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Monday 4 December 2023
Two Men Charged in Murder-for-Hire Plot That Resulted in Fatal Shooting in ChicagoRead the Press Release
CHICAGO — Two men have been indicted in federal court in an alleged murder-for-hire conspiracy that resulted in a fatal shooting in Chicago’s Roseland neighborhood.
ANTHONY MONTGOMERY-WILSON, 24, and PRESTON POWELL, 23, both of Chicago, are charged with conspiracy to use an interstate facility in the commission of a murder for hire, according to an indictment unsealed Wednesday in U.S. District Court in Chicago. The pair is also charged with an individual murder-for-hire count, while Montgomery-Wilson also faces a firearm charge.
According to the indictment and a search warrant filed in the case, Montgomery-Wilson and Powell conspired with each other and others to murder Stephon Mack in exchange for money. On the afternoon of Jan. 27, 2022, Mack, 24, was fatally wounded when two gunmen emerged from a vehicle and fired several shots as Mack exited the Youth Peace Center of Roseland in the 400 block of West 111th Street. A security guard from the Center was also wounded in the shooting but survived.
Montgomery-Wilson is in law enforcement custody. He pleaded not guilty Wednesday during his arraignment before Chief U.S. Magistrate Judge Young B. Kim in Chicago. A status hearing for Montgomery-Wilson was scheduled for Jan. 16, 2024.
Powell is considered a fugitive and a warrant has been issued for his arrest.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the FBI Chicago Field Office, and Larry Snelling, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Illinois Department of Corrections Northern Region Intelligence Unit. The government is represented by Assistant U.S. Attorneys Jared C. Jodrey, Jason A. Julien, and Brian F. Williamson.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The murder-for-hire charges each carry a mandatory sentence of life in federal prison, while a sentence of death is also possible. The firearm charge against Montgomery-Wilson is punishable by up to ten years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Montgomery-Wilson et al indictmentTulsan Sentenced for Second Degree MurderRead the Press Release
U.S. District Judge Gregory K. Frizzell sentenced Dillon Charles Wilson, 27, citizen of Muscogee (Creek) Nation, to 262 months in prison followed by 5 years of supervised release for second degree murder.
“Dillon Wilson made a fatal decision that took the life of another man,” said U.S. Attorney Clint Johnson. “Jamitric Landrum’s family and loved ones are forever altered by this decision. My condolences go out to Mr. Landrum’s loved ones.”
According to court documents, on January 19, 2022, Jamitric Landrum and his girlfriend were at home when someone attempted to force the door open. They opened the door and saw a dark figure going around the corner. They left the apartment and got into their vehicle to look for the suspect. Jamitric was driving and pulled into a parking lot. He got into a brief verbal interaction with Dillon Charles Wilson. Jamitric’s girlfriend saw that Wilson was armed and told Jamitric to drive away. As they drove away, Wilson deliberately and intentionally began shooting at the vehicle striking Jamitric in the back. Law enforcement responded to the shooting. Jamitric was transported to the hospital where he later died from the gunshot wound.
Wilson has a prior criminal conviction for conduct related to robbery with a firearm as well as eluding a police officer. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility.
The FBI and Tulsa Police Department investigated the case. Assistant U.S. Attorney John Brasher prosecuted the case.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s DOJ Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Three Military Contractors Sentenced in Procurement Fraud SchemeRead the Press Release
A federal judge in the Northern District of Georgia has sentenced three military contractors for their roles in a multi-year procurement fraud scheme related to more than $7 million in federal government contracts.
Former Envistacom LLC president and co-founder Alan Carson was sentenced on Nov. 30 to six months in prison and two years of supervised release and was ordered to pay a criminal fine of $250,000. The owner of another company, Philip Flores, was sentenced on Oct 30 to four months in prison and two years of supervised release and was ordered to pay a criminal fine of $50,000; and former Envistacom vice president Valerie Hayes was sentenced on Dec. 1 to 12 months of home confinement with three years of probation, and ordered to complete 100 hours of community service.
A federal jury previously convicted the three individuals of conspiring to defraud the United States and committing major fraud. According to court documents and evidence presented at trial, the three military contractors prepared and procured sham quotes and fraudulently prepared procurement documents.
“When contractors defraud the federal government, they undermine the integrity of the federal contracting system,” said Deputy Assistant Attorney General Manish Kumar of the Justice Department’s Antitrust Division. “These sentencings send a clear message that the Antitrust Division and its law enforcement partners will not tolerate procurement fraud.”
“The defendants served as federal contractors with a duty to lawfully act on behalf of the government,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “Instead, these executives chose to defraud the United States and are now being held accountable for their actions by serving prison sentences and paying substantial fines.”
“These sentencings should serve as a deterrent to any company or individual seeking to subvert the government procurement system to obtain contracts,” said Special Agent in Charge Darrin K. Jones of the Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS, along with our law enforcement partners, remain committed to protecting the integrity of the DoD contracting process that supports our nation’s warfighters.”
“These sentencings should serve as a stark reminder that our agents, and those of our partner law enforcement agencies, are relentless in their pursuit of those who choose to defraud the government,” said Special Agent in Charge Andrew Johnson of the Department of the Army Criminal Investigation Division’s (Army CID) Fraud Field Office.
The Justice Department’s Antitrust Division’s Washington Criminal II Section, the U.S. Attorney’s Office for the Northern District of Georgia, Army CID and DCIS investigated the case.
Trial Attorney Brittany E. McClure of the Justice Department’s Antitrust Division and Assistant U.S. Attorney Christopher J. Huber for the Northern District of Georgia prosecuted the case.
Anyone with information about this investigation or other procurement fraud schemes should notify the Procurement Collusion Strike Force (PCSF) at www.justice.gov/atr/webform/pcsf-citizen-complaint. The Justice Department created the PCSF in November 2019. It is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. For more information, visit www.justice.gov/procurement-collusion-strike-force.
Three Individuals Indicted and Arrested for Conspiracy to Distribute Fentanyl and Cocaine and for Selling MachinegunsRead the Press Release
SAN JUAN, Puerto Rico – On November 27, 2023, a federal grand jury in the District of Puerto Rico returned an 18-count indictment charging three individuals with conspiracy to distribute and to possess with intent to distribute fentanyl and cocaine, distribution of fentanyl and cocaine, possession of machineguns in furtherance of drug trafficking activities, and other firearms-related offenses.
According to court documents, Miguel A. Figueroa-Rodríguez, a/k/a “Tote,” José A. Torres-Narvaez, a/k/a “El Menor,” and Taishia L. Figueroa-Cruz, beginning on a date unknown, but no later than August 22, 2023, conspired with each other and with others to knowingly distribute and possess with intent to distribute fentanyl and cocaine, possession of firearms in furtherance of drug trafficking offenses, as well as engaging in the business of dealing in firearms without a license. Defendant Torres-Narvaez is also charged with being a felon in possession of firearms.
“Disrupting drug trafficking networks is vitally important to our ongoing effort to combat the fentanyl crisis in America and save lives,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “Our office will prosecute those who traffic in fentanyl and machineguns to the fullest extent of the law.”
“The opioid crisis is taking the lives of Americans every single day and our mission here in Puerto Rico is to protect our people from this national tragedy,” said Joseph González, Special Agent in Charge of the FBI San Juan Field Office. “The subjects in this case made it their business to deal kilos of pure fentanyl, so we had to act quickly. Rest assured our work here is only just beginning.”
During the conspiracy the charged individuals engaged in the following series of transactions:
- On August 25, 2023, they sold to the FBI approximately half a kilogram of fentanyl and a fully automatic firearm. (Below: photograph of fully automatic firearm and approximately half a kilogram of fentanyl seized in August 2023).
- On September 22 and September 26, 2023, they sold to the FBI approximately one kilogram of cocaine and a fully automatic firearm. (Below: photograph of message offering to sell rifle; photographs of approximately 1 kilogram of cocaine, and a fully automatic firearm seized in September 2023).
- On October 16, 2023, they sold to the FBI approximately one eighth of a kilogram of a substance that tested positive to fentanyl, a Glock firearm, and an AR-Type Privately Made Firearm (“PMF”). (Below: photographs of seized Glock firearm, an AR-Type Privately Made Firearm (“PMF”), and approximately 1/8th of a kilogram of a substance that tested positive to fentanyl).
- All three individuals were arrested on December 4, 2023. At the time of their arrest, they were in possession of approximately half of a kilogram of a substance that is presumed to be cocaine.
The defendants are scheduled for their initial court appearances today before U.S. Magistrate Judge Marshal D. Morgan of the U.S. District Court for the District of Puerto Rico. If convicted for the conspiracy drug trafficking charges the defendants are facing a mandatory minimum of 10 years of imprisonment with a statutory maximum penalty of life in prison. The firearms offenses in furtherance of the drug trafficking crimes carry a consecutive penalty of thirty years (machineguns) or five years (firearms) up to life imprisonment. The felon-in-possession of firearms carry a maximum sentence of ten years’ imprisonment and the engaging in the business of dealing in firearms carry a maximum sentence of five years’ imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshal Service are investigating the case.
Assistant United States Attorney (AUSA) and Chief of the Transnational Organized Crime Section Max J. Pérez-Bouret; Deputy Chief of the Transnational Organized Crime Section, AUSA María L. Montañez-Concepción; and AUSA Antonio J. López-Rivera are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-coordinated, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Tampa Man Charged in Connection with Armed RobberyRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of a criminal complaint charging Brandale Swails (29, Tampa) with Hobbs Act Robbery. If convicted, Swails faces a maximum penalty of 20 years in federal prison.
According to the complaint, on October 15, 2023, Swails entered a gas station, pointed a firearm at the victim’s head, and demanded the victim open the cash register. The victim immediately hid behind the counter. Swails jumped over the counter towards the victim while continuing to point the firearm at him. Swails told the victim he would shoot him if the victim did not open the register. Swails then took the cash and fled. Hours later, law enforcement officers found Swails driving a vehicle. When officers attempted to pull him over, Swails fled. On October 31, 2023, Swails was arrested inside a home, hiding in a closet. Two loaded firearms were found in his possession.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Hillsborough County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Diego F. Novaes.
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 out 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 first place, setting focused and strategic enforcement priorities, and measuring the results.
Swiss Private Bank, Banque Pictet, Admits to Conspiring with U.S. Taxpayers to Hide Assets and Income in Offshore AccountsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Stuart M. Goldberg, the Acting Deputy Assistant Attorney General for Criminal Matters of the Justice Department’s Tax Division, and Jim Lee, the Chief of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the filing of criminal charges against Swiss Bank, BANQUE PICTET ET CIE SA (“BANQUE PICTET” or the “Bank”) for conspiring with U.S. taxpayers and others to hide more than $5.6 billion in 1,637 secret bank accounts in Switzerland and elsewhere and to conceal the income generated in those accounts from the IRS.
As part of today’s resolution, BANQUE PICTET entered into a Deferred Prosecution Agreement (“DPA”) and agreed to pay approximately $122.9 million to the U.S. Treasury. Today’s resolution is one of a series of cases brought by the Department of Justice in connection with its investigations since 2008 into facilitation of offshore U.S. tax evasion by foreign banks. The case has been assigned to U.S. District Judge Edgardo Ramos.
U.S. Attorney Damian Williams said: “As it has admitted today, Banque Pictet knowingly conspired to conceal from the IRS the income generated by accounts which held more than $5.6 billion. Thanks to the hard work of the career prosecutors of this Office and our law enforcement partners, Banque Pictet has agreed to pay more than $122.9 million and will continue to cooperate with the Department of Justice. Rooting out financial malfeasance remains a priority for this Office, and we encourage companies and financial institutions to come to us to report wrongdoing before we come to you.”
Acting Deputy Assistant Attorney General Stuart M. Goldberg said: “Today, Banque Pictet et Cie admitted to actively helping U.S. taxpayers use coded accounts, foreign trusts and entities, nominee beneficiaries and other deceits to conceal their income and assets abroad. For this criminal conduct the bank will be paying nearly $122.9 million in restitution, disgorgement of fees and a financial penalty, and is required to fully cooperate with investigations relating to these secret accounts.”
IRS-CI Chief Jim Lee said: “This case should provide a clear message to others who try to hide their assets and income offshore. Our special agents are experts in following the money, and they are the best at uncovering schemes that try to defraud the U.S. tax system. Offshore tax evasion is a priority for IRS Criminal Investigation, and today’s deferred prosecution agreement with Bank Pictet collects more than $120 million owed to the U.S. government.”
According to documents filed today in Manhattan federal court:
The Pictet Group was founded in 1805 and is a privately held Swiss financial institution headquartered in Geneva that has historically operated as a general partnership and, since 2014, as a corporate partnership. A limited number of managing partners, generally eight or fewer, collectively known as “The Salon,” own and manage the Pictet Group.
