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15 December 2023
Justice Department Files False Claims Act Complaint Against Insect Shield LLC and Its FounderRead the Press Release
The Justice Department has filed a complaint under the False Claims Act against Insect Shield LLC for allegedly causing the submission of false claims to the Department of Defense (DoD) under contracts to provide Army Combat Uniforms. The government has also brought claims against the Estate of Richard Lane, who was the founder, majority owner and chief operating officer of Insect Shield until his death in December 2022.
According to the United States’ complaint, several manufacturers of Army Combat Uniforms subcontracted with Insect Shield to apply permethrin, an insect-repellant, to Army uniforms and to conduct contractually-required testing to ensure that the level of permethrin it applied to the uniforms fell within the limits specified in the contracts. The complaint alleges that Insect Shield and Lane falsified the results of its permethrin testing to conceal failing test results, including by inappropriately combining results from different rounds of testing, re-labeling test samples to hide the true origin of the samples and performing re-tests of uniforms in excess of what the contract permitted.
“Government contractors and subcontractors must provide the services for which they were paid, including by performing required testing activities,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will pursue those who seek to defraud the American taxpayers by misrepresenting their compliance with contractual commitments.”
“I am thankful that we are able to hold accountable those who would defraud the government,” said U.S. Attorney Sandra Hairston for the Middle District of North Carolina. “This case demonstrates that we will continue to protect the use of taxpayer dollars and ensure that companies who provide services to the military don’t cut corners.”
“Businesses that have been contracted by the U.S. Army must comply with all their obligations and testing procedures to meet the high standards we demand,” said Special Agent in Charge Andrew Johnson of the Department of the Army Criminal Investigation Division’s (Army CID), Fraud Field Office. “Army CID is thankful for the collaborative efforts from all the agencies involved. This is a testament to our commitment of working together and holding those accountable who fail to properly test items that our men and women in uniform depend upon to keep them safe while serving their country.”
"Contractors must fulfill their obligations in an open and fair manner," said Director Terri Dilly of the Defense Contract Audit Agency (DCAA). "We are proud to have partnered with the investigative team in providing audit expertise to this case."
"The Defense Criminal Investigative Service (DCIS) is fully committed to protecting the DoD procurement process to ensure military readiness," said Special Agent in Charge Christopher Dillard for DCIS Mid-Atlantic Field Office. “DCIS will continue to work with our law enforcement partners and the Justice Department to investigate DoD contractors that fail to perform required testing and accurately report results.”
This lawsuit was originally brought by Emelia Downs, a former employee of Insect Shield, under the qui tam or whistleblower provisions of the False Claims Act. Those provisions permit private parties to sue for false claims against the United States and to receive a share of any recovery. The Act permits the United States to intervene in such lawsuits, as the United States has done in this case. The lawsuit was filed in the U.S. District Court for the Middle District of North Carolina and is captioned United States ex rel. Downs v. Insect Shield, LLC et al., No. 1:19-CV-1026.
This matter is being handled by the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Middle District of North Carolina. Investigative support is being provided by the DoD Office of Inspector General, Army CID and the DCAA.
Fraud Section Trial Attorney Jonathan Hoerner and Assistant U.S. Attorney Cassie Crawford for the Middle District of North Carolina handled this case.
The claims in the complaint are allegations only, and there has been no determination of liability.
Justice Department Announces Crackdown on Networks That Steal Money from Consumer Accounts and Use Fraudulent “Microtransactions” to Hide the Activity from BanksRead the Press Release
The Justice Department announced today a collection of cases against fraud networks that steal money from consumers and use deceptive tactics to conceal illicit activity from financial institutions, thereby allowing that illicit activity to continue. The cases include two civil actions unsealed in the past week seeking temporary restraining orders and the appointment of receivers to stop defendants from dissipating assets.
The civil cases announced today form part of a larger crackdown by the department’s Consumer Protection Branch designed to halt networks of fraudsters that use misrepresentations or unauthorized charges to steal money from consumers’ financial accounts. Fraudsters and their accomplices often hide these unauthorized charges using so-called “microtransactions” or “microdebits,” which group the unauthorized charges with a large number of low-value, straw transactions to lower the fraudster’s chargeback rate. A chargeback is a transaction that is refused or reversed by an account holder’s bank. Because a high chargeback rate can lead to account scrutiny or closure, using microtransactions to artificially reduce the chargeback rate masks the underlying fraud scheme.
“These cases mark an important step in the department’s efforts to halt schemes that prey upon individuals and small businesses across the United States,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to using all of the tools at its disposal to prevent fraudsters from reaching into victims’ bank accounts and stealing their hard-earned savings.”
“The great work by postal inspectors in these investigations uncovered far-reaching fraud schemes, and millions of dollars in loss to victims across the country,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “The U.S. Postal Inspection Service is committed to protecting American consumers and small businesses from falling victim to these types of fraud schemes.”
United States v. Altitude Processing, Inc., et al.
In a case unsealed by the U.S. District Court for the Southern District of Florida on Dec. 11, the Justice Department alleges that a network of fraudsters, including defendants Farhan Khan of Quebec, Canada, Jeremy Todd Briley of Tallulah, Louisiana, Christopher Foufas of Key Biscayne, Florida, Brandon Hahn of Saint Cloud, Florida, and Melinda Petit-Homme of Margate, Florida, stole millions of dollars from consumers and small businesses by making recurring unauthorized charges against their bank accounts. The fraudsters used sham companies, including Altitude Processing Inc., which does business as Clear Marketing Agency, to cover their tracks and make the unauthorized charges appear legitimate.
The defendants allegedly took elaborate steps to portray the sham companies as legitimate businesses that provided online marketing services, creating bogus websites for the sham companies, fake customer authorizations for the charges and a “customer service” call center to field complaints and offer refunds. In reality, victims of the scheme never signed up for – or received – any services from the fraudsters. The complaint further alleges that some of the defendants used numerous sham microtransactions so that banks would not detect large numbers of chargebacks for unauthorized debits. After the government filed its case, the court entered a temporary restraining order enjoining the defendants from making unauthorized debits from consumers’ bank accounts. The government also successfully petitioned for the appointment of a receiver to stop defendants from dissipating assets obtained through the fraud scheme.
United States v. CB Surety, LLC, et al.
In a case unsealed by the U.S. District Court for the Eastern District of California on Dec. 12, the Justice Department alleges that a network of fraudsters, including defendants Thomas Eide of South Lake Tahoe, California, Travis Smith of Dallas, Aric Gastwirth of Las Vegas, Stephen Christopher of Poway, California, and Bryan Bass, a resident of India, through various business entities that they owned and operated, processed payments for clients that made unauthorized charges to consumers’ accounts and engaged in a variety of other illegal activities, including technical support scams.
“This case marks a significant step in halting fraud schemes that reap financial gain by scamming consumers and making misrepresentations to financial institutions,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “It also sends a clear signal that we have used, and will continue to use, all means at our disposal to protect citizens from such schemes to defraud.”
According to the allegations in the complaint, the defendants gained access to the banking system by creating sham entities to disguise the true activities of their clients and create the appearance that they were engaged in lawful businesses like selling handbags or electric scooters. The defendants allegedly recruited straw owners for the sham entities and outfitted them with phony addresses, websites and customer service lines. The defendants also used sham microtransactions to reduce the number of chargebacks and evade scrutiny from banks. After the government filed its case, the court entered a temporary restraining order enjoining the defendants from continuing to operate the scheme. The government also successfully petitioned for the appointment of a receiver to stop defendants from dissipating assets obtained through the fraud scheme.
The Consumer Protection Branch’s crackdown on cases involving unauthorized charges and microtransactions also includes several criminal cases recently announced. In a case announced two weeks ago, a California businessman was charged with access device fraud and aggravated identity theft for running thousands of unauthorized charges on the credit cards of his former customers. In another case, 14 defendants were charged in a RICO conspiracy indictment in the Central District of California alleging that defendants and associates debited consumers’ bank accounts without authorization and used shell entities and microtransactions to conceal the activity from banks. A co-conspirator pled guilty to bank fraud conspiracy in Las Vegas and was sentenced to 42 months in prison. In a related civil case, the department secured injunctive relief against and settlements totaling nearly $5 million with various persons, including several who are charged in the criminal indictment.
In other cases charging similar schemes, two individuals were charged in the Northern District of Illinois for allegedly deceiving banks, including through the use of microtransactions, in order to open and maintain bank accounts and to allow for the processing of tens of millions of dollars of checks that were purportedly authorized by consumers, but in fact were not. A Nevada man has also pleaded guilty to partnering with foreign telemarketers to use fraudulent checks to steal money from victims’ bank accounts.
USPIS is conducting the investigations, along with (for some matters) the Federal Deposit Insurance Corporation Office of Inspector General.
In the Altitude Processing case, the government is represented by Trial Attorneys Carolyn Rice and Meredith Reiter and Assistant Director Rachael Doud of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney James Weinkle for the Southern District of Florida. In the CB Surety case, the government is represented by Trial Attorneys Andrew Crawford and Francisco Unger and Assistant Director Rachael Doud of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Tara Amin for the Eastern District of California.
For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch.
Jefferson County Woman Who Falsely Claimed to be Disabled Sentenced to 15 Months in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Friday sentenced a Jefferson County, Missouri woman who was part of a wide-ranging scheme that fraudulently obtained millions of dollars in disability payments to 15 months in prison.
Elizabeth Guetersloh, 67, was also ordered to repay $423,513.
A jury in U.S. District Court in St. Louis in May found Guetersloh guilty of two counts of mail fraud, 16 counts of wire fraud and eight counts of theft of government funds.
Guetersloh was among a group of now former Anheuser-Busch employees who went to a Jefferson County chiropractic clinic as part of a scheme to falsely claim disability payments from the Social Security Administration’s Disability Trust Fund and through private disability benefit insurance providers. In all, 17 defendants have pleaded guilty or been convicted at trial of charges connected to the investigation.
“These defendants schemed to take advantage of a system intended to support those who become too disabled to work. The chiropractors took thousands of dollars in fees to teach the other defendants how to fake medical conditions and pretend they were unable to perform some of the basic necessities of life, like walking, standing, sitting and lifting objects. Evidence at her trial showed that this defendant, Elizabeth Guetersloh, fraudulently filed for disability payments and then danced, hiked through waterfalls, rode roller coasters, went to wineries, and traveled to Europe, Hawaii and the Caribbean. Each defendant has been ordered to repay all of the money that was lost, which should serve as an important message that you will never come out ahead if you attempt to commit fraud.”
Chiropractors Thomas G. Hobbs and Vivian Carbone-Hobbs, co-owners of Power-Med Inc., a chiropractic clinic in Arnold, Missouri, were each sentenced to four years in prison earlier this year. Hobbs was ordered to repay $4.3 million and Carbone-Hobbs was ordered to repay $16.4 million.
Hobbs, now 66, pleaded guilty in January to a conspiracy charge and admitted conspiring to commit the crimes of health care fraud, making false statements, theft of government funds and Social Security fraud. Carbone-Hobbs, now 61, was convicted by a jury in February of conspiracy to defraud the Social Security Administration, 10 counts of health care fraud and two counts of theft of money from the United States.
“This sentence holds Ms. Elizabeth Guetersloh accountable for her criminal actions and concludes a major case that involved several medical professionals and many other defendants, who conspired to defraud SSA’s disability program and private insurers,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I applaud the efforts of those who uncovered this fraud and the investigators who tirelessly unraveled this scheme. I also commend Assistant U.S. Attorneys Tracy Berry, Dorothy McMurtry, Gwendolyn Carroll, and Special Assistant U.S. Attorney Diane Klocke who worked diligently to bring these cases to conclusion.”
The cases were investigated by the Social Security Administration – Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorneys Tracy Berry, Dorothy McMurtry, Diane Klocke and Gwendolyn Carroll prosecuted the case.
