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14 December 2023
Illegally Armed Methamphetamine Trafficker Is Sentenced to 27 Years in PrisonRead the Press Release
ASHEVILLE, N.C. – Today, Brandon Alan Purvis, 44, of Waynesville, N.C., was sentenced to 27 years in prison followed by five years of supervised release for trafficking methamphetamine and illegal possession of a firearm, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Sheriff William Wilke of the Haywood County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to documents filed with the court, in October 2021, an investigation into Purvis’s drug trafficking activities was initiated, after law enforcement learned that the defendant was acquiring methamphetamine and redistributing it to others in and around Haywood County. On November 2, 2021, law enforcement conducting surveillance observed Purvis drive away from his residence in Waynesville. Shortly thereafter, Haywood County deputies attempted to pull over Purvis’s vehicle for a traffic violation. Purvis failed to stop and continued to speed away with the deputies in pursuit of the vehicle. As Purvis was driving over a bridge, deputies observed Purvis toss a backpack from his passenger window into the river and he continued to speed away.
According to court records, Purvis eventually stopped his vehicle and was arrested at the scene. Haywood County officers recovered nearly $9,000 in cash, narcotics, and an air power rifle from Purvis and his vehicle. Law enforcement then located the backpack Purvis had tossed into the river and found more than 1.7 kilograms of methamphetamine at the bottom of the bag. Law enforcement also executed a search warrant at Purvis’s residence. During the search, law enforcement seized a loaded firearm and more than $17,000 in cash. Purvis has a lengthy criminal history and he is prohibited under federal law of possessing a firearm or ammunition. Court records also show that over the course of the investigation law enforcement determined that Purvis was responsible for trafficking over $2.5 kilograms of methamphetamine.
On May 17, 2023, Purvis pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm by a felon. He is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King credited the investigative work of the U.S. Drug Enforcement Administration and the Haywood County Sheriff’s Office, which are part of an investigation led by the Western District’s Organized Crime Drug Enforcement Task Force (OCDETF). U.S. Attorney King also thanked the Henderson County Sheriff’s Office, the Swain County Sheriff’s Office, the Waynesville Police Department, the McDowell County Sheriff’s Office, the Canton Police Department, the Buncombe County Sheriff’s Office, the Maggie Valley Police Department, the North Carolina State Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their investigative efforts in the broader OCDETF investigation.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
Assistant U.S. Attorney Christopher Hess with the U.S. Attorney’s Office in Asheville prosecuted the case.
Gretna Man Pleads Guilty to Violating the Federal Controlled Substances and Gun Control ActsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that FELIX MACKEY pled guilty on December 13, 2023 to violating the Federal Controlled Substances and Gun Control Acts before United States District Judge Jane Triche Milazzo.
MACKEY pled guilty to Counts 1 and 5 of the indictment. Count 1 charges him with conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine hydrochloride, and cocaine base, all Schedule II controlled substances, in violation of Title 21, United States Code, Section 841(a)(1) and Title 21, United States Code, Section 846. Count 5 charges him with being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
For Count 1, MACKEY faces a mandatory minimum of ten (10) years imprisonment up to a maximum of life in prison, a fine of up to $10,000,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person, and a term of supervised release for a period of not less than five (5) years but up to life. For Count 5, he faces up to ten (10) years in prison, a fine of up to $250,000, and up to three (3) years of supervised release. Additionally, MACKEY faces payment of a mandatory special assessment fee of $100.00 per count . MACKEY’s sentencing is set for March27, 2024.
According to court documents, in May 2021, MACKEY sold methamphetamine to a confidential source on three occasions. On June 3, 2021, law enforcement executed a search warrant on MACKEY’s residence and found 92.127 grams of methamphetamine hydrochloride, 99.31 grams of cocaine, and 10.13 grams of cocaine base. Law enforcement also seized a black Taurus Model PT111, 9millimeter pistol, that was loaded with eleven (11) live cartridges. MACKEY was previously convicted of a felony in Plaquemines Parish. MACKEY admitted to sole ownership of all evidence recovered.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by agents from the Drug Enforcement Administration and the Jefferson Parish Sheriff’s Office. The case was prosecuted by Assistant United States Attorneys, Bayonle Osundare, Christopher Usher, Nolan Paige, and Rachal Cassagne of the Narcotics Unit.
Greenville Woman Sentenced to Federal Prison for Making Fraudulent Statements to MedicaidRead the Press Release
COLUMBIA, S.C. — Nina Bourret, 41, of Greenville, was sentenced to one year and one day in federal prison after pleading guilty to making fraudulent statements to Medicaid in connection with the delivery of autism spectrum disorder services.
Evidence obtained in the investigation revealed that Bourret was an owner of Agapi Behavior Consultants, Inc. (“Agapi), which was a business that provided Applied Behavior Analysis (ABA) therapy to treat Autism Spectrum Disorder (ASD). From Feb. 2021 to Dec. 2022, Bourret submitted electronic claims to Medicaid on behalf of Agapi that falsely and fraudulently certified that services had been rendered and/or certified that services had been rendered in excess of what was actually provided to the beneficiary. The investigation revealed Bourret and Agapi submitted claims to Medicaid that contained false and fraudulent statements in the amount of $984,239.30.
Senior United States District Judge Henry Michael Herlong, Jr. sentenced Bourret to 12 months and one day imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
Bourret was also ordered to pay $1,760,547.94 in restitution. The restitution ordered represents the amount of fraudulent claims Bourret submitted to Medicaid while operating Agapi and an additional $776,308.64, which represents fraudulent claims Bourret submitted to Medicaid between May 2022 and May 2023 through a company called Navis Pad.
“When the programs that are intended to help those in most need of medical care are exploited, it takes away valuable resources from our neighbors,” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “We will continue to work with our law enforcement partners to combat healthcare fraud in all its forms.”
“The defendant’s actions compromised the integrity of our healthcare systems,” said Steve Jensen, Special Agent in Charge of the FBI Columbia Field Office. “The message is clear; the FBI and its law enforcement partners remain steadfast in delivering justice for victims and bringing accountability to those who take advantage of our country’s healthcare programs.”
"Individuals who submit fraudulent claims to Medicaid undermine a valuable health care program intended to care for some of the most vulnerable populations in our communities,” said Tamala Miles, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is committed to working with our law enforcement partners to ensure that those alleged of defrauding federal health care programs are held accountable.”
“The South Carolina Attorney General’s Office condemns businesses that defraud the government to line their own pockets at the expense of South Carolina’s less fortunate and vulnerable individuals,” said South Carolina Attorney General Alan Wilson. “This is not a victimless crime, and we will continue to investigate these matters to combat provider fraud that ultimately affects everyone in South Carolina.”
The case was investigated by the FBI Columbia Field Office, the Department of Health and Human Services – Office of the Inspector General, and the South Carolina Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Amy Bower prosecuted the case.
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Greene County Men Sentenced to Jail for Tax Evasion ConspiracyRead the Press Release
ALBANY, NEW YORK – Dennis Radcliffe, age 52, and Kenneth Radcliffe, age 50, each of Elka Park, New York, were each sentenced today to 6 months in jail, and to pay a $40,000 fine, for conspiring to evade taxes on income earned from stock sales.
United States Attorney Carla B. Freedman and Thomas Fattorusso, Special Agent in Charge, New York Field Office, Internal Revenue Service-Criminal Investigation (IRS-CI), made the announcement.
Dennis Radcliffe and Kenneth Radcliffe, who are cousins, each previously pled guilty to two conspiracies. In the first conspiracy, they conspired with each other to avoid taxes on their personal income, by failing to report several million dollars of income earned principally from sales of penny stocks, from 2014 through 2017. The stock sales occurred in brokerage accounts that Dennis Radcliffe and Kenneth Radcliffe controlled, and which stood in the names of their companies Crackerjack Classics LLC (“Crackerjack”) and Universal Consulting LLC (“Universal”).
In the second conspiracy, Dennis Radcliffe and Kenneth Radcliffe conspired with each other and with Joseph Radcliffe, Dennis’s father, to avoid taxes on approximately $500,000 in compensation that Crackerjack and Universal paid to Joseph, from 2013 through 2019. Joseph Radcliffe was a former Wall Street stockbroker and at the time he was evading the payment of taxes, he owed more than $1 million to the U.S. Securities and Exchange Commission (SEC), after settling fraud allegations with the SEC in 2011. Joseph Radcliffe has also failed to repay the SEC.
United States District Judge Glenn T. Suddaby also ordered Dennis Radcliffe to pay $77,552 in restitution to the IRS and ordered Kenneth Radcliffe to pay an additional $152,274 in restitution. In imposing sentence, Judge Suddaby noted that the defendants “come from good people” and that there was no excuse for their willful conduct. “This is just all about greed – pure, unadulterated greed,” said Judge Suddaby.
Joseph Radcliffe, age 76, of Elka Park, was sentenced in August 2022 to 3 years of probation, to include 4 weekends in jail, and to pay $109,106 in restitution to the IRS, following his guilty plea to tax evasion conspiracy.
IRS-CI investigated this case and Assistant U.S. Attorney Michael Barnett prosecuted this case.
Franktown Man Pleads Guilty to Aiming a Laser Pointer at Police HelicopterRead the Press Release
DENVER—The U.S. Attorney’s Office for the District of Colorado announces Kevin William Adamchak, age 43, of Franktown, pleaded guilty to a single count of aiming a laser pointer at an aircraft.
According to the plea agreement, on March 2, 2023, a helicopter operated by the Denver Police Department, “Air 1,” was assisting other Colorado-based law enforcement agencies with aerial surveillance. While in flight, Air 1 was struck by a blue laser. Using a thermal imager and camera, the Air 1 crew determined that the laser strike originated from a parking lot near the intersection of East 55th Avenue and Logan Court in Denver. Air 1 located a suspect associated with the laser strike, who was later identified as Defendant Adamchak.
During a subsequent interview, the pilot of Air 1 at the time of the laser strike reported that the laser strike caused flash blindness and intense pain in both of his eyes. He was able to maintain control of the aircraft until his visual orientation returned.
“What some may think is just a prank—pointing a laser pointer at an aircraft—actually presents a deadly risk to people in the aircraft and on the ground,” said United States Attorney Cole Finegan. “We hope that this case will raise public awareness of these serious dangers.”
"A laser strike on an aircraft is not a game," said FBI Denver Special Agent in Charge Mark Michalek. "It's a serious action with possibly lethal consequences. The FBI will continue to vigorously investigate these incidents."
Adamchak is scheduled to be sentenced on March 7, 2024. A United States District Judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case. Assistant United States Attorneys Jena Neuscheler and Alecia Riewerts are handling the prosecution.
Case Number: 23-cr-00303-RMR
Four Individuals Face Federal Indictment for International Mail and Wire Fraud SchemeRead the Press Release
The scheme operated for years in West Michigan and throughout the United States
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that a federal grand jury returned an indictment charging Fatai Okunola, 37, of Kalamazoo, Michigan; Oluwaseyi Adeola, 33, and Ijeoma Adeola, 35, of Dallas, Texas; and Cory McDougal, 32, of Romeoville, Illinois, with conspiracy to commit mail and wire fraud. Oluwaseyi Adeola and Okunola also face charges related to their naturalization or attempt to naturalize as United States’ citizens.
“These fraud schemes can financially devastate victims, especially the elderly and other vulnerable people,” said U.S. Attorney Mark Totten. “Some of the victims in this case lost their retirement savings, took loans against their homes, or suffered other financial distress because of the defendants’ alleged lies. My office will vigorously investigate these cases to ensure the perpetrators are brought to justice.”
If convicted of conspiracy to commit mail and wire fraud, defendants face a maximum sentence of up to 20 years in prison. Okunola also faces up to 5 years in prison if convicted of making a false statement on his application for naturalization as a United States citizen, and Oluwaseyi Adeola faces up to an additional 10 years in prison if convicted of obtaining his naturalization as a United States citizen through false or fraudulent representations.
According to allegations in the indictment, the defendants conspired with individuals primarily in Nigeria to defraud individuals in the United States, many that were elderly or particularly vulnerable, through a variety of fraud schemes using interstate wire transmissions or the mail system. The conspirators in Nigeria created false online personas to develop relationships with their victims over the internet, through social media, by text messages or by telephone. These relationships centered around romantic interests, offers to buy or sell goods or services, apartment rentals, or offers to make loans or provide grant funding, among other schemes. The conspirators sent pictures or provided other information to the victims to make their schemes appear genuine. When the conspirators used telephone calls, they utilized voice-over-internet-protocol numbers to make it appear as if the calls were originating within the United States near the victims. After developing the relationships, the conspirators asked for money for a variety of reasons related to the scheme.
Once the victim agreed, the conspirators directed the victims to send the money to the defendants, who opened numerous bank accounts in the Western District of Michigan and other places to receive the victims’ money. On some occasions, the defendants received the victims’ money in post office boxes maintained under alias names or through payments made payable to “shell” businesses that the defendants created to receive fraud proceeds. The victims sent the money to the defendants through the mail, bank-to-bank transfers, or through peer-to-peer money transfer services like Zelle or PayPal. After the defendants received the money in their accounts, they transferred the money to each other, to the conspirators overseas, and to their own accounts in Nigeria. According to the indictment, defendants received more than $2 million dollars in their accounts from the scheme between 2017 and 2022.
“Postal Inspectors are committed to protecting Americans from scams that prey on the elderly and vulnerable," said Inspector in Charge Rodney M. Hopkins of the U.S. Postal Inspection Service's Detroit Division. “These individuals manipulated victims into giving away their hard-earned money, and in some instances, their life savings, which caused devastating financial impacts to the victims. Today's indictment is a testament to the dedication of the U.S. Postal Inspection Service and our law enforcement partners in protecting our citizens and working to seek prosecution of the scammers who seek to exploit them.”
“Our Homeland Security Investigations special agents are committed to protecting the citizens of Michigan from this type of fraud,” said HSI Detroit Special Agent in Charge Angie M. Salazar. “Cooperation between our law enforcement agencies is essential to conducting these investigations. I’d like to commend the U.S. Postal Inspection Service and the Kalamazoo Department of Public Safety for their work in dismantling this operation.”
The Homeland Security Investigations, and United States Postal Inspection Service, Grand Rapids offices, are investigating this case. The Kalamazoo Department of Public Safety also provided valuable assistance. Assistant U.S. Attorney Ron Stella is prosecuting the case.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Four Individuals Charged with Laundering Millions from Cryptocurrency Investment Scams Known as ‘Pig Butchering’Read the Press Release
LOS ANGELES – Three Southland residents and a fourth defendant have been named in a seven-count indictment charging them with participating in a scheme to launder the proceeds of cryptocurrency investment scams and other fraudulent schemes involving millions of dollars in victim funds, the Justice Department announced today.
