Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
22 December 2023
Jacksonville Man Sentenced to More Than Six Years in Prison for Illegal Firearm PossessionRead the Press Release
Jacksonville, Florida – Chief United States District Judge Timothy J. Corrigan has sentenced Pocols Lashawn Jackson (39, Jacksonville) to six years and three months in federal prison for possessing a firearm as a convicted felon. Jackson had pleaded guilty on August 22, 2023.
According to court documents, on November 21, 2022, officers from the Jacksonville Sheriff conducted a traffic stop of Jackson’s vehicle due to Jackson not wearing a seatbelt. A vehicle search was conducted due to the smell of marijuana coming from the car. During the search, a loaded semi-automatic pistol was found under the driver’s seat. At the time, Jackson had nine prior felony convictions. As such, he is prohibited from possessing a firearm or ammunition under federal law.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sherriff’s Office. It was prosecuted by Assistant United States Attorney John Cannizzaro.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Dec. 21 was:
Dashawn Kiree Bryant, 31, of Billings, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Bryant faces a mandatory minimum of five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Bryant was released pending further proceedings. The Eastern Montana High Intensity Drug Trafficking Area Task Force, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Billings Police Department and Yellowstone County Sheriff’s Office conducted the investigation. PACER case reference. 23-132.
Tirrell Lewis, 43, of Billings, on charges of possession with intent to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime and prohibited person in possession of a firearm. If convicted of the most serious crime, Lewis faces a mandatory minimum of five years to 40 years in prison, a $5 million fine and at least four years of supervised release on the drug crime and a mandatory five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the crime of possessing a firearm in furtherance of drug trafficking. Lewis was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Billings Police Department conducted the investigation. PACER case reference. 23-147.
Appearing on Dec. 19 was:
David Antonio Rodas Jr., 38, of Billings, on charges of possession with intent to distribute controlled substances, possession of firearms in furtherance of a drug trafficking crime and prohibited person in possession of firearms. If convicted of the most serious crime, Rodas faces a maximum of 20 years in prison, a $1 million fine and three years of supervised release on the drug crime and a mandatory five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the crime of possessing a firearm in furtherance of drug trafficking. Rodas was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Division of Criminal Investigation and Montana Highway Patrol conducted the investigation.
PACER case reference. 23-138.
Robert Stuart Quam, 42, of Belgrade, on charges of conspiracy to possess with intent distribute methamphetamine, possession with intent to distribute meth, possession of a firearm during a drug trafficking crime and felon in possession of a firearm. If convicted of the most serious crime, Quam faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug crimes and a mandatory five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the crime of possessing a firearm in furtherance of drug trafficking. Quam was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Division of Criminal Investigation, Billings Police Department and Missouri River Drug Task Force conducted the investigation. PACER case reference. 23-118.
Appearing on Dec. 18 was:
Shelby Jean Tripp, 33, of Livingston, on charges of conspiracy to possess with intent to distribute fentanyl. If convicted of the most serious crime, Tripp faces a maximum of 20 years in prison, a $1 million fine and three years of supervised release. Tripp was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Belgrade Police Department conducted the investigation. PACER case reference. 23-125.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Dec. 18 was:
Juan Carlos Santoya, 48, of Belgrade, on charges of conspiracy to possess with intent to distribute cocaine, possession with intent to distribute cocaine and distribution of cocaine. If convicted of the most serious crime Santoya faces a mandatory minimum of five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Santoya was released pending further proceedings. The Missouri River Drug Task Force and Drug Enforcement Administration conducted the investigation. PACER case reference. 23-20.
Piyush Mathew, 30, of Robbinsville Township, New Jersey, on charges of abusive sexual contact in aircraft. If convicted of the most serious crime, Mathew faces a maximum of two years in prison, a $250,000 and five years to life of supervised release. Mathew was released pending further proceedings. The FBI conducted the investigation.
PACER case reference. 23-19.
Appearing on Dec. 15 was:
James Andrew Stringari, 51, of Whitehall, on charges of conspiracy to distribute and possession with intent to distribute meth and fentanyl and possession with intent to distribute meth and fentanyl. If convicted of the most serious crime, Stringari faces a mandatory minimum of 10 years to life in prison, a $10 million fine and five years to life of supervised release. Stringari was detained pending further proceedings. The Missouri River Drug Task Force, U.S. Postal Inspection Service, Montana Division of Criminal Investigation, Montana Highway Patrol and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. PACER case reference. 23-10.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Harrisburg Woman Sentenced to 5 Years’ Imprisonment for A Firearms OffenseRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Taisha Ruiz, age 39, of Harrisburg, Pennsylvania, was sentenced on December 20, 2023, by U.S. District Court Judge Christopher C. Conner to serve five years’ imprisonment to be followed by three years of supervised released based upon her previously entered guilty plea to possessing a firearm in furtherance of drug trafficking.
According to United States Attorney Gerard M. Karam, Harrisburg Police Officers executed a search warrant at Ruiz’s residence and observed her throw a bag from her bedroom window that contained approximately 600 bags of fentanyl, $900 in cash, and her Pennsylvania driver’s license. A search of her bedroom uncovered a .9mm pistol with an obliterated serial number, ammunition, and digital scales.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Harrisburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Johnny Baer and Assistant U.S. Attorney Bruce D. Brandler prosecuted the case.
# # #
Georgia Inmate Guilty of Brokering Large Amounts of Meth SentencedRead the Press Release
ALBANY, Ga. – A Georgia inmate and member of the Sureños criminal gang who was brokering the distribution of at least 250 kilograms of methamphetamine along with other controlled substances like heroin and fentanyl from behind bars was sentenced to serve more than 30 years in prison for his crimes.
Pedro Barragan Valencia aka “Casper” aka “Bossman,” aka “Mexican Hitman Pete,” 46, of Calhoun, Georgia, was sentenced to serve 400 months in prison to be followed by five years of supervised release by U.S. District Judge Leslie Gardner on Dec. 12. Valencia pleaded guilty to conspiracy to possess with intent to distribute controlled substances on June 7. Valencia is not eligible for parole.
“Pedro Valencia directed the distribution of at least 250 kilograms of methamphetamine from behind bars to an armed drug trafficking organization pushing these highly addictive and deadly drugs in Georgia,” said U.S. Attorney Peter D. Leary. “This dangerous drug trafficking organization was dismantled because of the collaboration of federal, state and local law enforcement dedicated to stopping criminals from harming our communities.”
“This conviction serves to put criminals on notice that if you bring illegal drugs into our communities, we will employ whatever means necessary to find you and bring you to justice no matter where you are,” said FBI Atlanta Supervisory Senior Resident Agent of the Macon Office Robert Gibbs. “This prosecution closes a significant pipeline for dangerous drugs running through the streets of Georgia. We are grateful to the many law enforcement agencies whose coordinated efforts achieved this sentence.”
“This successful investigation and prosecution is the result of many law enforcement agencies dedicated to securing our communities; we are grateful for the collaboration and hopeful it will make a difference,” said Upson County Sheriff Dan Kilgore.
According to court documents, FBI was investigating co-defendant Cornelius Leonard aka “Tae,” 29, of Grantville, Georgia, for leading an armed drug distribution organization in late 2021 and early 2022, having made four controlled purchases of methamphetamine from Leonard during that time period. The investigation led to multiple wiretaps on Leonard’s phones. Through these wiretaps, law enforcement agents learned that Leonard was conspiring with Valencia—who was an inmate at Calhoun State Prison—to acquire large quantities of methamphetamine, heroin, fentanyl and other illegal drugs for distribution in Thomaston and Columbus along with other Georgia cities. Valencia supplied Leonard with at least 250 kilograms of methamphetamine.
The following co-defendant is awaiting sentencing:
Cornelius Leonard aka “Tae,” 29, of Grantville, Georgia, pleaded guilty to one count of conspiracy to possess with intent to distribute controlled substances; one count of distribution of methamphetamine; and one count of conspiracy to tamper with a witness and is facing a maximum of life in prison. Sentencing is scheduled for March 24, 2024.
The following co-defendants have been sentenced:
Ramone Zorn aka “Big Razor,” 53, of Thomaston, Georgia, was sentenced to serve 300 months in prison after he pleaded guilty to distribution of methamphetamine;
Kedric Fuller aka “Blakk Ru,” 43, of Woodbury, Georgia, was sentenced to serve 180 months in prison after he pleaded guilty to conspiracy to possess with intent to distribute controlled substances;
Horatio Venable aka “Ray Ray,” 26, of Columbus, was sentenced to serve 144 months in prison after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine;
Markevious Snipes aka “Big Dawg,” 32, of Thomaston, was sentenced to serve 136 months in prison after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine;
Mechile Hobbs, 49, of Thomaston, was sentenced to serve 120 months in prison after she pleaded guilty to possession with intent to distribute methamphetamine;
Darius Wellmaker, 40, of Thomaston, was sentenced to serve 90 months in prison after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine;
Joshua McAfee, 36, of Thomaston, was sentenced to serve 50 months in prison after he pleaded guilty to conspiracy to possess with intent to distribute controlled substances;
Rashard Moreland, 38, of Columbus, was sentenced to serve 40 months in prison after he pleaded guilty to use of a telecommunications facility in furtherance of a drug trafficking crime;
Antovious Hunter aka “Ant,” 41, of Columbus, was sentenced to serve 37 months in prison after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine;
Dustin Robbins, 34, of Columbus, was sentenced to serve 36 months in prison after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine;
Sabrina Smith, 34, of Thomaston, was sentenced to serve 24 months in prison after she pleaded guilty to distribution of methamphetamine;
Natashia Antley, 36, of Thomaston, was sentenced to serve 18 months in prison after she pleaded guilty to use of a communication facility;
Nehemiah Johnson, 30, of Thomaston, was sentenced to serve 18 months in prison after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine;
Jennifer Moss, 39, of Molena, Georgia, was sentenced to serve 18 months in prison after she pleaded guilty to conspiracy to possess with intent to distribute methamphetamine;
Dixie Bailey, 34, of Thomaston, was sentenced to time served after she pleaded guilty to conspiracy to possess with intent to distribute methamphetamine;
Mark Dean, 45, of Manchester, Georgia, was sentenced to time served after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine;
Ashley Ingram, 37, of Cataula, Georgia, was sentenced to time served after she pleaded guilty to conspiracy to possess with intent to distribute methamphetamine;
Krystal Juarez Norman, 34, of Thomaston, was sentenced to time served after she pleaded guilty to conspiracy to possess with intent to distribute heroin;
S. Carlton Power, 27, of Manchester, Georgia, was sentenced to time served after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine; and
D. Justin Whitten, 37, of Hogansville, Georgia, was sentenced to time served after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case was investigated by FBI and the Upson County Sheriff’s Office with assistance from the Georgia Department of Corrections (GDOC).
Criminal Chief Leah McEwen is prosecuting the case for the Government.
Four Tampa Bay Area Tax Preparers Sentenced to PrisonRead the Press Release
Tampa, FL – U.S. District Judge Virginia Covington today sentenced Ashley Flournoy (Riverview) to two years in federal prison for to conspiracy to commit tax fraud and aiding or assisting in the preparation of false income tax return documents. The Court previously sentenced codefendants Jamica Nelms, Capriesha Cummings, and Camille Harper – all of St. Petersburg – to three years, two and half years, and one year in federal prison, respectively, for the same criminal charges.
According to court documents, from January 2017 through April 2019, Nelms, Cummings, Flournoy, and Harper were income tax return preparers at a business in St. Petersburg. The defendants conspired to defraud the United States by preparing false income tax returns for numerous clients for the Internal Revenue Service (IRS) to issue tax refunds in amounts in excess of what the clients were entitled to receive. In doing so, the defendants documented on Schedule C forms they prepared that clients owned fictitious businesses, which maximized the clients’ ability to claim the Earned Income Credit on their tax returns and thereby increase their tax refunds. The defendants also fraudulently reported that clients were entitled to claim credits for fuel taxes or educations expenses paid to make it appear that their clients were entitled to tax refunds.
The defendants collectively were ordered to pay $1,006,881 in restitution to the IRS and to never prepare tax returns for third parties again.
“As we approach the tax filing season, taxpayers are reminded to be vigilant when entrusting someone with preparing their tax returns. Dishonest return preparers not only defraud the IRS, but are also stealing from the American taxpayer,” said Tara K. Reed IRS-CI Acting Special Agent in Charge. “Today's sentencing is a warning to those who might consider preparing false tax returns that there is a heavy price to pay for committing fraud. IRS-CI Special Agents are withholding no effort in cracking down on fraudulent return preparers and we will continue protecting taxpayer money.”
This case was investigated by Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorneys Greg Pizzo and Jay Trezevant.
Founder of Cryptocurrency Ponzi Scheme “IcomTech” Pleads GuiltyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of DAVID CARMONA for his role in founding and promoting a large-scale cryptocurrency Ponzi scheme known as IcomTech. CARMONA pled guilty today before U.S. District Judge Jennifer L. Rochon to one count of conspiracy to commit wire fraud.
U.S. Attorney Damian Williams said: “IcomTech was a large-scale cryptocurrency scam founded by David Carmona that defrauded numerous investors. Carmona and his co-defendants founded IcomTech on lies, and siphoned money away from victims at every opportunity. Today’s guilty plea should send a clear message to those who engage in Ponzi schemes — whether in the cryptocurrency markets or elsewhere — that this Office is committed to rooting out fraud in all its forms and holding those responsible to full account.”
According to the allegations in the Indictment and statements made in public court proceedings:
CARMONA started IcomTech in 2018, and MARCO RUIZ OCHOA — who pled guilty in September 2023 — was represented to be IcomTech’s CEO until 2019, when a new CEO replaced him. IcomTech was a purported cryptocurrency mining and trading company that promised to earn its victim-investors (“Victims”) profits in exchange for their purchase of purported cryptocurrency-related investment products. CARMONA and the other promoters of IcomTech, including his co-defendants OCHOA, JUAN ARELLANO, MOSES VALDEZ, and DAVID BREND, falsely promised their respective Victims, among other things, that profits from the companies’ cryptocurrency trading and mining would result in guaranteed daily returns on Victims’ investments. In reality, IcomTech did not engage in cryptocurrency trading or mining for its Investors, and CARMONA and Icomtech’s other promoters used Victim funds to pay other Victims, to further promote the schemes, and to enrich themselves.
Icomtech promoters, including CARMONA, traveled throughout the United States and internationally where they hosted lavish expos and small community presentations aimed at luring Victims to invest in the schemes, including in the Southern District of New York. During larger-scale events, IcomTech promoters presented on purported investment products and the compensation plan, encouraged Victims to invest as a means of achieving financial freedom, and boasted about the amount of money they were earning. IcomTech promoters often showed up at larger-scale events in expensive cars and wearing luxury clothing as a way of exhibiting their purportedly legitimate success from IcomTech. The atmosphere of these events was festive and designed to generate excitement about the schemes.
