Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
18 January 2024
New York Man Sentenced to Federal Prison and Pays $850,000 in Civil Fines and Restitution for Durable Medical Equipment SchemeRead the Press Release
GREENVILLE, S.C. — Jeffrey Brooks, 40, of Clarence Center, New York, was sentenced to more than seven years in federal prison after pleading guilty to one count of conspiracy to commit health care fraud. In addition to Brooks’ criminal conviction, last year, Brooks paid $850,000 in a civil settlement to resolve allegations that he provided kickbacks and caused false claims to be submitted in violation of the federal False Claims Act.
Evidence presented to the court showed that beginning in or around May 2019, Brooks operated at least eight durable medical equipment (DME) companies, which were located in Fort Pierce, Florida. Through these DME companies, Brooks was charged with conspiring to submit or cause to be submitted false and fraudulent claims to Medicare and CHAMPVA for braces that were not medically necessary, eligible for reimbursement, and/or obtained through the payment of kickbacks and bribes. Specifically, evidence presented showed that Brooks and his co-conspirators purchased Medicare beneficiaries’ personally identifying information (“PII”) and purported personal health information (“PHI”) from third party call centers in order to generate doctors’ orders for braces. The doctor’s orders were generated by paying illegal kickbacks and bribes to telemedicine companies to obtain a medical practitioner’s signature on the doctor’s orders, regardless of medical necessity.
During the conspiracy, Brooks also was the beneficial owner of a call center located in Greenville, South Carolina, that purchased personal identifiable information of Medicare patients. Brooks and his co-conspirators, including purported telemedicine companies, then generated signed doctors’ orders, which were used to submit false and fraudulent claims to Medicare and cause false and fraudulent claims to be submitted to CHAMPVA.
The evidence presented to the court showed that the DME companies controlled by Brooks caused Medicare to be billed over $29 million in false and fraudulent claims.
“As we put an end to Brooks’ fraudulent scheme, he faces both accountability and justice,” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “We will continue to seek out those defrauding federal healthcare programs.”
"By facilitating kickbacks, this defendant knowingly enabled theft from Medicare, putting personal profit before legitimate patient care and ultimately costing taxpayers millions of dollars," said Tamala E. Miles, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). "HHS-OIG is committed to working with our law enforcement partners to ensure that those alleged of defrauding federal health care programs are held accountable.”
“The penalties in this case underscore the importance of maintaining the integrity of healthcare systems,” said Steve Jensen, Special Agent in Charge of the FBI Columbia Field Office. “We are committed to safeguarding the interests of healthcare beneficiaries and ensuring accountability for those who exploit healthcare programs.”
“Today, this defendant was held accountable for his role in a long-term fraud scheme in which he enriched himself at the expense our nation’s veterans and that behavior will not be tolerated,” said Special Agent in Charge Kim. R. Lampkins of the Department of Veterans Affairs Office of Inspector General’s Mid-Atlantic Field Office. “We thank the U.S. Attorney’s Office and our law enforcement partners for their efforts in this joint investigation.”
The civil settlement resolves a lawsuit originally brought by Ashley Westover and Jessica Tollison, under the qui tam or whistleblower provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of the civil resolution, Westover and Tollison received approximately $144,500 of the settlement amount.
The criminal resolution of this case was the result of a coordinated effort by the Justice Department’s Criminal Division, Fraud Section and the United States Attorney’s Office for the District of South Carolina, with assistance from the HHS-OIG, Special Agent Ryan Schubert, FBI, and VA-OIG. The civil resolution of this case was the result of efforts by the United States Attorney’s Office for the District of South Carolina, with assistance from the HHS-OIG, FBI, and VA-OIG.
United States District Judge Herlong sentenced Brooks to 90 months of imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. The Court also ordered that Brooks pay $15,221,227.60 in restitution – $15,198,432.00. to Medicare and $22,795.58 to CHAMPVA.
The criminal case was handled by Trial Attorney Catherine Wagner of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Amy Bower for the District of South Carolina. Assistant United States Attorney Beth Warren handled the civil case for the District of South Carolina.
The lawsuit resolved by the civil settlement is captioned United States ex rel. Westover, et al., Civ. No. 6:21-cv-00417-TMC (D.S.C., filed February 9, 2021).
The government’s pursuit of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to HHS at 1-800-HHS-TIPS (800-447-8477).
###
New York Man Pleads Guilty to Human SmugglingRead the Press Release
CONCORD – A Brooklyn, New York man pleaded guilty on January 17, 2024 in federal court in connection with smuggling unauthorized immigrants, U.S. Attorney Jane E. Young announces.
Abraham Hernandez, 27, pleaded guilty to three counts of bringing in and harboring certain aliens. U.S. District Court Judge Samantha Elliott scheduled sentencing for April 19, 2024. Hernandez was indicted on July 5, 2023.
According to the charging documents, on or about June 13, 2023, Abraham was stopped in Pittsburg, New Hampshire while transporting in a Honda SUV nine unauthorized immigrants who were in the United States in violation of law.
The charging statute provides for a sentence of up to five years in prison, up to 3 years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Border Patrol led the investigation. Assistant U.S. Attorney Geoffrey Ward is prosecuting the case.
###
New Orleans Man Sentenced for Conspiring to Steal Mail and Possessing Stolen Mail from Lakeview and Metairie Post OfficesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that DERRICK LEWIS, age 23, of New Orleans, was sentenced on January 16, 2024 by U.S. District Judge Jay C. Zainey, to 9 months in the custody of the Bureau of Prisons, followed by 3 years of supervised release, and a $200 mandatory special assessment fee, after previously pleading guilty to Conspiracy to Steal United States Mail and Possession of Stolen Mail.
According to court records, on January 30, 2022, LEWIS conspired with others to steal mail from both the Lakeview Post Office in New Orleans, La. as well as United States Postal Service (USPS) mailboxes located in Metairie, La. LEWIS acted as the driver and another defendant used a stolen USPS key to steal mail from the two locations. After a police chase, LEWIS and the co-defendant were found in possession of approximately 30 pieces of stolen mail.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service - Office of the Inspector General, and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorney Jon Maestri of the General Crimes Unit is in charge of the prosecution.
Multiple defendants prosecuted on federal firearms, drug chargesRead the Press Release
SAVANNAH, GA: Newly returned indictments in the Southern District of Georgia include felony charges for illegal firearms possession and drug distribution, while additional defendants have been sentenced to federal prison or await further proceedings after pleading guilty to federal gun charges.
The cases are prosecuted as part of Project Safe Neighborhoods in collaboration with federal, state, and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI, to reduce violent crime with measures that include targeting convicted felons who illegally possess guns.
“As a new year begins, we renew our determination to remove guns from the hands of those who are prohibited from possessing them,” said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. “Felons and firearms don’t mix, and it’s vital to public safety that we keep them separated.”
In the past five years, more than 800 defendants have been prosecuted in the Southern District of Georgia for firearms offenses – most often for possessing a firearm after conviction for a previous felony. That charge carries a statutory penalty of up to 15 years in prison, and there is no parole in the federal system.
Those indicted during the December and January terms of the U.S. District Court Grand Jury include:
- Eric Massey, 29, and Unique Haynes, 26, both of Jacksonville, Fla., charged with Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine, Cocaine and Fentanyl. Haynes also is charged with Possession with Intent to Distribute Methamphetamine, Cocaine, and Fentanyl; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of a Firearm by a Convicted Felon. The arrests in the case occurred in Augusta as a result of an investigation by the Drug Enforcement Administration and the Richmond County Sheriff’s Office, with assistance from the Georgia State Patrol.
- Lynwood Forrest Burke, 60, of Dearing, Ga., charged with Possession with Intent to Distribute Methamphetamine, and Possession of a Firearm by a Convicted Felon.
All indicted defendants are considered innocent unless and until proven guilty.
Defendants recently adjudicated on federal firearms charges include:
- William Beau Devore, 21, of Martinez, Ga., was sentenced to 102 months in prison and fined $2,000 after pleading guilty to Possession of a Firearm by a Convicted Felon. Columbia County sheriff’s deputies arrested Devore in January 2022 after a burglary determined that he was illegally in possession of five guns.
- Zion Howard, 23, of Augusta, was sentenced to 80 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County sheriff’s deputies found Howard in possession of a pistol while investigating a reported shooting.
- Isaac Wilford Stewart, 24, of Augusta, was sentenced to 37 months in prison and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Waynesboro police officers found a pistol in Stewart’s wrecked vehicle after he fled from an attempted traffic stop in October 2022.
- Joquan K. Clark, 25, of Waynesboro, Ga., was sentenced to 30 months in prison and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Waynesboro police officers responding to a domestic dispute arrested Clark after finding a pistol in his pocket.
- Marquese Shavel Palmer, 30, of Collins, Ga., was sentenced to 46 months in prison and fined $1,500 after pleading guilty to Possession of Marijuana with Intent to Distribute, and Possession of a Firearm by a Convicted Felon. Palmer was indicted along with 31 other defendants as part of an alleged drug trafficking conspiracy in multiple Georgia counties. Investigators who searched Palmer’s residence found drugs, firearms, ammunition, and Gangster Disciples documents and paraphernalia.
- Jovonn Courtney Stokes, 26, of Springfield, Ga., was sentenced to 85 months in prison and ordered to pay restitution after pleading guilty to three counts of Interference with Commerce by Robbery, and one count of Use of a Firearm in Furtherance of a Crime of Violence. Stokes brandished a handgun while robbing two Chatham County convenience stores and an Effingham County convenience store in November and December 2022.
- Tyrone Dion Lyons Sr., 39, of Augusta, was sentenced to 50 months in prison and fined $1,000 after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County deputies and U.S. Marshals found a pistol in Lyons’ vehicle while serving a warrant for his arrest on Gwinnett County, Ga., charges.
- Tori Davis, 33, of Savannah, was sentenced to 90 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon, and Possession of Oxycodone and Fentanyl with Intent to Distribute. Garden City police found drugs and a loaded handgun in his vehicle during a traffic stop.
- Michael Floyd, 31, of Garden City, Ga., was sentenced to 77 months in prison and fined $5,000 after pleading guilty to Possession of a Firearm by a Convicted Felon. A special-duty Savannah police officer found Floyd carrying a pistol in his waistband while inside Savannah’s Oglethorpe Mall.
- Calvin Polite, 36, of Savannah, was sentenced to 37 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police officers found a pistol in Polite’s possession while investigating a report of shots fired in a Savannah neighborhood.
- David Wayne Cleland, 34, of Ridgeland, S.C., was sentenced to 33 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. Garden City police officers investigating a suspicious vehicle in a motel parking lot found Cleland asleep in the car with a handgun in his lap.
- Robert Sanders, 66, of Hephzibah, Ga., was sentenced to 12 months and one day in prison and fined $1,000 after pleading guilty to Possession of a Firearm by a Convicted Felon. Fort Eisenhower military police questioned Sanders after finding him fishing in an unauthorized area at the installation and discovered a pistol in his vehicle.
- Steve Shontell Heath, 46, of Hephzibah, Ga., was sentenced to 46 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. A Burke County sheriff’s deputy found a pistol in Heath’s vehicle during a traffic stop.
- DeShawn Tisdale, 24, of Savannah, was sentenced to 18 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police officers found a pistol in Tisdale’s vehicle while investigating a trespassing call at a Savannah residence.
- Tommy Cowart, 60, of Statesboro, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Bulloch County deputies arrested Cowart after finding a rifle in his car during a traffic stop.
- Dennis Mitchell, 51, of Brunswick, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Brunswick police officers found Mitchell in possession of a gun during a July 2022 traffic stop in which he was a passenger in the vehicle.
- Jamell Williams, 44, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police officers investigating reports of shots fired near a motel determined Williams was in possession of a rifle.
- Karron L. Shuman, 36, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police found a pistol in Shuman’s vehicle during a November 2022 traffic stop.
- Hunter W. Taylor, 26, of Hephzibah, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County deputies investigating reports of gunfire in May 2022 charged Taylor after determining he possessed a rifle.
- Jacques B. Pope, 32, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police officers investigating gunshots in November 2022 determined Pope had been in possession of a pistol.
