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21 December 2023
Owner of Marketing Companies Admits Role in $24 Million Health Care Fraud and Kickback SchemeRead the Press Release
NEWARK, N.J. – An Ohio man and owner of several marketing companies today admitted his role in conspiracies to commit health care fraud and to pay and receive illegal kickbacks, Attorney for the United States Vikas Khanna announced.
James D. Feeley, 46, of Grafton, Ohio, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
From June 2017 through September 2020, Feeley participated in a scheme with pharmacies, telemedicine companies, and doctors to submit false claims to health care benefit programs, including Medicare and TRICARE, based on a circular scheme of kickbacks and bribes. Feeley controlled several marketing companies though which he and his conspirators identified Medicare and TRICARE beneficiaries to target for expensive drugs. The marketing companies spoke to beneficiaries by telephone to pressure them to agree to try expensive medications, regardless of medical necessity. Company employees would deliberately conceal the name of the prescribing doctor – whom the beneficiary had never met before – to increase the likelihood that the beneficiary would agree to accept the medications. Portions of the telephone calls were recorded.
Feeley and his companies then paid kickbacks to telemedicine companies, which in turn paid kickbacks to doctors, to obtain prescriptions for the medications. Feeley transmitted to the telemedicine companies the beneficiaries’ medical information, the telephone call recording, and pre-marked prescription pads for particular drugs that would yield exorbitant reimbursements. Feeley, the marketing companies, and the pharmacies with which they had relationships chose particular drugs for the prescriptions largely based on reimbursement amount and not medical need. The doctors paid by the telemedicine companies signed the prescriptions regardless of medical necessity, often without ever speaking to the patient.
Feeley and his conspirators then directed the prescriptions to pharmacies with which Feeley and his business partner, Mark Belter, had additional kickback arrangements. The pharmacies submitted claims for reimbursement to health care benefit programs including Medicare and TRICARE, and thereafter sent a portion of the proceeds to Feeley and his companies as payment for the prescriptions generated through the conspiracy. In total, Feeley and his conspirators caused the submission of false and fraudulent claims to health care benefit programs totaling more than $24 million of prescription drugs. Belter previously pleaded guilty to an information charging conspiracy to violate the federal anti-kickback statute and conspiracy to commit health care fraud.
Feeley and his companies received kickbacks and bribes totaling more than $6 million in exchange for prescription referrals to Apogee Bio Pharm LLC, a pharmacy located in Edison, New Jersey. The principals of Apogee – William Welwart, Ethan Welwart, and Gary Kaczka – are charged with health care fraud and related offenses in a separate indictment. The charges and allegations contained in the indictment are merely accusations, and William Welwart, Ethan Welwart and Gary Kaczka are presumed innocent unless and until proven guilty.
Elan Yaish, former president of Apogee, previously pleaded guilty to an information charging conspiracy to violate the federal anti-kickback statute.
The conspiracy charges are each punishable by a maximum of five years in prison, along with fines, restitution, and penalties as to both counts. Both charges are punishable by a fine of $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 9, 2024.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Acting Special Agent in Charge Brian J. Solecki, with the investigation.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit in Newark.
feeley.information.pdfOwner and Employee of Medical Supply Distributor Charged with Medical Device and Over-The- Counter Drug Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Fernando McMillan, Special Agent in Charge of the New York Field Office of the U.S. Food and Drug Administration’s Office of Criminal Investigations (“FDA-OCI”), and Daniel B. Brubaker, the Inspector in Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today the unsealing of an Indictment charging MOSES RABINOWITZ, a/k/a “Mark Rabin,” and MENACHIM SAMBER with conspiracy to commit wire fraud and conspiracy to obtain pre-retail medical products by fraud or deception in connection with a scheme to obtain medical devices and over-the-counter (“OTC”) drugs not approved for sale in the U.S. at discounted prices under the false pretense that they would be sold outside the U.S. RABINOWITZ and SAMBER were arrested today and will be presented before U.S. Magistrate Judge Victoria Reznick.
U.S. Attorney Damian Williams said: “As alleged, the defendants defrauded manufacturers producing medical devices and over-the-counter drugs of millions of dollars and sold foreign medical products not approved for sale in the U.S. to unwitting consumers. These charges should serve as a warning to fraudsters who think they can benefit financially by undermining the safety of our country’s medical supply chain.”
FDA-OCI Special Agent in Charge Fernando McMillan: “The FDA is fully committed to the vigorous criminal investigation and prosecution of individuals who threaten the health and safety of American consumers by causing misbranded drugs and medical devices to be distributed. Our office will continue to pursue and bring to justice those who place profits above the public health.”
USPIS Inspector in Charge Daniel B. Brubaker: “One of the USPIS's top priorities is to protect consumers from individuals who seek to profit from selling FDA-regulated products not intended for sale in the U.S. Postal Inspectors relentlessly pursue criminals who further their criminal enterprises through the U.S. Mail. In this case, Postal Inspectors collaborated with agents from FDA-OCI to help safeguard both the U.S. health care industry and American public. I applaud their efforts on this investigation.”
According to the allegations contained in the Indictment:[1]
RABINOWITZ was the owner and president of medical supply distributor Trasco, LLC (“Trasco”) and the owner of Trasco affiliates GlobalMed International, Ltd. (“GlobalMed”) and Panamedica Trading, Inc. (“Panamedica”). SAMBER was an employee of Trasco whose functions included purchasing and sales.
From at least in or about January 2014 up to and including on or about January 3, 2019, RABINOWITZ and SAMBER engaged in a conspiracy to obtain FDA-regulated medical devices and OTC drugs that were not intended for sale in the U.S. at deeply discounted prices from manufacturers (the Victim Companies”) by falsely and fraudulently representing that the products would be sold and distributed outside of the U.S. when, in fact, RABINOWITZ and SAMBER, from the outset, intended to and did sell and distribute those medical devices and OTC drugs at a substantial profit to wholesalers, distributors, and others in the U.S.
The manufacturers relied on RABINOWITZ, SAMBER, and other co-conspirators’ false and fraudulent representations and sold their products to RABINOWITZ, SAMBER, Trasco, GobalMed, and Panamedica at deeply discounted prices, resulting in losses of more than $5 million.
RABINOWITZ, SAMBER, and other co-conspirators created and caused to be created false and fraudulent documentation, which they provided and caused to be provided to the Victim Companies to conceal their fraudulent scheme. At times, RABINOWITZ, SAMBER, and other co-conspirators arranged for the fraudulently obtained products to be diverted directly to locations within the U.S. and for “dummy” shipments to be exported instead in order to generate documentation to provide to the Victim Companies as proof of export.
RABINOWITZ, SAMBER, and other Trasco employees acting at their direction often removed the foreign language packaging or labeling on the medical devices and OTC drugs so that the provenance of the foreign medical products would also be hidden from the domestic consumers and distributors to whom they were sold.
* * *
RABINOWITZ, 42, of Clifton, New Jersey, and SAMBER, 29, of Hollywood, Florida, were both charged with one count of wire fraud conspiracy, which carries a maximum sentence of 20 years in prison, and one count of conspiracy to obtain pre-retail medical products by fraud or deception, which carries a maximum sentence of 15 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FDA-OCI and the USPIS.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Jeffrey C. Coffman is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described herein should be treated as an allegation.
Oswego Vehicle Dealership Owner Pleads Guilty to Conspiracy to Violate Clean Air ActRead the Press Release
SYRACUSE, NEW YORK – Matthew R. Talamo, 38, of New Haven, New York, pled guilty today in federal court in Syracuse to conspiracy to violate the Clean Air Act related to his operation of Southern Diesel Truck Co. and Southern Diesel and Off-Road LLC (collectively “Southern Diesel”), in Oswego, New York. United States Attorney Carla B. Freedman and Tyler Amon, Special Agent in Charge of the EPA’s Criminal Investigation Division (EPA-CID) in New York, made the announcement.
Talamo is the owner and operator of Southern Diesel, which specializes in buying and reselling diesel vehicles and performing after-market modifications to diesel vehicles, particularly pickup trucks. In pleading guilty, Talamo admitted that he conspired and agreed with others to violate the Clean Air Act at Southern Diesel by tampering with emission control monitoring devices and methods on diesel pickup trucks, including both software and hardware modifications. The illegal software modifications involved “tuning” or “deleting” the trucks by tampering with the “on board diagnostic” (OBD) systems and disabling emission controls, which allowed the trucks to emit substantially more pollutants into the atmosphere. Talamo and his employees also made hardware modifications to diesel vehicles, including by removing tailpipes, mufflers, and other exhaust components and replacing them with so-called straight pipes that lacked diesel particulate filters and other systems designed to reduce harmful emissions. Between January 2018 and November 2022, Southern Diesel tampered with the emission control monitoring devices and systems of approximately 244 diesel vehicles, often charging thousands of dollars per vehicle for the modifications. Despite the harm to the environment, diesel vehicle owners sometimes seek such illegal modifications to avoid the costs of maintaining and repairing emission control components and to increase speed and fuel efficiency.
The charge to which Talamo pled guilty carries a maximum sentence of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. 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. The defendant will be sentenced on April 19, 2024, by Chief United States District Judge Brenda K. Sannes in Syracuse.
EPA-CID is investigating the case with assistance from the New York State Department of Environmental Conservation, and Assistant U.S. Attorney Michael F. Perry is prosecuting the case.
Oswego County Man Pleads Guilty to Receiving, Transporting and Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Joshua Demars, 38, of Fulton, New York, pled guilty today to multiple charges of receipt, transportation, and possession of child pornography. United States Attorney Carla B. Freedman, Matthew Scarpino, Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office, and New York State Police (NYSP) Acting Superintendent Dominick L. Chiumento made the announcement.
As part of his guilty plea, Demars admitted that he communicated with minors on the application Snapchat to receive images and videos of child pornography. Demars also admitted that he used his Dropbox account to upload a video of a 5-7 year old female being sexually abused by an adult male. Moreover, Demars acknowledged that he possessed hundreds of videos and images of child pornography on several of his personal devices.
Sentencing is scheduled for April 19, 2023, before Chief United States District Judge Brenda K. Sannes. Demars faces a mandatory minimum sentence of five years in prison, a maximum sentence of 20 years in prison, a fine of up to $250,000, and a term of supervised release of between five years and life, to begin after imprisonment. Demars will also be required to register as a sex offender upon his release from prison. 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.
HSI, the NYSP Internet Crimes Against Children Task Force, and the NYSP Troop D Computer Crimes Unit investigated the case and Special Assistant U.S. Attorney Paul Tuck and Assistant U.S. Attorney Jessica Carbone prosecuted Demars 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.
Okeene Man Sentenced to Serve More Than Six Years in Federal Prison for Possession of Child PornographyRead the Press Release
OKLAHOMA CITY – Today, RANDAL WADE LAUBACH, 55, of Okeene, was sentenced to serve 78 months in federal prison for possession of child pornography, announced U.S. Attorney Robert J. Troester.
On April 18, 2023, a federal grand jury returned a two-count Indictment against Laubach. Count one charged him with transportation of child pornography, and Count 2 charged him with possession of prepubescent child pornography.
The Indictment alleges that on June 9, 2022, Laubach knowingly possessed child pornography. Public record reflects that Laubach possessed more than 50 terabytes of child pornography, stored using various digital mediums including his cell phone.
On July 26, 2023, Laubach pleaded guilty to Count 2 of the Indictment. As part of his plea, Laubach admitted he had possessed child pornography for the last 20 years.
At the sentencing hearing today, U.S. District Court Judge Timothy D. DeGiusti sentenced Laubach to serve 78 months in federal prison, followed by eight years of supervised release. He has been in federal custody since July 26, 2023.
This case is the result of an investigation by Homeland Security Investigations, the Blaine County Sheriff’s Office, and the Oklahoma Attorney General’s Office. Assistant U.S. Attorney Tiffany Edgmon prosecuted the case.
This case is part of Project Safe Childhood (PSC), a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the DOJ Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.justice.gov/psc.
Reference is made to public filings for additional information.