Anyone who suspects fraud involving the Disability Insurance Benefit Program should contact the Social Security Administration Office of Inspector General Hotline at: 1-800-269-0271 or https://oig.ssa.gov/report/.
Jacksonville Man Sentenced to More Than 14 Years on Methamphetamine ChargeRead the Press Release
WILMINGTON, N.C. – Michael Dennis, of Jacksonville, North Carolina, was sentenced today to 170 months in prison for possession with intent to distribute 50 grams or more of methamphetamine. Dennis, 45, pled guilty to the charge on May 23, 2023.
According to court documents and other information presented in court, Dennis had multiple run-ins with Onslow County Sheriff’s Office (OCSO) deputies through 2021 and 2022 that led to seizures of methamphetamine and other drugs. On November 6, 2021, OCSO deputies conducted a search of Dennis’s home on Blue Creek Road in Jacksonville in connection with a murder investigation. In Dennis’s bedroom, deputies found 24 grams of methamphetamine and cutting agents. Deputies returned to the home on November 16, 2021, to assist with a probation search and seized another 76 grams of methamphetamine, along with other drug items. At that time, Dennis was on probation for Financial Card Theft convictions.
On January 19, 2022, OCSO deputies were conducting surveillance at a Hubert, North Carolina, home after receiving complaints about drug activity. Deputies stopped a vehicle that was leaving that home and identified Dennis as the driver. A search uncovered an additional 49 grams of methamphetamine. During a post-arrest interview, Dennis confessed to having a pound of methamphetamine at a residence on Bratten Drive in Jacksonville. Deputies seized another 986 grams of 96% pure crystal methamphetamine, 11 grams of heroin, and $2,000 in cash from that address.
Dennis’s federal conviction follows 11 prior North Carolina state felony convictions. These include two counts of common law robbery, attempted common law robbery, two counts of larceny from a person, and three counts of financial card theft.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Onslow County Sheriff’s Office investigated the case, which Assistant U.S. Attorney Jake D. Pugh prosecuted.
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-00300-M.
Jacksonville Man Indicted on Bank Fraud and Theft of Mail ChargesRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Frank Anthony Acanda (26, Jacksonville) with conspiracy to commit bank fraud, eight counts of bank fraud, conspiracy to commit theft of mail, and theft of mail. If convicted, Acanda faces up to 30 years in federal prison for each count of bank fraud and conspiracy to commit bank fraud, up to 5 years for the theft of mail and conspiracy to commit theft of mail counts, and payment of restitution to the victims he and his co-defendant, Jonathan Benavide Hidalgo, defrauded.
According to the indictment, Acanda, his co-defendant, Hidalgo, and others drove around areas of Fleming Island, Jacksonville, and St. Augustine and stole large volumes of mail from residential and business mailboxes over several months. After opening the mail and stealing checks and money orders, Acanda, Hidalgo, and others acting on their behalf, deposited the items into bank accounts controlled by them and then used ATMs to immediately withdraw cash. In some instances, the co-defendants altered the stolen checks by increasing the amount of the stolen checks to maximize the amount of money they could withdraw from ATMs.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Clay County Sheriff’s Office, the Florida Department of Law Enforcement, and the U.S. Postal Inspection Service - Jacksonville Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein. The asset forfeiture is being handled by Assistant United States Attorney Jennifer M. Harrington.
Inmate Sentenced to 51 Months’ Imprisonment for Assault with A Dangerous WeaponRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jose Esteban Mercado-Colon, age 32, an inmate at United States Penitentiary Canaan, Waymart, Pennsylvania, was sentenced yesterday by United States District Court Judge Robert D. Mariani to 51 months’ imprisonment for assaulting another inmate with a dangerous weapon.
According to United States Attorney Gerard M. Karam, Mercado-Colon previously pleaded guilty to one count of assault with a dangerous weapon. On September 22, 2021, Mercado-Colon assaulted another inmate using a 6’ sharpened object wrapped in a bedsheet. The other inmate lost his eye as a result of Mercado-Colon’s conduct.
The matter was investigated by the Federal Bureau of Prisons. Assistant United States Attorney James Buchanan prosecuted the case.
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Howell County Gang Member Sentenced for Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Koshkonong, Mo., man who was a member of the Gangster Disciples has been sentenced in federal court for illegally possessing a firearm.
Tanner S. Huffman, 30, was sentenced by U.S. Chief District Judge Beth Phillips on Thursday, Dec. 14, to eight years and six months in federal prison without parole.
On Sept. 19, 2022, Huffman pleaded guilty to being a felon in possession of a firearm.
According to court documents, Huffman burglarized a residence in Hardy, Arkansas, on Jan. 20, 2021, and stole numerous items, including firearms. The next day he was associated with the theft of another firearm in Howell County, Mo.
Huffman was located on Jan. 23, 2022, at the West Plains Motel in West Plains, Mo., where he had rented a room. Officers, who were conducting surveillance at the motel, saw Huffman arrive on a motorcycle he had stolen during the residential burglary. They went to Huffman’s motel room and arrested him. He was in possession of methamphetamine, marijuana, brass knuckles, a single round of 9mm ammunition, and a key to the stolen motorcycle. Officers found a loaded Walther 9mm firearm with a high-capacity ammunition magazine in the motel room.
Officers also found seven firearms, which Huffman had stolen, at his residence, including a Savage .22-caliber rifle, a Marlin .22-caliber rifle with no serial number, a Marlin 12-gauge shotgun, a Harrington & Richardson 12-gauge shotgun, a Revelation .22-caliber rifle, a J. Stevens 16-gauge shotgun with no serial number, and a Remington 30-06 rifle.
According to court documents, Huffman was a member of the Gangster Disciples, and as of 2020, was third in command of the local gang.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Huffman, who was under a state criminal justice sentence for possession of a controlled substance, has prior felony convictions for assault, receiving stolen property, resisting arrest, unlawful use of a weapon, burglary, stealing firearms, explosive weapons, and possession of a controlled substance.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Howell County, Mo., Sheriff’s Department, the West Plains, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hardy, Ark., Police Department,
Haskell County Resident Sentenced for Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Cortez Deron Fulsom, age 35, of Kinta, Oklahoma, was sentenced 120 months imprisonment for shooting and injuring another Haskell County resident.
The charges arose from an investigation by the Federal Bureau of Investigation, the Haskell County Sheriff’s Office, the District 18 Narcotics Task Force, the Oklahoma Highway Patrol, and the Oklahoma State Bureau of Investigation.
On November 10, 2022, Fulsom entered a plea of guilty to one count of Use, Carry, Brandish, and Discharge of a Firearm During and in Relation to a Crime of Violence. At the plea hearing, Fulsom admitted to intentionally shooting the victim with a firearm with intent to do bodily injury. According to investigators, on March 22, 2019, Fulsom approached the victim at a Haskell County residence and fired multiple rounds at the victim. The victim wrestled the gun away from Fulsom but sustained a non-fatal gunshot injury during the struggle. Fulsom fled the scene and was later apprehended by law enforcement with the assistance of the Oklahoma Highway Patrol.
The crime occurred in Haskell County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the sentencing hearing in Muskogee, Oklahoma. Fulsom will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorneys Ryan Conway and Cameron McEwen represented the United States.
Harrisburg Man Sentenced to One Year in Prison for Failing to Pay Employment TaxesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Sam Xen Duong, age 49, of Harrisburg, Pennsylvania, was sentenced yesterday by U.S. District Court Judge Sylvia H. Rambo to one year in prison for failing to withhold and pay employment taxes. The Court also ordered a one-year term of supervised release to follow the term of imprisonment and over $1.5 million in restitution.
According to United States Attorney Gerard M. Karam, Duong previously admitted that between 2012 and 2018, he failed to pay employment taxes for two companies that he owned or co-owned, BCS, Inc., and ETS, Inc. Both companies were located in Harrisburg and provided temporary workers to other businesses. To perpetuate his scheme, Duong often paid employees in cash and submitted false forms to the Internal Revenue Service.
The case was investigated by the Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
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Guatemalan Man Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Guatemalan man has pleaded guilty in federal court in Boston to unlawfully reentering the United States after deportation.
Romeo Waldemar Gabriel Lopez, 32, pleaded guilty on Dec. 12, 2023 to one count of unlawful reentry of a deported alien before U.S. District Court Judge Myong J. Joun, who scheduled sentencing for Feb. 13, 2024.
Gabriel Lopez was deported in April 2016, October 2016, April 2017, and March 2020. Sometime after his March 2020 removal, Gabriel Lopez unlawfully reentered the United States. On Sept. 8, 2023, he was arrested by immigration authorities who learned of his arrest in an unrelated state case.
The charge of unlawful reentry of a deported alien provides for a sentence of up to two years in prison, one year of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney John J. Reynolds III of the Major Crimes Unit is prosecuting the case.
Fraudulent Nursing Diploma Scheme Leads to Federal ConvictionsRead the Press Release
MIAMI – Today a federal jury sitting in Ft. Lauderdale, Florida found defendants Gail Russ, registrar of the Palm Beach School of Nursing in Lake Worth, Florida, Cassandre Jean, owner and operator of Success Nursing Review in Brooklyn, New York, and Vilaire Duroseau, owner and operator of the Center for Advance Training and Studies in West Orange, New Jersey, guilty of wire fraud and conspiracy to commit wire fraud charges after a three-week trial.
These defendants were charged, along with eleven co-defendants, for their involvement in a scheme to sell fraudulent nursing degree diplomas and transcripts obtained from two private nursing schools that at one time were approved by the State of Florida to issue diplomas and transcripts to individuals seeking licenses and jobs as registered nurses (RNs) and licensed practical/vocational nurses (LPN/VNs).
The bogus diplomas and transcripts qualified purchasers to sit for the national nursing board exam and, after passing it, to obtain licenses and jobs in various states as RNs and LPN/VNs. The overall scheme involved the distribution of more than 7,600 fake nursing diplomas by Palm Beach School of Nursing and Quisqueya School of Nursing LLC in Palm Beach County, Fla. These schools are now closed due to the excessive failure rates of their students taking the state nursing board exam.
Those nursing applicants who passed the national nursing board exam used the fraudulent diplomas to obtain RN or LPN/VN licenses and nursing jobs with unwitting health care providers throughout the United States.
An additional eleven defendants entered pleas of guilty to conspiracy to commit wire fraud in Case No. 23-60007-Cr-Singhal. In total, 27 defendants were charged and convicted in 2023 for their participation in this nursing diploma fraud scheme, known as Operation Nightingale, that created an illegal licensing and employment shortcut for aspiring nurses.
U.S. Attorney for the Southern District of Florida Markenzy Lapointe; Special Agent in Charge Jeffrey B. Veltri, FBI, Miami Field Office; and Special Agent in Charge Omar Pérez Aybar, HHS-OIG, made the announcement.
FBI Miami and HHS-OIG Miami investigated these cases. Valuable assistance was provided by Homeland Security Investigations, Miami Field Office; U.S. Department of Veterans Affairs-Office of Inspector General; and Florida Attorney General-Florida Medicaid Fraud Control Unit, Mid-Atlantic Field Office. Senior Litigation Counsel Christopher J. Clark and Assistant U.S. Attorney Jon M. Juenger prosecuted these cases and Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-60007-CR.
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Four Men Charged with Allegedly Running Drug Trafficking Ring that Shipped Wholesale Amounts of Narcotics to Indo-Pacific RegionRead the Press Release
LOS ANGELES – Two Orange County men have been arrested on a three-count federal grand jury indictment alleging they ran a transnational drug trafficking organization that exported wholesale amounts of cocaine and methamphetamine – concealed within commercial products such as instant noodle packets, car parts, emergency kits, and subwoofers – to Australia, Papua New Guinea, and New Zealand, the Justice Department announced today.
Hoang Xuan Le, 42, a.k.a. “Big Bro,” “Blue,” and “Knockout,” of Tustin, and Tri Cao Buinguyen, 38, a.k.a. “Bro” and “Mango,” of Garden Grove, were arrested Thursday. They are scheduled for arraignment this afternoon at United States District Court in Los Angeles.
