national was sentenced today in U.S. District Court in Bangor for entering the United States after a prior removal.
U.S. District Judge Lance E. Walker sentenced Alberto Beltran-Martinez, 44, to 27 months in prison. Beltran-Martinez has been incarcerated since he was arrested on April 29, 2023. He pleaded guilty on September 25, 2023.
According to court records, Beltran-Martinez and six other individuals were pulled over in Hamlin near the international boundary by a U.S. Border Patrol Agent from the Van Buren Border Patrol Station. Immigration records showed that Beltran-Martinez had previously been removed from the U.S. in September 2006 at Laredo, Texas and in April 2021 at Del Rio, Texas. He had not obtained the express consent of the Secretary of the U.S. Department of Homeland Security to reapply for admission.
U.S. Customs and Border Protection investigated the case.
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Metro-Atlanta Man Charged with Fraud and Money Laundering of COVID-19 Unemployment Funds and IRS Tax RefundsRead the Press Release
ATLANTA - Nnamdi Iheanacho has been indicted on federal charges of wire fraud, aggravated identity theft, money laundering conspiracy, and concealment money laundering for stealing COVID-19 relief funds and federal tax refunds based on fraud and identity theft.
“Iheanacho allegedly defrauded government funds during the COVID-19 pandemic involving state unemployment insurance funds and tax refunds from the Internal Revenue Service,” said U.S. Attorney Ryan K. Buchanan. “COVID-19 pandemic funds provided vital aid for citizens who qualified for them. Congress did not intend for individuals to illegally profit from the CARES Act program. The indictment alleges that Iheanacho compounded his fraudulent conduct by stealing the identities of others to perpetrate his schemes, including filing fraudulent tax returns with the Internal Revenue Service.”
“An important part of the mission of the U.S. Department of Labor, Office of Inspector General is to investigate allegations of fraud involving unemployment insurance programs. We will continue to work with our law enforcement partners to aggressively investigate these types of allegations,” said Mathew Broadhurst, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General, Southeast Region.
“Iheanacho’s alleged criminal acts deprived the government of funding for its programs and possibly created financial instability for his victims of identity theft,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. "IRS Criminal Investigation special agents and our law enforcement partners are diligently working to find those who show so much disregard to others in their pursuit of greed.”
“This defendant is charged with taking advantage of our nation during an unprecedented time of a pandemic and stealing money intended to help others who were struggling,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “We are proud to work with our partner agencies to investigate and stamp out these schemes.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act provided emergency assistance for individuals, families, and businesses affected by the COVID-19 pandemic. The CARES Act created a new temporary federal program called Pandemic Unemployment Assistance that provided up to 39 weeks of unemployment benefits and funding to states for administration of the program. An individual receiving these benefits might also receive a $600 weekly benefit in federal funds under the Federal Pandemic Unemployment Compensation program if he or she was eligible for such compensation for the week claimed.
To fraudulently take advantage of the $600 weekly federal benefit, Nnamdi Iheanacho, 38, of Dacula, Georgia, allegedly applied online for unemployment insurance benefits for numerous individuals using stolen personal identifying information. Simultaneously, Iheanacho allegedly filed federal income tax returns using stolen identity information. He then allegedly laundered the proceeds of his fraud schemes.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Department of Labor, Office of Inspector General, Internal Revenue Service Criminal Investigation, and the Federal Bureau of Investigation.
Assistant U.S. Attorney Sarah E. Klapman is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Manchester Man Pleads Guilty for Intending to Traffic Methamphetamine and FentanylRead the Press Release
CONCORD – A Manchester man pleaded guilty today in federal court for possessing with intent to distribute methamphetamine and fentanyl, U.S. Attorney Jane E. Young announces.
John Barber, 32, pleaded guilty to two counts of possession with intent to distribute a controlled substance, namely methamphetamine and fentanyl. U.S. District Court Judge Samantha Elliott scheduled sentencing for May 29, 2024. The defendant was indicted on September 6, 2022, but pleaded guilty to a superseding information that included an additional drug charge.
On February 23, 2022, a New Hampshire State Trooper stopped a car in Concord on Interstate 93, in which the defendant was a passenger. After the driver gave consent to search the car, law enforcement found numerous plastic baggies, a digital scale and a locked zipper pouch in the vicinity of the defendant. The pouch was later searched pursuant to a warrant and contained roughly 45 grams of methamphetamine and 130 grams of fentanyl. The defendant was carrying $3000 in cash, and he admitted that he intended to distribute the pouch of drugs to someone else.