Nurse Practitioner Sentenced for $192M Medicare Fraud SchemeRead the Press Release
A Florida woman was sentenced today to 20 years in prison for her role in a scheme to defraud Medicare by submitting over $192 million in claims for genetic tests and durable medical equipment that patients did not need and telemedicine visits that never occurred.
According to court documents and evidence presented at trial, Elizabeth Hernandez, 45, of Miami, signed thousands of orders for medically unnecessary orthotic braces and genetic testing for Medicare beneficiaries she never spoke to, examined, or treated. As part of the scheme, telemarketing companies would contact Medicare beneficiaries to convince them to accept orthotic braces and genetic tests and would then send pre-filled orders for these products to Hernandez, who signed them, attesting that she had examined or treated the patients. However, she had never spoken with many of the patients, and she often had others, including non-licensed individuals, sign her name to fraudulent orders. Hernandez also falsified information in the orders about beneficiaries’ symptoms and injuries.
During the period of the conspiracy, Hernandez ordered more cancer genetic tests for Medicare beneficiaries than any other provider in the nation. In 2020, when Medicare expanded its telemedicine coverage in response to the COVID-19 pandemic, Hernandez also billed Medicare for thousands of telemedicine visits she never performed, routinely billing over 24 hours of telemedicine in a single day. Hernandez personally pocketed approximately $1.6 million in the scheme, which she used to purchase expensive cars, jewelry, home renovations, and travel.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG), and Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division made the announcement.
HHS-OIG and the FBI Miami Field Office investigated the case.
Assistant Chief Kate Payerle and Trial Attorney Andrea Savdie of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Norfolk Man Convicted of Armed Robbery of Federal Firearms LicenseeRead the Press Release
NORFOLK, Va. – A federal jury convicted a Norfolk man today on charges of conspiracy to commit robbery, robbery, using a firearm in relation to a crime of violence, and being a felon in possession of a firearm.
According to court records and evidence presented at trial, Jamique Mays, 30, conspired with a former girlfriend, Jaclyn Inge, 44, and a friend, Desmond Littlejohn, 37, to rob Inge’s employer, a federal firearms licensee. On October 9, 2017, the three co-conspirators drove to Inge’s employer’s business in Virginia Beach. They waited until Inge’s employer and another co-worker arrived. Mays and Littlejohn approached the two victims and brandished firearms. They demanded a black bag they knew would contain a large sum of money the business earned during a weekend gun show held in Philadelphia. Once they obtained the bag, they ran back to the vehicle where Inge was waiting. As they fled the scene, Mays threw items out of the car window, including a black ski mask. Littlejohn’s DNA was found on the mask. Mays later confessed to committing a robbery to a friend while on Facebook Messenger.
Mays faces a mandatory minimum sentence of seven years and a maximum sentence of life in prison when sentenced on April 19, 2024. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Littlejohn was previously convicted of the same charges in February 2019 and was sentenced to 189 months in prison. Inge pled guilty to illegally purchasing and possessing the firearm used by Mays in the robbery and was sentenced to 78 months in October 2020.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason S. Miyares, Attorney General of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after Senior U.S. District Judge John A. Gibney, Jr. accepted the verdict.
Assistant U.S. Attorney Kristin Bird and Special Assistant U.S. Attorney Alyssa Miller are prosecuting the case. Miller also serves as a Virginia Assistant Attorney General.
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.
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. 2:22-cr-123.
Nicaraguan Woman Sentenced for Illegally Using Social Security NumberRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that JUNIETH BETANCO-HERNANDEZ, age 19, was sentenced on December 19, 2023 to probation for a term of one year for illegally using a social security number, in violation of Title 42, United States Code, Section 408(a)(7)(B).
According to court documents, BETANCO-HERNANDEZ was first arrested, by the U.S. Border Patrol (USBP) near Hidalgo, TX, on or about September 30, 2022. BETANCO-HERNANDEZ was later determined to be unlawfully present and inadmissible into the United States. She was released from custody by USBP and instructed to report to Immigration and Customs Enforcement in New Orleans. In conjunction with her release, BETANCO-HERNANDEZ was enrolled in the “Alternative to Detention” program, run by BI Incorporated (BI) and provided a GPS device to monitor her location in the United States.
On or about March 28, 2023, BETANCO-HERNANDEZ reported to BI's office and presented her immigration documents consisting of a Louisiana state ID featuring her name and photograph, and a Social Security Card. Through investigation, Homeland Security Investigations agents determined that BETANCO-HERNANDEZ was not the individual to whom that social security number had been issued. To the contrary, agents confirmed that the Commissioner of the Social Security Administration had instead, issued that social security number to another individual.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. of the General Crimes Unit, is in charge of the prosecution.
New Jersey Man to Pay $656,000 for Illegally Operating Ballston Spa Nursing HomeRead the Press Release
ALBANY, NEW YORK – The Justice Department, together with the New York State Office of the Attorney General, announced today that Chaim “Mutty” Scheinbaum has agreed to pay $656,000 to resolve allegations that he violated the False Claims Act by causing the submission of false claims to the Medicaid program for worthless services provided to residents at Saratoga Center for Rehabilitation and Skilled Nursing Care (Saratoga Center). Saratoga Center closed in February 2021, after this investigation was initiated. The United States and the State of New York previously settled with other individuals who agreed to pay a total sum of $7,168,000 to resolve similar allegations arising from misconduct at Saratoga Center.
“Nursing homes should protect the health and well-being of every resident,” said U.S. Attorney Carla Freedman for the Northern District of New York. “That did not happen at Saratoga Center. An individual with no lawful authority controlled the finances and failed to pay vendors. This unlawful arrangement resulted in false claims to Medicaid for worthless services. We will continue to hold responsible people accountable when they receive federal funds while providing substandard care. Thank you to Attorney General James and her office for collaborating on this case.”
“Ensuring nursing homes are safe and deliver quality care is a top priority for HHS-OIG,” said Naomi Gruchacz, Special Agent in Charge, of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Regional Office. “As alleged this individual had no legal authority to operate Saratoga Center and mismanaged their control, resulting in residents suffering the consequences of unacceptable living conditions. Together with our law enforcement partners we will continue to relentlessly pursue owners and operators of nursing homes that egregiously disregard resident safety and quality-of-care.”
“Every resident of New York’s nursing homes deserves high-quality care and proper staffing to meet their needs. Rather than ensure vulnerable residents got the care they deserved, this individual mismanaged Saratoga Center’s finances and failed to adequately staff the facility, causing residents to suffer the consequences of neglect and unsanitary conditions. I want to thank United States Attorney Carla Freedman and our partners in law enforcement for their assistance in bringing this unacceptable situation to light and to justice. My office will continue to ensure nursing home residents are protected, and I encourage anyone who has witnessed alarming conditions, resident neglect, or abuse at a nursing home to contact my office.”
Scheinbaum acknowledged in the settlement agreement that, despite never obtaining a license that would have allowed him to legally operate Saratoga Center, beginning around April 2018, he controlled Saratoga Center’s finances, determined which vendor bills would be paid, maintained the financial books and records, and had the authority to hire and fire high level employees. Under New York State law, these responsibilities were vested exclusively in the licensed operators, who had previously relinquished control of Saratoga Center. While Scheinbaum was operating Saratoga Center, certain vendor bills went unpaid and some vendors refused to deliver goods and/or services, including making necessary repairs. Further, Saratoga Center failed to ensure that:
- residents had access at all times to hot water;
- the fire alarm system was properly maintained;
- the kitchen was clean and staff were able to serve hot food;
- there was a supply of linens to bathe and care for residents;
- garbage was collected;
- there was effective pest control; and
- water leaks were timely repaired.
This settlement resolves allegations that Scheinbaum submitted or caused the submission of false claims by (1) illegally operating Saratoga Center and (2) overseeing the provision of worthless services provided to residents of Saratoga Center.
The resolution obtained in this matter was the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, the Justice Department’s Civil Division Commercial Litigation Branch, Fraud Section, the New York State Office of the Attorney General’s Medicaid Fraud Control Unit, and the United States Department of Health and Human Services, Office of Inspector General.
Assistant U.S. Attorney Christopher R. Moran and Civil Division Attorneys Carol Wallack and Lyle Gruby handled this matter for the United States.
The United States’ investigation was part of its Elder Justice Initiative, which supports the efforts of state and local prosecutors, law enforcement, and other elder justice professionals to combat elder abuse, neglect, and financial exploitation, with the development of training, resources and information. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice.
New Hampshire Man Pleads Guilty to Conspiracy to Harass and Intimidate Two JournalistsRead the Press Release
BOSTON – A New Hampshire man has pleaded guilty to his role in a conspiracy to harass and intimidate two journalists employed by New Hampshire Public Radio (NHPR). The harassment and intimidation of the victims included the vandalism – on five separate occasions – of the victims’ homes and the home of one of the victims’ parents with bricks, large rocks and red spray paint.
Tucker Cockerline, 32, of Salem, N.H., pleaded guilty in federal court in Boston to conspiracy to commit stalking through interstate travel and the use of a facility of interstate commerce. U.S. District Court Judge Indira Talwani scheduled sentencing for March 19, 2024. Cockerline was initially arrested and charged by criminal complaint in June 2023 along with alleged co-conspirators Michael Waselchuck and Keenan Saniatan. The defendants were subsequently indicted by a federal grand jury along with Eric Labarge in September 2023.
According to the charging documents, after a year-long investigation, an NHPR journalist (Victim 1) published an article in March 2022 detailing allegations of sexual and other misconduct by a former New Hampshire businessperson, identified in the charging document as Subject 1. Another NHPR journalist (Victim 2) also contributed to the article, which appeared on NHPR’s website during and after March 2022. In response to this reporting, Labarge – who is alleged to be a close personal associate of Subject 1 – Saniatan, Cockerline and Waselchuck allegedly agreed to harass and intimidate Victims 1 and 2 and their immediate family members. Among other things, the indictment alleges that:
- On or about April 22, 2022, Labarge solicited Cockerline to vandalize Victim 1’s former residence in Hanover, N.H., using a brick and red spray paint. Thereafter, on the evening of April 24, 2022, Cockerline spraypainted the word “C*NT” in large red letters on the front door and allegedly threw a brick through an exterior window of the home;
- On or about April 22, 2022, Saniatan allegedly agreed to vandalize Victim 2’s home in Concord, N.H., and Victim 1’s parents’ home in Hampstead, N.H., using large rocks and red spray paint. Thereafter, on the evening of April 24, 2022, Saniatan allegedly spraypainted the word “C*NT” in large red letters on the front door and threw a large rock at the exterior of Victim 2’s home; and he allegedly threw a softball-sized rock through a front exterior window and spraypainted the word “C*NT” in large red letters on one of the garage doors of Victim 1’s parents’ home;
- On or about May 18, 2022, Labarge allegedly solicited Cockerline to vandalize Victim 1’s parents’ home in Hampstead, N.H., and Victim 1’s home in Melrose, Mass., using bricks and red spray paint. Cockerline, in turn, allegedly recruited Waselchuck to vandalize Victim 1’s residence; and
- On the evening of May 20, 2022, Cockerline spraypainted the word “C*NT” in large red letters on one of the garage doors of Victim 1’s parents’ home, and left a brick on the ground near the front door. Several hours later, Waselchuck allegedly threw a brick through an exterior window of Victim 1’s home and painted the phrase “JUST THE BEGINNING” in large red letters on the front of the house.
Each charge in the indictment carries a maximum sentence of up to five years in prison, three years of supervised release, a $250,000 fine and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Valuable assistance was provided by the Concord, Hampstead and Hanover, New Hampshire Police Departments, the Melrose, Massachusetts Police Department and the United States Attorney’s Office for the District of New Hampshire. Assistant U.S. Attorneys Jason A. Casey and Torey B. Cummings of the Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New Hampshire Man Indicted for Threatening to Kill Three Presidential CandidatesRead the Press Release
A New Hampshire man has been indicted in connection with sending threatening text messages to three presidential candidates.