In total, four defendants – including Trung Buinguyen, 40, of Lakewood, and Narongsak Champy, 28, of Long Beach – have been charged with one count of conspiracy to export controlled substances and one count of conspiracy to distribute controlled substances. Le and Tri Buinguyen are charged with one additional count of distribution of methamphetamine.
Trung Buinguyen and Champy are being sought by law enforcement.
As part of this case, law enforcement seized a total of 755 kilograms (1,664 pounds) of methamphetamine and more than 100 kilograms of cocaine. Law enforcement estimates that the value of the drugs seized exceeds $65 million and ranges up to $160 million.
According to the indictment, from at least February 2017 to September 2022, Le and Tri Buinguyen communicated with members of the drug trafficking organization in Australia, New Zealand, and Papua New Guinea. They then arranged for the export of bulk quantities of drugs from the United States to these nations via air cargo, ocean freight, and the U.S. mail, concealing the drugs in a variety of commercial products and falsifying their true nature on the manifests and customs documents.
The defendants allegedly used phones equipped with military-grade encryption software and encrypted messaging applications, particularly “Signal,” to coordinate the export of drugs from the United States. They also allegedly used fictitious names, businesses, and email accounts to communicate with intermediaries, including vendors, freight forwarders, shipping companies, customs brokers, and customs officials in the United States and foreign countries, to fraudulently disguise the drugs as legitimate commercial products.
For example, Le and Tri Buinguyen allegedly directed the summer 2018 shipment to Australia of 390 kilograms (860 pounds) of methamphetamine concealed in packets of instant noodles and mushroom seasoning, as well as the September 2018 export of 113 kilograms (249 pounds) of methamphetamine and 100 kilograms (over 220 pounds) of cocaine disguised as garlic seasoning. Additional shipments of drugs in October 2018, November 2019, February 2020, and August 2020 were allegedly concealed in emergency kits, car parts, subwoofers, and customized metal boxes.
In June 2021, Le and Tri Buinguyen orchestrated a bulk shipment of 150 kilograms (over 330 pounds) of methamphetamine concealed in food storage buckets for export to Papua New Guinea, according to the indictment. Finally, in August and September of 2022, Tri Buinguyen allegedly arranged for the export to New Zealand of 32 kilograms (more than 70 pounds) of methamphetamine concealed in meals ready-to-eat packets.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted of all charges, each defendant would face a statutory maximum sentence of life in federal prison.
Homeland Security Investigations is investigating this matter. The following agencies have provided substantial assistance to this investigation: United States Postal Inspection Service, the Drug Enforcement Administration, United States Customs and Border Protection, the Australian Federal Police, the Australian Border Force, the Australian Department of Homeland Affairs – Intelligence Division, the Royal Papua New Guinea Constabulary, the Papua New Guinea Customs Service, and the New Zealand Customs Service.
This case is the result of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Central District of California and HSI. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant United States Attorney Gregg E. Marmaro of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.
Four Individuals Indicted in Puerto Rico Department of Treasury Bribery Conspiracy Related to Vehicle Excise TaxesRead the Press Release
SAN JUAN, P.R. – On December 14, 2023, the Federal Grand Jury in the District of Puerto Rico returned a 20-count indictment charging four individuals with Conspiracy to Commit Bribery Concerning Program Receiving Federal Funds, Paying and Receiving Bribes, and Honest Services Wire Fraud , announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. The case was investigated by the Federal Bureau of Investigation (FBI) and the Department of Homeland Security (HSI) with the assistance of the Puerto Rico Department of Treasury (Hacienda), the Puerto Rico Police Bureau (PRPB), and the Puerto Rico Department of Corrections and Rehabilitation.
Throughout 2020 and 2021, defendant Ariel Pintado-Montalvo made repeated bribe payments to Hacienda employees in exchange for the approval of fraudulent vehicle excise-tax Declarations and for quick approval of non-fraudulent vehicle excise-tax Declarations. During the span of the conspiracy, Pintado-Montalvo paid thousands of dollars in bribe payments to Antonio Silva-Rodríguez, Héctor Vázquez-Barroso, and Doris Bonilla-Valle, who each utilized their position as employees of Hacienda to approve fraudulent and non-fraudulent vehicle excise-tax Declarations in exchange for bribe payments.
The Sistema Unificado de Rentas Internas (SURI) was Hacienda’s digital platform which was used to administer and collect vehicle excise-taxes on imported vehicles. Entry documents notifying the vehicle’s arrival, known as the Declaration, which contained the vehicle-identification number (VIN), were required. If the Declaration was complete and it contained the motor vehicle’s correct VIN, SURI would automatically calculate the excise tax based on the current Black Book value of the motor vehicle. Once the excise-tax was approved by Hacienda employees and paid, the vehicle would be released, and it would be free to move from the port. If the VIN was inputted incorrectly into SURI, whoever was completing the Declaration would be able to input what they believed to be the fair-market value of the vehicle. This situation triggered the requirement that a PRDT employee review the Declaration to ensure the correct amount of excise tax was collected.
According to court documents, defendant Ariel Pintado-Montalvo, who was in the business of importing motor vehicles into Puerto Rico as a “gestor” (someone who did the paperwork and helped managed part of the process of importing motor vehicles into PR), paid cash bribes and ATH Móvil payments to Hacienda employees. In exchange for the bribes, Antonio Silva-Rodríguez, Héctor Vázquez-Barroso, and Doris Bonilla-Valle approved fraudulent Declarations that resulted in a decrease in excise tax paid by Pintado-Montalvo and a loss of revenue for Hacienda. Additionally, in exchange for bribe payments, Silva-Rodríguez, Vázquez-Barroso, and Bonilla-Valle used their Hacienda positions to quickly approve non-fraudulent Declarations.
With regards to the fraudulent Declarations, these Hacienda employees agreed that an incorrect VIN number would be imputed into SURI to trigger the review of the Declaration. Then, Pintado-Montalvo would notify one of co-defendants at Hacienda when a fraudulent Declaration was ready for approval by providing the Declaration’s number via WhatsApp. Soon after, Silva-Rodríguez, Vázquez-Barroso, or Bonilla-Valle approved the fraudulent Declaration and notified Pintado-Montalvo via WhatsApp.
Likewise, Pintado-Montalvo sent the number for the non-fraudulent Declaration that needed quick approval via WhatsApp. Silva-Rodríguez, Vázquez-Barroso, or Bonilla-Valle then notified Pintado-Montalvo when it was approved. Pintado-Montalvo would then proceed to coordinate and make the bribe payments in cash or via ATH Móvil in batches.
“Together with our law enforcement partners, our office will continue to aggressively pursue corrupt individuals in the government who take advantage of the system to benefit a few in exchange for bribes,” said U.S. Attorney W. Stephen Muldrow. “This prosecution serves as a warning to other public employees involved in these types of schemes that they will be investigated and prosecuted, and that such violations will not be tolerated.”
“Corruption is a complex problem with a variety of causes and no simple solution. This is why attacking this threat at all levels and having a zero-tolerance posture is necessary in order to have a real impact,” said Joseph González, Special Agent in Charge of the FBI San Juan Field Office. “The FBI has been at the frontlines in the fight against corruption in Puerto Rico and I think the message is clear - if you are a public official, using your public office for personal gain, we will come after you and you will face Justice. I thank our partners at the US Attorney’s Office, HSI, the Puerto Rico Treasury Department (Hacienda), for their continued support to the FBI mission.”
“The defendants in this case used their position of trust as government employees to develop a scheme impacting Puerto Rico’s economy,” said Rebecca González-Ramos, Special Agent in Charge of the Department of Homeland Security, San Juan. “Money that goes directly to our citizens for enhancements in our island, to our public servers, our schools, and our roads, were not collected in exchange for personal gain. These employees defrauded the trust of the people of Puerto Rico. HSI will continue to investigate the financial crimes that negatively impact the infrastructure of the United States and its territories, most importantly those that abuse their position to commit these crimes.”
“Today’s arrests are in part, the culmination of a collaborative effort between the FBI and the Puerto Rico Treasury Department,” said Francisco Parés-Alicea, Secretary of the Puerto Rico Department of Treasury (Hacienda). “In 2021 I shared data identified through our new information systems regarding potential fraud in the introduction of vehicles in the island. Although this incident is very unfortunate, we reiterate our unwavering commitment in fighting these reprehensible acts regardless of where they come from.”
Assistant U.S. Attorney Victor O. Acevedo-Hernández is prosecuting the case.
The indictments contain only charges and are not evidence of guilt. The defendants are presumed to be innocent unless and until proven guilty.
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Former Owner of Plymouth Restaurant Sentenced for Tax EvasionRead the Press Release
BOSTON – The former owner of a beachfront restaurant and bar in Plymouth was sentenced today for concealing business income from the Internal Revenue Service (IRS) and paying restaurant employees under the table.
Rudolph Ferrucci, 66, of Plymouth, was sentenced by U.S. District Court Judge Angel Kelley to two years’ probation, with the first six months to be served on home confinement, 400 hours of community service and a fine of $5,500. On Aug. 23, 2023, Ferrucci pleaded guilty to one count of tax evasion and one count of failure to collect and pay over employee taxes.
Ferrucci owned and operated Sandy’s, a seasonal, cash-only restaurant and bar. From 2016 through 2020, Ferrucci diverted a portion of Sandy’s sales receipts for cash payments to suppliers and employees and to personal income for himself and his spouse. Ferrucci kept separate sets of financial records for Sandy’s, including one omitting diverted sales receipts, which Ferrucci’s tax return preparer used to report Sandy’s income to the IRS. As a result, Ferrucci underreported his and his spouse’s personal income tax obligations by $1.2 million over those four years, causing a loss to the IRS of over $250,000.
Additionally, Ferrucci paid Sandy’s employees more than $315,000 in cash wages, memorialized in a handwritten “second set of books” and not recorded in Sandy’s payroll records or tax returns. By not reporting these cash wages to the IRS, Ferrucci caused Sandy’s to fail to pay $75,000 in employment taxes owed to the IRS.
Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Assistant U.S. Attorney David M. Holcomb of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Former L.A. Resident Sentenced to More Than 6 Years in Prison for Running Cons Targeting Members of Orthodox Jewish CommunityRead the Press Release
LOS ANGELES – A former resident of the Fairfax District of Los Angeles was sentenced today to 80 months in federal prison for defrauding investors, primarily members of the Orthodox Jewish community, by getting them to invest $25 million in his security camera business and his purported real estate ventures in Israel, while actually using their money for his own expenses.
Yossi Engel, 36, who moved to Israel in March 2021 but temporarily returned to the Los Angeles area in February 2023, was sentenced by United States District Judge Maame Ewusi-Mensah Frimpong, who also ordered him to pay $11,758,030 in restitution.
Engel pleaded guilty on May 12 to one count of wire fraud. He has been in federal custody since his arrest on March 8 at Los Angeles International Airport as he was attempting to leave the United States.
Engel orchestrated a scheme in which he made false representations and used forged documents to induce victims to make investments in and provide loans for iWitness Tech Inc., a Hancock Park-based security camera company and for properties Engel falsely claimed to own and be developing in Israel.
From September 2018 to January 2021, Engel used his community relationships to defraud victims, who primarily came from the Orthodox Jewish communities in the Los Angeles and New York metropolitan areas. Engel claimed to need money in the form of short-term loans with high rates of return for iWitness’ business operations, namely the purported purchase and installation of security cameras for its customers.
Engel offered short-term investments and loans in iWitness that ranged from $15,000 to $1.3 million. The investments and loans were for two weeks to six months and would purportedly provide investors with 10% to 60% annualized interest. Victims were duped, in part, by being shown copies of false and fraudulent invoices of work iWitness purportedly did with other companies.
Engel told victims that iWitness was a large business with many clients, but in fact it did not have as much business as he claimed, and work was so slack that at times iWitness employees sat around waiting for work while Engel slept on a couch.
