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19 December 2023
Grants Pass Physician and Affiliated Medical Practice Agree to Pay $115,000 to Settle Health Care Fraud AllegationsRead the Press Release
PORTLAND, Ore.—A Grants Pass, Oregon medical doctor and his general medical practice have paid $115,000 to settle allegations by the United States regarding the physician, on behalf of himself and his practice, submitting medical reimbursement claims to Medicare, TRICARE, and the Veterans Health Administration (VHA), announced the U.S. Attorney’s Office for the District of Oregon.
Wendell Heidinger, 60, and Optimal Health of Southern Oregon, LLC (Optimal), paid $115,000 to the United States.
The United States contended that, between January 1, 2018, and December 31, 2020, Dr. Heidinger and Optimal submitted claims for reimbursement to Medicare, TRICARE, and VHA coded as “evaluation and management” when frequency specific microcurrent (FSM) treatments were primarily provided. Medicare considers FSM as an investigational treatment for which it does not provide coverage or payment.
Medicare is a public health insurance program administered by the Centers for Medicare & Medicaid Services, a federal agency within the U.S. Department of Health and Human Services (HHS). TRICARE is a civilian health care program administered by the Defense Health Agency (DHA), a joint, integrated combat support agency within the U.S. Department of Defense (DOD). VHA, an agency within the U.S. Department of Veterans Affairs, is the largest integrated health care system in the United States and provides primary care, specialized care, and related medical and social support services to American veterans.
This settlement was the result of a coordinated investigation by the U.S. Attorney’s Office for the District of Oregon; HHS Office of Inspector General (HHS-OIG); and DHA.
The United States was represented in this matter by Carla G. McClurg, Assistant U.S. Attorney for the District of Oregon, with assistance from Lisa M. Re, Assistant Inspector General for Legal Affairs for HHS-OIG and Salvatore M. Maida, General Counsel for DHA.
The claims resolved by this settlement are allegations only, and there has been no determination or admission of liability.
Grand Rapids Man Pleads Guilty to Sex Trafficking of A ChildRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Torey Franklin, 29, of Grand Rapids, pleaded guilty to sex trafficking of a child.
“Trafficking in any form is intolerable, but the sex trafficking of a minor is especially cruel,” remarked U.S. Attorney Totten. “My office is committed to holding traffickers legally accountable for the lasting harm they cause to children within our district.”
Franklin admitted that in the spring and summer of 2022, he used online advertisements to offer the sexual services of a minor to prospective customers. After posting the ads, Franklin would negotiate prices and sexual acts with prospective customers before transporting the minor to multiple locations for the “sex dates” he had arranged. Afterwards, he would receive payment, often through a popular money-sharing application. Franklin now faces a term of at least ten years and up to life in prison as a result of his guilty plea and conviction.
Franklin was captured due to Operation Cross Country, a coordinated operation among the FBI, other federal agencies, state and local police, and social services agencies across the country to find and assist victims of human trafficking, particularly child victims. The previous press release and indictment can be viewed here.
“Today’s plea is a testament to the progress made during Operation Cross Country (OCC), the FBI’s annual nationwide enforcement campaign focused on identifying and locating victims of sex trafficking and investigating and arresting individuals involved in child sex and human trafficking,” said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. “We would like to extend our appreciation to our wide network of law enforcement partners for their critical support in investigating sexual predators who commit crimes against children. The FBI encourages continued vigilance, cooperation, and reporting from the public to help identify and recover victims and bring perpetrators to justice. If you believe you may have any information, please contact the National Center for Missing & Exploited Children at 1-800-THE-LOST or online at report.cybertip.org.”
The National Center for Missing & Exploited Children has more information about the reality of child sex trafficking on its website at https://www.missingkids.org/theissues/trafficking. If you suspect that someone you know may be a victim of human trafficking, information about how to make a report to law enforcement can be found at the website for the national human trafficking hotline: https://humantraffickinghotline.org/en/get-help.
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Georgia state prison inmate pleads guilty to impersonating a federal agent as part of a national telephone fraud schemeRead the Press Release
Seattle – A Georgia prison inmate who was indicted in Western Washington for a telephone fraud scheme pleaded guilty today in U.S. District Court in Seattle to conspiracy to impersonate a federal officer, announced Acting U.S. Attorney Tessa M. Gorman. Robert “Bo” Nnanwubas, 29, was incarcerated at Calhoun State Prison in Morgan, Georgia when he and others conspired to impersonate federal agents to defraud health care workers across the country. Prosecutors will ask that eight months in federal prison be added to Nnanwubas state sentence when he is sentenced by U.S. District Judge John C. Coughenour on March 12, 2024.
According to the plea agreement, Nnanwubas and others used contraband cell phones and Voice Over Internet Protocol (VOIP) technology to call victims and impersonate law enforcement personnel, including Deputy U.S. Marshals. The “Marshal” would tell the victim that a subpoena had been issued for the victim to appear and testify in court, and since the victim did not appear, a warrant had been issued for their arrest. The caller would say the warrant could be “quashed” if the victim sent money via Zelle or another digital payment system.
The conspirators targeted health care workers across the country. In March 2022, Nnanwubas’ Zelle account received approximately $15,000 in payments from eight different victims. An additional $5,300 was sent to Nnanwubas via Paypal and Venmo by three additional victims.
In a call to a Seattle area victim, Nnanwubas or his co-conspirators claimed to be “Deputy Marshal Gary Hartnett,” and demanded the victim return the call to what appeared to be a Seattle number. The scammers told the victim that two subpoenas had been sent to her place of work and that she needed to make payment, or she would be arrested. They also claimed there was a gag order in the case so that the victim could not consult a lawyer or other legal or law enforcement expert. The caller demanded the victim pay $2,000 or she would be arrested. The caller even told the victim she would have to turn herself in at the federal courthouse at 700 Stewart Street in Seattle. The schemers used as many correct details as possible to try to convince the victims to pay. The Seattle victim did not send money.
In the plea agreement Nnanwubas agrees to pay restitution to the victims of $15,300.
“This case should serve as a reminder that legitimate government workers will not call and demand payment via Zelle, Venmo or some other digital means,” said Acting U.S. Attorney Tessa M. Gorman. “The Courts and our federal partners do not demand money or any kind of payment in response to a subpoena. If you get a call like this, just hang up.”
The case was investigated by the FBI with assistance from the U.S. Marshals Service. The case is being prosecuted by Assistant United States Attorney Cindy Chang.
Georgia Man Admits Role in $127 Million Health Care Fraud and Kickback SchemeRead the Press Release
NEWARK, N.J. – A Georgia man and operator of a marketing company 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.
Nicco Romanowski, 31, of Roswell, Georgia, 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 May 2019, Romanowski participated in a scheme with durable medical equipment (DME) companies, 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. Romanowski operated a marketing company though which he and his conspirators identified Medicare and TRICARE beneficiaries to target for DME. Employees of the company called the beneficiaries to pressure them to agree to accept DME, frequently consisting of back, shoulder, and knee braces. Romanowski and his conspirators paid the company’s employees commissions, bonuses, and incentives to encourage them to convince as many beneficiaries as possible to accept DME, regardless of medical necessity.
Romanowski and his company paid kickbacks to telemedicine companies, which in turn paid kickbacks to doctors, to obtain doctor’s orders for the DME. The doctors paid by the telemedicine companies signed the orders regardless of medical necessity, often without ever speaking to the patient. Romanowski and his business partner, Eric Karlewicz, then steered the doctor’s orders to DME suppliers around the country, with which Romanowski and his company had additional kickback arrangements. The DME companies submitted claims for reimbursement to health care benefit programs including Medicare and TRICARE, and thereafter sent a portion of the proceeds to Romanowski and his company as payment for the doctor’s orders generated through the conspiracy. The company received more than $63 million from DME suppliers in exchange for the referrals.
In total, Romanowski and his conspirators caused the submission of false and fraudulent claims to health care benefit programs totaling more than $127 million for DME. Karlewicz previously pleaded guilty to an information charging conspiracy to violate the anti-kickback statute and conspiracy to commit health care fraud.
The kickback conspiracy charge is punishable by a maximum of five years in prison, and the health care fraud conspiracy charge is punishable by a maximum of 10 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, whichever is greatest. Sentencing is scheduled for May 21, 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; special agents of the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; and special agents of the 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 and Senior Trial Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit in Newark.
romanowski.information.pdfFour Co-Conspirators Sentenced After Pleading Guilty to Wire FraudRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that JAMES THOMAS SINYARD, a/k/a Jay Sinyard (“J. SINYARD”), MARY GIGI SINYARD a/k/a Gigi Sinyard (“M. SINYARD”), JOHN SUTTON (“SUTTON”), and MARC QUIROZ (“QUIROZ”), were sentenced after each previously pled guilty to one count of wire fraud.
According to the bills of information, J. SINYARD, M. SINYARD, SUTTON, and QUIROZ co-owned and operated companies called VetAttend of Jackson, LLC, and VetAttend Professional Services, LLC of Mandeville, Louisiana, where they purported to provide home aid and assistance services to veterans .
On December 5, 2023, J. SINYARD was sentenced to 6 months of imprisonment, followed by 3 years of supervised release. M. SINYARD was sentenced to one month of imprisonment, followed by 3 years of supervised release.
On December 11, 2023, SUTTON was sentenced to 24 months of imprisonment, followed by 3 years of supervised release.
On December 14, 2023, QUIROZ was sentenced to 17 months of imprisonment, followed by 3 years of supervised release. Additionally, J. SINYARD, M. SINYARD, SUTTON, and QUIROZ each was ordered to pay a $100.00 mandatory special assessment fee.
According to the bill of information that described the fraudulent scheme of J. SINYARD and M. SINYARD, the duo submitted more than one hundred fraudulent application affidavits for veterans and/or their surviving spouses, to the Department of Veterans Affairs (“VA”), falsely indicating that VetAttend of Jackson was already providing services to these veterans. As a result, from approximately August 2014 to approximately December 2020, the VA issued funds to over 70 veterans and/or their surviving spouses from whom VetAttend of Jackson fraudulently mis-appropriated approximately $2,136,329.68.
According to the bills of information for SUTTON and QUIROZ, they submitted fraudulent affidavits for home aid services allegedly provided, knowing that those services were not actually provided. More particularly, as part of their fraud scheme, from approximately April 2013 until at least July 2018, SUTTON and QUIROZ submitted fraudulent affidavits and applications to the VA on behalf of veterans and their spouses, falsely claiming that VetAttend had actually provided home services to the veterans. As a result,, the VA issued approximately $4,065,969.18 to over 300 veterans and/or their surviving spouses that SUTTON and QUIROZ mis-appropriated, all without the knowledge of the veterans .
“These sentencings send a clear message that those who would exploit veterans to commit fraud will be investigated and held accountable,” said Special Agent in Charge Kris Raper with the Department of Veterans Affairs Office of Inspector General’s South-Central Field Office. “The VA OIG thanks the U.S. Attorney’s Office for their efforts in this case.”
The case was investigated by the Department of Veterans Affairs Office of Inspector General.
The prosecution of the case was handled by Assistant United States Attorney Kathryn McHugh of the Financial Crimes Unit.
Former owner of Everett and Lynnwood restaurants sentenced to 10 months in prison for multi-year tax fraudRead the Press Release
Seattle – The 45-year-old former owner of two Snohomish County restaurants was sentenced today in U.S. District Court in Seattle to 10 months in prison, a $10,000 fine and two years of supervised release for tax evasion announced Acting U.S. Attorney Tessa M. Gorman. Si Yong Kim failed to pay taxes on more than $1.7 million in income at two sushi restaurants: Oshima and Si Joy. At the sentencing hearing, U.S. District Judge James L. Robart was particularly incensed that Kim had taken government aid in the form of Paycheck Protection Program loans during the pandemic. “Here is a man who is withholding his taxes to the treasury but is perfectly willing to take taxes from the treasury to keep his businesses afloat…. It is highly troublesome that this went on for an extensive period of time,” Judge Robart said.
“Our tax system operates on an honor system where we expect our taxpayers to pay their fair share,” said Acting U.S. Attorney Gorman. “In this case Mr. Kim didn’t cheat to keep his restaurants afloat, rather he used the money that should have gone to taxes for expensive watches, designer shoes and accessories, and jewelry. He used the money for investments and to pay off the mortgage on his home in Mukilteo. That conduct is an affront to all who scrimp and struggle to pay their fair share.”
According to records filed in the case between 2016 and 2020, Kim underreported the income at his restaurants by more than $1.7 million. He did this by keeping cash proceeds and periodically depositing the cash to his personal bank account or keeping the cash at his home. He paid his employees in cash and failed to pay over various employment taxes. He also overestimated the costs associated with the two restaurants.
When law enforcement executed a search warrant at Kim’s Mukilteo home and at his businesses in June 2022, they discovered he kept handwritten books in which he documented the actual gross income and legitimate expenses for his restaurants and noted a separate figure—a “CPA number”—that provided to his accountant for tax purposes. The CPA number omitted the cash receipts for his restaurants and understated credit card charges as well. The search also revealed an extensive collection of designer goods, large amounts of cash, and records that indicated employees were paid under the table. Kim also used the proceeds from his scheme to invest in properties in Georgia and to pay off his home mortgage.
An analysis by the Internal Revenue Service Criminal Investigation revealed that in each calendar year from 2016 to 2020 Kim failed to report his actual income for each restaurant. In 2017 he failed to report more than $586,395 in income.
Kim has paid restitution of $511,750.
In asking for a one-year prison sentence, Assistant United States Attorney Lauren Watts Staniar noted that the public needs to see that there is punishment for illegally evading taxes. Kim’s “tax fraud was meticulous and deliberate: he kept thorough handwritten books for his restaurants in which he calculated income and expenses. At the end of each month, he wrote down a ‘CPA Number’ that omitted his restaurants’ cash receipts and understated credit card receipts by several thousands of dollars…. He ha(d) cash stashed throughout his home, drives luxury cars, and proudly displays Rolex watches in a locked case. This is not a circumstance in which a struggling business owner underreported income to keep the lights on. Kim had the means to pay his taxes, he just chose not to.”
In court today Kim’s lawyer said he had already sold the sushi restaurant in Everett.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant United States Attorney Lauren Watts Staniar.
Former Uniontown Resident Sentenced to 25 Years in Prison for Child Sexual Exploitation OffensesRead the Press Release
PITTSBURGH, PA - A former resident of Uniontown, Pennsylvania, has been sentenced in federal court to 300 months’ imprisonment (25 years) on his conviction for twelve counts of child sexual exploitation, including the production and attempted production of material depicting the sexual exploitation of a minor, and possession of material depicting the sexual exploitation of a minor, United States Attorney Eric G. Olshan announced today.
