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5 December 2023
Local felon heads to prison for possessing loaded firearm and drugsRead the Press Release
HOUSTON – A 28-year-old Houston resident has been sentenced to federal prison for illegally possessing two firearms while a felon and possession with intent to distribute cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Sidney Rachal pleaded guilty July 6.
U.S. District Judge Hittner has now ordered Rachal to serve 105 months in federal prison to be immediately followed by three years of supervised release. Additionally, he agreed to forfeit the two firearms and magazines. At the hearing, the court heard that Rachal also possessed several other illegal substances, such as marijuana, alprazolam and other pills along with the material to distribute them. In handing down the sentence, Judge Hittner noted his criminal history.
On Jan. 21, 2022, authorities found Rachal’s motor vehicle stopped in the middle of the road. They took him into custody for driving while intoxicated and for an outstanding felony warrant.
Upon his arrest, a search of his person revealed two plastic bags weighing approximately 68 grams that contained cocaine as well as $22,905 in cash. Subsequently, a search of his vehicle also resulted in the discovery of two magazines and two firearms, one of which - a Glock Model 26 pistol - was loaded.
The investigation revealed Rachal had been previously convicted of aggravated robbery. As such, he is prohibited from possession firearms or ammunition per federal law.
Rachal will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Rodolfo Ramirez prosecuted the case.
Keshena Man Indicted for Theft on Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on November 28, 2023, a federal grand jury returned an indictment charging Merwin J. “Pete” Wynos, Jr., a 35-year-old man from Keshena, with theft on the Menominee Indian Reservation.
The indictment charged Wynos with Theft in Indian Country, in violation of Title 18, United States Code, Sections 661 and 1153(a). If convicted, Wynos would face a maximum penalty of five years in prison, a fine of up to $250,000, and up to three years of supervised release.
According to filed court documents, on or about September 23, 2023, Wynos stole more than $1,000 worth of property belonging to four separate companies from a construction site on the Menominee Indian Reservation.
The Menominee Tribal Police Department, Menominee County Sheriff’s Office, and Federal Bureau of Investigation investigated the case, which Assistant United States Attorney Andrew J. Maier will prosecute.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
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Kaufman, Texas Man convicted of Drug Free Zone Offense Sentenced to 97 Months in Federal PrisonRead the Press Release
A Kaufman man who distributed methamphetamine near a drug free zone, Kaufman High School, was sentenced Monday to 97 months in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Kenneth Russell Barr, Jr., 55, pleaded guilty in May to possession with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. The offense occurred within 1000 feet of the real property comprising Kaufman High School, a public secondary school. He was sentenced Monday by U.S. District Judge Sam A. Lindsay.
According to plea papers, law enforcement seized methamphetamine the defendant delivered during the weeks of May 2, and May 16, 2022. As a result of these seizures officers executed a search warrant at Barr’s residence. During the search officers located approximately 353 grams of methamphetamine. Multiple firearms were found at the residence as a result of the search (as seen in the Government’s Detention Hearing Exhibit below). As part of his guilty plea, Barr also admitted he was a convicted felon and that he knew he was not supposed to possess any firearms. Barr further admitted the place he distributed methamphetamine from is within 1000 feet of Kaufman High School.
The Texas Department of Public Safety investigated the case with assistance from the Kaufman County Sheriff’s Department and the Kaufman Police Department. Assistant United States Attorney George Leal prosecuted the case.
Kanawha County Man Sentenced for EmbezzlementRead the Press Release
CHARLESTON, W.Va. – Gary F. Fridley II, 41, of Cross Lanes, was sentenced today to three years of federal probation and ordered to pay $19,732.88 in restitution for embezzlement of labor union assets.
According to court documents and statements made in court, from about December 20, 2018, until about June 12, 2019, Fridley was a union officer in Nitro while employed by American Electric Power (AEP). As the union’s elected financial secretary, Fridley was the union’s chief financial officer and was responsible for preparing and co-signing union checks and maintaining financial records. Fridley was one of three signatories on the union’s checking account at Huntington National Bank in Nitro. As financial secretary, Fridley was entitled to an officer’s salary as well as reimbursement for lost time or wages from his employment when he took off from work for union business.
On about June 12, 2019, Fridley received a check for $1,321.55 as reimbursement for lost time. Fridley admitted that he had not lost any time with AEP during that pay period. Fridley submitted a false voucher to receive an unauthorized lost time payment and forged the signature of another union official in order to cash the check for the fictitious lost time.
Fridley submitted additional false vouchers to receive unauthorized lost time payments from the union and forged the signatures of other union officials to cash the union checks he wrote payable to himself for the fictitious lost time payments. Fridley admitted that he improperly received $19,732.88 through his wrongful actions as the union’s financial secretary.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Labor Office of Labor-Management Standards (OLMS).
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorneys Kathleen Robeson, Andrew J. Tessman and Holly Wilson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-138.
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Jimcy McGirt Pleads Guilty to Aggravated Sexual Abuse in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Jimcy McGirt, age 75, of Holdenville, Oklahoma, entered a guilty plea to one count of Aggravated Sexual Abuse in Indian Country.
The guilty plea was the result of a written plea agreement which recommends the district judge sentence McGirt to thirty years in prison, followed by a five-year term of supervised release. The parties also recommend McGirt be given credit for the time he previously served in both state and federal custody on previous convictions related to this case.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, presided over the plea hearing in Muskogee and ordered the completion of a presentence investigation report. McGirt will remain in the custody of the United States Marshal until the sentencing hearing, at which time the court will determine whether to accept the plea agreement.
Assistant United States Attorneys Sarah McAmis and Kyra Jenner represented the United States.
Jefferson County Man Accused of Sexual Exploitation of a MinorRead the Press Release
ST. LOUIS – A man from Pevely, Missouri accused of recording his sexual abuse of a minor was arrested and appeared in federal court in St. Louis Tuesday.
Matthew Gamel, 36, was indicted November 8 on one count of sexual exploitation of a minor and one count of receipt of child pornography. He pleaded not guilty Tuesday.
The indictment accuses Gamel of coercing a minor into producing child pornography between Jan. 1, 2021 and Feb. 22, 2023, and receiving child pornography between Jan. 1, 2021 and Aug. 1, 2023. A motion seeking to have Gamel held in jail until trial says he recorded his sexual abuse of the minor when she was under the age of 14.
The sexual exploitation of a minor charge is punishable by 15 to 30 years in prison. The receipt of child pornography charge is punishable by five to 20 years in prison.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The Pevely Police Department and the FBI investigated the case. Assistant U.S. Attorney Michael Hayes is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Iowa Custom Cattle Farmer Pleads Guilty to Livestock Theft and COVID-19 FraudRead the Press Release
An Iowa farmer who operated an unlicensed custom cattle operation known as “Fawn Hollow” in Clayton County pled guilty on December 1, 2023, in federal court in Cedar Rapids. Michael Wayne Butikofer, age 53, from Monona, Iowa, was convicted of one count of theft of livestock, one count of wire fraud, and one count of false bankruptcy declaration.
In his plea agreement, Butikofer admitted he operated a large farming operation in Northeastern Iowa known as “Fawn Hollow,” from his home farm outside St. Olaf, Iowa, and at satellite locations elsewhere in Iowa and Wisconsin. Butikofer operated a so-called “custom cattle” feeding operation in which employees of his organization would raise and care for cattle owned by other individuals, including cattle investors located across the United States. Fawn Hollow then sold the cattle, primarily to a Wisconsin slaughterhouse.
At no time was Butikofer or “Fawn Hollow” registered with the United States Department of Agriculture (“USDA”) as a “dealer” under the Packers and Stockyards Act of 1921 (“the Act”). Butikofer and another individual identified as “Individual-1” did participate in the so-called “H-2A” visa program and recruited agricultural workers from the Republic of South Africa to work at Fawn Hollow.
Between July 2020 and February 2022, Butikofer converted the proceeds of sales of cattle owned by six cattle investors to his own use. Butikofer had convinced the cattle investors to allow Butikofer to sell the cattle in his own name. When Butikofer sold the cattle to the Wisconsin slaughterhouse, Butikofer falsely represented to the slaughterhouse that he had “good and merchantable title to” the cattle when he did not, in fact, own or otherwise have title to the cattle. By convincing the cattle investors to permit Butikofer to sell their cattle in his own name, and by fraudulently concealing the true ownership of the cattle from the slaughterhouse, Butikofer attempted to evade the requirements of the Act and its regulations for registration, posting of a dealer bond, and prompt payment, which would have protected the cattle investors’ funds.
Between July 2020 and August 2020, Butikofer defrauded the USDA of more than $200,000 in emergency assistance funds designed to assist livestock producers during the COVID-19 pandemic. Specifically, applications were submitted in the name of Individual-1 and entitled “Coronavirus Food Assistance Program” (“CFAP”) payments. A cattle producer qualified for CFAP payments on a per head basis based on the producer’s owned inventory of eligible beef cattle on a date selected by the producer between certain dates in calendar year 2020. It was part of Butikofer’s wire fraud scheme that the CFAP applications in Individual-1’s name falsely stated that Individual-1 owned cattle when, in truth, Individual-1 did not own any cattle. Finally, it was part of the scheme that Butikofer would intercept or otherwise gain access to the CFAP funds once the USDA provided those funds to Individual-1 and then use those CFAP funds for his own purposes.
In February 2022, Butikofer received over $1.5 million from the Small Business Administration (“SBA”) as part of an application for an Economic Injury Disaster Loan (“EIDL”). Butikofer falsely stated to the SBA that he would use the proceeds “solely as working capital to alleviate economic injury caused by” the COVID-19 pandemic. In truth, upon receiving the $1.5 million from the SBA, Butikofer used no less than $75,000 of the EIDL funds to pay an attorney known as Attorney-1 for services rendered in connection with a Chapter 11 bankruptcy proceeding that Butikofer filed on or about February 28, 2022, in In re Michael W. Butikofer et al., Case Number 22-00096, in the United States Bankruptcy Court for the Northern District of Iowa.
In March 2022, Butikofer submitted a false and fraudulent statement of financial affairs in his bankruptcy case. In April 2022, Butikofer falsely testified under oath at a meeting of creditors and, in November 2022, repeatedly committed perjury before the bankruptcy court when asked questions about the ownership of his cattle operation.
From April 2023 to November 2023, while on federal pretrial release, Butikofer recruited and caused Individual-1 to recruit H-2A workers to the United States under false and fraudulent pretenses, representations, and promises. The false and fraudulent pretenses, representations, and promises included: (1) the housing conditions provided to the employees; (2) the location of the employees’ work; (3) the terms and timing of reimbursement for the employees’ work and expenses; and (4) payment for injuries sustained during the employment.
Evidence at a detention hearing held on December 1, 2023, and December 4, 2023, showed that Butikofer attempted to tamper with grand jury and trial witnesses. In 2020, a federal district court entered a default judgment against Butikofer and in favor of H2A workers from the Republic of South Africa for civil violations of the Fair Labor Standards Act and Trafficking Victims Protective Reauthorization Act in 2018. As part of his plea agreement, Butikofer has agreed to voluntarily terminate and cease participation in foreign labor programs with respect to any program administered by the U.S. Department of Labor or U.S. Department of Homeland Security.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Butikofer faces a possible maximum sentence of 30 years’ imprisonment, a $750,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated by the Small Business Administration, Office of Inspector General, the Federal Deposit Insurance Corporation, Office of Inspector General, the United States Department of Agriculture, Office of Inspector General, the United States Department of Labor, Office of Inspector General, and Homeland Security Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-1018.
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Grain hauler driver sent to prison for illegally transporting peopleRead the Press Release
CORPUS CHRISTI, Texas – A 43-year-old Florida man has been ordered to federal prison following his conviction for transporting undocumented aliens, announced U.S. Attorney Alamdar S. Hamdani.
Joan Rincon pleaded guilty July 27.
U.S. District Judge David S. Morales has now ordered Rincon to serve 25 months in federal prison to be immediately followed by two years of supervised release. At the hearing, the court heard how Rincon had transported aliens in a grain hauler, including an unaccompanied minor. In handing down the sentence, the court remarked on the severity of the conduct and noted that the 15 aliens who had been transported in the grain hauler “deserved better.”
On May 7, Rincon approached the primary inspection lane at the U.S. Border Patrol (BP) checkpoint near Sarita. A K-9 soon alerted to the grain hauler he was driving.
Upon further inspection, authorities discovered 15 undocumented aliens inside the hauler as well as an additional five in the cabin. One individual described how hot it was inside the grain hauler. She claimed they were not allowed to take water, were all sweating profusely and were afraid they would pass out due to the heat.
Rincon was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
BP and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Tyler Foster prosecuted the case.
Ghost Gun Manufacturer Sentenced to 10 Years IncarcerationRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Somalie Bruce, 37, of St. Croix, was sentenced by Chief District Judge Robert A. Molloy to 120 months incarceration after pleading guilty to Conspiracy to Traffic Firearms and Possession with Intent to Distribute Cocaine.
“The manufacture of ‘ghost guns’ is intended to commit senseless acts of violence that are almost impossible to solve. I am therefore relieved that due to the excellent work of federal and local law enforcement partners, many lives have been saved”, said United States Attorney Smith. “The outcome of this investigation and significant sentence is a testament to the successful collaboration between our law enforcement agencies. The assembly of ghost guns pose a significant threat to the safety of Virgin Islanders. HSI has a firm stance against weapons trafficking and wants to make it clear that we will not tolerate weapons trafficking which is fueling violent crimes in the Territory”, said HSI San Juan Special Agent in Charge Rebecca Gonzalez-Ramos.
