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4 January 2024
Onslow Drug Dealer Sentenced to Fourteen Years in Federal PrisonRead the Press Release
A man who committed drug trafficking offenses while on federal supervised release for a prior gun conviction was sentenced on January 4, 2024, to 168 months in federal prison for distributing methamphetamine.
Ryan Marshall Thomas Streets, age 44, from Poway, California, received the prison term after a July 10, 2023 guilty plea to two counts of distribution of a controlled substance.
Streets, who resided in Onslow, Iowa, distributed large quantities of methamphetamine on two occasions in January of 2023 in Maquoketa, Iowa, while he was on federal supervised release for a prior gun offense. In March 2023, Streets’ supervised release was revoked, and he was sentenced to two-years in custody for violating the conditions of his supervised release.
Streets was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Streets was sentenced to 168 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Streets is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Nicole L. Nagin, and it was investigated by the Drug Enforcement Administration, the United States Postal Inspection Service, the Clinton County Sherriff’s Office, and the Iowa State Police.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR- 1011.
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Ohio Man Sentenced to 52 Months for Bank RobberyRead the Press Release
COVINGTON, Ky. – A Cincinnati man, James Stratman, 23, was sentenced on Thursday, to 52 months in prison, by U.S. District Judge David Bunning, for bank robbery.
According to his plea agreement, on September 26, 2022, Stratman entered a bank in Covington and showed the bank teller a note that indicated he was robbing the bank. The teller gave Stratman $1,583, and after receiving the money, he retrieved the note and fled from the bank on foot. Approximately, one hour after the bank robbery, law enforcement located Stratman in the vehicle, and he led law enforcement on a high-speed chase through Covington and into Cincinnati. At sentencing, it was determined that the Defendant created a substantial risk of death or serious bodily injury during his flight from law enforcement.
Under federal law, Stratman must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office; and Col. Brian Valenti, Chief of Police, Covington Police Department.
The investigation was conducted by FBI and the Covington Police Department. Assistant U.S. Attorney Kyle Winslow prosecuted the case on behalf of the United States.
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Nicholasville Man Sentenced to 25 Years for Distribution and Possession of Child PornographyRead the Press Release
LEXINGTON, Ky. — A Nicholasville, Ky., man, Cory Johns, 42, was sentenced to 25 years in federal prison Wednesday, by U.S. District Judge Karen Caldwell, for two counts of distribution of child pornography and one count of possession of child pornography.
Johns was identified, in November 2015, when the Lexington Police Department connected with him via a file sharing program and downloaded images and videos of children engaged in sexually explicit conduct. Thereafter, on April 16, 2016, the Kentucky State Police (KSP) also connected with the Johns via a file sharing program and downloaded images and videos of children engaged in sexually explicit conduct. KSP then obtained a search warrant for the location associated with the IP address from the downloads, which led to the home where Cory Johns was living. A forensic exam of various electronic devices located in his residence uncovered additional images and videos of children engaged in sexually explicit conduct.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Rana Saoud, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations (HSI); Phillip J. Burnett, Commissioner of the KSP, and Lawrence Weathers, Chief of the Lexington Police, jointly announced the sentence.
The investigation was conducted by the HSI, KSP, and the Lexington Police. The United States was represented by Assistant U.S. Attorneys Erin Roth and Mary Melton.
The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Nevada Owner of Three Mexican Restaurants Sentenced to Prison for Tax EvasionRead the Press Release
LAS VEGAS – A Nevada restaurant owner was sentenced today to 37 months in prison for skimming $5 million dollars in cash sales and filing false federal income tax returns with an overall tax loss of $1.6 million dollars over a five-year period.
According to court documents, Raul Gil, 64, owned and operated three Casa Don Juan restaurants in Las Vegas. From 2014 through 2018, Gil instructed his manager/internal bookkeeper to create false sales numbers for his restaurants that underreported cash sales at the restaurants by approximately $5.1 million. Then, Gil provided the false sales records to an outside tax return preparer who prepared his federal income tax returns.
In July 2018, during an audit, Gil instructed his accountant to provide to the IRS false profit and loss statements that matched the figures reported on the tax returns. Gil also directed his bookkeeper to provide to the IRS false daily cash and sales reports purportedly printed from the restaurants’ point-of-sale systems. During interviews with the IRS, Gil falsely stated to the revenue agent conducting the audit, and later to IRS-Criminal Investigation special agents, that the falsified daily cash reports and point-of-sale records were accurate. In total, Gil caused a tax loss to the IRS of approximately $1.6 million.
In addition to the prison sentence, United States District Judge Andrew P. Gordon ordered Gil to serve three years of supervised release and to pay $2,228,943.65 in restitution.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, United States Attorney Jason M. Frierson for the District of Nevada, and IRS CI Phoenix Field Office Acting Special Agent in Charge Carissa Messick made the announcement.
The case was investigated by the IRS CI. Trial Attorney Thomas Flynn of the Tax Division and Assistant U.S. Attorney Tony Lopez of the U.S. Attorney’s Office for the District of Nevada prosecuted the case.
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Native of Mexico Indicted on Illegal Reentry ChargeRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Abel Rodriguez-Moreno, age 43, of Chiapas, Mexico, was indicted yesterday by a federal grand jury on a charge of illegal reentry
According to United States Attorney Gerard M. Karam, the indictment alleges that Rodriguez-Moreno was previously removed from the United States on June 27, 2012, through Calexico, California, and it is alleged that he was subsequently found in the United States without having first obtained legal permission to reenter the country. The indictment also alleges that on October 29, 2023, Rodriguez-Moreno was encountered in Franklin County, Pennsylvania.
The case was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO) and the Chambersburg Police Department. Special Assistant U.S. Attorney Mark G. Monroe is prosecuting the case.
The maximum penalty under federal law for this offense is two years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Mississippi man sentenced in Minnesota for multiple gun crimesRead the Press Release
St. Paul, Minn. – An Indianola man was sentenced today in St. Paul to serve more than a dozen years in prison for the armed robbery of a Backyard Burgers restaurant in Cleveland, Mississippi, and other gun crimes he committed in Minnesota.
According to court documents, Ladarius Snipes, 27, previously pled guilty in the U.S. District Court for the District of Minnesota to one count of Hobbs Act robbery and one count of discharging a firearm during a crime of violence pertaining to the armed robbery of the Backyard Burgers restaurant in Cleveland, Mississippi, on August 7, 2021. Snipes further pled guilty to making a false statement during the purchase of a firearm and to possession of a stolen firearm, both arising in the State of Minnesota. Snipes was sentenced today by U.S. District Judge Donovan W. Frank to serve a total of 155 months in prison, including 120 months in prison for the robbery of the Backyard Burgers and 35 months for the Minnesota firearms charges, to be served consecutively. Upon release from prison, Snipes will be on supervised release for a period of five years. Following sentencing, Snipes was remanded to the custody of the U.S. Marshals.
“This case clearly demonstrates why we endeavor to keep guns out of the hands of violent criminals,” said U.S. Attorney Clay Joyner. “We thank ATF and the Cleveland, Mississippi Police Department for their work on this case and will continue to work alongside our federal, state and local partners to combat violent crime and help keep our communities and citizens safe.”
“Sending a repeat offender like this to prison is another example of our commitment to work tirelessly to protect our communities and hold accountable those who threaten our safety,” said ATF New Orleans Special Agent in Charge Joshua Jackson. “The sentence imposed today sends a message to the community that individuals who are prohibited from possessing firearms will be held accountable as we work to keep our neighborhoods safe as the top priority for ATF.”
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Cleveland Police Department investigated the case. AUSA Robert Mims assisted in prosecution of 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.
Memphis-Based Methodist Le Bonheur Healthcare and Methodist Healthcare-Memphis Hospitals Pay $7.25 Million to Settle Allegations that They Violated the False Claims ActRead the Press Release
NASHVILLE – United States Attorney Henry C. Leventis announced today that Methodist Le Bonheur Healthcare and Methodist Healthcare-Memphis Hospitals (“Methodist”) have paid $7,250,000 to resolve allegations that Methodist violated the False Claims Act. This settlement resolves allegations that Methodist caused the submission of false claims to Medicare that resulted from improper financial arrangements between Methodist and the West Clinic, PLLC (“the West Clinic”), including kickbacks that Methodist paid to the West Clinic as part of its affiliation with the West Clinic.
“Federal law prohibits money from influencing where a doctor refers a patient for treatment to keep doctors focused solely on what is best for the patient,” said United States Attorney Henry C. Leventis. “We contend that Methodist’s affiliation with the West Clinic ran afoul of that law. When hospitals pay kickbacks to physician practices, regardless of what form those kickbacks take, they can expect to be the focus of our enforcement efforts.”
In its complaint, the United States alleged that, from December 2011 until February 2019, Methodist had a multi-agreement affiliation with the West Clinic and the University of Tennessee Health Science Center. The affiliation agreements with the West Clinic included an Asset Purchase Agreement, Management Services Agreement, Leased Employee and Administrative Services Agreement, and Professional Services Agreement. According to the complaint, Methodist used these agreements as a vehicle to pay kickbacks to the West Clinic in part to induce the West Clinic to refer Medicare beneficiaries to Methodist. The affiliation ended in 2019 and is no longer ongoing.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Jeffrey Liebman and David Stern. Liebman was a former president of Methodist University Hospital, and Stern was a former Dean of the University of Tennessee Health Science Center. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The Act also permits the United States to intervene and take over the litigation and receive a portion of any recovery, such as the United States did here. Liebman and Stern will receive a share of the recovery. The qui tam is captioned United States ex rel. Liebman v. Methodist Le Bonheur Healthcare, et al., Case No. 3:17-cv-00902 (M.D. Tenn.).
The investigation and resolution of this matter illustrates the government’s emphasis on combatting healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was handled by Assistant U.S. Attorney Ellen Bowden McIntyre.
The claims settled by the settlement are allegations only, and there has been no determination of liability.
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Maryland U.S. Attorney Erek L. Barron Recognizes the Contributions of Law Enforcement Partners and the Teamwork that Helped to Reduce Violent Crime in 2023Read the Press Release
Baltimore, Maryland – At a press conference earlier today, U.S. Attorney Erek L. Barron, thanked federal, state and local law enforcement partners in the fight against violent crime in Maryland. The teamwork, community-based partnerships, and strategic law enforcement initiatives helped make a difference in reducing homicides in Baltimore in 2023 by more than 20% percent. Partners at today’s press conference included:
U.S. Attorney Erek L. Barron; ATF Director Steven Dettelbach; ATF Special Agent in Charge Toni Crosby; State’s Attorney for Baltimore City Ivan Bates; Baltimore City Police Commissioner Richard Worley; and
Drug Enforcement Administration Special Agent in Charge Jarod Forget; Federal Bureau of Investigation Acting Special Agent in Charge R. Joseph Rothrock; Homeland Security Investigations Special Agent in Charge James Harris; Acting U.S. Marshal Mathew Silverman
Executive Director Errol Etting of the Maryland Department of Public Safety and Correctional
Services Intelligence and Investigative Division; and
Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police.“Going forward we will continue investigating and prosecuting large RICO cases, like Triple C, but we will also continue to employ strategic and preventative law enforcement measures—especially by using any legal means necessary to remove those who illegally possess or use guns in our communities,” said United States Attorney Erek L. Barron.
“This past year's almost 20% reduction in Baltimore homicides and 9% reduction in non-fatal shootings is a significant step forward in improving the quality of life for the citizens of this city. Every life saved from senseless acts of gun violence is worth celebrating. But we can't forget that every single life lost to this epidemic is a needless tragedy,” said ATF Director Steve Dettelbach. “Through strong partnerships and utilizing crime gun intelligence, ATF is able to focus law enforcement priorities not on entire communities, but instead on strategically identifying the trigger pullers who are terrorizing those communities. My message for 2024? We are not done by a long shot. ATF is committed to protecting the rights of Baltimoreans to live in peace. Law abiding folks should not live in fear of falling victim to senseless gun violence tragedies that continue to plague our most vulnerable communities.”
“Together, we have achieved significant strides in reducing violent crime throughout the year 2023, and while just one life lost to violence in Baltimore is one too many, we remain optimistic about the collective progress made. The collaborative spirit, tireless dedication, and innovative approaches demonstrated by our prosecutors, investigators, and law enforcement colleagues have played a pivotal role in creating safer communities for the residents of Baltimore,” said State’s Attorney Ivan J. Bates. “We have collectively contributed to decreasing violent crime rates through strategic initiatives, community engagement, and diligent prosecution efforts. Our success in this endeavor is a testament to the collaborative strength of our justice system. It reflects the unity and determination that defines us as a community and highlights our shared commitment to public safety and a safer Baltimore for all.”