Two of the defendants – Lu Zhang, 36, of Alhambra, and Justin Walker, 31, of Cypress – were arrested Tuesday morning.
The other two defendants – Joseph Wong, 32, Rosemead, and Hailong Zhu, 40, Naperville, Illinois – are currently being sought by federal authorities.
The indictment charges all four defendants with conspiracy to commit money laundering, concealment money laundering, and international money laundering.
Zhang, Walker, Wong and Zhu allegedly conspired to open shell companies and bank accounts to launder victim proceeds of cryptocurrency investment scams – also known as “pig butchering” – and other fraudulent schemes. They allegedly transferred the funds involved in the fraud schemes to domestic and international financial institutions.
The overall fraud scheme in the related pig-butchering syndicate involved at least 284 transactions and resulted in more than $80 million in victim losses. More than $20 million in victim funds were directly deposited into bank accounts associated with the defendants.
According to court documents, pig butchering fraud schemes (a term derived from a foreign-language phrase used to describe these crimes) consist of scammers encountering victims on dating services or social media, or through unsolicited messages or calls, often masquerading as a wrong number. Scammers initiate relationships with victims and slowly gain their trust, eventually introducing the idea of making a business investment using cryptocurrency. Victims are then directed to other members of the scheme operating fraudulent cryptocurrency investment platforms and applications, where victims are persuaded to make financial investments. Once funds are sent to scammer-controlled accounts, the investment platform often falsely shows significant gains on the purported investment, and the victims are thus induced to make additional investments. Ultimately, the victims are unable to withdraw or recover their money, often resulting in significant losses for the victims.
After their arrests, Zhang and Walker appeared yesterday in United States District Court in Los Angeles, where they both entered not guilty pleas. Zhang was ordered detained, and Walker was ordered released on bond. A trial was scheduled for February 6, 2024.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Each of the charges for conspiracy to commit money laundering, concealment money laundering, and international money laundering carry a maximum statutory sentence of 20 years in federal prison.
This case was announced by United States Attorney Martin Estrada, Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, and Special Agent in Charge William Mancino of the U.S. Secret Service’s Criminal Investigative Division.
The U.S. Secret Service’s Global Investigative Operations Center is investigating the case.
The case is being prosecuted by Assistant United States Attorneys Maxwell Coll of the Asset Forfeiture and Recovery Section and Nisha Chandran of the Cyber & Intellectual Property Crimes Section, and Justice Department Trial Attorney Stefanie Schwartz. AUSA Coll and Ms. Schwartz are part of the Justice Department’s Computer Crime and Intellectual Property Section’s (CCIPS) National Cryptocurrency Enforcement Team (NCET), which is jointly prosecuting the case with the United States Attorney’s Office.
If you or someone you know is a victim, report it to the www.IC3.gov. In the report, please reference “Pig Butchering PSA” and include as much information as possible in the complaint including names of investment platforms, cryptocurrency addresses and transaction hashes, bank account information, and names and contact information of suspected scammers. Maintain copies of all communications with scammers and records of financial transactions.
Four Individuals Charged for Laundering Millions from Cryptocurrency Investment ScamsRead the Press Release
A seven-count indictment was unsealed yesterday in Los Angeles charging four individuals for their alleged roles in a scheme to launder the proceeds of cryptocurrency investment scams and other fraudulent schemes involving millions of dollars in victim funds.
Lu Zhang, 36, of Alhambra, California; Justin Walker, 31, of Cypress, California; Joseph Wong, 32, Rosemead, California; and Hailong Zhu, 40, Naperville, Illinois, are charged with conspiracy to commit money laundering, concealment money laundering, and international money laundering. Zhang and Walker were arrested and made their initial appearances in federal court yesterday.
According to court documents, Zhang, Walker, Wong, and Zhu allegedly conspired to open shell companies and bank accounts to launder victim proceeds of cryptocurrency investment scams, also known as “pig butchering,” and other fraudulent schemes. They transferred the funds to domestic and international financial institutions. The overall fraud scheme in the related pig-butchering syndicate involved at least 284 transactions and resulted in more than $80 million in victim losses. More than $20 million in victim funds were directly deposited into bank accounts associated with the defendants.
According to court documents, “pig butchering” fraud schemes (a term derived from a foreign-language phrase used to describe these crimes) consist of scammers encountering victims on dating services, social media, or through unsolicited messages or calls, often masquerading as a wrong number. Scammers initiate relationships with victims and slowly gain their trust, eventually introducing the idea of making a business investment using cryptocurrency. Victims are then directed to other members of the scheme operating fraudulent cryptocurrency investment platforms and applications, where victims are persuaded to make financial investments. Once funds are sent to scammer-controlled accounts, the investment platform often falsely shows significant gains on the purported investment, and the victims are thus induced to make additional investments. Ultimately, the victims are unable to withdraw or recover their money, often resulting in significant losses for the victims.
If convicted, Zhang and Walker face a maximum penalty of 20 years in prison.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Martin Estrada for the Central District of California, and Special Agent in Charge William Mancino of the U.S. Secret Service’s Criminal Investigative Division made the announcement.
The U.S. Secret Service’s Global Investigative Operations Center is investigating the case.
The case is jointly prosecuted by the U.S. Attorney’s Office for the Central District of California and the Computer Crime and Intellectual Property Section’s (CCIPS) National Cryptocurrency Enforcement Team (NCET), which was established to combat the growing illicit use of cryptocurrencies and digital assets. CCIPS’ NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, mixing and tumbling services, and infrastructure providers. The NCET also works to set strategic priorities regarding digital asset technologies, identify areas for increased investigative and prosecutorial focus, and lead the department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.
CCIPS/NCET Trial Attorney and Assistant U.S. Attorney Maxwell Coll for the Central District of California, CCIPS/NCET Trial Attorney Stefanie Schwartz, and Assistant U.S. Attorney Nisha Chandran for the Central District of California are prosecuting the case.
If you or someone you know is a victim, report it to the IC3.gov. In the report, please reference “Pig Butchering PSA” and include as much information as possible in the complaint including names of investment platforms, cryptocurrency addresses and transaction hashes, bank account information, and names and contact information of suspected scammers. Maintain copies of all communications with scammers and records of financial transactions.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Texas trooper imprisoned for to lying to FBIRead the Press Release
McALLEN, Texas – A 36-year-old Pharr resident has been sentenced for lying to federal authorities during a drug investigation, announced U.S. Attorney Alamdar S. Hamdani.
Pablo Talavera Jr., former Texas Department of Public Safety (DPS) trooper, pleaded guilty Aug. 28.
U.S. District Judge Micaela Alvarez has now ordered Talavera to serve 18 months in federal prison to be immediately followed by two years of supervised release. At the hearing, the court heard opposing arguments regarding the appropriate sentence. Judge Alvarez imposed a greater sentence due to Talavera’s position as a law enforcement officer when he committed the offense.
In 2019, law enforcement initiated an investigation targeting an organization responsible for the transportation of multi-kilogram quantities of meth, heroin and cocaine from the Rio Grande Valley to Tennessee. Talavera’s father was the organization’s leader.
The investigation revealed Talavera used his position as a DPS trooper to assist his father by running license plates of vehicles believed to be that of law enforcement. Talavera initially lied to authorities. He ultimately admitted to assisting his father, who is now serving 21 years in federal prison.
Talavera was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and Homeland Security Investigations conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of the Texas Rangers. Assistant U.S. Attorney Jesse Salazar prosecuted the case.
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 on the Department of Justice’s OCDETF webpage.
Former Special Agent in Charge of the New York FBI Counterintelligence Division Sentenced to 50 Months for Conspiring to Violate U.S. Sanctions on RussiaRead the Press Release
A former Special Agent in Charge (SAC) of the FBI Counterintelligence Division in New York, was sentenced to 50 months in prison and ordered to pay a $40,000 fine for conspiring to violate the International Emergency Economic Powers Act (IEEPA) and to commit money laundering in connection with his 2021 agreement to provide services to Oleg Deripaska, a sanctioned Russian oligarch.
According to court documents and statements made in court proceedings, Charles McGonigal, 55, of New York, New York, pleaded guilty in August.
“Charles McGonigal helped advance the interests of a sanctioned Russian oligarch, breaking his oath to safeguard our nation and uphold its laws,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s sentence holds him accountable for this betrayal and demonstrate this department’s commitment to deny designated individuals the means to circumvent U.S. sanctions.”
“Charles McGonigal violated the trust his country placed in him by using his high-level position at the FBI to prepare for his future in business,” said U.S. Attorney Damian Williams for the Southern District of New York. “Once he left public service, he jeopardized our national security by providing services to Oleg Deripaska, a Russian tycoon who acts as Vladimir Putin’s agent. Today’s sentence is a reminder that anyone who violates United States sanctions — particularly those in whom this country has placed its trust — will pay a heavy penalty.”
“Charles McGonigal’s conduct can be summed up in one word – betrayal. He betrayed everything he once swore to protect.” said Executive Assistant Director Larissa L. Knapp of the National Security Branch. “Today’s sentencing is a message to all, no matter who they are, the FBI does not tolerate those who choose to jeopardize US National Security. Prioritizing personal gains over one’s oath to protect the American people and uphold the Constitution, will be prosecuted to the full extent of the law.”
In 2014, the President issued Executive Order 13660, which declared a national emergency with respect to the situation in Ukraine. To address this national emergency, the President blocked all property of individuals determined by the U.S. Treasury to be responsible for or complicit in actions or policies that threatened the security, sovereignty, or territorial integrity of Ukraine, or who materially assist, sponsor, or provide support to individuals or entities engaging in such activities. Executive Order 13660 and regulations issued pursuant to it prohibit providing or receiving any funds, goods, or services by, to, from, or for the benefit of any person designated by the U.S. Treasury.
On April 6, 2018, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Oleg Deripaska as a Specially Designated National in connection with its finding that the actions of the Government of the Russian Federation with respect to Ukraine constitute an unusual and extraordinary threat to U.S. national security and foreign policy. According to the U.S. Treasury, Deripaska was sanctioned for having acted or purported to act on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation and for operating in the energy sector of the Russian Federation economy. The U.S. District Court for the District of Columbia affirmed the sanctions against Deripaska. It found, among other things, that OFAC’s determination that Deripaska acted as an agent of Russian President Vladimir Putin was supported by the evidence.
As an FBI official, McGonigal helped investigate Deripaska and other Russian oligarchs. As a SAC, he supervised investigations into sanctions violations. Yet at the same time, he began building a relationship with an agent of Deripaska, in the hopes of doing business with Deripaska after he retired from the FBI.
In 2021, McGonigal conspired to provide services to Deripaska, in violation of U.S. sanctions imposed on Deripaska in 2018. Specifically, following his negotiations with Deripaska’s agent, McGonigal agreed to and did investigate a rival Russian oligarch in return for concealed payments from Deripaska. While negotiating and performing services for Deripaska, McGonigal and the agent attempted to conceal Deripaska’s involvement by, among other means, not directly naming Deripaska in electronic communications, using shell companies as counterparties in the contract that outlined the services to be performed, using a forged signature on that contract, and using the same shell companies to send and receive payment from Deripaska. McGonigal hoped to do millions of dollars in business with Deripaska, but FBI agents from the same division McGonigal used to lead foiled his scheme after only a few months of operation.
The FBI New York Field Office’s Counterintelligence Division investigated the case, with valuable assistance from U.S. Customs and Border Protection as well as the New York City Police Department.
Assistant U.S. Attorneys Hagan Scotten, Rebecca T. Dell, and Derek Wikstrom for the Southern District of New York are prosecuting the case, with assistance from Trial Attorney Christina A. Clark of the National Security Division’s Counterintelligence and Export Control Section.
Former Special Agent in Charge of the New York FBI Counterintelligence Division Sentenced to 50 Months in Prison for Conspiring to Violate U.S. Sanctions on RussiaRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Matthew G. Olsen, the Assistant Attorney General of the Justice Department’s National Security Division, announced today that CHARLES MCGONIGAL, a former Special Agent in Charge (“SAC”) of the FBI’s Counterintelligence Division in New York, was sentenced by U.S. District Judge Jennifer H. Rearden to 50 months in prison for conspiring to violate the International Emergency Economic Powers Act and to commit money laundering in connection with his 2021 agreement to provide services to Oleg Deripaska, a sanctioned Russian oligarch.
U.S. Attorney Damian Williams said: “Charles McGonigal violated the trust his country placed in him by using his high-level position at the FBI to prepare for his future in business. Once he left public service, he jeopardized our national security by providing services to Oleg Deripaska, a Russian tycoon who acts as Vladimir Putin’s agent. Today’s sentence is a reminder that anyone who violates United States sanctions — particularly those in whom this country has placed its trust — will pay a heavy penalty.”
Assistant Director in Charge James Smith said: “Charles McGonigal was justly punished today for knowingly aiding the agents of foreign adversaries who targeted the United States through his fraud and deception to satisfy his own greed. The FBI is determined to ensure any individual who commits federal crimes – even a former FBI Special Agent in Charge – is held accountable to face the consequences. This sentence marks not only an important outcome by the U.S. justice system, but also reflects the dedication of the men and women of the FBI to investigate crimes, regardless of who commits them.”
Assistant Attorney General Matthew G. Olsen said: “Charles McGonigal helped advance the interests of a sanctioned Russian oligarch, breaking his oath to safeguard our nation and uphold its laws. Today's sentence holds him accountable for this betrayal and demonstrates this department’s commitment to deny designated individuals the means to circumvent U.S. sanctions.”
According to publicly filed court documents and statements made in court proceedings:
In 2014, the President issued Executive Order 13660, which declared a national emergency with respect to the situation in Ukraine. To address this national emergency, the President blocked all property of individuals determined by the U.S. Treasury to be responsible for or complicit in actions or policies that threatened the security, sovereignty, or territorial integrity of Ukraine, or who materially assist, sponsor, or provide support to individuals or entities engaging in such activities. Executive Order 13660 and regulations issued pursuant to it prohibit providing or receiving any funds, goods, or services by, to, from, or for the benefit of any person designated by the U.S. Treasury.
On April 6, 2018, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated Oleg Deripaska as a Specially Designated National in connection with its finding that the actions of the Government of the Russian Federation with respect to Ukraine constitute an unusual and extraordinary threat to U.S. national security and foreign policy. According to the U.S. Treasury, Deripaska was sanctioned for having acted or purported to act on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation and for operating in the energy sector of the Russian Federation economy. The U.S. District Court for the District of Columbia affirmed the sanctions against Deripaska. It found, among other things, that OFAC’s determination that Deripaska acted as an agent of Russian President Vladimir Putin was supported by the evidence.
As an FBI official, MCGONIGAL helped investigate Deripaska and other Russian oligarchs. As an SAC, he supervised investigations into sanctions violations. Yet at the same time, he began building a relationship with an agent of Deripaska, in the hopes of doing business with Deripaska after he retired from the FBI.