United States District Judge W. Scott Hardy imposed the sentence on David Straitiff and ordered that following his release from incarceration, Straitiff be placed on supervised release for life.
According to information presented to the court, Straitiff sexually assaulted four minors under his care, including the minor identified in the Indictment as Minor A, for a period of ten years. The assaults began when the minors were as young as three years old. Among other acts, Straitiff recorded his sexual abuse of the minors and forced them to watch videos of the assaults to convince them to submit to additional abuse. Law enforcement recovered a thumb drive following a search of Straitiff’s residence containing child sexual abuse material produced on various dates between 2010 and 2012.
In sentencing the defendant, Judge Hardy described Straitiff’s crimes as “extremely disturbing,” and stated that the conduct indicates “true depravity” and “a disturbing betrayal of trust.” Judge Hardy also acknowledged the “profound trauma” Straitiff caused the victims of his crimes.
Assistant United States Attorney Karen Gal-Or prosecuted this case on behalf of the government.
United States Attorney Olshan commended Homeland Security Investigations – Pittsburgh and the Pennsylvania State Police for the investigation leading to the successful prosecution of Straitiff. 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 Paralegal for Chicago Law Firm Admits Embezzling Bankruptcy Estate FundsRead the Press Release
CHICAGO — A former paralegal for a Chicago law firm has pleaded guilty to a federal fraud charge for embezzling more than $600,000 from bankruptcy estate accounts.
BECKY LOUISE SUTTON fraudulently embezzled the funds from 2009 to 2018 while working on bankruptcy matters for the law firm. Sutton admitted in a plea agreement that she embezzled money from more than 40 bankruptcy estate accounts and several liquidating trust accounts in Chapter 7 and Chapter 11 matters on which she worked. Sutton orchestrated fraudulent transfers of bankruptcy funds from fiduciary bank accounts intended for creditors to accounts she controlled, including her personal bank account, credit card account, student loan account, and mortgage account. In one instance, Sutton used a company with a name similar to a true creditor to disguise her fraudulent diversion of the funds. Sutton admitted in the plea agreement that her conduct victimized not only the creditors, but also her law firm, a partner at the firm for whom she worked, and the U.S. Trustee Program, among others.
Sutton, 67, of Austin, Texas, and formerly of Park Forest, Ill., pleaded guilty on Dec. 14, 2023, to a charge of wire fraud. The conviction is punishable by up to 20 years in federal prison. U.S. District Judge Mary M. Rowland set sentencing for April 2, 2024, at 11:00 a.m.
The guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the U.S. Trustee Program. The government is represented by Assistant U.S. Attorney Kartik K. Raman.
Sutton plea agreementFormer Alabama Department of Corrections Lieutenant Sentenced for Civil Rights and Obstruction Offenses for Assaulting a Restrained Inmate and Lying to Cover It UpRead the Press Release
BIRMINGHAM, Ala. – A former Alabama Department of Corrections (ADOC) lieutenant, Mohammad Shahid Jenkins, 52, was sentenced today to 87 months in prison followed by three years of supervised release for using excessive force on an inmate and lying afterwards in an official report in an attempt to cover up his abuse. He previously pleaded guilty to these offenses on Sept.12.
“Lieutenants and Shift Commanders set the tone for less experienced officers whom they supervise,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Jenkins abused his position of power to commit an egregious assault on a restrained inmate, in an isolated location of the prison, over the course of five minutes. He is being held accountable for his actions, and the Justice Department will continue to hold accountable law enforcement officers who violate the civil rights of every American, including those who are incarcerated.”
“Corrections officers have the responsibility to ensure the safety and security of those incarcerated in our nation’s prisons,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “The physical abuse of prisoners in violation of the Constitution threatens the safety of the entire institution, officers and inmates alike. We will continue to work with our law enforcement partners to investigate and prosecute corrections officers who abuse inmates and violate positions of public trust.”
“This sentence sends a strong message that the FBI remains committed to protecting the civil rights of all people, including those in prison custody,” said Special Agent in Charge Carlton L. Peeples of the FBI Birmingham Field Office. “This individual's conduct is not reflective of the honor and professionalism with which the men and women of law enforcement exemplify. The FBI Birmingham Division is proud to work alongside the Civil Rights Division and ADOC to bring justice to these victims and remain steadfast in addressing all Color of Law allegations.”
According to court documents and evidence introduced at sentencing, Jenkins, former William E. Donaldson Correctional Facility Lieutenant and Shift Commander, who had more than 20 years of experience in law enforcement, used excessive force on inmate V.R. Specifically, on Feb. 16, 2022, Jenkins willfully deprived inmate V.R. of his right to be free from excessive force by kicking him, hitting him, spraying him with chemical spray, striking him with a can of chemical spray and striking him with a shoe, while V.R. was restrained inside of a holding cell and not posing a threat.
Over the course of approximately five minutes and outside the presence of other officers and inmates, Jenkins repeatedly re-entered the holding cell that V.R. was in and re-assaulted him numerous times. Jenkins used a dangerous weapon — chemical spray and the can of chemical spray — on V.R., and his attacks on V.R. caused V.R. to suffer bodily injury. Following his assault on V.R., Jenkins authored a false incident report and later Jenkins lied to investigators by denying using any force on V.R.
As part of the plea agreement, Jenkins also admitted that he used unlawful force on another inmate on a separate occasion at Donaldson. Specifically, on Nov. 29, 2021, Jenkins willfully deprived inmate D.H. of his right to be free from excessive force by repeatedly spraying D.H. with chemical spray while D.H. was handcuffed behind his back and compliant, by hitting D.H. in the head with the can of chemical spray and by delivering an open-hand strike to D.H.’s head while he was suffering from the effects of chemical spray.
The FBI Birmingham Field Office investigated the case with the assistance of ADOC’s Law Enforcement Services Division.
Assistant U.S. Attorney George Martin for the Northern District of Alabama and Trial Attorney Anna Gotfryd of the Civil Rights Division’s Criminal Section prosecuted the case.
Former Alabama Department of Corrections Lieutenant Sentenced for Civil Rights and Obstruction Offenses for Assaulting a Restrained Inmate and Lying to Cover It UpRead the Press Release
A former Alabama Department of Corrections (ADOC) lieutenant, Mohammad Shahid Jenkins, 52, was sentenced today to 87 months in prison followed by three years of supervised release for using excessive force on an inmate and lying afterwards in an official report in an attempt to cover up his abuse. He previously pled guilty to these offenses on Sept 12.
“This defendant was a lieutenant with more than 20 years of experience and a supervisor who was supposed to set an example of what proper law enforcement looks like for the less experienced officers he oversaw,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Instead, the defendant abused his position of power to repeatedly and viciously assault a restrained inmate, returning to the inmate’s cell several times to renew the assault. We are committed to holding accountable law enforcement officers who violate the civil rights of any American, including those who are incarcerated in our jails and prisons.”
“Corrections officers have the responsibility to ensure the safety and security of those incarcerated in our nation’s prisons,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “The physical abuse of prisoners in violation of the Constitution threatens the safety of the entire institution, officers and inmates alike. We will continue to work with our law enforcement partners to investigate and prosecute corrections officers who abuse inmates and violate positions of public trust.”
“This sentence sends a strong message that the FBI remains committed to protecting the civil rights of all people, including those in prison custody,” said Special Agent in Charge Carlton L. Peeples of the FBI Birmingham Field Office. “This individual's conduct is not reflective of the honor and professionalism with which the men and women of law enforcement exemplify. The FBI Birmingham Division is proud to work alongside the Civil Rights Division and ADOC to bring justice to these victims and remain steadfast in addressing all Color of Law allegations.”
According to court documents and evidence introduced at sentencing, Jenkins, former William E. Donaldson correctional facility lieutenant and shift commander, who had more than 20 years of experience in law enforcement, used excessive force on inmate V.R. Specifically, on Feb. 16, 2022, Jenkins willfully deprived inmate V.R. of his right to be free from excessive force by kicking him, hitting him, spraying him with chemical spray, striking him with a can of chemical spray and striking him with a shoe while V.R. was restrained inside of a holding cell and not posing a threat.
Over the course of approximately five minutes and outside the presence of other officers and inmates, Jenkins repeatedly re-entered the holding cell that V.R. was in and re-assaulted him numerous times. Jenkins used a dangerous weapon — chemical spray and the can of chemical spray — on V.R., and his attacks on V.R. caused V.R. to suffer bodily injury. Following his assault on V.R., Jenkins authored a false incident report and later Jenkins lied to investigators by denying using any force on V.R.
As part of the plea agreement, Jenkins also admitted that he used unlawful force on another inmate on a separate occasion at Donaldson. Specifically, on Nov. 29, 2021, Jenkins willfully deprived inmate D.H. of his right to be free from excessive force by repeatedly spraying D.H. with chemical spray while D.H. was handcuffed behind his back and compliant, by hitting D.H. in the head with the can of chemical spray and by delivering an open-hand strike to D.H.’s head while he was suffering from the effects of chemical spray.
The FBI Birmingham Field Office investigated the case with the assistance of ADOC’s Law Enforcement Services Division.
Assistant U.S. Attorney George Martin for the Northern District of Alabama and Trial Attorney Anna Gotfryd of the Civil Rights Division’s Criminal Section prosecuted the case.
Florida man sentenced to prison in India-based computer hacking scheme that stole $150,000 from elderly Kalispell womanRead the Press Release
MISSOULA — A Florida man who admitted his role in an India-based computer hacking scheme that stole $150,000 from an elderly Kalispell woman was sentenced today to two years and nine months in prison and ordered to pay $1,236,470 in restitution to seven victims, U.S. Attorney Jesse Laslovich said.
Eddly Joseph, 44, of Gainesville, Florida, pleaded guilty in August to wire fraud.
U.S. District Judge Donald W. Molloy presided. The court also imposed two years of supervised release following Joseph’s prison sentence.
“Far too often, these internationally-based fraud schemes result in no accountability for those who prey on Montanans. But not this time. Due to the diligent work of the FBI, Joseph was caught and is now going to federal prison for running a predatory scheme by tricking and stealing from elderly victims across the country, including a Kalispell woman. As this case showed, we will turn over every rock to pursue these fraudsters, but the best thing Montanans can do to protect themselves is to not send money to people who randomly call soliciting money due to some kind of fake emergency, such as an alleged virus existing on your computer,” U.S. Attorney Laslovich said.
The government alleged in court documents that in February, Glacier Bank notified the FBI that Jane Doe, a Montana woman in her 70s, was the victim of a scam. The international, India-based scam included fraudsters tricking Jane Doe into giving them $150,000 for “safe-keeping.” The fraudsters made it appear as if victims had a virus on their computers and that their bank accounts were accessible to hackers. To “safekeep” the victims’ money, Joseph and others directed victims to withdraw cash and give it to them so the hackers could not access and steal the victims’ money. After learning of the scam, the FBI set up a ruse, claiming Jane Doe had an additional $50,000 for the fraudsters. When Joseph and others arrived to collect the money, the FBI arrested them. As a result of Joseph’s and others’ conduct, victims across the United States were repeatedly scammed, with a total loss of $1,236,470.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case. The FBI and Flathead County Sheriff’s Office conducted the investigation.
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Florida Siblings Charged in Multimillion-Dollar Medicare Scheme Based on Fraudulent Billing for Durable Medical EquipmentRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Naomi Gruchacz, the Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services - Office of Inspector General (“HHS-OIG”), announced today the arrests of ERIN FOLEY and TED ALBIN on charges of health care fraud and conspiracy to violate the Anti-Kickback Statute. As alleged in a four-count Indictment unsealed today in federal court, FOLEY and ALBIN ran a Medicare billing company that they used to bill Medicare for more than $25 million in fraudulent claims for durable medical equipment (“DME”), and on which Medicare and related private insurers paid out more than $9 million. FOLEY and ALBIN are also charged with illegally buying such DME orders for use in their own DME supply companies and with introducing buyers to sellers in return for additional kickbacks.
FOLEY is expected to be presented later today before U.S. Magistrate Judge William Matthewman in West Palm Beach, Florida. ALBIN is expected to be presented this afternoon before U.S. Magistrate Judge Shaniek M. Maynard in Fort Pierce, Florida. The case was assigned to U.S. District Judge John G. Koeltl in Manhattan.
U.S. Attorney Damian Williams said: “Medicare is a valuable taxpayer-funded program designed to provide affordable health care to people over 65 or with disabilities, not to line the pockets of those who would enrich themselves through fraud. Here, the defendants are charged with illegally profiting from the purchase and sale of millions of dollars’ worth of bogus orders for medical equipment, bilking Medicare in the process. Such illicit conduct can affect the availability of medical services and drive up the cost of health care, but the career prosecutors of this office and our law enforcement partners will remain diligent in protecting these vital taxpayer-funded programs.”
HHS-OIG Special Agent in Charge Naomi Gruchacz said: “Violations of the Anti-Kickback Statute involving durable medical equipment can waste scarce federal health care program funds and corrupt the medical decision-making process. Individuals who participate in the federal health care system are required to obey laws meant to preserve both the integrity of program funds and the provision of appropriate, quality services to patients.”
According to statements made in court and publicly filed documents in this case:[1]
From at least 2018 through 2021, FOLEY and ALBIN owned and controlled Grapevine Professional Services, Inc. (“Grapevine”), a billing company that they used to bill Medicare for more than $25 million, and to collect more than $9 million, through claims based on orders for DME that had been unlawfully sold and bought. Such billing included both billing directly to Medicare through Medicare Part B and billing to private insurance companies that were reimbursed through Medicare Part C. Most of these unlawful purchases of DME orders were by Grapevine customers that were registered with Medicare as DME supply companies. Additional unlawful purchases were made directly by FOLEY and ALBIN through three DME supply companies that they themselves owned and controlled. Once these DME orders were unlawfully purchased, FOLEY and ALBIN used those orders as the basis for fraudulent claims to Medicare and to private insurers covered by Medicare Part C.
In addition, FOLEY and ALBIN acted essentially as brokers of DME orders, introducing Grapevine customers who wished illegally to buy DME orders to co-conspirators who illegally sold them orders. In return for such introductions of buyers to sellers, FOLEY and ALBIN received additional kickbacks, both in the form of cash and in the form of additional DME orders. FOLEY and ALBIN also profited through these introductions by gaining additional illegal billing business for Grapevine. Following these introductions, FOLEY and ALBIN continued to oversee the relations between buyers and sellers of DME orders, for example by tracking how many orders particular sellers owed to particular buyers.