As one example of holding violent gang members accountable at today’s press conference U.S. Attorney Barron highlighted the case of U.S. v. Correy Cawthorn, where Cawthorn, a member of the violent Baltimore street gang the “Cruddy Conniving Crutballs,” otherwise known as the “Triple C” gang, was sentenced to 35 years in federal prison. Cawthorn admitted that he was part of a racketeering conspiracy and participated in three murders, an attempted murder and drug trafficking on behalf of the gang. This investigation led to the guilty pleas of 34 members and associates of Triple C, including Cawthorn. It was investigated by ATF and the Baltimore Police Department as part of the Project Safe Neighborhoods (PSN) program, using leads generated from the ATF’s National Integrated Ballistic Information Network (NIBIN), a national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms.
“Crime gun intelligence allows ATF and our law enforcement partners to identify, investigate, and incarcerate the most violent and prolific offenders operating in Baltimore. The 35-year sentence for Triple C gang member Correy Cawthorn today and the guilty plea of Black Guerilla Family gang member Wayne Prince yesterday are just two examples of what this investigative approach can do in the hands of law enforcement like our relentless Special Agents and Task Force Officers,” said ATF Baltimore Special Agent in Charge Toni M. Crosby. “While we take this moment to acknowledge the progress of this past year, we must also remember that any murder or act of violence prevents people from having the sense of security in their own neighborhood that they deserve. ATF Baltimore Field Division is looking forward to another year of serving the citizens of Maryland, creating safer communities so they can thrive.”
“Drugs are directly related to crime through the effects they have on the user’s behavior and by generating violence and other illegal activities including firearms related incidents and homicides. Through DEA’s Operation Overdrive initiative, we have mapped the most dangerous and ruthless drug trafficking organizations that operate in the DMV and have directed our resources towards dismantling and prosecuting these organizations. Our collaborative efforts have led to the seizure of record numbers of illegal drugs to include fentanyl and firearms, as well as many impactful prosecutions and convictions. DEA’s primary focus remains combating drug related violence and fentanyl poisoning in our neighborhoods,” said Jarod Forget, Special Agent in charge of DEA Washington Division.
“Every day the FBI works closely with our law enforcement partners in Baltimore and the rest of Maryland to identify and combat violent crime and other threats facing our communities,” said Acting Special Agent in Charge R. Joseph Rothrock of the FBI'S Baltimore Field Office. “In 2024 and the years to come, we will remain laser focused on partnering together to make our communities safer places for all of us.”
“Through a combination of comprehensive strategies, partnerships, and community engagement, we have made substantial progress in curbing the frequency of gun-related violence in Baltimore,” said Special Agent in Charge James C. Harris of HSI Baltimore. “We have fostered relationships among our federal, state, and local law enforcement partners, as well as our prosecutors. We coordinate efforts, share intelligence, and leverage resources in a unified approach to combat illegal gun trafficking, apprehend violent offenders, and hold perpetrators of gun violence accountable. Our efforts throughout our Maryland communities has resulted in a reduction of homicides in Baltimore, by 19% while non-fatal shootings are down almost 9%. While we celebrate this success, we recognize that our work is far from over. We are committed to sustaining and expanding our efforts to further reduce violent gun crime in and around Baltimore in 2024."
“This past year, the United States Marshals Service has helped our federal, state, and local partners apprehend over 1,300 violent fugitives,” stated Mathew Silverman, Acting United States Marshal for the District of Maryland. “The public can rest assured that we will do everything within our lawful authority to continue to support our partners and help make the State of Maryland a safer place.”
U.S. Attorney Barron also thanked our community partners, such as ROCA Baltimore, whose mission is focused on violent crime prevention and intervention initiatives and highlighted a joint public service announcement, U.S. Attorney Office coordinated community walks, and resource fairs for returning citizens. The law enforcement officials at today’s press conference renewed their commitment to community building in order to build trust and to prevent violent crime.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Man and Woman Plead Guilty to Assaulting Mail Carrier in Mosby CourtRead the Press Release
RICHMOND, Va. – A Richmond man and woman pleaded guilty today and yesterday to assaulting a U.S. Postal Service (USPS) City Carrier while delivering mail.
According to court documents, on the evening of May 22, 2023, Quintin Morris, Jr., 31, and Jumeka Jones, 21, assaulted the USPS carrier on the 1900 block of Accommodation Street in Richmond. The altercation began after Jones’ dog, which was off leash outside, caused the carrier to fear for his safety. Jones and the carrier engaged in a verbal disagreement that escalated when Morris adopted a fighting stance and approached the carrier. During the fight, Morris, and Jones wrestled the carrier to the ground, Morris punched the carrier with a closed fist, and Jones stomped on the carrier several times with her foot. The carrier suffered a sprained neck, shoulder, and cuts to his face.
Morris pleaded guilty today is scheduled to be sentenced on April 16. He faces a maximum penalty of 8 years in prison. Jones pleaded guilty yesterday and is also scheduled to be sentenced on April 16. She also faces a maximum penalty of 8 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge Roderick C. Young accepted the plea.
Assistant U.S. Attorney Robert Day is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-142.
Man Charged with Sex Trafficking of a Minor in Chicago SuburbRead the Press Release
CHICAGO — A federal grand jury has indicted a man on sex trafficking charges for allegedly enticing a minor to engage in a commercial sex act in a Chicago suburb.
The two-count federal indictment charges KENNARD CAMERON, 38, of Chicago, with sex trafficking of a minor and conspiracy to engage in sex trafficking of a minor. According to the indictment, Cameron recruited and enticed the minor to engage in a commercial sex act in Lansing, Ill., on March 17, 2023.
Cameron was arrested last week. U.S. Magistrate Judge Beth W. Jantz on Wednesday ordered Cameron to remain detained pending trial.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Jennifer Chang.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each charge in the indictment is punishable by a maximum sentence of life in federal prison. The charge of sex trafficking of a minor also includes a mandatory minimum sentence of ten years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Cameron indictmentMaine Man Sentenced for Role in Northern New England Fentanyl Trafficking OperationRead the Press Release
BOSTON – A Maine man was sentenced today in federal court in Boston in connection with a fentanyl trafficking operation that spanned across northern New England.
Douglas Morris, 33, of Bangor, Maine, was sentenced by U.S. District Court Judge Indira Talwani to 12.5 years in prison and five years of supervised release. In August 2023, Morris pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of p-Fluorofentanyl, a fentanyl analogue. Morris was indicted by a federal grand jury along with five co-defendants in March 2022.
According to court documents, in June 2021, Morris picked up nearly two kilograms of p-Fluorofentanyl – a dangerous fentanyl analogue – intended for distribution in Maine, allegedly from co-defendant Ivan Rodriguez Osorio in a hotel parking lot in Amesbury, Mass. Morris’ vehicle was subsequently stopped by law enforcement and the narcotics were seized.
The fentanyl analogue was packaged in 161 10-gram cylinders commonly called “fingers.” These fingers are a common form of drug packaging for resale to other distributors. Morris had allegedly made three prior drug purchases from Rodriguez Osorio, buying approximately 500 grams of fentanyl each time.
Less than two weeks later, in July 2021, Morris picked up nearly two kilograms of fentanyl, allegedly from Rodriguez Osorio, in the same hotel parking lot in Amesbury, Mass. Morris’ vehicle was again stopped by law enforcement and the narcotics were seized.
According to court documents, Morris has multiple prior convictions for drug trafficking offenses. In July 2009 Morris was arrested federally and charged with conspiracy to distribute and possession with intent to distribute oxycodone. While on federal pretrial release, he was again arrested and charged by state authorities with trafficking oxycodone. Morris was eventually convicted of both offenses and sentenced to 88 months in prison in the federal case and two years (served concurrently) in the state case. However, upon his release, Morris violated the terms of his supervised release numerous times and was revoked twice. His supervised release ended in 2019.
Morris is the second defendant to be sentenced in the case.
Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement. Special assistance was provided by the New Hampshire State Police. Assistant U.S. Attorneys Stephen W. Hassink and Lauren A. Graber of the Narcotics & Money Laundering Unit prosecuted the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf
The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Lower Brule Man Sentenced for Escape from CustodyRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Lower Brule, South Dakota, man convicted of Escape from Custody. The sentencing took place on January 3, 2024.
Dillon Bagola, age 31, was sentenced to 12 months and one day in federal prison, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Once released from custody he will have to serve five years of supervised release relating to his prior federal sexual assault conviction.
Bagola was indicted by a federal grand jury in August of 2023. He pleaded guilty on October 2, 2023.
The conviction stemmed from an incident on July 25, 2023, when Bagola, who was residing at the Community Alternatives of the Black Hills, in Rapid City, South Dakota, to finish a federal sentence, escaped from that facility. His whereabouts were unknown until he was apprehended on August 4, 2023, in Lower Brule.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Bagola was immediately remanded to the custody of the U.S. Marshals Service.
Long Island-Based Bloods Gang Members Indicted on Racketeering and Murder ChargesRead the Press Release
A 32-two-count superseding indictment was unsealed today in federal court in Central Islip charging three Bloods gang members, Dwayne Murray, Kendrick Seymore and Lavalle Wilson, with racketeering, racketeering conspiracy, attempted murder, various firearms charges and narcotics related offenses. Additionally, Murray is charged with the June 2020 murder of Wayne Cherry in Baywood, New York, and Seymore is charged with the July 23, 2021 murders of Nyasia Knox, Diamond Schick and Richard Castano in Farmingville, New York. The defendants are presently in custody and will be arraigned on the superseding indictment at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, Raymond A. Tierney, District Attorney, Suffolk County District Attorney’s Office (SCDAO), James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Tommy Kalogiros, Assistant Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Office (ATF), announced the superseding indictment.
“Today’s superseding indictment speaks loudly to this Office’s commitment to making our communities safer by holding ruthless gang members accountable for the murders, gun violence and narcotics trafficking they allegedly carried out on behalf of the Bloods,” stated United States Attorney Peace. “I commend our prosecutors and law enforcement partners for their tireless work dismantling gangs operating on Long Island.”
Mr. Peace also expressed his appreciation to the Suffolk County Police Department for their unwavering dedication to eradicating gang violence on Long Island.
“My office is committed to eradicating violent gangs and bringing prosecutions on both the state and federal level where appropriate. Joint prosecutions in serious cases with our federal partners better protects Suffolk County residents. I thank United States Attorney Peace, the FBI, and the ATF, for working together with my office and the Suffolk County Police Department to successfully collaborate on this significant prosecution,” stated Suffolk County District Attorney Tierney.
“These indictments demonstrate the collective commitment and investigative efforts between ATF NY and law enforcement partners, utilizing Crime Gun Intelligence to connect the dots between the many incidents of violence. Brazen acts of violence will never become acceptable to us. ATF NY is determined to root out the drivers of the deadly cycle of violence in our communities. We will continue to work tirelessly alongside our partners and appreciate the efforts of the ATF NY Long Island Field Office, FBI, Suffolk County Police Department and EDNY,” stated ATF Assistant Special Agent-in-Charge Kalogiros.
As alleged in the indictment, the defendants engaged in numerous acts of violence on the gang’s behalf, including robberies, home invasions, and vicious shootings and murders. Specifically, according to the superseding indictment and statements made in court proceedings, on the evening of June 12, 2020, Murray fatally shot Cherry in the head in the backyard of a vacant home in Baywood. His body was found two days later.
Additionally, on July 23, 2021, Seymore and an accomplice, both of whom were armed with guns, entered Richard Castano’s apartment in Farmingville to rob him. During the course of the robbery, Seymore shot and killed Castano, as well Diamond Schick and Nyasia Knox, who were also in the apartment. A one-year old child was in the apartment at the time of the triple murder, but was left physically unharmed.
The defendants also used their membership in the Bloods street gang to distribute large quantities of narcotics in Suffolk County. In order to protect their supply of narcotics, and secure their ability to distribute the narcotics, the defendants possessed multiple firearms.
If convicted, the defendants each face a maximum of life in prison. Murray and Seymore face the possibility of the death penalty.
The charges in the superseding indictment are allegations, and the defendants are presumed to be innocent unless and until proven guilty.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Mark E. Misorek and Andrew P. Wenzel and Special Assistant United States Attorneys Donald N. Barclay and Dena C. Rizopoulos are in charge of the prosecution.
