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16 January 2024
New York Man Admits Illegally Possessing Cocaine and FentanylRead the Press Release
NEWARK, N.J. – A New York man today admitted illegally possessing cocaine and fentanyl for distribution, U.S. Attorney Philip R. Sellinger announced.
Isidro Fernandez, 35, New York, pleaded guilty to before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of possession with intent to distribute controlled substances.
According to documents filed in this case and statements made in court:
On Feb. 26, 2021, law enforcement officers recovered a total of over 5 kilograms of cocaine and over 3 kilograms of fentanyl from a Passaic County residence occupied by Fernandez and from a vehicle that was seen leaving the residence. Fernandez admitted possessing the controlled substances with the intent to distribute.
The narcotics offense carries a maximum potential penalty of 20 years in prison, and a fine of $1 million. Sentencing is scheduled for May 2, 2024.
U.S. Attorney Sellinger credited the New York Drug Enforcement Task Force, which comprises special agents and task force officers of the Drug Enforcement Administration, New York City Police Department, and New York State Police, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Chelsea D. Coleman of the Opioid Abuse Prevention and Enforcement Unit in Newark.
fernandez.information.pdfNew Orleans Man Sentenced for Committing Hobbs Act RobberiesRead the Press Release
NEW ORLEANS, LOUISIANA – QUINCY JONES, a/k/a “Luck,” a resident of New Orleans, was sentenced by U.S. District Judge Jane Triche Milazzo on January 11, 2024, to 34 months incarceration, three (3) years of supervised release following release from imprisonment and a mandatory $200 special assessment fee, after JONES had previously pled guilty to conspiring to interfere with commerce through robbery and attempted Hobbs Act Robbery, all in violation of Title 18, United States Code, Section 1951.
According to court records, in 2019, the Federal Bureau of Investigation investigated a group for committing various violent crimes and illegal drug trafficking, primarily in New Orleans East and the Ninth Ward. Thereafter, JONES, along with nine others, were indicted, for conspiring to possess firearms, traffic drugs and commit armed robberies of drug dealers.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation, the New Orleans Police Department, and the St. Bernard Sheriff’s Office. The case was prosecuted by Assistant United States Attorneys Maurice Landrieu of the Narcotics Unit and Elizabeth Privitera, Chief of the Violent Crime Unit.
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New Orleans Man Pleads Guilty to Felon in Possession of Firearm ChargeRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on January 10, 2024, JOSHUA MORGAN, age 30, a resident of Orleans Parish, pled guilty to being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8). If convicted, MORGAN faces up to 15 years of imprisonment, a fine of up to $250,000, up to 3 years of supervised release, and a mandatory special assessment fee of $100.00. Sentencing is set for April 10, 2024.
According to court records, on October 10, 2022, NOPD responded to a 911 call of shots being fired. The caller reported observing a subject in a grey shirt with black shorts flee from a vehicle, run through a parking lot, and put something in a storm drain behind a business located in the 3400 block of Tulane Avenue. Video surveillance from the area showed an Infiniti SUV driving on Tulane Avenue toward downtown New Orleans and stop at a red light. After the Infiniti stops, one vehicle pulled up next to the Infiniti while another pulled up from behind. The occupants of those two vehicles opened fire on the Infiniti. MORGAN, who was in the Infiniti, shot through his windshield, exited the Infiniti and continued firing at the two vehicles. Surveillance video also showed MORGAN running from the Infiniti with a firearm in his hand, placing the firearm in his pants pocket, and later discarding the firearm in a storm drain. MORGAN is a felon and prohibited from possessing a firearm.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit.
New Orleans Man Indicted for Drug and Firearm OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that BYRON WILLIAMS, age 39, a resident of New Orleans, was charged January 11, 2024 in a three-count indictment stemming from incidents taking place on November 22, 2023. Count 1 charged WILLIAMS with possession with intent to distribute cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). Count 2 charged WILLIAMS with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c). Count 3 charged WILLIAMS with felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
If convicted of Count 1, WILLIAMS faces up to 20 years imprisonment, up to a $1,000,000 fine, and at least 3 years of supervised release. If convicted of Count 2, WILLIAMS faces a mandatory minimum sentence of five years up to life imprisonment, to run consecutively to all other sentences, up to a $250,000 fine, and up to five years of supervised release. If convicted of Count 3, WILLIAMS faces up to 15 years imprisonment, up to a $250,000 fine, and up to 3 years of supervised release. As to each count, WILLIAMS also faces payment of a mandatory special assessment fee of $100.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. Assistant United States Attorney Sarah Dawkins of the Violent Crime Unit is in charge of the prosecution.
New Jersey Hospital and Investors to Pay the United States $30.6 Million for Alleged False Claims Related to Excessive Cost Outlier PaymentsRead the Press Release
Columbus LTACH, doing business as Silver Lake Hospital (Silver Lake), a long-term care hospital based in Newark, New Jersey, has agreed to pay over $18.6 million, plus interest, to resolve alleged False Claims Act violations for claiming excessive cost outlier payments from the Medicare program. In addition, certain Silver Lake investors have agreed to pay $12 million, plus interest, to resolve alleged Federal Debt Collection Procedures Act (FDCPA) violations for the fraudulent transfer of money by the hospital to its investors. The settlement amounts will be paid over a five year period, and the Silver Lake payment was negotiated based on the hospital’s lack of ability to pay.
In addition to its standard payment system, Medicare provides supplemental reimbursement to hospitals called “cost outlier” payments in cases where the cost of care is unusually high. Congress enacted the supplemental outlier payment system to ensure that hospitals possess the incentive to treat inpatients whose care may be unusually expensive. These cost outlier payments are made based on a formula set forth in the relevant regulations that attempt to adjust a hospital’s charges to the hospital’s costs by multiplying the hospital’s current charges by the hospital’s cost-to-charge ratios derived from the hospital’s previously submitted cost reports. Because the previously submitted cost reports may not reflect the hospital’s current cost to charge ratios, the Medicare program also provides for a retrospective reconciliation process, whereby after the hospital’s cost-to-charge ratio for the applicable time period is finalized, the hospital may be required to pay back excessive outlier payments that it received. This settlement resolves allegations that Silver Lake improperly distorted the cost outlier payment system by rapidly increasing its charges well in excess of any increase in its costs and far beyond what the hospital had the financial ability to repay once its Medicare cost reports were reconciled to account for these charge increases.
The settlement also resolves allegations that Silver Lake transferred millions of dollars in the hospital’s money to its investors without receiving equivalent value in return, at a time when the hospital had reason to believe that it would not be able to repay its debts to the Medicare program. The United States alleged that such conduct violated the FDCPA.
According to the settlement agreement with the United States, the payments made to resolve the United States’ FDCPA allegations will be made by Dr. Richard Lipsky, Silver Lake’s principal investor, and Columbus Management South LLC, an entity through which other Silver Lake investors received cash distributions from the hospital.
“Cost-outlier payments were intended to ensure that hospitals would provide care to all patients requiring their services,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “These payments were not intended to serve as a private source of enrichment for hospitals unrelated to the actual costs incurred in providing such care.”
“Medicare serves to ensure that patients get necessary care, including when that care is very expensive,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Medicare is not there for hospitals and their investors to gain unwarranted financial windfalls. As alleged, this hospital falsely reported its costs to Medicare for years and reaped millions in unjustified payments. Along with our partners, this office is committed to protecting the Medicare system from all forms of fraud schemes.”
“This settlement underscores the FBI's commitment to investigating fraudulent activity in the health care industry,” said Assistant Director Michael Nordwall of the FBI's Criminal Investigative Division. “The FBI and our law enforcement partners will continue to investigate hospitals who deceptively bill federal health care programs and prioritize investor enrichment at the expense of taxpayers.”
“When a hospital submits false information to seek higher reimbursements, it can affect the availability of funds and services for others and drive up the cost of taxpayer-funded health care,” stated Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to ensure that health care providers are held accountable if they attempt to exploit federal health care programs.”
This settlement was the result of a coordinated effort by the Justice Department's Civil Division, U.S. Attorney’s Office for the District of New Jersey, HHS-OIG's Office of General Counsel and the FBI.
The matter was handled by Trial Attorney Daniel Spiro of the Civil Division's Fraud Section and Assistant U.S. Attorney Paul Kaufman for the District of New Jersey.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
SettlementNew Jersey Hospital and Investors to Pay United States $30.6 Million for Alleged False ClaimsRead the Press Release
NEWARK, N.J. – A New Jersey hospital and certain of its investors have agreed to pay $30.6 million to resolve alleged False Claims Act and Federal Debt Collection Procedures Act violations, U.S. Attorney Philip R. Sellinger announced today.
Columbus LTACH d/b/a Silver Lake Hospital (Silver Lake), a long-term care hospital based in Newark, has agreed to pay over $18.6 million, plus interest, to resolve alleged False Claims Act violations for claiming excessive cost outlier payments from the Medicare program. Certain Silver Lake investors have agreed to pay $12 million, plus interest, to resolve alleged Federal Debt Collection Procedures Act (FDCPA) violations for the fraudulent transfer of money by the hospital to its investors. The settlement amounts will be paid over a five-year period; the Silver Lake payment was negotiated based on the hospital’s lack of ability to pay.
U.S. Attorney Philip R. Sellinger“Medicare serves to ensure that patients get necessary care, including when that care is very expensive. Medicare is not there for hospitals and their investors to gain unwarranted financial windfalls. As alleged, this hospital falsely reported its costs to Medicare for years and reaped millions in unjustified payments. Along with our partners, this Office is committed to protecting the Medicare system from all forms of fraud schemes.”
“Cost-outlier payments were intended to ensure that hospitals would provide care to all patients requiring their services,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said. “These payments were not intended to serve as a private source of enrichment for hospitals unrelated to the actual costs incurred in providing such care.”
“The Medicare outlier payment program is designed to provide hospitals with reimbursement for situations where extraordinarily costly patient care is needed,” FBI-Newark Special Agent in Charge James E. Dennehy said. “Instead of using the outlier payment program as intended, Silver Lake was caught fraudulently obtaining enhanced reimbursements from Medicare they were not entitled. Whatever magic trick or sleight of hand hospitals attempt to use to perpetrate fraud, the FBI and our law enforcement partners will diligently investigate and recover any ill-gotten gains.”
“When a hospital submits false information to seek higher reimbursements, it can affect the availability of funds and services for others and drive up the cost of taxpayer-funded health care,” Special Agent in Charge Naomi Gruchacz for the Department of Health and Human Services Office of Inspector General (HHS-OIG) said. “HHS-OIG will continue to work with our law enforcement partners to ensure that health care providers are held accountable if they attempt to exploit federal health care programs.”
In addition to its standard payment system, Medicare provides supplemental reimbursement to hospitals – called “cost outlier” payments – in cases where the cost of care is unusually high. Congress enacted the supplemental outlier payment system to ensure that hospitals possess the incentive to treat inpatients whose care may be unusually expensive. These cost outlier payments are made based on a formula set forth in the relevant regulations that attempt to adjust a hospital’s charges to the hospital’s costs by multiplying the hospital’s current charges by the hospital’s cost-to-charge ratios derived from the hospital’s previously submitted cost reports. Because the previously submitted cost reports may not reflect the hospital’s current cost-to-charge ratios, the Medicare program also provides for a retrospective reconciliation process, whereby after the hospital’s cost-to-charge ratio for the applicable time period is finalized, the hospital may be required to pay back excessive outlier payments that it received.
This settlement resolves allegations that Silver Lake improperly distorted the cost outlier payment system by rapidly increasing its charges well in excess of any increase in its costs and far beyond what the hospital had the financial ability to repay once its Medicare cost reports were reconciled to account for these charge increases.
The settlement also resolves allegations that Silver Lake transferred millions of dollars in the hospital’s money to its investors without receiving equivalent value in return, at a time when the hospital had reason to believe that it would not be able to repay its debts to the Medicare program. The United States alleged that such conduct violated the FDCPA.
According to the settlement agreement, the payments made to resolve the United States’ FDCPA allegations will be made by Dr. Richard Lipsky, Silver Lake’s principal investor, and Columbus Management South LLC, an entity through which other Silver Lake investors received cash distributions from the hospital.
This settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the District of New Jersey; the Civil Division of the U.S. Department of Justice; the Department of Health and Human Services, Office of Counsel to the Inspector General, Office of Investigations, and Office of General Counsel; and the FBI.
The government is represented by Assistant U.S. Attorney Paul Kaufman for the District of New Jersey and Civil Fraud Section attorney Daniel Spiro.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
silverlake.settlementagreement.pdfNew Britain Man Sentenced to 79 Months in Federal Prison for Stealing Cash and Cigarettes in Month-Long Robbery SpreeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that EFRAIN DELEON, 61, of New Britain, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 79 months of imprisonment, followed by three years of supervised release, for committing nine robberies of convenience stores and smoke shops in Connecticut and New Hampshire in 2022.
According to court documents and statements made in court, between February 27 and March 16, 2022, Efrain Deleon, Gilberto Deleon, and Steven Galarza, using BB guns that are designed to appear similar to real firearms, robbed the following retail locations of cash, cigarettes and other items:
- February 27 – Scott’s Village Mobil Gas Station, 843 Farmington Avenue, Farmington
- March 2 – Mystic Mobil Gas Station, 66 Whitehall Avenue, Mystic
- March 3 – Shell Gas Station, 168 Bridge Street, East Windsor
- March 3 – Food Bag, 960 Meriden Waterbury Turnpike, Southington
- March 5 – Valero Gas Station, 1 Main Street, Ellington
- March 5 – Sunoco Gas Station, 446 Bloomfield Avenue, Windsor
- March 8 – Smoker’s Discount World, 636 Silas Deane Highway, Wethersfield
- March 16 – Cove Smoke Market, located at 841 Cove Road, Stamford
During the robberies, Efrain Deleon typically interacted directly with the store clerk and took the cash and tobacco products. Gilberto Deleon acted as the “lookout” and Galarza acted as the “getaway” driver. At times, their roles overlapped.
On March 19, 2022, Efrain Deleon and Galarza also robbed a 7-Eleven in Salem, New Hampshire.
Efrain Deleon has been detained since his arrest on April 19, 2022. On May 9, 2023, he pleaded guilty to conspiracy to commit Hobbs Act Robbery. Deleon’s criminal history includes seven prior robbery convictions.
Galarza, of Seymour, and Gilberto Deleon, of New Britain, pleaded guilty to related charges. On July 20, 2023, Galarza, who also committed two additional robberies in Connecticut and New York, was sentenced to 78 months of imprisonment. On December 14, 2023, Gilberto Deleon was sentenced to 34 months of imprisonment.
This investigation was conducted by the Federal Bureau of Investigation, Connecticut State Police, and the Farmington, Stonington, East Windsor, Southington, Windsor, Wethersfield, Stamford, New Britain, Salem (N.H.), and Somers (N.Y.) Police Departments. The case was prosecuted by Assistant U.S. Attorney Brendan Keefe.
Nevada CPA Sentenced to Three Years in Prison in False Tax Return SchemeRead the Press Release
A Nevada man was sentenced today to three years in prison for willfully aiding and assisting the filing of false tax returns, in connection with a scheme to sell purported investment opportunities to clients that he falsely claimed would entitle them to IRS tax deductions.
According to court documents and statements made in court, Lance K. Bradford, of Henderson, was a certified public accountant and founder and manager of LL Bradford & Company (LLB). LLB performed accounting-related work, including tax preparation, audit and consulting services. Bradford also operated a real estate business that developed office buildings and other real property. In connection with Bradford’s real estate development activities, he operated and controlled a real estate investment partnership entity.
In 2011, Bradford began offering LLB’s high-net-worth clients an “investment opportunity” through which the clients would make a payment to his partnership entity and, in exchange, receive a large tax deduction of approximately five to seven times the amount of money the client “invested.” Bradford advised that the clients’ payments would entitle them to claim the large tax deduction based on losses derived from the partnership entity, even though he knew the tax laws did not permit the sale of such deductions in exchange for an investment of money, and the partnership did not incur the losses or depreciation in the amounts represented by Bradford. Bradford also did not report the purported investments as losses on the clients’ tax returns as promised. Instead, he caused the clients’ returns to report large false deductions for cost of goods sold, professional and consulting fees or nonpassive losses. In total, Bradford’s scheme caused a tax loss to the IRS of at least $8 million.
As one example from his investment scheme, in 2014, Bradford asked a client to make a $417,780 “investment” to his partnership entity in exchange for purported depreciation-based losses to be placed on his client’s 2013 corporate tax return (Form 1120S). But instead of reporting depreciation related to the investment, Bradford caused LLB to prepare and file a Form 1120S that falsely inflated the company’s cost of goods sold by $2,110,000, causing a tax loss to the IRS of approximately $860,627.
In addition to the term of imprisonment, U.S. District Court Judge Gloria M. Navarro ordered Bradford to serve one year of supervised release and pay $6,734,338 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jason M. Frierson for the District of Nevada made the announcement.
IRS Criminal Investigation investigated the case, with assistance from the FBI.
Trial Attorney Patrick Burns of the Tax Division and Assistant U.S. Attorney Steven W. Myhre for the District of Nevada prosecuted the case.
Mother and Daughter Team Plead Guilty in COVID-19 Related Jailhouse Unemployment Insurance FraudRead the Press Release
FRESNO, Calif. — Makiah Miles, 30, of Compton, and Apryl Weston, 51, of Santa Maria, pleaded guilty today to conspiring to commit mail fraud for submitting fraudulent unemployment insurance claims to the California Employment Development Department (EDD) in the names of inmates, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Miles was an inmate at the Central California Women’s Facility in Chowchilla, and Weston is her mother. From June through December 2020, Miles obtained other inmates’ names, dates of birth, and social security numbers and sent that information to Weston to submit claims in those inmates’ identities, as well as Miles’ own identity. The underlying applications misrepresented that Miles and the other inmates worked as childcare providers, cosmetologists, hairdressers, and other occupations, that they last worked within the prior few months and recently became unemployed because of the COVID-19 pandemic, and that they were currently available to work. The fraudulent claims were worth nearly $250,000.
This case is the product of an investigation by FBI, the California Department of Corrections and Rehabilitation’s Investigative Services Unit, and the EDD. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
This case is part of the California COVID-19 Fraud Enforcement Strike Force, which is one of the interagency COVID-19 fraud strike forces established by the United States Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California, and focuses on large-scale, multistate, and egregious pandemic relief fraud. The strike force uses prosecutor-led, and data analyst-driven, teams to identify and bring to justice those who stole pandemic relief money.
Miles and Weston are scheduled to be sentenced on April 22, 2024. They face a maximum statutory penalty of 20 years in prison and $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Missouri Man Sentenced to 12 Years in Prison on Drug Distribution, Gun ChargesRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Sarah E. Pitlyk on Tuesday sentenced a man who was caught with drugs and guns and admitted distributing drugs to 12 years in prison.
Christopher A. Calicott, 43, pleaded guilty in April to three felony counts: possession of methamphetamine with intent to distribute, possession of cocaine with intent to distribute and possession of firearm in furtherance of drug trafficking crime.
After a multi-agency investigation, a court-approved search of the home of Calicott and his wife, Jodi L. Calicott, in an RV park near Sikeston, Missouri, found drugs, cash and guns. Investigators found two bags that contained a total of 60 grams of cocaine, two bags that contained a total of 247 grams of meth, two bags containing 124 grams of marijuana, a 9mm semiautomatic pistol loaded with 15 rounds, a 12-gauge shotgun loaded with five shotgun shells, $6,600 in cash and drug paraphernalia. Both Calicotts admitted involvement in the drug trade and Christopher Calicott admitted possession of the firearms.
Jodi L. Calicott, 38, was sentenced in June to five years in prison after pleading guilty to possession of methamphetamine with intent to distribute and possession of cocaine with intent to distribute.
The Scott County Sheriff’s Office, the Sikeston Department of Public Safety, the Southeast Missouri Drug Task Force and the Missouri State Highway Patrol investigated the case. Assistant U.S. Attorney Julie Hunter prosecuted the case.
Mexican National Sentenced to over 6 Years in Prison for Madera Methamphetamine TransactionRead the Press Release
FRESNO, Calif. — Jesus Alberto Reyes-Parra, 31, a citizen of Mexico, was sentenced today to six years and two months in prison for possessing with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, following negotiations by a third party for the sale of 50 pounds of methamphetamine for $125,000, Reyes-Parra brought approximately 48 pounds of pure methamphetamine to a drug transaction in a Walmart parking lot in Madera. He did not know that the buyer was undercover law enforcement. Reyes-Parra was arrested after he showed the officer the drugs on the rear passenger seat of his vehicle. Officers recovered the methamphetamine and located in the center console of the vehicle a stolen Colt .38-caliber handgun with a loaded magazine inserted in the handgun.
This case was the product of an investigation by Homeland Security Investigations with assistance from the Tri-County Drug Enforcement Team, a High Intensity Drug Trafficking Area initiative task force. Assistant U.S. Attorney Karen Escobar prosecuted the case.
Mexican Mafia Associates Sentenced to Lengthy Prison TermsRead the Press Release
NEWS RELEASE SUMMARY – January 16, 2024
SAN DIEGO – Marquella Marshall and Marsha Delacruz were sentenced in federal court today to 180 months and 48 months in prison, respectively, for their parts in a methamphetamine distribution conspiracy that operated in San Diego jails.
According to court records, Marshall, a Texas resident who previously lived in San Diego, is an Eastside San Diego street gang member and a “facilitator” and “secretary” for the Mexican Mafia. In that role she was tasked by high-ranking Mexican Mafia members to communicate on their behalf, collect and launder money, handle drug transactions, and direct street operations on the Mafia’s behalf.
At today’s hearing, U.S. District Judge Larry Alan Burns described Marshall as “a conduit” for the Mexican Mafia and further described the distribution conspiracy as “an assault on the integrity of the prison system.”
U.S. Attorney Tara McGrath said: “Drug smuggling and use in prisons result in overdose, violence, and power struggles. These significant sentences are a strike against the prison drug culture which puts guards and staff at risk and exists in large part because of dangerous gangs like the Mexican Mafia.”
“Our focus is and always will be on protecting our communities from violent gang activity and the distribution of dangerous narcotics," said FBI San Diego Acting Special Agent in Charge John Kim. "This was a collective effort, and we thank our partners that make up the Violent Crime Task Force – Gang Group for their coordination in disrupting the illegal activities of the Mexican Mafia and ensuring Marshall and Delacruz suffer the consequences of their actions.”
Delacruz, of Lemon Grove, who also is an Eastside San Diego street gang member, worked at the direction of Marshall. As part of the conspiracy, Marshall, Delacruz, and others mailed methamphetamine to various locations, including jails and prisons in Southern California. Marshall and Delacruz disguised some of the narcotics-laden packages as legal mail to avoid detection by law enforcement and prison/jail officials.
Marshall, Delacruz, and several other Mexican Mafia associates were apprehended after an investigation by the FBI Violent Crimes Task Force - Gang Group.
DEFENDANTS Case Number 23-cr-00373-LAB
Marquella Marshall Age: 41 Houston, TX
Marsha Delacruz Age: 47 Lemon Grove, CA
SUMMARY OF CHARGES
Conspiracy to Distribute of Methamphetamine – Title 21, U.S.C., Sections 846 and 841(a)(1)
Maximum penalty: Life in prison, with a mandatory minimum of ten years (Marshall only), and $10 million fine
AGENCY
Federal Bureau of Investigation, Violent Crimes Task Force – Gang Group (VCTF-GG), which included investigators from the following agencies:
- Federal Bureau of Investigation
- San Diego Police Department
- Homeland Security Investigations
- Bureau of Alcohol, Tobacco, Firearms and Explosives
- California Department of Corrections
- San Diego County Sheriff’s Department
- Chula Vista Police Department
- National City Police Department
- Bureau of Prisons
- U.S. Postal Inspection Service
- San Diego District Attorney’s Office Investigations
Men imprisoned for dealing $500,000 of cocaineRead the Press Release
McALLEN, Texas – Three men have been ordered to federal prison for their roles in the distribution of over 40 kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Legal permanent resident Luis Jaime Escamilla, 50, originally from Mexico and residing there, Joel Otoniel Medina, 35, Penitas, and Andres Montalvo Jr., 38, Mission, each pleaded guilty June 16, 2023, to possession with intent to distribute five kilograms or more of cocaine.