Victims invested in IcomTech by purchasing investment products from promoters using cash, checks, wire transfers, and actual cryptocurrency. Following a Victim’s investment, a Victim would be provided with access to an online portal where the Victim could monitor the purported returns. While Victims saw “profits” accumulate on the online portal, most Victims were unable to withdraw any of these so-called profits and ultimately lost their entire investments. By contrast, IcomTech’s promoters, including CARMONA, siphoned off, in some cases, hundreds of thousands of dollars in Victim funds, which they withdrew as cash, spent on IcomTech promotional expenses, and used for personal expenditures such as luxury goods and real estate.
CARMONA worked with his co-defendant, GUSTAVO RODRIGUEZ, to build IcomTech’s website and online portal, where Victims were provided with personal accounts. CARMONA and RODRIGUEZ discussed how to structure IcomTech’s compensation plan and investment products. For example, RODRIGUEZ advised CARMONA on where CARMONA should set the purported daily returns on Victims’ investment packages and on the size of the investment packages that CARMONA should offer for sale.
In or about September 2018, CARMONA and OCHOA entered into a contract on behalf of IcomTech to purchase cryptocurrency mining equipment from a legitimate supplier and then began touting that investment as a means of generating interest among Victims to invest. However, IcomTech did not meet its payment obligations to the supplier and never received any hardware. Indeed, in or about July and August 2018, CARMONA admitted that his negotiations with the supplier were just for appearances and that he was just “using them.” Even though RODRIGUEZ warned CARMONA that this would only work for a limited time before the supplier found out, CARMONA and OCHOA continued to promote IcomTech’s purported investment with the supplier.
At least as early as August 2018, Victims who attempted to withdraw money from their online portal accounts had difficulty doing so, and when they complained to promoters, they were met with excuses, delays, and hidden fees, if they were able to make any withdrawals at all. Despite these complaints, IcomTech promoters, including CARMONA, continued to promote IcomTech and accept Victims’ investments. As complaints mounted, IcomTech began offering a proprietary crypto-token for sale as a means of injecting liquidity into IcomTech. Promoters of the schemes claimed that these tokens, known as “Icoms,” would eventually be worth a significant amount of money when they were accepted by companies for payment for goods and services. This was false. In reality, “Icoms” were essentially worthless and resulted in further financial loss to Victims. By in or about the end of 2019, IcomTech stopped making payments to Victims and IcomTech collapsed.
* * *
CARMONA, 40, of Queens, New York, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison.
The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as the sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of Special Agents from Homeland Security Investigations’ El Dorado Task Force. Mr. Williams also thanked the Securities and Exchange Commission and the Commodity Futures Trading Commission for their assistance.
If you believe you are a victim of the IcomTech fraud, updated information regarding the case and victims’ rights, as well as contact information for the victim witness coordinator is available here.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Michael D. Maimin, Cecilia E. Vogel, T. Josiah Pertz, and Benjamin A. Gianforti are in charge of the prosecution.
Former paralegal sentenced in Texas Muslim Women’s Foundation theft schemeRead the Press Release
PLANO, Texas– A Melissa woman has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Nnenna Mary Jones, 40, pleaded guilty to wire fraud and was sentenced to 14 months in federal prison by U.S. District Judge Sean D. Jordan on Dec. 20, 2023. Jones was also ordered to pay restitution in the amount of $16,950.
According to information presented in court, the Texas Muslim Women’s Foundation, a 501(c)(3) public charity in Plano, Texas, serves Muslim women and their families who are survivors of domestic and family violence. The Foundation offers its clients in-house legal assistance with the immigration process, among other services. The Foundation advertises that it offers its services—including immigration legal assistance—free of charge. Jones worked for the Foundation as a paralegal and was a Department of Justice Accredited Representative, which allowed her to represent clients in court in immigration matters with the Department of Homeland Security. She was also a licensed attorney in Nigeria before moving to the United States.
The Foundation’s legal team routinely requests waivers of certain fees its clients incur during the immigration process, and most of its clients qualify for these waivers. If the Foundation’s clients do not qualify for a waiver of the immigration fees, then at times the Foundation pays the fee. However, Jones represented to clients of the Foundation that they were required to pay certain fees to the government in relation to their immigration proceedings. In reality, the clients’ fees had either been waived by the government or paid by the Foundation. Clients wrote checks and obtained money orders in the amounts of the fees Jones told them they owed to the government. However, Jones instructed the clients to leave the “pay to” line on the checks and money orders blank. Jones photocopied the clients’ checks and money orders, wrote “U.S. Department of Homeland Security” on the “pay to” line of the photocopied checks and money orders, and placed the photocopies in the clients’ files. Jones then wrote her own name in the “pay to” line of the clients’ original checks and money orders and cashed them or deposited them into her own accounts.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Sean J. Taylor.
# # #
Former Oklahoma City VA Medical Center Nurses Sentenced to Federal Prison for Lying About Medical Care Provided Before Patient's DeathRead the Press Release
OKLAHOMA CITY – Two former nurses at the Oklahoma City Veterans Affairs Medical Center have been sentenced to federal prison for making false statements to Department of Veterans Affairs authorities about care provided to a patient prior to the patient’s death, announced U.S. Attorney Robert J. Troester.
On September 6, 2022, a federal grand jury returned a three-count Indictment against NINA NGUYEN, 27, and Andrewe Steven Hansen, 31, both of Oklahoma City, for making false statements to the Veterans Affairs (VA) Police Service and to investigators with the VA Office of Inspector General, following the death of a patient. According to the Indictment, both Nguyen and Hansen claimed they did not pause medication being administered to the patient prior to the patient’s death, when they both knew they did pause medication.
On March 6, 2023, Nguyen pleaded guilty to making a false statement to a VA investigator on May 10, 2021, following the death of a patient at a VA hospital in Oklahoma City. At Nguyen’s sentencing hearing on November 27, 2023, U.S. District Judge David L. Russell sentenced Nguyen to serve six months in federal prison, followed by one year of supervised release. In announcing the sentence, Judge Russell noted the circumstances of the offense and ordered Nguyen to self-surrender to the Bureau of Prisons on January 2, 2024.
On March 25, 2023, Hansen pleaded guilty to making a false statement to a VA investigator. At Hansen’s sentencing on December 11, 2023, Judge Russell sentenced Hansen to serve three months in federal prison, followed by one year of supervised release. In announcing the sentence, Judge Russell noted the nature and circumstances of the offense and Hansen’s history and characteristics. Judge Russell ordered Hansen to self-surrender to the Bureau of Prisons on January 5, 2024.
This case is the result of an investigation by the Veterans Affairs Police Service and United States Department of Veterans Affairs, Office of Inspector General. Assistant U.S. Attorney Mary E. Walters prosecuted the case.
Reference is made to public filings for additional information.
Former Executive Director of Philadelphia Non-Profit Fund Charged with Stealing over $1.6 Million from Church FamiliesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that John A. Miller, 74, of Philadelphia, Pennsylvania, was arrested and charged by indictment on charges of wire fraud.
The indictment alleges that Miller, who served as executive director and treasurer of a non-profit fund in Philadelphia, used his position of trust to steal more than $1.6 million intended for widows and orphans of deceased clergy. The indictment alleges that from January 2015 through May 2022, the defendant devised a scheme to divert money from the fund to himself by, among other means, presenting false and fraudulent financial information to other fund executives and its outside auditors. The indictment alleges that Miller then used this money to fund personal purchases for himself, including international cruises, vacations to the Caribbean, and a luxury condominium.
If convicted, the defendant faces a maximum possible sentence of 60 years’ imprisonment.
The case was investigated the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Jerome M. Maiatico.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Fernandina Beach Man Indicted for Attempting to Entice and Meet an 11-Year-Old to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging William Rand Paige, Jr. (50, Fernandina Beach) with using his cellphone and the internet to attempt to entice a 11-year-old child to engage in sexual activity. If convicted, Paige faces a minimum mandatory penalty of 10 years, up to life, in federal prison as well as a potential lifetime term of supervised release. Paige was arrested on December 18, 2023. On December 21, 2023, he was arraigned in federal court and ordered detained pending trial.
According to court documents, on November 29, 2023, an undercover FBI agent in Jacksonville was conducting an online undercover operation to identify individuals who were seeking to meet and engage in sexual activity with children. Posing as a person with access to an 11-year-old child, the undercover agent was online in a particular online social messaging app and was contacted by an individual with the username “ah..904,” subsequently identified as Paige. Between November 29 and December 11, 2023, in a series of online conversations on the app and emails, Paige discussed his desire to meet the “child” for sexual activity. Paige also sent the undercover agent several videos depicting the sexual abuse of young children.
On December 18, 2023, FBI agents executed a federal search warrant at Paige’s residence. On that same day, Paige was arrested.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Nassau County Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This case was brought 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 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 child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Grand Jury Indicts Louisville Man for Illegally Possessing a FirearmRead the Press Release
Louisville, KY – A federal grand jury in Louisville returned an indictment on December 5, 2023, charging a Louisville man with possession of a firearm by a convicted felon.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department made the announcement.
According to the indictment, Ryan Akeem Turner, was charged with possession of a firearm by a convicted felon. On September 28, 2023, Turner possessed a Ruger, model LC9S, 9-millimeter caliber pistol.
Turner was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses.
On February 22, 2021, in Jefferson Circuit Court, Turner was convicted of trafficking in a controlled substance, in the first degree, first offense (heroin), convicted felon in possession of a handgun, and possession of a controlled substance, in the first degree, first offense (heroin).
On February 22, 2021, in Jefferson Circuit Court, Turner was convicted of complicity to receiving stolen property under $10,000.
On October 13, 2015, in Jefferson Circuit Court, Turner was convicted of 3 counts of trafficking in a controlled substance, in the first degree, first offense (more than 2 grams of heroin) and convicted felon in possession of a handgun.
On October 15, 2015, in Jefferson Circuit Court, Turner was convicted of possession of a controlled substance, in the first degree, first offense (heroin).
On April 6, 2011, in Jefferson Circuit Court, Turner was convicted of possession of a controlled substance, in the first degree, first offense (cocaine).
On December 18, 2008, in Jefferson Circuit Court, Turner was convicted of trafficking in a controlled substance, in the first degree, first offense (cocaine), tampering with physical evidence, and possession of a controlled substance, in the first degree, first offense (cocaine).
On December 18, 2008, in Jefferson Circuit Court, Turner was convicted of possession of a controlled substance, in the first degree, first offense (cocaine) and tampering with physical evidence.
On December 18, 2008, in Jefferson Circuit Court, Turner was convicted of possession of a controlled substance, in the first degree, first offense (cocaine).
The defendant made his initial court appearance yesterday before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. He remains in custody pending trial. If convicted, Turner faces a mandatory minimum sentence of 15 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
This case is being investigated by the ATF and the LMPD.
Assistant U.S. Attorney Frank Dahl is prosecuting 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.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Fayette County Man and Business Sentenced for Clean Water Act ViolationsRead the Press Release
CHARLESTON, W.Va. – For violating the Clean Water Act, Michael Graves, 68, of Charlton Heights, was sentenced yesterday to one year of incarceration, to be served on home confinement as part of a five-year term of federal probation, and fined $10,000 and West Virginia Environmental Services, Inc. (WVES), a company wholly owned by Graves, was fined $500,000 and placed on corporate probation for three years.
According to court documents and statements made in court, Graves and WVES owned and managed an industrial waste landfill in Fayette County, West Virginia. Graves and WVES were paid over $9.8 million from 2006 to 2020 to accept industrial waste and treat the resulting leachate. This contaminated liquid that passes through a landfill includes toxic materials and must be properly treated prior to discharge into a stream or tributary. As no new waste was accepted at the Fayette County landfill after 2008, the sole remaining task of Graves and WVES was to collect and treat the leachate.
Graves and WVES failed to maintain the landfill’s leachate collection for several years beginning in at least 2016. This failure by Graves and WVES caused the discharge of leachate that contained toxic water pollutants into Jarrett Branch, a tributary that flows into the Kanawha River near Alloy, West Virginia. The toxic pollutants included arsenic, hexavalent chromium, and selenium.
Inspectors from the West Virginia Department of Environmental Protection repeatedly documented the illegal discharges into Jarrett Branch, resulting in numerous notices of violations issued to Graves and WVES. The Clean Water Act National Pollutant Discharge Elimination System (NPDES) permit for the landfill has since lapsed and has not been renewed.
“Mr. Graves and WVES continuously and repeatedly allowed discharges of untreated toxic industrial pollutants into the nation’s waters, despite having been paid millions of dollars to properly maintain the landfill,” said United States Attorney Will Thompson. “The defendants abused the public trust that accompanied the issuance of the discharge permit. This outcome, which includes the maximum possible fine against WVES, reflects the egregious nature and circumstances of the offenses and is necessary to promote respect for the law and to deter similar criminal conduct.”
Thompson made the announcement and commended the investigative work of the Criminal Investigative Division of the Environmental Protection Agency and the West Virginia Department of Environmental Protection.
Graves and WVES each pleaded guilty to one felony count of violation of the Clean Water Act on February 22, 2023. Senior United States District Judge John T. Copenhaver, Jr. imposed today’s sentence. Assistant United States Attorney Erik S. Goes and Special Assistant United States Attorney Perry McDaniel prosecuted the case.
On May 5, 2022, the Department launched the Office of Environmental Justice and announced a comprehensive environmental justice enforcement strategy. Enforcement of this strategy relies upon meaningful engagement and transparency with impacted communities regarding environmental justice issues, efforts, and results.
The United States Attorney’s Office for the Southern District of West Virginia enforces federal laws to protect environmental quality and human health in all communities within the district. In coordination with components of the Justice Department, the United States Attorney’s Office will hold polluters accountable for their actions, prioritizing cases that will reduce public health and environmental harms to overburdened and underserved communities.
The United States Attorney’s Office encourages the public to report suspected environmental violations within the district. Reports may be submitted to the Environmental Protection Agency or by email, mail, or phone to the United States Attorney’s Office.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-186.
###
Emmetsburg Woman Pleads Guilty to Unlawfully Possessing a GunRead the Press Release
A woman who illegally possessed a firearm pled guilty December 19, 2023, in federal court in Sioux City.
Andrea Crystal Lee, 35, from Emmetsburg, Iowa, was convicted of being a prohibited person in possession of a firearm. Lee had previously been convicted of felony possession of a controlled substance – 3rd or subsequent offense on April 30, 2021. Lee was on state probation for that offense when she committed the federal firearms offense.