As of December 31, 2014, the Pictet Group had approximately 3,800 employees in various locations, primarily in Switzerland, but also in Luxembourg, Hong Kong, Singapore, and the Bahamas. The Pictet Group operates two main business divisions: institutional asset management and private banking for individuals.
From 2008 to 2014, the Pictet Group’s private banking division was operated by the group’s following banking entities: the Swiss bank (BANQUE PICTET & CIE SA); Pictet & Cie (Europe) SA, headquartered in Luxembourg; Bank Pictet & Cie (Asia) Ltd. in Singapore; and the Bahamian bank, Pictet Bank & Trust Ltd. The Pictet Group provided offshore corporation and trust formation and administration services to certain U.S. taxpayers, first through the Estate Planning and Trust Services unit and later through a wholly owned subsidiary called Rhone Trust and Fiduciary Services SA (Rhone).
As of December 31, 2014, the Pictet Group’s private banking division managed or held custody of approximately $165 billion in assets under management (“AUM”). From 2008 to 2014, the Pictet Group served approximately 3,736 private accounts that had U.S. taxpayers as beneficial owners, whose aggregate maximum AUM, including declared assets, was approximately $20 billion.
Though the Pictet Group adopted early measures to confirm that U.S. clients complied with U.S. law, from 2008 through 2014, the Pictet Group assisted certain U.S. taxpayer-clients with Pictet Group accounts in evading their U.S. tax obligations and otherwise hiding undeclared accounts[1] from the IRS.
In total, from 2008 through 2014, the Pictet Group held 1,637 U.S. Penalty Accounts,[2] with aggregate maximum AUM of approximately $5.6 billion in January 2008, on behalf of U.S. taxpayer-clients, who collectively evaded approximately $50.6 million in U.S. taxes.
The Pictet Group assisted U.S. taxpayer-clients with evading their U.S. taxes by opening and maintaining undeclared accounts for U.S. taxpayer-clients at the Pictet Group, either directly or through external asset managers. The Pictet Group also maintained accounts of certain U.S. taxpayer-clients within the Pictet Group in a manner that allowed the U.S. taxpayer-clients to further conceal their undeclared accounts from the IRS. The Pictet Group and certain of its employees knew or should have known that some of their U.S. taxpayer-clients were evading U.S. taxes. In every instance, managing partners approved the opening of new private client relationships and were informed of the closing of U.S. taxpayer-clients’ accounts, which included some undeclared accounts.
As further detailed below, the Pictet Group used a variety of means to assist U.S. taxpayer-clients in concealing their undeclared accounts, including by:
- Forming or administering offshore entities in whose name the Pictet Group opened and maintained accounts, some of which were undeclared, for U.S. taxpayer-clients;
- Opening and maintaining undeclared accounts in the names of offshore entities formed by others for U.S. taxpayer-clients;
- Opening and maintaining Private Placement Life Insurance policy accounts, also called insurance wrappers, held in the name of insurance companies but beneficially owned by U.S. taxpayers and improperly managed or funded through undeclared accounts at the Pictet Group;
- Transferring funds from undeclared U.S. taxpayer-client accounts to accounts nominally held by non-U.S. clients but still controlled by U.S. taxpayer-clients via fictitious donations, thus assisting U.S. taxpayer-clients in continuing to maintain undeclared funds offshore; and
- Providing traditional Swiss banking products such as hold-mail account services, where account-related mail is held at the bank rather than sent to the client, and coded or numbered accounts; and
- Accepting IRS Forms W-8BEN[3] or Pictet Group’s substitute forms that the group knew or should have known falsely stated or implied under penalty of perjury that offshore entities beneficially owned the assets in the undeclared accounts.
The $122.9 million BANQUE PICTET agreed to pay to the U.S. Treasury pursuant to the DPA consists of (i) $52,164,201 to the United States, which represents gross fees (not profits) that the bank earned on its undeclared accounts between 2008 and 2014; (ii) $31,844,192 in restitution to the IRS, which represents the unpaid taxes resulting from BANQUE PICTET’s participation in the conspiracy; and (iii) a $38,950,998 penalty. The penalty considers the nature and seriousness of the Pictet Group's conduct, the Bank’s extensive internal investigation, the Bank’s substantial provision of documents to the Justice Department, and the Bank’s facilitation of witness interviews. The Bank further implemented remedial measures to protect against the use of its services for future tax evasion.
In addition to the payment, BANQUE PICTET also agrees under the DPA to accept responsibility for its conduct by stipulating to the accuracy of an extensive Statements of Facts. BANQUE PICTET further agreed to refrain from all future criminal conduct, implement remedial measures and cooperate fully with further investigations into hidden bank accounts. Specifically, the Bank is required to cooperate fully with ongoing investigations and affirmatively disclose any information it may later uncover regarding U.S.-related accounts. The Bank is also required to disclose information consistent with the Justice Department’s Swiss Bank Program relating to accounts closed between January 1, 2008, and December 31, 2022. The agreements provide no protection from criminal or civil prosecution for any individuals.
If BANQUE PICTET continues to comply with its agreement, the United States has agreed to defer prosecution of BANQUE PICTET for a period of three years, after which time the United States will seek to dismiss the charge against BANQUE PICTET.
* * *
Mr. Williams praised the outstanding investigative work of the special agents of IRS-CI.
The prosecution of this case is being handled by the Justice Department’s Tax Division and the Complex Frauds and Cybercrime Unit of the U.S. Attorney’s Office for the Southern District of New York. Senior Litigation Counsel Nanette Davis of the Tax Division and Assistant U.S. Attorneys Daniel G. Nessim and Olga Zverovich are in charge of the prosecution.
[1] An “undeclared account” was a financial account beneficially owned by an individual subject to U.S. tax obligations and maintained in a foreign country that had not been reported by the individual account owner to the U.S. Government on an income tax return or an FBAR—a Report of Foreign Bank and Financial Accounts, FinCEN Form 114 (formerly known as Form TD F 90 22.1).
[2] “U.S. Penalty Accounts” are defined as U.S. accounts valued over $50,000 that the parties agree should be subject to a penalty for the offense conduct.
[3] The IRS Form W-8BEN is a tax form that identifies the foreign status of non-U.S. persons for U.S. tax withholding purposes.
Swiss Private Bank Banque Pictet Admits to Conspiring with U.S. Taxpayers to Hide Assets and Income in Offshore AccountsRead the Press Release
Swiss private bank Banque Pictet et Cie SA admitted today to conspiring with U.S. taxpayers and others to hide more than $5.6 billion in 1,637 secret bank accounts in Switzerland and elsewhere and to conceal the income generated in those accounts from the IRS.
As part of today’s resolution, Banque Pictet entered into a deferred prosecution agreement and agreed to pay approximately $122.9 million to the U.S. Treasury. Today’s resolution is one of a series of cases by the Justice Department in connection with its investigations since 2008 into facilitation of offshore U.S. tax evasion by foreign banks. The case has been assigned to U.S. District Judge Edgardo Ramos for the Southern District of New York.
“Today, Banque Pictet et Cie admitted to actively helping U.S. taxpayers use coded accounts, foreign trusts and entities, nominee beneficiaries and other deceits to conceal their income and assets abroad,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg. “For this criminal conduct the bank will be paying nearly $122.9 million in restitution, disgorgement of fees and a financial penalty, and is required to fully cooperate with investigations relating to these secret accounts.”
“As it has admitted today, Banque Pictet knowingly conspired to conceal from the IRS the income generated by accounts which held more than $5.6 billion,” said U.S. Attorney Damian Williams for the Southern District of New York. “Thanks to the hard work of the career prosecutors of this Office and our law enforcement partners, Banque Pictet has agreed to pay more than $122.9 million and will continue to cooperate with the Department of Justice. Rooting out financial malfeasance remains a priority for this Office, and we encourage companies and financial institutions to come to us to report wrongdoing before we come to you.”
“This case should provide a clear message to others who try to hide their assets and income offshore. Our special agents are experts in following the money, and they are the best at uncovering schemes that try to defraud the U.S. tax system,” said IRS Criminal Investigation Chief Jim Lee. “Offshore tax evasion is a priority for IRS Criminal Investigation, and today’s deferred prosecution agreement with Bank Pictet collects more than $120 million owed to the U.S. government.”
According to documents filed today in Manhattan federal court:
The Pictet Group was founded in 1805 and is a privately held Swiss financial institution headquartered in Geneva that has historically operated as a general partnership and, since 2014, as a corporate partnership. A limited number of managing partners, generally eight or fewer, collectively known as “The Salon,” own and manage the Pictet Group.
As of Dec. 31, 2014, the Pictet Group had approximately 3,800 employees in various locations, primarily in Switzerland, but also in Luxembourg, Hong Kong, Singapore and the Bahamas. The Pictet Group operates two main business divisions: institutional asset management and private banking for individuals.
From 2008 to 2014, Pictet Group’s private banking division was operated by the group’s following banking entities: the Swiss bank (Banque Pictet & Cie SA); Pictet & Cie (Europe) SA, headquartered in Luxembourg; Bank Pictet & Cie (Asia) Ltd. in Singapore and the Bahamian bank, Pictet Bank & Trust Ltd. The Pictet Group provided offshore corporation and trust formation and administration services to certain U.S. taxpayers, first through the Estate Planning and Trust Services unit and later through a wholly owned subsidiary called Rhone Trust and Fiduciary Services SA (Rhone).
As of Dec. 31, 2014, the Pictet Group’s private banking division managed or held custody of approximately $165 billion in assets under management (AUM). From 2008 to 2014, the Pictet Group served approximately 3,736 private accounts that had U.S. taxpayers as beneficial owners, whose aggregate maximum AUM, including declared assets, was approximately $20 billion.
Though Pictet Group adopted early measures to confirm that U.S. clients complied with U.S. law, from 2008 through 2014, the Pictet Group assisted certain U.S. taxpayer-clients with Pictet Group accounts in evading their U.S. tax obligations and otherwise hiding undeclared accounts[1] from the IRS.
In total, from 2008 through 2014, the Pictet Group held 1,637 U.S. Penalty Accounts[2] with aggregate maximum AUM of approximately $5.6 billion in January 2008, on behalf of U.S. taxpayer-clients, who collectively evaded approximately $50.6 million in U.S. taxes.
The Pictet Group assisted U.S. taxpayer-clients with evading their U.S. taxes by opening and maintaining undeclared accounts for U.S. taxpayer-clients at the Pictet Group, either directly or through external asset managers. The Pictet Group also maintained accounts of certain U.S. taxpayer-clients within the Pictet Group in a manner that allowed the U.S. taxpayer-clients to further conceal their undeclared accounts from the IRS. The Pictet Group and certain of its employees knew or should have known that some of their U.S. taxpayer-clients were evading U.S. taxes. In every instance, managing partners approved the opening of new private client relationships and were informed of the closing of U.S. taxpayer-clients’ accounts, which included some undeclared accounts.
As further detailed below, the Pictet Group used a variety of means to assist U.S. taxpayer-clients in concealing their undeclared accounts, including by:
- forming or administering offshore entities in whose name the Pictet Group opened and maintained accounts, some of which were undeclared, for U.S. taxpayer-clients;
- opening and maintaining undeclared accounts in the names of offshore entities formed by others for U.S. taxpayer-clients;
- opening and maintaining Private Placement Life Insurance policy accounts, also called insurance wrappers, held in the name of insurance companies but beneficially owned by U.S. taxpayers and improperly managed or funded through undeclared accounts at the Pictet Group;
- transferring funds from undeclared U.S. taxpayer-client accounts to accounts nominally held by non-U.S. clients but still controlled by U.S. taxpayer-clients via fictitious donations, thus assisting U.S. taxpayer-clients in continuing to maintain undeclared funds offshore;
- providing traditional Swiss banking products such as hold-mail account services, where account-related mail is held at the bank rather than sent to the client, and coded or numbered accounts and
- accepting IRS Forms W-8BEN[3] or Pictet Group’s substitute forms that the group knew or should have known falsely stated or implied under penalty of perjury that offshore entities beneficially owned the assets in the undeclared accounts.
The $122.9 million Banque Pictet agreed to pay to the U.S. Treasury pursuant to the deferred prosecution agreement consists of (i) $52,164,201 to the United States, which represents gross fees (not profits) that the bank earned on its undeclared accounts between 2008 and 2014; (ii) $31,844,192 in restitution to the IRS, which represents the unpaid taxes resulting from Banque Pictet’s participation in the conspiracy and (iii) a $38,950,998 penalty. The penalty considers the nature and seriousness of the Pictet Group's conduct, the Bank’s extensive internal investigation, the Bank’s substantial provision of documents to the Justice Department, and the Bank’s facilitation of witness interviews. The Bank further implemented remedial measures to protect against the use of its services for future tax evasion.
