Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
30 January 2024
Kevin Love Hubbard Appointed as Civil Division ChiefRead the Press Release
PROVIDENCE – U.S. Attorney Zachary A. Cunha announced today that he has appointed Assistant U.S. Attorney Kevin Love Hubbard to serve as Chief of the Office’s Civil Division, overseeing a complex and growing practice that represents the interests of the United States in litigation in the federal District Courts as well as on appeal. The Division’s work encompasses affirmative civil cases and investigations, in which the government sues to address fraud, recover federal funds, and enforce a variety of other statutes; defensive litigation, in which the United States represents the government and its agencies and employees in suits filed in federal court; and civil rights, as well as a number of other non-criminal areas of focus that defend the public interest and enforce federal law.
Mr. Hubbard joined the United States Attorney’s Office in 2021; at the time, he was a partner in the law firm of Medina Orthwein. Earlier in his career, Mr. Hubbard served as a law clerk to the Honorable Neil Wake of the United States District Court for the District of Arizona, and held litigation roles with two nationally prominent law firms. He is a graduate of the Pennsylvania State University and Yale Law School. He succeeds Bethany N. Wong, who has served as civil Chief for the past two years, overseeing substantial growth and expansion in the Office’s already thriving civil practice, particularly in the area of affirmative litigation; Ms. Wong will continue to focus on those critical and significant matters by serving as the office’s Affirmative Civil Enforcement Coordinator.
###
Kentucky Lab Agrees to $4.9 Million Civil Judgment and Drug Treatment Center Enters Settlement to Pay $2.2 Million to Resolve False Claims Act AllegationsRead the Press Release
LEXINGTON, Ky. – The United States District Court for the Eastern District of Kentucky has entered an agreed judgment for $4.9 million, in favor of the United States and against AccuLab, LLC d/b/a Thoroughbred Diagnostics (“Thoroughbred”), holding the lab liable for submitting false claims for urine drug testing services to the Medicare and Kentucky Medicaid programs.
Relatedly, the United States entered into a settlement agreement with Edgewater Recovery Center, LLC (“Edgewater”), the drug rehabilitation facility that caused the submission of those false laboratory claims, to resolve its own False Claims Act liability. Pursuant to that settlement agreement, Edgewater will pay the Government $2.2 million.
Edgewater operates residential and outpatient drug rehabilitation facilities in multiple locations in Kentucky. The Government alleged that Edgewater requested the same complex panel of urine drug tests for all its patients on a weekly basis, without considering whether individual patients needed them. In typical cases, Edgewater did not even use the results of these expensive tests for the patients’ medical diagnosis or treatment.
Thoroughbred is a clinical laboratory based in Bowling Green, Ky., that performed urine drug tests for Edgewater’s patients. The Government alleged that Thoroughbred performed the urine drug tests requested by Edgewater and billed them to Medicare and Kentucky Medicaid, despite knowing the tests were not typically used for patients’ medical diagnosis or treatment. The Government further alleged that Thoroughbred billed for urine drug screens – a less complex test – performed on Edgewater specimens without a proper medical order requesting the test. As a result, Thoroughbred improperly received substantial payments from Medicare and Kentucky Medicaid.
The False Claims Act is a federal law that prohibits the submission of false or fraudulent claims for payment to the federal government. Medicare and Kentucky Medicaid only authorize payment for laboratory testing that is individualized to each patient, is used for medical diagnosis or treatment, and is supported by a proper medical order. As federally-funded health care programs, Medicare and Kentucky Medicaid require all tests and procedures to be medically necessary and in compliance with program rules and applicable law.
Under the terms of its Settlement Agreement with the United States, Edgewater agreed to pay $2,249,632.92 to resolve allegations that it caused the submission of false claims. Edgewater also entered into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General, requiring the business to appoint a Compliance Officer – who will be tasked with implementing policies to ensure compliance with federal health care program requirements and monitoring Edgewater’s day-to-day compliance activities – and retain an independent compliance expert to review their compliance program.
Thoroughbred separately agreed to entry of an Agreed Judgment in the case, in favor of the United States, in the amount of $4,925,441.42. To satisfy this judgment, Thoroughbred will immediately pay the United States $450,000 and then remit the proceeds resulting from its ceasing of lab operations. Thoroughbred must pay to the United States 100% of the net proceeds of the sale of its assets, 70% of its reimbursements from healthcare payors for one year, and any funds received pursuant to an Employee Retention Tax Credit.
“Medicare and Medicaid are intended – and funded – to provide medically necessary health care benefits to millions of eligible Americans,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “When the valuable and limited resources of these programs are depleted, by fraud, waste, or abuse, it has a profound impact on us all. We simply must prioritize taking the steps available to us to prevent inappropriate billing like this, and to return the funds to their proper purpose – providing necessary medical care.”
“Providers who participate in federal health care programs must follow the law governing the integrity of federally funded health care programs such as Medicare and Medicaid,” said Tamala E. Miles, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG is committed to protecting the integrity of the Medicare and Medicaid programs and the people they serve. We will continue to work closely with our law enforcement partners to address allegations brought under the False Claims Act.”
The settlement resolves a lawsuit brought by a private citizen under the qui tam provisions of the False Claims Act. Under those provisions, a private party can file a civil action on behalf of the United States, thereby bringing allegations of fraud to the Government’s attention, and share in any financial recovery. As part of this resolution, the individual who filed the qui tam complaint will receive a portion of the settlement proceeds.
This case was investigated by the Affirmative Civil Enforcement section of the U.S. Attorney’s Office. Assistant United States Attorneys Benjamin Long and Katherine Sheridan represented the United States.
This case is captioned United States ex rel. Katharine Coale v. Edgewater Recovery Center, LLC, et al., Case No. 3:21-CV-00056-GFVT. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
– END –
Justice Department Secures Agreement with MedStar Health Inc. to Provide People with Disabilities Equal Access to Medical CareRead the Press Release
The Justice Department announced today that it filed a complaint and proposed consent decree in the U.S. District Court for the District of Maryland to resolve allegations that MedStar Health Inc., a leading health care provider in Maryland and the Washington, D.C., region, violated the Americans with Disabilities Act (ADA) by denying people with disabilities equal access to medical care by excluding their necessary support persons.
“For some people with disabilities, having a family member, aide or other support person by their side is critical to ensure they have the same access to health care as everyone else,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When health care providers impose visitor restrictions that do not appropriately account for the needs of people with disabilities, they may run afoul of the Americans with Disabilities Act. The Justice Department is committed to safeguarding the civil rights of people with disabilities, including ensuring equal access to medical care.”
“Patients are entitled to equal access to health care,” said U.S. Attorney Erek L. Barron for the District of Maryland. “We appreciate Medstar Health’s cooperation in this investigation and are pleased that Medstar Health has agreed to take comprehensive steps to ensure that patients with disabilities have the same opportunities to obtain medical care and services.”
Some individuals with dementia, intellectual disabilities, autism spectrum disorder and other disabilities may require the assistance of a support person (such as a family member, companion or aide) to provide their medical history or understand medical directions when accessing medical care. The complaint alleges that MedStar Health failed on numerous occasions to modify its visitor restrictions so that people with certain disabilities which affected their ability to independently access medical care could be accompanied by their support persons. As a result, they were unable to receive equal care without the assistance of their support person.
Under the proposed consent decree, which the court must approve, MedStar Health has agreed to pay a total of $440,000 to compensate multiple eligible affected individuals. MedStar Health will also revise its policies to ensure ADA compliance, train its workforce on the new policies and report to the department on any future exclusion of support persons, as defined in the decree.
This matter was handled jointly by the department’s Civil Rights Division and the U.S. Attorney’s Office for the District of Maryland. Title III of the ADA requires private hospitals and other health care providers to provide individuals with disabilities with full and equal enjoyment of their goods and services.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov. If you believe you’ve been discriminated against, you may file a complaint online at www.civilrights.justice.gov/. Anyone in the District of Maryland may also report civil rights violations by emailing [email protected].
Joint Statement by U.S. Attorney General Merrick B. Garland and Australia Attorney-General Mark Dreyfus KC Announcing Entry into Force of the United States and Australia’s Data Access Agreement to Support Investigations of Serious CrimeRead the Press Release
The United States and Australia today have brought into force the landmark Agreement on Access to Electronic Data for the Purpose of Countering Serious Crime. The Agreement will transform and enhance international cooperation in addressing serious crimes, including terrorism and child sexual abuse. The Agreement will complement the existing close relationships between the United States and Australia across law enforcement, contributing to the safety and security of both nations.
The Agreement will allow U.S. and Australian authorities to obtain more timely access to electronic data held by service providers in the partner nation. Obtaining this information will help U.S. and Australian agencies prevent, detect, investigate, and prosecute serious crime and safeguard our national security.
Importantly, the Agreement also provides safeguards and protections that reflect the commitment of both countries to human rights, civil liberties, and the rule of law. These include stringent privacy and oversight protections to ensure any data collected meets the Agreement’s robust requirements.
Signed between the Government of the United States of America and the Government of Australia, on Dec. 15, 2021, the Agreement is supported by each Party’s domestic legislative frameworks – the United States’ Clarifying Lawful Overseas Use of Data (CLOUD) Act and Australia’s Schedule 1 of the Telecommunications (Interception and Access) Act 1979 (Cth).
Jackson Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Jackson man pled guilty to possession of a firearm by a convicted felon.
According to court documents, Randy Rodriquez Jones, 49, sold a firearm to an individual on January 8, 2020. Jones had multiple prior drug-related felony convictions and a previous state court conviction for possession of a firearm by a convicted felon. As a convicted felon, it is contrary to federal law for Jones to possess any firearm.
Jones will be sentenced on April 30, 2024, and faces a maximum penalty of 10 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives made the announcement.
The ATF is investigating the case and Assistant U.S. Attorney Matt Allen is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Iowa Falls Felon Sentenced to Federal PrisonRead the Press Release
An Iowa Falls man who possessed a stolen gun as a felon was sentenced January 30, 2024, to more than five years in federal prison.
Deron Michael Humes, II, age 34, from Iowa Falls, Iowa, received the prison term after a June 7, 2023, guilty plea to one count of possession of a firearm by a felon.
Information disclosed at sentencing showed that, on October 4, 2022, Humes carried a Shadow Systems, MR920, 9x19mm pistol into a gun store in Iowa Falls. The Shadow Systems pistol had been stolen from its owner the week before. While Humes was inside the gun store, he purchased a thirty‑round magazine for the firearm and asked an employee of the store if they had a device that could turn the firearm into a fully automatic weapon. After Humes exited the store, law enforcement officers responded and confronted Humes. During the encounter, officers searched the vehicle Humes was located in, and they found the Shadow Systems pistol hidden behind the glovebox compartment. Humes had two prior felony convictions, and he was prohibited from possessing firearms.
Humes was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Humes was sentenced to 70 months’ imprisonment, and he must also serve a three‑year term of supervised release after the prison term. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Humes is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Iowa Division of Narcotics Enforcement, the Iowa Falls Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23‑CR‑00032‑CJW.
Follow us on Twitter @USAO_NDIA.
Hopewell Man Sentenced to over 10 Years for Possessing Methamphetamine and AR-Style FirearmsRead the Press Release
RICHMOND, Va. – A Hopewell man was sentenced today to 124 months in prison for possessing with the intent to distribute over fifty grams of methamphetamine in Chesterfield County, while also possessing fentanyl, cocaine, and two AR-style semiautomatic pistols.
According to court documents, Shaone Lovett, 27, was the subject of a January 2023 search warrant executed by the Drug Enforcement Administration and the Chesterfield County Police Department at his residence. When law enforcement encountered Lovett, he possessed various substances containing fentanyl, methamphetamine, and cocaine, as well as an AR-style semiautomatic pistol loaded with a high-capacity magazine containing 40 rounds of ammunition. When law enforcement searched his apartment, they found another AR-style semiautomatic pistol and dozens of rounds of ammunition.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod A. Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Colonel W. Keith Early, Prince George County Police Department; and Colonel Jeffrey S. Katz, Chesterfield County Police Department, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney, Jr.
Assistant U.S. Attorneys Shea Gibbons and Erik S. Siebert prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-102.
Home Health Company Owner Sentenced for Nearly $2.8M Medicare FraudRead the Press Release
An Indian national was sentenced today to nine years in prison for orchestrating a nearly $2.8 million health care fraud and wire fraud conspiracy and engaging in money laundering, aggravated identity theft, and witness tampering.
According to court documents and evidence presented at trial, Yogesh K. Pancholi, 43, of Northville, Michigan, owned and operated Shring Home Care Inc. (Shring), a home health company based in Livonia, Michigan. Despite being excluded from billing Medicare, Pancholi purchased Shring using the names, signatures, and personal identifying information of others to conceal his ownership of the company. In a two-month period, Pancholi and his co-conspirators billed and were paid nearly $2.8 million by Medicare for services that were never provided. Pancholi then transferred these funds through bank accounts belonging to shell corporations and eventually into his accounts in India. After being indicted, and on the eve of trial, Pancholi, using a pseudonym, wrote false and malicious emails to various federal government agencies alleging a government witness had committed various crimes and should not be allowed to remain in the United States in an attempt to keep the witness from testifying.
In September 2023, a federal jury in the Eastern District of Michigan convicted Pancholi of conspiracy to commit health care and wire fraud, two substantive counts of health care fraud, two counts of money laundering, two counts of aggravated identity theft, and one count of witness tampering.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Special Agent in Charge Cheyvoryea “Shea” Gibson of the FBI Detroit Field Office, and Special Agent in Charge Mario Pinto of the Department of Health and Human Services Office of the Inspector General (HHS-OIG) made the announcement.
The FBI Detroit Field Office and HHS-OIG investigated the case.
Trial Attorneys Shankar Ramamurthy and Andres Almendarez of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Government Contractors Agree to Pay $3.9 Million to Resolve Claims of Misrepresenting Women-Owned Small Business StatusRead the Press Release
ALEXANDRIA, Va. – QuarterLine Consulting Services, LLC, and its parent company, Planned Systems International, Inc. (PSI), both located in Arlington, agreed to pay $3.9 million to resolve allegations that QuarterLine made false statements about its women-owned small business (WOSB) status to obtain a Defense Health Agency (DHA) task order that was set aside for WOSBs to provide physicians to an Air Force military treatment facility.
“This settlement demonstrates my office’s commitment to ensuring a fair and honest playing field for companies who are called on to support the Department of Defense, and in this case, provide medical care to those serving our country,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia.
“The Defense Criminal Investigative Service is committed to rooting out fraud and corrupt schemes, which undermine the integrity of the Department of Defense procurement process,” said Christopher Dillard, Special Agent in Charge, Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office. “DCIS working together with its law enforcement partners will continue to ensure the DoD contracting process remains fair and competitive.”
“Government contractors are expected to be honest in their dealings with the government,” said Floyd Martinez, Special Agent in Charge, General Services Administration (GSA) Office of Inspector General. “GSA OIG special agents and our investigative partners are committed to holding accountable those who misrepresent themselves in order to obtain federal contracts.”