In 2021, MCGONIGAL conspired to provide services to Deripaska, in violation of U.S. sanctions imposed on Deripaska in 2018. Specifically, following his negotiations with Deripaska’s agent, MCGONIGAL agreed to and did investigate a rival Russian oligarch in return for concealed payments from Deripaska. While negotiating and performing services for Deripaska, MCGONIGAL and the agent attempted to conceal Deripaska’s involvement by, among other means, not directly naming Deripaska in electronic communications, using shell companies as counterparties in the contract that outlined the services to be performed, using a forged signature on that contract, and using the same shell companies to send and receive payment from Deripaska. MCGONIGAL hoped to do millions of dollars in business with Deripaska, but FBI agents from the same division MCGONIGAL used to lead foiled his scheme after only a few months of operation.
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In addition to the prison sentence, MCGONIGAL, 55, of New York, New York, was ordered to pay a fine of $40,000, to forfeit $17,500, and sentenced to three years of supervised release.
Mr. Williams praised the outstanding work of the FBI New York Field Office’s Counterintelligence Division and the valuable assistance from U.S. Customs and Border Protection as well as the New York City Police Department.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Hagan Scotten, Rebecca T. Dell, and Derek Wikstrom are in charge of the prosecution with assistance from Trial Attorney Christina A. Clark of the National Security Division’s Counterintelligence and Export Control Section.
Former Security Engineer for International Technology Company Pleads Guilty to Hacking Two Decentralized Cryptocurrency ExchangesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the guilty plea today of SHAKEEB AHMED in connection with his hack of two separate decentralized cryptocurrency exchanges, one of which was the July 2022 hack of Nirvana Finance. AHMED pled guilty to computer fraud before U.S. Magistrate Judge Ona T. Wang. AHMED also agreed to forfeit over $12.3 million, including forfeiture of approximately $5.6 million in fraudulently obtained cryptocurrency.
U.S. Attorney Damian Williams said: “Five months ago, my Office announced the first ever arrest involving an attack on a smart contract. Today, senior security engineer Shakeeb Ahmed pled guilty and agreed to return all of the stolen crypto to his victims. That arrest is now the first ever conviction for such a hack. Ahmed’s plea has also resulted in him further admitting that he carried out a previously unsolved second multi-million-dollar hack, this time of decentralized finance protocol Nirvana Finance. In total, Ahmed used his technical knowhow to steal over $12 million and tried to cover his tracks by swapping stolen crypto for Monero, using cryptocurrency mixers, hopping across blockchains, and utilizing overseas crypto exchanges. Today’s conviction shows that no matter how sophisticated the methods used, fraud is fraud, and we will swiftly catch and convict you.”
According to the charging documents and other filings and statements made in court:
In July 2022, AHMED executed hacks on two separate decentralized cryptocurrency exchanges, an exchange referred to herein as the “Crypto Exchange” and Nirvana Finance (“Nirvana”). In July 2023, AHMED was publicly charged with the hack of the Crypto Exchange. Today’s guilty plea is the first public filing acknowledging AHMED’s responsibility for a second sophisticated, multi-million dollar hack he executed in July 2022 of Nirvana.
At the time of both attacks, AHMED, a U.S. citizen, was a senior security engineer for an international technology company whose resume reflected skills in, among other things, reverse engineering smart contracts and blockchain audits, which are some of the specialized skills AHMED used to execute the hacks.
The Crypto Exchange allowed users to exchange different kinds of cryptocurrencies, and paid fees to users who deposited cryptocurrency to provide liquidity on the Crypto Exchange.
On or about July 2 and 3, 2022, AHMED carried out an attack on the Crypto Exchange by exploiting a vulnerability in one of the Crypto Exchange’s smart contracts and inserting fake pricing data to fraudulently cause that smart contract to generate approximately $9 million dollars’ worth of inflated fees that AHMED did not legitimately earn. AHMED was able to withdraw said fees from the Crypto Exchange in the form of cryptocurrency. This conduct defrauded the Crypto Exchange and its users whose cryptocurrency AHMED had fraudulently obtained.
After he stole the fees he never legitimately earned, AHMED had communications with the Crypto Exchange in which he agreed to return all of the stolen funds except for $1.5 million if the Crypto Exchange agreed not to refer the attack to law enforcement.
Nirvana was a second decentralized finance protocol. Nirvana bought and sold its cryptocurrency token, ANA. Nirvana was designed so that when a user purchased a substantial quantity of ANA, the price of ANA increased, and when a user sold a substantial quantity of ANA, the price of ANA decreased.
On or about July 28, 2022, a few weeks after the hack of the Crypto Exchange, AHMED carried out an attack on Nirvana in which he took out a flash loan for approximately $10 million, used those funds to purchase ANA from Nirvana, and used an exploit he discovered in Nirvana’s smart contracts to purchase the ANA at its initial, low price, rather than at the higher price that Nirvana was designed to charge him in light of the size of his purchase. When the price of ANA updated to reflect his large purchase, AHMED resold the ANA he had purchased to Nirvana at the new, higher price, resulting in a profit to him of approximately $3.6 million. Nirvana offered AHMED a “bug bounty” of as much as $600,000 to return the stolen funds, but AHMED instead demanded $1.4 million, did not reach agreement with Nirvana, and kept all the stolen funds. The $3.6 million AHMED stole represented approximately all the funds possessed by Nirvana, which as a result shut down shortly after AHMED’s attack.
AHMED laundered the millions that he stole from the Crypto Exchange and from Nirvana to conceal their source and ownership, using sophisticated techniques including token-swap transactions, “bridging” fraud proceeds from the Solana blockchain over to the Ethereum blockchain, exchanging fraud proceeds into Monero, an anonymized and particularly difficult cryptocurrency to trace, using overseas cryptocurrency exchanges, and using cryptocurrency mixers such as Samourai Whirlpool.
After the attacks, AHMED searched online for information about the hacks, his own criminal liability, criminal defense attorneys with expertise in similar cases, law enforcement’s ability to successfully investigate the attacks, and fleeing the U.S. to avoid criminal charges. For example, approximately two days after the hack of the Crypto Exchange, AHMED conducted an internet search for the term “defi hack,” read several news articles about the hack of the Crypto Exchange, and visited several pages on the Crypto Exchange’s website. In the days after the hack of Nirvana, AHMED conducted internet searches for the term “defi hacks prosecution” and searches related to the charges in the Indictment, including the terms “wire fraud” and “evidence laundering.” Finally, AHMED conducted internet searches or visited websites related to his ability to flee the U.S., avoid extradition, and keep his stolen cryptocurrency. He searched for the terms “can I cross border with crypto,” “how to stop federal government from seizing assets,” and “buying citizenship.” He also visited a website titled “16 Countries Where Your Investments Can Buy Citizenship . . .”
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AHMED, 34, of New York, New York, pled guilty to one count of computer fraud, which carries a maximum sentence of five years in prison. AHMED also agreed to pay restitution to his victims totaling $5,071,074.23.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. AHMED is scheduled to be sentenced by United States District Judge Victor Marrero on March 13, 2024.
Mr. Williams praised the outstanding work of Homeland Security Investigations and Internal Revenue Service – Criminal Investigation. Mr. Williams also thanked the U.S. Attorney’s Office for the Southern District of California for its assistance in the investigation.
The case is being prosecuted by the Office’s Money Laundering & Transnational Criminal Enterprises Unit and Complex Frauds & Cybercrime Unit. Assistant U.S. Attorneys David R. Felton and Kevin Mead are in charge of the prosecution.
Former Sailor Sentenced to 24 Months for Cyberstalking and ThreatsRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced today to 24 months in prison for sending threatening messages to fellow sailors.
According to court documents, Justin Leung, 23, engaged in a course of conduct against at least five women, including threatening to kidnap, violently rape, and humiliate them or their female relatives through the degradation of their bodies. Leung targeted some of these victims after they had rejected his romantic advances. Many of the victims were active duty sailors or veterans of the United States Navy.
Over the course of several months in 2023, Leung used the Internet to send unwanted and threatening messages to the victims, including obscene messages depicting his genitalia and himself masturbating. At least one victim felt fearful enough to take protective measures as a direct result of Leung’s threats. Leung’s phone records reveal misogynistic statements like “women bring nothing to the table except what there[sic] bodies have to offer” and women “shouldn’t be allowed to choose [their partners].”
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Mack Hickman, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Jamar K. Walker.
Special Assistant U.S. Attorney Victoria Liu prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-55.
Former Resident of Clarendon Sentenced to 25 Years in Prison for Child Sexual Exploitation OffensesRead the Press Release
ERIE, Pa. - A former resident of Clarendon, Pennsylvania, has been sentenced in federal court to 25 years in prison, lifetime supervised release, and ordered to pay $8,300 in restitution, 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 Stephanie Haines imposed the sentence on Jeffrey Colin Rogers, age 60.
The evidence presented at trial established that in November 2017, Rogers used his cellphone to take multiple sexually explicit photos of two minors after providing them marijuana and alcohol at his apartment in Sheffield, Pennsylvania. Rogers then stored the photos on his phone. The Pennsylvania State Police discovered the illegal images after executing a search warrant at Rogers’ apartment in February 2018 and seizing Rogers’ phone.
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 and the Pennsylvania State Police for the investigation leading to the successful prosecution of Rogers.
Former Maryland Correctional Officer Sentenced to Eight Years in Federal Prison for Civil Rights ViolationsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced former Correctional Officer Owen Nesmith, age 54, of Baltimore, Maryland, today to eight years in federal prison, followed by three years of supervised release, for three counts of deprivation of rights under color of law and to making a false statement, all related to his sexual contact with three victims who were incarcerated at the Maryland Correctional Institution Jessup.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Carolyn J. Scruggs of the Maryland Department of Public Safety and Correctional Services.
According to his guilty plea, Nesmith was employed as a Correctional Officer (“CO”) Lieutenant at Maryland Correctional Institution Jessup (“MCIJ”). Nesmith admitted that from 2005 to 2017, he deprived three incarcerated individuals of their civil rights by sexually assaulting them. Specifically, in February 2005, Nesmith followed Victim 1 back to his cell. No other inmates were present in the housing unit at that time. Nesmith told Victim 1 that he wanted Victim 1 to perform a sex act on Nesmith, which he did. Victim 1 did not consent to this act, which was a deprivation of rights under color of law.
As detailed in the plea agreement, in July 2015, Victim 2 needed an identification badge (“ID”) and Nesmith offered to take Victim 2 to the ID office. On the way to the office, Nesmith grabbed Victim 2’s genital area, then shut a gate in the area and told Victim 2 that he needed to conduct a strip search. After removing Victim 2’s pants, Nesmith sexually assaulted Victim 2, causing him pain and bodily injury. Nesmith further admitted that in December 2017, he engaged in a sex act with Victim 3, without his consent, when Victim 3 came to Nesmith’s office to discuss obtaining a job in sanitation. At that time, Nesmith was the acting lieutenant of the building and Victim 3 needed Nesmith’s approval to obtain that job. Finally, Nesmith admitted that when questioned by law enforcement, he falsely stated that he had never had any inappropriate relationships or sexual contact with any inmates while he was at MCIJ.
U.S. Attorney Erek L. Barron commended the FBI and the Maryland Department of Public Safety and Correctional Services for their work in the investigation. Mr. Barron thanked Assistant United States Attorneys Sean R. Delaney and Katelyn Semales, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Former Idaho Resident Indicted as a “Money Mule” for Laundering Funds from Wire Fraud and Bank Fraud SchemesRead the Press Release
BOISE – Andrew Samargis, 69, a former Idaho resident was charged yesterday for conspiring to commit money laundering and operating an unlicensed money transmitting business by collecting money from various wire and bank frauds schemes and then sending the funds to his coconspirators, U.S. Attorney Josh Hurwit announced today.
The indictment alleges that from approximately October 2017 through July 2020, Samargis conspired with others to operate as a money mule by receiving at least $1 million of financial fraud proceeds into accounts that he controlled and then conducting financial transactions with the proceeds to disguise the nature and source of the funds. The wire fraud and bank fraud schemes included credit card fraud, counterfeit check-cashing fraud, and COVID-19 funding fraud. A money mule is a person who transfers illegally acquired money on behalf of other individuals and typically receives compensation for providing their services.
It is further alleged that Samargis transmitted the proceeds of the fraud schemes to coconspirators through cash withdrawals, cashier’s checks, and wire transfers, at times disguising the purpose of the transfer by providing false descriptions to the banks. Despite banks repeatedly closing his accounts due to fraud, Samargis continued to serve as a money mule for the fraud schemes.
Samargis is charged with one count of conspiracy to commit money laundering and one count of operating an unlicensed money transmitting business. If convicted of the most serious crime, Samargis faces a maximum penalty of 20 years in federal prison, a $500,000 fine, and three years of supervised release.
U.S. Attorney Hurwit credited the investigation by the United States Secret Service, Spokane Resident Office, together with the assistance from the United States Secret Service Tucson and Las Vegas Offices, which led to the charges. Assistant U.S. Attorney Brittney Campbell is prosecuting the case.
This month, the U.S. Attorney’s Office, along with federal, state, and local law enforcement partners, have released a series of PSAs as part of the “Don’t Click December” Consumer Protection Campaign. This campaign is an effort to raise public awareness and alert Idahoans to dangers from online scams and fraud scheme. For more information, and to view the PSAs, please visit: justice.gov/usao-id/public-service-announcements
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Florida Man Charged with Health Care Fraud, Wire Fraud, and Kickback ConspiracyRead the Press Release
NEWARK, N.J. – A Florida man was arraigned today on charges relating to his role in a scheme to defraud Medicare by billing for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.
Eric Van Vleet, 28, of Delray Beach, Florida, is charged in an eight-count indictment with conspiracy to commit health care fraud and wire fraud, health care fraud, conspiracy to violate the federal anti-kickback statute, and payment of illegal kickbacks. Van Vleet appeared today before U.S. District Judge Esther Salas in Newark federal court and was released on $100,000 unsecured bond.
According to the indictment:
From February 2018 to September 2019, Van Vleet operated Hype Med LLC, which generated medically unnecessary prescriptions through a telemarketing and telemedicine scheme. As part of the health care, wire fraud, and kickback conspiracy, Van Vleet and Hype Med identified Medicare beneficiaries to target for expensive drugs. Call center employees contacted the beneficiaries by telephone to pressure them to agree to try expensive medications, such as pain creams, scar creams, eczema creams, migraine medication, as well as a combination of prescription medications intended to be used as a “foot soak.” Van Vleet and Hype Med then transmitted recordings of telephone calls with the beneficiaries, together with pre-marked prescription pads for particular drugs that would yield exorbitant reimbursements, to telemedicine companies. Hype Med paid the telemedicine companies kickbacks for every beneficiary referred for a prescription, and the telemedicine companies paid doctors to approve the prescriptions.