Chief U.S. District Judge Randy Crane has now sentenced Escamilla and Medina to serve 66 and 46 months in federal prison, respectively, while Medina received 12 months and one day. Medina and Montalvo will be on supervised release for three years following their sentences, while Escamilla could face the loss of his legal status to reside in the country. At the hearing, the court considered the number of occasions they each engaged in narcotics trafficking and the role they had in furthering the distribution of drugs into the county. The court also heard that although each of these individuals had no criminal history, the danger this volume of drugs posed to the local community merited significant sentences.
Rigoberto Beltran-Garza, 42, Hidalgo, previously received 46 months in federal prison.
On four separate occasions from October 2021 to January 2022, Escamilla entered the United States via the Pharr Port of Entry. He then met with another vehicle in a public parking lot to transfer a black bag containing bricks of cocaine on each occasion.
Law enforcement then stopped the vehicles and identified Medina, Montalvo and Beltran. The three men each admitted they were being paid to transport the cocaine. In total, law enforcement seized 41 bundles, weighing over 44 kilograms with an estimated street value of approximately $500,000.
Escamilla has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility. Medina and Montalvo were permitted to remain on bond and voluntarily surrender at a later date.
Homeland Security Investigations conducted the investigation with the assistance of the Hidalgo County Sheriff’s Office. Assistant U.S. Attorney Lee Fry prosecuted the case.
Maryland United States Attorney’s Office Announces Supervisory AppointmentsRead the Press Release
Erek L. Barron, the United States Attorney for the District of Maryland, announced two new senior supervisory appointments. Alicia N. Washington is joining the office as Special Counsel to the United States Attorney, where she will advise the United States Attorney on matters across the office, especially within the Criminal Division, and on the office’s most complex and sensitive issues. Assistant U.S. Attorney John W. Sippel, Jr. has been appointed as the Coordinator of the Organized Crime Drug Enforcement Task Force’s (OCDETF) Mid-Atlantic Region, which covers Maryland, Delaware, Pennsylvania, Virginia, West Virginia and District of Columbia.
“I am pleased to make these appointments. The hiring of Alicia Washington and promotion of John Sippel adds greater depth of experience and perspective to our decision-making to better serve Marylanders and the mission of the Department of Justice,” said United States Attorney Erek L. Barron.
Ms. Washington joins the office from the international law firm Simpson Thacher & Bartlett LLP, where she has served as a litigation partner and member of the firm’s government and internal investigations practice. Prior to her private practice, she served as an Assistant United States Attorney in the Eastern District of New York’s Criminal Division, investigating and prosecuting public corruption, white collar, civil rights, violent crime, narcotics, money laundering, firearms, and child exploitation. Prior to joining the Eastern District of New York, Ms. Washington was an associate at Davis+Gilbert LLP and an associate at Simpson Thacher & Bartlett LLP. Ms. Washington also served as a law clerk for the Honorable Barbara M. G. Lynn of the United States District Court for the Northern District of Texas. Ms. Washington received her law degree from Columbia Law School and her undergraduate degree from Yale University with Honors.
John Sippel has served as an Assistant United States Attorney in the District of Maryland since February 2003, first in the Office’s Civil Division, where he handled civil defensive cases and assisted the Financial Litigation Unit, then transitioning to the Criminal Division’s Violent Crime Section (now the Violent Organized Crime Section or “VOC”) in July 2007. While serving in the VOC Section, Mr. Sippel has handled a variety of violent crime and drug-related matters, including large-scale narcotics investigations, firearms cases, carjackings, commercial robberies, and racketeering cases. In 2016, Mr. Sippel received the OCDETF National Award for the Mid-Atlantic Region for the investigation and successful prosecution of the Kedrick Jenifer Drug Trafficking Organization. He also serves one of the office’s Ethics Advisors. Mr. Sippel earned his law degree from the University of Baltimore School of Law and his undergraduate degree in Political Science from Loyola College in Maryland (now Loyola University Maryland). Prior to joining the Office, John was in private practice.
Ms. Washington and Mr. Sippel join a management team that includes, First Assistant United States Attorney Phil Selden; Executive Assistant United States Attorney Lillian N. Stewart; and Counsel to the United States Attorney, David I. Salem.
As First Assistant U.S. Attorney, Phil Selden helps manage the investigation and litigation of all criminal and civil cases brought on behalf of the United States. Mr. Selden began his career as an Assistant United States Attorney in 2010, investigating and prosecuting a wide variety of cases, including public corruption, white collar, national security, cybercrime, and violent crime matters. He has received awards from the Social Security Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and multiple Department of Justice Special Achievement Awards, and received the 2020 Homeland Security Investigations Prosecutor of the Year for his efforts in prosecuting domestic and international corruption. Before joining the Department of Justice, Mr. Selden worked in private practice handling complex commercial litigation and white collar matters on behalf of Fortune 500 companies. He began his career working with at-risk youth at the Philadelphia Family Court. Mr. Selden received his undergraduate degree from Georgetown University, magna cum laude, his Master’s Degree in Government Administration from the University of Pennsylvania and his Juris Doctor degree from Columbia Law School, where he was a Harlan Fiske Stone Scholar, a Tony Patiño Fellow, and a Paula Jewell Fellow. Mr. Selden has taught as an adjunct faculty member at University of Maryland School of Law, Howard University School of Law, Harvard Law School, and the George Washington University Law School.
Executive Assistant U.S. Attorney Lillian Stewart joined the office in March 2023 and oversees the Civil and Administration Divisions. Previously, Ms. Stewart served as the Executive Assistant United States Attorney for the United States Attorney’s Office for the Northern District of Texas; Assistant General Counsel handling civil litigation for the FBI General Counsel’s Office; and as an Assistant United States Attorney for the Central District of Illinois, where she worked in the Civil Division handling various affirmative and defensive civil matters including False Claims Act, Healthcare Fraud and Civil Rights investigations. Ms. Stewart earned her law degree from Vanderbilt University Law School, and her undergraduate degree in Political Science, magna cum laude, from the University of Tennessee.
David Salem was appointed as Counsel to the United States Attorney in January 2023, and has been an Assistant U.S. Attorney in the District of Maryland’s Greenbelt office since November 1990, serving first in the Civil Division before switching to the Criminal Division in 1994. Since then, Mr. Salem has tried more than 50 felony cases, focusing most recently in areas of white collar and national security matters and served as Senior Litigation Counsel and Collateral Litigation Chief. David also has trained law enforcement officers, prosecutors, defense bar and judges in Ashgabat, Turkmenistan; Kiev, Ukraine; Almaty, Kazakhstan; Tallinn, Estonia; Riga, Latvia; and Tbilisi, Georgia. He received his joint JD-MBA from the University of Maryland. David was the recipient of numerous Department of Justice and office awards, including the 2020 Deborah A. Johnston Award; the 2015 Department of Justice Award for Criminal Prosecution for United States v. Mikerin; the 2004 Gary Jordan Award; the 2004 Inspector General Integrity Award for contributions to health care fraud prosecutions; and the 1998 Chief Postal Inspector’s Award for United States v. Bosah.
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Marrero Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
NEW ORLEANS, LOUISIANA – TIMOTHY BLAYLOCK, age 51, of Marrero, La. was sentenced on January 10, 2024 after previously pleading guilty to possession with intent to distribute a quantity of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), announced U.S. Attorney Duane A. Evans. BLAYLOCK was sentenced to 104 months imprisonment, four years of supervised release, and a $100 mandatory special assessment fee.
According to court documents, BLAYLOCK’s vehicle was stopped by law enforcement, and a subsequent search of the vehicle resulted in the seizure of 449.7 grams of methamphetamine.
The case was investigated by agents from the Drug Enforcement Administration and the St. James Parish Sheriff’s Office. The prosecution of this case is being handled by Assistant United States Attorneys Rachal Cassagne and J. Benjamin Myers, both of the Narcotics Unit.
Lincoln Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Susan Lehr announced that Anthony Jermaine Branch, 42, of Lincoln, Nebraska, was sentenced on January 16, 2024, in federal court in Lincoln for possession with intent to distribute 50 grams or more of methamphetamine. Senior United States District Court Judge John M. Gerrard sentenced Branch to 132 months’ imprisonment. There is no parole in the federal system. After Branch’s release from prison, he will begin a 5-year term of supervised release.
On three occasions in October of 2022, a confidential informant working with the Lincoln/Lancaster County Drug Task Force bought meth from another person who was seen by investigators going into Branch’s apartment before making the deliveries. On a fourth occasion, the seller was seen meeting with Branch in a vehicle before making the delivery. A total of 142.38 grams of meth was obtained over the course of these four buys. Purity testing at the Nebraska State Patrol lab showed a total of at least 64 grams of actual methamphetamine.
On October 28, 2022, a search warrant was executed at Branch’s Lincoln apartment. Before the warrant was executed, Branch was seen leaving his apartment as the passenger in a vehicle. He was contacted at a convenience store and was found in possession of approximately 15 grams of meth and $480 in cash, $20 of which was later found to be Lincoln/Lancaster County Narcotics Task Force buy money. During the search of Branch’s apartment, investigators found an additional 131 grams of meth. Purity analysis showed at least 120 grams of actual meth. Investigators also found $3850 in cash, $760 of which was later found to be Task Force buy money.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Legal permanent resident sentenced after attempting to smuggle eight kilograms of cocaineRead the Press Release
McALLEN, Texas – A 53-year-old Mexican man has been sentenced following his conviction of importing cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Juan Mendoza pleaded guilty April 11, 2023.
U.S. District Judge Micaela Alvarez has now ordered Mendoza to serve 62 months in federal prison. He also faces loss of his legal status and possible removal proceedings. At the hearing, the court heard additional evidence that Mendoza had smuggled illegal narcotics on other occasions as well. In handing down the sentence, the court noted Mendoza’s key role in smuggling narcotics into the United States for further distribution.
At the time of his plea, Mendoza admitted he attempted to smuggle approximately eight kilograms of cocaine through the Donna Port of Entry.
On Nov. 6, 2022, Mendoza stated he had no illegal drugs in his vehicle when he arrived at the checkpoint. Authorities referred him to secondary inspection where they found two car batteries in the back seat.
Law enforcement examined the batteries and found them to contain eight packages of a white powdery substance, later determined to be cocaine with an approximate weight of eight kilograms. The drugs had an estimated street value of $100,000.
Mendoza will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Theodore Parran III and Daniel Chung prosecuted the case.
Justice Department Statements on District Court Decision to Block JetBlue’s Acquisition of Spirit AirlinesRead the Press Release
Today, the U.S. District Court for the District of Massachusetts blocked JetBlue Airways’ $3.8 billion dollar acquisition of Spirit Airlines. The court found that JetBlue’s proposed takeover of Spirit is unlawful because it “does violence to the core principle of antitrust law: to protect the United States’ markets – and its market participants – from anticompetitive harm.”
“Today’s ruling is a victory for tens of millions of travelers who would have faced higher fares and fewer choices had the proposed merger between JetBlue and Spirit been allowed to move forward,” said Attorney General Merrick B. Garland. “The Justice Department will continue to vigorously enforce the nation’s antitrust laws to protect American consumers. I want to thank the Antitrust Division for their excellent work on this case.”
“The Court’s decision today reaffirms that the antitrust laws vindicate the economic liberty of the American people,” said Principal Deputy Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “We are particularly encouraged by the court’s acknowledgement of the role of the Justice Department in protecting consumers ‘who otherwise would have no voice’ and the ‘forthrightness, civility, and zealous advocacy’ that ‘assisted the Court in reaching out for justice.’ I am incredibly proud of the Antitrust Division’s staff and our state law enforcement partners whose tireless work ensured another airline merger would not harm American travelers.”
The court’s decision follows a 17-day trial that began in October 2023. In March 2023, the Justice Department, California, Maryland, Massachusetts, New, Jersey, New York, North Carolina, and the District of Columbia sued to stop the merger under Section 7 of the Clayton Act.