The Defendants
DWAYNE MURRAY (also known as “Wayno”)
Age: 33
Coram, New YorkKENDRICK SEYMORE (also known as “KR”)
Age: 22
Coram, New YorkLAVALLE WILSON (also known as “Val,” Skip,” “Flip” and “Wes”)
Age: 30
Shirley, New YorkE.D.N.Y. Docket No. 22-CR-401 (JMA)
Little Rock Felon Who Possessed Firearm Sentenced to Ten Years in Federal PrisonRead the Press Release
LITTLE ROCK—Chadwick Umfleet, a multi-convicted felon, will spend the next 10 years in federal prison for illegally possessing a firearm. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down Wednesday by United States District Judge Kristine G. Baker.
Umfleet, 40, of Jacksonville, pleaded guilty to one count of being a felon in possession of a firearm on August 26, 2022. That conviction was based on a May 26, 2021, traffic stop by officers of the Jacksonville Police Department in which Umfleet was discovered with marijuana, methamphetamine, and a stolen Taurus 9mm handgun.
At Wednesday’s sentencing hearing, Judge Baker heard arguments regarding Umfleet’s three prior felony firearm convictions and six prior felony drug convictions, including Umfleet’s 2012 federal conviction for conspiracy to possess with intent to distribute cocaine. Judge Baker sentenced Umfleet to the maximum potential penalty for the current firearm offense - 10 years imprisonment with three years of supervised release to follow his prison sentence. There is no parole in the federal system.
The investigation was conducted by the Jacksonville Police Department with assistance from the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Julie Peters.
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Additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
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Lead Defendant and Ten Others Plead Guilty in Prolific Human Smuggling and Money Laundering CaseRead the Press Release
A Texas woman pleaded guilty today for her role in a scheme to illegally transport hundreds of foreign nationals within the United States and conspiracy to launder proceeds of illicit human smuggling.
According to court documents, Erminia Serrano Piedra, aka Irma and Boss Lady, 32, led a human smuggling organization that facilitated the unlawful transportation and movement of hundreds of migrants within the United States and harbored and concealed the migrants from detection by law enforcement authorities. The migrants were citizens of Mexico, Guatemala, and Colombia, and they or their families paid members of the organization to help them travel illegally to and within the United States.
The organization used drivers to pick up migrants near the U.S.-Mexico border and transport them further into the United States, often harboring the migrants at “stash houses” along the way. Drivers for the human smuggling organization hid migrants in suitcases placed in pickup trucks and crammed migrants into tractor-trailers, covered beds of pickup trucks, repurposed water tankers, and wooden crates strapped to flatbed trailers. The methods used by the organization to transport migrants placed their lives in danger, as they were frequently held in confined spaces with little ventilation that became overheated, and they were driven at high speeds with no vehicle safety devices. Members of the organization commonly referred to the migrants as “boxes,” “packages,” or “pieces.”
Typically, the fee paid to the organization was approximately $8,000, with $3,000 paid upfront to smugglers in Mexico and the remainder paid once the migrants entered the United States. Payments were routed through various accounts all over the United States, and the money from those accounts was then transmitted to the leaders of the organization. According to her plea agreement, Serrano Piedra admitted to stating during the conspiracy that she made a lot of money from her involvement in human smuggling and was going to continue making a lot of money in the years to come. She also stated that she had been doing this “for a lifetime already” and was not planning to retire.
Piedra also pleaded guilty to conspiracy to engage in financial transactions designed to conceal the nature, location, source, ownership, and control of ill-gotten proceeds of illicit human smuggling. The leaders of the organization recruited and used straw recipients to accept human smuggling proceeds in the recipients’ bank accounts and then transferred the proceeds to the leaders under the pretense of work payments. The defendants also incorporated businesses and opened business accounts to transfer the human smuggling proceeds. The defendants recruited individuals in the construction industry who accepted human smuggling proceeds in the form of cash in exchange for checks from the recruited individuals’ business bank accounts.
Serrano is agreeing to the criminal forfeiture of two properties with current estimated values of $2,275,000 and $515,000 that were purchased with the illicit proceeds of human smuggling as well as a money judgment of $942,537.00.
Serrano Piedra is scheduled to be sentenced on April 10 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Alamdar Hamdani for the Southern District of Texas, and HSI Executive Associate Director Katrina W. Berger made the announcement.
The Justice Department also announced the guilty pleas of ten other defendants charged in the case who previously pleaded guilty for their roles in the scheme. Kevin Daniel Nuber, aka Captain, 42, and Laura Nuber, aka Barbie, 41, pleaded guilty to conspiracy to transport aliens, placing in jeopardy the life of any person, and conspiracy to harbor aliens for the purpose of commercial advantage and private financial gain. Christine Dangler, aka Tinkerbell, 46; Lloyd Bexley, 53; Jeremy Dickens, 47; Juan Manuel Hernandez Cordova, aka Tio, 46; David Scott Tallant, 54; Katie Ann Garcia, aka Guera, 40; and Abraham Geber Lopez, 28, pleaded guilty to conspiracy to transport and move aliens, placing in jeopardy the life of any person. Oliveria Campuzano Piedra, 54, pleaded guilty to conspiracy to harbor an alien for profit. These defendants are awaiting sentencing.
The indictments and convictions of these defendants are the result of the coordinated efforts of Joint Task Force Alpha (JTFA). Attorney General Merrick B. Garland created JTFA in June 2021 in partnership with the Department of Homeland Security (DHS) to strengthen the Justice Department’s efforts to combat the rise in prolific and dangerous smuggling emanating from Central America and impacting our border communities. JTFA is comprised of detailees from U.S. Attorneys’ Offices along the southwest border. Dedicated support is also provided by numerous components of the Criminal Division that are part of JTFA, led by the Human Rights and Special Prosecutions Section (HRSP) and supported by the Office of Overseas Prosecutorial Development, Assistance and Training; Narcotic and Dangerous Drug Section; Money Laundering and Asset Recovery Section (MLARS); Office of Enforcement Operations (OEO); Office of International Affairs; and Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, the FBI, the Drug Enforcement Administration (DEA), and other partners. To date, JTFA’s work has resulted in over 260 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; over 180 convictions; significant jail sentences imposed; and substantial seizures and forfeitures of assets and contraband – including hundreds of thousands of dollars in cash, property, vehicles, firearms, ammunition, and drugs.
HSI Laredo, along with CBP’s U.S. Border Patrol Laredo Sector and DHS Office of the Inspector General, led the U.S. investigation and received substantial assistance from HSI offices in Austin, San Antonio, Waco, and Corpus Christi, Texas; New Orleans, Louisiana; Gulfport, Mississippi; Mobile, Alabama; and West Palm Beach, Florida; HSI’s Human Smuggling Unit in Washington, D.C.; CBP’s National Targeting Center; U.S. Marshals Service; ICE’s Enforcement and Removal Operations - Austin; and the Treasury Executive Office for Asset Forfeiture. Police departments in Laredo, Killeen, Elgin, and Round Rock, Texas; the Wiggins, Mississippi Police Department; the Bogalusa, Louisiana Police Department; the Webb County Constable’s Office; the Webb County District Attorney’s Office; the Webb, Bastrop, and Caldwell County Sheriff’s Offices in Texas; the Harrison, George, and Stone County Sheriff’s Offices in Mississippi; the Mobile County, Alabama Sheriff’s Office; the Jefferson and Washington Parish Sheriff’s Offices in Louisiana; the Mississippi Bureau of Narcotics; and the Louisiana State Police also provided substantial assistance.
HRSP Trial Attorneys Christian Levesque and Angela Buckner, Assistant U.S. Attorney Jennifer Day for the for the Southern District of Texas, and MLARS Trial Attorney Daria Andryushchenko are prosecuting the case, with substantial assistance from MLARS Financial Investigator Kelly O’Mara and OEO’s Electronic Surveillance Unit. HRSP Trial Attorney Erin Cox previously provided significant assistance in this case.
Lame Deer woman sentenced to prison for trafficking methamphetamineRead the Press Release
BILLINGS — A Lame Deer woman who admitted to selling methamphetamine on the Northern Cheyenne Indian Reservation as part of larger drug trafficking activity on the Crow and Northern Cheyenne Indian Reservations was sentenced today to two years in prison, to be followed by four years of supervised release, U.S. Attorney Jesse Laslovich said.
Adrienne Dawn LaForge, 35, pleaded guilty in August 2023 to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
In court documents, the government alleged that in August 2022, law enforcement purchased meth from LaForge at a house in Lame Deer. An indictment accused LaForge of trafficking meth from about January 2022 through October 2022 on the Northern Cheyenne and Crow reservations. LaForge was affiliated with another Northern Cheyenne Reservation dealer, who also was trafficking on Crow, and others who were charged as a result of an investigation into a large drug trafficking conspiracy.
Assistant U.S. Attorneys prosecuted the case. The Bureau of Indian Affairs, Drug Enforcement Administration and FBI conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Jefferson Parish Man Pleads Guilty to Violations of the Federal Gun Control and Controlled Substances ActsRead the Press Release
NEW ORLEANS, LOUISIANA – DARREN FLOWERS, age 25, a resident of Metairie, pleaded guilty on January 3, 2024, before U.S. District Judge Jane T. Milazzo, to federal drug and weapons violations.
Specifically, FLOWERS pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine base and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), 841(b)(1)(D), and 846; possession with intent to distribute cocaine base, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C); and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i).
According to court documents, on January 6, 2022, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Jefferson Parish Sheriff’s Office (JPSO) conducted surveillance in the 500 block of N. Elm Street in Metairie. FLOWERS was observed selling drugs, both individually and with his co-conspirators, to customers who arrived in the area. When JPSO detectives made contact with FLOWERS, he fled and discarded a loaded Ruger nine-millimeter semi-automatic handgun during the chase. When FLOWERS was apprehended, he had six rocks of cocaine base and $855 in cash in his pockets.
As to his convictions for conspiracy to distribute controlled substances and distribution of controlled substances, FLOWERS faces up to 20 years in prison, a fine of up to $1,000,000, and a minimum of three years of supervised release on each count. As to his conviction for possessing a firearm in furtherance of a drug trafficking crime, FLOWERS faces a mandatory minimum sentence of five years up to life in prison, which is to run consecutively to all other sentences, up to a $250,000 fine, and up to five years of supervised release. Each count also carries a mandatory $100 special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Firearms, Tobacco, and Explosives and the Jefferson Parish Sheriff’s Office. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
January 2024 Federal Grand Jury A Indictments AnnouncedRead the Press Release
United States Attorney Clint Johnson today announced the results of the January 2024 Federal Grand Jury A.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Christian Douglas Cook. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country. Cook, 24, transient and a citizen of Choctaw Nation is charged with assault with intent to do bodily harm in Dec. 2023. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Scott Dunn is prosecuting the case. 24-CR-005
Johnathan Robert Havlick. Second Degree Murder in Indian Country; Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence. Havlick, 23, Sapulpa and a member of the Cherokee Nation, is charged with discharging a firearm and killing Aaron Bendele in Dec. 2023. The FBI and Sapulpa Police Department are the investigative agencies. Assistant U.S. Attorneys Valeria Luster and Kate Brandon are prosecuting the case. 24-CR-003
Nelson Alexis Torres Leon; Roberto Quiroz Lopez; Jose Isla-Chavez; Gerardo Martinez, Jr. Drug Conspiracy; Possession of Fentanyl with Intent to Distribute; Possession of Heroin with Intent to Distribute; Maintaining a Drug-Involved Premises; Possession of Heroin with Intent to Distribute; Possession of Fentanyl with Intent to Distribute (superseding). Leon, 23, Lopez, 49, Isla-Chavez, 29, Mexican nationals, and Martinez, 23 from Oklahoma City, are each charged with drug conspiracy.
