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Monday 18 December 2023
New Jersey Man Sentenced to Prison for $1.5 Million Fraud SchemeRead the Press Release
BOSTON – A New Jersey man was sentenced today in connection with his scheme to defraud a friend of more than $1.5 million.
Edwin Tavarez, 48, of Garfield, N.J., was sentenced by U.S. District Judge Leo T. Sorokin to 18 months in prison and two years of supervised release. Tavarez was also ordered to forfeit $1,515,836. On May 31, 2023, Tavarez pleaded guilty to one count of wire fraud.
Between March 2015 and February 2020, Tavarez executed a scheme in which he conned a decades-long friend into “investing” more than $1.5 million into a purported development deal for an industrial property in the Dorchester neighborhood of Boston. In fact, Tavarez pocketed the money and used it to fund a restaurant he owned in the Bronx, N.Y., for personal expenses, and at casinos. Tavarez hid his scheme by sending text messages to the victim with fake updates on the purported property development and blaming project delays on the permitting process.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office made the announcement today. Assistant U.S. Attorneys Kristen A. Kearney and Leslie A. Wright of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
New Jersey Man Pleads Guilty to Leading One of the Largest No-Fault Insurance Frauds in New York HistoryRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that BRADLEY PIERRE pled guilty today to conspiracy to commit bribery and conspiracy to defraud the Internal Revenue Service (“IRS”) in connection with his orchestration of a $60 million fraud targeting No-Fault automobile insurance companies. PIERRE pled guilty before the Honorable Paul G. Gardephe and is scheduled to be sentenced on May 7, 2024.
U.S. Attorney Damian Williams said: “For over a decade, Bradley Pierre led one of the largest No-Fault insurance frauds in the history of New York, bribing medical professionals and others, scamming insurance companies, defrauding the IRS, and ultimately denying many accident victims fair and proper treatment because of his rigged system. But innocent victims will not stand alone. Those who seek to shamelessly reap the benefits of scams like this will be brought to justice.”
According to the Indictment, the plea agreement, and statements made in court:
New York and New Jersey No-Fault insurance laws require a driver’s automobile insurance company to pay automobile insurance claims automatically for certain types of motor vehicle accidents, provided that the claim is legitimate and below a particular monetary threshold. Pursuant to these requirements, insurance companies will often pay medical service providers directly for the treatment they provide to automobile accident victims without the need to bill the victims themselves. This process resolves automobile claims without apportioning blame or fault for the accident, thereby avoiding protracted disputes and the costs associated with an extended investigation of the accident.
From at least in or about 2008 through in or about 2021, PIERRE agreed with others (the “Clinic Controllers”) to unlawfully own and run medical clinics located in the New York area including, among others, Veda Medical, Sky Medical, Sun Medical, and Rutland Medical (the “Clinics”). PIERRE knew that clinics are unable to bill insurance companies for No-Fault benefits if the medical facilities are controlled by non-physicians. PIERRE nonetheless agreed with others, including doctors, to submit bills to insurance companies falsely representing that the Clinics were owned and operated by licensed doctors, and for doctors to lie under oath during Examinations under Oath (“EUOs”) about the ownership, control, and finances of the Clinics. PIERRE personally coached doctors to lie under oath in these EUOs.
PIERRE used his control of the Clinics for personal profit. Between 2008 and 2021, PIERRE took over $20,000,000 from the Clinics by either transferring the funds directly to bank accounts under his control or using the Clinics' bank accounts to pay his personal finances. PIERRE also used his control of the Clinics to steer prescriptions to pharmacies in return for over a million dollars in kickbacks and to steer patients to seek legal representation from his wife’s law firm, the Law Firm of Nonna Shikh (the“Shikh Firm”). The Shikh Firm then filed lawsuits against insurance companies on these patients’ behalf. PIERRE maintained an office at the Shikh Firm and was actively involved in the legal practice as a “manager.”
PIERRE used his control of the Clinics and his managerial role at the Shikh Firm to also steer patients to seek MRIs at a medical facility over which he exercised substantial control (the “MRI Facility”). PIERRE also agreed with the purported sole owner of the MRI Facility, who was a doctor, that the doctor would falsely report injuries in MRI reports. These falsified injuries allowed the Clinics to bill insurance companies for additional, unnecessary medical services and allowed attorneys to falsely claim injuries in lawsuits against insurance companies. PIERRE and the doctor agreed that the doctor would lie to insurance companies during EUOs about PIERRE’s role in the MRI Facility.
PIERRE hid his control over several of the Clinics and the MRI Facility using phony loan arrangements. These agreements claimed that PIERRE was making non-recourse loans to the Clinics and the MRI Facility, which would only have to be paid back if insurance companies paid the medical practices’ claims. The agreements also set PIERRE’s “fee” as twice the amount loaned to the practices. However, in reality, PIERRE took almost $10,000,000 in excess of what these purported loan agreements permitted.
PIERRE further agreed to pay bribes to fill the Clinics and the MRI Facility with patients. From at least in or about 2015 up to and including 2021, PIERRE agreed with others to pay bribes to hospital employees, 911 dispatchers, and other individuals (collectively, “lead sources”) for the confidential names and numbers of motor vehicle accident victims. PIERRE agreed that others, including Anthony Rose, a/k/a “Todd Chambers,” would then call victims and lie to them to induce victims to receive medical treatment at the Clinics and legal representation from the Shikh Firm. PIERRE helped Rose expand his bribery operation to New Jersey by recommending clinics and attorneys in the state that would pay kickbacks for referrals. PIERRE also recommended that Rose open a shell company to hide the illegality of the payments, which Rose in fact did. PIERRE paid Rose over $800,000 as part of the bribery scheme.
PIERRE further recruited his own lead sources to participate in the bribery scheme. For instance, in or about 2017, PIERRE recruited Andrew Prime, knowing that Prime was bribing 911 operators and a hospital employee for confidential information. PIERRE paid Prime over $800,000 as part of the bribery scheme. PIERRE also personally recruited and bribed several of his own lead sources, including 911 operators and a source in 2019 that PIERRE codenamed the “Motherload” or “ML.”
PIERRE also agreed to bribe medical offices to send patients to the MRI Facility for MRIs. These medical offices included, among others, Epione Medical Center and Modern Brooklyn Medical. PIERRE facilitated these bribe payments through several intermediaries, including Anthony Rose, Jelani Wray, and others. PIERRE paid Jelani Wray over $800,000 in connection with these bribes.
PIERRE then engaged in tax evasion. PIERRE utilized two companies in connection with the healthcare fraud and bribery schemes: Medical Reimbursement Consultants (“MRC”) and Marketing 4 You (“M4Y”). PIERRE hid income from the IRS by concealing multiple bank accounts for MRC and using a series of check cashers for checks made out to MRC and M4Y. PIERRE also paid personal expenses from MRC and M4Y’s bank accounts but improperly reported these payments as “business expenses.” These included payments for his wedding, home renovations, jewelry, furniture, luxury clothing, travel, and gifts. In total, PIERRE underreported income, falsely reported expenses of over $4 million, and deprived the IRS of approximately $1.5 million in taxes due.
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BRADLEY PIERRE, 41, of Closter, New Jersey, pled guilty to one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison, and one count of conspiracy to defraud the IRS, which carries a maximum sentence of five years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the work of the Federal Bureau of Investigation and the Internal Revenue Service.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit and the White Plains Division. Assistant U.S. Attorneys Mathew Andrews, Qais Ghafary, and Michael Lockard are in charge of the prosecution.
Muncie Drug Dealer Sentenced to 15 Years in Federal Prison for Armed Trafficking of Fentanyl PillsRead the Press Release
INDIANAPOLIS- Jesse Daniel Ross, II, 23, of Muncie, Indiana, has been sentenced to 15 years in federal prison after pleading guilty to possession with intent to distribute 400 grams or more of a substance containing fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, on multiple occasions in early 2023, Drug Enforcement Administration agents observed Ross sell a total of 1,000 fentanyl pills for $3,000.
On June 12, 2023, a search warrant was executed at Ross’ Muncie home. Officers located over 3,000 more pills containing a total of 779 grams of fentanyl, over $12,000 in cash, and two handguns. Both of the guns were loaded and within arm’s reach of Ross’ fentanyl stash and drug proceeds.
In an interview with investigators, Ross admitted to selling “M30” labeled fentanyl pills to as many as four people per day.
At the time of his arrest, Ross was on probation in Delaware County following a prior conviction for dealing narcotics in the presence of a minor. Ross is prohibited under federal law from possessing a firearm due to his previous felony conviction.
“The ongoing fentanyl crisis continues to ravage our families and communities—drug poisonings are now the leading cause of death for Americans 18 to 45 years old. The defendant had a direct hand in pushing thousands of these poisonous pills into Muncie’s neighborhoods,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Armed fentanyl traffickers are a top priority of the U.S. Attorney’s Office. With our federal, state, and local partners, we are committed to dismantling these operations and ensuring that those responsible are held accountable.”
The DEA, Muncie- Delaware County Drug Task Force and the Muncie Police Department investigated this case. The sentence was imposed by U.S. District Court Chief Judge Tanya Walton Pratt. Judge Pratt also ordered that Ross be supervised by the U.S. Probation Office for five years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Barry D. Glickman, who prosecuted this case.
According to the Drug Enforcement Administration, as little as two milligrams of fentanyl can be fatal, depending on a person’s body size, tolerance, and past usage—a tiny amount that can fit on the tip of a pencil. Seven out of ten illegal fentanyl tablets seized from U.S. streets and analyzed by the DEA have been found to contain a potentially lethal dose of the drug.
One Pill Can Kill: Avoid pills bought on the street because One Pill Can Kill. Fentanyl has now become the leading cause of death for adults in the United States. Fentanyl is a highly potent opioid that drug dealers dilute with cutting agents to make counterfeit prescription pills that appear to be Oxycodone, Percocet, Xanax, and other drugs. Fake prescription pills laced with fentanyl are usually shaped and colored to look like pills sold at pharmacies. For example, fake prescription pills known as “M30s” imitate Oxycodone obtained from a pharmacy, but when sold on the street the pills routinely contain fentanyl. These pills are usually round tablets and often light blue in color, though they may be in different shapes and a rainbow of colors. They often have “M” and “30” imprinted on opposite sides of the pill. Do not take these or any other pills bought on the street – they are routinely fake and poisonous, and you won’t know until it’s too late.
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Montgomery Woman Sentenced to 10 Years in Federal Prison for Child Sex TraffickingRead the Press Release
Montgomery, Alabama – Today, Acting United States Attorney Jonathan S. Ross announced that a federal judge sentenced 27-year-old Laporchie Howard, a resident of Montgomery, Alabama, to 120 months in prison. Howard’s sentence follows her entering a guilty plea to the charge of sex trafficking a minor. During the December 15, 2023, sentencing hearing, the judge also ordered that Howard serve five years of supervised release following the prison term. Federal prisoners are not eligible for parole.
According to her plea agreement and other court records, in early 2017, Howard resided with two co-defendants — D’Vonte Lockley and Tracey Shannon — in an apartment located in Montgomery. Sometime before May 4, 2017, a female runaway under the age of eighteen and an adult female were invited to live with Howard at her apartment. In her plea agreement, Howard acknowledged that she and her co-defendants knew that one of their new roommates was a minor. In return for food and housing, the two new residents engaged in commercial sex at a Montgomery hotel. Howard received the proceeds. In furtherance of the commercial sex trafficking enterprise, Howard sent various text messages to the other four residents and to customers directing some of the criminal activities. She also set the prices of the commercial sex acts. With some of the proceeds, Howard purchased illegal drugs for herself and the two victims. For over a month, the two victims’ commercial sex income was the sole source of support for all the residents in the apartment. Lockley and Shannon were previously sentenced for their involvement in the sex trafficking crimes.
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 Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The Federal Bureau of Investigation, the Montgomery Police Department, and the Alabama Attorney General’s Office investigated this case, with assistance from the U.S. Department of Justice’s Child Exploitation and Obscenity Section. Assistant United States Attorneys J. Patrick Lamb and Tara S. Ratz for the Middle District of Alabama, and Assistant Attorney General Audrey Jordan of the Alabama Attorney General’s Office prosecuted the case.
Modesto Man Sentenced to 10 Years in Prison for Child Sexual Exploitation ConvictionsRead the Press Release
FRESNO, Calif. — Michael Brace, 33, of Modesto, was sentenced today to 10 years in prison for two counts of receipt and distribution of material involving the exploitation of minors, U.S. Attorney Phillip A. Talbert announced. The prison sentence is to be followed by 10 years of supervised release during which Brace’s access to computers, the internet, and minors will be restricted.
According to court documents, between Aug. 7, 2020, and Jan. 4, 2021, Brace knowingly received visual depictions of minors engaged in sexually explicit conduct, including images of prepubescent minors and violence being inflicted on victims. Brace also communicated with an undercover law enforcement officer posing as a 13-year-old female on the social media platform Skout and traveled to Fresno with the belief that he would engage in sexual activity with the purported minor.
This case was the product of an investigation by the Central Valley Internet Crimes Against Children Task Force, specifically the Fresno and Stanislaus County Sheriff’s Offices, and Homeland Security Investigations. Assistant U.S. Attorney David Gappa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Minneapolis Felon Pleads Guilty to Possession with Intent to Distribute FentanylRead the Press Release
ST. PAUL, Minn. – A Minneapolis man has pleaded guilty to possession of fentanyl with intent to distribute, announced U.S. Attorney Andrew M. Luger.