Van Vleet then directed the prescriptions to pharmacies, including Apogee Bio-Pharm LLC, located in Edison, New Jersey, with which Hype Med had a kickback arrangement. The pharmacies filled the prescriptions and sought reimbursement from federal health care benefit programs, including Medicare. The pharmacies, including Apogee, then paid a portion of each reimbursement to Hype Med as a kickback. Van Vleet and Hype Med received at least $343,684 in kickback payments from the owners of Apogee. The principals of Apogee – William Welwart, Ethan Welwart, and Gary Kaczka – are charged with health care fraud and related offenses in a separate indictment. Elan Yaish, former president of Apogee, previously pleaded guilty to an information charging conspiracy to violate the federal anti-kickback statute.
The health care fraud and wire fraud conspiracy charge carries a maximum potential penalty of 20 years in prison; the health care fraud charges carry a maximum potential penalty of 10 years in prison; the charge of conspiracy to violate the Anti-Kickback Statute carries a maximum potential penalty of five years in prison; and the charges of payment of illegal kickbacks are punishable by 10 years in prison. All of the counts are also punishable by a fine of $250,000, or twice the gain or loss from the offense, whichever is greatest.
Attorney for the United States Khanna credited special agents of the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, and the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit in Newark.
The charges and allegations contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
vanvleet.indictment.pdfFishers Brothers Sentenced to More Than 35 Years Combined for Manufacturing and Distributing Machine guns Intended for ISISRead the Press Release
INDIANAPOLIS- Moyad Dannon, 25, of Fishers, Indiana, has been sentenced to 200 months in federal prison, followed by a lifetime of supervised release, after pleading guilty to Attempting to Provide Material Support or Resources, namely, firearms, to a Designated Foreign Terrorist Organization. His brother, Mahde Dannon was sentenced to twenty years in federal prison in October 2021, after pleading guilty to the same charges.
According to court documents, in June of 2018, the Dannon brothers devised a scheme to deliver stolen firearms to a convicted felon who was cooperating with the FBI.
Between July 2018 and December 2018, the Dannon brothers sold a number of illegally obtained firearms to the cooperating individual. Around the same time period, the Dannon brothers also began to manufacture untraceable “ghost guns” by purchasing firearms parts online and assembling those parts into fully-functioning, .223 caliber semi-automatic rifles, which they sold to the FBI undercover agent.
In late 2018, the Dannon brothers began manufacturing untraceable, fully automatic, .223 caliber rifles, using much the same process they used to manufacture the semi-automatic rifles, and selling those to the undercover agent and confidential informant (CI).
Shortly thereafter, Moyad Dannon accompanied the undercover agent to a location near the U.S. southwest border in an effort to market that rifle, and additional fully-automatic rifles, to a potential buyer who was also cooperating with the FBI. During that trip, Moyad Dannon learned that the potential buyer sought to ship the weapons to a location in the Middle East, where they would be used by ISIS. ISIS is a designated foreign terrorist organization pursuant to Section 219 of the Immigration and Nationality Act.
Despite learning of the ultimate destination of the weapons, the Dannon brothers agreed to manufacture and sell at least 55 additional fully automatic “ghost guns” to the buyer from the American southwest border, believing those weapons would be shipped to the Middle East, to ISIS and its members.
On May 15, 2019, the Dannon brothers manufactured five untraceable, fully automatic, .223 caliber rifles from parts they had purchased online. At that time, the Dannon brothers were fully aware that the plan was to send the five automatic rifles overseas to ISIS. After building the fully automatic rifles, the Dannon brothers sold all five weapons to undercover FBI agents posing as employees of the buyer from near the southwest border. The Dannon brothers were arrested immediately thereafter by the FBI.
Between February and May of 2019, Moyad Dannon had numerous and extensive conversations with an undercover agent who he believed was a member of ISIS then fighting in Syria. During those conversations, Moyad expressed his desire to travel from Indiana to ISIS-controlled areas of Syria, where he sought to utilize his knowledge of firearms and other skills to provide direct military assistance to ISIS in its’ fight against the United States and Syrian government.
In a search following his arrest, FBI agents located a flash drive on Moyad’s keychain containing approximately 16 gigabytes of ISIS propaganda, including graphically violent videos depicting ISIS fighters beheading civilians and hostages, and ISIS snipers killing U.S. military personnel. Identical ISIS propaganda videos were discovered on a laptop computer.
“Violent extremists inspired by events abroad continue to pose a threat to our local communities and to our national security. Indiana is not immune from the poison of radicalization, fueled by terrorist propaganda available online,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “For nearly a year, these defendants worked persistently to arm murderous terrorists with deadly, illegal weapons. Cases like this demonstrate the need for law enforcement agencies to use all available lawful means to identify, disrupt, and prosecute national security threats here at home. Thanks to the tremendous efforts of the FBI’s Joint Terrorism Task Force and the Fishers Police Department, these dangerous men have been held accountable for their actions and our communities will be safe from them for many years.”
“The defendants in this case fused together two grave threats to Americans’ security by attempting to support a brutal terrorist organization through the illicit manufacture of ghost guns,” said Deputy Attorney General Lisa O. Monaco. “Just as we’ve done in the fight against terrorism, the Justice Department is committed to prevention—stopping gun violence before it happens by cracking down on the illegal production and trafficking of ghost guns.”
The FBI’s Indianapolis Field Office’s Joint Terrorism Task Force and the Fishers, Indiana, Police Department investigated this case. The sentences were imposed by U.S. District Court Judge Richard L. Young.
U.S. Attorney Myers thanked Assistant U.S. Attorneys for the Southern District of Indiana Matthew Rinka, Kate Olivier, Kelly Rota, and Department of Justice Trial Attorney Paul Casey, of the National Security Division’s Counterterrorism Section, who prosecuted this case.
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Fentanyl Trafficker Sentenced to 22 Years in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ISMAEL BIMBOW was sentenced to 22 years in prison today for his participation in a large-scale narcotics trafficking operation that sold kilogram quantities of fentanyl and heroin and for possessing firearms to protect the drug operation. BIMBOW was convicted following a week-long jury trial in April 2022 before U.S. District Judge J. Paul Oetken, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “The sentence today reaffirms this Office’s commitment to hold large-scale fentanyl traffickers accountable. Armed fentanyl traffickers such as this defendant promote violence, ruin lives, and destroy communities. This defendant sought to profit from trafficking significant quantities of this horrific drug, used multiple firearms to protect his operation, and profited handsomely, but he has now been justly punished for his crimes and will spend many years in federal prison.”
According to court documents and the evidence presented at the trial of BIMBOW:
BIMBOW and his co-conspirators ran a large-scale wholesale fentanyl operation out of numerous residences in New Jersey, while obtaining drug supplies and enlisting co-conspirators to “bag up” for him in the Southern District of New York. BIMBOW also obtained and kept multiple loaded firearms to protect his drugs and drug supplies.
On December 8, 2020, following a months-long investigation into his narcotics trafficking operation, BIMBOW was arrested outside of his stash house in East Orange, New Jersey. Law enforcement agents then searched the vehicle that he was in and recovered a semi-automatic handgun, bundled U.S. currency, and several bundles of fentanyl hidden in the car’s secret compartment, a photograph of which is below:
Officers then searched BIMBOW’s stash house and multiple luxury apartments and residences and recovered large quantities of fentanyl and heroin — including over 50,000 individually packaged doses of fentanyl ready to be distributed into the community — as well as more bricks of fentanyl and equipment used to weigh, package, stamp, and sell fentanyl on the street. Photographs of the over 50,000 doses of fentanyl recovered at the stash house are below:
During the search of BIMBOW’s three luxury apartments throughout northern New Jersey, agents located two additional firearms (including one with an extended magazine) and more fentanyl in one, a gold digital money counter in another, and over $450,000 in narcotics proceeds in the third. A photograph on BIMBOW’s phone showed that same money counter surrounded by cash. Photographs of the seized firearms, some of the seized cash, and the money counter from BIMBOW’s phone are below:
BIMBOW used his massive profits from fentanyl dealing to obtain numerous luxury vehicles, live in his multiple luxury apartments, invest in a club, and show off his earnings. For example, evidence from BIMBOW’s phone showed him taking a video of hundreds of thousands of dollars in the very apartment in which it was seized in an apparent attempt to boast about his criminal proceeds, a screenshot of which is below:
BIMBOW’s phone also contained photographs of at least four additional kilograms of fentanyl, two photos of which are shown below:
Even after BIMBOW was arrested and detained, he continued to traffic fentanyl through the use of multiple contraband phones, which agents seized from his jail cell. Evidence from those devices showed that BIMBOW continued his attempts to sell large quantities of dangerous fentanyl both before and even after he was convicted at trial in this matter.
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ISMAEL BIMBOW, 46, of Newark, New Jersey, was convicted after trial of narcotics conspiracy and using and carrying firearms during and in relation to, or possessing firearms in furtherance of, the narcotics conspiracy. In addition to the prison term, Judge Oetken sentenced BIMBOW to five years of supervised release.
Mr. Williams praised the outstanding investigative work of the Drug Enforcement Administration.
The prosecution of this case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Michael R. Herman, David J. Robles, and Frank J. Balsamello are in charge of the prosecution.
Fentanyl Dealer Is Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Antonio Markel Hewitt, 33, of Hickory, N.C., was sentenced today to 96 months in prison followed by four years of supervised release for distribution of fentanyl, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Alicia Jones, Acting Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Reed Baer of the Hickory Police Department join U.S. Attorney King in making today’s announcement.
According to filed documents and today’s court proceedings, in April 2022, investigators became aware that Hewitt was involved in the distribution of fentanyl in the Catawba County area. Court records show that law enforcement conducted an investigation into Hewitt, that included multiple controlled fentanyl purchases from the defendant at or near his home. On June 21, 2022, law enforcement executed a search warrant at Hewitt’s residence. During the search, law enforcement seized four firearms, one of which was affixed with a high capacity magazine, ammunition, and digital scales.
On March 8, 2023, Hewitt pleaded guilty to four counts of distribution of fentanyl. He is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
The ATF and the Hickory Police Department conducted the investigation.
Special Assistant U.S. Attorney (SAUSA) William Wiseman of the U.S. Attorney’s Office in Charlotte prosecuted the case. Mr. Wiseman is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Mr. Wiseman is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the District Attorney’s Office and the U.S. Attorney’s Office.
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.
Federal Jury Convicts Violent Convicted Felon for Illegally Possessing a FirearmRead the Press Release
SAN ANTONIO – A federal jury found a San Antonio man, previously convicted of aggravated robbery, guilty of illegally possessing a firearm as a convicted felon.
According to court documents and evidence presented at trial, Dylan James Rivas, 25, who was convicted of Aggravated Robbery in Bexar County in 2017, illegally possessed a firearm during a five-day span in April 2020. On April 13, 2020, Rivas attacked and pistol-whipped his girlfriend with the firearm, before shooting at her parents’ house early the next morning. Then, on April 17, 2020, Rivas shot another person with the firearm during an argument. That same day, San Antonio Police Department detectives tracked down Rivas and arrested him after he left a house on the west side of San Antonio. Detectives recovered the Glock 9mm caliber pistol that Rivas used in the shootings from inside the house.
Rivas was found guilty of one count of felon in possession of a firearm and faces up to 10 years’ imprisonment. He remains in federal custody awaiting sentencing on March 13, 2024.
The ATF and SAPD investigated the case.
Assistant U.S. Attorneys Brian Nowinski and Eric Fuchs are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. Anonymous tips involving gang crime and wanted fugitives can be submitted at www.stopsanantoniogangs.org.
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Eleven Individuals Indicted for Federal Economic-Impact Payment (EIP) Theft Involving over $850,000Read the Press Release
SAN JUAN, P.R. – On December 13, 2023, the Federal Grand Jury in the District of Puerto Rico returned 11 separate indictments charging 11 individuals with the theft of federal-economic-impact payments from during the COVID-19 pandemic totaling $858,600, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. These cases were investigated by the Federal Bureau of Investigation (FBI), Puerto Rico Police Bureau (PRPB), and the Puerto Rico Department of Treasury (Hacienda).
During the COVID-19 crisis, the Federal government provided three rounds of economic-impact payments to eligible individuals in Puerto Rico. The Secretary of the US Department of the Treasury (USDT) approved the Economic Impact Payment Distribution Plan and the Plan for the Disbursement of the Third Economic Impact Payment which enabled the Puerto Rico Department of the Treasury (PRDT), as the local administrator, to distribute the economic-impact payments to eligible individuals as required by federal regulation.
The Sistema Unificado de Rentas Internas (SURI) was the section of the PRDT that processed and distributed the economic-impact payments. The economic-impact payments were automatic if a taxpayer’s bank account information was confirmed in SURI. Individuals that were not verified could apply for the payments in the PRDT’s online portal. The online portal required an applicant to provide an address, name, social security number, dependent information and banking information. And the applicant would be required to certify to an oath verifying the veracity of the information provided. If the applicant was eligible for the economic-impact payment, the PRDT would then distribute the economic impact-payments to the applicant’s bank account.
According to court documents, the defendants participated in the theft of federal funds and received multiple-economic-impact payments that were obtained using the personal identification information of others.
Eleven indictments charge 11 individuals with Theft, Disposition, and Receipt of Stolen Government Money in violation of Title 18, United States Code, Section 641. Some of the individuals were also charged with Engaging in Monetary Transactions in Property Derived from Specified-Unlawful Activity and Laundering of Monetary Instruments in violation of Title 18, United States Code, Sections 1956 and 1957. These additional charges are related to efforts to structure subsequent financial transactions to avoid financial reporting requirements and to illegally transfer and use the stolen funds for other purposes, including retail purchases like jewelry.
The defendants charged and the corresponding moneys illegally received are:
Estephany J. Disla
$108,800
Soammy K. Feliz-Rivera
$35,200
Ismarielis Nolberto-Cedaño
$158,800
Tatiana Segarra-Vázquez
$96,400
José L. Cruz-Gutiérrez
$77,600
Altagracia J. Peña
$63,200
Félix J. Rivera-Álvarez
$70,400
Karla Y. Colón-Cruz
$63,000
Yuleydi C. Bautista
$76,600
Esther J. Peña-Tineo
$62,000
Gisel E. Dilone-Díaz
$46,600
Total
$858,600
“These arrests reflect our continued resolve to investigate and prosecute those who try to exploit a national emergency to steal taxpayer-funded resources by using the global pandemic as an opportunity to steal from hardworking citizens,” said U.S. Attorney Muldrow. “We are proud to work with our law enforcement partners to hold wrongdoers accountable and to safeguard taxpayer funds.”