In addition to the payment, Banque Pictet also agrees under the deferred prosecution agreement to accept responsibility for its conduct by stipulating to the accuracy of an extensive statement of facts. Banque Pictet further agreed to refrain from all future criminal conduct, implement remedial measures and cooperate fully with further investigations into hidden bank accounts. Specifically, the Bank is required to cooperate fully with ongoing investigations and affirmatively disclose any information it may later uncover regarding U.S.-related accounts. The Bank is also required to disclose information consistent with the Justice Department’s Swiss Bank Program relating to accounts closed between Jan. 1, 2008, and Dec. 31, 2022. The agreements provide no protection from criminal or civil prosecution for any individuals.
If Banque Pictet continues to comply with its agreement, the United States has agreed to defer prosecution of Banque Pictet for a period of three years, after which time the United States will seek to dismiss the charge against Banque Pictet.
Acting Deputy Assistant Attorney for Criminal Matters General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Damian Williams for the Southern District of New York and Chief Jim Lee of the IRS Criminal Investigation made the announcement.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Williams praised the outstanding investigative work of the special agents of IRS Criminal Investigation.
Senior Litigation Counsel Nanette Davis of the Tax Division and Assistant U.S. Attorneys Daniel G. Nessim and Olga Zverovich for the Southern District of New York are prosecuting the case.
[1] An “undeclared account” was a financial account beneficially owned by an individual subject to U.S. tax obligations and maintained in a foreign country that had not been reported by the individual account owner to the U.S. Government on an income tax return or an FBAR—a Report of Foreign Bank and Financial Accounts, FinCEN Form 114 (formerly known as Form TD F 90 22.1).
[2] “U.S. Penalty Accounts” are defined as U.S. accounts valued over $50,000 that the parties agree should be subject to a penalty for the offense conduct.
[3] The IRS Form W-8BEN is a tax form that identifies the foreign status of non-U.S. persons for U.S. tax withholding purposes.
St. Louis Man Admits Shooting Two Women, One Fatally, During CarjackingsRead the Press Release
ST. LOUIS – A St. Louis, Missouri man on Monday admitted killing a woman while stealing her car in 2022 and shooting another woman during a carjacking a few weeks later.
Loyse Dozier, 21, pleaded guilty in U.S. District Court in St. Louis to four felonies: carjacking resulting in death, attempted carjacking resulting in serious bodily injury, being a felon in possession of a firearm and possession with intent to distribute fentanyl.
Dozier admitted fatally shooting Laruth Jones while he was stealing her Mercedes CLA 250 on July 10, 2022. Jones had parked in the lot of the Raqqa Mart at 352 Chambers Road, in Riverview, in St. Louis County, and was standing near the entrance to the store when she saw Dozier, who was wearing a full-face mask, get into her car. She confronted Dozer with her gun, the two exchanged fire, and Jones was killed. Before leaving in the stolen car, Dozier got out and picked up Jones’ gun, he admitted in his plea. He later set the car on fire in a St. Louis alley.
On Aug. 1, 2022, Dozier shot another woman while trying to steal her car from a Walgreens at 1400 North Grand Boulevard in St. Louis. Dozier, who was again masked, walked onto the parking lot and opened the door of the victim’s Kia Optima. He ordered the driver out. She complied and handed her keys to Dozier. He shot her twice before getting into her car. An off-duty Florissant Police Department officer, who was working as a security guard inside the Walgreens, ran outside after the shooting, scaring Dozier away. Dozier left his phone behind in the Kia, however.
Nine days later, St. Louis Metropolitan Police Department officers spotted Dozier at a gas station at West Florissant and Adelaide Avenues. He ran, discarding a handgun and a bag before officers caught and arrested him, inside the bag was 5.76 grams of fentanyl. The gun was a .45-caliber Smith & Wesson handgun that he’d stolen from Jones after shooting her. He later used it to shoot the second victim. Dozier is a convicted felon and is barred from possessing a firearm. Dozier had cocaine base in 25 plastic baggies in his pocket when he was arrested, as well as a magazine for the handgun.
Dozier is scheduled to be sentenced March 11, 2024. As part of the plea agreement, both sides have agreed to recommend a sentence of 32 years in prison.
The St. Louis Metropolitan Police Department, the St. Louis County Police Department and the FBI investigated the case. Assistant U.S. Attorney Matthew Martin is prosecuting the case.
St. Louis County Man Sentenced to 3 Years in Prison for ID Theft and Stealing Rental CarRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Monday sentenced a St. Louis County, Missouri man who used counterfeit identification and a fake credit card to steal a rental car to three years in prison.
Kelvin N. Ford, 32, of Dellwood, pleaded guilty in September to aggravated identity theft and access device fraud. He admitted stealing an Audi Q3 SUV worth about $37,000 from Alamo Car Rental in Woodson Terrace, Missouri by using a stolen credit card number and fake identification in the name of a Connecticut resident. The driver’s license had the victim’s name, birth date and address but Ford’s picture. Ford was also using a credit card that had been encoded with the stolen credit card number.
Ford admitted that he did not plan to return the SUV to Alamo. At the end of the rental period, Alamo discovered the fraud and reported the Audi stolen. Bridgeton police found it in their city, with Ford sitting in the driver’s seat. Officers found multiple counterfeit debit cards using other people’s names, $736 in cash, gift cards and multiple fake IDs.
Ford also opened an account at Scott Credit Union in someone else’s name, his plea agreement says.
The U.S. Postal Inspection Service, the Woodson Terrace Police Department and the Bridgeton Police Department investigated the case. Assistant U.S. Attorney Jonathan Clow prosecuted the case.
Springfield, Illinois, Woman Sentenced to Three and a Half Years in Prison for Threatening to Kill DCFS EmployeesRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, woman, Lerin E. Hughes, 25, was sentenced on November 30, 2023, to 42 months’ imprisonment, to be followed by three years of supervised release, following her conviction for cyberstalking.
At the jury trial before U.S. District Judge Colleen R. Lawless, the government presented evidence to establish that Hughes repeatedly made threatening Facebook posts directed towards an employee of the Illinois Department of Children and Family Services (DCFS) who was assigned to investigate allegations of child abuse and neglect. Hughes also sent threatening text messages and e-mail messages and sought out the personal Facebook page of a case worker employed by an agency contracted to work on behalf of DCFS. The threats occurred over a period of four months during the summer of 2022. These threats included threats to kill the two child protection workers. The government also presented evidence that Hughes made statements to other people indicating her desire to shoot the victims and other juvenile court personnel, as well as the governor of Illinois.
At sentencing, Judge Lawless said the victims were doing their job and should not have had to endure Hughes’s threats and harassment. Judge Lawless noted that the sentence was needed to deter others so that DCFS workers could continue to do their important jobs without fear of similar behavior.
Hughes was indicted on October 18, 2022, and was arrested on October 20, 2022. Hughes has remained in the custody of the United States Marshals Service since her arrest.
The penalties for cyberstalking are not more than five years’ imprisonment, not more than three years’ supervised release, not more than a $250,000 fine, and restitution pursuant to 18 U.S.C. § 3663A.
“DCFS employees work tirelessly to protect children in the State of Illinois,” said Assistant United States Attorney Sarah E. Seberger. “The defendant’s words caused real and severe emotional distress that these victims never should have had to endure for merely doing their jobs. This sentence sends a strong message that there are consequences for online threats of violence towards government employees. I am grateful to the FBI for their work on this case, as well as the important assistance of the Sangamon County Sheriff’s Office.”
“The FBI takes threats of violence very seriously and works diligently to protect the communities we serve,” said FBI Springfield Field Office Special Agent in Charge David Nanz. “We will continue to work with our law enforcement partners to disrupt and investigate those who engage in violent rhetoric—holding accountable anyone who threatens to harass, intimidate, or harm another.”
The case investigation was conducted by the Federal Bureau of Investigation, Springfield Field Office. Valuable assistance was provided by the Sangamon County Sheriff’s Department and the Sangamon County State’s Attorney’s Office. Assistant U.S. Attorneys Seberger and Sierra Senor Moore represented the government at trial.
Santa Barbara County Man Sentenced to 6 Months in Prison for Obstructing Federal Probe into Plane Crash He Posted on YouTubeRead the Press Release
LOS ANGELES – A YouTuber pilot was sentenced today to six months in federal prison for obstructing a federal investigation by deliberately destroying the wreckage of an airplane that he intentionally crashed in Santa Barbara County to gain online views.
Trevor Daniel Jacob, 30, of Lompoc, was sentenced by United States District Judge John F. Walter.
Jacob pleaded guilty on June 30 to one count of destruction and concealment with the intent to obstruct a federal investigation.
Jacob is an experienced pilot, skydiver and former Olympic athlete who had secured a sponsorship from a company that sold various products, including a wallet. Pursuant to the sponsorship deal, Jacob agreed to promote the company’s wallet in a YouTube video that he would post.
On November 24, 2021, Jacob took off in his airplane from Lompoc City Airport on a solo flight purportedly destined for Mammoth Lakes. Jacob did not intend to reach his destination, but instead planned to eject from his aircraft during the flight and video himself parachuting to the ground and his airplane as it descended and crashed.
Prior to taking off, Jacob mounted several video cameras on different parts of the airplane and equipped himself with a parachute, video camera and selfie stick. Approximately 35 minutes after taking off, while flying above the Los Padres National Forest near Santa Maria, Jacob ejected from the airplane and videoed himself parachuting to the ground.
Using the video camera mounted on the selfie stick and the video cameras he mounted on the airplane, Jacob was able to record the airplane as it descended and crashed into a dry brush area in Los Padres National Forest. After parachuting to the ground, Jacob hiked to the location of the wreck and recovered the data containing the video recording of his flight and the crash of the airplane.
On November 26, 2021, Jacob informed the National Transportation Safety Board (NTSB) about the plane crash. The NTSB, which launched an investigation into the crash on or about that same day, told Jacob that he was responsible for preserving the wreckage so the agency could examine it. Jacob agreed to determine the crash location and provide both the coordinates of the downed plane and videos of the crash to NTSB investigators. Three days later, the Federal Aviation Administration (FAA) launched its own investigation into the plane crash.
In the weeks following the plane crash, Jacob lied to investigators that he did not know the wreckage’s location. In fact, on December 10, 2021, Jacob and a friend flew by helicopter to the wreckage site. There, Jacob used straps to secure the wreckage, which the helicopter lifted and carried to Rancho Sisquoc in Santa Barbara County, where it was loaded onto a trailer attached to Jacob’s pickup truck.
Jacob drove the wreckage to Lompoc City Airport and unloaded it in a hangar. He then cut up and destroyed the airplane wreckage and, over the course of a few days, deposited the detached parts of the wrecked airplane into trash bins at the airport and elsewhere, which was done with the intent to obstruct federal authorities from investigating the November 24 plane crash.
On December 23, 2021, Jacob uploaded a YouTube video titled, “I Crashed My Airplane,” that contained a promotion of the wallet and depicted him parachuting from the plane and the aircraft’s subsequent crash. Jacob intended to make money through the video.
Jacob lied to federal investigators when he submitted an aircraft accident incident report that falsely indicated that the aircraft experienced a full loss of power approximately 35 minutes after takeoff. Jacob also lied to an FAA aviation safety inspector when he said the airplane’s engine had quit and, because he could not identify any safe landing options, he had parachuted out of the plane.
“It appears that [Jacob] exercised exceptionally poor judgment in committing this offense,” prosecutors argued in a sentencing memorandum. “[Jacob] most likely committed this offense to generate social media and news coverage for himself and to obtain financial gain. Nevertheless, this type of ‘daredevil’ conduct cannot be tolerated.”
The United States Department of Transportation – Office of Inspector General investigated this matter. The NTSB and FAA provided substantial assistance.
Assistant United States Attorneys Dominique Caamano and Dennis Mitchell of the Environmental Crimes and Consumer Protection Section prosecuted this case.
San Diego Man Admits Bank, Tax FraudRead the Press Release
NEWS RELEASE SUMMARY – December 4, 2023
SAN DIEGO – Alvin Pates of San Diego pleaded guilty in federal court today to bank and tax fraud charges, admitting that he participated in a scheme to deceive banks by using straw borrowers and bogus financial information to obtain loans.
According to his plea agreement, beginning as early as July 2014 and continuing through at least April 2020, Pates admitted that he used the names, social security numbers, and credit of the straw borrowers to obtain loans and lines of credit that primarily benefited Pates. Pates prepared, or directed others to prepare, the fraudulent loan and credit card applications. The applications included information about the borrowers’ income and employment that Pates knew to be false and were supported by false paystubs, W2s, and bank statements procured by Pates.
In exchange for the use of the straw borrowers’ personal identifying information and credit, Pates typically paid a 10 percent kickback from the loan proceeds to the straw borrower, and falsely promised to make all the payments on the loans. On at least one occasion, Pates communicated by telephone directly with a financial institution, pretending to be the straw borrower, in order to pass security questions and obtain approval of a loan.