According to court documents, on January 24, 2023, law enforcement executed a search warrant at the South Minneapolis residence of Andre Garner, 42, and recovered almost 800 grams of fentanyl in a van registered to Garner. During their search, law enforcement also recovered over 1,000 grams of cocaine, two firearms, and $9,400 in cash. As a part of his guilty plea, Garner admitted that he told law enforcement that anything law enforcement found was his, including the money and the van.
Garner pleaded guilty today in U.S. District Court before Judge Jerry W. Blackwell to one count of possession with intent to distribute fentanyl. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by the Hennepin County Violent Offender Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant U.S. Attorney Hillary A. Taylor is prosecuting the case.
Mexican National Sentenced to More Than 9 Years in Prison for Smuggling Migrants and Drugs on Panga Boat that Landed on Central CoastRead the Press Release
LOS ANGELES – A Mexican man was sentenced today to 110 months in federal prison for trafficking 11 undocumented individuals, as well as 45 pounds of methamphetamine, on a panga boat that landed on a Santa Barbara County beach.
Jorge Muñoz-Muñoz, 27, of Ensenada, Mexico, was sentenced by United States District Judge Dale S. Fischer.
At the conclusion of a five-day trial in December 2022, a federal jury found Muñoz-Muñoz guilty of one count of conspiracy to bring aliens into the United States, 11 counts of alien smuggling, 11 counts of alien smuggling for private financial gain, one count of conspiracy to distribute methamphetamine, one count of possession with intent to distribute methamphetamine, one count of conspiracy to import methamphetamine, and one count of importation of methamphetamine.
On the morning of September 27, 2021, law enforcement sighted a panga boat adrift off the coast of Santa Barbara County. The vessel, which was having engine trouble, ultimately made landfall at Arroyo Quemada Beach, approximately 25 miles west of Santa Barbara.
The investigation in this matter revealed that there were 15 people on the boat, including several crewmembers. Two black bags that contained a total of 40 vacuum-sealed and plastic wrapped bindles, totaling approximately 45 pounds, were thrown off the boat by passengers at Muñoz-Muñoz’s direction and later were recovered by law enforcement.
Authorities also later confirmed that all occupants of the boat were undocumented aliens. Based on interviews with the passengers, it was determined that the passengers arrived at a beach in Ensenada, Mexico to board a panga that would smuggle them into the United States for a price of approximately $15,000 each.
On July 6, Judge Fischer ordered Muñoz-Muñoz acquitted of one count of aiding and assisting an alien convicted of an aggravated felony to enter the United States.
Muñoz-Muñoz has been in federal custody since his arrest in September 2021.
Roel Aranzubia-Álvarez, 45, of Sinaloa, Mexico, the panga boat’s captain, was convicted at trial with Muñoz-Muñoz of alien smuggling charges in this case and was sentenced to five years in federal prison.
Another defendant and panga boat crewmember, Caín Camargo-López, 46, of Sinaloa, Mexico, pleaded guilty in April 2022 to two counts of alien smuggling and one count of conspiring to allow an alien convicted to aggravated felonies to enter the United States. On August 7, Judge Fischer sentenced Camargo-López to five years in federal prison.
Homeland Security Investigations investigated this matter. United States Customs and Border Protection, the Santa Barbara County Sheriff’s Office, and the California Department of Parks and Recreation provided substantial assistance.
Assistant United States Attorney Haoxiaohan Cai of the General Crimes Section and Justice Department Trial Attorney Siobhan M. Namazi prosecuted this case.
Manvel resident charged for creating fake businesses to obtain COVID-19 fundsRead the Press Release
HOUSTON – A 38-year-old man has been indicted for wire fraud and money laundering, announced U.S. Attorney Alamdar S. Hamdani.
Authorities arrested Antonio Jackson Jr. this morning. He is expected to make his initial appearance before U.S. Magistrate Judge Yvonne Y. Ho at 2 p.m.
The indictment, returned Dec. 12, alleges Jackson fraudulently obtained approximately $492,611 in funds through the Small Business Administration’s (SBA) Payroll Protection Program and Economic Injury Disaster Loan Program.
According to the indictment, Jackson submitted false information and documents to the SBA to fraudulently obtain COVID-19 related loans. In his loan applications, Jackson allegedly claimed to be the owner and operator of multiple businesses with dozens of employees and millions in revenue and payroll expenses.
The charges allege the businesses were fictional. Jackson is alleged to have submitted fabricated payroll records, profit and loss statements as well as tax records to induce the SBA to approve the loans.
Jackson allegedly used the fraudulently obtained funds to purchase luxury retail goods, exotic trips and luxury vehicles.
Jackson is charged with four counts of wire fraud and four counts of money laundering. If convicted, he faces up to 20 years in prison and a possible $250,000 maximum fine.
The SBA - Office of Inspector General conducted the investigation. Assistant U.S. Attorney Andrew Swartz is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Man Sentenced for Role in $105M Veterans Affairs Fraud SchemeRead the Press Release
A California man was sentenced today to one year and a day in prison for his role in defrauding the Department of Veterans Affairs (VA) Post-9/11 GI Bill education benefit program.
According to court documents, Philip Abod, 57, of Calimesa, was a school certifying official at a school that offered VA-approved technical training programs to military veterans. Abod and his co-conspirators made false and fraudulent representations to the VA regarding, among other things, veterans’ enrollment in approved courses of study and class attendance. Abod and his co-conspirators also falsified course completion records to make it appear as if enrolled veterans completed their programs, when in fact, they had not. To conceal their scheme, Abod and his co-conspirators falsified veterans’ contact information by substituting phone numbers that Abod and his co-conspirators controlled to ensure that regulators could not contact the veterans. When regulators called the falsified phone numbers to obtain information about the school, Abod and his co-conspirators impersonated students.
From January 2012 through June 2022, the school fraudulently obtained more than $32 million in tuition payments from the VA. During the same period, the VA paid more than $72 million in education-related government benefits to veterans enrolled in VA-approved courses. In total, Abod’s and his co-conspirators’ scheme to defraud the VA resulted in a total loss of nearly $105 million in government funds.
Abod was also ordered to pay $3.4 million in restitution to the VA.
For their roles in the scheme, co-conspirator Michael Bostock, 54, of Nampa, Idaho, was sentenced to five years in prison on June 26, and co-conspirator Eric Bostock, 48, of Riverside, California, was sentenced to one year and a day in prison on Nov. 29.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division and VA Inspector General Michael J. Missal made the announcement.
The VA Office of Inspector General investigated the case, with assistance from the Veterans Benefits Administration-Education Service.
Trial Attorney Lauren Archer of the Criminal Division’s Fraud Section prosecuted the case.
Man Involved in Hartford Drug Deal That Resulted in Shooting Sentenced to 42 Months in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that THOMAS AQUILES, Jr., 37, formerly of New Britain, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 42 months of imprisonment, followed by three years of supervised release, for a heroin trafficking offense.
According to court documents and statements made in court, at approximately 10:00 p.m. on December 21, 2016, Hartford Police officers responded to a report of a person shot at a car wash located at 156 Franklin Avenue in Hartford. At the car wash, officers encountered an employee of the car wash who was suffering from two gunshot wounds. The victim was transported to the hospital where he was treated for his injuries,
The investigation, which included analysis of a surveillance video, revealed that Hector Alfonso arrived at the car wash shortly before the shooting to conduct a heroin transaction with Aquiles and Ruben Rodriguez. Alfonso and Rodriguez were both armed with handguns. A dispute and subsequent struggle between Alfonso and Aquiles occurred during the transaction, and Alfonso shot the employee as he attempted to run from the car wash.
Alfonso was arrested on a federal criminal complaint on May 10, 2017. A search of his Manchester residence on that date revealed cocaine residue on a toilet seat, cocaine, and crack cocaine residue in another part of home, and items used to process and package narcotics for street sale. Alfonso pleaded guilty to drug and firearm offenses and, on March 22, 2019, he was sentenced to 153 months of imprisonment for both offenses, and for violating the conditions of his supervised release from a prior federal conviction.
Rodriguez was arrested on September 27, 2017. On that date, a search of his Meriden residence and vehicle revealed a loaded .40 caliber pistol, numerous rounds of ammunition, approximately 133 grams of heroin, approximately 170 grams of cocaine, and $61,909 in cash. Rodriguez pleaded guilty to drug and firearm offenses and, on March 21, 2019, was sentenced to 72 months of imprisonment.
Aquiles, who was on state parole with the state of Connecticut in December 2016, absconded in January 2018 and remained a fugitive until he was arrested in New York in August 2022. On April 18, 2023, he pleaded guilty to one count of conspiracy to possess with intent to distribute heroin. He is currently detained in state custody.
This investigation was conducted by the Federal Bureau of Investigation and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Shan Patel and Trial Attorney Brian P. Leaming of the Justice Department’s Violent Crime and Racketeering Section.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Lubbock Woman Sentenced to 30 Months in Federal Prison for Concealing PPP Loan FraudRead the Press Release
Lubbock woman was sentenced Thursday to 30 months in federal prison for concealing PPP Loan Fraud, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Hope Leticia Hastey, 51, was charged via criminal information in August 2023 and pleaded guilty to one count of misprision of a felony. Ms. Hastey was sentenced Thursday by U.S. District Judge James Wesley Hendrix, who ordered her to pay $3,545,894.36 in restitution.
According to plea documents, Ms. Hastey founded Radar Supports, LLC, a company that provided certain contract services, including speech and occupational therapy and Radar Foundations, Inc., a non-profit that organized community fundraisers to benefit individuals with intellectual limitations. Radar Supports employed approximately 10 individuals and Radar Foundations did not employ anyone.
In May 2020, an assumed name certificate was filed for “Radar Supports Construction,” indicating Ms. Hastey as the owner. Radar Supports Construction never provided goods or services of any kind and never filed a tax return.
Ms. Hastey employed Andrew Travis Johnson, 59, —an accomplice in a separate case—to provide bookkeeping services for her business. During the Covid-10 pandemic, Mr. Johnson engaged in a bank fraud scheme to obtain loans for Radar Supports, Radar Supports Construction, and Radar Foundations through the Paycheck Protection Program (PPP). He obtained the loans by falsely inflating payroll data related to Radar Supports and Radar Foundations and fabricating payroll data for Radar Supports Construction.
Ms. Hastey signed the loan documents, which included certifications that the loan proceeds would be used for payroll costs and other business-related expenditures. Hastey failed to notify authorities of the fraud. Instead, to make it appear as though the loan proceeds were used for payroll costs, Hastey wrote a check to a colleague who worked for Radar Supports. The check was not intended for the colleague and was never given to the individual. Ms. Hastey deposited the check into another bank account she controlled.
In total, Ms. Hastey and Mr. Johnson applied for five PPP loans and received nearly $3.5 million. Ms. Hastey spent the money on personal expenses, including heavy equipment to help family members start a new business; a cash purchase of a new home; home renovations; multiple vehicles; vacations; clothing; cosmetic and dental procedures; college tuition; and expenses for a wedding. All five loans were forgiven.
According to court documents in Mr. Johnson’s case, he pleaded guilty to three counts of bank fraud, one count of identity theft and one count of engaging in monetary transactions in property derived from specified unlawful activity in March 2023. He was sentenced in August 2023 to 180 months in federal prison.
The Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigation Division, and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Ann Howey prosecuted the case. Assistant U.S. Attorney Saurabh Sharad handled the forfeiture.
Lincoln Man Sentenced for Firearms Possession and ConspiracyRead the Press Release
Acting United States Attorney Susan Lehr announced that Josef D. Barraza, 25, of Lincoln, Nebraska, was sentenced December 18, 2023, in federal court in Lincoln for firearms conspiracy and possession of a weapon in furtherance of drug trafficking. United States Senior District Court Judge John M. Gerrard sentenced Barraza to 204 months’ imprisonment. There is no parole in the federal system. After Barraza’s release from prison, he will begin a 5-year term of supervised release.
Josef D. Barraza was prohibited from purchasing firearms in the State of Nebraska because of previous drug and firearms convictions. Due to his inability to purchase firearms, he made an agreement with his co-defendant Rachel Pageler to purchase firearms for him. Barraza would then illegally transfer and sell these firearms to other third parties.
In November of 2020, investigators executed a series of search and arrest warrants for members of the No Names Demon gang in Lincoln, Nebraska. On that same day, Pageler reported to police that some weapons had been stolen, when in fact, at Barraza’s direction, the weapons were transferred or sold to gang members. Those weapons were used by members of the gang in robberies and rival gang shootings and threats.
Upon his arrest in June 2021, investigators with the Lincoln Police Department went to the shared residence of Barraza and Pageler. Investigators seized firearms, including multiple Glock handguns and ammunition, one with an extended clip that was loaded and controlled substances, including methamphetamine and marijuana. Investigators also recovered $1,200 in United States currency from Barraza, who was unemployed. Pageler is set to be sentenced for her role in the crimes in February 2024.
This case was brought as part of the Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
This case was investigated by the Lincoln Police Department.
Leader of Multiple “Pump and Dump” Securities Fraud Schemes Sentenced to 30 Months in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that EARL INGARFIELD was sentenced to 30 months in prison for orchestrating multiple “pump and dump” stock fraud schemes designed to target retail investors and manipulate trading in penny stock shares, including a scheme to manipulate the shares of Suburban Minerals Corporation (“SUBB”) from which INGARFIELD made more than $1.4 million. INGARFIELD previously pled guilty before U.S. District Judge Jed S. Rakoff, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Earl Ingarfield engaged in a classic pump and dump scheme that victimized innocent investors and undermined the integrity of our public markets. Those who defraud investors by spreading false and misleading information for their own monetary gain will face stiff punishment for their crimes.”