According to court documents, federal agents began investigating Bruce in March 2020, after Customs and Border Protection intercepted a package that was mailed by Bruce from a post office in St. Croix containing approximately 1.1 kilograms of cocaine. Further investigation revealed that Bruce’s girlfriend Jeanorah Williams had purchased 67 postal money orders totaling $65,000.00 payable to several gun manufacturers in Florida and North Carolina. Agents learned that, from May 2019 to July 2020, over 70 packages containing multiple firearm parts, including M-16 rifle bolt assemblies, AR15 rifle barrels and flare gun inserts which are used to convert a flare gun into a firearm, were shipped to Bruce and Williams from the same firearm companies. Agents also recovered invoices dated May 2019 through August 2020 from several firearms companies totaling over $95,000.00 for purchases of 200 firearms parts and accessories used in the construction of AR-15 and M-16 rifles and Glock handguns. Between October and December 2020, Bruce and Williams collected additional packages of firearm parts and accessories from the same post office in St. Croix. In a search of Bruce and Williams’ apartment, agents also recovered several assembled firearms, including one with an obliterated serial number, a shotgun and five handguns. Neither Bruce nor Williams are licensed firearm dealers, importers or manufacturers, as defined by federal law, and neither possesses a license or permit to carry, possess, or otherwise own a firearm under Virgin Islands law. On November 28, 2023, Williams pleaded guilty to Engaging in the Business of Manufacturing Firearms without a License. Her sentencing date has not been set by the court.
“I am extremely proud of our CBP Officers and law enforcement counterparts who utilized a multilayered enforcement approach of intelligence collection, x-ray technology, analysis, and, most importantly, subject matter expertise to ultimately disrupt this criminal organization and keep our Virgin Islands community safe,” said Roberto Vaquero, San Juan Field Office Director of Operations, Customs and Border Protection.
This case was investigated by the United States Postal Investigation Service, Homeland Security Investigations, Customs and Border Protection, Bureau of Alcohol, Tobacco, Explosives and Firearms, Drug Enforcement Administration, Virgin Islands Port Authority and Virgin Islands Police Department and was prosecuted by Assistant United States Attorney Everard E. Potter. This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCEDTF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transactional criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former Owner of New Jersey Marketing Company Sentenced to 15 Months in Prison for Role in $6 Million Compounded Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – The former owner of a New Jersey marketing company was sentenced today to 15 months in prison for his role in a scheme to defraud public and private health benefits programs of over $6 million for the billing of medically unnecessary compounded prescriptions, U.S. Attorney Philip R. Sellinger announced today.
Michael Drobish, 46, of Cedar Grove, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with conspiracy to commit health care fraud. U.S. District Judge Katharine S. Hayden imposed the sentence today in Newark federal court.
U.S. Attorney Philip R. Sellinger“This defendant exploited the health care system by taking advantage of reimbursements for compounded medications that were enormously expensive but medically unnecessary. This defendant has now been held accountable for his role in the criminal conspiracy. These compounding fraud schemes cause millions in losses to the health care system with zero benefit to beneficiaries. We will continue to combat this kind of health care fraud with our law enforcement partners.”
“The sentencing announced today demonstrate our commitment to investigate individuals who defraud TRICARE, the healthcare system for military members and their families,” Special Agent in Charge Patrick J. Hegarty in the Northeast Field Office of the Defense Criminal Investigative Service, the law enforcement arm of the Department of Defense Office of Inspector General, said. “Schemes to bill TRICARE for medically unnecessary services put our beneficiaries at risk and burden the TRICARE program. We will continue to partner with the U.S. Attorney’s Office and the FBI to protect the integrity of the TRICARE system.”
According to documents filed in this case and statements made in court:
Compounding is a practice in which a pharmacist or physician combines, mixes, or alters ingredients of a drug to create a medication tailored to the needs of an individual patient. The Food and Drug Administration does not approve compounded drugs and thus does not verify the safety, potency, effectiveness, or manufacturing quality of compounded drugs. Generally, a physician may prescribe compounded drugs when an FDA-approved drug does not meet the health needs of a particular patient.
From April 2014 to January 2017, Drobish conspired with others to submit fraudulent prescriptions for compounded medications to public and private insurance plans. The scheme centered on the discovery that certain insurance plans paid for prescription compounded medications – including scar creams, wound creams, and metabolic supplements/vitamins – at exorbitant reimbursement rates.
Drobish hired sales representatives through his marketing company to target individuals who had insurance plans that covered compounded medications. The sales representatives then convinced those individuals to obtain prescriptions for compounded medications, regardless of medical necessity, often by providing them with cash payments. The individuals were then directed to certain telemedicine companies, which the marketing company or its affiliates paid to issue the prescriptions. The prescribing physicians at the telemedicine companies would then write the prescriptions without performing any examination or after deliberately conducting cursory examinations that were insufficient to legitimately deem a compounded drug medically necessary.
Once the prescriptions were written, they were filled by certain compounding pharmacies with which Drobish conspired. The compounding pharmacies would then receive reimbursement from the insurance plans, and would pay Drobish’s marketing company a percentage of the reimbursement amount. Drobish would retain a portion of the payment and provide a “commission” payment to the relevant sales representative.
In addition to the prison term, Judge Hayden sentenced Drobish to three years of supervised release. As part of his plea agreement, Drobish must forfeit $532,650 in criminal proceeds and pay restitution of approximately $6.1 million.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and the U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Hegarty, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jordann Conaboy of the Opioid Abuse and Prevention Unit in Newark.
Former Executive Director of Alabama Association for Career and Technical Education Sentenced for Embezzling Federal FundingRead the Press Release
Montgomery, Alabama – Today, Acting United States Attorney Jonathan S. Ross announced the sentencing of a former executive director for the Alabama Association for Career and Technical Education for embezzlement of federal funds and tax crimes. On December 1, 2023, a federal judge sentenced Doris Joann Gilmore, 62, a resident of Montgomery, Alabama, to 37 months in prison. In addition, the judge ordered that Gilmore serve three years of supervised release following her prison term. Federal inmates are not eligible for parole.
According to the plea agreement and other court records, while serving as the executive director of Alabama Association for Career and Technical Education, Gilmore embezzled federal grant funds received by the association. Statements made during her sentencing hearing indicated that the embezzlement may have taken place for more than a decade. She also failed to send to the Internal Revenue Service payroll taxes that had been withheld during the first quarter of 2022. Gilmore pleaded guilty to the charges on May 11, 2023. Due to the financial losses caused by Gilmore’s crimes, the judge ordered her to pay $2,832,486.33 in restitution to the Alabama Association for Career and Technical Education and $802,508.88 to the IRS.
“The United States Attorney’s Office prioritizes protecting federal funds,” said Acting United States Attorney Ross. “Gilmore’s actions harmed the members of the association and prevented tax dollars from being put to a public use. I commend the hard work and countless hours put forth by all the law enforcement agencies involved.”
“Doris Gilmore was placed in a position of trust and should have directed these federal funds to their intended programs,” said FBI Special Agent in Charge Paul Brown. “When these funds are illegally earmarked for personal use the citizens of Alabama suffer, and the FBI along, with our state, local, and federal partners, will hold those responsible accountable.”
“Doris Gilmore took advantage of her position as executive director to commit financial crimes against her organization and its employees,” said Demetrius Hardeman, acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “The sentence she received should serve as a warning to others contemplating doing similar acts, that IRS Criminal Investigation will work diligently to identify and hold them accountable.”
“An important part of the U. S. Postal Inspection Service mission is to ensure public trust in the mail and to defend the nation’s mail system from illicit financial gain,” said Scott Fix, Inspector in Charge of the Houston Division of the U.S. Postal Inspection Service. “The arrest and sentencing of Doris Joanne Gilmore are a direct result of the collaborative efforts between the USPIS, FBI and IRS. The USPIS will continue to work with fellow law enforcement agencies to target those who would seek to commit similar fraud schemes."
The FBI, IRS’s Criminal Investigation Division, and the United States Postal Inspection Service investigated this case, with Assistant United States Attorney Joel Feil prosecuting.
Five charged in bank fraud and theft schemeRead the Press Release
HOUSTON – Five local men have been taken into federal custody on charges they conspired in a large-scale mail theft and credit card fraud scheme resulting in more than $1.2 million in losses, announced U.S. Attorney Alamdar S. Hamdani.
Authorities arrested Daniel Rios Sanchez, 35, and Omokehinde Muyiwa Oyegoke-Tewogbade, 62, both of Houston today. They are expected to make initial appearances before U.S. Magistrate Judge Christina Bryan at 2 p.m. Also charged and previously arrested were Dennis Christopher McGee, 41, Bradley Kane Zarco, 37, and Travis Castaneda Qawasmeh, 26, all also of Houston.
According to the indictment returned Oct. 4, all five obtained stolen U.S. mail containing new credit cards and bank statements for intended account holders. They allegedly called financial institutions to activate the stolen credit cards, increase credit limits and change information. The stolen credit cards were used to purchase goods, services, gift cards, cash and merchandise at retail stores, according to the charges.
Over a six-month period, they allegedly fraudulently activated at least 210 stolen credit cards and caused approximately $1,230,542.92 in losses.
All are charged with one count of conspiracy which carries a possible five-year prison term. If convicted of bank fraud, they could be sentenced to up to 30 years in prison, while a conviction of receipt of stolen mail carries a potential five years. All are also charged with aggravated identity theft which carries a mandatory two years in prison which must be served consecutively to any other prison term imposed. The charges also have potential fines of up to $1 million.
U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Karen Lansden is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Five Defendants Indicted and Arrested for Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On November 29, 2023, a federal grand jury in the District of Puerto Rico returned an indictment charging five individuals with drug trafficking.
According to court documents, Luis Javier Vázquez-Álvarez, a.k.a. “Javi Popcorn;” Luis Norberto Vázquez-Álvarez, a.k.a. “Luisito;” Meilyn Vázquez-Álvarez, a.k.a. “La Gorda;” Raymond Omar de Jesús-Rivera, a.k.a. “Villa;” and Sandra Álvarez-Rodríguez are charged with conspiring to distribute over five kilograms of cocaine. Specific defendants are charged with respect to three substantive charges relating to the possession with intent to distribute over 500 grams of cocaine on separate occasions.
The United States alleges that Luis Javier Vázquez-Álvarez and Luis Norberto Vázquez-Álvarez, known as the “Popcorn Brothers,” have led a drug-trafficking organization in Puerto Rico and spanning the eastern seaboard since at least March of this year. The organization’s members acquired kilograms of cocaine in Puerto Rico and used the United States Postal Service to send the kilograms to the continental United States.
Luis Javier Vázquez-Álvarez, who resides in Puerto Rico, organized the purchase and shipment of cocaine from Puerto Rico to the continental United States. Defendants Meilyn Vázquez-Álvarez (the sister of the “Popcorn Brothers”) and Sandra Álvarez-Rodríguez (their mother) mailed numerous parcels containing cocaine from post offices throughout the south of Puerto Rico. Luis Norberto Vázquez-Álvarez, who lived in New Jersey, received parcels containing cocaine for further distribution there. The government alleges that Raymond Omar de Jesús-Rivera also conspired in Puerto Rico to facilitate the trafficking of drugs to the United States through the mail.
Luis Javier Vázquez-Álvarez is currently on bail for a murder case in the municipality of Guayama and engaged in the charged offenses while on bail. Luis Norberto Vázquez-Álvarez is on bail from two separate cases in New Jersey -- for assault and for money laundering. He also participated in the charged drug trafficking activities while on bail on those two cases.
If convicted, the defendants face a mandatory minimum of ten years, up to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The announcement was made by W. Stephen Muldrow, United States Attorney for the District of Puerto Rico, U.S. Postal Inspector Sigfredo Martínez, Special Agent in Charge of the FBI San Juan Field Office, Joseph González, Special Agent in Charge of the DEA, Denise Foster, and Puerto Rico Police Bureau Commissioner, Colonel Antonio López-Figueroa.
The United States Postal Inspection Service, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Puerto Rico Police Bureau’s Guayama Strike Force investigated this case.
Assistant U.S. Attorney R. Vance Eaton is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Final Defendant Sentenced to 12 Years in Prison for Role in Murder and Assault on Red Lake Indian ReservationRead the Press Release
ST. PAUL, Minn. – A Redby man was sentenced to 144 months in prison, followed by five years of supervised release, for his role in a murder that took place in August 2019 on the Red Lake Indian Reservation, announced United States Attorney Andrew M. Luger.
According to court documents, on August 12, 2019, Daniel Charles Barrett, 32, together with codefendants Mia Faye Sumner, 22, Alexia Gah Gi Gay Mary Cutbank, 22, and armed with at least one handgun, entered the garage of a residence where Daniel Alan Johnson was known to reside. Once inside, Cutbank fired multiple gunshots, fatally wounding Johnson and seriously injuring a second victim, T.B.S. The three defendants returned to a waiting vehicle and left the scene. A fourth co-defendant, Rose Celeste Siewert, 51, drove Barrett, Cutbank, and Sumner off the reservation to help them avoid arrest.
Barrett was sentenced today in U.S. District Court by Judge Susan Richard Nelson. He pleaded guilty on August 16, 2022, but absconded during his pretrial release, and was ultimately arrested on November 2, 2023. Earlier this year, Cutbank was sentenced to 240 months in prison, Sumner was sentenced to 120 months in prison, and Siewert was sentenced to 48 months in prison.
This case is the result of an investigation conducted by the Red Lake Tribal Police Department, the FBI, the FBI Headwaters Safe Trails Task Force, the Duluth Police Department, the Minnesota Bureau of Criminal Apprehension, and the Minnesota Department of Corrections, in collaboration with the United States Attorney’s Office Missing and Murdered Indigenous Persons Initiative.
Assistant U.S. Attorney Laura Provinzino prosecuted the case.
Federal officer charged with bribery and attempted importation of cocaineRead the Press Release
LAREDO, Texas – A 35-year-old Customs and Border Protection (CBP) officer working at the Port of Entry in Laredo has been arrested, announced U.S. Attorney Alamdar S. Hamdani.
Emanuel Celedon is set to make his initial appearance before U.S. Magistrate Judge Christopher dos Santos at 9:40 a.m.
The indictment, returned Nov. 28, charges him with two counts of bribery and witnesses and two counts of attempted importation of cocaine.
The charges allege that from Oct. 1-17, Celedon accepted U.S. currency in exchange for allowing an individual to transport a substance he believed to be several kilograms of cocaine into the United States from Mexico through the Laredo Port of Entry without inspection. Celedon allegedly accepted another bribe for the same conduct from on or about Oct. 23-30.
If convicted, Celedon faces up to 15 years in prison as well as a possible $250,000 maximum fine for the bribery allegations, while the attempted importation of cocaine charges carry a mandatory minimum of five and up to 40 years in prison and up to a $5 million fine.