“This is the latest example of the dedication and relentless focus of Criminal Investigation Division Special Agents coupled with the wide network of partnerships with military investigation organizations and federal law enforcement partners,” said Special Agent in Charge Keith K. Kelly, of Department of the Army Criminal Investigation Command’s Fraud Field Office.
In July 2017, QuarterLine was awarded an indefinite delivery/indefinite quantity (IDIQ), multiple-award contract through the DHA. The DHA IDIQ allowed small businesses to compete for task orders to provide physician, nursing, and ancillary services to supplement the medical staff at military treatment facilities throughout the country. Federal agencies could further set aside task orders for participants in the SBA’s WOSB Federal Contract program or other socioeconomic programs to help the agency meet its small business contracting goals.
At the time of the DHA IDIQ award, QuarterLine was a WOSB and eligible to compete for set-aside task orders. In December 2018, QuarterLine was acquired by PSI, which caused QuarterLine to forfeit its WOSB status. QuarterLine was required to update its size certifications in GSA’s System for Award Management (SAM) within 30 days of the acquisition.
In January 2019, the Air Force issued a task order proposal request through the DHA IDIQ for physician-anesthesiologists to support the military treatment facility at Joint Base San Antonio. The task order was set aside for women-owned small businesses. The United States alleged that QuarterLine submitted a proposal for the task order in which QuarterLine falsely represented that it was a WOSB and that its SAM representations were current, complete, and accurate. The United States also alleged that QuarterLine submitted false representations about its size status in response to requests from the task order’s contracting official. Based on QuarterLine’s representations, the Air Force awarded the task order to QuarterLine.
PSI and QuarterLine agreed to pay $3.9 million to resolve the United States’ claims that they misrepresented QuarterLine’s WOSB status to obtain the task order. The civil claims are allegations only; there has been no admission of liability. PSI and QuarterLine provided substantial cooperation during the investigation.
The settlement arises in connection with a lawsuit filed under the whistleblower provision of the False Claims Act. A whistleblower suit, or qui tam action under the False Claims Act, is commenced by an individual filing a complaint under seal in the U.S. District Court and providing a copy of the complaint and evidence to the U.S. Attorney’s Office. The United States then has an opportunity to investigate the claims. The False Claims Act provides whistleblowers with a share of the government’s recovery.
The outcome in the case was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the U.S. Department of Defense Office of Inspector General, DCIS, the U.S. Air Force Office of Special Investigations, Army CID, and GSA’s Office of Inspector General.
The case was prosecuted by Assistant U.S. Attorney William Hochul III and assisted by Forensic Auditor Peter Melaragni.
The case caption is United States ex rel. The Arora Group, Inc. v. Planned Systems International, Inc., No. 1:21-cv-657 (E.D. Va.). A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Gloucester County Man Sentenced to Four Years in Prison for Filing False Tax ReturnsRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man was sentenced today to 48 months in prison for filing false claims against the IRS, U.S. Attorney Philip R. Sellinger announced.
Christian L. Whittaker, 43, of Williamstown, New Jersey, previously pleaded guilty before U.S. District Judge Christine P. O’Hearn to one count of an indictment charging him with making false claims against the IRS. Judge O’Hearn imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Whittaker knowingly and willfully prepared, electronically signed, and filed with the IRS false U.S. Individual Income Tax Returns (Forms 1040) for the tax years 2016 to 2019. Whittaker claimed that a business paid him significant wages and incurred substantial losses, when in fact the business was fictitious. Based on the false claims, the IRS paid more than $300,000 in refunds to Whittaker. More than $80,000 was paid by the IRS and garnished to pay debts that Whittaker had previously incurred.
In addition to the prison term, Judge O’Hearn sentenced Whittaker to three years of supervised release and ordered restitution of $390,682.
U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Daniel A. Friedman and Andrew D’Aversa of the U.S. Attorney’s Office’s Criminal Division in Camden.
Gainesville Man Sentenced to 320 Months in Federal Prison for Production and Distribution of Child PornographyRead the Press Release
GAINESVILLE, FLORIDA – Justin Ray Crosby, 25, of Hawthorne, Florida, was sentenced to 320 months imprisonment for one count of production of child pornography and 240 months imprisonment for one count of distribution of child pornography, the terms to run concurrent with each other. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“Crimes against children are among the most heinous types of offenses and deserving of the most significant sentences,” said U.S. Attorney Coody. “Those who produce child pornography facilitate the abuse of children and rob them of not only of their innocence but their very childhood. We will continue to work tirelessly with our law enforcement partners to investigate and vigorously prosecute those who engage in such vile conduct.”
In July 2022, law enforcement officers in Gainesville, Florida began an investigation related to the distribution of an image depicting the sexual abuse of a 12-year-old minor child on an instant messaging app. Investigators determined the child resided in Gainesville, Florida. The child was interviewed, and several social media accounts and electronic devices were obtained and examined, leading to Crosby’s identification. Investigators determined Crosby had met with the child on several occasions, and in one instance he filmed himself engaged in sexual contact with the child. He later distributed the video on an instant messaging application.
Crosby’s prison sentence will be followed by a lifetime of supervised release. He was ordered to pay $20,000 in restitution to the victim. Crosby will also be required to register as a sex offender and be subject to all sex offender conditions.
The case was investigated by Internet Crime Against Children Task Force Gainesville Police Department. Assistant United States Attorney Frank Williams prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice and led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), it marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Four Massachusetts State Troopers, Two Others Arrested for Alleged Bribery ConspiracyRead the Press Release
BOSTON – Two current and two former Massachusetts State Police (MSP) troopers are among six charged in a 74-count indictment in connection with an alleged conspiracy to falsify records and give passing scores to certain Commercial Driver’s License (CDL) applicants, including individuals who had failed or did not take the CDL skills test, in exchange for bribes.
The following individuals have been indicted on three counts of conspiracy to falsify records; three counts of conspiracy to commit extortion; three counts of extortion; six counts of honest services mail fraud; 31 counts of falsification of records; 27 counts of false statements; and one count of perjury:
- Gary Cederquist, 58, of Stoughton;
- Calvin Butner, 63, of Halifax;
- Perry Mendes, 63, of Wareham;
- Joel Rogers, 54, of Bridgewater;
- Scott Camara, 42, of Rehoboth; and
- Eric Mathison, 47, of Boston.
Butner and Mendes were arrested yesterday in Southern and Middle District of Florida, respectively. They will appear in federal court in Boston at a later date. The remaining defendants were arrested this morning and will appear in federal court in Boston at 2 p.m. this afternoon.
According to the charging document, MSP Sergeant Cederquist was in charge of MSP’s CDL Unit, of which Trooper Rogers and retired Troopers Butner and Mendes were members.
Members of MSP’s CDL Unit were responsible for administering CDL skills tests. Test requirements for CDLs are established by the Federal Motor Carrier Safety Administration, which is part of the U.S. Department of Transportation. The CDL skills test is a demanding, in-person test that consists of three segments: Vehicle Inspection, in which an applicant is tested on their knowledge of the vehicle; Basic Control Skills, in which an applicant is tested on their ability to perform certain maneuvers; and the Road Test, in which an applicant is tested on their ability to drive a commercial vehicle on an open roadway.
In Massachusetts, the pass rate was 48% in 2019, 44% in 2020, 41% in 2021 and 41% in 2022. Test scores reported by members of MSP’s CDL Unit are material to whether applicants meet federal requirements for, and therefore whether the Registry of Motor Vehicles (RMV) is permitted to issue said applicants, CDLs. Class A CDLs are required to drive combination vehicles (e.g., tractor-trailers). Class B CDLs are required to drive heavy single vehicles (e.g., box trucks, school buses).
According to the charging document, between in on or about May 2019 and January 2023, Cederquist, Butner, Mendes, Rogers and others conspired to give preferential treatment to at least 17 CDL applicants by agreeing to give passing scores on their skills tests whether or not they actually passed, using the code word “golden” to identify these applicants who received special treatment. The indictment alleges that the following texts, some by Cederquist and others by Butner, were sent about some of these applicants:
- “Your buddy passed yesterday he owes you that’s an automatic Fail leaving the door open!!!;”
- “This guys a mess. Lol. He owes u a prime rib 6inch. 4 compounds and no watch;”
- “Your buddy is a mess. He owes you big time. He will be fine though. Anything for you;”
- “Golden mess. ??????;”
- “He’s a mess Class A truck 2psi loss with truck running truck cut our again while timing ????;” and
- “Total mess this guy I think some time we should just do what we can but not golden.”
Each of these applicants received a passing score on their skills test.
Additionally, it is alleged that Cederquist gave preferential treatment to four Class A CDL applicants who were MSP Troopers by falsely reporting that each trooper took and passed a Class A skills test. In reality, however, it is alleged that the Troopers did not pass the skills test and that they drove a vehicle which did not qualify as a Class A vehicle. It is alleged that Cederquist conspired with his friend Camara, who worked for a truck-driving school in Brockton, to accomplish this offense.
It is further alleged that Cederquist conspired with his friend Mathison, who worked for a spring water company that employed drivers who needed CDLs, to give passing scores to certain applicants affiliated with the water company. The indictment alleges that Cederquist gave passing scores to three such applicants who actually failed, in exchange for bribes of free inventory from the water company, such as cases of bottled Fiji, VOSS and Essentia water, cases of bottled Arizona Iced Tea, and coffee and tea products, all of which Mathison delivered to an office trailer at the CDL test site in Stoughton. The indictment alleges that Cederquist sent Mathison a text describing one of these applicants as “an idiot,” who had “no idea what he’s doing,” and “should have failed about 10 times already.” It is alleged that Cederquist then texted Mathison that Mathison’s boss “owes big time.”
The indictment also alleges that Butner assisted with this conspiracy, including by giving Mathison a key to the Stoughton yard so that Mathison could drop off water company inventory even when the test site was closed. The indictment alleges that Mendes also took part in the conspiracy, including by accepting cases of Fiji and VOSS water from Mathison immediately after administering an incomplete skills test to a new driver for the water company, with Mathison helping to put the cases in Mendes’s cruiser. It is alleged that on one occasion Mathison texted Cederquist that he was heading to the water company’s warehouse in Bridgewater, writing: “Was heading to Bridgewater seeing if you all need anything on return trip. Did you get a new key for the midnight express,” to which Cederquist replied, “Not yet but I need Voss and Italian toast espresso and some decaf for an old timer at the office.”
According to the charging document, in addition to Mathison’s bribes of free inventory from the water company, Cederquist accepted additional bribes in exchange for using his official position as the Sergeant in charge of MSP’s CDL Unit to give preferential treatment to certain CDL applicants including, but also a $750 granite post and mailbox; a new driveway valued at over $10,000; and a snow blower valued at nearly $2,000. The indictment alleges that Cederquist described one such applicant as “horrible,” and “brain dead,” but gave him a passing score anyway in exchange for the snow blower.
All CDL recipients identified as not qualified in the course of this investigation have been reported to the Massachusetts Registry of Motor Vehicles.
The investigation remains ongoing.
The charges of conspiracy to falsify records each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of conspiracy to commit extortion each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of extortion each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of honest services mail fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of falsification of records each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of false statements each provide for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of perjury provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; and Christopher A. Scharf, Special Agent in Charge, U.S. Department of Transportation Office of Inspector General, Northeast Region made the announcement today. Assistant U.S. Attorneys Christine J. Wichers and Adam W. Deitch of the Public Corruption & Special Prosecutions Unit are prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fort Wayne Man SentencedRead the Press Release
FORT WAYNE – On January 25, 2024, Donald E. James, age 65, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to bankruptcy fraud, announced United States Attorney Clifford D. Johnson.
James was sentenced to 24 months of probation.
According to documents in the case, on or about October 9, 2018, James lied in relation to his bankruptcy case filed in the United States Bankruptcy Court for the Northern District of Indiana. James falsely stated on the Voluntary Petition of Individuals Filing for Bankruptcy, that he had not filed for bankruptcy within the last 8 years and falsely stated that he had received a briefing from an approved credit counseling agency within 180 days before the filing of the petition, both which were not true.
This case was investigated by the Internal Revenue Service, Criminal Investigation Division with assistance from the Northern Indiana Bankruptcy Fraud Working Group coordinated by Region 10 U.S. Trustee Nancy J. Gargula. The case was prosecuted by Assistant United States Attorney Stacey Speith.
The United States Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis with additional office in South Bend, IN and Peoria, IL.
Former Fall River Man Sentenced to Thirty -Two Months in Prison for Role in Nationwide Identity Theft Fraud SchemeRead the Press Release
PROVIDENCE, RI – A former Fall River resident was sentenced today in federal court in Boston in connection with a nationwide conspiracy to open fraudulent driver accounts with rideshare and delivery service companies.
Caio Felipe Oliveira Dos Santos, 27, of Brazil, was sentenced by U.S. Chief District Court Judge F. Dennis Saylor IV to 32 months in prison to be followed by three years of supervised release. In October 2023, Dos Santos pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft.
From approximately January 2019 until April 2021, Dos Santos and others conspired to use stolen identities and/or falsified documents to open fraudulent driver accounts and/or rent or sell those accounts to individual drivers who might not otherwise qualify to drive for the rideshare or delivery services. Co-conspirators exploited referral bonus programs offered by the rideshare and delivery companies and used “bots” and GPS “spoofing” technology to increase the income earned from the companies. As a result of the scheme, Internal Revenue Service Forms 1099 were generated in victims’ names for income co-conspirators earned from the rideshare and delivery companies.
Dos Santos and his co-conspirators also used victims’ identifiers to apply for driver accounts with the rideshare and delivery companies, enabling Dos Santos and his co-conspirators to pass those companies’ required background checks and create driver accounts in victims’ names. At times, co-conspirators edited victims’ driver’s license images to display photos of the drivers renting or buying the fraudulent accounts in order to circumvent facial recognition technology that the rideshare and delivery companies used as a security measure. Dos Santos and his co-conspirators obtained victims’ names, dates of birth, driver’s license information, and/or Social Security numbers from co-conspirators and other sources, including sites on the Dark Net. They also obtained driver’s license images directly from victims, by photographing victims’ licenses while completing an alcohol delivery through one of the services.
Eighteen co-conspirators were indicted in connection with the scheme in May 2021. Fifteen of those defendants have been arrested, while three remain at large. Of those arrested, 14 have been convicted and sentenced. If you believe that you may be a victim of the allegations in this case, please visit: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/us-v-wemerson-dutra-aguiar-and-us-v-priscila-barbosa-et-al.
United States Attorney Zachary Cunha and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by Massachusetts State Police; U.S. Customs and Border Protection; U.S. Postal Inspection Service; National Crime Insurance Bureau; and the Concord, Lexington, Plymouth, Wilmington, Marlborough and Village of Rye Brook (N.Y.) Police Departments. Assistant U.S. Attorneys Kristen A. Kearney and David M. Holcomb of the District of Massachusetts Securities, Financial & Cyber Fraud Unit prosecuted the case.
Mr. Cunha was assigned to oversee this matter by the Department of Justice upon recusal of the U.S Attorney for the District of Massachusetts.