According to the Indictment, public filings, and statements made in court:
From at least 2013 through March 2014, EARL INGARFIELD was the leader of multiple schemes to manipulate the stock of penny stocks, including the price of SUBB, a public company traded on the over-the-counter (“OTC”) market. In or about 2013, INGARFIELD obtained control of SUBB, installing management at the company that acted at his direction and financing SUBB’s operations. INGARFIELD also obtained convertible promissory notes issued by SUBB, which he then converted into tens of millions of SUBB shares that were nominally held by offshore shell entities. INGARFIELD used these shell entities to conceal his involvement and the fact that he owned and controlled the vast majority of the shares of SUBB.
In early 2014, at INGARFIELD’s direction, SUBB announced that it was purportedly acquiring a producing African diamond mine worth $5 billion. But in reality, no such mine existed. Between January 2014 and March 2014, SUBB issued a series of press releases making false representations regarding that purported mine acquisition and SUBB’s operations. During the same time period, INGARFIELD orchestrated a marketing campaign through which promotional materials echoing the same false claims were distributed to the investing public by email. The false and misleading press releases and email marketing campaign caused SUBB’s share price and trading volume to become artificially inflated.
While SUBB’s price was artificially inflated, INGARFIELD profited by selling millions of his secretly amassed shares, all at the expense of the investing public. Between January and March 2014, he made more than $1.4 million from the sale of SUBB shares.
On March 7, 2014, the Securities and Exchange Commission halted trading in SUBB, after which the share price dropped precipitously and never recovered.
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In addition to his prison term, EARL INGARFIELD, 64, of Las Vegas, Nevada, was sentenced to two years of supervised release and ordered to pay restitution of $1,804,738 and forfeiture of $1,418,473.
Mr. Williams praised the outstanding work of Homeland Security Investigation’s El Dorado Task Force.
The matter is being handled by the Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Emily Deininger, Shiva Logarajah, and Tara La Morte are in charge of the prosecution.
Lake County Man Arrested for Possessing A Firearm as A Convicted FelonRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the arrest of Tyran Terrell Harris (23, Leesburg) on an indictment charging him with possessing a firearm as a convicted felon. If convicted, Harris faces up to 15 years in federal prison. A federal grand jury had indicted Harris on December 12, 2023.
According to court documents, Harris has multiple prior state felony convictions including grand theft, tampering with a witness, and grand theft auto. On September 25, 2023, officers from the Leesburg Police Department observed Harris walking around an apartment complex with a loaded firearm. Knowing Harris was a convicted felon, the officers arrested him and took possession of the firearm. A record check showed that the firearm had been reported stolen approximately two weeks earlier. Harris subsequently admitted that he knew he could not possess the firearm as a convicted felon.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Leesburg 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.
Kenai woman sentenced to prison for bankruptcy fraudRead the Press Release
ANCHORAGE, Alaska – A Kenai woman was sentenced to 12 months and one day in prison for making a materially false statement in a bankruptcy case.
According to court documents and statements made in court, Saray Consuelo Sarmiento Angarita Lockwood, 58, ran a successful dental clinic in Kenai with her late husband. In April 2019, Lockwood and her husband filed for bankruptcy. During the bankruptcy proceeding, Lockwood made false statements under penalty of perjury about an entity they owned called Strategic Innovations LLC.
In October 2015, Lockwood and her husband opened two bank accounts in the name of Strategic Innovations LLC, the initial deposits for which were checks drawn on Lockwood’s husband’s retirement and investment accounts. Lockwood and her husband were the sole signatories on the bank accounts, and from 2015 through at least 2019, Lockwood performed most of the deposits and withdrawals into and from the accounts.
In May 2021, in connection with their bankruptcy, Lockwood and her husband responded to questions posed by the U.S. Trustee. On one question, Lockwood falsely claimed that family members had loaned Strategic Innovations LLC money to purchase at least four properties seized and auctioned off by the IRS as part of its efforts to collect the Lockwoods’ outstanding federal income tax liabilities.
In addition to the term of imprisonment, U.S. District Judge Joshua M. Kindred ordered Lockwood to serve three years of supervised release. When Judge Kindred delivered his sentence, he cited general deterrence as a factor in his sentencing decision, explaining that white collar criminals should not be treated differently from other criminals who differ in socioeconomic status. He stated that “criminal conduct is criminal conduct," and it should result in proper sanctions.
United States Attorney S. Lane Tucker for the District of Alaska and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
"For over 10 years, Ms. Lockwood executed calculated efforts to evade millions in tax payments and filed false statements in bankruptcy court to perpetuate the scheme. She took advantage of the system and disregarded all warnings given by federal agents,” said U.S. Attorney Tucker. “White collar criminals, like Ms. Lockwood, that evade taxes and file false statements to avoid their debts harm law abiding citizens. Absolutely no one is above the law, and my office will ensure that anyone who chooses to commit fraud will be aggressively prosecuted and held accountable for the damage they cause.”
“Ms. Lockwood was sentenced on a single count of bankruptcy fraud, yet all of her actions served the sole purpose of evading millions in taxes. This is not a victimless crime. The victims of tax evasion are you, me, and all the taxpayers in Alaska,” said IRS Criminal Investigation Seattle Field Office Special Agent in Charge Adam Jobes. “IRS-CI, in partnership with the U.S. Attorney’s Office, will continue to investigate false claims in bankruptcy court and tax evasion, to foster confidence in these systems for the American people.”
IRS Criminal Investigation investigated the case.
Assistant U.S. Attorneys Michael J. Heyman and Tom Bradley, and Trial Attorney Ahmed Almudallal of the Justice Department’s Tax Division Western Criminal Enforcement Section prosecuted the case.
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Justice Department and Federal Trade Commission Release 2023 Merger GuidelinesRead the Press Release
Today, the Justice Department and the Federal Trade Commission (FTC) jointly issued the 2023 Merger Guidelines, which describe factors and frameworks the agencies utilize when reviewing mergers and acquisitions. The 2023 Merger Guidelines are the culmination of a nearly two-year process of public engagement and reflect modern market realities, advances in economics and law, and the lived experiences of a diverse array of market participants.
“These finalized Guidelines provide transparency into how the Justice Department is protecting the American people from the ways in which unlawful, anticompetitive practices manifest themselves in our modern economy,” said Attorney General Merrick B. Garland. “Since releasing the Draft Merger Guidelines earlier this summer, we have engaged with stakeholders across the country, and the Guidelines are stronger as a result. The Justice Department will continue to vigorously enforce the laws that safeguard competition and protect all Americans.”
“The Guidelines we release today are faithful to the law and reflect how competition plays out in our modern markets,” said Assistant Attorney General Jonathan Kanter of the Justice Department's Antitrust Division. “Ensuring that our merger enforcement protects that competition is our North Star. Competitive markets and economic opportunity for all Americans go hand in hand. We were grateful to hear from authors, nurses, farmers, and other concerned citizens from across the country as we worked to put together the 2023 Merger Guidelines. Their comments were invaluable — and our merger enforcement will be better as a result.”
“Fair, open, competitive markets have been essential to America’s dynamic, thriving economy, and policing unlawful mergers is our front line of defense against harmful corporate consolidation,” said FTC Chair Lina M. Khan. “The 2023 Merger Guidelines reflect the new realities of how firms do business in the modern economy and ensure fidelity to statutory text and precedent. I am grateful for the thousands of comments submitted by American workers, consumers, entrepreneurs, farmers, business owners, and other members of the public. This input directly informed the guidelines and allowed us to pursue this work with a deeper understanding of the real-life stakes of merger enforcement.”
The 2023 Merger Guidelines released today modify the Draft Merger Guidelines, released on July 19, to address comments from the public, including extensive engagement from attorneys, economists, academics, enforcers, and other policymakers at the agencies’ three Merger Guidelines Workshops. They emphasize the dynamic and complex nature of competition ranging from price competition to competition for the terms and conditions of employment, to platform competition. This approach enables the agencies to assess the commercial realities of the United States’ modern economy when making enforcement decisions and ensures that merger enforcement protects competition in all its forms.
The agencies protect competition through enforcement of the antitrust laws and other federal competition statutes. Since 1968, the agencies have issued merger guidelines to enhance transparency and promote awareness of how the agencies undertake merger analysis before deciding whether or not to challenge an acquisition. Over the years, the agencies have worked collaboratively to update the Merger Guidelines periodically to reflect changes in the law and market realities, including in 1982, 1984, 1992, 1997, 2010, and 2020.
The robust process to develop the 2023 Merger Guidelines began in January 2022. The agencies announced an initiative to evaluate possible revisions to the 2010 Horizontal Merger Guidelines and the 2020 Vertical Merger Guidelines and published a Request for Information on Merger Enforcement, which sought public comment on modernizing merger enforcement. The agencies received more than 5,000 comments. Commenters highlighted excessive market consolidation across industries and overwhelmingly urged the agencies to strengthen their approach to merger enforcement. At the agencies’ four listening sessions, business owners, workers, and other advocates similarly highlighted the potential for mergers and acquisitions to undermine open, vibrant, and competitive markets, in industries ranging from food and agriculture to health care.
Informed by this feedback, agency experience and expertise, as well as developments in the market, law, and economics, the agencies drafted and jointly released a proposed version of the 2023 Merger Guidelines for public comment in July 2023 and received more than 30,000 comments reflecting the views of consumers, workers, academics, interest organizations, attorneys, enforcers, and many others across various sectors of the American economy. The agencies also held three Merger Guidelines Workshops to discuss the draft Merger Guidelines. This engagement informed an in-depth revision process culminating in today’s release of the 2023 Merger Guidelines.
Like the prior horizontal and vertical merger guidelines they replace, the 2023 Merger Guidelines are not themselves legally binding, but provide transparency into the agencies’ decision-making process.
The 2023 Merger Guidelines do not predetermine enforcement action by the agencies. Although the Merger Guidelines identify the factors and frameworks the agencies consider when investigating mergers, the agencies’ enforcement decisions will necessarily depend on the facts in any case and will continue to require prosecutorial discretion and judgment.
Justice Department Launches National Law Enforcement Accountability DatabaseRead the Press Release
As directed by Executive Order 14074, Advancing Effective, Accountable Policing and Criminal Justice Practices to Enhance Public Trust and Public Safety, the Justice Department today launched the National Law Enforcement Accountability Database (NLEAD), a centralized repository of official records documenting instances of misconduct as well as commendations and awards for federal law enforcement officers. The NLEAD is accessible only to authorized users to help determine suitability and eligibility of candidates for law enforcement positions. As required by the Executive Order, on an annual basis, the Justice Department’s Bureau of Justice Statistics (BJS) will publish a public report containing aggregated and anonymized data to maintain transparency and accountability.
“No law enforcement agency — including the Justice Department — can effectively do its work without the trust of the public,” said Attorney General Merrick B. Garland. “This database will give our law enforcement agencies an important new tool for vetting and hiring officers and agents that will help strengthen our efforts to build and retain that trust.”
“This database will make policing safer and more effective by strengthening trust between law enforcement officers and the communities they serve,” said Deputy Attorney General Lisa O. Monaco. “The Justice Department and law enforcement agencies throughout the federal government are committed to ensuring that the database strengthens hiring practices while protecting the safety, due process rights, and privacy of law enforcement officers.”
“The NLEAD will help ensure that federal hiring officials have the most accurate and important information when making hiring decisions,” said Associate Attorney General Vanita Gupta. “This database, along with our work to expand access to this information at the state and local level, is a significant step forward in increasing transparency and accountability, and in enhancing police-community trust.”
The NLEAD connects all federal law enforcement agencies under one accountability infrastructure. With the NLEAD, law enforcement agency hiring personnel will have more accurate and complete information about misconduct in a job candidate’s past. Agencies can then make more informed hiring decisions, which enhances both accountability and public safety.
As of today, the database includes records for the Department’s law enforcement officers. Pursuant to the Executive Order, by Feb. 16, 2024, other executive branch federal law enforcement agencies will report data for their law enforcement officers to the database. The database will include records of instances of misconduct for current and former federal law enforcement officers that occurred over the past seven years, and the Department will conduct regular periodic compliance reviews to assess data quality. In order to support similar law enforcement officer accountability efforts at the state and local level, the Department has also partnered with the International Association of Directors of Law Enforcement Standards and Training (IADLEST). IADLEST’s National Decertification Index (NDI) is a national registry of law enforcement de-certification and revocation actions relating to officer misconduct that is currently used by all 50 states and D.C. The Department is working with IADLEST to expand the NDI to include additional categories of information required by the Executive Order. The Department is also awarding discretionary grants in a manner that supports and promotes the adoption of the Executive Order’s policies by state and local agencies, including language outlining priority consideration for applicants who use the NDI as part of their hiring and vetting of new officers.
As part of the Justice Department’s ongoing work to improve public safety and advance accountability in law enforcement, the Department has contributed to more than 90 Executive Order steps, including issuing 18 reports and guidance documents, which can be found on the Office of Legal Policy’s webpage. More information can be found on the NLEAD website.