Department of Homeland Security - Office of Inspector General in conjunction with the Drug Enforcement Administration and CBP - Office of Professional Responsibility conducted the investigation. Assistant U.S. Attorneys Richard W. Bennett and Jennifer Day are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Englewood Armed Career Criminal Sentenced to More Than 15 Years for Heroin Distribution and Possession of FirearmRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Michael Edward Lindsey (47, Englewood) to 15 years and 8 months in federal prison for possessing a firearm as a convicted felon and possessing a controlled substance with the intent to distribute it. Lindsey was sentenced under the Armed Career Criminal Act which requires a minimum mandatory sentence of 15 years’ imprisonment. Lindsey had pleaded guilty on September 12, 2023.
According to the plea agreement, Lindsey is a multi-convicted felon for multiple narcotics distribution and violent offenses dating back to 1996. On June 9, 2022, during a traffic stop conducted by officers from the North Port Police Department (NPPD) in the area of 12145 Tamiami Trail, officers found Lindsey in possession of approximately 1.6 grams of methamphetamine and a loaded Smith & Wesson Bodyguard .380 caliber pistol loaded with five rounds of ammunition. As the officers approached Lindsey’s vehicle, Lindsey consumed a large quantity of drugs by emptying the contents of the bag into his mouth. NPPD officers recovered 1.6 grams of methamphetamine, after Lindsey had consumed the remainder of the drugs.
On November 13, 2022, NPPD officers arrested Lindsey on an active warrant. During a search incident to his arrest, the officers found Lindsey in possession of distribution quantities of methamphetamine and heroin.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the North Port Police Department. It was prosecuted by Assistant United States Attorneys David W.A. Chee and Samantha C. Beckman.
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.
Dubuque Man Sentenced to Eight Years in Federal Prison for Being a Felon in Possession of a FirearmRead the Press Release
A felon who possessed a firearm was sentenced December 4, 2023, to eight years in federal prison.
Rosnel Larose, age 32, of Dubuque, received the sentence after a June 20, 2023, guilty plea to one count of being a felon in possession of a firearm. At the plea hearing, Larose admitted that, in January 2022, he possessed a pistol after having been convicted of eleven felonies.
Larose was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Larose was sentenced to 96 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Dubuque Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 22-1044.
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Dixon Woman Sentenced to 23 Years for Meth TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Dixon, Mo., woman has been sentenced in federal court for possessing methamphetamine to distribute.
Connie M. Gonzales, 53, was sentenced by U.S. District Judge Roseann Ketchmark on Aug. 31, 2023, to 23 years in federal prison without parole.
On Nov. 17, 2022, Gonzales pleaded guilty to one count of possessing methamphetamine with the intent to distribute and one count of possessing methamphetamine with the intent to distribute in a premises where a minor resided.
According to court documents, multiple criminal investigations were conducted between January 2017 and August 2021 by state agencies, including the Missouri State Highway Patrol and law enforcement personnel in Pulaski County, which implicated Gonzales in one or more drug-trafficking schemes. Investigators learned that Gonzales obtained large quantities of methamphetamine from a supplier in Arizona by traveling to and from Arizona while concealing contraband in a spare tire, or by arranging for the methamphetamine to be mailed to her.
One confidential informant told investigators he/she received one or two pounds of methamphetamine from Gonzales every one to three weeks. The informant reported having witnessed 10 to 15 pounds of methamphetamine in Gonzales’s residence on several occasions. Gonzales was on state probation during this period, having pleaded guilty to the felony offense of possessing methamphetamine in 2016.
Federal agents seized two packages that had been mailed to Gonzales in September 2021. The first package was mailed from a non-existent children’s toy business in Mesa, Arizona, to a St. Roberts, Mo., address. It contained approximately 1.5 kilograms of methamphetamine in six separate bundles concealed inside plush children’s toys. The second package was addressed to Kathleen Kubes (Gonzales’s deceased mother) at Gonzales’s residence. It contained approximately 1.2 kilograms of methamphetamine in five separate bundles concealed inside plush children’s toys.
Law enforcement officers executed a search warrant at Gonzalez’s residence on March 21, 2022. Gonzales was present, along with her adult daughter and her three children (ages seven to 11), who also lived at the residence. Investigators found a safe in the master bedroom that contained a large bag of crystal methamphetamine, three small baggies of crystal methamphetamine, and drug paraphernalia. Investigators also found a cellophane-wrapped package on the bed, under the sheet, that contained a large quantity of methamphetamine. In total, officers seized approximately 848 grams of methamphetamine.
Gonzales told investigators she made multiple trips to Arizona, where she would obtain one or two pounds of methamphetamine per trip.
This case was prosecuted by Assistant U.S. Attorney John D. Hatcher. It was investigated by the Drug Enforcement Administration, the Missouri State Highway Patrol, the Pulaski County, Mo., Sheriff’s Department, the South Central Drug Task Force, and the U.S. Postal Inspection Service.
District Man Sentenced to 64 Months in Prison for Unlawful Possession of a FirearmRead the Press Release
WASHINGTON – Hakeem Remy, 34, of Washington, D.C., was sentenced to 64 months in prison term on Nov. 30, 2023, for unlawfully possessing a firearm, announced U.S. Attorney Graves and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
In addition to the prison term, U.S. District Court Judge Timothy J. Kelly ordered Remy to serve three years of supervised release.
On Mar. 6, 2023, Remy escaped from a halfway house while serving a sentence for gun possession and drug distribution convictions. There was a warrant out for his arrest. Remy previously had been convicted of a crime punishable by a term exceeding one year in Superior Court the District of Columbia.
On Apr. 24, 2023, MPD officers were patrolling the 1900 block of 19th Place, SE. Remy spotted the police and fled on foot, eventually throwing a firearm into the woods before being arrested. Police recovered a Glock 9mm semi-automatic gun that was armed with one round in the chamber and 17 bullets in a high-capacity magazine. The firearm had been reported stolen in 2021 out of Fairfax Co., Va.
In announcing the sentencing, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the U.S. Attorney’s Office and MPD.
District Man Pleads Guilty to Aggravated Assault of a Senior CitizenRead the Press Release
WASHINGTON – Alexander Adams, 35, of Washington, DC, pleaded guilty December 4, 2023, to aggravated assault of a senior citizen, U.S. Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department (MPD) announced. Sentencing is scheduled for January 26, 2024, before the Honorable Lynn Leibovitz in the Superior Court of the District of Columbia.
According to the government’s evidence, on February 23, 2022, around 11:10 p.m., the defendant randomly approached then 78-year-old John Hopkins and then 79-year-old Claudia Hopkins outside of the Giant located at 3700 Newark Street NW, Washington, D.C., and asked them for five dollars. When Mr. Hopkins gave the defendant one dollar, the defendant declared, “That is not enough!” and began attacking Mr. and Mrs. Hopkins. Defendant first struck Mr. Hopkins with his fist, causing Mr. Hopkins to fall. Then, the defendant took Mr. Hopkins’ wooden cane and began beating Mrs. Hopkins with it about her head and body, causing her to fall backward and hit her head on the concrete. Fortunately, two District of Columbia Fire and Emergency Medical Services personnel were sitting at a red light near the Giant and saw the attack. They immediately took action and transported Mrs. Hopkins to the hospital. Metropolitan Police Department officers apprehended Adams around the corner from the Giant.
As a result of the attack, Mrs. Hopkins suffered numerous injuries including a concussion, a brain bleed, swelling on the brain, altered mental state and cognitive deficits. In fact, to this day, Mrs. Hopkins suffers from severe cognitive decline and will likely never recover.
In announcing the plea, U.S. Attorney Graves and Chief Smith commended the work of the Metropolitan Police Department, which investigated the case.
The case was investigated and prosecuted by Assistant U.S. Attorney Shakinah Douglas with valuable assistance provided by Assistant U.S. Attorney Noah Simmons.
Dallas Importer and Two Chinese Companies to Pay $2.5 Million to Resolve Allegations of Underpaying Customs DutiesRead the Press Release
ADCO Industries (a/k/a Dallco Marketing, Inc.), a Dallas-based importer of industrial products, along with two Chinese companies and two individuals, has agreed to pay $2.5 million to resolve allegations that it violated the False Claims Act by failing to pay customs duties on imports from China, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Customs laws require importers to pay duties on the price paid for imported goods. This settlement resolves allegations that ADCO, its owner Raymond E. Davis, customs broker Calvin Chang, and Chinese companies Xiamen Atlantis MFC Co., Ltd. and Xiamen Taft Medical Co., Ltd. conspired to underreport the value of imported goods delivered to ADCO in the United States.
Specifically, the government alleged that for customs valuation purposes, falsified invoices were created and submitted to U.S. Customs and Border Protection (CBP) containing false, lower values for the goods ADCO was receiving from China. It contended that a second set of correct invoices—invoices that were not submitted to CBP—were then used to ensure that ADCO paid its Chinese suppliers for the actual value of the goods. The government further alleged that this false invoicing practice resulted in the undervaluation of goods upon entry into the United States, which resulted in the loss of revenue in the form of customs duties and other fees.
“Customs laws are an important component of national security and, among other things, protect the public and American businesses from unfair competition,” said U.S. Attorney Leigha Simonton. “This office will continue to aggressively investigate and hold accountable anyone it believes has tried to cheat the government and the public at large through the manipulation of customs duties.”
“CBP’s Consumer Products and Mass Merchandising Center of Excellence and Expertise worked in collaboration with the U.S. Attorney’s Office to identify and review over 1,000 import entry lines entered by ADCO, as relevant to the underreporting allegations,” said Director Gregory Alvarez of the CBP Atlanta Field Office. “CBP is proud of the investigative work done by its experienced Import Specialists on the case and will continue to work collaboratively with inter-agency stakeholders to safeguard our nation’s economic security.”
The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the FCA, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit is captioned United States ex rel. Reznicek et al. v. Dallco Marketing, Inc. et al., No. 3:22-CV-332-L (N.D. Tex.). The relators (whistleblowers), Donald Reznicek and Collen McFarland, will receive a $500,000 share as part of the settlement.
The matter was handled by Assistant United States Attorneys William Admussen and Brian Stoltz. The civil claims settled by the settlement agreement are allegations only; there has been no determination of civil liability.
Clark County man sentenced to 20 years in prison for hate crimes against HaitiansRead the Press Release
DAYTON, Ohio – A Springfield, Ohio, man was sentenced in U.S. District Court today to 240 months in prison for crimes related to targeting and attacking Haitians residing in the area.
Izaye Eubanks, 22, pleaded guilty in August to both federal and local crimes. He admitted to committing hate crimes against at least 8 Haitian nationals.
“This defendant is being held accountable for repeatedly assaulting and robbing members of the Haitian community in Springfield, Ohio, because of their national origin,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Attacks like these, where a group of individuals is singled out and targeted for violent assaultive conduct because of who they are, will not be tolerated. The Justice Department will continue to enforce our federal criminal civil rights laws and prosecute those who commit violent, bias-motivated crimes in our country.”
“Hate and discrimination have never had a place in our society. As today’s significant prison sentence shows, they have no place today,” said U.S. Attorney Kenneth L. Parker. “We will continue to prosecute hate crimes to the fullest extent of the law.”
“The hate crimes committed by Izaye Eubanks threatened and intimidated the immigrant community throughout the region,” stated FBI Cincinnati Special Agent in Charge J. William Rivers. “Because hate crimes have such a wide-ranging impact, investigating these crimes is a top priority for the FBI.”
According to court documents, in January and February 2023, Eubanks committed various assaults, robberies and a carjacking of Haitian individuals because of the victims’ actual and perceived national origin.
Eubanks would travel throughout Springfield looking for individuals he believed were from Haiti and would then attack the individuals, usually by punching them and knocking them to the ground before robbing them of their money, cell phones, a vehicle, and other personal belongings.
For example, on Jan. 29, 2023, Eubanks assaulted and robbed a victim while the victim was walking to wire $300 in cash to his mother in Haiti. Eubanks punched the victim in the back of the head and neck, causing him to briefly black out, then robbed the victim of his cash, cell phone, and ATM cards.
That same day, Eubanks assaulted a victim as he left Friendly’s Bakery, a Haitian market. Eubanks grabbed the victim by his shirt, pulled him out of his vehicle, and punched him in the face before stealing the victim’s vehicle.
On Feb. 1, 2023, Eubanks directed juveniles to help him complete four separate attacks on five victims.
Eubanks will serve his federal sentence concurrently to the one imposed in Clark County Court of Common Pleas. Eubanks pleaded guilty to five counts of 2nd degree felonious robbery in his local case. He will serve four years in prison for each robbery count concurrently to federal imprisonment.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Department of Justice Civil Rights Division Assistant Attorney General Kristen M. Clarke; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division; Clark County Prosecutor Daniel P. Driscoll; and Springfield Police Chief Allison Elliott announced the sentence imposed today by U.S. District Judge Michael J. Newman. Assistant United States Attorneys Amy M. Smith and Ryan A. Saunders are representing the United States in this case.
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Burlington Man Pleads Guilty to Gun Possession and Fraud ChargesRead the Press Release
Burlington, Vermont – The United States Attorney’s Office stated Leon Delima, 35, of Burlington, Vermont, pleaded guilty today to gun possession and fraud charges in two cases before U.S. District Court Judge Christina Reiss.
According to the stipulated facts in the agreement between the parties, in the Spring of 2021, Leon Delima devised a plan to fraudulently obtain COVID-relief funds from the U.S. Small Business Administration (SBA). In April 2021, Delima successfully obtained a $17,833 Paycheck Protection Program (PPP) loan from the SBA by claiming that he operated a marketing consulting business from which he had earned $85,600 annually. In fact, Delima had no such business. He spent the loan funds over a two-week period for consumer goods, life expenses, and non-business items, including high-end sneakers. With the April 2021 loan funds exhausted, in July 2021, Delima applied for a second SBA loan, this time claiming he operated a 45-employee pet-grooming business with gross revenues of $300,000 for the year prior to January 2020. SBA denied the second loan application.
Additionally, according to the stipulated facts, on July 2, 2022, Delima, who was previously convicted of a felony offense, possessed a firearm that he fired into the air as he was walking along North Avenue in Burlington, Vermont. Delima threw the gun aside before law enforcement could respond to the gunshots.