Pates acknowledged in his plea agreement that he funneled the majority of the loan proceeds through the bank accounts of one of his shell companies to use for his personal benefit. For example, Pates admitted to using the funds for numerous personal transactions, cash withdrawals, personal living expenses for himself and his family, and to make payments to other credit unions. Pates admitted that the value of the fraudulent loans charged in the indictment is $87,000, and that he will be required to pay restitution of at least $40,500.
In addition to the bank fraud, Pates also admitted to aiding and assisting in the preparation of false tax returns for two taxpayers for the calendar year 2015. The tax return for one of the taxpayers falsely stated that the individual received “Other Income” in the amount of $538,462 and had paid federal income taxes of $543,643, thus entitling him to a refund of $376,260. Pates supplied false Forms 1099 to the taxpayer to support the return and accompanied the taxpayer to the IRS to submit the false return. The Internal Revenue Service (IRS) issued a refund check to the taxpayer for $376,260, which was ultimately returned to the IRS.
Pates is scheduled to be sentenced on March 1, 2024, at 9 a.m. before U.S. District Judge Cathy Ann Bencivengo.
This case is being prosecuted by Assistant U.S. Attorneys Melanie K. Pierson and Loren G. Rene.
DEFENDANT Case Number 20CR2204-CAB
Alvin Pates a.k.a. Al Noble Age: 54 San Diego, CA
SUMMARY OF CHARGES
Count 8
Bank Fraud – Title 18, U.S.C., Sections 1344(1) and 2
Maximum penalty: Thirty years in prison, $1 million fine, forfeiture and restitution
Count 9
Aiding and Advising Preparation of a False Tax Return—Title 26, U.S.C., Section 7206(2)
Maximum penalty: Three years in prison, $250,000 fine, 3 years’ supervised release, forfeiture and restitution
AGENCIES
U.S. Secret Service
IRS Criminal Investigation
Russell County Man Sentenced to over Two Years in Federal Prison for Defrauding Two Local Non-Profit OrganizationsRead the Press Release
Bowling Green, KY – A Russell County man was sentenced last week to 2 years and 3 months in federal prison for defrauding two Russell County area non-profit organizations.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office made the announcement.
According to court records, Charles Davis, 57, was sentenced last week to 2 years and 3 months in prison, followed by a 3-year term of supervised release, for two counts of wire fraud. The charges were in in connection with his thefts while working as treasurer from two Russell County non-profit organizations, ArtWorks Community Arts Education Center, a local non-profit in Jamestown, Kentucky, that provides arts education to children, and the Russell County Arts Council, another non-profit that provides arts education to children and the community. Davis was also ordered to pay $352,336.72 in restitution to ArtWorks Community Arts Education Center and the Russell County Arts Council.
This case was investigated by the FBI.
Assistant United States Attorney Madison Sewell, of the U.S. Attorney’s Bowling Green Branch Office, prosecuted the case.
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Repeat, Violent Felon Sentenced to Four and a Half Years in Federal Prison for Illegally Possessing a HandgunRead the Press Release
INDIANAPOLIS- Michael Spencer, 31 of Indianapolis has been sentenced to 54 months in federal prison after pleading guilty to illegally possessing a firearm as a previously convicted felon.
According to court documents, on December 8, 2022, IMPD officers arrested Michael Spencer at a gas station on an outstanding warrant for intimidation of a domestic partner and a probation violation associated with a previous armed robbery conviction.
During a search of Spencer’s person, officers found a .40 caliber Glock 24 pistol with an extended magazine containing 20 live rounds in his waist band.
Spencer was convicted of armed robbery in 2010 and 2015. These felony convictions prohibit Spencer from ever legally possessing a firearm.
“Abusers with guns pose an extreme danger to those closest to them. That’s why it’s so important to prosecute illegally armed criminals and disrupt the domestic violence cycle,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “This defendant continued to illegally carry a gun even after multiple armed robbery convictions and an outstanding warrant for domestic violence. The serious prison sentence imposed will protect the public from the defendant for several years and sends a message to him and others like him about the consequences of continuing to illegally carry guns.”
The FBI and IMPD investigated this case. The sentence was imposed by U.S. District Court Judge Jane Magnus-Stinson. Judge Stinson also ordered that Spencer be supervised by the U.S. Probation Office for 3 years following his release from federal prison and pay a $900 fine.
U.S. Attorney Myers thanked Assistant United States Attorney Jeremy C. Fugate, who prosecuted this case.
This case was brought as part of the LEATH Initiative (Law Enforcement Action to Halt Domestic Violence), named in honor of Indianapolis Metropolitan Police Department (IMPD) Officer Breann Leath, who was killed in the line of duty while responding to a domestic disturbance call. A partnership among the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the IMPD, and the U.S. Attorney’s Office for the Southern District of Indiana, the LEATH Initiative focuses federal, state, and local law enforcement resources on domestic violence offenders who illegally possess firearms.
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Readout of Reproductive Rights Task Force MeetingRead the Press Release
On Monday, Dec. 4, the Reproductive Rights Task Force (RRTF) provided a briefing to Attorney General Merrick B. Garland and Task Force Chair Associate Attorney General Vanita Gupta on the Department’s work to protect reproductive freedom under federal law. The RRTF was created in July 2022, following the Supreme Court’s decision in Dobbs v. Jackson Women’s Health Organization, to formalize the Department’s ongoing work to protect reproductive rights.
“The Justice Department has been working to defend the reproductive freedoms that are protected by federal law,” Attorney General Garland said during his remarks. “As part of that work, we are continuing to vigilantly monitor state laws and enforcement actions that threaten to infringe on women’s reproductive rights.”
“There is no understating the devastation wrought by the Dobbs decision,” Associate Attorney General Gupta said in her remarks. “Our work on these matters is doubtless ongoing, but we remain committed to doing all we can to defend the constitutional right to travel, among other federal protections for reproductive freedom.”
The RRTF provided updates on the recent work of the Civil Division and the Office of the Solicitor General to defend reproductive rights in court, including by filing a statement of interest to protect the right to travel, defending the Food and Drug Administration’s expert decisions regarding the abortion drug mifepristone, and ensuring that women receive the emergency care to which they are entitled under the Emergency Medical Treatment and Labor Act. The RRTF also described the Civil Rights Division’s recent work enforcing the Freedom of Access to Clinic Entrances Act, under which the Department has brought 24 cases against 55 defendants resulting in 23 convictions since January 2021; the Office of Legal Counsel’s work advising federal agencies as they consider policies and actions to preserve access to reproductive services; and the work of the Office of Legislative Affairs to assist Congress in drafting legislation to codify reproductive rights. The RRTF also discussed challenges ahead and expected work in the new year.
The Task Force will continue to work in the new year to protect reproductive rights and access.
Attorney General Garland and Associate Attorney General Gupta give remarks at convening of the Reproductive Rights Task Force Meeting.Read Attorney General Garland’s full remarks here, and Associate Attorney General Gupta’s remarks here.
Rapid City Man Sentenced to 10 Years for Conspiring to Distribute FentanylRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Rapid City, South Dakota, man convicted of Conspiracy to Distribute Fentanyl. The sentencing took place on November 29, 2023.
John Hansen, age 64, was sentenced to 10 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Hansen was indicted for Conspiracy to Distribute Fentanyl by a federal grand jury in March of 2023. He pleaded guilty on September 13, 2023.
Hansen and his daughter, Aubrey, had a source for fentanyl pills in Colorado. On multiple occasions between the summer of 2022 and January of 2023, they traveled to Colorado and brought back thousands of pills, which were then sold to people in Rapid City for use or for further distribution. Overall, Hansen was responsible for bringing between 400 grams and 1.2 kilograms of fentanyl to the Rapid City area. Hansen had several other people assisting him, including his daughter. Each fentanyl pill is approximately 1/10th of a gram of fentanyl and one pill is approximately two dosage units.
Aubrey Hansen was previously sentenced to 10 years in federal prison for her role in the conspiracy.
This case was investigated by the Unified Narcotics Enforcement Team, which is a local drug task force comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Hansen was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Illegal Possession of FirearmRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Rapid City, South Dakota, man convicted of Possession of Firearm by a Prohibited Person. The sentencing took place on November 28, 2023.
Ahmed Belhage, 27, was sentenced to five years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Belhage was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in June of 2023. He pleaded guilty on August 11, 2023.
In April of 2023, in Rapid City, Belhage, a previously convicted felon who is prohibited from possessing firearms, was found in possession of a Savage Arms semi-automatic rifle, which was found after Belhage came into contact with law enforcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Belhage was immediately remanded to the custody of the U.S. Marshals Service.
Rankin County, Mississippi Civil Rights Violations Request for InformationRead the Press Release
Jackson, Miss. - The Department of Justice is committed to enforcing laws protecting the civil rights of all persons in Rankin County, Mississippi and throughout the nation. To enforce these laws, it is critical that federal authorities receive information from the public regarding allegations of abuse. As the Department previously indicated in its press release issued on August 3, 2023, announcing the guilty pleas of six former Rankin County Law Enforcement Officers, the public is encouraged to contact the FBI hotline at 1-800-CALL-FBI, email tips.fbi.gov or call the FBI Jackson Field Office at 601-948-5000, if you or someone you know has been a victim of abuse by a member of the Rankin County Sheriff’s Office.
Pine Ridge Man Sentenced for Second Degree MurderRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Pine Ridge, South Dakota, man convicted of Second-Degree Murder. The sentencing took place on November 28, 2023.
Trent Brewer, age 21, was sentenced to 16 and a half years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Brewer was indicted for Second Degree Murder and Discharge of a Firearm During a Crime of Violence by a federal grand jury in April of 2023. He pleaded guilty on August 28, 2023.
The conviction stems from Brewer shooting another man after a verbal argument on April 1, 2023, in Pine Ridge. The victim succumbed to his injuries.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case was investigated by the FBI and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Anna Lindrooth prosecuted the case.
Brewer was immediately remanded to the custody of the U.S. Marshals Service.
Pascagoula Man Pleads Guilty to Possession with Intent to Distribute over 60 Grams of MethamphetamineRead the Press Release
Gulfport, Miss. – A Pascagoula man pled guilty to possession with intent to distribute over 60 grams of methamphetamine.
According to court documents, law enforcement received information that Jerome Clifton Clegg, 38, was distributing large quantities of methamphetamine in Pascagoula, MS (Jackson County). In August 2023, agents set up surveillance of Clegg’s apartment and observed two drug transactions take place. A traffic stop with the first individual who purchased drugs from Clegg yielded 58 grams of methamphetamine and a second traffic stop with the second individual yielded an additional 3 grams. Based on this information, agents conducted a search of Clegg’s home which yielded additional narcotics and a handgun.
Clegg is scheduled to be sentenced on March 28, 2024. He faces a maximum penalty of forty 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 Brad L. Byerley of the Drug Enforcement Administration made the announcement.
The case was investigated by the Drug Enforcement Administration and the South Mississippi Metro Enforcement Team.
Assistant U.S. Attorney Erica Rose is prosecuting the case.
Osceola County Woman Admits to Unlicensed Dealing in Firearms and Falsification of Gun Purchase RecordsRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Viviana Rodriguez (41, Kissimmee) has pleaded guilty to one count of dealing in firearms without a license, seven counts of making a materially false statement to a federally licensed firearms dealer (FFL), and seven counts of causing an FFL to maintain false information in its official records. Rodriguez faces a maximum penalty of 5 years in federal prison for dealing in firearms without a license, 10 years for each count of making a materially false statement to an FFL, and 5 years for each count of causing an FFL to maintain false information in its official records. Her co-defendant, Kingsley Wilson, pleaded guilty to 25 related counts in November 2023 and is awaiting sentencing.
According to the plea agreement and evidence presented in court, between January 2022 and July 2023, Wilson purchased 92 firearms from FFLs within the Middle District of Florida. Rodriguez, Wilson’s girlfriend, purchased an additional 47 firearms during the same period. While purchasing these firearms, Rodriguez falsely certified on ATF Form 4473s (Firearm Transaction Records) that she was the “actual transferee/buyer” of the firearms. Rodriguez was actually purchasing these firearms for others in exchange for monetary payments. Wilson’s cellphone revealed numerous conversations between Wilson and others, including Rodriguez, about the illegal purchases and transfer of these firearms. Fourteen of the firearms purchased by Wilson and Rodriguez have been recovered by law enforcement at crime scenes (including homicides) in the Bahamas and Canada.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations (HSI), and the Osceola County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
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.
Nine Plead Guilty to Impaired Driving on the Natchez TraceRead the Press Release
Oxford, MS – Nine defendants pled guilty on Wednesday, November 29th, 2023, to impaired driving offenses on the Natchez Trace Parkway in the Northern District of Mississippi. These convictions stemmed from the defendants operating motor vehicles while under the influence of drugs or alcohol. The defendants were all sentenced to serve a term of probation.