Later, on August 23, 2022, law enforcement officers executed a search warrant of the defendant’s camper in Manchester and found approximately 75 grams of methamphetamine in a plastic bag containing other smaller baggies. The defendant admitted the methamphetamine was his. The method of packaging and quantity of methamphetamine is indicative of distribution.
The charging statute provides a sentence of no greater than 20 years in prison, at least three (3) years of supervised release, and a maximum fine of $1,000,000. 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.
The Federal Bureau of Investigation led the investigation. Valuable assistance was provided by the Manchester Police Department and the New Hampshire State Police. Assistant U.S. Attorneys Aaron Gingrande and Matthew Hunter are prosecuting the case.
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Man Who Stole 70 Firearms Sentenced to 10 Years in PrisonRead the Press Release
Midland man who committed a burglary of College Avenue Jewelry and Pawn in Snyder, Texas sentenced to the statutory maximum 10 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Bradley Lynn Bishop, 46, was charged via criminal complaint in June 2023 and pleaded guilty to one count of theft of firearms from a Federal Firearms Licensee in September 2023. Mr. Bishop was sentenced today before U.S. District Judge James Wesley Hendrix who made the statement at the hearing, “We have to bolt down everything in this courtroom or you would steal it.”
“We are proud to have worked with ATF on this case and will continue to work tirelessly with our law enforcement partners to bring defendants who steal from Federal Firearms Licensees to justice,” said U.S. Attorney Simonton. “Solving burglaries and robberies of our Federal Firearm Licensee partners is at the top of ATF’s national priorities.”
“Mr. Bishop thought that he could act under the cover of darkness, in a company vehicle, and make a quick buck selling stolen guns. He was wrong. He was wrong again when he tried to run from officers. Snyder and the surrounding communities are safer with Mr. Bishop off the streets,” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.
According to court documents, on June 26, 2023, law enforcement responded to College Avenue Jewelry and Pawn in response to a burglary where 70 firearms were stolen from the business the previous day. During the investigation, law enforcement determined that the building appeared to have been breached by a hole cut in the wall. Once in the building the suspect unlocked and unlatched the rear door. The alarm sensors on the top of the rear exit door were also disabled and wires removed. A nearby business had a camera that faced the rear of the Pawn shop and revealed a white Dodge pickup pulling into the back of the shop. The truck was observed coming and going from the business three separate times, an individual could be seen walking to and from the truck with a bag in their hand.
Law enforcement searched a local license plate reader system for a vehicle matching the Dodge truck and a match was found. The license plate was confirmed to be a company truck for Trend Services. The company was contacted and they advised that the vehicle had GPS tracking and had been located near College Avenue Jewelry and Pawn on the night of the burglary. Trend Services also confirmed that Mr. Bishop was the driver assigned to that vehicle.
The day after the burglary, law enforcement went to the residence of Mr. Bishop. The Doge pickup was parked behind the house, as agents approached the pickup they observed the driver’s side door open and a pair of feet on the ground next to the door. Mr. Bishop fled the scene on foot and was taken into custody after a foot chase. A search of the truck revealed six of the firearms and an electrical meter stolen from the Pawn shop.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives, with assistance from the Snyder Police Department conducted the investigation. Assistant U.S. Attorney Stephen Rancourt prosecuted the case.
Man Involved in Raleigh Armed Robberies Sentenced to More Than 19 Years in Federal PrisonRead the Press Release
WILMINGTON, N.C. – Amir Williams, age 25, of Newark, New Jersey was sentenced to 235 months in prison for a string of armed robberies in Raleigh in March of 2022. Williams pled guilty on October 10, 2023, to two counts of interference with commerce by robbery and aiding and abetting and a single count of brandishing a firearm in connection with a crime of violence.
“Nobody should have a gun put to their face simply for doing their job. We want to locate this brazen violence in Raleigh,” said U.S. Attorney Michael Easley. “Our Violent Crime Action Plan puts dangerous felons like Williams at the top of our priority list.”
According to court records and evidence presented in court, between March 4 and March 7, 2022, Williams robbed a Dollar General and a Circle K gas station in Raleigh. In each instance Williams entered the business with a co-conspirator, then he would point a firearm at an employee and demand money while counting down to zero. He and his co-conspirator would then leave the business in a stolen vehicle to escape with the proceeds from the robberies. Williams was arrested on April 1, 2022, on an unrelated matter and ultimately confessed to his participation in the robberies.
The conviction is a result of the ongoing Violent Crime Action Plan (VCAP) initiative which is a collaborative effort with local, state, and federal law enforcement agencies, working with the community, to identify and address the most significant drivers of violent crime. VCAP involves focused and strategic enforcement, and interagency coordination and intelligence-led policing.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case. Assistant U.S. Attorney Leonard Champaign prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-00045-M.