Delima pleaded guilty today to three offenses—wire fraud, which carries a maximum 20-year sentence; making a false statement in a matter within the jurisdiction of the executive branch of the U.S. government, which carries a 5-year maximum sentence; and being a felon in possession of a firearm, which carries a maximum sentence of 15 years. The actual sentences will be determined by the court with reference to the Federal Sentencing Guidelines and the United States Code. If accepted by the court, the plea agreement signed by Delima and the government recommends a sentence of 37 to 55 months.
The U.S. Attorney’s Office thanked the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Internal Revenue Service Criminal Investigations Division (IRS CID), and the Burlington Police Department for their work on the two investigations of Leon Delima.
Assistant U.S. Attorney Eugenia Cowles has handled the case for the government. Assistant Federal Public Defender Sara Puls represents Leon Delima.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID- 19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn.
Bronx Man Sentenced to 47 Months in Prison for Committing Shooting in Broad DaylightRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that DUJOHN WILLETTE was sentenced to 47 months in prison in connection with a shootout he engaged in on September 27, 2021, that resulted in a 14-year-old being shot in the ankle. WILLETTE previously pled guilty before U.S. District Judge Richard M. Berman, who also imposed today’s sentence, to one count of possessing ammunition after conviction for a felony.
U.S. Attorney Damian Williams said: “In September 2021, Dujohn Willette engaged in a shootout in broad daylight in the middle of a crowded street in the Bronx. Residents of the Bronx were endangered that day, and a 14-year-old was injured. Willette is a repeat offender, having been prosecuted by our Office twice before for illegally possessing firearms. As today’s sentence demonstrates, our Office is committed to keeping New York City safe by vigorously prosecuting perpetrators of gun violence.”
According to the Indictment and other filings and statements made in court:
At approximately 2:32 p.m. on September 27, 2021, WILLETTE was riding his moped on the sidewalk of East 228th Street in the Bronx. As WILLETTE approached the corner of East 228th Street and White Plains Road, he rode past a group of men, jumped off his moped, and, while running backwards, fired a gun. In total, WILLETTE and another shooter shot at each other seven times. Below are two photographs showing WILLETTE firing his weapon:
In the crossfire, a 14-year-old boy was shot in the ankle.
Before this conviction, WILLETTE had three prior felony convictions for illegally possessing firearms and had twice before been prosecuted by the U.S. Attorney’s Office for possessing a firearm after a felony conviction.
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In addition to his prison term, WILLETTE, 35, of the Bronx, New York, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the Special Agents of the U.S. Attorney’s Office.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Adam Sowlati and Danielle Sassoon are in charge of the prosecution.
Bosnia and Herzegovina National Indicted for Aiding in Escape of Russian DefendantRead the Press Release
A two-count indictment was unsealed yesterday in federal court in Brooklyn, New York, charging Vladimir Jovancic, a Bosnian national, with obstructing justice and assisting escape for his role in helping Artem Uss flee from Italy to Russia following an Italian court ruling that Uss would be extradited to the United States. Uss had previously been charged in United States v. Orekhov et al. with heading a global scheme to smuggle millions of dollars in sensitive military and dual-use technologies and oil from Venezuela to sanctioned Russian oligarchs and companies. Jovancic was arrested yesterday in the Republic of Croatia and will be arraigned in the Eastern District of New York at a future date.
Breon Peace, United States Attorney for the Eastern District of New York, and Lisa O. Monaco, United States Deputy Attorney General, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged, this defendant brazenly helped Artem Uss escape justice on an indictment charging Uss for his actions in fueling Russia’s war in Ukraine, evading sanctions and enabling oligarchs,” stated United States Attorney Peace. “I want to thank our partners in Italy for their valuable assistance and support. We will continue to work together to make sure everyone involved in this flagrant scheme to obstruct justice is held accountable.”
United States Attorney Peace also thanked the U.S. Department of Commerce’s Office of Export Enforcement, New York Field Office, the Justice Department’s Office of International Affairs, Task Force Kleptocapture Milan Prosecutor’s Office (Procura della Repubblica presso il Tribunale di Milano), the Carabinieri, the Ministry of Justice, and Croatian authorities for their assistance.
“The defendant allegedly helped a Kremlin crony jump bail in order to evade justice—but now finds himself captured by the long arm of U.S. law enforcement,” said Deputy Attorney General Lisa Monaco. “This case demonstrates the reach of the Department of Justice and further exposes the criminal networks propping up the Russian regime as it wages its unlawful and unprovoked war in Ukraine.”
“Vladimir Jovancic was arrested yesterday for allegedly orchestrated Artem Uss’s escape from Italy by cutting off his ankle monitor and smuggling him through multiple countries. The action yesterday is a stark reminder – if you interfere with U.S. legal proceedings anywhere around the world, the FBI will find you, we will arrest you, and we will bring you to justice. Artem Uss remains a fugitive, no matter how often he leverages connections with criminal groups in Europe he is only temporarily evading imprisonment; we are confident that today’s reward announcement will aid in bringing an end to Uss’s transient criminality and he will soon find himself back in U.S. custody. The FBI and our international partners will continue to work together to thwart attempts to evade sanctions imposed against Russia’s aggression against Ukraine,” stated FBI Assistant Director-in-Charge Smith.
Artem Uss
As alleged in the indictment and other court filings, Uss is the son of Alexander Uss, the governor of Russia’s Krasnoyarsk Krai region and a close ally of President Vladimir Putin. Uss has ownership interests in several Russian companies in Krasnoyarsk Krai and elsewhere, as well as a senior position with a subsidiary of Rosneft, a sanctioned Russian state-controlled oil conglomerate. Uss also had several significant holdings in Italy, including a luxury hotel in Sardinia, a vineyard and other real estate.
Uss and his business partner, Yury Orekhov, orchestrated a transnational fraud, smuggling and money laundering operation under the umbrella of Nord-Deutsche Industrieanlagenbau GmbH (NDA GmbH), a privately held industrial equipment and commodity trading company located in Hamburg, Germany. Uss and Orekhov each owned fifty percent of NDA GmbH. Using NDA GmbH as a front company, Uss and Orekhov sourced and purchased sensitive military and dual-use technologies from U.S. manufacturers, including advanced semiconductors and microprocessors used in fighter aircraft, missile systems, smart munitions, radar, satellites, and other space-based military applications. These items were shipped to Russian end users, including sanctioned companies that serviced Russia’s defense sector. Some of the types of electronic components obtained through the criminal scheme have been found in Russian weapons platforms seized on the battlefield in Ukraine. Uss and Orekhov also used NDA GmbH as a front to smuggle hundreds of millions of barrels of oil from Venezuela to Russian and Chinese purchasers, including a Russian aluminum company controlled by a sanctioned oligarch and the world’s largest oil refining, gas and petrochemical conglomerate based in Beijing, People’s Republic of China.
Uss’ Escape
Uss was apprehended in Milan, Italy on October 17, 2022, pursuant to a provisional arrest request from the United States. Following his arrest, and over the objection of both Italian and U.S. prosecutors, Uss was released on bail to home detention at his Milan residence with electronic monitoring. On March 21, 2023, the Italian court approved Uss’ extradition to the United States. The next day, on March 22, 2023, Uss escaped from home detention and fled Italy, ultimately arriving in Russia, with the assistance of several individuals, including Vladimir Jovancic.
The investigation into Uss’ escape revealed that, in or about January 2023, Jovancic and other individuals affiliated with a Serbian organized crime group were recruited by Uss to help him flee to Russia in the event extradition was granted. Jovancic met Uss’ wife at a hotel in Milan, Italy, where they planned for Jovancic to deliver groceries to Uss’ residence in Milan as a pretext so that Jovancic’s presence would not raise suspicion if an escape was necessary. Uss’ wife also provided Jovancic with a cell phone and a 10,000 euro deposit for his services. Jovancic was later provided with a keycard to directly access Uss’ residence.
On the day of Uss’ escape, following the Italian court’s decision to extradite Uss to the United States, Jovancic and several other coconspirators went to Uss’ residence. Once there, Jovancic escorted Uss into a car and provided Uss with bolt cutters. Uss used the bolt cutters to remove his electronic ankle monitor and throw the monitoring device out the window. Jovancic and his coconspirators then drove Uss across the border into Slovenia. Over the next several days, Jovancic and his coconspirators shuttled Uss through Slovenia, Croatia and Bosnia and Herzegovina before crossing into Serbia, where Uss paid Jovancic an additional 40,000 euro before boarding a plane to Russia.
If convicted, Jovancic faces a maximum of 20 years’ imprisonment. The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
In conjunction with yesterday’s arrest, the State Department announced a reward offer of up to $7 million under the Transnational Organized Crime Rewards Program for information leading to the arrest or conviction of Uss.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Artie McConnell is in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
The Defendant:
Vladimir JOVANCIC
AGE: 52
Sarajevo, Bosnia and HerzegovinaE.D.N.Y. Docket No. 23-CR-430 (RPK)
Bosnia and Herzegovina National Arrested for Aiding Escape of Russian DefendantRead the Press Release
A two-count indictment was unsealed yesterday in federal court in Brooklyn, New York, charging Vladimir Jovancic, 52, a Bosnia and Herzegovina national who resides in Serbia, with obstructing justice and assisting escape from custody. Jovancic was arrested on Dec. 4 in the Republic of Croatia. In a related operation, Italian authorities separately arrested a second suspect in Italy on Dec. 4.
As alleged, Jovancic is one of several individuals who helped Artem Uss, a defendant in United States. v. Orekhov et al., flee from Italy to Russia following an Italian court ruling that Uss would be extradited to the United States to face charges. Uss is charged with heading a global scheme to smuggle millions of dollars in sensitive military and dual-use technologies and oil from Venezuela to sanctioned Russian oligarchs and companies.
“The defendant allegedly helped a Kremlin crony jump bail in order to evade justice — but now finds himself captured by the long arm of U.S. law enforcement,” said Deputy Attorney General Lisa Monaco. “This case demonstrates the reach of the Department of Justice and further exposes the criminal networks propping up the Russian regime as it wages its unlawful and unprovoked war in Ukraine.”
“As alleged, this defendant brazenly helped Artem Uss escape justice on an indictment charging Uss for his actions in fueling Russia’s war in Ukraine, evading sanctions and enabling oligarchs,” said U.S. Attorney Breon Peace for the Eastern District of New York. “I want to thank our partners in Italy for their valuable assistance and support. We will continue to work together to make sure everyone involved in this flagrant scheme to obstruct justice is held accountable.”
“The defendant’s flagrant disregard for the rule of law has not gone unanswered. This indictment and arrest demonstrate the FBI’s continued focus on holding accountable those who assist criminals attempting to evade U.S. law, regardless of where they may try to hide,” said FBI Deputy Director Paul Abbate. “The FBI, along with our international partners, will continue to aggressively investigate, pursue, and prosecute those who facilitate corrupt practices that place our nation and our institutions at risk.”
“Today’s actions are a warning to anyone who is thinking about unlawfully aiding sanctioned Russian elites and their enablers,” said Co-Director of Task Force KleptoCapture David Lim. “If you break our laws, we will use every available tool and leverage our strong international partnerships to pursue you until you are brought to justice.”
Concurrent with this law enforcement action, the State Department announced a reward offer of up to $7 million under the Transnational Organized Crime Rewards Program (TOCRP) for information leading to the arrest or conviction of Artem Aleksandrovich Uss.
As alleged in the indictment and other court filings, Uss is the son of Alexander Uss, the governor of Russia’s Krasnoyarsk Krai region and a close ally of President Vladimir Putin. Uss has ownership interests in several Russian companies in Krasnoyarsk Krai and elsewhere, as well as a senior position with a subsidiary of Rosneft, a sanctioned Russian state-controlled oil conglomerate. Uss also had several significant holdings in Italy, including a luxury hotel in Sardinia, a vineyard and other real estate.
Uss and his business partner, Yury Orekhov, allegedly orchestrated a transnational fraud, smuggling and money laundering operation under the umbrella of Nord-Deutsche Industrieanlagenbau GmbH (NDA GmbH), a privately-held industrial equipment and commodity trading company located in Hamburg, Germany. Uss and Orekhov each owned 50% of NDA GmbH. Using NDA GmbH as a front company, Uss and Orekhov sourced and purchased sensitive military and dual-use technologies from U.S. manufacturers, including advanced semiconductors and microprocessors used in fighter aircraft, missile systems, smart munitions, radar, satellites and other space-based military applications. These items were shipped to Russian end users, including sanctioned companies that serviced Russia’s defense sector. Some of the types of electronic components obtained through the criminal scheme have been found in Russian weapons platforms seized on the battlefield in Ukraine. Uss and Orekhov also used NDA GmbH as a front to smuggle hundreds of millions of barrels of oil from Venezuela to Russian and Chinese purchasers, including a Russian aluminum company controlled by a sanctioned oligarch and the world’s largest oil refining, gas and petrochemical conglomerate based in Beijing, People’s Republic of China.
Uss was apprehended in Milan, Italy, on Oct. 17, 2022, pursuant to a provisional arrest request from the United States. Following his arrest, and over the objection of both Italian and U.S. prosecutors, Uss was released on bail to home detention at his Milan residence with electronic monitoring. On March 21, the Italian court approved Uss’ extradition to the United States. The next day, Uss escaped from home detention and fled Italy, ultimately arriving in Russia, with the assistance of several individuals, including Vladimir Jovancic.
The investigation into Uss’ escape revealed that, in or about January 2023, Jovancic and other individuals affiliated with a Serbian organized crime group were recruited by Uss to help him flee to Russia in the event extradition was granted. Jovancic met Uss’ wife at a hotel in Milan, Italy, where they planned for Jovancic to deliver groceries to Uss’ residence in Milan as a pretext so that Jovancic’s presence would not raise suspicion if an escape was necessary. Uss’ wife also provided Jovancic with a cell phone and a 10,000-euro deposit for his services. Jovancic was later provided with a keycard to directly access Uss’ residence.
On the day of Uss’ escape, following the Italian court’s decision, Jovancic and several other co-conspirators went to Uss’ residence. Once there, Jovancic escorted Uss into a car and provided Uss with bolt cutters. Uss used the bolt cutters to remove his electronic ankle monitor and throw the monitoring device out the window. Jovancic and his co-conspirators then drove Uss across the border in Slovenia. Over the next several days, Jovancic and his co-conspirators shuttled Uss through Slovenia, Croatia and Bosnia and Herzegovina before crossing into Serbia, where Uss paid Jovancic an additional 40,000 euro before boarding a plane to Russia.