Leon is charged with possessing and distributing fentanyl and heroin. Lopez is charged with possessing and distributing heroin. Isla-Chavez is charged with possessing and distributing fentanyl. Leon, Isla-Chavez, and Lopez are also charged with maintaining a residence for distributing fentanyl and/or heroin. The Drug Enforcement Administration and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorneys Joel-lyn A. McCormick and Mandy M. Mackenzie and are prosecuting the case. 23-CR-380Benita Lorenzo Nicolas. Unlawful Reentry of a Removed Alien. Nicolas, 45, a Mexican national, is charged with unlawfully reentering the United States after having been removed in Jun. 2017, at or near Del Rio, Texas. U.S. Immigration and Customs Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Cheryl L. Baber is prosecuting the case. 24-CR-001
Shelly Annette Mcelroy; Gary Don Mcelroy. Drug Conspiracy; Possession of Methamphetamine with Intent to Distribute; Possession of Fentanyl with Intent to Distribute; Tampering with a Record, Document, and Other Object. (superseding) Shelly McElroy, 52, and Gary McElroy, 54 of Tulsa are charged with drug conspiracy from Sep. 2023 through Oct. 2023. They are also charged with possessing methamphetamine and fentanyl with intent to distribute in Oct. 2023. Shelley McElroy was also charged with attempting to tamper with and erase the contents of a cellular phone seized as evidence in Oct. 2023. The Drug Enforcement Administration and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorneys Adam D. McConney and Niko Boulieris are prosecuting the case. 23-CR-348
Lance Douglas Roark. Abusive Sexual Contact with a Minor Under 12 Years of Age in Indian Country; Assault with Intent to Commit Aggravated Sexual Abuse of a Minor under 12 Years of Age in Indian Country (superseding). Roark, 43, of Bluejacket and a member of the Delaware Tribe is charged with knowingly engaging in sexual contact with the intent to commit aggravated sexual abuse with a child under 12 years old. The FBI and Rogers County Sherriff’s Office are the investigative agencies. Assistant U.S. Attorneys Alicia Hockenbury and Chantelle Dial are prosecuting the case. 23-CR-262
Yair De Jesus Trejo-Mendoza. Unlawful Reentry of a Removed Alien. Trejo-Mendoza, 35, a Mexican national, is charged with unlawfully reentering the United States after having been removed in Dec. 2015, at or near Laredo, Texas. U.S. Immigration and Customs Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Cheryl L. Baber is prosecuting the case. 24-CR-002
Jacksonville Man Who Led Police on High-Speed Chase Pleads Guilty to Escaping from Federal CustodyRead the Press Release
Jacksonville, Florida –United States Attorney Roger B. Handberg announces that Michael A. Crider (43, Jacksonville) has pleaded guilty to escape from custody. Crider faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to court documents, in 2018, Crider was adjudicated guilty and sentenced to 80 months in federal prison for possessing a firearm as a convicted felon. In January 2023, while Crider was completing that prison term, the Bureau of Prisons transferred him into the custody of Bridges Federal Reintegration Centers – Jacksonville, a residential reentry center or halfway house. While in custody there, he was subject to drug testing, and on the evening of April 11, 2023, he was provided a copy of an incident report documenting a recent positive test for cocaine. Later, around midnight, a halfway house staff member noticed that Crider was not in his assigned dormitory. Searching the facility, the staff could not find him.
A month later, on May 13, 2023, at approximately 6:00 a.m., in St. Augustine, Florida, a police officer observed a minivan, which Crider was driving, traveling at over 100 mph, running red traffic lights, and weaving in and out of traffic. The officer attempted to conduct a traffic stop, but Crider refused to pull over, and a chase ensued. Crider eventually crashed the minivan and was arrested.
At the crash scene, the police officer smelled marijuana coming from the minivan. Crider initially refused to identify himself, but eventually stated that he knew that there was a warrant for his arrest. In the backseat of the minivan, police found a backpack, which contained several documents bearing Crider’s name, a scale, and a dose of Buprenorphine 8mg, a synthetic opioid and Schedule III controlled substance.
This case was investigated by the U.S. Marshals Service and the Saint Johns County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
Illegally Armed Serial Bank Robber Sentenced to 22 ½ Years in Federal PrisonRead the Press Release
INDIANAPOLIS- Gary Sistrunk, 42, of Indianapolis, has been sentenced to 22.5 years in federal prison after pleading guilty to armed bank robbery, brandishing a firearm during a crime of violence, and illegally possessing a firearm as a convicted felon.
According to court documents, on November 6, 2019, Gary Sistrunk and an unknown male entered the German American Bank in Columbus, Indiana. After waiting for customers to clear out of the bank, Sistrunk began walking around the bank’s lobby acting as a lookout, while his accomplice approached the register. The men demanded money from the teller and were given $10,293 in cash. The robbers forced the bank tellers and a lone customer into a back room, threatening them not to move for 15 minutes or else they would be killed.
On January 28, 2020, Sistrunk entered a Regions Bank in Fishers, Indiana, acting alone. Sistrunk approached the teller counter and brandished a black and silver handgun, leaned into the teller’s window space, and said, “Hurry and don’t make any noise. Give me the money!” The teller complied and gave Sistrunk $10,327.00 in cash. Sistrunk took the money and fled the bank.
The following day, Fishers Police Department released a photo and surveillance footage of the robbery to local media outlets. The Department received two tips identifying Sistrunk as the robber. At the time of the robbery, Sistrunk also had an outstanding Marion County warrant for armed robbery and confinement.
On January 29, 2020, Sistrunk was arrested on the outstanding Marion County warrant. During the court-authorized search of the hotel room he was living in, investigators located his black and silver Springfield Arms handgun, the clothing Sistrunk wore when he committed the robbery on January 28, 2020, and approximately $4,000 cash. Sistrunk is prohibited from ever possessing a firearm under federal law because he is a convicted felon. Sistrunk was convicted in Marion and Shelby counties of charges including armed robbery, attempted armed robbery, and criminal confinement for his role in four separate robberies in 2012 and 2014.
“This criminal has engaged in a pattern of violence throughout his life,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Several years in prison for prior armed robberies did not convince him to change his behavior. The sentence imposed here should serve as a warning to repeat, violent offenders—reducing violence is a top priority for this office, and repeat offenders face lengthy terms in federal prison. I commend the FBI and Fishers Police Department, and our federal prosecutor, for their work to quickly arrest the defendant and hold him accountable.”
The FBI and Fishers Police Department investigated this case. The sentence was imposed by Chief U.S. District Court Judge Tanya Walton Pratt. Judge Pratt also ordered that Sistrunk be supervised by the U.S. Probation Office for 3 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Corbin D. Houston, who prosecuted this case.
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Houston, Texas, Resident Pleads Guilty to Violating Federal Money Laundering LawsRead the Press Release
PITTSBURGH, PA – A resident of Houston, Texas, pleaded guilty in federal court to violating federal money laundering laws, United States Attorney Eric G. Olshan announced today.
Oluseyi Jeremiah Olagoke Adebayo, 48, of Houston, Texas, pleaded guilty to one count of conspiracy to commit money laundering from June 2022 through October 2022 before United States District Judge Robert J. Colville.
In connection with the guilty plea, the court was advised that a company located in the Western District of Pennsylvania was the victim of a business email compromise that resulted in the fraudulent transfer of over $420,000 into a bank account that Adebayo opened with a false name and a fraudulent Solomon Islands passport. To obfuscate the source of the fraudulent funds, Adebayo incorporated shell companies with false names and opened bank accounts for those shell companies also with false names. He then transferred portions of the fraudulent funds obtained from the victim company into those bank accounts from which he conducted additional transfers and issued bank checks.
Judge Colville scheduled sentencing for May 7, 2024. The law provides for a maximum total sentence of not more than 20 years, a fine not to exceed $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Adebayo remains detained pending sentencing.
Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Homeland Security Investigations conducted the investigation leading to the prosecution of Adebayo.
Fugitive Leonard Francis Back in San Diego; Appears in Federal CourtRead the Press Release
NEWS RELEASE SUMMARY – January 4, 2024
SAN DIEGO – Leonard Glenn Francis, the infamous fugitive who presided over a massive decade-long conspiracy involving scores of U.S. Navy officials, tens of millions of dollars in fraud and millions of dollars in bribes and gifts, appeared in federal court today for the first time since he cut off his electronic monitoring bracelet and absconded from house arrest in San Diego in September 2022.
At the hearing, the government asked U.S. District Judge Janis L. Sammartino to set a new sentencing date immediately to avoid delays, but the judge postponed a decision based on a request by Francis’ legal team to withdraw from the case in the aftermath of his disappearance. The judge set a status hearing for February 8, 2024, at 9 a.m.
Francis, who fled the United States before he could be sentenced, was returned to the United States from Venezuela as part of a prisoner swap on December 20, 2023. From Venezuela, he arrived in the Southern District of Florida and appeared in federal court the next day in Miami, where he was ordered removed to the Southern District of California. Francis arrived in San Diego on January 3.
Francis, the owner and chief executive of Glenn Defense Marine Asia, which provided services to U.S. Navy ships in ports in the Asia-Pacific region, pleaded guilty to bribery and fraud charges in 2015. As a result of the federal investigation, more than 30 U.S. Navy officials and associates pleaded guilty.
“Leonard Francis is no longer on the run. He is on the hook,” said U.S. Attorney Tara K. McGrath. “Mr. Francis never should have fled the United States while he was waiting to be sentenced. In fact, he was ordered by a federal judge not to do so. Now that he is back in San Diego, Mr. Francis will be held fully accountable for his crimes.”
DEFENDANTS Case Number 13-CR- 4287
Leonard Glenn Francis Age: 59 Singapore
SUMMARY OF CHARGES
Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371. Maximum penalty five years in prison, $250,000 fine or twice the gross pecuniary gain or loss from the offense, whichever is greater;
Bribery, in violation of 18 U.S.C. § 201. Maximum 15 years in prison, $250,000 fine or twice the gross pecuniary gain or loss from the offense, whichever is greater. Mandatory restitution.
Conspiracy to Defraud the United States, in violation of in violation of 18 U.S.C. sec. 371. Maximum penalty five years in prison $250,000 fine or twice the gross pecuniary gain or loss from the offense, whichever is greater. Mandatory restitution.
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Fort Wayne Man Sentenced to 180 Months in PrisonRead the Press Release
FORT WAYNE –Kevieun D. Lewis, 35 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to possessing with intent to deliver fentanyl and possessing a firearm in furtherance of a drug trafficking crime, announced United States Attorney Clifford D. Johnson.
Lewis was sentenced to 180 months in prison followed by 5 years of supervised release.
According to documents in the case, on March 29, 2023, a search warrant was executed at Lewis’s residence after controlled buys of fentanyl were conducted. During the search, officers found numerous baggies containing fentanyl, cocaine, MDMA, and marijuana. Officers also located digital scales, a firearm, ammunition, and a substantial amount of U.S. currency. Lewis has six prior adult felony convictions.
This case was investigated by the FBI, with assistance from Fort Wayne Police Department, Drug Enforcement Administration Laboratory, and the Allen County Prosecutor’s Office. The case was prosecuted by Assistant United States Attorney Stacey R. Speith.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is 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.
Former Stoneham Police Officer Sentenced for Defrauding Three LandlordsRead the Press Release
BOSTON – A former detective sergeant for the Stoneham Police Department was sentenced today for concealing his history of evictions and using a family member’s credit report to obtain an apartment lease and then defrauding his landlord by intentionally withholding rent payments.
Robert Kennedy, 54, of Stoneham, was sentenced by U.S. District Court Judge Denise J. Casper to two years of probation, with the first 90 days to be served under home confinement with electronic monitoring. Kennedy was also ordered to pay restitution of $14,275. In September 2023, Kennedy pleaded guilty to two counts of wire fraud.
“Today's sentence should send a clear message: no one is above the law. We remain steadfast in our commitment to hold accountable those who exploit their positions and engage in fraudulent activities that compromise the very principles they are sworn to uphold,” said Acting United States Attorney Joshua S. Levy.
“Former Stoneham Police Department Detective Robert Kennedy broke laws he was sworn to enforce, and in doing so, failed his department, and betrayed the trust of three landlords whom he lied to and defrauded. In no uncertain terms, today’s sentence demonstrates that no one is above the law,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “This case also highlights the FBI’s ongoing commitment to root out and bring to justice anyone who deliberately compromises the integrity of their position for personal gain.”
From February 2020 through June 2023, Kennedy lied to and defrauded three separate landlords to obtain apartments that he had no intention of paying for. After moving in, Kennedy would intentionally withhold rent payments, despite making $141,000 - $187,000 a year from the Stoneham Police Department. As a result, Kennedy lived in the apartments rent-free by taking advantage of the slow eviction process.
Specifically, Kennedy defrauded his most recent landlord by submitting materially false and fraudulent information during the rental application process. The landlord required Kennedy to submit to a tenant screening service, which included a credit check and eviction history check. Instead of providing his own date of birth and social security number to the tenant screening service – which would likely have shown Kennedy’s history of collections, delinquent payments, defaults and evictions – Kennedy provided the date of birth and Social Security number of a relative who shared his first and last name. The landlord relied on the information from the fraudulently obtained tenant screening report to approve Kennedy’s rental application and give Kennedy a lease for the apartment. Additionally, Kennedy immediately and intentionally violated the terms of the lease by giving the landlord bad checks for his rent and security deposit and failing to make subsequent rent payments. Kennedy lived in the apartment for approximately four months without making rent payments and currently owes the landlord approximately $14,000 in overdue rent.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made announcement today. Valuable assistance was provided by the Stoneham Police Department. Assistant U.S. Attorneys Elysa Q. Wan and Dustin Chao of the Public Corruption & Special Prosecutions Unit prosecuted the case.