- Zachary Smith, 26, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police officers investigating a February 2022 reported robbery took Smith into custody when he was shot after pointing a pistol in the direction of a police officer.
The cases are being prosecuted for the United States by the Southern District of Georgia U.S. Attorney’s Office.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information from the ATF on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atfw-form-4473
03-24
Mother, Son, Sentenced for Selling Fentanyl in St. Louis AreaRead the Press Release
ST. LOUIS – A mother and her son have been sentenced to prison for their involvement in a fentanyl trafficking conspiracy in the St. Louis area.
On Thursday, U.S. District Judge Ronnie L. White sentenced Frederick Mopkins, 32, to 10 years in prison. Mopkins pleaded guilty in October to four felonies: a fentanyl conspiracy charge, possession with intent to distribute fentanyl, being a felon in possession of a firearm and attempting to destroy evidence.
Last week, Judge White sentenced Vera Mopkins, 46, to 33 months in prison. She pleaded guilty to a fentanyl conspiracy charge.
Both admitted involvement in fentanyl trafficking beginning in 2020. The FBI and the St. Louis County Police Department began investigating in February of that year and made a series of fentanyl purchases from Frederick Mopkins and others at an extended stay hotel in Hazelwood. A search of four hotel rooms on Oct. 2, 2020, found meth, pill presses, digital scales and empty pill capsules. Some of the rooms were registered in Vera Mopkins’ name. A search of a St. Louis home associated with Frederick Mopkins that same day caught him with two pistols, fentanyl, $3,000 cash, multiple cell phones that had been used to arrange drug sales and a 60-round drum magazine for a firearm.
At least one of the drug sales was coordinated by Vera Mopkins. Frederick Mopkins coordinated others. Vera Mopkins also helped prepare and package fentanyl at least once. The drug sales continued at locations in St. Louis after the hotel search.
The St. Louis County Police Department, the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Jennifer Szczucinski prosecuted the case.
Moss Point Woman Pleads Guilty to Conspiracy to Possess with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, MS – A Moss Point woman pled guilty to conspiracy to possess with intent to distribute methamphetamine.
Linda Renee Mizell, 41, pled guilty in U.S. District Court in Gulfport.
According to court documents and statements made in court, in early 2023, law enforcement officers received intelligence that Mizell was selling methamphetamine at her residence in Jackson County, Mississippi. A search warrant executed at the residence recovered a digital scale and methamphetamine paraphernalia. Linda Mizell was interviewed and admitted to her involvement in the conspiracy.
Mizell pled guilty to conspiracy to possess with intent to distribute methamphetamine. She is scheduled to be sentenced on April 2, 2024, and faces up to twenty years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi, and 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.
Missoula felon sentenced to prison for illegal possession of firearmsRead the Press Release
MISSOULA — A Missoula man with felony convictions was sentenced today to two years and six months in prison, to be followed by three years of supervised release, for illegally possessing firearms, U.S. Attorney Jesse Laslovich said.
Heath Lynn Schmoeckel, 42, pleaded guilty in September 2023 to two counts of prohibited person in possession of a firearm.
U.S. District Judge Donald W. Molloy presided.
In court documents, the government alleged that in January 2022, law enforcement responded to a single vehicle crash and located Schmoeckel in a ditch near Interstate 90. Officers located a bandana containing a pistol nearby. Schmoeckel told officers he took the pistol from the crash and tried to dispose of it. The government further alleged that in August 2022, Montana probation officers responded to Schmoeckel’s workplace, examined his vehicle and saw an AR-15 rifle on the passenger seat. Schmoeckel had the keys to the vehicle in his possession. In both instances, Schmoeckel was on supervision for prior felony offenses. Schmoeckel was prohibited from possessing firearms because of two state convictions for felony drug crimes.
Assistant U.S. Attorney Brian C. Lowney prosecuted the case. The Montana Highway Patrol, Missoula County Sheriff’s Office, Missoula Police Department and Montana Probation and Parole conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
XXX
Mishawaka Man Sentenced to 78 Months in PrisonRead the Press Release
SOUTH BEND – William McClean, 52 years old, of Mishawaka, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to receipt of child pornography, announced United States Attorney Clifford D. Johnson.
McClean was sentenced to 78 months in prison, 7 years of supervised release, and was ordered to pay restitution in the amount of $3000.
According to documents in the case, in 2022, McClean received a visual depiction of child sexual abuse material.
This case was investigated by the Federal Bureau of Investigation with assistance from the St. Joseph County Cyber Crimes Unit and the Mishawaka Police Department. The case was prosecuted by Assistant United States Attorney John M. Maciejczyk.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Milton Man Sentenced to Five Years in Prison for Possession with Intent to Distribute Cocaine and FentanylRead the Press Release
BOSTON – A Milton man was sentenced yesterday for drug trafficking charges.
Brandy Soto-Lara, 26, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to five years in prison and four years of supervised release. In October 2023, Lara pleaded guilty to one count of possession with intent to distribute cocaine and 40 grams or more of fentanyl.
During a search of Soto-Lara’s apartment in November 2018, over 400 grams of cocaine and over 40 grams of fentanyl was seized. Additionally, $6,000, a loaded firearm with an obliterated serial number, firearm parts and ammunition were also recovered from Soto-Lara’s apartment.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Suffolk County District Attorney’s Office. Assistant U.S. Attorneys Philip C. Cheng and Lucy Sun of the Organized Crime & Gang Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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.
Mexican National Sentenced to 3 Years in Prison for Harmful Marijuana Cultivation Operation in the Shasta-Trinity National ForestRead the Press Release
SACRAMENTO, Calif. — Jaime Alejandro Sanchez Robles, 34, of Mexico, was sentenced today to three years and one month in prison for conspiracy to manufacture 1,708 marijuana plants and depredation of public land in the Jims Creek area of the Shasta-Trinity National Forest, U.S. Attorney Phillip A. Talbert announced.
Sanchez Robles was also ordered to pay $68,812 in restitution to the Forest Service for the damage caused by his marijuana cultivation activities.
According to court documents, on Oct. 20, 2022, law enforcement officers executed a search of a marijuana growing operation in Jims Creek, a remote area of the Shasta-Trinity National Forest located in Trinity County. Sanchez Robles was found at the site, and agents observed that water was actively being diverted from a nearby stream and found the remnants of more than 1,200 pounds of soluble fertilizer, 20 gallons of liquid fertilizer, more than 50 pounds of rodenticide, and at least one dead animal. Law enforcement officers eradicated 1,708 marijuana plants and arrested Sanchez Robles.
This case was the product of an investigation by the U.S. Forest Service with assistance from the California Department of Fish and Wildlife, and the Trinity County Sheriff’s Office. Integral Ecology Research Center, a nonprofit organization dedicated to the research and conservation of wildlife and their ecosystems, analyzed and documented the environmental damage. Assistant U.S. Attorney Alstyn Bennett prosecuted the case.
Mexican National Pleads Guilty to Federal Drug Trafficking ChargeRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Carlos Arturo Quintana pled guilty to conspiracy to distribute 100 kilograms and more of a mixture and substance containing a detectable amount of marijuana, intending and knowing that said controlled substance would be unlawfully imported into the United States. Quintana, 41, of Namiquipa, Chihuahua, Mexico, will remain in custody pending sentencing, which has not been scheduled.
A federal grand jury issued a third superseding indictment against Quintana and 10 co-conspirators on July 23, 2015. According to court records, in March of 2011, a confidential informant (“CI”) and another individual ordered 600 kilograms of marijuana from Elmy Hermosillo Trujillo. Trujillo was known to be the person who arranged all bulk purchases of marijuana for the Juarez Cartel, which is responsible for disseminating multi-ton loads of cocaine, marijuana, and other illicit drugs throughout the United States each year. Juarez Cartel is one of the oldest and most powerful criminal organizations in Mexico. Since its beginnings, the cartel has focused on drug trafficking, but has expanded into other criminal activities such as human trafficking, arms trafficking, kidnapping, extortion, and large-scale commercial gasoline theft from the Mexican government.
On or about March 19, 2011, the CI and the other individual, as well as other coconspirators, met with Quintana in Gomez Farias, Chihuahua, Mexico. Quintana arrived wearing a police uniform, driving a marked police vehicle, and was accompanied by other uniformed officers. Quintana and the other officers delivered the 600 kilograms of marijuana in a dump truck. The CI and the other individual then placed a GPS tracking device with the marijuana.
On or about March 26, 2011, according to data being transmitted from the GPS tracker, the marijuana was located at a drug storage house in Ciudad Juarez, Mexico. Mexican law enforcement authorities searched the house at that location. A shootout occurred at that location which left one subject dead and resulted in the arrest of three co-conspirators and the escape of others. The marijuana, as well as several firearms, radios, and cell phones were seized at that time.
Quintana was identified as the Police Chief of Namiquipa, as well as the Plaza Boss of the Juarez Cartel, and extradited to the United States in August of 2022.
In his plea agreement, Quintana admitted that from Feb. 2011 to March 2011, he was involved in a conspiracy with others to distribute 600 kilograms of marijuana in the Republic of Mexico and knew the marijuana would be unlawfully imported into the United States. At sentencing, Quintana faces not less than five years nor more than 40 years in prison.
Raul Corella-Hernandez, Marco Antonio Guzman-Zuniga, Elmy Hermosillo Trujillo, Jorge Olivas Nevarez, Jorge Adrian Ortega-Gallegos, and Guadalupe A Prieto remain fugitives.
The FBI Albuquerque Field Office investigated this case with assistance from the Drug Enforcement Administration and the Las Cruces-Doña Ana County Metro Narcotics Agency. The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition of Quintana from Mexico. Assistant United States Attorneys Maria Y. Armijo and Randy M. Castellano are prosecuting the case.
View the Third Superseding Indictment View the Plea Agreement# # #
24-23
Mescalero Man Pleads Guilty to AssaultRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced that Garrick Richard Shendo-Herrera pled guilty in federal court to assault with intent to commit another felony. Shendo-Herrera, 36, of Mescalero, and an enrolled member of the Mescalero Apache Tribe, will remain in custody pending sentencing, which has not been scheduled.
In his plea agreement, Shendo-Herrera admitted that on May 16, 2023, he assaulted Jane Doe in a car parked in the driveway of his residence.
At sentencing, Shendo-Herrera faces 10 years in prison, followed by 3 years of supervised release.
The Las Cruces Resident Agency of the Federal Bureau Investigation investigated this case with assistance from the Bureau of Indian Affairs. Assistant U.S. Attorney R. Eliot Neal is prosecuting the case.
View the Information View the Plea Agreement# # #
24-22
Members and Associates of Grape Street Crips Gang Admit Roles in Drug Trafficking OrganizationRead the Press Release
NEWARK, N.J. – A Newark man admitted his role in a conspiracy to distribute and possess with intent to distribute narcotics, including fentanyl, heroin, and cocaine; and possessing with intent to distribute various narcotics, U.S. Attorney Philip R. Sellinger announced today.
Ali Carney, 45, of Newark, pleaded guilty on Jan. 17, 2024, before U.S. District Judge Susan D. Wigenton in Newark federal court to a superseding information charging him with conspiracy to distribute and possess with intent to distribute heroin, fentanyl, and cocaine; and possession with intent to distribute fentanyl.
According to documents filed in this and other cases and statements made in court:
From April 2021 through October 2022, Carney and others – members and associates of the Grape Street Crips gang – participated in a drug trafficking organization that controlled the drug trade in and around the Oscar Miles Village housing complex in Newark. Carney admitted his role in the conspiracy and that he sold controlled substances on a near daily basis during the conspiracy.
The narcotics conspiracy and distribution counts to which Carney pleaded guilty each carry a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing for Carney is scheduled for May 22, 2024.
All 11 of Carney’s co-defendants – Thomas Barney, Najuwan Blake-Williams, Altray Brown, Najee Carney, Tyrone Cradle, Jaquan McAllister, Ikaim McSwain, Latif Terry, Shaquan Ward, Taji Williams, and Zaid Williams – previously pleaded guilty in connection with their respective roles in the conspiracy.