Justice Department Announces Significant Milestone in Ongoing Policing Reforms for City of Baltimore and Baltimore Police DepartmentRead the Press Release
The Justice Department and the City of Baltimore filed a joint motion today seeking court approval to declare the city and the Baltimore Police Department (BPD) in full and effective compliance with key consent decree provisions related to the safe transportation of people in custody and officer assistance and support.
The joint motion is based on BPD’s consistent progress towards achieving the goals of the consent decree. The independent monitor’s recent report on Dec. 29, 2023, found BPD in full and effective compliance with both provisions. If the court grants the motion, BPD must maintain compliance with the provisions for one year before the court can terminate these sections of the consent decree.
“We are pleased the Baltimore Police Department has successfully implemented the reforms needed to safely transport detainees in its custody,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Injuries during transport have become extremely rare, and BPD now has in place the equipment, training, policies and practices to maintain this safety record. The Justice Department is committed to collaboratively working with the Baltimore Police Department and the community to ensure constitutional, fair and nondiscriminatory policing for all Baltimore residents. The citizens of Baltimore deserve nothing less.”
The Justice Department opened a comprehensive investigation of BPD practices in 2015 after considering requests from city officials and community members in the wake of the death of Freddie Gray. The city agreed to and the court approved a consent decree in 2017 to resolve deficiencies identified by the investigation, including transport practices that placed detainees at significant risk of harm.
Since approval of the consent decree, BPD has overhauled its fleet of transportation vehicles, safety equipment, data collection mechanisms, policies and training. BPD now closely tracks information about all transports, including any injuries suffered by detainees, and during the 17-month period assessed by the court-appointed independent monitor, there were only 11 reported injuries during over 16,000 transports. Key accomplishments include:
- Safe Transport Vehicles: BPD has overhauled its transport vehicles to outfit all with necessary safety equipment.
- Improved Video Recording Equipment: BPD has completed the installation of required video recording equipment and conducts and documents monthly inspections to confirm that the equipment is functioning.
- Proper Searches of Detainees: BPD has adopted policies that require searches of detainees by both the arresting officer and the transporting officer to protect the safety of the detainee during transport.
- Improved Data Collection: BPD has implemented a new records management system to streamline data collection, analysis and review. BPD now tracks important data, like whether a detainee reported an injury or medical distress, needed to be transported with individuals of the same sex or gender identity or required an accommodation for their medical equipment. The new software enables real time compliance assessment, which BPD can use to inform policy changes and identify training needs.
- Enhanced Auditing: BPD has developed an audit process to examine transport of detainees. The audit unit reviews the documentation and video recordings to determine the transporting officer’s compliance with policy. Violations of BPD policy constitute misconduct and result in referrals to BPD’s internal affairs unit for investigation.
BPD has also devoted significant resources to officer assistance and support, another area found to be deficient in the department’s investigation, including creating an Officer Safety and Wellness Section within BPD, partnering with an employee assistance program to provide mental health and wellness servicers for officers and their families and establishing a network of peer support teams within BPD. Over the past few years, more than 10% of officers have consistently used the employee assistance program, with 31% using it in 2021.
The consent decree, as well as additional information about the Civil Rights Division, are available on its website at www.justice.gov/crt/special-litigation-section-cases-and-matters.
Jury Convicts Drug Dealer of a Controlled Substance Conspiracy, Distribution and Possession of a Controlled Substance, and Possession of Firearm and Ammunition by a Convicted FelonRead the Press Release
MIAMI – On Jan. 10, a Fort Lauderdale jury found Chad Michael Marlow, 46, of Pompano Beach, Florida, guilty of conspiracy to distribute a controlled substance, distribution of a controlled substance, possession with the intent to distribute a controlled substance, and of being a felon in possession of a firearm and ammunition.
During the three-day trial, the government put on evidence that showed that Marlow was recorded on two occasions selling a quarter pound and a pound, respectively, of methamphetamine to an undercover Drug Enforcement Administration (DEA) agent in the parking lot of a Broward County shopping plaza. In the recordings, Marlow could be heard discussing at length the great quality of the product and the fact that he used it for his back and hip pain.
Marlow and his partner agreed to sell the undercover agent one pound of methamphetamine at a third planned deal, but when Marlow and his partner arrived at the shopping plaza, law enforcement conducted an arrest. Law enforcement searched the vehicle Marlow was driving and found an unzipped backpack immediately behind the driver’s seat of the vehicle –sitting at the top of the backpack was a loaded handgun and an extra loaded magazine and in the bottom of that backpack they found a pound, or nearly 1,000 pills, of fentanyl segregated into dealing sized baggies, methamphetamine, and cocaine, as well as a bank card bearing Marlow’s name. Law enforcement also found a pound of methamphetamine in a lunch cooler sitting on the front passenger seat of the vehicle.
Marlow is scheduled to be sentenced on April 4, 2024, before U.S. District Judge William P. Dimitrouleas.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Deanne L. Reuter of DEA Miami Field Division made the announcement.
DEA Miami Field Division conducted the investigation. The case is being prosecuted by Assistant U.S. Attorneys Emily R. Stone and Brooke E. Latta.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-60202.
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Indian River traffickers of methamphetamine and fentanyl sentenced to federal prisonRead the Press Release
MIAMI – On Jan. 12, two Indian River County men were sentenced to federal prison for drug trafficking.
Beginning in July of 2022, the Indian River County Sheriff’s Office (IRCSO) and Drug Enforcement Administration (DEA) carried out an undercover operation to combat illicit drug trafficking by purchasing cocaine, methamphetamine, fentanyl, and other illegal substances in Indian River County. During this law enforcement operation, an undercover officer was used to conduct the controlled buys. Between July 2022 and April 2023, Lawrence Oliver Irving II, 38, distributed over six ounces of methamphetamine and 47 grams of fentanyl, and Tyrell Murry Bennett, 37, distributed or possessed with the intent to distribute, over a kilogram of methamphetamine and 75 grams of fentanyl, to an undercover officer.
Irving previously pled guilty to participating in a conspiracy to distribute methamphetamine, and distribution of methamphetamine. Irving was sentenced to 215 months in prison. Bennett previously pled guilty to participating in a conspiracy to distribute methamphetamine and fentanyl, and distribution of methamphetamine and fentanyl. Bennett was sentenced to 150 months in prison. U.S. District Judge Robin L. Rosenberg also ordered that each sentence be followed by 5 years of supervised release.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the DEA, Miami Field Division, and Sheriff Eric Flowers of the IRCSO, announced the sentences imposed.
DEA Miami and IRCSO investigated the case. Assistant U.S. Attorney Michael D. Porter and former Assistant U.S. Attorney Diana Acosta prosecuted it.
Fentanyl is a synthetic opioid that is up to 50 times stronger than heroin and 100 times stronger than morphine. Even in small doses, fentanyl can be deadly. As little as two milligrams, about the size of 5 grains of salt, can be fatal. According to the Centers for Disease Control and Prevention (“CDC”), fentanyl and other synthetic opioids are the most common drugs involved in overdose deaths. Over 150 people die every day from overdoses related to synthetic opioids like fentanyl. The State of Florida has also seen an exponential increase in overdoses associated with fentanyl. For more information visit https://www.cdc.gov/opioids/basics/fentanyl.html# and https://www.dea.gov/factsheets/fentanyl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-CR-14021.
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Illinois Man Accused of Seeking to Arrange Florida MurderRead the Press Release
CAPE GIRARDEAU – A man from Illinois appeared in U.S. District Court in Cape Girardeau Tuesday to face a criminal complaint that accuses him of trying to hire someone to kill a business associate in Florida.
Ben Patrick Mullavey, 64, of Mechanicsburg, in Sangamon County, was charged with one felony count of use of interstate commerce facilities in the commission of murder-for-hire.
A criminal complaint and affidavit filed Tuesday accuses Mullavey of offering up to $10,000 for the murder of the Florida man. Mullavey claimed the man owed him $200,000 and a lawsuit over the money was not going well, the charging documents say.
The affidavit says the man Mullavey allegedly tried to hire began working with the FBI on January 3, after meeting with Mullavey in Sikeston, Missouri and hearing about his plans. Mullavey would eventually discuss the manner of the murder and supply the name and description of his business partner, a Florida license plate to help the hit man blend in, a crossbow and arrows, expense money, a $1,000 “prepayment” and directions to the restaurant next to the target’s wine bar, the affidavit says.
The murder-for-hire charge is punishable by up to 10 years in prison, a $250,000 fine or both.
Charges set forth in a criminal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The FBI investigated the case. Assistant U.S. Attorney Christopher Shelton is prosecuting the case.
Huntington Man Pleads Guilty to Straw Purchase CrimeRead the Press Release
HUNTINGTON, W.Va. – Maximillian Keaton, 51, of Huntington, pleaded guilty today to aiding and abetting making false statements in acquisition of firearms.
According to court documents and statements made in court, on February 22, 2023, Keaton traveled with Daniel Lee Ferguson to a Barboursville business where Ferguson purchased for Keaton a Springfield Armory model Hellcat 9mm pistol. Keaton admitted that he asked Ferguson to buy the firearm for him because his prior felony conviction prohibits him from purchasing or possessing a firearm. Keaton further admitted that he showed Ferguson the firearm he wanted him to buy and provided Ferguson with the money for the purchase.
Ferguson falsely certified on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Records Form 4473 that he was the buyer of the firearm when Ferguson knew he was purchasing it for Keaton.
Keaton further admitted that Ferguson purchased two other firearms for him at Cabell County businesses, a Bersa model Thunder 380 .380-caliber pistol on August 14, 2019, and a Springfield Armory model Prodigy 9mm on February 25, 2023. Ferguson falsely certified on the ATF Form 4473 for each purchase that he was the buyer of the firearm when he knew he was purchasing it for Keaton.
Keaton is scheduled to be sentenced on May 20, 2024, and faces a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine.
Ferguson, 45, of Huntington, pleaded guilty on October 23, 2023, to making false statements in acquisition of firearms and awaits sentencing.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting the case.
This case was prosecuted under the criminal provisions of the Bipartisan Safer Communities Act (BSCA), which Congress enacted and the President signed in June 2022. BSCA is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-151.
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Honduran National Charged with Illegal Re-Entry of Removed AlienRead the Press Release
NEW ORLEANS, LOUISIANA – CESAR A. LOBO-RAMOS, age 37, a native of Honduras, was indicted on January 11, 2024, for illegal re-entry of a removed alien, in violation of Title 8 United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans.
According to the indictment, LOBO-RAMOS reentered the United States after being previously deported on April 10, 2018. If convicted, LOBO-RAMOS faces up to 2 years of imprisonment, 1 year of supervised release, up to a $250,000 fine and $100 mandatory special assessment fee. He also faces a sentencing enhancement of up to 20 years, because of a 2010 felony sexual battery conviction in Jefferson Parish.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement agency and the Kenner Police Department in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Helena man suspected of threatening to attack Helena Public Schools building admits to illegally possessing homemade bombs, silencerRead the Press Release
GREAT FALLS — A Helena man today admitted to illegally possessing homemade bombs and a silencer after being accused of attempting to attack a Helena Public Schools building, U.S. Attorney Jesse Laslovich said.
Logan Sea Pallister, 25, pleaded guilty to possession of unregistered destructive devices and to possession of an unregistered silencer. Pallister faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release on each charge.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for May 22. Pallister was detained pending further proceedings.
The government alleged in court documents that in May 2022, the Helena Police Department received information from an individual that Pallister possessed multiple bombs, had access to multiple firearms and had been making threats of committing an attack at a local high school. The person also indicated that Pallister discussed a desire to commit a Columbine-style attack at the high school and planned to use pipe bombs in addition to firearms. Further, Pallister had shown the individual numerous firearms and a large amount of ammunition that he kept in his car and had purchased a black trench coat and the same type of duffle bag used by the shooters in the attack at Columbine High School. The government also alleged that Pallister showed the individual a small propane cannister with a fuse sticking out of one end that he had retrieved from his car and had told the person it was a bomb he had made. Pallister also threatened to kill the individual if the person told anyone about the device. The individual reported the encounter to law enforcement.