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FOLEY, 46, of Loxahatchee, Florida, and ALBIN, 46, of Stuart, Florida, are each charged with conspiracy to commit health care fraud and wire fraud, which carries a maximum sentence of 20 years in prison; health care fraud, which carries a maximum sentence of 10 years in prison; wire fraud, which carries a maximum sentence of 20 years in prison; and conspiracy to violate the Anti-Kickback Statute, which carries a maximum sentence of five years in prison.
The maximum potential penalties 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 HHS-OIG.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys David Raymond Lewis and Rushmi Bhaskaran are in charge of the prosecution.
The charges contained in the Indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Federal Jury Convicts U.S. Customs and Border Protection Officer of Depriving a U.S. Citizen of RightsRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Gilberto Carreon Jr., Special Agent in Charge of Customs and Border Protection, Office of Professional Responsibility in El Paso, Texas, announced today that a federal jury returned two guilty verdicts against Oscar Orrantia after five hours of deliberation. The jury convicted Orrantia on one count of deprivation of a right and one count of falsification of records. Judge Margaret I. Strickland presided.
A federal grand jury issued a Second Superseding Indictment accusing Orrantia of two felony offenses on Nov. 15, 2023. According to evidence presented at trial and other publicly available court records, on June 18, 2019, Orrantia, who was then an officer with Customs and Border Protection (CBP), was checking travelers who were coming into the United States via the Columbus Port of Entry. A 63-year-old male United States Citizen, who is identified as John Doe in the indictment, entered the primary inspection area. John Doe lived in Deming, New Mexico and often traveled to Mexico to run errands. When John Doe pulled up to primary, he complained in Spanish that it was hot outside. Orrantia responded that John Doe should not cross the border. John Doe then declared that he was bringing pills and handed a package to Orrantia. At some point, John Doe tried to look at Orrantia’s name tag. Orrantia testified when this happened, he thought John Doe was going to make a complaint against him. Switching to English, Orrantia repeatedly and in swift succession demanded to know if John Doe was threatening him.
At trial, experts testified that Orrantia’s conduct escalated the encounter. Two different experts testified that officers with CBP are trained in de-escalation techniques.
Instead of deescalating, Orrantia ordered John Doe to get out of the vehicle but gave him no time to comply. Instead, Orrantia reached into the vehicle to forcibly unbuckle John Doe’s seatbelt. Once out of the vehicle, Orrantia turned John Doe to face away from him and told John Doe that he was going to knock him down. Two seconds later, Orrantia made good on his threat, resulting in John Doe hitting his head against a nearby brick barrier. Orrantia proceeded to take John Doe all the way to the ground, although Orrantia himself admitted that he could have handcuffed John Doe while he was still standing. While John Doe was handcuffed and face down on the ground, Orrantia told another officer that that John Doe was “fucking being a dick,” and was resisting when told to get out of the vehicle.
An expert with CBP with the Less Lethal Training Branch opined that the take-down maneuver used by Orrantia was not a technique taught by CBP, and that there was not enough space to do a proper take-down in the first place. That same expert opined that Orrantia had acted contrary to his training during the encounter.
John Doe sustained bruising to his body and head as a result. A paramedic testified that John Doe had a hematoma, and an emergency room doctor who saw John Doe two days later testified that John Doe had bruising and discoloration of the skin which was consistent with a blunt force trauma injury. After John Doe was checked by paramedics, he was free to go. There was no indication he had committed any crime when he attempted to enter the United States.
Following the incident, Orrantia wrote a report that contained numerous false statements including allegations that John Doe had thrown the package he was declaring at Orrantia. At trial, video footage disproved this claim, depicting John Doe handing the package to Orrantia.
Orrantia also claimed that John Doe twice stated he was not going to get out of the vehicle. The same footage captured audio from the entire interaction and proved that John Doe in fact asked Orrantia to let him take off his seatbelt first. Orrantia’s own use of force expert admitted that the report contained false statements.
“Those that wear the badge are expected to treat members of the public they serve with the utmost dignity and respect,” said U.S. Attorney Uballez. “When an officer abuses their position, they erode the trust of the community we serve. We will scrupulously investigate, and vigorously prosecute, those who abuse the public trust and then try to cover up their misdeeds. The uniform will not protect you from justice.”
“The success of this investigation demonstrates the critical importance of fostering collaboration between law enforcement professionals,” said Special Agent in Charge Carreon. “The efforts rendered by all led to Officer Orrantia’s conviction and the continued accountability of those entrusted to serve the public.”
Orrantia will remain on conditions of release pending sentencing, which has not been scheduled. At sentencing, Orrantia faces up to 10 years in prison for deprivation of rights and up to 20 years in prison for falsifying records.
This case was investigated by Customs and Border Protection Office of Professional Responsibility (CBP OPR) with assistance from the Federal Bureau of Investigation, CBP Law Enforcement Safety & Compliance Less Lethal Training Branch, CBP Office of Assistant Chief Counsel, Department of Homeland Security, Office of Inspector General (DHS OIG) and the United States Marshals Service. Assistant U.S. Attorneys Marisa Ong and Eliot Neal are prosecuting this case.
View the Second Superseding Indictment# # #
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EDVA Collects over $25M for Crime Victims and Taxpayers in Fiscal Year 2023Read the Press Release
ALEXANDRIA, Va. – U.S. Attorney Jessica D. Aber announced today that the U.S. Attorney’s Office for the Eastern District of Virginia (EDVA) collected over $25 million in criminal and civil actions in Fiscal Year (FY) 2023.
Of the $25 million amount collected, roughly $16.9 million was collected in criminal actions and $ 5.7 million was collected in civil actions pursued independently by EDVA.
Additionally, EDVA worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect $3.1 million in cases pursued jointly by these offices. Of this amount, $513,031 was collected in criminal actions and over $2.5 million was collected in civil actions.
The U.S. Attorneys’ Offices, along with the Department of Justice’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. In FY 2023, the U.S. Attorney’s Office in EDVA collected over $16,254,828.05 in restitution for crime victims. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Forfeited assets are either deposited into the Department of Justice Assets Forfeiture Fund or are used to restore funds to crime victims. Assets deposited into the Assets Forfeiture Fund are used for a variety of law enforcement purposes. EDVA cases that resulted in significant forfeiture this past year include USA vs. Gao et al— where defendants agreed to forfeit four vehicles, over $130,000 in U.S. currency, numerous items of jewelry, a gold bar, and three personal residences, with a combined value totaling over $1 million— and USA v. Xizhi Li, et al, where defendant Jianxing Chen was ordered to forfeit $6 million after laundering millions of dollars of drug proceeds on behalf of international drug trafficking organizations
U.S. Attorney Aber extends her gratitude to the attorneys and staff in EDVA’s Asset Recovery Unit, who are responsible for ensuring that these significant funds are recovered in full to victims and the public fisc.
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.
District Man Found Guilty on 10 Counts Related to Drug Trafficking and Firearms OffensesRead the Press Release
WASHINGTON – Antonio Christian Payne, 30, of Northeast Washington D.C. was found guilty by a federal jury today on 10 felony charges related to drug trafficking and firearms offenses in the District of Columbia.
The jury verdict, which followed a five-day trial in U.S. District Court, was announced by U.S. Attorney Matthew M. Graves, Special Agent-in-Charge Craig Kailimai of the Washington Field Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Chief Pamela Smith of the Metropolitan Police Department.
Payne remains held pending his sentencing before the Honorable Tanya S. Chutkan scheduled for Apr. 17, 2024.
According to the government’s evidence, MPD launched an investigation into Payne’s activities on Apr. 18, 2022, following a daylight drive-by shooting near Payne’s stash house at 2430 Baldwin Cres, NE.
The shooter apparently had targeted Payne’s cousin, who had escaped without injury. Officers responded to the scene within minutes and were let into the home where Payne and his cousin were staying, where they attempted to investigate the shooting and determine if Payne’s cousin needed medical aid. At the same time, officers and detectives canvassed the area for witnesses and ultimately reviewed surveillance footage which revealed that minutes prior to the drive-by, Payne had brandished a firearm at the suspect who later did the shooting after that suspect had attempted to access Payne’s car and garage, both of which were later found to have narcotics and ammunition in them.
On discovering this information, officers seized the residence and applied for an emergency search warrant, which they obtained that evening. During their search, officers recovered six firearms (one ghost rifle, one .22 caliber rifle, and four semi-automatic 9mm pistols), sundry rounds of ammunition of various calibers, magazines, firearms-accessories (including a ballistic vest designed to withstand rifle-rounds), almost 750 grams of fentanyl, 240 grams of cocaine powder, 175 grams of cocaine base, 130 grams of methamphetamine, 12 kilograms of marijuana, and dozens upon dozens of oxycodone pills, along with nearly $30,000 in U.S. currency.
The jury today found Payne guilty of unlawful possession with intent to distribute 400 grams or more of fentanyl; unlawful possession with intent to distribute 50 grams or more of methamphetamine; unlawful possession with intent to distribute marijuana; unlawful possession with intent to distribute cocaine hydrochloride; unlawful possession with intent to distribute cocaine base; unlawful possession with intent to distribute Oxycodone; unlawful opening and maintenance of a premises to manufacture and distribute a controlled substance; using, carrying, and possession of a firearm in furtherance of a drug trafficking offense; using carrying, and possession of a firearm during and in relation to a drug trafficking offense; and carrying a pistol without a license.
In announcing the verdict, U.S. Attorney Graves, SAC Kailimai, and Chief Smith, applauded the work of MPD officers and detectives and commended the ATF Special Agents who subsequently investigated the case.
This case was prosecuted by Assistant U.S. Attorneys Will Hart and Solomon Eppel of the Violence Reduction and Trafficking Offenses Section. Valuable assistance was provided by paralegal Peter Gaboton, Assistant U.S. Attorney Josh Gold, and former Special Assistant U.S. Attorney Mike Engallena who assisted in the investigation and charging of this case. Graves, Kailimai, and Smith also praised Leif Hickling and Charlie Bruce of LitTech, and VRTO supervisory paralegal Mary Downing for their assistance on this case.
Dallas County individuals indicted in investment fraud and money laundering schemeRead the Press Release
PLANO, Texas – Three individuals have been indicted for federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Marina Brooks, 67; Charles “Chuck” Brooks, 71; and Crystal Brooks, 35, were named in the two-count indictment returned by a federal grand jury on Dec. 14, 2023, in the Eastern District of Texas. The indictment charges the defendants with conspiracy to commit wire fraud and conspiracy to commit money laundering. The defendants made their initial appearances today before U.S. Magistrate Judge Kimberly C. Priest Johnson.
The defendants are alleged to have engaged in a large-scale investment fraud scheme targeting individuals in the Mexican-American community. According to the indictment, the defendants and their co-conspirators fraudulently solicited “investments” for a multitude of schemes, such as concert series and cryptocurrency-related projects. Through marketing seminars, radio advertisements, and in-person meetings, the defendants fraudulently represented that these investment opportunities would yield significant returns relative to market standards. However, the defendants are alleged to have transferred the victim investor funds to other business and personal accounts, took out commissions and cash withdrawals, and lost over 95% of the funds taken from victim investors. In all, the defendants fraudulently took at least $9.5 million from at least 100 victim investors.
If convicted, the defendants each face up to 20 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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DOJ Unseals Charges Against Iranian and Chinese Nationals for Procurement Fraud Involving the Acquisition of Components for Drones on Behalf of the Iranian GovernmentRead the Press Release
WASHINGTON - Today, the Department of Justice unsealed an indictment charging two men - Iranian National Hossein Hatefi Ardakani (“Ardakani”) and Chinese National Gary Lam - with crimes related to the procurement of U.S.-manufactured dual-use microelectronics for Iran. Concurrent with this unsealing, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated Ardakani and Lam, also identified by OFAC as Lin Jinghe, as well as two other individuals and 10 entities involved in the procurement network used by Ardakani in support of the Islamic Revolutionary Guard Corps Aerospace Force Self Sufficiency Jihad Organization’s one-way attack unmanned aerial vehicle (“UAV” or drone) program.
The indictment alleges that between at least September 2014 and September 2015, Ardakani and Lam, who was based in China and Hong Kong, as well as other associates, conspired to illegally purchase and export from the United States to Iran dual-use microelectronics that are commonly used in UAV production, including high electron mobility transistors (HEMTs), monolithic microwave integrated circuit (MMIC) power amplifiers, and analog-to-digital converters. Each of these components is subject to U.S. export controls for anti-terrorism, national security, and regional stability reasons.
“Today’s announcements show that we remain focused on disrupting the efforts of Iran and its agents to circumvent U.S. sanctions in support of Iran’s weapons programs, including its drone program, which have been used to support and supply terrorist organizations and other foreign adversaries – such as Russia – around the globe,” said U.S. Attorney Matthew M. Graves. “This whole-of-government approach is one more step in stopping the acquisition of drones for nefarious purposes such as attacks on innocent civilians and civilian infrastructure.”
“Today’s coordinated action with the Treasury Department demonstrates the Justice Department’s commitment to keeping military-grade equipment out of the hands of the Iranian regime,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We will aggressively investigate, disrupt, and hold accountable criminal networks that supply sensitive technology to hostile and repressive governments in contravention of U.S. sanctions.”
“U.S. technology has zero place in Iranian UAVs,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod for the Department of Commerce. “As these allegations demonstrate, those who procure dual-use microelectronics for the Islamic Revolutionary Guard Corps will be held accountable.”
“Ardakani and his co-conspirators crafted a sophisticated web of front companies to obscure the illicit acquisition of U.S. and foreign technology to procure components for deadly UAVs,” said Special Agent in Charge Michael J. Krol, of Homeland Security Investigations’ New England Office. “These very components have been found in use by Iran’s allies in current conflicts, including in Ukraine. The disruption of these criminal networks by Homeland Security Investigations means that hundreds of thousands of critical UAV components will never again be used for malign purposes.”
The indictment further alleges that on four separate occasions Ardakani and his co-conspirators used a web of foreign companies to accomplish their obfuscation and evasion efforts. For example, between June and September 2015, Ardakani and Lam caused an unwitting French company to purchase from a U.S. company several pieces of analog-to-digital converters with applications in wireless and broadband communications, radar and satellite subsystems, multicarrier, multimodal cellular receivers, antenna array positioning, and infrared imaging. Lam then caused a division of the French company to ship the analog-to-digital converters to Hong Kong, where they were reexported to Iran. A variation of this tactic – involving witting and unwitting companies in Canada, Hong Kong, and China – was used on the other three occasions.