###
Florida man pleads guilty to production of images of child sexual abuse, and traveling to sexually assault a minorRead the Press Release
Tacoma – A 42-year-old New Port Ritchey, Florida, man pleaded guilty today in U.S. District Court in Tacoma to production of child pornography and interstate travel with intent to engage in a sexual act with a minor, announced U.S. Attorney Tessa M. Gorman. Samuel Aaron Leonard was arrested July 2, 2020, in Vancouver, Washington, just outside the home of the 14‑year-old girl he had spent months enticing online for sexual abuse. Leonard communicated with the girl on a number of social media platforms and represented to the girl that he was 20 years old. Leonard is scheduled for sentencing by U.S. District Judge Benjamin H. Settle on April 15, 2024.
According to records filed in the case, Leonard contacted the girl via a social media platform around April 1, 2020. Over the next few months, Leonard communicated with the girl on various social media sites and sent her a cell phone so that they could communicate by text and telephone. Unbeknownst to the girl, Leonard had installed tracking and surveillance software in the phone so that he could monitor her location and read her texts and emails. Leonard turned the conversations with the girl to a sexual nature and convinced her to send various sexually explicit photos.
The girl’s guardians became aware of the communication and contacted police in late June 2020. Law enforcement immediately seized both phones that the teen had been using to communicate and had an undercover officer take over the communication. Analyzing the communications and the cell phone information, the investigation revealed that Leonard had traveled from Florida to the Vancouver area via bus and was within a short bike ride of the girl’s home. When the officer, posing as the girl, revealed that the girl’s guardian had taken the phone Leonard had sent to her, Leonard said he would get her a new one. Police surveilled Leonard as he took a newly purchased phone, hid it in a package, and tossed the package over the fence to the girl’s backyard. Leonard was arrested shortly afterwards.
A search of Leonard’s hotel room revealed that he had a number of items used to restrain someone, such as ten sets of flex cuffs and two sets of metal handcuffs, as well as duct tape and electrical tape. He also had various sex toys and lubricants. In the plea agreement Leonard admits that in 2018 he traveled to Oklahoma to sexually assault a 16-year-old. Leonard’s phone contained videos of that sexual assault.
Production of child pornography is punishable by a mandatory minimum 15 years in prison and up to 30 years in prison. Interstate travel to engage in sex acts with a minor is punishable by up to 30 years in prison.
Under the terms of the plea agreement, both prosecutors and defense will recommend a prison term of 20 years. Prosecutors will argue for a lifetime term of supervised release to follow prison. Judge Settle is not bound by the recommendations and can impose any sentence allowed by law. Leonard will be required to register as a sex offender.
The case was investigated by Homeland Security Investigations (HSI), the Vancouver Police Department, and Kalama Police Department.
The case is being prosecuted by Assistant United States Attorneys Kristine Foerster and Sean Waite with assistance from the Clark County Prosecuting Attorney’s Office.
Florida Man Sentenced to 25 Years for Distributing MethamphetamineRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Ronnie Lee Seward (41, Seffner) to 25 years in federal prison for possessing with the intent to distribute methamphetamine. Seward entered a guilty plea on September 20, 2023.
According to court documents, on January 12, 2023, the Tampa Police Department and the Drug Enforcement Administration executed a search warrant at an apartment in South Tampa where Seward had just delivered methamphetamine to a co-defendant, Sean Barton. Seward was detained and ultimately arrested after law enforcement discovered over a half-kilogram of methamphetamine in Seward’s vehicle. Seward had previously served three separate state prison sentences in Florida. His prior convictions include lewd and lascivious molestation, felony battery, armed trafficking in amphetamine, trafficking in amphetamine, and felon in possession of a firearm, among others.
Barton previously pleaded guilty to possessing with the intent to distribute a mixture and substance containing a detectable amount of methamphetamine. He faces up to 20 years in federal prison. His sentencing hearing is scheduled for May 1, 2024.
This case was investigated by the Tampa Police Department and Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney David P. Sullivan.
Florida Man Arrested for Role in Multimillion-Dollar Medicare Scheme Based on Fraudulent Billing for Durable Medical EquipmentRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the arrest of ALAN SWISS on charges of health care fraud and conspiracy to violate the Anti-Kickback Statute. SWISS is the third defendant charged, following the arrests in December of co-defendants ERIN FOLEY and TED ALBIN. As alleged in a four-count Indictment unsealed today, SWISS ran two medical supply companies that illegally submitted more than $17 million in claims to Medicare, submitting those claims through a Medicare billing company run by FOLEY and ALBIN. FOLEY and ALBIN are charged with using that billing company to bill Medicare for more than $25 million in fraudulent claims for durable medical equipment (“DME”), on which Medicare and related private insurers paid out more than $9 million.
SWISS was presented this morning before U.S. Magistrate Judge William Matthewman in West Palm Beach, Florida, and ordered to appear again in the West Palm Beach federal courthouse on February 5 for a removal hearing. In Manhattan, the case is assigned to U.S. District Judge John G. Koeltl.
U.S. Attorney Damian Williams said: “As alleged, the defendants devised a scheme to get rich quick by fraudulently billing Medicare, a taxpayer-funded service, for medical equipment. Their alleged scheme bilked taxpayers of millions of dollars, and fraudulent practices such as this can drive up the cost of health care for everyone. Close watch for fraud must be paid to our taxpayer-funded programs to ensure fairness for all Americans who rely on these critical systems for medical care.”
According to statements made in court and publicly filed documents in this case:[1]
From approximately 2016 through April 2019, SWISS operated Tropical Medical Marketing, Inc., a call center which cold-called Medicare beneficiaries and used their personal and medical information without the beneficiaries’ knowledge or consent to prepare orders for DME. SWISS then sold these DME orders to co-conspirators who illegally obtained purported signatures or “authorizations” of health care providers so that fraudulent claims could be submitted to Medicare for reimbursement.
From approximately 2017 through April 2019, SWISS also operated two DME supply companies: Modern Medical Equipment, Inc., which SWISS used primarily to bill Medicare directly under Medicare Part B, and A&E Medical, Inc., which SWISS used primarily to bill private insurance companies under Medicare Part C, also known as “Medicare Advantage.” To obtain the DME orders that SWISS used to support his unlawful claims to Medicare, SWISS used two unlawful methods: (i) purchasing such orders outright, and (ii) using patient information that SWISS had generated through his call center and purchasing the purported signatures or authorizations of health care providers. SWISS caused the two DME supply companies that he controlled to submit claims to Medicare for more than $17 million — through the billing company operated by FOLEY and SWISS — on which Medicare paid out nearly $5 million.
FOLEY and ALBIN owned and controlled Grapevine Professional Services, Inc. (“Grapevine”), a billing company that they used to bill Medicare for more than $25 million, and to collect more than $9 million, through claims based on orders for DME that had been unlawfully sold and bought. Most of these unlawful purchases of DME orders were by Grapevine customers that were registered with Medicare as DME supply companies. Additional unlawful purchases were made directly by FOLEY and ALBIN through three DME supply companies that they themselves owned and controlled. Once these DME orders were unlawfully purchased, FOLEY and ALBIN used those orders as the basis for fraudulent claims to Medicare and to private insurers covered by Medicare Part C. Approximately 70% of the fraudulent billing submitted by Grapevine came from the two DME supply companies controlled by SWISS.
In addition, FOLEY and ALBIN acted as brokers of DME orders, introducing Grapevine customers who wished illegally to buy DME orders to co-conspirators who illegally sold them orders. In return for such introductions of buyers to sellers, FOLEY and ALBIN received additional kickbacks, both in the form of cash and in the form of additional DME orders. FOLEY and ALBIN also profited through these introductions by gaining additional illegal billing business for Grapevine. Following these introductions, FOLEY and ALBIN continued to oversee the relations between buyers and sellers of DME orders, for example by tracking how many orders particular sellers owed to particular buyers.
* * *
SWISS, 51, of West Palm Beach County, Florida, is charged with conspiracy to commit health care fraud and wire fraud, which carries a maximum sentence of 20 years in prison; health care fraud, which carries a maximum sentence of 10 years in prison; wire fraud, which carries a maximum sentence of 20 years in prison; and conspiracy to violate the Anti-Kickback Statute, which carries a maximum sentence of five years in prison.
The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the U.S. Department of Health and Human Services, Office of the Inspector General.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys David Raymond Lewis and Rushmi Bhaskaran are in charge of the prosecution.
The charges contained in the Indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
[1] The Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Final Defendant in Online Romance Scam Sentenced to 72 Months’ Imprisonment, Ordered to Pay $6.4M in Restitution JointlyRead the Press Release
SALT LAKE CITY, Utah – Nelly Idowu, 39, of Provo, Utah, was sentenced today to six years’ imprisonment followed by three years’ supervised release, after a federal jury found her guilty of one count of money laundering conspiracy and two counts of money laundering in an online romance scam. Idowu is one of four defendants sentenced in a two-year scheme that cost victims over $6 million.
According to the evidence presented at trial, from 2017 to 2019 Idowu participated in an online romance scheme that involved creating fake online dating profiles to befriend and romance victims. Idowu, and her co-conspirators, led these victims to believe the fake persona they were engaging with had an urgent and financial need, none of which were legitimate. The victims targeted were mostly widowed and divorced women over 65-years-old. These significant life changes often occurred very late in life after many years of being accustomed to the company and support of a partner. Many victims suffered significant financial loss in the final years of life, with some losing their entire life savings.
Codefendants Emmanuel Osaigbovo Adesotu, Nnamdi Joel Chukwu, and Julius Omene Fredrick were each previously convicted by guilty plea to a money laundering conspiracy. Adesotu was sentenced to a term of 36 months’ imprisonment, Fredrick was sentenced to a term of 46 months’ imprisonment, and Chukwu was sentenced to a term of 12 months’ imprisonment. Each defendant was ordered by the court to pay $6,444,787.16 in restitution jointly for the victims.
“Idowu and her co-conspirators preyed on unsuspecting and vulnerable victims,” said U.S. Attorney Trina A. Higgins of the District of Utah. “The defendants gained their trust and convinced them to send large sums of money, leaving many of the victims in financial despair. My office, along with our law enforcement partners, will continue to prosecute these online scams, and seek justice for the victims.”
“Scammers like Idowu know exactly how to prey on their victims’ vulnerabilities, and sadly, the financial and emotional consequences can be absolutely devastating,” said Shohini Sinha, Special Agent in Charge of the Salt Lake City FBI. “The FBI is committed to investigating these perpetrators and continuously works to raise awareness about romance scams. Think twice before you share personal information online, be wary of online suitors who are quick to establish a relationship and gain your trust, and don’t send money to someone you’ve never met. If you think you’re a victim of a romance scam, file a complaint with the FBI’s Internet Crime Complaint Center at ic3.gov.”
The investigation was conducted by the FBI Salt Lake City Field Office, Provo Resident Agency.
Assistant United States Attorneys Carl LeSueur and Mark Woolf of the U.S. Attorney’s Office for the District of Utah prosecuted the case.
The FBI encourages those engaged in online relationships to review and become familiar with information about romance scams on its website FBI.gov. Additionally, if you or someone you know has been a victim of elder fraud, help is available at the National Elder Fraud Hotline 833-FRAUD-11 or 833-372-8311 and online at the Office for Victims of Crime.
Federal Subcontractor Agrees to Pay $5 Million to Settle False Claims Act AllegationsRead the Press Release
DETROIT - Merrill Technologies Group, Inc., and its subsidiaries, Merrill Tool and Machine, Inc. (MTM), Merrill Fabricators, Inc., Merrill Engineering & Integration, Inc., Merrill Aviation and Defense, Inc. (collectively, Merrill Technologies Group) have agreed to pay $5,000,000 to resolve allegations that MTM violated the False Claims Act by falsely overstating cost or pricing data included in a subcontract proposal for work under a contract with the U.S. Department of the Army.
In 2006, a government prime contractor and the U.S. Army’s Tank Automotive Command (TACOM) entered into a sole-source agreement under which the prime contractor agreed to manufacture and assemble components of upgrades to various armored vehicles. Thereafter, in 2010, the prime contractor entered into a subcontract with MTM to perform some of the work under its contract with TACOM. During that process, MTM submitted a subcontract proposal to the prime contractor, which the prime contractor ultimately relied on to negotiate a firm-fixed price contract with TACOM. The settlement announced today resolves the government’s allegations that MTM’s subcontract proposal overstated MTM’s cost or pricing data, thereby causing the prime contractor to negotiate and certify the prime contract with TACOM based on inflated costs, which in turn caused TACOM to pay overcharges at the prime and subcontractor levels.
“Government contractors must be completely above board when seeking payment under government contracts,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “This settlement demonstrates our commitment to hold accountable contractors who cause the Government to overpay, and who enrich themselves at taxpayer expense.” U.S. Attorney Ison added, “I would like to commend the leadership at Merrill Technologies Group for making things right once the government’s concerns were brought to its attention by federal investigators.”
“This settlement is the result of Army CID’s commitment to protect the government, the Army, and most importantly, the taxpayer, from those whose actions can erode the trust and confidence in our military and warfighting capability. Army CID and our law enforcement partners remain committed to hold accountable those who attempt to defraud the government,” said Keith K. Kelly, Special Agent-in-Charge Army Criminal Investigation Division, Fraud Field Office.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Chad Sibley (Relator). Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. In this case, Relator will receive $900,000.00 as part of the settlement. The qui tam case is captioned United States ex rel. Sibley v. Merrill Tool and Machine, et al., Case No 15-13066 (E.D. Mich.).
The resolution was the result of a coordinated effort by the United States Attorney’s Office for the Eastern District of Michigan, the U.S. Army Criminal Investigation Division, and the Defense Contract Audit Agency. The matter was handled by Assistant United States Attorney Carolyn Bell Harbin from the U.S. Attorney’s Office for the Eastern District of Michigan. The claims resolved by the settlement are allegations only; there has been no determination of liability.
Federal Indictments Allege International Organized Crime Syndicate Imported and Exported Narcotics Across North AmericaRead the Press Release
Ten people were arrested in multiple cities over the past day in relation to two federal indictments charging members of an organized crime syndicate who allegedly conspired to traffic and import hundreds of kilograms of cocaine and other controlled substances from Mexico through Los Angeles for export to Canada or re-distribution throughout the United States.
Arrest and search warrants were executed this morning by a coalition of international law enforcement partners in various cities, including Los Angeles; Sacramento, California; Miami; Odessa, Texas; Montreal; Toronto; and Calgary, Canada.
In addition to those arrested, two defendants were already in state custody, and seven defendants are fugitives, including three Mexicans who allegedly supplied wholesale quantities of narcotics to the traffickers in the United States and Canada.
The investigation, known as “Operation Dead Hand,” resulted in two federal grand jury indictments returned under seal in Los Angeles earlier this month. The indictments, which were unsealed today, collectively charge 19 individuals for their alleged roles in the organized crime syndicate, including Mexico-based suppliers who brought large quantities of narcotics into the United States, United States distributors, a Canadian who led an exportation organization, Canadian-based semi-truck drivers who operate in the United States, and a large-scale Canadian trafficker and Italian organized crime figure, Robert Scoppa, whom investigators allege was purchasing massive quantities of drugs on a wholesale basis.
