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Friday 5 January 2024
Youngsville Man Charged with Possession of Materials Involving Sexual Exploitation of MinorsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced the indictment of COY DAVID MILLER (“MILLER”), age 48, of Youngsville, La. on for the Possession of Materials Involving the Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and (b)(2). The Government unsealed MILLER’s indictment on January 3, 2024. If convicted, MILLER faces up to twenty (20) years imprisonment, and/or up to a fine of $250,000.00, or the greater of twice the gross gain to the defendant or twice the gross loss to any person of the offense under Title 18, United States Code, Section 3571. In addition, MILLER faces a term of supervised release of no less than five (5) years and up to life, after his release from prison. He also faces payment of a $100 mandatory special assessment fee.
According to the indictment, beginning at an unknown time and until October 17, 2023, MILLER was found in possession of images and videos of pre-pubescent child pornography. On Wednesday, January 3, 2024, MILLER was arrested at his home in Youngsville by Special Agents with the U.S. Department of Homeland Security, Homeland Security Investigations.
U.S. Attorney Evans reiterated that the indictment is merely a charge and the guilt of the defendant must be proven beyond a reasonable doubt.
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 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 www.projectsafechildhood.gov.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the U.S. Department of Homeland Security, Homeland Security Investigations, and the U.S. Customs and Border Protection. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Woodville Woman Ordered to Repay $103,596.91 after Committing Yearslong Fraud to Obtain BenefitsRead the Press Release
BANGOR, Maine: A Woodville woman was sentenced in U.S. District Court in Bangor for Social Security fraud, health care fraud, and theft of public money.
U.S. District Judge Lance E. Walker ordered Rella Austin-Kimball, 51, to pay $103,596.91 in restitution, consisting of $78,858.25 to the Social Security Administration (SSA), and $4,550.66 for the MaineCare program and $20,188 for the Supplemental Nutrition Assistance Program (SNAP) administered by the Maine Department of Health & Human Services (ME/DHHS). Austin-Kimball was also sentenced to serve three years of probation. She pleaded guilty on May 26, 2023.
According to court records, from about January 2005 through March 2021, Austin-Kimball lied to the SSA about her husband’s presence in her household and failed to report her receipt of alimony payments following divorce to fraudulently appear eligible for Supplemental Security Income (SSI) payments. Austin-Kimball also concealed her husband’s presence from ME/DHHS from about January 2005 to July 2017, during which time she received MaineCare and Supplemental Nutrition Assistance Program (SNAP) benefits. By lying about her husband’s presence, Austin-Kimball was also able to fraudulently receive SSI, MaineCare, and SNAP benefits for a then-minor child.
In multiple benefit eligibility reviews, Austin-Kimball falsely represented to the SSA and ME/DHHS that she and her husband had separated in January 2005 and had lived separately since that time. Following her divorce, she failed to disclose her receipt of alimony payments during eligibility reviews. She failed to disclose these events despite knowing that she was required to and that they would affect her eligibility to receive benefits for herself and on behalf of her child.
SSA’s Office of the Inspector General and ME/DHHS’s Fraud Investigation and Recovery Unit investigated the case.
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Wilkinsburg Man Sentenced to Eight Years in Prison on Drug Trafficking ConvictionRead the Press Release
PITTSBURGH - A resident of Wilkinsburg, Pennsylvania, has been sentenced in federal court to eight years in prison on his conviction of narcotics trafficking, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Howard Palmer, age 35, of Wilkinsburg, PA.
According to information presented to the court, on February 9, 2023, federal search warrants were executed on two apartments on Princeton Boulevard in Wilkinsburg, PA. During the execution of those warrants, two kilograms of cocaine, two firearms, quantities of fentanyl and other drugs, drug packaging material, and other items were recovered from the two apartments. Palmer admitted that the firearms and narcotics belonged to him.
Prior to imposing sentence, Judge Conti indicated that the sentence was appropriate taking into consideration the large quantity of drugs possessed by the defendant as well as the presence of firearms and ammunition.
Assistant United States Attorney Douglas C. Maloney prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Palmer.
Wildwood Man Arrested for Possession of A Firearm by A Convicted FelonRead the Press Release
Ocala, Florida –United States Attorney Roger B. Handberg announces the arrest of James Wendell Jackson (31, Wildwood) on an indictment charging him with possession of a firearm affecting commerce by a convicted felon. If convicted, Jackson faces up to 15 years in federal prison. A federal grand jury indicted Jackson on November 28, 2023.
According to the court records, Jackson has been convicted of seven felonies, including selling cocaine within 1000 feet of a daycare. On January 12, 2023, law enforcement executed a federal search warrant on a Hernando County residence and found a loaded American Tactical Imports firearm locked in a safe. A subsequent forensic analysis revealed Jackson’s palmprint on the firearm. As a convicted felon, Jackson is prohibited from possessing firearms and ammunition under federal law.
A federal indictment is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Hernando County Sheriff’s Office, and the Wildwood Police Department. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
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.
Two Washington State Men Caught Selling 80 Pounds of Methamphetamine Face Federal ChargesRead the Press Release
PORTLAND, Ore.—Two suspected drug traffickers from Vancouver, Washington are facing federal charges today after they were caught selling nearly 80 pounds of methamphetamine in a single negotiated transaction.
Luis Arnulfo Urioste Bracamontes, 26, and Rafael Avina Torres, 37, have been charged by criminal complaint with conspiring to possess with intent to distribute and possessing with intent to distribute methamphetamine.
According to court documents, in December 2023, special agents from Homeland Security Investigations (HSI) obtained information that Urioste, through his Portland area drug trafficking organization, was involved in and capable of selling large quantities of methamphetamine throughout the region. Soon after, at the direction of HSI and the Westside Interagency Narcotics team (WIN), a purchase of 80 pounds of methamphetamine for $104,000 was arranged with Urioste.
On the evening of January 4, 2023, after observing the negotiated sale taking place in a restaurant parking lot, investigators arrested Urioste and his associate, Avina, without incident. Investigators located and seized two cardboard boxes containing nearly 80 pounds of packaged methamphetamine from Urioste and Avina’s vehicle. Later the same evening, a state search warrant was executed on a Vancouver house Urioste and Avina were seen at prior to their arrest. Investigators located and seized several additional pounds of methamphetamine, scales, and a rifle from a bedroom where Avina was believed to reside.
Urioste and Avina made their first appearances in federal court today before U.S. Magistrate Judge Jeffrey Armistead and were ordered detained pending further court proceedings.
This case was investigated by HSI and WIN with assistance from the Clark County, Washington Sheriff’s Office. It is being prosecuted by Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon.
WIN is a Washington County, Oregon-based interagency drug interdiction task force that includes members from the Washington County Sheriff’s Office, Beaverton and Hillsboro Police Departments, Oregon National Guard Counter Drug Program, FBI, U.S. Drug Enforcement Administration (DEA), and HSI.
A criminal complaint is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
Two New Jersey Men Sentenced to Prison for Roles in Multimillion-Dollar Compounded Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – Two New Jersey brothers have been sentenced to prison for their roles in a scheme to defraud public and private health benefits programs, U.S. Attorney Philip R. Sellinger announced today.
John Cuffari, 61, of Cedar Grove, New Jersey, was sentenced to 17 months in prison for his role in defrauding benefits programs of at least $5.3 million for the billing of medically unnecessary compounded prescriptions. He previously pleaded guilty to an information charging him with conspiracy to commit health care fraud. U.S. District Judge Renee Bumb imposed the sentence on Jan. 4, 2023, in Camden federal court.
Christopher Cuffari, 57, of Little Falls, New Jersey, was sentenced to 27 months in prison for his role in defrauding benefits programs of $7.89 million for the billing of medically unnecessary compounded prescriptions. He previously pleaded guilty to an information charging him with conspiracy to commit health care fraud. U.S. District Judge Peter Sheridan imposed the sentence on Jan. 3, 2024, in Trenton federal court.
U.S. Attorney Philip R. Sellinger“By their own admission, these defendants bilked publicly and privately funded insurance plans of millions of dollars in fraudulent reimbursements for compounded medications. Working with our partners, we will prosecute those who take advantage of our health care system to generate illicit income.”
“This investigation is only one example of how the belief that these cases have no victims is not true,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Fraud creates tougher regulations and policies from government agencies and insurance companies to prevent it from taking place. That trickles down to patients who have a much harder time getting the healthcare they may desperately need. The Cuffari brothers are just a small cog in a tremendously frustrating wheel of criminals, but we won't be deterred from bringing every one of them to justice.”
According to documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredients in the prescription.
Between November 2014 and July 2016, John Cuffari participated in a conspiracy that involved the submission of fraudulent prescriptions for compounded medications to public and private insurance plans. Christopher Cuffari participated in the conspiracy between November 2014 and September 2017. The scheme centered on the discovery that certain insurance plans paid for prescription compounded medications – including scar creams, wound creams, and metabolic supplements/vitamins – at exorbitant reimbursement rates.
John and Christopher Cuffari worked as sales representatives for several marketing companies and compounding pharmacies and targeted individuals who had insurance plans that covered compounded medications. They then convinced those individuals to obtain prescriptions for compounded medications, regardless of medical necessity, often by providing them with cash payments. In order to obtain prescriptions for compounded medications for some of the recruited individuals, the defendants caused payments to be made to a New Jersey-based physician.
In addition to the prison terms, both defendants were sentenced to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the sentencings.
The government is represented by Assistant U.S. Attorney Chelsea D. Coleman of the U.S. Attorney’s Office, Opioid Abuse Prevention and Enforcement Unit in Newark.
Two Minnesota-Based Executives Plead Guilty to Orchestrating Multimillion Dollar Accounts Receivable Factoring SchemeRead the Press Release
ST PAUL, Minn. – Two medical services company executives have pleaded guilty to orchestrating an accounts receivable factoring fraud scheme, announced U.S. Attorney Andrew M. Luger.
According to court documents, Khemwattie Singh, 53, was the chief executive officer of Global Medical Services, a Minnesota-based healthcare solutions company. Neeraj Chepuri, 55, was the chief medical officer of Global Medical Services. Between June and October 2018, Singh, Chepuri, and others entered into factoring contracts with MD Capital Solutions, a Florida-based investment company, to purchase the accounts receivable of Global Medical Services and Minnesota International Medicine for more than $2.6 million. Factoring is a form of short-term financing in which a business sells its accounts receivable to a third-party at a discount.
According to court documents and their admissions in court, Singh and Chepuri defrauded MD Capital Solutions by failing to pay over the receivables as they were collected and falsely represented to MD Capital Solutions that no funds had been received. Instead, Singh and Chepuri pocketed the money, wiring more than $5 million overseas.
In addition, Singh was responsible for complying with all federal tax laws pertaining to Global Medical Services as the Chief Executive Officer, including the requirement that the business would withhold federal income taxes and Social Security and Medicare (“FICA”) taxes from employees’ pay and report and pay over the withheld amounts to the Internal Revenue Service. Beginning in approximately 2018, Singh willfully failed to file quarterly payroll tax returns or pay over the withheld amounts and the employer’s contribution to FICA.
Singh and Chepuri each pleaded guilty to one count of wire fraud on December 29, 2023, in U.S. District Court before Chief Judge Patrick J. Schiltz. Singh also pleaded guilty to one count of willful failure to account for and pay over payroll taxes for withholding federal taxes from employee payroll and not reporting or paying the withholdings to the IRS. The plea agreements include restitution to the U.S. Small Business Administration for a fraudulent Paycheck Protection Loan obtained by the defendants for the company they operated. Sentencing hearings are scheduled for May 7, 2024 (Singh) and May 9, 2024 (Chepuri).
This case is the result of an investigation conducted by the FBI, the Minnesota Commerce Fraud Bureau, and the IRS.
Assistant U.S. Attorneys Robert M. Lewis and Chelsea A. Walcker are prosecuting the case.
Two Indicted for Armed Carjacking in MinneapolisRead the Press Release
MINNEAPOLIS – A St. Paul man and a Mounds View woman have been indicted for carjacking and firearm violations, announced U.S. Attorney Andrew M. Luger.
According to court documents, on October 6, 2023, Isis Martinaz Brent, 19, and Carvon Antonio Saine, 18, used violence and intimidation to steal a 2013 Chevrolet Malibu in South Minneapolis. During the carjacking, Brent and Saine used a semiautomatic firearm with the intent to cause bodily harm.
The indictment charges Brent and Saine each with one count of carjacking and one count of brandishing a firearm during a crime of violence. The defendants made their initial appearances today in U.S. District Court before Magistrate Judge Dulce J. Foster.
This case is the result of an investigation conducted by the FBI and the Minneapolis Police Department.
Assistant U.S. Attorney David B. Green is prosecuting the case.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Florida Residents Sentenced for $93M Health Care Fraud and Money Laundering SchemeRead the Press Release
A Florida man and woman were sentenced for their roles in a wide-ranging conspiracy to defraud Medicare by billing over $93 million for home health therapy services that were never rendered.