In addition to the indictment, a separate seizure action targeting Nava Hobbies SDN BHD (“Nava Hobbies”) and its property was unsealed today. Nava Hobbies is one of the 10 entities designated by OFAC in its action announced today. The funds are subject to seizure based on violations of U.S. law, including U.S. economic sanctions targeting Iran and money laundering violations. The seizures, totaling nearly $600,000, aim to further degrade this network’s ability to procure UAV components. Proceedings involving this property remain ongoing.
This case is being investigated by the FBI’s Detroit Field Division, led by Special Agent in Charge Cheyvoryea Gibson, Homeland Security Investigations (HSI), the Department of Commerce, Bureau of Industry and Security (BIS), and the Defense Criminal Investigative Service (DCIS).Homeland Security Investigations (HSI), the Department of Commerce, Bureau of Industry and Security (BIS), and the Defense Criminal Investigative Service (DCIS).
The case is being prosecuted by Assistant U.S. Attorney Jolie Zimmerman of the U.S. Attorney’s Office for the District of Columbia, with valuable assistance from Assistant U.S. Attorney Sean Heiden of the U.S. Attorney’s Office for the District of Columbia and Trial Attorneys Heather Schmidt and Brendan Geary of the Counterespionage and Export Control Section of the Justice Department’s National Security Division.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
D.C. Man Charged with Killing Two BrothersRead the Press Release
WASHINGTON – Ronzoni Allen Jackson Jr., 24, of the Washington, D.C. area, was arrested yesterday on charges of first degree murder while armed stemming from the shooting homicides of two brothers - 28-year-old Octavio and 35-year-old Osmine Quintano - just after midnight, on Tuesday, December 12, 2023, near The Pollo Company at 2314 4th Street NE,
U.S. Attorney Matthew M. Graves announced.
Defendant Jackson was arraigned on two counts of premeditated first degree murder while armed in D.C. Superior Court, Courtroom C-10, where he entered a plea of not guilty. The Honorable Magistrate Judge Judith Pipe found probable cause that the defendant committed the two murders and held him without bond pending his preliminary hearing on January 2, 2024 at 9:30 a.m., before Judge Epstein in Courtroom 233.
An arrest on a complaint is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the arrest, U.S. Attorney Graves commended the work of those investigating the case from the Metropolitan Police Department (MPD) and Assistant United States Attorney Sarah Santiago for her efforts in prosecuting this case.
Colorado Man Arrested for Attempting to Provide Material Support to ISISRead the Press Release
Humzah Mashkoor, 18, of Westminster, Colorado, is charged with attempting to provide material support to a designated foreign terrorist organization and made his initial appearance in federal court today.
According to court documents, Mashkoor was arrested on Monday, Dec. 18 at the Denver International Airport before he could board a flight for the first leg of an overseas trip. According to the affidavit in support of the criminal complaint, Mashkoor was traveling to the United Arab Emirates, where he intended to stay until he continued on to either Afghanistan or Syria to serve as a fighter for ISIS.
The FBI Denver Field Office is investigating this case.
Assistant U.S. Attorney Laura Cramer-Babycz for the District of Colorado is prosecuting the case, with the assistance of Jennifer Levy of the National Security Division’s Counterterrorism Section.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Colombian national sentenced to 25 years in federal prison in drug trafficking conspiracyRead the Press Release
SHERMAN, Texas – A Colombian national has been sentenced to 25 years in federal prison for drug trafficking violations, announced Eastern District of Texas U.S. Attorney Damien M. Diggs today.
Leonar Molina-Ferro, also known as Michel, 47, was convicted of conspiracy to manufacture and distribute more than five kilograms of cocaine knowing it would be imported and distributed in the United States. Molina-Ferro was sentenced to 300 months in federal prison on December 19, 2023, by U.S. District Judge Amos L. Mazzant.
According to information presented in court, Molina-Ferro was a cocaine trafficker who assisted a Colombian-based drug cartel responsible for distributing large quantities of cocaine via land, sea, and air throughout South and Central America. The bulk of these shipments were destined for the United States. Molina-Ferro’s primary role was to coordinate maritime shipments of cocaine from Colombia to Panama, Costa Rica, Nicaragua, and Honduras. In his role, he directed several persons to acquire, transport, and distribute ton quantities of cocaine. Molina-Ferro was arrested at the request of the United States for extradition at his apartment in Medellin, Colombia on August 14, 2018. During the arrest operation, Molina-Ferro opened fire on Colombian National Police Officers, wounding the first officer to make entry into the apartment. That officer was subsequently honored by the Drug Enforcement Administration and U.S. Attorney’s Office in the Eastern District of Texas for his bravery in the fight against narcotics trafficking. Molina-Ferro was subsequently extradited to the United States from Colombia on December 2, 2020.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the Drug Enforcement Administration and the North Texas OCDETF Strike Force and prosecuted by Assistant U.S. Attorney Wes Wynne. The Justice Department’s Office of International Affairs and the Narcotic and Dangerous Drug Section’s Judicial Attaché’s office at the U.S. Embassy in Bogota provided critical assistance in securing the arrest and extradition of Molina-Ferro.
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Collierville Man Pleads Guilty to Wire FraudRead the Press Release
Memphis, TN – A local commodity trader pled guilty in federal court yesterday to one count of wire fraud as part of a fraudulent commodities investment scheme. Donald Wray Rodgers, 55, operated an unregistered trading pool under the name Three Bridges Trading Fund. United States Attorney Kevin G. Ritz announced the guilty plea today.
According to information provided in court, Rodgers lied to investors about the money earned in the pool, providing them false fund performance statements and inflated investment returns. In fact, Rodgers’ trades were causing the fund to lose value each month. After less than one year in operation, Three Bridges Trading Fund was worthless, according to court documents. Rodgers’ criminal misrepresentations to his approximately fifty investors from around the United States led them to lose over $ 2,000,000 in the fund.
The FBI Memphis Field Office investigated this case.
Rodgers is set to appear before United States District Judge Thomas L. Parker for sentencing on March 21, 2024 at 1:30 pm. He faces a maximum penalty of 20 years in federal prison, a $250,000 fine, and three years of supervised release.
Assistant United States Attorney William C. Bateman III is prosecuting this case on behalf of the federal government.
Chula Vista Woman Admits Coordinating Alien Smuggling Through Otay Mesa Port of EntryRead the Press Release
NEWS RELEASE SUMMARY – December 19, 2023
SAN DIEGO – Ericka Aldana of Chula Vista pleaded guilty in federal court today, admitting that she managed all aspects of a human smuggling operation - from helping to place undocumented immigrants in trunks, to coaching drivers to successfully cross the Otay Mesa Port of Entry, to staging immigrants at a Chula Vista stash house, to helping transport them to their final destinations in the U.S.
Aldana admitted that she recruited at least five drivers, procured vehicles for their use, obtained passports for them, and coached them how to dress and how to answer questions by Customs and Border Protection officers. Aldana said she crossed the border in tandem with the drivers to direct them to what she considered the less risky border lanes.
Aldana acknowledged smuggling more than 25 aliens during a five-year span, some of whom paid as much as $10,000 to be smuggled into the United States.
“Ms. Aldana avoided getting caught for years, but she could not evade accountability forever,” said U.S. Attorney Tara K. McGrath. “Federal law enforcement brought a carefully choreographed network of cross-border human smuggling to justice today.”
“Human smuggling is a serious and dangerous offense,” said Sidney K. Aki, Director of Field Operations for Customs and Border Protection’s San Diego Field Office. “This effort was an outstanding demonstration of law enforcement partnership and commitment to dismantling criminal organizations that exploit vulnerable migrants for profit.”
“Human smuggling is driven by greed as the defendant demonstrated in this case,” said Chad Plantz, special agent in charge for HSI San Diego. “HSI and partnered law enforcement agencies will not stand for this deceitful and often violent act of human smuggling. We are committed to bringing down human smugglers one by one.”
The defendant is scheduled to be sentenced on March 15, 2024, at 9 a.m. before U.S. District Judge Cathy Ann Bencivengo.
This case is being prosecuted by Assistant U.S. Attorneys Julie A. Bauman and Michael A. Deshong.
DEFENDANTS Case Number 23cr2174-CAB
Ericka Aldana Age: 40 Chula Vista, California
SUMMARY OF CHARGES
Conspiracy to Bring in Aliens Without Presentation – Title 8, United States Code, Section 1324(a)(2)(B)(iii) and Title 18, United States Code, Section 371
Maximum penalty: Five years in prison and $250,000 fine
AGENCIES
Homeland Security Investigations
United States Customs and Border Protection
Chicago Businessman Convicted of Defrauding Financial Institutions out of $4 MillionRead the Press Release
CHICAGO — A federal jury has convicted a Chicago businessman of scheming to defraud multiple financial institutions out of $4 million.
DAVID IZSAK, 48, of Chicago, was a licensed real estate professional and the sole proprietor of Skokie, Ill.-based Premier Assets Inc. and Premier Properties Enterprises, Inc. From 2005 to 2018, Izsak engaged in a scheme to defraud financial institutions by obtaining residential loans through false statements, concealing the existence of unpaid loans, and falsely obtaining credit. As part of the scheme, Izsak submitted or caused to be submitted to the Cook County Recorder of Deeds fictitious lien releases. In reality, the releases were not from the lender and the loans were not paid in full. In one instance, after causing a lien to be released, Izsak sold the property to an unsuspecting buyer. In another instance, he obtained six mortgages on a single property, obtaining a new loan after fictitiously releasing the prior loan without repaying it. Izsak also obtained a loan to buy a 57-foot yacht known as the “Flying Lady” by submitting fraudulent tax returns and financial information to the lender. The yacht was seized in 2019 by federal authorities.
After a week-long trial in U.S. District Court in Chicago, the jury on Friday convicted Izsak on ten counts of financial institution fraud, each of which is punishable by up to 30 years in federal prison. U.S. District Judge Manish S. Shah set sentencing for July 9, 2024. The government at sentencing will seek forfeiture from Izsak of approximately $4 million.
The verdict was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, 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 government is represented by Assistant U.S. Attorneys Patrick J. King, Jr., and Elly M. Peirson.
Brockton Man Pleads Guilty to Fraudulently Obtaining More Than $1.5 Million in COVID-Relief FundsRead the Press Release
BOSTON – A Brockton man pleaded guilty today in federal court in Boston in connection with a scheme to submit false applications to obtain Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL) funds through the Small Business Administration (SBA) that were made available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Joao Mendes, 60, pleaded guilty to one count of wire fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for April 9, 2024. Mendes was charged in July 2022.
Beginning in or around June 2020 and continuing until at least in or around September 2020, Mendes submitted or caused to be submitted multiple fraudulent PPP and EIDL loan applications on behalf of various entities. The fraudulent PPP loan applications misrepresented the number of employees and the average monthly payroll expenses of Mendes’s various businesses. Mendes also submitted false tax records in support of his loan applications. In his EIDL applications, Mendes misrepresented the number of employees, gross revenues and costs of goods sold for each business. Based on the fraudulent applications, Mendes and others received more than $1.5 million in PPP and EIDL funds. Once Mendes received the funds, he either spent them for his own personal benefit—including for the purchase of cryptocurrency—or transferred the funds into other accounts he controlled or to other individuals.
The United States seized cryptocurrency and fiat currency from over 20 accounts, resulting in the recovery of $1.545 million in cryptocurrency and more than $206,000 in U.S. currency, which will be criminally forfeited.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain approved expenses, through the PPP. Another is the EIDL, through which the SBA offers loans that can only be used on certain permissible business expenses, which can include payment of fixed business debts, payroll, accounts payable, and other business-related expenses that could have been paid had the COVID-19 disaster not occurred. The American Rescue Plan Act established the RRF to provide funding to help restaurants and other eligible businesses keep their doors open through forgivable loans for eligible uses.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. 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; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Robert Manchak, Special Agent in Charge of the Federal Housing Finance Agency Office of Inspector General, Northeast Region; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Donald Alway, Assistant Director in Charge for the FBI’s Los Angeles Field Office; Weston King, Special Agent in Charge of the Small Business Administration Office of Inspector General, Western Region; Patricia Tarasca, Special Agent in Charge of the Federal Deposit Insurance Corporation Office of Inspector General, New York Regional Office; Tyler Hatcher, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Los Angeles Field Office; William A. Kalb, Special Agent in Charge of the U.S. Treasury Inspector General for Tax Administration, Northeast Field Division; and Brian Tucker, Special Agent in Charge, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, Eastern Region, made the announcement today. Assistant U.S. Attorneys Mackenzie A. Queenin and Carol E. Head of the Criminal Division and Trial Attorney Jennifer Bilinkas of the Criminal Division’s Fraud Section are prosecuting the case. Attorney Advisor Scott J. Campbell of the Criminal Division’s Money Laundering and Asset Recovery Section provided significant assistance.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Boston Man Pleads Guilty to Firearm and Ammunition OffenseRead the Press Release
BOSTON – A Boston man pleaded guilty today to unlawfully possessing a firearm and ammunition.
Victor Florentino, 27, pleaded guilty to one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Patti B. Saris scheduled sentencing for April 11, 2024. Florentino was indicted by a federal grand jury in August 2022.
In April 2022, during a motor vehicle stop in Quincy, Florentino was found in possession of a Glock 9mm pistol and 15 rounds of ammunition. Florentino is prohibited from possessing a firearm or ammunition due to a prior felony conviction in 2016 for firearms trafficking.
The felon in possession charge provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Quincy Police Chief Paul Keenan made the announcement today. Assistant U.S. Attorney John Dawley of the Organized Crime & Gang Unit 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.
Boston Man Indicted for Firearm, Ammunition and Drug OffensesRead the Press Release
BOSTON – A Boston man has been indicted by a federal grand jury for unlawfully possessing a firearm and ammunition and distributing cocaine.
Herbert Small, 22, was indicted with one count of being a felon in possession of a firearm and ammunition and two counts of distribution and possession with intent to distribute controlled substances. He was arraigned in federal court in Boston today. Small was previously charged by complaint on Oct. 24, 2023 and has remained in custody since his arrest on Nov. 7, 2023.