At the plea hearing, evidence showed that on January 24, 2023, a state probation officer located drug-use paraphernalia at Lee’s home in Emmetsburg, Iowa, during a probation check. Lee was given a urinalysis test which returned positive indicating recent methamphetamine use. The same day, a search of Lee’s home was conducted pursuant to a search warrant. Law enforcement found a 9mm handgun concealed in a floor vent, 9mm ammunition in two magazines, and a bag of needles. As a drug user and felon, Lee was prohibited from possessing firearms and ammunition.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Lee remains in custody of the United States Marshal pending sentencing. Lee faces a possible maximum sentence of 15 years’ imprisonment, a $250,000 fine, and not more than three years of supervised release following any imprisonment.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Palo Alto County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-3011.
Follow us on Twitter @USAO_NDIA.
Clemency Recipient ListRead the Press Release
Today, President Joseph R. Biden Jr. is granting clemency to 11 individuals who are serving long sentences for non-violent drug offenses.
President Joseph R. Biden Jr. is commuting the sentences of the following 11 individuals:
Felipe Arriaga – Sunnyside, Washington
Offense: Conspiracy to distribute methamphetamine (District of Montana).
Sentence: 20 years of imprisonment, 10-year term of supervised release (December 17, 2009).
Commutation Grant: Sentence commuted to expire on April 20, 2024, leaving intact and in effect the 10-year term of supervised release with all its conditions and all other components of the sentence.
Earlie Deacon Barber – Dothan, Alabama
Offense: Conspiracy to distribute and possess with intent to distribute more than five kilograms of a mixture and substance containing cocaine and more than 50 grams of a mixture and substance containing cocaine base (Northern District of Florida).
Sentence: Life imprisonment, 10-year term of supervised release (September 9, 2009).
Commutation Grant: Sentence commuted to expire on April 20, 2024, leaving intact and in effect the 10-year term of supervised release with all its conditions and all other components of the sentence.
James Michael Barber – Gastonia, North Carolina
Offense: Conspiracy to distribute and possess with intent to distribute at least five kilograms of cocaine and 280 grams of cocaine base (Western District of North Carolina).
Sentence: 15 years and eight months of imprisonment, five-year term of supervised release (February 13, 2015).
Commutation Grant: Sentence commuted to expire on February 20, 2024, leaving intact and in effect the five-year term of supervised release with all its conditions and all other components of the sentence.
Anthony Ewing – Union City, Georgia
Offense: Conspiracy to distribute cocaine and cocaine base (crack) (Central District of Illinois).
Sentence: 20 years of imprisonment (as amended by order of June 22, 2017), 10-year term of supervised release (January 22, 2016).
Commutation Grant: Sentence commuted to expire on April 20, 2024, leaving intact and in effect the 10-year term of supervised release with all its conditions and all other components of the sentence.
Quittman Andre Goodley – Austin, Texas
Offense: Conspiracy to possess with intent to distribute and distribute 280 grams or more of cocaine base (Western District of Texas).
Sentence: 20 years of imprisonment, 10-year term of supervised release (July 18, 2012).
Commutation Grant: Sentence commuted to expire on February 20, 2024, leaving intact and in effect the 10-year term of supervised release with all its conditions and all other components of the sentence.
Deondre Cordell Higgins – Kansas City, Missouri
Offense: Conspiracy to distribute 50 grams or more of cocaine base; distribution of cocaine base (Western District of Missouri).
Sentence: Life imprisonment, no supervised release (August 30, 2011).
Commutation Grant: Sentence commuted to a term of 25 years, leaving intact and in effect all other components of the sentence and with the final two years of his incarceration in prerelease custody, to the maximum extent permitted by law.
Leroy Lymons – Pensacola, Florida
Offense: Conspiracy to distribute and possess with intent to distribute five kilograms or more of a mixture and substance containing a detectable amount of cocaine (Northern District of Florida).
Sentence: Life imprisonment, 10-year term of supervised release (June 12, 2012).
Commutation Grant: Sentence commuted to a term of 27 years, leaving intact and in effect the 10-year term of supervised release with all its conditions and all other components of the sentence.
Angel Rosario – Allentown, Pennsylvania
Offense: Distribution of 28 grams or more of cocaine base (crack) within 1,000 feet of a public school; distribution of 28 grams or more of cocaine base (crack); distribution of cocaine base (crack) within 1,000 feet of a public school (two counts); distribution of cocaine base (crack) (two counts) (Eastern District of Pennsylvania).
Sentence: 21 years and 10 months of imprisonment, eight-year term of supervised release, and $2,500 fine (July 19, 2012).
Commutation Grant: Sentence commuted to expire on April 20, 2024, leaving intact and in effect the eight-year term of supervised release with all its conditions and all other components of the sentence.
Esaias J. Tucker – Tallahassee, Florida
Offense: Conspiracy to distribute more than five kilograms of cocaine and more than 280 grams of cocaine base; possession with intent to distribute 500 grams or more of cocaine and more than 28 grams of cocaine base (Northern District of Florida).
Sentence: 20 years of imprisonment, 10-year term of supervised release (January 29, 2013).
Commutation Grant: Sentence commuted to expire on April 20, 2024, leaving intact and in effect the 10-year term of supervised release with all its conditions and all other components of the sentence.
Darryl Allen Winkfield – Augusta, Georgia
Offense: Conspiracy to distribute, and to possess cocaine and cocaine base with intent to distribute; distribution of cocaine hydrochloride (three counts); possession of cocaine and cocaine base with intent to distribute (Southern District of Georgia).
Sentence: Life imprisonment, 10-year term of supervised release (September 29, 1998).
Commutation Grant: Sentence commuted to expire on April 20, 2024, leaving intact and in effect the 10-year term of supervised release with all its conditions and all other components of the sentence.
Kenneth Winkler – Indianapolis, Indiana
Offense: Conspiracy to possess with the intent to distribute and to distribute 50 grams or more of actual methamphetamine (Southern District of Indiana).
Sentence: 20 years of imprisonment, 10-year term of supervised release (July 23, 2012).
Commutation Grant: Sentence commuted to expire on February 20, 2024, leaving intact and in effect the 10-year term of supervised release with all its conditions and all other components of the sentence.
Attorney General Merrick Garland Statement on the Agreement in Principle with Cummins to Settle Alleged Installation of Illegal Defeat Devices in EnginesRead the Press Release
Engine manufacturer Cummins Inc. today disclosed that it has reached an agreement in principle with the United States and State of California to pay a $1.675 billion penalty to settle claims that it violated the Clean Air Act by installing emissions defeat devices on hundreds of thousands of engines. The Clean Air Act requires vehicle and engine manufacturers to ensure that their products comply with applicable emission limits. Defeat devices are parts or software that bypass, defeat, or render inoperative emissions controls such as emission sensors and onboard computers. The company allegedly installed defeat devices on 630,000 model year 2013 to 2019 RAM 2500 and 3500 pickup truck engines. The company also allegedly installed undisclosed auxiliary emission control devices on 330,000 model year 2019 to 2023 RAM 2500 and 3500 pickup truck engines.
The Justice Department issued the following statement from Attorney General Merrick B. Garland:
“The Justice Department is committed to vigorously enforcing the environmental laws that protect the American people from harmful pollutants.
“Today, the Justice Department reached an initial agreement with Cummins Inc. to settle claims that, over the past decade, the company unlawfully altered hundreds of thousands of engines to bypass emissions tests in violation of the Clean Air Act. As part of the agreement, the Justice Department will require Cummins to pay $1.675 billion, the largest civil penalty we have ever secured under the Clean Air Act, and the second largest environmental penalty ever secured.
“The types of devices we allege that Cummins installed in its engines to cheat federal environmental laws have a significant and harmful impact on people’s health and safety. For example, in this case, our preliminary estimates suggest that defeat devices on some Cummins engines have caused them to produce thousands of tons of excess emissions of nitrogen oxides. The cascading effect of those pollutants can, over long-term exposure, lead to breathing issues like asthma and respiratory infections.
“The Justice Department will work diligently to incorporate today’s agreement into a consent decree that will be filed with the U.S. District Court for the District of Columbia.
“I am grateful to the dedicated women and men of the Environment and Natural Resources Division, as well as to our partners from the EPA, and the State of California, for their assistance in investigating and prosecuting this case and in reaching this important agreement.
“Violations of our environmental laws have a tangible impact – they inflict real harm on people in communities across the country. This historic agreement should make clear that the Justice Department will be aggressive in its efforts to hold accountable those who seek to profit at the expense of people’s health and safety.”
Attorney General Merrick B. Garland Announces Appointment of Jolene Ann Lauria as Assistant Attorney General for AdministrationRead the Press Release
Attorney General Merrick B. Garland today announced the appointment of Jolene Ann Lauria as Assistant Attorney General for Administration. Lauria has served in an acting capacity since June 4, 2022, following the retirement of former Assistant Attorney General for Administration Lee Lofthus.
“The Department’s Assistant Attorney General for Administration plays a critical role in enabling the Department to fulfill its core mission and serve the American people,” said Attorney General Garland. “Jolene’s dedication and record of achievement as a career public servant at DOJ make her uniquely qualified for this position. I look forward to continuing to work alongside her and am grateful to have her as part of the Department’s leadership team at this important time.”
As the Assistant Attorney General for Administration, Lauria is also the Department’s Chief Financial Officer, responsible for Department-wide financial reporting, the annual financial statement, budget formulation and execution, the assets forfeiture fund, and debt management. Lauria also oversees facilities, procurement, human resources, information resources, policy, strategic planning, and other administrative functions. She is a key executive liaison with the appropriations subcommittees. Lauria was the lead executive that consolidated seven separate financial systems into a single modern Justice Department Unified Financial Management System supporting all 40 components and servicing over 16,000 users. For this effort, Lauria was twice a Federal 100 winner, in 2009 and 2015. This prestigious award recognized her vision and pioneering spirit in the federal IT community.
Jolene Lauria has been the Department’s Controller since 2007. Prior to this position, Lauria was the Department’s Director of Budget Staff, and she was the Deputy Chief Financial Officer/Director of Budget at the National Oceanic and Atmospheric Administration (NOAA). Lauria has held a variety of positions in budget and financial management during her 33 years in the Federal government. From 2015-2018, Lauria served on INTERPOL’s Executive Committee as the representative for the Americas Region. She is currently the Chair of INTERPOL’s Advisory Group on Financial Matters that reviews and makes recommendations on INTERPOL’s worldwide budget.
Lauria received a master’s degree in public administration from American University in 1989. In 2013, she graduated from the FBI National Academy, Class 252. Lauria was the recipient of a Meritorious Presidential Rank Award in 2006, and she received a Distinguished Presidential Rank Award in 2010.
Arizona CEO and Accomplice Charged with Embezzling Millions of Dollars from Tribal Healthcare ProviderRead the Press Release
TUCSON, Ariz. – On December 14, 2023, a federal grand jury returned a 40-count indictment against Kevin McKenzie, 47, and Corina Martinez, 41, of Tucson. McKenzie and Martinez were charged with Conspiracy to Embezzle from an Indian Tribal Organization; Embezzlement; Theft Concerning Programs Receiving Federal Funds; Wire Fraud; Conspiracy to Commit Wire Fraud; Conspiracy to Commit Money Laundering; and Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity. McKenzie was also charged with Attempted Tampering with a Witness.
The indictment alleges that, from 2015 through July 2023, McKenzie, first as Chief Operating Officer and then as CEO of Apache Behavioral Health Services (ABHS), engaged in a scheme to defraud millions of dollars from ABHS. ABHS is organized by and under the laws of the White Mountain Apache Tribe to provide behavioral health services to its members. McKenzie used two contracts as a front to funnel money from ABHS to himself. Under the first contract, ABHS paid over $32 million to Helping Everyday Youth (HEDY). Thereafter, based on an agreement with McKenzie, HEDY funneled over $14 million in fraudulent proceeds to a shell company McKenzie owned. McKenzie concealed this backdoor financial arrangement from ABHS. McKenzie made significant efforts to hide his scheme through money laundering and attempted to persuade a witness to lie to investigators.
The indictment also alleges that McKenzie, again as CEO for ABHS, and Martinez through her company Evolved, LLC, entered a phony “referral” contract to embezzle additional money from ABHS. Using this agreement, McKenzie caused ABHS to pay $15 million to a second Martinez company, Evolved Healthcare Inc. (EHI). Portions of the fraudulent proceeds were split amongst McKenzie and Martinez. Martinez gave McKenzie large sums of money, paid at least $800,000 of his personal credit card bills, and purchased other luxury items, including a $128,000 Rolls Royce Ghost and a $952,000 home for McKenzie’s family. EHI and Evolved LLC did not perform any services for ABHS.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Federal Bureau of Investigation conducted the investigation in this case. The U.S. Attorney’s Office, District of Arizona, Tucson, Financial Crimes and Public Corruption Section, is handling the prosecution.
CASE NUMBER: CR-23-02258-TUC-SHR
RELEASE NUMBER: 2023-205_McKenzie/Martinez# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
21 December 2023
Wisconsin Man Sentenced to a Year in Prison for Violating the Preventing Animal Cruelty and Torture ActRead the Press Release
A Wisconsin man was sentenced yesterday to 12 months and one day in prison for violating the Preventing Animal Cruelty and Torture (PACT) Act.
Kenneth J. Herrera, 40, of Soldiers Grove, had previously pleaded guilty for creating, selling and distributing an animal crushing video. Animal crushing includes burning, suffocating, impaling or causing the serious bodily injury of animals. The judge also sentenced Herrera to three years of supervised release and to pay a $5,000 fine.
In 2021, Herrera paid a videographer in Indonesia $100 for a video of a monkey being physically abused. Herrera sent specific instructions, which the videographer followed, asking that the monkey be picked up by the genitals using pliers and then hit on the head with a hammer. The videographer sent Herrera the video via an encrypted messaging application. The PACT Act makes it illegal to create or distribute depictions of animal crushing that will be sold or distributed internationally or between states.
“Animal crushing videos cruelly force animals into a cycle of fear, violence and death for personal gratification or profit,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We are committed to aggressively pursuing and prosecuting anyone who engages in the creation or distribution of animal crush videos.”
“Video recordings of animal torture are cruel, inhumane and illegal,” said U.S. Attorney Timothy M. O’Shea for the Western District of Wisconsin. “Evidence shows that animal torture can be a precursor to other violent crimes. Our office will work with law enforcement, domestically and internationally, to investigate and prosecute all crimes of this nature.”