Tyler Anderson, 30, of Dover, was charged with three counts of transmitting in interstate commerce a threat to injure the person of another. Anderson was arrested on Dec. 9, and he made an initial appearance in federal court on Dec. 11. On Dec. 14, the court released him on conditions.
“We have seen an increase in threats of violence against public officials and those seeking public office across the country, and I have made clear that these types of illegal threats undermine the function of our democracy,” said Attorney General Merrick B. Garland. “We will not tolerate illegal threats of violence directed at public officials or those seeking public office.”
According to the charging documents, Anderson sent a series of threatening text messages to three separate presidential campaigns going back to November. On Nov. 22, Anderson threatened to “impale” and “disembowel” one candidate. On Dec. 6, Anderson threatened a second candidate in a series of text messages, including that he would “blow” the "head off" of the candidate and conduct a “mass shooting.” On Dec. 8, Anderson threatened via text message that he would “blow” the “brains out” of a third candidate and “kill everyone” who would attend a then-upcoming campaign event.
Anderson faces a maximum of five years in prison, up to three years of supervised release, and a fine of up to $250,000 for each charge. A federal district court judge will determine a sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI led the investigation. Valuable assistance was provided by the Dover Police Department and the Portsmouth Police Departments.
Assistant U.S. Attorney Charles Rombeau for the District of New Hampshire is prosecuting the case.
An indictment is merely an allegation. All defendants are innocent until proven guilty beyond a reasonable doubt in a court of law.
Man Sentenced to Seven Years in Federal Prison for Trafficking Heroin and Cocaine in Chicago AreaRead the Press Release
CHICAGO — A man has been sentenced to seven years in federal prison for trafficking heroin and cocaine in the Chicago area.
From 2015 to 2022, ALFONSO HIDALGO-GOMEZ obtained heroin and cocaine from Mexico and distributed the narcotics in the Chicago area. During his trafficking activities in the Chicago area, Hidalgo-Gomez was accountable for distributing at least 13.4 kilograms of narcotics. At least two other individuals worked for Hidalgo-Gomez, distributing drugs at his direction.
Hidalgo-Gomez, 37, of Chicago, pleaded guilty earlier this year to a drug conspiracy charge. U.S. District Judge Jorge L. Alonso imposed the sentence on Dec. 13, 2023, after a hearing in federal court in Chicago.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the DEA, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the FBI Chicago Field Office, and Ruth M. Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.
The case was part of an Organized Crime Drug Enforcement Task Force operation. OCDETF identifies, disrupts, and dismantles drug trafficking organizations and other criminal networks that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local enforcement agencies.
“The streets of Chicago are made immeasurably more dangerous because of the drug trade,” Assistant U.S. Attorney Misty N. Wright argued in the government’s sentencing memorandum. “People like defendant perpetuate the drug trafficking crisis in Chicago and all that goes with it, including addiction, crime, and violence. This type of activity endangers our communities.”
Man Sentenced to 40 Months in Prison for Contempt of Court After Sending Racial Slurs and ThreatsRead the Press Release
MIAMI – On Dec. 19, a federal judge in Miami sentenced Matthew James Choy to 40 months in prison for contempt of court after he sent racial slurs and violent threats using the courts’ Case Management/ Electronic Case Files (CME/ECF) system.
This sentence follows Choy’s guilty plea to a charge of criminal contempt, in violation of Title 18, United States Code, Section 401(1). Choy had previously been convicted of sending graphic, profane, and excessive threats over the internet to identifiable victims, and was serving a term of imprisonment for that crime when he committed the instant offense.
According to the court record, from in or around April 15, 2022 and continuing through on or about November 20, 2022, Choy knowingly transmitted a number of handwritten pro se letters and motions, intending that they be filed on the CME/ECF system, and the handwritten pro se letters and motions contained racial slurs, profanity, and statements such as “I give up, as long as I get to see the blood spray out of [victim 1’s] neck when I get out, I’ll consider it even,” and “F--- all of you!” in court numbers 21-10848 (11th Cir. 2022), and 20-20165-CR-CMA (S.D. Fla).
The receipt of the filings obstructed the administration of justice by disrupting the business of and making work for the Clerk’s Office and the Court, in that court staff was forced to receive, review, and act on the filings. Choy knowingly filed the documents and letters for the purpose of disrupting the proceedings.
Chief U.S. District Judge Cecilia M. Altonaga also sentenced Choy to serve three years of supervised release following his prison term, and imposed several special conditions, including an association restriction, restricting Choy from associating with victims, and Court staff and personnel, among others.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, announced the sentencing.
The FBI Miami Field Office investigated the case. Assistant U.S. Attorneys Lindsey Lazopoulos Friedman and Brooke Watson prosecuted the case. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 20-cr-21065.
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Man Sentenced in Firearms Conspiracy CaseRead the Press Release
Acting United States Attorney Susan Lehr announced that Kenneth D. Blair, 21, of Omaha, Nebraska, was sentenced December 21, 2023, in federal court in Omaha for his participation in a firearms conspiracy in the furtherance of drug trafficking. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Blair to 21 months’ imprisonment. There is no parole in the federal system. After Blair’s release from prison, he will begin a 3-year term of supervised release.
Rodolfo Falcon owned a house that was the central location for the distribution of marijuana, marijuana derivatives, and cocaine. Falcon rented that house out to several younger drug dealers including Kenneth Blair, Alexis Bernal-Lopez, and Keland Strong. Federal Bureau of Investigation Safe Streets Task Force performed a search of the residence and recovered cocaine, marijuana, currency, drug paraphernalia, and several firearms. Falcon, who has a distinctive tattoo on his hand, was seen in photos posing with firearms. One of the firearms shown in the picture was recovered from the residence. Agents also located a stolen firearm and AR15 rifle.
At the time of the search, Kenneth Blair was in the basement of the residence along with two apparent narcotics customers. Drugs and cash were also recovered from that location. Keland Strong used an upstairs room that contained numerous firearms. Falcon lived on the main level of the home where agents recovered cash, cocaine. and personal identification documents. Evidence of significant marijuana distribution such as wrappers for large quantities of marijuana were also recovered. This, along with the text messages between the group members revealed that the home was being used as a main distribution hub and that Bethow, Bernal-Lopez, Strong, and Blair all worked together to sell drugs, particularly marijuana to ‘serves’ (their code word for narcotics purchasers) and would drive each other to sales and work together to get the right types of THC cartridges and marijuana to customers.
On September 28, 2023, Majok Bethow: plead guilty to firearms conspiracy in the furtherance of drug trafficking; sentencing is January 11, 2024.
On October 27, 2023, Rodolfo Falcon plead guilty to firearms conspiracy and possession of a firearm in the furtherance of drug trafficking; sentencing is January 19, 2024.
On November 17, 2023, Keland Strong plead guilty to firearms conspiracy and possession of a firearm in the furtherance of drug trafficking; sentencing is February 8, 2024.
On November 20, 2023, Alexis Bernal Lopez plead guilty firearms conspiracy and possession of a firearm in the furtherance of drug trafficking; sentencing is February 16, 2024.
This case was investigated by the Federal Bureau of Investigation.
Man Sentenced for Illegally Distributing over $16M of Adulterated HIV MedicationRead the Press Release
A Florida man was sentenced today to four years and three months in prison for his role in a nationwide scheme to illegally distribute at least $16.7 million of adulterated HIV drugs that were ultimately dispensed to unsuspecting patients throughout the country.
According to court documents, Armando Herrera, 43, of Miami, and his co-conspirators established companies in Florida, Texas, Washington, and California, which they used to sell and distribute adulterated prescription drugs, primarily HIV medications, to wholesale pharmaceutical suppliers. Herrera and his co-conspirators created false documentation to make it appear as though the drugs were acquired legitimately when, in fact, they were not. The pharmaceutical suppliers then sold the drugs to pharmacies, which dispensed the adulterated prescription drugs to unwitting patients. As part of the investigation, federal agents seized more than $1.5 million worth of adulterated prescription drugs from Herrera, including more than 16,000 tablets of adulterated and misbranded HIV medication.
Herrera pleaded guilty on Sept. 25 to one count of conspiracy to introduce adulterated and misbranded drugs into interstate commerce.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Acting Special Agent in Charge Stephen Mahmood of the Department of Health and Human Services Office of the Inspector General (HHS-OIG), Miami Regional Office; Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Atlanta Region; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; and Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office made the announcement.
HHS-OIG, FDIC-OIG, and the FBI investigated the case.
Trial Attorney Alexander Thor Pogozelski of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Marx P. Calderón for the Southern District of Florida handled asset forfeiture.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Man Indicted on Charges Connected to Five St. Louis Area RobberiesRead the Press Release
ST. LOUIS – A man from St. Louis County was indicted in U.S. District Court in St. Louis Wednesday on charges connected to five armed robberies in the St. Louis area since September.
Ronald O. Perkins, 28, of Black Jack, Missouri, was indicted on four counts of robbery, one count of discharging a firearm in furtherance of a crime of violence, three counts of brandishing a firearm in furtherance of a crime of violence and one count of transporting a firearm in interstate commerce with intent to commit a felony. The indictment accuses Perkins of robbing a Mobil Gas Mart in St. Louis on September 8, Wheeler’s Service Station and a 7-Eleven in St. Louis County on November 8 and a BP Gas Mart in St. Louis County on November 12. He is also accused of transporting a firearm across state lines on November 17 with the intent to commit an armed robbery.
The Gas Mart robber was captured on surveillance video, according to an affidavit filed in support of a November 21 criminal complaint against Perkins.
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.
Each robbery charge carries a penalty of up to 20 years in prison, a fine of up to $250,000 or both prison and a fine. The discharge of a firearm charge carries a penalty of at least 10 years consecutive to the other charges, a $250,000 fine, or both prison and a fine. The brandishing charge carries a penalty of at least seven years consecutive to any other charge and the same fine. The transporting charge carries a penalty of up to 10 years in prison and the same fine.
The St. Louis County Police Department, the St. Louis Metropolitan Police Department, the Collinsville Police Department, the Richmond Heights Police Department, the Columbia (Illinois) Police Department and the FBI investigated the case. Assistant U.S. Attorney Zachary Bluestone 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.
Man Indicted for Possession of a Postal Service Mail Key and Stolen MailRead the Press Release
NEW ORLEANS, LOUISIANA - U.S. Attorney Duane A. Evans announced today that HAVON MONTGOMERY, age 19, of New Orleans, was charged on December 14, 2023 in Count 1 of a two-count indictment with for Unlawful Possession and Use of a United States Postal Service (USPS) mail “arrow” key, in violation of Title 18, United States Code, Section 1704. Such keys are used by Postal Service employees to access authorized mail receptacles. Additionally, MONTGOMERY was charged in Count 2 with Possession of Stolen Mail that had been deposited into authorized mail receptacles, in violation of Title 18, United States Code, Section 1708.
According to the indictment, on August 22, 2023, the defendant was found in possession of approximately 132 pieces of stolen mail as well as the USPS mail key. If convicted, MONTGOMERY faces up to ten (10) years imprisonment on the unlawful possession of the United States Postal Service mail key count, and up to five (5) years imprisonment on the possession of the stolen mail items count. Each count carries up to three (3) years of supervised release following any prison term, up to a $250,000 fine, and a mandatory $100 special assessment fee. United States Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service, the Jefferson Parish Sheriff’s Office and the New Orleans Police Department in investigating this matter. Assistant U.S. Attorney Jon Maestri of the General Crimes Unit is charge of the prosecution.
Lockport man connected to global sex trafficking network charged with receipt of child pornographyRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Richard Greer, 57, of Lockport, NY, was arrested and charged by criminal complaint with receipt of child pornography. The charge carries a mandatory minimum penalty of five years in prison, and a maximum of 20 years.