A year-long investigation revealed that the drug trafficking organization distributed over a kilogram of fentanyl-laced heroin and over 280 grams of crack cocaine. Law enforcement also seized multiple firearms, which were used in furtherance of the narcotics trade, from the members of the conspiracy.
U.S. Attorney Sellinger credited special agents of the U.S. Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Cheryl Ortiz; investigators of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; investigators from the U.S. Marshal Service, under the direction of Marshal Juan Mattos Jr.; investigators of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; and the Newark Police Department, under the direction of Director of Public Safety Fritz G. Fragé, with the investigation leading to the guilty pleas.
The investigation was conducted as part of the Newark Violent Crime Initiative (“VCI”). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorneys Samantha C. Fasanello and Olta Bejleri of the Criminal Division in Newark.
carney.sinformation.pdfMankato Felon Charged with Illegal Firearm Possession After Shooting at Police Officers During a Home InvasionRead the Press Release
ST. PAUL, Minn. – A Mankato man has been charged with illegal possession of a firearm after firing at police officers during a violent home invasion, announced U.S. Attorney Andrew M. Luger.
“These charges allege a night of terrifying home invasions and violent assaults,” said U.S. Attorney Andrew Luger. “I commend the law enforcement officers who put their lives on the line to apprehend this defendant.”
According to court documents, on January 14, 2024, a woman called 911 to report that a man had broken into her apartment in south Minneapolis. The woman and her two children fled the apartment after the man, identified as Kamau Evans, 31, shattered a window and entered the woman’s bedroom. Evans then went to a second residence in north Minneapolis and broke into the home by shattering a sliding glass door. Once inside, Evans assaulted two of the residents with a firearm and brandished the firearm at a minor who was hiding inside a closet. Evans then held all three residents in the home against their will.
According to court documents, officers of the Minneapolis Police Department arrived at the residence and were able to pull one of the victims out of the house to safety. Officers entered the home behind a ballistic shield and as they were walking upstairs, Evans appeared in the stairwell and fired a shot at them. Evans then leaped out of a bathroom window and tried to escape through the backyard but was apprehended and arrested. Officers recovered an SCCY model CPX-1 9mm semiautomatic pistol on the side of the garage where Evans was apprehended.
Because Evans has prior felony convictions, he is prohibited under federal law from possessing firearms or ammunition at any time.
The complaint charges Evans with one count of possession of a firearm as a felon. Evans made his initial appearance yesterday in U.S. District Court before Magistrate Judge Elizabeth Cowan Wright.
This case is the result of an investigation conducted by the FBI and the Minneapolis Police Department.
Assistant U.S. Attorneys Thomas Calhoun-Lopez and Kristian Weir are prosecuting the case.
A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Man Sentenced to 20 Years for Distributing Child PornographyRead the Press Release
Acting United States Attorney Susan Lehr announced that Joseph S. Martin, 23, formerly of Hebron, Nebraska, was sentenced on January 18, 2024, in federal court in Omaha, Nebraska, for distribution of child pornography after having previously been convicted of possession child pornography. United States District Judge Brian C. Buescher sentenced Martin to 20 years’ imprisonment. There is no parole in the federal system. After Martin’s release from prison, he will begin a 30-year term of supervised release. Judge Buescher ordered Martin to pay $24,000 in restitution.
On November 9, 2021, Homeland Security Investigations in Omaha received several cyber tips from the Internet Crimes Against Children (ICAC) and Nebraska State Patrol (NSP). One such cyber tip included information forwarded by Facebook to the National Center for Missing and Exploited Children (NCMEC) that related to child exploitation material distributed by a Facebook user on July 12, 2021. Facebook identified the IP address and account that uploaded the suspected child pornography image. Facebook confirmed the Facebook account username belonged to Joseph Martin. Additional investigative work determined the IP address and associated phone number belonged to Martin.
Law enforcement obtained a search warrant for Martin’s Facebook account which contained several images of child pornography. When interviewed, Martin admitted to law enforcement that approximately 500 images of child pornography would be located on various cyber sites associated with him.
Martin was previously convicted on August 23, 2019 and March 19, 2021, of possession of child pornography, both in the Douglas County District Court, Douglas County, Nebraska.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations and the Nebraska State Patrol.
Lynn Man Sentenced for Bank Fraud and Identity TheftRead the Press Release
BOSTON – A Lynn man was sentenced today in connection with a scheme to impersonate bank customers and fraudulently withdraw money from their bank accounts.
Antonio Niati, 33, was sentenced today by U.S. District Court Judge Leo T. Sorokin to time served (one day) and three years of supervised release. Niati was also ordered to pay restitution of approximately $360,000. In May 2019, Niati pleaded guilty to one count of conspiracy to commit bank fraud and one count of aiding and abetting aggravated identity theft.
In 2017, Niati recruited a bank teller working at a Santander Bank branch in Dorchester to assist in conducting fraudulent transactions in victims’ bank accounts. On three occasions in April 2017, another co-conspirator conducted transactions in two Santander Bank customers’ accounts using fraudulent driver’s licenses, all with the assistance of Niati, and the recruited teller. Niati and his co-conspirators fraudulently withdrew over $640,000 from the customers’ accounts.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Leslie Wright, Christopher J. Markham and Neil J. Gallagher of the Criminal Division prosecuted the case.
Leon County Sex Offender Found Guilty of New Child Pornography OffenseRead the Press Release
TALLAHASSEE, FLORIDA – Andrew John Ewing, 39, of Tallahassee, Florida, was found guilty by a federal jury for possessing images and videos of child pornography. The guilty verdict returned on Wednesday afternoon, at the conclusion of a two-day trial, was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
Between October 21, 2022, and November 3, 2022, a Tallahassee Police Department detective on the Internet Crimes Against Children (ICAC) Task Force conducted a proactive investigation into the peer-to-peer file-sharing network called BitTorrent to identify users who possessed child pornography material which was available for sharing. Ewing’s computer was identified as a user who had multiple child pornography image and video files available for download. Upon further investigation, it was determined that Ewing resided in Leon County but outside of the city limits, so the case was referred to the Leon County Sheriff’s Office (LCSO) for further investigation. LCSO deputies—who were also Task Force Officers with Homeland Security Investigations—obtained a search warrant for Ewing’s residence and electronic devices and executed it in early 2023. LCSO’s digital forensic specialist conducted a forensic examination of Ewing’s devices and discovered that several of them contained child pornography depicting children as young as 6 years of age engaged in sexually explicit conduct or who were lewdly exhibiting their genitals. Additionally, investigators discovered evidence of Ewing’s Internet search history which showed that he was specifically seeking child pornography. The jury also heard evidence that in 2014, Ewing was investigated by the Florida Department of Law Enforcement for using BitTorrent to possess and share child pornography depicting children under 13 years of age, and that Ewing was convicted of ten counts of possession of child pornography in Leon County in 2016.
Sentencing is scheduled for April 11, 2024, at 1:00 p.m., at the United States Courthouse in Tallahassee before United States District Judge Robert L. Hinkle. Based on his prior child sex offense conviction, Ewing faces a minimum mandatory sentence of 10 years in federal prison, with a maximum of 20 years imprisonment, followed by a term of 5 years to life of supervised release.
This conviction was the result of an investigation conducted by the Tallahassee Police Department, the Leon County Sheriff’s Office, and Homeland Security Investigations. Assistant United States Attorney Justin M. Keen prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice and led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), it marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Langlade County Sex Offender Sentenced to 15 years in Federal PrisonRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on January 18, 2024, Anthony J. Michalek (age: 38) of Langlade County, Wisconsin, was sentenced to 180 months’ imprisonment for receiving obscene visual depictions of the sexual abuse of children, in violation of Title 18, United States Code, Section 1466A, and for doing so while being required to register as a sex offender.
At Michalek’s sentencing hearing, Senior United States District Judge William C. Griesbach noted the horrific nature of the defendant’s actions and the effect that his actions have on child victims. Senior Judge Griesbach also stressed the danger Michalek presents to the community given his status as a repeat offender, having been convicted in 2007 of sexual assault in Dane County, Wisconsin. Following his release from prison, Michalek will spend 20 years on supervised release and will continue to be required to register as a sex offender under state and federal law.
This case was investigated by the Langlade County Sheriff’s Office and the Green Bay and Wausau Offices of the Federal Bureau of Investigation. 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.
# # #
For Additional Information Contact:
Public Information Officer
414-297-1700
Follow us on Twitter
Kenyan Man Sentenced to Three Years in Federal Prison for Assaulting Federal Immigration OfficersRead the Press Release
OKLAHOMA CITY – Yesterday, ERICK GACHUHI WANJIKU, 42, of Kenya, was sentenced to serve 36 months in federal prison for assaulting federal officers, announced U.S. Attorney Robert J. Troester.
On June 6, 2023, a federal grand jury returned a two-count Indictment against Wanjiku, charging him with two counts of assault on two different federal immigration officers.
In August 2023, Wanjiku was tried by a federal jury and found guilty on both counts. Evidence presented at trial indicated that on May 8, 2023, Wanjiku was moved from an Oklahoma Correctional Facility to the U.S. Immigration and Customs Enforcement (ICE) and Removal Operations facility in Oklahoma City to be processed for immigration proceedings. Prior to being fingerprinted, Wanjiku kicked one deportation officer near his left knee and bit a second deportation officer before he was restrained and placed back in a cell. Court documents describe the bite marks as “clearly visible and bloody.”
“Federal officers have the right to work without fear of assault or intimidation,” said United States Attorney Robert J. Troester. “We stand firmly behind our law enforcement partners and will hold accountable those who harm federal officers in the performance of their duty.”
“Law enforcement officers put their lives on the line daily.” said Special Agent in Charge Lester R. Hayes Jr., Homeland Security Investigations (HSI) Dallas. “This sentence reaffirms HSI’s role in prosecuting those who commit crimes against the men and women who dedicate themselves to enforcing the law.”
At the sentencing hearing yesterday, U.S. District Judge David L. Russell sentenced Wanjiku to serve 36 months in federal prison, followed by three years of supervised release. In announcing the sentence, Judge Russell noted Wanjiku’s history of violence and his lack of acceptance of responsibility in the case, as well as the need to protect the public and to impose just punishment for his conduct. Upon his release from prison, Wanjiku will be placed in ICE custody while he undergoes immigration proceedings.
This case is the result of an investigation by Homeland Security Investigations. Assistant U.S. Attorney Elizabeth Joynes and Special Assistant U.S. Attorney Kaleigh Blackwell prosecuted the case.
Reference is made to public filings for additional information.
Justice Department Releases Report on its Critical Incident Review of the Response to the Mass Shooting at Robb Elementary School in Uvalde, TexasRead the Press Release
The Justice Department announced today the release of a report on its critical incident review of the law enforcement response to the tragic school shooting at Robb Elementary School. Attorney General Merrick B. Garland announced the review shortly after the tragedy on May 24, 2022, in which 19 children and two teachers died at Robb Elementary School in Uvalde, Texas. The report provides a thorough description of the critical incident review that has taken place over the past 20 months.
The report is intended to provide the most comprehensive assessment available of the law enforcement response to the horrific incident on May 24, 2022, as well as the emergency medical response, communications, and trauma services in the wake of the tragedy. It begins with a minute-by-minute timeline reconstructing key events before, during, and immediately following the shooting. The report addresses many previously unanswered questions, builds on the existing knowledge base for responding to incidents of mass violence, and identifies generally accepted practices for effective law enforcement responses. In doing so, this report endeavors to honor the victims and survivors of this tragedy, as well as offer recommendations to improve future responses in other communities.
“The victims and survivors of the mass shooting at Robb Elementary School deserved better,” said Attorney General Garland. “The law enforcement response at Robb Elementary on May 24th, 2022 — and the response by officials in the hours and days after — was a failure. As a consequence of failed leadership, training, and policies, 33 students and three of their teachers — many of whom had been shot — were trapped in a room with an active shooter for over an hour as law enforcement officials remained outside. We hope to honor the victims and survivors by working together to try to prevent anything like this from happening again, here or anywhere.”