United States Attorney Clay Joyner of the Northern District of Mississippi said, “Driving under the influence is a choice that needlessly endangers the lives of innocent people traveling on the Natchez Trace; we are thankful that these defendants were arrested before they could harm others or themselves.”
The National Park Service Rangers assigned to the Natchez Trace Parkway made the arrests in each case and prepared these matters for prosecution by the United States Attorney’s Office. “We are grateful for the work of the Rangers in helping to keep our roadways safe from impaired drivers” Joyner said.
Chief Ranger for the Natchez Trace Parkway Prashant Lotwala said “The law enforcement park rangers at the Natchez Trace Parkway are a dedicated group of individuals who ensure the parkway is as safe as possible for park visitors to enjoy a scenic, leisurely drive.”
The defendants who pled were:
- Caleb Agnew, Saltillo, Mississippi
- Geoffrey Allen, 30, McCool, Mississippi
- Daphne Barr, 27, Houston, Mississippi
- Derrick Brister, 32, Tylertown, Mississippi
- Angel Clements, 29, Tupelo, Mississippi
- Nathan Frank, Booneville, Mississippi
- Jocelyn Grimes, 21, Terry, Mississippi
- Fantasia Judon, 29, Pontotoc, Mississippi
- Asa Sewell, 36, El Dorado, Arkansas
Assistant U.S. Attorney John Herzog Jr. prosecuted these offenses.
With the holiday season approaching, the Rangers of the National Park Service will be continuing their enforcement efforts to apprehend impaired drivers before they can endanger the public at large.
Impaired driving led to the deaths of more than 13,000 people in 2021, the latest year that statistics were available from the National Highway Traffic Safety Administration.
New Orleans Man Sentenced for Violations of Controlled Substances and Gun Control ActsRead the Press Release
NEW ORLEANS, LOUISIANA – JASHA BANKS, a/k/a “Chocolate,” age 39, a resident of New Orleans, was sentenced on November 30, 2023 by U.S. District Judge Susie Morgan to 120 months incarceration after previously pleading guilty to a three-count indictment. Judge Morgan ordered that BANKS be placed on supervised release for three (3) years and pay a mandatory $300 special assessment fee.
Count 1 charged BANKS with being a felon in possession of a firearm, in violation of Title 18, U.S.C. § 922(g)(1) and Title 18, U.S.C. § 924(a)(8). Count 2 charged BANKS with possession with the intent to distribute controlled substances, in violation of Title 21, U.S.C., §§ 841(a)(1) and (b)(1)(C). Count 3 charged BANKS with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, U.S.C. § 924(c)(1)(A)(i).
According to court records, on August 2, 2022, a New Orleans Police Department (NOPD) officer attempted to make a lawful stop of a white Chrysler 300 driven by BANKS. However, BANKS fled from the officer before being apprehended. After obtaining a search warrant for BANKS’s vehicle, NOPD officers searched the car and located $31,478 in cash, 12 individually wrapped baggies containing a blue rock-like substance (46.7 grams) identified as fentanyl, a black Glock Model 23, .40 caliber handgun containing 14 live rounds, and various other items.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. The case was prosecuted by Assistant United States Attorney Mike Trummel of the Violent Crime Unit.
New Mexico Man to Spend More Than 12 Years in Prison for Illicit Conduct with a MinorRead the Press Release
EL PASO, Texas – A New Mexico man was sentenced in a federal court in El Paso to 150 months in prison for transportation of a minor with intent to engage in criminal sexual activity.
According to court documents, registered sex offender Alexandre Theodore Banta, 37, of Roswell, New Mexico, traveled with a juvenile from Roswell to El Paso, Texas in April 2020, engaging in sexual acts in the vehicle along the way. Banta and the juvenile spent between one and a half to two weeks in an El Paso motel, where Banta further engaged in sexual acts with the minor and arranged for the minor to have sex with other individuals in exchange for payment.
The El Paso Police Department was alerted by someone at the motel who said they had seen a young girl entering and exiting various motel rooms and overheard a tenant of one of the rooms describe a sexual encounter with her. Banta was arrested on June 12, 2020 for Sexual Assault of a Minor. He was served a federal arrest warrant on Aug. 18, 2020, and extradited to El Paso.
“This predator committed heinous sexual acts of his own with a minor, while also forcing her into prostitution out of a motel room and lining his pockets,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “I appreciate the vigilance of those who alerted the El Paso Police Department, and our partner agencies who conducted the ensuing investigation. This case serves as an important reminder that sexual exploitation can and does occur in our communities, and we can all play a role in prevention.”
“Child exploitation is one of the most heinous crimes in modern society, and this case exemplifies one of the worst. The sentence fits the crime,” said Special Agent in Charge Francisco B. Burrola for the HSI El Paso Division. “Our robust partnerships with local, state and federal law enforcement agencies continues to allow HSI special agents to ensure those responsible for victimizing children are removed from our communities and placed behind bars for a long time.”
HSI and EPPD investigated the case.
Assistant U.S. Attorney Sarah Valenzuela prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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New Bedford Man Sentenced to Prison for Tax EvasionRead the Press Release
BOSTON – A New Bedford man was sentenced on Dec. 1, 2023 for evading taxes on income he earned as a commercial fisherman.
Joaquin Sosa was sentenced by U.S. District Court Judge Indira Talwani to 18 months in prison and three years of supervised release. Sosa was also ordered to pay restitution of $520,415.
Sosa worked as a commercial fisherman and deckhand operating primarily out of the Port of New Bedford. Despite receiving approximately $1.9 million in income between 2012 and 2021, Sosa did not file tax returns reporting the income and did not pay the substantial income taxes owed on the income he earned. Sosa also worked under false identities over the years. To further conceal the source and disposition of his income, Sosa cashed his paychecks from fishing companies at check-cashing businesses, at times using false identities and used the cash to fund his personal lifestyle. In total, Sosa caused a tax loss to the IRS of $520,415.
Acting United States Attorney Joshua S. Levy; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Harry Chavis Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Victor Wild of the Securities, Financial & Cyber Fraud Unit as well as Trial Attorney Ezra Spiro and Acting Chief John Kane of the Tax Division prosecuted the case.
Nebraska Man Pleads Guilty to Conspiracy to Distribute a Controlled SubstanceRead the Press Release
Brian Raff, 44, from Orchard, Nebraska, pled guilty in federal court on November 29, 2023, to Conspiracy to Distribute a Controlled Substance.
At the plea hearing, Raff admitted that he knowingly conspired with co-defendants Douglas Kelley and Kenneth Hurd, to distribute his minor child’s prescription ADHD medication, Vyvanse (amphetamine), a Schedule II Controlled Substance.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Raff remains free on bond pending sentencing. Raff faces a maximum prison sentence of 20 years, up to a $1,000,000 fine, and up to 3 years of supervised release following any imprisonment.
The case was investigated by the Iowa Division of Inspections & Appeals, United States Department of Health and Human Services, Sioux City Police Department, and the Federal Bureau of Investigations and is being prosecuted by Assistant United States Attorney Kraig R. Hamit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-4022.
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Minneapolis-Area Attorney Pleads Guilty to Employment Tax CrimesRead the Press Release
A Minnesota man pleaded guilty today to willfully failing to pay to the IRS employment taxes withheld from the wages of his law firm’s employees.
According to court documents and statements made in court, in 2013 and 2015 through 2019, Kassius Orlando Benson owned and operated Kassius Benson Law P.A., a law practice in Hennepin County, Minnesota. During each of these years, Benson’s firm had employees, paid them wages and withheld income and Social Security and Medicare taxes from their wages. Benson, however, despite knowing of his obligation to do so, did not file the legally-required quarterly employment tax returns or pay the withholdings to the IRS. In total, he caused a tax loss to the IRS of approximately $213,000.
Benson is scheduled to be sentenced on April 23, 2024, and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Assistant Chief Matthew J. Kluge of the Tax Division is prosecuting the case.
Mexican National Sentenced to 30 Years for Production of Child PornographyRead the Press Release
LEXINGTON, Ky. – A Mexican national, illegally residing in Lancaster, Ky., Ernesto Mendez-Lopez, 37, was sentenced on Monday, to 30 years in federal prison, by Chief U.S. District Judge Danny Reeves, for production of child pornography.
According to his plea agreement, on February 22, 2023, law enforcement received a call from a minor victim stating that Mendez-Lopez had sexually assaulted her and that she was afraid it was going to happen again. Law enforcement responded to investigate and discovered videos of Mendez-Lopez sexually assaulting the minor, on his phone. Mendez-Lopez admitted to sexually assaulting the minor, and to doing so with the intent of producing visual depictions of the conduct.
Under federal law, Mendez-Lopez must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Rana Saoud, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations (HSI); and Sheriff Tim Davis, Garrard County Sheriff’s Office, jointly announced the sentence.
The investigation was conducted by HSI and Garrard County Sheriff’s Department. Assistant U.S. Attorney Erin Roth is prosecuting the case on behalf of the United States.
The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Mexican National Sentenced to 15 Months in Federal Prison for Illegal ReentryRead the Press Release
Orlando, FL – U.S. District Judge Carlos E. Mendoza has sentenced Jose Manuel Gonzalez-Ibarra (32, Mexico) to 15 months in federal prison for illegal reentry into the United States after deportation. Gonzalez-Ibarra had pleaded guilty on August 17, 2023.
According to court documents, Gonzalez-Ibarra was arrested on July 16, 2023, by the Orange County Sheriff’s Office for driving under the influence. He was also charged in state court with felony possession of a controlled substance after officers found methamphetamine on him during a search incident to his arrest. Gonzalez-Ibarra was found in the United States without legal authorization. He had previously been removed from the United States on eight occasions.
This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE-ERO). It was prosecuted by Special Assistant United States Attorney Matthew Del Mastro.
Mexican National Indicted for Distribution of Fentanyl and Possession of A FirearmRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Nahum Rodriguez-Jaimes (46, Mexico) with three counts of possession with the intent to distribute fentanyl and possession of a firearm by an illegal alien. If convicted, Rodriguez-Jaimes faces a maximum penalty of 20 years’ imprisonment per count on the fentanyl distribution charges, and up to 15 years in federal prison for the firearm offense. The indictment also notifies Rodriguez-Jaimes that the United States intends to forfeit the firearm as well as any assets, which are alleged to be traceable to proceeds of the offense.
According to the indictment,Rodriguez-Jaimes distributed fentanyl pills on September 28, October 10, and October 19, 2023, in the Middle District of Florida. On November 7, 2023, Rodriguez-Jaimes, who is not in the United States legally, was found to be in possession of a firearm, which is a violation of United States federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration, the Plant City Police Department, and United States Customs and Border Protection. It will be prosecuted by Assistant United States Attorney Maria Guzman.
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.
Metairie Man Sentenced for Using Communication Device to Facilitate Felony Drug TraffickingRead the Press Release
NEW ORLEANS, LOUISIANA – BRANDON MARTINEZ, a/k/a “RABBIT,” a resident of Metairie, was sentenced by U.S. District Judge Eldon E. Fallon to forty-eight (48) months incarceration after previously pleading guilty to use of a communication facility to facilitate felony drug trafficking, in violation of 21 U.S.C. § 843(b). Judge Fallon ordered that MARTINEZ be placed on supervised release for three (3) years following release from prison. MARTINEZ was also ordered to pay a $100 mandatory special assessment fee.
According to court records, prior to March 2, 2021, the Bureau of Alcohol, Tobacco,, Firearms and Explosives ("ATF") learned that a motorcycle in New Orleans, might be harboring drug sellers. ATF used confidential informant ("CI") to investigate whether drug sales were indeed occurring.
On March 2, 2021, the CI traveled to the shop and met with MARTINEZ. The CI told MARTINEZ that he wanted to buy methamphetamine. MARTINEZ then used a cellphone to set up a meeting between the CI and a co-defendant in this case, who sold methamphetamine. All of the co-defendants involved in this case previously plead guilty to selling and attempting to sell over 50 grams of methamphetamine, in addition to gun charges.
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 track 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 investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the New Orleans Police Department, and the Louisiana State Police. The case was prosecuted by Assistant United States Attorney Mike Trummel of the Violent Crime Unit .
Meridian Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Meridian man pled guilty to possession of a firearm by a convicted felon.
According to court documents, Jacquis LaShawn Houston, 27, was found in possession of a firearm by a Lauderdale County Sheriff’s Deputy on March 16, 2020, during a traffic stop on a vehicle in which Houston was riding as a passenger. Houston threw a 9mm caliber pistol from the vehicle. As a convicted felon, it is contrary to federal law for Houston to possess any firearm.
Houston will be sentenced on February 28, 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 Lauderdale County Sheriff’s Office and the ATF are investigating the case.