“Today’s charges and arrests across North America reflect the Justice Department’s close coordination with our Mexican and Canadian partners to disrupt international narcotics trafficking,” said Deputy Attorney General Lisa O. Monaco. “These cases provide yet another example of how our agents and prosecutors work side-by-side to uncover and dismantle organized criminal networks peddling and profiting from deadly drugs.”
“Drug trafficking is a global problem being driven by sophisticated, organized crime groups who put profits over people’s lives,” said U.S. Attorney Martin Estrada for the Central District of California. “Motivated by greed, these criminals destroy lives, devastate families, and wreak havoc in our community. But this case shows that we will collaborate with our international partners to bring these criminal networks to justice. Those who traffic in highly addictive and dangerous drugs will be held accountable.”
“Until today, the organized members of this conspiracy operated with impunity throughout the many thousands of miles that comprise the North American continent, poisoning communities along the way,” said Assistant Director in Charge Donald Alway of the FBI Los Angeles Field Office. “The strength of this partnership cannot be overstated. The agents and detectives on this case did an outstanding job of pooling resources and worked seamlessly across borders toward a mutual goal of putting this massive drug pipeline out of business.”
Investigators developed information indicating the organized crime group used Canadian “handlers” and “dispatchers” who travelled from Canada to Los Angeles for short amounts of time. The handlers coordinated the pick-up and delivery of large shipments of cocaine and methamphetamine, which were loaded onto long-haul semi-trucks destined for Canada. Wholesale quantities of fentanyl were seized as a result of the investigation. The transportation was coordinated by a network of drivers working with dozens of trucking companies who made numerous border crossings from the United States to Canada via the Detroit Windsor Tunnel, the Buffalo Peace Bridge, and the Blue Water Bridge.
The indictments allege illicit drug trafficking activity cumulatively involving approximately 845 kilograms (1,860 pounds) of methamphetamine, 951 kilograms (2,092 pounds) of cocaine, 20 kilograms (44 pounds) of fentanyl, and 4 kilograms (nearly 9 pounds) of heroin. Over $900,000 in cash was seized during the investigation. The estimated wholesale value of the narcotics seized was between $16-28 million.
“Customs and Border Protection’s partnerships with international, federal, state, and local law enforcement agencies are a key component of our efforts to combat the transnational organized crime threat and prevent the movement of dangerous illicit drugs,” said Director of Field Operations Cheryl M. Davies of U.S. Customs and Border Protection (CBP)’s Los Angeles Field Office. “CBP will continue to invest in these partnerships as we work together to keep dangerous drugs out of our communities.”
U.S. v. Sandoval:
An 18-count indictment returned on Jan. 4 charges 10 defendants for their roles in an organization which allegedly began operating on an unknown date and continued to on or about March 2023. The charges in the indictment allege two drug trafficking conspiracies; conspiracy to import cocaine; drug exportation conspiracy; distribution/possession with intent to distribute controlled substances; possession of a firearm in furtherance of drug trafficking; and being a felon in possession of ammunition.
The defendants charged in this indictment are:
- Jesus Ruiz Sandoval Jr., 45, of Guadalajara, Mexico;
- John Joe Soto, 42, of Guadalajara;
- Eduardo Carvajal, 50, of Guadalajara;
- Roberto Scoppa, 55, of Montreal;
- Ayush Sharma, 25, of Brampton, Canada;
- Subham Kumar, 29, of Calgary, Canada;
- Carlos Barragan, 51, of Long Beach, California;
- Corell Carbajal Garcia, 38, of Hemet, California;
- Humberto Luis Bermejo, 26, of Odessa, Texas; and
- Esteban Sinhue Mercado, 24, of San Jacinto, California.
Sandoval Jr., who is currently a fugitive, is believed to be a large-scale drug trafficker involved in importing drugs from Mexico into the United States for distribution. John Joe Soto is believed to work under Sandoval. Eduardo Carvajal, also an alleged large-scale drug-trafficker, is believed to export drugs from the United States to Canada. Robert Scoppa is an alleged Canadian drug trafficker with close ties to an Italian organized crime family in Montreal. Barragan is an alleged drug trafficker who lives in the United States. Sharma and Kumar are semi-truck drivers involved in exporting drugs to Canada.
U.S. v. Sidhu:
A 23-count indictment returned on Jan. 3 charges nine defendants for their roles in a related criminal enterprise which allegedly operated from at least September 2020 through February 2023. In addition to a drug trafficking conspiracy, the indictment alleges a drug exportation conspiracy and substantive counts of distribution/possession with intent to distribute controlled substances.
The defendants charged in this indictment are:
- Guramrit Sidhu, 60, of Brampton, Canada;
- Ivan Gravel Gonzalez, 32, a resident of both the Dominican Republic and Montreal;
- Daniel Antonio Trejo Huerta, 43, of Riverside, California;
- Ignacio Lopez, 53, a resident of Santa Ana, California;
- Daniel Joseph Alan Herrera, 27, of Miami;
- Orlando Velasco Jr., 29, of Stanton, California;
- Angel Larry Sandoval, 32, of Bell Gardens, California;
- Jorge Pina Nicols, 22, of Long Beach, California; and
- Bryan Ureta Valenzuela, 24, of Ontario, California.
Sidhu, also known as King, is alleged to have orchestrated the trafficking and exportation of large-scale quantities of controlled substances to Canada working with several co-defendants described as suppliers. Ivan Gravel Gonzalez is alleged to be part of Sidhu’s exportation team based in the United States. Sidhu is charged with one count of engaging in a continuing criminal enterprise. According to the indictment, Sidhu occupied a position of organizer, supervisor, and manager, and in this role obtained substantial income and resources.
If convicted, each defendant faces maximum penalties ranging from 40 years to life in prison. If convicted, Sidhu would face a mandatory minimum penalty of 20 years in prison. If convicted, Sandoval and Carvajal each would face a mandatory minimum penalty of 15 years in prison.
The FBI, the Los Angeles Police Department and the Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force (LA IMPACT), the Royal Canadian Mounted Police, CBP, and law enforcement authorities in Mexico investigated the case. Significant assistance was provided by Homeland Security Investigations and the Drug Enforcement Administration. The Justice Department’s Office of International Affairs, the FBI’s Legal Attaché Offices in Mexico City, Ottawa, and New Delhi, and the FBI Miami, El Paso, and Buffalo Field Offices provided substantial assistance and support.
Operation Dead Hand is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant U.S. Attorney Brittney M. Harris for the Central District of California’s International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Indictments Allege International Organized Crime Syndicate Imported and Exported Narcotics Across North AmericaRead the Press Release
LOS ANGELES – Ten people were arrested in multiple cities over the past day in relation to two federal indictments charging members of an organized crime syndicate who allegedly conspired to traffic and import hundreds of kilograms of cocaine and other controlled substances from Mexico through Los Angeles for export to Canada or re-distribution throughout the United States.
Arrest and search warrants were executed this morning by a coalition of international law enforcement partners in various cities, including Los Angeles; Sacramento, California; Miami; Odessa, Texas; and the Canadian cities of Montreal, Toronto and Calgary.
In addition to those arrested, two defendants were already in state custody, and seven defendants are fugitives, including three Mexicans who allegedly supplied wholesale quantities of narcotics to the traffickers in the United States and Canada.
The investigation, known as “Operation Dead Hand,” resulted in two federal grand jury indictments returned under seal in Los Angeles earlier this month. The indictments, which were unsealed today, collectively charge 19 individuals for their alleged roles in the organized crime syndicate, including Mexico-based suppliers who brought large quantities of narcotics into the United States, United States distributors, a Canadian who led an exportation organization, Canadian-based semi-truck drivers who operate in the United States, and a large-scale Canadian trafficker and Italian organized crime figure, Robert Scoppa, whom investigators allege was purchasing massive quantities of drugs on a wholesale basis.
“Today’s charges and arrests across North America reflect the Justice Department’s close coordination with our Mexican and Canadian partners to disrupt international narcotics trafficking,” said Deputy Attorney General Lisa O. Monaco. “These cases provide yet another example of how our agents and prosecutors work side-by-side to uncover and dismantle organized criminal networks peddling and profiting from deadly drugs.”
“Drug trafficking is a global problem being driven by sophisticated, organized crime groups who put profits over people’s lives,” said United States Attorney Martin Estrada. “Motivated by greed, these criminals destroy lives, devastate families, and wreak havoc in our community. But this case shows that we will collaborate with our international partners to bring these criminal networks to justice. Those who traffic in highly addictive and dangerous drugs will be held accountable.”
“Until today, the organized members of this conspiracy operated with impunity throughout the many thousands of miles that comprise the North American continent, poisoning communities along the way,” said Donald Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The strength of this partnership cannot be overstated. The agents and detectives on this case did an outstanding job of pooling resources and worked seamlessly across borders toward a mutual goal of putting this massive drug pipeline out of business.”
Investigators developed information indicating the organized crime group used Canadian “handlers” and “dispatchers” who travelled from Canada to Los Angeles for short amounts of time. The handlers coordinated the pick-up and delivery of large shipments of cocaine and methamphetamine, which were loaded onto long-haul semi-trucks destined for Canada. Wholesale quantities of fentanyl were seized as a result of the investigation. The transportation was coordinated by a network of drivers working with dozens of trucking companies who made numerous border crossings from the United States to Canada via the Detroit Windsor Tunnel, the Buffalo Peace Bridge, and the Blue Water Bridge.
The indictments allege illicit drug trafficking activity cumulatively involving approximately 845 kilograms (1860 pounds) of methamphetamine, 951 kilograms (2,092 pounds) of cocaine, 20 kilograms (44 pounds) of fentanyl and 4 kilograms (nearly 9 pounds) of heroin. Over $900,000 in cash was seized during the investigation. The estimated wholesale value of the narcotics seized was between $16-28 million.
“Today, organized crime knows no boundaries,” said Michel Moore, the Chief of Police of the Los Angeles Police Department. “It is through the international cooperation between LAPD, the FBI, the United States Attorney’s Office for the Central District, the Royal Canadian Mounted Police and others that we were able to apprehend and charge multiple individuals who have imported significant amounts of drugs into this country. I am proud of our continued work with our federal and international partners to bring safety to our respective communities, and reduce the lives lost by these illicit drugs.”
“Organized crime groups continue to bring increasingly toxic drugs into our communities, a trend that has had a devastating impact on many Canadians, and most regrettably, our children and youth,” said Royal Canadian Mountain Police Chief Superintendent, Mathieu Bertrand. “As Canada's national police force, the RCMP is dedicated to disrupting the flow of illegal drugs into our country, looking beyond our borders to where these threats originate and stopping them at the source. Operation Dead Hand demonstrates the close work we do with our international partners to combat transnational organized crime, helping keep our communities safe on both sides of the border.”
“Customs and Border Protection’s partnerships with international, federal, state and local law enforcement agencies are a key component of our efforts to combat the transnational organized crime threat and prevent the movement of dangerous illicit drugs,” said Cheryl M. Davies, the Director of Field Operations for U.S. Customs and Border Protection’s Los Angeles Field Office. “CBP will continue to invest in these partnerships as we work together to keep dangerous drugs out of our communities.”
“California is safer today thanks to this collaborative effort between our federal and local law enforcement partners,” said California Attorney General Rob Bonta. “Illicit drugs such as fentanyl can kill and have no place in our neighborhoods. I am proud of the task force officers working hard in our L.A IMPACT task force, and inspired by their commitment to ensuring the safety and well-being of all Californians.”
U.S. v. Sandoval:
An 18-count indictment returned on January 4 charges 10 defendants for their roles in an organization which allegedly began operating on an unknown date and continued to on or about March 2023. The charges in the indictment allege two drug trafficking conspiracies; conspiracy to import cocaine; drug exportation conspiracy; distribution/possession with intent to distribute controlled substances; possession of a firearm in furtherance of drug trafficking and being a felon in possession of ammunition.
The defendants charged in this indictment are:
- Jesus Ruiz Sandoval Jr., 45, of Guadalajara, Mexico;
- John Joe Soto, 42, of Guadalajara, Mexico;
- Eduardo Carvajal, 50, of Guadalajara, Mexico;
- Roberto Scoppa, 55, of Montreal, Canada;
- Ayush Sharma, 25, of Brampton, Canada;
- Subham Kumar, 29, of Calgary, Canada;
- Carlos Barragan, 51, of Long Beach, California;
- Corell Carbajal Garcia, 38, of Hemet, California;
- Humberto Luis Bermejo, 26, of Odessa, Texas; and
- Esteban Sinhue Mercado, 24, of San Jacinto, California.
Sandoval Jr., who is currently a fugitive, is believed to be a large-scale drug trafficker involved in importing drugs from Mexico into the United States for distribution. John Joe Soto is believed to work under Sandoval. Eduardo Carvajal, also an alleged large-scale drug-trafficker, is believed to export drugs from the United States to Canada. Robert Scoppa is an alleged Canadian drug trafficker with close ties to an Italian organized crime family in Montreal. Barragan is an alleged drug trafficker who lives in the United States. Sharma and Kumar are semi-truck drivers involved in exporting drugs to Canada.
U.S. v. Sidhu:
A 23-count indictment returned on January 3 charges nine defendants for their roles in a related criminal enterprise which allegedly operated from at least September 2020 through February 2023. In addition to a drug trafficking conspiracy, the indictment alleges a drug exportation conspiracy and substantive counts of distribution/possession with intent to distribute controlled substances.
The defendants charged in this indictment are:
- Guramrit Sidhu, 60, of Brampton, Canada;
- Ivan Gravel Gonzalez, 32, a resident of both the Dominican Republic and Montreal, Canada;
- Daniel Antonio Trejo Huerta, 43, of Riverside, California;
- Ignacio Lopez, 53, a resident of Santa Ana, California;
- Daniel Joseph Alan Herrera, 27, of Miami;
- Orlando Velasco Jr., 29, of Stanton, California;
- Angel Larry Sandoval, 32, of Bell Gardens, California;
- Jorge Pina Nicols, 22, of Long Beach, California; and
- Bryan Ureta Valenzuela, 24, of Ontario, California.
Sidhu is alleged to have orchestrated the trafficking and exportation of large-scale quantities of controlled substances to Canada working with several co-defendants described as suppliers. Ivan Gravel Gonzalez is alleged to be part of Sidhu’s exportation team based in the United States. Sidhu, also known as “King,” is charged with one count of engaging in a continuing criminal enterprise. According to the indictment, Sidhu occupied a position of organizer, supervisor and manager, and in this role obtained substantial income and resources.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, each defendant would face maximum penalties ranging from 40 years to life in federal prison. If convicted, Sidhu would face a mandatory minimum penalty of 20 years in prison. If convicted, Sandoval and Carvajal each would face a mandatory minimum penalty of 15 years in prison.
This case is part of an ongoing investigation by international law enforcement partners including the FBI, the Los Angeles Police Department and the Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force (LA IMPACT), the Royal Canadian Mounted Police, U.S. Customs and Border Protection, and law enforcement authorities in Mexico. Significant assistance was provided by Homeland Security Investigations and the Drug Enforcement Administration.