Assistant U.S. Attorney Jonathan P. Cantil, who is handling the case stated that according to the complaint, Homeland Security Investigations has been investigating individuals who provide access to live-streaming online webcam shows involving the sexual abuse and exploitation of children to paying customers worldwide, including a specific individual (Trafficker) operating a child-sex-trafficking network from the Philippines. During the investigation, they identified significant communication between Trafficker and defendant Greer, with the two exchanging approximately 31,000 messages, 3099 calls, and 213 media files. During these communications, Greer received many images and videos of child pornography from Trafficker.
Greer made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and was detained.
The complaint is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Livingston County Commercial Fisherman Sentenced to Five Years of Federal Probation for Lacey Act ViolationRead the Press Release
Paducah, KY – A Livingston County, Kentucky man was sentenced to five years of probation for a Lacey Act violation involving the illegal harvesting and sale of shovelnose sturgeon roe.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Stephen Clark of the Southeast Region of the U.S. Fish and Wildlife Service, Office of Law Enforcement, and Colonel Jeremy McQueary, Director of Law Enforcement for the Kentucky Department of Fish and Wildlife Resources made the announcement.
Among other things, the Lacey Act makes it unlawful for any person to transport and sell fish that were taken in violation of any law or regulation of any state. Kentucky regulates fishing for sturgeon and its eggs, which are marketed as caviar. A violation of the Lacey Act constitutes a felony if the fish had a market value in excess of $350.
According to court documents, Charles Hopkins, 52, was sentenced to five years of probation for conspiring with others to sell shovelnose sturgeon that had been harvested in violation of Kentucky law. Hopkins was also ordered to pay a $20,000 fine to the Lacey Act Reward Account and $348,613 in restitution to the Kentucky Department of Fish and Wildlife Resources.
“I commend the work and collaboration of the U.S. Fish and Wildlife Service and the Kentucky Department of Fish and Wildlife Resources for their outstanding effort in investigating this case,” stated U.S. Attorney Bennett. “Those who seek to ignore laws designed to protect our natural resources should take note that our federal and state law enforcement partners will thoroughly investigate, and this office will aggressively prosecute, violations of federal law.”
This case was investigated by the U.S. Fish and Wildlife Service and the Kentucky Department of Fish and Wildlife Resources.
Assistant U.S. Attorney Madison Sewell, of the U.S. Attorney’s Bowling Green Branch Office, prosecuted the case.
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Leavenworth Man Indicted for Child Sexual Exploitation, Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Leavenworth, Kansas, man has been indicted by a federal grand jury on charges related to child sexual exploitation and child pornography.
Antoine Askari Richardson, 25, was charged in a four-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Dec. 19. That indictment was unsealed and made public today following Richardson’s arrest and initial court appearance.
The federal indictment alleges that Richardson enticed a minor victim in Missouri to engage in criminal sexual activity from Oct. 24, 2022, to March 1, 2023. The indictment also charges Richardson with one count of using the child victim to produce child pornography, one count of receiving child pornography, and one count of distributing child pornography.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the Grain Valley, Mo., Police Department and the Missouri State Highway Patrol.
Project Safe Childhood
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."
Las Vegas Resident Sentenced on Fraudulent Credit Card SchemeRead the Press Release
PITTSBURGH, PA - A resident of Las Vegas, Nevada, has been sentenced in federal court to 12 months’ probation with 6 months’ home confinement on his conviction of conspiracy to commit access device fraud, United States Attorney Eric G. Olshan announced today.
United States District Judge Cathy Bissoon imposed the sentence on Hector Ofelio Podio Gutierrez, 31, of Las Vegas, Nevada.
According to information presented to the court, Podio Gutierrez used counterfeit credit cards encoded with stolen bank account information to purchase MasterCard gift cards at Sam’s Club stores in the Pittsburgh area, as well as in Florida and California. During the month of December 2017, Podio Gutierrez and his codefendant, Yoandy Pou Torres, using an encoding device, created counterfeit credit cards, and then used the cards to make fraudulent gift card purchases totaling more than $382,000 at various Sam’s Club locations, approximately $170,000 of which were purchases conducted at Pittsburgh area stores.
Prior to imposing sentence, Judge Bissoon stated that Podio Gutierrez, since his arrest and while on bond pending trial, had been living a productive and law abiding life, and had provided noteworthy support to his family and his community.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
United States Attorney Olshan commended the United States Postal Inspection Service and the United States Secret Service for the investigation leading to the successful prosecution of Gutierrez.
Las Cruces Man Sentenced to 1 Year in Prison for Threatening U.S. CongresswomanRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced today that Michael David Fox was sentenced to 1 year and 1 day in prison and ordered to pay a $4,000 fine. Fox, 60, of Las Cruces, pleaded guilty to interstate transmission of threatening communication on Sept. 20, 2023.
According to court documents, on May 18, 2023, Fox left a voicemail for the office of a congresswoman for the District of Texas, calling her a “tranny and a pedophile” and threatening to “put a bullet” in her face. Law enforcement was able to trace the call to Fox.
On May 26, 2023, Special Agents from the Federal Bureau of Investigation interviewed Fox at his residence in Las Cruces and he admitted to making the threat. Fox claimed to believe that transgender individuals had infiltrated the government and other institutions and that he was part of a movement aimed at “eradicating” those people.
At sentencing, the court found that Fox intentionally selected the congresswoman as a victim because he mistakenly believed she was transgender, and therefore the court applied a hate crime motivation enhancement to his sentence.
In his plea agreement, Fox acknowledged that he was not intoxicated or under the influence of drugs when he made the call and that he was not merely making a political argument, idle talk, an exaggeration, or a joke.
“While everyone is entitled to believe irrational ideas, no belief entitles someone to threaten violence,” said U.S. Attorney Uballez. “Hate crimes drive division and fear and we have no room for either. Federal law enforcement will stand up for our community by delivering very real consequences to very real threats, even when they are driven by fantasy.”
“Hate crimes are not only an attack on a victim; these violent acts threaten and intimidate an entire community.” said FBI Special Agent in Charge Raul Bujanda. “The FBI and our partners will not tolerate crimes motivated by hate, and we will vigorously pursue those that commit them.”
Upon his release from prison, Fox will be subject to 3 years of supervised probation.
The Las Cruces Resident Agency of the FBI Albuquerque Field Office investigated this case. Assistant United States Attorney Lindy Carpenter is prosecuting the case.
In response to growing incidents of hate, Attorney General Merrick Garland directed the Justice Department to develop the United Against Hate (UAH) community outreach program. Led by U.S. Attorneys, the program improves hate crime and incident reporting by teaching community members how to identify, report, and prevent acts of hate. The program also helps to build trust between community and law enforcement and strengthens local networks to combat unlawful acts of hate.
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Kentwood Residents Indicted for Fentanyl Conspiracy and DistributionRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced today that MICHAEL WHITE, age 44, and JOHN WHITE, age 44, both of Kentwood, Louisiana, were charged in a recently unsealed indictment with one (1) count of Conspiracy to Distribute and Possess with Intent to Distribute forty (40) grams or more of fentanyl, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(B), and two (2) counts of Distribution of fentanyl, in violation of Title 21, United States Code, Section 841(a)(1) and 841(b)(1)(B).
According to the indictment, MICHAEL WHITE and JOHN WHITE conspired with each other and with others, to distribute fentanyl. If found guilty of any of the three counts, they face a minimum of 5 years up to a maximum of 40 years imprisonment, up to a $5,000,000 fine, and up to four years of supervised release. All three counts also carry a mandatory $100 mandatory special assessment fee.
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 http://www.justice.gov/OCDETF.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration-Fentanyl Overdose Response Team, Homeland Security Investigations, and the Hammond Police Department. This case is being prosecuted by Assistant United States Attorney Stuart Theriot of the Narcotics Unit.
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Kentucky Man Gets 15 Years in Federal Prison for Attempting to Entice a MinorRead the Press Release
BENTON, Ill. – A district judge in southern Illinois sentenced a man from Paducah to serve 15 years in federal prison after he admitted to attempting to entice a purported 11-year-old child.
Michael M. Gott, 62, pleaded guilty to one count of attempted enticement of a minor. In addition to the 15-year prison sentence, Gott will serve five years of supervised release.
“Those who try to sexually abuse children deserve justice in proportion to the deviance of their behavior, which in this case was a significant federal prison sentence,” said U.S. Attorney Rachelle Aud Crowe. “The United States Attorney’s Office and its law enforcement partners will continue to aggressively prosecute minor enticement cases and do all we can to protect children.”
In March 2021, an undercover agent with the FBI conducted an investigation on an online dating discussion forum to detect child predators. According to court documents, Gott began conversing with the undercover agent who was posing as the mother of a purported 11-year-old child. During the conversation, Gott made plans with the mother to engage in sexual conduct with the minor child.
“This sentence reflects the serious nature of Gott’s offense and demonstrates the FBI’s commitment to identify, investigate and arrest those intent on harming the most vulnerable members of our society,” said FBI Springfield Special Agent in Charge David Nanz. “The FBI will continue our efforts to thwart attempts to entice children, because every offender that lands in custody represents another step toward a safer community and a safer world for our children.”
Gott was arrested by agents while attempting to meet the purported pair and escort them to a hotel room he had rented in Paducah, Kentucky.
FBI Springfield Field Office led the investigation, and Assistant U.S. Attorneys Casey Bloodworth and David Sanders prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
Justice Department Secures Agreement with Tampa, Florida, to Resolve Discrimination Allegations Related to Its Parental Leave PolicyRead the Press Release
The Justice Department announced today that it secured a settlement agreement with the City of Tampa, Florida, to resolve the department’s lawsuit alleging that Tampa discriminated against its male employees who sought parental leave by denying them the same level of parental leave it offered to its female employees.
The alleged discrimination resulted in a violation of Title VII of the Civil Rights Act of 1964. Title VII is a federal statute that prohibits employment discrimination based on race, color, national origin, religion and sex, including pregnancy policies, and prohibits retaliation against employees for opposing discriminatory employment practices.
“Providing paid parental leave to employees is a significant benefit that many families rely on so that they can take care of their children,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This agreement sends a clear message that in providing paid or unpaid parental leave, employers must guarantee that those benefits are provided without reliance on presumptions about which parent can be the primary caregiver. The Justice Department is steadfast in its commitment to enforce federal civil rights laws and ensure that employers provide all employees leave benefits without discrimination.”
“Employers must grant parental leave benefits regardless of sex,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “The resolution achieved in this case is a demonstration of the U.S. Attorney’s Office’s assurance to the community that employment discrimination based on a protected class, including sex, will not be tolerated.”
According to the complaint, the City of Tampa adopted a parental leave policy from February 2017 to December 2018 that in practice barred male employees from using up to 320 hours of parental leave available to female employees for the purpose of serving as “primary caregivers” of a new child. Instead, Tampa granted male employees only 80 hours of parental leave as “secondary caregivers,” even if they were actually the primary caregiver for the family’s new child. In the complaint, the Justice Department states that about 150 male employees were impacted by the parental leave policy and approved for secondary caregiver leave of up to 80 hours.
According to the complaint, at least 10 male employees formally requested primary caregiver leave and were denied the leave because of their sex, regardless of how much evidence they provided to Tampa to show that they were acting as the primary caregiver for the child, while others were discouraged from applying for primary caregiver leave by their supervisors or officials with the City’s Human Resources department. As the complaint states, men were consistently denied primary caregiver leave status, while Tampa regularly granted female caregivers the full 320 hours of primary caregiver leave.
Under the proposed consent decree, which is subject to court approval, Tampa will credit up to 240 hours of additional leave time to each of the male employees who would have taken primary caregiver parental leave if it had been available to them under the policy. Tampa will also pay the impacted employees collectively $300,000 in compensation. The consent decree also requires Tampa to adopt new policies and procedures, including a new parental leave policy that does not discriminate based on sex, and to provide its employees training on these new policies.
The United States’ complaint is based on a charge of discrimination filed with the Miami District Office of the Equal Employment Opportunity Commission (EEOC) by one of Tampa’s employees impacted by the parental leave policy, Jeffrey Burger. The EEOC investigated and found reasonable cause to believe that Tampa violated Title VII. After unsuccessful conciliation efforts, the EEOC referred it to the Justice Department as an enforcement action.