Karel Felipe, 42, of Miami Shores, was sentenced to eight years and four months in prison. Tamara Quicutis, 54, of Hialeah, was sentenced to five years and 10 months in prison. The court also ordered forfeiture of fraud proceeds. Both defendants were convicted in October 2023 after a jury found them guilty of conspiring to commit health care fraud and wire fraud and conspiring to commit money laundering.
According to court documents and evidence presented at trial, Felipe and Quicutis conspired with others to submit false bills to Medicare for three home health companies located in Michigan. Their co-conspirators recruited individuals from Cuba to sign Medicare enrollment documents and appear as the owners of the home health agencies to conceal the identities of Felipe, Quicutis, and others involved in the scheme. Felipe, Quicutis, and their co-conspirators used these home health companies to submit claims for services that were not rendered using lists of stolen patient identities. Felipe, Quicutis, and their co-conspirators used dozens of shell companies and hundreds of bank accounts to launder the Medicare fraud proceeds and convert the proceeds into cash at Miami-area ATMs and check cashing stores.
Four additional Florida residents were previously sentenced in the case. Jesus Trujillo, 52, of Miami, was sentenced to 14 years in prison after pleading guilty to conspiracy to commit health care fraud and wire fraud and conspiracy to commit money laundering. The court also entered a forfeiture money judgment against him for the amount involved in money laundering, $44,351,817, and ordered forfeiture of two real properties to satisfy that judgment. Didier Arcia, 44, of Davenport, was sentenced to six years and eight months in prison after pleading guilty to conspiracy to commit money laundering. Alexey Gil, 41, of Miami, was sentenced to five years and five months in prison after pleading guilty to conspiracy to commit health care fraud and wire fraud. Jeffrey Avila, 33, also of Miami, was sentenced to time served and supervised release after pleading guilty to conspiracy to commit money laundering.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office, and Acting Special Agent in Charge Stephen Mahmood of the Department of Health and Human Services Office of the Inspector General (HHS-OIG) Miami Regional Office made the announcement.
The FBI and HHS-OIG investigated the case.
Trial Attorneys Jamie de Boer, D. Keith Clouser, and Emily Gurskis of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Gabrielle Raemy Charest-Turken for the Southern District of Florida is handling asset forfeiture.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
St. Louis Man County Man Admits 2022 CarjackingRead the Press Release
ST. LOUIS – A man from St. Louis County, Missouri on Friday admitted committing an armed carjacking in 2022.
La’Vontray Hayes-Williams, 20, of Jennings, pleaded guilty in U.S. District Court in St. Louis to one count of carjacking and one count of brandishing a firearm in furtherance of a crime of violence.
Hayes-Williams admitted stealing a 2018 Nissan Sentra on July 7, 2022, outside a Family Dollar store at 6440 West Florissant Avenue in Jennings. Hayes-Williams pulled out his Glock handgun and repeatedly ordered the driver to “give me the car.” He then sped away in the stolen car with his girlfriend. The victim called police, who quickly spotted the vehicle. Hayes-Williams fled, sparking a chase that lasted nearly ten miles and reached speeds of over 100 mph. Hayes-Williams was caught after the car stopped and he fled on foot, his plea agreement says.
Hayes-Williams is scheduled to be sentenced on April 4. The carjacking charge is punishable by up to 15 years in prison, a $250,000 fine, or both. The firearm brandishing charge carries a mandatory minimum sentence of seven years, consecutive to all other charges, and a maximum of life in prison.
The St. Louis County Police Department investigated the case. Assistant U.S. Attorney Nino Przulj is prosecuting the case.
Spencer Iowa Man Sentenced on Possession of Child PornographyRead the Press Release
A Spencer man was sentenced January 4, 2024, to more than 4 years in federal prison.
Leighton Marshal Jones, age 42, from Spencer, Iowa, received the prison term after an August 18, 2023, guilty plea to Possession of Child Pornography.
Evidence at Jones’ sentencing hearing established that between January 1, 2012, and December 7, 2017, Jones possessed over 1,500 images of child pornography copied across six electronic devices. Jones admitted to officers that he downloaded the child pornography in approximately 2012. Jones stated he had no interest in it but kept the child pornography because it was “different,” and he “knew he would not be able to get it again if he deleted it.” These images included material that portrayed toddlers, bestiality, and sadistic and masochistic conduct.
Jones was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Jones was sentenced to 51 months’ imprisonment and ordered to pay $14,000 in restitution to several victims. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Jones is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Federal Bureau of Investigations and Spencer Police Department and was prosecuted by Assistant United States Attorney Kraig R. Hamit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-4015.
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South Florida Man Pleads Guilty to Participating in a Conspiracy to Distribute Protonitazene from ChinaRead the Press Release
MIAMI – Today, a south Florida defendant pled guilty to participating in a conspiracy to possess with intent to distribute a synthetic opioid, protonitazene.
Will Catis, Sr. (Catis), 42, of Deerfield Beach, pled guilty before U.S. District Judge Raag Singhal. According to the agreed upon factual proffer, on April 12, 2022, the U.S. Drug Enforcement Administration (DEA) Administrator issued a temporary order to schedule seven synthetic benzimidazole-opioid substances, including protonitazene, in schedule I of the Controlled Substances Act. Protonitazene is a synthetic opioid that is equally as potent, if not more potent, than fentanyl. As part of an investigation into Chinese chemical companies that were sending synthetic opioids, such as protonitazene, to the U.S. and Mexico, several U.S. based drug traffickers were identified. One of those individuals was Catis. Catis was obtaining protonitazene and metonitazene from Jiangsu Bangdeya New Material Technology Co. LTD. (“Bangdeya”).
On October 22, 2022, Postal Inspectors seized a parcel addressed to “Will Catis.” This parcel was sent from Bangdeya. On October 28, 2022, a search warrant was obtained for the parcel. The search revealed a plastic bag of yellowish powder determined to be 172.3 grams of protonitazene.
On December 27, 2022, a search warrant was obtained for the Catis’ electronic media which was found to contain videos reflecting a kilogram press, firearms, and large sums of U.S. currency. Additionally, there were screenshots and photos reflecting Catis’ drug trafficking, including chats with Chinese chemical company sales representatives, bags filled with a powdery substance that were similar to the seized protonitazene, and screenshots of advertisements from Chinese chemical companies selling protonitazene.
After Catis’ arrest and pursuant to searches of his residence and storage unit, the following substances were discovered(1) 258.7 grams of a mixture of bromazolam, protonitazene, metonitazene, and fentanyl; (2) 1060.1 grams of a mixture of metonitazene, protonitazene, fentanyl, and lidocaine; (3) 4654 grams of a mixture of n-propylbutylone, eutylone, fentanyl, heroin, metonitazene, protonitazene, p-fluorofentanyl, lidocaine, quinine, and caffeine; (3) 726.5 grams of 3,4-Methylenedioxy-α-cyclohexylaminopropiophenone; (4) 3.45 grams of protonitazene; (5) 28.77 grams of a mixture of protonitazene and cocaine; (6) 361.9 grams of a mixture N-Ethylpentylone, eutylone, metonitazene, protonitazene, fentanyl, heroin, α-Pyrrolidino-2-phenylacetophenone, p-Fluorofentanyl, quinine, lidocaine, and caffeine; (7) 1389.6 grams of a mixture of N-Ethylpentylone, metonitazene, eutylone, heroin, α-Pyrrolidino-2-phenylacetophenone, ANPP, quinine, caffeine, and lidocaine; (8) 571.6 grams of protonitazene; (9) 27.8 grams of metonitazene; (10) 28 grams of protonitazene; (11) 448.4 grams of bromazolam; and (12) 176 grams of a mixture of N-Propylbutylone, eutylone, metonitazene, fentanyl, protonitazene, bromazolam, heroin, lidocaine, quinine, and caffeine.
Catis’ sentencing hearing is scheduled for April 11, 2024, at noon. He faces up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the DEA, Miami Field Division, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, Inspector in Charge Juan A. Vargas of the U.S. Postal Inspection Service (USPIS), Miami Division, and Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI) Miami Field Office.
DEA Miami Field Division Counternarcotic Cyber Investigations Task Force, HSI Miami, USPIS-Miami, and IRS-CI Miami, Miami Field Office investigated this case.
Assistant U.S. Attorney Monique Botero for the Southern District of Florida is prosecuting the case. Assistant U.S. Attorney Michell Hyman for the Southern District of Florida is handling asset forfeiture.
The indictment is a result of Organized Crime Drug Enforcement Task Forces (OCDETF) investigations. The OCDETF mission is to identify, disrupt, and dismantle the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency task force approach. OCDETF synchronizes and incentivizes prosecutors and agents to lead smart, creative investigations targeting the command-and-control networks of organized criminal groups and the illicit financiers that support them. Additional information about the OCDETF Program may be found at www.justice.gov/OCDETF.
Members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force carried out this case and prosecution. HIDTA was established in 1990. This program, which is made up of federal, state, and local law enforcement agencies, fosters intra-agency cooperation among law enforcement agencies in South Florida and involves them in developing a strategy to target the region's drug-related and violent crime threats to public safety, as with the opioid epidemic, fentanyl, and the cocaine threat to our nation. The South Florida HIDTA uses the funding provided by the Office of National Drug Control Policy, out of the Executive Office of the President of the United States, that sponsors a variety of law enforcement initiatives that target the region's illicit drug and violent crime threats to our community.
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-60116-Singhal.
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Snohomish County man who aimed laser at two small planes sentenced to prisonRead the Press Release
Seattle – A 41-year-old Snohomish County resident was sentenced today in U.S. District Court in Seattle to eight months in prison for two counts of aiming a laser pointer at an aircraft, announced Acting U.S. Attorney Tessa M. Gorman. Christopher W. Harris has been in custody since his bond was revoked in August 2023. Harris was indicted in February 2023 for the laser crimes reported on November 20, 2022. At the sentencing hearing, U.S. District Judge Richard A. Jones said the conduct that temporarily damaged the pilot’s vision “was very dangerous, life-threatening, and done without regard for the victims.”
“Shining a laser at aircraft is dangerous for the pilot, those on board, and even those on the ground if the pilot cannot see to safely land,” said Acting U.S. Attorney Gorman. “Because of that danger, congress made such conduct a specific federal crime. It is fortunate both planes were able to safely land.”
According to records filed in the case, at about 5:00 PM on November 20,2022, Harris points a blue laser pointer at the cockpit of a two-person personal aircraft. The plane was on a track to land at Arlington Airport. The pilot’s eyes were damaged by the laser beam, and he was unable to see his instrument panel. He was able to switch to the backlight on the instrument screen which allowed him to safely land the aircraft. The pilot needed medical treatment for his eye injury.
Speaking in court today, pilot Jonathon Fay said once his vision was damaged by the laser, “I had to figure out how to land the plane… If I had been flying an older aircraft without the instrument visual aids, I likely would not have survived…By the grace of God, I have no permanent vision loss.”
Just two and a half hours later, Harris pointed the laser pointer at a four-seat aircraft being flown by a student pilot. The flight instructor on the plane was able to get pictures showing the origin of the laser light and also photographed how it obscured the sight of the pilot.
Based on the video from the second plane and the flight plan of the first plane, the Federal Aviation Administration and the Arlington Police were able to identify the origin of the laser light as a storage facility in Marysville, Washington. The storage facility is about 1.5 miles from the Arlington Airport.
Using entry logs and video surveillance from the storage facility law enforcement identified Harris as the person using the laser pointer on the planes. He was arrested by law enforcement at the storage facility on December 9, 2022.
In asking the judge to sentence Harris to a year and a day in prison, Assistant United States Attorney Jocelyn Cooney wrote to the court, “Mr. Harris’s behavior in this case is particularly concerning. This was not one poor decision by Mr. Harris. The two incidents are separated by approximately two-and-a-half hours. Mr. Harris left the storage facility after lasering the first plane before returning to laser the second plane. Both times, Mr. Harris’s actions were deliberate. He pointed the laser for approximately twelve (12) to thirteen (13) seconds—a considerable time—and tracked the plane’s cockpit as it moved across the sky. The fact that Mr. Harris chose to go back and engaged in the same dangerous behavior demonstrates that this was not a one-off occurrence of illegal behavior.”
Judge Jones sentenced Harris to three years of supervised release to follow the prison term, with intensive addiction and mental health treatment. Referencing the pilot in court Judge Jones said, “In this case, you almost killed this man… He has a family and people who depend on him. He could have wound up in a fatal crash… There must be consequences for what you did.”
The case was investigated by the Arlington Police Department and the Federal Aviation Administration (FAA).
The case was prosecuted by Assistant United States Attorney Jocelyn Cooney.
Serial Fraudster Sentenced for Role in Multiple Investment Fraud SchemesRead the Press Release
A California man previously extradited from Mexico was sentenced yesterday to 4 years in prison for his role in two high-yield investment fraud schemes in which he and his co-conspirators defrauded elderly and other vulnerable victims out of millions of dollars.