“The purpose of economic incentives, such as those provided through the CARES ACT, is to extend a helping hand to people in need. When criminals develop schemes to steal this money, they directly hurt people who are already in a difficult situation,” said Joseph González, Special Agent in Charge or the FBI San Juan Field Office. “The FBI will continue to investigate these cases for as long as it takes. Social justice starts by doing the right thing, the right way and we urge the public to continue reporting these schemes by calling 787-987-6500 or leaving a tip through tips.fbi.gov.”
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
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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Durham Crips Gang Member Sentenced for Possession of FirearmRead the Press Release
GREENSBORO – A North Carolina man was sentenced yesterday to 10 years in prison, after pleading guilty to one count of felon in possession of a firearm, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
TYRICO DEVONTE BOWENS, age 30, of Durham, was sentenced to a 120-month term of imprisonment by the Honorable William L. Osteen, Jr., United States District Judge in the United States District Court for the MDNC. He pleaded guilty on September 29, 2023, to felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1).
According to court records, BOWENS, a member of the Eight Trey Gangster Crips street gang, was at a family gathering in Apex, North Carolina on December 31, 2022, when he retrieved a 10mm Glock handgun from his car after an argument with his girlfriend’s father. When family members attempted to intervene, BOWENS discharged the firearm in front of the home. Officers with the Apex Police Department recovered a S&B 10mm cartridge casing from the yard.
Five days later, the gang unit with the Durham Police Department (DPD) arrested BOWENS at his residence on charges related to the December 31, 2022, incident and searched his home. They recovered three loaded firearms, including a 10mm Glock handgun. A forensic firearms examiner with DPD microscopically compared the S&B 10mm cartridge casing recovered from the December 31, 2022 incident with a cartridge casing test fired from the Glock 10mm handgun and determined that, based on similar class characteristics and sufficient agreement of individual characteristics, the 10mm cartridge casing recovered from the scene on December 31, 2022, was fired from the Glock 10mm handgun.
At the time of these offenses, BOWENS had been previously convicted of Assault with a Deadly Weapon Inflicting Serious Injury and Second-Degree Kidnapping (Durham County – 2013); Conspiracy to Commit Robbery with a Dangerous Weapon, Possession of Firearm by Felon, and Conspiracy to Intimidate Witnesses (Durham County – 2014); Possession of Firearm by Felon and Concealed Carry (Durham County – 2018); and Possession of Firearm by Felon and Possession with Intent to Sell or Distribute Cocaine (Durham County – 2023). In connection with these offenses, BOWENS was sentenced to multiple terms of imprisonment exceeding one year. Thus, at the time of the offenses, BOWENS was legally barred from possessing a firearm due to his status as a felon.
The case was investigated by the Federal Bureau of Investigation’s Raleigh-Durham Safe Streets Task Force (SSTF), the Durham Police Department, the Durham County Sheriff’s Office, and the Apex Police Department. The lead investigator was an FBI Task Force Officer from the Durham Police Department. The case was prosecuted by Assistant United States Attorneys Laura Jeanne Dildine and JoAnna G. McFadden.
Since 1992, the FBI's Safe Streets Violent Crime Initiative has successfully aligned FBI Agents, state and local law enforcement investigators, and federal and state prosecutors onto SSTFs to reduce violent crime. This nationwide initiative brings resources together in a “force multiplier concept” and utilizes the expertise of each agency. SSTFs focus primarily upon street gang and drug-related violence through sustained, proactive, coordinated investigations to obtain prosecutions on violations such as racketeering, drug conspiracy, and firearms violations.
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Dunlap Felon Sentenced to 30 Months in Prison for Possession of a Firearm and AmmunitionRead the Press Release
PEORIA, Ill. – A Dunlap, Illinois man, Donald L. Yarber, 29, was sentenced on December 13, 2023, to 30 months in federal prison to be followed by a 3 year term of supervised release, for possessing a firearm and ammunition as a felon.
At the sentencing hearing before U.S. Senior District Judge Michael M. Mihm, the government provided information that Yarber was the driver of a car stopped by the Peoria Police Department for a traffic violation in July 2023. Police became aware of the unlawful presence of cannabis in the vehicle and, during a search, located a high-capacity magazine loaded with ammunition and a 9mm handgun with an obliterated serial number in the passenger area of the car. While booking Yarber at the county jail, officers located a live round of ammunition in his shoe. The ammunition matched that of the ammunition found in Yarber’s car. Based on further examination, the firearm located in Yarber’s car was found to be associated with two prior shooting incidents, one in Chicago in 2021, and another incident in the City of Peoria four days prior to Yarber’s arrest in July 2023.
Yarber was indicted in July 2023 and pled guilty in August 2023. He has remained in the custody of the United States Marshals Service while his case has been pending.
The statutory penalty for a felon in possession of a firearm is up to 15 years imprisonment, followed by up to 3 years of supervised release.
The Bureau of Alcohol, Tobacco and Firearms and Explosives and the Peoria Police Department investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
The case against Yarber 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.
Duluth Man Sentenced to 21 Months in Prison for Wire FraudRead the Press Release
MINNEAPOLIS – A Duluth man has been sentenced to 21 months in prison, followed by three years of supervised release for wire fraud, announced U.S. Attorney Andrew M. Luger.
According to court documents, in March 2022, Gale Allen Rachuy, 73, defrauded Victim A (victim), by falsely representing that Rachuy was an attorney who could handle the victim’s legal proceedings. As part of the scheme, Rachuy told the victim that he would be able to get former federal and state court judges to work on the victim’s case. In order to retain the alleged judges, Rachuy would need the victim to pay a retainer fee of $10,000, with the first payment of $2,500 due on March 15, 2022. Rachuy and the victim each signed a retainer agreement, which specified that both judges would be assisting in the victim’s legal representation. On March 15, 2022, the victim paid the $2,500 retainer fee via wire from his account in Fayetteville, Arkansas, to Rachuy’s bank account in Minneapolis. The victim was scheduled to wire another $2,500 installment to Rachuy on April 1, 2022, but became suspicious of Rachuy after not seeing any drafts or filings in his case. After the victim realized that Rachuy was fraudulently representing these services, he ceased making future payments. Despite assuring the victim that the funds would be returned, Rachuy never returned the funds.
Rachuy pleaded guilty on May 10, 2023, to one count of wire fraud. He was sentenced yesterday in U.S. District Court by Judge Joan N. Ericksen.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Chelsea A. Walcker and Harry M. Jacobs prosecuted the case.
District Court Enjoins Massachusetts Pharmaceutical Manufacturer from Making and Selling Adulterated DrugsRead the Press Release
A federal court yesterday enjoined a Massachusetts company from manufacturing and distributing adulterated drugs in violation of the Federal Food, Drug and Cosmetic Act (FDCA).
In a complaint filed on Nov. 17, the United States alleged that Pharmasol Corporation and its president, Marc L. Badia, violated the FDCA at the company’s facility in South Easton, Massachusetts, by manufacturing and distributing adulterated drugs. Pharmasol manufactured and processed prescription and over-the-counter drugs, including Lexette, which is used to treat itching, redness and swelling of skin, and Dexamethasone, which is used to relieve arthritis inflammation. The United States alleged that the company violated the FDCA by failing to notify its customers about defects in its finished products, failing to establish a complaint procedure or corrective action plan despite receiving, within a 12-month period, 533 customer complaints relating to defects in its drug products, and failing to adequately clean and maintain its equipment. According to the complaint, the Food and Drug Administration (FDA) inspected Pharmasol in 2018, 2021 and 2022, and issued the company several warnings, including a warning letter in 2019, regarding its alleged violations. The United States alleged that many of the violations FDA identified in 2022 were repeat violations identified in earlier inspections.
The current good manufacturing practice regulations for drugs mandate that manufacturers control the processes and procedures by which their drugs are manufactured, processed, packed and held, to ensure that the drugs have the identity, strength, quality, purity and other attributes necessary for their safe and effective use. Drugs not made in conformance with current good manufacturing practice regulations are adulterated and in violation of the law.
“Drug manufacturers have a responsibility to comply with requirements designed to ensure drug quality and safety,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will continue to work closely with the FDA and take action against manufacturers who fail to meet this responsibility.”
“When drug manufacturers violate the law and disregard safety standards, they put consumers at significant risk. In this case, the defendant’s company distributed adulterated, poor-quality drugs without regard for patients and consumers,” said Director Jill Furman of the in FDA’s Center for Drug Evaluation and Research's Office of Compliance. “The FDA plays an important role in protecting consumers, and we will continue to work with our federal partners to pursue and bring into compliance those who do not prioritize the health and safety of the American public.”
The company and its president agreed to settle the suit and be bound by a consent decree of permanent injunction. The negotiated consent decree entered by the court permanently enjoins the defendants from violating the FDCA, and requires, among other things, that they stop manufacturing, processing, labeling, holding or distributing adulterated drugs. Further, the company must recall all adulterated prescription drugs that the company manufactured or distributed on or after Feb. 10, 2022.
The government was represented by Senior Litigation Counsel Christina Parascandola of the Civil Division’s Consumer Protection Branch, with the assistance of Margo Badawy of the FDA’s Office of Chief Counsel. The U.S. Attorney’s Office for the District of Massachusetts also provided assistance.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.
The claims resolved by the consent decree announced today are allegations only, and there has been no determination of liability.
Consent DecreeDavenport Men Sentenced to Federal Prison for Their Involvement in a Fentanyl Distribution ConspiracyRead the Press Release
DAVENPORT, Iowa – Two Davenport men were sentenced yesterday related to their involvement in a fentanyl distribution conspiracy.
According to public court documents, Jordan Thomas Hopper, 25, and Austen Michael Thomas, 26, were part of a conspiracy to distribute fentanyl from 2020 to 2022. The fentanyl was pressed into blue pills with “M30” on them (meant to look like prescription Percocet pills). The conspiracy resulted in numerous overdoses.
At sentencing, the Court found Hopper to be responsible for three overdoses caused by the ingestion of pills containing fentanyl. Hopper was sentenced to 420 months in federal prison.
Thomas was not specifically found to be responsible for any overdoses but was also sentenced related to his unlawful possession of a firearm. Thomas was sentenced to 120 months in federal prison.
Others charged as a part of this conspiracy include: Linder Kai Divos, 27 of Davenport, who was sentenced to 14-and-a-half years in federal prison; Kathan Daniel Wiley, 23 of Davenport, who was sentenced to 27 years in federal prison; and Marshall Matthew James Carver, 26 of Davenport, who is pending sentencing.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department.
Davenport Men Sentenced to Federal Prison for Their Involvement in a Fentanyl Distribution ConspiracyRead the Press Release
DAVENPORT, Iowa – Two Davenport men were sentenced yesterday related to their involvement in a fentanyl distribution conspiracy.
According to public court documents, Jordan Thomas Hopper, 25, and Austen Michael Thomas, 26, were part of a conspiracy to distribute fentanyl from 2020 to 2022. The fentanyl was pressed into blue pills with “M30” on them (meant to look like prescription Percocet pills). The conspiracy resulted in numerous overdoses.
At sentencing, the Court found Hopper to be responsible for three overdoses caused by the ingestion of pills containing fentanyl. Hopper was sentenced to 420 months in federal prison.
Thomas was not specifically found to be responsible for any overdoses but was also sentenced related to his unlawful possession of a firearm. Thomas was sentenced to 120 months in federal prison.
Others charged as a part of this conspiracy include: Linder Kai Divos, 27 of Davenport, who was sentenced to 14-and-a-half years in federal prison; Kathan Daniel Wiley, 23 of Davenport, who was sentenced to 27 years in federal prison; and Marshall Matthew James Carver, 26 of Davenport, who is pending sentencing.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department.
Davenport Man Sentenced to 15 Years in Prison Related to Child Pornography ChargeRead the Press Release
DAVENPORT, Iowa – A Davenport man was sentenced yesterday to 180 months in federal prison for receiving child pornography.
According to court documents, Jay Eugene Dietz, 35, received and possessed child sexual abuse material on his cell phone while he was housed at the Residential Reentry Center in Davenport. At the time of this offense, Dietz was serving a sentence of imprisonment for a prior federal conviction for receiving child sexual abuse material.
After completing his term of imprisonment, Dietz will be required to serve ten years 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 Scott County Sheriff’s Office investigated this case.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Dartmouth Woman Charged with Embezzling from EmployerRead the Press Release
BOSTON – A former employee of a Bristol County industrial company was arrested and charged today in connection with a scheme to embezzle more than $280,000 from her employer.
Jasmyne Botelho, 41, was charged with one count of wire fraud. Botelho was arrested this morning and, following an initial appearance in federal court in Boston today, was released on conditions.
According to the charging documents, between September 2017 and April 2020, Botelho stole at least $280,000 from her employer. Botelho allegedly directed payments purportedly intended for the company’s vendors to bank accounts she controlled and used company funds to make payments on personal credit cards and auto loans. To hide her scheme, Botelho allegedly falsified her employer’s books and records to make it appear as though the payments had in fact been sent to legitimate vendors rather than to Botelho.
The charge of wire fraud provides a sentence of up to 20 years in prison, three years 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 Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Kristen A. Kearney of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Cruise Ship Counselor Charged with Sexually Abusing MinorsRead the Press Release
MIAMI – On Dec. 13, a federal grand jury charged Filipino citizen Cris John Pentinio Castor, 35, by indictment, with two counts of abusive sexual contact with a minor in the special maritime and territorial jurisdiction of the United States.
According to allegations in the indictment and previously filed criminal complaint, and presented at prior hearings, in November 2023, Cris John Pentinio Castor engaged in abusive sexual contact with two six-year-old girls entrusted to the care of the Camp at Sea Youth Center on a Celebrity Silhouette cruise, owned by Royal Caribbean Group, that departed from Port Everglades in Fort Lauderdale, Florida. Castor was working as a Camp at Sea youth counselor at the time of the sexual contact.
An arraignment hearing is scheduled in this matter for tomorrow, Dec. 15. If convicted of the charges contained in the federal indictment, Castor faces up to life in prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, announced the charges.
FBI Miami investigated the case with assistance from U.S. Customs and Border Protection (CBP) and Royal Caribbean Group security. Assistant U.S. Attorney Audrey Pence Tomanelli is handling the case.
This case was brought as part of Project Safe Childhood (PSC), 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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC 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 the PSC initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Anyone with information regarding suspected child abuse (to include physical and sexual abuse) is encouraged to call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
A criminal complaint and an indictment contain allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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-mj-06575 and 23-CR-60234.
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Commodities Trading Company Agrees to Pay over $98M to Resolve Foreign Bribery CaseRead the Press Release
Freepoint Commodities LLC (Freepoint), a commodities trading company based in Stamford, Connecticut, has agreed to pay over $98 million to resolve an investigation by the U.S. Justice Department into violations of the Foreign Corrupt Practices Act (FCPA) stemming from the company’s involvement in a corrupt scheme to pay bribes to Brazilian government officials.