In another part of the scheme, Engel also falsely claimed to own and be developing real estate in Israel, telling victims that he needed money for redevelopment work, and falsely promising he would sell the properties and share the profits with investors. Engel showed victims a video depicting himself socializing with the mayor of Bnei Brak, Israel, and claimed to have met with the mayor concerning Engel’s purported real estate deals in the city. But Engel did not have a close relationship with the mayor, and he did not discuss with the mayor these real estate ventures in the city.
Engel used fraudulent Israel land documents to dupe victims into thinking he owned these properties. Through these fake documents and his own trusted position in the Orthodox Jewish community, Engel lulled existing victims and encouraged new victims to send him money.
Engel lied to investors that he needed private investments for both iWitness and the Israeli real estate projects because he was from Israel and did not have sufficient credit in the United States to obtain the lower interest rates available through U.S. banks.
But Engel did not use the victims’ money as promised, and instead used it for his personal expenses – including trips via private jets and casino visits – and to make Ponzi payments to investors to perpetuate the scheme.
Once the scheme fell apart in early 2021, Engel fled the United States for Israel.
“The consequences of [Engel’s] dishonesty are not only financial but his victims endured an emotional cost,” prosecutors argued in a sentencing memorandum. “[Engel’s] greed hurt reputations and broke relationships in the communities he solicited money.”
In January 2023, the United States Securities and Exchange Commission sued Engel, alleging he used his ties in the Orthodox Jewish community to perpetuate a multimillion-dollar affinity fraud.
The FBI investigated this matter.
Assistant United States Attorney Steven M. Arkow of the Major Frauds Section prosecuted this case.
Former Huntingdon County Postal Employee Sentenced to Probation for Mail TheftRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 14, 2023, Adam Fouse, age 30, of Huntingdon County, Pennsylvania, was sentenced by United States District Court Judge Yvette Kane to one year of probation, including 30 days on home confinement, for stealing mail while employed as a U.S. Postal Service employee. Judge Kane also ordered Fouse to pay $1,200 in fines and assessments.
According to United States Attorney Gerard M. Karam, Fouse previously pleaded guilty to theft of mail by a postal employee. Fouse opened gift cards and other mail that had been entrusted to him as a rural carrier associate and stealing money from that mail to help finance a sports gambling addiction. Fouse agreed to resign from the Postal Service and not to seek or accept a position of public trust for a period of 10 years.
The matter was investigated by the United States Postal Inspection Service. Assistant United States Attorney Christian T. Haugsby prosecuted the case.
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Former Edinboro Resident Sentenced to 5 Years in Prison for Receipt and Possession of Child Sexual Abuse MaterialRead the Press Release
ERIE, PA - A former resident of Edinboro, Pennsylvania, has been sentenced in federal court to 5 years in prison, to be followed by 10 years of supervised release, and ordered to pay a special assessment of $5,100 on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney Eric G. Olshan announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on James Paredes Andrada, age 25.
According to information presented to the court, from November 2019 to February 2020, Andrada received and possessed computer and cell phone images depicting minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation, the Pennsylvania State Police and the Edinboro Police Department for the investigation leading to the successful prosecution of Andrada.
Federal grand jury indicts Dunkirk man on labor and sex trafficking and kidnapping chargesRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned a four-count indictment charging Augusto Mateo Francisco, 32, of Dunkirk, NY, with two counts of forced labor, one count of kidnapping a minor, and one count of transportation of a minor for the purpose of illegal sexual activity. The charges carry a minimum penalty of 20 years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney Douglas A. C. Penrose, who is handling the case, stated that according to the indictment, Francisco facilitated the illegal entry of Guatemalan migrants into the United States and helped transport them to the Dunkirk area, where he would provide them with housing and work at area farms. Francisco would charge the migrants for their housing, rides to work, and for other items. He would also take a cut of the wages they earned working at the farms. Francisco threatened two individuals (Victim 1 and Victim 2), telling them that if they stopped working for him or if they did not pay back the money they purportedly owed to him, he would harm their families or would call immigration authorities and have them deported.
In addition, Francisco pursued a sexual relationship with Minor Victim 1, a 16-year-old Guatemalan migrant who had come to the U.S. with her mother. Francisco repeatedly raped Minor Victim 1, threatening to harm her siblings who were still in Guatemala if she told anyone about what had happened. In May 2020, Francisco abducted Minor Victim 1 and took her to a trailer in Ripley, NY, where she was held for nearly two weeks, until being rescued by police. Following her rescue, Minor Victim 1 and her mother fled to Georgia to escape Francisco. However, he followed them and kidnapped Minor Victim 1, bringing her back to the Western District of New York, where he unlawfully held her for several more days, until she was again rescued by police.
Francisco was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy, and is being held pending a detention hearing on December 20, 2023, at 2:30 p.m.
The indictment is the result of by Homeland Security investigations, under the direction of Special Agent-in-Charge Matthew Scarpino and the Chautauqua County Sherriff’s Office, under the direction of Sheriff James Quattrone.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Federal Jury Finds Defendant Guilty of Murder for Hire, Conspiracy to Commit Murder for Hire, and Solicitation to Commit a Crime of ViolenceRead the Press Release
Jackson, MS – A federal jury convicted Joshua Druid Bryan of Clinton, MS, today for murder for hire, conspiracy to commit murder for hire, and solicitation to commit a crime of violence.
According to court documents and evidence presented at trial, Bryan, 28, hired a hitman to murder another person. He also entered into a conspiracy with Regan Bryan, his sister, to commit the offense. Regan Bryan previously pled guilty to conspiracy to commit murder for hire.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives made the announcement.
The ATF investigated the case.
Assistant U.S. Attorneys Kevin Payne and Matt Allen prosecuted the case.
Farmington Man Sentenced to More Than 6 Years in Federal Prison for Fentanyl and Cocaine Trafficking OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that DENIS MURTIC, 38, of Farmington, was sentenced yesterday by U.S. District Judge Omar A. Williams in Hartford to 78 months of imprisonment, followed by four years of supervised release, for fentanyl and cocaine trafficking offenses. Judge Williams also ordered Murtic to pay a $25,000 fine.
According to court documents and statements made in court, the DEA’s Hartford Task Force launched an investigation of Murtic for trafficking large quantities of fentanyl and cocaine. On September 3, 2020, a court-authorized search of an apartment on Grafton Street in Hartford apartment connected to Murtic revealed thousands of wax folds of fentanyl, more than 700 grams of cocaine, and items used to process and package narcotics for distribution.
On October 18, 2021, investigators made a controlled purchase of approximately 50 grams of fentanyl from Murtic and Alexander Rodriguez at a parking lot in East Hartford. After the transaction, investigators observed Murtic and Rodriguez travel to an apartment on Wakefield Circle in East Hartford. On October 26, 2021, Murtic, Rodriguez, and Efrain Rosario were arrested at the apartment, which was being used as a narcotics processing and packaging mill. A search of the apartment revealed more than 40,000 glassine bags and wax folds of fentanyl, approximately 1.7 kilograms of loose fentanyl, two compressed bricks of cocaine weighing a total of approximately 1.5 kilograms, and numerous narcotics processing and packaging items, including a kilogram press.
A related search of Murtic’s business resulted in the seizure of a .22 caliber handgun and ammunition. Analysis of Murtic’s phone revealed numerous texts and images involving Murtic’s illegal acquisition of other firearms.
Murtic has been detained since his arrest. On January 20, 2023, he pleaded guilty to conspiracy to distribute 40 grams or more of fentanyl and 500 grams or more of cocaine.
Rodriguez, of East Windsor, and Rosario, of Hartford, have pleaded guilty and await sentencing.
The DEA Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, and Windsor Locks Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone 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.
Fairport man sentenced for attacking a federal officer during a campaign eventRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that David G. Jakubonis, 44, of Fairport, NY, who was convicted of assaulting a federal officer, was sentenced to serve three years probation by U.S. Magistrate Judge Marian W. Payson.
Assistant U.S. Attorney Sean C. Eldridge, who handled the case, stated that on July 21, 2022, during a campaign event in Perinton, NY, Congressman Lee Zeldin gave a speech from the bed of a flatbed trailer. During the speech, Jakubonis walked onto the trailer, approached the Congressman, extended a keychain with two sharp points toward him and grabbed his arm. A struggle then ensued between Congressman Zeldin and Jakubonis and, as bystanders intervened, Jakubonis pulled Congressman Zeldin down onto the bed of the trailer, stating several times during the assault, “you're done.” Jakubonis was subdued and arrested.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the U.S. Capitol Police, under the direction of Assistant Special Agent-in-Charge Chad Beckett, the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter, the New York State Police, under the direction of Major Miklos Szoczei II, the Rochester Police Department, under the direction of Chief David Smith and the Brighton Police Department, under the direction of Chief David Catholdi.
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Fairfax Doctor Pleads Guilty to Obstructing the IRS, Agrees to Pay $5.3 MillionRead the Press Release
ALEXANDRIA, Va. – A Fairfax doctor pleaded guilty today and has agreed to pay $3.1 million in taxes and $2.2 million to insurance companies for corruptly obstructing the IRS by underreporting his income and filing false tax returns in connection with his medical practice.
According to court documents, Dr. Jasser Thiara owned and operated an obstetrics medical practice, doing business as Mid-Atlantic Ob-Gyn, and another doctor’s office specializing in pain management called Fairfax Pain Clinic. To reduce his taxable income for the 2017 to 2020 tax years, Thiara filed false returns for Mid-Atlantic that claimed bogus business deductions, which falsely decreased the company’s business income. Thiara then filed false individual income tax returns, which did not fully report the income that he had received from MidAtlantic. Thiara also failed to report hundreds of thousands of dollars a year in gross receipts generated by Fairfax Pain Clinic.
In addition to the Mid-Atlantic and Fairfax Pain Clinic schemes, from 2014 through approximately 2016, Thiara received payments for prescriptions referred to certain Virginia pharmacies owned by Mohamed Abdalla, even though some of Mid-Atlantic’s contracts with insurers expressly prohibited such arrangements. In some instances, Abdalla billed insurance companies for these prescriptions but did not send the medications to patients in order to increase profits. Some patients contacted Mid-Atlantic to complain that they had been provided with medicine that they had not requested or did not need. In other instances, patients complained to Mid-Atlantic that their insurance companies had been billed for prescriptions that they had not received, knew nothing about, and did not need. In total, Thiara received approximately $2.2 million from the “referral” scheme, and neither reported, nor paid taxes on this income.
Finally, for the 2017 to 2020 tax years, Thiara used a business called NTMT to receive payments for medical services billed out-of-network, principally from Aetna and United Healthcare, even though Thiara was an in-network provider for both insurers. Thiara then filed returns which falsely reported that NTMT had received minimal to no business income, when in fact it had received millions of dollars from insurance companies.
In total, Thiara did not pay the Internal Revenue Service $3,172,001 in taxes owed for the tax years 2015 to 2020. Thiara used these funds to purchase a lavish $3.5 million residence and a $340,000 Ferrari, and spent hundreds of thousands more on credit cards and luxury items.
Thiara is scheduled to be sentenced on March 15, 2024. He faces a maximum penalty of 3 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Thiara has also agreed to pay $3,172,001 in restitution to the Internal Revenue Service and another $2,214,830 to third-party victims.
Adballa was sentenced on March 19, 2021, to four years in prison for his role in the kickback scheme.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; David Geist, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division; Kareem Carter, Special Agent in Charge of the IRS Criminal Investigations Washington Field Office; Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services (HHS); Christopher Dillard, Special Agent in Charge for the Department of Defense, Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office; Derek Holt, Special Agent in Charge, U.S. Office of Personnel Management (OPM); and George Scavdis, Special Agent in Charge, Food and Drug Administration (FDA) Office of Criminal Investigations, Metro Washington Field Office, made the announcement after Senior U.S District Judge Claude M. Hilton accepted the plea.
Assistant U.S. Attorneys Jack Morgan and Zoe Bedell are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-00194.