According to the charging documents, on Aug. 17, 2023, Small sold 25 grams of cocaine and two firearms – a .22 caliber revolver and a .40 caliber pistol with a magazine containing 11 rounds of ammunition – to a cooperating witness in Dorchester. On Oct. 16, 2023, Small again sold approximately 70 grams of cocaine base (commonly known as crack cocaine) to the same cooperating witness.
Small prohibited from possessing firearms and ammunition due to a previous federal drug conviction in 2017.
The charge of being a felon in possession of firearms and ammunition provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of $250,000. The charge of conspiracy to distribute and possess with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, at least three years of supervised release up to life and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Office. Valuable assistance was provided by the Boston Police Department. Assistant U.S. Attorneys Philip C. Cheng and Lucy Sun of the Office’s Organized Crime & Gang Unit are 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.
This operation 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. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Biloxi Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Gulfport, Miss. - A Biloxi man pled guilty to being in possession of more than 290 visual depictions of child pornography, announced U.S. Attorney Todd W. Gee and Acting Special Agent in Charge Eric DeLaune of Homeland Security Investigations (HSI) in New Orleans.
According to court documents, Christopher Lee Parker, 36, was identified in a child exploitation investigation in cyber tip reports coming from the National Center for Missing and Exploited Children. A federal search warrant obtained for Parker’s Biloxi residence resulted in the recovery of Parker’s cell phones, in which Parker, at times through mobile Apps, possessed approximately 291 visual depictions, in still and video formats, of minors, to include those who had not reached 12 years of age, engaging in sexually explicit conduct.
Parker is scheduled to be sentenced on April 11, 2024, at 9:30 a.m., in Gulfport. He faces a maximum penalty of 20 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by Homeland Security Investigations with assistance from the Mississippi Attorney General’s Office and the Biloxi Police Department.
Assistant U.S. Attorney Andrea Jones is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Billings woman sentenced to prison for six years for trafficking meth as part of large distribution ring based on Crow Indian ReservationRead the Press Release
BILLINGS — A Billings woman who admitted to trafficking methamphetamine as part of a large drug distribution ring based on the Crow Indian Reservation and was found with meth and a semi-automatic handgun during a traffic stop was sentenced today to six years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Nancy Michelle Hartsock, 36, pleaded guilty in August to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that Hartsock is one of approximately two dozen defendants related to a large-scale conspiracy centered on the distribution of meth on the Crow and Northern Cheyenne Indian reservations. On March 15, law enforcement conducted a traffic stop in Billings of a vehicle driven by Hartsock. In a subsequent search of her vehicle, officers found 28 grams of meth, drug paraphernalia and a firearm under the driver’s seat. Because she was on probation law enforcement searched her home and found a semi-automatic rifle and a small amount of meth.
Assistant U.S. Attorneys prosecuted the case. The FBI, Drug Enforcement Administration, Bureau of Indian Affairs, Bureau of Alcohol, Tobacco, Firearms and Explosives, Yellowstone County Sheriff’s Office, Billings Police Department, Montana Probation and Parole and Eastern Montana High Intensity Drug Trafficking Area Task Force conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Assault on dating partner sends Busby man to prisonRead the Press Release
BILLINGS — A Busby man who admitted hitting and injuring his dating partner on the Northern Cheyenne Indian Reservation was sentenced today to two years and nine months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Weston Francis Littlewhiteman, 31, pleaded guilty in August to assault resulting in substantial bodily injury to a dating or intimate partner.
U.S. District Judge Susan P. Watters presided.
The government alleged in court document that on Oct. 30, 2022, Littlewhiteman and the victim, identified as Jane Doe, were drinking at a house in Busby, on the Northern Cheyenne Indian Reservation. They argued, and Littlewhiteman left the home. Later that night. Jane Doe woke up and Littlewhiteman hit her in the face. Jane Doe was treated for injuries at the Indian Health Service in Lame Deer. At the time of the assault, Jane Doe and Littlewhiteman were dating partners.
The U.S. Attorney’s Office prosecuted the case. The Bureau of Indian Affairs and FBI conducted the investigation.
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Armed Career Criminal Facilitating the Sale of Firearms to Juveniles Sentenced to 18 YearsRead the Press Release
RALEIGH, N.C. – A Zebulon man was sentenced to 216 months in prison for illegally selling guns to juveniles. On April 13, 2023, Braxton Benton, age 34, pled guilty to engaging in the business of dealing in firearms without a license and aiding and abetting along with possession of ammunition by a convicted felon. He has previous convictions for several common law robberies and drug violations.
“Trafficking guns to kids is a fast-track to federal prison,” said U.S. Attorney Michael Easley of the Eastern District of North Carolina. “This felon got a straw purchaser to buy guns and report them stolen, then he sold them to juveniles. Guns bought at a North Carolina Cabela’s turned up on a kid in Connecticut in less than a month. We are bringing federal resources to target the gunrunners and straw purchasers arming children and fueling violence in our communities. ”
According to court documents and other information presented in court, Benton’s codefendant, Takara Wilson, reported the theft of five handguns from her car November 10, 2021 and claimed that the guns had been taken on October 28, 2021, but she had been too busy to report the theft. An investigation into the reported theft found that Wilson had purchased three of the guns from a Cabela’s in Garner on November 6, 2021, over a week after Wilson claimed they had been stolen.
Surveillance video from the store showed Benton with Wilson together. On December 3, 2021, two of the firearms that Wilson reported stolen were found during the search of a juvenile’s residence in New Haven, Connecticut based on the juvenile being involved in multiple incidents involving firearms over a three-month period. The investigation revealed that Benton had used Wilson to purchase several firearms for him that he later sold without a license. On January 18, 2022, during a traffic stop, Benton was found in possession of 28 grams of marijuana and a loaded, Polymer80 “Ghost Gun” that was neither registered nor contained a serial number, making it extremely difficult to trace. There were also text messages on Benton’s phone indicating he was attempting to sell the Polymer80 gun.
Takara Wilson was sentenced to 13 months imprisonment followed by 3 years of supervised release for engaging in the business of importing, manufacturing, or dealing in firearms without a license on June 16, 2023.
The indictment of both Wilson and Benton was originally announced in July of 2022 as part of the Raleigh Violent Crime Action Plan (VCAP). VCAP is an approach that draws on close partnerships among federal, state, and local law enforcement, as well as the community, to combat violence. The initiative brings state and federal prosecutors together to prioritize the review of gun crime cases and identify and prosecute repeat offenders and criminal organizations as well as identifying and stopping the sources of guns. Law enforcement partners use inter-agency coordination and intelligence-led policing, analyzing crime data to deploy resources where they are most needed and leveraging federal Task Force officers to bring federal technology to address local gun violence.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Raleigh Police Department investigated the case and Assistant U.S. Attorney Ashley Foxx prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-153-1D.
Arizona Woman, Two Codefendants Sentenced for Human Smuggling DeathRead the Press Release
EL PASO, Texas – The third member of a group charged in a human smuggling case was sentenced today in a federal court in El Paso to 135 months in prison for her role in an ongoing conspiracy which resulted in the death of two migrants.
According to court documents, Guadalupe Quezada, 35, of Mesa, Arizona, along with codefendants Veronica Quezada, 39, of Mesa, and Elizabeth Miranda Lozano, 39, of Dallas, actively participated in an ongoing conspiracy to bring in, transport, and harbor undocumented immigrants into the U.S. from Mexico from on or about November 2019 through on or about August 2021. The organization smuggled groups of migrants into the U.S. by traversing the border across the Chihuahuan Desert near Van Horn. Foot guides would direct the migrants to walk through the desert and rendezvous with drivers who then transport the immigrants to stash houses or staging areas for further harboring by stash house operators. During the time of the conspiracy, the organization twice abandoned migrants who were unable to keep pace with the group. An investigation revealed that the abandonment of the migrants under the harsh conditions resulted in their deaths.
Guadalupe Quezada would receive human smuggling proceeds in bulk as well as through financial institutions and redirect them to promote the human smuggling and to invest in real property. In addition to imprisonment, she also forfeits three Phoenix properties. Guadalupe Quezada and her two codefendants each pleaded guilty to one count of conspiracy to bring an alien to the United States resulting in death.
“The dangerous smuggling of human beings across our border has become far too prevalent and those engage in or facilitate this activity must account for their deadly dealings,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “I commend the joint multi-district efforts of our local, state, and federal partners to bring this case to a successful close. We will continue working together at all levels of law enforcement to aggressively prosecute human smugglers as long as their operations persist.”
“As demonstrated by these defendants, human smugglers have a callous disregard for the value of life,” said Special Agent in Charge Francisco B. Burrola for Homeland Security Investigations El Paso Division. “Tragically, their inhumane practices all too often result in serious injury or death. HSI will continue to work closely with our law enforcement partners to aggressively pursue transnational criminal organizations that jeopardize the lives of others for their personal profit."
Veronica Quezada was sentenced to 63 months in federal prison on Dec. 13. Her role was to provide logistical support to foot guides, drivers and others by registering vehicles that would be used to facilitate the human smuggling venture. She traveled daily to the U.S. from Mexico to oversee operations on behalf of the organization.
Lozano was sentenced to 97 months in federal prison on Dec. 13. Her role was to transport and harbor aliens in staging areas prior to releasing them to their final destination. She relocated to Dallas from Arizona to manage the stash house on behalf of the organization.
HSI investigated the case with the assistance of the U.S. Border Patrol Big Bend and Tucson Sectors, Dallas Enforcement Removal Operations, the Drug Enforcement Administration, Texas Department of Public Safety, Dallas Police Department, and Hudspeth Country Sheriff’s Office.
Assistant U.S. Attorneys Jose Luis Acosta and Patricia Acosta prosecuted the case.
These charges resulted from the coordinated efforts of Joint Task Force Alpha (JTFA). The U.S. Attorney’s Office for the Western District of Texas is part of the JTFA, which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security JTFA is comprised of detailees from U.S. Attorneys’ Offices along the southwest border, including the Southern District of Texas, the Western District of Texas, the District of New Mexico, the District of Arizona, and the Southern District of California. Dedicated support is also provided by numerous components of the Criminal Division that are part of JTFA, led by HRSP, and supported by ODPAT, the Narcotic and Dangerous Drug Section, the Money Laundering and Asset Recovery Section, the Office of Enforcement Operations, OIA, and the Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, the Drug Enforcement Administration (DEA), and other partners. To date, JTFA’s work has resulted in over 260 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; over 180 convictions; significant jail sentences imposed; and forfeitures of substantial assets.
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Arizona Man Charged with Defrauding at Least 150 Victims in Cryptocurrency Investment SchemeRead the Press Release
PHOENIX, Ariz. – On Tuesday, a federal grand jury in Phoenix returned a 50-count indictment against Jeremie Sowerby, 45, of Fountain Hills, for wire fraud and transactional money laundering.
The indictment alleges that Sowerby scammed at least 150 victims out of millions of dollars in a cryptocurrency scheme known as Dunamis Global Technologies. Sowerby marketed Dunamis as a company that sold cryptocurrency mining machines to be hosted in Dunamis warehouse facilities in Lakeside and Tempe, which he falsely claimed to own. Sowerby informed victim-investors that they were purchasing cryptocurrency mining machines with unique serial numbers associated with each victim’s cryptocurrency wallet. In reality, Sowerby directed most of the victim funds to accounts under his control. Any “earnings” were directed to a Dunamis wallet controlled by Sowerby, and victims were never able to access their invested money or any purported profits. Instead, Sowerby stole the money and used it for himself, including purchasing Teslas, residential properties, cryptocurrency, and other expensive items.
Sowerby was previously charged, along with co-defendant Luis Ortega, in a 55-count indictment alleging that Sowerby and Ortega scammed hundreds of victims out of millions of dollars in a cryptocurrency investment scheme under the guise of three entities: Now Mining, VIP Mining, and Millennium Technologies. Sowerby was also previously charged for defrauding an Arizona physician through what he claimed to be an exclusive hedge fund investment opportunity called “Justice Capital.” Both cases remain pending.
A conviction for wire fraud carries a maximum penalty of 20 years’ imprisonment and a fine of up to $250,000, or both. A conviction for transactional money laundering carries a maximum penalty of 10 years’ imprisonment and a fine of up to $250,000, or both.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Federal Bureau of Investigation and the Internal Revenue Service (IRS)-Criminal Investigation are conducting the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
The FBI and IRS-CI believe that additional victims of Sowerby’s investment fraud schemes remain unidentified. Anyone who believes they were defrauded by the defendant in this case should contact the Victim Witness Section at the U.S. Attorney’s Office for the District of Arizona at [email protected] or fill out the questionnaire at this link: https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/seeking-potential-victims-of-jeremie-sowerby-luis-ortega-fraud-schemes.
CASE NUMBER: CR-23-01757-PHX-SMB
RELEASE NUMBER: 2023-203_Sowerby# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.ADA Agreement Ensures Effective Communication with Deaf and Hard of Hearing Patients at Kent HospitalRead the Press Release
PROVIDENCE, RI – United States Attorney Zachary A. Cunha today announced a settlement agreement under the Americans with Disabilities Act (ADA) with Kent Hospital, an affiliate of Care New England Health System, to resolve a complaint brought by an individual who is deaf and uses American Sign Language (ASL) as her primary means of communication.
The complainant was hospitalized at Kent Hospital in December 2021, and alleged that Kent Hospital failed to provide her with effective communication until the seventh day of her hospitalization, after multiple complaints by herself and a family member.
Because of Kent Hospital’s failure to provide an interpreter or other means of effective communication, the patient alleged that she experienced increased fear and confusion about her medical diagnosis and treatment. Kent Hospital cooperated fully with the investigation of this matter, which substantiated the allegations in the complaint.
Under the terms of the agreement, Kent Hospital will adopt new ADA policies and practices that will deal with providing effective communication and securing qualified interpreters for patients; train its staff on these policies; report any future complaints; and cooperate with the U.S. Attorney’s Office to ensure ongoing compliance with the terms of the settlement agreement. Additionally, Kent Hospital will pay $30,000 to the complainant and a $5,000 penalty.
Title III of the ADA prohibits discrimination against people with disabilities in places of public accommodations, such as hospitals. It requires places of public accommodation to provide the necessary auxiliary aids and services to ensure that communication is effective. Such aids and services can include American Sign Language interpreters for individuals who are deaf or hard of hearing and must be paid for by the place of public accommodation.
The United States’ case was handled by AUSA Amy Romero.
The Department of Justice offers a number of publications available to assist entities in complying with the ADA, including Effective Communication and a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings. For more information on the ADA and to access these publications, visit www.ada.gov or call the Justice Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD).