“Uvalde is a community that is healing, and getting clear on the facts is part of healing,” said Associate Attorney General Vanita Gupta. “As I made clear last April when I came to Uvalde to meet with families and reiterated to them last night, we promised that our report would honor the victims and survivors; provide a detailed, independent, and authoritative accounting of the events; and would not only look backward but would also identify lessons learned and recommendations for other communities to prevent something like this from happening again.”
“The observations and recommendations in this report are based on national standards, generally accepted standards and practices, current research, and the expectations of communities,” said Director Hugh T. Clements, Jr. of the Office of Community Oriented Policing Services (COPS Office). “Reports like this are critical to law enforcement and, by extension, to the community. As agencies constantly strive to do better and be more fully prepared, detailed observations and recommendations like those within this report are invaluable to agencies planning for the future.”
The report examines the multiple failures in the response to the tragedy, including the breakdowns in leadership, decision-making, tactics, policy, and training that contributed to those failures. It describes the responding officers’ most significant failure as not treating the incident throughout as an active shooter situation and using the available and sufficient resources and equipment to push forward immediately and continuously to eliminate the threat. Although several of the first officers on the scene initially acted consistent with generally accepted practices to try to engage the subject, once they retreated after being met with gunfire, the law enforcement responders began treating the incident as a barricaded subject scenario rather than as an active shooter situation. In all, there was a 77-minute gap between when officers first arrived on the scene and when they finally confronted and killed the subject.
The report also examines the communications challenges during and after the shooting, including the inaccurate narrative that was initially delivered. It also documents the trauma and support services that were provided, as well as those that were not provided, to victims, survivors, family members, and responders.
The critical incident review was led by the COPS Office, with the support of leading subject matter experts with a wide variety of relevant experience. The team established the following areas of focus: (1) incident timeline reconstruction; (2) tactics and equipment; (3) leadership, incident command, and coordination; (4) post-incident response and investigation; (5) public communications during and following the crisis; (6) trauma and support services; (7) school safety and security; and (8) pre-incident planning and preparation.
The team collected and reviewed more than 14,000 pieces of data and documentation, including policies, training logs, body camera and CCTV video footage, audio recordings, photographs, personnel records, manuals and standard operating procedures, interview transcripts, investigative files and data, and other documents. The team also spent 54 days onsite in Uvalde and conducted over 260 interviews of individuals who either played a role or had important information related to areas of the review. Those interviews included personnel from the law enforcement agencies involved in the response to the mass shooting; other first responders and medical personnel; victims’ family members; victim services providers; communications professionals and public information officers; school personnel; elected and appointed government officials; survivors and other witnesses; and hospital staff.
The report, in both English and Spanish, as well as profiles of the victims and additional resources, is available on the COPS Office website at cops.usdoj.gov/uvalde.
The team took great care to be intentional about the words used in the report to convey the facts, observations, and recommendations. Nevertheless, the descriptions may be activating for some readers due to the explanations of this mass casualty incident, including the age of the victims. For resources, including free and confidential emotional support, please visit www.988lifeline.org or call or text 988 to reach the Suicide & Crisis Lifeline, available 24 hours a day, seven days a week, 365 days a year.
Justice Department Joins Lawsuit Challenging National Collegiate Athletics Association’s (NCAA) Transfer Eligibility RuleRead the Press Release
Today, the Justice Department joined 10 states and the District of Columbia in a civil antitrust lawsuit challenging the National Collegiate Athletics Association’s (NCAA) Transfer Eligibility Rule. The amended complaint alleges that the NCAA unreasonably restricts college athletes’ freedom to transfer between academic institutions by limiting their eligibility to participate in intercollegiate contests if they transfer more than once during their college careers. By deterring transfers, the rule also denies athletes educational opportunities.
Last month, the states of Ohio, Colorado, Illinois, New York, North Carolina, Tennessee and West Virginia filed this lawsuit in the Northern District of West Virginia. Shortly after filing, the court granted the states’ request for a temporary restraining order, finding the NCAA’s Transfer Eligibility Rule likely violates Section 1 of the Sherman Act. Today, plaintiffs filed an amended complaint adding the United States, the states of Minnesota, Mississippi and Virginia and the District of Columbia as co-plaintiffs.
“We are proud to stand with our state law enforcement partners on behalf of college athletes across the nation,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “NCAA Division I institutions compete with each other not just on the playing field or in the arena, but to recruit and retain college athletes. College athletes should be able to freely choose the institutions that best meet their academic, personal and professional development needs without anticompetitive restrictions that limit their mobility by sacrificing a year of athletic competition.”
The amended complaint alleges that the NCAA’s one-time-transfer rule unreasonably restrains competition in the markets for athletic services in men’s and women’s Division I basketball and Football Bowl Subdivision (FBS) football, as well as for athletic services in all other men’s and women’s Division I sports. The rule forces college athletes who transfer more than once to sit on the sidelines for an entire season before they are eligible to compete in NCAA athletic competitions at their new school. The amended complaint further alleges that the restriction limits college athletes’ bargaining power and harms both their educational and athletic experiences.
amended_complaint-filed.pdfJustice Department Announces Successful Policies Overhaul at Michigan Department of Corrections to Expand Opportunities for Religious ExerciseRead the Press Release
The Justice Department announced today that the Michigan Department of Corrections (MDOC) has successfully implemented reforms required by a 2021 settlement agreement that resolved alleged violations of the Religious Land Use and Institutionalized Persons Act (RLUIPA). The settlement agreement addressed MDOC’s now revised policies that required a five-person minimum for group worship and religious activities, prohibited group religious practice for certain religious groups, including Hindu, Yoruba, Hebrew Israelite and Thelema practitioners, and limited access to the kosher-for-Passover diet to those on the kosher diet year-round.
MDOC changed each of these policies to expand access to religious practice in compliance with the settlement. Under the revised policies, MDOC allows group religious practice for groups of two or more, permits previously banned religious groups to hold group services and allows people to participate in the Passover diet even if they do not participate in the kosher diet year-round. Department monitoring revealed that a significant number of people whose religious exercise was previously limited by policy can now worship together and can celebrate Passover consistent with their beliefs.
“All people have the right to religious freedom and the right to be free from religious discrimination in our country, and that right exists across the country, including inside our jails and prisons,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our settlement with MDOC stands as a model, helping to increase access by incarcerated people to meaningful religious activities across the system.”
“U.S. citizens do not surrender their right to religious freedom upon incarceration, and my office will not stop defending an individual’s right to exercise one’s faith simply because they are serving a sentence,” stated U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “We are extremely pleased to see that MDOC has made significant and systemic changes to ensure that inmates in our state can practice their religion while in custody.”
“Our office is committed to enforcing federal civil rights laws, which protect the fundamental right of our citizens to freely exercise religion,” said First Assistant U.S. Attorney Jennifer McManus for the Western District of Michigan. “The settlement we reached with MDOC in 2021 protects that right and has resulted in meaningful change that allows institutionalized persons in Michigan to practice their religion and participate in religious services free from unlawful burdens.”
This joint investigation by the Civil Rights Division’s Special Litigation Section and the U.S. Attorneys’ Offices for the Eastern and Western Districts of Michigan began in 2019. The settlement agreement was signed in 2021. Since that time, the Justice Department closely monitored implementation, reviewing documents and conducting site visits. MDOC maintained substantial compliance with the settlement agreement for two years and, as a result, the department has concluded its monitoring activities.
For additional information about the Civil Rights Division and the Special Litigation Section, please visit www.justice.gov/crt/special-litigation-section. Those interested in finding out more about RLUIPA may visit www.justice.gov/crt/religious-land-use-and-institutionalized-persons-act-0.
Jacksonville Man Sentenced to More Than Five Years in Federal Prison for Selling FentanylRead the Press Release
Jacksonville, Florida – Chief U.S. District Judge Timothy J. Corrigan today sentenced Elliott Dubenion (40, Jacksonville) to 5 years and 10 months in federal prison for distributing 40 grams or more of fentanyl. Dubenion had pleaded guilty on September 27, 2023.
According to court documents, agents with the Drug Enforcement Administration and the Clay County Sheriff’s Office identified Dubenion as a mid-level supplier of fentanyl to other dealers in Duval and Clay counties. Agents conducted two controlled purchases of fentanyl directly from Dubenion in Jacksonville on January 27 and February 7, 2023. According to lab reports, Dubenion sold approximately 84 grams of fentanyl.
This case was investigated by the Drug Enforcement Administration and the Clay County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Aakash Singh.
Jacksonville Man Pleads Guilty to Smuggling and Straw-Purchasing FirearmsRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Gabriel Daniel Pinnace (31, Jacksonville) has pleaded guilty to smuggling firearms from the United States and making materially false statements during the purchase of a firearm. Pinnace faces a maximum penalty of 10 years in federal prison for each offense. A sentencing date has not been set.
According to the plea agreement, on May 15, 2021, Pinnace and an individual in a related case, Antonio Reyes, attempted to smuggle three firearms and 57 rounds of ammunition from Jacksonville to Venezuela. Prior to that date, Reyes enlisted Pinnace to purchase the firearms from federally licensed firearms dealers with knowledge that the firearms would be sent to Venezuela. Pinnace purchased the firearms after falsifying ATF Forms 4473, which are required for all firearms purchases. After purchasing the firearms, Pinnace scratched the serial numbers off two of the firearms and provided them to Reyes, who then concealed the firearms and ammunition in a futon that he attempted to mail using a freight forwarding service. Employees from the freight forwarder observed the firearms during a routine x-ray of the parcel and contacted law enforcement. On May 22, 2021, agents from Homeland Security Investigations (HSI) seized the three firearms, which included a Glock 17 pistol and two Smith and Wesson M&P 15 rifles. Forensic technicians at the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) restored the obliterated serial numbers, which allowed ATF agents to trace the firearms back to Pinnace. On May 24, 2021, Pinnace reported the firearms as stolen. Following Reyes’s arrest on unrelated state charges on August 11, 2023, federal agents from ATF, HSI, and U.S. Customs and Border Protection (CBP) searched Reyes’s cellphone and found conversations between Reyes and Pinnace discussing trafficking firearms to Venezuela.
On August 26, 2023, ATF, HSI, and CBP agents conducted an operation to purchase firearms directly from Pinnace. That morning, Pinnace met with an undercover agent and agreed to sell the agent three firearms. That afternoon, agents surveilled Pinnace as he travelled to a gun store in Jacksonville, where he falsified another ATF Form 4473 and purchased two firearms. After leaving the store with what appeared to be a gun box, Pinnace travelled to meet with the undercover agent. At that meeting, Pinnace sold the undercover the three firearms and instructed the undercover to scratch off the serial numbers.
Reyes previously pleaded guilty to smuggling firearms from the United States and conspiring to use a facility of interstate commerce to commit a murder-for-hire on January 3, 2024. His sentencing hearing is set for April 23, 2024.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations (HSI), and U.S. Customs and Border Protection. It is being prosecuted by Assistant United States Attorney Aakash Singh.
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.
Iowa Man Sentenced to 94 Months in Prison for Armed Robbery of New Jersey BankRead the Press Release
NEWARK, N.J. – An Iowa man was sentenced today to 94 months in prison for robbing a bank in Secaucus, New Jersey, in January 2017, U.S. Attorney Philip R. Sellinger announced.
Jose Luis Martinez, 33, previously pleaded guilty before U.S. District Judge John M. Vazquez to a two-count indictment charging him with armed bank robbery and brandishing a firearm during a bank robbery. U.S. District Judge William J. Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Jan. 5, 2017, Martinez walked into a bank in Secaucus and pointed a handgun at a bank employee while demanding cash. Martinez told the bank employee that he would shoot her and other customers if the employee did not comply. Martinez took cash from the bank and fled.
In addition to the prison term, Judge Martini sentenced Martinez to three years of supervised release and ordered restitution of $31,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, Newark, with the investigation leading to the sentencing. He also thanked the FBI’s White Plains, New York Office; the New York City Police Department; the Greenwich, Connecticut, Police Department; and the Port Chester, New York, Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Garrett Schuman of the Criminal Division in Newark.
Ionia Man Sentenced to 25 Years for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – An Ionia, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine in Pettis County, Mo.