Florida Research Hospital Agrees to Pay More than $19.5 Million to Resolve Liability Relating to Self-Disclosure of Improper Billing for Clinical Trial CostsRead the Press Release
H. Lee Moffitt Cancer Center & Research Institute Hospital Inc. (Moffitt), a non-profit cancer treatment and research center based in Tampa, Florida, has agreed to pay $19,564,743 to resolve its civil liability under the False Claims Act for improper claims submitted to federal healthcare programs for certain patient care items and services provided during research studies that were not eligible for reimbursement. In connection with the settlement, the United States acknowledged that Moffitt took a number of significant steps entitling it to credit for cooperating with the government.
This settlement resolves Moffitt’s civil liability for claims that it submitted to Medicare and other federal healthcare programs during the period from 2014 to 2020 for services that were not reimbursable under Centers for Medicare and Medicaid Services rules governing reimbursement for clinical care provided in connection with clinical research trials. Specifically, Moffitt billed federal healthcare programs for items and services provided as part of clinical trial research that should have been billed to non-government trial sponsors. After learning of these issues, Moffitt initiated an independent investigation and compliance review and voluntarily provided the government with a written disclosure of its findings. Moffitt cooperated fully with the government’s investigation of the conduct and implemented prompt and substantial remedial measures. The federal share of the settlement is approximately $18.2 million and the state Medicaid share of the settlement is approximately $1.3 million.
“Healthcare providers participating in federal healthcare programs must ensure that they comply with applicable rules and regulations, including those relating to the submission of claims in connection with clinical research,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “As today’s settlement reflects, when providers run afoul of their obligations, they can mitigate the consequences by making timely self-disclosures, cooperating with investigations and taking appropriate remedial measures.”
“Protecting the nation’s healthcare programs is a top priority of our office,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “When those who receive funds from government healthcare programs discover that they have submitted improper claims, we encourage them to promptly disclose the issues and cooperate fully with investigators to reach an appropriate and swift settlement. That’s what Moffitt did here: self-reported its improper claims, cooperated with government investigators and took action to remediate its billing systems.”
“Providers participating in clinical trials funded by federal health care programs must abide by specific guidelines that safeguard these programs,” said Acting Special Agent in Charge Fernando Porras of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Providers will be held accountable if they bill for services outside the rules governing reimbursement. Together, with our law enforcement partners, we will continue to maintain the fiscal integrity of federal healthcare programs.”
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Middle District of Florida and HHS-OIG.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The matter was handled by Trial Attorney Gary Dyal of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorneys Randy Harwell and Carolyn Tapie for the Middle District of Florida.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
SettlementFlorida Research Hospital Agrees to Pay More Than $19.5 Million to Resolve Liability Relating to Self-Disclosure of Improper Billing for Clinical Trial CostsRead the Press Release
H. Lee Moffitt Cancer Center & Research Institute Hospital Inc. (Moffitt), a non-profit cancer treatment and research center based in Tampa, Florida, has agreed to pay $19,564,743 to resolve its civil liability under the False Claims Act for improper claims submitted to federal healthcare programs for certain patient care items and services provided during research studies that were not eligible for reimbursement. In connection with the settlement, the United States acknowledged that Moffitt took a number of significant steps entitling it to credit for cooperating with the government.
This settlement resolves Moffitt’s civil liability for claims that it submitted to Medicare and other federal healthcare programs during the period from 2014 to 2020 for services that were not reimbursable under Centers for Medicare and Medicaid Services rules governing reimbursement for clinical care provided in connection with clinical research trials. Specifically, Moffitt billed federal healthcare programs for items and services provided as part of clinical trial research that should have been billed to non-government trial sponsors. After learning of these issues, Moffitt initiated an independent investigation and compliance review and voluntarily provided the government with a written disclosure of its findings. Moffitt cooperated fully with the government’s investigation of the conduct and implemented prompt and substantial remedial measures. The federal share of the settlement is approximately $18.2 million and the state Medicaid share of the settlement is approximately $1.3 million.
“Healthcare providers participating in federal healthcare programs must ensure that they comply with applicable rules and regulations, including those relating to the submission of claims in connection with clinical research,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “As today’s settlement reflects, when providers run afoul of their obligations, they can mitigate the consequences by making timely self-disclosures, cooperating with investigations and taking appropriate remedial measures.”
“Protecting the nation’s healthcare programs is a top priority of our office,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “When those who receive funds from government healthcare programs discover that they have submitted improper claims, we encourage them to promptly disclose the issues and cooperate fully with investigators to reach an appropriate and swift settlement. That’s what Moffitt did here: self-reported its improper claims, cooperated with government investigators and took action to remediate its billing systems.”
“Providers participating in clinical trials funded by federal health care programs must abide by specific guidelines that safeguard these programs,” said Acting Special Agent in Charge Fernando Porras of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Providers will be held accountable if they bill for services outside the rules governing reimbursement. Together, with our law enforcement partners, we will continue to maintain the fiscal integrity of federal healthcare programs.”
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Middle District of Florida and HHS-OIG.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The matter was handled by Trial Attorney Gary Dyal of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorneys Randy Harwell and Carolyn Tapie for the Middle District of Florida.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Florida Man Is Sentenced for Money Laundering Stemming from A Business Email Compromise SchemeRead the Press Release
CHARLOTTE, N.C. – Pierre Yvelt Almonor, 51, of Miami Gardens, Florida, was sentenced today to 51 months in prison followed by two years of supervised release for his role in a conspiracy to launder illegal proceeds from a business email compromise scheme that defrauded law firms and other companies of more than $1 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.
A business email compromise scheme, or BEC, is a sophisticated scam, often targeting businesses involved in wire transfer payments. The fraud is carried out by fraudsters compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques, to cause employees of the victim company or other individuals involved in legitimate business transactions to transfer funds to accounts controlled by the scammers.
According to filed court documents, trial evidence, and witness testimony, from August 2014 through November 2017, as part of the money laundering conspiracy, Almonor arranged to have nearly $395,000 in real estate closing proceeds stolen through a BEC deposited in a business account over which he exercised control, utilizing it as a “money mule” bank account. Money mule bank accounts are accounts used by fraudsters as a pass-through means of moving fraudulently obtained funds. Almonor then facilitated wires to Spain and South Africa totaling more than $200,000 and withdrew more than $50,000 in proceeds as compensation for his role in the conspiracy.
In May 2022, a federal jury convicted Almonor of engaging in a conspiracy to commit concealment money laundering, international concealment money laundering, and transactional money laundering.
Almonor will be ordered to report to the federal Bureau of Prisons to begin serving his sentence, upon designation of a federal facility.
The FBI investigated the case. Assistant U.S. Attorneys Matthew T. Warren and Maria Vento of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Federal Jury Convicts Indiana Man of Distribution and Transportation of Child Pornography and Making Notice of Visual Depictions of Minors Engaging in Sexually Explicit ConductRead the Press Release
ASHEVILLE, N.C. – A federal jury in Asheville has convicted Brandon Keith Hardy, 44, of Bremen, Indiana, of distribution and transportation of child pornography, and making notice of visual depictions of minors engaging in sexually explicit conduct, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, joins U.S. Attorney King in making today’s announcement.
“Hardy’s conviction reflects the important work we do every day to keep children safe and prosecute those who seek to harm them. Child predators using anonymous online networks and encryption walls to exploit children and evade justice will not deter our mission,” said U.S. Attorney King.
“Protecting children from predators that seek to exploit them is one of the most important missions for HSI,” Special Agent in Charge Martinez. “We are fully committed to working with our law enforcement partners to identify, investigate and prosecute these individuals for their heinous crimes.”
According to filed court documents, trial evidence, and witness testimony, law enforcement determined that an individual later identified as Hardy was using chatrooms on the dark web to traffic child sexual abuse material and to solicit sexual activity with a minor. Trial evidence established that over the course of the investigation Hardy used the dark web and an encrypted text messaging platform to share dark web links to child pornography with undercover law enforcement. Evidence presented at trial also established that Hardy possessed a collection of child pornography on his phone, expressed his interest in engaging in sexual activity with a child, and said he had sexually abused other children.Hardy is currently in federal custody. A sentencing date has not been set. The charge of transportation of child pornography and distribution of child pornography each carry a minimum statutory sentence of five years and a maximum of 20 years in prison and a $250,000 fine. The notice of child pornography charge carries a mandatory minimum sentence of 15 years and a maximum of 30 years in prison and a $250,000 fine.
In making today’s announcement, U.S. Attorney King commended HSI for their investigation of the case.
The U.S. Attorney’s Office in Asheville 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 the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Erie Man Sentenced to Seven Years in Prison on Narcotics and Firearms ChargesRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to seven (7) years in prison on his conviction of violating federal firearm and drug laws, United States Attorney Eric G. Olshan announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Aaron Jovan Raiford, 42.
According to information presented to the court, on or about March 25, 2022, Raiford possessed with intent to distribute cocaine, and he possessed three firearms and ammunition while being a convicted felon. In addition, on August 2, 2022, Raiford again possessed cocaine with the intent to distribute it. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
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.
Assistant United States Attorney Molly W. Anglin prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Pennsylvania State Police for the investigation leading to the successful prosecution of Raiford.
East Longmeadow Man Sentenced for Marijuana TraffickingRead the Press Release
BOSTON – An East Longmeadow man was sentenced today in federal court in Springfield for marijuana trafficking.
John Americo Pereira, 38, was sentenced by U.S. District Court Judge Mark G. Mastroianni to six months in prison and three years of supervised release. In June 2023, Pereira pleaded guilty to one count of possession with intent to distribute more than 100 kilograms of marijuana.
In January 2018, an investigation began into Pereira, and others, for trafficking marijuana. During a search of Pereira’s home in February 2019, approximately $688,000 in drug proceeds and more than 269 pounds (122 kilograms) of marijuana packaged in one-pound bags were found. Also found at Pereia’s residence were several smaller or partially filled packages and containers of marijuana, marijuana cigarettes and a large amount of marijuana edibles, including 876 chocolate bars.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office; John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police; and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Assistant U.S. Attorney Neil L. Desroches of the Springfield Branch Office and the Criminal Division’s Organized Crime and Gang Section of the Department of Justice prosecuted the case.
Eagle Butte Man Sentenced for Possession of a Firearm by a Prohibited PersonRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced an Eagle Butte, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on January 3, 2024.
Jeremiah Iron Moccasin, age 39, was sentenced to 13 months in federal prison, followed by three years of supervised release, a special assessment to the Federal Crime Victims Fund in the amount of $100, and forfeiture of the firearm.
Iron Moccasin was indicted by a federal grand jury in July of 2023. He pleaded guilty on October 2, 2023.
The conviction stemmed from an incident on March 24, 2023, when Iron Moccasin was placed under arrest on a tribal warrant with the Cheyenne River Sioux Tribe Law Enforcement Services. Once at the jail, Iron Moccasin and his backpack were searched. Officers recovered a small baggie of methamphetamine, two syringes with methamphetamine, and an Arminius HW7, GmbH .22 revolver. Iron Moccasin admitted to being a methamphetamine user for the last several years. This makes him a prohibited person.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Meghan N. Dilges 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.
Iron Moccasin was immediately remanded to the custody of the U.S. Marshals Service.
Darien Man Sentenced to 2 Years for Illegal Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Arron W. Dupler, 34, Darien, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 2 years in prison for possessing a firearm as a felon. Dupler’s federal sentence will run consecutive to two undischarged state sentences. He pleaded guilty to the federal charge on November 1, 2023.
Law enforcement began investigating Dupler after receiving information that he was posting pictures of guns on Facebook and offering the guns for sale. On March 4, 2022, Dupler sold an undercover police officer a Ruger LCP .380 handgun. Dupler showed the officer pictures of additional guns that he had previously sold and said he could get more. Dupler is prohibited from possessing firearms as a result of two felony convictions from 2007 and 2018.
At sentencing, Judge Conley said that the most disturbing part of Dupler’s offense was his comment to the undercover officer that the gun had “no bodies” on it, and that only five rounds had been fired from the gun. Judge Conley noted that these attributes would make the gun harder to trace, should it be used in criminal activity.
The charge against Dupler was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Janesville Police Department, and the Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorneys Anita Marie Boor and Megan Stelljes prosecuted this case.