Extradited Bloomington Fugitive Pleads Guilty to Child Pornography and Enticement ChargesRead the Press Release
ST. PAUL, Minn. – A Bloomington fugitive has pleaded guilty to attempted production and production of child pornography, receipt of child pornography, and enticement of a minor, announced U.S. Attorney Andrew M. Luger.
According to court documents, between October 2020 through March 2023, Ibrahim Ghassan Sleyman, 30, used Snapchat and other messaging apps to solicit sexually explicit material and sex acts from minors, some as young as nine-years-old. Additionally, Sleyman groomed and enticed a minor victim to produce child pornography and engage in sexual activity with Sleyman by providing the minor with drugs and gifts. Once Sleyman became aware of law enforcement’s investigation, he fled to Abu Dhabi, United Arab Emirates (UAE), on September 6, 2022. While Sleyman was a fugitive in the UAE, he continued to use Snapchat to engage in sexually explicit conversations with minors in the United States.
Sleyman was extradited by the UAE and upon his return to the United State, he was taken into federal custody by the FBI on September 15, 2023. To date, the United States has identified at least 22 minor victims who Sleyman solicited and used to produce and receive child pornography and attempted to entice to engage in unlawful sexual acts. If you believe you or your minor dependent(s) have been victimized by Ibrahim Sleyman, please contact the FBI Tip Line at 1-800-CALL-FBI (1-800-225-5324) or tips.fbi.gov.
Sleyman pleaded guilty yesterday before U.S. District Court Judge Donovan W. Frank to one count of attempted production and production of child pornography, one count of receipt of child pornography, and one count of enticement of a minor. As a part of his plea, Sleyman admitted to criminal conduct relating to 22 minor victims.
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. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is the result of an investigation conducted by the FBI, Homeland Security Investigations, U.S. Customs and Border Protection, the Elk River Police Department, and the Pleasant Hill, Missouri Police Department, with assistance from the St. Paul Police Department. The Justice Department’s Office of International Affairs, the State Department, the Ministries of Justice and Interior of the United Arab Emirates, UAE Interpol, Abu Dhabi Airport Police and Abu Dhabi International Airport – Airport Security provided significant support and assistance in Sleyman’s extradition from the United Arab Emirates.
Assistant U.S. Attorney Hillary A. Taylor is prosecuting the case.
Executives Charged with Bid Rigging, Territorial Allocation and Defrauding the U.S. Forest Service After a Wiretap InvestigationRead the Press Release
Following a court-authorized wiretap investigation, a federal grand jury in Boise, Idaho, returned an indictment this week charging two executives of competing companies with conspiring to rig bids and allocate territories in violation of the Sherman Act, conspiring to commit wire fraud and committing wire fraud.
According to the seven-count felony indictment, Ike Tomlinson and Kris Bird’s conspiracy affected contracts for forest-firefighting services. As alleged, the U.S. Forest Service runs a competitive bidding process for these contracts to ensure taxpayer dollars are spent efficiently. The indictment alleges that from at least in or about February 2014, up to and including in or about March, the defendants coordinated their bids to “squeeze” and “drown” competitors; accepted payment for fuel trucks at collusive and noncompetitive daily rates; and tried to conceal their actions.
This investigation was conducted by the department’s Procurement Collusion Strike Force (PCSF), which included FBI agents, with judicial authorization, intercepting phone calls between the defendants. As alleged, Tomlinson and Bird spoke with one another shortly before the deadline to submit bids on fuel truck contracts. During calls quoted in the indictment, they allegedly agreed to rig bids, allocate territories and target competitors.
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals and a maximum penalty of a $100 million fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the maximum. A violation of the wire fraud statute carries a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s San Francisco Office, U.S. Attorney’s Office for the District of Idaho and FBI Salt Lake City Field Office, Boise Resident Agency are investigating the case.
Trial Attorney Matthew Chou and Assistant Chief Christopher J. Carlberg of the Antitrust Division’s San Francisco Office and Assistant U.S. Attorney Sean M. Mazorol for the District of Idaho are prosecuting the case.
In November 2019, the Justice Department created the PCSF, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. To learn more about the PCSF, or to report information on bid rigging, price fixing, market allocation and other anticompetitive conduct related to government spending, go to www.justice.gov/procurement-collusion-strike-force. Anyone with information in connection with this investigation can contact the PCSF at the link listed above.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Evansville Child Predator Sentenced to Six Years in Federal Prison for Sharing Child Sexual Abuse Material via Social MediaRead the Press Release
EVANSVILLE- Seth Harms, 31, of Mount Vernon, Indiana, has been sentenced to six years in federal prison after pleading guilty to two counts of distribution of child sexual abuse material.
According to court documents, between November 22, and December 8 of 2021, Harms used the screen name “monstere98” to send multiple videos and images of child sexual abuse material to other users using an online communications platform. One video contained a prepubescent female undressing and engaging in sexually explicit conduct.
On December 8, 2021, Harms was interviewed at his home by local law enforcement officers and admitted to viewing sexually explicit material involving minors on his cell phone as recently as a couple of hours before the investigators arrived. Additionally, Harms admitted to using the platform to communicate with other individuals who would send him internet file links for child sexual abuse material.
“Predators like this defendant use online platforms to exploit children and seek affirmation from others who share their sexual interest in minors. Survivors of child sexual abuse are retraumatized every single time the evidence of their abuse is shared,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “My office and our law enforcement partners at the FBI are dedicated to protecting children from those interested in their exploitation by identifying and sending them to federal prison.”
The FBI investigated this case. The sentence was imposed by U.S. District Court Judge Richard L. Young. Judge Young also ordered that Harms be supervised by the U.S. Probation Office for five years following his release from federal prison and register as a sex offender wherever he lives, works, and goes to school.
U.S. Attorney Myers thanked Assistant United States Attorney Todd S. Shellenbarger, who prosecuted this case.
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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
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Ethete man sentenced for assault resulting in serious bodily injuryRead the Press Release
Gary Lee Moon, a/k/a Rod or Rodney Moon, 43, of Ethete, Wyoming, was sentenced to 30 months in prison for assault resulting in serious bodily injury. According to court documents, on April 20, 2023, Moon and the victim were drinking together at the victim’s residence. When the victim laid down to sleep, Moon went into the bedroom and began hitting the victim with a metal pole. Moon struck the victim in the head, back, and arm, breaking the victim’s forearm and dislocating his elbow.
Moon pled guilty to the charge in September 2023 and was sentenced on December 13, 2023, by Senior U.S. District Court Judge Nancy D. Freudenthal.
This crime was investigated by the Bureau of Indian Affairs and the FBI. The case was prosecuted by Assistant U.S. Attorney Timothy W. Gist.
Case No. 23-CR-00111
Eight Time Prior Drug Felon Sentenced to 300 Months for Armed Fentanyl and Methamphetamine TraffickingRead the Press Release
RALEIGH, N.C. – A Fayetteville man was sentenced today to 300 months in prison for running a Fayetteville-based stash house where fentanyl and methamphetamine were sold. On July 25, 2022, Montrel Demon Rhone pled guilty to drug trafficking and firearms charges.
“Stemming the flow of illicit fentanyl and the overdose epidemic continue to be among our highest priorities,” said U.S. Attorney Michael Easley. “This avowed drug trafficker and REPEAT felon had eight prior drug-related convictions, and tried to escape accountability in this case by flushing drugs down the toilet when police executed search warrants. With this federal sentence, he will now spend the next quarter century behind bars.”
According to court documents and other information presented in court, investigators received information in October of 2020, that Rhone, 45, was running a drug house in the Deep Creek Road area of Fayetteville where he and half a dozen of his co-conspirators were selling drugs that he provided. From late 2020 through March of 2021, investigators conducted multiple controlled purchases of fentanyl, para-fluorofentanyl, and methamphetamine from Rhone and people working on his behalf. Ultimately, investigators were able to establish that Rhone received half kilograms of fentanyl at a time from his source of supply.
On March 25, 2021, the Fayetteville Police Department executed a search warrant at a hotel where Rhone had stored methamphetamine for one of the controlled purchases. Though Rhone attempted to destroy drug evidence by flushing it down the toilet, investigators recovered fentanyl, drug packaging material, and two firearms from within the room. At the time of this investigation, Rhone had previously been convicted of eight different drug related felony convictions in the State of North Carolina and had served an active prison sentence for cocaine trafficking.
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 Fayetteville Police Department and the Drug Enforcement Administration investigated the case and Assistant U.S. Attorney Caroline Webb 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. 5:21-CR-280-D-1.
District Man Sentenced to 16 Months in Prison for Felony Second Degree Theft for Stealing from CVS after Multiple Prior Theft ConvictionsRead the Press Release
WASHINGTON – Jamal Calloway, 34, of Washington, D.C., was sentenced today to sixteen months incarceration to be followed by three years of supervised release for felony second degree theft by the Honorable Lynn Leibovitz of the Superior Court for the District of Columbia.
According to the government’s evidence, on August 21, 2023, around 9:00 p.m., Jamal Calloway entered the CVS located at 2129 14th Street, NW, picked up store merchandise, and left the store without paying for the items. About an hour later, Calloway went back into that same CVS and was arrested while inside.
On September 20, 2023, a grand jury indicted Jamal Calloway on one count of felony second degree theft pursuant to DC Code § 22–3212(c); Calloway had multiple prior theft convictions, not from the same occasion, and was therefore subject to enhanced penalties for his alleged theft, including a mandatory minimum sentence of one year of incarceration.
On October 18, 2023, Calloway pleaded guilty to that offense. At sentencing on December 15, 2023, Judge Leibovitz heard a victim impact statement from a representative of CVS. The CVS representative explained that “Mr. Calloway’s theft has not only harmed the stores’ performance, but also created an atmosphere of insecurity and demotivation among the hardworking employees by affecting their morale and overall well-being.”
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those investigating the case from the Metropolitan Police Department (MPD). They acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Augustin Horner, who investigated and prosecuted the case.
District Man Convicted of Assault, Threatening to Injure or Kidnap a Person, and Intimidating, Impeding, Interfering with and Retaliating Against a Government OfficialRead the Press Release
WASHINGTON - Antoine Nicholson, 34, of Washington, D.C., was convicted at trial of intimidating, impeding, interfering with and retaliating against a government official, among other charges, for a firearm-related assault against a parking enforcement officer that took place in the U Street corridor on Aug. 12, 2023, announced U.S. Attorney Matthew M. Graves and Pamela Smith, Chief of the Metropolitan Police Department.
Nicholson was also found guilty of assault and threatening to injure or kidnap a person. The verdict was returned on Dec. 15, 2023, following a four-day jury trial in the Superior Court of the District of Columbia before the Honorable Maribeth Raffinan.
According to the government’s evidence, on Aug. 12, 2023, at approximately 1:30 a.m., Nicholson was illegally parked in a no-parking zone in the 2100 block of 10th Street N.W. His vehicle also had over $3,000 in unpaid parking tickets and had expired tags. The victim and his partner, both Department of Public Works parking enforcement officers, were patrolling the area. Due to the defendant’s parking violations, they began to impound the defendant’s vehicle, during which Nicholson approached the officers and cursed at them. In response, the victim explained to Nicholson why his car was being towed. Nicholson then went inside the driver’s side compartment of the vehicle, retrieved a handgun from the compartment, and threatened to “bust” the victim.
Nicholson fled the scene and was apprehended by police approximately a half-mile from the location of the offense. Nicholson is scheduled to be sentenced by D.C. Superior Court Judge Maribeth Raffinan on March 8, 2024. For being convicted of Intimidating, impeding, interfering with and retaliating against a government official, he faces a statutory maximum penalty of 5 years in prison and a $12,500 fine. For being convicted of threatening to injure or kidnap a person, he faces a statutory maximum penalty of 20 years in prison and a $50,000 fine.