Freepoint has also agreed to disgorge more than $7.6 million to the Commodity Futures Trading Commission (CFTC) in a related matter.
“As today’s resolution demonstrates, the Criminal Division remains resolute in our fight against bribery and corruption,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Our dedicated prosecutors are working tirelessly to hold both corporations and culpable individuals to account. Let this case also send a reminder that our policies offer the greatest benefits to companies that are proactive and act with urgency.”
According to court documents, Freepoint entered into a three-year deferred prosecution agreement (DPA) with the department in connection with a criminal information filed in the District of Connecticut. The information charges the company with conspiracy to violate the anti-bribery provision of the FCPA for its scheme to pay bribes to Brazilian government officials to secure business with Brazil’s state-owned and state-controlled oil company, Petróleo Brasileiro S.A. – Petrobras (Petrobras).
“This office and our federal law enforcement partners are keeping a watchful eye on those not only involved in the financial industry, but all U.S. businesses that operate overseas, to ensure that they are complying with our nation’s laws,” said U.S. Attorney Vanessa Roberts Avery for the District of Connecticut. “This hefty financial sanction and deferred prosecution agreement should both serve as a deterrent to illegal conduct in the U.S. and abroad, and as a reminder that the Justice Department incentivizes those who report illegal conduct and work with us to correct wrongdoing.”
Between approximately 2012 and 2018, Freepoint and its co-conspirators paid bribes to Petrobras officials in exchange for confidential information about pricing and bids submitted by Freepoint’s competitors. Freepoint and its co-conspirators concealed the scheme by communicating using code words and encrypted messaging applications, engaging in sham negotiations, and funneling the bribes through an intermediary who used offshore bank accounts and shell companies. Freepoint earned over $30 million in profits in connection with the scheme.
“This case exemplifies the FBI’s relentless fight against corruption and our commitment to holding companies accountable for criminal business practices,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “The FBI, along with our domestic and international partners, will continue to aggressively combat these crimes and work to level the playing field of the global marketplace.”
“This resolution and the indictment of three individuals demonstrate the commitment by the FBI and the Justice Department to holding accountable both corrupt companies and actors — wherever they are — for their illicit business activity,” said Assistant Director in Charge Donald Alway of the FBI Los Angeles Field Office. “Our tireless work with partners around the globe ensures that businesses earn their contracts and that consumers are protected from inflated prices.”
Pursuant to the DPA, Freepoint has agreed to pay a criminal penalty of $68 million and administrative forfeiture in the amount of $30,551,150. Freepoint has also agreed to continue cooperating with the department in any ongoing or future criminal investigation relating to this conduct. The department will credit up to one-third of the criminal penalty against amounts that Freepoint pays to resolve an investigation by law enforcement authorities in Brazil for related conduct. The department will also credit up to 25% of the forfeiture amount against disgorgement that Freepoint pays the CFTC in a related matter.
The department reached this resolution with Freepoint based on a number of factors, including, among others, the nature and seriousness of the offense. Freepoint received credit for its cooperation with the department’s investigation, which included (i) promptly and thoroughly responding to requests by the department by producing and summarizing relevant documents and other information; (ii) engaging in significant efforts to aggregate and analyze complex financial information and trade data for more than 4,000 transactions; (iii) making company officers and employees available for interviews, and arranging separate counsel where appropriate; (iv) providing all relevant facts known to it, including information about the individuals involved in the conduct. However, in the initial phases, Freepoint’s cooperation was limited in degree and impact, and largely reactive.
Freepoint also engaged in remedial measures, including: (i) conducting an analysis of the causes of the underlying conduct and undertaking appropriate remediation to address those root causes and taking additional steps to improve its compliance program, including by retaining an advisory firm to evaluate its third-party compliance program; (ii) overhauling its third-party compliance and risk management program, including through the implementation of enhanced risk-based due diligence, screening, ongoing monitoring and oversight procedures, and the implementation of FCPA training for third-party agents; (iii) reducing the use of third-party intermediaries; (iv) implementing a global agent onboarding and tracking procedure; (v) strengthening its corporate governance and risk management structures, including through the utilization of data and metrics to evaluate risk, enhancing the independence and stature of its compliance function, and hiring additional, experienced compliance personnel; (vi) updating the company’s global anti-bribery and corruption policy to include FCPA red flags; (vii) implementing a process for reporting and investigating allegations of misconduct; and (viii) conducting testing of its third-party compliance program.
In light of these considerations, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 15% reduction off the bottom of the applicable guidelines fine range.
The department has recently charged three individuals in relation to Freepoint’s bribery scheme, including:
- Glenn Oztemel, who allegedly worked as a senior oil trader at Freepoint and caused Freepoint to make corrupt payments to an intermediary, which were disguised as purported consulting fees and commissions, and which were used to pay bribes to Petrobras officials.
- Gary Oztemel, the brother of Glenn Oztemel, who allegedly used his company Oil Trade & Transport S.A. to corruptly assist Freepoint in obtaining or retaining business in Brazil.
- Eduardo Innecco, who worked as an agent for Freepoint and received purported consulting fees and commissions that he allegedly used to pay bribes to Petrobras officials on behalf of Freepoint.
The case against Glenn Oztemel, Gary Oztemel, and Eduardo Innecco is pending.
The FBI Los Angeles Field Office is investigating the case, with assistance from the FBI’s International Corruption Unit.
Trial Attorneys Allison L. McGuire and Clayton P. Solomon and Assistant Chiefs Derek J. Ettinger and Jonathan P. Robell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael McGarry for the District of Connecticut are prosecuting the case. The U.S. Attorney’s Office for the Eastern District of New York also provided significant assistance.
The Justice Department’s Office of International Affairs and authorities in Brazil, Latvia, Switzerland, and Uruguay provided assistance in the matter.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
DPA InformationCaptain and Co-Captain Sentenced for Maritime Smuggling Effort That Left Three DeadRead the Press Release
NEWS RELEASE SUMMARY – December 14, 2023
SAN DIEGO – The captain and co-captain of a boat that capsized off Imperial Beach during a 2022 smuggling incident, resulting in the deaths of three people, were sentenced in federal court today to 54 and 50 months in prison, respectively.
Jorge Armando Preciado-Vasquez, the captain, and Alexis Martinez-Preciado, the co-captain and navigator, attempted to smuggle seven adults and an unaccompanied minor from Mexico into the United States over Thanksgiving weekend in 2022.
The victims were a 39-year-old woman and 47-year-old man, both from Mexico; and a still unidentified young woman, believed to be from Guatemala.
According to plea agreements and the government’s sentencing documents, the defendants navigated the open-hull craft from Mexico on the open ocean through the night until they approached Imperial Beach early in the morning on November 26. As they approached the shore, at approximately 6 a.m., the defendants directed all eight people on board to take off their life vests, a common practice so passengers are quicker and more inconspicuous making their way to the shore.
Soon after removing the life jackets, however, the panga boat overturned as shown in the images below. The three victims drowned despite the best efforts of surfers, witnesses and Imperial Beach lifeguards to rescue them.
Two bodies were recovered that morning; the third was discovered on the beach days later.
“This case is a horrible tragedy and three lives were needlessly lost when profiteering overtook caution,” said U. S. Attorney Tara McGrath. “Criminal smuggling organizations consistently disregard the welfare of the human beings they smuggle.”
“Maritime human smuggling is an incredibly dangerous tactic which has claimed numerous lives. However, transnational criminal organizations have no regard for human life and continue to enrich themselves using the tactic,” said Chad Plantz, Special Agent in Charge for Homeland Security Investigations San Diego. “HSI is committed to using all means at our disposal to investigate and hold accountable those placing human beings at substantial risk of injury and death.”
This case is being prosecuted by Assistant U.S. Attorneys Peter Horn and Ronald Sou.
DEFENDANTS Case Number 22-CR-2928-TWR
Jorge Armando Preciado-Vasquez Age: 30 Baja California, Mexico
Alexis Martinez-Preciado Age: 20 Baja California, Mexico
SUMMARY OF CHARGES
Bringing in Aliens for Financial Gain and Aiding and Abetting – Title 8, U.S.C., Section 1324(a)(2)(B)(ii); Title 18, U.S.C., Section 2
Penalties: Mandatory minimum of three years and maximum of ten years in prison, and up to a $250,000 fine
AGENCIES
Homeland Security Investigations – San Diego Marine Task Force
United States Border Patrol
United States Customs and Border Protection
United States Coast Guard
San Diego County Sheriff’s Department
San Diego Harbor Police Department
San Diego County Medical Examiner’s Office
Brooklyn Cardiologist Charged with Health Care Fraud and BriberyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Naomi Gruchacz, the Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services – Office of the Inspector General (“HHS-OIG”), Erin Keegan, the Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Thomas Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced the unsealing of an Indictment today charging NIRANJAN MITTAL, a Brooklyn-based cardiologist, in connection with a scheme to fabricate patient records, pay physicians for patient referrals, and bill for medically unnecessary vascular procedures. The U.S. Attorney’s Office for the Southern District of New York also filed a civil fraud complaint today under the False Claims Act against MITTAL, DIVANSHU BANSAL, who manages MITTAL’s medical practice and supervises staff, and NIRANJAN K. MITTAL, PHYSICIAN, PLLC d/b/a/ CARECUBE, and NEW YORK PET IMAGING CENTER LLC, the entities that own MITTAL’s practice and diagnostic testing facility. MITTAL was presented in federal court before U.S. Magistrate Judge Ona T. Wang. The case is assigned to U.S. District Judge Ronnie Abrams.
U.S. Attorney Damian Williams said: “We put our faith in doctors and trust their expertise. As alleged, Dr. Niranjan Mittal betrayed that trust. He subjected patients to surgical procedures that they did not need. He directed his staff to make up patient symptoms in medical records to justify these unnecessary procedures so he could receive lucrative insurance payments, and he bribed other doctors to send him their patients. Thanks to our law enforcement partners, Mittal now faces criminal prosecution and civil penalties for his alleged conduct.”
HHS-OIG Special Agent in Charge Naomi Gruchacz said: “Health care providers who falsify records and recommend medically unnecessary services to drive up profits pose a significant risk to patients. HHS-OIG will continue to work with our law enforcement partners to hold accountable individuals who, to satisfy their own greed, exploit federal health care programs.”
HSI Acting Special Agent in Charge Erin Keegan said: “Niranjan Mittal is accused of defrauding the government and private insurers of millions of dollars while treating his patients like commodities he could use to further enrich himself. He put profit over patient well-being, convincing individuals who sought his care to undergo potentially unnecessary medical procedures. Through partnerships, such as those established within HSI's Document and Benefits Fraud Task Force, we are actively raising awareness among the public and deterring those who aim to exploit the vulnerable.”
IRS-CI Special Agent in Charge Thomas Fattorusso said: “While Dr. Mittal may have taken the Hippocratic Oath when he became a doctor, the irony is not lost on the hypocrisy of his alleged fraud, where instead of caring for his patients, he cared for himself and lining his own pockets. Mittal’s alleged schemes were devoid of concern for his patients, and his practice to treat certain patients with unnecessary procedures is outright dangerous. Today’s arrest ensures that he will no longer be able to continue his fraud and victimize those who sought legitimate care and treatment.”
According to the Indictment:[1]
Since at least 2016, MITTAL operated a medical clinic in Brooklyn, New York (the “Brooklyn Clinic”), with a patient base consisting of many individuals of limited economic means who were insured by government health care programs. In order to ensure a steady flow of new patients to the Brooklyn Clinic, MITTAL paid rental payments to other providers pursuant to purported “leases” for office space. Often, however, the timing and amount of the payments bore no relation to the terms of those leases. In fact, MITTAL made the purported lease payments to induce other providers to refer patients to MITTAL’s staff members, who, at the direction of MITTAL, periodically traveled to the providers’ offices, performed basic tests on the referred patients, and convinced the patients to attend follow-up appointments at the Brooklyn Clinic.
Once patients arrived at the Brooklyn Clinic, often without understanding why they had been referred to the practice, they underwent a series of diagnostic tests and follow-up office visits. These tests and office visits generally were not based on the patients’ actual treatment needs. Rather, MITTAL and others acting at his direction ordered these tests and office visits to create documentation sufficient to justify subjecting patients to unnecessary peripheral vascular interventional procedures—surgical procedures focused on clearing purported blockages in the blood vessels in patients’ legs. MITTAL directed others to, among other things, fabricate the descriptions of patients’ symptoms recorded in the practice’s office visit notes, varying the symptoms across patients so that it was not apparent that the symptoms were fake.
As a result of MITTAL’s scheme, patients at the Brooklyn Clinic, many of whom were already in poor health, routinely underwent medically unnecessary vascular interventions at MITTAL’s office, with some patients undergoing ten or more interventional procedures over the course of several years. The patients’ conditions often did not improve, despite these repeated interventions. Through his operating entity, MITTAL billed Medicare, Medicaid, and private insurers over $100 million for the relevant vascular procedures.
According to the Civil Complaint: [2]
In addition to fraudulently billing Medicare and Medicaid for medically unnecessary peripheral vascular procedures, fabricating patient records to make it appear these procedures were justified, and paying kickbacks for patient referrals:
MITTAL, BANSAL, and MITTAL’s operating entities billed Medicare and Medicaid for medically unnecessary cardiac diagnostic imaging studies, including but not limited to PET scans, stress tests, echocardiograms, and carotid artery doppler studies. These tests were repeatedly performed on the same patients without any clinical basis and without taking into account the results of prior, duplicative tests. At the direction of MITTAL and BANSAL, staff prepared fabricated medical records to make it appear that patients exhibited symptoms and complaints that would justify performing these tests. The lawsuit seeks to recover treble damages and civil penalties under the False Claims Act.
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MITTAL, 70, of Brooklyn, New York, is charged with one count of conspiracy to commit health care fraud and wire fraud, which carries a maximum sentence of 20 years in prison, one count of health care fraud, which carries a maximum sentence of ten years in prison, one count of conspiracy to violate the Anti-Kickback Statute, which carries a maximum sentence of five years in prison, and one count of violation of the Anti-Kickback Statute, which carries a maximum sentence of 10 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of HHS-OIG, HSI, and IRS-CI.
The criminal case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Patrick R. Moroney and Matthew Weinberg are in charge of the prosecution. The civil lawsuit is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Jeffrey K. Powell and Pierre G. Armand are in charge of the civil case.
The charges contained in the Indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
If you or someone you know has information about the conduct at MITTAL’s cardiology practice, please call the HHS-OIG tip line at 1-800-HHS-TIPS.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
[2] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Bronx Woman Convicted at Trial for Laundering over $2 Million in Funds from Victims of Romance Fraud SchemesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that a jury returned a guilty verdict against NADINE JAZIMNE WADE on all four counts in the Indictment, which contained money laundering and bank fraud charges. The defendant was found guilty following a two-week trial before U.S. District Judge Katherine Polk Failla.