Joint Statement from the Departments of Justice and Homeland Security Assessing the Impact of Foreign Interference During the 2022 U.S. Mid-Term ElectionRead the Press Release
Note: View a copy of the report here.The Department of Justice, including the FBI, and the Department of Homeland Security (DHS), including the Cybersecurity and Infrastructure Security Agency (CISA), released today a report with key findings and recommendations from a classified joint report to the President issued earlier this year on addressing the impact of foreign governments and their agents on the security and integrity of the infrastructure relied upon in the 2022 U.S. federal elections. The declassified report is consistent with CISA’s November 2022 statement on the security of the 2022 mid-term election and reaffirms that the departments found no evidence that any foreign government-affiliated actor compromised the security or integrity of any election infrastructure.
The report was developed pursuant to section 1(b) of Executive Order 13848, Imposing Certain Sanctions in the Event of Foreign Influence in a United States Election (the E.O.), issued on September 12, 2018, and relies upon a classified assessment of the 2022 federal election that was prepared by the Office of the Director of National Intelligence (ODNI), pursuant to section 1(a) of the E.O. The Departments of Justice and Homeland Security release of the declassified 1(b) report follows ODNI’s release of a declassified version of the 1(a) report on Dec. 18, 2023. The section 1(a) report, as required by the E.O., assesses information indicating that a foreign government, or any person acting as an agent of or on behalf of a foreign government, has acted with the intent or purpose of interfering in the 2022 U.S. federal election, but it does not assess the impact of any such efforts on the outcome of the election. In contrast, the section 1(b) report analyzes the extent to which foreign interference targeting election infrastructure or infrastructure of, or pertaining to, political organizations, candidates, or campaigns, materially affected the security or integrity of that infrastructure, the tabulation of votes, or the timely transmission of election results. The section 1(b) report does not address the impact of efforts to sway voters or influence opinion.
While the government detected some foreign government-affiliated and criminal cyber activity targeting election infrastructure, including activity by suspected People’s Republic of China cyber actors and activity claimed by pro-Russian hacktivists, there is no evidence that this activity prevented voting, changed votes, or disrupted the ability to tally votes or to transmit election results in a timely manner; altered any technical aspect of the voting process; or otherwise compromised the integrity of voter registration information or any ballots cast during the 2022 federal elections.
Additional identified activity involved Russian, Iranian, and Chinese government-affiliated cyber actors scanning and, in some instances, accessing political campaign infrastructure, that is, information and communications technology and systems used by, on behalf of, or closely associated with a political organization, campaign, or candidate. However, there is no evidence that any information obtained through such activity was used in any foreign influence operation or was otherwise deployed, modified, or destroyed.
During the 2022 Federal election cycle, federal, state, local, and territorial governments, as well as private sector partners, worked together to improve cybersecurity, partnerships, and public messaging that enhanced the security and resilience of election infrastructure. The section 1(b) report includes recommendations to continue such efforts throughout the 2024 Federal election cycle.
The Department of Justice and the Department of Homeland Security remain committed to continuously strengthening the nation’s cybersecurity, critical infrastructure, supply chain risk management, public-private partnerships, and election literacy to enhance the resiliency of our democratic institutions ahead of the 2024 Federal election cycle.
Illegal Possession of Firearm and Later Possession of Ammunition Land Felon in Federal Prison for 25 YearsRead the Press Release
OKLAHOMA CITY – Last week, CAMERON WATKINS, 31, of Oklahoma City, was sentenced to serve 25 years in federal prison for illegal possession of a firearm in October 2021 and illegal possession of ammunition in July 2022, after a previous felony conviction, announced U.S. Attorney Robert J. Troester.
On December 19, 2022, a federal grand jury returned a two-count Superseding Indictment against Watkins, charging him with illegal possession of a firearm, and separately with illegal possession of ammunition, after a previous felony conviction.
According to court documents, Watkins was found to be in possession of a loaded handgun with an extended magazine during an interaction with Oklahoma City Police officers on October 7, 2021, where he barricaded himself in a hotel room. Further, according to court records, Watkins is a known gang member, and was directly involved in a violent conflict between rival gangs beginning in the summer of 2022. Public documents allege Watkins was present for at least three shootings during the conflict. According to witness testimony at a federal jury trial, Watkins shot and killed a metro man on July 20, 2022.
On April 10, 2023, Watkins pleaded guilty to being a felon in possession of a firearm in October 2021. On April 14, 2023, a federal jury returned a guilty verdict against Watkins for being a felon in possession of ammunition in July 2022.
Public records further reflect that Watkins holds multiple prior felony convictions, including possession of phencyclidine, a controlled substance, in Oklahoma County District Court Case No. CF-2011-6648, and trafficking illegal drugs – cocaine base, possession of an offensive weapon while committing a felony, and concealing stolen property in Oklahoma County District Court Case No. CF-2012-6406.
At the sentencing hearing last week, U.S. District Judge David L. Russell sentenced Watkins to serve the statutory maximum of 25 years in federal prison. In announcing the sentence, Judge Russell noted the jury’s verdict directly implicating Watkins in the murder and stressed the need to protect the public.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Oklahoma City Police Department, and the Oklahoma State Bureau of Investigation. Assistant U.S. Attorneys Jacquelyn M. Hutzell, David M. McCrary, and Mary E. Walters prosecuted the case.
This case is also part of “Operation Shots Fired.” Operation Shots Fired targets cases involving individuals who discharge firearms as part of their criminal activity, such as drive-by shootings or when shots are fired during robberies, domestic disputes, or other incidents. For more information about Project Safe Neighborhoods, please visit https://justice.gov/psn and https://justice.gov/usao-wdok.
Reference is made to public filings for additional information
Illegal Firearms Possession Lands Metro Felon in Federal Prison for More Than 12 YearsRead the Press Release
OKLAHOMA CITY – Last Week, DARRICK LAMONT SMITH, also known as William Louis McCollum, 48, of Oklahoma City, was sentenced to serve 150 months in federal prison for illegally possessing firearms after previous felony convictions, announced U.S. Attorney Robert J. Troester.
On October 19, 2022, a federal grand jury returned a four-count Superseding Indictment against Smith, charging him with three counts of being a felon in possession of firearms and one count of possession of an unregistered silencer. According to the Superseding Indictment, on separate occasions in January 2022, Smith possessed a total of six firearms and an unregistered silencer. Several of the firearms were found to have been previously stolen and Smith also possessed multiple high-capacity magazines, including a 50-round drum.
On February 23, 2023, Smith pleaded guilty to two counts of being a felon in possession of a firearm. As part of his plea, Smith admitted that he possessed firearms despite his criminal record.
At the sentencing hearing on December 13, 2023, U.S. District Judge Charles B. Goodwin sentenced Smith to serve 150 months in federal prison, followed by three years of supervised release. In announcing his sentence, the Court noted Smith’s demonstrated willingness to commit violence, further articulating a need to protect the public and deter continued criminal activity. The Court also noted Smith’s lengthy history of drug and firearm offenses.
Public records reflect that Smith has multiple felony convictions, including possession of cocaine base with intent to distribute in Oklahoma County District Court case number CF-1992-6772; assault and battery with a dangerous weapon in Oklahoma County District Court case number CF-1999-3338; aggravated robbery in Wichita County, Texas, District Court case number CF-2000-6087; and possession of a firearm after felony conviction and possession of a controlled dangerous substance in Oklahoma County District Court case number CF-2014-1776.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Oklahoma City Police Department. Assistant U.S. Attorney Danielle M. Connolly prosecuted the case.
This case is part of Project Safe Neighborhoods, a Department of Justice program to reduce violent crime. In October 2017, the Department announced the reinvigoration of Project Safe Neighborhoods and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001. For more information about Project Safe Neighborhoods, please visit https://justice.gov/psn and https://justice.gov/usao-wdok.
Reference is made to public filings for additional information.
Ideal Man Sentenced for Sexual Abuse of a MinorRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced an Ideal, South Dakota, man convicted of Sexual Abuse of a Minor. The sentencing took place on December 11, 2023.
Braeden McLean, age 21, was sentenced to all time served through January 17, 2024, equal to approximately 10 months in custody, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
McLean was indicted by a federal grand jury in May of 2023. He pleaded guilty on September 14, 2023.
The conviction stems from conduct that occurred in March of 2023 in Tripp County, South Dakota, wherein McLean engaged in a sexual relationship with a 14-year-old girl. The girl’s family subsequently became aware of the relationship and reported McLean to the Winner Police Department.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Winner Police Department. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
McLean was immediately remanded to the custody of the U.S. Marshals Service.
Huntington Woman Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Valerie June Damron, 63, of Huntington, was sentenced today to seven years and three months in prison, to be followed by three years of supervised release, for distribution of a quantity of a mixture and substance containing methamphetamine.
According to court documents and statements made in court, on October 11, 2022, Damron sold approximately 1 ounce of methamphetamine to a confidential informant at her Seventh Avenue residence. Damron admitted to that transaction and to selling quantities of methamphetamine totaling approximately 69 grams on three occasions between October 14 and October 19, 2022. Damron further admitted that the quantities of fentanyl were mixed in with the methamphetamine sold in two of those additional transactions.
On October 20, 2022, law enforcement officers executed a search warrant at Damron’s residence and seized approximately 122 grams of methamphetamine, 20.5 grams of fentanyl and multiple firearms including a Davis Industries .22-caliber pistol, a Smith & Wesson 9mm pistol, and a FT 9mm pistol. Damron admitted that she intended to distribute the controlled substances.
On February 2, 2023, investigators arrested Damron at her residence and seized approximately 211 grams of methamphetamine, 3.5 grams of fentanyl and a Kel-Tex .380-caliber pistol. Damron told the investigators that she had been previously supplied with 2 to 3 pounds of methamphetamine on multiple occasions by another individual.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Joseph F. Adams and Stephanie Taylor prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-19.
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Huntington Man Sentenced to 12 Years in Prison for Federal Gun Crime and Violating Supervised ReleaseRead the Press Release
HUNTINGTON, W.Va. – Thomas Ray III, 54, of Huntington, was sentenced today to 12 years in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm and violating his supervised release.
A federal jury found Ray guilty of being a felon in possession of a firearm on July 12, 2023, following a two-day trial. Evidence at trial showed that on October 23, 2020, Ray possessed a firearm that he discharged multiple times, including at law enforcement officers, during and after a domestic disturbance in the area of 17th Street and Artisan Avenue in Huntington.
Ray had arrived at an Artisan Avenue residence where he struck two women, brandished a firearm, pointed it at the forehead of a third woman and fired two rounds into the air. Officers responding to the resulting 911 calls located Ray in an alley several blocks from Artisan Avenue. Ray fired a round at one officer and continued to flee. Ray fired several more shots at officers while fleeing before they returned fire and wounded him in the leg.
Ray was still holding the firearm while on the ground and resisted being placed into custody. Officers recovered the firearm, a loaded Smith & Wesson Model M&P Shield .40-caliber pistol, after Ray tossed it to the ground. Officers also found .40-caliber ammunition and a Harrington and Richardson revolver in Ray’s pants pockets.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Ray knew he was prohibited from possessing a firearm because of his prior felony convictions for Forcible Detention/Armed and Give False Bomb/Gas Alarm in Will County, Illinois, Circuit Court on February 28, 2012, and for possession of a firearm by a convicted felon in United States District Court for the Southern District of West Virginia on December 9, 2013.
At the time of this offense, Ray was serving a term of federal supervised release for the 2013 conviction. Today’s prison sentence includes two years for committing a crime while on supervised release.
“Mr. Ray has a significant criminal history and his actions in this case threatened law enforcement officers and other individuals with a substantial risk of serious harm,” said United States Attorney Will Thompson. “Today’s sentence is warranted and appropriate.”
Thompson made the announcement and commended the investigative work of the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Joseph F. Adams and Stephanie Taylor 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-57.
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Huntington Man Pleads Guilty to Federal CrimeRead the Press Release
HUNTINGTON, W.Va. – Thomas Donnell Shaw, 30, of Huntington, pleaded guilty today to possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, on March 4, 2021, Shaw was a passenger in a vehicle stopped by a law enforcement officer. The traffic stop resulted in a search of the vehicle, and officers found a FNH model FNS-40 .40-caliber pistol and a quantity of methamphetamine. Shaw admitted that he possessed the methamphetamine with the intent of distributing it within the Southern District of West Virginia. Shaw further admitted that he possessed the firearm in part to protect himself, the drugs and his drug proceeds.
Shaw is scheduled to be sentenced on April 1, 2024, and faces a mandatory minimum of five years and up to life in prison, five years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys J.C. MacCallum and Ryan A. Keefe are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-194.
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Houston Woman Sentenced to 4 Months of Probation for Cares Act Fraud and Theft of Government FundsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that TEMIKA SANTEMORE, age 44, a resident of Houston, Texas, was sentenced on December 12, 2023 to four months of probation by U.S. District Court Judge Jay C. Zainey after previously pleading guilty to making false statements and theft of government funds related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
The CARES Act is a federal law enacted on March 29, 2020, to provide emergency financial assistance in connection with economic effects of the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program (“PPP”). In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
In addition, the Economic Injury Disaster Loan (“EIDL”) program was a U.S. Small Business Administration (SBA) program that provided low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters. The CARES Act provided funding for EIDL loans for business affected by the COVID-19 pandemic. In contrast to the PPP, EIDL loan amounts were determined based on the recipient businesses’ historical revenue and disbursed directly to the recipient by the SBA.