If convicted, Jovancic faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and Department of Commerce’s Office of Export Enforcement New York Field Office are investigating the case, with valuable assistance provided by the Justice Department’s Office of International Affairs. The Justice Department thanks the Croatian authorities and the Italian authorities for their critical collaboration, specifically, the Milan Prosecutor’s Office (Procura della Repubblica presso il Tribunale di Milano), the Carabinieri and the Ministry of Justice.
Assistant U.S. Attorney Artie McConnell for the Eastern District of New York is prosecuting the case, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jovancic Indictment Italian release Italian release translationBoise Man Sentenced for Role in Conspiracy to Use Cryptocurrency to Launder Drug ProceedsRead the Press Release
BOISE – Michael Robert Osborn, 39, of Boise, was sentenced to 188 months in federal prison for conspiring to distribute controlled substances and conspiring to commit money laundering, U.S. Attorney Josh Hurwit announced today.
According to court records, Osborn participated in a lengthy conspiracy to distribute drugs and a conspiracy to commit money laundering. Osborn, who was incarcerated in the Idaho Department of Correction during the criminal activity, was a supervisor of the criminal activity. He utilized a contraband cellular telephone to communicate with other members of the conspiracy to facilitate the crime. Osborn used cryptocurrency to purchase alpha-pyrrolidinohexanophenone (a-PHP), a schedule I controlled substance that is commonly referred to as “bath salts,” on the internet. The drugs were shipped from outside the United States into Idaho where other members of the conspiracy sold the drugs and collected the drug proceeds. Those drug proceeds were converted into Bitcoin and other cryptocurrencies to conceal the nature and source of the drug proceeds. Osborn would then use the Bitcoin to purchase additional a-PHP for distribution. This scheme continued from October 2019 until March 2021. During the investigation, law enforcement agents seized a digital wallet, pursuant to a court-authorized seizure warrant, that contained the drug proceeds. The wallet contained 7.83777 Bitcoin and was valued at approximately $280,000 at the time of the seizure.
Chief U.S. District Judge David C. Nye sentenced Osborn to 188 months in federal prison followed by three years of supervised release and ordered the seized Bitcoin to be forfeited. Osborn pleaded guilty to the charges on April 26, 2023. Osborn is the fourth and final defendant to be sentenced in the case.
Codefendant Troy Thomas Wheeler, 48, of Meridian, was sentenced on September 11, 2023, by Judge Nye to 86 months in federal prison for his role in the drug conspiracy. Wheeler, who was also incarcerated in the Idaho Department of Correction during the criminal activity, assisted Osborn in recruiting others and supervising the criminal activity. Wheeler was sentenced to three years of supervised release following his prison sentence.
Laura Russell, 66, of Mountain Home, who is Osborn’s mother, was sentenced by Judge Nye on June 22, 2023, to 40 months in federal prison followed by two years of supervised release for her role in the money laundering conspiracy. Russell collected the drug proceeds from others and converted them into Bitcoin knowing that the funds were drug proceeds to conceal the nature and source of the drug proceeds.
Angela Marie Klinkhamer, 44, of Caldwell, was sentenced by Judge Nye on March 16, 2023, to 70 months in federal prison followed by three years of supervised release for her role in both the drug and money laundering conspiracy. Klinkhamer’s role included distributing the drugs to others and collecting the drug proceeds, which she provided to codefendant Russell so they could be converted into Bitcoin to conceal the drug proceeds. Klinkhamer pleaded guilty to conspiracy to distribute controlled substances and conspiracy to commit money laundering on November 28, 2022.
“This case reflects our commitment not only to remove drug dealers and their drugs from our streets, but also to seize their proceeds using the money laundering and forfeiture statutes,” said U.S. Attorney Hurwit. “Drug traffickers should know it makes no difference whether they hide their illicit proceeds in a suitcase or a cryptocurrency wallet. We will track their money, find where it’s hidden, and seize it.”
“IRS CI special agents are federal law enforcement’s premier financial investigators, and experts at dismantling drug trafficking organizations by unraveling their cryptocurrency schemes,” said Todd Martin, Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “CI, our law enforcement partners, and the United States Attorney’s Office will continue to work together to target these operations and eliminate this threat from our communities.”
“These sentences exemplify the unwavering commitment that HSI and our law enforcement partners bring to safeguarding our communities from the distribution of controlled substances and the illicit money laundering schemes that fund such criminal activities,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “There are no corners where criminal activities or their proceeds can elude our reach, as demonstrated by the successful prosecution and sentencing of individuals like Michael Robert Osborn and his co-defendants. Our collaborative efforts ensure that justice is served, protecting the well-being of our communities.”
U.S. Attorney Hurwit credited the cooperative efforts of Homeland Security Investigations, IRS – Criminal Investigations, the U.S. Postal Inspection Service, and the and the Idaho Department of Correction – Special Investigations Unit, which led to the charges. The case was prosecuted by Assistant U.S. Attorneys Christopher Atwood and Erin Blackadar.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Armed Narcotics Trafficker Is Sentenced to 18.5 YearsRead the Press Release
CHARLOTTE, N.C. – Keith Cato Hammie, 55, of Charlotte, was sentenced today to 223 months in prison followed by four years of supervised release for distribution of methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to filed court documents and information presented at the sentencing hearing, Hammie sold increasing amounts of methamphetamine to an undercover detective on four occasions from November 2021 through February 2022. Court records show that Hammie generally drove directly from his Charlotte residence to the agreed upon locations, where the controlled drug purchases took place, and then returned directly to his residence afterward. On February 10, 2022, investigators executed a search warrant at Hammie’s residence. Investigators seized from the residence nearly two kilograms of highly pure methamphetamine, a drug ledger, and four firearms, including three loaded pistols and an assault-style shotgun found unloaded but adjacent to ammunition. Inside Hammie’s vehicle, investigators found a key to a local storage unit. After obtaining a search warrant for the storage unit, investigators found additional trafficking amounts of cocaine and marijuana inside the storage unit.
During today’s sentencing hearing, the Court emphasized Hammie’s extensive criminal history, including several state convictions for armed robbery and a federal conviction for armed bank robbery. In sentencing Hammie, the Court highlighted that the defendant committed the armed drug trafficking in this case after serving nearly 20 years in federal prison on the federal armed bank robbery conviction. The Court also noted that Hammie used his residence – where small children lived – as a base for conducting his drug trafficking activities.
Hammie pleaded guilty to distribution of methamphetamine on August 9, 2023. He is currently 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 thanked the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Charlotte-Mecklenburg Police Department for their investigative efforts.
Assistant U.S. Attorney Taylor G. Stout of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Arizona Woman Is Sentenced to Prison for Defrauding Medicaid Programs in Two StatesRead the Press Release
CHARLOTTE, N.C. – An Arizona woman was sentenced to prison today for participating in a scheme that defrauded the Medicaid programs in North Carolina and Georgia of more than $3.7 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell sentenced Bree’Anna Harris, 32, of Phoenix, Arizona, to 36 months in prison and two years of supervised release and ordered the defendant to pay $3,971,649 in restitution.
U.S. Attorney King is joined in making today’s announcement by Ryan K. Buchanan, U.S. Attorney for the Northern District of Georgia, Robert M. DeWitt, Special Agent in Charge of the FBI, Charlotte Division, Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS- CI), Charlotte Field Office, and Attorney General Josh Stein, who oversees the North Carolina Medicaid Investigations Division (MID).
The criminal charge filed against Harris in federal court in the Northern District of Georgia was transferred to the U.S. District Court for the Western District of North Carolina in November 2022. In December 2022, Harris pleaded guilty to conspiracy to commit Medicaid fraud in connection with both federal prosecutions. Harris also pleaded guilty to a money laundering conspiracy offense in the Western District of North Carolina.
According to filed court documents and today’s sentencing hearing, Harris and her co-conspirators, Markuetric Stringfellow and Glenn Pair, operated an after-school and youth mentoring program known as Do-It-4-The Hood Corporation (D4H). From January 2016 through November 2018, Harris, Pair, and Stringfellow paid individuals to recruit at-risk youths, in particular children who were Medicaid eligible in North Carolina, for D4H’s programs. Once enrolled, children were required to submit urine specimens for drug testing. Harris, Pair and Stringfellow conspired with certain laboratories - including United Diagnostics Laboratory (UDL) in Greensboro, North Carolina, and Aspirar Labs in Cary, North Carolina - to perform the drug testing of the enrolled children’s urine specimens and received kickbacks once the laboratories were reimbursed by the North Carolina Medicaid. Harris incorporated BPollini Consulting, LLC to receive and conceal fraudulent kickback payments and distribute them to her coconspirators. In 2017, Harris and Pair moved to Georgia, where they and Stringfellow expanded the fraudulent scheme to defraud Georgia’s Medicaid program.
Harris is currently released on bond. She will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility.
Glenn Pair was sentenced in July 2022 to 70 months in prison, and Markuetric Stringfellow was sentenced in February 2021 to 78 months in prison, and both defendants were ordered to pay more than $5 million in restitution. Donald Booker, the owner of UDL, was convicted after a jury trial in January 2023 and was sentenced to 200 months in prison. Booker was also ordered to pay more than $11 million in restitution. Aspirar Labs and its owner, Pick Chay, agreed to pay $1,951,000 to resolve allegations that they violated the False Claims Act by knowingly billing North Carolina Medicaid for urine drug tests that were not medically necessary and tainted by illegal kickbacks.
In making today’s announcement U.S. Attorney King thanked the U.S. Attorney’s Office in the Northern District of Georgia, the FBI in North Carolina, South Carolina, and Georgia, and the Medicaid Investigations Division in the three states for their investigative efforts and coordination throughout case.
Assistant U.S. Attorneys Michael E. Savage and Graham Billings of the U.S. Attorney’s Office in Charlotte, and Assistant U.S. Attorney Alex Sistla of the U.S. Attorney’s Office in Atlanta prosecuted the case, assisted by Special Assistant U.S. Attorney Jermaine Sellers formerly with the Medicaid Fraud Investigation Division of the North Carolina Attorney General’s Office.
Arizona Man Charged with Defrauding Local Physician Out of $207,000Read the Press Release
PHOENIX, Ariz. – A federal grand jury in Phoenix returned an indictment against Jeremie Sowerby, 45, of Fountain Hills, Arizona, on November 14, 2023, for wire fraud and transactional money laundering.
The indictment alleges that Sowerby scammed a victim-investor, an Arizona physician, out of $207,000 under the guise of a purported risk-free investment opportunity called “Justice Capital.” Sowerby convinced the victim to invest in what he claimed to be an exclusive hedge fund investment opportunity that supposedly used a “bot” algorithm to invest in a product tied to the stock market. Sowerby claimed that the investment and its guaranteed rates of return could be withdrawn in cash or Bitcoin at any time. Instead, however, Sowerby stole the money and used it for himself, including for an $83,000 cashier’s check made out to an entity he owns and controls.
Sowerby was previously charged in a separate case, along with co-defendant Luis Ortega, in a 55-count indictment alleging that Sowerby and Ortega scammed hundreds of victims out of millions of dollars in a cryptocurrency investment scheme under the guise of three entities: Now Mining, VIP Mining, and Millennium Technologies. That case remains pending.
A conviction for wire fraud carries a maximum penalty of 20 years’ imprisonment and a fine of $250,000, or both. A conviction for transactional money laundering carries a maximum penalty of 10 years’ imprisonment and a fine of up to $250,000, or both.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Federal Bureau of Investigation and IRS-Criminal Investigation have conducted the investigation in this case. Further investigation remains ongoing. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
The FBI and IRS-CI believe that additional victims of Sowerby’s investment fraud schemes remain unidentified. Anyone who believes they were defrauded by the defendant in this case should contact the Victim Witness Section at the U.S. Attorney’s Office for the District of Arizona at [email protected] or fill out the questionnaire at this link: https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/seeking-potential-victims-of-jeremie-sowerby-luis-ortega-fraud-schemes.
CASE NUMBER: CR-23-01586-PHX-SMB
RELEASE NUMBER: 2023-194_Sowerby# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Allen Man Sentenced for Involuntary ManslaughterRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced an Allen, South Dakota, man convicted of Involuntary Manslaughter. The sentencing took place on November 29, 2023.
Llewellyn John Running Hawk, age 48, was sentenced to two years and nine months in federal prison, followed by three years of supervised release, and ordered to pay $4,000 in restitution, and a $100 special assessment to the Federal Crime Victims Fund. Additional restitution may apply.
Running Hawk was indicted by a federal grand jury in January of 2023. He pleaded guilty on September 6, 2023.
The conviction stems from an incident that occurred on November 19, 2022, in Todd County, South Dakota. On that date, Running Hawk had been consuming alcoholic beverages, and was driving a motor vehicle eastbound on US Highway 18. The victim, an adult female, was riding in the front passenger seat of the vehicle. As Running Hawk approached a curve at a high rate of speed, he lost control of the vehicle and left the roadway. The vehicle rolled multiple times, causing the victim to be ejected from the vehicle. The victim died as a result of injuries suffered in the wreck.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the FBI. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Running Hawk was ordered to self-surrender to the custody of the Bureau of Prisons at a date to be set later.
4 December 2023
Westchester Felon Charged with Distributing Fentanyl That Killed A Man and Illegally Possessing AmmunitionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Frank A. Tarentino III, the Special Agent in Charge of the New York Field Office of the Drug Enforcement Administration (“DEA”), and Robert Noble, Chief of the Yorktown Police Department, announced that PERRY FREEMAN was charged today with distributing fentanyl that resulted in the death of a victim and illegally possessing ammunition. FREEMAN was arrested and presented today before U.S. Magistrate Judge Andrew E. Krause.
U.S. Attorney Damian Williams said: “As alleged, Perry Freeman sold fentanyl to a victim who died a horrific death shortly after taking the drugs. Investigators concluded that the victim parked his car and, with his foot on the gas, passed out from ingesting lethal levels of the drugs allegedly provided by Freeman. The engine sparked a fire that engulfed the vehicle and burned the victim’s body. We also allege that Freeman regularly sold fentanyl to a confidential informant and warned the informant to be careful with the drugs, indicating he knew how unsafe his product was. This Office will not rest until those who peddle this poison have been brought to justice.”