According to court documents, Daniel Thomas Broyles Sr., aka Dan Thomas, 66, of Malibu, participated in a high-yield investment fraud scheme involving a sham company named Niyato Industries Inc. (Niyato). Broyles conspired with Niyato’s CEO, Robert Leslie Stencil, 66, of Charlotte, North Carolina, and others to defraud Niyato investors. Together, Broyles, Stencil, and others falsely portrayed Niyato as a leader in electric vehicle manufacturing and converting vehicles to run on compressed natural gas. In reality, Broyles knew, or intentionally avoided learning, that Niyato was merely a sham company that lacked any operational facilities or proprietary technology and virtually all investor funds were being disbursed among the co-conspirators and not used to promote Niyato’s business. In June 2016, after Broyles learned that federal law enforcement agents were investigating Niyato, he relocated to Mexico. When, in August 2016, he learned that he had been indicted, Broyles moved to a new address in Mexico and began using the alias “Daniel Cruz Torrez” to hide from federal law enforcement agents and obstruct the federal government’s prosecution of him.
Broyles also participated in a second high-yield investment fraud involving EarthWater Limited (EarthWater). Broyles conspired with EarthWater’s CEO, Cengiz Jan Comu, 63, of Dallas, and others to sell EarthWater stock. Broyles and others made numerous false and misleading representations, including that EarthWater used the money raised from victim investors to develop and operate the company’s business. In truth, Broyles, Comu, and their co-conspirators had agreed to use the invested victim funds largely for their personal benefit.
Broyles was extradited from Mexico in March 2022. In June 2022, Broyles pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud, and one count of money laundering in connection with the Niyato scam. Broyles also pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud in connection with the EarthWater fraud.
Seven other defendants have previously been convicted in connection with the Niyato scam, including Stencil, who was convicted following a three-week jury trial and sentenced to 12 years and three months in prison.
Eleven other defendants have pleaded guilty in connection with the EarthWater fraud, including Comu, who was sentenced to 10 years in prison.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Dena J. King for the Western District of North Carolina, U.S. Attorney Leigha Simonton for the Northern District of Texas, Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service (USPIS) Atlanta Division, and Inspector in Charge Eric Shen of the USPIS Criminal Investigations Group made the announcement.
Mexican officials provided significant assistance in the extradition of Broyles to the United States. The Justice Department’s Office of International Affairs also provided substantial assistance in securing the arrest and extradition of Broyles.
USPIS investigated the case. The U.S. Marshals Service transported Broyles from Mexico to the United States.
Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section is prosecuting both cases. Trial Attorney Theodore Kneller of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary Walters for the Northern District of Texas are also prosecuting the EarthWater case.
Seattle man who distributed thousands of fentanyl pills in Whatcom County sentenced to six years in prisonRead the Press Release
Seattle – A 33-year-old Seattle man was sentenced today in U.S. District Court in Seattle to six years in prison for distributing fentanyl and illegally possessing firearms, announced Acting U.S. Attorney Tessa M. Gorman. Ahbdurman Ahmed was one of six people indicted in April 2023 for a conspiracy to distribute fentanyl in Whatcom County. At the sentencing hearing, U.S. District Judge Richard A. Jones said, it was critical that he protect the public. Judge Jones told Ahmed, “I can’t imagine how you would feel if someone sold fentanyl to your children.”
“This defendant sold thousands of fentanyl pills in Whatcom County, pills that nearly killed him in an overdose,” said Acting U.S. Attorney Gorman. “Even after that brush with death, he continued to sell – putting others at risk. Drug suppliers must be held accountable for their conduct, whether driven by addiction or by greed – in this case it appears it was both.”
“DEA, along with our Federal, state, local, and tribal partners, works tirelessly to safeguard our communities by holding people like Mr. Ahmed accountable for distributing death in the form of fentanyl,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “We will go to any lengths to take armed traffickers off the streets and create a safe environment for Whatcom County and Lummi Nation residents, as we showed in this case.”
According to court records, law enforcement officers observed various drug transactions and interdicted the drug loads. On December 30, 2022, law enforcement was called to a mini mart where Ahmed and another person had overdosed on fentanyl and had to be revived and transported to the hospital. Nevertheless, ten days later Ahmed was seen trafficking fentanyl pills once again. In mid-January 2023, law enforcement seized bags containing 1,000 pills from two of Ahmed’s customers. In March of 2023, law enforcement seized a total of 3,000 fentanyl pills from Ahmed. Ahmed was armed at the time of the second seizure -- a Glock handgun with an extended magazine was found with him in the car he was driving. He is prohibited from possessing firearms due to prior criminal convictions.
“The Whatcom County Sheriff’s Office is committed and will continue locating dangerous drug traffickers that are poisoning our communities with potentially deadly substances,” said Whatcom County Sheriff Donnell Tanksley. “Losing one community member to an overdose, fatal or otherwise, is one community member too many – we are all family. We will also continue to work with our community partners to guide those affected by addiction to needed resources.”
The other defendants in this case are:
- Robel Sisay Gebremedhin A/K/A Robel Sisay Gebremedhui, 41, of Burien, WA is charged with: possession of fentanyl with intent to distribute; unlawful possession of a firearm; and carrying a firearm in furtherance of a drug trafficking crime. He is being sought by law enforcement.
- Mohamed Abdirisak Mohamed, 35, of Seattle, WA is charged with: possession of fentanyl with intent to distribute; unlawful possession of a firearm; and carrying a firearm in furtherance of a drug trafficking crime. Trial is scheduled for March 2024.
- Matthew Anderson, 35, of Bellingham, WA is also charged with: two counts of possession of fentanyl with intent to distribute. His trial is scheduled for March 2024.
- Daniel John Faix, 41, of Bellingham, WA pleaded guilty yesterday to Possession of controlled substances with intent to distribute, unlawful possession of firearms, and possession of firearms in furtherance of a drug trafficking crime. He is scheduled for sentencing on March 29, 2024.
- Natasha Parkhill, 38, of Bellingham, WA was arraigned on the indictment for possession of fentanyl with intent to distribute in November 2023 and remains detained pending trial.
In asking for a seven-year prison sentence, Assistant United States Attorney Stephen Hobbs wrote to the court, “Ahmed was involved in an ongoing conspiracy to distribute fentanyl in Whatcom County. Many of these drugs ended up being distributed on the Lummi Indian reservation, a community hard hit by the fentanyl pandemic. The Court is certainly aware of the dangers that these drugs – particularly fentanyl – pose to those who use them. Ahmed himself, as a drug user who has overdosed on fentanyl, was obviously aware of the risk of death or injury this drug presents. Ultimately, Ahmed – for whatever reason – was willing to personally profit from the distribution of an addictive and often deadly controlled substance.”
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF .
This investigation was led by the Drug Enforcement Administration (DEA) and the Whatcom County Drug and Gang Task Force, with valuable assistance provided by the Whatcom County Sheriff’s Office, Washington State Patrol, and the Whatcom County Prosecutor’s Office.
The case is being prosecuted by Assistant United States Attorney Stephen Hobbs.
Portsmouth Man Sentenced for Carjacking at GunpointRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced yesterday to 15 years in prison for armed carjacking.
According to court documents, on July 11, 2022, Raequan Rucker, 23, along with a co-conspirator, simultaneously approached two women late at night and stole their vehicles at gunpoint. At the time of the carjacking, one victim had her 9-month-old baby in the backseat. After Rucker entered one vehicle and his co-conspirator entered the other, they drove off and met at a location in Portsmouth where Rucker’s co-conspirator dumped his vehicle and entered Rucker’s. The two men then traveled to Virginia Beach, where they were subsequently located by Virginia Beach Police in a retention pond.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Paul Neudigate, Chief of Virginia Beach Police made the announcement after sentencing by U.S. District Judge Mark S. Davis.
Assistant U.S. Attorney Matthew Heck prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-124.
Peoria Felon Sentenced to 57 Months’ Imprisonment for Possession of a FirearmRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, Jamarcus J. Hollingsworth, 30, was sentenced today to 57 months’ imprisonment, to be followed by three years of supervised release, possessing a firearm as a felon.
At the sentencing hearing before Senior U.S. District Judge Joe B. McDade, the government established that in May 2023, agents from the Bureau of Alcohol, Tobacco, Firearms & Explosives received information that Hollingsworth, a felon, was in possession of firearms and was offering to sell a pistol in Peoria. The Peoria Area Federal Firearms Task Force conducted an investigation that led to the arrest of Hollingsworth at a hotel on West War Memorial Drive. During the course of the arrest, agents located a loaded pistol on the driver’s seat of the car Hollingsworth had been driving. Agents then obtained a search warrant for Hollingsworth’s home and, during the search, located an AR-15 rifle loaded with 28 rounds of live ammunition. The serial number on the rifle had been obliterated. At the time of his arrest, Hollingsworth was on parole for a state conviction for aggravated robbery, having previously been sentenced to the Illinois Department of Corrections.
A federal criminal complaint was filed against Hollingsworth in May 2023 and an indictment followed in June 2023. He pleaded guilty in September 2023.
The statutory penalties for possessing a firearm as a felon are up to 15 years’ imprisonment and up to three years of supervised release.
The Peoria Area Federal Firearms Task Force, comprised of agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Peoria Police Department; the Peoria County Sheriff’s Department; Illinois Department of Corrections; and the Illinois State Police, investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
The case against Hollingsworth 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.
Owensboro Felon Sentenced to over 9 Years in Federal Prison for Unlawful Possession of a FirearmRead the Press Release
Owensboro, KY – An Owensboro man was sentenced yesterday to 9 years and 10 months in federal prison for the illegal possession of a firearm by a convicted felon.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office, and Chief Art Ealum of the Owensboro Police Department made the announcement.
According to court documents, Skylar Chase Riney, 37, was sentenced to 9 years and 10 months in prison, followed by 3 years of supervised release, for possession of a firearm by a convicted felon. On February 18, 2022, in Daviess County, Kentucky, Riney possessed three firearms, an Armscor, model 206, .38 caliber handgun, a Smith and Wesson, model M&P 9 M2.0, and a Kimber, model K6S Combat, .357 caliber revolver. Riney was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses.
On June 3, 2019, in Daviess Circuit Court, Riney was convicted of possession of a controlled substance in the first degree, first offense, Lortab, possession of a controlled substance in the first degree, first offense, methamphetamine, possession of drug paraphernalia while in possession of a firearm, and possession of a firearm by a convicted felon.
On June 3, 2019, in Daviess Circuit Court, Riney was convicted of trafficking in a controlled substance in the first degree, first offense, less than or equal to 2 grams methamphetamine and possession of a controlled substance in the first degree, first offense, opiates.
On August 9, 2017, in Daviess Circuit Court, Riney was convicted of burglary in the third degree, possession of a controlled substance in the first degree, methamphetamine, and theft by unlawful taking or disposition, $500 but less than $10,000.
On April 20, 2016, in Daviess Circuit Court, Riney was convicted of theft by unlawful taking of property valued at $500 but less than $10,000 (shoplifting).
On July 1, 2010, in Daviess Circuit Court, Riney was convicted of possession of a firearm by a convicted felon.
On December 19, 2005, in Ohio Circuit Court, Riney was convicted of theft by unlawful taking or disposition.
There is no parole in the federal system.
The case was investigated by the Owensboro Police Department and FBI Owensboro, with assistance from the ATF.
Assistant U.S. Attorney Frank Dahl prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the 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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North Carolina Woman Indicted for Embezzling More Than 500,000 from Farwell Funeral Service in NashuaRead the Press Release
CONCORD – A North Carolina woman was indicted in connection with charges arising out of her embezzlement of funds from her previous employer, Farwell Funeral Service in Nashua, U.S. Attorney Jane E. Young announces.
LaSaundra Simmons, 51, previously of Nashua, was indicted on 10 counts of wire fraud on December 6, 2023. Simmons was arrested in North Carolina on December 11, 2023, and was ordered released on conditions on January 3, 2023.
According to the charging documents, Simmons worked as the bookkeeper for Farwell Funeral Service, Inc. for several years. Starting in 2015, and continuing until it was discovered in January 2023, Simmons employed a scheme to embezzle funds from the company. On more than 100 occasions, she either made unauthorized wire transfers of funds from the funeral home’s bank account to her own account, or drafted unauthorized checks which she deposited by electronic wire transfer into her own account. She would often describe these checks as “commissions” or “consulting fees.” She embezzled more than $500,000 over the course of the scheme.
Each charge of wire fraud provides for a sentence of up to 20 years in prison, and up to 3 years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Federal Bureau of Investigation and the Nashua Police Department led the investigation. Assistant U.S. Attorney Charles L. Rombeau is 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.
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Nevada Owner of Three Mexican Restaurants Sentenced to More Than Three Years in Prison for Tax EvasionRead the Press Release
A Nevada man was sentenced yesterday to 37 months in prison for evading his federal income taxes.
According to court documents and statements made in court, Raul Gil owned and operated three Casa Don Juan restaurants in Las Vegas. From 2014 through 2018, Gil instructed his manager and internal bookkeeper to create false sales numbers for his restaurants that underreported cash sales by approximately $5.1 million. Gil then provided those falsified records to an accountant who unwittingly used them to prepare false business and personal income tax returns for those years.