In announcing the verdict, U.S. Attorney Graves and Chief Pamela Smith commended the work of those who investigated the case from the Metropolitan Police Department and the U.S. Attorney’s office. Finally, they commended the work of Assistant U.S. Attorneys Emmanuel Hampton and Kraig Ahalt, who investigated and prosecuted the case.
District Man Convicted by a Federal Jury of Unlawful Possession of Ammunition and Unlawful Possession with Intent to Distribute FentanylRead the Press Release
WASHINGTON – Roy Tatum, 47, of Washington, DC, was convicted by a federal jury of unlawful possession of ammunition and unlawful possession with intent to distribute fentanyl, both felony offenses. U.S. District Court Judge Dabney L. Friedrich scheduled a sentencing hearing for March 22, 2024.
The announcement was made by U.S. Attorney Matthew M. Graves, and Chief Pamela Smith of the Metropolitan Police Department (MPD).
According to the evidence presented to the jury, on October 27, 2021, at approximately 6:04 a.m., members of the Metropolitan Police Department executed a D.C. Superior Court search warrant at 238 35th Street Northeast in Washington D.C. Officers banged loudly on the front door prior to making entry into the apartment. When there was no answer at the front door, officers forced entry. As they entered, they observed Tatum walk out of the bathroom, wearing only shorts and slippers. In that bathroom, officers found numerous packets of narcotics, including fentanyl on the floor and inside the toilet bowl and tank, which Tatum admitted at trial that he was trying to destroy to prevent recovery by police. Additional packets of Fentanyl were recovered from Tatum’s vehicle, which was parked outside the apartment. Moreover, during the search of the apartment, officers recovered from inside Tatum’s pant pocket a .45 caliber Glock magazine containing six rounds of ammunition.
Tatum was previously released from incarceration under the D.C. Incarceration Reduction Amendment Act (IRAA) after serving more than 25 years following previous first-degree murder convictions. Less than two years after he was released, MPD was executing a warrant in an unrelated homicide case and arrested Tatum for possession of firearms, ammunition, and drugs.
This case was investigated by the Metropolitan Police Department.
The case is being prosecuted by Assistant U.S. Attorneys Emory V. Cole and Ariel L. Dean.
DEA-Led Operation Dismantles Clovis-Based Drug Trafficking OrganizationRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Towanda Thorne-James, Special Agent in Charge of the Drug Enforcement Administration’s El Paso Division, announced that a 6-count indictment against 7 alleged drug traffickers was unsealed following a coordinated, multiagency enforcement operation in Clovis and Ruidoso Downs, New Mexico.
During the federal arrests, agents seized six firearms and several kilograms of methamphetamine. Federal agents also assisted with the arrest of over 40 fugitives on state warrants.
A federal grand jury indicted 7 defendants on December 6, 2023. According to the indictment, between October of 2022 and December of 2023, Jose Badillo-Hernandez, 51, of Clovis, Rebecca Chavez, 39, of Portales, Joseph Sandoval, 50, of Clovis, his sister, Michelle Sandoval, 52, of Ruidoso Downs, William Voges, 53, of Ruidoso Downs, Daniel Perez, 53, a citizen of Mexico, and Manuel Pinon-Duran, 47, a citizen of Mexico, conspired to distribute 50 grams and more of methamphetamine in Curry, Lincoln, Roosevelt and Cibola Counties.
A criminal indictment is only an allegation. The defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face sentences of at least 10 years and up to life in prison.
The Drug Enforcement Administration investigated this case with the assistance of the Region V Drug Task Force, Homeland Security Investigations, U.S. Customs and Border Patrol, , Lincoln County Sheriff’s Department, and New Mexico State Police. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. Assistant U.S. Attorneys David Hirsch and Raquel Ruiz-Velez are prosecuting the case.
Read the Indictment# # #
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Creator of International Digital-Asset Exit Schemes Pleads Guilty to Defrauding InvestorsRead the Press Release
Earlier today, Ivars Auzins, a Latvian national, pleaded guilty at the federal courthouse in Brooklyn to conspiring to commit securities fraud in connection with defrauding investors in a series of digital-asset exit scams. Today’s proceeding took place before United States Magistrate Judge Taryn A. Merkl. When sentenced, Auzins faces up to five years in prison. As part of his sentence, Auzins has also agreed to pay $497,006 in forfeiture. Auzins was extradited to the United States from Latvia in August 2022.
Breon Peace, United States Attorney for the Eastern District of New York, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
The term “digital asset” refers to an asset that is issued and transferred using distributed ledger or blockchain technology. According to court filings and facts presented during the plea proceeding, Auzins and his co-conspirators fraudulently marketed multiple digital-asset offerings to investors worldwide by misrepresenting their products and services, the profits investors would earn and the qualifications of the individuals making the offerings. Auzins and his co-conspirators intentionally failed to deliver on these promises, diverting millions of dollars’ worth of proceeds for their personal benefit while continuing to represent that the benefits would be forthcoming.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney John O. Enright is in charge of the prosecution with assistance from Paralegal Jordi Martinez. The Justice Department’s Office of International Affairs worked with law enforcement partners in Latvia to secure the arrest and extradition of Auzins to the United States.
The Defendant:
IVARS AUZINS
Age: 31
Riga, LatviaE.D.N.Y. Docket No. 21-CR-357 (ERK)
Council Bluffs Man Sentenced to Five Years in Federal Prison for Drug and Firearm ChargesRead the Press Release
COUNCIL BLUFFS, Iowa – A Council Bluffs man was sentenced yesterday to five years in federal prison for possession of a firearm a felon and possession of cocaine and marijuana with the intent to distribute it.
According to public court documents, Terrance Tethur Yager, 58, was on probation when probation officers visited his home and found cocaine, marijuana, methamphetamine, mushrooms, and prescription pills in his garage and a loaded pistol in his truck. After completing his prison term, Yager will be required to serve a five-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Council Bluffs Police Department investigated the case.
Convicted Felon Sentenced to Four Years in Federal Prison for Possessing A Loaded FirearmRead the Press Release
Ocala, Florida – Senior United States District Judge Gregory A. Presnell has sentenced Eddie Lee Parks, III (24, Orlando) to four years in federal prison for possessing a firearm as a convicted felon. Parks had pleaded guilty on July 26, 2023.
According to the court records, in Lake County on April 10, 2023, law enforcement officers discovered Parks in possession of a loaded handgun during a domestic altercation. Parks had previously been convicted of three felonies, including two counts of aggravated assault with a deadly weapon (2019) and possession of a controlled substance (2019). As a convicted felon, Parks is prohibited from possessing firearms and ammunition under federal law.
This case was investigated by the Leesburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Hannah Nowalk.
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.
Colorado Man Sentenced for Trafficking Methamphetamine into UtahRead the Press Release
ST. GEORGE, Utah – A foreign national, and Colorado resident, was sentenced yesterday to 92 months imprisonment followed by four years supervised release, after he admitted to trafficking over 140 pounds of methamphetamine into the District of Utah in March 2022.
“It is mind-blowing to think about the downstream effects of this amount of drugs in the community,” said U.S. Federal District Court Chief Judge Robert J. Shelby. “Substantial sentences are necessary for people to understand the risks of trafficking drugs.”
According to court documents, Sergio Antonio Silva-Gonzalez, 24, of Denver, Colorado, pleaded guilty in September 2023 to illegally possessing methamphetamine with the intent to distribute. In Silva-Gonzalez’s written statement in advance of his plea of guilty, and admissions made in court at his change of plea hearing, he admitted that the methamphetamine he possessed at the time of his arrest weighed approximately 141 pounds. According to court records, and statements made by the federal prosecutor during Silva-Gonzalez’s sentencing hearing, in addition to the methamphetamine, the defendant was in the United States illegally. He also possessed and intended to distribute more than 500 grams of cocaine and was in possession of a firearm during and in relation to a drug trafficking crime.
“Community safety is a top priority. The amount of narcotics Mr. Silva-Gonzalez attempted to traffic into our state threatens the safety and lives of our citizens,” said United States Attorney Trina A. Higgins of the District of Utah. “Working with law enforcement, we will continue to prosecute these types of cases and seek appropriate federal sentences to protect the community.”
“The amount of drugs is staggering. Adding the stolen firearm makes it downright disturbing,” said Assistant U.S. Attorney Brady Wilson during the sentencing hearing.
The case was investigated by Homeland Security Investigations.
"HSI will aggressively pursue individuals who bring poison into our communities and try to profit off the misery they leave behind," said Christopher Miller, Special Agent in Charge, Homeland Security Investigations.
Assistant United States Attorney, Brady Wilson, of the District of Utah prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Cleveland Man Sentenced to More than 16 Years for Possessing Narcotics and Being a Felon in Possession of FirearmsRead the Press Release
CLEVELAND - U.S. Attorney Rebecca C. Lutzko announced today that William Sims, 46, of Cleveland, Ohio, was sentenced to 195 months in prison by U.S. District Judge Dan Aaron Polster after a jury convicted Sims of all seven drug trafficking and firearms charges against him.
According to court documents and testimony, on November 26, 2021, after completing controlled purchases of crack cocaine from William Sims during the prior week, Cleveland Police detectives executed a search warrant on Sims’ home. During the search, detectives found Sims in possession of approximately 154.5 grams of methamphetamine, approximately 124.51 grams of crack cocaine, approximately 78.59 grams of fluorofentanyl and fentanyl, as well as numerous mixtures containing other narcotics like cocaine and heroin. The majority of the drugs were found in Sims’ bedroom, in close proximity with two loaded firearms and ammunition found under Sims’ bed. Sims is prohibited from possessing firearms due to a prior felony conviction.
The investigation preceding the indictment was conducted by Cleveland Police Department and the FBI. This case was prosecuted by Assistant U.S. Attorneys Payum Doroodian and Alejandro Abreu.
Catoosa Resident Pleads Guilty to Violent Assault ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that James Tyler Garbey, age 36, of Catoosa, Oklahoma, entered a guilty plea to an Indictment charging him with Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country and Assault Resulting in Substantial Bodily Injury to a Spouse or Intimate Partner in Indian Country.
The Indictment alleged that on July 19, 2023, Garbey assaulted the victim with a knife, causing substantial bodily injury. The crimes occurred in Wagoner County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Wagoner County Sheriff’s Office.
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. Garbey was remanded to the custody of the U.S. Marshals Service pending sentencing.
Assistant United States Attorney Michael E. Robinson represented the United States.
Cape Girardeau Man Sentenced to Serve 7 Years in Federal Prison for Possession of a Firearm Later Used in Bar ShootoutRead the Press Release
CAPE GIRARDEAU – The U.S. Attorney's Office announced that Jeremiah R. Twiggs, age 40, of Cape Girardeau, Missouri, was sentenced Friday to 7 years in federal prison following his guilty plea to the offense of being a previously convicted felon in possession of a firearm. Twiggs appeared for his sentencing hearing before U.S. District Judge Stephen R. Clark at the federal courthouse in Cape Girardeau, Missouri.
According to court documents, officers were dispatched to a bar known as “Hot Shots” in Cape Girardeau last March in response to a report of multiple shots being fired inside the establishment. Upon arrival, officers discovered a male subject identified as Larry McIntyre lying on the ground with multiple gunshot wounds. McIntyre was rushed to the emergency room for treatment of serious injuries. Officers processed the scene and discovered a .40 caliber pistol on the floor, along with a total of sixteen spent shell casings.
Officers subsequently reviewed video surveillance footage, which depicted McIntyre getting into an altercation with two male subjects around a pool table. Moments before shots were fired, the footage depicted McIntyre reach into another subject’s sweatshirt to retrieve a firearm. McIntyre then discharged the firearm as he was simultaneously shot by the other two assailants multiple times.
Through their investigation, the Cape Girardeau Police Department identified Twiggs as the person from whom McIntyre obtained the firearm. During an interview with detectives, Twiggs confirmed that he accompanied McIntyre to the bar on the night in question. Twiggs told detectives that the .40 caliber pistol belonged to McIntyre. According to Twiggs, he concealed the pistol inside his sweatshirt at McIntyre’s request before entering the bar. Twiggs further stated that, during the altercation around the pool table, McIntyre took the pistol from him right before he was shot. Twiggs is prohibited from possessing firearms under federal law due to numerous felony convictions.