Assistant U.S. Attorney Charles W. Kirkham 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.
Med First Agrees to Pay $1,450,000 to Resolve Health Care Fraud Allegations in South Carolina ClinicRead the Press Release
GREENSBORO - Med First Immediate Care & Family Practice, P.A. (Med First) has agreed to pay the government $1,450,000 to resolve False Claims Act allegations that its clinic in Dillon, South Carolina had been operating as a pill mill and falsely filing claims to Medicare and Medicaid for medically unnecessary urine drug testing (UDT), as well as lengthy and complex office visits that were not performed, announced U.S. Attorney Sandra J. Hairston.
The United States and the State of North Carolina alleged that between January 1, 2015, and August 15, 2019, Med First, through its Dillon clinic, knowingly submitted or caused to be submitted claims to Medicare and Medicaid for presumptive and definitive UDT that were not medically reasonable or necessary. Presumptive UDT are tests that screen for the presence of drugs, and definitive UDT are tests that identify the concentration of those drugs in a patient’s system. The government contended that Med First performed both of these tests at nearly every patient office visit for patients on opioid therapy, and that the majority of patients at the Dillon clinic were receiving opioids during the relevant time period. Med First performed the repetitive testing without conducting individualized determinations of need or risk profile. In addition, the results of the UDT were often disregarded as the opioid prescription rarely altered despite unexpected UDT results.
The United States and the State of North Carolina further alleged that Med First billed for office visits, known as Evaluation and Management (E/M) services, at higher levels of complexity than actually provided to patients. There are five levels of E/M services, and the higher the level billed, the more complex and often lengthier the office visit must be. The government alleges that the Dillon clinic provider did not engage in complex office visits when spending little time with patients and simply refilling opioid prescriptions.
The United States initiated its investigation when a whistleblower filed a lawsuit under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblower will receive $261,000 as his share of the governments’ recovery in this matter. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can also be reported to the Department of Health and Human Services at 800 HHS TIPS (800-447-8477).
“This office is committed to fighting against the opioid epidemic using all available resources, including the False Claims Act,” said Sandra J. Hairston, United States Attorney for the Middle District of North Carolina. “The government must deter all providers, and particularly those who prey on vulnerable populations, from enriching themselves off the federal health care programs with the submission of services that are not provided for legitimate medical need.”
“We are continuing to confront a deadly opioid crisis, brought on in part by irresponsible health care providers who flooded their community with unnecessary opioids pills,” said Attorney General Josh Stein. “My office will continue working with our state and federal partners to hold accountable providers who defraud North Carolina taxpayers and harm our people.”
"Providers who put their own profits above their professional responsibilities to appropriately serve their patients and to honestly bill federal health programs put both patient well-being and taxpayer funding at risk,” said Tamala E. Miles, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General. "Our agency, working closely with our law enforcement partners, will continue to investigate alleged health care fraud schemes to protect these safety net programs and the enrollees relying on them."
This case was handled by the U.S. Attorney’s Office for the Middle District of North Carolina with assistance from the Office of Inspector General of the United States Department of Health and Human Services, as well as the North Carolina Attorney General’s Medicaid Investigations Unit. The United States was represented by Assistant United States Attorney Rebecca Mayer.
The lawsuit is captioned United States of America and the State of North Carolina ex rel. Piramzadian v. Med First Immediate Care and Family Practice, P.A., et al., No. 20-CV-352 (M.D.N.C.). The claims settled by this agreement are allegations only, and there has been no determination of liability. The Settlement Agreement is not an admission of liability or wrongdoing by Med First.
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Maryland man sentenced for fentanyl traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Warren Thomas Gray, also known as “Stix,” age 25, of Baltimore, Maryland, was sentenced to24 months for his role in an Eastern Panhandle fentanyl trafficking operation.
According to court documents and statements made in court, Gray was one of the ringleaders of the fentanyl trafficking operation, supplying fentanyl from Baltimore to Shanklin and others to distribute in Hampshire, Mineral, and Morgan Counties. During the investigation, officers seized several firearms, ammunition, and U.S. currency.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government.
The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, led the investigation. The Task Force consists of members from the Federal Bureau of Investigation, the Drug Enforcement Administration, the West Virginia State Police, the Mineral County Sheriff’s Office, the Hampshire County Sheriff’s Office, the Hardy County Sheriff’s Office, the Grant County Sheriff’s Office, and the Keyser Police Department. The Hampshire County Prosecutor’s Office assisted.
U.S. District Judge Gina M. Groh presided.
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Maryland Man Sentenced to Five Years for Scheme that Bilked Benevolent Donors of Charitable ContributionsRead the Press Release
WASHINGTON – James Trankle, 55, previously of Churchton, Maryland, was sentenced to 60 months in prison for conspiracy to commit mail and bank fraud, and five additional counts of bank fraud. The charges all stemmed from a scheme in which Trankle created fake charities, solicited donations, and then stole the identities of the donors he tricked into giving funds. Many of the victims were older adults.
The sentence, in posted on December 1, 2023, was announced by U.S. Attorney Matthew M. Graves and Inspector-in-Charge Damon Wood of the U.S. Postal Inspection Service – Washington Division. In addition to the prison term, U.S. District Judge Trevor N. McFadden ordered five years of supervised release, restitution of $204,561, and forfeiture of $135,327.
Trankle was found guilty on May 15, 2023, following a jury trial in the U.S. District Court for the District of Columbia. According to evidence presented in court, from 2013 to 2018 Trankle and his co-defendant, Stephen Sibert, created fake charities, registered those entities with the D.C. Department of Consumer and Regulatory Affairs (DCRA), and then presented them as legitimate charities. Among the examples included the bogus “Disabled and Paralyzed Veterans Fund,” the “National Breast Cancer Awareness Fund,” and the “Children’s Leukemia of America Fund.”
Trankle used a post office box address in Washington, D.C., as the official mailing address for the fake charities. He opened numerous bank accounts in the names of the fraudulent charities. And he sent solicitations via U.S. mail to thousands of potential donors—his targeted victims—nationwide, asking the recipients to send personal checks as donations. Through the scheme, Trankle obtained over 1,600 personal checks from victims who thought they were making charitable gifts. Trankle then deposited those checks into bank accounts that he and Sibert controlled. The government’s analysis of those accounts showed that the conspirators obtained more than $45,000 from their victims who falsely believed that they were giving money to legitimate organizations.
In addition, using the bank account and routing information from the victims’ checks, the conspirators printed additional unauthorized counterfeit checks payable to their fraudulent charities that were then drawn against the victims’ personal checking accounts. The conspirators deposited those unauthorized counterfeit checks into the bank accounts they controlled, and then later withdrew the money and spent the funds on personal expenses. In total, Trankle and Sibert deposited more than 700 counterfeit checks with a total value of more than $150,000.
The fraudulent charities did not perform any of the charitable work described in their solicitations, nor did the fraudulent charities provide any significant funds to other charities that did so. Trankle concealed his scheme under the guise of operating a church from his office in Maryland.
This case was investigated by the U.S. Postal Inspection Service, Washington Division. It was prosecuted by Assistant U.S. Attorneys John Borchert and Brian Kelly, and Paralegal Specialist Gina Torres Trujillo.
Man Sentenced for Illegal Possession of a Firearm After Felony ConvictionRead the Press Release
NEW ORLEANS, LOUISIANA – CARLSEL ALEXANDER, age 27, a resident of Baton Rouge, Louisiana, was sentenced on November 30, 2023 by United States District Judge Susie Morgan, for possession of a firearm by a convicted felon, a violation of Title 18, United States Code, Section 922(g)(1), announced United States Attorney Duane A. Evans.
The indictment alleged that ALEXANDER was a convicted felon in possession of a FN Model 509, 9-millimeter semiautomatic handgun.
ALEXANDER was sentenced to thirty-three (33) months imprisonment followed by three (3) years of supervised release, and was ordered to pay a mandatory special assessment fee of $100.
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 investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department. It was prosecuted by Assistant United States Attorney Troy Bell of the General Crimes Unit.
Man Admits Laundering Money for Drug Dealers in St. LouisRead the Press Release
ST. LOUIS – A man from Lake St. Louis, Missouri on Monday admitted laundering money for methamphetamine dealers operating in the St. Louis area.
Melvin Hayes, 66, pleaded guilty in U.S. District Court in St. Louis to misprision of a felony.
Hayes admitted working on behalf of Demond Bernard McDaniels Jr., Dawaune Lamont Rhodes Jr. and others who were distributing methamphetamine. He also admitted being caught on Oct. 8, 2020, in Kansas with 45 bundles of meth weighing about 100 pounds. Hayes had picked the meth up in Colorado and was bringing it to McDaniels. He told investigators that he would be paid for the trip but didn’t tell them he shared the profits from drug sales.
Hayes made three to four additional trips bringing cash from drug sales to Los Angeles and picking up meth, his plea says.
A subsequent investigation recovered a total of $115,755 in cash associated with Rhodes and McDaniels.
Hayes also admitted amassing assets worth about $2.6 million by using drug profits to buy real estate, vehicles and other assets and using his limousine business to hide the source of cash.
Hayes is scheduled to be sentenced March 26, 2024. The misprision charge is punishable by up to three years in prison and a $250,000 fine. Hayes has already agreed to forfeit $250,000, which represents the approximate value of properties he bought via his money laundering activities.
Rhodes, of St. Louis, and McDaniels, of St. Charles, were each sentenced this year to 10 years in prison.
The Drug Enforcement Administration and the U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Paul D’Agrosa is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Force (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.
Maine Man Convicted for Role in Methamphetamine ConspiracyRead the Press Release
BOSTON – A Maine man has been convicted by a federal jury in Boston in connection with his role in a methamphetamine trafficking conspiracy that operated in Massachusetts, New Hampshire and Northern California.
Jacob Parlin, 44, of Lebanon, Maine, was convicted on Nov. 30, 2023 of one count of conspiracy to distribute and to possess with intent to distribute 50 grams or more of methamphetamine and one count of distribution of and possession with intent to distribute 50 grams or more of methamphetamine. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for March 7, 2024.
Parlin was indicted along with nine others in December 2021. Evidence presented at trial established that, beginning in or about March of 2020 through May of 2021, Parlin conspired with others to distribute and possess with intent to distribute methamphetamine in an amount greater than 50 grams.
Parlin is the 10th and final defendant to be convicted in the case.
Each of the charges carry a mandatory minimum sentence of 10 years and up to life in prison, up to a lifetime of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Assistant U.S. Attorneys Nadine Pellegrini and Amanda Beck of the Criminal Division are prosecuting the case.
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.
Lyon County Man Pleads Guilty to Wire Fraud in Scheme to Defraud Midwest Livestock ProducersRead the Press Release
A Lyon County man who defrauded pork producers while working as the regional manager of an Iowa livestock dealer pled guilty on December 1, 2023, in federal court in Cedar Rapids. Robert Harry Bickerstaff, age 52, from Rock Rapids, Iowa, was convicted of one count of wire fraud.
At the plea hearing and in his plea agreement, Bickerstaff admitted that he had worked as a regional manager for an Iowa livestock dealer between 2018 and 2021. As regional manager, Bickerstaff oversaw livestock buying stations in Iowa, Minnesota, and South Dakota. From time to time, Bickerstaff also personally counted, classified, and weighed swine at these stations.
Bickerstaff admitted he participated in a scheme to defraud livestock producers personally and by directing others to (1) falsely and fraudulently lower the weights and reduce the numbers and classifications of swine that producers and sellers had delivered to the dealer at its buying stations; (2) manipulate the weights of swine either manually or using a crowbar, paddle, or other similar object, and thus defeat the electronic scales on which livestock producers’ swine was weighed at his buying stations; and (3) create fraudulent “sort sheets” and scale tickets containing false numbers, classifications, and weights of producers’ swine for transmission to the dealer’s headquarters in Waucoma, Iowa. Finally, concerned about a potential investigation into his conduct in early 2021, Bickerstaff instructed others to destroy anything with his name on it.
In addition to working for the livestock dealer, Bickerstaff was a pork producer himself. In February 2022, Bickerstaff won a “Hog Wild” award from a statewide pork producers’ association for his role in promoting pork in Lyon County, Iowa.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Bickerstaff remains free on bond previously set pending sentencing. Bickerstaff faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated by the United States Department of Agriculture, Office of Inspector General, and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-2026.
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Laredo man guilty of drug trafficking violations in the Eastern District of TexasRead the Press Release
PLANO, Texas – A Laredo man pleaded guilty to federal drug trafficking violations in the Eastern District of Texas on the day his jury trial was set to begin, announced U.S. Attorney Damien M. Diggs.
Jorge Elias Golarte, 54, of Laredo, Texas and Monterrey, Mexico, pleaded guilty to conspiracy to possess with the intent to distribute and distribution of methamphetamine, cocaine, heroin, and marijuana before U.S. District Judge Sean Jordan today.