The Justice Department’s Office of International Affairs; the FBI’s Legal Attaché Offices in Mexico City, Ottawa and New Delhi; and the FBI Field Offices in Miami, El Paso and Buffalo provided substantial assistance and support.
Operation Dead Hand is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
Assistant United States Attorney Brittney M. Harris of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.
Federal Indictment Charges Man with Assaulting and Robbing Two Postal Carriers in Chicago SuburbRead the Press Release
CHICAGO — A federal grand jury has indicted a man for allegedly assaulting and robbing two postal carriers in the Chicago suburb of Evanston, Ill.
EVERETT G. PULLETT, 33, of Evanston, Ill., assaulted and robbed a postal carrier on Sept. 26, 2022, and another on Sept. 27, 2022, according to an indictment unsealed Monday in U.S. District Court in Chicago. In the second robbery, Pullett displayed a firearm while assaulting and injuring the postal carrier, the indictment states. Law enforcement later recovered from Pullett a U.S. Postal Service key, the indictment states.
Pullett is currently detained in law enforcement custody. He was arraigned Monday in federal court in Chicago and pleaded not guilty to charges of assaulting and robbing the postal carriers and illegally possessing the key. The most serious offense – the second assault that injured and jeopardized the life of the postal carrier – carries a maximum sentence of 25 years in federal prison, while the first assault and the key possession are each punishable by up to ten years.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Ruth Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service. Valuable assistance was provided by the Evanston Police Department. The government is represented by Assistant U.S. Attorney Stephanie C. Stern.
“U.S. Postal Service employees delivering mail to the American people must be allowed to do so safely and securely,” said Acting U.S. Attorney Pasqual. “Individuals who use violence against postal carriers to gain access to the public's mail must be held accountable.”
“This indictment is another example of the roles postal inspectors and our law enforcement partners play in protecting Postal Service employees and customers,” said Inspector-in-Charge Mendonça. “As Postal Service employees continue to play an integral role in our communities, we are clear in our resolve to aggressively investigate anyone who brings harm to these invaluable public servants.”
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Pullett indictmentFayette Woman Pleads Guilty to Fraudulently Obtaining Hydrocodone PillsRead the Press Release
Jackson, Miss. – A Fayette woman pleaded guilty to fraudulently obtaining possession of a controlled substance.
According to court documents and facts admitted in open court, Rosie Marie George, 57, used her position as a pharmacy technician at a pharmacy in Jefferson County, Mississippi to fraudulently acquire large numbers of prescription hydrocodone pills from the pharmacy’s inventory.
George will be sentenced on April 30, 2024, and faces a maximum penalty of four years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee and Acting Special Agent in Charge Steve Hofer of the Drug Enforcement Administration made the announcement.
The case was investigated by the DEA as well as the Mississippi Board of Pharmacy and the Mississippi Bureau of Narcotics.
Assistant U.S. Attorney Charles W. Kirkham is prosecuting the case.
Financial Advisor Indicted for Wire FraudRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on January 17, 2024, a grand jury returned an indictment charging Robert C. Starnes with two counts of committing wire fraud, in violation of Title 18, United States Code, Section 1343.
According to the indictment, Starnes allegedly operated Robert C. Starnes Financial Services, and was a registered investment advisor. Starnes, citing his role as an investment advisor, would seek investment funds from his clients, promising safe returns on those investments. Once someone agreed to invest, Starnes would ask for funds, which he then deposited into his personal bank account. The indictment alleges that Starnes then used these funds to pay his personal expenses. The indictment further explains that Starnes would provide investors with fabricated account statements showing fake investment returns, and, when an investor asked to withdraw money from these accounts, Starnes would send them funds to continue the scheme by persuading them that he had invested their assets.
If convicted, each count carries a maximum of twenty years in prison and up to three years of supervised release.
The Wisconsin Department of Criminal Investigation and the United States Internal Revenue Service investigated the case, which Assistant United States Attorney Carter B. Stewart will prosecute.
The public is cautioned that an indictment or criminal complaint is merely a charge, and the defendant is presumed innocent until and unless proven guilty.
# # #
For Additional Information Contact:
Public Information Officer
414-297-1700
Follow us on Twitter
Duo Responsible for Three Armed Robberies in Central Indiana Sentenced to a Combined Ten ½ Years in Federal PrisonRead the Press Release
INDIANAPOLIS- Corey Rice, 19, and Antonio Williams, 19, both of Indianapolis, have been sentenced to 60 and 66 months respectively in federal prison after pleading guilty to three counts of interference with commerce by robbery.
According to court documents, on April 23, 2023, Corey Rice and Antonio Williams robbed a Subway restaurant located in Beech Grove. Both men approached the employees and threatened them with weapons that appeared to be firearms, demanded cash, and obtained about $400.
On April 30, 2023, at approximately 5:15pm, Rice and Williams robbed Indy Smoke Time in Greenwood. They again brandished apparent firearms at the employees, demanded cash, and walked out with $570. On the same day, just 45 minutes later, Rice and Williams robbed a Family Dollar store on West Washington Street in Indianapolis, also brandishing apparent firearms. The duo left with an unidentified sum of money.
Approximately ten minutes after the Family Dollar robbery, IMPD officers observed Rice and Williams arrive at an apartment complex on the Central Canal in downtown Indianapolis. Prior to making arrests, officers observed both defendants dispose of grey trash bags. Williams was subsequently interviewed and admitted that he threw the cash from the robberies into the canal after seeing police approach.
“Armed robbery is a serious offense that puts innocent lives at risk for nothing more than a quick buck. These young men falsely believed they could terrorize and threaten law-abiding citizens and businesses without any repercussion,” said U.S. Attorney Zachary A. Myers. “We are grateful for the quick actions taken by IMPD and FBI to halt these criminals in their track and reduce the possibility of even more gun violence.”
“These two men used guns to intimidate workers, putting innocent people in fear for their lives so they could steal a few hundred dollars from the cash registers. The sentences imposed send a clear message that these are serious crimes and the people who utilize these violent acts will be held accountable,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “Through continued collaboration with our partners, the FBI will work tirelessly to ensure the safety of our communities.”
FBI and IMPD investigated this case. The sentence was imposed by U.S. District Court Judge Sarah Evans Barker. Judge Barker also ordered that Rice and Williams each be supervised by the U.S. Probation Office for 3 years following their release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Jeremy C. Fugate, who prosecuted this 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.
###
Dubuque Man Sentenced to Federal Prison for Being a Prohibited Person in Possession of a FirearmRead the Press Release
A man who possessed a firearm as a felon and unlawful drug user was sentenced today to nine years in federal prison.
Eric Thomas, age 49, from Dubuque, Iowa, received the prison term after an August 7, 2023 guilty plea to one count of being a prohibited person in possession of a firearm.
At the plea hearing, Thomas admitted that, in January 2023, he possessed a Ruger pistol after having been convicted of multiple felonies and while being an unlawful drug user. Evidence at the sentencing hearing showed that, on January 23, 2023, Thomas sold a mixture of heroin and fentanyl to another person while at Thomas’s residence. That same day, law enforcement officers searched Thomas’s residence and located a Ruger pistol and 2.14 grams of a mixture containing heroin and fentanyl in Thomas’s bedroom.
Thomas was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Thomas was sentenced to 108 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Thomas is being held in the United States Marshal’s custody until he can be transported to a federal prison.
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.
The case was prosecuted by Assistant United States Attorney Devra Hake and was investigated by the Dubuque Drug Task Force (consisting of the Dubuque County Sheriff’s Office and the Dubuque Police Department).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-1012.
Follow us on Twitter @USAO_NDIA.
Drug Dealers Sentenced to 108 Months Federal Prison for Attempted Possession with Intent to Distribute MethamphetamineRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendants Francisco Herrera Salas, age 43, from Barrigada, Guam and Joseph Mesa Babauta, age 48, from Agat, Guam, were sentenced each to serve 108 months in federal prison. They were convicted of Attempted Possession with Intent to Deliver Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 841(a)(1). The Court also ordered both defendants to serve 3 years of supervised release following imprisonment and to pay a mandatory $100 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
In December 2020, federal agents intercepted three priority mail packages containing methamphetamine, one of which was addressed to “Frankie Salas.” The Salas package contained 1,781 grams of methamphetamine, which was replaced with a sham substance. During a controlled delivery, Salas claimed the package and drove to a location in Agat. Agents were alerted that the package had been opened. They also saw Babauta driving a vehicle away from the scene. Agents then stopped the vehicle and found the sham substance from the Salas package on the front seat. Soon after, agents stopped Salas in the same vehicle he used to pick up the package from the post office. Both Babauta and Salas had clue spray on their hands and clothing, indicating they had opened the Salas package or handled the contents.
“The Postal Inspection Service continues to interdict drug trafficking in our mail system,” stated United States Attorney Anderson. “We will aggressively prosecute those associated with this illicit activity. As this case demonstrates, a conviction under federal law can result in substantial penalties.”
The United States Postal Inspection Services, Drug Enforcement Administration Los Angeles Field Division – Guam Office, and Guam Customs & Quarantine Agency investigated this matter.
This case was prosecuted by Stephen F. Leon Guerrero and Benjamin K. Petersburg, Assistant United States Attorneys in the District of Guam.
Drug Boss Melvin Naputi Sentenced to 360 Months Federal Prison for Trafficking Methamphetamine and Felon in Possession of a FirearmRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Melvin John Salas Naputi, age 51, from Guam, was sentenced to 30 years imprisonment. Naputi was charged and convicted of Attempted Possession with Intent to Deliver Fifty or More Grams of Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 841(a)(1) and Felon in Possession of a Firearm and Ammunition, in violation of 18 U.S.C. §922(g)(1). The Court also ordered 10 years of supervised release following imprisonment and a mandatory $200 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On August 8, 2018, U.S. Marshals executed a federal arrest warrant for Naputi at a hotel room in Tumon, Guam. A female accompanied Naputi at the room. She was present as officers conducted a safety sweep, during which drug paraphernalia was found in plain sight. The female admitted that there were illegal drugs and a firearm in the hotel room and consented to a more thorough search. Law enforcement found 15 grams of methamphetamine in an ice bucket, 4.59 grams of methamphetamine in a pouch, cocaine, drug packaging material, drug paraphernalia, firearms, and ammunition as well as $7,405 in drug proceeds.
On April 4, 2021, U.S. Postal Inspection Services (USPIS) intercepted a package addressed to “Tina Lay,” which contained 926 grams of methamphetamine with a purity level of 100%. USPIS replaced the drugs with a sham substance and coordinated with task force officers for the delivery of the package to the addressed recipient. The package was delivered to a mailbox and then picked up by a male riding a motorcycle. It was tracked to a residence located in Mangilao, Guam. Task force officers entered the home once package was opened. Naputi climbed out of a window and ran away leaving behind his backpack, cell phones, the package, and the vehicle. His backpack was found to contain $24,075 in cash, plastic baggies, three scales, calibration weights, and 821 grams of methamphetamine. Two plastic bags on the front seat of the vehicle contained $71,000 in cash.
Naputi was arrested in July 2023. He was found in possession of 3,442 grams of methamphetamine (roughly 7 ½ pounds) and $219,144 in cash, amounting to the illegal proceeds of drug distribution. Law enforcement also seized vehicles, electronics, jewelry, and other miscellaneous items.
“Naputi was a serious threat to public safety in Guam,” stated United States Attorney Anderson. “The outstanding work of our federal partners and Guam agencies brought this defendant to justice. We will continue to focus federal resources to combat drug trafficking and firearm violations in an effort to protect our communities.”
“Organized trafficking of methamphetamine and other illegal drugs contributes to the unacceptable level of violence in Guam and the Northern Mariana Islands. Those who persist in engaging in dangerous criminal conduct despite determined efforts to dissuade them will be held accountable,” said Homeland Security Investigations Special Agent in Charge John F. Tobon. “Dismantling drug trafficking organizations and taking guns out of the hands criminals, is a critical part of our fight to reduce violent crime in our communities.”
“Following the issuance of a warrant of arrest, a comprehensive law enforcement effort was undertaken to locate and capture this fugitive. During the fugitive investigation, credible information surfaced concerning this fugitive’s continuing criminal activity,” said Deputy U.S. Marshal, Pedro Patrick Cortez. “The United States Marshals Service is committed to capturing fugitives, disabling their criminal activity and keeping our community safe.”
“Melvin Naputi was a fugitive for years and a drug dealer known for violence for years, if not decades,” said Resident Agent in Charge Kenneth L. Bowman. “It’s good that he will be off the streets of Guam for a long time.”
“Drugs and firearms make a very deadly combination to the safety of our communities,” said ATF Seattle Field Division Special Agent in Charge Jonathan E. Blais. “ATF will not stop in our mission of investigating those involved in actions such as these. This sentence sends a strong message to Mr. Salas that this behavior will not be tolerated.”
“The FBI remains committed to working with our law enforcement partners to remove dangerous criminals who destroy and harm lives in our neighborhoods in Guam,” said FBI Special Agent in Charge Steven Merrill. “Justice was served today as Naputi was sentenced for distribution of methamphetamine and being a felon in possession of firearms.”
“Postal inspectors are committed to keeping dangerous weapons and controlled substances like methamphetamine out of the mail and off the street in Guam and across the United States, " said San Francisco Division Inspector-in-Charge Rafael Nuñez. "I would like to thank our law enforcement partners at the Guam Customs and Quarantine Agency, the Guam Police Department, and the federal government for sharing this responsibility with us.”
This case was a joint investigation conducted by United States Marshals Service, Homeland Security Investigations (HSI), Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration Los Angeles Field Division – Guam Office, Department of Homeland Security, United States Postal Inspection Services, Federal Bureau of Investigation, and the Guam Police Department.
The case was prosecuted by Rosetta L. San Nicolas, Assistant United States Attorney in the District of Guam.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
District Man Found Guilty of Armed Carjacking of Handyman’s Car, Which He Crashed During A Police ChaseRead the Press Release
WASHINGTON – Gianni Saunders, 21, of Washington, D.C., was found guilty today of the May 24, 2023, armed carjacking of a handyman as the victim exited his car in the 2800 block of Denver Street SE, announced U.S. Attorney Matthew M. Graves and Metropolitan Police Department Chief Pamela A. Smith.
Following a week-long trial in the Superior Court of the District of Columbia, the jury found Saunders guilty of armed carjacking, armed robbery, and two counts of possession of a firearm during a crime of violence. The Honorable Errol Arthur scheduled sentencing for April 10, 2024. At sentencing, Saunders faces a mandatory minimum sentence of 15 years in prison.
According to the government’s evidence, at approximately 1:24 pm on May 24, 2023, the victim pulled up to the 2800 block of Denver Street SE to make repairs inside a residential building. Saunders, armed with a handgun with an extended magazine, demanded the victim’s car keys. Saunders then drove off in the victim’s black Honda Civic. Police apprehended Saunders two days later when Forest Heights, Maryland, police officers attempted a traffic stop of the stolen car. Saunders led police on a high-speed chase before causing a multi-car crash. Police pulled Saunders from the driver’s seat after the crash and recovered a handgun with an extended magazine from the car, along with the victim’s identification documents. The police investigation uncovered surveillance video that showed Saunders parking the stolen car at his residence hours after the carjacking; Saunders’ appearance and clothing were consistent with the victim’s description of the carjacker. The government also introduced DNA evidence, which linked Saunders to the handgun.