“The primary mission of the U.S. Fish and Wildlife Service, and our specific role in the Office of Law Enforcement, is to protect all wildlife from being unlawfully commercialized, in whatever form we find it,” said Assistant Director Edward Grace of the U.S. Fish and Wildlife Service, Office of Law Enforcement. “The heinous crimes against wildlife that are centered in this investigation are an extreme example of that commitment. The success of this case is a direct result of our partnership with the Federal Bureau of Investigation.”
“The FBI stands resolute in our dedication to working with our federal and international partners to address animal cruelty violations,” said Special Agent in Charge Michael E. Hensle of the FBI Milwaukee Field Office. “We view the sentence handed down in this case under the Animal Crushing Statue not only as a measure of justice served, but also as a deterrent against future violations. We appreciate the opportunity to work with our partners at the U.S. Fish and Wildlife Service and the U.S. Attorney’s Office in the Western District of Wisconsin on this investigation and will continue to rigorously enforce the laws designed to prevent such heinous acts.”
The FBI and U.S. Fish and Wildlife Service investigated the case.
Trial Attorney Mark T. Romley of the Justice Department Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Chadwick Elgersma for the Western District of Wisconsin prosecuted the case.
Wilton Man Who Sent Child Pornography to Minors Sentenced to over 17 Years in Federal PrisonRead the Press Release
A man who distributed child pornography to multiple minors was sentenced December 20, 2023, to more than seventeen years in federal prison.
Benjamin Mockmore, age 37, from Wilton, Iowa, received the prison term after an August 4, 2023 guilty plea to one count of distribution of child pornography.
Information presented at the sentencing hearing and in a plea agreement showed that in 2021 and 2022 Mockmore had online sexual communications with multiple minors. During some of the conversations, Mockmore sent images and videos of child pornography to the minors. One of the minors with whom Mockmore communicated was a 15‑year‑old autistic girl, from whom Mockmore had requested “nudes.” Mockmore also sent naked pictures of himself to multiple minors, including to the 15‑year‑old autistic girl. In March 2022, an adult female posing as a 12‑year‑old girl from Wilton communicated with Mockmore. During the conversations Mockmore stated that he wanted to have sex with the 12‑year‑old and that he would be home alone on March 20, 2022. The adult woman confronted Mockmore on March 19, 2022, at which time Mockmore admitted that he had sent a picture of his penis to the person he believed to be the 12‑year‑old. Mockmore also offered the woman money not to report him to law enforcement.
Four days after his encounter with the adult woman in Wilton, Mockmore had an online conversation with another adult woman who was posing as a 13‑year‑old girl. Mockmore sent that person a photograph of his penis and requested that the girl send him a photograph of herself in the shower. A search of Mockmore’s residence on March 29, 2022, resulted in the seizure of two of Mockmore’s cellular phones. Searches of those phones revealed 181 images and 50 videos of child pornography, and 61 online conversations during which Mockmore sent child pornography to another person. Over 30 of the people to whom Mockmore sent child pornography had represented themselves to be juveniles.
Mockmore was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Mockmore was sentenced to 210 months’ imprisonment. He was ordered to make $9,000 in restitution. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Mockmore is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Cedar County Sheriff’s Office, the Iowa Division of Criminal Investigation, and the Shelby County, Alabama, Sheriff’s Office, and was prosecuted by Assistant United States Attorneys Dan Chatham and Jason Norwood.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23‑CR‑00029‑CJW‑MAR.
Follow us on Twitter @USAO_NDIA.
Wheatfield man sentenced for his role in debt collection schemeRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Greg MacKinnon, 58, of Wheatfield, NY, who was convicted of conspiring to defraud the United States, was sentenced to serve 36 months in prison by U.S. District Judge Richard J. Arcara. MacKinnon was also ordered to pay restitution totaling $3,067,341 to the IRS.
Assistant U.S. Attorney Russell T. Ippolito, who handled the case, stated that between June 2011, and April 27, 2017, MacKinnon operated Vantage Point Services, a debt collection business. MacKinnon and others involved in the conspiracy fraudulently and unlawfully collected on debt, earning income exceeding $10,000 every year from such criminal activity. The criminal activity included using illegal tactics to collect on debt, such as coercion by making false threats of arrest to debtors; collecting more than was owed on a debt; and attempting to collect on debt that had already been paid in full.
MacKinnon, and his co-conspirators, diverted money that represented the unlawful proceeds of illegal debt collection activities employed by Vantage Point Services to other debt collection business entities controlled by co-conspirators. The money was diverted, and made to appear as ordinary business expenses, to avoid reporting income exceeding $10,000 in any year from criminal activity and paying income taxes. The total tax loss to the United States was $3,067,341.
The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Thomas Fattorusso, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
West Bridgewater Man Arrested for Child Pornography OffenseRead the Press Release
BOSTON – A West Bridgewater man was arrested yesterday for allegedly receiving child pornography from an online communication application.
Juan Levano, 23, was charged by criminal complaint with one count of receipt of child pornography. Levano was arrested yesterday morning and, following an initial appearance in federal court in Boston, remains in federal custody.
According to the charging documents, an investigation into an internet-based communications application used for the trafficking of child pornography identified Levano as a likely user of the platform who participated in at least two groups where child pornography was disseminated.
Search warrants were executed yesterday at the residence where Levano resides and seized various electronic devices. According to the charging documents, Levano rented a room at the residence, which is registered as a residential daycare. Both Levano and the owner of the residence denied that Levano worked at the residential daycare and denied that Levano had any contact with the children who attend it.
It is alleged that Levano admitted to being a member of several groups on the chat application and obtaining child pornography from those groups – estimating that his collection included imagery of children ranging from infancy to 13 years old. A preliminary review of Levano’s phone allegedly revealed that Levano was a member of several active groups on the platform that included the exchange of child pornography. It is further alleged that more than 100 video and image files were identified, most of which appear to depict child pornography, and stored in a photo application on Levano’s phone. Forensic analysis of the seized devices is ongoing.
The charge of receipt of child pornography provides for a sentence of at least five years and up to 20years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $ 250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Valuable assistance was provided by the West Bridgewater Police Department. Assistant U.S. Attorney Jessica L. Soto of the Office’s Major Crimes Unit 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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
West Bend Man Sentenced for Federal Child Sexual Abuse ChargeRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that on December 20, 2023, United States District Judge Brett H. Ludwig sentenced Steven M. Stathas, (age: 33) of West Bend, Wisconsin, to 180 months’ imprisonment (15 years), after he pleaded guilty to Using a Computer to Attempt to Persuade, Induce, and Entice a Minor to Engage in Unlawful Activity, in violation of 18 U.S.C. § 2422(b). Stathas’s term of imprisonment will be followed by ten years of supervised release, and he will also pay a $100.00 special assessment.
According to court filings, Stathas, who was required to register as a sex offender after being convicted of two felony sex offenses against minors, began communicating online with a fifteen-year-old who lived in Kentucky in late 2021. Between September and November 2021, Stathas travelled from the Eastern District of Wisconsin to Kentucky on multiple occasions and engaged in various sex acts with the victim. Finally, on November 28, 2021, Stathas drove to Kentucky, picked the victim up from her family home without her parent’s consent or knowledge, and drove her to his home in Wisconsin, where he was apprehended by the West Bend Police Department.
When imposing sentence, Judge Ludwig observed that because of Stathas’s behavior “a permanent scar has been left on the victim’s life.” Judge Ludwig also noted that “[t]here is no justification for what occurred,” and that [t]his was a vulnerable young girl who was victimized by a man who was twice her age.” Judge Ludwig additionally stated that “[g]rown men cannot victimize teenage girls, and if they do, a price has got to be paid.”
This case was investigated by the West Bend Police Department. It was prosecuted by Assistant United States Attorney Megan J. Paulson and Trial Attorney William G. Clayman of the United States Department of Justice’s Child Exploitation and Obscenity Section.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood, marshals, federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
# # #
For Additional Information Contact:
Public Information Officer
414-297-1700
Follow us on Twitter
Waterbury Cocaine Trafficker Sentenced to More Than 17 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that PIERRE JOSHWAN RODRIGUEZ, also known as “Ochy,” 42, of Waterbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 210 months of imprisonment, followed by five years of supervised release, for heading a cocaine trafficking conspiracy.
According to court documents and statements made in court, an investigation led by the U.S. Postal Inspection Service’s Bulk Cash Trafficking Task Force determined that Rodriguez headed a cocaine trafficking operation in which parcels containing kilogram quantities of cocaine were concealed within boxed Bluetooth speakers and shipped through the U.S. mail from Puerto Rico to multiple addresses in Waterbury. Rodriguez distributed the cocaine in the Waterbury area and mailed money parcels back to Puerto Rico. Felix Ortega-Pagan assisted Rodriguez by frequently picking up the cocaine parcels and delivering them to Rodriguez at various stash locations. Alejandra Santiago-Miranda was a frequent mailer of cocaine parcels from Puerto Rico to Waterbury and was also the recipient of multiple money parcels. Rodriguez and Ortega-Pagan also converted some of the cocaine into crack cocaine.
Investigators seized approximately 28 kilograms of cocaine during the investigation.
On November 20, 2020, investigators searched Rodriguez’s residence and seized evidence of the cocaine distribution conspiracy, $56,008 in cash, and jewelry. Rodriguez remained at large until February 17, 2021. He possessed $5,540.00, four cellphones, and jewelry at the time of his arrest.
In total, law enforcement seized from Rodriguez a total of $455,308.83 in cash and from a bank account, jewelry appraised at $509,045, a 2019 Polaris Slingshot, a 2013 BMW X6, a 2015 Jeep Grand Cherokee, a 2020 Can Am Spyder Roadster, and a 2015 Toyota Sienna.
Rodriguez’s criminal history spans more than 25 years and includes multiple drug convictions. In 2013, he was sentenced in state court to 15 years of incarceration, suspended after 90 months, for possession with intent to sell.
Rodriguez has been detained since February 17, 2021. On August 18, 2022, he pleaded guilty to conspiracy to distribute, and to possess with intent to distribute, five kilograms or more of cocaine.
Ortega-Pagan and Santiago-Miranda pleaded guilty to related charges and have been sentenced.
This matter was investigated by the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force, with the assistance of the Drug Enforcement Administration, U.S. Marshals Service, and Waterbury Police Department. The Task Force includes members from the U.S. Postal Inspection Service, the U.S. Postal Service – Office of the Inspector General, the Connecticut Army National Guard, and the Hartford, New Britain, Meriden, and Town of Groton Police Departments.
The case was being prosecuted by Assistant U.S. Attorney Natasha M. Freismuth through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Rodríguez was designated as a Regional Priority Organization Target (RPOT) under the OCDETF Program.
Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Vermont Resident Sentenced to 135 Months for Attempted Enticement and Coercion of a MinorRead the Press Release
ALBANY, NEW YORK – Scarlet Shadows, a/k/a “Dragongurl69,” age 33, of West Rutland, Vermont, was sentenced today to 135 months in prison for attempted enticement of a minor. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
As part of her previously entered guilty plea, Shadows, formerly known as Randy Emillion Goodreau, admitted that she attempted to entice and coerce an individual, whom Shadows believed to be an 11-year-old girl, to have sex. After weeks of exchanging sexually explicit text messages with this individual and another person Shadows believed was the child’s guardian, Shadows traveled in January 2022 from Vermont to Warren County, New York, with an engagement ring, condoms and gifts for the child, intending to have sex with the child.
United States District Judge Anne M. Nardacci also imposed a 15-year term of post-imprisonment supervised release. Shadows is required to register as a sex offender upon release from prison.
This case was investigated by the FBI Albany’s Child Exploitation Task Force, which includes members of federal, state, and local law enforcement agencies, including the Colonie Police Department, Rotterdam Police Department, and the New York State Police. Assistant United States Attorney Joshua R. Rosenthal prosecuted this case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
United States Reaches $9.1 Million Civil Settlement with Total Access Urgent Care over False Claims AllegationsRead the Press Release
ST. LOUIS – The U.S. Attorney’s Office for the Eastern District of Missouri announced today that Total Access Urgent Care (TAUC) has agreed to pay $9,150,794 to settle allegations that TAUC submitted false claims for medical services, including COVID-19 testing.
“This settlement will fully repay three federal health care programs for TAUC’s overbilling for COVID tests and office visits,” said U.S. Attorney Sayler A. Fleming.
According to the United States’ allegations, from April of 2017 through November of 2021, TAUC submitted claims for payment to Medicare and TRICARE indicating that a physician performed office visits when a non-physician practitioner had actually done so, thereby receiving reimbursement at a higher rate. From November of 2015 through November of 2021, TAUC submitted claims to Medicare and TRICARE for office visits that were upcoded. During the latter portion of that period, it also submitted upcoded office visit claims to a program that reimbursed for the testing or treatment of, and vaccination against, COVID-19 for people who were uninsured, the Health Resources and Services Administration’s COVID-19 Claims Reimbursement to Health Care Providers and Facilities for Testing, Treatment, and Vaccine Administration for the Uninsured Program (UIP), the government alleges. TAUC voluntarily disclosed during the investigation that from April 1, 2021 through Dec. 31, 2021, it submitted false claims to Medicare, TRICARE and the UIP for COVID testing using improper billing codes, again receiving reimbursements at a higher rate.
All of these false claims resulted in TAUC receiving reimbursement from federal health care programs to which it was not entitled, the government alleges.
TAUC fully cooperated in the investigation. The company did not admit liability in the settlement agreement.
The settlement also resolved TAUC’s self-disclosure made in March of 2021 to the Centers for Medicare & Medicaid Services in which TAUC reported that bonuses paid to certain physicians it employed were in part based on the volume or value of their referrals for designated health services, a prohibited practice.
“Today’s outcome illustrates HHS-OIG’s unwavering commitment to detecting, investigating, and shutting down fraud against Medicare, the HRSA Uninsured Program and protecting federal health care programs under any circumstance — especially during a public health emergency,” said Acting Special Agent Curt L. Muller from the U.S. Department of Health and Human Services Office of Inspector General. “Our agency, working with our law enforcement partners, will continue to investigate health care fraud schemes, including those involving providers submitting fraudulent claims in violation of the False Claims Act.”
“When actors within our healthcare system are focused on profit rather than patient care, it undermines the integrity of the medical decision-making process,” said Gregory P. Shilling, Acting Special Agent-in-Charge of the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DOD-OIG-DCIS), Southwest Field Office. “DCIS remains steadfastly committed to rooting out fraud and safeguarding the funds entrusted to the Defense Health Agency, which serves our military members and their families.”
This civil settlement is part of ongoing efforts by the Department of Justice and the U.S. Department of Health and Human Services to recover funds diverted from the Medicare Trust Account and is the result of the combined work of the U.S. Attorney’s Office for the Eastern District of Missouri, HHS-OIG, DOD-OIG-DCIS, and the FBI.