According to information presented in court, Golarte, who is in the shipping business in Laredo, Texas and Monterrey, Mexico, admitted to his role in the conspiracy, distributing marijuana and cocaine from various sources which would then be provided to co-conspirators and distributed during the conspiracy in the Eastern District of Texas and elsewhere. Golarte will also forfeit ownership of one of his Margo Logistics tractor-trailers.
Golarte faces a minimum of 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This 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.
This case is investigation involves the Drug Enforcement Administration, Laredo and Dallas, the U.S. Border Patrol, the Dallas Police Department, and the Lewisville Police Department and is prosecuted by Assistant U.S. Attorneys Heather Rattan and Kevin McClendon.
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Justice Department Files Statement of Interest in Religious Land Use Case Involving Orthodox Jewish CongregationRead the Press Release
The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey filed a statement of interest today explaining that an Orthodox Jewish congregation’s claims under the Religious Land Use and Institutionalized Persons Act (RLUIPA) are ready to be decided in federal court.
“RLUIPA is designed to ensure that religious groups of all faiths do not face unjust barriers when seeking to establish places to worship,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Local land use boards cannot unfairly or discriminatorily deny a religious group’s application to use land for religious purposes. When local officials use the guise of zoning restrictions to block or restrict religious groups, this not only contravenes our nation’s commitment to religious freedom, it also violates federal law.”
“The U.S. Attorney’s Office is committed to ensuring that all religious communities in our District have the ability to worship freely and without discrimination,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “We will continue our work to enforce RLUIPA, and to ensure that local boards apply the law fairly and correctly so that communities of faith may exercise their fundamental rights and that their land use applications are not unlawfully denied on the basis of their religion or in a manner that unlawfully burdens the free exercise of religion.”
The statement of interest was filed in Chai Center for Living Judaism v. Township of Millburn, as part of a lawsuit centering around an Orthodox Jewish congregation’s application to build a synagogue that was denied. The lawsuit alleges that denial of the application imposed a substantial burden on the congregation’s religious exercise, discriminated against the congregation based on its religion, unreasonably limited its religious assembly and treated it worse than comparable secular uses.
The lawsuit also alleges that certain parts of the township’s land-use regulations, including its requirement that houses of worship be located on lots at least three-acres in size, violate RLUIPA. The township filed a motion, arguing that the RLUIPA claims should be dismissed based on a state-law standard used by New Jersey state courts in reviewing zoning decisions. The motion also argues that the RLUIPA claims are not ready to be heard in federal court because the zoning denial was based on procedural grounds.
The statement of interest explains that the congregation’s claims must be evaluated based on the statutory elements laid out in RLUIPA, and that state-law standards of review do not apply to RLUIPA claims. The statement of interest also argues that the congregation’s RLUIPA claims are ready to be adjudicated by the federal court because the township reached a final decision on the zoning application, which, as plaintiffs alleged, inflicted an injury on plaintiffs by preventing them from using their land for their religious needs.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
As part of this initiative, the department has obtained relief under RLUIPA to combat antisemitism and other forms of religious hate, including in Airmont, New York, where the department recently secured a consent order requiring the Village of Airmont to stop discriminating against its Orthodox Jewish residents. Additionally, the department recently hosted an outreach forum with religious leaders at Seton Hall Law School in Newark, New Jersey, on combating religious discrimination under RLUIPA, and plans to hold additional outreach events in the coming months.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office Civil Rights Division at (855) 281-3339 or the Civil Rights Division’s Housing and Civil Enforcement Section at (833) 591-0291 or may submit a complaint through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, can be found at www.justice.gov/crt/about/hce/rluipaexplain.php.
millburn_statement_of_interest_filed.pdfJury Convicts Man of Sex Trafficking and Obstruction of a Sex Trafficking ProsecutionRead the Press Release
A federal jury in the District of Maine on Friday convicted Ricardo Middleton, aka Red, 32, of Boston, of sex trafficking and obstruction of a sex trafficking prosecution, after a four-day trial. Middleton was found guilty of sex trafficking a young woman through force, fraud and coercion, and, while detained pending trial, of instructing a co-defendant not to incriminate him.
The evidence presented at trial demonstrated that Middleton targeted a heroin-addicted 25-year-old woman living in South Portland, Maine. He compelled her to engage in commercial sex, using drugs, lies, intimidation, physical violence and rape as means to control her. Testimony provided details of the three days in November 2015, in which Middleton, along with co-defendants Sherry Jones of Dorchester, Massachusetts, and Mathew Thatcher of Scarborough, Maine, transported the victim to several locations in Maine and Massachusetts. Along the way, Middleton berated the victim, slapping her, punching her and throwing pennies at her when she said she was hungry and asked to buy food. The victim testified to painful details, including how the defendant raped her, and told her that he was “going to make a lot of money off” her.
“This defendant preyed on this vulnerable victim, and used cruel and brutal violence to coerce her into commercial sex acts for his own financial gain,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We thank this survivor for coming forward and courageously reporting her harrowing experience. The Justice Department will vigorously prosecute human trafficking crimes to hold offenders accountable, to seek justice for survivors and to affirm their rights and dignity.”
“The prosecution of human trafficking in Maine is a top priority for my office, and this verdict ensures that Middleton will be held accountable for this unconscionable crime,” said U.S. Attorney Darcie N. McElwee for the District of Maine. “Human trafficking takes advantage of our most vulnerable citizens and seeks to rob them of their basic human rights. Middleton perpetrated significant violence upon this victim, including sexual assault, all to coerce and exploit her into committing commercial sexual acts for Middleton’s own profit and gain.”
“Middleton and his collaborators treated their victims like property, exploiting their addiction and using horrific violence to ensure compliance. He further attempted to silence those who were prepared to testify against him, but after today’s guilty verdict Middleton is facing a significant sentence in federal prison, far away from those he’s victimized,” said Special Agent in Charge Michael J. Krol of Homeland Security Investigations (HSI) New England Field Office. “I want to extend my heartfelt thanks to the survivor who made her voice heard, reliving what were surely some of the most terrifying moments of her life. HSI will never cease in its mission to investigate human traffickers and help survivors find the support they deserve to begin a new life with dignity.”
Prior to the defendant’s trial, Jones pleaded guilty to conspiracy to commit sex trafficking, and Thatcher pleaded guilty to interstate travel in aid of racketeering. Neither testified at trial. All three defendants are scheduled to be sentenced on a future date. Middleton faces a mandatory minimum penalty of 15 years in prison and a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The HSI New England Field Office, Office of the Portland Resident Agent in Charge investigated the case, with assistance from the Biddeford Police Department, Portland Police Department, South Portland Police Department, Topsham Police Department and Saco Police Department.
Assistant U.S. Attorney David Joyce for the District of Maine and Trial Attorney Meghan Tokash and Deputy Director William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Jacksonville Business Owner Sentenced to Federal Prison for COVID Relief FraudRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Kenneth Steven Landers (57, Jacksonville) to one year and one day in federal prison for wire fraud and engaging in an illegal monetary transaction. As part of his sentence, the court also entered an order of forfeiture in the amount of $910,000, the proceeds of his wire fraud scheme, and also ordered him to pay full restitution to his victims. Landers had pleaded guilty on February 14, 2023.
According to court documents, during 2020 and 2021, Landers applied for federally backed Paycheck Protection Program (PPP) loans 10 times, requesting a total of $1.41 million. He submitted the applications on behalf of four different corporate entities that he controlled, specifically, the American Fallen Veterans Service Project Inc., Tire Empire LLC, Maypops LLC, and Florida United Inc. In support of each application, Landers electronically submitted false information and documents, including fictitious or altered Internal Revenue Service tax forms.
Notwithstanding Landers’s use of fraudulent documents, seven of his ten PPP loan applications were approved and funded in the total amount of $910,000, which was deposited into financial accounts that he controlled. Rather than use the loan proceeds exclusively to pay employees or for other allowable expenses under the PPP, Landers used the funds for his personal benefit. For example, he paid off the mortgages on his home and a business property, purchased an 18kt gold Rolex watch, and bought a vintage Jaguar XKE Roadster. He also wrote checks to himself, transferred funds electronically to personal accounts, paid down personal debt, and made approximately $113,000 in cash withdrawals of funds traceable to PPP loan proceeds.
“The ripple effects of the COVID pandemic are still being felt throughout society today. Kenneth Steven Landers saw this global crisis as an opportunity to line his own pockets. IRS-CI is committed to pursuing these bad actors and ensuring that those who falsely manipulate the system are prosecuted to the fullest extent,” said IRS-CI Acting Special Agent In Charge Tara K. Reed. “Today’s sentencing demonstrates that criminals will pay a heavy price when they steal funds intended to provide much needed relief to many Americans who were in financial despair.”
This case was investigated by Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Michael J. Coolican. The asset forfeiture was handled by Assistant United States Attorneys Mai Tran, Julie A. Simonsen, and Jennifer Harrington.
This case was prosecuted as part of the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act relief programs. The CARES Act is a federal law enacted in March 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One of the two programs that were developed through CARES Act is the PPP. It provides funding to businesses through PPP loans for payroll costs, interest on mortgages, rent and utilities. PPP allows the interest and principal on loans to be forgiven if the business spends proceeds on certain expense items within a designated time and uses a certain percentage of the loan on payroll expenses. The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the crisis.
Houston Man Sentenced to Ten Years in Prison for Drug TraffickingRead the Press Release
NEW ORLEANS – On November 29, 2023, United States District Judge Jane Triche Milazzo sentenced JORGE ISAAC GONZALEZ-MEDINA, age 32, of Houston, to the mandatory minimum sentence of ten (10) years in federal prison, to be followed by 5 years of supervised release, for violating the Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
GONZALEZ-MEDINA was also ordered to pay a mandatory special assessment fee of $100.
According to court records, GONZALEZ-MEDINA admitted to possessing with the intent to distribute over 400 grams of fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A). GONZALEZ-MEDINA further admitted to being stopped in a vehicle with three kilograms of fentanyl concealed in the rear axle.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney David Haller of the Violent Crime Unit is in charge of the prosecution.
Hospital Executive and Three Texas Physicians to Pay over $880,000 to Settle Kickback Allegations Involving Laboratory TestingRead the Press Release
Former hospital executive Peggy Borgfeld, of Lexington, Texas, and physicians Linh Nguyen, M.D. and Thuy Nguyen, M.D., of Dallas, and Heriberto Salinas, M.D., of Cleburne, Texas, have agreed to pay a total of $880,199 to resolve False Claims Act allegations involving illegal remuneration in violation of the Anti-Kickback Statute. The parties also have agreed to cooperate with the Justice Department’s investigations of, and litigation against, other participants in the alleged schemes.
“The False Claims Act protects taxpayer-funded programs against those who seek to misuse them for their personal gain,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to enforce the law to protect the integrity of federal healthcare programs, including by pursing arrangements that involve the payment of kickbacks.”
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The settlements announced today resolve allegations that Drs. Linh Nguyen, Thuy Nguyen and Heriberto Salinas received kickbacks in violation of the Anti-Kickback Statute in return for their laboratory testing referrals.
- Linh Nguyen and Thuy Nguyen. Drs. Linh Nguyen and Thuy Nguyen have agreed to pay $404,813 to resolve two allegations from October 2015 to February 2018. First, the physicians allegedly received thousands of dollars in payments from a purported management service organization (MSO) named Ascend MSO of TX LLC (Ascend) in return for ordering laboratory tests from Little River Healthcare (Little River), a critical access hospital in Rockdale, Texas, and Boston Heart Diagnostics Corporation (Boston Heart), a clinical laboratory in Framingham, Massachusetts. Second, the physicians allegedly received thousands of dollars in payments from an MSO named Geminorium MG LLC in return for ordering laboratory tests from True Health Diagnostics LLC, a clinical laboratory in Frisco, Texas.
- Heriberto Salinas. Dr. Salinas agreed to pay $150,386 to resolve two allegations from December 2015 to May 2017. First, Dr. Salinas allegedly received thousands of dollars in MSO payments from Ascend in return for ordering laboratory tests from Little River. Second, Dr. Salinas allegedly received thousands of dollars in payments from a purported MSO named Herculis MG LLC in return for ordering laboratory tests from Boston Heart.
In addition, the United States announced that Peggy Borgfeld, the former controller, chief financial officer and chief operating officer of Little River, agreed to pay $325,000 plus additional contingent payments to resolve allegations that she caused the submission of false claims to Medicare, Medicaid and TRICARE. Borgfeld allegedly knew that Little River paid commissions to recruiters who used MSOs to pay kickbacks to doctors to induce their laboratory testing referrals to Little River. The settlement resolves allegations that Borgfeld knowingly caused Little River to submit claims to federal healthcare providers for the laboratory tests that the kickback recipients referred to Little River. The settlement also resolves allegations that, despite her knowledge of the MSO kickbacks, Borgfeld signed false certifications in Medicare cost reports regarding Little River’s compliance with the Anti-Kickback Statute. Under the terms of the settlement agreement, Borgfeld agreed to be excluded from participation in federal healthcare programs for five years.