Cumberland Woman Sentenced to Prison for Embezzling Funds from St. Croix Chippewa Indians of WisconsinRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Karen Johnson, 55, Cumberland, Wisconsin was sentenced today by U.S. District Judge William M. Conley to one year and one day in prison for wire fraud, to be followed by a three-year period of supervised release. Johnson pleaded guilty to this charge on September 1, 2023.
Between 2014 and 2019, Johnson stole over $200,000 from the St. Croix Chippewa Housing Authority, an agency of the St. Croix Chippewa Indians of Wisconsin. This agency is responsible for providing and maintaining housing for low-income tribal members. The Housing Authority receives in excess of $1 million each year in grant funding from the U.S. Department of Housing and Urban Development. Johnson, who had worked for the Housing Authority since 1995, used her position to write checks for personal expenses. This included a scheme to defraud in which she generated and approved false invoices billing the Housing Authority for work purportedly done by a contractor. Johnson then wrote checks drawn on Housing Authority funds, forged the contractor’s signature, and deposited the checks into her own bank account.
At sentencing, Judge Conley found that Johnson’s conduct was serious because she took advantage of her position within the Housing Authority and deprived other tribal members of financial support. Judge Conley stated a custodial sentence was also warranted due to the length of time Johnson stole funds from the Housing Authority.
The charges against Johnson were the result of an investigation conducted by the U.S. Department of Housing and Urban Development’s Office of Inspector General. Assistant U.S. Attorney Taylor L. Kraus prosecuted this case.
Crown Point Woman Sentenced to 46 Months in Prison and Ordered to Repay RestitutionRead the Press Release
HAMMOND – Lorraine Duchscher, 50 years old, of Crown Point, Indiana, was sentenced by United States District Court Judge Philip P. Simon after pleading guilty to three counts of wire fraud.
Duchscher was sentenced to 46 months in prison followed by 2 years of supervised release and was ordered to pay $490,958.35 in restitution to the victim of the offense.
According to documents in the case, between March 2017 and December 2019, Duchscher worked as an office manager for a company in Crown Point. In this capacity, she had unsupervised access to the company’s bank account, financial records and payroll information. For almost three years, Duchscher made regular adjustments to her paychecks and gave herself additional pay to which she was not entitled. She also wrote over 100 unauthorized business checks to herself and another employee, which were cashed at local banks and currency exchanges. Over the course of the scheme, Duchscher defrauded the company out of $490,958.35; money she used to fund her lavish lifestyle which included the purchase of airline tickets, rental cars, vacation home rentals, entertainment, and cosmetic procedures, among other things.
This case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Jennifer Chang and Steven J. Lupa.
Cincinnati Man Sentenced to 210 Months for Drug Trafficking ConspiracyRead the Press Release
COVINGTON, Ky. – A Cincinnati man, Carlos Edward Thurman, Jr., 40, was sentenced on Thursday, to 210 months in federal prison, by U.S. District Judge David L. Bunning, for conspiracy to distribute and possession with intent to distribute methamphetamine, heroin, and cocaine.
According to court documents, from May 1, 2020 through June 2, 2021, Thurman conspired with his co-defendants, to distribute and possess with intent to distribute 50 grams or more of methamphetamine, heroin, and cocaine. Law enforcement made several controlled purchases from Thurman and his co-defendants and found two firearms and more than $17,000 in cash from residences connected to Thurman.
Thurman had previously been convicted in July 2016 of Trafficking in Heroin in Hamilton County, Ohio.
Under federal law, Thurman must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 10 years.
Thurman’s co-defendants, Mario Renard Baker, 44, Edward Allen Mashburn Jr., 49, Maurice Lamont Raysor, 45, Romeo Jawan Richardson, 33, and Antoine Martez Williams, 38, have pleaded guilty and are awaiting sentencing.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; and Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentence.
The investigation was conducted by the FBI. Assistant U.S. Attorney Tony Bracke is prosecuting the case on behalf of the United States.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
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ChristianaCare Pays $42.5 Million to Resolve Health Care Fraud AllegationsRead the Press Release
WILMINGTON, Del. – U.S. Attorney David C. Weiss announced today that ChristianaCare has paid $42.5 million to resolve allegations of health care fraud arising under the federal False Claims Act and the Delaware False Claims and Reporting Act. ChristianaCare operates three hospitals and numerous other healthcare facilities in northern Delaware and the surrounding area. The settlement amount has been allocated between the United States and the State of Delaware based on the value of the underlying healthcare claims.
In a complaint filed under the whistleblower provisions of the False Claims Act in 2017, ChristianaCare’s former chief compliance officer alleged that ChristianaCare had provided illegal remuneration to non-employee neonatologists and surgeons in the form of services from ancillary support providers (including nurse practitioners, hospitalists, and physician assistants) to inpatients at ChristianaCare hospitals. The lawsuit alleged that the services of the ancillary support providers impermissibly sought to induce those neonatologists and surgeons to refer their patients to ChristianaCare hospitals and created financial relationships between the non-employee providers and ChristianaCare. As a result, the complaint alleged, ChristianaCare’s claims to government-funded healthcare programs, including Medicare and Medicaid, for the care it provided to the referred patients during their hospitalization violated the federal Anti-Kickback Statute and the physician self-referral law, also known as the Stark Law. In 2020, after the conduct at issue in this case, the federal Centers for Medicare and Medicaid Services issued additional guidance, clarifying the billing and patient-referral rules surrounding services provided by hospitals during inpatient stays.
“The prohibitions on kickbacks and self-referrals in federal healthcare programs are designed to ensure that the medical decisions of healthcare providers are driven by what is in the best interest of patient care, not provider profit,” said U.S. Attorney Weiss. “That is true regardless of who provides the care, whether it is a solo practitioner or the largest healthcare system. My office will continue to vigorously enforce these prohibitions so that Delawareans can receive the care that is appropriate to their medical needs.”
A whistleblower suit, or qui tam action, under the False Claims Act, is commenced by an individual, known as a “relator,” filing a complaint under seal in the U.S. District Court, and providing a copy of the complaint and other evidence to the local U.S. Attorney. The United States then has an opportunity to investigate the claims. The False Claims Act provides the whistleblower with a share of the government’s recovery.
The claims resolved by the settlement are allegations only and there has been no determination of liability. Assistant U.S. Attorney Dylan J. Steinberg represented the United States in this matter.
Related court documents and information from the civil lawsuit are on PACER by searching for Case No. 1:17-cv-419-RGA.
California Man Pleads Guilty to Tax FraudRead the Press Release
A California man pleaded guilty today to conspiring to file false claims against the United States.
According to court documents and statements made in court, from 2016 to 2020, Richard Jason Mountford conspired with another individual to submit false individual income tax returns seeking refunds to which they were not entitled. Mountford and his co-conspirator filed income tax returns in their own names, as well as in the names of two other unwitting individuals, that falsely reported they were employed by a company, received wages from that company, and had federal taxes withheld from those wages, fraudulently claiming a refund was due. Most of the returns filed as part of the scheme also falsely reported alimony payments to increase the refund amount.
Based on these fraudulent returns, the IRS issued $873,723.53 in unwarranted refunds to the co-conspirators. Mountford deposited $757,075.53 of these fraud proceeds into his own bank accounts and subsequently purchased nearly $360,000 worth of new cars. He also distributed to his co-conspirator about $170,000 in cash and gold bars for his role in the scheme.
Mountford is scheduled to be sentenced by Judge Troy L. Nunley for the Eastern District of Califonia on April 11, and faces a maximum penalty of 10 years in prison. He also faces a period of supervised release, restitution and monetary penalties. Judge Nunley 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 and U.S. Attorney Phillip A. Talbert for the Eastern District of California made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys John C. Gerardi and Charles A. O’Reilly of the Tax Division and Assistant U.S. Attorney Dhruv M. Sharma for the Eastern District of California are prosecuting the case.
California Man Pleads Guilty to Tax FraudRead the Press Release
SACRAMENTO, Calif. — Richard Jason Mountford, formerly of Monterey County, pleaded guilty today to conspiring to file false claims against the United States, U.S. Attorney Phillip A. Talbert and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced.
“The U.S. Attorney’s Office is committed to investigating and prosecuting tax fraud,” said U.S. Attorney Talbert. “Fraudulent tax preparation schemes utilizing false and inflated deductions cost the government millions of dollars each year.”
“Mr. Mountford defrauded the U.S. government and every American taxpayer through this selfish scheme,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Our CI special agents are the best in the world at following the money to find evidence for conviction, a lesson Mr. Mountford learned the hard way.”
According to court documents, from 2016 to 2020, Mountford conspired with another individual to submit false individual income tax returns seeking refunds to which they were not entitled. Mountford and his co-conspirator filed income tax returns in their own names, as well as in the names of two other unwitting individuals, that falsely reported they were employed by a company, received wages from that company, and had federal taxes withheld from those wages, fraudulently claiming a refund was due. Most of the returns filed as part of the scheme also falsely reported alimony payments in an effort to increase the refund amount.
Based on these fraudulent returns, the IRS issued $873,723 in unwarranted refunds to the co-conspirators. Mountford deposited $757,075 of these fraud proceeds into his own bank accounts and subsequently purchased nearly $360,000 worth of new cars. He also distributed to his co-conspirator about $170,000 in cash and gold bars for his role in the scheme.
This case is the product of an investigation by IRS Criminal Investigation. Trial Attorneys John C. Gerardi and Charles A. O’Reilly of the Tax Division and Assistant U.S. Attorney Dhruv M. Sharma are prosecuting the case.
Mountford is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on April 11, 2024. Mountford faces a maximum statutory penalty of 10 years in prison. 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.
California Man Indicted for Shipping Methamphetamine to the Capital Region and Selling FentanylRead the Press Release
ALBANY, NEW YORK –Michael Laudicina, age 46, of Santa Cruz, California, was arraigned today on an indictment charging him with distributing a controlled substance.
United States Attorney Carla B. Freedman; Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA) New York Division; and Saratoga County Sheriff Michael Zurlo made the announcement.
The indictment alleges that Laudicina shipped at least 50 grams of methamphetamine to New York on three occasions, once each in July 2022, August 2022 and November 2022. On a fourth occasion, in August 2022, Laudicina sold fentanyl. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charges filed against Laudicina carry a term of imprisonment at least 10 years and up to life; a fine of up to $10 million; and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Laudicina was arraigned today in Albany, before United States Magistrate Judge Christian F. Hummel, and ordered detained pending a trial before Senior United States District Judge Gary L Sharpe.
The DEA and Saratoga County Sheriff’s Office are investigating the case. Assistant U.S. Attorneys Jonathan S. Reiner and Ashlyn Miranda are prosecuting the case.
California Man Accused of Defrauding the Federal Government over $100,000 in Unemployment Benefits During COVID-19Read the Press Release
SALT LAKE CITY, Utah – An indictment was unsealed after a California man was arrested and is scheduled to appear in a Salt Lake City federal courthouse. The eight count indictment charges the defendant for unlawfully collecting unemployment insurance during COVID-19 from California while living and working in Utah. He also allegedly assisted others in committing the same acts for a cut of their unemployment insurance funds administered under the CARES Act.
According to court documents, Robert James Waff, 49, of Sacramento, CA, allegedly submitted an online application for unemployment insurance (UI) benefits on June 19, 2020, through the California Employment Development Department (EDD) website, while he was a resident of Clearfield, Utah. Waff listed his residence and mailing address as Fair Oaks, CA. Waff also claimed he had lost employment due to COVID-19 and that before losing employment his annual income was $44,000, and that he planned to return to work for his previous employer. Waff’s fraudulent California EDD application and continued renewal of his California EDD benefits resulted in Waff receiving over $36,000 in fraudulent payments.
Beginning in July 2020, Waff also allegedly helped three coconspirators apply for COVID-19 related California unemployment benefits through the California EDD website. None of the applicants lived or worked in the state of California. In return, Waff requested a cash payout from each applicant as compensation for assisting with the false application. As a result of the fraudulent filings, the actual loss resulting from fraudulent UI benefit claims exceeded $100,000.
Waff is charged with one count of wire fraud, three counts of wire fraud aiding and abetting, and four counts of mail fraud aiding and abetting. His initial court appearance on the indictment is scheduled for Jan. 5, 2024, at 1:00 p.m. in courtroom 8.4 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is being investigated jointly by the FBI Salt Lake City Division and the U.S. Department of Labor, Office of Inspector General (OIG).
Assistant United States Attorney Brian Williams of the District of Utah is prosecuting the case.