On May 31, 2022 at about 4 a.m., police officers arrested Pallister as he was walking toward his car from his residence, wearing a black trench coat and carrying a bag. During a search of Pallister, officers found eight firearms that were concealed on his person. Law enforcement served search warrants on his home and car. In Pallister’s car, officers found nine additional firearms, numerous rounds of ammunition, loaded magazines, firearm accessories, a Fram oil filter that appeared to have been modified to function as a homemade silencer and a green ammunition can that contained four suspected homemade pipe bombs. In Pallister’s residence, officers found additional firearms and ammunition, firearm components, money order documents, receipts and online orders related to chemicals, suspected chemical precursors for making explosives and a suspected homemade explosive mixture known as flash powder.
A Bureau of Alcohol, Tobacco, Firearms and Explosives expert examined the pipe bombs, determined that they contained an explosive mixture that, when ignited, would result in an explosion, and concluded the four pipe bombs were destructive devices. An examination of the Fram oil filter found it had a threaded adapter attached to one end, multiple rounds had been previously fired through it and that it was intended to diminish the sound of a firearm, making the device a silencer. The suppressor and destructive devices were not registered as required by law and their possession is a violation of federal firearms laws.
Assistant U.S. Attorney Jeffrey K. Starnes is prosecuting the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Helena Police Department, Lewis & Clark County Sheriff’s Office and Lewis & Clark County Attorney’s Office.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Haitian National Sentenced to 30 Months in Federal Prison for Illegal Reentry After Deportation by an Aggravated FelonRead the Press Release
Fort Myers, Florida – United States District Judge Sheri P. Chappell has sentenced Augustin Desgrange (51, Haiti) to 30 months in federal prison for illegal reentry into the United States after deportation by an aggravated felon. Desgrange had pleaded guilty on October 24, 2023.
According to court documents, on April 13, 2015, Desgrange was convicted of illegal reentry after deportation by an aggravated felon and aggravated identity theft. His status as an aggravated felon stems from a 1998 state conviction for possession of cocaine with intent to distribute. Desgrange has previously been deported from the United States to Haiti on two occasions.
This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE-ERO). It was prosecuted by Assistant United States Attorney Patrick L. Darcey.
Grand jury indicts Columbus man for committing 2 armed robberies against U.S. postal carriersRead the Press Release
COLUMBUS, Ohio – A Columbus man was indicted and arrested for federal crimes related to armed robberies of United States postal carriers.
Anthony J. (“AJ”) Williams, 19, was arrested yesterday in Pittsburgh and will make his initial appearance there today. He is charged with conspiring to commit an offense against the United States, aggravated robbery of property of the United States, and using a firearm during a crime of violence.
According to the indictment, in November and December 2022, Williams robbed two postal carriers of their service keys. Williams allegedly brandished a Glock 19 firearm at the first victim and wounded the second victim by punching him in the face.
The four-count indictment details that Williams allegedly conspired with at least four other individuals to rob postal service employees of their service keys to access USPS “blue boxes” and steal checks and money orders.
Specifically, it is alleged that on Nov. 9, 2022, Williams committed an armed robbery against a postal carrier on Michigan Avenue in Columbus. Williams allegedly received $2,000from co-conspirators for stealing the carrier’s service key.
On Christmas Eve in 2022, Williams allegedly punched a Canal Winchester postal carrier who was working on Kodiak Drive and threatened to kill him if he did not turn over his postal service key.
Brandishing a firearm during a crime of violence is punishable by at least seven years and up to life in prison. Aggravated robbery of government property carries a potential penalty of up to 25 years in prison. Conspiring to commit an offense against the United States is punishable by up to five years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Lesley Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS), announced the charges. Assistant United States Attorney Noah R. Litton is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Grand jury indicts 5 Dayton individuals in narcotics conspiracy resulting in deathRead the Press Release
DAYTON, Ohio – Five Dayton individuals have been charged federally in a narcotics conspiracy that allegedly resulted in at least one overdose death and one serious bodily injury.
Those charged include:
Name
Also known as
Age
Ricardo Busbee
Cardo
33
Torrence Busbee
Woody
30
Demarion Galloway
Duke
28
Dalaquan McGuire
Rico
26
Doretha Hughes
27
In summer 2023, local and federal law enforcement began investigating a significant increase in drug overdoses that had occurred within a six-block radius in Dayton.
According to the 10-count indictment, the defendants conspired to possess with intent to distribute fentanyl, methamphetamine and cocaine. They allegedly possessed and distributed methamphetamine at a premises where a minor resided.
It is also alleged that on July 27, 2023, Ricardo Busbee and Hughes distributed a mixture of fentanyl and cocaine that caused an overdose death. The drug combination also allegedly caused serious bodily injury to another individual.
Ricardo and Torrence Busbee are also charged with illegally possessing firearms as previously convicted felons.
All the defendants are charged with possessing firearms in furtherance of drug trafficking crimes. They allegedly possessed at least 14 guns that they kept in a storage unit and at residences on Laura and Basswood avenues.
Due to the allegation that death and serious bodily injury resulted from the drug conspiracy, if convicted, the defendants face a punishment of at least 20 years and up to life in prison.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, and gangs that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration (DEA); and Dayton Police Chief Kamran Aftal announced the charges that were unsealed on Jan. 12 and commended the cooperative investigation with the assistance of partner agencies including Huber Heights, Trotwood, Springfield and Bellefontaine police departments, Miami County and Montgomery County sheriff’s offices, the FBI, United States Marshals and Ohio Adult Parole Authority. Assistant United States Attorneys Amy M. Smith and Kelly K. Rossi are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Fugitive Investment Firm Operator Indicted for Running $100 Million Ponzi SchemeRead the Press Release
DETROIT - The operator of a supposed foreign exchange trading firm has been indicted on eleven counts of wire fraud and one count of money laundering in connection with his alleged operation of a Ponzi scheme that stole $100 million from investors, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the Detroit Field Division of the Federal Bureau of Investigation, and Charles Miller, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service, Criminal Investigation Division.
Darren Anthony Robinson, 53, is a U.S. citizen who previously operated out of the country of Panama. After he was previously charged in a criminal complaint in this matter and released on bond, Robinson is alleged to have improperly removed his GPS tether and become a fugitive. Robinson is currently wanted on an arrest warrant issued by the United States District Court for the Eastern District of Michigan. Individuals with information regarding Robinson’s whereabouts are encouraged to contact the FBI at 1-800-Call-FBI (1-800-225-5324), your local FBI office, the nearest American Embassy or Consulate, or submit a tip online at tips.fbi.gov.
- local FBI office
- nearest American Embassy or Consulate
- www.tips.fbi.gov
According to the indictment and other court records, Robinson operated a supposed trading firm known as “QYU,” which was located in Panama and the Cayman Islands. QYU represented to investors that it was consistently generating stellar investment results. For example, in one QYU document, the firm claimed that a $100,000 investment into its fund in 2014 would have grown to over $2 million by 2021. That same document claimed the fund did not have a single losing month over that same period. QYU investors were promised guaranteed returns and told the firm was only paid on trading profits, not investor principal.
It is alleged that QYU was simply a Ponzi scheme and investor funds were largely not used for trading activity. Instead, new investor funds were used to pay other investor distributions, cover QYU business expenses, compensate QYU employees, and fund Robinson’s lifestyle. QYU investors were provided with false account statements and fictious trading data. Court records indicate that QYU obtained an estimated $100 million from investors.
Law enforcement has identified many apparent QYU investors from southeast Michigan. Potential victims are encouraged to contact the Federal Bureau of Investigation at www.fbi.gov/QYU_holdings_victims (Please note that the link to the website is case sensitive).
“Our resolve is to bring Darren Robinson to account for his alleged multimillion-dollar Ponzi scheme with victims around the world,” said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. “I would like to thank the Internal Revenue Service, Criminal Investigation Division, our international partners, and all the law enforcement agencies dedicated to achieving justice in this case. Investment fraud can be crippling for its victims, and the FBI is committed to identifying and working with anyone impacted by Robinson’s scheme.”
An indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The defendant faces up to twenty years in prison on each charge of wire fraud and up to 10 years in prison on the charge of money laundering.
The case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service—Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorney Andrew J. Yahkind.
Fresno Woman Sentenced to Prison for Bank Fraud and Identity TheftRead the Press Release
FRESNO, Calif. — Bobbi Jo Heiss, 37, of Fresno, was sentenced today to seven years in prison for bank fraud and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between August 2020 and September 2021, Heiss engaged in a scheme to steal debit cards, checks, identity documents, and banking information in order to make fraudulent purchases, cash checks, and open unauthorized lines of credit. The scheme caused at least $250,000 in actual and attempted loss during a year-long period. For example, as part of the scheme, on April 30, 2021, Heiss presented a check for $57,767 to a car dealership in Fresno with the name and driver’s license number of an identity theft victim in order to purchase a 2017 truck.
This case was the product of an investigation by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Fresno County Sheriff’s Office - Elder Abuse Unit. Assistant U.S. Attorney Henry Z. Carbajal III prosecuted the case.
Fresno Man Pleads Guilty to Passport Fraud by Assuming the Identity of a Deceased ChildRead the Press Release
FRESNO, Calif. — Kenneth Laitman aka John Rodman, 79, of Fresno, pleaded guilty today to passport fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in 1984, Laitman left his job as a stockbroker in New York and moved to California where he assumed the identity of John Rodman and worked at an endoscopy practice. The actual John Rodman died in 1950 at the age of four.
Laitman subsequently obtained various forms of identification, worked different jobs, opened bank accounts, received government benefits, and took other actions while falsely using Rodman’s identity. This included a U.S. Passport that he obtained in 2004 and used to travel overseas on multiple occasions. He was convicted of attempting to renew that passport.
This case is the product of an investigation by the U.S. Department of State’s Diplomatic Security Service, the Social Security Administration Office of Inspector General, and the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
Laitman is scheduled to be sentenced on April 29, 2024. He faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Fort Pierce armed robbers sentenced to federal prisonRead the Press Release
MIAMI – On Jan. 12, two Fort Pierce armed robbers were sentenced to federal prison after pleading guilty to Hobbs Act robbery and brandishing a firearm during a crime of violence.
Eugene Jacques, 21, was sentenced to 121 months of prison, and Roderick Anthony Baker, 23, was sentenced to 87 months of prison. U.S. District Judge Robin L. Rosenberg also ordered that each of the sentences be followed by three years of supervised release.
On April 24, 2023, around 5:54 a.m., the Fort Pierce Police Department (FPPD) received a 911 call to report an armed robbery at a gas station and food mart on Orange Avenue in Fort Pierce, Florida. Law enforcement officers responded to the scene and interviewed the victim of the robbery. The victim advised that Jacques and Baker entered the gas station and food mart and looked around as if they were shopping. Jacques approached her and asked for Advil pills and then waived a small purple and black handgun. Jacques pushed his way into the glass enclosure while Baker followed him. Jacques pointed the handgun at the victim’s face, struck her in the head, and said “Give me the money.” After forcing the victim to open the cash register, Jacques and Baker took about $2,000 and placed the money in a plastic bag they had brought with them. Jacques and Baker also stole a small box containing about $2,200 and fled.
Law enforcement officers arrested Baker and Jacques on May 1, and May 4, 2023, respectively.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, and FPPD Chief Diane Hobley-Burney, announced the sentences imposed by Judge Rosenberg.
ATF Fort Pierce Field Office and FPPD investigated the case. Assistant U.S. Attorney Michael D. Porter prosecuted it.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement, and the community, to develop effective, locally based strategies to reduce violent crime.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-14027.
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Former high school teacher sentenced to 20 years in prison for exploiting minors by taking ‘upskirt’ videos at school & in other public placesRead the Press Release
COLUMBUS, Ohio – A former local high school teacher was sentenced in U.S. District Court today to 240 months in prison for crimes related to secretly recording explicit videos of his students at school and possessing child sexual abuse material.
Justin Foley, 48, of Delaware, Ohio, pleaded guilty in May 2023 to sexually exploiting a minor and possessing child pornography.
Foley was employed as a chemistry teacher at Columbus Alternative High School at the time of his offenses. He used his cell phone and other digital media devices in a hidden manner to capture the genitalia of his female students under their skirts and shorts during the school day.