Then, in July 2018, during an IRS audit, Gil directed his accountant to provide the IRS with profit and loss statements that matched the figures reported on the false tax returns. Gil also directed his manager/bookkeeper to create and provide the IRS with false daily cash and sales reports purportedly printed from the restaurants’ point-of-sale systems. During interviews with the IRS, Gil falsely stated to the revenue agent conducting the audit, and later to IRS special agents conducting a criminal investigation, that the falsified daily cash reports and point-of-sale records were accurate. In total, Gil caused a tax loss to the IRS of approximately $1.6 million.
In addition to the term of imprisonment, U.S. District Judge Andrew P. Gordon for the District of Nevada ordered Gil to serve three years of supervised release and to pay $2,228,943.65 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jason M. Frierson for the District of Nevada made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Thomas Flynn of the Justice Department’s Tax Division and Assistant U.S. Attorney Tony Lopez for the District of Nevada prosecuted the case.
Mississippi Man Sentenced to More Than 12 Years in Prison for a Violent Hobbs Act Robbery and Firearms ViolationsRead the Press Release
ST. PAUL, Minn. – A Mississippi man has been sentenced to 155 months in prison followed by five years of supervised release for a violent Hobbs Act robbery and firearms violations, including possessing a stolen firearm and aiding and abetting false statements during the purchase of a firearm, announced United States Attorney Andrew M. Luger.
According to court documents, Ladarius Jaleel Snipes, 27, and his co-conspirators, Kendarrius Keshaun Willard, 27, and Anna Trameri Novacheck, 28, agreed to illegally acquire firearms through a straw purchasing conspiracy. On November 1, 2021, Snipes, Willard, and Novacheck went to a Federal Firearms Licensee (FFL) to purchase a firearm. At the direction of and with assistance from Snipes and Willard, Novacheck purchased an Alex Pro model Econo 5.56 caliber semiautomatic pistol. During the purchase, Novacheck signed the ATF Form 4473 stating that she was the actual buyer of the firearm when, in fact, she was buying it for Snipes and Willard. Willard has prior felony convictions and is prohibited from possessing firearms or ammunition at any time. Snipes was later photographed holding the firearm with an attached large capacity magazine.
On January 5, 2022, Snipes burglarized a home in St. Paul. A doorbell camera captured Snipes breaking a window and entering the home. While inside, Snipes stole an Aero Precision model X15 multi-caliber semiautomatic pistol. During the burglary, Snipes used a firearm he acquired in the straw purchasing conspiracy to shoot and kill the homeowner’s golden retriever.
On August 7, 2021, Snipes entered a restaurant in Cleveland, Mississippi, armed with a semiautomatic pistol. Snipes showed the firearm and demanded that a store employee give him the money in the cash register. When one of the employees ran to the back of the kitchen, Snipes discharged the firearm to scare the employees. Snipes was charged in the Northern District of Mississippi with Hobbs Act robbery and discharge of a firearm during a crime of violence.
On August 31, 2023, Snipes pleaded guilty to aiding and abetting false statement during the purchase of a firearm, possession of a stolen firearm, Hobbs Act Robbery, and discharge of a firearm during a crime of violence. Snipes was sentenced yesterday in U.S. District Court by Judge Donovan W. Frank.
On May 30, 2023, Willard pleaded guilty to aiding and abetting false statement during the purchase of a firearm and was sentenced to 90 months in prison followed by three years of supervised release. On June 7, 2023, Novacheck pleaded guilty to conspiracy to make false statements during the purchase of a firearm and was sentenced to three years of probation.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Paul Police Department, the Department of Homeland Security, the Minnesota State Patrol, and the Cleveland (Mississippi) Police Department.
Assistant U.S. Attorney Thomas Calhoun-Lopez from the District of Minnesota and Assistant U.S. Attorney Robert Mims from the Northern District of Mississippi prosecuted the case.
Minnesota Man Pleads Guilty to Tax Fraud SchemeRead the Press Release
A Minnesota man pleaded guilty today to wire fraud and assisting in the preparation of a false income tax return.
According to court documents and statements made in court, from 2012 to 2018, Beau Wesley Gensmer, of Prior Lake, devised a scheme to assist in the preparation of at least 50 false tax returns that claimed fraudulently inflated tax refunds on behalf of unwitting taxpayer clients. In furtherance of his scheme, Gensmer hired a tax return preparer in Anchorage, Alaska, to whom he emailed knowingly false information, including fraudulent business losses and charitable contributions, for each return she prepared.
The return preparer relied on the information she received from Gensmer to prepare and electronically file false returns for each of his clients. Gensmer charged his clients a commission of approximately 30% of each fraudulent refund. In total, Gensmer caused a tax loss to the IRS of at least $3.5 million.
Gensmer is scheduled to be sentenced on May 7 and faces a maximum penalty of 20 years in prison for wire fraud and three years in prison for assisting in the preparation of a false tax return. He also faces a period of supervised release, restitution and monetary penalties. U.S. District Judge John R. Tunheim for the District of Minnesota will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Andrew M. Luger for the District of Minnesota made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Ahmed Almudallal and Dominick Giovanniello of the Justice Department’s Tax Division are prosecuting the case.
Middletown man pleads guilty to possessing firearm as part of drug traffickingRead the Press Release
CINCINNATI – Christopher Lawrence Spicer, 23, of Middletown, pleaded guilty in U.S. District Court today to possessing a firearm in furtherance of a drug trafficking crime. Spicer led local officers on a high-speed chase in spring 2023 before being arrested.
According to court documents, on March 16, 2023, Spicer was approached by law enforcement while driving a stolen Ford F-150 in a Middletown business parking lot. Spicer backed into a police cruiser and fled throughout Middletown at speeds exceeding 90 miles per hour. While fleeing, Spicer ran a red light at the intersection of Roosevelt Boulevard and Jackson Lane. Spicer collided with another vehicle, rendering his own vehicle disabled. He was arrested at that time.
When officer’s searched Spicer’s truck, they discovered a loaded Romarm/Cugir Micro Draco 7.62x39mm pistol and more than 200 fentanyl pills.
The parties involved in Spicer’s case have recommended a sentence of 60 months in prison. The Court will consider that recommendation at a future sentencing hearing.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Middletown Police Chief David Birk announced the guilty plea entered today before U.S. District Judge Douglas R. Cole. Assistant United States Attorney Ryan A. Keefe is representing the United States in this case.
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Mexican National Charged with Illegal ReentryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Pedro Millan-Montero, age 36, of Mexico, was indicted on January 3, 2024, by a federal grand jury for illegal reentry into the United States by a previously deported alien.
According to United States Attorney Gerard M. Karam, the indictment alleges that Millan-Montero was previously removed from the United States on June 15, 2012, through Hidalgo, Texas, and it is alleged that he was subsequently found in the United States without having first obtained legal permission to reenter the country. The indictment also alleges that on December 14, 2023, Millan-Montero was encountered in Lebanon County, Pennsylvania.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Michael Scalera is prosecuting the case.
The maximum penalty under federal law for this offense is ten years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Louisville Woman Sentenced to 10 Years for Trafficking a Fentanyl AnalogueRead the Press Release
COVINGTON, Ky. – A Louisville woman, Autumn Leslie Childress 42, was sentenced on Friday, to 10 years in federal prison, by U.S. District Judge David Bunning, for possession of 100 grams or more of a fentanyl analogue with intent to distribute.
According to her plea agreement, law enforcement received information that Childress would be transporting controlled substances from South Carolina to Louisville, and then to Cincinnati to distribute. On November 16, 2022, law enforcement stopped Childress in Boone County and located over a kilogram of a fentanyl analogue divided into multiple packages prepared for distribution. A subsequent search of her residence uncovered additional drugs and drug trafficking paraphernalia. In all, she possessed more than 1.5 kilograms of illegal drugs.
Under federal law, Childress must serve 85 percent of her prison sentence. Upon her release from prison, she will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; and J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; jointly announced the sentence.
The investigation was conducted by the DEA. Assistant U.S. Attorney Tony Bracke is prosecuting the case on behalf of the United States.
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Long Island Construction Company Pleads Guilty to Worker Safety Violation Causing Death of an EmployeeRead the Press Release
Northridge Construction Corporation pleaded guilty to criminal charges today in federal court in Central Islip, New York. A sentencing hearing is scheduled for April 3.
The three-count information alleges that, in 2018, during the construction of a shed on Northridge’s property in East Patchogue, New York, one of its employees fell from an improperly secured roof and died. The Occupational Safety and Health Administration (OSHA) investigated the employee’s death.
Among other worker safety standards, OSHA regulations require always maintaining the stability of a metal structure during construction. Northridge pleaded guilty to violating this worker safety standard which caused the death of one of its employees and to making two false statements that obstructed the federal agency’s inquiry into the employee’s death.
The maximum penalty for each of the criminal offenses is five years’ probation and a $500,000 fine, or twice the economic gain to the defendant or loss suffered by the victim because of the crime.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD) made the announcement.
Senior Trial Attorneys Daniel Dooher and Richard J. Powers and Trial Attorney Rachel Roberts of ENRD’s Environmental Crimes Section are prosecuting the case.
Lodge Grass man admits meth trafficking charge in large-scale drug conspiracy based on Crow Indian ReservationRead the Press Release
BILLINGS — A Lodge Grass man suspected of participating in a large-scale drug conspiracy based on the Crow Indian Reservation admitted on Jan. 4 to a methamphetamine trafficking crime, U.S. Attorney Jesse Laslovich said today.
Daniel Jiminez-Chavez, aka Raton, 40, pleaded guilty to possession with intent to distribute meth. Jiminez-Chavez faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for May 1. Jiminez-Chavez was detained pending further proceedings.
The government alleged in court documents that federal law enforcement, in a collaborative effort with local and tribal law enforcement, conducted a large-scale, narcotics trafficking investigation centered on multiple properties on the Crow Indian Reservation. The properties, including one referred to as Spear Siding, were a source of supply of meth for both the Crow and Northern Cheyenne Indian Reservations from about January 2022 through March 2023. Jiminez-Chavez, aka Raton, is one of the individuals associated with the investigation.
The government alleged that Jiminez-Chavez began staying at a house near Spear Siding, known as the Bloodman residence. While at the residence, Jiminez-Chavez distributed meth to others and was in contact with individuals in the conspiracy.
The U.S. Attorney’s Office is prosecuting the case. The Bureau of Indian Affairs, Drug Enforcement Administration and FBI conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Kissimmee Real Estate Broker Pleads Guilty to Committing Bank FraudRead the Press Release
Orlando, FL –United States Attorney Roger B. Handberg announces that Maria Del Carmen Montes (46, Kissimmee) has pleaded guilty to three counts of bank fraud. Each bank fraud count carries a maximum penalty of 30 years in federal prison. Montes was indicted, along with coconspirator Carlos Ferrer, on July 20, 2022.
According to the plea agreement, Montes, coconspirator Ferrer, and others created and executed a mortgage fraud scheme targeting financial institutions. Montes assisted clients with purchasing homes and after signing the real estate contract, referred her buyers to a loan officer at a mortgage company. In order to qualify her clients for mortgages loans for which they were unqualified, Montes transferred the personally identifying and financial information of her clients to Ferrer and directed Ferrer to create fictitious paystubs and W-2s showing false earnings and length of employment for her clients knowing that her clients never worked for the companies on the fictitious employment documents. After Ferrer created the documents, Montes submitted the fictitious paystubs and W-2s to the financial institutions who relied on them when making underwriting decisions.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General, the U.S. Department of Housing and Urban Development – Office of Inspector General, and the Federal Bureau of Investigation. It is being prosecuted by Special Assistant United States Attorney Chris Poor.
Kennewick Man and Woman Sentenced to Decades in Federal Prison for Child AbuseRead the Press Release
Richland, Washington – On January 4, 2023, United States District Judge Mary K. Dimke sentenced Bret Michael Emineth, age 41, to 30 years in federal prison for engaging in years-long sexual abuse of a minor victim and recording images depicting the abuse. The Court also sentenced Emineth’s codefendant, Malesa Hale, age 37, to 28 years in federal prison for conspiring with Emineth to abuse the victim and record the abuse. Judge Dimke also ordered both Emineth and Hale to pay restitution to the victim, and imposed a lifetime of federal supervision on both defendants upon their release from custody. Emineth and Hale are each from the Tri-Cities. Emineth, who began abusing the minor victim when the minor was only 12 years old, will also plead guilty to related charges in Benton County Superior Court.
“I simply cannot convey how horrendousness this behavior is,” Judge Dimke said from the bench, recognizing that Emineth and Hale had inflicted “harm that will last for a lifetime.” Directly addressing the victim, Judge Dimke said: “You are brave. You are strong. You are courageous. You saved others from the hell that you were subjected to,” by reporting to law enforcement. Judge Dimke specifically told the victim that if the victim had not come forward, there was no doubt that Emineth and Hale would have expanded their abuse to other children.