DEA Special Agent in Charge Frank A. Tarentino III said: “Data doesn’t lie, and law enforcement continues to track fatal fentanyl poisonings to the person responsible. This arrest is an example of DEA and our law enforcement partners’ efforts to thwart more drug poisonings and bring to justice those responsible for causing the most harm to our communities. I commend the men and women of the Yorktown Police Department, the DEA’s Westchester Resident Office’s Tactical Diversion Squad, and the U.S. Attorney’s Office for the Southern District of New York for their tenacious work on this investigation.”
Yorktown Police Chief Robert Noble said: “It is good for our community to see their local police department request assistance from federal agencies like the DEA and the U.S. Attorney’s Office for the Southern District of New York and have it culminate with the arrest of an alleged dangerous drug dealer. I commend the determination, intelligence, and teamwork demonstrated throughout this investigation. Yorktown is a law and order community. We’ll continue to work hard, share information, and work shoulder to shoulder on our streets with all of our partners in law enforcement to keep it that way.”
As alleged in the Complaint:[1]
On or about November 10, 2021, FREEMAN sold fentanyl to his victim. Shortly thereafter, the police responded to a report of a burning car in a parking lot in Mohegan Lake, New York, approximately a three-minute drive from FREEMAN’s apartment building. They found a Ford Focus on fire; the victim was in the driver’s seat with his foot on the accelerator pedal. After the fire department put the fire out, the victim, declared dead, was pulled out. Investigators determined that the car caught on fire after overheating while the accelerator pedal was depressed for an excessive period and the car was in park, i.e., while the victim was passed out in the driver’s seat with his foot on the pedal.
The Westchester County Medical Examiner’s Office, which is part of the Westchester Department of Laboratories and Research, performed an autopsy on the victim. According to a report prepared by the Department of Laboratories and Research, as well as a conversation between a law enforcement officer and a member of the Medical Examiner’s office, the victim had lethal levels of both fentanyl and norfentanyl, a metabolite of fentanyl, in his blood and there was some darkening of his lungs, which indicated smoke inhalation before his death. Moreover, the victim’s cause of death was certified as both acute fentanyl intoxication and accident.
* * *
FREEMAN, 37, of Mohegan Lake, New York, is charged with one count of fentanyl distribution resulting in death, which carries a minimum sentence of 20 years in prison and a maximum sentence of life in prison, and one count of illegally possessing ammunition as a convicted felon, which carries a maximum sentence of 15 years in prison.
The minimum and maximum potential sentences in this case 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 work of the DEA and the Yorktown Police Department.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Michael D. Maimin and Ben Arad are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.
Vacaville Parolee Sentenced to 10 Years in Prison for Being a Felon in Possession of FirearmsRead the Press Release
SACRAMENTO, Calif. — Eric Terrell Christian, 32, of Vacaville, was sentenced today to 10 years in prison for being a felon in possession of firearms, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on July 21, 2022, Christian failed to yield during a traffic stop and sped away from the officer. Moments later, a witness called 911 and reported seeing a firearm in a parking lot that Christian had just driven through. On Aug. 11, 2022, Christian fled again when officers attempted to stop him for a related parole violation. He fled on foot from his car but was quickly apprehended. In his vehicle, officers located a Glock handgun with a round in the chamber and another 17 rounds in an inserted high-capacity magazine. Christian was also found to be in possession of a Palmetto Arms AR-style pistol with a round in the chamber and 36 additional rounds in an inserted, high-capacity magazine. Christian is not allowed to possess firearms because he has previously been convicted of three felony offenses, including two convictions for assault with a deadly weapon. Christian was on parole from his second assault conviction when he committed the current offense.
This case was the product of an investigation by the Vacaville Police Department, the California Department of Corrections and Rehabilitation – Division of Adult Parole Operations, the Solano County District Attorney’s Office, the FBI’s Solano County Violent Crimes Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Adrian T. Kinsella prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice 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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
U.S. Attorney’s Office Announces Agreement to Ensure Access to Medications for Opioid Use Disorder at Big Sandy Regional Detention CenterRead the Press Release
LEXINGTON, Ky. – United States Attorney Carlton S. Shier, IV, announced Monday that the federal government has reached an agreement with the Big Sandy Regional Jail Authority, which operates the Big Sandy Regional Detention Center (BSRDC), to ensure that people with opioid use disorder (OUD) receive medically appropriate treatment with any FDA-approved medication for OUD, as required by the Americans with Disabilities Act (ADA).
The ADA prohibits state and local governments from discriminating against individuals with disabilities and protects people in recovery from OUD, including individuals who are taking OUD medication at the direction of a medical provider.
“Eastern Kentucky has long been on the front lines of the opioid epidemic and our office remains committed to a comprehensive approach to fighting this public health crisis, including enforcement of the ADA’s requirements safeguarding treatment,” said U.S. Attorney Shier. “Considering the impact this crisis has had on our area, treatment must be a critical tool in our efforts to fight back. Access to medications that treat opioid use disorder saves lives, and we are pleased we were able to reach a settlement with the Big Sandy Regional Detention Center to better ensure access to this important treatment for the people in its custody.”
The settlement agreement requires BSRDC to revise its policies to provide access to all three forms of FDA-approved medications to people with OUD and ensure that decisions about treatment are based on an individualized determination by qualified medical personnel. Specifically, BSRDC will medically evaluate all individuals for OUD at the start of their incarceration. It will ensure that individuals who were receiving OUD medication from a licensed treatment provider before their incarceration are continued on that medication. The facility will also offer all individuals with OUD booked into the jail the option to receive treatment with any FDA-approved medically appropriate OUD medication, even if they were not being treated with that medication before their incarceration.
BSRDC will not change or discontinue an individual’s use of a particular OUD medication unless doing so is based on an individualized determination by a qualified medical provider. The jail also will not use incentives, rewards, or punishments to encourage or discourage individuals at the facility from receiving any particular OUD medication.
This matter was handled by Assistant U.S. Attorney Carrie Pond as part of an ongoing effort by the Justice Department to combat the opioid epidemic, including by eliminating discriminatory barriers to treatment for OUD. For more information about the Justice Department’s work to address discrimination against individuals with opioid use disorder, please visit www.ada.gov/topics/opioid-use-disorder/. For more information on the Office’s civil rights efforts, please visit https://www.justice.gov/usao-edky/civil-rights. More information about the ADA is available at the Justice Department’s toll-free ADA Information line at (800) 514 0301 or (800) 514 0383 (TTY) and on the ADA website at www.ada.gov.
ADA complaints may be submitted to the U.S. Attorney’s Office by emailing [email protected] or by contacting the Office’s Civil Rights Hotline at (859) 685-4880.
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U.S. Attorneys Office for District of New Jersey and Justice Department’s Civil Rights Division File Statement of Interest in Religious Land Use Case Involving Orthodox Jewish CongregationRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Rights Division and filed a statement of interest today in the U.S. District Court for the District of New Jersey explaining that an Orthodox Jewish congregation’s claims under the Religious Land Use and Institutionalized Persons Act (RLUIPA) are ready to be decided in federal court.
U.S. Attorney Philip R. Sellinger“The U.S. Attorney’s Office is committed to ensuring that all religious communities in our District have the ability to worship freely and without discrimination. We will continue our work to enforce RLUIPA, and to ensure that local boards apply the law fairly and correctly so that communities of faith may exercise their fundamental rights and that their land use applications are not unlawfully denied on the basis of their religion or in a manner that unlawfully burdens the free exercise of religion.”
“RLUIPA is designed to ensure that religious groups of all faiths do not face unjust barriers when seeking to establish places to worship,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Local land use boards cannot unfairly or discriminatorily deny a religious group’s application to use land for religious purposes. When local officials use the guise of zoning restrictions to block or restrict religious groups, this not only contravenes our nation’s commitment to religious freedom, it also violates federal law.”
The statement of interest was filed in Chai Center for Living Judaism v. Township of Millburn, a lawsuit alleging that the denial of an Orthodox Jewish congregation’s application to build a synagogue imposed a substantial burden on the congregation’s religious exercise, discriminated against the congregation based on its religion, unreasonably limited its religious assembly, and treated it worse than comparable secular uses. The lawsuit also alleges that certain parts of the township’s land-use regulations, including its requirement that houses of worship be located on lots at least three acres in size, violate RLUIPA. The township filed a motion, arguing that the RLUIPA claims should be dismissed based on a state-law standard used by New Jersey state courts to review zoning decisions. The motion also argues that the RLUIPA claims are not ready to be heard in federal court because the zoning denial was based on procedural grounds.
The statement of interest explains that the congregation’s claims must be evaluated based on the statutory elements laid out in RLUIPA, and that state-law standards of review do not apply to RLUIPA claims. The statement of interest also argues that the congregation’s RLUIPA claims are ready to be adjudicated by the federal court because the township reached a final decision on the zoning application, which inflicted an injury on plaintiffs by preventing them from using their land for their religious needs.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
As part of this initiative, the U.S. Attorney’s Office and the Justice Department’s Civil Rights Division have obtained relief under RLUIPA to combat antisemitism, including in Woodcliff Lake and Toms River, New Jersey. The U.S. Attorney’s Office and Civil Rights Division have also enforced RLUIPA to combat other forms of religious discrimination, including securing a consent decree to allow the Islamic Society of Basking Ridge build a mosque in Bernards Township, New Jersey, as well as filing Statements of Interest on behalf of legal positions put forward by a Muslim congregation in Vineland, New Jersey, and a Native American tribe, in Mahwah, New Jersey. Additionally, the Department recently hosted an outreach forum with religious leaders at Seton Hall Law School in Newark, New Jersey, on combating religious discrimination under RLUIPA, and plans to hold additional outreach events in the coming months.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office Civil Rights Division at (855) 281-3339 or the Civil Rights Division’s Housing and Civil Enforcement Section at (833) 591-0291 or may submit a complaint through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, can be found at www.justice.gov/crt/about/hce/rluipaexplain.php.
The government is represented by Assistant U.S. Attorney Susan Millenky of the U.S. Attorney’s Civil Rights Division and Trial Attorneys from the Justice Department’s Civil Rights Division, Housing and Civil Enforcement Section.
millburn.statementofinterest.pdfTwo Men Sentenced to Prison for Shooting Taxi Driver During RobberyRead the Press Release
CAMDEN, N.J. – Two New Jersey men have been sentenced to prison for their roles in shooting a taxi driver during a late-night robbery, U.S. Attorney Philip R. Sellinger announced today.
Walter Williams-Lang, 22, of Elizabeth, New Jersey, was sentenced today to 87 months in prison and Naeem Jackson, 24, of East Orange, New Jersey, was sentenced on Nov. 29, 2023, to 103 months in prison. Both defendants previously pleaded guilty to informations charging them with one count each of attempted Hobbs Act robbery, conspiracy to use and possess a firearm during and in relation to a crime of violence and possession of a firearm by a convicted felon. Jackson also pleaded guilty to one count each of Hobbs Act robbery and carjacking. Both defendants were sentenced by U.S. District Judge Robert Kugler in Camden federal court.
According to documents filed in this case and statements made in court:
The defendants both admitted that on May 14, 2022, they brandished a loaded firearm to demand a taxi driver’s fares, and then proceeded to shoot the driver. Jackson also admitted that on May 5, 2022, he brandished a loaded firearm, demanded a taxi driver’s fares, cellphone, and wallet, and then stole the the driver’s vehicle.
In addition to the prison terms, Judge Kugler sentenced each of the defendants to three months of supervised release.
U.S. Attorney Sellinger credited the members of the Elizabeth Police Department, under the direction of Director Earl J. Graves and Police Chief Giacommo Sacca; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Bryan Miller, Newark Field Division, with the investigation leading to the sentencings.
The government is represented by Assistant U.S. Attorney Barry O’Connell of the OCDETF Unit in Newark.
Two Men Charged in Murder-for-Hire Plot That Resulted in Fatal Shooting in ChicagoRead the Press Release
CHICAGO — Two men have been indicted in federal court in an alleged murder-for-hire conspiracy that resulted in a fatal shooting in Chicago’s Roseland neighborhood.
ANTHONY MONTGOMERY-WILSON, 24, and PRESTON POWELL, 23, both of Chicago, are charged with conspiracy to use an interstate facility in the commission of a murder for hire, according to an indictment unsealed Wednesday in U.S. District Court in Chicago. The pair is also charged with an individual murder-for-hire count, while Montgomery-Wilson also faces a firearm charge.
According to the indictment and a search warrant filed in the case, Montgomery-Wilson and Powell conspired with each other and others to murder Stephon Mack in exchange for money. On the afternoon of Jan. 27, 2022, Mack, 24, was fatally wounded when two gunmen emerged from a vehicle and fired several shots as Mack exited the Youth Peace Center of Roseland in the 400 block of West 111th Street. A security guard from the Center was also wounded in the shooting but survived.
Montgomery-Wilson is in law enforcement custody. He pleaded not guilty Wednesday during his arraignment before Chief U.S. Magistrate Judge Young B. Kim in Chicago. A status hearing for Montgomery-Wilson was scheduled for Jan. 16, 2024.
Powell is considered a fugitive and a warrant has been issued for his arrest.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the FBI Chicago Field Office, and Larry Snelling, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Illinois Department of Corrections Northern Region Intelligence Unit. The government is represented by Assistant U.S. Attorneys Jared C. Jodrey, Jason A. Julien, and Brian F. Williamson.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The murder-for-hire charges each carry a mandatory sentence of life in federal prison, while a sentence of death is also possible. The firearm charge against Montgomery-Wilson is punishable by up to ten years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Montgomery-Wilson et al indictmentTulsan Sentenced for Second Degree MurderRead the Press Release
U.S. District Judge Gregory K. Frizzell sentenced Dillon Charles Wilson, 27, citizen of Muscogee (Creek) Nation, to 262 months in prison followed by 5 years of supervised release for second degree murder.
“Dillon Wilson made a fatal decision that took the life of another man,” said U.S. Attorney Clint Johnson. “Jamitric Landrum’s family and loved ones are forever altered by this decision. My condolences go out to Mr. Landrum’s loved ones.”