Any member of the public who wishes to file a complaint alleging that a place of public accommodation or public entity in Rhode Island is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at (401) 709-5000.
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kent_hospital_ada_settlement_agreement_.pdf
18 December 2023
Yolo County Insurance Broker Pleads Guilty to Identity TheftRead the Press Release
SACRAMENTO, Calif. — Robert Kirby Wells, 64, of Woodland, pleaded guilty today to one count of aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Wells served as an insurance broker for a company located in Denver, Colorado, that owned multifamily and commercial properties throughout the United States. Wells was responsible for obtaining several types of insurance coverage for the company’s properties, including umbrella liability coverage. As part of the fraud scheme, Wells represented to the company that he obtained umbrella coverage for properties when, in fact, he did not. Wells then invoiced and was paid for purported premiums associated with the umbrella liability policies that he had never obtained.
At times, after Wells received full payment for premiums associated with coverage he obtained for the company, as well as umbrella coverage he did not obtain, Wells secured loans purportedly to pay for the same premiums. He did so by falsely representing that he was financing the premiums on the company’s behalf and using the identities of a managing principal and employee of the company without their authorization.
This case is the product of an investigation by the Federal Housing Finance Agency Office of Inspector General, the Department of Housing and Urban Development Office of Inspector General, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
U.S. District Judge William B. Shubb is scheduled to sentence Wells on March 11, 2024. Wells faces a mandatory sentence of two years in prison and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Woman Sentenced to 31 Months in Prison for Stealing Stimulus Payments and Purchasing Mercedes-Benz and JewelryRead the Press Release
NEWS RELEASE SUMMARY – December 18, 2023
SAN DIEGO – Alexandra Crystal Jackson was sentenced in federal court today to 31 months in prison for using the personal information of others to obtain Economic Impact Payments from the IRS and benefit payments from California’s Employment Development Department and spending the proceeds on luxury goods.
Jackson pleaded guilty on September 21, 2023. In her plea agreement, Jackson admitted that she collected personal information from homeless and low-income individuals as well as detainees at local detention facilities. She admitted she used the information to apply for Economic Impact Payments, commonly referred to as “stimulus checks,” and directed payments to bank accounts she controlled. Jackson also admitted to using the information to apply for benefit payments from California’s Employment Development Department (EDD), and to receiving at least 40 EDD debit cards in the names of others. Jackson used the EDD debit cards to withdraw cash from ATMs and to pay for jewelry, furniture, and a Mercedes-Benz G-Glass 550 SUV that the IRS seized.
U.S. District Judge Gonzalo P. Curiel also ordered Jackson to pay restitution and entered a preliminary forfeiture order for the Mercedes-Benz.
Jackson’s co-defendant, Demetrius Montre McFarland, previously admitted he provided Jackson with the personal information of his fellow detainees at the Vista Detention Center. McFarland entered a guilty plea on December 11, 2023, and his sentencing hearing is set for March 5, 2024.
“These government programs were meant to help California residents get through the pandemic,” said U.S. Attorney Tara McGrath. “They were not intended as a get-rich-quick scheme for criminals who want a Mercedes.”
“Taking advantage of some of our communities’ most vulnerable adults and conspiring with your spouse to line your pockets is deplorable,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “The Economic Impact Payments were meant to help our communities during a time of crisis. Ms. Jackson and her husband abused the system and now Ms. Jackson will have time to reflect on her actions. IRS:CI is committed to identifying and investigating these types of schemes which includes the seizure of any assets purchased with funds stolen from these relief programs. We are dedicated to bringing justice to our communities affected by these types of schemes.”
This case is being prosecuted by Assistant U.S. Attorneys Eric R. Olah and Joseph Orabona.
DEFENDANTS Case Number 23-CR-1098-GPC
Alexandra Crystal Jackson Age: 32 San Diego, CA
Demetrius Montre McFarland Age: 31 San Diego, CA
SUMMARY OF CHARGES
Conspiracy–Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and $250,000 fine
AGENCY
Internal Revenue Service, Criminal Investigation
Wister Resident Pleads Guilty to Child Neglect ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Michael Traig Pride, age 33, of Wister, Oklahoma, entered a guilty plea to two counts of Child Neglect in Indian Country.
On May 11, 2022, while responsible for the health, safety, and welfare of two children, Pride willfully failed to protect them from harm when he failed to properly secure them in child passenger restraint systems, then drove without a valid driver's license and at an excessive rate of speed. The crimes occurred in LeFlore County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Oklahoma Highway Patrol, the City of Talihina Police Department, and the Federal Bureau of Investigation.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report.
Waubay Woman Sentenced to Federal Prison for Embezzlement and Theft from an Indian Tribal OrganizationRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a Waubay, South Dakota, woman convicted of Embezzlement and Theft from an Indian Tribal Organization and Aiding and Abetting. The sentencing took place on December 11, 2023, in Aberdeen, South Dakota.
Kayline Joy LaBelle, age 46, was sentenced to five years in federal prison, followed by three years of supervised release. She was ordered to pay $203,283.13 in restitution and $100 as a statutorily required special assessment to the Federal Crime Victims Fund.
LaBelle was indicted for Embezzlement and Theft from an Indian Tribal Organization and Aiding and Abetting by a federal grand jury in July 2023. She pleaded guilty on September 11, 2023.
According to court documents, between 2018 and 2022, LaBelle and others embezzled more than $150,000 belonging to the Buffalo Lake District of the Sisseton-Wahpeton Oyate Sioux Tribe, an Indian Tribal Organization. LaBelle was aided and abetted by Elaine Blanche King, Duane Randy LaBelle, Jr., Jacenta Rae Varns, and Shayline Lena Max.
LaBelle was the elected treasurer of the Buffalo Lake District and stole checks from the tribal organization. LaBelle then cashed those stolen checks at various vendors, businesses, and casinos, and she also distributed those stolen checks to her co-defendants. LaBelle used the funds for personal expenditures and her use was unauthorized and unlawful. LaBelle served as the treasurer until she resigned in September 2022. Her conduct, acts, and omissions resulted in approximately $205,000 in losses to the district and tribe.
Elaine Blanche King and Jacenta Rae Varns have pleaded guilty and are awaiting sentencing. The cases against Duane Randy LaBelle, Jr. and Shayline Lena Max are pending in federal court.
This case was investigated by the FBI and the U.S. Attorney’s Office. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
LaBelle will have to surrender on December 26, 2023, to begin serving her sentence.
This case was brought pursuant to the Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: the FBI; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; IRS Criminal Investigation; U.S. Postal Inspection Service; and the U.S. Postal Service, Office of Inspector General.
For additional information about the Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Waterbury Drug Trafficker Sentenced to 10 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that NESTOR SOSA-ORTIZ, 39, of Waterbury, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 120 months of imprisonment, followed by five years of supervised release, for trafficking fentanyl and heroin.
According to court documents and statements made in court, this matter stems from a joint investigation headed by the DEA New Haven Task Force and the Waterbury Police Department into a Waterbury-based drug trafficking operation headed by Sosa-Ortiz. The investigation, which included the use of court-authorized wiretaps, physical surveillance, and controlled purchases of narcotics, revealed that Sosa-Ortiz’s organization received large quantities of fentanyl and heroin from suppliers in Connecticut and New York and distributed the narcotics through a network of co-conspirators. After Sosa-Ortiz was arrested in New York City on a separate federal heroin and fentanyl trafficking charge in May 2019, he continued to control his drug network while incarcerated by using smuggled cell phones to communicate with various co-conspirators, including his sisters, Imirici Sosa-Ortiz and Isamelis Sosa-Ortiz.
The Sosa-Ortiz organization used an apartment located at 330 Bishop Street in Waterbury to store kilogram-quantities of fentanyl and heroin, and to process and package the drugs for street sale.
On October 29, 2019, several of Nestor Sosa-Ortiz’s co-conspirators were arrested. On that date, investigators executed search warrants at the Bishop Street apartment and four other locations and seized approximately six kilograms of fentanyl and heroin, approximately 100,000 bags of fentanyl/heroin packaged for street distribution, approximately 1,000 fentanyl pills disguised as Percocet pills, one firearm, and approximately $50,000 in cash.
Nestor-Sosa Ortiz has been detained since May 18, 2019, and his federal charges that were pending in the Southern District of New York were subsequently transferred to the District of Connecticut for further prosecution. On June 18, 2020, he pleaded guilty to two counts of conspiracy to possess with intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl, related to both the Connecticut and New York.
Seventeen individuals were charged and convicted as a result of this investigation. Imirici Sosa-Ortiz and Isamelis Sosa-Ortiz pleaded guilty and were each sentenced to 94 months of imprisonment.
This investigation was conducted by the Drug Enforcement Administration New Haven Task Force and the Waterbury Police Department. The DEA New Haven Task Force includes participants from the DEA, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Waterbury, East Haven, Branford, West Haven, Ansonia, Meriden, Naugatuck, and Shelton Police Departments.
The case was prosecuted by Assistant U.S. Attorneys Lauren C. Clark and Jocelyn Courtney Kaoutzanis through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Wanblee Man Sentenced to Life in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Wanblee, South Dakota, man convicted of one count of Aggravated Sexual Abuse and two counts of Sexual Abuse. The sentencing took place on December 15, 2023.
Anthony Red Elk, 34, was sentenced to three terms of life imprisonment and ordered to pay a total of $300 in special assessments to the Federal Crime Victims Fund. The life imprisonment sentences shall be served concurrently.
Red Elk was indicted for the charges by a federal grand jury in November of 2021. He was found guilty following a federal jury trial in Rapid City, South Dakota, in July of 2023.
The convictions relate to Red Elk sexually assaulting a ten-year-old girl at Wanblee, on the Pine Ridge Reservation, while the young girl babysat Red Elk’s child in his home. Red Elk then sexually abused the same female in 2018 and again in 2019 at Wanblee, after she had reached the age of 18. Red Elk threatened her should she tell anyone and taunted her that no one would believe her if she came forward.
Red Elk previously worked at the Crazy Horse School in Wanblee as a basketball coach, bus driver, and custodian. He also worked in a juvenile detention facility. He was fired from the Crazy Horse School in January of 2019, for sending sexually explicit Facebook messages to a student.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in Federal court as opposed to State court.
This case was investigated by the FBI and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Heather Knox prosecuted and tried the case.
Red Elk was immediately remanded to the custody of the U.S. Marshals Service.
Virginia Man Sentenced to over Three Years in Federal Prison for Cyberstalking of Maryland WomanRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Michael Ghali, age 35, of Fairfax, Virginia, today to 38 months in federal prison, followed by three years of supervised release for a federal cyberstalking charge, related to sexually explicit and threatening messages and emails he sent to two victims. Ghali has been detained since his arrest and remains detained.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland and Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, beginning in June 2020, Ghali sent an acquaintance, Victim 1, a series of sexually explicit and threatening text messages using an application which allows users to acquire phone numbers to send text messages that they don’t want to be associated with their known phone number.
During that same time, Ghali sent Victim 2, who was the head of a medical department at a Baltimore-based hospital, a series of emails from email addresses he created for the purpose of sending Victim 2 threatening messages, accusing Victim 2 of sexually abusing employees in the medical department and minors, and which claimed that the sender had photos of the abuse. Ghali demanded that Victim 2 resign from his position at the hospital and threatened to send the purported photos of the abuse to the press. Victim 2 knew of Ghali, as Ghali had previously completed a short medical rotation at the hospital.
As detailed in the statement of facts, after receiving the threatening messages, Victim 1 contacted the Anne Arundel County Police Department and obtained a protective order that became effective on July 7, 2020. Similarly, after Victim 2 received an email from Ghali which threatened Victim 2’s life and the lives of his grandchildren, Victim 2 hired a professional security detail and changed his surgical and other schedules. Victim 2 suspected that Ghali sent the messages and became aware that in 2019 Ghali had been charged in Fairfax, Virginia, with brandishing an AR-15 assault rifle within 1000 feet of a school. On July 21, 2020, the hospital obtained a temporary restraining order and ultimately a preliminary injunction against Ghali on behalf of Victim 2.
On August 25, 2020, law enforcement executed a search warrant at Ghali’s residence, seizing several electronic devices, including two Apple iPhones, as well as three boxes of .44 caliber ammunition. From a Federal Firearms Licensee in Fairfax County law enforcement also seized a .22LR caliber semi-automatic firearm, a 10-round capacity magazine, and additional ammunition. A subsequent review of Ghali’s phone revealed another social media page Ghali created in which he posted photos of individuals, including Victim 1. Several images of Victim 1 with sexually explicit captions were located on the page.
According to the plea agreement, on August 28, 2020, Ghali obtained a new Apple iPhone and, in violation of the protective orders that were in place, sent Victim 1 and Victim 2 additional messages and emails. In addition, Ghali posted sexually explicit and threatening messages regarding Victim 1 to another of his social media pages. On October 9, 2020, law enforcement executed a second search warrant at Ghali’s home which authorized seizure of among other things, the new Apple iPhone used by Ghali to send the message to Victim 1. Law enforcement ultimately were unable to locate the device but did locate a receipt for its purchase and packaging material.
U.S. Attorney Erek L. Barron commended the FBI for its work in the investigation. Mr. Barron also thanked Assistant United States Attorney Paul A. Riley, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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United States Files Complaint Against St. Elizabeth's Medical Center, Steward Medical Group and Steward Health Care SystemRead the Press Release
BOSTON – The U.S. Attorney’s Office has filed a complaint under the False Claims Act against Steward St. Elizabeth’s Medical Center of Boston, Inc. (SEMC); Steward Medical Group, Inc. (SMG); and Steward Health Care System, LLC (Steward) alleging that they violated the Physician Self-Referral Law (commonly referred to as the “Stark Law”) and submitted and caused the submission of false claims and statements to the Medicare program. Steward – the owner of SMG and SEMC – is an integrated healthcare system and one of the largest, private, for-profit health care networks in the nation.
Congress enacted the Stark Law to protect against physicians’ financial relationships from impacting their medical decision-making for Medicare patients. Relevant to this case, the Stark Law prohibits a hospital from billing Medicare for services referred by a physician with whom the hospital has an improper compensation relationship. The Stark Law protects patients and the Medicare program from physicians’ financial relationships leading to unnecessary overutilization of services or increased costs.