This case was investigated by the Metropolitan Police Department. Invaluable assistance was provided by the Forest Heights Police Department from the inception of the case through trial. It was prosecuted by Assistant U.S. Attorneys Gregory Gimenez and Iris McCranie of the Major Crimes Unit of the U.S. Attorney’s Office for the District of Columbia.
Detroit Man Convicted of Sex Trafficking and Production of Child Pornography ChargesRead the Press Release
DETROIT – A Detroit man was convicted by a federal jury today on charges of sex trafficking a minor and producing child pornography, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan.
Lavonte Sampson, 39, was convicted following a five-day jury trial before United States District Judge Gershwin A. Drain. The jury deliberated approximately two hours before returning their verdicts.
Evidence presented at the trial established the investigation began when the Federal Bureau of Investigation’s Southeast Michigan Trafficking and Exploitation Crimes Task Force conducted an undercover operation to recover a missing 15-year-old girl. A search of her cellular phone uncovered Facebook messages wherein Sampson recruited her to engage in commercial sex work. He took pictures of her and advertised her online for commercial sex. He took her to a motel in Detroit, where he arranged dates between her and other men and collected the proceeds. Sampson also had sex with the victim, recorded it without the victim’s knowledge, and sent that video recording to the undercover agent when arranging a date.
U.S. Attorney Ison stated, “This defendant exploited a vulnerable child. He sold her body to other men for his own personal gain. Combatting human trafficking remains one of our office’s top priorities, especially when it involves children. We will continue to use every tool in our arsenal to battle the sexual exploitation of vulnerable victims in our communities and ensure that predators are held accountable. And while we aggressively pursue this type of justice for all human trafficking victims, at all times, this verdict today, during the end of Human Trafficking Prevention Month, puts a fine point on our unwavering commitment to this important work.”
“The FBI is deeply committed to protecting the most vulnerable members of our society, particularly our children, and bringing predators like the defendant to justice,” said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. “We would like to extend our appreciation to our wide network of law enforcement partners, particularly those on the FBI’s Southeast Michigan Trafficking and Exploitation Crimes (SEMTEC) Task Force, for their critical support in investigating sexual predators who commit crimes against children. The FBI encourages continued vigilance, cooperation, and reporting from the public to help identify and recover victims and bring perpetrators to justice. If you believe you may have any information on crimes of this nature, please contact the National Center for Missing & Exploited Children at 1-800-THE-LOST or online at report.cybertip.org.”
The Court will schedule a sentencing hearing at a later date. Sampson faces a mandatory-minimum sentence of 15 years in prison and a maximum up to life.
January is Human Trafficking Prevention Month, a time to educate ourselves and raise awareness in our communities about this devastating crime that violates the most basic human rights –freedom. If you are a victim of human trafficking or suspect you know one, please call the FBI, your local law enforcement, or the National Human Trafficking Hotline at 1-888-373-7888.
This case was investigated by the Federal Bureau of Investigation’s Southeast Michigan Trafficking and Exploitation Crimes Task Force and was prosecuted by Assistant U.S. Attorneys David Cowen, Jeanine Brunson, and Ranya Elzein.
Columbus, Ohio, Resident Sentenced to Prison and Supervised Release for Fentanyl and Heroin OffensesRead the Press Release
PITTSBURGH, Pa. – A resident of Columbus, Ohio, was sentenced to 37 months in federal prison for conspiring to distribute fentanyl and heroin and for possessing fentanyl and heroin with intent to distribute, United States Attorney Eric G. Olshan announced today.
Jackie Bell, 32, was sentenced by United States District Judge Cathy Bissoon, who also ordered Bell to serve six years of supervised release following his prison sentence.
According to information presented to the Court, Bell served as an interstate source of fentanyl and heroin for drug dealers in Mercer County in 2021. At that time, Bell had 2012 and 2018 fentanyl and heroin trafficking and possession convictions from two Ohio prosecutions that both involved fatal drug overdoses, and also was on probation in Ohio following a separate 2019 conviction for aggravated drug possession.
Assistant United States Attorneys Benjamin C. Dobkin and Craig W. Haller prosecuted this case on behalf of the United States.
United States Attorney Olshan commended 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 for the investigation leading to the successful prosecution of Bell.
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.
Collins Sex Offender Sentenced to 17 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Collins, Mo., man who is a registered sex offender was sentenced in federal court today for receiving child pornography on his cell phone.
Billy Puckett, 39, was sentenced by U.S. District Judge M. Douglas Harpool to 17 years in federal prison without parole.
On June 6, 2023, Puckett was found guilty at trial of one count of receiving child pornography. Puckett, a registered sex offender, has two prior felony convictions for statutory rape and a prior felony conviction for statutory sodomy.
A Missouri State Highway Patrol trooper initiated a traffic stop near the intersection of Highway 13 and East 316 Road in Bolivar, Mo., on Aug. 28, 2020. The trooper, who learned that Puckett was a registered sex offender, searched Puckett’s vehicle and found a cell phone plugged into a cigarette lighter. When the phone’s screen activated, the trooper noticed Puckett had Facebook and Snapchat applications on the phone, which were not authorized due to Puckett’s status as a registered sex offender. The trooper seized Puckett’s phone, on which he located multiple images of child pornography, and Puckett was arrested.
Investigators conducted a forensic examination of Puckett’s phone and found hundreds of images of child pornography.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Missouri State Highway Patrol.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Citizen of Dominican Republic Sentenced to 79 Months in Prison for $16 Million COVID-19 Unemployment Benefits Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that YOHAURIS RODRIGUEZ HERNANDEZ was sentenced to 79 months in prison in connection with her participation in a fraudulent scheme to obtain over $16 million in Government benefits intended to provide relief to individuals without employment during the COVID-19 pandemic. RODRIGUEZ HERNANDEZ previously pled guilty to conspiracy to commit wire fraud, theft of government funds, and aggravated identity theft before U.S. District Judge Philip M. Halpern, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Yohauris Rodriguez Hernandez participated in a scheme that systematically targeted Government funds established as a safety net for millions of people across the United States struggling to make ends meet during the COVID-19 pandemic. Today’s sentence demonstrates that this Office and our law enforcement partners continue to work tirelessly to prosecute those who sought to commit pandemic relief fraud.”
According to court documents and statements made during court proceedings:
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in unemployment insurance benefits payable to eligible, lawful workers and administered through state agencies, such as the New York State Department of Labor (“NYS DOL”) in New York, in accordance with federal laws and regulations.
From February 2020 through December 2020, RODRIGUEZ HERNANDEZ and her co-defendant, Henry Fermin, along with others, participated in a scheme to obtain COVID-19 unemployment benefits through the fraudulent filing and verification of hundreds of benefit applications using the names and social security numbers of numerous other individuals. Law enforcement agencies were first alerted to the scheme after RODIRGUEZ HERNANDEZ and Fermin fled a Yonkers hotel in December 2020, leaving behind in their previously occupied room approximately 747 pieces of mail from the NYS DOL. Those pieces of mail contained, among other unemployment benefit-related materials, NYS DOL-issued prepaid debit cards for numerous other individuals linked to approximately 568 New York State unemployment insurance benefit accounts. Over the course of the relevant time period, RODRIGUEZ HERNANDEZ and Fermin exchanged numerous text messages, images, and other communications that included personal identifying information — such as names, social security numbers, and dates of birth — that were used in connection with the filing and verification of numerous fraudulent applications for unemployment benefits primarily in New York as well as other states. RODRIGUEZ HERNANDEZ also recruited and bribed a letter carrier of the U.S. Postal Service, who in turn enlisted two other postal workers, to collectively intercept NYS DOL mail that RODRIGUEZ and her co-conspirators directed to addresses on each of the postal workers’ respective postal routes.
Overall, the fraudulent scheme resulted in at least approximately $16.1 million in unemployment insurance benefit payments authorized across hundreds of accounts and at least approximately $3.2 million in actual benefit payments disbursed.
* * *
In addition to the prison term, RODRIGUEZ HERNANDEZ, 42, of the Dominican Republic, was sentenced to three years of supervised release and ordered to forfeit $3,294,368.50 and to pay $3,294,368.50 in restitution.
Mr. Williams praised the outstanding investigative work of the Department of Labor Office of Inspector General, the U.S. Postal Inspection Service, the Social Security Administration Office of Inspector General, and the U.S. Postal Service Office of Inspector General. Mr. Williams also thanked the City of Yonkers Police Department, the NYS DOL, Homeland Security Investigations, Immigrations and Customs Enforcement, and the New York City Police Department for their assistance with the investigation.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Kevin Sullivan is in charge of the prosecution.
Chinese Nationals Charged with Illegally Exporting U.S-Origin Electronic Components to Iran and Iranian Military AffiliatesRead the Press Release
WASHINGTON – An indictment, filed in the District of Columbia, charges Chinese nationals Baoxia Liu a/k/a Emily Liu, 42, Yiu Wa Yung a/k/a Stephen Yung, 63, Yongxin Li a/k/a Emma Lee, 36, and Yanlai Zhong a/k/a Sydney Chung, 40, with various federal crimes related to a years-long conspiracy to unlawfully export and smuggle U.S.-origin electronic components from the United States to Iran. According to court documents, Baoxia Liu aka Emily Liu; Yiu Wa Yung aka Stephen Yung; Yongxin Li aka Emma Lee; and Yanlai Zhong aka Sydney Chung unlawfully exported and smuggled U.S. export controlled items through China and Hong Kong ultimately for the benefit of entities affiliated with the Islamic Revolutionary Guard Corps (IRGC) and Ministry of Defense and Armed Forces Logistics (MODAFL), which supervises Iran’s development and production of missiles, weapons, and military aerial equipment to include Unmanned Aerial Vehicles (UAVs).
The indictment was announced by U.S. Attorney Matthew M. Graves, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, FBI Special Agent in Charge Cheyvoryea Gibson of the Detroit Field Office, and Special Agent in Charge Aaron Tambrini of the Department of Commerce’s Chicago Field Office, Office of Export Enforcement.
According to the indictment, beginning as early as May 2007 and continuing until at least July 2020, the defendants utilized an array of front companies in the People’s Republic of China (PRC) to funnel dual-use U.S.-origin items, including electronics and components that could be utilized in the production of UAVs, ballistic missile systems, and other military end uses, to sanctioned Iranian entities with ties to the Islamic Revolutionary Guard Corps (IRGC) and Ministry of Defense and Armed Forces Logistics (MODAFL) such as Shiraz Electronics Industries (SEI), Rayan Roshd Afzar, and their affiliates.
Throughout the course of the conspiracy, the defendants concealed the fact that the goods were destined for Iran and Iranian entities and made material misrepresentations to U.S. companies regarding the end destination and end users. These deceptive practices caused the U.S. companies to export goods to the defendants’ PRC-based front companies under false pretenses and under the guise that the ultimate destination of these products was China as opposed to Iran. As a result, a vast amount of dual-use U.S.-origin commodities with military capabilities were exported from the United States to Iran in violation of U.S. sanctions and export control laws and regulations.
“Our indictment alleges a years-long, complex conspiracy to violate U.S. laws by procuring U.S. technology with military uses for entities in Iran who would do us harm – a serious offense that endangers our national security,” said U.S. Attorney Matthew M. Graves. “Our office, along with our federal law enforcement partners, will continue to turn over every stone to find those who break our laws and put us at risk. We are committed to making sure that U.S. technology is kept out of the hands of those taking aim at the U.S. and its citizens through robust enforcement of U.S. sanctions.”
“For more than a decade, the defendants allegedly orchestrated a scheme to smuggle U.S. manufactured parts to the IRGC and the Iranian agency charged with developing ballistic missiles and UAVs,” said Assistant Attorney General Matthew G. Olsen of the Justice Department's National Security Division. “Such efforts to unlawfully obtain U.S. technology directly threaten our national security, and we will use every tool at our disposal to sever the illicit supply chains that fuel the Iranian regime's malign activity.”
“Aggressively combatting illicit procurement networks that support Iranian miliary systems like radars and UAVs is essential to U.S. national security,” said Matthew S. Axelrod, Assistant Secretary of Commerce for Export Enforcement. “Today’s indictment, tied to the work of the Disruptive Technology Strike Force, reaffirms that proliferators cannot hide behind front companies in third countries to funnel technology to our adversaries.”
“The theft of technology from the U.S. to Iran and Iranian military affiliates is a threat to our economic and national security,” said Special Agent in Charge Cheyvoryea Gibson, of the FBI’s Detroit Field Office. “The FBI remains committed to combating the illegal transfer of technology and export fraud. We will continue to work with our national security partners to investigate anyone who seeks to weaponize U.S. technology or commodities.”
“This multi-year investigation is the product of vigorous, cooperative law enforcement focused on denying the diversion and export of sensitive U.S.-origin items to Iran that endanger our national security,” said Special Agent in Charge Aaron Tambrini, of the Office of Export Enforcement’s Chicago Field Office. “The Office of Export Enforcement, working with our interagency law enforcement partners, is committed to investigating violations of BIS export control rules and prosecuting the individuals involved, as appropriate, whether in the U.S. or abroad.”
The defendants are charged with conspiring to violate the International Emergency Economic Powers Act (IEEPA), violating IEEPA, smuggling goods from the United States, and one count of submitting false or misleading export information. If convicted, the defendants face a maximum penalty of 20 years in prison for violating the IEEPA; up to 10 years in prison for smuggling goods from the United States; and up to five years in prison for each count of conspiracy and submitting false or misleading export information. Arrest warrants have been issued for Liu, Yung, Li and Zhong who all remain fugitives.
This case is being investigated by the FBI’s Detroit Field Office and the Chicago Field Office of the Department of Commerce’s Office of Export Enforcement. The case is being prosecuted by Assistant U.S. Attorney Jack F. Korba for the United States Attorney’s Office in the District of Columbia and Trial Attorneys Heather Schmidt and Yifei Zheng of the National Security Division’s Counterintelligence and Export Control Section.
In June 2023, the Department of Justice joined with the Departments of Commerce, State, and Treasury to issue an advisory to share information about the threat posed by Iran’s procurement, development, and proliferation of UAVs. Four months later, in October 2023, the Department joined with the same interagency partners to issue an advisory describing the threat posed by Iran’s ballistic missile procurement activities. The advisories gave an overview of the key components sought by Iran, the regime’s use of deceptive practices to acquire certain types of technologies, and recommendations for implementing effective compliance controls to minimize sanctions and export control risk.
Charges in an indictment are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Cedar Rapids Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
A felon who possessed a firearm pled guilty today in federal court in Cedar Rapids, Iowa.