“Parental leave policies should not reflect presumptions or stereotypes about gender roles,” said Director Tamra Schweiberger of the EEOC Tampa Field Office. “When it comes to providing leave for bonding with a new child or flexibility in returning to work from that leave, mothers and fathers should be treated equally.”
Trial Attorneys Jeffrey Morrison and Christine Dinan of the Civil Rights Division’s Employment Litigation Section and Assistant U.S. Attorney Yohance A. Pettis for the Middle District of Florida handled this case.
The Justice Department’s lawsuit is part of a joint effort to enhance collaboration between the Department and the EEOC in the vigorous enforcement of Title VII. More information about the EEOC’s jurisdiction is available on its website at www.eeoc.gov. Additional information regarding caregiver discrimination is available in the EEOC technical assistance document found at EEOC Releases Information about Employment Discrimination Against Caregivers | U.S. Equal Employment Opportunity Commission.
The enforcement of Title VII and other federal employment discrimination laws is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division and its work is available on its websites at www.justice.gov/crt and www.justice.gov/crt/employment-litigation-section.
tampa_complaint_file_stamped.pdf tampa_consent_decree_file_stamped.pdfJustice Department Secures Agreement with City of Tampa to Resolve Discrimination Allegations Related to Its Parental Leave PolicyRead the Press Release
Note: View the complaint here. View the consent decree here.
Tampa, FL – The Justice Department announced today that it secured a settlement agreement with the City of Tampa, Florida, to resolve the department’s lawsuit alleging that Tampa discriminated against its male employees who sought parental leave by denying them the same level of parental leave it offered to its female employees.
The alleged discrimination resulted in a violation of Title VII of the Civil Rights Act of 1964. Title VII is a federal statute that prohibits employment discrimination based on race, color, national origin, religion and sex, including pregnancy policies, and prohibits retaliation against employees for opposing discriminatory employment practices.
“Providing paid parental leave to employees is a significant benefit that many families rely on so that they can take care of their children,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This agreement sends a clear message that in providing paid or unpaid parental leave, employers must guarantee that those benefits are provided without reliance on presumptions about which parent can be the primary caregiver. The Justice Department is steadfast in its commitment to enforce federal civil rights laws and ensure that employers provide all employees leave benefits without discrimination.”
“Employers must grant parental leave benefits regardless of sex,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “The resolution achieved in this case is a demonstration of the U.S. Attorney’s Office’s assurance to the community that employment discrimination based on a protected class, including sex, will not be tolerated.”
According to the complaint, the City of Tampa adopted a parental leave policy from February 2017 to December 2018 that in practice barred male employees from using up to 320 hours of parental leave available to female employees for the purpose of serving as “primary caregivers” of a new child. Instead, Tampa granted male employees only 80 hours of parental leave as “secondary caregivers,” even if they were actually the primary caregiver for the family’s new child. In the complaint, the Justice Department states that about 150 male employees were impacted by the parental leave policy and approved for secondary caregiver leave of up to 80 hours.
According to the complaint, at least 10 male employees formally requested primary caregiver leave and were denied the leave because of their sex, regardless of how much evidence they provided to Tampa to show that they were acting as the primary caregiver for the child, while others were discouraged from applying for primary caregiver leave by their supervisors or officials with the City’s Human Resources department. As the complaint states, men were consistently denied primary caregiver leave status, while Tampa regularly granted female caregivers the full 320 hours of primary caregiver leave.
Under the proposed consent decree, which is subject to court approval, Tampa will credit up to 240 hours of additional leave time to each of the male employees who would have taken primary caregiver parental leave if it had been available to them under the policy. Tampa will also pay the impacted employees collectively $300,000 in compensation. The consent decree also requires Tampa to adopt new policies and procedures, including a new parental leave policy that does not discriminate based on sex, and to provide its employees training on these new policies.
The United States’ complaint is based on a charge of discrimination filed with the Miami District Office of the Equal Employment Opportunity Commission (EEOC) by one of Tampa’s employees impacted by the parental leave policy, Jeffrey Burger. The EEOC investigated and found reasonable cause to believe that Tampa violated Title VII. After unsuccessful conciliation efforts, the EEOC referred it to the Justice Department as an enforcement action.
“Parental leave policies should not reflect presumptions or stereotypes about gender roles,” said Director Tamra Schweiberger of the EEOC Tampa Field Office. “When it comes to providing leave for bonding with a new child or flexibility in returning to work from that leave, mothers and fathers should be treated equally.”
Trial Attorneys Jeffrey Morrison and Christine Dinan of the Civil Rights Division’s Employment Litigation Section and Assistant U.S. Attorney Yohance A. Pettis for the Middle District of Florida handled this case.
The Justice Department’s lawsuit is part of a joint effort to enhance collaboration between the Department and the EEOC in the vigorous enforcement of Title VII. More information about the EEOC’s jurisdiction is available on its website at www.eeoc.gov. Additional information regarding caregiver discrimination is available in the EEOC technical assistance document found at EEOC Releases Information about Employment Discrimination Against Caregivers | U.S. Equal Employment Opportunity Commission.
The enforcement of Title VII and other federal employment discrimination laws is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division and its work is available on its websites at www.justice.gov/crt and www.justice.gov/crt/employment-litigation-section.
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Jury convicts Kansas City, Kansas man for shooting at law enforcementRead the Press Release
KANSAS CITY, KAN. – A federal jury convicted a Kansas man for taking part in a retaliatory shooting that injured two people, including a federal task force officer.
According to court documents and evidence presented at trial, G’Ante Butler, 24, of Kansas City, Kansas, was found guilty of one count of forcible assault on a federal law enforcement officer and one count of use of a firearm in furtherance of a crime of violence.
On August 3, 2020, Kansas City, Kansas police officers responded to a “shots fired” call on Farrow Avenue, where the defendant’s parents lived. Later that evening, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agents and federally deputized Task Force Officers (TFOs) went to North Allis Street and arrested one of the individuals responsible for the earlier Farrow Avenue residence shooting. After executing a search warrant at the North Allis Street residence, and as the officers were returning to their vehicles, multiple shooters began firing at them. The officers tried to immediately take cover, however, not before an officer and a civilian bystander were struck by gunfire.
Based on evidence gathered during the subsequent investigation, ATF agents learned the shooting was orchestrated by G’Ante Butler and other individuals in retaliation for the earlier incident on Farrow Avenue. Their plan was to shoot at the North Allis Street home and any individuals they encountered there. Officers later recovered approximately 101 casings and two live rounds (including 9mm, .40 caliber, .45 caliber, 5.56 caliber, and 7.62 caliber casings) from an alley west of the targeted North Allis Street home.
Co-defendants Nadarius Barnes, 24, Chase Lewis, 23, and Donnell L. Hall, 28, all of Kansas City, Kansas, each pleaded guilty to one count of forcible assault on a federal law enforcement officer and one count of use of a firearm in furtherance of a crime of violence.
A fifth defendant is scheduled to stand trial in February 2024.
“Gang members and their reckless violence are threats to the entire community, including those sworn to protect us. We are fortunate that the officer and the innocent bystander in this case didn’t lose their lives or suffer more serious injuries,” said U.S. Attorney Kate E. Brubacher. “Those who think they can orchestrate gun battles in our streets without the U.S. Department of Justice pursuing severe legal consequences against them are mistaken.”
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Kansas City, Kansas Police Department, and the Federal Bureau of Investigation (FBI) are investigating the case.
Assistant U.S. Attorney Faiza Alhambra and Trent Krug are prosecuting the case.
OCDETF Strike Force Cases
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the OCDETF Kansas City Metro Strike Force is to disrupt and dismantle major criminal organizations and subsidiary organizations, including criminal gangs, transnational drug cartels, racketeering organizations, and other groups engaged in illicit activities that present a threat to public safety and national security and are related to the illegal smuggling and trafficking of narcotics or other controlled substances, weapons, humans, or the illegal concealment or transfer of proceeds derived from such illicit activities in the Western District of Missouri and District of Kansas. The OCDETF Kansas City Metro Strike Force is comprised of agents and officers from the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations (HSI) in Kansas City, Missouri, the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Marshal Service (USMS), the United States Attorney’s Office for the District of Missouri (USAO-WDMO), the United States Attorney’s Office for the District of Kansas (USAO-KS), the Drug Enforcement Administration (DEA), the Internal Revenue Service/Criminal Investigation Division (IRS/CID), the United States Secret Service (USSS), and the United States Postal Inspection Service, and the prosecution is being led by the Office of the United States Attorney for the District of Kansas.###
Jamestown man pleads guilty to distributing child pornographyRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Brandon G. Uber, 23, of Jamestown, NY, pleaded guilty to distribution of child pornography before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in March 2021, Uber sent a Snapchat user image and video files of a 16-year-old minor female victim engaging in sexually explicit conduct. Uber also received images and videos of child pornography from other users of social media applications. In addition, Uber had online conversations with another known minor female victim, during which he persuaded the victim to create sexually explicit videos of herself to send to him. Uber stored the child pornography he received and distributed on various electronic devices that were seized during the investigation, including two cell phones and two tablets.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, and the New York State Police, under the direction of Major Eugene Staniszewski.
Sentencing is scheduled for June 6, 2024, before Judge Arcara.
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Jamestown Man Pleads Guilty to Distribution and Possession of Child Sexual Assault Materials ChargesRead the Press Release
ERIE, Pa. - A resident of Jamestown, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney Eric G. Olshan announced today.
Hank Thomas Fisher, 22, pleaded guilty to one count before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that from March 2020 to August 2021, Fisher distributed images and videos depicting prepubescent minors engaging in sexually explicit conduct. Fisher also possessed thousands of images and videos of child sexual abuse material.
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 (CEOS), 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.
Judge Baxter scheduled sentencing for April 24, 2024, at 11:00 a.m. The law provides for a maximum total sentence of 20 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 offenses and the prior criminal history, if any, of the defendant.
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 Fisher.
Jacksonville Man Sentenced to Seven Years for Possessing A Firearm as A Convicted FelonRead the Press Release
Jacksonville, Florida – Chief United States District Judge Timothy J. Corrigan has sentenced Dwayne Eric Thompson (39, Jacksonville) to seven years in federal prison, followed by three years of supervised release, for possession of a firearm by a convicted felon. Thompson was found guilty by a jury of this charge on July 11, 2023.
According to the evidence presented at trial, Thompson was arrested by Jacksonville Sherriff’s Officers and his car was searched. A loaded pistol was found in the center console. During the stop, Thompson and other passengers all denied knowledge and ownership of the firearm. DNA evidence presented at trial showed that Thompson’s DNA was present on the firearm and the loaded magazine.
Thompson is a multiple convicted felon, and at the time he possessed the firearm, he was on federal supervised release due to him previously possessing a firearm while being a convicted felon. As a convicted felon, he is prohibited from possessing firearms under federal law.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sherriff’s Office. The case was prosecuted by Assistant United States Attorney John Cannizzaro.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Jacksonville Man Sentenced to Five Years in Federal Prison for Possessing Multiple NarcoticsRead the Press Release
Jacksonville, Florida –United States District Judge Brian J. Davis has sentenced D’Trevious Sharron Epps (26, Jacksonville) to five years in federal prison, followed by four years of supervised release, for possession with intent to distribute 50 grams or more of methamphetamine. Epps pleaded guilty on August 22, 2023.
According to court documents, Epps sold narcotics to different confidential informants both in Duval and Nassau Counties during September and October of 2022. On October 13, 2022, Epps was arrested by the Florida Highway Patrol while he was on his way to sell methamphetamine. He possessed at least 148 grams of methamphetamine, 19 grams of fentanyl, and 24 grams of cocaine, and three firearms. As part of his guilty plea, Epps agreed to forfeit the firearms seized by law enforcement.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jacksonville Sherriff’s Office, and the Florida Highway Patrol. The case was prosecuted by Assistant United States Attorney John Cannizzaro.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Indian Trail, N.C. Man Is Charged with Committing Fraud Using Stolen Identities of Military Service MembersRead the Press Release
CHARLOTTE, N.C. – A federal indictment charging Shabazz Emmanuel McCarthan, 38, of Indian Trail, N.C., with committing fraud using the stolen identities of military service members was unsealed today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. A federal grand jury in Charlotte returned the criminal indictment in October 2023. The indictment remained sealed until McCarthan’s arrest in Arizona yesterday. McCarthan had his initial appearance today in the United States District Court for the District of Arizona.