After serving his prison sentence, Twiggs will be placed on supervised release for a period of three years. The Cape Girardeau Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. Assistant U.S. Attorney Jack Koester handled the prosecution for the government.
Canadian Man Sentenced for Conspiring to Smuggle 142 Kilograms of CocaineRead the Press Release
UTICA, NEW YORK – Guillaume Latour-Laitre, age 27, of Prevost, Quebec, was sentenced yesterday to 120 months in prison for conspiring to traffic 142 kilograms of cocaine.
United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
Latour-Laitre previously pled guilty to conspiracy to distribute and possess with intent to distribute a controlled substance. In doing so, he admitted that from November 2019 through December 7, 2019, as vice president of a commercial trucking company in Quebec, he trafficked cocaine from the United States to Canada via tractor trailer. On December 7, 2019, Latour-Laitre’s co-conspirator and employee at the trucking company, Jason Nelson, attempted to leave the United States for Canada at the Derby Line, Vermont Port of Entry. At the border, U.S. Customs and Border Protection (CBP) Officers performed an outbound inspection on Nelson’s tractor trailer and discovered approximately 142 kilograms of cocaine hidden in a secret compartment in the trailer. Latour-Laitre was extradited from Canada in December 2022 to face the charges.
Nelson was sentenced, on April 27, 2022, to 72 months in prison and 5 years of supervised release.
United States District Judge David N. Hurd also imposed a 5-year term of supervised release, which will start when Latour-Laitre is released from prison. Upon his release from prison, Latour-Laitre may be removed/deported from the United States.
HSI and CBP investigated the case and Assistant United States Attorney Douglas Collyer prosecuted the case. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Latour-Laitre.
Cambria County Woman Sentenced to 30 Months in Prison for Conspiracy to Commit Health Care FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Florentina Mayko, age 40, of Cambria County, Pennsylvania, was sentenced on December 14, 2023, by U.S. District Judge Yvette Kane to 30 months in prison. In June 2023, Mayko pleaded guilty to a one-count information charging her with conspiracy to commit health care fraud for defrauding Medicare and the U.S. Department of Health and Human Services between 2017 and 2019.
According to United States Attorney Gerard M. Karam, Mayko agreed with others to defraud Medicare by submitting medically unnecessary urine drug tests for chronic opioid patients at medical clinics where she was the chief executive officer, including a group of clinics known as Pain Medicine of York or “PMY” (also known as All Better Wellness).
Mayko became the CEO of Pain Medicine of York around January 2018. Prior to that, Mayko served as Director of Operations of a group of medical practices known in the Information as “Practice Group 1.” Mayko was hired to work at Practice Group 1 by an individual known in the Information as Physician 1.
The owner of PMY, known as “PMY Owner” in the Information, was friends and business partners with Physician 1. “PMY Owner” refers to Rodney L. Yentzer, who has separately pleaded guilty to conspiracy to commit health care fraud and conspiracy to commit money laundering for his participation in the same scheme to defraud Medicare. Yentzer is still awaiting sentencing.
Physician 1 was imprisoned for health care fraud and federal tax offenses in mid-2017, at which point the operation of Practice Group 1 was transitioned to PMY. When Mayko was promoted to the position of CEO of PMY, her responsibilities did not materially change. From the time of her promotion onward, Mayko was in charge of the day-to-day management of PMY’s operations, which included the practices previously associated with Practice Group 1.
PMY had a policy, established in 2016 by Physician 1 and Yentzer, of ordering multiple urine drug tests for each patient at every PMY office visit, despite a lack of medical necessity. From mid-2017 onward, Mayko and Yentzer were repeatedly confronted with information regarding the unlawful nature of the company’s UDT billing practices but continued to utilize the practice until search warrants were executed at PMY’s various locations in November 2019. PMY ceased operations soon thereafter because it could no longer retain medical providers.
PMY billed Medicare for more than $10 million in urine drug tests from mid-2017 through the end of 2019, and Medicare paid out over $5 million for these urine drug tests. The urine drug tests ordered by PMY were sent to an in-house laboratory at PMY whenever possible. As a result, when medically unnecessary tests were billed to Medicare, the proceeds from them went to PMY itself. A large portion of these proceeds went to Yentzer and Mayko. In 2018 and 2019, for instance, Mayko earned around half a million dollars per year. Mayko, in turn, purchased several investment properties using these funds.
Judge Kane also ordered Mayko to pay $1,408,976.48 in restitution and to forfeit to the United States several properties located in Ocean City, Maryland and Myrtle Beach, South Carolina.
The case was investigated by the U.S. Department of Health and Human Services Office of Inspector General, Federal Bureau of Investigation, Drug Enforcement Administration Diversion Control Program, and the Pennsylvania Office of Attorney General. Assistant U.S. Attorney Ravi Romel Sharma and Special Assistant U.S. Attorney Robert Smultkis prosecuted the case.
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California CEO Pleads Guilty to Employment Tax CrimesRead the Press Release
OAKLAND – A South Lake Tahoe man pleaded guilty to willfully failing to pay employment tax withholdings due to the IRS, announced U.S. Attorney Ismail J. Ramsey, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, and Internal Revenue Service Criminal Investigation (IRS-CI), Oakland Field Office, Acting Special Agent in Charge Mark Silva.
According to court documents and statements made in court, in 2016 and 2017, Robert Hienekamp, 58, was the Chief Executive Officer of Endowance Solutions, Inc., a software consulting and development company. During each of those years, Endowance Solutions withheld income, Social Security, and Medicare taxes from its employees’ wages. Hienekamp, however, did not file the legally required quarterly employment tax returns or pay the withholdings due to the IRS, despite knowing of his obligation to do so. In total, Hienekamp caused a tax loss of over $800,000.
Hienekamp is scheduled to be sentenced on June 27, 2024, and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS-CI, Oakland Field Office, is investigating the case.
Trial Attorney Mahana Weidler of the Tax Division and Assistant U.S. Attorney Michael Lagrama of the Northern District of California are prosecuting the case.
Buffalo man charged with allegedly starting fire on railroad tracks in FarnhamRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Michael B. Benitez, 33, of Buffalo, NY, was arrested and charged by criminal complaint with arson of property used in interstate commerce. The charge carries carry a mandatory minimum penalty of five years in prison, and a maximum of 20 years.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that according to the complaint, in the early morning hours of June 14, 2023, the Village of Farnham Fire Department responded to a fire on railroad tracks just west of the Railroad Avenue grade crossing in Farnham. While the fire department responded, trains were being held until the fire, the source of which was several tires burning, could be extinguished. Subsequent investigation by the Norfolk Southern Police Department revealed freshly trampled grass and a path directly adjacent from the tracks to the nearby residence of Benitez. Video obtained during the investigation appears to show Benitez leaving and returning to the residence during the time of the fire.
Benitez made an initial appearance this morning before U.S. Magistrate Judge H. Kenneth Schroder, Jr. and was released on conditions.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the Town of Brandt Police Department, under the direction of Chief Mark Slawek, and Norfolk Southern Police Department.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Bellevue, Washington tax preparer indicted for aiding and assisting with false tax returnsRead the Press Release
Seattle – A 63-year-old Bellevue, Washington, tax preparer was indicted this week on 14 counts of aiding and assisting with the preparation and presentation of false tax returns, announced Acting U.S. Attorney Tessa M. Gorman. Thanjavur Manavalan, the owner and operator of Mano Accounting Services, made his initial appearance on the indictment today. He entered a plea of “not guilty,” and trial was scheduled in front of U.S. District Judge Lauren King on February 20, 2024.
According to the indictment, Manavalan falsified a variety of items on clients’ tax returns, including charitable contributions, proceeds and initial price (basis) of investments sold, business losses, rental income, and private loans. Manavalan’s tax preparation business filed thousands of returns and grew substantially over the course of the fraud scheme.
The indictment lists 14 different tax returns for tax years 2018-2020 alleged to contain false and fraudulent information. The total tax loss to the U.S. Treasury from the 14 counts charged in the indictment is estimated to exceed $500,000. Manavalan has owned and operated Mano Accounting Services since 2004.
Aiding and assisting with the preparation and presentation of a false tax return is punishable by up to three years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Internal Revenue Service Criminal Investigation (IRS-CI).
The case is being prosecuted by Assistant United States Attorney David T. Martin.
manavalan_indictment.pdfBaton Rouge Man Charged with Falsely Holding Himself as a Medical Doctor and Making False StatementsRead the Press Release
A federal grand jury recently returned a three-count indictment charging Samrat Mukherjee, 35, of Baton Rouge, Louisiana with falsely holding himself as a medical doctor and making false statements by calling in prescriptions without authority.
According to the indictment, Mukherjee was a licensed paramedic who worked for Acadian Ambulance Service, Inc. Mukherjee did not attend or graduate from medical school. However, the indictment alleges that while employed by Acadian Ambulance, Mukherjee falsely held himself to co-workers and friends as a licensed medical doctor. From in or around May 2019 through in or around November 2022, Mukherjee allegedly called in prescriptions to various pharmacies for himself and others. The indictment alleges that when calling in those prescriptions, Mukherjee falsely and fraudulently claimed that he was instead other actual doctors and had authority to write prescriptions.
This matter is being investigated by the Department of Health and Human Services Office of Inspector General (HHS-OIG) and is being prosecuted by Assistant United States Attorney Kristen Lundin Craig, Trial Attorney Samantha E. Usher, and Assistant Chief Justin M. Woodard.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Baker man sentenced to two years in prison for possessing child pornographyRead the Press Release
BILLINGS — A Baker man who admitted to possessing child pornography was sentenced today to two years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Dane Ralph James Curry, 40, pleaded guilty in August to possession of child pornography.
U.S. District Judge Susan P. Watters presided. The court also ordered $2,511 restitution.
In court documents, the government alleged that in October 2021, law enforcement began an investigation of Curry after it received reports that he had produced child pornography. A minor person, identified as Jane Doe, disclosed to law enforcement that Curry arranged to take sexually explicit picture of her and provided her with alcohol for that purpose. This conduct led to a search warrant of a social media account associated with Curry and the discovery of child pornography on the account.
The U.S. Attorney’s Office prosecuted the case, which was investigated by the FBI.
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 U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Altamonte Springs Dentist Sentenced to Two Years in Federal Prison for Tax EvasionRead the Press Release
Ocala, Florida – Senior United States District Judge Gregory A. Presnell has sentenced Frantz Brignol to two years in federal prison for tax evasion. In addition to the prison sentence, Brignol was ordered to pay the Internal Revenue Service (IRS) $896,588.89 for his outstanding tax liabilities. A federal jury had found Brignol guilty in August 2023.
According to testimony and evidence presented at trial, Brignol amassed more than $600,000 in tax liabilities to the IRS between 2014 and 2020. He evaded tax payments on his income by hiding hundreds of thousands of dollars in his mother’s bank accounts (for which he had signatory authority), trading funds overseas in his mother’s name, and making materially false statements to the IRS on financial disclosure forms.
“Dr. Brignol lied to the IRS about his assets and exploited his elderly mother as a nominee, all to evade paying his fair share of federal income tax,” said Tara K. Reed IRS-CI Acting Special Agent in Charge. “You cannot brush off your tax obligations. Today’s sentencing reinforces the principle that everyone, regardless of status, will pay the price if they choose to violate the law.”
This case was investigated by the Internal Revenue Service—Criminal Investigation. It was prosecuted by Assistant United States Attorneys Hannah Nowalk and William S. Hamilton.