U.S. Attorney’s Office for the Eastern District of Michigan Collects $68,224,759.35 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2023.Read the Press Release
DETROIT, MI - U.S. Attorney Dawn N. Ison announced today that the Eastern District of Michigan collected $68,224,759.35 in criminal and civil actions in Fiscal Year 2023. Of this amount, $45,879,094.11 was collected in criminal actions and $22,345,665.24 was collected in civil actions.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs. The largest collection came from a fine imposed in a securities fraud case against Sterling Bancorp, Inc.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violation of federal health, safety, civil rights or environmental laws. The office also resolved several parallel cases that involved significant civil and criminal penalties related to health care fraud.
In addition to collection of outstanding obligations, the Eastern District of Michigan seized assets valued at more than $67 million dollars and finalized the forfeiture of assets valued at approximately $34 million dollars. Forfeited assets deposited into the Department of Justice Asset Forfeiture Fund may be used to restore funds to crime victims and for a variety of law enforcement purposes.
“Through the hard work and commitment of our team of dedicated attorneys and support professionals, we recovered more than $68 million dollars in Fiscal Year 2023. Due to the tireless efforts of these extraordinary public servants, crime victims and taxpayers will recover funds owed to them as a result of criminal and civil violations perpetrated in this district. Our staff is a tireless advocate for victims of crime. We take actions to recover assets that have been transferred to third parties, as well negotiate for the liquidation of assets obtained by a defendant because of his or her involvement in criminal activity.”
U.S. Attorney’s Office discovers undisclosed assets and collects over $535,000 for wire fraud victimsRead the Press Release
The United States Attorney’s Office for the District of Wyoming operates a Financial Litigation Program (FLP) which enforces fines and restitution resulting from criminal convictions in federal court. Recent developments in a case from 2002 led to the collection of over $535,000 in victim restitution.
“Through the FLP, our office seeks to collect fines and restitution efficiently and diligently,” said U.S. Attorney Nicholas Vassallo. “This includes locating debtors and hidden assets in this country and abroad, establishing repayment agreements, and initiating post-judgment remedies like wage garnishments.”
The FLP initiated collection efforts under the Federal Debt Collection Procedure Act for a wire fraud case involving defendant Matthew T. Bullis. As part of his sentence, Bullis was ordered to pay restitution in the amount of $647,112.50 to victims of his fraud.
The FLP first obtained a garnishment order against Bullis’s employer to withhold and pay to the Clerk of District Court 25% of Bullis’s salary. In early 2022, the FLP determined that the employer had failed to withhold the correct amount owed under the garnishment and that Bullis had not accurately described his financial situation. Further enforcement activity by the FLP resulted in Bullis paying his outstanding restitution balance of $535,761.25.
“We are focused on securing restitution for crime victims, recovering taxpayer money obtained by fraud, and depriving criminals of their illegal gains,” said Vassallo. “We recovered hundreds of thousands of dollars in this case because of the tenacity and hard work of our attorneys and staff.”
Payment is being distributed by the Clerk of District Court to the victims. Assistant United States Attorney Jasmine Peters handled this enforcement matter. For more information about the FLP, visit: https://www.justice.gov/usao-wy/civil-division.
U.S. Attorney Jesse Laslovich announces $600,734 grant from Justice Department for agencies, organizations to support youthRead the Press Release
BILLINGS — U.S. Attorney Jesse Laslovich today announced that the Department of Justice has awarded $600,734 to the state of Montana to fund agencies and organizations that support youth and their families.
The grant, administered by the Montana Board of Crime Control, is from the Fiscal Year 2023 Title II Formula Grants Program, the Office of Justice Programs’ Office of Juvenile Justice Delinquency Prevention.
“This grant -- and the organizations it will support—serves an important role in our efforts to help prevent youth from ending up in our criminal justice system and to improve their chances for success if they do. While the U.S. Department of Justice seeks to hold people accountable for their criminal conduct, supporting at-risk youth and their families contributes to the overall public safety and well-being of Montana communities, which is why this grant is so important,” U.S. Attorney Laslovich said.
Montana’s FY23 Title II program will support efforts to advance the mission of the Youth Justice Council, the state’s advisory group, to improve the juvenile justice system. The Montana Board of Crime Control intends to monitor compliance with the Juvenile Justice Delinquency Prevention Act, provide training and technical assistance, improve policies and procedures and award grants to evidence-based promising programs. The Youth Justice Council has prioritized community-based programs; delinquency programs; mentoring, counseling and training programs; school programs; mental health and substance use treatment; and Native American Tribal programs. These activities are expected to prevent delinquency, divert youth from system involvement, reduce recidivism, improve outcomes for youth involved in the justice system and increase public safety.
This grant serves hundreds of at-risk children and youth ages 0 to 17 each year. Many of these youth have experienced poverty, trauma, family dysfunction, substance use and mental health issues.
The Montana Board of Crime Control anticipates awarding funding to 14 agencies: Families First Learning Lab, Missoula; CASA of Missoula; Friendship House of Christian Service, Billings; YWCA of Missoula; Billings Public Schools; Center for Restorative Youth Justice, Kalispell; Chippewa Cree Tribal Court, Box Elder; Bitterroot Ecological Awareness Resources, Hamilton; Big Brothers Big Sisters, Butte, Yellowstone and Kalispell; and Boys and Girls Clubs, Havre, Missoula and Great Falls. The service area will cover eight counties, the Rocky Boy’s Indian Reservation and portions of the Flathead Indian Reservation.
XXX
U.S. Attorney Jesse Laslovich announces $152,772 grant from Justice Department for Billings Police Department, Yellowstone County Sheriff’s OfficeRead the Press Release
BILLINGS — U.S. Attorney Jesse Laslovich today announced that the Department of Justice has awarded $152,772 to the Billings Police Department and the Yellowstone County Sheriff’s Office for supplies and equipment.
The grant is from the Justice Department’s Bureau of Justice Assistance, Office of Justice Programs, FY23 Edward Byrne Memorial Justice Assistance Grant (JAG) Program.
“Our top priority in Billings is fighting violent crime and we cannot do this effectively without the brave men and women of the Billings Police Department and Yellowstone County Sheriff’s Office. They deserve our unwavering support and as far as the U.S. Department of Justice is concerned, we are putting money where our mouth is by providing them this grant to help keep officers safe and protect our community from dangerous criminals,” U.S. Attorney Laslovich said.
The grant award is for a joint application from the Billings Police Department and Yellowstone County Sheriff’s Office, with the police department acting as the grant administrator. The Yellowstone County Sheriff’s Office plans to use its $20,611 grant allocation to purchase equipment and supplies for its office and detention facility, including rechargeable flashlights and charging docks for the detention facility, batteries used for its tactical robot, helicopter and other radios and miscellaneous supplies. The sheriff’s office also plans to use the money to fix hail damage on the helicopter and to buy a portable radio. The Billings Police Department plans to use its allocation of $132,161 to purchase patrol SUV equipment, simulation ammunition, Point Blank vests, TASER training cartridges, uniforms, batteries, first aid supplies and promotional items.
XXX
Two Men Charged in Connection with Kidnapping of New Jersey ResidentRead the Press Release
NEWARK, N.J. – Two men have been charged in connection with their respective roles in an armed kidnapping for ransom of a Paterson, New Jersey, resident, U.S. Attorney Philip R. Sellinger announced.
Julio Cesar Paniagua, 27, is charged by complaint with one count of kidnapping. Paniagua appeared today before U.S. Magistrate Judge Jessica S. Allen in Newark federal court and was detained.
Joel Ramon Garcia, 33, was previously charged by complaint with one count of kidnapping. Following his arrest on Nov. 20, 2023, Garcia made his initial appearance before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
On Nov. 15, 2023, Paniagua and Garcia kidnapped the victim in Paterson and then drove the victim to Massachusetts, where they held the victim for ransom. During the kidnapping, Paniagua and Garcia both brandished firearms. Shortly after the kidnapping, the kidnappers contacted the victim’s father and threatened that the victim’s fingers would be cut off if the ransom was not paid. The kidnappers ultimately released the victim on Nov. 17, 2023.
The charge of kidnapping carries a maximum penalty of life in prison and a maximum fine of $250,000.
U.S. Attorney Sellinger credited members of the FBI’s New Jersey field office, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to the charges. He also thanked members of the FBI’s Boston field office under the direction of Special Agent in Charge Jodi Cohen; the Paterson Police Department, under the direction of Officer in Charge Isa M. Abbassi; members of the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik; members of the Clifton Police Department, under the direction of Police Chief Thomas Rinaldi; members of the Bergen County Prosecutor’s Office, under the direction of Prosecutor Mark Musella; and members of the Cedar Grove Police Department, under the direction of Police Chief John J. Kennedy, for their assistance.
The government is represented by Assistant U.S. Attorney John Maloy of the General Crimes Unit in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
garcia.complaint.pdf
paniagua.complaint.pdfTitusville Pharmacist Sentenced to Federal Prison for Distributing Opioids and Benzodiazepines Without A PrescriptionRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Basil Samir Itani (47, Titusville) to 12 months and 1 day in federal prison for distributing and dispensing controlled substances. The court also ordered Itani to pay a $50,000 fine. Itani had pleaded guilty on September 27, 2023.
According to court documents, Itani sold pharmaceutical controlled substances to a confidential source on nine different occasions between January 5 and May 24, 2023. The confidential source purchased the controlled substances from Itani for cash and without a prescription after hours at Itani’s pharmacy. The controlled substances Itani sold included over 3,500 units of oxycodone, over 1,300 units of methadone, nearly 400 units of alprazolam, 200 units of morphine, and a small quantity of methylphenidate—all for which he received thousands of dollars in cash. Itani distributed and dispensed these controlled substances in an unauthorized manner by acting outside the usual course of professional practice and not for a legitimate medical purpose.
This case was investigated by the Drug Enforcement Administration, the Titusville Police Department and by the Opioid Fraud Abuse and Detection Unit at the United States Attorney’s Office, which focuses on opioid-related fraud and abuse by medical and health care professionals who have contributed to the prescription opioid epidemic. It was prosecuted by Assistant United States Attorney Megan Testerman.
Three-Time Alien Smuggler Sentenced to 60 MonthsRead the Press Release
TUCSON, Ariz. – Clifford Valisto, 63, of Tucson, was sentenced last week by United States District Judge John C. Hinderaker to 60 months in prison, followed by three years of supervised release. Valisto pleaded guilty to Transportation of Illegal Aliens for Profit on October 2, 2023. Valisto also was sentenced to 12 months in prison to run concurrently for violating conditions of his federal supervised release from a prior alien smuggling conviction.
On July 19, 2023, Valisto picked up six undocumented non-citizens, including a 15-year-old unaccompanied minor, in a Ford F-150. Witnesses reported that Valisto was having difficulty controlling his vehicle, and appeared to be falling asleep as he approached a Border Patrol checkpoint. United States Border Patrol agents found all passengers to be present in the United States illegally.
Valisto previously had been convicted of Conspiracy to Transport Illegal Aliens for Profit, CR-18-01843-TUC-DCB, and Conspiracy to Transport an Illegal Alien, CR-11-01345-TUC-DCB.
Customs and Border Protection’s United States Border Patrol conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: 23-CR-01213-TUC-JCH
RELEASE NUMBER: 2023-204_Valisto# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Ten Individuals Indicted on Drug Trafficking Conspiracy ChargesRead the Press Release
JOHNSTOWN, PA - Ten residents of Western Pennsylvania and three residents of New York, have been indicted by a federal grand jury in Pittsburgh on charges of narcotics trafficking, firearms violations, and money laundering, United States Attorney Eric G. Olshan announced today.
The sixteen-count Indictment named the following thirteen individuals as defendants:
• Juan Duran, 34, of Brooklyn, NY
• Jason Lynn, 37, of Altoona, PA
• Miguel Arce, 39, of Brooklyn, NY
• Scott Daughenbaugh, 41, of Tyrone, PA
• Kurtis Dively, 38, of Claysburg, PA
• Douglas Hillegass, 61, of Duncansville, PA
• Daniel Paz, 32, of Queens, NY
• Joshua Pote, 41, of Roaring Spring, PA
• Tonya Settlemyer, 38, of Altoona, PA
• Andrew Stowell, 65, of Altoona, PA
• Brian Weakland, 65, of Coalport, PA
• Lesley Wilt, 37, of Glen Richey, PA
• Danielle Nepa, 48, of Gallitzin, PAAccording to the indictment, the named conspirators include leaders, members, drug suppliers, and associates of a drug trafficking organization responsible for distributing narcotics throughout Western Pennsylvania. According to the Indictment, the defendants conspired to possess with intent to distribute and distribute over 50 grams of methamphetamine, 500 grams of a mixture and substance containing a detectable amount of methamphetamine, and quantities of cocaine and heroin beginning in September 2022 and continuing through September 2023. The Indictment. alleges individual drug trafficking violations against Stowell, Pote, Lynn, and Nepa as well as a firearms violation against Lynn. Finally, the Indictment further alleges that Duran laundered the monetary proceeds of the illegal drug trafficking activity.
For all defendants except Nepa, the law provides for a minimum sentence of 10 years imprisonment and up to life, a fine of not more than $10,000,000, 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 each defendant.
For Nepa, the law provides for a term of imprisonment of not more than 20 years, a fine of not more than $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.
Assistant United States Attorney Jonathan D. Lusty is prosecuting this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Homeland Security Investigations, Internal Revenue Services, Pittsburgh Bureau of Police, and Pennsylvania State Police.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Sun Valley Man Arrested on Complaint Alleging He Sent Emails Threatening to ‘Unabomb’ the FBI’s Los Angeles Field OfficeRead the Press Release
LOS ANGELES – A San Fernando Valley man was arrested today on a federal criminal complaint alleging he sent a series of threatening emails to the FBI, including ones in which he threatened to bomb the FBI’s Los Angeles Field Office and referenced the notorious “Unabomber.”
Mark William Anten, 52, of Sun Valley, is charged with making threats by interstate communication, a felony offense that carries a statutory maximum sentence of five years in federal prison.
FBI agents arrested Anten without incident this morning at his residence. A federal magistrate judge this afternoon ordered Anten jailed without bond and scheduled an arraignment for January 11, 2024 in United States District Court in downtown Los Angeles.
According to an affidavit filed with the complaint, since July 2023, Anten has sent numerous threatening communications to the FBI, including emails that reference bombing the FBI’s Los Angeles Field Office in Westwood. Specifically, on November 2, 2023, Anten allegedly emailed FBI agents saying he “embrace[d]” that he was voted most likely in his graduating class to become the next Unabomber – a reference to Theodore John Kaczynski, whose 20-year bombing campaign killed three people and injured nearly two dozen more. Kaczynski was convicted of federal crimes, spent the bulk of his prison sentence in the “SuperMax” federal prison in Colorado, and died in prison on June 10.