According to court documents, on January 19, 2022, Jamitric Landrum and his girlfriend were at home when someone attempted to force the door open. They opened the door and saw a dark figure going around the corner. They left the apartment and got into their vehicle to look for the suspect. Jamitric was driving and pulled into a parking lot. He got into a brief verbal interaction with Dillon Charles Wilson. Jamitric’s girlfriend saw that Wilson was armed and told Jamitric to drive away. As they drove away, Wilson deliberately and intentionally began shooting at the vehicle striking Jamitric in the back. Law enforcement responded to the shooting. Jamitric was transported to the hospital where he later died from the gunshot wound.
Wilson has a prior criminal conviction for conduct related to robbery with a firearm as well as eluding a police officer. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility.
The FBI and Tulsa Police Department investigated the case. Assistant U.S. Attorney John Brasher prosecuted the case.
This case was 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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s DOJ Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Three Military Contractors Sentenced in Procurement Fraud SchemeRead the Press Release
A federal judge in the Northern District of Georgia has sentenced three military contractors for their roles in a multi-year procurement fraud scheme related to more than $7 million in federal government contracts.
Former Envistacom LLC president and co-founder Alan Carson was sentenced on Nov. 30 to six months in prison and two years of supervised release and was ordered to pay a criminal fine of $250,000. The owner of another company, Philip Flores, was sentenced on Oct 30 to four months in prison and two years of supervised release and was ordered to pay a criminal fine of $50,000; and former Envistacom vice president Valerie Hayes was sentenced on Dec. 1 to 12 months of home confinement with three years of probation, and ordered to complete 100 hours of community service.
A federal jury previously convicted the three individuals of conspiring to defraud the United States and committing major fraud. According to court documents and evidence presented at trial, the three military contractors prepared and procured sham quotes and fraudulently prepared procurement documents.
“When contractors defraud the federal government, they undermine the integrity of the federal contracting system,” said Deputy Assistant Attorney General Manish Kumar of the Justice Department’s Antitrust Division. “These sentencings send a clear message that the Antitrust Division and its law enforcement partners will not tolerate procurement fraud.”
“The defendants served as federal contractors with a duty to lawfully act on behalf of the government,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “Instead, these executives chose to defraud the United States and are now being held accountable for their actions by serving prison sentences and paying substantial fines.”
“These sentencings should serve as a deterrent to any company or individual seeking to subvert the government procurement system to obtain contracts,” said Special Agent in Charge Darrin K. Jones of the Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS, along with our law enforcement partners, remain committed to protecting the integrity of the DoD contracting process that supports our nation’s warfighters.”
“These sentencings should serve as a stark reminder that our agents, and those of our partner law enforcement agencies, are relentless in their pursuit of those who choose to defraud the government,” said Special Agent in Charge Andrew Johnson of the Department of the Army Criminal Investigation Division’s (Army CID) Fraud Field Office.
The Justice Department’s Antitrust Division’s Washington Criminal II Section, the U.S. Attorney’s Office for the Northern District of Georgia, Army CID and DCIS investigated the case.
Trial Attorney Brittany E. McClure of the Justice Department’s Antitrust Division and Assistant U.S. Attorney Christopher J. Huber for the Northern District of Georgia prosecuted the case.
Anyone with information about this investigation or other procurement fraud schemes should notify the Procurement Collusion Strike Force (PCSF) at www.justice.gov/atr/webform/pcsf-citizen-complaint. The Justice Department created the PCSF in November 2019. It is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. For more information, visit www.justice.gov/procurement-collusion-strike-force.
Three Individuals Indicted and Arrested for Conspiracy to Distribute Fentanyl and Cocaine and for Selling MachinegunsRead the Press Release
SAN JUAN, Puerto Rico – On November 27, 2023, a federal grand jury in the District of Puerto Rico returned an 18-count indictment charging three individuals with conspiracy to distribute and to possess with intent to distribute fentanyl and cocaine, distribution of fentanyl and cocaine, possession of machineguns in furtherance of drug trafficking activities, and other firearms-related offenses.
According to court documents, Miguel A. Figueroa-Rodríguez, a/k/a “Tote,” José A. Torres-Narvaez, a/k/a “El Menor,” and Taishia L. Figueroa-Cruz, beginning on a date unknown, but no later than August 22, 2023, conspired with each other and with others to knowingly distribute and possess with intent to distribute fentanyl and cocaine, possession of firearms in furtherance of drug trafficking offenses, as well as engaging in the business of dealing in firearms without a license. Defendant Torres-Narvaez is also charged with being a felon in possession of firearms.
“Disrupting drug trafficking networks is vitally important to our ongoing effort to combat the fentanyl crisis in America and save lives,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “Our office will prosecute those who traffic in fentanyl and machineguns to the fullest extent of the law.”
“The opioid crisis is taking the lives of Americans every single day and our mission here in Puerto Rico is to protect our people from this national tragedy,” said Joseph González, Special Agent in Charge of the FBI San Juan Field Office. “The subjects in this case made it their business to deal kilos of pure fentanyl, so we had to act quickly. Rest assured our work here is only just beginning.”
During the conspiracy the charged individuals engaged in the following series of transactions:
- On August 25, 2023, they sold to the FBI approximately half a kilogram of fentanyl and a fully automatic firearm. (Below: photograph of fully automatic firearm and approximately half a kilogram of fentanyl seized in August 2023).
- On September 22 and September 26, 2023, they sold to the FBI approximately one kilogram of cocaine and a fully automatic firearm. (Below: photograph of message offering to sell rifle; photographs of approximately 1 kilogram of cocaine, and a fully automatic firearm seized in September 2023).
- On October 16, 2023, they sold to the FBI approximately one eighth of a kilogram of a substance that tested positive to fentanyl, a Glock firearm, and an AR-Type Privately Made Firearm (“PMF”). (Below: photographs of seized Glock firearm, an AR-Type Privately Made Firearm (“PMF”), and approximately 1/8th of a kilogram of a substance that tested positive to fentanyl).
- All three individuals were arrested on December 4, 2023. At the time of their arrest, they were in possession of approximately half of a kilogram of a substance that is presumed to be cocaine.
The defendants are scheduled for their initial court appearances today before U.S. Magistrate Judge Marshal D. Morgan of the U.S. District Court for the District of Puerto Rico. If convicted for the conspiracy drug trafficking charges the defendants are facing a mandatory minimum of 10 years of imprisonment with a statutory maximum penalty of life in prison. The firearms offenses in furtherance of the drug trafficking crimes carry a consecutive penalty of thirty years (machineguns) or five years (firearms) up to life imprisonment. The felon-in-possession of firearms carry a maximum sentence of ten years’ imprisonment and the engaging in the business of dealing in firearms carry a maximum sentence of five years’ imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshal Service are investigating the case.
Assistant United States Attorney (AUSA) and Chief of the Transnational Organized Crime Section Max J. Pérez-Bouret; Deputy Chief of the Transnational Organized Crime Section, AUSA María L. Montañez-Concepción; and AUSA Antonio J. López-Rivera are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-coordinated, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Tampa Man Charged in Connection with Armed RobberyRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of a criminal complaint charging Brandale Swails (29, Tampa) with Hobbs Act Robbery. If convicted, Swails faces a maximum penalty of 20 years in federal prison.
According to the complaint, on October 15, 2023, Swails entered a gas station, pointed a firearm at the victim’s head, and demanded the victim open the cash register. The victim immediately hid behind the counter. Swails jumped over the counter towards the victim while continuing to point the firearm at him. Swails told the victim he would shoot him if the victim did not open the register. Swails then took the cash and fled. Hours later, law enforcement officers found Swails driving a vehicle. When officers attempted to pull him over, Swails fled. On October 31, 2023, Swails was arrested inside a home, hiding in a closet. Two loaded firearms were found in his possession.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Hillsborough County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Diego F. Novaes.
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 out 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 first place, setting focused and strategic enforcement priorities, and measuring the results.
Swiss Private Bank, Banque Pictet, Admits to Conspiring with U.S. Taxpayers to Hide Assets and Income in Offshore AccountsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Stuart M. Goldberg, the Acting Deputy Assistant Attorney General for Criminal Matters of the Justice Department’s Tax Division, and Jim Lee, the Chief of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the filing of criminal charges against Swiss Bank, BANQUE PICTET ET CIE SA (“BANQUE PICTET” or the “Bank”) for conspiring with U.S. taxpayers and others to hide more than $5.6 billion in 1,637 secret bank accounts in Switzerland and elsewhere and to conceal the income generated in those accounts from the IRS.
As part of today’s resolution, BANQUE PICTET entered into a Deferred Prosecution Agreement (“DPA”) and agreed to pay approximately $122.9 million to the U.S. Treasury. Today’s resolution is one of a series of cases brought by the Department of Justice in connection with its investigations since 2008 into facilitation of offshore U.S. tax evasion by foreign banks. The case has been assigned to U.S. District Judge Edgardo Ramos.
U.S. Attorney Damian Williams said: “As it has admitted today, Banque Pictet knowingly conspired to conceal from the IRS the income generated by accounts which held more than $5.6 billion. Thanks to the hard work of the career prosecutors of this Office and our law enforcement partners, Banque Pictet has agreed to pay more than $122.9 million and will continue to cooperate with the Department of Justice. Rooting out financial malfeasance remains a priority for this Office, and we encourage companies and financial institutions to come to us to report wrongdoing before we come to you.”
Acting Deputy Assistant Attorney General Stuart M. Goldberg said: “Today, Banque Pictet et Cie admitted to actively helping U.S. taxpayers use coded accounts, foreign trusts and entities, nominee beneficiaries and other deceits to conceal their income and assets abroad. For this criminal conduct the bank will be paying nearly $122.9 million in restitution, disgorgement of fees and a financial penalty, and is required to fully cooperate with investigations relating to these secret accounts.”
IRS-CI Chief Jim Lee said: “This case should provide a clear message to others who try to hide their assets and income offshore. Our special agents are experts in following the money, and they are the best at uncovering schemes that try to defraud the U.S. tax system. Offshore tax evasion is a priority for IRS Criminal Investigation, and today’s deferred prosecution agreement with Bank Pictet collects more than $120 million owed to the U.S. government.”
According to documents filed today in Manhattan federal court:
The Pictet Group was founded in 1805 and is a privately held Swiss financial institution headquartered in Geneva that has historically operated as a general partnership and, since 2014, as a corporate partnership. A limited number of managing partners, generally eight or fewer, collectively known as “The Salon,” own and manage the Pictet Group.
As of December 31, 2014, the Pictet Group had approximately 3,800 employees in various locations, primarily in Switzerland, but also in Luxembourg, Hong Kong, Singapore, and the Bahamas. The Pictet Group operates two main business divisions: institutional asset management and private banking for individuals.
From 2008 to 2014, the Pictet Group’s private banking division was operated by the group’s following banking entities: the Swiss bank (BANQUE PICTET & CIE SA); Pictet & Cie (Europe) SA, headquartered in Luxembourg; Bank Pictet & Cie (Asia) Ltd. in Singapore; and the Bahamian bank, Pictet Bank & Trust Ltd. The Pictet Group provided offshore corporation and trust formation and administration services to certain U.S. taxpayers, first through the Estate Planning and Trust Services unit and later through a wholly owned subsidiary called Rhone Trust and Fiduciary Services SA (Rhone).
As of December 31, 2014, the Pictet Group’s private banking division managed or held custody of approximately $165 billion in assets under management (“AUM”). From 2008 to 2014, the Pictet Group served approximately 3,736 private accounts that had U.S. taxpayers as beneficial owners, whose aggregate maximum AUM, including declared assets, was approximately $20 billion.
Though the Pictet Group adopted early measures to confirm that U.S. clients complied with U.S. law, from 2008 through 2014, the Pictet Group assisted certain U.S. taxpayer-clients with Pictet Group accounts in evading their U.S. tax obligations and otherwise hiding undeclared accounts[1] from the IRS.
In total, from 2008 through 2014, the Pictet Group held 1,637 U.S. Penalty Accounts,[2] with aggregate maximum AUM of approximately $5.6 billion in January 2008, on behalf of U.S. taxpayer-clients, who collectively evaded approximately $50.6 million in U.S. taxes.
The Pictet Group assisted U.S. taxpayer-clients with evading their U.S. taxes by opening and maintaining undeclared accounts for U.S. taxpayer-clients at the Pictet Group, either directly or through external asset managers. The Pictet Group also maintained accounts of certain U.S. taxpayer-clients within the Pictet Group in a manner that allowed the U.S. taxpayer-clients to further conceal their undeclared accounts from the IRS. The Pictet Group and certain of its employees knew or should have known that some of their U.S. taxpayer-clients were evading U.S. taxes. In every instance, managing partners approved the opening of new private client relationships and were informed of the closing of U.S. taxpayer-clients’ accounts, which included some undeclared accounts.
As further detailed below, the Pictet Group used a variety of means to assist U.S. taxpayer-clients in concealing their undeclared accounts, including by:
- Forming or administering offshore entities in whose name the Pictet Group opened and maintained accounts, some of which were undeclared, for U.S. taxpayer-clients;
- Opening and maintaining undeclared accounts in the names of offshore entities formed by others for U.S. taxpayer-clients;
- Opening and maintaining Private Placement Life Insurance policy accounts, also called insurance wrappers, held in the name of insurance companies but beneficially owned by U.S. taxpayers and improperly managed or funded through undeclared accounts at the Pictet Group;
- Transferring funds from undeclared U.S. taxpayer-client accounts to accounts nominally held by non-U.S. clients but still controlled by U.S. taxpayer-clients via fictitious donations, thus assisting U.S. taxpayer-clients in continuing to maintain undeclared funds offshore; and
- Providing traditional Swiss banking products such as hold-mail account services, where account-related mail is held at the bank rather than sent to the client, and coded or numbered accounts; and
- Accepting IRS Forms W-8BEN[3] or Pictet Group’s substitute forms that the group knew or should have known falsely stated or implied under penalty of perjury that offshore entities beneficially owned the assets in the undeclared accounts.
The $122.9 million BANQUE PICTET agreed to pay to the U.S. Treasury pursuant to the DPA consists of (i) $52,164,201 to the United States, which represents gross fees (not profits) that the bank earned on its undeclared accounts between 2008 and 2014; (ii) $31,844,192 in restitution to the IRS, which represents the unpaid taxes resulting from BANQUE PICTET’s participation in the conspiracy; and (iii) a $38,950,998 penalty. The penalty considers the nature and seriousness of the Pictet Group's conduct, the Bank’s extensive internal investigation, the Bank’s substantial provision of documents to the Justice Department, and the Bank’s facilitation of witness interviews. The Bank further implemented remedial measures to protect against the use of its services for future tax evasion.