Man Indicted for Impersonating a U.S. Marshal and Fraudulently Obtaining $39,000Read the Press Release
Yakima, Washington - On February 7,2024, a federal grand jury for the Eastern District of Washington returned an indictment charging Charmmorro Vijay Strothers with one count of Wire Fraud and one count of False Personation of an Officer or Employee of the United States.
The indictment alleged that on August 13, 2023, Strothers rented a car at the Seattle-Tacoma International Airport and drove to Yakima, Washington. Two days later, on August 15, Strothers’ co-schemer called the victim, told her she was speaking with law enforcement, and that she had an active warrant for her arrest. The co-schemer then told the victim that to avoid arrest, she needed to drive to Egley’s Bail Bonds in Yakima and pay a bond of $14,000. The co-schemer remained on the phone with the victim, while she withdrew $14,000 from her bank account and traveled to a parking lot across from Egley’s Bail Bonds.
When the victim arrived, Strothers allegedly approached, collected the cash, and gave the victim a handwritten receipt indicating it was from Egley’s Bail Bonds and listing a fraudulent case number.
A short time later, the co-schemer called the victim a second time and told her a felony warrant was issued for her arrest. Again, the victim was told, to avoid arrest, she needed to drive to the parking lot near Egley’s Bail Bonds and pay a bond of $25,000. When the victim again arrived, Strothers collected the additional $25,000 payment. Strothers falsely told the victim he could not provide identification information, such as a badge number, because he was United States Marshal.
“Impersonating a law enforcement officer and using the threat of arrest to commit fraud is an affront to our justice system and the men and women in law enforcement who work to keep our communities safe,” said United States Attorney Vanessa R. Waldref. “My office is committed to stopping all fraudsters, no matter the shape or scope of their schemes.”
This case is being investigated by the United States Secret Service. Assistant United States Attorney Courtney Pratten is prosecuting this case on behalf of the United States.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Case: 1:24-cr-02006-SAB
Lincoln Woman Pleads Guilty to High-Speed Flight from Immigration Checkpoint in ShermanRead the Press Release
BANGOR, Maine: A Lincoln woman pleaded guilty today in U.S. District Court in Bangor to fleeing and evading a U.S. immigration checkpoint in Sherman and leading U.S. Border Patrol agents on a high-speed pursuit.
According to court records, in May 2023, Shania England, 24, and a passenger were traveling southbound on I-95, when England drove up to and stopped at a checkpoint being operated by the U.S. Border Patrol in Sherman. When an agent instructed England to pull over to a secondary inspection area, she instead sped away on I-95. England fled from Border Patrol agents at high speed for about eight miles and was apprehended after crashing the vehicle in a ditch.
England faces up to five years in prison and up to a $250,000 fine followed by up to three years of supervised release. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Border Patrol investigated the case with assistance from the East Millinocket Police Department.
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Lexington Lab Agrees to $10.4 Million in Civil Judgments to Resolve False Claims Act Allegations; Owner and Lab Officer Sentenced to PrisonRead the Press Release
LEXINGTON, Ky. – A Lexington toxicology lab, LabTox, LLC, its owner, Ronald Coburn, 76, and its compliance officer, Erica Baker, 31, agreed to civil judgments totaling $10,458,933 in favor of the United States, holding LabTox, Coburn, and Baker liable for submitting false claims for urine drug testing services to the Medicare and Kentucky Medicaid programs. The agreed judgments, entered Thursday by Chief U.S. District Court Judge Danny C. Reeves, follow Coburn’s and Baker’s criminal convictions for health care fraud. In December 2023, Judge Reeves sentenced Coburn to 46 months in prison, and Baker to 6 months in prison, followed by 6 months of home confinement; both are required to report to Bureau of Prisons’ custody today.
Coburn owned and operated LabTox, LLC, a clinical laboratory that performed urine drug tests and billed them to Medicare and Kentucky Medicaid. Baker was LabTox’s director of operations and compliance officer. Both knew that Medicare and Kentucky Medicaid only pay for urine drug tests that are medically necessary. In his plea agreement, Coburn also admitted knowing that urine drug tests ordered by courts for use in judicial proceedings are not medically necessary, and thus not payable by Medicare or Kentucky Medicaid. With Coburn’s knowledge and approval, however, Baker recruited a company called Blue Waters Assessment and Testing Services to refer court-ordered urine drug tests to LabTox. Coburn knew this was not medical testing, but caused LabTox to bill the tests to Medicare and Kentucky Medicaid anyway, resulting in fraudulently-obtained payments of $1,864,429 between June 2019 and March 2021. Submission of these false claims for court-ordered urine drug tests constituted criminal health care fraud and also violated the False Claims Act, triggering additional civil penalties. Coburn and LabTox’s agreed civil judgment holds them liable for $5,593,287, because under the False Claims Act, losses to the Medicare and Kentucky Medicaid programs are mandatorily trebled.