U.S. Attorney Damian Williams said: “Nadine Wade used a sham women’s clothing company as a front to launder over $2 million in fraud proceeds on behalf of scam artists in Nigeria and South Africa. The romance scams perpetrated by Wade’s partners were cruel, targeting vulnerable, elderly men and women and tricking them into transferring their life savings to the defendant, who then took her cut and sent the money to other members of the scheme. Money launderers who assist online scammers abroad will be held accountable for their crimes by this Office.”
According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial:
From in or about 2016 through in or about 2021, co-conspirators of WADE based in Nigeria and South Africa committed a series of romance scams against individuals located across the United States. Those co-conspirators used aliases, including the names “Diego Francisco” and “Richard Francisco” (the “Francisco Alias”), to meet victims on various dating websites. The co-conspirators used online photographs of a male model when providing victims with photos of the Francisco Alias. After engaging in romantic conversations with the victims via phone, text, and email, those co-conspirators, posing as the Francisco Alias, asked victims for money. The reasons why the Francisco Alias needed money varied. In one version of the scheme, the Francisco Alias supposedly worked on an oil rig and needed funds to repair the rig. The Francisco Alias then instructed the victims to transfer funds to bank accounts controlled by WADE and others. The means of transfer also varied. In some cases, for example, the Francisco Alias instructed victims to obtain cashier’s checks made payable to WADE or her shell company and to mail those checks to WADE.
WADE received fraud proceeds from victims of the Francisco Alias in personal bank accounts and business bank accounts for her shell company Royal Treasure Chest LLC, a company purportedly involved in, among other things, the sale of women’s clothing and accessories. Once WADE received fraud proceeds, she rapidly depleted her bank accounts of those funds through cash withdrawals, cashier’s checks, and the purchase of vehicles, among other means. After taking her own cut of the money, WADE transferred the bulk of the funds to other members of the scheme.
From in or about 2016 through in or about 2021, WADE controlled more than 18 bank accounts that had deposits totaling over $2 million. Most of those deposits consisted of wire transfers and check or cash deposits from U.S.-based individuals who were victims of the romance fraud scam described above.
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NADINE JAZMINE WADE, 30, of the Bronx, New York, was convicted of one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; one count of money laundering, which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison; and one count of bank fraud, which carries a maximum sentence of 30 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.
Mr. Williams praised the outstanding work of the U.S. Secret Service and the Internal Revenue Service – Criminal Investigation for their assistance in this investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Micah F. Fergenson, Matthew J. King, and Dina McLeod are in charge of the prosecution, with assistance from Paralegal Specialist Jayda Foote.
Bridgeport Man Who Trafficked Cocaine Sentenced to 70 Months in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that LUIS CEPEDA, also known as “Doogie,” 35, of Bridgeport, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 70 months of imprisonment, followed by three years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, an investigation by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Connecticut State Police determined that a drug trafficking organization headed by Landdy Rodriguez, also known as “Oso,” was obtaining kilogram-quantities of cocaine through the U.S. Mail from Puerto Rico. In the summer of 2021, investigators also intercepted phone calls during which Reinaldo Colon Oliveras, while incarcerated in a federal prison in Atlanta and using a smuggled cell phone, arranging the shipment of cocaine to Rodriguez and his associate, Thomas Marra. Rodriguez and Marra further distributed the drug to a network of associates.
During the investigation, Rodriguez also directed his cousin, Jaime Rodriguez, to deliver to him five kilograms of cocaine from Florida. Landdy Rodriguez was also supplied with cocaine from Salvador Crespo, who ran an underground bar in Bridgeport.
The investigation further revealed that Landdy Rodriguez facilitated multiple transactions of fentanyl.
On August 27, 2021, Cepeda purchased 400 grams of cocaine from Landdy Rodriguez and Crespo.
Cepeda was arrested on October 26, 2021. A search of Cepeda’s residence on that date revealed approximately 210 grams of cocaine and 84 grams of crack cocaine.
Cepeda has been detained since his arrest. On December 15, 2022, he pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine.
Landdy Rodriguez, Colon, Marra, Jaime Rodriguez, and Crespo pleaded guilty to related charges and have been sentenced.
This investigation was conducted by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force, and the Connecticut State Police, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Federal Bureau of Investigation, and the Waterbury Police Department. The Task Force includes personnel from the DEA Bridgeport Resident Office, the Connecticut State Police, and the Bridgeport, Danbury, Milford, Norwalk, Stamford and Stratford Police Departments.
This case was prosecuted by Assistant U.S. Attorneys Kenneth L. Gresham, John T. Pierpont, Jr., and Brendan J. Keefe 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.
Attorney General Merrick B. Garland Statement on the Planned Departure of Associate Attorney General Vanita GuptaRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland on the planned departure of Associate Attorney General Vanita Gupta at the start of February:
“I am deeply grateful to Vanita for her extraordinary service as Associate Attorney General. Vanita’s commitment to the pursuit of justice, and her relentless focus on bringing people together to find common ground, has made her an incredibly effective leader in dealing with some of the most complex challenges facing the American people. She has distinguished herself as the kind of leader who is also a partner to the career and non-career employees who work for her, to the stakeholders the Department works with, and to the public we all work for.
As a trusted advisor and key member of the Department’s leadership team charged with overseeing all of our civil litigating components and grantmaking entities, Vanita has played an essential role in our work to fulfill DOJ’s mission to uphold the rule of law, keep our country safe, and protect civil rights. Among her many accomplishments during her tenure, Vanita stood up and has led the Department’s Reproductive Rights Taskforce to defend the reproductive freedoms that are protected by federal law. She has played an integral role in our efforts to combat violent crime and gun violence and to support the victims of crime. She has facilitated the Department’s efforts to advance a criminal justice system that keeps people safe and reflects our values. And across the components under her leadership — from the Antitrust Division to the Environment and Natural Resources Division — she has prioritized work that centers its impact on people.
We at the Justice Department will dearly miss our colleague and friend, but I am confident that her enormous contributions to the Department will continue to be felt long after her departure.”
Asheville Man Convicted of Bank Fraud Involving the Purchase of Short-Term Rental Properties and Illegal Firearms Possession Is Sentenced to More Than Seven Years in PrisonRead the Press Release
ASHEVILLE, N.C. – Shawn Thomas Johnson, 38, of Asheville, was sentenced today to 92 months in prison followed by three years of supervised release for bank fraud and possession of a firearm by a felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition, U.S. District Judge Martin Reidinger imposed a $2.77 million asset forfeiture judgement against Johnson.
According to information contained in filed court documents and court proceedings, from 2012 to 2019, Johnson executed a bank fraud scheme involving the purchase of short term rental properties in Buncombe County. Court records show that Johnson acquired the loans to purchase the properties by submitting applications that contained false and fraudulent information, including falsely claiming that the homes would be used as primary residences, providing false statements related to his income and employment, and omitting important information about pending lawsuits and the source of funds used as down-payments. Contrary to claims Johnson made on the loan applications, once he purchased the properties, Johnson used them as short-term rentals and listed them on online platforms such as Airbnb, Homeaway, and VRBO. Johnson rented the properties knowing that local laws, ordinances, and zoning regulations in Buncombe County prohibited the use of many of these homes as short-term rentals.
According to court documents, Johnson also recruited other individuals to obtain mortgage loans based on false and fraudulent information to purchase homes that Johnson would then list as short-term rentals and share the proceeds. During the course of the scheme, Johnson and his co-conspirators closed on at least 16 loans from financial institutions totaling over $3.5 million to purchase real estate.
According to court records, in November 2021, Johnson traveled from Western North Carolina to Utah. While there, Johnson visited a gun club where Johnson rented a firearm and shot several boxes of ammunition he purchased from the club’s store. Johnson has two prior convictions for manufacturing and uttering counterfeit United States currency and he is prohibited from possessing a firearm or ammunition. In order to rent the gun, court documents indicate that Johnson lied on the gun club’s rental agreement, falsely certifying that he was not prohibited from possessing a firearm.
Johnson pleaded guilty to bank fraud and felon in possession of a firearm and ammunition charges. He will be ordered to report to the federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility.
In making the announcement, U.S. Attorney King thanked the U.S. Department of Housing and Urban Development, Office of Inspector General, the Federal Housing Finance Agency, Office of Inspector General, and the U.S. Marshal’s Service in the Western District of North Carolina for their investigation of the case.
Assistant U.S. Attorney Don Gast with the U.S. Attorney’s Office in Asheville prosecuted the case.
85-Year Old D.C. Man Charged with Killing His 81-Year-Old WifeRead the Press Release
WASHINGTON – Steven Schwartz, 85, of Washington, D.C., was arrested earlier today on the charge of second-degree murder while armed in the stabbing death of his 81-year-old wife, Sharron Schwartz, on December 10, 2023, at their D.C. home, U.S. Attorney Matthew M. Graves announced.
Defendant Schwartz was arraigned today in D.C. Superior Court, via video appearance, where he entered a plea of not guilty. The Honorable Magistrate Judge Sherry Trafford found probable cause that the defendant committed the murder and held him without bond pending his preliminary hearing on January 2, 2024, at 9:30 a.m., before Judge Demeo in Courtroom 303.
In announcing the arrest, U.S. Attorney Graves commended the work of those investigating the case from the Metropolitan Police Department (MPD) and Assistant United States Attorney Nebiyu Feleke for his efforts in prosecuting this case.
An arrest on a complaint is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
13 December 2023
Worland man arraigned for unlawful possession of machineguns and an unregistered short-barreled rifleRead the Press Release
Steven Shobert, 48, of Worland, Wyoming, was arraigned on Dec. 12 for unlawful possession of machineguns and possession of an unregistered short-barreled rifle. Shobert pleaded not guilty. A trial has been set for Feb. 15, 2024, before Chief U.S. District Court Judge Scott W. Skavdahl.
Shobert was detained at the request of the government and remanded to the custody of the U.S. Marshals Service. If convicted, Shobert faces up to 20 years’ imprisonment with three years of supervised release and up to a $500,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the case is being prosecuted by Assistant U.S. Attorney Jonathan C. Coppom.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No. 23-CR-00153
Washington man sentenced to 35 years after traveling across country to have sex with childRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Marysville, Washington man has been sentenced to 35 years in federal prison for traveling to West Virginia to have sex with a child.
Nathaniel James Davis, age 34, was sentenced today by Chief Judge Thomas Kleeh after having previously pled guilty to interstate travel with intent to engage in sexual act with a minor, and commission of a felony offense involving a minor by a sex offender. According to court documents and statements made in court, Davis, a registered sex offender, began an online relationship with a 13-year-old from Barbour County. Davis then traveled from Washington state to West Virginia to meet with the child for sex but was intercepted by law enforcement.
Davis was required to register as a sex offender because of his conviction for communication with a minor for sexual contact and child pornography charges in Whatcom County Superior Court in Bellingham, Washington in 2016.
In a separate case, Maurice Monroe Cato, III, age 49, of Gerrardstown, West Virginia, was sentenced to 10 years for possession of child pornography. According to court documents and statements made in court, Cato was posting and sharing child pornography. A search of Cato’s phone revealed more than 600 images along with videos of minors, including children under the age of five. U.S. District Judge Gina M. Groh presided over the hearing.
Assistant U.S. Attorney Stephen Warner prosecuted the Davis case, and Assistant U.S. Attorney Kimberley Crockett prosecuted the Cato case.
The West Virginia State Police investigated both cases.
Virginia Man Sentenced to 20 Years for Distributing Child PornographyRead the Press Release
WACO – A Virginia man was sentenced in federal court today to 20 years in prison for distribution of sexual abuse material involving a minor.
On November 9, 2021, Daniel Price, 37, of Galax, VA., was charged with two counts of knowingly distributing and attempting to distribute visual depictions of a minor engaging in sexually explicit conduct. On August 29, 2023, Price pleaded guilty to both charges in federal court.
According to court documents, in February 2021, a mother contacted the Waco Police Department and related her 11-year-old’s phone contained sexually explicit images and messages between her child and Price. Investigation determined Price coerced the child to send sexually explicit photos and videos. Price also sent images of his genitalia to the victim.
In addition to his prison sentence, U.S. District Judge Alan Albright ordered Price to pay $3,000 in restitution to his victim and to serve a lifetime of supervised release after he serves his prison term.
“As this case demonstrates, those intent on harming our children don’t have to live in close proximity to their victims,” said U.S. Attorney Jaime Esparza. “Price was over a thousand miles away from this minor when he perpetrated this crime. I applaud the victim’s mother for bringing these crimes to the Waco Police Department’s attention. As a community we all need to be vigilant in protecting our children from predators such as Price.”
The Waco Police Department investigated the case.
Assistant U.S. Attorney Gregory S. Gloff prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Vestavia Man Sentenced to 24 Years in Prison on Child Pornography ChargesRead the Press Release
BIRMINGHAM, Ala. – A Vestavia man was sentenced today on child pornography charges, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Carlton L. Peeples.
U.S. District Court Judge R. David Proctor sentenced Eugene Douglas Reid, III, 48, to 288 months in prison followed by 20 years supervised release for distribution and transportation of child pornography. Reid was convicted of these charges at trial in August.
In 2020, FBI Milwaukee, in collaboration with the Winnebago County Sheriff’s Office, was investigating numerous groups of individuals engaged in the receipt, possession, distribution and possible production of child sexual abuse material through a proactive operation. As part of the FBI’s operation, online covert employees documented these illegal activities and forwarded the documentation for further investigation to the appropriate FBI field office. The evidence at trial established that Reid had distributed and transported numerous videos and images of child sexual abuse material on the Kik messaging application in various private groups during the first half of 2020. In addition to the evidence collected by undercover law enforcement, Kik’s parent company, MediaLab, and the National Center for Missing and Exploited Children also provided evidence of further illegal activity under Kik usernames associated with Reid.
“Today’s sentence is the result of the collaborative work by our law enforcement partners in Alabama and Wisconsin to protect victims of child exploitation,” U.S. Attorney Escalona said. “I encourage anyone who may have information about possible child sexual exploitation, including posts on social media, to report it to the NCMEC at CyberTipline.org or by calling 1-800-THE-LOST.”
“Individuals who engage in the distribution and production of child pornography must be held accountable for their heinous actions. That is why the FBI, along with our local, state, and federal partners will stop at nothing to ensure these individuals and groups are brought to justice,” said SAC Peeples. This sentence just reconfirms the FBI’s commitment to stopping child predators and shutting down the online networks that produce child sexual abuse material.”