In the November 2 email, Anten allegedly listed similarities between himself and Kaczynski, proclaimed that he was working on a manifesto, and signed his email “Unabomber.”
On November 20, two FBI Task Force Officers interviewed Anten in front of his residence. During the interview, Anten admitted to sending the previous communications and the officers admonished him to stop contacting agents, the affidavit states. Despite the admonition, Anten’s conduct escalated.
On December 5, Anten allegedly sent a string of threatening emails to FBI agents, in which he threatened to “Unabomb” the FBI’s Los Angeles Field Office. In one email sent on December 6, Anten allegedly emailed agents, “I can go on a mass murder spree. In fact, it would be very explainable by your actions” and signed it, “SuperMax or Death.” He also sent an email that included an image depicting the results of a Google internet search for “how to make a dirty bomb.”
Later on December 6, Anten visited the FBI’s Los Angeles Field Office and later emailed agents that he visited their building and would continue to do so. Surveillance footage confirmed Anten’s presence there.
A criminal complaint contained allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI investigated this matter.
Assistant United States Attorney J’me K. Forrest of the General Crimes Section is prosecuting this case.
Stoneboro Man Pleads Guilty to Theft of Government Property ChargeRead the Press Release
ERIE, Pa. - A resident of Stoneboro, Pennsylvania, pleaded guilty in federal court to a charge of theft of government property, United States Attorney Eric G. Olshan announced today.
Martin Meade Kobsik, age 42, pleaded guilty to one count before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that in April 2020, Kobsik obtained a $150,000 COVID-19 Disaster Assistance Loan from the Small Business Administration, falsely representing that he needed the money to maintain his business. Kobsik then used the proceeds from the loan for personal expenses, a vacation, and improvements to his home.
Judge Baxter scheduled sentencing for April 12, 2024, at 11:00 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Kobsik on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Kobsik.
South Georgian Pleads Guilty to Flying Drone to Drop Contraband at PrisonRead the Press Release
MACON, Ga. –A Lakeland, Georgia, resident pleaded guilty to flying his unregistered drone and dropping contraband at Macon State Prison.
Dedrick Daesean Sirmans, 32, pleaded guilty to one count of operating an aircraft eligible for registration knowing that the aircraft is not registered to facilitate controlled substance offense before Chief U.S. District Judge Marc Treadwell today. Sirmans faces a maximum of five years in prison to be followed by two years of supervised release and a maximum $250,000 fine. Sentencing is scheduled for March 7.
“Contraband in prisons is a danger to everyone inside the prison, where there is a high potential for violence and drug abuse, as well as inmates using cell phones to direct outside criminal activities,” said U.S. Attorney Peter D. Leary. “As the threat of drones delivering contraband continues to grow, our office—working with law enforcement—will hold all those attempting to get prohibited items to prisoners to the fullest extent of the law.”
“Using drones to distribute contraband is illegal and dangerous,” said Todd Damiani, Special Agent-In-Charge, Department of Transportation Office of Inspector General, Southern Region. “We will continue to partner with law enforcement and prosecutors to pursue those who intentionally engage in illicit activities that violate federal regulations.”
According to court documents, Georgia Department of Corrections (GDC) K9 handlers were conducting a patrol of the grounds around Macon State Prison at approximately 1:30 a.m. on Sept. 14, 2020, when they encountered Sirmans exiting the woods. Sirmans claimed he was there to meet a female he found on the dating app, Tinder. GDC officers conducted a search of the area and located two plastic bags wrapped in black duct tape with fishing line attached and a black hard-shell case containing a large drone. Inside the bundles, officers found $1,000 in cash, tobacco, marijuana, three cell phones, phone charges, rolling papers, a Bluetooth device and clothing. Sirmans car was parked on the road and officers found three pistols in the trunk.
Investigators with the Department of Transportation Office of Inspector General (DOT-OIG) discovered a total of 25 flight paths the drone had taken. Several of the flights took place over Macon State Prison and one flight was over Patten Probation Detention Center in Lakeland, Georgia. Investigators found that Flights 23 and 25 occurred on Sept. 14, 2020, within a couple of hours of Sirmans being found by GDC officers on the grounds around Macon State Prison. The drone was unregistered.
The case was investigated by DOT-OIG, GDC and the Macon County Sheriff’s Office.
Assistant U.S. Attorney Daniel Peach is prosecuting the case for the government.
Slovakian Man Accused of Running Darknet Market Selling Drugs and Personal InformationRead the Press Release
ST. LOUIS – A Slovakian man was indicted this week on charges that accuse him of running a darknet market that sold drugs and stolen personal information. Investigators have shut down the market.
Alan Bill, 30, of Bratislava, was charged by complaint in U.S. District Court in St. Louis December 14. Bill was arrested December 15 at the Newark Liberty International Airport in New Jersey by agents with the FBI and Homeland Security Investigations. In an indictment Wednesday, a grand jury charged Bill with ten felonies: conspiracy to distribute controlled substances, four counts of distribution of a controlled substance, conspiracy to commit identity theft and fraud related to identification documents, identity theft, aggravated identity theft, misuse of a passport and money laundering conspiracy.
The complaint and the indictment accuse Bill, also known as “Vend0r” and “KingdomOfficial,” of helping to set up and run Kingdom Market, which had over 25,000 active listings as of late last month. The market opened in March of 2021 and sold illegal drugs and unlicensed pharmaceuticals, stolen identities, credit card information, counterfeit money, computer malware and fraudulent identity documents including passports and drivers licenses from Missouri and other states, the charging documents say.
“The use of darknet marketplaces and cryptocurrency will not protect dangerous criminals from law enforcement efforts to combat the flow of narcotics and other illegal activities,” said U.S. Attorney Sayler A. Fleming. “This case is a result of diligent efforts by a team of U.S. and international investigators to target one of the largest darknet marketplaces in the world.”
“The Kingdom Market darknet site allowed criminals to move dangerous drugs in and out of our communities and use the digital world to hide their illegal activities,” said Assistant Special Agent in Charge Melissa McFadden of IRS Criminal Investigation’s (CI) St. Louis Field Office. “Collaboration with our global law enforcement partners is the key to disrupting drug trafficking, money laundering and the other illicit activities that occur on the darknet.”
“These darknet marketplaces present a significant danger to our communities here in the U.S. as well as those of our international partners.” said HSI Kansas City acting Special Agent in Charge Taekuk Cho. “Our HSI special agents will continue to disrupt and dismantle transnational criminal organizations wherever we find them. I would like to commend the efforts of our law enforcement partners for their work on this case, and especially thank the HSI Newark team for their assistance in arresting Bill.”
Kingdom Market charged vendors 500 Euros to start selling, then charged fees on sales. Transactions were conducted in cryptocurrency and Kingdom advised users in methods to conceal their transactions, the documents say.
Investigators used the market to purchase methamphetamine, pills containing fentanyl, the personally identifiable information belonging to numerous people and a United States passport, the charging documents say.
Websites associated with Kingdom Market have also been seized by law enforcement.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The drug trafficking conspiracy charge carries a penalty of at least five years in prison, with a maximum of 40, a fine of up to $5 million, or both. The identity theft conspiracy charge carries a penalty of up to 15 years in prison, a fine of $250,000, or both. The misuse of a passport charge carries a penalty of up to 20 years in prison, a fine of $250,000, or both. The money laundering conspiracy charge carries a maximum penalty of up to 20 years in prison and a fine of $500,000, or twice the value of the property involved.
IRS Criminal Investigation, the FBI, Homeland Security Investigations, the Drug Enforcement Administration, the U.S. Postal Inspection Service, the Social Security Administration Office of Inspector General, the Bureau of Diplomatic Security and the Missouri Department of Revenue investigated the case. The investigation also involved numerous foreign law enforcement agencies, including the German Federal Criminal Police, or Bundeskriminalamt, the Frankfurt am Main Public Prosecutor's Office - Central Office for Combating Internet Crime (ZIT) as well as law enforcement agencies from Switzerland, the Republic of Moldova and Ukraine. Assistant U.S. Attorney Kyle Bateman is prosecuting the case.
Shiprock Woman Sentenced to 30 Months in Prison for Involuntary ManslaughterRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Courtney Frank was sentenced to 30 months in prison. Frank, of Shiprock, an enrolled member of Navajo Nation, pled guilty to involuntary manslaughter on September 14, 2023.
According to court documents, on September 28, 2022, 19-year-old Frank was intoxicated when she drove a car over the center line of a country road in Shiprock and struck an oncoming car head-on. The other driver survived the initial impact but died at the scene. The decedent’s son was also injured in the wreck. Frank’s BAC was .327.
Upon her release from prison, Frank will be subject to three years of supervised release.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department and Department of Criminal Investigations and the New Mexico State Police. Assistant United States Attorney Zachary C. Jones is prosecuting the case.
View the Indictment View the Plea Agreement# # #
23-299
Rutland Woman Indicted on Drug ChargesRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont announced that Maria Alvarez, 43, of Rutland, was arraigned in U.S. District Court in Burlington on December 21, 2023. Previously, a federal grand jury sitting in Rutland, Vermont returned a one-count indictment on November 15, 2023, alleging that Alvarez possessed cocaine with intent to distribute it. Alvarez was arrested on December 20, 2023 and made an initial appearance this afternoon before Magistrate Judge Kevin J. Doyle. Alvarez was ordered detained pending further proceedings.
According to court records, Rutland police responded to a call on September 26, 2023 regarding potentially unresponsive people in a vehicle. Police found Alvarez in the front passenger seat and another individual in the driver’s seat. Police observed on the driver’s lap what appeared to be a rock of crack cocaine. When police effected Alvarez’s arrest, they saw her place in the adjacent door a container with several rocks of what appeared to be crack cocaine. All of the apparent crack cocaine field-tested positive. Police arrested the driver and Alvarez, secured the vehicle and obtained a state court search warrant to search the vehicle.
When police executed the search warrant on the vehicle, they found three bags in the footwell where Alvarez had been seated in the front passenger seat. From those bags, police recovered a variety of items, including: Alvarez’s non-driver’s ID, a key to a lockbox which contained over 600 grams of powder cocaine, over $5,000 in cash and suspected drug packaging. From the vehicle, police also recovered two scales, among other items.
The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Alvarez remains presumed innocent unless and until she is convicted of a crime. If convicted, Alvarez faces a maximum possible penalty of 40 years in prison and a $5 million fine. The actual sentence following any conviction will be advised by the U.S. Sentencing Guidelines and the United States Code.
The investigation has been led by the Rutland Police Department. The case will be prosecuted by Assistant U.S. Attorneys Jonathan A. Ophardt and Colin Owyang. Alvarez is represented by Richard C. Bothfeld, Esq.
Richmond Career Criminal Sentenced to over 13 Years in Prison for Distributing FentanylRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 160 months in prison, followed by five years of supervised release, for possessing with the intent to distribute approximately 550 grams of fentanyl.
According to court documents, Mario Williams, 55, was a prolific drug dealer who sold fentanyl daily from his car at a car wash and a convenience store in Richmond. Agents from the Drug Enforcement Administration (DEA) obtained search warrants and planned an operation to detain Williams. On March 16, 2023, an agent conducting surveillance at the car wash watched Williams engage in multiple suspected drug deals. Agents detained Williams and searched his person, his cars, and his home. They recovered 549 grams of fentanyl—more than 5,000 individual doses—47 grams of cocaine base, 12 grams of cocaine, and 120 oxycodone pills. Agents also seized three firearms and an additional loaded magazine. Williams had over $1,200 on his person when he was arrested.
After his arrest, Williams admitted to dealing drugs. During the bail determination after his arrest, when asked by the magistrate judge about his sources of income, Williams stated, “Deal drugs, and I have no idea how much money I make.”
Williams, who was sentenced as a career offender, was previously convicted of second-degree murder, use of a firearm in the commission of a murder, assault and battery of a police officer, possession of cocaine with the intent to distribute, and possession of a firearm by a convicted felon.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the DEA’s Washington Division; and Rick Edwards, Chief of Richmond Police, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorney Jessica Wright prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-47.
Rhode Island Man Sentenced to 68 Months in Prison for Trafficking over One Hundred “Ghost Guns” to the Dominican RepublicRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ROBERT ALCANTARA was sentenced today by U.S. District Judge Vernon S. Broderick to 68 months in prison for trafficking firearms. ALCANTARA previously pled guilty to conspiring to traffic firearms and conspiring to launder money.
U.S. Attorney Damian Williams said: “Robert Alcantara alone trafficked over 100 untraceable ghost guns to the Dominican Republic. The proliferation of unlawful ghost guns is a threat to public safety, and our response is clear: we will not let up.”
According to the charging documents and other filings and statements made in court:
From approximately 2017 until January 2022, ALCANTARA operated a “ghost gun” factory out of his home in Rhode Island. ALCANTARA purchased ghost gun kits at gun shows and other places and then machined the kits into working firearms. Once he had completed the untraceable firearms, he exported and sold them to the Dominican Republic. Most of those guns were handguns, but a number were rifles. ALCANTARA and others then laundered the proceeds of his gun sales.
On November 20, 2021, ALCANTARA was stopped in his vehicle in possession of kits to build approximately 45 ghost guns.
ALCANTARA was interviewed by law enforcement agents and stated that he was planning to turn the 45 kits into working firearms, and he had 50 additional similar ghost guns at his home. A photograph of the 45 ghost gun kits is below:
Below are photographs of ALCANTARA’s home ghost gun factory:
Below are photos ALCANTARA sent of firearms he had available for sale in the Dominican Republic:
* * *
In addition to the prison term, ROBERT ALCANTARA, 36, of Providence, Rhode Island was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Department of Commerce’s Office of Export Enforcement, New York Field Office. Mr. Williams also thanked the New York City Police Department, the New York State Police Department, the Providence Police Department, and the U.S. Attorney’s Office for the District of Rhode Island for their assistance in the case.
The case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorney Kevin Mead is in charge of the prosecution.
Rensselaer County Man Pleads Guilty to Possession of a MachinegunRead the Press Release
ALBANY, NEW YORK –Ahmed AlSaadi, age 18, of Troy, New York, pled guilty today to possessing a machinegun. The announcement was made by United States Attorney Carla B. Freedman; James Smith, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI); John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Troy Police Chief Daniel DeWolf.
AlSaadi admitted that on August 2, 2023, he possessed three machinegun conversion devices and a Glock handgun that had been modified with a machinegun conversion device that allowed the Glock to shoot and function as a machinegun. AlSaadi also admitted to selling machinegun conversion devices from March to July 2023.