Robert M. DeWitt, Special Agent in Charge of Federal Bureau of Investigation (FBI) in North Carolina joins U.S. Attorney King in making today’s announcement.
According to allegations in the indictment, beginning no later than January 2019 through October 2019, McCarthan and his co-conspirators engaged in an extensive identity fraud scheme. As alleged in the indictment, McCarthan and others obtained personal identifying information (PII) of military service members and used their PII to manufacture fictitious forms of identification in the victims’ names. Then, McCarthan allegedly used these fictitious forms of identification to fraudulently open bank accounts, lease apartment units, purchase furniture, and rent multiple vehicles, that were subsequently stolen and transported in interstate and foreign commerce. The indictment alleges that, during the scheme, McCarthan and his co-conspirators fraudulently obtained and attempted to obtain more than $250,000 in fraudulent goods and damaged the credit of military members, including at least one service member deployed overseas.
McCarthan is charged with conspiracy to defraud the United States, which carries a maximum penalty of five years in prison; wire fraud, which has a statutory maximum sentence of 20 years in prison; financial institution fraud, which carries a statutory prison sentence of 30 years; interstate transportation of a stolen motor vehicle, that has a maximum penalty of 10 years in prison; and three counts of aggravated identity theft, which carries a mandatory sentence of two years in prison for each charged offense consecutive to any other prison term imposed.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney King thanked the FBI for their investigation which led to the charges.
Assistant U.S. Attorney Michael E. Savage and Special Assistant U.S. Attorney Eric Frick of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Illinois Nurse Charged with Tampering with Morphine Prescribed to PatientRead the Press Release
CHICAGO — An Illinois nurse removed liquid morphine prescribed to a patient and diluted it with another liquid, knowing the diluted substance would be dispensed to the patient, according to a federal indictment unsealed today in U.S. District Court in Chicago.
NICKOLE BUTLER was employed as a registered nurse at a skilled nursing facility. The indictment alleges that Butler tampered with the liquid morphine on May 16, 2021, with reckless disregard and extreme indifference for the risk that the patient would be placed in danger of bodily injury.
Butler, 40, of Byron, Ill., is charged with one count of tampering with a consumer product. She pleaded not guilty today during her arraignment in federal court in Chicago.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Ronne Malham, Special Agent-in-Charge of the Chicago Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations. Substantial assistance was provided by the Illinois State Police and the U.S. Department of Health and Human Services, Office of Inspector General. The government is represented by Assistant U.S. Attorney Misty N. Wright.
“Patients deserve to have confidence that they are receiving the legitimately prescribed medication and not a diluted substance,” said Acting U.S. Attorney Pasqual. “Health care practitioners who illicitly tamper with prescription drugs will be prosecuted to the fullest extent of the law.”
“U.S. consumers rely on the FDA to oversee the prescription drug supply chain and ensure that their medicines are safe and effective,” said FDA SAC Malham. “When that supply chain is breached, the public’s health is put at risk. We will continue to pursue and bring to justice those who jeopardize consumers’ trust in their medications.”
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charge in the indictment carries a maximum sentence of ten years in federal prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Butler indictmentIllegal Firearms Possession Lands Metro Man in Federal Prison for More Than a DecadeRead the Press Release
Defendant Led Law Enforcement on High-Speed Chase Following Home Invasion
OKLAHOMA CITY – Yesterday, ALLEN RAY IDELL, JR., 46, of Oklahoma City, was sentenced to serve 144 months in federal prison for illegally possessing firearms after a previous felony conviction, announced U.S. Attorney Robert J. Troester.
On October 19, 2022, a federal grand jury indicted Idell on one count of being a felon in possession of firearms. On February 9, 2023, he pleaded guilty to the indictment.
At a sentencing hearing yesterday, U.S. District Judge Charles Goodwin sentenced Idell to serve 144 months in federal prison, followed by three years of supervised release. In announcing the sentence, Judge Goodwin noted Idell’s dangerous conduct and the “extreme” nature of the offense, adding that Idell’s actions showed clear disrespect for both the law and for the safety of others. The Court also noted Idell’s criminal history.
At sentencing, the Court heard evidence that on September 15, 2022, Idell led authorities on a high-speed chase in a vehicle stolen from an 80-year-old woman, while armed with firearms stolen from that same woman. The pursuit ended after Idell crashed the vehicle into a private gate and ran inside an occupied residence. He was apprehended soon after.
Public records also reflect that Idell has multiple felony convictions, including second degree burglary and possession of stolen property in Cleveland County District Court case number CF-2008-773, two counts of concealing stolen property and two counts of false declaration of ownership in Cleveland County District Court case number CF-2009-59, second degree burglary in Cleveland County District Court case number CF-2009-1112, and second degree burglary, possession of drug paraphernalia, and malicious injury to property in Oklahoma County District Court case number CR-2014-217.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Oklahoma City Police Department. Assistant U.S. Attorney Tiffany Edgmon prosecuted the case.
This case is also part of Project Safe Neighborhoods, a Department of Justice program to reduce violent crime. In October 2017, the Department announced the reinvigoration of Project Safe Neighborhoods and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001. For more information about Project Safe Neighborhoods, please visit https://justice.gov/psn and https://justice.gov/usao-wdok.
Reference is made to public filings for additional information.
Hamden Man Sentenced to 12 Years in Federal Prison for Attempting to Travel to Fight for ISISRead the Press Release
KEVIN IMAN McCORMICK, 30, of Hamden, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 144 months of imprisonment, followed a lifetime term of supervised release with monitoring of his electronic devices, for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
U.S. Attorney Vanessa Roberts Avery, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, and Special Agent in Charge Robert Fuller of the Federal Bureau of Investigation’s New Haven Division made the announcement.
According to court documents and statements made in court, between August and October 2019, McCormick made several statements to others expressing a desire to travel to Syria and to fight for ISIS. In August 2019, McCormick stated to members of a Muslim community center that “we should support ISIS” and “jihad is the way to go.” In another conversation in October 2019, McCormick stated “I gotta fight bro, because those people, Abu Masa and ISIL, they fought for me bro, I know it, I can feel it, in my heart. So it’s my time to fight . . . It just is what it is bro, it’s just my – it’s just my time to go bro.” When McCormick was asked to elaborate on where he would like to travel, McCormick responded, “I don’t know, I don’t know bro – it’s gotta be like Syria. Where ISIL is at….whichever place is easiest, whatever place I can get there the fastest, the quickest, the easiest, and where I can have a rifle and I can have some people bro. That’s what I need, I need a rifle and I need some people, I need Islamic law, I need, that’s what I need, because if I have these things, it’s gonna to be very hard to kill me.”
On October 12, 2019, McCormick attempted to board a flight from Connecticut to Jamaica, but was prevented by the U.S. Department of Homeland Security. McCormick subsequently told an individual that he wanted to travel to Jamaica, and then onward to Syria to join ISIS. He also indicated that he wanted to acquire weapons.
On October 19, 2019, McCormick made a video during which he pledged allegiance to ISIS and its leader, Abu Bakr Al-Baghdadi. Also on that date, he purchased a plane ticket from Toronto, Canada, to Amman, Jordan. On October 21, 2019, McCormick was arrested after he traveled to a small private airport in Connecticut where he expected to board a plane that would fly him to Canada.
McCormick has been detained since his arrest. On January 12, 2023, he pleaded guilty to attempting to provide material support to a designated foreign terrorist organization.
This matter was investigated by Federal Bureau of Investigation’s Joint Terrorism Task Force (JTTF) with the assistance of the Transportation Security Administration (TSA).
The FBI’s JTTF includes participants from Homeland Security Investigations (HSI), Internal Revenue Service – Criminal Investigation Division, Naval Criminal Investigative Service, U.S. Citizenship and Immigration Services, Connecticut State Police, Connecticut Department of Correction, Norwich Police Department, Hartford Police Department, Stamford Police Department, Town of Groton Police Department, Yale Police Department, and New York Police Department.
This case was prosecuted by Assistant U.S. Attorneys Neeraj Patel and Peter Jongbloed of the District of Connecticut, and Trial Attorneys Justin Sher and John Cella from the Counterterrorism Section of the Justice Department’s National Security Division.
Grand jury indicts Buffalo man on charges of production of child pornographyRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an indictment charging Mark Nash, 35, of Buffalo, NY, with three counts of production of child pornography and one count of possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, and a maximum of 30 years.
Assistant U.S. Attorney Jonathan P. Cantil, who is handling the case, stated that according to the indictment, on three occasions between July 2021, and May 2022, Nash coerced Minor Victim 1 to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. In addition, between July 2, 2021, and April 12, 2023, Nash possessed a cell phone containing sexually explicit images of Minor Victim 1.
The defendant was arraigned this morning before U.S. Magistrate Judge Jeremiah J. McCarthy and was detained.
The indictment is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Fresno Man Admits He and Coconspirator Murdered Family of Five in Their Home, including Three ChildrenRead the Press Release
NEWS RELEASE SUMMARY – December 21, 2023
SAN DIEGO – Christopher Baltezar Hernandez of Fresno, California, pleaded guilty in federal court today, admitting that he and another man stalked and fatally shot a family of five – including three children - in their Tijuana home on December 3, 2021.
According to court records, Hernandez traveled from Fresno, California, to Tijuana, Mexico, through San Diego, armed with an assault rifle, .223 caliber ammunition, and two revolver speed loaders on December 3, 2021. That same day, Hernandez met up with codefendant Victor Aguilar, who has already pleaded guilty and is awaiting sentencing.
Both Hernandez and Aguilar, armed with a .223 assault rifle and revolver and wearing dark clothes and gloves, traveled to the victims’ residence in Tijuana. According to the plea agreement, which identified the victims by their initials, the defendants shot and killed J.H. and her eight-year-old daughter, A.M.M., in the kitchen. G.M.V. was shot and killed while attempting to shield the other two children behind a bedroom door. The door was forced open and nine-year-old A.M. and four-year-old S.M. were each shot in the head.
Prior to the murders, Hernandez and Aguilar had researched the victims’ address and the surrounding area over 200 times. Hernandez also bought the parts and built a fully functional .223 caliber assault rifle as well as a pair of revolver speed loaders. On the day of the murders, Hernandez and Aguilar acquired a revolver in Tijuana, Mexico.
A sentencing hearing for Hernandez is scheduled for March 18, 2024, at 10 a.m. before U.S. District Judge Linda Lopez. Aguilar’s sentencing hearing is currently scheduled for June 26, 2024, also before Judge Lopez.
This case is being prosecuted by Assistant U.S. Attorneys Mario Peia, Matthew Brehm and Fred Sheppard.
DEFENDANTS Case Number 22cr778-LL
Christopher Baltezar Hernandez Age: 27 Fresno, CA
Victor Armondo Aguilar Age: 22 Tijuana, MX
SUMMARY OF CHARGES
Conspiracy to Murder – Title 18, U.S.C., Section 1117
Maximum penalty: Life in prison
Stalking Resulting in Death – Title 18, U.S.C., Section 2261A
Maximum penalty: Life in prison
AGENCY
Federal Bureau of Investigation
San Diego County Sheriff’s Department
Fort Hall Man Sentenced for Assault with a MacheteRead the Press Release
POCATELLO – Cody Ray Preacher, 30, of Fort Hall, was sentenced to 51 ½ months in federal prison for assault resulting in serious bodily injury, U.S. Attorney Josh Hurwit announced today.