According to court documents and proceedings, in June 2021 the victim reported to the Kennewick Police Department that Emineth had repeatedly sexually and physically abused the victim for approximately 4 years. The victim told detectives that the abuse had started with grooming and touching, and progressed to sexual intercourse. In 2019, Emineth’s then-girlfriend, Hale, became suspicious of Emineth’s relationship with the victim. When Hale confronted Emineth, he told her that he was abusing the victim. Instead of reporting the abuse to law enforcement, Hale expressed interest and joined Emineth in sexually abusing the victim.
KPD detectives found explicit text messages between Emineth and Hale discussing their sexual abuse of the victim and their plans for future sexual abuse of the victim and other children. The messages also included photos of the victim being abused, many of which Emineth had taken at Hale’s direction and sent to Hale. KPD detectives then worked closely with Homeland Security Investigations (“HSI”) and the Southeast Regional Internet Crimes Against Children Task Force (“ICAC”) to perform full forensic examinations of the defendant’s cell phones, which revealed the extent of Emineth and Hale’s abusive conduct.
“Emineth and Hale’s child abuse was egregious, and today’s significant sentences recognize the horrors that the victim endured. But no sentence can return a child’s innocence,” said United States Attorney Vanessa R. Waldref. “All children deserve to live free from those who seek to exploit them. The U.S. Attorney’s Office will continue to prioritize offenses against our community’s youngest and most vulnerable victims. Today’s hearing sent one clear message to the victim, which is shared by each of the detectives, agents, and prosecutors who worked with you: we believe you.”
"This sentence is a testament to the resilience and confidence in law enforcement exhibited by the victim in this case," stated Special Agent in Charge (SAC) Robert Hammer, responsible for overseeing HSI operations in the Pacific Northwest. "The era of victimization has ended for this child, and HSI, along with our law enforcement collaborators, will tirelessly strive to prevent such exploitation from befalling anyone else."
“We express our gratitude to the detectives, witnesses, and the courageous child survivor for putting a stop to these horrific acts," stated Kennewick Police Chief Chris Guerrero. "We also extend our appreciation to the US Attorney’s Office and Homeland Security Investigations for collaborating with us to ensure accountability for those who victimize our children."
"The collaborative partnership of the SER-ICAC Task Force, which unites our law enforcement counterparts from Richland PD, Kennewick PD, and Homeland Security Investigations (HSI), in conjunction with the concerted efforts of the Benton County Prosecutor’s Office and the United States Attorney’s Office, has proven instrumental again in securing a successful plea deal with a substantial sentence," stated Commander Damon Jansen, Investigations Division with the Richland Police Department." Outcomes like this, marked by their severity, contribute significantly to the administration of justice for the children within our community who have endured egregious abuse yet have emerged as survivors."
This case was investigated by the Kennewick Police Department (“KPD”), Homeland Security Investigations (“HSI”), and the Southeast Regional Internet Crimes Against Children Task Force (“ICAC”). The federal case was prosecuted by Assistant United States Attorneys Laurel Holland and David Herzog, and the state case was prosecuted by Deputy Prosecuting Attorney Anita Petra of the Benton County Prosecutor’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Justice Department’s Collaborative Reform Initiative Technical Assistance Center Reaches 1,000 Technical Assistance Engagements with Local Law Enforcement AgenciesRead the Press Release
The Justice Department today announced that the Collaborative Reform Initiative Technical Assistance Center (CRI-TAC), which provides a wide array of technical assistance services for the law enforcement field, has achieved a major milestone in providing more than 1,000 technical assistance engagements to state, local, tribal, and territorial law enforcement agencies across the country.
Developed by the Justice Department’s Office of Community Oriented Policing Services (COPS Office), the Collaborative Reform Initiative helps law enforcement agencies and the communities they serve identify and implement organizational improvements and reforms through training, consultation, peer-based learning, analysis, and in-depth assessments. The Initiative is structured as a continuum of services offered to law enforcement agencies on a strictly voluntary basis. CRI-TAC, one of three programs under the broader Collaborative Reform Initiative, provides critical, tailored technical assistance resources to state, local, tribal, territorial and campus law enforcement agencies on a wide variety of topics.
“The CRI-TAC Initiative has been a key component of the expanded Collaborative Reform Initiative relaunched almost two years ago," said Associate Attorney General Vanita Gupta. "The response we’ve seen – now over 1000 engagements on everything from de-escalation training to officer wellness and countless other topics – speaks to the demand for, and utility of, this form of technical assistance provided ‘by the field, for the field.’ The Justice Department is grateful for the extensive engagement and partnerships with law enforcement and community groups as we continue to enhance and expand our technical assistance offerings to support public safety and police-community trust.”
The Attorney General and the Associate Attorney General announced the expansion of the Collaborative Reform in March of 2022.
Some of the areas of technical assistance requested most by agencies include de-escalation techniques, active threat response, public sector coordination and partnerships, school and campus safety, and officer safety and wellness. Specific topics have included the following:
- Using a public health approach to address violent crime
- Strengthening proactive youth engagement within a transit agency
- Improving safety and wellness programming throughout an officer’s career
- Using the internal discipline process for enhanced accountability
The types of technical assistance most requested are training and resource referrals; virtual and on-site consultations are the next most frequent forms of technical assistance delivered. Other forms of technical assistance included policy reviews and in-depth briefings from subject matter experts.
In the evaluations submitted following their engagements, agencies uniformly praised all aspects of the program – from the delivery of services and the subject matter experts provided, to the quality of the information received, to the gains in their level of knowledge and the ability to make positive changes in their agencies based on the training and technical assistance received.
“This is a big milestone for the COPS Office’s technical assistance efforts, and I am extremely grateful that so many law enforcement agencies across the country have been able to get the help they need through the Collaborative Reform Initiative,” said Director Hugh T. Clements, Jr. of the COPS Office. “When law enforcement agencies reach out for help, communities are the ultimate beneficiaries. We look forward to building on this success by helping many more agencies in the months and years ahead.”
Through CRI-TAC, the COPS Office partners with the International Association of Chiefs of Police (IACP) and eight other leading law enforcement organizations to deliver tailored technical assistance that meets the needs of law enforcement agencies in a “by the field, for the field” approach. Partner agencies include:
- FBI National Academy Associates
- Fraternal Order of Police
- International Association of Campus Law Enforcement Administrators
- International Association of Directors of Law Enforcement Standards and Training
- National Association of Women Law Enforcement Executives
- National Organization of Black Law Enforcement Executives
- National Sheriffs’ Association
- National Tactical Officers Association
Applications to request assistance from CRI-TAC are accepted on a rolling basis, and the technical assistance is delivered at no cost to the agency. Agencies interested in requesting collaborative reform technical assistance can learn more at www.cops.usdoj.gov/collaborativereform.
The COPS Office is the federal component of the Justice Department responsible for advancing community policing nationwide. The only Justice Department agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has been appropriated more than $20 billion to advance community policing, including grants awarded to more than 13,000 state, local, territorial, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 138,000 officers.
Justice Department Marks More Than 500 Illegal Firearm Purchases Stopped by New Enhanced Background ChecksRead the Press Release
On June 25, 2022, President Biden signed the Bipartisan Safer Communities Act (BSCA) into law. Among other provisions aimed at reducing gun violence, BSCA requires the FBI’s National Instant Criminal Background Check System (NICS) to conduct an enhanced background check before any sale or transfer of a firearm to a person under the age of 21 (U21). In addition to the traditional records databases reviewed during a standard background check, these U21 checks involve expanded outreach by the FBI’s NICS Section to state and local officials who may have access to additional disqualifying information.
Since implementing BSCA’s enhanced background checks in October 2022, the FBI NICS Section has conducted enhanced background checks on more than 200,000 transactions. Those checks have kept more than 1,900 firearms out of the hands of dangerous and prohibited persons, and over a quarter of those denials — 527 as of the first week of January — were based solely on information received through the additional BSCA-enabled outreach. Without the enhanced outreach required by BSCA, these 527 U21 transactions would likely have proceeded because the disqualifying information was otherwise unavailable to NICS.
“In the 19 months since the passage of the Bipartisan Safer Communities Act, the law’s expanded background checks have already kept 500 firearms out of the hands of young people who are prohibited from having them,” said Attorney General Merrick B. Garland. “The Justice Department will continue to bring to bear every tool we have to combat the gun violence that plagues our communities.”
The 500th BSCA-specific U21 denial — which was recorded on Dec. 18, 2023 — involved a prospective purchaser whose transaction was denied after a state police officer provided records, otherwise not available to NICS, that showed the prospective purchaser to be an unlawful user of, or addicted to, a controlled substance. Other exemplary U21 denials include:
- A sheriff’s office responded to the NICS Section with an incident report implicating the U21 purchaser in a rape offense. The NICS Section obtained court documentation establishing that the purchaser was convicted of felony rape. The transaction was denied based on the federal prohibitor for persons convicted of a crime punishable by more than one year.
- A sheriff’s office responded to the NICS Section with an incident report indicating that the U21 purchaser had been arrested for attempted murder and other offenses. The NICS Section obtained court documentation showing that the U21 purchaser was released on bond with court-ordered firearm restrictions pending the resolution of those charges. The transaction was denied based on a state prohibitor for active court-ordered firearm restrictions.
- During BSCA-mandated outreach, a juvenile court provided documentation establishing that a U21 purchaser was found to be mentally ill and involuntarily committed for mental-health treatment. The transaction was denied based on the federal firearm prohibitor relating to mental-health adjudications.
- A police department informed the NICS Section that the U21 purchaser was under felony indictment for sexually exploiting a minor. The transaction was denied based on the federal firearm prohibitor for persons under active felony indictment.
- During BSCA-mandated outreach, a county court provided the NICS Section with documentation that the U21 purchaser had sustained juvenile adjudications for sexual battery, possession of a knife at school, and intimidation. The transaction was denied based on a state prohibitor for disqualifying juvenile adjudications.
- A sheriff’s office informed the NICS Section that a U21 purchaser was currently in jail on multiple pending charges, including domestic violence, robbery, and assault with a dangerous weapon. The transaction was denied based on the federal firearm prohibitor for persons under active felony indictment.
- A police department provided the NICS Section with an incident report for a U21 purchaser who was making suicidal threats and transported for emergency detention at a local in-patient psychiatric center. The transaction was denied based on the federal firearm prohibitor relating to mental-health adjudications.
The FBI continues to engage in extensive education and outreach efforts to improve the state and local partnerships necessary to the success of these enhanced background checks, including by hosting trainings for over 500 law-enforcement agencies and more than 2,000 state criminal-justice officials.
Jackson Man Pleads Guilty to Conspiring to Defraud Vehicle Sellers on Facebook MarketplaceRead the Press Release
Jackson, MS – A Jackson man pled guilty to conspiracy to commit wire fraud through Facebook Marketplace.
According to court records, Jerrick Floyd, 24, conspired with others to organize a scheme to defraud individuals selling vehicles on Facebook Marketplace. The victim would receive a fake cashier’s check or wire transfer to their bank and Floyd would arrange for an accomplice to pick up the vehicle before the victim discovered they had been deceived.
Floyd will be sentenced on April 3, 2024. He faces up to twenty years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Acting Special Agent in Charge Jessica Orench of the Federal Bureau of Investigation made the announcement.
The case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Lynn Murray is prosecuting the case.
Home Healthcare Company Agrees to Pay Nearly $10 Million to Resolve False Claims Act Allegations Relating to Its Participation in the Energy Employees Occupational Illness Compensation ProgramRead the Press Release
Atlantic Home Health Care LLC (AHH), a home health care agency operating in Arizona and eight other states, has agreed to pay $9,990,944 to resolve allegations that it violated the False Claims Act by submitting false claims to the Energy Employees Occupational Illness Compensation Program (EEOICP or the Energy Program), a healthcare program administered by the Department of Labor (DOL) for the benefit of Department of Energy employees and contractors with occupational illnesses. The settlement is based on AHH’s financial condition.
The United States alleged that, between 2017 and 2021, AHH falsely billed the Energy Program for in-home nursing and personal care when its employees were not physically present in patients’ homes. The government also alleged that AHH paid kickbacks, in the form of cash payments up to $5,000 for patient referrals via its “friends and family program” and in-kind payments for food, internet, travel and other expenses made to patients and their families. The Anti-Kickback Statute prohibits parties who participate in federal healthcare programs, such as the Energy Program, from knowingly and willfully paying or receiving any remuneration in return for referring an individual to, or arranging for the furnishing of, any item or services for which payment is made by, the federal healthcare programs. Prior to the United States’ disclosure to AHH of its investigation, AHH made a voluntary disclosure to the Department of Health and Human Services Office of Inspector General (DHS-OIG) concerning the company’s “friends and family” program and in-kind remuneration to patients and their families. In the settlement agreement, the United States acknowledged AHH’s cooperation in this regard.
“The department is committed to protecting the integrity of the Energy Employees Occupational Illness Compensation Program, a vitally important program that addresses the medical needs of vulnerable individuals who sustained injuries or illnesses while performing their official duties for the Department of Energy,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We are dedicated to ensuring that program beneficiaries receive proper care and that taxpayer dollars are protected from waste, fraud and abuse.”