In 2012, SMG recruited Dr. Agnihotri, a cardiac surgeon, to serve as the Chief of Cardiac Surgery at SEMC. The government alleges that the defendants recruited Dr. Agnihotri because they wanted to increase the number of cardiovascular surgeries at SEMC in Boston, as a means to grow their profits via reimbursement from Medicare and other insurers. The government’s complaint alleges that, from January 2013 through March 2022, SMG paid Dr. Agnihotri compensation that exceeded fair market value as well as incentive compensation that varied based on, and took into account, the volume or value of his referrals to SEMC. Specifically, the amount of incentive compensation that SMG allegedly paid to Dr. Agnihotri varied based on the number of surgeries that Dr. Agnihotri referred to SEMC. It is alleged that SMG paid Dr. Agnihotri approximately $4,868,500 in incentive compensation that it calculated by including as a variable the number of cases Dr. Agnihotri referred to SEMC. The complaint alleges that Dr. Agnihotri made referrals to SEMC in violation of the Stark Law and SEMC submitted over 1,000 claims to Medicare knowing that the claims for those referred services were not eligible for payment. As a result, Medicare mistakenly paid tens of millions of dollars to SEMC for false claims.
“The government’s complaint today alleges that in its drive to increase cardiac surgeries at SEMC, the defendants entered into improper compensation arrangements with a cardiac surgeon, and knowingly submitted false claims to Medicare,” said Acting United States Attorney Joshua S. Levy. “We are committed to enforcing the Stark Law, and protecting patients and the Medicare program from financial relationships that can corrupt clinical decision making.”
“Improper financial arrangements between hospitals and physicians can compromise medical judgement and threaten the integrity of the Medicare program,” said Special Agent in Charge Roberto Coviello of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Working alongside our law enforcement partners, HHS-OIG will continue to thoroughly pursue allegations of Stark Law violations.”
“Health care providers need to ensure that compensation agreements with physicians are appropriate, and the claims they submit to Medicare are based on the clinical needs of patients, not financial ones,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Working with our law enforcement partners, we will continue to investigate deals that we believe could undermine impartial medical judgement, drive up health care costs, and erode the public’s trust in our health care system.”
The government’s investigation was prompted by False Claims Act allegations brought in a lawsuit filed by a whistleblower, under the qui tam provisions of the False Claims Act.
Acting U.S. Attorney Levy, HHS-OIG SAC Coviello and FBI SAC Cohen made the announcement today. The Department of Defense, Office of the Inspector General also assisted in the investigation. Assistant U.S. Attorneys Jessica J. Weber and Andrew A. Caffrey, III of the Affirmative Civil Enforcement Unit are handling the matter.
The claims in which the United States has intervened are allegations only. There has been no determination of liability.
Umar Koon Pleads Not Guilty to Drug ChargesRead the Press Release
Burlington, Vermont – The United States Attorney’s Office stated that Umar Koon, 45, of the Bronx, New York, pleaded not guilty today in United States District Court to charges that he distributed, and possessed with intent to distribute, illegal narcotics. United States Magistrate Judge Kevin J. Doyle released Koon on conditions pending trial, which has not been scheduled.
According to court records, the Northwestern Vermont Drug Task Force and the Federal Bureau of Investigation began an investigation of Koon in the summer of 2023 after obtaining information that Koon was selling fentanyl in the Chittenden County area. Between September and November 2023, investigators, utilizing a confidential informant, made seven controlled purchases of drugs from Koon. On five occasions, it is alleged that Koon sold the confidential informant fentanyl; the two other deals involved cocaine base. Investigators arrested Koon on November 14 after he returned to Burlington from New York City on a bus. Agents seized a suitcase Koon was carrying, obtained a state court-issued warrant to search the bag, and recovered distribution quantities of cocaine, cocaine base and fentanyl. They also seized $1,500 in cash from Koon’s person.
Koon was held without bail on state charges until December 6, when he was released to live in New York City. On December 7, 2023, a federal grand jury returned an indictment charging Koon with seven counts of distributing illegal narcotics and one count of possessing other illegal narcotics with intent to distribute. Federal agents arrested Koon at his home in the Bronx on December 12. A federal judge in New York ordered that Koon surrender for arraignment today in Vermont. The State of Vermont has dismissed its case in favor of this federal prosecution.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty. If convicted, Koon faces up to 20 years of imprisonment and a fine of up to $1,000,000. The actual sentence would be determined with reference to the Federal Sentencing Guidelines.
The prosecutor is Assistant U.S. Attorney Gregory Waples. Koon is represented by Assistant Federal Public Defender Steven Barth.
U.S. Trustee Program’s Advocacy Preserves Consumers’ Rights in MV Realty BankruptciesRead the Press Release
More than 40,000 consumers allegedly lured into predatory 40-year listing agreements will have more opportunity to raise their claims in the bankruptcies of a Florida-based real estate company and its affiliates, thanks to efforts by the United States Trustee Program (USTP).
On November 30, the Bankruptcy Court for the Southern District of Florida granted a motion by the USTP’s Miami office to extend the deadline for creditors to file claims in the chapter 11 bankruptcies of MV Realty PBC LLC and its nearly three dozen affiliates. The court’s order extends the original Dec. 1 deadline to Feb. 1, 2024. The court also directed the MV Realty entities to serve – at their expense – copies of the order on all parties to the bankruptcies, including roughly 38,000 homeowners whom MV Realty listed as current contract holders but not as creditors. Additionally, the companies must provide claim forms to about 2,850 other consumers who may have been forced to pay damages after terminating their agreements; those consumers were neither listed as creditors nor notified of the bankruptcy cases.
MV Realty opposed the USTP’s motion, citing the costs of additional service. Its objection was overruled.
“This ruling protects the due process rights of thousands of people across the country who were affected by MV Realty’s business practices,” said Director Tara Twomey of the Executive Office for U.S. Trustees. “The U.S. Trustee Program does not represent consumers directly, but it is committed to ensuring that they have a fair chance to access the bankruptcy courts, whether as creditors or debtors. I commend our Miami field office for their work to safeguard the interests of justice by preserving consumers’ rights to have their voices heard in these bankruptcy cases.”
MV Realty, which operates in 33 states, has been the subject of lawsuits by several state attorneys general alleging deceptive trade practices. In 2018, MV Realty began marketing homeowner benefit agreements (HBAs), under which consumers receive one-time payments of 0.3% of a property’s value in exchange for a 40-year exclusive right for MV Realty to market the property if the consumer decided to sell. Breaching an HBA – for example, by retaining a different real estate agent – could render a consumer liable for damages of up to 3% of the property value. In other words, consumers who received upfront payments of a few hundred dollars could end up owing thousands under an HBA. Additionally, MV Realty files liens or memoranda in the official records to encumber title to the properties.
Amid increasing state and federal scrutiny of the HBA program and MV Realty’s marketing practices, MV Realty and 35 affiliates filed for chapter 11 relief on Sept. 22. In addition to filing the motion to extend the claims deadline, the USTP’s Miami office has also appointed a committee specifically to represent the interests of all HBA holders.
The U.S. Trustee Program is the component of the Justice Department whose mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders – debtors, creditors and the public. The USTP consists of 21 regions with 89 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the Program at www.justice.gov/ust.
U.S. Attorney’s Office, the FBI, and State and Local Law Enforcement Officials Release Fourth “Don’t Click December” PSARead the Press Release
BOISE – During the holiday season, online criminals increasingly target Idahoans through online scams and fraud schemes. Today, U.S. Attorney Josh Hurwit, along with the FBI, the Idaho State Police, the Ada County Prosecutor’s Office, the Ada County Sheriff’s Office, the Boise Police Department, the Meridian Police Department, and the Garden City Police Department, released a fourth PSA as part of their joint “Don’t Click December” Consumer Protection Campaign. The Canyon County Sheriff’s Office, Idaho Attorney General’s Consumer Protection Division, AARP Idaho, and the Better Business Bureau also participated in the announcement.
The campaign advises members of the public to exercise skepticism and caution when receiving unsolicited online, email, pop-up, or text communications from unknown or unverified sources. If there is any doubt about a link, message, or attachment, law enforcement cautions: “don’t click it.”
In the fourth and final PSA, available here, Ada County Sheriff Matt Clifford, FBI Supervisory Special Agent David Bodily, and U.S. Attorney Hurwit warn the public about the “phantom hacker” scam and explain some of the ways in which individuals can protect themselves.
The "phantom hacker” scam is a relatively new scheme that is particularly complex and devious. First, scammers send unsolicited messages by phone, email, text, or pop-up pretending to be “tech support,” and asking you to provide access to your computer so software can be updated to thwart hackers. But once the scammers access to your computer, they instead install software to steal your financial information. Then they send messages pretending to be your financial institution, saying that your accounts have been hacked and you need to move your money to a third-party account for “safety.” Sometimes the scammers even pretend to be the government or law enforcement and send messages that your money is still unsafe and needs to be moved to a new “alias” account.
This scam draws victims in using entities you typically trust: Like tech support, financial institutions, and law enforcement. Each step builds the scam to bilk people out of thousands of dollars.
Don’t click it. Protect yourself from the “phantom hacker” scam: do not click on unsolicited pop-ups, links sent via text messages, email links, or attachments. Do not contact the telephone number provided in a pop-up, text, or email. Do not download software at the request of an unknown individual who contacted you. Do not allow an unknown individual who contacted you to have control of your computer. Remember, the Government will never ask you to send money via wire transfer, cryptocurrency, or gift cards.
This four-part series of PSAs, released in the weeks leading up to Christmas, is an effort to alert the public to common online fraud schemes that Idaho law enforcement has seen affect Idahoans.
Unfortunately, these are not the only schemes affecting the public, and new schemes arise all the time. Law enforcement hopes that the “Don’t Click December” Consumer Protection Campaign will raise public awareness and encourage individuals to talk to their friends and relatives about not clicking suspicious links, texts, messages, pop-ups, or attachments.
“Everyday Idahoans are targeted by online scammers, and this activity spikes during the holidays in December,” said U.S. Attorney Hurwit. “But we are not helpless. Through our Don’t Click December videos, we point out some of the red flags that individuals can spot to protect themselves and their loved ones. And we also want to encourage people to report online scams to law enforcement so that we can recover lost money and hold the perpetrators accountable. We are all in this together.”
“Last year, the FBI’s Internet Crime Complaint Center received 800,944 complaints about suspected internet crimes. That’s more than 2,000 complaints every single day,” said David Bodily, Supervisory Special Agent of the Salt Lake City FBI’s Boise Resident Agency. “As cyber scams continue to increase in scope and sophistication, it’s important that law enforcement and the public work together to stay ahead of the risks.”
“When people on the internet ask you for any kind of information, our advice is to stop and think – why are they asking? Does it make sense?” said Ada County Sheriff Matt Clifford. “Just pausing for a beat and doing some critical thinking is probably the best thing you can do to prevent online crime.
The U.S. Attorney’s Office and its law enforcement partners recognize that we all must work to eliminate the stigma individuals may experience if they are victimized. There is no shame to falling victim to an online scheme, which are often designed by professional criminals, sophisticated, and tested repeatedly across the country.
For this reason, the “Don’t Click December” Consumer Protection Campaign also publicizes ways to report scams and incidents of fraud to the FBI and local law enforcement.
To learn more about these and other scams targeting Americans visit FBI.gov, and if you believe you are the victim of a scam, take action by reporting it to FBI’s Internet Crime Complaint Center at IC3.gov or by contacting your local law enforcement agency.
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U.S. Attorney Ryan K. Buchanan and HUD Inspector General Rae Oliver Davis Host a safe housing summit focused on health and safety in HUD-assisted housingRead the Press Release
ATLANTA – U.S. Attorney Ryan K. Buchanan and the U.S. Department of Housing and Urban Development’s Inspector General Rae Oliver Davis hosted a Safe Housing Summit on December 14, 2023, to promote health and safety for tenants living in HUD-assisted housing.
“Our office is determined to address inequities in our district that exist in underserved communities who must heavily rely on HUD’s housing assistance programs,” said U.S. Attorney Buchanan. “These citizens deserve to live and raise families in residential areas that are safe and thriving. Our partnership with HUD-OIG, and with other federal agencies and community members, will afford us the necessary resources to support at-risk communities in a more coordinated and impactful way. This Summit is just the beginning of our expanded effort.”
“Everyone deserves to live in a healthy and safe environment without fear of being exposed to environmental hazards or being sexually harassed or assaulted by their housing provider,” said Housing and Urban Development’s Inspector General Oliver Davis. “We are working closely with the U.S. Attorney’s Office to spread the word about ways to help victims who currently are experiencing such violations of their rights or who have been impacted in the past. Outreach summits like the one we cohosted are an important way to increase awareness, share information, and build strong partnerships in the community to help call out and eliminate these problems together.”
The Summit took place at the U.S. Attorney’s Office in Atlanta, and focused on eliminating environmental hazards, as well as combatting sexual misconduct, in HUD-assisted housing. The topics included safe housing strategies, environmental justice concepts, and how to recognize and report sexual misconduct in HUD-assisted housing.
Participants included representatives from organizations who routinely work with vulnerable populations most likely to be impacted by environmental injustice or sexual harassment in housing by their landlords, property managers, maintenance staff, and other housing personnel in positions of authority.
“Sexual harassment is a form of discrimination prohibited by the Fair Housing Act, and no one should be forced to endure illegal harassment in exchange for housing,” added U.S. Attorney Buchanan. “We will continue to devote resources to enforce the Fair Housing Act by investigating and prosecuting discrimination in housing based on race, color, religion, national origin, sex, disability, and familial status.”
A variety of organizations and local law enforcement agencies also attended the Summit, including fair housing organizations and organizations which provide pro bono legal services. Participants were encouraged to build partnerships and share concerns during a networking session.
If you or someone you know has information about environmental hazards and unsafe unit conditions in HUD-assisted housing or has been a victim of sexual harassment, sexual assault, or sexual exploitation—even if the events occurred years ago—report it to the HUD Office of Inspector General Hotline at 1-800-347-3735 or visit the website at www.hudoig.gov/hotline.
You may also contact the U.S. Department of Justice at 1-844-380-6178 or visit www.civilrights.justice.gov. Individuals who believe they may have been victims of environmental injustices or housing discrimination may also contact the U.S. Attorney’s Office at [email protected] or (404) 581-4626.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney Attends the Violent Crime Reduction SummitRead the Press Release
Tulsa, Okla. – U.S. Attorney Clint Johnson attended the Bureau of Justice Assistance (BJA) Violent Crime Reduction Summit: Partnerships for Safer Communities, in Indianapolis, Indiana. The Violent Crime Reduction Summit (Summit) brought together local leadership and federal partners from Project Safe Neighborhoods (PSN) and National Public Safety Partnership (PSP) sites.