According to court documents, in August 2022, the Delaware Police Department received CyberTip reports from the National Center for Missing and Exploited Children (NCMEC) regarding numerous images of apparent child sexual abuse material that were uploaded via Google email accounts. Investigators tracked the IP addresses for the reported email accounts to Foley. During the investigation into Foley, officers discovered a second CyberTip report. Five of the IP addresses in the second report belonged to Columbus Public Schools.
Delaware County law enforcement officials executed a search warrant at Foley’s residence on Sept. 20, 2022. Court documents detail that Foley admitted to creating videos in the classroom and hallways of the school at which he taught and that he had created some of these videos as recently as the previous week.
A review of Foley’s devices by the FBI revealed they contained numerous videos that were voyeuristic in nature and appear to have been self-produced. The videos were recorded at the high school Foley worked at, local department stores in central Ohio, public areas of downtown Delaware, Ohio, and various dressing rooms at different unidentified locations. It is apparent from the videos that the victims depicted in them did not know they were being recorded.
Foley created numerous videos of female students in the hallways of Columbus Alternative High School or of females that were students in his classroom. In the videos he secretly recorded, Foley would hide his phone camera or place it beside or behind the victims in attempt to record up their skirts or shorts. Foley then took screenshots from the content he filmed of his victims and created still images of the victim’s nude genitalia, zooming in and “lightening” some of the screenshots to enhance the images.
In addition to the videos he created himself, more than 1,000 images of child sexual abuse material were recovered from Foley’s devices that depicted a series of images of prepubescent females in various stages of nudity or fully nude exposing their genitals or anus to the camera.
Foley was arrested and charged locally in Delaware County in September 2022. He was charged federally in November 2022.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Westerville Police Chief Charles Chandler; Delaware Police Chief Adam Moore; Delaware County Prosecutor Melissa A. Schiffel; and other members of the FBI’s Child Exploitation and Human Trafficking Task Force announced the sentence imposed today by U.S. District Judge Michael H. Watson. Assistant United States Attorneys Jennifer M. Rausch and Emily Czerniejewski are representing the United States in this case.
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Former West Virginia Coal Broker Pleads Guilty to Obstructing the IRSRead the Press Release
A former coal broker pleaded guilty today in North Carolina to attempting to obstruct an IRS audit and criminal investigation.
According to court documents and statements made in court, Vondie Brunty owned and operated West Star Management Inc. (WSM), a company that, from 2005 to 2015, co-owned a coal brokerage business. Despite earning taxable income in 2010 through 2013, Brunty did not file individual income tax returns for those years, nor did he report income earned by WSM. Brunty late-filed his 2014 and 2015 tax returns in 2021, after learning he was under criminal investigation by the IRS. Those returns, however, were false, omitting $240,000 and $108,000 of income, respectively. Additionally, on at least four occasions between 2015 and 2020, in an effort to conceal his income, Brunty provided a false social security number to companies that paid him, causing the companies to report inaccurate information to the IRS.
When the IRS civilly audited Brunty’s unfiled personal and corporate returns, he knowingly made multiple false and misleading statements, claiming that he had paid an accountant to prepare WSM’s returns and that he never owed any taxes. Similarly, Brunty falsely told IRS criminal investigators that WSM’s tax returns had been prepared each year. In total, Brunty caused a tax loss to the IRS of $204,231.
Brunty faces a maximum penalty of three years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Ashley Stein and Kevin Schneider of the Tax Division are prosecuting the case.
Former Nurse Pleads Guilty to Tampering with OxycodoneRead the Press Release
BOSTON – A former nurse has pleaded guilty to tampering with liquid oxycodone syringes at a local rehabilitation center.
Jaclyn McQueen, 44, of Dedham, pleaded guilty on Jan. 5, 2024 in federal court in Boston to one count of tampering with a consumer product. U.S. District Court Judge Julia E. Kobick scheduled sentencing for April 4, 2024. McQueen was charged by Information on Dec. 7, 2023.
McQueen was employed as a registered nurse at a rehabilitation center in Dedham that provided long-term chronic and post-acute care to patients. In her capacity as a nurse, McQueen had access to oxycodone, a Schedule II narcotic, prescribed to patients at the rehabilitation center. From approximately February through May 2020, she removed liquid oxycodone from syringes intended for use by patients, consumed the oxycodone herself and refilled the syringes with saline to avoid detection. McQueen returned the diluted syringes to the medication carts where they could have been administered to patients.
The charge of tampering with a consumer product provides a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Fernando McMillan, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; and Robert H. Goldstein, MD, PhD, Commissioner of the Massachusetts Department of Public Health made the announcement. Assistant U.S. Attorney Kelly Begg Lawrence, Chief of the Health Care Fraud Unit, is prosecuting the case.
Former New Bedford Man Pleads Guilty to Wire Fraud and Money Laundering Arising from "Romance Scam"Read the Press Release
BOSTON – A former New Bedford man pleaded guilty today to wire fraud and money laundering charges involving funds obtained from “romance scam” victims.
Chukwunonso “Douglas” Umegbo, a/k/a James Abbott, a/k/a Michael Philips, a/k/a Richard Armani, 38, pleaded guilty to six counts of making a false statement to a bank, two counts of wire fraud and one count of money laundering. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for April 4, 2024. Umegbo was arrested in London in April 2022 and extradited to the United States in February 2023. He has remained in federal custody since. Umegbo was indicted by a federal grand jury in February 2021.
Between no later than 2018 through at least 2019, Umegbo opened bank accounts in the greater Boston area using fake identity documents. The bank accounts were used to receive fraudulently obtained funds from a number of victims of romance scams, in which perpetrators create fictitious online personas to develop online romantic relationships with individuals in the U.S., and then leverage those relationships to obtain money and/or property. Once the fraudulently obtained funds reached the accounts controlled by Umegbo, Umegbo withdrew the money in cash, used the funds to purchase cashier’s checks, or spent the money on personal purchases. Altogether, the fraudulent accounts received more than $560,000.
The charge of making a false statement to a bank provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of $1 million. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss from the scheme, whichever is greater. The charge of money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000, or twice the value of the criminally derived property. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. The Justice Department’s Office of International Affairs provided valuable assistance in securing the arrest and extradition from the U.K. of Umegbo. Assistant U.S. Attorneys Kristen A. Kearney and Leslie A. Wright of the Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Former First Grade Teacher Admits to Asking Minors for Explicit Images on SnapchatRead the Press Release
EAST ST. LOUIS, Ill. – A former elementary school teacher appeared in federal court Thursday to plead guilty to soliciting child sexual abuse material (CSAM) from minors.
Jonathan C. Villmer, Jr., 25, of New Baden, Illinois, was charged via criminal complaint in August 2023. Prior to his charge, Villmer was a teacher at New Baden Elementary School and coached girls’ sports teams for Wesclin Community Unit School District 3.
“We know child predators lurk in our communities, but it’s especially disturbing when a former first grade teacher and coach admits to asking minors for inappropriate images,” said U.S. Attorney Rachelle Aud Crowe. “I highly commend the several law enforcement departments who contributed to this investigation and identified an extremely dangerous individual working directly with minors.”
The case was initiated by an otherwise unrelated investigation by the Carmi Police Department regarding the distribution of CSAM. The investigation led law enforcement officers to a Snapchat account soliciting CSAM connected to Villmer.
According to court documents, after obtaining a search warrant for Villmer’s Snapchat account, police discovered explicit conversations with a 13-year-old minor. Villmer asked the minor for the “sexiest images,” discussed having sex and taking the minor’s virginity, and requested photographs of her genitals. Law enforcement identified other occurrences of sexually explicit conversations and requests for images with other purported minors within Villmer’s Snapchat account.
Based upon IP address records associated with the Snapchat account, law enforcement connected the account to Villmer. On Aug. 18, 2023, law enforcement executed a search warrant on Villmer’s New Baden residence and seized two cell phones and other electronic devices. Villmer was arrested on scene.
“The importance of this case and guilty plea cannot be overstated. Investigations involving the exploitation of children are horrible, but it is particularly troubling when the accused occupies a position of public trust and seeks to exploit the most vulnerable in our society,” said HSI Chicago Special Agent in Charge Sean Fitzgerald. “HSI will continue to work closely with our local, state and federal partners to bring those who would sexually exploit children to justice.”
Villmer’s sentencing is scheduled for April 24, 2024 at 1:30, and his charge carries a minimum of 5 years, and a maximum of up to 20 years’ imprisonment.
Homeland Security Investigations is conducting the investigation with support from the New Baden and Carmi Police Departments, and the Jefferson County and Clinton County Sheriffs’ Departments. Assistant U.S. Attorney Ali Burns is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
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Former Executive Director of victim advocacy organization convicted of two counts of wire fraudRead the Press Release
Tacoma – The former Executive Director of the Washington Coalition of Crime Victim Advocates (WCCVA) was convicted today of two counts of wire fraud following a six-day jury trial. Cody Benson, 51, formerly of Olympia, Washington, was indicted in July 2021 for her scheme to falsely claim Washington State public grant funding for work that was never done. Jurors deliberated about eight hours before returning the guilty verdicts. U.S. District Judge Benjamin H. Settle scheduled sentencing for April 8, 2024, at 1:30 p.m.
According to records filed in the case, Benson was the head of an Olympia-based non-profit organization that was tasked with training advocates to assist crime victims. In 2013, the legislature appropriated money for this work with a grant administered through the Washington State Attorney General’s Office. Between 2015 and 2017, Benson submitted fraudulent invoices for reimbursement under the grant. She submitted bills for training events that were never held or supplies that were never purchased. In early 2016, she moved away to Italy, yet in the ensuing years, she repeatedly told representatives of the Attorney General’s Office that she was in Washington State doing various outreach and other work. Those representations were false.
By the end of the scheme, WCCVA had only two employees: Benson and her son. The Washington State Attorney General’s Office became concerned about WCCVA’s performance under the grant in early 2018 and began investigating. Benson returned just over $50,000 to the state, but other funds were not recovered. The grant payments ceased, and WCCVA is defunct.
In all, prosecutors argued that WCCVA obtained almost $180,000 from Benson’s false invoices, and that Benson herself obtained approximately $257,000 in net salary and other benefits such as health insurance, retirement plan contributions, and health reimbursement account contributions during the fraudulent scheme.
The case was investigated by the FBI. The case is being prosecuted by Assistant United States Attorneys Philip Kopczynski and Yunah Chung.
Former Employee and Co-Conspirator Sentenced for Embezzling over $270,000 from WFYI Public MediaRead the Press Release
INDIANAPOLIS- Alicia Wilson, 37, of Indianapolis, has been sentenced to three years’ probation, with the first 15 months on home detention, and ordered to pay $270,876 in restitution after pleading guilty to conspiracy to commit wire fraud.
In April of 2023, Mindi B. Madison, 53, of Indianapolis plead guilty to conspiracy to commit wire fraud and was sentenced to three years’ probation and also ordered to pay $270,876 in restitution.
According to court documents, Wilson and Madison conspired together to embezzle funds from WFYI (“WFYI”) Public Media into their personal checking accounts.
Madison began working as an Accounting Specialist for WFYI in January 2018. WFYI was owned and operated by Metropolitan Indianapolis Public Media, Inc., and provided television and radio programming throughout Central Indiana. Madison’s co-conspirator, Wilson, was neither an employee nor a vendor of WFYI.
As an Accounting Specialist, Madison had access to WFYI’s accounting software, and was trusted to present legitimate expenses, claims, invoices, and supporting documentation along with the unsigned WFYI checks to employees at WFYI who had signature authority for their approval and signature. Instead of presenting legitimate claims that arose out of WFYI’s legitimate business expenses for signature and payment, Madison abused her position of trust, and presented at least 156 fake claims and invoices for payment. In effort to conceal the theft from WFYI and their banking institutions, Madison and Wilson agreed that Madison would falsify invoices using versions of Wilson’s name and businesses connected to her.