Thomas W. Pitts, 36, was sentenced by U.S. District Judge Stephen R. Bough to 25 years in federal prison without parole. Pitts was sentenced as a career criminal due to his prior felony convictions for controlled substance offenses.
On March 29, 2023, Pitts was found guilty at trial of one count of conspiracy to distribute methamphetamine and two counts of distributing methamphetamine.
Evidence introduced during the trial indicated that Pitts participated in the drug-trafficking conspiracy from Feb. 18 to Nov. 16, 2021.
On Oct. 6, 2021, a confidential informant purchased approximately 28.8 grams of methamphetamine from Pitts for $700. An undercover federal agent was also present at Pitts’s residence during the transaction. On Oct. 28, 2021, the confidential informant and the undercover federal agent went to Pitts’s residence again. The confidential informant purchased approximately 57.6 grams of methamphetamine from Pitts for $900. Both of the transactions were recorded.
On Nov. 16, 2021, law enforcement officers executed a search warrant at Pitts’s residence and seized ammunition, a small amount of methamphetamine, and items associated with drug distribution.
Court documents indicate that Pitts routinely carried a firearm, and one was found in the possession of a third party during the search of Pitts’s residence on Nov. 16, 2021. When interviewed, the third party eventually reported that Pitts handed him/her the firearm shortly before he was arrested.
Pitts has approximately 15 prior felony convictions for offenses including possession of a controlled substance, unlawful use of a weapon, resisting arrest, possession with the intent to deliver a controlled substance, delivery of a controlled substance, and driving while revoked or suspended.
This case was prosecuted by Assistant U.S. Attorneys Byron H. Black and Gregg R. Coonrod. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Clair County, Mo., Sheriff’s Office, the Henry County, Mo., Sheriff’s Department, and the Mid-Missouri Drug Task Force.
Independence Man Sentenced to 19 Years for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – An Independence, Mo., man and a Kansas City, Mo., man were sentenced in federal court today for their roles role in a conspiracy to distribute methamphetamine.
Eric M. Stilley, 42, of Independence, was sentenced by U.S. District Judge Brian C. Wimes to 19 years and two months in federal prison without parole. Co-defendant Devin E. Lawson, also known as “Hambone,” 30, of Kansas City, Mo., was sentenced to nine years and seven months in federal prison without parole.
On Sept 7, 2023, Stilley pleaded guilty to one count of conspiracy to distribute methamphetamine and two counts of possessing methamphetamine with the intent to distribute. On Sept. 14, 2023, Lawson pleaded guilty to one count of conspiracy to distribute methamphetamine.
Stilley and Lawson each admitted that he participated in the conspiracy to distribute methamphetamine in Jackson County, Mo., from Aug. 15, 2021, to Aug. 2, 2022.
Stilley was present at a co-defendant’s residence when law enforcement officers executed a search warrant on June 29, 2022. Stilley had approximately two ounces of methamphetamine at the time. Stilley was driving a motorized scooter with no license plate when he was stopped by Independence police officers on Aug. 2, 2022. Stilley, who was arrested on outstanding warrants, was in possession of approximately 77 grams of methamphetamine and approximately 6.6 grams of fentanyl.
Independence police officers executed a search warrant at Lawson’s residence on Feb. 10, 2022. Officers seized approximately 20 grams of methamphetamine, drug paraphernalia, a stolen firearm, firearm accessories, and ammunition.
According to court documents, Stilley was responsible for distributing more than 90 kilograms of methamphetamine.
Stilley and Lawson are the first defendants to be sentenced in this case. Three co-defendants have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Brandon Gibson. It was investigated by the Independence, Mo., Police Department.
Imprisoned Sex Offender Sentenced to 19 Years and 7 Months for Distributing Child Pornography from Behind BarsRead the Press Release
WASHINGTON – Quincy J. LaBauve, 37, an inmate serving 40 years in the Mississippi Department of Corrections for child sex crimes, was sentenced today to an additional 235 months in federal prison for using a contraband cell phone to send and to seek out images of child sexual abuse material from behind bars.
The sentencing was announced by U.S. Attorney Matthew Graves and FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division.
On September 5, 2023, while serving a Mississippi state sentence related to the sexual abuse and exploitation of a child, LaBuave, formerly of Biloxi, entered a guilty plea in U.S. District Court in the District of Columbia. to one count of distribution of child pornography.
In addition to the prison term, U.S. District Court Judge Colleen Kollar-Kotelly ordered LaBauve to serve a lifetime term of supervised release. The federal prison sentence will run concurrently with his state prison sentence.
The federal charges stemmed from a roughly week-long online chat in early February 2020, during which LaBauve asked a Washington, D.C.-based undercover law enforcement officer to help him find someone who would be willing to share child pornography with him.
During the chat exchange, LaBauve sent approximately 10 images to the undercover officer depicting the sexual exploitation of children. In addition, he encouraged the undercover officer to rape his own daughter, described specific sexual acts that he wanted to see inflicted on the child, and set up a specific time where he was supposed watch the live-streamed rape of that child.
On February 18, 2020, Department of Corrections officers in Mississippi conducted a search of LaBauve’s cell and recovered two phones. The forensic analysis of one of those phones revealed the chats exchanged between LaBauve and the undercover officer, as well as at least 78 additional images depicting the sexual abuse of very young of children. These images included multiple still images and at least one video.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, detectives from the Metropolitan Police Department, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
The case was prosecuted by Assistant U.S. Attorneys Jocelyn Bond and Amy Larson, of the U.S. Attorney’s Office for the District of Columbia, and former Special Assistant U.S. Attorney Elizabeth Hutson.
##
Illegally Armed, Nine-Time Felon Sentenced to Nine Years in Federal PrisonRead the Press Release
INDIANAPOLIS- Zachary Hutchinson, 39, of Indianapolis, has been sentenced to nine years in federal prison after pleading guilty to illegally possessing a firearm as a previously convicted felon.
According to court documents, on September 22, 2020, parole agents with the Indiana Department of Corrections and officers from the Indianapolis Metropolitan Police Department conducted an unannounced home visit at Hutchinson’s residence. At the time of the visit, Hutchinson was on active parole for a felony battery conviction in 2010.
When agents identified themselves and knocked, Hutchinson opened the front door. Almost immediately, agents saw a handgun lying in plain view on top of the couch located directly behind Hutchinson in arm’s reach.
Recognizing the danger, agents instructed Hutchinson to place his hands behind his back. Rather than comply, Hutchinson took several quick steps backward toward the sofa, began reaching toward the handgun and stated, “Kill me now.”
Agents safely detained Hutchinson. During a search of Hutchinson’s person, they located a cigarette box in his front left pants pocket that contained approximately two grams of methamphetamine. In Hutchinson’s bedroom, investigators also located a 12-gague shotgun in a case.
At the time of his arrest, Hutchinson had nine felony convictions in the state of Indiana, including for strangulation, battery, residential entry, robbery, and resisting law enforcement.
“This defendant’s many felony convictions and years served in jail have not deterred him from continuing to illegally arm himself,” said Zachary A. Myers U.S. Attorney for the Southern District of Indiana. “Illegally armed felons are a preventable source of the gun violence that threatens our neighborhoods and takes far too many lives. A successful return to the community from prison requires compliance with the law, including never again possessing a gun. I commend the ATF, IMPD, and the Indiana Department of Corrections for keeping the community safe by ensuring parolees comply with the law.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and IMPD investigated this case. The sentence was imposed by U.S. District Court Judge Jane Magnus-Stinson. Judge Stinson also ordered that Hutchinson be supervised by the U.S. Probation Office for 3 years following his release from federal prison and be subject to a $900 fine.
U.S. Attorney Myers thanked Assistant United States Attorney Kyle M. Sawa, who prosecuted this case.
###
Hungarian Woman Sentenced for Fraud and Money Laundering for Selling Counterfeit ArtRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Zsanett Nagy, age 32, was given a sentence of time served, followed by two years of supervised release, for the offense of conspiracy to commit wire fraud, mail fraud, and money laundering.
According to United States Attorney Gerard M. Karam, Nagy was previously indicted, along with her then-husband Earl Marshawn Washington, for selling counterfeit artistic goods known as “woodblocks” or “woodcuts” to various buyers and then laundering the proceeds from the sale of those goods between 2018 and 2021. Washington and Nagy both pleaded guilty last year.
According to the indictment, xylography is the art of making “woodcuts,” or engravings made from wooden blocks, especially for printing using historical techniques. In traditional xylography, an artist uses a sharpened tool to carve a design into the surface of a woodblock. The raised areas that remain after the block has been cut are inked and printed, while the recessed areas that are cut away do not retain ink and will remain blank in the final print. Woodblock images can be printed onto paper, fabrics, textiles, or other materials. The technique has been used in different geographic regions at different times. One woodblock tradition stems from Germany starting around the 14th century and continuing for several hundred years thereafter.
Washington and Nagy sold inauthentic woodblocks and prints made from woodblocks that they as advertised as being from between the 15th and early 20th centuries. The buyers included a pair of woodblock collectors residing in France, as well as a buyer of a woodblock print who then resided in Hummelstown, Pennsylvania, in the Middle District of Pennsylvania. The buyers of the woodblocks in France made PayPal payments to Nagy before learning that the woodblocks they purchased were not from the 15th and 16th centuries, as advertised. Nagy received these payments, moved the proceeds to a bank account in her name, and then quickly converted the proceeds to cash through withdrawals of several thousand dollars or more.
Nagy was ordered to pay restitution to these victims in the amount of $107,159.25. She also faces potential deportation for her conviction.
Washington is scheduled to be sentenced in March 2024.
This case was prosecuted by Assistant U.S. Attorney Ravi Romel Sharma and the Federal Bureau of Investigation’s Art Crime Team.
# # #
Hart County Man Sentenced to over 4 Years in Federal Prison for Being a Felon in Possession of a FirearmRead the Press Release
Bowling Green, KY – A Hart County, Kentucky, man was sentenced yesterday to 4 years and 9 months in federal prison for illegally possessing a firearm after having previously been convicted of a felony offense.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division made the announcement.
According to court documents, Lawrence T. Carter, Jr., 50, of Munfordville, Kentucky, was sentenced to 4 years and 9 months in prison, followed by 3 years of supervised release, for illegally possessing a Sig Sauer P365 9mm handgun, and ammunition, on August 16, 2022. Carter was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses.
On March 2, 2005, in the United States District Court for the Western District of Kentucky, Carter was convicted of attempt to manufacture methamphetamine, felon in possession of a firearm, and possession of an unregistered shotgun less than 26 inches in length.
There is no parole in the federal system.
This case was investigated by the ATF with assistance from the Cave City Police Department.
Assistant U.S. Attorneys Mark J. Yurchisin II and R. Nicholas Rabold, of the U.S. Attorney’s Bowling Green Branch Office, prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent
violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
###
Hampton Landlord Charged with Fraud, Threats, and Civil Rights ViolationsRead the Press Release
NEWPORT NEWS, Va. – A federal grand jury returned an indictment yesterday against a Hampton-based landlord for using force and threats of force against African American victims, including a businessman, a city official in Newport News, and four tenants. The indictment further charged the landlord with defrauding tenants and the government to obtain rent relief benefits, housing assistance payments for public housing, and other funds to which he was not entitled.
According to the indictment, David L. Merryman, 58, owns more than 60 rental properties in Hampton and Newport News. As alleged, Merryman repeatedly harassed his tenants with racist slurs, threats to kill or injure, and retaliatory eviction actions. The alleged threats and racial harassment were often highly graphic and included references to slavery and mocking comments about the Black Lives Matter movement. In addition, Merryman allegedly engaged in physical assaults and other threatening behavior towards tenants, including on one occasion striking a tenant in the face with a shovel and on another occasion attacking a tenant with the blade of a chainsaw while it was off.
According to the indictment, Merryman also orchestrated a scheme to defraud the government and his tenants. For example, the indictment alleges that, to obtain housing-assistance payments from the Department of Housing and Urban Development (HUD), Merryman repeatedly made false representations about the condition of his rental properties and whether he was receiving other payments that would be duplicative of federally funded rental assistance. Merryman also submitted fraudulent applications for rent-relief benefits made available during the COVID-19 pandemic by allegedly stealing the identities of his tenants and forging their signatures without their consent. In many cases, Merryman obtained significant sums of rent relief without telling the tenants, all the while evicting, or seeking to evict, the tenants for unpaid rent.