Erica Baker’s sentence and False Claims Act judgment resulted from a similar fraud scheme. According to her plea agreement, she participated in a health care fraud conspiracy with Coburn between January 2019 and January 2021. Specifically, at Coburn’s direction, Baker solicited urine drug tests from substance abuse recovery programs that did not provide medical treatment—typically faith-based residential programs or homeless shelters. Baker knew that urine drug tests for these programs’ clients were not performed for any medical reason, as would be required before Medicare or Kentucky Medicaid would pay for the tests. As part of the scheme, Baker misled sober home directors, and induced the facilities to send LabTox more tests by putting facility staff on LabTox’s payroll and compensating them based on the number of urine drug tests sent to the lab. Despite knowing that this testing was not for medical purposes, Baker and Coburn agreed to cause LabTox to bill Medicare and Kentucky Medicaid for urine drug tests referred by these non-medical programs, resulting in fraudulently obtained payments of $1,621,882. Submission of these false claims for medically unnecessary urine drug tests constituted criminal health care fraud and violations of the False Claims Act, triggering additional civil penalties. Baker and LabTox’s agreed civil judgments hold them liable for $4,865,646, as mandatorily trebled damages.
“Medicare and Medicaid are meant to fund medically necessary health care benefits to millions of eligible Americans,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “When the limited resources of these programs are depleted by fraud, it defeats their purpose and diminishes their viability and effectiveness, deeply affecting us all. We will continue to do our part to prevent this destructive fraud, and to return these critical funds to their intended purpose.”
“Health care providers who cause the submission of Medicare claims for medically unnecessary services pose a significant risk to the program and the patients who rely on it,” stated Special Agent in Charge Tamala Miles of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “In this case, the two health care executives and LabTox will be excluded from participating in federal health care programs for 19- and 20-years as result of the threat they posed to the integrity of those programs by their desire to enrich themselves. Our agency will continue to work diligently with our law enforcement partners to investigate such health care fraud schemes.”
“This investigation revealed the subjects bilked American taxpayers for years by lining their pockets with millions of dollars of fraudulently obtained funds,” said FBI Louisville Special Agent in Charge Michael E. Stansbury. “This case demonstrates the commitment of the FBI, HHS-OIG, IRS, and the United States Attorney’s Office to rooting out fraud and ensuring the critical healthcare funds go where they are needed most – to the health and welfare of patients.”
The agreed civil judgments resolve a lawsuit brought by a private citizen under the qui tam provisions of the False Claims Act. Under those provisions, a private party can file a civil action on behalf of the United States, thereby bringing allegations of fraud to the Government’s attention, and share in any financial recovery. As part of this resolution, the individual who filed the qui tam complaint will receive a portion of the settlement proceeds. The civil case is captioned United States ex rel. Caitlin Secamiglio v. LabTox, LLC, et al., Case No. 5:20-CV-00305-DCR.
United States Attorney Shier; Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office; Special Agent in Charge Miles; and Karen Wingerd, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cincinnati Field Office, jointly announced the sentences and agreed judgments.
The investigation was conducted by the FBI, HHS-OIG, IRS, and investigators from the United States Attorney’s Office. Support was provided by the Kentucky Attorney General’s Office and the West Virginia Attorney General’s Office. The United States was represented in the criminal case by Assistant U.S. Attorneys Andrea Mattingly-Williams and Paul McCaffrey, and in the civil case by Assistant U.S. Attorney Christine Corndorf.
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Level 1 sex offender pleads guilty to child pornography chargeRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Zachary Feeterman, 29, of Tonawanda, NY, who was convicted of possession of child pornography was sentenced to serve 10 years imprisonment and 30 years supervised release by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that in March 2016, Feeterman was convicted of attempted possession of a sexual performance by a child less than 16 years of age in New York State Court. On August 8, 2019, Erie County Probation Officers conducted a home inspection at Feeterman’s residence and found an unauthorized cell phone in his possession. A forensic analysis recovered approximately 375 images of child pornography on the cell phone, and 4,670 images and videos of child pornography in a cloud storage account. Some images depicted prepubescent minors as well as violence against children.