AlSaadi, who is in custody, is scheduled to be sentenced on April 16, 2024, in Albany, by United States District Judge Mae A. D’Agostino. He faces up to 10 years in prison and a maximum fine of up to $250,000. The court may also require AlSaadi to serve a term of supervised release of up to 3 years to begin after imprisonment. 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.
ATF, FBI, and Troy Police Department investigated the case. Assistant United States Attorney Alexander Wentworth-Ping is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Readout from United States Attorney Alexander M.M. Uballez’s Meeting with Governor Michelle Lujan Grisham and Representatives from Federal AgenciesRead the Press Release
ALBUQUERQUE – Last week, Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and federal prosecutors from the United States Attorney’s Office (USAO) hosted New Mexico Governor Michelle Lujan Grisham and representatives from 13 federal agencies that serve New Mexico. The meeting focused on ongoing efforts to reduce violent crime in Albuquerque by the Federal Bureau of Investigations (FBI), Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Drug Enforcement Administration (DEA) and U.S. Marshals Service (USMS) and the partnership between federal and state law enforcement agencies to increase public safety.
U.S. Attorney Uballez opened the meeting by outlining the unique and close relationship between federal, state, and local law enforcement in New Mexico wherein federal law enforcement surgically targets drivers of violent crime for federal investigation and prosecution. Governor Lujan Grisham expressed her wholehearted support for federal criminal enforcement, and enthusiasm for the partnership, while noting that previous broadly targeted efforts to arrest had negligible impacts on violent crime. U.S. Attorney Uballez offered that the reason why federal resources are best used in a targeted fashion at the worst drivers of violence, freeing up state law enforcement to address lower-level crimes. U.S. Attorney identified the USAO’s policy of community violence intervention as the only law enforcement approach to result in statistically meaningful reductions in violent crime. This coordinated focused deterrence model identifies drivers of violent crime and offers support to those who chose peace, and federal criminal enforcement to those who chose violence.
To highlight law enforcement efforts, Special Agent in Charge Raul Bujanda of the FBI Albuquerque Field Office discussed the Violent Crime Task Force, a partnership between federal and state law enforcement agencies where federal agents and cross-designated Task Force Officers (TFOs) from local and state law enforcement agencies work together to target drivers of violent crime. Next, Special Agent in Charge Brendan Iber from the ATF’s Phoenix Field Division and Special Agent in Charge Jeffrey Boshek from the ATF’s Dallas Field Division discussed crime gun intelligence efforts including crime gun tracing and the National Integrated Ballistic Information Network (NIBIN), which captures and compares ballistic evidence to aid in solving crimes. Next, Assistant Special Agent in Charge John E. Gonzalez from the DEA discussed their data-driven Operation Overdrive which targets violent criminals and drug traffickers linked to overdose deaths. Finally, Chief Deputy U.S. Marshal Russell Lashley highlighted Operation North Star where Marshal’s deputies arrested violent offenders with outstanding warrants.
U.S. Attorney Uballez summarized that cross-designation is the key to the relationship—TFOs from state and local law enforcement and Special Assistant United States Attorneys (SAUSAs) from local district attorney’s offices are a force multiplier and a critical bridge between agencies.
The federal agencies also discussed the pernicious threat posed by transnational criminal organizations (TCOs) operating human smuggling operations on New Mexico’s southern Border. Criminal Chief Aaron Jordan, of the U.S. Attorney’s Las Cruces Branch Office, described the combined efforts of the Departments of Justice and Homeland Security in Joint Task Force Alpha to target command-and-control elements of TCOs, charging their leadership and seizing their money. Chief Jordan also described the USAO’s focused effort to charge all migrants and smugglers who pose a demonstrable threat to public safety in New Mexico. Chief Patrol Agent Anthony Good from U.S. Border Patrol Deputy and Deputy Special Agent in Charge Jason T. Stevens from Homeland Security Investigations described how the number of migrant deaths in the El Paso Sector doubled from 2022 to 2023, how smuggling organizations recruit minors to drive migrants, how the conditions in “stash houses” where migrants are kept are inhumane, and how migrants face extortion, violence, and rape at the hands of their smugglers.
Other attendees from federal agencies included Chief U.S. Probation Officer Ronald Travers from U.S. Probation and Parole, Special Agent in Charge William Mack from the U.S. Secret Service, Resident Agent in Charge Brenda Gonzales from the Bureau of Indian Affairs, Special Agent in Charge Albert Childress from the Internal Revenue Service, Assistant Inspector in Charge Greg Torbenson from the U.S. Postal Inspection Service, and Special Agent in Charge Victoria Owens from U.S. Fish and Wildlife Service. All of the participants expressed a commitment to partner with other federal, state, and local law enforcement agencies to address violent crime in not only Albuquerque, but the entire state.
# # #
23-297
Ramsey Man Sentenced to over 10 Years in Prison for Violent CarjackingsRead the Press Release
MINNEAPOLIS – A Ramsey man has been sentenced to 130 months in prison followed by three years of supervised release and was ordered to pay $1,918.28 in restitution for his role in a string of carjacking and firearms violations, announced U.S. Attorney Andrew M. Luger.
According to court documents, on January 3, 2022, Jordan James Smith, 27, approached an individual who was sitting in a parked vehicle. Smith opened the driver’s door of the victim’s Nissan Juke and pushed a gun into the victim’s torso. Smith then stated, “I’ve got a [expletive] gun,” and directed the victim to “give me everything you have and get out of the car.” Smith pulled the victim from the car, got into the driver’s seat, and drove off. The victim’s phone and wallet were still in the car as Smith fled. On January 10, 2022, Smith and an associate used the victim’s Nissan Juke as collateral to test drive a black Maserati. Smith and his associate abandoned the Nissan Juke and stole the black Maserati before being apprehended by law enforcement.
On February 3, 2022, Smith and his co-defendant Carson Thomas McCoy, 22, of Blaine, along with other associates, broke into a local car dealership. The group stole several vehicles, including an unlicensed GMC Acadia. Later that morning, at 8:30 a.m., McCoy—who was driving the stolen GMC Acadia—ran a stop sign and struck another vehicle. McCoy abandoned the GMC Acadia and ran to another vehicle being driven by Smith. However, before leaving the area, Smith approached the vehicle McCoy hit, pointed a gun at the driver, and said “give me your purse or I’ll [expletive] kill you.” Smith then returned to his vehicle and fled the scene with the victim’s iPhone, housekeys, and a child’s backpack.
Shortly thereafter, at approximately 9:00 a.m., Smith noticed the driver of a silver Honda Accord parked in a nearby residential area. Smith and McCoy exited the blue Honda Accord and approached the silver Honda Accord. Smith tapped on the driver’s side window with his gun. The driver of the silver Honda Accord exited the vehicle and, as the driver attempted to retrieve a wallet, Smith threatened the driver with his gun. Smith and McCoy then drove off in the silver Honda Accord. Smith was apprehended later that same day on an unrelated warrant. Because Smith has prior felony convictions, he was prohibited under federal law from possessing firearms or ammunition at any time.
Smith pleaded guilty on August 21, 2023, to two counts of carjacking. He was sentenced earlier this week in U.S. District Court before Judge John R. Tunheim. McCoy will be sentenced on January 3, 2024.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, the Blaine Police Department, the Hennepin County Violent Offender Task Force, and the Anoka County Sheriff’s Office.
Assistant U.S. Attorney Jordan L. Sing prosecuted the case.
Pornhub Parent Company Admits to Receiving Proceeds of Sex Trafficking and Agrees to Three-Year MonitorRead the Press Release
Earlier today, in federal court in Brooklyn, Aylo Holdings S.A.R.L. (formerly MindGeek S.A.R.L.) (Aylo), parent company to Pornhub.com, was arraigned on a charge of engaging in unlawful monetary transactions involving sex trafficking proceeds, after entering into a deferred prosecution agreement (DPA) with the United States Attorney’s Office for the Eastern District of New York to resolve the charge. The proceeding was held before United States Chief Magistrate Judge Lois Bloom. The DPA provides for the appointment of a monitor (Monitor) for three years and for payments to be made to the United States and to individuals adversely affected by the underlying sex trafficking.
Breon Peace, United States Attorney for the Eastern District of New York, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the deferred prosecution agreement.
Mr. Peace also thanked the Victim/Witness Unit of the U.S. Attorney’s Office for the Southern District of California, and the FBI’s San Diego Field Office for their valuable assistance in this case.
“This deferred prosecution agreement holds the parent company of Pornhub.com accountable for its role in hosting videos and accepting payments from criminal actors who coerced young women into engaging in sexual acts on videos that were posted without their consent,” stated United States Attorney Peace. “This Office is committed to ensuring internet safety and protecting people from online sexual exploitation. It is our hope that this resolution, which includes certain agreed payments to the women whose images were posted on the company’s platforms and an independent monitorship brings some measure of closure to those negatively affected. This resolution will not only provide oversight over one of the largest online content distributors in the world and ensure the company’s lawful behavior, but it will also develop industry-wide standards for safety and compliance.”
“Motivated by profit, Aylo Holdings knowingly enriched itself by turning a blind eye to the concerns of victims who communicated to the company that they were deceived and coerced into participating in illicit sexual activity” stated FBI Assistant Director-in-Charge Smith. “Make no mistake, any entity that engages in sexual exploitation will be held to account for the mental anguish and terror imposed on victims. I hope today’s proceedings bring a sense of justice to the victims in this case as they move forward in their lives.”
Unlawful Receipt of Sex Trafficking Proceeds
Aylo operates free and paid adult websites that allow third parties to post and distribute adult videos, including on its websites Pornhub.com and PornhubPremium.com. As part of its business, Aylo contracted and/or partnered with adult entertainment companies who were given personalized channels on Aylo’s websites, which Aylo promoted and from which Aylo profited.
Beginning in 2009, Aylo hosted pornographic videos created by GirlsDoPorn (GDP) founder Michael Pratt and his co-conspirators (collectively referred to as the “GDP Operators”) on Aylo’s websites, including Pornhub.com. The GDP Operators owned and operated a pornographic production company and online pornography websites called GDP and “GirlsDoToys” (GDT). In 2019, a federal grand jury in the Southern District of California returned an indictment against the GDP Operators, for, among other charges, sex trafficking offenses, for deceiving and coercing young women to appear in sex videos which were then posted online without the women’s consent. See United States v. Pratt, et. al. 19-CR-4488. Since then, several of the GDP Operators have been convicted in connection with that criminal prosecution.
According to Aylo’s admissions and/or court documents filed today, between 2017 and 2019, Aylo received money that Aylo knew or should have known was derived from the GDP Operators’ sex trafficking operations. For example, in September 2017, Aylo learned that many of the women appearing in the GDP and GDT videos had filed a civil lawsuit in California against the GDP Operators alleging that the complainants had been tricked and coerced into filming the adult videos and that the videos were posted on Pornhub.com without their consent. Between 2016 and 2019, Aylo also received several content removal requests from complainants seeking to remove GDP videos from its websites. The complainants told Aylo that they had been lied to and defrauded into making these videos and that the videos were posted on Pornhub.com without their consent. Although Aylo sought, and received, information from the GDP Operators that purported to establish that the complainants had given consent for their videos to be posted online, Aylo did not independently verify consent and did not remove all the videos that were requested to be taken down. Moreover, in August 2019, Aylo learned that a GDP videographer had testified during the civil trial that he falsely told women that their sex videos would not appear online so that they would agree to appear in the videos, and that such videos were posted on Pornhub.com. Despite the above, Aylo continued to host the GDP and GDT channels on its websites and accept money from its partnership with the GDP Operators.
On or about October 14, 2019, Aylo finally removed the official GDP channel from its platforms. However, the company did not take steps to identify for removal all unofficial GDP content from its website at that time. Aylo also did not remove the official GDT channel from its platforms until December 2020 even though the company knew that the individuals operating GDT were the same as those who operated GDP and that many of the individuals featured in the GDP videos were also featured in the GDT videos.
The Deferred Prosecution Agreement
Under the terms of the deferred prosecution agreement, Aylo has agreed to pay $1,844,952.83 to the United States. Aylo has also agreed to provide monetary payments to victims of the GDP Operators who have not otherwise already received compensation, and whose images were posted on Aylo’s platforms.
Aylo has agreed to be subject to an independent Monitor for a period of three years. The Monitor will be tasked with assessing the company’s compliance with the terms of the DPA. The Monitor will also evaluate the strength and thoroughness of Aylo’s due diligence protocols for its content partners and content programs; the robustness of the company’s content screening and monitoring processes; the adequateness of the staffing and resources dedicated by Aylo to address, mitigate and remediate takedown requests or allegations of the presence of illegal content on the company’s platforms; and the adequacy of the company’s disclosures to relevant law enforcement authorities regarding the presence of illegal content on the company’s platforms. Aylo has agreed to cooperate fully with the Monitor, and to adopt and implement recommendations made by the Monitor, subject to the terms of the DPA.
The Office reached this resolution with Aylo based on several factors, including the nature and seriousness of the offense; the fact Aylo did not voluntarily self-disclose its criminal conduct to the Office but thereafter cooperated with the Office’s investigation; its removal of GDP and GDT content from its platforms; the nature of remedial measures Aylo has instituted across its platforms since 2020; and Aylo’s commitment to remediating and improving its compliance program and internal controls, including its agreement to a three-year monitorship. In reaching this resolution, the Office also considered the wide-ranging impact the monitorship will have on Aylo and, possibly more broadly, other adult website operators and internet safety generally.
In the event Aylo breaches the terms of the DPA, the company has agreed to be prosecuted for engaging in an unlawful monetary transaction, in violation of Title 18, United States Code, Section 1957.
The investigation was conducted by the FBI’s New York Field Office. The government’s case is being handled by the Office’s Business and Securities Fraud Section in coordination with the Office’s Bank Integrity Task Force, which is charged with investigating and charging corporate and individual actors who launder criminal proceeds using the U.S. banking system and enforcing anti-money laundering controls under the Bank Secrecy Act. Assistant United States Attorneys Hiral Mehta, Gillian Kassner, Genny Ngai and Tara McGrath are in charge of the prosecution.
The Defendant:
AYLO HOLDINGS S.A.R.L.
E.D.N.Y. Docket No. 23-CR-463 (BMC)
Pittsburgh Man Sentenced to Five Years in Prison for Possession of Material Depicting the Sexual Exploitation of a MinorRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, was sentenced in federal court on December 20, 2023, on a charge of Possession of Material Depicting the Sexual Exploitation of a Minor, United States Attorney Eric G. Olshan announced.
Troy D. Arnold, age 57, was sentenced to five years of imprisonment followed by 10 years of supervised released by United States District Judge Robert J. Colville.