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.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Butler Resident Sentenced to Prison for Possession of a Stolen, Loaded FirearmRead the Press Release
PITTSBURGH, PA – A resident of Butler, PA, has been sentenced in federal court to a total term of 66 months (5 ½ years) in prison, followed by three (3) years of supervised release, in connection with his possession of a stolen, loaded firearm and for committing that offense while serving a period of supervised release on his prior federal drug-trafficking conviction, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Charles Perkins, age 29.
According to information presented to the court, on February 1, 2023, the Butler County Anti-Drug Task Force obtained a search warrant for Perkins and an apartment associated with him. Upon approaching Perkins outside the residence, he ran from law enforcement and threw a loaded handgun. Perkins fell and was arrested. An examination of the handgun revealed that it had been reported stolen. Judge Conti previously sentenced Perkins to 15 months’ imprisonment and three years of supervised release for his last federal offense, possession with intent to distribute quantities of fentanyl and crack. He was serving his supervised release at the time he committed the firearm offense.
Prior to imposing sentence, Judge Conti revoked Perkins’ federal supervised release and sentenced him to six (6) months in prison for his prior drug offense, to be served consecutively to the five-year term of imprisonment for the new firearm offense.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Butler County Anti-Drug Task Force for the investigation leading to the successful prosecution of Perkins.
Bulgarian National Arrested for Assaulting ICE Deportation OfficerRead the Press Release
NEWARK, N.J. – A Bulgarian national was arrested for assaulting a U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) deportation officer, U.S. Attorney Philip R. Sellinger announced.
Vasil Petrov, 40, of Bulgaria, is charged by complaint with one count of assaulting a federal officer. Petrov appeared today before U.S. Magistrate Judge Edward S. Kiel in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
On Dec. 27, 2023, Petrov was in the lawful custody of ICE officers at an ICE facility in Elizabeth, New Jersey, pending removal from the United States. While being processed for removal, Petrov, without provocation, struck the victim deportation officer in the chin with a closed fist. As a result of Petrov’s assault, the victim deportation officer sustained bodily injury, including a laceration on his chin.
The charge carries a maximum penalty of 20 years in prison and a fine of up to $250,000.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Chana Y. Zuckier of the General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: David Holman Esq., Assistant Federal Public Defender, Newark
petrov.complaint.pdfBrownsville Resident Sentenced to 51 Months in Prison for Possession of Material Depicting the Sexual Exploitation of a MinorRead the Press Release
PITTSBURGH, PA - A resident of Brownsville, Pennsylvania, has been sentenced in federal court to 51 months’ imprisonment, 10 years of supervised release, and has been ordered to pay $28,000.00 in restitution on his conviction of possessing material depicting the sexual exploitation of a minor, United States Attorney Eric G. Olshan announced today.
United States District Judge Cathy Bissoon imposed the sentence on Karl D. Lutes (52) of Brownsville, PA.
According to information presented to the court at the time of Lutes’s guilty plea, Lutes had been sharing images over the Internet which depicted the sexual exploitation of minors. He was identified through an investigation undertaken by agents of Homeland Security Investigations. On February 11, 2020, agents executed a search warrant at Lutes’s residence and found him in possession of hundreds of videos and still images in computer graphics files depicting the sexual exploitation of minors, some of whom had not yet attained the age of 12 years.
Prior to imposing sentence, Judge Bissoon stated that a sentence that included 51 months in prison served to protect the public, to provide for just punishment, and to afford Lutes with needed rehabilitation. Judge Bisson further highlighted that the submitted Victim Impact Statements provided a view of the real harm to children stemming from crimes involving their sexual exploitation.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Homeland Security Investigations for the investigation leading to the successful prosecution of Lutes.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
2 Indicted in $8.5 Million Nationwide Airbnb/Vrbo Scam that Allegedly Defrauded 1000s of Victims and Discriminated Against RentersRead the Press Release
LOS ANGELES – A federal grand jury has indicted two men on federal fraud charges that allege a double-booking, bait-and-switch scam run through online property rental platforms – primarily Airbnb – that brought in more than $8.5 million through misleading listings and fraudulently canceling reservations, which included discrimination against Black people, the Justice Department announced today.
Shray Goel, 35, of Miami, and Shaunik Raheja, 34, of Denver, were charged Wednesday in a superseding indictment that accuses them of fraud in connection with more than 10,000 reservations linked to nearly 100 properties across 10 states.
Goel was initially charged in an indictment returned on December 13. He was arrested in Florida on December 27 and was released on bond the following day. Raheja was added as a defendant in the superseding indictment. Both defendants are expected to be arraigned in United States District Court in Los Angeles in the coming weeks.
The superseding indictment alleges that Goel and Raheja owned and operated a short-term property rental business that they used to defraud Airbnb, Vrbo and guests renting properties through those platforms. The business operated under various names, including Abbot Pacific LLC.
Goel, Raheja and others who worked with them are alleged to have owned and leased properties throughout the United States for the rental business, including properties in Los Angeles; Malibu, California; Marina Del Rey, California; Denver; Chicago; Davenport, Florida; Savannah, Georgia; Bloomington, Indiana; South Bend, Indiana; Cleveland; Nashville, Tennessee; Austin, Texas; Dallas and Milwaukee. By 2019, according to the superseding indictment, they were managing nearly 100 properties across the United States.
To carry out the fraudulent scheme, Goel and Raheja allegedly double-booked properties through multiple listings of the same property on Airbnb and Vrbo, and then invented bogus last-minute excuses – often claiming plumbing problems – to cancel overbooked guests or trick them into moving to inferior replacement accommodations. According to the superseding indictment, members of the conspiracy profited from the scheme by running a secret bidding war for the properties – meaning they posted multiple listings for the same property at different prices for the same night, allowed the highest bidder to rent a particular property, and then cancelled or switched the lower-paying guests to a different property in the area. The scheme also allegedly allowed Goel, Raheja and their co-conspirators to keep all of their properties in any given area at maximum capacity by using popular listings as bait to trick guests into booking those listings, and then steering overbooked guests at the last minute to less popular and open listings in the same area.
The superseding indictment further alleges that “Goel and Raheja made decisions about which guests to keep and which to cancel based in part on their racial prejudices and discrimination.” The defendants, according to the indictment, tried to avoid renting to guests they perceived to be Black and “in this way depriv[ed] these guests of their property interest in the reservations and otherwise caus[ed] these guests to suffer monetary losses when their reservations were cancelled.”
“This deplorable scheme victimized thousands of consumers and families across the country, some of whom allegedly were discriminated against because of racial bias,” said United States Attorney Martin Estrada. “Fueled by greed, the defendants deceived consumers about the locations and conditions of properties, canceled reservations to double-book properties and based on racial prejudices, and lied to victims leaving them scrambling to find last-minute replacement accommodations. The sheer number of victims is astonishing, as is the millions of dollars earned though the scheme that took advantage of the reputations of online rental platforms that offer a valuable service.”
“The defendants are charged with preying on unsuspecting travelers and robbing them of time and money, leaving them with no choice but to settle for inferior lodging at the last minute,” said Donald Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The conspiracy charge alleging that the defendants discriminated against potential renters based on their skin color is a reprehensible abuse which must not be tolerated in the United States. The FBI will work with our federal partners and with the private sector to ensure business practices in the vacation rental industry are free of fraud and bias.”
“This indictment charges defendants for their alleged roles in a scheme to defraud Airbnb, Vrbo, and guests renting properties through those platforms,” said Special Agent in Charge Ryan Korner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). “FDIC-OIG remains steadfastly committed to protecting our nation and innocent victims by identifying and bringing to justice individuals who orchestrate these types of fraudulent schemes.”
According to the superseding indictment, Goel, Raheja and their co-schemers used fake host names and, in certain instances, other people’s identities to list properties. They allegedly used these fake host accounts to conceal their own identities, to double-book properties, and to post fabricated positive reviews of their properties. They were also allegedly using the fake host accounts to continue to list properties after they had been banned from Vrbo in 2015 because of repeated host cancellations and guest complaints.
In some cases, according to the superseding indictment, Goel, Raheja and their accomplices listed fake addresses, addresses that did not have any rental housing, were unaffiliated with the schemers, or did not exist at all – using these fake addresses to create duplicate listings for a single purported property. The fake addresses also allegedly allowed them to evade local rules and regulations governing short-term rentals, and to control who had access to properties.
To further their fraud, Goel and Raheja allegedly took steps to prevent negative reviews from affecting their business by falsely discrediting such reviews and otherwise trying to hide them from prospective future guests. According to the superseding indictment, they would post bogus negative reviews about the guests who had panned their listings or called out the fraudulent and deceptive listing practices, and they would remove negatively reviewed listings and then re-list the properties using new listing identifiers, thereby purging the bad reviews from the properties.
According to the superseding indictment, Goel and Raheja used these and other lies and misrepresentations to trick guests into booking properties they would not have otherwise booked and to keep payments from guests entitled to refunds. The last-minute nature of the cancellations also caused guests and the rental platforms to suffer losses when guests were forced to find alternative lodging at the last minute.
“In 2018 and 2019, in the course of the scheme and in furtherance of it, defendants Goel and Raheja and others working with them and at their direction booked more than 10,000 reservations through Airbnb, receiving more than $7 million in payouts on those reservations; they booked additional and sometimes conflicting reservations through Vrbo and received more than $1.5 million in additional payouts from those reservations,” according to the indictment.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The superseding indictment charges Goel and Raheja with conspiracy to commit wire fraud and 13 counts of wire fraud. Goel is additionally charged with two counts of aggravated identity theft.
The conspiracy and wire fraud charges each carry a statutory maximum penalty of 20 years in federal prison. There is a two-year mandatory consecutive sentence for the aggravated identity theft counts.
The FBI and FDIC-OIG are investigating this matter. The Federal Housing Finance Agency – Office of Inspector General is assisting in the investigation.
Both Airbnb and Vrbo are cooperating with the government in this investigation, and the government recognizes and appreciates that cooperation.
Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section is prosecuting the case.
19 Individuals Worldwide Charged in Transnational Cybercrime Investigation of the xDedic MarketplaceRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the culmination of a transnational cybercrime investigation involving the xDedic Marketplace. According to court documents, the xDedic Marketplace was a website on the dark web that illegally sold login credentials (usernames and passwords) to servers located across the world and personally identifiable information—dates of birth and Social Security numbers—of U.S. residents. Once purchased, criminals used these servers to facilitate a wide range of illegal activity that included tax fraud and ransomware attacks. The xDedic administrators practiced exceptional operational security, operating the website across a widely distributed international network, and utilizing cryptocurrency in order to hide the locations of the Marketplace’s underlying servers and the identities of its administrators, sellers, and buyers. In total, xDedic offered more than 700,000 compromised servers for sale, including at least 150,000 in the United States and at least 8,000 in Florida. Marketplace victims spanned the globe and industries, including local, state, and federal government infrastructure, hospitals, 911 and emergency services, call centers, major metropolitan transit authorities, accounting and law firms, pension funds, and universities.
In January 2019, the U.S. Attorney’s Office for the Middle District of Florida (Tampa Division) seized xDedic’s domain names and dismantled the website’s infrastructure, effectively ceasing its operation. The international operation to dismantle and seize this infrastructure was the result of close cooperation with law enforcement authorities in Belgium and Ukraine, the European law enforcement agency Europol, the National High Tech Crime Unit from the Dutch National Police, and the German Bundeskriminalamt.
In the years that followed the takedown of the xDedic Marketplace, the U.S. Attorney’s Office investigated and charged individuals involved in every level of the website’s operation, including its administrators, server sellers, and buyers. For example, Alexandru Habasescu and Pavlo Kharmanskyi were Marketplace administrators. Habasescu, who resided in Chisnau, Moldova, was the lead developer and technical mastermind for the Marketplace, while Kharmanskyi, who lived in Kiev, Ukraine, advertised for the website, paid administrators, and provided customer support to buyers. Habasescu was taken into custody in the Spanish Canary Islands in 2022 and extradited to the United States, while Kharmanskyi was arrested at the Miami International Airport in 2019 as he attempted to enter the United States. Habasescu and Kharmanskyi were sentenced to 41 and 30 months’ imprisonment, respectively.
Marketplace seller Dariy Pankov, a Russian national, was one of the highest sellers on the Marketplace by volume, listing for sale the credentials of more than 35,000 compromised servers located all over the world and obtaining more than $350,000 in illicit proceeds. Pankov’s criminal activities were facilitated by a powerful malicious software program he developed named “NLBrute,” that was capable of compromising protected computers by decrypting login credentials. Pankov was taken into custody in the Republic of Georgia in 2022 and extradited to the United States. He was subsequently sentenced to 60 months in federal prison.