“Quality care is critical to beneficiaries participating in the Energy Employees Occupational Illness Compensation Program,” said U.S. Attorney Gary M. Restaino for the District of Arizona. “The payment of cash kickbacks to induce referrals has no place in our healthcare system. False Claims Act enforcement protects the integrity of federal healthcare programs.”
“The Office of Workers’ Compensation Programs (OWCP), which oversees the Energy Program within the Department of Labor, wishes to thank all involved in attaining this settlement,” said OWCP Director Christopher J. Godfrey. “With our committed partners at the Justice Department and within DOL’s Office of the Inspector General, we believe that we can continue to hold medical providers accountable for their actions when they take advantage of our claimants and program. That accountability will reduce future fraud, waste and abuse by other providers.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Tonya Cass, who was formerly employed as the Corporate Administrator and Director of Human Resource Administration and Management by AHH and its predecessor, Victory Medical Solutions, from September 2017 through January 2020. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Cass v. Atlantic Home Health Care LLC, et al., No. CV-20-00202-TUC-AMM (D. Az.). As a part of the resolution with AHH, Cass will receive approximately $1.7 million.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Arizona.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The matter was handled by Trial Attorney Allie Pang of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Anne Nelson for the District of Arizona, with the assistance of U.S. Attorney’s Office Auditor Connie Mudd, Civil Division Auditor John Ounsted and Financial Analyst Sheryl Paynter.
The claims resolved by the settlement are allegations only\, and there has been no determination of liability.
SettlementHartford Man Charged with Making Threats to West Haven VA Facility, Members of Congress, Other Federal EmployeesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut today announced that AUBREY WAYNE ROSE, JR., 43, of Hartford, was arrested yesterday on a federal criminal complaint charging him with making threats against the Veterans Affairs (VA) Medical Center in West Haven, certain U.S. members of Congress, and other federal employees.
Rose appeared before U.S. Magistrate Judge Thomas O. Farrish in Hartford and was detained until a hearing scheduled for January 8.
As alleged in court documents, on March 7, 2023, Rose sent a threatening email to the Defense Finance Accounting Service, which is the U.S. Department of Defense agency that, among other things, maintains and pays military retirees their monthly retirement and disability benefits and Combat Related Special Compensation. He also sent the email to the offices of four members of the United States Congress. In the email, he asked for a formal appeal of his military pay and stated, “If not[,] the 2d Amendment is in our Constitution for a reason. . . . ONE WAY OR ANOTHER. I PICKED UP A RIFLE TO PROTECT THIS COUNTRY BEFORE. I WILL MAKE SURE I PICK IT UP FOR MYSELF. IM TIRED OF GAMES YALL CAN FIX IT OR NOT. MY DECISION HAS BEEN MADE[.]”
In addition, according to court documents, on the morning of December 20, 2023, Rose entered the VA Medical Facility in West Haven wearing a tactical vest and carrying a bullhorn. As VA police officers followed him, he stated, “Next time I come back, I’m bringing a weapon.” Later that morning, Rose went to the Federal Bureau of Investigation’s New Haven office and told an agent that if he did not get assistance from the VA, he would have “to go back to the VA with a firearm.”
Court documents also describe other instances of threatening behavior. On May 30, 2023, Rose sent an email to several individuals, including an employee of the Connecticut Superior Court. The email contained a draft of another email he was planning to send to an unnamed member of Congress stating, “Your continued refusal to acknowledge fact and ignore me will leave me with no other choice but use my 2nd Amend Rights to force this GOVT to do the right thing. . . . Your continued non compliance will only solidify my decision and force me to act with the only decision that yourself and other govt agencies have left. To force you comply or be killed in the process.” Then on June 5, 2023, Rose attempted to gain access to the Connecticut office of a Member of the United States Congress. He was wearing a tactical vest on his chest and what appeared to be two knives strapped to the back of the tactical vest. Office staff was able lock the door before he entered. He returned later that afternoon, stood outside the office, and yelled through the intercom in a threatening manner.
The complaint charges Rose with making threats against federal officials, an offense that carries a maximum term of imprisonment of 10 years.
U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, the Department of Homeland Security’s Federal Protective Service, the Department of Veterans Affairs, Office of the Inspector General, Northeast Field Office, and the Department of Veterans Affairs Police. The case is being prosecuted by Assistant U.S. Attorneys Neeraj N. Patel and Sean P. Mahard.
Gulfport Man Pleads Guilty to Possession with Intent to Distribute over 81 Grams of FentanylRead the Press Release
Gulfport, MS – A Gulfport man pled guilty to possession with intent to distribute over 81 grams of fentanyl.
According to court documents, on April 21, 2023, the Harrison County Sheriff’s Office conducted a search warrant on the residence of Ashton Craig Cuevas, 19, in Gulfport. The search took place the day after agents conducted a controlled purchase of fentanyl pills from Cuevas. The search of Cueva’s home yielded 81.1 grams of fentanyl, as well as the pre-recorded buy money from the controlled purchase.
Cuevas is scheduled to be sentenced on April 16, 2024, and faces a mandatory minimum of five years and a maximum of forty years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
According to the U.S. Drug Enforcement Administration, fentanyl is approximately 100 times more potent than morphine and 50 times more potent than heroin. The DEA reports that two milligrams of fentanyl can be lethal, and one kilogram of fentanyl has the potential to kill 500,000 people. More facts on fentanyl can be found at https://www.dea.gov/resources/facts-about-fentanyl and https://www.dea.gov/resources/facts-about-fentanyl.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration made the announcement.
The case was investigated by the Drug Enforcement Administration and the Harrison County Sheriff’s Office.
Assistant U.S. Attorney Erica Rose is prosecuting the case.
Greenville Woman Pleads Guilty in Federal Court to Sex Trafficking ConspiracyRead the Press Release
COLUMBIA, S.C. — Brittany Danielle Cromer, 34, of Greenville, has pleaded guilty to Human Trafficking Conspiracy in federal court in Columbia.
According to evidence presented in court, from at least March through Nov. 2022, Cromer worked together with co-defendant Eric Rashun Jones, 31, of Newberry, to exploit women in the commercial sex trade by force, fraud, and coercion. Jones was convicted of Human Trafficking Conspiracy, Witness Tampering, and Felon in Possession of a Firearm in June 2023 and is awaiting sentencing.
Jones led the conspiracy by recruiting vulnerable victims, including victims of domestic violence and those who were dependent on drugs. He prostituted victims for his financial gain, confiscating between 60% and 100% of the proceeds. He did so by physical violence: Jones broke one victim’s orbital socket and burst her ear drum; he hit another victim regularly with a closed fist. Videos recovered by the FBI showed Jones directing the physical assault of women who worked for him. He did so by sexual violence, including by forcing women into sex acts. He did so by fraud related to the promised division of proceeds. And he did so by coercion, including by manipulating victims’ drug addictions and withdrawal symptoms.
Cromer knew that Jones was a fugitive, that he was the member of a documented street gang, that he had no legitimate job, that he prostituted women, and that he confiscated their proceeds. She also knew that he used physical violence, including by assaulting women if they did not work, by directing victims to assault other victims, and by assaulting one victim for not working in commercial sex after having a child. She also knew victims felt like they had no option but to stay with Jones. She knew how photographs were taken and advertisements were posted, how money was transferred from customers to the conspiracy, how proceeds were divided, and how the conspiracy responded to customers.
Cromer facilitated the conspiracy and helped Jones, including by setting up a CashApp account used to confiscate proceeds and registering it to her personal e-mail address and phone number. She monitored victims, particularly while Jones was in custody, and the conspiracy continued to exploit victims. Recorded jail calls show she coordinated with victims and Jones as for when victims would work for the conspiracy. Victims told the FBI that they were afraid of Cromer and that Jones used Cromer to monitor their activity and report back to Jones what she saw.
“This case demonstrates the power that traffickers have over their victims’ lives, controlling their communication, money and freedom,” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “Our office will continue to prosecute trafficking in all its forms and support survivors in their healing journey. We look forward to a just sentence for Cromer and Jones.”
Cromer faces a maximum penalty of life in prison. She also faces a fine of up to $250,000 and lifetime supervision to follow a term of imprisonment. Pursuant to a plea agreement, Cromer agreed to pay victims restitution.
United States District Judge Sherri A. Lydon accepted the guilty plea and will sentence Cromer after receiving and reviewing a sentencing report prepared 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 Columbia Field Office, Greenville Police Department, Newberry County Sheriff’s Office, Lexington County Sheriff’s Department, Simpsonville Police Department, and Anderson County Sheriff’s Office. Assistant U.S. Attorneys Elliott B. Daniels and Elle E. Klein are prosecuting the case.
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Franklin Man Sentenced to Two Years in Federal Prison for 3-D Printing and Trafficking Firearms and Glock SwitchesRead the Press Release
INDIANAPOLIS- Alexander Clark, 28, of Franklin, Indiana, has been sentenced to two years in federal prison after pleading guilty to making a firearm in violation of the National Firearms Act, possession of an unregistered firearm, and possession of a machinegun.
According to court documents, the Bureau of Alcohol, Tobacco, Firearms and Explosives began to investigate Alexander Clark based on occasions in which he sold privately made firearms. Over a one-month period, Clark was observed selling five Glock style pistols that were made with use of a 3-D printer for the frames, a 3-D printed AR-15 rifle lower receiver, and two machinegun conversion devices.
Machinegun conversion devices, sometimes called “Glock switches” or “auto-sears” are devices that convert ordinary semiautomatic firearms into fully automatic machineguns. Machinegun conversion devices are themselves considered machineguns under federal law, even when not installed, and are illegal to possess or sell in almost all cases.
On August 22., 2022, ATF agents searched Clark’s home and located multiple firearms, machineguns, silencers, firearm accessories, and a 3-D printer with other electronic devices in aid of 3-D printing.
In total, Clark possessed seven machineguns, 27 machinegun conversion devices and seven silencers, none of which were legally registered.
“Machinegun conversion devices are an urgent public safety challenge—an ordinary pistol equipped with a conversion device and an extended magazine can fire 31 rounds in just two seconds,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Criminals like this defendant exploit modern technology to illegally manufacture deadly weapons and illegally arm others, including felons and juveniles. The serious federal prison sentence imposed here demonstrates that our office is committed to making our communities safer by getting these devices off our streets and holding illegal gun traffickers accountable.”
“Machine gun conversion devices, which convert semi-automatic firearms into fully automatic weapons, are one of the most serious challenges facing ATF and our law enforcement partners at the moment,” stated Daryl S. McCormick, Special Agent in Charge of ATF’s Columbus Field Division. “These conversion devices increase the lethality of a firearm, while also reducing the ability of the person firing the weapon to control where they shoot. This combination is deadly and random and represents a clear threat to our community. We will work with our partners to remove these devices, and those who are manufacturing and selling them, from our streets.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case. The sentence was imposed by Chief U.S. District Judge Tanya Walton Pratt. Chief Judge Pratt also ordered that Clark be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Jayson W. McGrath, who prosecuted this case.
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Former Pharmaceutical Executive and Doctor Sentenced for Insider Trading Around Alexion Pharmaceuticals’ Acquisition of Portola PharmaceuticalsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that JOSEPH DUPONT and SLAVA KAPLAN, a/k/a “Stanley Kaplan,” were sentenced to three years’ probation and five months in prison, respectively, for securities fraud in connection with their participation in an insider trading scheme surrounding the announcement of Alexion Pharmaceutical, Inc.’s acquisition of Portola Pharmaceuticals, Inc. DUPONT and KAPLAN were arrested June 2023 and pled guilty before U.S. District Judge Gregory H. Woods in September 2023.
U.S. Attorney Damian Williams said: “This Office continues to keep a watchful eye over Wall Street, and we will work quickly to prosecute those who choose to cheat to make a quick buck. These sentences reflect our commitment to ensuring fairness in the stock market and combatting corruption.”
According to the allegations in the Indictment and statements made in public court proceedings:
In 2020, DUPONT, KAPLAN, and others engaged in an insider trading scheme surrounding the announcement of Alexion’s acquisition of Portola. DUPONT was a vice president at Alexion and, on January 31, 2020, was informed of Alexion’s upcoming acquisition of Portola. Before that acquisition was publicly announced, in April 2020, DUPONT provided material, non-public information (“MNPI”) that he misappropriated from Alexion about the acquisition to a friend so that the friend could use the information to trade profitably in securities.
In turn, DUPONT’s friend provided KAPLAN, who was also known to DUPONT, the MNPI about Portola’s pending acquisition, both so that KAPLAN could trade in advance of the acquisition and so that KAPLAN would assist DUPONT’s friend in formulating trading strategies to maximize DUPONT’s friend’s own trading profits. KAPLAN further shared MNPI about the upcoming acquisition with a family member and a friend and colleague. After Alexion’s acquisition of Portola was publicly announced on the morning of May 5, 2020, causing Portola’s stock price to increase significantly, KAPLAN and others who had purchased shares and options based on DUPONT’s inside information sold their shares of Portola and call options for Portola stock, reaping millions of dollars of illegally obtained trading profits.