Madison tendered WFYI checks to Wilson, and they agreed that Wilson would then deposit the checks into her bank accounts. Wilson then withdrew Madison’s portion in cash, and they split the illegal proceeds. Both Madison and Wilson used WFYI’s stolen funds for their own personal expenditures including but not limited to, rent, restaurants, groceries, fuel, and utilities.
In total, the pair embezzled approximately $270,876 from WFYI before the theft was discovered. Wilson’s participation in the scheme made it virtually impossible for WFYI to detect the theft.
“Complex economic crimes such as these devastate the finances and security of businesses and individuals. The defendants’ theft deprived WFYI of hundreds of thousands of dollars intended for public service and educating the community,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Our office will continue to work with the FBI to identify and prosecute individuals who scheme and steal to satisfy their own greed.”
The FBI investigated this case. The sentences were imposed by U.S. District Court Judge Sarah Evans Barker.
U.S. Attorney Myers thanked Assistant United States Attorney Tiffany J. Preston, who prosecuted this case.
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Former Credit Union Employee Sentenced in Austin for EmbezzlementRead the Press Release
AUSTIN, Texas – A Georgetown woman was sentenced in a federal court in Austin to 41 months in prison for embezzlement by a credit union employee.
According to court documents, Tracy Mikulencak, 44, embezzled approximately $144,000 from her teller drawer and the vault while working at A+ Federal Credit Union. A+ auditors also revealed that Mikulencak had made unauthorized withdrawals from customer accounts, including a deceased account holder. In total, Mikulencak embezzled $325,708 from the credit union. In addition to her imprisonment, Mikulencak was also ordered to pay $302,668 in restitution.
“The excellent investigative work by our partners at the FBI and the Georgetown Police Department unraveled a scheme by a trusted credit union employee to steal hundreds of thousands of dollars from the credit union and its members,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “These crimes strike at the heart of our banking system. Those entrusted with customer funds must be held to the highest standards of honesty and integrity. The judge's sentence in this case affirms the commitment of the U.S. Attorney's office to swift and certain punishment.”
“Tracy Mikulencak used her position to steal from the elderly and from grieving family members of a deceased customer. This sentence is reflective of the FBI’s commitment to stopping criminals who take advantage of vulnerable members of society,” said Acting Special Agent in Charge Doug Olson for the FBI San Antonio Division. “We want to thank the Georgetown Police Department for their continued partnership in keeping our communities safe.”
The FBI and Georgetown PD investigated the case.
Assistant U.S. Attorney Dan Guess prosecuted the case.
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Former CEO of Latitude 360 Pleads Guilty to Payroll Tax FraudRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Brent Brown (55, formerly of Jacksonville) has pleaded guilty to failing to pay over payroll taxes withheld from employees. Brown faces a maximum penalty of five years in federal prison. As part of his plea, Brown agreed to pay $3,832,360.48 in restitution to the IRS for unpaid payroll taxes, including both taxes withheld from employees and taxes that should have been paid by the company. A sentencing date has not yet been set.
According to the plea agreement, Brown was the Chief Executive Officer of Latitude 360, Inc., and the manager of its subsidiaries, including Latitude 360 Jacksonville. Brown exercised oversight over every aspect of the company’s business affairs, including payments of wages to the company’s employees and disposition of funds in the company’s bank accounts, and he had the corporate responsibility to collect, truthfully account for, and pay over the company’s payroll taxes.
Latitude 360 withheld taxes from employee wages, including federal income taxes and Federal Insurance Contributions Act, or “FICA” taxes, which were required periodically to be remitted to the Internal Revenue Service. Brown, on behalf of the company, filed quarterly tax returns that accurately reflected the payroll taxes due, but he caused the company to fail to pay over the payroll taxes to the IRS.
This case was investigated by Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Arnold B. Corsmeier and Laura Cofer Taylor.
Former CEO of Defense Company Sentenced to 15 Months in Prison for Defrauding Investors and CreditorsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that BAREND OBERHOLZER, a/k/a “Barry Oberholzer,” was sentenced to 15 months in prison by U.S. District Judge Andrew L. Carter, Jr. for soliciting investments in his defense technology start-up company on the basis of fraudulent misrepresentations regarding its financial solvency, access to cash, and use of investor funds. OBERHOLZER was arrested in February 2021 and pled guilty in March 2023.
U.S. Attorney Damian Williams said: “The defendant lied continuously about his company’s funding, endorsements, and capitalization to attract financing for his defense technology start-up. Soon, he will begin serving a federal sentence. Let this case be a warning to any entrepreneur who thinks that they can ‘fake it until they make it:’ this Office will protect investors and the public from lies designed to take their money.”
According to the allegations in the Indictment and other filings and statements made in court:
Beginning in or around 2018, OBERHOLZER began soliciting investment in his defense technology start-up company (“Start-Up-1”), and a purported security device it had developed (“Security Device-1”), from at least two venture capital firms on false pretenses. OBERHOLZER sent multiple emails to the firms, posing as a retired, four-star General in the United States Army (“Retired General-1”), who was employed by a private equity investment firm based in New York, New York. Therein, OBERHOLZER, posing as Retired General-1, endorsed and solicited investment in Start-Up-1 and Security Device-1, a smartphone case that purportedly permitted its users to detect at a distance weapons or other dangerous items concealed on another person.
OBERHOLZER and his co-conspirator, Jaromy Pittario, a/k/a “Jaromy Jannard-Pittario,” also solicited investments in and loans for Start-Up-1 and Security Device-1 by falsely representing, among other things, their financial solvency, access to cash, and capitalization. For instance, the pair repeatedly provided falsified financial statements to potential creditors to secure funding.
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In addition to the prison term, OBERHOLZER, 40, of Calabasas, California, was fined $100, ordered to forfeit $252,862, and ordered to pay restitution in an amount to be determined by the court.
Mr. Williams praised the outstanding investigative work of the New York Office of the U.S. Postal Inspection Service.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jilan J. Kamal and Timothy V. Capozzi are in charge of the prosecution.
Former Arizona Man Sentenced to 5 Years for Stealing Mainers’ Identities as Part of Pandemic Unemployment Fraud SchemeRead the Press Release
BANGOR, Maine: A former Arizona man was sentenced in U.S. District Court in Bangor today after pleading guilty to six counts of wire fraud and six counts of aggravated identity theft.
U.S. District Judge Lance E. Walker sentenced, James McAuliffe, 55, to 60 months followed by three years of supervised release. He was also ordered to pay $203,616 in restitution. He pleaded guilty on August 29, 2023.
According to court records, from January to November 2020 McAuliffe filed false claims for unemployment insurance (UI) benefits. He filed fraudulent applications for UI payments with the Maine Department of Labor, Bureau of Unemployment Compensation using others’ personal identifying information without their knowledge and consent. As a part of the scheme, he caused fraudulent applications for replacement drivers licenses to be filed with the Maine Bureau of Motor Vehicles and changed the drivers’ mailing addresses, using the falsified licenses as proof of identification in support of the fraudulent UI claims. McAuliffe had the UI benefits loaded onto debit cards and wired into an account he opened in another person’s name and withdrew the funds at ATMs in Arizona. At the time of his arrest, McAuliffe was living in Kansas.
The U.S. Department of Labor, Office of Inspector General and the U.S. Postal Inspection Service investigated the case.
“The prosecution of Mr. McAuliffe is one of numerous cases brought by the Department of Justice nationwide to bring to justice those who sought to exploit COVID-19 relief fund programs,” said U.S. Attorney Darcie N. McElwee. “To those who defrauded and stole from American taxpayers in the middle of a global crisis, you should expect that our Office and the Department of Justice will do everything possible to hold you accountable.”
“James McAuliffe engaged in a scheme to obtain unemployment insurance benefits by submitting fraudulent claims using the stolen identities of Maine residents and others. McAuliffe stole federal benefits intended to assist unemployed American workers struggling during the COVID-19 pandemic. We will continue to work with our law enforcement partners to safeguard Department of Labor programs from those who seek to exploit them,” said Jonathan Mellone, Special Agent-in-Charge, Northeast Region, U.S. Department of Labor, Office of Inspector General.
Coordinated, nationwide enforcement action to combat COVID-19 fraud: On August 23, 2023 the Justice Department announced the results of a coordinated, nationwide enforcement action to combat COVID-19 fraud, which included 718 enforcement actions – including federal criminal charges against 371 defendants – for offenses related to over $836 million in alleged COVID-19 fraud. The Justice Department has now seized over $1.4 billion in COVID-19 relief funds that criminals had stolen and charged over 3,000 defendants with crimes in federal districts across the country. Many of the cases in the enforcement action involve charges related to pandemic unemployment insurance benefit fraud and fraud against the two largest pandemic Small Business Administration programs: the Paycheck Protection Program and Economic Injury Disaster Loans. Additional matters involved pandemic healthcare billing fraud, fraud against the Emergency Rental Assistance program, and fraud committed against the IRS Employee Retention Credit program (ERC), a refundable tax credit for businesses and tax-exempt organizations that had employees and were affected during the COVID-19 pandemic.
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Fifteen People Sentenced for Defrauding Unemployment Insurance Agencies During Covid-19 PandemicRead the Press Release
DETROIT – A federal judge sentenced Detroit resident James Mayfield today to 2 years and 6 months in prison for his role in a scheme to defraud state unemployment insurance agencies during the Covid-19 pandemic, United States Attorney Dawn N. Ison announced. Mayfield is the last of 15 defendants to be sentenced for their roles in related unemployment insurance schemes that were carried out during the Covid-19 pandemic.
Ison was joined in the announcement by Department of Labor – Office of the Inspector General (DOL-OIG) Special Agent-in-Charge of the Great Lakes Region, Irene Lindow, Special Agent in Charge Cheyvoryea Gibson of the Detroit Feld Office of the Federal Bureau of Investigation (FBI) and Director Julia Dale, Michigan Unemployment Insurance Agency.
According to court records, between February 1, 2020, and January 26, 2021, Sharodney Harrison devised schemes to defraud several states and the federal government by filing fraudulent unemployment insurance claims using other people’s personal identifiable information without their knowledge or consent. Harrison and his co-conspirators used various means to further their schemes. Five of the co-conspirators traveled to California between August and September 2020 and used California mailing addresses, including their AirBnB address, to commit unemployment insurance fraud. The schemes tied to Harrison resulted in the filing of nearly 600 fraudulent unemployment insurance claims in 19 states that resulted in a loss of $2,020,851 to state unemployment insurance agencies. If all the fraudulent claims had been approved, the resulting loss would have been $6,920,388.
The investigation into Harrison started after the FBI and DOL-OIG began investigating more than one hundred unemployment insurance claims that were filed with the State of Michigan Unemployment Insurance Agency from two IP addresses registered to homes in Detroit. As a result of this investigation, 9 individuals were charged together in one case with conspiracy to commit wire fraud and/or aggravated identity theft. All have pleaded guilty and have been sentenced as follows:
- Sharodney Harrison – Sentenced to 60 months in prison
- Seandrea Crawford – Sentenced to 30 months in prison
- Sharrell Harrison – Sentenced to 42 months in prison
- Sha-Ron Harrison – Sentenced to 46 months in prison
- Sharease Harrison – Sentenced to 26 months in prison
- Edward Taylor – Sentenced to 54 months in prison
- James Mayfield – Sentenced to 30 months in prison
- Frank Jennings – Sentenced to 24 months in prison
- Sharonda Griffin – Sentenced to 26 months in prison
As a result of this investigation, 6 people were charged in separate cases with conspiracy to commit wire fraud or wire fraud. All have pleaded guilty and have been sentenced. As part of their sentences, the defendants were also ordered to pay a total of over $2 million in restitution to the victims of their fraud.
“We continue to investigate and prosecute those who took advantage of the Covid-19 pandemic to enrich themselves at the expense of taxpayers, while ignoring the effect on those whose identities they stole,” U.S. Attorney Dawn Ison said.
"Sharodney Harrison conspired with a dozen individuals, including James Mayfield, to defraud 19 state workforce agencies of more than $2 million in unemployment insurance (UI) benefits to which Harrison and his co-conspirators were not entitled. Harrison and his co-conspirators filed fraudulent UI claims in the names of identity theft victims, enriching themselves by defrauding a program that was intended to assist struggling American workers during an unprecedented global pandemic," 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.”