Malachi Patton Handley, age 23, of Cedar Rapids, was convicted of one count of being a felon in possession of a firearm. At the plea hearing, Handley admitted that, between December 2022 and March 2023, he possessed an SCCY pistol after having been convicted of three felonies.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Handley remains in custody of the United States Marshal pending sentencing. Handley faces a possible maximum sentence of fifteen years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Cedar Rapids Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Marion Police Department, and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR 23-57.
Follow us on Twitter @USAO_NDIA.
California Man Sentenced to Prison for Transporting Narcotics Through the Orlando AirportRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Michael Jayson Scarlett (44, Moreno Valley, CA) to five years and six months in federal prison for conspiracy to distribute methamphetamine and possession of methamphetamine with the intent to distribute it. The court also ordered Scarlett to forfeit his cellphone, which was used to commit the offenses. Scarlett entered a guilty plea on August 31, 2023.
According to court documents, on March 5, 2023, Scarlett’s checked bag was searched during an interdiction operation at the Orlando International Airport. Inside, agents located several packages of vacuum-sealed methamphetamine. The packages were later weighed and analyzed by a forensic chemist at the DEA lab and found to contain more than 16 kilograms of methamphetamine. Further investigation revealed that Scarlett had brought narcotics from California to Florida on multiple occasions. He was paid for transporting the narcotics each time.
This case was investigated by the Drug Enforcement Administration with assistance from the Metropolitan Bureau of Investigation. It was prosecuted by Assistant United States Attorney Courtney D. Richardson-Jones.
Burlington Man Sentenced in Federal Court on Bank Robbery ChargeRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont stated that on January 29, 2024, Malik Pratt, 26, of Burlington, Vermont was sentenced by U.S. District Court Judge Christina Reiss to 35 months in prison and three years of supervised release following his guilty plea to robbing the People’s United Bank branch in Burlington, Vermont on March 1, 2022. The Court also ordered Pratt to pay restitution to the bank for the amount stolen.
According to court records, Burlington Police Department officers were dispatched to the People’s United Bank on North Avenue in Burlington on March 1, 2022, at 10:06 a.m. following reports of a bank robbery. Bank employees stated that the robber threatened to shoot them and demanded cash. After acquiring cash, the robber fled the bank on foot, jumping over a fence near the Ethan Allan Parkway to escape. The bank reported a total of $1,316 in U.S. currency stolen. Within weeks, Burlington detectives and federal agents identified Pratt as the robber. He was charged with bank robbery on March 18, 2022, and pleaded guilty on October 11, 2022.
U.S. Attorney Nikolas P. Kerest commended the Burlington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives on their collaborative investigation of Pratt.
The prosecutor is Assistant United States Attorney Paul Van de Graaf. Pratt is represented by Richard R. Goldsborough, Esq.
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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Brooklyn Man Sentenced to 121 Months in Prison for Strongarm Extortion SchemeRead the Press Release
TRENTON, N.J. – A Brooklyn man was sentenced today to 121 months in prison for conspiring with others in a week-long strongarm extortion scheme in 2019, U.S. Attorney Philip Sellinger announced.
Francis A. Garzon, 35, of Brooklyn, New York, previously pleaded guilty before U.S. District Judge Michael A. Shipp to one count of conspiracy to commit Hobbs Act extortion and one count of attempt to commit Hobbs Act extortion. U.S. District Judge Zahid N. Quraishi sentenced Garzon today in Trenton federal court. Garzon’s codefendant, Endrit Kllogjeri, was found guilty following a jury trial in June 2023 and is scheduled to be sentenced on March 21, 2024.
According to documents filed in this case and statements made in court:
From Dec. 1, 2019 through Dec. 9, 2019, Garzon and Kllogjeri conspired and attempted to extort a resident of Monmouth County, New Jersey, and the resident’s son, who resided in Brooklyn, New York. The victim was allegedly threatened with physical harm if the victim did not recover a bag containing property allegedly valued at $100,000 from the victim’s son. Garzon and Kllogjeri further demanded an additional payment of $100,000 as “interest” for the son’s possession of the bag. Garzon admitted that he brandished a revolver at the victim in an effort to intimidate the victim. Over the ensuing week, Garzon and Kllogjeri communicated regularly with the victim’s telephone, continuing to threaten the victim and the victim’s family. Garzon and Kllogjeri were arrested together in a vehicle on Dec. 9, 2019 in Brooklyn. Moments before the arrest, Garzon had attempted to send the victim a text message confirming the victim’s plan to pay the demand.
In addition to the prison term, Judge Quraishi sentenced Garzon to three years of supervised release following Garzon’s release from prison.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing. He also thanked the Marlboro Township Police Department, under the direction of Chief Peter Pezzullo; and the New York City Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Eric A. Boden, Attorney-in-Charge of the Trenton Office, and Assistant U.S. Attorney Ian D. Brater of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Boxing Gym Owner Sentenced for COVID Fraud SchemeRead the Press Release
BOSTON – A Lynnfield man was sentenced today in federal court in Boston for fraudulently obtaining multiple Coronavirus Aid, Relief and Economic Security (CARES) Act loans, including funds from the Payroll Protection Program (PPP), and unemployment benefits to which he was not entitled for his boxing gym.
Daniel Olivar, 44, was sentenced by U.S. District Court Judge Indira Talwani to six months in prison, to be followed by three years of supervised release with the first six months to be served in home confinement. Olivar was also ordered to pay restitution in the amount of $50,844. In August 2023, Olivar pleaded guilty to four counts of wire fraud.
Olivar was the owner of Sonny’s Boxing and Fitness, Inc., a boxing club and fitness center in in Middleton. Since at least 2019, Olivar engaged in a scheme to defraud and obtain CARES Act business loans, by filing false and fraudulent applications with the United States Small Business administration (SBA). This included an Economic Injury Disaster Loan from the SBA and a PPP loan. In addition, Olivar filed a claim for unemployment benefits with the State of Massachusetts, falsely claiming that he was laid off from Gold’s Gym. As a result, from January 2020 until at least May 2021, Olivar received unemployment benefits.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of the Criminal Division prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Biloxi Man Sentenced to Nearly Six Years in Prison for Possession with Intent to Distribute FentanylRead the Press Release
Gulfport, Miss. – A Biloxi man was sentenced to 57 months in federal prison for possession with intent to distribute over 4000 pills containing fentanyl.
Raushaud Ladarius Davis, 28, was sentenced in U.S. District in Gulfport.
According to court records, On June 2, 2023, Davis was pulled over for a traffic violation in Harrison County, Mississippi. Officers searched the vehicle and found over 4000 pills which tested positive for fentanyl.
Davis was indicted by a federal grand jury on June 21, 2023. He pled guilty on October 4, 2023, to one count of possession with intent to distribute fentanyl.
U.S. Attorney Todd W. Gee and Acting Special Agent in Charge Steve Hofer of the Drug Enforcement Administration made the announcement.
The case was investigated by the Drug Enforcement Administration and the Harrison County Sheriff’s Office.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
Ada Resident Sentenced to Life for First Degree Murder in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Tyler Jay Mullins, age 45, of Ada, Oklahoma, was sentenced to concurrent life sentences in prison for one count of Murder in Indian Country—First Degree, and one count of Causing the Death of a Person in the Course of a Violation of 18 U.S.C. § 924(c).
The charges arose from investigations by the Federal Bureau of Investigation, the Oklahoma State Bureau of Investigation, the Office of the Chief Medical Examiner of the State of Oklahoma, and the Ada Police Department.
On June 30, 2022, Mullins was found guilty by a federal jury of one count of Murder in Indian Country—First Degree, and one count of using a firearm to commit that murder. Evidence presented at trial established that in the early morning hours of April 20, 2002, Mullins attacked and beat the victim, transported the victim to another location, then shot the victim three times and buried the body. Oklahoma State Bureau of Investigation agents found the victim’s blood in Mullins’ trunk and on his shoe, leading to Mullins’ eventual confession and disclosure of the location of the victim’s body.
The crimes occurred in Pontotoc and Seminole Counties, within the boundaries of the Chickasaw Nation Reservation and the Seminole Nation Reservation, in the Eastern District of Oklahoma. Mullins originally entered a guilty plea to a state district court charge of First Degree Murder in Pontotoc County District Court in December 2002. That conviction was vacated in March 2021 based on the United States Supreme Court decision in McGirt v. Oklahoma, handed down in July 2020.
“Although the pursuit of justice for the victim’s family was interrupted by a change in jurisdiction, the cooperative work of state and federal law enforcement allowed the United States Attorney’s Office to successfully prosecute the case after more than twenty years,” said United States Attorney Christopher J. Wilson. “The sentences imposed in federal prison now ensure the defendant will spend the rest of his life answering for his heinous crimes.”
The Honorable Charles B. Goodwin, U.S. District Judge in the United States District Court for the Western District of Oklahoma, sitting by assignment, presided over the hearings in Oklahoma City. Mullins will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve his non-paroleable sentence of incarceration.
Assistant United States Attorneys Patrick M. Flanigan and Gregory Dean Burris represented the United States.
29 January 2024
Yo Arete Yon Sitwayen Ameriken Paske LI Te Vwayaje Ale an Ayiti Ak Entansyon Pou LI Te Fè Abi Seksyèl Sou MinèRead the Press Release
Yon sitwayen ameriken te fè premye aparisyon li nan Kolorado semèn pase a pou l fè fas ak yon akizasyon poutèt li te vwayaje ale an Ayiti ak entansyon pou l komèt zak seksyèl ilegal ak yon moun ki poko gen 18 tan.
Dapre dokiman tribinal yo ak enfòmasyon ki devwale piblikman nan tribinal la, ant 2006 ak 2010, Michael Geilenfeld, ki gen 71 zan, ki soti orijinèlman nan Iowa, te swadizan vwayaje soti nan Ayewopò Entènasyonal Miami pou ale Ayiti plizyè fwa pou li angaje nan rapò seksyèl ak minè. Pandan ke li te an Ayiti, Geilenfeld te jere St. Joseph’s Home for Boys, yon rezidans ki te desèvi timoun ki ekonomikman defavorize nan anviwon ak nan kapital la, Pòtoprens. Plizyè moun ki te rete nan St. Joseph's Home for Boys rapòte ke Geilenfeld te abize yo seksyèlman lè yo pat ko gen 18 tan.
Geilenfeld te jwenn arestasyon li 20 janvye nan Kolorado. Yo akize li pou vwayaj ak entansyon pou li angaje nan kondwit seksyèl ilegal. Si yo kondane li, li ap gen yon pèn maksimòm pou l pase 30 lane nan prizon.
Odyans detansyon Geilenfeld la pwograme pou rekòmanse nan dat premye fevriye.
Asistan Pwokirè Jeneral Enterimè Nicole M. Argentieri nan Divizyon Kriminèl Depatman Jistis la, Avoka Ameriken Markenzy Lapointe pou Distrik Sid Florid, Ajan Espesyal an chaj Anthony Salisbury nan Envestigasyon Sekirite Enteryè (HSI) Miami, ak Ajan Espesyal an chaj Jeffrey B. Veltri nan Biwo FBI Miami Field te fè anons la.
HSI ak FBI ap mennen ankèt sou ka a.
Avoka Jijman Jessica Urban ak Eduardo Palomo nan Seksyon Eksplwatasyon Timoun ak Obsenite nan Divizyon Kriminèl la ak Asistan Avoka Ameriken Lacee Monk pou Distrik Sid Florid la ap pouswiv ka a.
Ka sa a te prezante nan kad Project Safe Childhood, yon inisyativ nan tout peyi a pou konbat epidemi eksplwatasyon ak abi seksyèl sou timoun, Depatman Lajistis te lanse nan mwa me 2006. Project Safe Childhood, ki dirije pa Biwo Avoka Ameriken yo ak Seksyon Eksplwatasyon Timoun ak Obsenite, jere resous federal, leta ak lokal yo pou pi byen lokalize, arete, ak pouswiv moun k ap eksplwate timoun atravè entènèt, epitou pou idantifye ak sove viktim yo. Pou plis enfòmasyon sou Project Safe Childhood, tanpri vizite www.justice.gov/psc.
Nenpòt moun ki gen enfòmasyon ki gen rapò ak sa yo oswa ki ka te yon viktim oswa temwen ta dwe kontakte HSI nan 877-4-HSI TIP (877-447-4847).
Foto Geilenfeld nan 2024.
Yon akizasyon se jis yon akizasyon. Tout akize yo sipoze inosan jiskaske yo pwouve yo koupab san okenn dout rezonab nan yon tribinal.
Violent Kokomo Felon Sentenced to over Five Years in Federal Prison After Posting Instagram Pictures of Himself Illegally Possessing a FirearmRead the Press Release
INDIANAPOLIS- Bradley Morgan, 24, of Kokomo, Indiana, has been sentenced to 68 months in federal prison after pleading guilty to being a felon in possession of a firearm.
According to court documents, in March of 2021, investigators with the Kokomo Police Department Violent Crimes Task Force began an investigation into Bradley Morgan after becoming aware of Instagram posts by Morgan, showing him pointing firearms at the camera. Morgan was known to be a convicted felon, on probation, and had an active warrant at the time of the discovery.
On April 14, 2021, investigators obtained and executed a search warrant at Morgan’s East Taylor Street residence in Kokomo. During the search, investigators found Morgan hiding in the bedroom closet. In the same bedroom, investigators located a quantity of controlled substances, a .40 caliber Glock with a 23-round capacity extended magazine, and a 9mm Smith & Wesson.
Morgan is prohibited under federal law from ever possessing a firearm due to his previous felony convictions for criminal recklessness and criminal recklessness with a dangerous weapon in Howard County.
“Multiple convictions for violent crimes were not enough to convince this offender to stop carrying a deadly weapon,” said U.S. Attorney for the Southern District of Indiana, Zachary A. Myers. “The serious federal prison sentence imposed here should send a message to citizens returning to the community from custody: if you choose to possess a gun you will go right back to prison. Our office will continue to partner with the ATF and local task forces in Kokomo and all across our district to ensure that the most dangerous armed offenders are taken off our streets.”
“This is another successful collective investigative effort between federal and local law enforcement agencies to reduce violent crime in our community. The dedicated men and women of the Kokomo Police Department, Howard County Sheriff’s Department, Indiana State Police, and our federal partners will continuously work together to do whatever is necessary to prosecute violent crime offenders and make our communities safer for all law-abiding citizens,” said Chief of Kokomo Police, Doug Stout.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Kokomo Police Department Violent Crimes Task Force investigated this case. The sentence was imposed by U.S. District Court Judge James R. Sweeney II.
U.S. Attorney Myers thanked Assistant United States Attorney Corbin Houston, who prosecuted this 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.
###
Vanderwagon Man Charged with Involuntary ManslaughterRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced that a federal grand jury returned a superseding indictment charging Sheldon Carlton Daye with two counts of involuntary manslaughter. Daye, 30, of Vanderwagon, and an enrolled member of the Navajo Nation, will remain on conditions of release pending trial.
According to the indictment, on or about Oct. 2, 2022, Daye killed John and Jane Doe by operating a motor vehicle without due caution and circumspection and with a wanton and reckless disregard for human life.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Daye faces a maximum of 16 years in prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Department of Criminal Investigations. Assistant U.S. Attorney Mark Probasco is prosecuting the case.