According to the charging documents, SANTEMORE made false statements to the SBA to fraudulently obtain approximately $13,540 in pandemic-related relief loans, including PPP funds, that were funded by the federal government. SANTEMORE also applied for an EIDL from the SBA in July of 2020 and illegally received $5,000 for a dormant business that she owned.
In addition to probation, SANTMORE was ordered to pay a $200 mandatory special assessment, serve 150 hours of community service and pay restitution in the amount of $187,027.86.
For more information on the Department of Justice’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Evans praised the work of the Amtrak Office of Inspector General – Criminal Investigations, the Department of Labor – Office of the Inspector General, and the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Edward J. Rivera of the Financial Crime Unit is in charge of the prosecution.
Holdenville Resident Sentenced for Federal Firearms CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kotah Ray Armstrong, age 30, of Holdenville, Oklahoma, was sentenced to twelve months in prison for one count of Felon in Possession of a Firearm.
The charge arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Oklahoma Department of Corrections Office of Probation and Parole.
On November 10, 2022, Armstrong pleaded guilty to one count of Felon in Possession of a Firearm. On April 7, 2022, during a home visitation by Oklahoma DOC Probation and Parole officers, Armstrong was discovered to be in possession of a 12-gauge pump action shotgun. Armstrong admitted to possessing the shotgun despite knowing he was prohibited from possessing firearms as a convicted felon.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings in Muskogee. Armstrong will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Joshua Satter represented the United States.
Hilo Man Arrested for Child Pornography ViolationRead the Press Release
HONOLULU –Kalana Limkin, age 18, of Hilo, made his initial appearance in United States District Court today before United States Magistrate Judge Rom Trader, following his arrest for violating child pornography law. He was ordered detained pending a detention hearing on December 21. The charge against Limkin was contained in a criminal complaint filed in federal court and unsealed upon his arrest.
The complaint and affidavit allege that Limkin was identified as the founder of a group, “Cultist”, which focused on specific behaviors, such as promoting child pornography, child exploitation, sexual extortion, and trafficking and self-harm of minors. Limkin allegedly uploaded multiple child pornography image files.
On September 12, 2023, the FBI issued a public notice (Violent Online Groups Extort Minors to Self-Harm and Produce Child Sexual Abuse Material) about groups that are “deliberately targeting minor victims on publicly available messaging platforms to extort them into recording or livestreaming acts of self-harm and producing child sexual abuse material.”
The FBI advises persons who believe they may be victims of a crime using these types of tactics, should retain all information regarding the incident (e.g., usernames, email addresses, websites or names of platforms used for communication, photos, videos, etc.) and immediately report it to:
FBI's Internet Crime Complaint Center at www.ic3.gov
FBI Honolulu Field Office [808-566-4300 or 1-800-CALL-FBI (225-5324)]
National Center for Missing and Exploited Children (1-800-THE LOST or www.cybertipline.org).
If indicted and convicted of the offense in the complaint, the defendant would face a mandatory minimum term of five years and up to 20 years in prison. The charges and information contained in the federal complaint are merely accusations, and the defendant is presumed innocent unless and until indicted and proven guilty beyond a reasonable doubt in a court of law.
The FBI and Hawaii County Police Department conducted the investigation resulting in the arrest. The prosecution is being handled by Assistant U.S. Attorney Mohammad Khatib.
Hartford Man Sentenced to Federal Prison for Gun OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that AARON CHRISTIAN, 30, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 21 months of imprisonment, followed by three years of supervised release, for a firearm offense that followed a gang-related shootout.
According to court documents and statements made in court, on April 18, 2022, after an unidentified shooter, who is suspected of being a member of a rival gang, opened fire at individuals who were standing in a parking lot outside of a memorial gathering in Hartford, surveillance cameras at the location recorded at least nine individuals drawing firearms, and some of them returned fire. Shot Spotter technology recorded approximately 50 shots fired within approximately 90 seconds in and around the location, and law enforcement recovered at least 31 shell casings from the scene. It is alleged that Christian was present at the memorial gathering and was recorded on video firing at the fleeing assailant.
Following the shooting, Hartford Police obtained a warrant for Christian’s arrest. On July 14, 2022, officers encountered Christian standing with others outside of a smoke shop located at 390 Franklin Avenue in Hartford. As officers approached, Christian fled and attempted to throw a handgun onto the roof of the business. The gun struck the awning of the business and fell to the sidewalk. Christian was apprehended and officers recovered a loaded Ruger Model LCP .380 pistol from the sidewalk.
Christian’s criminal history includes state felony convictions for drug, larceny and threatening offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Christian has been detained since his arrest. On July 14, 2023, he pleaded guilty to unlawful possession of a firearm by a felon.
State charges against Christian related to his alleged conduct on April 18, 2022 are pending.
This investigation is being conducted by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and Robert S. Dearington
U.S. Attorney Avery thanked the Hartford State Attorney’s Offices for its cooperation in the investigation and prosecution of this matter.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Grand Island Man Sentenced to 50 Months for Distributing MethamphetamineRead the Press Release
Acting United States Attorney Susan Lehr announced that Felix Chacon, 61, of Grand Island, Nebraska, was sentenced on December 18, 2023, in federal court in Lincoln, Nebraska for distribution of methamphetamine. Senior United States District Court Judge John M. Gerrard sentenced Chacon to 50 months’ imprisonment. There is no parole in the federal system. After Chacon’s release from prison, he will begin a 5-year term of supervised release.
In February 2018, Chacon twice met with an informant and sold the informant methamphetamine during controlled purchases which were monitored and recorded by police. In total, Chacon sold the informant 57 grams of actual or pure methamphetamine. Chacon pleaded guilty to his offense on August 30, 2023.
Chacon’s sentencing included an enhancement for obstruction of justice. After his initial arrest on the charges in this case, Chacon was released from custody pending trial. However, Chacon failed to appear for trial on July 26, 2021. He was later arrested in January 2023 in New Mexico. Because he failed to appear for trial and absconded, an enhancement under the U.S. Sentencing Guidelines applied.
This case was investigated by the Trident Drug Task Force. The members of that task force include the Grand Island Police Department, Hall County Sheriff’s Department, Kearney Police Department, Buffalo County Sheriff’s Department, Hastings Police Department, Adams County Sheriff’s Department, the Nebraska State Patrol, and the Federal Bureau of Investigation.
Georgetown Restauranteurs Sentenced to Prison for Tax Offenses and Theft of COVID-19 Relief FundsRead the Press Release
WASHINGTON – Gholam “Tony” Kowkabi, 63, and Karen Kowkabi, 64, of Vienna, Va., were sentenced in federal court today to 57 months in prison and 24 months of probation, respectively, for tax offenses relating to their failure to pay more than $1.35 million of taxes arising from their operation of several restaurants in the Washington, D.C. area. Gholam Kowkabi was also sentenced for stealing more than $738,000 from the emergency small business relief funds his Georgetown restaurant—Ristorante Piccolo—received during the COVID-19 pandemic. As part of his guilty plea, Mr. Kowkabi acknowledged having spent money intended to help his business on a waterfront condo in Ocean City, Md., as well as personal investments, vacations for his family, and college tuition for his adult children.
The announcement was made by U.S. Attorney Matthew Graves, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, and Special Agent in Charge Kareem Carter of the Internal Revenue Service (IRS)-Criminal Investigation, Washington, D.C. Field Office.
Gholam Kowkabi pleaded guilty on Aug. 14, 2023, in the U.S. District Court for the District of Columbia to wire fraud and tax evasion. He was sentenced by the Honorable Reggie B. Walton. Following his prison term, Gholam Kowkabi will be placed on three years of supervised release. Gholam Kowkabi must pay $1,351,038.51 in restitution to the IRS and $738,657.18 in restitution to the Small Business Administration. In addition, the judge ordered the forfeiture of the Ocean City condominium, interest in multiple joint ventures, and a money judgment in the amount of $738,657.18.
Karen Kowkabi pleaded guilty on Aug.14, 2023, in the U.S. District Court to five counts of willfully failing to pay taxes. She also was sentenced by the Honorable Reggie B. Walton who ordered her to pay $1,351,038.51 in restitution to the IRS, owed jointly with Gholam Kowkabi.
The Tax Evasion Scheme
According to the statements of offense submitted to the Court and admitted by Gholam Kowkabi and Karen Kowkabi, the Kowkabis have owned and operated Ristorante Piccolo in Georgetown since 1986. The Kowkabis also owned and operated restaurants Catch 15 and Tuscana West in Washington, D.C. From 1998 to 2018, the Kowkabis amassed an unpaid tax balance of $1,351,038.51, including federal income and employment taxes and Trust Fund Recovery Penalties. Gholam Kowkabi admitted to willfully attempting to evade payment of those taxes by concealing assets and obscuring the large sums of money he took from the businesses by, among other means, purchasing property in the name of a nominee entity and causing false entries in the businesses’ books and records to hide personal purchases using business bank accounts. Karen Kowkabi also admitted that she willfully failed to pay these taxes owed to the IRS.
The Scheme to Steal COVID-19 Relief Funds
Further, from May 13, 2020, to July 27, 2021, Gholam Kowkabi obtained more than $1.6 million in COVID-19 relief funds, including $474,000 from first draw and second draw Paycheck Protection Program (PPP) loans, an Economic Injury Disaster Loan (EIDL) for $499,900 and a Restaurant Revitalization Fund (RRF) grant for $631,823.28.
First Draw PPP loans were to be used to help fund payroll costs, including benefits, and could also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. Second Draw PPP loans were to be used to help fund payroll costs, including benefits. Second Draw PPP loan funds could also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. EIDL loan proceeds could be used for working capital to make regular payments for operating expenses, including payroll, rent/mortgage, utilities, and other ordinary business expenses, and to pay business debt. Restaurant Revitalization Funds could be used for specific expenses including business payroll costs (including sick leave), payments on any business mortgage obligation, business rent payments (not including prepayment), business debt service (not including prepayment), both principal and interest, business utility payments, business maintenance expenses, construction of outdoor seating, business supplies, business food and beverage expenses, covered supplier costs, business operating expenses.
In these applications and loan agreements, Gholam Kowkabi fraudulently and falsely promised that the PPP, EIDL, and RRF proceeds would be used solely for business-related and eligible purposes as specified in the applications. Instead, Gholam Kowkabi used a portion of the PPP funds, EIDL funds, and RRF funds for unauthorized purposes and for his own personal enrichment, including the purchase of a waterfront condo in Ocean City, Md., for more than $500,000, two joint venture investments totaling more than $250,000 for the construction of homes in Great Falls, Va., and more than $78,500 to open Divan Restaurant in McLean, Va. Gholam Kowkabi further spent more than $11,000 of COVID-19 relief funds on his home mortgage, more than $14,000 on vacations, more than $62,000 on personal legal expenses, more than $20,000 on home improvements, and more than $5,500 on college tuition payments.
In announcing the sentence, U.S. Attorney Graves, Acting Deputy Assistant Attorney General Goldberg, and Special Agent in Charge Carter commended the work of those who investigated the case from IRS-CI. They expressed thanks for the assistance provided by the SBA Office of Inspector General during the investigation of this case. This case is being prosecuted by Assistant U.S. Attorney Leslie A. Goemaat of the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office and Trial Attorney Sarah Ranney of the Department of Justice, Tax Division.
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On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of fraud related to COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Framingham Man Pleads Guilty to Illegally Possessing Two Firearms and AmmunitionRead the Press Release
BOSTON – A Framingham man pleaded guilty today in federal court in Boston to unlawfully possessing a firearm and ammunition as a convicted felon.
Edwin Alago, 42, pleaded guilty to one count of possessing a firearm in furtherance of a drug trafficking crime. U.S. District Judge Denise J. Casper scheduled sentencing for March 12, 2024. Alago was indicted by a federal grand jury in June 2023 after being previously arrested on related state charges.
In May 2021, Alago possessed a SCCY .9mm CPX-2 semi-automatic pistol bearing a defaced serial number and seven rounds of .9mm ammunition. Due to previous felony convictions for drug distribution and possession and assault with a dangerous weapon, Alago is prohibited from possessing firearms.
The charge of possessing a firearm in furtherance of a drug trafficking crime provides for a sentence of up to life in prison and no less than five years in prison, up to five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the Middlesex County District Attorney’s Office and the Framingham Police Department. Assistant United States Attorneys Meghan C. Cleary and Brian Sullivan of the Major Crimes Unit are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department 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.
Four Todd County Men Sentenced in Assaulting a Federal Officer CaseRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced four Todd County, South Dakota men in a case that involved charges of Assaulting, Resisting, and Impeding a Federal Officer and Using and Carrying a Firearm During and in Relation to a Crime of Violence.
Kevin Bordeaux, age 24, of Mission, South Dakota, pleaded guilty on May 15, 2023, to Assault With a Dangerous Weapon; Assaulting, Resisting and Impeding a Federal Officer; and Using and Carrying a Firearm During and in Relation to a Crime of Violence. On August 17, 2023, Bordeaux was sentenced to 18 years in federal prison, followed by three years of supervised release, and ordered to pay a $300 special assessment to the Federal Crime Victims Fund.
Carston Eagle Deer, age 22, of Rosebud, South Dakota, pleaded guilty on August 14, 2023, to two counts of Assaulting, Resisting and Impeding a Federal Officer; and one count of Using and Carrying a Firearm During and in Relation to a Crime of Violence. On November 13, 2023, he was sentenced to 10 years and six months in federal prison, followed by three years of supervised release, and ordered to pay a $300 special assessment to the Federal Crimes Victim Fund.