“Today’s sentencing finalizes the FBI’s efforts to hold a large-scale network accountable for defrauding unemployment insurance agencies during the COVID-19 pandemic,” said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. “Providing false information to gain access fraudulently 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 profit personally and defraud government assistance programs.”
“The Michigan Unemployment Insurance Agency is proud of its role in helping to identify this network of criminals who were brazen enough to steal from taxpayers across the country,” UIA Director Julia Dale said. “Whether a crime is committed in Michigan or also includes programs in other states, our staff works closely with state and federal law enforcement to refer cases for investigation, stop the theft of taxpayer money, and hold fraudsters accountable.”
These cases were prosecuted by Assistant U.S. Attorney Meghan Bean and were investigated jointly by the FBI and DOL- OIG.
Felon Sentenced to 110 Months’ for Illegally Possessing an Officer’s Firearm While Attempting to Avoid ArrestRead the Press Release
SALT LAKE CITY, Utah – Brandon Keith Thompson, 43, of Salt Lake County, Utah, was sentenced today to over nine years imprisonment followed by three years supervised release after a federal jury found him guilty of being a previously convicted felon in possession of a firearm and ammunition.
According to court documents, and the evidence presented at trial in January 2023, law enforcement responded to a store in Sandy, Utah on July 8, 2021, for a report of a theft in progress. When the officers arrived, employees identified Thompson as the suspected shoplifter. Thompson fled the store. Two officers with the Sandy Police Department chased Thompson in the parking lot and stopped him. Thompson grabbed an officer’s firearm, which was holstered, and pulled on it with such force that the firearm began to move up out of the holster. A bystander observed the struggle and rushed forward to help the officers keep Thompson from gaining control of the firearm and potentially using it against the officers. Thompson placed his finger on the trigger and fired the weapon, which was still partially holstered. The bullet came within inches of striking the bystander and officers. Thompson maintained his grip on the firearm and continued to pull on it, as officers and the bystander attempted to gain control of the firearm and Thompson. After a violent struggle, the officers and bystander secured the firearm and placed Thompson into custody. Thompson had previously been convicted of a felony. This is Thompson’s third federal conviction for the unlawful possession of a firearm by a convicted felon.
“Thompson’s behavior threatened the lives of police officers and bystanders in a busy parking lot,” said U.S. Attorney Trina A. Higgins of the District of Utah. “This case highlights the valuable and ongoing relationship between the U.S. Attorney’s Office and our law enforcement partners as we continue to seek justice for federal offenders whose actions put law enforcement and the community in danger.”
“We are extremely grateful for the countless hours of hard work of everyone involved in this case,” said a spokesperson with the Sandy Police Department Administration. “We are especially thankful for Assistant United States Attorneys, Angela Clifford and Jennifer Muyskens, for their diligence in the pursuit of justice for this deliberate act of indifference against a law enforcement officer.”
“Everyday law enforcement officers are confronted with life and death situations in order to protect their communities,” said ATF Special Agent in Charge Brent Beavers. “We are fortunate and grateful this case was not deadly for the officer or other innocent bystanders.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant United States Attorneys Angela J. Clifford and Jennifer K. Muyskens of the U.S. Attorney’s Office for the District of Utah 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.
Eight Defendants Sentenced for Their Roles in an East Alabama Drug Distribution ConspiracyRead the Press Release
Montgomery, Alabama – Today, Acting United States Attorney Jonathan S. Ross announced the sentences of eight individuals for distributing methamphetamine in the Phenix City, Alabama, area. This concludes a series of federal sentencings that resulted from a drug trafficking investigation that began in 2020 and covered east Alabama and west Georgia.
The following provides more detail about the various defendants convicted and the sentences imposed.
- On January 8, 2024, Kahlia Nichelle Washington, 27, from Phenix City, Alabama, received a sentence of 18 months in prison for conspiracy to possess methamphetamine with intent to distribute after her July 11, 2023 conviction at trial.
- On December 27, 2023, Xavier Toombs, 35, also a resident of Phenix City, received a sentence of 60 months in prison for conspiracy to possess methamphetamine with intent to distribute. Toombs pleaded guilty to the charge on June 22, 2023.
- On December 1, 2023, 38-year-old Andre Tremayne Franklin, from Columbus, Georgia, received a sentence of 320 months in prison. Previously, on July 11, 2023, a jury found Franklin guilty of conspiracy to possess methamphetamine with intent to distribute the drug.
- On November 11, 2023, Justin Garrett, 31, also from Columbus, received a 204-month sentence for conspiracy to possess methamphetamine with intent to distribute. Garrett pleaded guilty to the charge on June 22, 2023.
- On October 25, 2023, 34-year-old Khourtney Jakeith Brown, another resident of Phenix City, received a prison sentence of 262 months for conspiracy to possess methamphetamine with intent to distribute. Khourtney Brown pleaded guilty to that charge on June 28, 2023.
- On October 6, 2023, Ryan Brown, 33, also from of Phenix City, received a sentence of 37 months in prison for possession with intent to distribute methamphetamine. Ryan Brown pleaded guilty on June 22, 2023.
- On October 6, 2023, 34-year-old Lorenzo Miles, another resident of Columbus, received a sentence of 87 months’ imprisonment for conspiracy to possess methamphetamine with intent to distribute after pleading guilty to the charge on June 27, 2023.
- On June 23, 2023, Torrez Jenkins, 28, a resident of Jonesboro, Georgia, received a 64-month prison sentence for conspiracy to possess methamphetamine with intent to distribute. He pleaded guilty to the charge on March 6, 2023.
These cases resulted from a partnership among federal, state, local, and tribal law enforcement to develop effective, locally based strategies to reduce drug trafficking and violent crime, making our neighborhoods safer for everyone.
The Drug Enforcement Administration, the Federal Bureau of Investigation, the Abbeville Police Department, the Auburn Police Division, the Eufaula Police Department, the Phenix City Police Department, and the Russell County Sheriff’s Office investigated these cases, with assistance from the Alabama Attorney General’s Office, the Alabama Law Enforcement Agency, the Alabama National Guard Counterdrug Program, the Elmore County Sheriff’s Office, the Henry County Sheriff’s Office, the Millbrook Police Department, the Montgomery Police Department, the Prattville Police Department, the United States Marshals Service Gulf Coast Regional Fugitive Task Force, and the Muscogee County, Georgia Sheriff’s Office. Assistant United States Attorneys Kevin P. Davidson and Brett J. Talley prosecuted the cases.
Developer Convicted of COVID-19 Relief FraudRead the Press Release
MIAMI – On Jan. 12, Eric Dean Sheppard, 55, of Bal Harbour, Florida, was convicted for submitting fraudulent COVID-19 relief loan applications and aggravated identity theft.
According to the trial evidence, Sheppard devised a scheme to defraud private lenders and the Small Business Administration (SBA) by filing fraudulent loan applications for multiple companies under both the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. The applications were supported by fabricated documents, including Employer’s Quarterly Tax Returns (IRS Form 941), and company tax returns. In addition, Sheppard’s accountant’s signature was forged on the tax returns. From May 2020 to March 2021, Sheppard obtained almost $900,000 in COVID-19 relief loans.
Sheppard was convicted by a jury on four counts of wire fraud, and two counts of aggravated identity theft. Sheppard was acquitted of five counts of wire fraud and three counts of aggravated identity theft. Sentencing is set for April 5, 2024. Sheppard is facing a mandatory minimum term of two years in prison, that must run consecutive to any other sentence imposed, on the aggravated identity theft count(s), and up to 80 years in prison on the wire fraud counts, as well as restitution and forfeiture of the loan proceeds.
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 conviction. Assistant U.S. Attorneys Aimee Jimenez and Ana Maria Martinez prosecuted the case. Assistant U.S. Attorney Mitch Hyman is handling asset forfeiture.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through PPP. In April 2020 Congress authorized over $300 billion in additional PPP funding.
PPP funding allowed qualifying small businesses and other organizations to receive loans. PPP loan proceeds had to be used by businesses on payroll costs, interest on mortgages, rent, and utilities. PPP allowed the interest and principal on the loan to be forgiven if the business spent the loan proceeds on these expense items within a designated period of time, after receiving the proceeds, and used at least a certain percentage of the PPP loan proceeds on payroll expenses.
Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide EIDLs to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website. The applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On Sept. 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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 22-cr-20290.
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Convicted Felon Indicted for Illegally Attempting to Buy A FirearmRead the Press Release
Jacksonville, FL – United States Attorney Roger B. Handberg announces the return of an indictment charging Jason Harris (42, Palm Coast) with making a false statement to a federally licensed firearms dealer during the attempted purchase of a firearm. If convicted, Harris faces a maximum penalty of five years in federal prison.
According to the indictment, Harris completed an ATF Form 4473 during the attempted purchase of a firearm from Southeastern Sports, a federally licensed firearms dealer. Harris indicated on the required paperwork that he was not a convicted felon. The indictment alleges that this was a false statement, and that Harris was previously convicted of multiple felonies, including robbery, shooting or throwing a deadly missile, felony battery and sale of cocaine. Therefore, he is prohibited from possessing a firearm or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Frank Talbot.
This is another case uncovered through the FBI’s National Instant Criminal Background Check System (NICS). All NICS denials are reported to federal law enforcement and are reviewed daily for potential criminal prosecution. Federal law makes it a felony offense to make a false statement to a firearms dealer when trying to buy a gun.
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.
Commercial truck driver admits trafficking charge after trying to haul approximately 30 kilos of cocaine across Montana border into CanadaRead the Press Release
GREAT FALLS — A commercial truck driver from Canada today admitted to a cocaine trafficking crime after U.S. Customs and Border Protection officers found approximately 30 kilograms of cocaine in watermelon pallets as the driver was attempting to enter Canada at the Montana border, U.S. Attorney Jesse Laslovich said today.
Kareshmaa Kaur Jagroop, 42, of Ontario, Canada, pleaded guilty to possession with intent to distribute cocaine as charged in a superseding information. Jagroop faces a maximum of 20 years in prison, a $1 million fine and at least three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for May 23. Jagroop was released on conditions to a treatment center in Montana pending further proceedings.
The government alleged in court documents that in July 2021, a commercial truck was northbound on Interstate 15 near the Sweetgrass Port of Entry in Toole County. As it approached the border in the outbound lane, Customs and Border Protection officers signaled the truck to stop, but the driver ignored the signal and continued past the outbound booth. Officers chased down the truck, which eventually stopped, and had the driver, Jagroop, reverse the truck back to the outbound booth for inspection. As part of the inspection, Jagroop drove through a screening machine, which showed potential anomalies in the trailer. Officers conducted a manual search and unloaded the contents with a forklift. Officers removed two pallets of watermelons and saw a plastic bag that contained approximately 30 kilograms, which is about 66 pounds, of cocaine. During an interview, Jagroop told officers she entered the United States about one week prior to the stop and delivered produce to supermarkets in Oregon and California. She eventually admitted that she was hauling cocaine for a group in Canada.
Assistant U.S. Attorney Jeffrey K. Starnes is prosecuting the case. The U.S. Customs and Border Protection and Homeland Security Investigations conducted the investigation.
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Columbia County Convicted Felon Sentenced to More Than Six Years on Narcotics and Firearms ChargesRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Kristofferson Farmer, Jr. (24, Lake City) to six years and eight months in federal prison for possession with the intent to distribute Alpha-PVP, a controlled substance and possession of a firearm in furtherance of a drug trafficking offense. Farmer had pleaded guilty on October 4, 2023.
According to court documents, on February 7, 2023, law enforcement executed a search warrant at Farmer’s residence. Found inside the residence was Alpha-PVP, fentanyl, cocaine, and marijuana. Additionally, three loaded firearms were found inside the residence, including a 45 caliber Glock pistol that had been reported stolen, a 9mm caliber Glock pistol, and an AR-15 rifle. Farmer admitted to owning the firearms and narcotics and stated he made approximately $40,000 a month selling narcotics out of his residence. Farmer’s DNA was found on the AR-15 rifle.
Farmer was previously convicted (2018) for possessing a firearm as a convicted felon and carrying a concealed firearm. As such, he is prohibited from producing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney John Cannizzaro.
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.