The sentencing is the result of an investigation by members the Erie County Probation Department, under the direction of Commissioner Michelle Olszowy; the FBI's Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia; and the Town of Tonawanda Police Department, under the direction of Chief James P. Stauffiger.
Law Enforcement Authorities Hold Anti-Gang Program for the Scranton School DistrictRead the Press Release
SCRANTON - United States Attorney Gerard M. Karam announced that the U.S. Attorney’s Office organized an anti-gang program yesterday for over 2,000 Scranton School District students grades 7-12. The event focused on educating students on the perils of gang membership.
In its auditorium and broadcasted to all their classrooms, the Scranton School District hosted subject matter experts from the United States Attorney’s Office, the Federal Bureau of Investigation, the Pennsylvania State Police, and the Pennsylvania Office of Attorney General.
Presenters focused on the myth of gang membership and the destruction that follows the “big lie” - that gangs provide protection, family, and loyalty. The presenters highlighted the tools that law enforcement have at its disposal to prosecute those who join a bad association knowing of its criminal objectives. Those tools include federal RICO and VICAR statutes which carry substantial penalties. Students were also advised about the many resources available to them to escape violence and danger, and were encouraged that if they see something – say something. The goal seeks to keep students, their family, and our communities as safe as possible and to prevent harm.
“As our schools have seen an increase in gang activity and recruitment, and thus it is an important priority to educate students on the risks and consequences of joining a gang,” said U.S. Attorney Karam. “Our goal is to bring that awareness to students, and we are grateful to have strong partnerships with the school district and our law enforcement partners to support this objective.”
This event 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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Jury Finds Maryland Man Guilty of Armed Carjacking of Delivery DriverRead the Press Release
WASHINGTON – Hahqwon Beale, 25, of Greenbelt, MD, was found guilty yesterday of armed carjacking and related firearm offenses following a jury trial in Superior Court. The offenses were committed in Northwest DC on May 7, 2018. The announcement was made by U.S. Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department (MPD).
Beale was convicted of armed carjacking, possession of a firearm during a crime of violence, and unlawful possession of a firearm by a person with a prior felony conviction. Judge Anthony C. Epstein ordered that Beale be held without bond pending sentencing. Beale has been detained since his arrest on May 8, 2018. The sentencing date for the armed carjacking offenses is yet to be determined. Beale is also facing charges of first-degree murder while armed and related offenses for the murder of George Johnson, Jr., which was committed the same night as the May 7, 2018 carjacking. The homicide trial is scheduled to begin on June 10, 2024.
According to the government’s evidence, on May 7, 2018, at approximately 10:55 p.m., Beale and a female co-conspirator called a Pizza Boli’s restaurant to order food to be delivered to the 400 block of Farragut Street in Northwest DC. When the delivery driver arrived at the location, he walked to the trunk of his vehicle to retrieve the order. Beale approached the driver from behind, put a gun to the driver’s back, and demanded money. The driver gave Beale around $300 to $400 of cash from his pocket, which belonged to Pizza Boli’s. Beale and the co-conspirator then entered the victim’s vehicle and drove away. MPD officers located the stolen vehicle approximately 4.5 hours after the carjacking, with Beale and the co-conspirator asleep inside. Law enforcement officers took both suspects into custody. Following his arrest, Beale used a D.C. Jail phone to call an associate and arrange for a third person to retrieve and conceal the Glock 26 handgun that Beale had used to commit the carjacking. The firearm was recovered during a search warrant executed at the home of Beale’s co-conspirator. The co-conspirator previously pleaded guilty to robbery for her role in the charged crimes.
This case is being investigated by MPD’s Homicide Branch. It is being prosecuted by Assistant U.S. Attorneys Brian Ganjei and Charles R. Jones.
Jury Convicts Jefferson City Man of Armed Bank RobberyRead the Press Release
JEFFRSON CITY, Mo. – A Jefferson City, Mo., man has been convicted in federal court of the armed robbery of a Jefferson City credit union.
Tre Joseph Connor, 29, was found guilty on Thursday, Feb. 15, of one count of bank robbery, one count of brandishing a firearm during a crime of violence, and one count of being a felon in possession of a firearm.
Evidence introduced during the trial indicated that Connor entered River Region Credit Union, 3608 W. Truman Blvd. in Jefferson City, on the morning of Jan. 19, 2023. Connor, wearing a black ski mask, brandished a Smith & Wesson 9mm semi-automatic pistol and ordered a credit union employee to open a vault. Connor stole approximately $111,700 from the vault, filled a backpack with the cash, and left through a side door.