Gervis Fool Bull, age 29, of Mission, South Dakota, pleaded guilty on May 22, 2023, to Assaulting, Resisting and Impeding a Federal Officer and Aiding and Abetting; and Obstructing Justice by Retaliating Against a Witness. On August 14, 2023, Fool Bull was sentenced to six years in federal prison, followed by three years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Julian Moran, a/k/a Jullian Moran, age 29, of Mission, South Dakota, pleaded guilty on May 22, 2023, to Assaulting, Resisting, and Impeding a Federal Officer and Aiding and Abetting. On December 11, 2023, Moran was sentenced to all time served through December 21, 2023, equal to approximately 18 months in custody, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The defendants were further ordered to pay restitution of $8,081.40, jointly and severally, for damage caused to a Tripp County Sheriff’s Office vehicle.
On the evening of July 6, 2022, Bordeaux got into a confrontation with his girlfriend at a residence in Todd County. Bordeaux produced a handgun and fired a single shot, striking his girlfriend in the area of her right hip. Bordeaux then departed the scene in a vehicle with Eagle Deer. A short time later, Rosebud Sioux Tribe Law Enforcement Services (RSTLES) officers responded to a call for service from a provider at the Rosebud Indian Health Service (IHS) Hospital in Rosebud, who reported a woman had just arrived at the hospital after being shot by Bordeaux. The officers obtained a description of Bordeaux’s vehicle but were not able to locate him that evening.
On the morning of July 8, 2022, RSTLES officers were patrolling in Mission when they observed Bordeaux’s vehicle parked near an apartment building. Moran was standing next to the vehicle, Bordeaux was in the driver seat, Eagle Deer was in the front passenger seat, and Fool Bull was in the rear passenger seat. The officers approached and ordered Moran to show his hands. Moran refused commands and instead got into the rear passenger seat of the vehicle. Bordeaux then started the vehicle and drove away. The RSTLES officers pursued Bordeaux’s vehicle at high speeds from Mission heading east on U.S. Highway 18. The pursuit continued onto a gravel road, at which point Bordeaux and Eagle Deer produced handguns and began firing at the pursuing officers. Bordeaux and Eagle Deer then threw their handguns out the window. As the pursuit approached Winner, South Dakota, the RSTLES officers coordinated with deputies from the Tripp County Sheriff’s Office (TCSO) and officers from the Winner Police Department. Moran and Fool Bull threw items from the vehicle during the pursuit for the purpose of obstructing and interfering with the pursuing officers. During the pursuit, Bordeaux rammed a TCSO vehicle. The pursuit ended when a TCSO vehicle made contact with Bordeaux’s vehicle, causing it to spin out of control and into the ditch. All four defendants were placed under arrest.
On October 17, 2022, Fool Bull was in pretrial detention in the Winner City Jail when he approached another inmate and assaulted that inmate for providing information to law enforcement.
In January of 2023, Eagle Deer was on pretrial release when an arrest warrant was issued for violating the conditions of his release and absconding from supervision. Eagle Deer’s whereabouts were subsequently unknown until May 13, 2023. On the morning of May 13, 2023, a RSTLES officer was patrolling in Mission when he observed Eagle Deer’s vehicle. Eagle Deer attempted to drive away but became stuck. Eagle Deer ignored the officer’s commands to surrender and instead fled his vehicle on foot. The officer caught up to Eagle Deer after a short pursuit, but Eagle Deer physically resisted and attempted to put the officer in a headlock. The officer subsequently escorted Eagle Deer to the ground and placed him under arrest.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case was investigated by the FBI, RSTLES, TCSO, and the Winner Police Department. Assistant U.S. Attorney Kirk Albertson 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.
Bordeaux, Eagle Deer, Fool Bull, and Moran were immediately remanded to the custody of the U.S. Marshals Service at the conclusion of their individual sentencings.
Founder and Managing Director of Tax Lien Investment Firm Charged with Bank Fraud and Wire FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of JOHN ARTHUR HANRATTY for charges in connection with a fraudulent scheme to steal money from a Federal Deposit Insurance Corporation (“FDIC”)-insured bank through lines of credit totaling $20 million granted to HANRATTY’s municipal tax lien investment firm. HANRATTY was arrested this morning and is expected to be presented today before a U.S. Magistrate Judge in the District of Puerto Rico.
U.S. Attorney Damian Williams said: “John Arthur Hanratty, a New York-licensed attorney and the founder of a multi-million-dollar municipal tax lien investment firm, allegedly stole money from a bank to obtain lines of credit totaling $20 million, which he misappropriated by paying back investors who had sued his firm. Thanks to this Office’s teamwork with the FBI, Hanratty is now facing serious criminal charges for his alleged fraud.”
FBI Assistant Director in Charge James Smith said: “Fraudsters are very good at what they do. They are extremely convincing and will jump at every opportunity to defraud a new pool of potential victims. John Hanratty allegedly prioritized his own greed over decency and respect for the laws of our country. The FBI and our law enforcement partners remain dedicated to investigating and holding accountable those who flagrantly disregard our laws by seeking to enrich themselves at the expense of their victims.”
According to the allegations in the Complaint unsealed today in Manhattan federal Court:[1]
HANRATTY was the Founder and Managing Director of Ebury Street Capital, LLC (“Ebury Street Capital”), an investment firm with a portfolio primarily comprised of municipal tax liens. At all relevant times, HANRATTY served as the Managing Director and Principal for Ebury Street Capital, which manages two different funds known as Ebury Fund 1 and Ebury Fund 2. HANRATTY has been an attorney licensed to practice law in the State of New York since 2002 and has previously held legal and compliance positions at well-known investment firms and financial institutions, including serving as the Chief Compliance Officer and General Counsel for a trading broker dealer.
Between 2017 and 2021, HANRATTY participated in a fraudulent scheme to steal money from an FDIC-insured bank (“Victim Bank-1”) by drawing down on $20 million in commercial lines of credit that had been extended to Ebury Street Capital. Specifically, HANRATTY made materially false statements on spreadsheets (known as “borrowing base certificates”) submitted to Victim Bank-1 summarizing the value of the municipal tax liens that Ebury Street Capital was offering as collateral for its commercial line of credit. As a result of these false statements on Ebury Street Capital’s borrowing base certificates, Victim Bank-1 paid Ebury Street Capital large sums of money to which it was not entitled. The false statements on Ebury Street Capital’s borrowing base certificates included, among other things, listing large quantities of municipal tax liens on the borrowing base certificates that Ebury Street Capital did not actually own and double-counting municipal tax liens by listing the same liens on multiple borrowing base certificates.
Additionally, although Ebury Street Capital was contractually required to use money from Victim Bank-1 either to purchase municipal tax liens or for ordinary business expenses, HANRATTY actually used portions of the money obtained from Victim Bank-1 to pay off Ebury Street Capital’s investors who were threatening to sue and who, in fact, ended up suing Ebury Street Capital and HANRATTY after Ebury Street Capital was unable to pay investors who were seeking to pull out their investments from the fund.
Ebury Street Capital’s commercial line of credit has now been completely exhausted, and the entity owes over $20 million in principal and interest to Victim Bank-1.
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HANRATTY, 49, of San Juan, Puerto Rico, is charged with one count of wire fraud affecting a financial institution and one count of bank fraud, each of which carries a maximum sentence of 30 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the investigative work of the FBI. Mr. Williams also thanked the FBI Field Office in San Juan for their assistance in the investigation of this case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Andrew K. Chan and Nicholas Chiuchiolo are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint constitutes only allegations, and every fact described herein should be treated as an allegation.
Fort Thompson Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Fort Thompson, South Dakota, man convicted of Failure to Register as a Sex Offender. The sentencing took place on December 11, 2023.
Mark Fleury, age 48, was sentenced to six months in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Fleury was indicted by a federal grand jury in July of 2023. He pleaded guilty on September 14, 2023.
Fleury was convicted of Abusive Sexual Contact in 2004. As a result of this conviction, he is required to register as a sex offender and to update his registration within three business days of relocation or changing employment. On May 13, 2023, Fleury moved from his registered address in Fort Thompson to an address in Sioux Falls, South Dakota, but he did not update his sex offender registration. Fleury moved back to Fort Thompson on or about May 31, 2023, at which time he updated his registration.
This case was investigated by the U.S. Marshals Service and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Fleury was immediately remanded to the custody of the U.S. Marshals Service.
Former Teacher Convicted of Child ExploitationRead the Press Release
Greenville, Miss. – A former Amory High School teacher was convicted by a federal jury today for sexually exploiting at least seven students over a ten-year period.
According to court documents and evidence presented at trial, Toshemie Wilson, 48 years old, of Wren, Mississippi, was found guilty of eight counts of using students to produce sexually explicit material while he was a teacher at Amory High School. Wilson used his position as an advisor for the student group Technology Students of America to groom students to eventually produce child sexual abuse videos and pictures in exchange for money and drugs.
The investigation began when one former student reported the abuse to a counselor. That counselor reported the statement to law enforcement. From there, investigators with the Mississippi Attorney General’s Office and agents from the Federal Bureau of Investigation uncovered at least 10 other former students who alleged similar conduct and payment for sexually explicit videos.
Eight unnamed witnesses testified that Toshemie Wilson approached them to make masturbation videos in exchange for pay between 2005 and 2014. The witnesses identified a number of places Wilson had them make the videos – the school bathroom, an office space rented specifically for this purpose, and the Amory WalMart bathroom. Several of the witnesses stated they were induced to make videos while on out-of-town school trips with the Technology Students of America, a group that Wilson served as advisor.
After he was indicted, agents met with Toshemie Wilson and his attorney where Wilson admitted to having a collection of student sexual abuse materials on a hard drive that he threw away.
Wilson is also under state indictment in the Circuit Court of Monroe County, where charges remain pending.
“Once again, hard work and perseverance by federal, state and local investigators and prosecutors has removed from society an individual with a demonstrable sexual interest in children,” said U.S. Attorney Clay Joyner. “I am extremely proud of Assistant United States Attorneys Parker King and Clyde McGee for their trial work on the case, and thankful for the investigative work of the FBI and the Mississippi Attorney General’s Office…we must all continue to prosecute these offenders to the fullest extent of the law.”
"Preying upon vulnerable students and exploiting their trust and innocence is abhorrent," said Mississippi Attorney General Lynn Fitch. "I am grateful justice is being served, and I hope my team's hard work in investigating and prosecuting this case alongside the FBI and U.S. Attorney's Office demonstrates to these victims that the community values and cares for them and longs to help them on their healing journey."
The Mississippi Attorney General’s Office and the FBI investigated the case.
Assistant U.S. Attorneys Parker S. King and Clyde McGee prosecuted the case.
Former Linkedin Employee Pleads Guilty to Conspiracy to Commit Mail FraudRead the Press Release
SAN FRANCISCO – Kent Laird pleaded guilty in federal court today to two counts of conspiracy to commit mail fraud, announced United States Attorney Ismail J. Ramsey and FBI Special Agent in Charge Robert K. Tripp. The plea was accepted by the Honorable Jaqueline S. Corley, U.S. District Judge.
In pleading guilty, Laird, 50, of Bothell, Washington, admitted that as the Head of Content, Video & Studios for LinkedIn Media Productions (otherwise known as LMP) he became involved in two separate conspiracies and mail fraud schemes involving two independent contractors. Specifically, in June and then in October of 2018, Laird recommended that two independent contractors be hired by LinkedIn to assist him with producing various podcast projects despite knowing that neither person had any professional experience as a podcast producer. Over the course of the next eighteen months, Laird approved a total of 129 false invoices that the independent contractors submitted to LinkedIn. Laird submitted these invoices knowing that the two independent contractors had performed little to no podcast writing and producing work on behalf of LinkedIn. As a result of receiving these false invoices, LinkedIn paid a combined total of $689,210 to the two independent contractors. During the course of the conspiracy, Laird received kickbacks in the amount of $184,050 from the falsely obtained proceeds.
A federal grand jury indicted Laird on February 21, 2023, charging him with two counts of conspiracy to commit mail fraud, in violation of 18 U.S.C. § 1349, and eighteen counts of mail fraud, in violation of 18 U.S.C. § 1341. Under the plea agreement, Laird pleaded guilty to the two conspiracy counts. If he complies with the plea agreement, the remaining counts will be dismissed at sentencing.
Laird faces a maximum sentence of 20 years in prison, a fine of $250,000, plus restitution, if appropriate, for each violation of 18 U.S.C. § 1349. Any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Judge Corley scheduled Laird’s sentencing hearing for March 27, 2024.
Assistant U.S. Attorney Barbara J. Valliere is prosecuting the case with the assistance of Kathy Tat. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Former Lake City, PA Resident Pleads Guilty to Violating Federal Laws Related to the Sexual Exploitation of ChildrenRead the Press Release
ERIE, Pa. - A former resident of Lake City, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney Eric G. Olshan announced today.
William Joseph Leuschen, 38, pleaded guilty to one count before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that from in and around May 2020 to in and around February 2022, Leuschen received and possessed images depicting prepubescent minors, some as young as infants and toddlers, engaging in sexually explicit conduct. As part of his plea, Leuschen agreed to a sentence of 15 years in jail to be followed by ten years of supervised release.
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 (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Baxter scheduled sentencing for April 17, 2024, at 11:00 a.m. The law provides for maximum a total sentence of 40 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Erie County Detectives Bureau and the Erie County Adult Probation and Parole Department conducted the investigation that led to the prosecution of Leuschen.