As alleged, Merryman also defrauded tenants by obtaining money and property from them under false pretenses—primarily false representations that he would repair his properties or repay tenants for repairs they made, which served to induce tenants to pay him significant upfront fees for neglected, even uninhabitable, properties that Merryman never intended to improve. The indictment further alleges that Merryman’s conduct was part of a pattern in which he would demand significant initial fees or deposits from prospective renters and then subject those same tenants to racist and discriminatory practices, in part so they would leave the property, which would allow Merryman to start the cycle again with new tenants.
Merryman is charged with ten counts of wire fraud, four counts of interfering with housing rights, two counts of interstate communications with threats to injure, six counts of theft of government money, four counts of making false statements to HUD, and four counts of aggravated identity theft. If convicted, Merryman faces a mandatory minimum sentence of two years in prison for each count of aggravated identity theft, and maximum terms ranging between one year and twenty years in prison on each of the remaining counts. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Rae Oliver Davis, Inspector General of the Department of Housing and Urban Development, made the announcement.
Assistant U.S. Attorneys D. Mack Coleman, Julie D. Podlesni, and Brian J. Samuels are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:24-cr-4.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
david_merryman_indictment.pdfGeorgia Owner of Long-Term Care Facilities Sentenced to Two Years in Prison for Attempting to Obstruct IRSRead the Press Release
A Georgia man was sentenced today to two years in prison for obstructing the IRS in its efforts to collect employment taxes.
According to court documents and statements made in court, from at least 2003, Douglas K. Mittleider, of Adairsville, operated long-term care facilities throughout the United States and was responsible for paying the IRS the federal income and Social Security and Medicare taxes withheld from employees’ wages. In June 2004, the IRS assessed against him personally the employment taxes Mittleider had not paid—also known as the Trust Fund Recovery Penalty. Beginning in at least November 2011, Mittleider took multiple steps to conceal business funds and impede the IRS’s ability to collect his outstanding tax liability. Among other things, Mittleider directed the commingling of funds among businesses he controlled and used funds for purposes other than to pay the IRS. Mittleider also caused the creation of new operating companies and bank accounts to make it more difficult for the IRS to locate assets and levy accounts. In total, Mittleider’s conduct caused a tax loss to the IRS of more than $17 million.
In addition to the term of imprisonment, U.S. District Judge Thomas W. Thrash Jr. for the Northern District of Georgia ordered Mittleider to serve one year of supervised release and to pay $17,080,566 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation investigated the case.
Senior Litigation Counsel Sean Beaty and Trial Attorneys Ashley Stein and Andres Chinchilla of the Justice Department’s Tax Division prosecuted the case.
Gainesville fentanyl dealer sentenced to nearly 20 years in federal prisonRead the Press Release
GAINESVILLE, Ga. – Lyedrekus Bailey, a multi-convicted felon who trafficked cocaine, methamphetamine, heroin, and fentanyl in the Gainesville, Georgia area for approximately two decades, has been sentenced to federal prison for nearly 20 years.
“Drug dealers like Bailey act in callous disregard of the grave threat to life that results from their actions,” said U.S. Attorney Ryan K. Buchanan. “Fentanyl and heroin trafficking is causing untimely deaths in and devastation to our communities. Bailey’s significant sentence should serve as a warning to others that our office is determined to expand our efforts, working together with federal, state, and local law enforcement partners, to prosecute purveyors of illicit drugs like Bailey.”
“This case serves as a strong reminder of our commitment to working with local, state, and federal partners to remove deadly poisons, like fentanyl, off our streets,” said Chris Hosey, Director, Georgia Bureau of Investigation. “The GBI will continue our work to make an impact on the current drug distribution crimes in Hall County and all of Georgia to promote a safer place for productive citizens.”
“Those who distribute fentanyl and other deadly drugs create serious risks to our communities. DEA will use any resource necessary to remove these dangerous drug traffickers from our streets,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division.
“Often, people view drug crimes as victimless; however, this is never the case, as illegal drugs, such as heroin and fentanyl, destroy our youth and disrupt lives,” said Hall County Sheriff Gerald Couch. “While our agency has made numerous state felony drug cases against the offender; he always seemed to receive probation, time served or a minimal sentence. It has taken a partnership with federal authorities for this criminal to finally face a true sentence where he will be removed from the community he has preyed upon and profited from for years.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Lyedrekus Bailey sold fentanyl-laced heroin to an undercover GBI agent on five occasions between October 2020 and February 2021. All of the transactions were audio and video recorded. On one occasion, when he could not deliver the drugs himself, Bailey directed the undercover agent to a house in Gainesville that he operated as a distribution hub. Later, during a March 2021 traffic stop of a car Bailey was driving, a Hall County, Georgia deputy sheriff recovered approximately four ounces of heroin Bailey had hidden in clothing worn by his passenger.
Bailey was convicted of multiple drug trafficking crimes dating back to 2005. While on probation and parole for these offenses, he continued to commit crimes, such as drug trafficking, evidence tampering, and obstruction of law enforcement.
On January 12, 2024, Lyedrekus Onetaye Bailey, also known as “Lala,” was sentenced by U.S. District Judge Steve C. Jones to 19 years, seven months in prison to be followed by seven years of supervised release. Bailey was convicted of conspiring to distribute controlled substances, namely fentanyl and heroin, after he pleaded guilty on October 6, 2023.
The case was investigated by the Georgia Bureau of Investigation Appalachian Regional Drug Enforcement Office, Atlanta-Carolinas High Intensity Drug Trafficking Areas Program, and the Hall County Sheriff’s Office, with valuable assistance from the Drug Enforcement Administration, Federal Bureau of Investigation, Gainesville Police Department, and Georgia Department of Corrections.
Assistant U.S. Attorneys Theodore S. Hertzberg and Noah R. Schechtman prosecuted 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.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fort Atkinson Home Improvement Contractor and His Wife Sentenced to Prison for Fraud and Money LaunderingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Tyler Hansen, 52, Fort Atkinson, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 7 years in federal prison for wire fraud and money laundering. His wife, Jennifer Hansen, 43, was sentenced by Judge Conley to 33 months in prison for money laundering. The Hansens pleaded guilty to these charges on October 4, 2023.
Between October 2020 and September 2022, Tyler Hansen operated a home improvement business based in Dane County and Jefferson County. The business operated under multiple names, including Weathersealed Wisconsin and EcoView Windows of South-Central Wisconsin. Hansen entered into contracts for home improvement projects with customers throughout Wisconsin, knowing that he did not intend to order supplies for the jobs or otherwise start the projects. The contracts were for various home improvement projects, including windows, sunrooms, bathrooms, roofs, and doors. When contracts for projects were signed, Hansen required that customers pay 50% of the total contract price as a down payment. Rather than use the money from customer down payments to pay project related expenses, Hansen used the money for personal expenses. In total, the Hansens stole over $800,000 from over 100 victims across Wisconsin during the fraud scheme.
Hansen, together with his wife, also engaged in money laundering. The Hansens used multiple financial transactions to conceal and disguise the true nature of the funds in their bank accounts and to make it more difficult for clients to receive refunds of their down payments. They deposited down payment checks from customers into multiple business bank accounts then transferred the funds to multiple personal accounts.
At the sentencing hearing, Judge Conley called the Hansens’ actions “horrific” because they targeted elderly and vulnerable people and resulted in substantial financial losses. Judge Conley also explained that while both the Hansens lied to victims, Tyler Hansen deserved a longer sentence because he was the driving force behind the scheme and had a prior criminal history.
In order to determine the appropriate amount of restitution owed to the victims in the case, Judge Conley scheduled a hearing for March 15, 2024, at 1:00 pm.
The charges against the Hansens were the result of an investigation led by the Federal Bureau of Investigation, the Internal Revenue Service, the Wisconsin Department of Agriculture, Trade and Consumer Protection, the Columbia County Sheriff’s Office, and the Walworth County Sheriff’s Office, with the assistance of law enforcement officers and district attorneys’ offices in the following counties in Wisconsin: Richland, Vernon, Grant, Dane, Fond Du Lac, Green Lake, Jefferson, Vilas, Walworth, Waukesha, Iowa, Kenosha, Adams, Columbia, Green, Monroe, Rock, Sauk, Winnebago, Sheboygan, Dodge, and Brown. Assistant U.S. Attorney Aaron Wegner handled the prosecution.
Former USPS mail carrier arrested, charged with stealing checks from mailRead the Press Release
ANCHORAGE, Alaska – A former Anchorage USPS mail carrier was arrested yesterday in Missouri after a federal grand jury in Alaska returned an indictment in December charging him with fraud and theft for allegedly stealing checks from the mail for personal gain.
According to court documents, Nha Xiong, 25, altered bank checks, typically with Whiteout, and wrote his name on the checks, making it appear as if the checks were made out to him. Xiong would then deposit the altered checks into his bank account.
From November to December 2021, the defendant deposited six stolen checks from Northrim Bank, Bank of America, KeyBank and Mt. McKinley Bank into his bank account, totaling over $39,000.
Xiong is charged with one count bank fraud, in violation of 18 U.S.C. §1344(2), and one count theft of mail by a postal employee, in violation of 18 U.S.C. §1709. The defendant will make his initial court appearance on a later date before the U.S. District Court for the District of Alaska. If convicted, Xiong faces potential fines and up to 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker of the District of Alaska, Inspector in Charge Anthony Galetti of the U.S. Postal Inspection Service, Seattle Division and Executive Special Agent in Charge Kenneth Bulle of the U.S. Postal Service Office of Inspector General Western-Pacific Area Field Office made the announcement.
The U.S. Postal Inspection Service and the U.S. Postal Service Office of Inspector General are investigating the case.
Assistant U.S. Attorneys Karen Vandergaw and Amy Miller are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Former State Contractor Sentenced for Stealing Unemployment Insurance BenefitsRead the Press Release
DETROIT – A Detroit resident was sentenced today for her role in a scheme to steal unemployment assistance funds, announced United States Attorney Dawn N. Ison. Autumn Mims, 31, was sentenced to 5 years and 5 months in prison after having pleaded guilty to engaging in aggravated identity theft and conspiring to engage in wire fraud. Co-defendant William Haynes, 27, will be sentenced next month.
Ison was joined in the announcement by Special Agent in Charge Cheyvoryea Gibson, Federal Bureau of Investigation, Detroit Field Division; Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor-Office of Inspector General; and Julia Dale, Director of the State of Michigan Unemployment Insurance Agency
Mims was sentenced by United States District Judge Mark A. Goldsmith.
Mims was a contract employee for the State of Michigan Unemployment Insurance Agency (MUIA), working as an Unemployment Insurance Examiner. Her duties included reviewing, processing, and verifying the legitimacy of unemployment insurance claims.
Mims and Haynes admitted to conspiring together to obtain illegitimate uninsurance benefits issued in the names of third parties.
According to court records, shortly after Mims began working with the Michigan Unemployment Insurance Agency in August 2020, she began using her insider access to fraudulently process claims in the names of third parties without their knowledge or authorization. As part of the scheme, Mims and/or Haynes (1) altered direct deposit information for third-party unemployment insurance assistance; (2) accessed third-party unemployment insurance assistance claim information without authorization; (3) completed false and fraudulent certifications for third-party unemployment insurance assistance benefits; (4) opened unauthorized bank accounts in the names of third parties; (5) conducted cash withdrawals of unemployment insurance assistance issued in the names of third parties; and (6) conducted financial transactions utilizing unemployment insurance assistance funds issued in the names of third parties.
Mims also admitted that while she was working with the MUIA and executing her fraud, she was also fraudulently obtaining unemployment insurance benefits for herself by falsely claiming that she was unemployed.
Mims was also ordered to pay $583,409 in restitution.
United States Attorney Ison stated: “We remain committed to prosecuting those who choose to enrich themselves by stealing government funds earmarked for those members of our community who are truly in need.”