Investigators used security cameras from various sources to identify Connor, including Walmart security camera footage that depicted Connor’s purchases of clothing and other items used in the robbery.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Connor, who has prior felony convictions for dissemination of private sexual images and harassment, was on probation at the time he committed the armed robbery.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., deliberated for approximately two and a half hours before returning guilty verdicts to U.S. District Judge Roseann A. Ketchmark, ending a trial that began Monday, Feb. 12.
Under federal statutes, Connor is subject to a mandatory minimum sentence of seven years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Lauren E. Kummerer and Assistant U.S. Attorney Melissa A. Pierce. It was investigated by the Jefferson City, Mo., Police Department, the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Boone County, Mo., Sheriff’s Department.
Jury Convicts Final Defendant in Benton Harbor Gun-And-Drug InvestigationRead the Press Release
Last of 17 Defendants Convicted in Broad Federal Investigation Focused on Machine Gun Conversion Devices
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that a jury convicted Earl Austin IV, 22, of Benton Harbor, of two counts of conspiracy to distribute methamphetamine, five counts of distribution of methamphetamine, three counts of possession and transfer of a machinegun, four counts of felon in possession of a firearm, and one count of possession with intent to distribute methamphetamine.
“The national gun violence epidemic has harmed countless lives, especially kids and people of color,” said U.S. Attorney Totten. “Families in Benton Harbor deserve the right to carry out their lives without the shattering fear of shots fired and the horror it so often brings. We’ll never prosecute our way out of this crisis, which demands an all-hands response, but my office will continue to hold accountable the few who drive it.”
“Machine gun conversions continue to pose a threat to community safety, and criminals who seek to use violence for gain will face the appropriate consequences,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “I would like to thank our local, state, and federal partners who worked closely to disrupt this criminal enterprise that threatened Michigan residents. The FBI is committed to working with our law enforcement partners in removing dangerous criminals and weapons from our communities to achieve the goal of a safer Michigan.”
On December 15, 2022, the U.S. Attorney’s Office for the Western District of Michigan announced charges against 11 defendants, including Austin. The charges covered a range of federal crimes, including the sale of “switches,” small devices that turn semi-automatic pistols into fully automatic machine guns. The U.S. Attorney’s Office later charged six additional defendants as part of the same investigation. All have now been convicted.
The court has sentenced thirteen of them:
Defendant
Sentence
Jayvon Anthony
84 months
Demarcus Greely
38 months
Nicholas Hallo
46 months
Demitrius Seuell
33 months
Omarion Branch
38 months
Eric Williams
24 months
Torez Burnett
70 months
Quincy Bowman
60 months
Timothy Thomas
24 months
Mark Curtis
180 months
Jordan Allen
96 months
Calvin Hill
46 months
Joe Griffin
70 months
The Court has scheduled sentencing for Armando Villanueva on March 7, 2024; Rhonda Acklin on April 25, 2024; and Evorion Anderson on May 30, 2024. The Court has not yet announced a sentencing date for Austin.
This case was prosecuted by Assistant United States Attorneys Patrick Castle and Jacob Metoxen. It was investigated by the Federal Bureau of Investigation, Benton Harbor Department of Public Safety, Berrien County Sherriff’s Department, Homeland Security Investigations, Michigan State Police, Benton Charter Township Police Department, Pokagon Band Tribal Police Department, Grand Rapids Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Michigan Department of Corrections, and the U.S. Postal Inspection Service.
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Jefferson County man guilty of violent crime spree targeting Southeast Texas businessesRead the Press Release
BEAUMONT, Texas – A Beaumont man has pleaded guilty to federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Brandon Tyrone Mayberry, 21, pleaded guilty to Hobbs Act robbery and brandishing a firearm during a crime of violence before U.S. Magistrate Judge Christine L. Stetson on Feb. 15, 2024.
According to court documents, in April and May of 2023, Mayberry and Daniel James Leatherwood robbed several businesses in and around Beaumont at gunpoint. The robberies included two Game X Change stores, a Shell gas station, an Express Mart convenience store, and a Cindie’s lingerie store.
Mayberry was indicted by a federal grand jury on Nov. 1, 2023. He faces up to 20 years in federal prison on the armed robbery charge and an additional seven years for brandishing a firearm during the commission of that crime. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the FBI, Beaumont Police Department, Nederland Police Department, and Liberty Police Department and prosecuted by Special Assistant U.S. Attorney Tommy L. Coleman with the cooperation of the Jefferson County District Attorney’s Office.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Feb. 15 was:
Lawrence Michael Demarais, 46, a transient, on charges of felon in possession of a firearm. If convicted of the most serious crime, Demarais faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Demarais was detained pending further proceedings. The Bureau of Indian Affairs investigated the case. PACER case reference. 24-07.