More than 1,100 attended the Summit to discuss violence reduction strategies, identify evidence-informed practices to increase public safety, enhance partnerships in the participating communities, and reduce violent crime. U.S. Attorney Johnson was accompanied by Assistant U.S. Attorney and NDOK PSN Coordinator John Brasher, Cherokee Nation Deputy Marshal Erik Fuson, Muscogee (Creek) Nation Tribal Deputy Chief Daniel Wind, Tulsa Police Department Majors Mark Wollmershauser Jr. and Richard Alexander and Tulsa Police Department Sergeant Jeremy Ballard.
Attorney General Merrick B. Garland announced in the opening session the release of the Justice Department’s Violent Crime Reduction Roadmap. This is a one-stop shop to assist local jurisdictions in developing, implementing, and evaluating strategies to prevent, intervene in, and respond to violent crime. The Roadmap is part of a comprehensive Justice Department strategy to help connect jurisdictions with the information and resources they need to meet the complex and evolving challenges to help reduce violent crime.
In Dec. 2022, Tulsa hosted the National PSP Violent Crime Reduction Summit. More than 500 key stakeholders from PSP sites attended, as well as DOJ officials, experts, local and federal law enforcement. The Deputy Attorney General Lisa O. Monaco delivered the opening remarks. The attendees examined evidence-based practices to increase public safety while reducing violent crime. They further discussed how to enhance partnerships within the participating communities.
“The Northern District of Oklahoma is working hard to address violent crime at every level,” said U.S. Attorney Clint Johnson. “Tulsa hosted the National PSP Violent Crime Reduction last December. The Roadmap will strengthen then ongoing collaboration between local, federal and tribal partners ability to address violent crime. I’m pleased to know that the resources made available can support our local, federal, and tribal partners.”
Dozens of Justice Department resources available from the Roadmap are organized around actions outlined in Saving Lives: Ten Essential Actions Cities Can Take to Reduce Violence Now, developed by the Council on Criminal Justice, a nonpartisan think tank for the criminal justice field.
The Police Executive Research Forum, funded by OJP’s Bureau of Justice Assistance, will provide local jurisdictions with tailored training and technical assistance on how to implement the 10 essential actions and utilize the Justice Department’s resources identified in the Roadmap, to reduce violent crime while building community trust. Training and technical assistance offerings include specialized expertise to help organizations solve problems and build capacity, and they provide direct connections to subject matter experts as well as how-to materials.
Two men charged with armed robberies of postal workersRead the Press Release
ATLANTA - Tavion Lashawn Williams and Justin Andrew Sams have been indicted in connection with armed robberies of postal workers in metro-Atlanta.
“Our communities rely on a safe and secure mail system made possible by the dedication of U.S. Postal Service employees and letter carriers who labor tirelessly for our benefit,” said U.S. Attorney Ryan K. Buchanan. “Our office is committed to collaborating closely with our federal and local partners to identify and prosecute those who threaten violence against members of the Postal Service.”
“The safety and security of Postal Service employees and customers is core to the mission of the Postal Inspection Service,” said Tommy D. Coke, Inspector in Charge of the U.S. Postal Inspection Service Atlanta Division. “We are grateful to continue to work in close partnership with our local law enforcement partners as we investigate individuals involved in violent criminal activity against our employees.”
“The Atlanta Police Department is committed to getting criminals off our streets and out of our neighborhoods,” said Atlanta Police Chief Darin Schierbaum. “Letter carriers provide a vital service, and no one should feel unsafe when they are carrying out the duties of their job. The APD is proud to have played a role in the arrest of two criminals who impacted the well-being of the Postal Service employees who were simply doing their job.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: Tavion Lashawn Williams allegedly demanded the keys of a U.S. Postal Service (“USPS”) letter carrier while the employee was delivering mail in Clayton County, Georgia, on March 1, 2023. Williams allegedly pointed a gun at the letter carrier when the carrier hesitated. After seizing the carrier’s key, Williams fled but was soon arrested.
Approximately seven months later, on September 30, 2023, Justin Andrew Sams allegedly assaulted a USPS letter carrier in southwest Atlanta. While brandishing a firearm, Sams allegedly ordered the letter carrier to hand over his postal uniform, keys, cellular telephone, and wallet. Sams also allegedly stole the letter carrier’s government-issued credit card used to purchase fuel for the letter carrier’s mail truck.
The Atlanta Police Department responded to the scene, succeeded in identifying Sams, and ultimately recovered the letter carrier’s telephone, wallet, fuel card, and uniform. Investigators also discovered a semiautomatic pistol during a search of Sams’s residence.
On December 6, 2023, a federal grand jury returned an indictment charging Tavion Lashawn Williams, 21, of Jonesboro, Georgia with theft of a Postal Service key, armed postal robbery, and brandishing a firearm.
On December 12, 2023, another federal grand jury returned an indictment charging Justin Andrew Sams, 34, of Atlanta, Georgia with armed postal robbery, brandishing a firearm, and theft of government property.
Members of the public are reminded that the indictments only contain charges. The defendants are presumed innocent of the charges, and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
These cases are being investigated by the U.S. Postal Inspection Service, Clayton County Police Department, and Atlanta Police Department.
Assistant U.S. Attorneys Stephanie E. Gabay-Smith and Theodore S. Hertzberg are prosecuting the cases.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Two Men Indicted on Federal Racketeering Charge for Allegedly Murdering Man to Increase Positions in Chicago Street GangRead the Press Release
CHICAGO — Two men have been indicted on a federal racketeering charge for allegedly murdering a man to maintain and increase their positions in a violent Chicago street gang.
DIONTAE HARPER, 24, and AMONTI MCCLURE, 21, both of Chicago, are charged with one count of murder in aid of racketeering, according to an indictment returned in U.S. District Court in Chicago. It accuses the pair of murdering Paul Harris on May 13, 2020, for the purpose of maintaining and increasing their positions in the Faceworld street gang, a criminal organization based on the South Side of Chicago whose members engaged in violence and trafficked narcotics. Harris was fatally shot while sitting in a vehicle in the 8600 block of South Halsted Street in Chicago’s Auburn Gresham neighborhood.
The defendants are in law enforcement custody. Arraignment for Harper is scheduled for Tuesday at 1:00 p.m. before U.S. Magistrate Judge Heather K. McShain. Arraignment for McClure is scheduled for Wednesday at 9:00 a.m. before Judge McShain. The U.S. Attorney’s Office will be seeking to have the defendants remain detained pending trial.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Larry Snelling, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorneys John Cooke, Brian Kerwin, and Julia Schwartz.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Murder in aid of racketeering is punishable by a mandatory sentence of life in federal prison, and the death penalty is also possible. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Harper et al indictmentTwo Inland Empire Brothers Sentenced to 24 Years in Prison for Trafficking Heroin via Home Delivery Service in Orange CountyRead the Press Release
SANTA ANA, California – Two Riverside County brothers who ran a drug trafficking operation that used two Orange County-based call centers that took telephone orders for deliveries of the drug, which resulted in one fatal overdose, each were sentenced today to 288 months in federal prison.
Julio Cesar Martinez, 45, a.k.a. “Primo,” of Riverside, and Victor Martinez, 46, a.k.a. “Hector,” of Hemet, were sentenced by United States District Judge Cormac J. Carney in separate hearings.
Each Martinez brother pleaded guilty on August 16 to one count of conspiracy to distribute heroin.
“These two brothers took drug dealing to another level by operating a heroin-delivery service that profited on the addiction and affliction of others,” said United States Attorney Martin Estrada. “While they and their families lived lavishly, these defendants ignored the destruction they caused in our community. Today’s sentence sends a clear message that we will not stand for misconduct of this sort.”
From at least 2003 to July 2021, the two brothers ran a drug trafficking organization that imported heroin from Mexico into the United States by couriers who concealed the drug, sometimes in their body cavities, to Orange County. Once the heroin arrived in Orange County, Julio Martinez oversaw its distribution to various call centers that he also supervised. He also oversaw its distribution to customers.
After a customer placed a heroin order, Martinez and his accomplices arranged for the drug’s delivery using “runners,” who were directed to deliver the heroin and take the customer’s payment.
Martinez and other conspirators used coded language on the telephone while engaging in drug distribution activity. For example, the organization’s code word for heroin was “food” and its code word for one gram of heroin was “taco.”
In December 2016, a customer who purchased heroin over the telephone from Martinez’s drug trafficking organization died of acute polydrug intoxication, including heroin.
The brothers admitted in their plea agreements to distributing at least 29 kilograms of heroin onto the streets of Orange County.
To conceal the source of the income the organization generated, Julio Cesar Martinez and Victor Martinez caused the deposit of the heroin sales proceeds into bank accounts held by other conspirators. The Martinez brothers ordered their co-conspirators to structure the deposits into the bank accounts to evade federal reporting requirements by depositing the money at different banks and by breaking the deposits up into amounts $10,000 and under. The brothers used the proceeds to purchase cars and homes and to fund their lifestyles.
“Operation 'Horse Caller' targeted all levels of this international drug trafficking network, ranging from suppliers in Mexico to mules and runners delivering drugs to customers in Orange County at the direction of the Martinez brothers,” said Donald Alway, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “Federal and local law enforcement agencies working in partnership led to the dismantling of the Martinez brothers' network and closed off a main pipeline of the heroin supply in Orange County that operated for years and led to deadly consequences.”
“The Martinez brothers’ efforts to conceal their drug trafficking activities by attempting to exploit minimum bank reporting requirements was to no avail,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “This well-coordinated investigation is yet another example of the effectiveness of our partnerships with fellow law enforcement agencies in bringing these criminals to justice.”
Federal prosecutors have secured 16 convictions in this case.
The FBI and IRS Criminal Investigation investigated this matter. The Orange County Sheriff's Department, the Newport Beach Police Department, the Costa Mesa Police Department, the Huntington Beach Police Department, the Oxnard Police Department, the California Highway Patrol and March Air Reserve Base provided substantial assistance.
Assistant United States Attorney Kevin J. Butler of the Violent and Organized Crime Section prosecuted this case. Assistant United States Attorney Jonathan S. Galatzan of the Asset Forfeiture and Recovery Section is handling the forfeiture portion of the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Trevor Milton Sentenced to Four Years in Prison for Securities Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that TREVOR MILTON was sentenced by U.S. District Judge Edgardo Ramos to four years in prison for engaging in securities and wire fraud in connection with his scheme to defraud and mislead investors about the development of products and technology by the company he founded, Nikola Corporation (“Nikola”). MILTON was previously convicted after a one-month trial before Judge Ramos.
U.S. Attorney Damian Williams said: “Trevor Milton lied to investors again and again — on social media, on television, on podcasts, and in print. But today’s sentence should be a warning to start-up founders and corporate executives everywhere — ‘fake it till you make it’ is not an excuse for fraud, and if you mislead your investors, you will pay a stiff price.”
According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial:
From at least in or about November 2019 up through and including at least in or about September 2020, TREVOR MILTON engaged in a scheme to defraud investors by inducing them to purchase shares of Nikola Corporation, the electric- and hydrogen-powered vehicle and energy company that MILTON founded, through false and misleading statements regarding Nikola’s product and technology development. MILTON’s scheme targeted individual, non-professional investors — so-called “retail investors” — by making false and misleading statements directly to the investing public through social media and television, print, and podcast interviews.
MILTON made these false and misleading statements regarding Nikola’s products and capabilities to induce retail investors to purchase Nikola stock. MILTON took advantage of the fact that Nikola went public by merging with a Special Purpose Acquisition Company or “SPAC,” rather than through a traditional IPO, by making many of his false and misleading claims during a period where he would have not been allowed to make public statements under rules that govern IPOs.
MILTON made false claims regarding nearly all aspects of Nikola’s business, including: (i) false and misleading statements that the company had early success in creating a “fully functioning” semi-truck prototype known as the “Nikola One,” when MILTON knew the prototype was inoperable; (ii) false and misleading statements that Nikola had engineered and built an electric- and hydrogen-powered pickup truck known as “the Badger” from the “ground up” using Nikola’s parts and technology, when MILTON knew that was not true; (iii) false and misleading statements that Nikola was producing hydrogen and was doing so at a reduced cost, when MILTON knew that in fact no hydrogen was being produced at all by Nikola, at any cost; and (iv) false and misleading claims that reservations made for the future delivery of Nikola’s semi-trucks were binding orders representing billions in revenue, when the vast majority of those orders could be cancelled at any time.
For example, when Nikola’s stock was publicly traded in 2020, MILTON claimed that Nikola had defied expectations as a young, disruptive company when it managed to build its prototype hydrogen-powered semi-truck, the Nikola One, which Nikola unveiled on or about December 1, 2016, at a large event that was filmed and broadcast on the internet. During that event and later, MILTON claimed that the prototype Nikola One “fully functions and works, which is really incredible.” In fact, the Nikola One prototype was never completed and never functioned. Rather, the prototype was wholly missing significant parts, including gears and motors, and the control system (i.e., the system that communicates the driver’s directions to the vehicle) and other significant systems were missing or incomplete. Later, in or about January 2018, and despite the fact that the Nikola One prototype was never completed or operational, MILTON published on Twitter and also published on his own Twitter account a video in which the Nikola One appeared to be driving on its own power down a road with no incline. In fact, to film these clips, the Nikola One was towed to the top of a hill, at which point the “driver” released the brakes, and the truck rolled down the hill until being brought to a stop in front of the stop sign.
Also in 2020, at the same time he was spreading misinformation to investors generally to increase Nikola stock price, MILTON also made false and misleading statements about Nikola’s business and technology to a particular individual as part of an effort to use Nikola stock to make purchases, even when MILTON was subject to a lockup and so could not yet sell his stock. Specifically, MILTON made misrepresentations about Nikola’s business to an individual in order to induce that individual to accept options to purchase Nikola stock (the value of which had already been inflated by MILTON’s scheme to defraud retail investors) in lieu of cash for the purchase of a substantial ranch in Utah.
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In addition to the prison sentence, MILTON, 41, of Alpine, Wyoming, was sentenced to three years of supervised release, ordered to forfeit a property in Utah, and ordered to pay a fine of $1 million. Judge Ramos will set restitution in a future proceeding.
Mr. Williams praised the outstanding work of the U.S. Postal Inspection Service, which jointly conducted the investigation in this case with special agents from the U.S. Attorney’s Office. Mr. Williams further thanked the U.S. Securities and Exchange Commission, which filed a parallel civil action, for its cooperation.
The prosecution of this case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Matthew Podolsky and Nicolas Roos are in charge of the case.