“The defendant’s decision to conspire in order to obtain unlawful uninsurance benefits for personal profit while businesses and families were struggling during the COVID-19 pandemic is unconscionable,” said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. “Further, Ms. Mims’ actions were a direct betrayal of the public trust granted to her as a contract Unemployment Insurance Examiner for the State of Michigan. Providing false information and using stolen identities to fraudulently gain access to relief funds is a theft of taxpayer money. The FBI remains committed to working with our network of law enforcement partners to investigate and hold those accountable who seek to personally profit and defraud government assistance programs.”
"Autumn Mims, a former contract employee for the State of Michigan Unemployment Insurance Agency (MUIA), conspired with William Haynes to defraud the state of Michigan and the Pandemic Unemployment Assistance program. Mims abused her access to MUIA systems to fraudulently process unemployment insurance (UI) claims that Haynes had fraudulently certified, the proceeds of which were deposited into bank accounts that they controlled,” stated Special Agent-in-Charge Irene Lindow, Great Lakes Region, U.S. Department of Labor, Office of Inspector General. “We and our law enforcement partners are committed to identifying and prosecuting the criminals who took advantage of the COVID-19 pandemic by fraudulently obtaining pandemic UI benefits using stolen identities.”
“Autumn Mims’ criminal scheme tarnished all the critical and tireless work that staff at the Michigan Unemployment Insurance Agency performed during a global pandemic that hit Michigan hard. She does not by any stretch reflect the outstanding work habits of UIA’s professional employees, who abide by strict ethics and security clearance policies,” said MUIA Director Julia Dale. “I am proud of the dedication demonstrated every day in service to their fellow Michiganders and employers. UIA will continue to work with law enforcement at the local, state, and federal level to ensure that bad actors are brought to justice.”
The case was prosecuted by Assistant United States Attorney Andrew J. Yahkind. The investigation was conducted jointly by the Department of Labor, Office of Inspector General, Federal Bureau of Investigation’s Detroit Area Public Corruption Task Force, and the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity.
Former Sharon Resident Sentenced for Conspiring to Distribute FentanylRead the Press Release
PITTSBURGH, Pa. – A former resident of Sharon, Pennsylvania, was sentenced on January 17, 2024, to 27 months in federal prison for conspiring to distribute fentanyl, United States Attorney Eric G. Olshan announced today.
James West, 48, was sentenced by United States District Judge Cathy Bissoon. In pleading guilty in this case last year, West admitted to conspiring to distribute at least four grams of fentanyl between 2020 and 2021 in Mercer County. Judge Bissoon ordered West to serve three years of supervised release upon release from prison.
Assistant United States Attorneys Benjamin C. Dobkin and Craig W. Haller prosecuted this case on behalf of the United States.
United States Attorney Olshan commended the Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Attorney General’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, the Lawrence County Drug Task Force, the Mercer County Drug Task Force, the New Castle Police Department, the Sharon Police Department, the Hermitage Police Department, and the Farrell Police Department for the investigation leading to the successful prosecution of West.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former Rochester mail carrier pleads guilty to theft of mailRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Marlene Cruz, 40, of Rochester, NY, pleaded guilty to theft of mail matter by officer or employee, before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that in January 2022, the U.S. Postal Service (USPS) received complaints from individuals stating that their mail had been tampered with in late 2021. Subsequent investigation determined that Cruz, a full-time Mail Carrier, worked the mail route involving the complaints. Further investigation determined that between January 2022, and November 2023, Cruz routinely opened envelopes and parcels, removing items such as ticket stubs, documents, cash, lottery tickets, and gift cards, on dozens of occasions.
In May and November 2023, investigators conducted mail integrity tests, placing greeting cards containing cash and gift cards in the mail to be delivered by Cruz. On November 2, 2023, at the end of her shift, investigators detained Cruz and executed a warrant for her person and personal belongings. During the search, they recovered a gift card from one of the mail integrity test greeting cards inside Cruz’ personal duffle bag.
The plea is the result of an investigation by the U.S. Postal Service Office of Inspector General, under the direction of Matthew Modafferi, Special Agent-in-Charge Northeast Field Office.
Sentencing is scheduled for May 9, 2023, at 9:15 a.m. before Judge Siragusa.
# # # #
Former Pharmacy President Sentenced to Three Years in Prison for $32 Million Health Care Kickback SchemeRead the Press Release
NEWARK, N.J. – A former president of a pharmacy business was sentenced today to 36 months in prison for his role in a health care kickback conspiracy involving prescriptions for Medicare and TRICARE beneficiaries, Attorney for the United States Vikas Khanna announced today.
Elan Yaish, 54, of Israel, previously pleaded guilty on Aug. 16, 2023, before U.S. District Judge Esther Salas to an information charging him with conspiracy to violate the Federal Anti-Kickback statute. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From September 2017 to around December 2020, Yaish participated in operating pharmacies, including Apogee Bio-Pharm LLC, in Edison, New Jersey. Yaish and others agreed to engage in a scheme to pay marketing companies to direct prescriptions for expensive medications to the pharmacies.
The marketing companies identified Medicare and TRICARE beneficiaries to target for expensive drugs and contacted the beneficiaries by telephone to pressure them to agree to try expensive medications, such as pain creams, scar creams, eczema creams, and migraine medication. The marketing companies then transmitted recordings of telephone calls with the beneficiaries, together with pre-marked prescription pads for particular drugs that would yield exorbitant reimbursements, to telemedicine companies. The marketers paid the telemedicine companies kickbacks for every beneficiary referred for a prescription, and the telemedicine companies paid doctors to approve the prescriptions. The marketing companies then directed the prescriptions to pharmacies, including Apogee, with which they had kickback arrangements. The pharmacies filled the prescriptions and sought reimbursement from federal health care benefit programs, including Medicare and TRICARE. The pharmacies, including Apogee, then paid a portion of each reimbursement to the marketing companies as a kickback. As a result of the scheme, Yaish and his conspirators caused a loss to Medicare and other federal health care benefit programs of over $32 million.
In addition to the prison term, Judge Salas sentenced Yaish to three years of supervised release and ordered restitution of $32 million.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Acting Special Agent in Charge Brian J. Solecki, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit and Barbara Ward, Senior Trial Counsel of the Asset Recovery and Money Laundering Unit, in Newark.
Former Pfizer Employee Convicted at Trial of Insider TradingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that a jury returned a guilty verdict against AMIT DAGAR for insider trading and conspiracy to commit insider trading. The defendant was found guilty following a two-week trial before U.S. District Judge Andrew L. Carter.
U.S. Attorney Damian Williams said: “As the jury’s swift verdict shows, the proof at trial was overwhelming that Amit Dagar stole information about Paxlovid from his employer, Pfizer, and used that illegal edge to profit in the stock market. Combatting the corruption of our financial markets continues to be a top priority of this Office. Would-be insider traders tempted by the prospect of easy money should know that the Southern District of New York is watching, we’ll catch you, and we’ll make sure you pay the price for violating the law.”
According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial:
In November 2021, DAGAR participated in an insider trading scheme to reap illicit profits from options trading based on inside information about the results of clinical trials of Paxlovid, a medicine used to treat COVID-19. DAGAR was an employee of Pfizer Inc. (“Pfizer”) and assisted in managing the data analysis in certain clinical drug trials.
On November 4, 2021, DAGAR learned that a Pfizer trial of the drug Paxlovid, a medicine designed to treat mild to severe COVID‑19 infection, had produced positive results. The results were confidential and meant to remain so until Pfizer publicized them on November 5, 2021.
Later that same day, and while the results remained confidential, DAGAR purchased short-dated, out-of-the-money Pfizer call options that expired days and weeks later. DAGAR also tipped a close friend, who also purchased short-dated, out-of-the-money Pfizer call options.
The following day, on November 5, 2021, Pfizer publicly released results of its Paxlovid study prior to the market opening. That same day, following the publication of the positive results, Pfizer’s stock price increased substantially, opening — and eventually closing — more than 10% higher than the prior day’s closing price. In the following weeks, DAGAR sold his Pfizer call options for profits of more than $270,000.
* * *
DAGAR, 44, of Hillsborough, New Jersey, was convicted of one count of securities fraud, which carries a maximum sentence of 20 years in prison, and one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. Mr. Williams also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action, for its assistance and cooperation in the investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Alex Rossmiller and Justin V. Rodriguez are in charge of the prosecution, with assistance from Paralegal Specialists Madeline Sonderby and Anna Gamboa.
Former Mayor of Plum Springs, Kentucky Pleads Guilty to Wire FraudRead the Press Release
Bowling Green, KY – Today, Shedrick Johnson of Bowling Green plead guilty to an information filed by the United States Attorney on January 2, 2024, charging him with wire fraud.
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 the information, Shedrick Johnson, 45, was charged with devising a wire fraud scheme beginning on March 23, 2020, and continuing to November 30, 2022, in which he exceeded his authorized access by withdrawing funds belonging to Plum Springs, which is in Warren County, and utilizing for his personal benefit and conducting unauthorized transactions with the Plum Springs debit card with the total amount of loss being approximately $38,168.96.
On January 18, 2024, Johnson made an initial court appearance before a U.S. District Court Judge in the United States District Court for the Western District of Kentucky, and he entered a guilty plea in which the parties agree to recommend 5 years of probation. He faces a maximum sentence of 20 years in prison. Sentencing is set for April 25, 2024, at 10:30 a.m. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
This case is being investigated by the FBI Bowling Green Post of Duty Office.
Assistant U.S. Attorney Madison Sewell, of the U.S. Attorney’s Bowling Green Branch Office, is prosecuting this case.
###
Former Maryland Tax Preparer Pleads Guilty in False Return SchemeRead the Press Release
A Minnesota woman, who previously ran a tax preparation business in Maryland, pleaded guilty today to aiding in the preparation of false tax returns.
According to court documents and statements made in court, Kymberly Starr owned and operated The Tax Lady, also known as 5 Starr Business Solutions, a tax preparation business in Maryland. From 2013 to at least 2018, Starr inflated her clients’ tax refunds by preparing and submitting to the IRS false tax returns that claimed fraudulent tax deductions and fictitious business profits and losses. Starr’s conduct resulted in a loss to the IRS of at least $400,000.
Additionally, in 2020 and 2021, Starr obtained over $83,000 in COVID-related Paycheck Protection Program (PPP) loans by submitting fabricated IRS forms containing purported business income from bogus businesses. Starr also filed a false claim, which included fabricated federal tax forms, for unemployment insurance with the Maryland Department of Labor from which she received over $55,000.
Starr is scheduled to be sentenced on April 26 and faces a maximum penalty of three years in prison. She also faces a period of supervised release, restitution and monetary penalties. U.S. District Judge Theodore D. Chuang for the District of Maryland 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.
Trial Attorneys Shawn Noud and Ezra Spiro of the Justice Department’s Tax Division are prosecuting the case.
Former Florida Keys Resident Detained Pending Trial for Distributing Child PornographyRead the Press Release
MIAMI – On Jan. 16, Eric Edward Cadogan, a/k/a “livelife4fun69,” 39, of La Crosse, Wisconsin, formerly of Marathon, Florida, was arraigned and ordered detained pending trial by U.S. Magistrate Judge Lurana S. Snow, in Key West, Florida on an indictment charging him with distributing child pornography.
According to allegations in the indictment and previously filed criminal complaint, and presented during court hearings, Cadogan uploaded and distributed child pornography using a social media messaging platform. Cadogan also offered to sell child pornography and said he had “100 of videos n pictures.” In messages with an online undercover agent, Cadogan indicated he had engaged in sexually explicit conduct with minor children.
This case is set for trial during the two-week period commencing Feb. 20, 2024. If convicted of the charge contained in the federal indictment, Cadogan faces a mandatory minimum term of 5 years in prison, up to twenty years in prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, announced the charges.
FBI Miami Key West Resident Agency investigated the case. Assistant U.S. Attorney Katherine W. Guthrie is handling the case.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about the PSC initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Anyone with information regarding suspected child abuse (to include physical and sexual abuse) is encouraged to call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
A criminal complaint and an indictment contain allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-mj-05020 and 23-CR-10017.