Former Cook County Land Bank Authority Employee Sentenced to a Year in Federal Prison for Scheming to Fraudulently Purchase and Resell PropertiesRead the Press Release
CHICAGO — A former employee of the Cook County Land Bank Authority (CCLBA) has been sentenced to a year in federal prison for using “straw buyers” to fraudulently purchase and resell properties from the agency on his behalf.
MUSTAFAA SALEH, 37, of Chicago, pleaded guilty earlier this year to a wire fraud charge. U.S. District Judge Andrea R. Wood imposed the year-and-a-day prison sentence during a hearing Friday in federal court in Chicago.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Machelle L. Jindra, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Office of Special Inspector General for Troubled Asset Relief Program, IRS Criminal Investigation Division, Cook County Office of Independent Inspector General, and the Federal Housing Finance Agency’s Office of Inspector General. The government was represented by Assistant U.S. Attorneys Sean Franzblau and Kirsten Moran, and Special Assistant U.S. Attorney Brian Netols.
Saleh worked as an asset manager for the CCLBA, a governmental entity that promoted the redevelopment and reuse of vacant, foreclosed, abandoned, and tax delinquent real estate by acquiring and transferring the property to private ownership. The CCLBA sold the real estate at below-market rates and prohibited the buyers from selling or renting a property until the CCLBA was satisfied that the buyer had adequately improved it. CCLBA employees were prohibited from purchasing a property from the agency unless it would be used for the employee’s primary residence.
From 2016 to 2021, Saleh used nominee or “straw” buyers to fraudulently purchase six properties from the CCLBA on Saleh’s behalf and thereafter redeveloped, resold, and otherwise used the properties for Saleh’s financial benefit. In some instances, Saleh’s duties at the CCLBA allowed him oversight over the same properties he owned and resold. The properties were located in Chicago and the nearby suburbs of Oak Lawn and Midlothian.
In addition to the property fraud scheme, Saleh fraudulently obtained maintenance work from the CCLBA. In 2016, Saleh formed a property maintenance company called Evergreen Property Services and directed another individual to pose as its owner. Over the next three years, Saleh caused the CCLBA to contract with Evergreen and pay it more than $1 million for property maintenance services, even though CCLBA employees were prohibited from having a financial interest in property maintenance companies contracting with the agency.
Former Co-Owners of New Jersey Marketing Company Sentenced to Prison in $8.8 Million Compounded Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – The former co-owners of a New Jersey marketing company were each sentenced today to 12 months and one day in prison for their roles in a scheme to defraud public and private health benefits programs of at least $8.8 million for the billing of medically unnecessary compounded prescriptions, U.S. Attorney Philip R. Sellinger announced.
Lisa Curty, 46, of Staten Island, New York, and Christine Myers, 38, of Phillipsburg, New Jersey, each previously pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to separate informations charging them with conspiracy to commit health care fraud. U.S. District Judge Katharine S. Hayden imposed the sentencing today in Newark federal court.
U.S. Attorney Philip R. Sellinger“These two defendants are just the latest in a long line of schemers who took advantage of publicly and privately funded insurance plans, raiding them for millions of dollars in fraudulent reimbursements for compounded medications. We will continue to prosecute those who take advantage of our health care system to generate illicit income.”
“The volume of cases involving compound medication fraud has moved beyond frustrating for law enforcement, with an arrest, conviction or sentencing happening almost every other day in New Jersey,” FBI – Newark Special Agent in Charge James E. Dennehy said. “The fraudsters committing these crimes aren't paying attention to the fact that everyone doing the same thing is going to federal prison. This is the FBI and our law enforcement partners screaming in the town square, you will be next if you continue to break the law.”
“Protecting the integrity of TRICARE, the healthcare system for our military members and their families, is a top priority of the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General,” Acting Special Agent-in-Charge Brian J. Solecki, DCIS Northeast Field Office, said. “Schemes to bill TRICARE for medically unnecessary services place a great burden on the TRICARE program. We will continue to work with the U.S. Attorney’s Office and our law enforcement partners to ensure that individuals who engage in fraudulent activity, at the expense of the U.S. military, are investigated and prosecuted.”
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 February 2015 and February 2017, Curty and Myers participated in a conspiracy that involved the submission of fraudulent prescriptions for compounded medications to public and private insurance plans. 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.
Curty and Myers exploited this opportunity by creating a New Jersey marketing company and hiring sales representatives to target individuals who had insurance plans that covered compounded medications. The sales representatives then convinced those individuals to obtain prescriptions for compounded medications, regardless of medical necessity, often by providing them with cash payments. The individuals were then directed to certain telemedicine companies, which the marketing company or its affiliates paid, to receive the prescriptions.
Once the prescriptions were written, they were filled by certain compounding pharmacies with which the marketing company conspired. The compounding pharmacies would then receive reimbursement from the insurance plans, and would pay the marketing company a percentage of the reimbursement amount. As owners of marketing company, Curty and Myers retained a portion of the payment and provided a “commission” payment to the relevant sales representative.
In addition to the prison term, Judge Hayden sentenced the two defendants to two years of supervised release and ordered them to pay $8.2 million in restitution.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy in Newark, and the U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service, under the direction of Acting Special Agent in Charge Solecki, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jordann Conaboy of the Opioid Abuse and Prevention Unit in Newark.
Former Boston Woman Pleads Guilty to Failing to Appear to Serve a Federal Prison SentenceRead the Press Release
BOSTON – A former Boston woman, who was sentenced to federal prison in 2021, pleaded guilty today to failing to surrender to serve her sentence.
Yris Sanchez, 54, pleaded guilty to failing to appear to serve a federal sentence. U.S. District Court Judge Denise J. Casper scheduled sentencing for April 11, 2024. Sanchez was indicted by a federal grand jury in April 2022 and arrested in Laredo, Texas in March 2023.
In May 2020, Sanchez was convicted of misusing a passport and was sentenced to 15 months in prison. Because of the COVID-19 pandemic, Sanchez requested release on conditions and to self-report to serve her sentence. The Court granted this request and released Sanchez on an appearance bond. Following several extensions of her self-report date, Sanchez failed to surrender to the Bureau of Prisons in June 2021 to serve her sentence. In July 2021, the Court forfeited Sanchez’s secured appearance bond and entered a further default judgment of $47,500 against Sanchez.
The charge of failure to surrender provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Any sentence on this charge will be served consecutively to the sentence imposed on her prior case. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Matthew O’Brien, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and Brian Kyes, U.S. Marshal for the District of Massachusetts made the announcement today. Assistant U.S. Attorney William F. Abely, Chief of the Criminal Division is prosecuting the case.
Florida Man Sentenced to 21 Months’ Imprisonment for His Role in “Grandparents” Mail Fraud SchemeRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jashua Noboa-Nival, age 22, of Orlando, Florida, was sentenced on December 15, 2023, by United States District Judge Robert D. Mariani to 21 months’ imprisonment, to be followed by a three-year term of supervised release, for his role as a courier in a Dominican Republic-based “grandparents” fraud scheme that preyed upon elderly American victims from states across the country.
According to United States Attorney Gerard M. Karam, from approximately June 2020 to October 2020, along with a group of other men from Bronx, NY, Noboa-Nival regularly traveled from New York City to locations in Pennsylvania to retrieve UPS and Fed Ex packages containing thousands of dollars in cash. These packages were sent by elderly victims, who were induced to send the money based upon false claims that their grandchildren had been arrested and charged with serious crimes and, consequently, were in immediate need of money. These false claims were made to the elderly victims in phone calls that they received from oversees co-conspirators in the Dominican Republic, who posed either as the victims’ grandchildren or as attorneys representing the victims’ grandchildren. At his sentencing, Noboa-Nival was ordered to pay $195,000.00 in restitution to the victims of the scheme.
This matter was investigated by the Federal Bureau of Investigation –Philadelphia Division, and its state and local law enforcement partners in Berks County, PA. Assistant United States Attorney Jeffery St John is prosecuting the case.
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Fernandina Beach Man Pleads Guilty to Threatening to Kill A United States Supreme Court JusticeRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Neal Brij Sidhwaney (43, Fernandina Beach) has pleaded guilty to transmitting an interstate threat to kill. Sidhwaney faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to court documents, on July 31, 2023, Sidhwaney placed a phone call from Florida to the Supreme Court of the United States in Washington, D.C., and left an expletive-laden, threatening voicemail message. On the voicemail message, Sidhwaney identified himself by name and repeatedly threatened to kill a specific Supreme Court Justice.
This case was investigated by the Supreme Court of the United States Police – Protective Intelligence Unit with assistance from the United States Capitol Police –Threat Assessment Section. It is being prosecuted by Assistant United States Attorney Kirwinn Mike and Special Assistant United States Attorney Joe Wheeler, III.
Federal Trial Jury Finds Texas Man Guilty of Kidnapping an Adult Victim and Transportation of a Minor Across State Lines for Illegal Sexual ActivityRead the Press Release
Louisville, KY – Friday evening a federal jury convicted a Texas Man of fifteen criminal offenses to include transportation of a person for illegal sexual activity, transportation of a minor for illegal sexual activity, and inveigle and decoy kidnapping. To “inveigle” a person means to lure, or entice, or lead the person to do something by making false representations or promises or using other deceitful means. “Decoy” means enticement or luring by means of some fraud, trick, or temptation. He was also convicted of bank fraud, aggravated identity theft, and interstate threats to ransom.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office made the announcement.
According to court documents and evidence presented at trial, in November of 2018, Bryan Douglas Conley, age 41, used an online dating website to lure and entice a minor from Ohio to travel to Tennessee to meet with him. Conley created and used a false online profile named “Bryant” and offers of money and property to lure the minor across state lines. Conley and the false profile “Bryant” offered the minor money for sexual activity in Kentucky and Tennessee. Conley ultimately abandoned the minor several days later in Texas and stole her purse and phone.
In January of 2019, Conley used an online date website to inveigle and decoy an adult victim. Conley created the online profile “Lance Debeers” and falsely claimed to be a modeling agent. Both Conley and “Lance” engaged the victim in discussions about modeling. On January 29, 2019, Conley met the victim in Shepherdsville, Kentucky. He took the victim’s phone and provided her an unknown substance to drink as part of the modeling contract. He bound the victim and drove around Ohio, Kentucky, and Tennessee issuing ransom demands to the victims’ parents in Tennessee. The ransom demands included threats to physically and sexually harm the victim if his demands were not met.
On January 30, 2019, Conley retrieved a ransom placed by the FBI in Oak Grove, Kentucky. He was arrested shortly after retrieving the ransom. The victim was located in the car. Prior to the kidnapping, Conley met the victim and took her credit card and attempted to make purchases at a retail store in Oak Grove, Kentucky. He also attempted to access her credit card customer profile using the victim’s social security number.
In June of 2019, after Conley had been arrested and released from custody and ordered to wear an ankle monitoring device, he removed the device and fled to Ohio. He was subsequently arrested and detained.
Conley is scheduled for sentencing on March 11, 2024, in the United States District Court for the Western District of Kentucky. Conley remains in federal custody pending sentencing. He faces a mandatory minimum sentence of 12 years in prison and a maximum penalty of life in prison. A federal district court judge will determine the sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
The FBI, the Texas Department of Public Safety, the Brentwood Tennessee Police Department, and the Tennessee Bureau of Investigation investigated the case.
Assistant U.S. Attorneys Joshua Judd and Joel King are prosecuting the case with assistance from paralegal James Aaron Cooper.
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Federal Jury Finds Pittsburgh-Area Nursing Homes Guilty of Healthcare OffensesRead the Press Release
PITTSBURGH, PA -After deliberating for two days, a federal jury found companies operating two Pittsburgh-area nursing homes, Comprehensive Healthcare Management Services, LLC, d/b/a Brighton Rehabilitation and Wellness Center (Brighton) and Mt. Lebanon Operations, LLC, d/b/a Mount Lebanon Rehabilitation and Wellness Center (Mt. Lebanon), guilty of making false statements in connection with the payment of health care benefits and for the purpose of obstructing and impeding the investigation and proper administration of a matter within the jurisdiction of Centers for Medicare and Medicaid Services (CMS), United States Attorney Eric G. Olshan announced today. Brighton was convicted of six counts and Mt. Lebanon was convicted of four counts. Brighton and Mt. Lebanon were tried before United States District Judge Robert J. Colville in Pittsburgh, Pennsylvania. Additional individual defendants were acquitted.
Evidence presented at trial established that Brighton and Mt. Lebanon falsified staffing information provided to the Pennsylvania Department of Health and CMS to show that the facilities were in compliance with the conditions of participation in Medicare and Medicaid. The false certifications were provided to evade penalties that the government regulators could have imposed for failing to meet those conditions, including the condition that the facilities provide sufficient staffing to meet the needs of the residents.
Judge Colville scheduled sentencing for a date to be set in May, 2024. The law provides for a maximum total sentence of five years’ probation, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendants.
This case was prosecuted by Assistant United States Attorneys Stephen R. Kaufman, Nicole A. Stockey, Karen Gal-Or, Jacqueline C. Brown, and Robert S. Cessar, along with Special Assistant United States Attorney Aaron McKendry.
The Federal Bureau of Investigation, the Department of Health and Human Services – Office of Inspector General, the Internal Revenue Service – Criminal Investigation, and the Pennsylvania Office of Attorney General conducted the investigation that led to the convictions of the nursing facilities in this case.