According to court records, on August 15, 2022, Preacher attacked a woman at a residence on the Fort Hall Indian Reservation, causing serious bodily injury. Fort Hall police officers and an ambulance crew discovered the victim after receiving a call about a woman covered in blood walking down a street on the Fort Hall Indian Reservation. The woman was taken to the hospital for serious injuries to her knee and hand, which required surgery. At the hospital, the woman stated that she had been attacked at a residence and that her attacker was Preacher. A witness stated that Preacher told the victim to clean his house, and when she refused, Preacher struck the victim with a machete, with crutches, and with his hands.
The 51 ½ month sentence imposed by Chief U.S. District Judge David C. Nye was in addition to the 5 ½ months that Preacher had already served in the tribal jail based upon the same conduct, resulting in a total of 57 months incarceration. Judge Nye also ordered Preacher to serve three years of supervised release following his prison sentence. Preacher pleaded guilty to the charge on September 26, 2023.
U.S. Attorney Josh Hurwit commended the cooperative efforts of the Federal Bureau of Investigation and the Fort Hall Police Department, which led to charges. Assistant U.S. Attorney Jack Haycock prosecuted the case.
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Former Texas Police Lieutenant Sentenced to Nearly 13 Years in Federal Prison for Attempting to Entice 11-Year-Old Child to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – Chief United States District Judge Timothy J. Corrigan has sentenced Seth Estes Vanover (52, Diana, TX) to 12 years and 11 months in federal prison for attempting to entice an 11-year-old child to engage in sexual activity using an online social messaging app. Vanover was also ordered to serve a 15-year term of supervised release, register as a sex offender, and forfeit four iPhone devices. He had pleaded guilty on August 21, 2023.
According to court documents and evidence discussed in open court, on July 25, 2022, an undercover FBI agent began an online operation designed to identify individuals seeking to meet with and engage in sexual activity with children. Posing as a person with access to an 11-year-old child, the undercover (UC) agent posted a notice on the app and was then contacted by a user named “jattleson,” later identified as Vanover. Vanover confirmed that he was “into yung” and sent the UC agent several photos depicting child erotica and a nude adult male. Vanover and the UC agent discussed the sexual experience of the purported “child.” Vanover stated that he would “love to” meet them in Florida and would “love to be naked with” the “child.” Vanover and the UC agent engaged in more online conversations in August and September 2022, during which the two discussed, among other things, meeting in Florida so that Vanover could molest the “child.” Vanover described in graphic detail the sexual acts that he (Vanover) intended to perform on the “child,” and he directed the UC agent to talk to and prepare the “child” for the intended sexual activity.
On October 12, 2022, FBI agents arrested Vanover at the Longview Police Department in Longview, Texas, and Vanover, a police lieutenant, resigned on that same day. Agents searched the patrol car used by Vanover and recovered a cellphone that belonged to Vanover. A search of Vanover’s phone revealed that it contained, among other things, at least 234 videos and 133 photos depicting the sexual abuse of children, including infants, toddlers, and other young children. This phone also contained sexually explicit online communications that Vanover had with other app users, as well as child sexual abuse videos and photos that Vanover had solicited and received during some of these conversations.
This case was investigated by the Federal Bureau of Investigation, with the assistance and cooperation of the Longview (Texas) Police Department. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
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.
Former Swiss Executive Pleads Guilty to Tax Fraud ConspiracyRead the Press Release
A Swiss national pleaded guilty today to conspiring to defraud the United States for his role in a scheme to help high-net-worth U.S. taxpayers conceal their income and assets in offshore accounts.
According to court documents and statements made in court, Rolf Schnellmann was the former head of Allied Finance Trust AG, a Zurich-based financial services company and a subsidiary of the Allied Finance Group in Liechtenstein. From approximately 2008 to 2014, Schnellmann and his co-conspirators defrauded the IRS by concealing income and assets of high-net-worth U.S. taxpayer-clients in undeclared bank accounts at Privatbank IHAG Zurich AG (IHAG), a Swiss private bank.
Schnellmann and his co-conspirators devised and implemented a scheme dubbed the “Singapore Solution” to fraudulently conceal the bank accounts of the U.S. taxpayer-clients, their assets and their income from U.S. authorities. As part of the scheme, Schnellmann and his co-conspirators conspired to transfer more than $60 million from the U.S. taxpayer-clients’ undeclared IHAG bank accounts through a series of nominee accounts in Hong Kong and other locations before returning the funds to newly opened accounts at IHAG in the name of a Singapore-based asset-management firm that a co-conspirator helped establish. The U.S. taxpayer-clients paid large fees to IHAG and others to help them conceal their funds and assets and evade taxes.
Schnellmann was arrested in August in Italy and extradited to the United States. He is scheduled to be sentenced on July 19, 2024, and faces a maximum penalty of five years in prison, as well as a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Damian Williams for the Southern District of New York and James C. Lee, Chief of IRS Criminal Investigation (IRS-CI) made the announcement.
IRS-CI is investigating the case. Mr. Goldberg and Mr. Williams also thanked the Justice Department’s Office of International Affairs, Interpol, Italian law enforcement authorities, the Prosecutor General’s Office of Trieste and the Italian Ministry of Justice for their assistance in the extradition of the defendant.
Senior Litigation Counsel Nannette Davis of the Tax Division and Assistant U.S. Attorney Olga I. Zverovich for the Southern District of New York are prosecuting the case.
Former Swiss Executive Pleads Guilty to Tax Fraud ConspiracyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, announced that ROLF SCHNELLMANN, a Swiss former executive, pled guilty today to conspiring to defraud the United States in connection with a scheme to help high-value U.S. taxpayer-clients conceal more than $60 million in income and assets held in undeclared, offshore bank accounts and to evade U.S. income taxes. SCHNELLMANN pled guilty before U.S. District Judge Gregory H. Woods.
According to the allegations in the Indictment, court filings, and statements made in Court:
SCHNELLMANN was the former head of Allied Finance Trust AG, a Zurich-based financial services company that was a subsidiary of the Allied Finance Group in Liechtenstein. From in or about 2008 to in or about 2014, SCHNELLMANN and his co-conspirators defrauded the IRS by concealing income and assets of high-value U.S. taxpayer-clients with undeclared bank accounts at Privatbank IHAG Zurich AG (“IHAG”), a Swiss private bank. In order to assist the U.S. taxpayer-clients, SCHNELLMANN and his co-conspirators devised and implemented a scheme dubbed the “Singapore Solution” to fraudulently conceal the bank accounts of the U.S. taxpayer-clients, their assets, and their income from U.S. authorities. In furtherance of the fraudulent scheme, SCHNELLMANN and his co-conspirators conspired to transfer more than $60 million from undeclared IHAG bank accounts of the U.S. taxpayer-clients through a series of nominee bank accounts in Hong Kong and other locations before returning the funds to newly opened accounts at IHAG in the name of a Singapore-based asset-management firm that a co-conspirator helped establish. The U.S. taxpayer-clients paid large fees to IHAG and others to help them conceal their funds and assets and evade taxes.
SCHNELLMANN was arrested in August 2023 in Italy and extradited to the United States.
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SCHNELLMANN, 61, of Switzerland, pled guilty to one count of conspiracy to defraud the United States, which carries a maximum sentence of five years in prison. SCHNELLMANN is scheduled to be sentenced by Judge Woods on July 19, 2024, at 10:00 a.m.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as SCHNELLMANN’s sentence will be determined by the judge.
Mr. Williams praised the outstanding work of the Internal Revenue Service, Criminal Investigation. Mr. Williams also thanked the Department of Justice’s Office of International Affairs, Interpol, Italian law enforcement authorities, the Prosecutor General’s Office of Trieste, and the Italian Ministry of Justice for their assistance in the extradition of the defendant. Mr. Williams thanked the Department of Justice’s Tax Division for their partnership on this case.
This prosecution is being handled by the Complex Frauds and Cybercrime Unit and the Department of Justice’s Tax Division. Assistant U.S. Attorney Olga I. Zverovich and Senior Litigation Counsel Nanette Davis of the Tax Division are in charge of the prosecution.
Former State Employee and Her Husband Plead Guilty to Conspiracy to Unlawfully Produce Tennessee Driver's LicenceRead the Press Release
KNOXVILLE, Tenn. – On December 21, 2023, Cheryl Huff, 49, of Knoxville, and Mario Paz-Mejia, 50, of Knoxville, who are married, entered guilty pleas in the United States District Court for the Eastern District of Tennessee to one count of conspiracy to produce, without lawful authority, identification documents or false identification documents. Sentencing has been set for May 24, 2024, before the Honorable Katherine A. Crytzer in the United States District Court at Knoxville.
Huff and Paz-Mejia each face a term of up to 15 years in Federal prison, $250,000 in fines, and supervised release of three years.
As part of their written plea agreements filed with the court on March 1, 2023, Huff and Paz-Mejia waived an indictment by a Federal Grand Jury and agreed to plead guilty for their role in a conspiracy to produce hundreds of false Tennessee driver’s licenses and identification cards for individuals who were not qualified under Tennessee law to receive them.
According to the plea agreements filed with the court, Huff was a District Manager for the Tennessee Department of Safety and Homeland Security (TDSHS), which issues Tennessee driver’s licenses and identification cards at various Driver Service Centers (DSC) across Tennessee. Huff managed and supervised DSC employees in the Greater Knoxville area and had authority to issue driver’s licenses and application cards.
Paz-Mejia recruited individuals who were neither citizens of the United States nor residents of Tennessee who wanted to acquire a Tennessee driver’s license or identification card. Using his association with Huff, Paz-Mejia represented to his customers that, in return for $2,500, Paz-Mejia could obtain for them a Tennessee driver’s license or identification card. Paz-Mejia also assisted his customers in obtaining false citizenship and residency documents—two requirements to obtain a Tennessee driver’s license—including fraudulent lease agreements to establish proof of Tennessee residency, and false birth certificates, Social Security cards, and driver’s licenses from other states and U.S. territories to establish proof of citizenship or legal residency in the United States.
Huff knew, or deliberately ignored a high probability, that Paz-Mejia was helping his customers obtain false citizenship and residency documents and that Paz-Mejia charged his customers money to obtain a Tennessee driver’s license or identification card.
Huff used her access to TDSHS’s internal software to confirm that the names and information on the false citizenship and residency documents used by Paz-Mejia’s customers could be used to obtain a Tennessee driver’s license or identification card. For example, on June 23, 2021, Paz-Mejia texted Huff the name, date of birth, and personal information used on false identification documents, asking Huff to “check that please.” Huff responded, “All of these are not on file. They’re good.”
After Paz-Mejia’s customers acquired false citizenship and residency documents, Paz-Mejia arranged to meet them at a Knoxville-area DSC before business hours. With Huff’s assistance, Paz-Mejia escorted his customers into DSCs before business hours, including through a backdoor employee-only entrance. Once Paz-Mejia and his customers were inside, Huff initiated driver’s license applications for the customers using TDSHS software. Huff also instructed subordinate DSC employees to complete applications and issue driver’s licenses to many of Paz-Mejia’s customers.
“Abusing a position of public trust to commit any federal crime, including conspiracy to unlawfully produce false identification documents, undermines the public’s confidence in government functions and creates a serious security risk,” said United States Attorney for the Eastern District of Tennessee Francis M. Hamilton III. “Our office will aggressively prosecute government employees who abuse their trusted employment positions for personal gain.”
“I am deeply disappointed in the actions of a former Tennessee Driver Services District Manager and others who betrayed the trust and tarnished the reputation of the Tennessee Department of Safety and Homeland Security,” said Tennessee Department of Safety and Homeland Security Commissioner Jeff Long. “I want to thank the departmental employees for having the courage to alert and cooperate with the Tennessee Highway Patrol’s Criminal Investigation Division on this case involving one of their co-workers. Our agency cooperates and works closely with federal law enforcement partners and the United States Attorney’s Office to pursue justice to the fullest extent of the law.”
This prosecution is the result of an ongoing investigation by the Tennessee Highway Patrol’s Criminal Investigation Division, the United States Department of Homeland Security’s Homeland Security Investigations, the United States Postal Inspection Service, and the United States Secret Service.