Activity in the U.S. Attorney's OfficeRead the Press Release
Attempt to Entice a Minor to Engage in Sexual Activity
Adam Paul Custeau, age 27, of Casper, Wyoming, was sentenced to 120 months in prison for attempting to entice a minor to engage in sexual activity. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Nov. 30, 2023, in Casper, Wyoming. This crime was investigated by Homeland Security Investigations, Wyoming Division of Criminal Investigation and the Wyoming Highway Patrol. The case was prosecuted by Assistant U.S. Attorney Seth Z. Griswold.
Drug and Firearms Offenses
Zachary Thomas Stott, age 30, of Gillette, Wyoming, was sentenced to 143 months and 9 days for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Senior U.S. District Court Judge Nancy D. Freudenthal imposed the sentence on Dec. 15 in Cheyenne. According to court documents, on Oct. 7, 2022, Stott was pulled over by the Casper Police Department. Controlled substances, drug paraphernalia and a firearm were located in his vehicle. The defendant admitted that everything belonged to him. Stott is a convicted felon who is prohibited from possessing firearms. This crime was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Casper Police Department. The case was prosecuted by Assistant U.S. Attorney Jonathan C. Coppom.
Drug Trafficking
Matthew Ryan Natoli, age 46, of Menifee, California, was sentenced to 77 months in prison for conspiracy to distribute methamphetamine. Senior U.S. District Court Judge Nancy D. Freudenthal imposed the sentence on Dec. 15 in Cheyenne. According to court documents, Matthew Natoli was shipping methamphetamine to an individual in Evanston, Wyoming. Matthew Natoli pled guilty in September. This crime was investigated by the U.S. Postal Service and prosecuted by Assistant U.S. Attorney Timothy J. Forwood.
Jevon Leon Bynum, age 44, of Casper, Wyoming, was sentenced to 108 months’ imprisonment for possession with intent to distribute fentanyl. According to court documents, in February, the U.S. Postal Inspection Service (USPIS) and the Wyoming Division of Criminal Investigation (DCI) were investigating an illegal fentanyl trafficker who had been distributing fentanyl throughout Wyoming via the USPS. This distributor was arrested and his cell phone was seized. Bynum’s cell number was seen communicating with the distributor. Agents conducted a search of Bynum’s residence and his mother’s residence, where packages were sent, and recovered 160 grams of fentanyl, a USPS shipping box addressed to Bynum and drug paraphernalia. Bynum waived indictment and pleaded guilty to the information. The case was prosecuted by Assistant U.S. Attorney Timothy J. Forwood. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence, which included $500 in community restitution, on Dec. 12.
Raymond Paddock, 66, of Cheyenne, Wyoming, was sentenced to 33 months in prison for possession with intent to distribute fentanyl. According to court documents, on Mar. 12, Paddock was a passenger in a truck that was pulled over for a traffic stop. A Cheyenne Police Department officer arrived and deployed a canine that indicated the presence of narcotics. A search of the vehicle uncovered a plastic bag containing approximately 1,000 fentanyl pills under the passenger seat where Paddock was sitting. Paddock waived indictment and pled guilty to the information in September. The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Timothy J. Forwood.
About the United States Attorney’s Office
The United States Attorney’s Office is responsible for representing the federal government in virtually all litigation involving the United States in the District of Wyoming, including all criminal prosecutions for violations of federal law, civil lawsuits brought by or against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Office is involved in several programs designed to make our communities safer. They include:
Environmental Justice
The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.
Project Safe Childhood
Project Safe Childhood (PSC) is a DOJ initiative that combats the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for sexual contact is well-known and serious.
Project Safe Neighborhoods
Project Safe Neighborhoods (PSN) is a nationwide commitment to reducing gun and gang crime in America by networking existing local programs that target gun crime and providing these programs with additional tools necessary to be successful.
Victim Witness Assistance
The Victim Witness Coordinator for the United States Attorney’s Office for the District of Wyoming is dedicated to making sure that victims of federal crimes and their family members are treated with compassion, fairness, and respect.To report a federal crime, go to: https://www.justice.gov/actioncenter/report-crime#trafficking
Activist Pleads Guilty to Defacing a Degas Exhibit at the National Gallery of ArtRead the Press Release
WASHINGTON – A New York woman pleaded guilty today to one count of causing injury to a National Gallery of Art exhibit in the May 26, 2023, defacement of Edgar Degas’ Little Dancer, Age Fourteen.
Joanna Smith, 54, of Brooklyn, N.Y., pleaded guilty before U.S. District Judge Amy Berman Jackson in Washington D.C., announced U.S. Attorney Matthew M. Graves and Acting Special Agent in Charge David Geist, of the FBI’s Washington Field Office’s Criminal and Cyber Division.
According to the government’s evidence, Smith, along with other co-conspirators, traveled to Washington D.C., to smear red and black paint on the National Gallery of Art permanent exhibition of Little Dancer, Age Fourteen, a sculpture created by Degas in 1881. Smith and a co-conspirator previously had conducted research on the piece and specifically targeted it. Before entering the National Gallery, the duo recorded video statements explaining their intent. Smith and the co-conspirator passed through security undetected with paint secreted inside water bottles.
The duo approached the exhibit, removed the bottles from their bags, and began smearing paint on the case and base surrounding Little Dancer, Age Fourteen. Smith delivered statements telling onlookers why she was undertaking the action as paint dripped from the exhibit onto the surrounding floor.
Following the action, the National Gallery was required to remove the sculpture from public display for 10 days. Gallery officials said it cost over $4,000 to repair the damage.
Judge Berman Jackson scheduled sentencing for Apr. 3, 2024. The charge carries a statutory maximum sentence of five years in prison and a fine of up to $250,000. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes. The sentencing will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case is being investigated by the FBI’s Washington Field Office, specifically the FBI’s Art Crime Team, with assistance from National Gallery of Art Police, and U.S. Park Police. The case is being prosecuted by Assistant U.S. Attorney Cameron A. Tepfer of the U.S. Attorney’s Office for the District of Columbia.
14 December 2023
Woman Sentenced to More Than 11 Years in Prison for Role in Large-Scale Fentanyl Trafficking Organization with Ties to Sinaloa, MexicoRead the Press Release
BOSTON – A Dominican woman has been sentenced for possessing seven kilograms of fentanyl as well as one kilogram of fentanyl and fentanyl analogue intended for distribution.
Ana Checo, 42, was sentenced by U.S. District Court Judge Indira Talwani on Dec. 7, 2023 to 135 months in prison and five years of supervised release. On Sept. 6, 2023, Checo pleaded guilty to one count of possession with intent to distribute 400 grams or more of fentanyl and 100 grams or more of valeryl fentanyl and one count of money laundering conspiracy.
“The devastating impact fentanyl continues to have on our communities cannot be overstated,” said Acting United States Attorney Joshua S. Levy. “This sentence underscores our unwavering determination to identify and bring to justice those responsible for putting deadly fentanyl on our streets. Our office will continue to use every resource at our disposal to dismantle criminal enterprises that seek to profit off of addiction and misery.”
“Fentanyl is causing tremendous damage to the state of Massachusetts,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division. “Let this sentence be a warning to those traffickers who are distributing this poison in order to profit and destroy people’s lives. DEA’s top priority is combatting the opioid epidemic by working with our local, county, state and federal partners to bring to justice anyone who distributes this deadly drug.”
In June 2019, Checo was identified as a member of a large-scale drug trafficking and money laundering organization working with drug suppliers based in Sinaloa, Mexico. Specifically, Checo was responsible for receiving narcotics – namely fentanyl – from the drug suppliers for distribution in Massachusetts, as well as delivering drug proceeds in bulk cash to money launderers who laundered the proceeds back to the suppliers in Mexico.
In June 2019, Checo delivered $58,510 in drug proceeds to an undercover officer for laundering. In July 2019, a search of Checo’s residence resulted in the recovery of over 12 kilograms of narcotics – including approximately seven kilograms of fentanyl, four kilograms of tramadol, one kilogram of a fentanyl and fentanyl analogue mixture and one kilogram of a hallucinogen. The drugs were found stored in bags inside Checo’s bedroom closet as well as her daughter’s bedroom closet. Also seized was $18,325 in cash as well as several notebooks that detailed drug transactions dating back to 2017.
In April 2020, Checo arranged to deliver $250,000 in bulk cash to an undercover agent posing as a money launderer who had accepted a contract to launder the money from a money broker. Similarly, in April and May 2021, Checo arranged to deliver $100,000 to undercover agents posing as money launderers who had accepted contracts to launder the money from money brokers.In April 2020, nearly $250,000 in bundled cash was seized from Checo as she was traveling to deliver the money to an undercover officer for laundering. Similarly, over two separate occasions in April and May 2021, Checo delivered a total of $200,000 to undercover agents for laundering. On May 26, 2021, in Peabody, Mass., Checo met with a tractor trailer driver and received a suitcase that contained 55 kilograms of fentanyl – worth over $1 million. The fentanyl was ultimately seized later that day.
Acting U.S. Attorney Levy and DEA SAC Boyle made the announcement. Assistant U.S. Attorney Katherine Ferguson of the Narcotics & Money Laundering Unit prosecuted 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.
Woman Pleads Guilty to Smuggling Endangered Sea Cucumbers through South Florida AirportRead the Press Release
MIAMI – On Dec. 11, Xiao Pingping, 38, pled guilty to smuggling shark fins, sea horses, and sea cucumbers and attempted smuggling of American Ginseng. The Court sentenced her the same day to one month in federal prison.
The three-count indictment charged Xiao with two counts of smuggling shark fins, sea horses, and sea cucumbers into the United States and one count of smuggling American ginseng out of the United States. American ginseng (Panax quinquefolius) is a plant species that is protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
According to the agreed upon factual proffer in support of Xiao’s plea to the three-count indictment, on January 14, 2022, Xiao sent a package from Brazil to an individual in Florida and Xiao intentionally misidentified the contents of the package. Xiao wrote on the shipping label that the package contained “fish belly,” when, instead, she had concealed 33 sea horses, 435 sea cucumbers, and 16 shark fins, which are wildlife and required to be declared to the United States Fish and Wildlife Service (“USFWS”), pursuant to federal regulations.
On Nov. 19, Xiao travelled from Managua, Nicaragua to Fort Lauderdale-Hollywood International Airport (“FLL”), Florida. When border officers reviewed Xiao’s luggage in an X-ray scan, they observed various anomalies. Xiao lied to the border agents and told them that she was not carrying any plants, food, seeds, fruits, vegetables, endangered species and/or meat on her person or in her luggage and had nothing to declare. Border officers searched Xiao’s luggage by hand and identified 11 sea cucumbers concealed in the clothing packed in her bag. After the border officers discovered the sea cucumbers, Xiao intentionally misidentified the wildlife by telling the border officers that the sea cucumbers were “fish belly,” however, she later admitted they were sea cucumbers, which are required to be declared to USFWS pursuant to federal regulations. Border officers seized the sea cucumbers and explained to Xiao that federal regulations and laws required her to declare plants and wildlife.
On Nov. 24, Xiao checked a cardboard box at FLL for a flight from FLL to Managua, Nicaragua. Border officers again observed various anomalies that resembled organic material inside the box when the box passed through an x-ray scan. Border officers stopped Xiao on the jet bridge as she attempted to board the aircraft with a piece of carry-on luggage. Xiao denied that she had anything in her bags or checked box to declare. Border officers searched Xiao’s checked box and carryon luggage by hand and discovered 9 bags and four boxes of American Ginseng contained therein. Pursuant to federal regulations, CITES requires an export permit for protected plant species such as American Ginseng. Xiao intentionally failed to disclose the American Ginseng, knowing she had a declaration duty after being informed of such agricultural regulations just five days prior when border officers searched her luggage and seized the eleven sea cucumbers.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Stephen Clark for USFWS Office of Law Enforcement, Southeast Region, made the announcement.
USFWS Office of Law Enforcement in Miami, Florida and Portland, Oregon conducted the investigation, with assistance from Homeland Security Investigations and Customs and Border Protection.
The case is being prosecuted by Assistant U.S. Attorney Emily R. Stone.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-CR- 60231-WPD.
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