The court was advised that on or about August 15, 2022, Arnold possessed more than 2,700 images and videos depicting the sexual exploitation of children. These images and videos included the sexual exploitation of prepubescent minors and minors who had not attained 12 years of age as well as material that portrayed sadistic or masochistic conduct or other depictions of violence, and the sexual abuse or exploitation of infants or toddlers.
Assistant United States Attorney Carl J. Spindler prosecuted this case on behalf of the United States.
United States Attorney Olshan commended the Pittsburgh Office of Homeland Security Investigations for the investigation leading to the successful prosecution of Arnold.
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.
Philadelphia Used Car Salesman Charged with Stealing over $2.5 Million from Customers Who Sought Wheelchair Accessible VehiclesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Edward Scott Rock, 47, of Philadelphia, Pennsylvania was arrested and charged by Indictment on charges of mail and wire fraud for conducting a non-delivery sales scheme in which Rock accepted payment for, but failed to deliver, automobiles to approximately 120 purchasers.
The Indictment alleges that between 2019 and 2023, Edward Scott Rock obtained used vehicles from automobile auctions, and then listed and advertised them for sale on the Internet. The majority of vehicles sold by Rock to victims were accessible vehicles equipped for wheelchair-users or people with disabilities. Despite signing bills of sale for the vehicles, and accepting payment, Rock did not deliver the vehicles as agreed upon. In total, Rock defrauded approximately 120 victims across 36 states, and caused losses exceeding $2.5 million. Approximately two-thirds of Rock’s victims were persons with a physical or mobility disability, persons over the age of 65, or businesses which provided transportation services to those populations.
On several occasions, Edward Scott Rock sold the same vehicle to multiple customers. After agreeing to sale terms and accepting payment from a customer for a particular vehicle, Rock continued to list, sell, and accept payment for that same vehicle again, this time from a new victim-purchaser. In one instance, Rock agreed to sell a particular vehicle – a wheelchair-accessible 2017 Ford T150 van – to 13 different buyers over an 11-month period between February 2022 and January 2023. Despite accepting 13 payments from 13 different buyers and collecting over $260,000 all for the same vehicle, Rock only delivered the vehicle to one buyer (albeit without proper title). Rock failed to deliver the vehicle to the other 12 victims, who had all also purchased and paid for the vehicle.
If convicted, the defendant faces a maximum possible sentence of 170 years’ imprisonment, a 5-year period of supervised release, a $2,750,000 fine, and restitution and forfeiture.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Philadelphia Police Department, Major Crimes, Auto Squad, and the Pennsylvania Office of Attorney General, Bureau of Consumer Protection. The case is being prosecuted by Assistant United States Attorney Samuel S. Dalke.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pharmaceutical Company Ultragenyx Agrees to Pay $6 Million for Allegedly Paying Kickbacks to Induce Claims for its Drug CrysvitaRead the Press Release
BOSTON – Pharmaceutical company Ultragenyx Pharmaceutical, Inc. (Ultragenyx) has agreed to pay $6 million to resolve allegations that it caused the submission of false claims to Medicare and Medicaid. The settlement concerns Ultragenyx paying for free genetic tests for patients and buying test result information to induce prescriptions of Crysvita.
Ultragenyx is a pharmaceutical manufacturer headquartered in California that manufactures Crysvita. Crysvita is an FDA-approved drug to treat X-linked hypophosphatemia (XLH) in adult and pediatric patients six months of age and older. XLH is a rare inherited disorder characterized by low levels of phosphate in the blood, which can lead to weak bones and, in many instances, may require a genetic test to definitively diagnose.
As part of the settlement, Ultragenyx admitted and accepted responsibility for certain facts providing the basis of the settlement. Ultragenyx understood that, in some cases, an insurer (including Medicare or Medicaid) would require a positive genetic test for a genetic mutation consistent with XLH to pay for a patient’s prescription for Crysvita, or a health care provider (HCP) would require a positive genetic test to make a definitive diagnosis of XLH and prescribe Crysvita. Thus, Ultragenyx entered into an arrangement with a genetic testing laboratory (Laboratory), whereby Ultragenyx paid the Laboratory to conduct genetic tests—at no cost to HCPs or patients—and provide the results to the HCP. Ultragenyx referred to this program as its “sponsored” XLH testing program. Ultragenyx sales personnel discussed the XLH testing program with HCPs and delivered order forms for the tests to HCP’s offices.Ultragenyx separately paid the Laboratory to provide the test results to Ultragenyx, including the name of the HCP who ordered the test, a de-identified patient ID number, the date the test was ordered, and—once ready—the test result itself ( “Results Reports”). Ultragenyx used the Results Reports, in part, for marketing purposes to find potential Crysvita patients and their HCPs. Until April 2022, Ultragenyx received Results Reports and disseminated this information to its sales force with instructions to make sales calls for Crysvita to HCPs who ordered a test or who had a patient with a positive test result. Ultragenyx’s sales force followed up with HCPs regarding test results.
The United States contends that, as a result of these actions, Ultragenyx caused the submission of false claims to Medicare and Medicaid by paying kickbacks to beneficiaries in the form of free genetic tests to induce their purchase of Medicare- or Medicaid-reimbursed Crysvita and to the Laboratory for the Results Reports to induce the Laboratory’s to refer to Ultragenyx the names of HCPs to whom Ultragenyx could market Crysvita.
“Kickbacks, in whatever form, have no business in our federal healthcare system. We are always on the lookout for financial kickbacks that can improperly influence medical decisions, undermine patient care, and cause waste to federal healthcare programs,” said Acting United States Attorney Joshua S. Levy. “As medical practices evolve, our office is committed to ferreting out improper financial kickbacks of any permutation.”
“The department is committed to protecting the integrity of federal health care programs and the medical care received by their beneficiaries,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “A primary focus of this effort is the pursuit of kickback schemes that can allow third parties, such as pharmaceutical manufactures, to insert themselves into the doctor-patient relationship and potentially undermine the objectivity of treatment decisions by physicians and patients.”
“Kickback arrangements designed to improperly influence medical decisions will always be an investigative priority for our agency,” said Special Agent in Charge Roberto Coviello of the U.S. Department of Health and Human Services, Office of Inspector General. “The goals of our continued enforcement in this area are to protect the integrity of taxpayer-funded health care programs such as Medicare and Medicaid, and to curb schemes that can inappropriately manipulate the health care choices of patients and their doctors.”
“Today’s settlement makes it crystal clear that pharmaceutical companies like Ultragenyx will not be allowed to exploit patient data to target patients for treatments in order to boost their bottom line at the expense of taxpayer-funded health care programs,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Let this case be a warning to others that the FBI and our law enforcement partners are hard at work investigating allegations of health care fraud, and anyone engaging in similar conduct will face similar consequences.”
The allegations resolved by the settlement agreement were, in part, originally brought in a case filed under the whistleblower, or qui tam, provision of the False Claims Act. The case is captioned U.S. ex rel. Ruggiero v. Ultragenyx Pharmaceutical, Inc. (D. Mass.) (No. 1:21-cv-11176-ADB). The False Claims Act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government did, in part, in this case. Of the total $6 million recovery, approximately $5.8 million constitutes a recovery for Medicare and the federal share of Medicaid and approximately $200,000 constitutes a recovery for state Medicaid programs. The whistleblower will receive approximately $1.07 million from the federal portion of the recovery.
Acting U.S. Attorney Levy; AAG Boynton; HHS-OIG SAC Coviello; and FBI SAC Cohen made the announcement today. Assistant U.S. Attorneys Brian LaMacchia and Diane Seol and Senior Counsel for Health Care Fraud Augustine Ripa handled the matter.
Pharmaceutical Company Ultragenyx Agrees to Pay $6 Million for Allegedly Paying Kickbacks to Induce Claims for Its Drug CrysvitaRead the Press Release
Pharmaceutical company Ultragenyx Pharmaceutical Inc. (Ultragenyx) has agreed to pay $6 million to resolve allegations that it caused the submission of false claims to Medicare and Medicaid, in violation of the False Claims Act, by paying for free genetic tests, plus a separate fee to receive test result information for marketing purposes, to collectively induce prescriptions of its drug Crysvita and referrals of health care providers (HCPs) to Ultragenyx for the furnishing or arranging for the furnishing of Crysvita.
Ultragenyx is a pharmaceutical manufacturer with a principal place of business in California that manufactures Crysvita. Crysvita is an FDA-approved drug to treat X-linked hypophosphatemia (XLH) in adult and pediatric patients six months of age and older. XLH is a rare inherited disorder characterized by low levels of phosphate in the blood, which can lead to weak bones and, in many instances, may require a genetic test to definitively diagnose.
Ultragenyx understood that, in some cases, a positive genetic test for a genetic mutation consistent with XLH would be required for an insurer (including Medicare or Medicaid) to pay for a patient’s prescription for Crysvita, or for a healthcare provider (HCP) to make a definitive diagnosis of XLH and prescribe Crysvita. Thus, Ultragenyx entered into an arrangement with a genetic testing laboratory (Laboratory), whereby Ultragenyx paid the Laboratory to conduct genetic tests — at no cost to HCPs or patients — and provide the results to the HCP. Ultragenyx referred to this program as its “sponsored” XLH testing program and Ultragenyx sales personnel discussed the XLH testing program with HCPs and delivered order forms for the tests to HCP offices.
Ultragenyx separately paid the Laboratory to provide the test results to Ultragenyx, including the name of the HCP who ordered the test, a de-identified patient ID number, the date the test was ordered and — once ready — the test result itself (collectively, Results Reports). Ultragenyx used the Results Reports, in part, for marketing purposes to find potential Crysvita patients and their HCPs. Until April 2022, Ultragenyx received Results Reports and disseminated this information to its sales force with instructions to make sales calls for Crysvita to HCPs who ordered a test or, in particular, who had a patient with a positive test result. Ultragenyx’s sales force followed up with HCPs regarding test results. The United States contends that, as a result of these actions, Ultragenyx caused the submission of false claims to Medicare and Medicaid by paying kickbacks 1) to beneficiaries in the form of free genetic tests to induce their purchase of Medicare or Medicaid-reimbursed Crysvita and 2) to the Laboratory for the Results Reports to induce the referral to Ultragenyx of HCPs to whom Ultragenyx could market Crysvita.
As part of the settlement, Ultragenyx admitted and accepted responsibility for certain facts providing the basis of the settlement.
“The department is committed to protecting the integrity of federal health care programs and the medical care received by their beneficiaries,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. “A primary focus of this effort is the pursuit of kickback schemes that can allow third parties, such as pharmaceutical manufactures, to insert themselves into the doctor-patient relationship and potentially undermine the objectivity of treatment decisions by physicians and patients.
“Kickbacks, in whatever form, have no business in our federal healthcare system” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “We are always on the lookout for financial kickbacks that can improperly influence medical decisions, undermine patient care and cause waste to federal healthcare programs. As medical practices evolve, our office is committed to ferreting out improper financial kickbacks of any permutation.”
“Kickback arrangements designed to improperly influence medical decisions will always be an investigative priority for our agency,” said Special Agent in Charge Roberto Coviello of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “The goals of our continued enforcement in this area are to protect the integrity of taxpayer-funded health care programs such as Medicare and Medicaid, and to curb schemes that can inappropriately manipulate the health care choices of patients and their doctors.”
“The FBI and its partners will not stand by when a pharmaceutical company illegally takes advantage of our health care system,” said Executive Assistant Director Timothy Langan of the FBI’s Criminal, Cyber, Response and Services Branch. “Those who engage in activity that violates the False Claims Act must face the consequences of their actions. As we strive to protect the American people, we will not stop working to combat healthcare fraud.”
The allegations resolved by the settlement agreement were, in part, originally brought in a case filed under the whistleblower, or qui tam, provision of the False Claims Act. The case is captioned United States ex rel. Ruggiero v. Ultragenyx Pharmaceutical, Inc. (D. Mass.) (No. 1:21-cv-11176-ADB). The False Claims Act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government did, in part, in this case. Of the total $6 million recovery, approximately $5.8 million constitutes a recovery for Medicare and the federal share of Medicaid and approximately $200,000 constitutes a recovery for State Medicaid programs. The whistleblower will receive approximately $1.07 million from the federal portion of the recovery.
The government’s pursuit of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800‑HHS‑TIPS (800-447-8477).
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 and the U.S. Attorney’s Office for the District of Massachusetts, with investigative support from HHS-OIG and the FBI’s Boston Field Office.
This matter was handled by Senior Counsel for Health Care Fraud Augustine Ripa and Assistant U.S. Attorneys Brian LaMacchia and Diane Seol for the District of Massachusetts.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
SettlementPayette Man Sentenced to over 7.5 Years in Federal Prison for Possessing Child PornographyRead the Press Release
BOISE – Joel J. Martinez, 35, of Payette, was sentenced to 92 months in federal prison for possession of child pornography, U.S. Attorney Josh Hurwit announced today.
According to court records, the investigation began when Homeland Security Investigations (HSI) received numerous CyberTips from Google. A CyberTip is a report submitted to the National Center for Missing and Exploited Children (NCMEC). NCMEC gathers leads and tips regarding suspected online crimes against children and forwards them to the appropriate law enforcement agencies. HSI determined that Google accounts, later identified as belonging to Martinez, had uploaded child pornography.
HSI obtained a search warrant for the contents of the Google accounts and located over 200 videos of child pornography within the accounts. HSI later executed a federal search warrant at Martinez’s residence in Payette. HSI seized several cellphones and a SD card belonging to Martinez. HSI located additional files of child pornography on the devices. During an interview, Martinez admitted to downloading and viewing child pornography and to paying for access to a website that contained child pornography.
Senior U.S. District Judge B. Lynn Winmill also sentenced Martinez to 10 years of supervised release and ordered him to pay $3,000 in restitution to a victim in the images he possessed. Martinez will be required to register as a sex offender as a result of the conviction.
“Protecting our children from internet predators is, and must be, a priority for both the government and internet service providers,” said U.S. Attorney Hurwit. “CyberTips like the one that led to this conviction exemplify the value of public/private cooperation. My Office will continue to prioritize these prosecutions and hold accountable those who would exploit children.”
“In safeguarding our community, we stand united against those who exploit innocence. Martinez's sentencing is a testament to the resilience of collaboration, reminding us that protecting our children is not just a duty, but a shared commitment to their well-being and the strength of our community bonds,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “HSI is proud to work closely with the Idaho ICAC team along with the Payette Police Department to effect this judgement.”
U.S. Attorney Hurwit commended the cooperative efforts of HSI, the Idaho Internet Crimes Against Children Task Force, and the Payette Police Department, which led to the charge. Assistant U.S. Attorney Kassandra McGrady prosecuted this 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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
###