William A. Roach, Jr., Assistant United States Attorney, represented the United States.
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Former City of Chicago Alderman Convicted on Federal Racketeering, Bribery, and Extortion ChargesRead the Press Release
CHICAGO — A federal jury today convicted former City of Chicago Alderman EDWARD M. BURKE on racketeering, bribery, and extortion charges for abusing his position while an alderman to solicit and extort private legal work and other benefits from companies and individuals with business before the city.
Burke, 79, of Chicago, was found guilty on 13 counts: racketeering; corruptly soliciting, demanding, accepting, or agreeing to accept things of value; using an interstate facility to promote unlawful activity; and attempted extortion. A co-defendant, real estate developer CHARLES CUI, 52, of Lake Forest, Ill., was found guilty on five counts: corruptly offering or agreeing to give things of value; using an interstate facility to promote unlawful activity; and knowingly making a false statement to the FBI. A third defendant, PETER J. ANDREWS, 74, of Chicago, an aide in Burke’s 14th Ward office, was acquitted of all charges against him.
U.S. District Judge Virginia M. Kendall set sentencing for June 17, 2024, for Cui, and June 19, 2024, for Burke. The racketeering and extortion counts are punishable by up to 20 years in federal prison. The counts for corruptly soliciting and accepting things of value are punishable by up to ten years, while the maximum for both using an interstate facility to promote unlawful activity and making a false statement to the FBI is five years.
The verdicts were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The City of Chicago Inspector General’s Office and the Amtrak Office of Inspector General provided valuable assistance. The government is represented by Assistant U.S. Attorneys Sarah Streicker, Diane MacArthur, Timothy Chapman, and Sushma Raju, as well as Amarjeet Bhachu, Chief of the U.S. Attorney’s Office’s Public Corruption Section.
Evidence at the six-week trial in U.S. District Court in Chicago revealed that Burke corruptly solicited work for his private law firm from companies involved in redevelopment projects at the Old Main Post Office in downtown Chicago and a Burger King restaurant on the city’s Southwest Side. Burke also corruptly attempted to assist Cui with a development on the city’s Northwest Side shortly after Cui told Burke that he would hire Burke’s private law firm, Klafter & Burke, for legal work. Klafter & Burke specialized in seeking property tax reductions for corporate clients.
The evidence further revealed that Burke threatened to oppose an admission fee increase at the Field Museum in Chicago because the museum failed to respond to Burke’s inquiry about obtaining an internship at the museum for a child of Burke’s friend.
Cui was convicted of steering the private legal work to Burke in an effort to influence and reward him in connection with permitting and tax increment financing for Cui’s development.
The corruption schemes occurred in 2016, 2017, and 2018, while Burke was Alderman of the 14th Ward and Chairman of the Chicago City Council’s Finance Committee. Burke served in the City Council from 1969 until earlier this year.
Former Cincinnati city councilman sentenced to 24 months in prison for accepting bribesRead the Press Release
CINCINNATI – A former Cincinnati city councilman was sentenced in federal court here today to 24 months in prison for honest services wire fraud.
While serving as a city councilman in fall 2018, Jeffrey Pastor, 39, of Cincinnati, received a $15,000 cash bribe in return for his official action to advance development projects in the city.
According to court documents, in September 2018 Pastor and his associate flew to Miami, Florida, on a private plane to meet with investors regarding a real estate development project. Pastor never paid for or disclosed the trip. During the trip, Pastor explained he would ensure favorable action on behalf of the city for the project and could receive money through his associate’s non-profit entity (which had been incorporated two weeks prior). Pastor discussed “compensation” and agreed to accept $15,000 for helping with the project. He said the purpose of his associate’s entity was to “sanitize” the money.
After flying back to Cincinnati, Pastor called the investor to “negotiate a monthly retainer” and said that $15,000 would be the retainer fee for providing official action.
On Oct. 4, 2018, Pastor accepted $15,000 in cash. After receiving the money, Pastor continued to solicit bribes on multiple occasions for an eight-month period.
Pastor and Tyran Marshall were indicted by a federal grand jury in November 2020. Pastor pleaded guilty in June 2023 and Marshall pleaded guilty in December 2023.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division announced the sentence imposed today by U.S. District Judge Matthew W. McFarland. Deputy Criminal Chief Emily N. Glatfelter and Assistant United States Attorney Matthew C. Singer are representing the United States in this case.
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Former Car Salesman Sentenced for Money LaunderingRead the Press Release
A former car salesman was sentenced today for money laundering and concealing illegal proceeds, announced U.S. Attorney Clint Johnson. U.S. District Judge Gregory K. Frizzell sentenced Stacy Germain Dotson, 48, of Tulsa to 27 months imprisonment, followed by 3 years of supervised release. Judge Frizzell further ordered Dotson to pay $16,000 in restitution.
According to his plea agreement, Dotson and co-worker, William Ray Turner created a scheme to defraud a Chevrolet dealership. Turner would create phony sales with stolen identities. Once the phony sale was approved, Dotson would help Turner transport the vehicle off the lot to sale to a third party. Dotson or Turner would then receive payment for the stolen vehicle as well as commission.
Turner plead guilty to wire fraud and was sentenced to 27 months imprisonment, followed by 3 years of supervised release. He was further ordered to pay $417,526.66 in restitution.
Dotson was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility.
The U.S. Secret Service, IRS-Criminal Investigation, and Bartlesville Police Department conducted the investigation. Assistant U.S. Attorney Thomas E. Buscemi prosecuted the case.
Former Belleville Attorney Indicted in Federal CourtRead the Press Release
EAST ST. LOUIS, Ill. – A federal grand jury returned an eleven-count indictment charging a former attorney for multiple instances of wire fraud in which he is alleged to have embezzled more than an estimated $1 million from a Belleville law firm and its client trust account.
Jason R. Caraway, 49, is facing 11 counts of wire fraud. If convicted, Caraway could face up to 20 years’ imprisonment and up to $250,000 in fines per count.
“Attorneys have a duty to protect their clients’ interests and must be held to the highest ethical standard,” said U.S. Attorney Rachelle Aud Crowe. “Those who are overcome by greed and use their professional positions to embezzle from their employers and steal from innocent people will answer to the rule of law.”
Caraway was a partner at Caraway, Fisher & Broombaugh, P.C., a personal injury law firm in Belleville. According to the indictment, Caraway had control of the firm’s bank accounts and misappropriated funds by improperly spending client funds on personal and business expenses, issuing checks to himself, accepting settlements without client notification or payment, failing to pay medical lienholders from legal proceeds, and misapplying retainers without authorization.
“A lawyer, as an officer of the legal system, should demonstrate respect for our laws and protect the interests of the clients he represents,” said FBI Springfield Special Agent in Charge David Nanz. “When a lawyer chooses to enrich himself by stealing client funds, the FBI will work to hold him accountable.”
The indictment outlines 11 alleged situations in which Caraway embezzled funds. In two instances, Caraway is accused of forging the signature of two St. Clair County judges on phony court documents to further his fraud scheme.
An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
FBI Springfield Field Office led the investigation, and Assistant U.S. Attorney Steve Weinhoeft is prosecuting the case.
Former Army lieutenant colonel pleads guilty to possessing child pornographyRead the Press Release
MIAMI – On Dec. 20, Edgar Ali Cerda, 49, of Cooper City, Florida, a former Army lieutenant colonel pleaded guilty in federal district court in Fort Lauderdale to possession of child pornography. At the time of the crimes, Cerda was employed with the United States Army.
On March 10, 2021, law enforcement officers executed a residential search warrant at Cerda’s home. An examination of Cerda’s electronic devices revealed multiple images and videos depicting sexual exploitation of children under 12 years of age, with one victim as young as four years old. Forensic evidence also revealed that Cerda shared some of the images within a group chat. Law enforcement officers arrested Cerda, who was home at the time.
A sentencing hearing is scheduled for Feb. 28, 2024, before U.S. District Judge Rodney Smith. Cerda faces up to 20 years in federal prison and up to a lifetime of supervised release.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, and Sheriff Gregory Tony of the Broward Sheriff’s Office (BSO) announced the guilty plea.
FBI Miami and BSO investigated the case with assistance from the Florida Department of Law Enforcement (FDLE), Fort Lauderdale Police Department (FLPD), and Homeland Security Investigations (HSI), Miami. Assistant U.S. Attorney Ajay J. Alexander is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), PSC 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 PSC, please visit www.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-60115.
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Florida Man Sentenced for Illegally Distributing over $16M of Adulterated HIV MedicationRead the Press Release
MIAMI – A Florida man was sentenced today to four years and three months in prison for his role in a nationwide scheme to illegally distribute at least $16.7 million of adulterated HIV drugs that were ultimately dispensed to unsuspecting patients throughout the country.
According to court documents, Armando Herrera, 43, of Miami, and his co-conspirators established companies in Florida, Texas, Washington, and California, which they used to sell and distribute adulterated prescription drugs, primarily HIV medications, to wholesale pharmaceutical suppliers. Herrera and his co-conspirators created false documentation to make it appear as though the drugs were acquired legitimately when, in fact, they were not. The pharmaceutical suppliers then sold the drugs to pharmacies, which dispensed the adulterated prescription drugs to unwitting patients. As part of the investigation, federal agents seized more than $1.5 million worth of adulterated prescription drugs from Herrera, including more than 16,000 tablets of adulterated and misbranded HIV medication.
Herrera pleaded guilty on Sept. 25 to one count of conspiracy to introduce adulterated and misbranded drugs into interstate commerce.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Acting Special Agent in Charge Stephen Mahmood of the Department of Health and Human Services Office of the Inspector General (HHS-OIG), Miami Regional Office; Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Atlanta Region; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; and Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office made the announcement.
HHS-OIG, FDIC-OIG, and the FBI investigated the case.
Trial Attorney Alexander Thor Pogozelski of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Marx P. Calderón for the Southern District of Florida handled asset forfeiture.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-20264.
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Felon Sentenced for Unlawful Firearm PossessionRead the Press Release
Acting United States Attorney Susan Lehr announced that Christopher Evans, 33, of Omaha, Nebraska was sentenced December 21, 2023, in federal court in Omaha, for being a felon in possession of a firearm. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Evans to 24 months of imprisonment. There is no parole in the federal system. After Evans’ release from prison, he will begin a 3-year term of supervised release.
On January 29, 2022, Omaha police officers observed a vehicle fail to signal its turn. Officers conducted a traffic stop and upon contact with the vehicle observed an open container of alcohol in Evans’ lap and another open container in the center console. Co-defendant Bath Kuol was seated in the front passenger seat and Evans was the driver. During a search of the vehicle, officers located a Glock 19x 9mm handgun with a loaded 33 round magazine inside of the center console.
Evans admitted to law enforcement that he knew the firearm was in the vehicle and admitted to handling it. Prior to January 29, 2022, Evans had been convicted of felony possession of a controlled substance.
Bath Kuol was sentenced on February 17, 2023, to 63 months in prison, three years of supervised release, and a $100 special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Federal grand jury indicts Buffalo man and woman on COVID fraud chargesRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an indictment charging Damone Hennings, 31, and Analyse Spencer, 23, both of Buffalo, NY, with conspiracy to commit mail fraud, mail fraud, and aggravated identity theft. The charges carry a minimum penalty of two years in prison, and a maximum penalty of 20 years.
Assistant U.S. Attorney Jonathan P. Cantil, who is handling the case, stated that according to the indictment, between on or about August 11, and September 7, 2020, Hennings and Spencer conspired to illegally obtain pandemic related benefits from the New York State Department of Labor. Hennings and Spencer used false identification information, including the social security numbers of other individuals, to submit 10 applications to state labor department. As a result, Hennings and Spencer received 10 debit cards containing federal funds that they were not entitled to receive. Hennings and Spencer attempted to obtain $412,606, but actually obtained approximately $362,268.
The indictment is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent-in-Charge Jonathan Mellone, and the Wyoming County Sheriff’s Office, under the direction of Sheriff David Linder.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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