“These settlements demonstrate our firm commitment to holding individuals accountable for their part in this healthcare kickback scheme,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “We will continue to pursue those who cover up improper payment arrangements with pass-through entities, sham marketing contracts and faux investment opportunities to enrich themselves at the expense of the taxpayers, in violation of the Anti-Kickback Statute.”
“Illegal kickback payments not only corrupt the medical decision-making process but also cause harm and financial loss to Medicare and other federally funded healthcare programs,” said Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG works closely with our law enforcement partners to root out and hold accountable those who put profit and personal gain ahead of legitimate medical services.”
“Today’s outcome is a testament to the dedication and determination of the Department of Defense Office of Inspector General (DoD OIG), Defense Criminal Investigative Service (DCIS) and our law enforcement partners to protect our military’s healthcare system, known as TRICARE,” said Special Agent in Charge Michael C. Mentavlos of the DCIS Southwest Field Office. “DCIS will continue to work closely with the Justice Department to hold accountable those that attempt to defraud the TRICARE program, pilfering taxpayer resources and undermining military readiness.”
The settlements were the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Eastern District of Texas, with assistance from HHS-OIG and DCIS. The settlements announced today were handled by Trial Attorneys Christopher Terranova and Gavin Thole in the Civil Division’s Commercial Litigation Branch (Fraud Section) and Assistant U.S. Attorneys James Gillingham and Betty Young for the Eastern District of Texas. The United States has recovered over $36 million relating to conduct involving MSO kickbacks to healthcare providers, which includes recoveries from 43 physicians.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
Honduran national gets 50 years for kidnapping and raping 15-year-oldRead the Press Release
HOUSTON – A 33-year-old man who illegally resided in Houston has been ordered to federal prison for interstate travel with intent to engage in a sex act with a minor, announced U.S. Attorney Alamdar S. Hamdani.
Wilmer Rivera-Hernandez pleaded guilty Aug. 24.
U.S. District Judge George C. Hanks Jr. has now sentenced Rivera-Hernandez to 600 months in federal prison. At the hearing, the court heard additional information including a statement from the victim describing her transformation from a young, innocent girl into someone who feels anger, pain, guilt, numbness, depression and humiliation. In handing down the prison terms, the court noted how what Rivera-Hernandez did was reprehensible, and he could not be allowed to walk among civilized people. He was further ordered to serve the rest of his life on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Rivera-Hernandez will also be ordered to register as a sex offender.
“Words cannot describe the damage Rivera-Hernandez did after he kidnapped and raped a 15-year-old child,” said Hamdani. “His loathsome and abhorrent actions deserve the stiffest punishment. As the father of a 15-year-old girl myself, I am thankful every day for local, state and federal law enforcement. And in this case for the coordinated efforts of the brave men and women of Montgomery County, Texas, and Knox County, Tennessee, who were able to save a child from a monster’s grasp.”
In June 2020, Rivera-Hernandez took a 15-year-old girl on what was supposed to be a date, but it quickly turned into a nightmare. After she realized he was just driving around, she asked him to take her home. He refused. Instead, he grabbed this young girl by the head, strangled her, threatened both her and her family’s safety, seized her phone and then forced her to drink alcohol and take medicine to make her drowsy and unable to resist him. He then drove her from Houston to Little Rock, Arkansas, where he took her to a motel and raped her. The next day, he began driving her through Arkansas and into Tennessee.
However, the victim was able to get access to a phone and contact her family members, telling them he could kill her and to call the police. They contacted law enforcement who, using geolocation on the phone, was eventually able to locate Rivera-Hernandez and the victim parked at a truck stop in Knoxville, Tennessee.
After his indictment and arrest, Rivera-Hernandez also engaged in a scheme to obstruct justice from prison. He arranged the creation and delivery of fabricated WhatsApp messages purporting to be from the minor victim. In these manufactured messages, Rivera-Hernandez made it appear as if the minor had recanted her claims of kidnapping and rape and that she was always in love with him. By having these messages delivered to the prosecution, Rivera-Hernandez hoped it would lead to the dismissal of his charges. A thorough investigation, however, quickly revealed the messages were fake and that Rivera-Hernandez attempted to obstruct justice.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the future.
Department of State’s Diplomatic Security Service conducted the investigation with assistance from Homeland Security Investigations. Sheriff’s Offices in Montgomery County, Texas, and Knox County, Tennessee, assisted with the victim’s rescue. Assistant U.S. Attorneys Sharad Khandelwal and Stephanie Bauman prosecuted the case.
Gulf Shores Attorney Sentenced to Four Months in Prison for Smuggling Spice to a Federal Inmate at the Monroe County Detention CenterRead the Press Release
MOBILE, AL – A Gulf Shores man was sentenced to four months in prison for illegally smuggling paper soaked in “spice,” a synthetic cannabinoid, to a federal inmate at the Monroe County Detention Center.
According to court documents, Michael Leonides Santos, 36, was arrested on February 18, 2022, after corrections officers seized papers from a federal inmate that were soaked with spice. The inmate had just met with Santos, a practicing attorney, in a visiting room at the jail. As reflected on surveillance video, Santos handed the soaked papers to the inmate, who then leaned down and placed them in his socks. Following the incident, federal agents arrived at the jail and searched Santos’s vehicle, finding prepackaged baggies containing tobacco, phones, charging cables, and other items consistent with contraband smuggling.
Agents also seized a contraband cell phone from the inmate. On the phone, agents recovered numerous text messages linking Santos to contraband smuggling.
Between November 2021 and February 2022, the inmate also exchanged several monitored “Chirp” text messages with Santos and others. In those messages, the inmate discussed smuggling spice into the jail, how to package the contraband and give it to Santos, and how much profit the inmate could make by distributing spice inside the jail. In a December 2021 message, the inmate asked Santos to visit the jail and offered assurances that “they don’t look into that.”In addition to the four-month prison sentence, United States District Judge Kristi K. DuBose ordered Santos to serve a one-year term of supervised release upon his release from prison, during which time he will receive substance abuse testing and treatment. The court imposed a $200 fine and ordered Santos to pay $25 in special assessments.
As part of his plea agreement in this case, Santos is barred from any further representation of criminal defendants in any United States jurisdiction, including but not limited to any federal, state, local, or municipal courts.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Federal Bureau of Investigation, the Drug Enforcement Administration, and the Monroe County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Green Bay Pastor Sentenced to 15 Years in Federal Prison for Online Sex Crimes Targeting Children OverseasRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on December 4, 2023, Cory J. Herthel (age: 40) of Green Bay, Wisconsin, was sentenced to 180 months’ imprisonment (15 years) for the online enticement of children located in Venezuela, Cuba, and Spain.
In May 2023, the Federal Bureau of Investigation (FBI) was contacted by the church where Herthel was employed as a pastor regarding information it had obtained indicating that Herthel had possibly been involved in an inappropriate sexual relationship with a minor living in Venezuela. An ensuing investigation revealed that Herthel sent the child videos of himself masturbating, and at Herthel’s request, the minor sent similar videos and images in return.
According to court documents, Herthel acknowledged knowing the minor from a mission trip he had taken to Ecuador, where he met the child begging on the streets. The child and his mother returned to his native Venezuela, and Herthel kept in touch with the child. Herthel was confronted by law enforcement with images of him masturbating and acknowledged sending the videos to the child whom he knew to be a minor. Herthel also acknowledged asking the child to send him sexually explicit images and masturbation videos and admitted sending the child monetary payments via various online applications.
According to court records, further investigation by the FBI revealed that Herthel was also exchanging sexually explicit images and videos with a minor child located in Cuba. Herthel assisted the child’s move to Spain with the ultimate goal of bringing him to the United States. Herthel visited the minor on several occasions in Spain and acknowledged engaging in a sexual relationship with the child.
Finally, court records indicate that Herthel also solicited sexually explicit images and videos from a second child in Cuba, to whom Herthel also sent monetary payments.
At the sentencing hearing, Senior United States District Judge William C. Griesbach described Herthel’s crime as “terrible” and “an abuse of spiritual authority.” Judge Griesbach also referenced the strong need to deter Herthel and others who may attempt to engage in similar conduct. Judge Griesbach further noted the serious psychological and emotional scars that Herthel imposed on his victims.
Following his 15-year prison sentence, Herthel will spend 20 years on supervised release and will be required to register as a sexual offender for the remainder of his life.
This case was investigated by the Green Bay and Milwaukee offices of the FBI, with the assistance of the Green Bay Police Department. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Grand jury indicts former state public utilities chairman for federal bribery, embezzlement crimesRead the Press Release
CINCINNATI – A federal grand jury has charged the former chairman of the Public Utilities Commission of Ohio (PUCO) with crimes related to bribery and embezzlement.
Samuel Randazzo, 74, of Columbus, self-surrendered at U.S. District Court in Cincinnati this morning. Randazzo is charged in an 11-count indictment that was returned on Nov. 29 and he will be scheduled for an initial appearance later today.
“Public officials – whether elected or appointed – are tasked with upholding the highest level of integrity in their duties and responsibilities. Such service to the public must be selfless, not selfish,” said U.S. Attorney Kenneth L. Parker. “Through the indictment unsealed today, we seek to hold Randazzo accountable for his alleged illegal activities."
"Today's indictment outlines an alleged scheme in which a public regulatory official ignored the Ohio consumers he was responsible for protecting, instead taking a bribe from an energy company seeking favors," stated FBI Cincinnati Special Agent in Charge J. William Rivers. “The FBI will remain vigilant in investigating allegations of corruption at all levels of government and hold those who violate the law accountable for their actions.”
Randazzo faces one count of conspiring to commit travel act bribery and honest services wire fraud, two counts of travel act bribery, two counts of honest services wire fraud, one count of wire fraud and five counts of making illegal monetary transactions.
Randazzo was the PUCO chairman from April 2019 until November 2020, when he resigned. According to the indictment, Randazzo allegedly received more than $4.3 million from an energy company and its affiliates to provide favorable official actions for the company through PUCO proceedings.
For example, it is alleged that in November 2019, Randazzo included language in a PUCO Opinion and Order that would address an issue for the energy company that was slated to happen in 2024. “Stock is gonna get hit with Ohio 2024. Need Sam to get rid of the ‘Ohio 2024 hole,’” an energy executive text message read. Another executive messaged, in part: “I spoke with Sam today. Told me 2024 issue will be handled next Thursday.” The next Thursday, the PUCO decision included language alleviating the 2024 issue.
A March 2020 text message from an executive mentions that Randazzo “will get it done for us but cannot just jettison all process.” The message references specific official actions before continuing: “…a lot of talk going on in the halls of PUCO about does he work there or for us? He’ll move it as fast as he can.”
It is alleged that Randazzo received the bribe money from the energy company through his consulting business, Sustainability Funding Alliance of Ohio, Inc. (SFA), which was registered in Ohio in March 2010. SFA filings name Randazzo as the president and sole representative of the business and lists Randazzo’s home address as the business address.
The charging document alleges that Randazzo also used his consulting business, SFA, to carry out an embezzlement scheme, funneling to himself at least a million dollars meant for an association of large, industrial energy users in Ohio.
Randazzo was the general counsel of the industry group for multiple years, including from 2010 until his PUCO appointment, and at times served as the industry group's executive director. Randazzo controlled the industry group's bank accounts.
It is alleged Randazzo entered into settlements with companies on behalf of the industry group and kept portions of the settlement payments for himself. As one method to conceal his alleged embezzling, Randazzo allegedly created a fictitious member of the industry group that received payments along with legitimate members.
For example, in March 2019, it is alleged Randazzo attempted to conceal his embezzling by wiring approximately $1.1 million between bank accounts under his control.
If convicted as charged, the defendant could face up to 20 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges and acknowledged assistance provided by the Ohio Ethics Commission. Deputy Criminal Chief Emily N. Glatfelter and Assistant United States Attorney Matthew C. Singer are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Four-Time Deported Mexican National Sentenced to Federal Prison for Trafficking CocaineRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazzara has sentenced Americo Bautista-Villarreal (59, Mexico) to seven years and eight months in federal prison months in federal prison for conspiracy to distribute five kilograms or more of cocaine. Bautista-Villarreal had pleaded guilty on November 20, 2021.
According to court documents, Bautista-Villarreal was deported from the United States on four previous occasions, including in 1998, 2008, 2015, and 2017. In February 2020, Bautista-Villarreal participated in coordinating and planning shipments of cocaine from Mexico and Texas for delivery in the Middle District of Florida.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Diego F. Novaes.