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Additionally, JOSEPH DUPONT, 45, of Rehoboth, Massachusetts, was fined $75,000. SLAVA KAPLAN, 45, of Hopewell Junction, New York, was sentenced to three years of supervised release and was ordered to forfeit $472,053.61.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. Mr. Williams also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Margaret Graham, Sarah Mortazavi, and Samuel P. Rothschild are in charge of the prosecution.
Former Metropolitan Correctional Center Inmates Found Guilty at Trial for Bribery and Prison Contraband SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ANTHONY ELLISON and STARLIN NUNEZ, two former inmates of the Metropolitan Correctional Center (“MCC”), a federal jail, were found guilty today in Manhattan federal court for perpetrating wide-ranging bribery and prison contraband conspiracies with other inmates and MCC employees at the jail. Six additional former MCC inmates and three former MCC employees previously pled guilty in this case. NUNEZ will be sentenced by U.S. District Judge Andrew L. Carter, Jr., on June 6, 2024, and ELLISON will be sentenced by Judge Carter on July 9, 2024.
U.S. Attorney Damian Williams said: “Our federal detention centers are entrusted to provide care, custody, and order over inmates. Anthony Ellison, Starlin Nunez, and their co-conspirators undermined the MCC’s mission through wide-ranging schemes of bribery and distribution of dangerous contraband, including drugs and cellphones. Today’s unanimous verdict convicting Ellison and Nunez, and the convictions of their co-conspirators through guilty pleas, demonstrates that correctional officers and inmates who corrupt our detention centers will be held accountable.”
According to the Indictment, public court filings and proceedings, and the evidence presented at trial:
NUNEZ, a/k/a “Chino,” and ELLISON, a/k/a/ “Harv,” were both inmates at the MCC and perpetrated with other inmates and MCC guards an extensive bribery and contraband distribution scheme within the jail between approximately 2018 and 2021. During the course of the conspiracy, between approximately 2019 and 2020, at least 10 MCC inmates, including NUNEZ and ELLISON, paid nearly $80,000 in bribes to Perry Joyner, a corrupt MCC correctional officer. The inmates paid the bribes through friends and relatives outside the jail, who used money transfer applications such as CashApp to transfer money to associates of Joyner. The associates then provided the bribes to Joyner himself. In exchange for those bribes, Joyner smuggled large amounts of contraband into the MCC. That contraband included drugs (such as oxycodone, alprazolam, Suboxone, marijuana, and synthetic cannabinoids, commonly known as “K2”), dozens of cellphones, and cartons of cigarettes, among other contraband. MCC inmates, including NUNEZ and ELLISON, then sold much of that contraband to other inmates at a profit as part of a widespread illicit market within the MCC. For example, ELLISON charged other inmates as much as $100 for a single cigarette and as much as $5,000 for a used iPhone.
In approximately early 2020, Joyner left the MCC, and the jail initiated a series of lockdowns, first to search for contraband and then in response to the COVID-19 pandemic. As a result of those lockdowns and Joyner’s departure, the contraband market in the MCC dried up until ELLISON found a new source of contraband. In particular, between approximately 2020 and 2021, ELLISON conspired and had a sexual relationship with another corrupt MCC employee, Sharon Griffith-McKnight, who provided contraband to ELLISON, most of which he then re-sold to other inmates.
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ELLISON, 36, from Brooklyn, New York, was convicted of one count of conspiring to commit honest services wire fraud, which carries a maximum sentence of 20 years in prison, and one count of conspiring to possess and provide prison contraband, including marijuana and other controlled substances, which carries a maximum sentence of five years in prison.
NUNEZ, 47, originally from the Dominican Republic, was convicted of one count of conspiring to commit honest services wire fraud, which carries a maximum sentence of 20 years in prison, and one count of conspiring to possess and provide prison contraband, including cellphones, which carries a maximum sentence of one year in prison.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation, the Department of Justice’s Office of the Inspector General, the Special Agents from the U.S. Attorney’s Office for the Southern District of New York, and the U.S. Customs and Border Protection in New York.
The prosecution of this case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Aline R. Flodr, Jessica Greenwood, Jonathan E. Rebold, and Daniel H. Wolf are in charge of the prosecution, with the assistance of Paralegal Specialists Rachel Wechsler, Christopher de Grandpre, Andrea Gieseman, and Connor Hamill.
Florida Man Charged with Passport Card Fraud, Bank Fraud, Identity TheftRead the Press Release
Burlington, Vermont – The United States Attorney for the District of Vermont stated that on January 4, 2024, the federal grand jury returned a thirteen-count indictment against Scott Jamie Ashness, 43, most recently of Stuart, Florida. Ashness was charged with ten counts of bank fraud, two counts of passport fraud, and one count of aggravated identity theft. Previously, on December 1, 2023, Ashness was charged by criminal complaint. Ashness is currently in state custody in the state of New Hampshire. The government has applied for a writ to bring Ashness into federal custody for prosecution.
According to court records, Ashness committed these offenses at various banks in Vermont on September 19 and 26, 2023. As detailed in the criminal complaint affidavit, the government alleges that Ashness visited six different bank branches throughout Vermont on September 19, and another four Vermont bank branches on September 26. At each bank, Ashness obtained or attempted to obtain cash withdrawals from other people’s accounts by purporting to be those people. In some instances, Ashness presented falsified U.S. passport cards containing others’ biographical information and Ashness’ photograph.
If convicted, Ashness faces a maximum sentence of 30 years of imprisonment on the bank fraud counts, a maximum sentence of 10 years of imprisonment on the passport fraud counts, and a two-year mandatory minimum prison sentence. The actual sentence, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines and the United States Code. The United States Attorney emphasizes that the charges in the indictment are merely accusations, and that the defendant is presumed innocent unless and until he is proven guilty.
U.S. Attorney Nikolas P. Kerest commended the investigatory efforts of the Diplomatic Security Service’s St. Albans Resident Office. He also thanked the Derry, New Hampshire Police Department, the Vermont State Police, the South Burlington Police Department, the Essex Police Department, the Winooski Police Department, the Burlington Police Department, the Newport Police Department, and the Barre Police Department for their assistance in the investigation.
The prosecutor is Assistant United States Attorney Nicole Cate. Counsel information for Ashness is not yet available.
The Diplomatic Security Service and the United States Attorney’s Office encourage any financial institution or individual who believes they may have been a victim of similar offenses, particularly involving falsified U.S. passport cards, to contact the St. Albans Resident Office of the Diplomatic Security Service at [email protected].
Correction: The press release was edited to reflect the correct spelling of the defendant's hometown.
Federal jury convicts Mayville man of sex trafficking a minorRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that a federal jury has convicted William A. Quinones, 49, of Mayville, NY, of transportation of a minor with intent to engage in criminal sexual activity and sex trafficking of a minor. The charges carry a mandatory minimum penalty of 15 years in prison and a maximum of life.
Assistant U.S. Attorneys Aaron J. Mango and Franz M. Wright, who handled the prosecution of the case, stated that in July 2021, the Chautauqua County Sheriff's Office received a complaint that Quinones had been sexually abusing two children over the past eight years. A subsequent investigation identified a total of four minor victims. During interviews with investigators, the victims stated that Quinones raped or attempted to rape and sexually abused them. Quinones threatened them with violence or threatened to hurt their families if they disclosed what he was doing. Quinones had regular sexual contact with one minor victim, referred to in the indictment, beginning when she was eight years old, as often as three to four times each week. The minor victim told investigators that Quinones started paying her in exchange for sexual contact, beginning when she was 13 years old until age 16 years old. On one occasion, Quinones took her to Erie, PA, to pick up drugs. Prior to returning home, Quinones stopped at a motel to engage in sexual intercourse. During the course of the sexual abuse, Quinones repeatedly raped and physically abused her.
The verdict is a result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, and the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone.
Sentencing is scheduled for June 28, 2024, 9:30 a.m. before U.S. District Judge John L. Sinatra, Jr. who presided over the trial.
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Federal Grand Jury Returns Indictment Charging Convicted Sex Offender with Failing to Update Sex Offender RegistrationRead the Press Release
Bowling Green, KY – A federal grand jury in Bowling Green returned an indictment on November 15, 2023, charging a local man with failure to update his Sex Offender Registration as required by the Sex Offender Registration and Notification Act.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and United States Marshal Gary B. Burman of the Western District of Kentucky made the announcement.
According to the indictment, sometime before October 13, 2023, Kelly Lamont Mason, 52 of Bowling Green, Kentucky, failed to register under the Sex Offender Registration and Notification Act (SORNA). Mason was required to register by reason of a conviction under state law and knowingly failed to update a registration as required by the Act.
The defendant made his initial court appearance yesterday. If convicted, Mason faces a maximum sentence of 10 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
The case is being investigated by the United States Marshals Service.
Assistant U.S. Attorney R. Nicholas Rabold is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Grand Jury Indicts Paducah Woman for Wire FraudRead the Press Release
Paducah, KY – A federal grand jury in Paducah returned an indictment on December 12, 2023, charging a Paducah woman with six counts of wire fraud and one count of aggravated identity theft.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office, and Sheriff Ryan Norman of the McCracken County Sheriff’s Office made the announcement.
According to the indictment, from September 2019 to February 2023, Nichole M. Lawrence, 34, used her position as office manager to unlawfully obtain funds and services totaling over $400,000 from her employer in McCracken County, Kentucky. By accessing the company’s bank account, Lawrence scheduled electronic payments for her personal expenses that had been charged to various accounts and charge cards. She also used a stamp with the signature of the company’s general manager to issue unauthorized company checks to herself.
The defendant made her initial court appearance yesterday, before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. If convicted, Lawrence faces a maximum sentence of 20 years in prison for each count of wire fraud followed by a mandatory 24 months in prison for identity theft. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
This case is being investigated by the FBI and the McCracken County Sheriff’s Office.
Assistant U.S. Attorney Raymond McGee, of the U.S. Attorney’s Paducah Branch Office, is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Essex County Man Admits Illegally Possessing Firearm and Cocaine, Heroin, and FentanylRead the Press Release
CAMDEN, N.J. – An Essex County, New Jersey, man today admitted illegally possessing fentanyl, heroin, and cocaine for distribution and possessing a firearm as a convicted felon and in furtherance of drug trafficking, U.S. Attorney Philip R. Sellinger announced.
Taurean Gordon, 40, of Irvington, New Jersey, pleaded guilty before U.S. Circuit Judge Stephanos Bibas in Camden federal court to a superseding information charging him with one count of being a previously convicted felon in possession of a firearm and ammunition, one count of possession with intent to distribute controlled substances, and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to documents filed in this case and statements made in court:
Gordon admitted that on Feb. 11, 2021, he possessed heroin, fentanyl and cocaine packaged for distribution with the intent to distribute. Gordon, a previously convicted felon, possessed a North American Arms Inc. revolver loaded with five rounds of ammunition.
The narcotics offense carries a maximum potential penalty of 20 years in prison, and a fine of $1 million. The count of being a felon in possession of a firearm and ammunition carries a maximum potential penalty of 10 years in prison. The count of possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum penalty of five years in prison, which must run consecutively to any other sentence imposed, and a maximum potential penalty of life in prison. Each firearm count carries a maximum fine of $250,000. Sentencing is scheduled for May 8, 2024.
U.S. Attorney Sellinger credited officers of the Newark Police Division under the direction of Director Fritz Fragé and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Bryan Miller, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys DeNae Thomas of the Health Care Fraud Unit and George Barchini of the Narcotics/Organized Crime and Drug Enforcement Task Force Unit.
gordon.sinformation.pdfErie Man Sentenced to Six Years in Prison for Distributing MethamphetamineRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 72 months in prison on his conviction of violating federal drug laws, United States Attorney Eric G. Olshan announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Marcus Dwayne Thompson, 37, of Erie, Pennsylvania.
According to information presented to the court, on or about December 11, 2019, Thompson distributed more than fifty grams of a mixture and substance containing a detectable amount of methamphetamine.
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Thompson.
Delaware County Sex Offender Pleads Guilty to Failing to Register Email AddressRead the Press Release
ALBANY, NEW YORK – Michael J. Frascatore, age 59, of Treadwell, New York, pled guilty yesterday to failing to register and update his registration as a sex offender to include an email address he failed to disclose. United States Attorney Carla B. Freedman and United States Marshal David L. McNulty made the announcement.
Frascatore admitted that he was designated as a Level I sex offender in New York after he was convicted in federal court in 2008 for distributing child pornography. Frascatore knew that as a registered sex offender he was required to report, among other things, all email addresses he used. Despite this requirement, he created an email address in April 2019, using his own name and home address, which he maintained for approximately four years without disclosing as required under the Sex Offender Registration and Notification Act (SORNA). Frascatore was on supervised release at the time of this offense, and he also did not disclose his email address to U.S. Probation. In addition to pleading guilty to violating SORNA, Frascatore admitted that he violated the terms of his supervised release by using an unauthorized internet-capable phone; maintaining the undisclosed email account; and knowingly communicating with minors online, including by sending explicit photos of himself to minors and requesting nude photos in return.