View the Superseding Indictment# # #
24-10
United States Attorney’s Office Observes National Human Trafficking Prevention MonthRead the Press Release
Memphis, TN – As National Human Trafficking Prevention Month draws to a close, United States Attorney Kevin G. Ritz is renewing his Office’s commitment to prosecuting human traffickers, protecting victims, empowering survivors, and preventing the proliferation of these abhorrent crimes.
Human trafficking is a crime involving the exploitation of a person for labor, services, or commercial sex using physical and/or psychological force, fraud, or coercion. The exploitation of a minor for commercial sex is human trafficking regardless of whether any form of force, fraud, or coercion is used by the trafficker.
“Whether it’s forced labor, domestic servitude, or sex trafficking of children and adults, human trafficking is the exploitation of human beings for profit and has no place in any society,” said Mr. Ritz. “Yet every day, these horrific crimes are happening in the United States and worldwide, stripping victims of their dignity, and forcing them into a life of fear and a state of servitude.”
To enhance awareness and educate the community about human trafficking, the U.S. Attorney’s Office has released a public service announcement on how to identify potential trafficking situations and where to report suspected human trafficking activity.
In that video, U.S. Attorney Ritz highlights the importance of education and outreach in the prevention, identification, and disruption of human trafficking activity, and commends community organizations for their partnership and provision of trauma-informed services to trafficking victims and survivors.
As part of its commitment to this work, the U.S. Attorney’s Office has a team of experienced prosecutors and personnel that handle human trafficking cases. In West Tennessee, this work is handled out of the Office’s National Security and Civil Rights Unit. A federal prosecutor serves as the Western District’s Human Trafficking Coordinator and works closely with the Office’s Victim Witness Coordinator to ensure that the rights and needs of trafficking victims remain central throughout the investigation and prosecution of each case. The Office also works with non-governmental organizations and service providers to ensure that appropriate trauma-informed care and resources are made available to rescued trafficking victims and survivors.
Anyone who has information about a potential human trafficking situation or a person who may be experiencing human trafficking should contact the FBI, local law enforcement, or the National Human Trafficking Hotline at 1-888-373-7888 (text: 233733).
Un citoyen américain arrêté pour avoir voyagé en Haïti avec l'intention d'abuser sexuellement des mineursRead the Press Release
Un citoyen américain a fait sa première comparution au Colorado la semaine écoulée pour répondre à l’accusation d’avoir voyagé en Haïti dans le but d’avoir des relations sexuelles illicites avec une personne de moins de 18 ans.
Selon les documents de la Cour et les informations communiquées en audience publique, entre 2006 et 2010, Michael Geilenfeld, 71 ans, originaire d’Iowa, aurait effectué de multiples voyages partant de l’aéroport international de Miami à destination d’Haïti dans le but d’accomplir des actes sexuels sur des mineurs. Pendant ses séjours en Haïti, Geilenfeld gérait le St. Joseph’s Home for Boys, une résidence desservant les enfants économiquement défavorisés de la capitale, Port-au-Prince, et ses environs. Des anciens résidents du St. Joseph’s Home for Boys ont signalé que Geilenfeld avait abusé d’eux sexuellement a lors qu’ils étaient âgés de moins de 18 ans.
Geilenfeld a été arrêté au Colorado le 20 janvier. Il est accusé d’avoir voyagé avec l’intention d’accomplir des actes sexuels illicites. S’il est reconnu coupable, il encourt une peine maximale de 30 ans d’emprisonnement.
L'audience préalable au placement en détention de Geilenfeld est prévue pour le 1er février prochain.
L'annonce a été faite par Nicole M. Argentieri, procureure adjointe par intérim de la division pénale du département de la Justice ; Markenzy Lapointe, procureur fédéral du district sud de Floride ; Anthony Salisbury, agent spécial responsable des enquêtes du département de la Sécurité intérieure (HSI) à Miami ; et Jeffrey B. Veltri, agent spécial responsable de l’antenne du FBI.
Le HSI et le FBI mènent l’enquête.
Les substituts du procureur Jessica Urban et Eduardo Palomo de la Section chargée des affaires d'exploitation des enfants et d’obscénités de la division pénale et la procureure fédérale adjointe Lacee Monk du district sud de la Floride sont chargés de la poursuite de cette affaire.
Le dossier est porté en justice dans le cadre du projet Safe Childhood, une initiative nationale de lutte contre l’épidémie d’exploitation et d’abus sexuels contre des enfants lancée en mai 2006 par le département de la Justice. Dirigée par les bureaux des procureurs des États-Unis et la Section chargée des affaires d'exploitation des enfants et d’obscénités, le projet Safe Childhood canalise les ressources fédérales, étatiques et locales pour mieux localiser, appréhender et poursuivre les personnes qui exploitent les enfants via l’Internet, ainsi que pour mieux identifier et secourir les victimes. Pour de plus amples informations sur le projet Safe Childhood, veuillez consulter le site www.justice.gov/psc.
Toute personne disposant d’informations sur le sujet ou qui aurait été une victime ou un témoin est priée de contacter le HSI au numéro de téléphone suivant : 877-4-HSI TIP (877-447-4847).
Photo de Geilenfeld en 2024.
Un acte d’accusation est simplement une allégation. Tous les accusés sont présumés innocents jusqu'à ce que leur culpabilité soit prouvée au-delà de tout doute raisonnable devant une cour de justice.
U.S. Citizen arrested for traveling to Haiti with intent to sexually abuse minorsRead the Press Release
MIAMI – A U.S. citizen made his initial appearance in Colorado last week to face a charge for traveling to Haiti with the intent to engage in illicit sexual conduct with a person under the age of 18.
According to court documents and information disclosed in open court, between 2006 and 2010, Michael Geilenfeld, 71, originally of Iowa, is alleged to have traveled from Miami International Airport to Haiti multiple times to engage in sexual acts with minors. While in Haiti, Geilenfeld operated the St. Joseph’s Home for Boys, a residence which served economically disadvantaged children in and around the capital city of Port-au-Prince. Multiple individuals who lived at the St. Joseph’s Home for Boys reported that Geilenfeld sexually abused them when they were under the age of 18.
Geilenfeld was arrested on Jan. 20 in Colorado. He is charged with one count of travel with intent to engage in illicit sexual conduct. If convicted, he faces a maximum penalty of 30 years in prison.
Geilenfeld’s detention hearing is scheduled to resume on Feb. 1.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI) Miami, and Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office made the announcement.
HSI Miami and the FBI Miami are investigating the case.
Assistant U.S. Attorney Lacee Monk and Trial Attorneys Jessica Urban and Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Anyone with related information or who may have been a victim or witness should contact HSI at 877-4-HSI TIP (877-447-4847).
Photo of Geilenfeld in 2024.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-20008.
###
U.S. Citizen Charged with Federal Offenses Related to Millions Stolen from Victims of Online ScamsRead the Press Release
United States Attorney Vanessa Roberts Avery, Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service’s Boston Division, Acting Special Agent in Charge David Meisenheimer of the Internal Revenue Service – Criminal Investigation (IRS-CI), Washington D.C. Field Office, and Acting Special Agent in Charge Christopher Gust of the Treasury Inspector General for Tax Administration (TIGTA), today announced that RICHARD FASANELLA, 54, a U.S. citizen last residing in Venezuela, has been charged with conspiracy, fraud, and monetary offenses related to his alleged role in receiving, moving, and converting money stolen from victims of online scams.
As alleged in the indictment, Fasanella’s associates used various online scams, including romance scams, to defraud dozens of primarily elderly victims of millions of dollars. Fasanella is a registered agent for multiple business entities that were registered in Connecticut and elsewhere in the U.S. Fasanella applied for an Employer Identification Number (“EIN”), also known as a Federal Tax Identification Number, for these various businesses, and he and his associates used the EINs to open business bank accounts in the names of those businesses. Fasanella and his associates then used these bank accounts to deposit cash, money orders, and checks that fraud victims mailed to specified addresses and recipients. Victims also wired money directly from their bank accounts to the bank accounts controlled by Fasanella and his associates. Fasanella and others retained a portion of the fraudulently obtained money and passed the rest of the money to others, primarily through cryptocurrency.
On July 25, 2023, a federal grand jury in New Haven returned a 19-count indictment charging Fasanella. The indictment was unsealed after Fasanella was deported from Bogota, Colombia, on January 22, 2024. On January 26, he appeared before U.S. Magistrate Judge S. Dave Vatti Bridgeport and pleaded not guilty to the charges. He is currently detained.
The indictment charges Fasanella with one count of conspiracy to commit mail and wire fraud, an offense that carries a maximum term of imprisonment of 20 years; four count of mail fraud, an offense that carries a maximum term of imprisonment of 20 years on each count; five counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count; one count of conspiracy to commit money laundering and illegal monetary transactions, an offense that carries a maximum term of imprisonment of 20 years; five counts of money laundering, an offense that carries a maximum term of imprisonment 20 years on each count; and three counts of illegal monetary transactions, an offense that carries a maximum term of imprisonment of 10 years on each count.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
“The Justice Department and our law enforcement partners are committed to rooting out and prosecuting online scammers and their criminal associates who prey upon vulnerable victims,” said U.S. Attorney Avery. “I thank the U.S. Postal Inspection Service, IRS-CI and TIGTA for unraveling this complex scheme and identifying this defendant, and the U.S. Marshals and Migración Colombia for their invaluable assistance in tracking him down and bringing him to justice in the U.S.”
“This investigation, which uncovered a large-scale, complex web of money laundering through the U.S. Mail, reflects the U.S. Postal Inspections Services’ commitment to dismantle schemes by criminals who seek to profit by exploiting victims through fraud,” said Inspector in Charge Ketty Larco-Ward, Boston Division of the U.S. Postal Inspection Service. “This alleged scheme included the victimization of many elderly Americans as well as many international victims. I commend our fellow law enforcement partners, domestic and international, for their assistance with this case. The U.S. Postal Inspection Service will continue to be relentless in fighting crime that impacts the people we serve wherever, and however it occurs.”
“It is alleged that Mr. Fasanella orchestrated brazen schemes of staggering proportions,” said IRS-CI Acting Special Agent in Charge David Meisenheimer. “His arrest is another example of IRS Criminal Investigation and our law enforcement partners commitment to investigate and prosecute those who take advantage of taxpayers for their personal financial gain.”
“The Treasury Inspector General for Tax Administration (TIGTA) aggressively investigates individuals who use the IRS’s programs and tax collecting authority to scam others, especially seniors and other vulnerable populations,” said Christopher Gust, acting Special Agent in Charge. “The defendant in this case is alleged to have done just that by targeting and victimizing the most vulnerable in our society. Our mission at TIGTA is to protect the integrity of our nation’s system of tax administration. We are committed to working with our law enforcement partners to ensure those who endeavor to corrupt federal tax administration are prosecuted to the fullest extent of the law.”
This investigation is being conducted the U.S. Postal Inspection Service, IRS-CI, and TIGTA, with assistance from the U.S. Marshals Service and Migración Colombia. The Justice Department’s Office of International Affairs and the Narcotic and Dangerous Drug Section’s Judicial Attaché’s office at the U.S. Embassy in Bogota provided assistance. The case is being prosecuted by Assistant U.S. Attorney Heather Cherry.
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll-free number is 833-FRAUD-11 (833-372-8311).
To read more about the Justice Department’s efforts to combat elder fraud and abuse click here.
U.S. Citizen Arrested for Traveling to Haiti with Intent to Sexually Abuse MinorsRead the Press Release
A U.S. citizen made his initial appearance in Colorado last week to face a charge for traveling to Haiti with the intent to engage in illicit sexual conduct with a person under the age of 18.
According to court documents and information disclosed in open court, between 2006 and 2010, Michael Geilenfeld, 71, originally of Iowa, is alleged to have traveled from Miami International Airport to Haiti multiple times to engage in sexual acts with minors. While in Haiti, Geilenfeld operated the St. Joseph’s Home for Boys, a residence which served economically disadvantaged children in and around the capital city of Port-au-Prince. Multiple individuals who lived at the St. Joseph’s Home for Boys reported that Geilenfeld sexually abused them when they were under the age of 18.
Geilenfeld was arrested on Jan. 20 in Colorado. He is charged with one count of travel with intent to engage in illicit sexual conduct. If convicted, he faces a maximum penalty of 30 years in prison.
Geilenfeld’s detention hearing is scheduled to resume on Feb. 1.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI) Miami, and Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office made the announcement.
HSI and the FBI are investigating the case.
Trial Attorneys Jessica Urban and Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Lacee Monk for the Southern District of Florida are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Anyone with related information or who may have been a victim or witness should contact HSI at 877-4-HSI TIP (877-447-4847).
Photo of Geilenfeld in 2024.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney’s Office Hosts Federal, State, and Local Partners for ‘United Against Hate’ Event at UCLARead the Press Release
LOS ANGELES – The United States Attorney’s Office hosted its third “United Against Hate” outreach event on Friday, January 26, at UCLA in Westwood, where approximately 200 participants from federal, state, and local civil rights enforcement agencies joined with community leaders to work together to combat the growing problem of hate crimes and incidents.
The event featured remarks by Dolores Huerta, one of the most influential labor activists of the 20th century and a leader of the Chicano civil rights movement, and United States Attorney Martin Estrada.
“As the chief federal law enforcement officer in the nation’s most populous and culturally diverse district, I am troubled by the acts and rhetoric of hate we see across the country,” U.S. Attorney Estrada said. “Hate is meant to divide us, so it is imperative that we come together as a community to reject these acts and embrace the diversity of this nation, which has always been its strength. United, we can overcome hate.”
United Against Hate is a nationwide Department of Justice initiative to inform communities about hate crimes and reporting hate-related incidents. The Department launched the initiative in 2022 with the goal of building trust, opening lines of communication, and strengthening coordination between relevant partners and the community to help combat a growing number of hate and bias-related incidents since 2021.
Today’s event included a panel discussion regarding federal, state, and local initiatives to combat hate that featured leaders of the U.S. Department of Justice’s Civil Rights Division, the California Civil Rights Department, the California Commission on the State of Hate, and L.A. Civil Rights.
Participants at today’s event also received training on identifying, reporting and responding to hate crimes and hate incidents. Additionally, there were presentations by the Justice Department’s Community Relations Service and LA Civil Rights.
Following the event, UCLA hosted a reception for community and governmental leaders.
This is the third United Against Hate event hosted by the United States Attorney’s Office. The office will continue to host presentations throughout the district to help communities understand what hate crimes are, how federal agencies respond to hate crimes, and what people can do to help victims. Community organizations or leaders that wish to partner with the United States Attorney’s office to hold a United Against Hate event in their community should send their request to [email protected].
Anyone who feels they have been the victim of a hate crime or may have witnessed a hate crime should immediately report the crime to state or local police by dialing 911, then quickly report it to the FBI through their online portal or by calling 1-800-CALL-FBI (1-800-225-5324). In addition, please report the incident to the Department of Justice’s Civil Rights Division or by filing a civil rights complaint with the United States Attorney’s Office.