Jessie Ambrose Deaguero, 41, of Billings, on charges of theft from federal firearms licensee and possession of stolen firearms. If convicted of the most serious crime, Deaguero faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Deaguero was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Billings Police Department investigated the case. PACER case reference. 24-12.
Isaac Michael Price, 19, of Billings, on charges of theft from federal firearms licensee and possession of stolen firearms. If convicted of the most serious crime, Price faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Price was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Billings Police Department investigated the case. PACER case reference. 24-19.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Feb. 14 was:
William Robert Smith, 71, of Great Falls, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Smith faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Smith was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Great Falls Police Department investigated the case. PACER case reference. 24-03.
Appearing on Feb.13 was:
Alvin Aubrey Roe, 47, of Helena, on charges of prohibited person in possession of a firearm and prohibited person in possession of ammunition. If convicted of the most serious crime, Roe faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Roe was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Great Falls Police Department investigated the case. PACER case reference. 23-104.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indian River County drug dealer sentenced to federal prisonRead the Press Release
MIAMI – On Feb. 15, an Indian River County man was sentenced to 72 months in federal prison, followed by three years of supervised release for drug trafficking. The sentence comes after he previously pleaded guilty to distribution of fentanyl.
On April 19, 2023, Juan Carlos Sanchez Echevarria, 34, of Indian River County, Florida, sold 55 grams of fentanyl in Fellsmere, Florida.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division and Sheriff Eric Flowers of the Indian River County Sheriff’s Office (IRCSO), announced the sentence imposed by U.S. District Judge Aileen M. Cannon.
DEA Miami Field Division and IRCSO investigated the case. Assistant U.S. Attorney Michael D. Porter prosecuted it.
Fentanyl is a synthetic opioid that is up to 50 times stronger than heroin and 100 times stronger than morphine. Even in small doses, fentanyl can be deadly. As little as two milligrams, about the size of 5 grains of salt, can be fatal. According to the Centers for Disease Control and Prevention (“CDC”), fentanyl and other synthetic opioids are the most common drugs involved in overdose deaths. Over 150 people die every day from overdoses related to synthetic opioids like fentanyl. The State of Florida has also seen an exponential increase in overdoses associated with fentanyl. For more information visit https://www.cdc.gov/opioids/basics/fentanyl.html# and https://www.dea.gov/factsheets/fentanyl.
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-14035.
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Greene County Sex Offender Sentenced to 175 Months for Possessing Child Pornography and Supervised Release ViolationsRead the Press Release
ALBANY, NEW YORK – Gregory Kurzajczyk, age 76, of East Durham, New York, was sentenced today to a total of 175 months in prison following trial convictions for possessing child pornography – crimes he committed while on federal supervised release.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Kurzajczyk was convicted of four counts of child pornography possession following a 3-day jury trial in October 2023. Kurzajczyk had prior federal convictions for receiving and distributing child pornography, and was sentenced in January 2017 to 72 months in prison and a life term of supervised release. Kurzajczyk was released from prison in October 2021 and returned home to Greene County under the supervision of the United States Probation Office.
The trial evidence showed that during a routine home visit on February 16, 2022, a United States Probation Officer saw an unauthorized laptop computer in plain view in Kurzajczyk’s bedroom, which led to the discovery of two more unauthorized laptops, and dozens of other unauthorized computer devices, many of them hidden under the covers of Kurzajczyk’s bed. Two laptops and two USB drives each contained a large amount of child pornography, including image and video files depicting the sexual abuse of small children.
United States District Judge Mae A. D’Agostino sentenced Kurzajczyk to a total of 175 months in prison – 151 months for the trial convictions, to run consecutively to a time-served term of 24 months for Kurzajczyk’s violation of his conditions of supervised release. Judge D’Agostino also imposed a 15-year term of post-imprisonment supervision, ordered forfeiture of the devices on which Kurzajczyk possessed child pornography, and ordered Kurzajczyk to pay $39,000 to victims whose images of sexual abuse Kurzajczyk possessed. Kurzajczyk will also be required to register as a sex offender upon his release from prison.
The United States Probation Office for the Northern District of New York initiated this investigation, and the case was also investigated by the FBI Albany’s Child Exploitation Task Force, which includes members of federal, state, and local law enforcement agencies, including the Colonie Police Department and the New York State Police. Assistant United States Attorney Michael Barnett prosecuted this case as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Former U.S. Postal Employee Admits Stealing MailRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that SHAWN R. FULLER, 37, of Hamden, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to a mail theft offense.