###
Former City Clerk Pleads Guilty to Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – A former city clerk for Merriam Woods, Mo., pleaded guilty in federal court today to a $68,000 scheme to defraud the city.
Breanna N. Gamble, also known as Breanna Delcour, 28, of Ozark, Mo., waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges her with one count of wire fraud.
By pleading guilty today, Gamble admitted that, from Oct. 1, 2018, to Aug. 11, 2019, she engaged in a scheme by which she utilized her position as a city clerk for Merriam Woods to use city funds for her personal benefit, without authorization from the city.
The loss to the city of Merriam Woods that resulted from Gamble’s fraud scheme totaled at least $68,038. Under the terms of today’s plea agreement, Gamble must forfeit to the government a money judgment in that amount.
As a part of her scheme, Gamble used the city’s credit cards and bank accounts to make personal purchases on numerous occasions, without authorization from the city, including purchases from Amazon, Victoria’s Secret, Walmart, PFI, Buckle, American Eagle, H&M, Ticketmaster, Reliable Chevrolet, Springfield Power Sports, Lululemon, and Ulta.
Gamble admitted that she forged a signature on a $5,500 city check that was used to purchase a motorcycle for her personal use.
In order to conceal her scheme and her use of the city’s funds, Gamble recorded false financial entries and false invoices. Gamble also made misrepresentations to the city’s mayor and board of aldermen, and failed to cooperate with a company hired by the city to conduct a financial audit of the city’s finances.
Under federal statutes, Gamble is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by the FBI.
Federal grand jury indicts Port Townsend, Washington man for production of images of child sexual abuseRead the Press Release
Tacoma – A 32-year-old Port Townsend, Washington, man was indicted yesterday for production of images of child sexual abuse, announced U.S. Attorney Tessa M. Gorman. Matan Liyor Goodman is scheduled to be arraigned in U.S. District Court in Tacoma next week.
According to records filed in the case, the investigation began with a report to the National Center for Missing and Exploited Children (NCMEC) that a user of Kik Messenger had uploaded suspected images of child sexual abuse. Review of the computer records indicated the person uploading the images resided in Western Washington and the information was forwarded to the Internet Crimes against Children Task Force at the Seattle Police Department.
An agent with Homeland Security Investigations connected the computer information with Goodman at an address in Port Townsend. Further investigation revealed that Goodman is a registered sex offender due to convictions in California.
Law enforcement obtained a judicially approved search warrant to search Goodman’s home and person, including any electronic devices belonging to him.
Following the search in October 2023, Goodman was taken into federal custody.
The charge contained in the indictment is an allegation. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The mandatory minimum for the offense of Production of Child Pornography is 15 years. Due to his prior convictions, Goodman potentially faces a mandatory minimum 25 years in prison if convicted.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (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.
The case is being investigated by Homeland Security Investigations with assistance from the Jefferson County Sheriff’s Office.
The case is being prosecuted by Assistant United States Attorneys Victoria Cantore and Matthew Hampton.
FedEx Package Containing Methamphetamine Intercepted Resulting in Federal Prison Sentence for Youngsville ManRead the Press Release
LAFAYETTE, La. – United States Attorney Brandon B. Brown announced the resolution of two cases involving drug trafficking in the Western District of Louisiana. United States District Judge David C. Joseph sentenced the following defendants yesterday.
Lynol Christian, 43, of Lafayette, Louisiana, was sentenced to 156 months (13 years) in prison, followed by 4 years of supervised release, for attempted possession with intent to distribute controlled substances. According to information presented in court, on March 20, 2023, Christian traveled on a commercial airline from Baton Rouge to Los Angeles, California. While in California, Christian shipped a package containing methamphetamine via FedEx to an individual in Youngsville, Louisiana. The return label listed Christian’s own address, which is also in Youngsville. Christian returned on a commercial airline back to Baton Rouge and into the Western District of Louisiana on March 22, 2023. Employees with FedEx notified authorities of the suspicious package and notified law enforcement. The package was secured and opened and found to contain 2,255 grams of suspected methamphetamine in 5 plastic bags. The suspected narcotics were sent to the DEA Southeast Laboratory for analysis, and it was determined that the substances were in fact methamphetamine with a net weight of 2,228.3 grams. Christian was subsequently indicted and pleaded guilty to the charge on October 18, 2023.
The case was investigated by the U.S. Drug Enforcement Administration and Department of Homeland Security Investigations and prosecuted by Assistant United States Attorney Daniel J. McCoy.
In a separate and unrelated case, Dwayne Batiste, 51, of Breaux Bridge, Louisiana, was sentenced to 144 months (12 years), followed by 5 years of supervised release, for possession with intent to distribute controlled substances. On September 8, 2022, law enforcement agents executed a search warrant at a residence on Gilbert Street in Lafayette. While searching in a bedroom of the residence, agents found documentation belonging to Batiste, including ledgers of narcotics transactions. A further search led agents to find a clear bag containing a brown substance which was later determined to be fentanyl, as well as a clear bag containing an off-white substance suspected to be heroin or cocaine. Agents also found in the residence and in Batiste’s vehicle over $13,000 in cash, digital scales and boxes of sandwich baggies. The suspected narcotics were sent to the Acadiana Crime Laboratory where they were confirmed positive for the presence of fentanyl with a neg weight of over 500 grams. Batiste was charged and pleaded guilty to knowing possessing the fentanyl with the intent to distribute it to another person.
The case was investigated by the U.S. Drug Enforcement Administration and Lafayette Parish Sheriff’s Office Narcotics Unit and prosecuted by Assistant United States Attorney LaDonte A. Murphy.
# # #
Fargo Man Sentenced to 11 Years in Federal Prison for Conspiracy to Tamper with a Federal WitnessRead the Press Release
FARGO – United States Attorney Mac Schneider, District of North Dakota, announced that on January 18, 2024, Daniel Saydee Cisse, age 19, Fargo, ND, was sentenced by Chief District Judge Peter Welte to 11 years in federal prison and five years supervised released for Conspiracy to Tamper with a Witness.
On September 25, 2023, Cisse pleaded guilty for his role in assaulting a federal witness in the Cass County jail on January 14, 2023. As noted at the plea hearing, co-conspirators planned and arranged to assault the federal witness with the intent to influence, delay or prevent the witness from testifying in an official proceeding and to prevent him from providing information to law enforcement regarding the drug-related homicide of Santino Marial. Marial was shot to death in Fargo, ND. on August 28, 2020.
Co-defendants Jesse James Burnett and Shaquiel Anthony Mendez are currently set for trial on July 16, 2024.
This case was investigated by Alcohol, Tobacco, Firearms and Explosives, Fargo Police Department, Cass County Sheriff’s Department, and the Cass County State’s Attorney’s Office.
The cases are being prosecuted by Assistant U.S. Attorneys Christopher C. Myers and Jacob T. Rodenbiker.
# # #
Fannin County man sentenced for multiple East Texas bank robberiesRead the Press Release
SHERMAN, Texas – A Leonard, Texas man has been sentenced to federal prison for robbing multiple banks in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Kevin Long, 31, pleaded guilty to bank robbery and was sentenced to 70 months in federal prison by U.S. District Judge Sean Jordan on January 18, 2024. Long was also ordered to pay restitution of $573,000.
According to information presented in court, Long robbed multiple banks in East Texas between 2020 and 2021. During the robberies he passed threatening notes to bank employees, he physically restrained bank employees, and he stole over $550,000. Those robberies include: CapTex Bank in Bonham on Jan. 31, 2020; Financial Bank in Farmersville on August 11, 2020; Bancorp South Bank in Tom Bean on Oct. 16, 2020; Commercial Bank in Farmerville on August 13, 2021; and First United Bank in Leonard on August 20, 2021.
This case was investigated by the Federal Bureau of Investigation, Bonham Police Department, Farmersville Police Department, Grayson County Sheriff’s Office, Sherman Police Department, Allen Police Department, Leonard Police Department, Bells Police Department, Tom Bean Police Department, and Texas Department of Public Safety.
###
Exporter sentenced to prison for shipping heavy equipment to Iran in violation of U.S. sanctionsRead the Press Release
ATLANTA - Jalal Hajavi has been sentenced for conspiring to violate the International Emergency Economic Powers Act and the Iranian Transactions and Sanctions Regulations, smuggling goods from the U.S., unlawfully exporting and reexporting goods from the U.S. to Iran without a license, and unlawfully engaging in transactions and dealings based on his participation in a scheme to export unlawfully heavy equipment from the U.S. to Iran by routing the shipments though the United Arab Emirates (“UAE”).
“Hajavi’s conduct was particularly egregious because he was previously informed on at least two occasions that his conduct was prohibited,” said U.S. Attorney Ryan K. Buchanan. “Instead of heeding the warnings, he continued to divert U.S. goods to Iran. Trade sanctions against Iran comprise a critical component of U.S. foreign policy designed to keep our country and citizens safe. Criminal actors like Hajavi, who seek to profit by evading these prohibitions and jeopardize our national security, will be prosecuted.”
“Mr. Hajavi illegally shipped industrial equipment to the Iranian regime, smuggled restricted goods through the UAE to Iran, and caused a shipping company to submit false information to the U.S. government. He has been held to account for his crimes,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “As this case shows, the Justice Department remains committed to enforcing U.S. sanctions and export control laws to deny Iran the commodities that fuel its malign activities abroad and threaten our nation’s security.”
“This sentencing is the result of a highly successful joint investigative effort with our law enforcement partners and the U.S. Attorney’s Office for the Northern District of Georgia that disrupted an illicit Iranian procurement scheme,” said John Johnson, Special Agent in Charge, Office of Export Enforcement’s Miami Field Office. “OEE is fully committed to protecting national security by denying U.S. commodities to U.S. sanctioned countries.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Jalal Hajavi and a co-conspirator located in Iran conspired to evade U.S. sanctions by exporting U.S. heavy machinery through the UAE to Iran without first obtaining the required licenses from the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”). Hajavi, through his company JSH Heavy Equipment, LLC, located heavy equipment for sale in the U.S., such as bobcats and wheel loaders, and sent information about his findings to the co-conspirator in Iran. Hajavi purchased the items from U.S. sellers and used freight forwarding companies to ship the heavy equipment from the U.S. to the UAE, where his Iranian co-conspirator diverted the machinery to Iran in circumvention of the U.S. export license requirement.
In addition to evading OFAC licensing requirements, Hajavi concealed his activities with the co-conspirator by causing false information to be entered into the Automated Export System (“AES”), a U.S. government database containing information about exports from the U.S. Hajavi falsely claimed that the items were destined for his supposed UAE customers, which typically were general trading companies located in free trade zones in the UAE, but in reality, the items were destined for Iran.
At one point, Hajavi met with a Special Agent from the Bureau of Industry and Security who informed Hajavi about the U.S. sanctions against Iran, including the prohibition to transship U.S. goods through third countries to Iran. Undeterred, Hajavi continued his unlawful conduct.
One of the items that Hajavi purchased and unlawfully caused to be shipped was an Ingersoll Rand Blasthole Drill, which is a type of heavy machinery used in construction to drill holes in the ground usually filled with controlled charges. Hajavi purchased the drill from a U.S. company and, as part of a sham transaction, purportedly sold the drill to a UAE company. Hajavi hired a U.S. freight forwarder to arrange the drill’s export from the U.S. to the UAE During the shipping process, the freight forwarder submitted information provided by Hajavi to AES about the shipment. Hajavi falsely told the freight forwarder that the UAE company was the ultimate consignee and provided the false ultimate destination of the UAE, when Hajavi knew that the Iranian co-conspirator was the true buyer and that Iran was the ultimate delivery destination. The Iranian co-conspirator subsequently shipped the drill from the UAE to Iran.
Jalal Hajavi, 60, of Sterling, Virginia, was sentenced by U.S. District Judge Thomas W. Thrash to two years in prison to be followed by three years of supervised release. He was convicted by a jury on September 11, 2023.
The U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement conducted the investigation. The Federal Bureau of Investigation provided assistance.
Assistant U.S. Attorney Tracia M. King and Trial Attorney Emma Dinan Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.