Nigerian national Allen Levinson was a prolific buyer on the Marketplace who held particular interest in purchasing access to U.S.-based Certified Public Accounting firms. He used the information he obtained from those servers to file hundreds of false tax returns with the United States government, requesting more than $60 million in fraudulent tax refunds. Levinson was taken into custody in the United Kingdom in 2020 and extradited to the United States. He was subsequently sentenced to 78 months in federal prison.
Many of the charged defendants are foreign nationals and hold citizenship in countries that do not extradite their nationals, requiring the United States to locate and extradite subjects from countries that do. As identified in the table below, to date, 17 defendants have been charged and/or extradited to the United States.
Name
(Age, Nationality)
Offense of Conviction
Term of
Imprisonment
Allen Levinson
(31, Nigeria)
Conspiracy to Commit
Mail and Wire Fraud
78 months
T’Andre McNeely
(33, California)
Conspiracy to Commit
Mail and Wire Fraud
78 months
Michael Carr
(33, California)
Conspiracy to Commit
Mail and Wire Fraud
78 months
Dariy Pankov
(29, Russia)
Conspiracy to Commit
Access Device and Computer Fraud
60 months
Glib Ivanov-Tolpintsev
(29, Ukraine)
Conspiracy to Commit
Access Device and Computer Fraud
48 months
Alexandru Habasescu
(31, Moldova)
Access Device Fraud
41 months
Adedotun Adejumo
(45, Oklahoma)
Conspiracy to Commit Wire Fraud
33 months
Pavlo Kharmanskyi
(32, Ukraine)
Access Device Fraud
30 months
Joshua Spencer
(29, New York)
Conspiracy to Commit
Access Device Fraud
28 months
Ibrahim Jinadu
(36, Georgia)
Conspiracy to Commit
Wire Fraud
27 months
Brandon Williams
(34, California)
Conspiracy to Commit
Mail and Wire Fraud
12 months
Harold McKinzie
(29, Illinois)
Wire Fraud
5 years’ probation
Bamidele Omotosho
(42, Nigeria)
Conspiracy to Commit Wire Fraud
Sentence pending
Olayemi Adafin
(38, United Kingdom)
Conspiracy to Commit Wire Fraud
Sentence pending
Olakunle Oyebanjo
(29, United Kingdom)
Conspiracy to Commit Wire Fraud
Sentence pending
Akinola Taylor
(38, United Kingdom)
Conspiracy to Commit Wire Fraud
Sentence pending
Oluwarotimi Ogunlana
(29, Texas)
Conspiracy to Commit Wire Fraud
Sentence pending
In addition to the individuals above, xDedic Marketplace buyers Olufemi Odedeyi (42, United Kingdom) and Oluwaseyi Shodipe (41, United Kingdom) have been charged with conspiracy to commit wire fraud and aggravated identity theft. Both and are pending extradition from the United Kingdom. Shodipe has also been charged with making false claims and theft of government funds. If convicted, Odedeyi and Shodipe each face a maximum penalty of 20 years in federal prison.
These cases were led by the Tampa Division of the Federal Bureau of Investigation and the Tampa Field Office of Internal Revenue Service - Criminal Investigation. Substantial assistance was provided by the IRS-CI Cyber Crimes Unit (Washington, D.C.), the Department of Justice’s Office of International Affairs, and Homeland Security Investigations. This investigation also benefited greatly from cooperation with foreign law enforcement in Belgium, Georgia, Germany, Poland, Spain, the United Kingdom, Romania, Switzerland, Estonia, Latvia, Bulgaria, Ukraine, Lithuania, and Moldova. The cases are being prosecuted by Assistant United States Attorneys Rachel K. Jones, Carlton C. Gammons, and Suzanne Nebesky.
"Rainbow" Fentanyl and Illegal Firearm Land Oklahoma City Man in Federal Prison for 78 MonthsRead the Press Release
Fentanyl was Mailed to Metro Post Office and Picked Up by Defendant
OKLAHOMA CITY – Yesterday, CRISTOBAL CALDERON, 28, of Oklahoma City, was sentenced to serve 78 months in federal prison for drug conspiracy and for being a drug user in possession of a firearm, announced U.S. Attorney Robert J. Troester.
“Fentanyl is destroying lives every day, devastating families and communities,” said U. S. Attorney Robert J. Troester. “My office is committed to protect the public from further harm by aggressively pursuing those who dispense this deadly poison. I commend the Postal Inspection Service and DEA for their tireless commitment to fight this fentanyl epidemic.”
“The U.S. Postal Inspection Service values our partnership with the DEA and the U.S. Attorney’s Office in the Western District of Oklahoma, who held Calderon responsible for his dangerous activity,” said Kai Pickens, Inspector in Charge of the U.S. Postal Inspection Service, Fort Worth Division. “The Postal Service has no interest in being the unwitting accomplice to anyone using the U.S. Mail to distribute illegal drugs. Our Contraband Interdiction and Investigations program focuses on ensuring these dangerous and deadly synthetic opioids stay out of neighborhoods across America. These crimes are a priority for Postal Inspectors and demonstrate the importance of our mission that includes the safeguarding of the Postal Service, its customers, and preventing the illegal use of the U.S. Mail.”
“As we continue to lose lives by this fentanyl epidemic, know that any pill, regardless of color, shape, or size that you purchase on the street must be treated as if it were potentially deadly illicit fentanyl,” said Eduardo A. Chávez, Special Agent in Charge of DEA Dallas, which oversees operations in Oklahoma. “Mr. Calderon is being held accountable for the poison that found its way into our community by his hand. Whether it is one pill of fentanyl or 1,000, the DEA will never cease its efforts to rid these drugs from the streets of Oklahoma.”
On February 14, 2023, Calderon was charged by Superseding Information with drug conspiracy and being a drug user in possession of a firearm. According to court documents, on November 3, 2022, the United States Postal Inspection Service (USPIS) intercepted a package believed to contain a controlled substance. USPIS authorities searched the package and located more than 2 kilograms worth of counterfeit Oxycodone pills, which later tested positive for fentanyl. The complaint describes the pills as being “rainbow fentanyl.” The Drug Enforcement Administration has advised that “rainbow fentanyl” is dyed into a variety of bright colors to avoid detection and to make the highly addictive drug more appealing to young people.
Days after the onset of the investigation, public record reflects that an individual called a U.S. Post Office in Oklahoma City to inquire on the above-mentioned package. On November 8, 2022. Calderon picked-up the package and was arrested shortly thereafter at an Oklahoma City motel. At the time of his arrest, authorities located a firearm in Calderon’s waistband.
On April 4, 2023, Calderon pleaded guilty and admitted to (1) possessing fentanyl with the intent to distribute the substance and (2) possessing a handgun while being a user of illegal drugs.
At the sentencing hearing yesterday, U.S. District Judge Timothy D. DeGiusti sentenced Calderon to serve 78 months in federal prison, followed by five years of supervised release. In announcing his sentence, Judge DeGiusti noted the especially dangerous nature of fentanyl. Calderon has been in federal custody since November 14, 2022.
This case is the result of an investigation by the United States Postal Inspection Service and the Drug Enforcement Administration. Assistant U.S. Attorneys Chelsea Pratt and Daniel Gridley prosecuted the case.
Reference is made to public filings for additional information.
3 January 2024
Woman Sentenced for Trafficking Methamphetamine Through NebraskaRead the Press Release
Acting United States Attorney Susan Lehr announced that Daisy Flores, 22, of Fresno, California was sentenced on January 3, 2024, in federal court in Omaha, Nebraska for possession with intent to distribute methamphetamine. United States District Court Judge Brian C. Buescher sentenced Flores to 121 months imprisonment. There is no parole in the federal system. After her release from prison, Flores will begin a 3-year term of supervised release.
On February 6, 2022, an Otoe County sheriff’s deputy pulled over a Ford Expedition near the Nebraska-Iowa border for a traffic violation. The Expedition was driven by Flores’s mother, Teresa Martinez, and Flores was the passenger. A search of the vehicle uncovered approximately eight pounds of methamphetamine and approximately four pounds of marijuana. Crime laboratory testing of the methamphetamine confirmed purity of approximately 89 percent.
Martinez was sentenced in November to 87 months imprisonment.
This case was investigated by the Otoe County Sherriff’s Department and Homeland Security Investigations. The Douglas County Sheriff’s Office assisted with testing of the methamphetamine.
Virginia Man Indicted for Sexual Exploitation of Ten-Year-Old GirlRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Manassas, Virginia man was indicted today for engaging in sexual activity with a ten-year-old girl he met on social media.
According to court documents, Daniel Eliazar Ramos Rosa, 23, exchanged over 1,000 messages, photos, and videos with the victim via Snapchat, pressuring her for photos and sexual favors. Rosa then traveled to the victim’s Harpers Ferry home, climbed into her bedroom window, and engaged in sexual activity with her. Rosa filmed himself having sex with the girl before fleeing after her father entered the room, leaving behind shoes, clothing, and sex toys.
“This case is a grim reminder of how sexual predators utilize social media to gain access to children,” said United States Attorney William Ihlenfeld. “I applaud the work of the FBI, the Jefferson County Sheriff’s Department, and the federal prosecutors in my office for bringing Mr. Rosa to justice.”
Rosa is charged with coercion and enticement of a minor for sex, travel with intent to engage in sex with a minor, and production of child pornography.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting this case.
The FBI and Jefferson County Sheriff’s Department investigated.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Vermont Man Pleads Guilty to Firearm and Drug OffensesRead the Press Release
BOSTON – A Vermont man pleaded guilty today in federal court in Springfield in connection with illegally possessing a firearm and ammunition and possessing with intent to distribute methamphetamine.
Jeffrey Baird, 43, pleaded guilty to one count of being a felon in possession of a firearm and ammunition and one count of possessing with the intent to distribute methamphetamine. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for April 4, 2024. Baird was indicted by a federal grand jury in March 2022.
In December 2021, law enforcement stopped Baird’s vehicle travelling north on Route 91 in Northampton. Baird had a fake paper license plate taped to his back window and had been driving without any valid driver’s license. Baird was taken into custody. During a subsequent search of Baird’s vehicle, a revolver and five rounds of ammunition were found along with 207 grams of methamphetamine in a Ziplock bag – which carried a street value of between $6,000 and $10,000. Additionally, three more rounds of ammunition were found on Baird’s person inside his Hell’s Angels vest.
Baird is prohibited from possessing firearms and ammunition due to prior convictions for firearms offenses.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of possession with the intent to distribute methamphetamine provides for a sentence up to 20 years in prison, up to three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla, Chief of the Springfield Branch Office, is prosecuting the case.
Two-time bank fraudster sentenced to four years in prisonRead the Press Release
ATLANTA - Michael Adeola Akhiero has been sentenced for bank fraud and aggravated identity theft concerning his use of victims’ personal and bank account information to create and deposit counterfeit checks totaling more than $250,000. Akhiero committed the offenses after having previously been convicted of bank fraud and while serving a term of supervised release.
“Akhiero chose to reoffend rather than rehabilitate,” said U.S. Attorney Ryan K. Buchanan. “His actions caused substantial financial losses to numerous victims and banks. His fraud and greed has resulted in the loss of his freedom and hopefully sends a powerful message of deterrence to others.”
“Clearly, Akhiero has not learned the lesson, that crime doesn’t pay, so he will continue to face justice for his repeated fraudulent actions,” said Acting Special Agent in charge Travis Pickard who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI will continue to aggressively investigate those criminals who attempt to defraud our nation’s financial infrastructure.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Shortly after Akhiero’s release from federal prison for a prior bank fraud conviction, he engaged in a fraudulent check scheme and deposited numerous counterfeit checks purportedly issued from corporate and individual victims’ bank accounts. Between October 2019 and May 2022, Akhiero used stolen identity and bank account information to create these counterfeit checks. He then deposited the fake checks into his personal and business bank accounts resulting in the withdrawal of over $250,000 from multiple victims’ accounts.
Michael Adeola Akhiero, 30, of Atlanta, Georgia, was sentenced to four years in prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $77,200. Akhiero was convicted on these charges on August 1, 2023, after he pleaded guilty.
The Court also found that Akhiero violated the terms of his supervised release from his prior bank fraud case when he committed new criminal conduct, in addition to other violations. The Court revoked his supervised release term and sentenced him to one year in prison, to run concurrently with his four-year prison term for bank fraud and identity theft.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorney Kelly K. Connors prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.