According to court documents and statements made in court, Fuller, while employed by the U.S. Postal Service as a mail carrier in Meriden, was under investigation for stealing mail packages. On April 17, 2023, an investigator observed Fuller at the Meriden post office opening two mail packages, removing two items from the packages, and placing them in the trunk of his car. He then notified his supervisors that he had to leave work for the day. Hamden Police subsequently stopped Fuller’s car. After a police K9 alerted officers to the possible presence of narcotics, a search of the trunk of the car revealed approximately four kilograms of a substance containing cocaine. Fuller was arrested at that time.
Fuller pleaded guilty to theft of mail by a postal employee, an offense that carries a maximum term of imprisonment of five years. Judge Meyer scheduled sentencing for May 10.
Fuller is released on a $100,000 bond pending sentencing.
This matter has been investigated by the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force and the Drug Enforcement Administration, with the assistance of the Hamden and West Haven Police Departments. The Task Force includes members from the U.S. Postal Inspection Service, the U.S. Postal Service – Office of the Inspector General, the Connecticut Army National Guard, and the Hartford, New Britain, Meriden, and Town of Groton Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Robert S. Dearington and Brendan J. Keefe.
Former Springville teacher pleads guilty to child pornography chargeRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney Trini E. Ross announced today that Frank E. Noeson III, 46, of Holland, NY, pleaded guilty before U.S. Magistrate Judge Michael J. Roemer to receipt of child pornography, which carries a mandatory minimum penalty of five years in prison, a maximum of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that Noeson, who was then a 5th grade teacher at a local elementary school, engaged in sexual communications with a minor female (Victim) using Snapchat. The Victim was 16 years old when the communications began. During the communications, Noeson persuaded the Victim to create sexually explicit images and videos and send them to him. Noeson also engaged in sexual communications with another minor female victim, who was 15 years-old, using Snapchat. During these communications, the victim sent numerous images and videos of child pornography.
The plea is the result of an investigation by the Federal Bureau of Investigation Buffalo Office Child Exploitation Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, the FBI Miami Field Office, under the direction of Special Agent-in-Charge Jeffrey Veltri, and the Tonawanda Police Department, under the direction of Chief James Stauffiger.
Sentencing will be scheduled at a later date.
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Former Public University Administrator Sentenced to 20 Months for Diverting $1.5 Million in Student Tuition PaymentsRead the Press Release
SAN FRANCISCO – Sandra (Sandi) Eileen Le was sentenced today to 20 months in prison, and ordered to pay at least $1,536,089.64 in restitution for wire fraud, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp. The sentence was handed down by the Hon. William H. Orrick, Senior U.S. District Judge.
Le, 55 of San Francisco, was indicted on August 26, 2021, and pleaded guilty on November 9, 2023, to three counts of wire fraud, in violation of 18 U.S.C. § 1343. According to the plea agreement, Le admitted she was the Academic Program Officer for the University of California, San Francisco (UCSF) School of Nursing’s Post-Master’s and Special Studies Certificate Programs. She abused her position by directing students in those programs to have their tuition checks made out to her, or to a merchandiser she purchased from, or to leave the checks’ payee line blank so she could then make out the checks to herself or her associates. She then deposited the checks into her personal bank accounts, including joint bank accounts that she shared with associates, and used the funds to pay for luxury items from that merchandiser. She also used the funds for gambling, home improvement, and other personal expenses. Le disguised and concealed her misconduct by generating false records of payments and student enrollment for her supervisors at the university. The investigation into her conduct revealed that Le diverted almost 300 such checks from November 2013 through March 2019, totaling $1,536,089.64.
According documents filed by the government in connection with sentencing, the investigation began in May 2019, when Le took a leave of absence while facing increased scrutiny from UCSF’s Audit and Advisory Services Unit, given the school’s inability to reconcile tuition revenues with enrollment in the programs Le administered. The government’s filings describe how, while Le was on leave, a program student provided Le’s replacement a tuition check written out to Le-- the student explained that the payment was per Le’s instructions. Thereafter, investigators conducted interviews of dozens of program students and completed a forensic examination of Le’s bank accounts. This and additional other investigation revealed the extent of Le’s fraud, and corresponding harm to the UCSF School of Nursing community.
Judge Orrick ordered Le to surrender on or before May 10, 2024, to begin serving her 20 month prison term, and found that restitution was at least $1,536,089.64, with the exact amount to be ordered after a further hearing. In addition to the prison term, Judge Orrick also ordered Le to serve a three-year period of supervised release.
Assistant U.S. Attorney Daniel N. Kassabian is prosecuting the case with the assistance of Veronica Hernandez. The prosecution is the result of an investigation by the FBI and the UCSF Police Department.