The FBI Birmingham's Child Exploitation Human Trafficking Task Force investigated the case with the assistance of FBI Milwaukee Division, Winnebago County Sheriff’s Office, Vestavia Hills Police Department, Jefferson County Sheriff’s Office, and the Alabama Law Enforcement Agency. Assistant U.S. Attorneys Kristen S. Osborne and R. Leann White prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Ventura County Man Arrested for Armed Robbery of Food VendorRead the Press Release
LOS ANGELES – A Ventura County man is now in federal custody after being named in a criminal complaint that specifically charges him with using a gun to rob a food truck in Oxnard and alleges that he committed four other armed robberies.
Oscar Silva, 30, of Oxnard, was transferred to federal custody Tuesday after he was arrested on local charges on December 7. The federal case charges Silva with Hobbs Act robbery, a crime that carries a statutory maximum sentence of 20 years in federal prison.
Silva made his initial appearance Tuesday afternoon in United States District Court, where he was ordered detained and was directed to appear for an arraignment on January 22.
According to an affidavit filed last week with the federal complaint, Silva committed a series of five armed robberies between November 6 and November 23 in Oxnard and Ventura. Silva allegedly robbed two street food vendors, a smoke shop, and a convenience store in Oxnard. Silva also allegedly robbed a female pedestrian near Mission Park in downtown Ventura, taking her purse and credits cards. Silva later used credit and debit cards stolen from the female pedestrian’s purse to purchase items worth several hundred dollars, the complaint alleges. Silva allegedly brandished a firearm and threatened his victims during each of the robberies.
A criminal complaint contained allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation into Silva is being conducted by the Ventura County Violent Crime Task Force, which includes the FBI, the Oxnard Police Department, the Ventura County Sheriff’s Office, and the Ventura Police Department.
Assistant United States Attorney Lyndsi C. Allsop of the Violent and Organized Crime Section is prosecuting this case.
Venezuelan National Carlos Orense Azocar Convicted After Trial on Drug Trafficking and Weapons ChargesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Anne Milgram, the Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced that a jury returned a guilty verdict against CARLOS ORENSE AZOCAR yesterday on all three counts in the Indictment, which contained cocaine-importation and weapons charges. The defendant was found guilty following a two-week trial before U.S. District Judge Vernon S. Broderick.
U.S. Attorney Damian Williams said: “For more than a decade, Carlos Orense Azocar worked with some of the largest narcotics traffickers in the world to send tons of cocaine to the United States. He partnered with corrupt high-ranking government and military officials in Venezuela and employed an arsenal of high-powered weapons to protect his cocaine distribution organization. For years, Orense Azocar shipped mountains of poison to this country and made millions of dollars in drug money. But no more. A jury in this district has unanimously held Orense Azocar responsible for his crimes, and now he will face a possible life sentence behind bars.”
DEA Administrator Anne Milgram said: “Orense Azocar and his drug trafficking organization used every means available, including high-powered weaponry, government corruption, and bribery, to safeguard his expansive operation and traffic hundreds of tons of cocaine into the United States. Today’s verdict is another example of the dangerous and vital work DEA does every day across the globe and our relentless pursuit of justice for those responsible for causing harm to the American people.”
As reflected in the Indictment, public filings, and the evidence presented at trial:
Beginning in or about 2003, ORENSE AZOCAR and his drug trafficking organization distributed tons of cocaine destined for importation into the United States. ORENSE AZOCAR helped transport, receive, and distribute loads of cocaine ranging from hundreds to thousands of kilograms from Venezuela to Mexico, the Dominican Republic, and elsewhere, using air and maritime routes. ORENSE AZOCAR operated fincas, or ranches, in Venezuela, where he stored his cocaine in underground tanks, stored hundreds of deadly weapons and thousands of rounds of ammunition, and which had clandestine landing strips from which he dispatched airplanes loaded with cocaine. ORENSE AZOCAR also loaded cocaine on “go-fast” boats that sped from the Venezuelan coastline to intermediate delivery points in the Caribbean, including the Dominican Republic and close to Puerto Rico. To aid in his cocaine distribution, ORENSE AZOCAR worked with and paid bribes to high-ranking officials throughout the Venezuelan government, including military generals and army officials, national police commissioners, and high-ranking officials in the Venezuelan intelligence agencies. ORENSE AZOCAR’s corrupt Venezuelan government connections secured access to military-grade weaponry, protection from military and law enforcement raids, safe passage for ORENSE AZOCAR’s cocaine convoys through checkpoints, and fraudulent airplane transponder codes to permit ORENSE AZOCAR’s cocaine-laden aircraft to freely depart Venezuela en route to Central America and Mexico. ORENSE AZOCAR similarly partnered with armed guerilla forces operating in Colombia and Venezuela to source cocaine and secure safe passage for his cocaine shipments. ORENSE AZOCAR distributed hundreds of tons of cocaine and made tens of millions of dollars through his narcotics trafficking.
To protect and expand his cocaine trafficking organization, ORENSE AZOCAR employed high-powered weaponry. He had armed security teams that guarded his finca; traveled in armored vehicles with armed security; and used armed security, military forces, and police to protect his convoys of cocaine. Among other weapons, ORENSE AZOCAR employed automatic rifles, submachine guns, handguns modified to operate as machine guns, and a 50-caliber mounted machine gun.
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ORENSE AZOCAR, 68, of Venezuela, was convicted on three counts: (i) conspiring to import cocaine into the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum potential sentence of life in prison; (ii) using and carrying machine guns during, and possessing machine guns in furtherance of, the cocaine-importation conspiracy, which carries a mandatory consecutive minimum sentence of 30 years in prison and maximum potential sentence of life in prison; and (iii) conspiring to use and carry machine guns during, and to possess machine guns in furtherance of, the cocaine-importation conspiracy, which carries a maximum potential sentence of life in prison.
The minimum and maximum potential sentences are prescribed by Congress and are provided here for information purposes only, as any sentencing of the defendant will be determined by the judge.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Mr. Williams praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, OCDETF New York Strike Force, and SDNY Digital Forensics Unit, as well as the U.S. Department of Justice’s Office of International Affairs.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Kaylan E. Lasky, Michael D. Lockard, and Kevin Sullivan are in charge of the prosecution, with assistance from Paralegal Specialist William Sirmon.
Two Additional Defendants Charged in $26 Million Real Estate ScamRead the Press Release
Two more defendants have been charged for scamming Chinese investors out of more than $26 million, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Stephen Wall, 65, and Saskya Bedoya, 42, were charged in a superseding indictment filed this week with one count of conspiracy to commit wire fraud and one count of securities fraud. They are scheduled to make their initial appearances before U.S. Magistrate Judge Rebecca Rutherford on December 22, 2023.
According to the indictment, Mr. Wall and Ms. Bedoya conspired with Timothy Lynch Barton to market real estate investment opportunities in Texas to Chinese investors.
During presentations – which highlighted Mr. Barton’s supposed ties to U.S. politicians – Mr. Barton and Mr. Wall allegedly claimed that the properties in question were located in sought-after neighborhoods in the Dallas Fort Worth Metroplex. Mr. Wall was introduced as a builder who would purchase lots to build on to sell to future home buyers.
Investors were promised annual interest payments for two years, followed by the return of their initial investment at the end of the second year. It was alleged that the investors would contribute 80 percent of the funds necessary for the project, and Mr. Barton and Mr. Wall would contribute the remaining 20 percent. It was also represented that no commissions would be paid out of investor funds.
In loan agreements signed by the investors, the cost of each property was inflated by as much as 195 percent, and in some instances, never actually purchased the property. Early investors were allegedly paid interest payments with investor funds from later projects.
Contrary to loan agreements, the defendants allegedly paid commissions out of investors’ funds, and even funneled investors’ money into unrelated projects. Still other funds were used to pay consultants or even to pay an unrelated company’s AmEx bill. According to the indictment, investors lost more than $26,000,000 to the scheme.
An indictment is merely an allegation of criminal conduct, not evidence. The defendants are presumed innocent unless proven guilty in a court of law.
If convicted, each defendant faces up to 20 years in federal prison for conspiracy to commit wire fraud and up to 20 years in federal prison for securities fraud.
Defendant, Mark Adams, 61, previously pled guilty in September 2022 to conspiracy to commit wire fraud in connection with the scheme. Additionally, codefendant, Haoqiang Fu a/k/a Michael Fu, 49, pled guilty in October 2022 to the sale of unregistered securities. Both are scheduled to be sentenced on February 21, 2024, and face up to five years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Renee Hunter is prosecuting the case.
Tuscaloosa Man Sentenced to Seven Years in Prison for Illegally Possessing a Firearm as a Convicted FelonRead the Press Release
MOBILE, AL – A Tuscaloosa man was sentenced to 84 months in prison for illegally possessing a firearm as a convicted felon.
According to court documents, Jamaris Jontuan Hogan, 36, was arrested by Moundville Police Department officers on March 1, 2022, for an outstanding domestic-violence warrant. When officers encountered Hogan at an apartment complex in Moundville, he had just stepped out of his still running car, locked it, and walked away from it as police approached. Officers smelled the odor of marijuana emanating from the car and searched it, finding a loaded and stolen .380 caliber pistol, 198 grams of marijuana, clear plastic baggies, a digital scale, and a glass jar containing marijuana residue. Hogan admitted that he had a gun in the car. At the time he possessed the gun, Hogan was on parole for eight prior felony convictions in Oakland County, Michigan, including offenses involving illegal possession of firearms, drug distribution, and theft. Hogan’s prior felony convictions rendered his possession of firearms illegal under federal law.
In addition to the 84-month prison sentence, United States District Judge Terry F. Moorer ordered Hogan to serve a three-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment. The court did not impose a fine, but Judge Moorer ordered Hogan to pay $100 in special assessments.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Moundville Police Department investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Texas Man on Supervised Release Sentenced to Federal Prison for Armed Bank Robbery in IrmoRead the Press Release
COLUMBIA, S.C. — Deveon Nathaniel Gibbs, 29, of Houston, Texas, was sentenced to 92 months in federal prison after pleading guilty to committing armed bank robbery. He was sentenced to an additional term of 24 months in federal prison for violations of his supervised release.
Evidence presented to the court showed that Gibbs, who was on supervised release for a prior federal bank robbery conviction in Texas, along with a coconspirator, pepper sprayed ATM technicians as they serviced an ATM at First Citizens Bank at 949 Lake Murray Blvd. in Irmo on Aug. 19, 2022. Witnesses provided statements that they believed Gibbs was armed at the time of the robbery. Additional evidence showed that Gibbs and his coconspirator fled to a nearby apartment complex where they entered a vehicle and ultimately drove to Texas.
Gibbs and his coconspirator stole over $77,000 before fleeing the scene. Law enforcement was able to recover approximately $55,000 along Gibbs’ flight path and clothing that contained Gibbs’ DNA.
Gibbs was detained without bond and pleaded guilty to the single-count indictment. United States District Judge Cameron Currie sentenced Gibbs to 92 months in federal prison to be followed by a five-year term of court-ordered supervision for the Aug. 2022 armed bank robbery. Gibbs was also sentenced to an additional 24 months of imprisonment to run consecutively for his violations of the terms of his supervised release. There is no parole in the federal system.
Gibbs’ criminal history includes prior state convictions for theft and burglary, as well as a prior federal conviction for bank robbery.
The case was investigated by the Federal Bureau of Investigation and Irmo Police Department. Assistant U.S. Attorney Elle E. Klein prosecuted the case.
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Texas Man Sentenced for Methamphetamine Distribution ConspiracyRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that ELIAS SALAS, age 19, from Edinburgh, Texas, was sentenced on December 12, 2023 by U.S. District Judge Wendy B. Vitter to 108 months incarceration after previously pleading guilty to conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846. Judge Vitter ordered that SALAS be placed on supervised release for five (5) years following release from imprisonment and pay a mandatory $100 special assessment fee.
According to the indictment, in March of 2023, SALAS knowingly conspired and agreed with others to pick up a bag he knew contained over 9 kilograms of pure methamphetamine in Dallas, Texas, and then work with others to transport the bag of narcotics from Texas to Kenner, Louisiana.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at http://www.justice.gov/OCDETF.
United States Attorney Evans praised the work of the federal Drug Enforcement Administration and the Kenner Police Department. The prosecution is being handled by Assistant United States Attorney Stuart Theriot of the Narcotics Unit.
Texas Man Pleads Guilty to Threatening Doctor Affiliated with the National LGBTQIA+ Health Education CenterRead the Press Release
BOSTON – A Texas man pleaded guilty today in federal court in Boston to threatening a Boston doctor who provided care for members of the transgender community.
Matthew Jordan Lindner, 39, of Comfort, Texas, pleaded guilty to one count of interstate transmission of threatening communication. Senior U.S. District Judge William G. Young scheduled sentencing for Feb. 6, 2024. Lindner was arrested in Texas and charged on Dec. 2, 2022. He was subsequently indicted by a federal grand jury in Boston on Dec. 15, 2022.
In August 2022, inaccurate information spread online regarding procedures doctors at Boston Children’s Hospital were performing for gender nonconforming children. On Aug. 31, 2022, in the midst of social media vitriol directed at health care providers who serve transgender patients, Lindner called the Boston-based National LGBTQIA+ Health Education Center and left a threatening voicemail targeting one of the Center’s affiliated doctors. In that voicemail, Lindner said: “You sick motherf*****s, you’re all gonna burn. There’s a group of people on their way to handle [victim]. You signed your own warrant, lady. Castrating our children. You’ve woken up enough people. And upset enough of us. And you signed your own ticket. Sleep well, you f****** c***.”
“Doctors who serve pediatric patients, including the victim in this case and staff at Boston Children’s Hospital, have dedicated their professional lives to treating children. They should be celebrated for their contributions to so many in their time of need. Instead, this defendant threatened a doctor with violence just for doing her job. This conduct is deplorable and sends a chill through the medical community,” said Acting United States Attorney Joshua S. Levy. “Hate and bigotry have no place in Massachusetts. Our office will stop at no end to protect the safety of all members of our community. We will continue to do all that we can to ensure individuals who engage in such behavior are identified, prosecuted and held accountable.”
“There is no way to undo the damage Matthew Lindner did to this physician, with his hateful, repulsive, and threatening behavior,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “No one should have to live in fear of violence because of who they are, what kind of work they do, or what they believe. This case, sadly, is just one example of the FBI’s ongoing commitment to bring to justice anyone who violates federal law, including those who threaten violence.”
After leaving the threatening voicemail, Lindner continued to try to contact the victim. To that end, he called the victim’s former medical practice and a university where the victim was a faculty member.
The charge of interstate transmission of threatening communication provides for a sentence of up to five years in prison, up to three years 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. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Brian A. Fogerty and K. Nathaniel Yeager of the Criminal Division are prosecuting the case.