Frascatore will be sentenced for the SORNA offense and for his violations of supervised release on May 2, 2024, by United States District Judge Anne M. Nardacci. The SORNA offense carries a maximum term of 10 years in prison, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. The supervised release violations carry a maximum term of 2 years in prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The United States Marshals Service investigated this case, which is being prosecuted by Assistant United States Attorney Michael F. Perry as 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.
Dajuan Williams and Multiple Others Sentenced in Nationwide Drug and Money Laundering ConspiracyRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont stated that Dajuan Williams, 31, of Detroit, Michigan, was sentenced in the United States District Court on January 4, 2024, following his guilty plea to drug trafficking and money laundering charges described in counts 1 and 4 of the October 5, 2021 superseding indictment.
Chief United States District Judge Geoffrey W. Crawford sentenced Williams to 144 months’ imprisonment to be followed by a 4-year term of supervised release. The Court also ordered Williams to pay a forfeiture money judgment in the amount of $600,034.09.
According to court records, Williams, who is the lead defendant in this 11-defendant case, supervised a well-organized nationwide drug trafficking business that distributed vast quantities of fentanyl, methamphetamine, and other drugs for profit. Some of the drugs involved were fentanyl pills created to resemble prescription opiate medications. Williams also supervised the laundering of drug proceeds via cash deposits into bank accounts followed by the transfer of proceeds using a variety of methods, including mobile payment services such as Cash App, Zelle, and Venmo. Williams’s business had locations across the country, including in Burlington, Vermont; Bismarck, North Dakota; and Billings, Montana. To staff these locations, Williams recruited workers and directed them where to go and what to do. The business relied on complicated logistics to obtain drugs from suppliers, transport them across the country, and distribute them to customers. At times, Williams tested drugs on customers to determine which product was favored. On the financial side, Williams micro-managed on-the-ground distribution, checking in with his workers and frequently demanding the “count” – an accounting of drugs sold and money earned. Earnings of over a million dollars were returned to bank accounts controlled by Williams. Williams laundered drug proceeds, enriched himself, and surrounded himself with the trappings of affluence: cars, cash, clothes, jewelry, houses. Among the cars Williams purchased with his illegally-obtained wealth were a black 2016 Maserati Ghibli; a white 2017 Audi A7; and a grey 2017 BMW X6. Before his arrest on January 13, 2021, in Los Angeles, California, Williams was living in a mansion that rented for approximately $15,000 per month perched high in the hills of Los Angeles under the Hollywood sign.
To date, nine of Williams’ co-defendants have pleaded guilty to federal charges and have been sentenced. The following summarizes the results of this multi-defendant drug trafficking and money laundering case:
- Juwon Robinson: Pleaded guilty to drug trafficking charges described in count 1 of the indictment. Sentenced to 51 months’ imprisonment followed by 3 years of supervised release.
- Dashawn Pulley: Pleaded guilty to drug trafficking and money laundering charges described in counts 1 and 4 of the superseding indictment. Sentenced to 40 months’ imprisonment followed by 3 years of supervised release resolving federal charges in Vermont and North Dakota.
- Jaylinn Lenoir: Pleaded guilty to drug trafficking charges described in count 1 of the indictment. Sentenced to 60 months’ imprisonment followed by 3 years of supervised release.
- Rendell Perkins: Pleaded guilty to drug trafficking charges described in count 1 of the indictment. Sentenced to 30 months’ imprisonment followed by 3 years of supervised release.
- Mohamed Luhizo: Pleaded guilty to drug trafficking and money laundering charges described in counts 1 and 12 of the indictment. Sentenced to 70 months’ imprisonment followed by 3 years of supervised release.
- Stephen Alexander: Pleaded guilty to drug trafficking and money laundering charges described in counts 1 and 2 of an information. Sentenced to 32 months’ imprisonment followed by 3 years of supervised release.
- Juan Orozco-Hernandez: Pleaded guilty to drug trafficking and money laundering charges described in counts 1 and 2 of a superseding information. Sentenced to 42 months’ imprisonment followed by 3 years of supervised release.
- Abigail Houston: Pleaded guilty to drug trafficking charges described in count 1 of the superseding indictment. Sentenced to 5 years’ probation.
- Javonte Sovey: Pleaded guilty to drug trafficking and money laundering charges described in counts 1 and 4 of the superseding indictment. Sentenced to 1 year and 1 day of imprisonment followed by 3 years of supervised release and now participating in federal Reentry Court in Vermont.
- Jessica Elwell: Pleaded guilty to drug trafficking and money laundering charges described in counts 1 and 4 of the superseding indictment. Sentencing scheduled for March 8, 2024.
The sentencing of Williams and his co-defendants follows a twelve-month investigation conducted by state and federal agencies which was led by Homeland Security Investigations. HSI was assisted in this investigation by agents from IRS-Criminal Investigation, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Postal Inspection Service, troopers from the Vermont State Police Drug Task Force, the Burlington Police Department, and the South Burlington Police Department. The coordinated law enforcement effort focusing on Williams and his drug trafficking organization was conducted as part of the Organized Crime Drug Enforcement Task Force (OCDETF) Program. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
United States Attorney Nikolas P. Kerest praised the coordinated work of law enforcement in this year-long investigation and also thanked all of the United States Attorney’s Offices across the country who assisted, with specific credit to federal prosecutors in Maine, North Dakota, and the Central District of California for their assistance. “Dajuan Williams and his co-defendants spread deadly drugs throughout the Burlington, Vermont area as well as several other small cities across the United States. The focus of the organization was on profit without a care for the addicted victims of Williams’ illegal business. Multiple law enforcement agencies, led by HSI and IRS-CI, worked with focus and determination and have now successfully dismantled Williams’ organization. While we recognize the importance of prevention and treatment and rehabilitation, this office, along with our law enforcement partners, will continue to prosecute those who seek to profit off of the addiction of their fellow community members.”
“Dajuan Williams was responsible for spreading misery and poison throughout our region,” said Michael J. Krol, Special Agent in Charge of HSI New England. “HSI is proud to have collaborated with our local, state, and federal partners in Vermont and beyond to put an end to Williams’s crime spree, which included the trafficking of deadly fentanyl and other dangerous drugs.”
The United States is represented in this matter by Assistant U.S. Attorney John Boscia. Chandler Matson, Esq. represents Dajuan Williams. Ernest Allen, Esq. represented Juwon Robinson. Stephanie Greenlees, Esq. represented Dashawn Pulley. Jordana Levine, Esq. represented Jaylinn Lenoir. Robert Behrens, Esq. represented Rendell Perkins. Richard Bothfeld, Esq. represented Mohamed Luhizo. Kevin Henry, Esq. represented Stephen Alexander. Frederic Warner, Esq. and Richard Goldsborough, Esq. represented Juan Orozco-Hernandez. Allan Sullivan, Esq. represented Abigail Houston. Gregory Mertz, Esq. represented Javante Sovey. Michael Turndorf, Esq. represents Jessica Elwell.
D.C. Man Pleads Guilty to Defrauding Corporations by Using Their UPS Accounts to Create and Sell Shipping LabelsRead the Press Release
WASHINGTON – Raekwon Malik Harrod, 24, of Washington, D.C., pleaded guilty today to fraudulently using the UPS accounts of two American companies to create shipping labels, which he and another conspirator sold online. The announcement was made by U.S. Attorney Matthew M. Graves and Acting Special Agent in Charge David Geist of the FBI Washington Field Office’s Criminal and Cyber Division.
Harrod pleaded guilty to conspiracy to commit mail fraud, which has a statutory maximum penalty of five years’ imprisonment. As part of his plea agreement, Harrod must pay restitution to the two companies. He also will be liable for a forfeiture money judgment for proceeds he received as a result of the scheme. U.S. District Court Judge Ana C. Reyes, who accepted Harrod’s guilty plea in the District of Columbia, scheduled sentencing for June 18, 2024.
In his plea agreement, Harrod admitted that no later than 2020, a California co-conspirator gained access to one company’s UPS account and provided Harrod with the account’s log-in credentials. Harrod provided the credentials to a Maryland co-conspirator. Initially, Harrod and the Maryland co-conspirator, who both re-sold shoes online, used the account to create UPS shipping labels to mail the shoes that they sold, which reduced their shipping costs to zero. The California co-conspirator intended that they use the account in this manner. However, in late 2020, Harrod and the Maryland co-conspirator decided to use the account to sell UPS shipping labels to third parties. They advertised the service online and each created thousands of UPS labels using the compromised account. Harrod acknowledged that the fraudulent use of the company’s account caused the company to lose more than $900,000.
In late July 2021, Harrod and the Maryland co-conspirator lost access to the account, prompting them to tell the California co-conspirator that they had been selling labels using the account. The California co-conspirator requested that they pay him $120,000, which Harrod and the Maryland co-conspirator understood would be used to compensate the person who gave the California man access to the account. Thus, in August 2021, Harrod and the Maryland co-conspirator withdrew nearly $70,000 in cash and flew with the money to Los Angeles, where they gave the proceeds to the California co-conspirator. When they were in California, they withdrew another $50,000 in cash and provided it to the California co-conspirator as well.
Eventually, the California co-conspirator secured access to a second American company’s UPS account, which he provided to Harrod and the Maryland co-conspirator. The two men then resumed selling UPS shipping labels online, this time with direct involvement and knowledge of the California co-conspirator.
This case was investigated by the FBI’s Washington Field Office. It is being prosecuted by Assistant U.S. Attorney Kondi Kleinman with the assistance of paralegal specialist Sonalika Chaturvedi. Former paralegal specialist Michon Tart and former Financial Analyst Bryan Snitselaar also assisted with the investigation.
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Convicted Felon Sentenced to 8+ Years on Federal ChargesRead the Press Release
EAST ST. LOUIS, Ill. – A district judge sentenced a felon from East St. Louis to 97 months’ imprisonment after he admitted to conspiring to launder money and distribute drugs in southern Illinois.
Donald B. Perkins, 37, pleaded guilty to one count of money laundering conspiracy, one count of conspiracy to distribute marijuana, one count of possession with intent to distribute marijuana and one count of felon in possession of a firearm.
“This prison sentence reflects the seriousness of breaking the law by distributing illegal drugs, laundering the proceeds and unlawfully having a firearm,” said U.S. Attorney Rachelle Aud Crowe.
According to court documents, Perkins conspired with a co-defendant to launder money to conceal drug proceeds by using cash exchanges and cashier’s checks. The pair are estimated to have laundered more than $1.2 million.
Byron Robinson, 60, of Florissant, Missouri, was also charged in the indictment with money laundering conspiracy and was sentenced to 3 years of probation in September 2023.
“The act of laundering ill-gotten gains is as important to drug dealers as the distribution of illegal drugs,” said IRS Criminal Investigation (CI) Assistant Special Agent in Charge, Melissa McFadden. “The special agents of CI are proud to partner with other law enforcement agencies to take that profit-making potential away and help protect our communities from illegal drug activity.”
Law enforcement executed a search warrant on Perkins’s East St. Louis home in November 2021 and recovered more than 550 kilograms of marijuana. While executing the search warrant, officers also found a pistol belonging to Perkins, although Perkins was convicted on prior felony offenses and therefore unable to legally possess firearms.
IRS Criminal Investigation and DEA agents contributed to the investigation, and Assistant U.S. Attorney Michael Quinley prosecuted the case.
This case was part of an Organized Crime Drug Enforcement Task Forces operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Coffee County Man and His Brother Sentenced to Life in Federal Prison for Carrying Out a Murder-for-Hire PlotRead the Press Release
MONTGOMERY, ALABAMA – Today, a federal judge in Montgomery, Alabama, sentenced two men to life in prison for their roles in a murder-for-hire conspiracy that resulted in the November 27, 2017, death of an Enterprise woman, announced Acting United States Attorney Jonathan S. Ross. There is no parole in the federal system.
Last year, a jury found that Jason Starr, 50, from Coffee Springs, Alabama, was upset about the amount of money his ex-wife had been awarded after their divorce and that Jason Starr hired his brother, Darin Starr, 54, a resident of Lakehills, Texas, to kill her. On the Monday following Thanksgiving in 2017, Darin Starr shot and killed his brother’s ex-wife in her driveway as she was leaving for work. On September 20, 2023, a federal jury convicted Jason Starr and Darin Starr for committing their murder-for-hire scheme. In addition to the life sentence, the judge ordered Jason Starr to pay a fine of $25,000.00.
“This premeditated murder devastated the victim’s family and the surrounding community,” stated Acting United States Attorney Ross. “Jason and Darin Starr deserve to spend the rest of their lives separated from society for the terrible crime they committed.”
“Due to the extraordinary work by the investigative team comprised of the FBI, Coffee County Sheriff’s Office, Alabama Department of Forensic Sciences, and the Alabama Law Enforcement Agency, these two men will be held accountable for their heinous actions,” said FBI Special Agent in Charge Paul Brown. “Our thoughts and prayers go out to the family and friends of the victim. and our gratitude to our law enforcement partners.”
The FBI, the Coffee County Sheriff’s Office, the Alabama Department of Forensic Sciences, and the Alabama Law Enforcement Agency investigated the case, with Assistant United States Attorneys B. Chelsea Phillips and Joshua J. Wendell prosecuting.