Federal Grand Jury Indicts Four in Alleged Multi-State Burglary Ring Targeting Primarily Individuals of Asian DescentRead the Press Release
PROVIDENCE, RI – A federal grand jury has indicted four individuals for their alleged roles in a sweeping, multi-state burglary ring that primarily targeted residents of Asian descent, announced United States Attorney Zachary A. Cunha.
The indictment alleges that members of the conspiracy: Mohammed Islam, 29, of Stamford, CT; Jorge Andres Cardenas Murillo, 30, of College Point, NY; Yoel Andres Barrera Garrido, 20, of Woodside, NY; and Tania Valentina Espitia Cuellar, 24, address presently unknown, collectively identified and surveilled individuals, typically of Asian descent at the victim’s residences and businesses, which included Asian restaurants and nail salons, and then executed well-planned burglaries at homes in Rhode Island, Massachusetts, New Hampshire, New Jersey, Pennsylvania, Delaware, Wisconsin, and Florida, typically targeting large sums of money, jewelry, credit and debit cards, and other valuable items.
It is alleged that in one such burglary, members of the conspiracy burglarized a home in Jacksonville, FL, and stole approximately $500,000 worth of property and cash, as well as numerous debit and credit cards.
As alleged in charging documents, members of the conspiracy used sophisticated means to carry out their scheme. In addition to surveilling individuals, the conspirators are alleged to have used drones and GPS trackers placed on vehicles to monitor victim’s movement and identify times when they were away from their residences. They are also alleged to have used drones and lookouts to monitor law enforcement activity, and to have had a getaway car and driver at the ready while other conspirators broke into and burglarized the residences.
Mohammed Islam, Jorge Andres Cardenas Murillo, Yoel Andres Barrera Garrido, and Tania Valentina Espitia Cuellar are each charged by way of indictment with conspiracy to commit interstate transportation of stolen property. Islam, Cardenas Murillo, and Barrera Garrido are also charged with two counts of attempt to commit interstate transportation of stolen property, and Islam is charged with a fourth count of interstate transportation of property taken by fraud. A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorneys Ly T. Chin and Julianne L. Klein.
The matter was investigated by Homeland Security Investigations, with the assistance of the Warwick and Smithfield, RI Police Departments; Shrewsbury and Framingham, MA Police Departments; Gorham, NH Police Department; Stamford, Wallingford, and Westport, CT Police Departments; West Allis, WI Police Department; New Castle County, DE Police Department; Manalapan, NJ Police Department; New York City Police Department; Jacksonville and Flagler County Police Departments; Massachusetts State Police; Pennsylvania State Police; and the United States Postal Inspection Service.
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indictment.pdfFarrell, Pa Resident Pleads Guilty to Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH, PA – Kenneth Miller pled guilty to conspiring to distribute cocaine, United States Attorney Eric G. Olshan announced today.
Miller, age 62, of Farrell, Pennsylvania, pled guilty before United States District Judge Cathy Bissoon. Miller pled guilty to conspiring to distribute a quantity of cocaine between June 2020 and June 2021. Judge Bissoon scheduled sentencing to occur on April 10, 2024, at 10:00 a.m.
The law provides for a sentence of up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is to be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorneys Benjamin C. Dobkin and Craig W. Haller are prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Attorney General’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania State Police, the Lawrence County Drug Task Force, the Mercer County Drug Task Force, the New Castle Police Department, the Sharon Police Department, the Hermitage Police Department, and the Farrell Police Department led the investigation resulting in the conviction in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Executives Charged with Bid Rigging, Territorial Allocation and Defrauding the U.S. Forest Service After a Wiretap InvestigationRead the Press Release
BOISE – Following a court-authorized wiretap investigation, a federal grand jury in Boise returned an indictment last week charging two executives, Ike Tomlinson, 60, of Terreton, and Kris Bird, 61, of Salmon, of competing companies with conspiring to rig bids and allocate territories in violation of the Sherman Act, conspiring to commit wire fraud, and committing wire fraud, U.S. Attorney Josh Hurwit announced today.
According to the seven-count felony indictment, Tomlinson and Bird’s conspiracy affected contracts for forest-firefighting services. As alleged, the U.S. Forest Service runs a competitive bidding process for these contracts to ensure taxpayer dollars are spent efficiently. The indictment alleges that from at least in or about February 2014, up to and including in or about March, Tomlinson and Bird coordinated their bids to “squeeze” and “drown” competitors; accepted payment for fuel trucks at collusive and noncompetitive daily rates; and tried to conceal their actions.
This investigation was conducted by the department’s Procurement Collusion Strike Force (PCSF), which included FBI agents, with judicial authorization, intercepting phone calls between Tomlinson and Bird. As alleged, Tomlinson and Bird spoke with one another shortly before the deadline to submit bids on fuel truck contracts. During calls quoted in the indictment, they allegedly agreed to rig bids, allocate territories, and target competitors.
A violation of the Sherman Act carries a maximum penalty of 10 years in federal prison and a $1 million fine for individuals and a maximum penalty of a $100 million fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the maximum. A violation of the wire fraud statute carries a maximum penalty of 20 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s San Francisco Office, U.S. Attorney’s Office for the District of Idaho, and FBI Salt Lake City Field Office, Boise Resident Agency are investigating the case.
Trial Attorney Matthew Chou and Assistant Chief Christopher J. Carlberg of the Antitrust Division’s San Francisco Office and Assistant U.S. Attorney Sean Mazorol for the District of Idaho are prosecuting the case.
In November 2019, the Justice Department created the PCSF, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. To learn more about the PCSF, or to report information on bid rigging, price fixing, market allocation, and other anticompetitive conduct related to government spending, go to www.justice.gov/procurement-collusion-strike-force. Anyone with information in connection with this investigation can contact the PCSF at the link listed above.
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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District Man Sentenced to 30 Months in Prison for Robbing One Man and Attempting to Rob Another in Northwest WashingtonRead the Press Release
WASHINGTON – Kevin Diaz, 19, of Washington, D.C., has been sentenced to 30 months in prison for the April 2023 robbery and assault of two men behind a Northwest Washington restaurant, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
Diaz was found guilty at trial on October 5, 2023, in the Superior Court of the District of Columbia, of robbery, assault with intent to commit robbery, and two counts of felony threats. According to the government’s evidence at trial, on April 25, 2023, at approximately 8:00 a.m., a construction worker and a roofer arrived near the 1600 block of Lamont Street NW to begin remodeling and repair work on a local business. As the construction worker waited in the alley near Lamont Street, Diaz approached him, brandishing an ice pick. Diaz claimed to be a member of the 18th Street gang, demanded money, and threatened to kill the worker if he did not comply. That worker did not give Diaz any money, so Diaz turned his attention to the roofer, who had arrived in his truck minutes after the construction worker. Diaz again brandished the ice pick, demanded money, claimed membership in a gang, and threatened to kill the roofer. The roofer, who was scared for his life, went to his truck, pulled out $20, and gave it to Diaz; Diaz took the money and left.
The workers called police. MPD officers investigated, uncovered surveillance footage that showed Diaz wearing the distinctive haircut and outfit as described by the two victims and witness, and located Diaz within the hour. Diaz was identified and taken into custody, and has remained held since these offenses.
At the December 15, 2023, sentencing hearing, consistent with the Voluntary Sentencing Guidelines, the government asked that the Court impose a total sentence of 96 months’ incarceration — 48 months’ incarceration for robbery and for assault with intent to commit robbery, to be run consecutively to each other, given that each crime of violence was committed against a different victim. The government also sought 24 months’ incarceration for each count of felony threats, to run concurrently with those sentences. The Honorable Michael Ryan sentenced the defendant to a total of 30 months’ incarceration — 30 months for robbery, 18 months for assault with intent to commit robbery, and 14 months for each count of felony threats, all to run concurrently, despite the Voluntary Sentencing Guidelines requirement that the Court impose consecutive sentences when there are multiple victims. The Court also ordered Diaz to serve three years’ supervised release following his sentence.
In announcing the verdict, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Samuel White and Kraig Ahalt, Lead Paralegal Specialists Reather Prather and Tameka Garcia, and Victim/Witness Advocate Paola Molina.
Finally, they commended the work of Assistant U.S. Attorneys Jacqueline Yarbro and William Lawrence, who prosecuted the case.
District Court Enjoins New York and Delaware Companies from Manufacturing and Distributing Adulterated and Misbranded Dietary SupplementsRead the Press Release
A federal court on Dec. 13 enjoined two New York companies, a Delaware company and the companies’ owner from distributing and manufacturing adulterated and misbranded dietary supplements in violation of the Federal Food, Drug and Cosmetic Act (FDCA).
In a civil complaint filed on Dec. 11 in the U.S. District Court for the Eastern District of New York at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that Total Body Nutrition LLC, TBN Labs LLC and Loud Muscle Science LLC (collectively TBN companies) and the companies’ owner, Mohammed Islam, violated the FDCA at the companies’ facility in Hauppauge, New York, and their previous facility in Edgewood, New York, by manufacturing and distributing adulterated and misbranded dietary supplements. The complaint alleged that Islam and the TBN companies violated the FDCA by manufacturing dietary supplements without establishing product specifications for the finished batches and without testing or examining the finished batches to verify that they met product specifications, and by using dietary ingredients in their dietary supplements without first testing or examining the ingredients to verify their identity. The complaint also alleged that the FDA inspected the TBN companies’ current and previous facilities four times, in 2017, 2018, 2021 and 2023, and found violations of the FDCA at each inspection. According to the complaint, FDA also issued Islam and the TBN companies warning letters in 2016, 2017 and 2019.
“Dietary supplement manufacturers and distributors have an important responsibility to ensure product quality and safety,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will continue to work closely with the FDA and take action against manufacturers and distributors who fail to abide by laws designed to protect public health.”
“Consumers trust that dietary supplements they purchase are unadulterated,” said U.S. Attorney Breon Peace for the Eastern District of New York. “My office is working diligently with our partners at the Justice Department’s Consumer Protection Branch and the FDA to ensure that these products are what they purport to be and safe. When they are not, we will take all appropriate action to protect consumers.”
“It is imperative that dietary supplement manufacturers comply with the FDA’s regulatory requirements to help ensure product safety and protect consumers,” said Acting Associate Commissioner Michael C. Rogers, MS, of FDA’s Office of Regulatory Affairs. “When evidence of non-compliance is identified, the agency holds dietary supplement manufacturers responsible. The FDA is dedicated to exercising its full authority under the law to take action against adulterated dietary supplements, as part of our ongoing commitment to protect the health of U.S. consumers.”
Islam and the TBN companies agreed to settle the suit and be bound by a consent decree of permanent injunction. The negotiated consent decree entered by the court permanently enjoins Islam and the TBN companies from violating the FDCA, and requires, among other things, that Islam and the TBN companies comply with the dietary supplement current good manufacturing practice regulations and the dietary supplement labeling provisions of the FDCA and its implementing regulations. Further, Islam and the TBN companies must destroy all of their adulterated dietary supplements.
Trial Attorney Kimberly R. Stephens of the Civil Division’s Consumer Protection Branch is handling the case with the assistance of Assistant U.S. Attorney Michael Blume for the Eastern District of New York and Associate Chief Counsel Roselle Oberstein of the FDA’s Office of the Chief Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.
The claims resolved by the consent decree announced today are allegations only, and there has been no determination of liability.
Consent DecreeCounterfeit Prescription Drug Distributor Sentenced to Federal PrisonRead the Press Release
Memphis, TN – A federal judge has sentenced a Texas man to more than 17 years in prison for his involvement in a counterfeit prescription drug distribution operation. Kevin Olando Ombisi, 34, of Katy, Texas, has been sentenced to 210 months in federal prison for conspiring to distribute methamphetamine and related offenses. U.S. District Court Judge Mark S. Norris also ordered Ombisi to serve three years of supervised release upon completion of his prison term.
There is no parole in the federal system.
United States Attorney Kevin G. Ritz of the Western District of Tennessee made the announcement today along with Acting Assistant United States Attorney Nicole M. Argentieri of the Department of Justice’s Criminal Division; Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration (DEA) Louisville Field Division; Special Agent in Charge Charles L. Grinstead of the Food and Drug Administration Office of Criminal Investigation (FDA-OCI) Kansas City Field Office; Special Agent in Charge Francisco B. Burrola of Homeland Security Investigations (HSI) El Paso Division; and Inspector in Charge Scott Fix of the United States Postal Inspection Service (USPIS) Houston Division.
According to information presented in court, Ombisi used a marketplace on the Darknet and an encrypted messaging service called Wickr to sell pills made to resemble Adderall in exchange for bitcoin cryptocurrency. The pills that Ombisi distributed were not Adderall; instead, they contained methamphetamine. He mailed the methamphetamine pills through the U.S. Postal Service.
In July 2023, Ombisi pled guilty to charges filed in a ten-count superseding indictment, including one count of conspiracy to unlawfully distribute controlled substances, three counts of unlawful distribution, one count of attempted distribution, one count of selling counterfeit drugs, one count of conspiracy to commit money laundering, and three counts of mail fraud.
This case was investigated by the federal partners with assistance from police departments in Katy, Texas; Houston, Texas; and Missouri City, Texas.
United States Attorney Kevin Ritz thanked Assistant Chief Jillian Willis of the Department of Justice Criminal Division’s Fraud Section and Assistant U.S. Attorney Michelle Kimbril-Parks, who prosecuted this case, as well as law enforcement partners who investigated the case.