In addition to the payment, BANQUE PICTET also agrees under the DPA to accept responsibility for its conduct by stipulating to the accuracy of an extensive Statements of Facts. BANQUE PICTET further agreed to refrain from all future criminal conduct, implement remedial measures and cooperate fully with further investigations into hidden bank accounts. Specifically, the Bank is required to cooperate fully with ongoing investigations and affirmatively disclose any information it may later uncover regarding U.S.-related accounts. The Bank is also required to disclose information consistent with the Justice Department’s Swiss Bank Program relating to accounts closed between January 1, 2008, and December 31, 2022. The agreements provide no protection from criminal or civil prosecution for any individuals.
If BANQUE PICTET continues to comply with its agreement, the United States has agreed to defer prosecution of BANQUE PICTET for a period of three years, after which time the United States will seek to dismiss the charge against BANQUE PICTET.
* * *
Mr. Williams praised the outstanding investigative work of the special agents of IRS-CI.
The prosecution of this case is being handled by the Justice Department’s Tax Division and the Complex Frauds and Cybercrime Unit of the U.S. Attorney’s Office for the Southern District of New York. Senior Litigation Counsel Nanette Davis of the Tax Division and Assistant U.S. Attorneys Daniel G. Nessim and Olga Zverovich are in charge of the prosecution.
[1] An “undeclared account” was a financial account beneficially owned by an individual subject to U.S. tax obligations and maintained in a foreign country that had not been reported by the individual account owner to the U.S. Government on an income tax return or an FBAR—a Report of Foreign Bank and Financial Accounts, FinCEN Form 114 (formerly known as Form TD F 90 22.1).
[2] “U.S. Penalty Accounts” are defined as U.S. accounts valued over $50,000 that the parties agree should be subject to a penalty for the offense conduct.
[3] The IRS Form W-8BEN is a tax form that identifies the foreign status of non-U.S. persons for U.S. tax withholding purposes.
Swiss Private Bank Banque Pictet Admits to Conspiring with U.S. Taxpayers to Hide Assets and Income in Offshore AccountsRead the Press Release
Swiss private bank Banque Pictet et Cie SA admitted today to conspiring with U.S. taxpayers and others to hide more than $5.6 billion in 1,637 secret bank accounts in Switzerland and elsewhere and to conceal the income generated in those accounts from the IRS.
As part of today’s resolution, Banque Pictet entered into a deferred prosecution agreement and agreed to pay approximately $122.9 million to the U.S. Treasury. Today’s resolution is one of a series of cases by the Justice Department in connection with its investigations since 2008 into facilitation of offshore U.S. tax evasion by foreign banks. The case has been assigned to U.S. District Judge Edgardo Ramos for the Southern District of New York.
“Today, Banque Pictet et Cie admitted to actively helping U.S. taxpayers use coded accounts, foreign trusts and entities, nominee beneficiaries and other deceits to conceal their income and assets abroad,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg. “For this criminal conduct the bank will be paying nearly $122.9 million in restitution, disgorgement of fees and a financial penalty, and is required to fully cooperate with investigations relating to these secret accounts.”
“As it has admitted today, Banque Pictet knowingly conspired to conceal from the IRS the income generated by accounts which held more than $5.6 billion,” said U.S. Attorney Damian Williams for the Southern District of New York. “Thanks to the hard work of the career prosecutors of this Office and our law enforcement partners, Banque Pictet has agreed to pay more than $122.9 million and will continue to cooperate with the Department of Justice. Rooting out financial malfeasance remains a priority for this Office, and we encourage companies and financial institutions to come to us to report wrongdoing before we come to you.”
“This case should provide a clear message to others who try to hide their assets and income offshore. Our special agents are experts in following the money, and they are the best at uncovering schemes that try to defraud the U.S. tax system,” said IRS Criminal Investigation Chief Jim Lee. “Offshore tax evasion is a priority for IRS Criminal Investigation, and today’s deferred prosecution agreement with Bank Pictet collects more than $120 million owed to the U.S. government.”
According to documents filed today in Manhattan federal court:
The Pictet Group was founded in 1805 and is a privately held Swiss financial institution headquartered in Geneva that has historically operated as a general partnership and, since 2014, as a corporate partnership. A limited number of managing partners, generally eight or fewer, collectively known as “The Salon,” own and manage the Pictet Group.
As of Dec. 31, 2014, the Pictet Group had approximately 3,800 employees in various locations, primarily in Switzerland, but also in Luxembourg, Hong Kong, Singapore and the Bahamas. The Pictet Group operates two main business divisions: institutional asset management and private banking for individuals.
From 2008 to 2014, Pictet Group’s private banking division was operated by the group’s following banking entities: the Swiss bank (Banque Pictet & Cie SA); Pictet & Cie (Europe) SA, headquartered in Luxembourg; Bank Pictet & Cie (Asia) Ltd. in Singapore and the Bahamian bank, Pictet Bank & Trust Ltd. The Pictet Group provided offshore corporation and trust formation and administration services to certain U.S. taxpayers, first through the Estate Planning and Trust Services unit and later through a wholly owned subsidiary called Rhone Trust and Fiduciary Services SA (Rhone).
As of Dec. 31, 2014, the Pictet Group’s private banking division managed or held custody of approximately $165 billion in assets under management (AUM). From 2008 to 2014, the Pictet Group served approximately 3,736 private accounts that had U.S. taxpayers as beneficial owners, whose aggregate maximum AUM, including declared assets, was approximately $20 billion.
Though Pictet Group adopted early measures to confirm that U.S. clients complied with U.S. law, from 2008 through 2014, the Pictet Group assisted certain U.S. taxpayer-clients with Pictet Group accounts in evading their U.S. tax obligations and otherwise hiding undeclared accounts[1] from the IRS.
In total, from 2008 through 2014, the Pictet Group held 1,637 U.S. Penalty Accounts[2] with aggregate maximum AUM of approximately $5.6 billion in January 2008, on behalf of U.S. taxpayer-clients, who collectively evaded approximately $50.6 million in U.S. taxes.
The Pictet Group assisted U.S. taxpayer-clients with evading their U.S. taxes by opening and maintaining undeclared accounts for U.S. taxpayer-clients at the Pictet Group, either directly or through external asset managers. The Pictet Group also maintained accounts of certain U.S. taxpayer-clients within the Pictet Group in a manner that allowed the U.S. taxpayer-clients to further conceal their undeclared accounts from the IRS. The Pictet Group and certain of its employees knew or should have known that some of their U.S. taxpayer-clients were evading U.S. taxes. In every instance, managing partners approved the opening of new private client relationships and were informed of the closing of U.S. taxpayer-clients’ accounts, which included some undeclared accounts.
As further detailed below, the Pictet Group used a variety of means to assist U.S. taxpayer-clients in concealing their undeclared accounts, including by:
- forming or administering offshore entities in whose name the Pictet Group opened and maintained accounts, some of which were undeclared, for U.S. taxpayer-clients;
- opening and maintaining undeclared accounts in the names of offshore entities formed by others for U.S. taxpayer-clients;
- opening and maintaining Private Placement Life Insurance policy accounts, also called insurance wrappers, held in the name of insurance companies but beneficially owned by U.S. taxpayers and improperly managed or funded through undeclared accounts at the Pictet Group;
- transferring funds from undeclared U.S. taxpayer-client accounts to accounts nominally held by non-U.S. clients but still controlled by U.S. taxpayer-clients via fictitious donations, thus assisting U.S. taxpayer-clients in continuing to maintain undeclared funds offshore;
- providing traditional Swiss banking products such as hold-mail account services, where account-related mail is held at the bank rather than sent to the client, and coded or numbered accounts and
- accepting IRS Forms W-8BEN[3] or Pictet Group’s substitute forms that the group knew or should have known falsely stated or implied under penalty of perjury that offshore entities beneficially owned the assets in the undeclared accounts.
The $122.9 million Banque Pictet agreed to pay to the U.S. Treasury pursuant to the deferred prosecution agreement consists of (i) $52,164,201 to the United States, which represents gross fees (not profits) that the bank earned on its undeclared accounts between 2008 and 2014; (ii) $31,844,192 in restitution to the IRS, which represents the unpaid taxes resulting from Banque Pictet’s participation in the conspiracy and (iii) a $38,950,998 penalty. The penalty considers the nature and seriousness of the Pictet Group's conduct, the Bank’s extensive internal investigation, the Bank’s substantial provision of documents to the Justice Department, and the Bank’s facilitation of witness interviews. The Bank further implemented remedial measures to protect against the use of its services for future tax evasion.
In addition to the payment, Banque Pictet also agrees under the deferred prosecution agreement to accept responsibility for its conduct by stipulating to the accuracy of an extensive statement of facts. Banque Pictet further agreed to refrain from all future criminal conduct, implement remedial measures and cooperate fully with further investigations into hidden bank accounts. Specifically, the Bank is required to cooperate fully with ongoing investigations and affirmatively disclose any information it may later uncover regarding U.S.-related accounts. The Bank is also required to disclose information consistent with the Justice Department’s Swiss Bank Program relating to accounts closed between Jan. 1, 2008, and Dec. 31, 2022. The agreements provide no protection from criminal or civil prosecution for any individuals.
If Banque Pictet continues to comply with its agreement, the United States has agreed to defer prosecution of Banque Pictet for a period of three years, after which time the United States will seek to dismiss the charge against Banque Pictet.
Acting Deputy Assistant Attorney for Criminal Matters General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Damian Williams for the Southern District of New York and Chief Jim Lee of the IRS Criminal Investigation made the announcement.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Williams praised the outstanding investigative work of the special agents of IRS Criminal Investigation.
Senior Litigation Counsel Nanette Davis of the Tax Division and Assistant U.S. Attorneys Daniel G. Nessim and Olga Zverovich for the Southern District of New York are prosecuting the case.
[1] An “undeclared account” was a financial account beneficially owned by an individual subject to U.S. tax obligations and maintained in a foreign country that had not been reported by the individual account owner to the U.S. Government on an income tax return or an FBAR—a Report of Foreign Bank and Financial Accounts, FinCEN Form 114 (formerly known as Form TD F 90 22.1).
[2] “U.S. Penalty Accounts” are defined as U.S. accounts valued over $50,000 that the parties agree should be subject to a penalty for the offense conduct.
[3] The IRS Form W-8BEN is a tax form that identifies the foreign status of non-U.S. persons for U.S. tax withholding purposes.
St. Louis Man Admits Shooting Two Women, One Fatally, During CarjackingsRead the Press Release
ST. LOUIS – A St. Louis, Missouri man on Monday admitted killing a woman while stealing her car in 2022 and shooting another woman during a carjacking a few weeks later.
Loyse Dozier, 21, pleaded guilty in U.S. District Court in St. Louis to four felonies: carjacking resulting in death, attempted carjacking resulting in serious bodily injury, being a felon in possession of a firearm and possession with intent to distribute fentanyl.
Dozier admitted fatally shooting Laruth Jones while he was stealing her Mercedes CLA 250 on July 10, 2022. Jones had parked in the lot of the Raqqa Mart at 352 Chambers Road, in Riverview, in St. Louis County, and was standing near the entrance to the store when she saw Dozier, who was wearing a full-face mask, get into her car. She confronted Dozer with her gun, the two exchanged fire, and Jones was killed. Before leaving in the stolen car, Dozier got out and picked up Jones’ gun, he admitted in his plea. He later set the car on fire in a St. Louis alley.
On Aug. 1, 2022, Dozier shot another woman while trying to steal her car from a Walgreens at 1400 North Grand Boulevard in St. Louis. Dozier, who was again masked, walked onto the parking lot and opened the door of the victim’s Kia Optima. He ordered the driver out. She complied and handed her keys to Dozier. He shot her twice before getting into her car. An off-duty Florissant Police Department officer, who was working as a security guard inside the Walgreens, ran outside after the shooting, scaring Dozier away. Dozier left his phone behind in the Kia, however.
Nine days later, St. Louis Metropolitan Police Department officers spotted Dozier at a gas station at West Florissant and Adelaide Avenues. He ran, discarding a handgun and a bag before officers caught and arrested him, inside the bag was 5.76 grams of fentanyl. The gun was a .45-caliber Smith & Wesson handgun that he’d stolen from Jones after shooting her. He later used it to shoot the second victim. Dozier is a convicted felon and is barred from possessing a firearm. Dozier had cocaine base in 25 plastic baggies in his pocket when he was arrested, as well as a magazine for the handgun.
Dozier is scheduled to be sentenced March 11, 2024. As part of the plea agreement, both sides have agreed to recommend a sentence of 32 years in prison.
The St. Louis Metropolitan Police Department, the St. Louis County Police Department and the FBI investigated the case. Assistant U.S. Attorney Matthew Martin is prosecuting the case.
St. Louis County Man Sentenced to 3 Years in Prison for ID Theft and Stealing Rental CarRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Monday sentenced a St. Louis County, Missouri man who used counterfeit identification and a fake credit card to steal a rental car to three years in prison.
Kelvin N. Ford, 32, of Dellwood, pleaded guilty in September to aggravated identity theft and access device fraud. He admitted stealing an Audi Q3 SUV worth about $37,000 from Alamo Car Rental in Woodson Terrace, Missouri by using a stolen credit card number and fake identification in the name of a Connecticut resident. The driver’s license had the victim’s name, birth date and address but Ford’s picture. Ford was also using a credit card that had been encoded with the stolen credit card number.
Ford admitted that he did not plan to return the SUV to Alamo. At the end of the rental period, Alamo discovered the fraud and reported the Audi stolen. Bridgeton police found it in their city, with Ford sitting in the driver’s seat. Officers found multiple counterfeit debit cards using other people’s names, $736 in cash, gift cards and multiple fake IDs.
Ford also opened an account at Scott Credit Union in someone else’s name, his plea agreement says.
The U.S. Postal Inspection Service, the Woodson Terrace Police Department and the Bridgeton Police Department investigated the case. Assistant U.S. Attorney Jonathan Clow prosecuted the case.
Springfield, Illinois, Woman Sentenced to Three and a Half Years in Prison for Threatening to Kill DCFS EmployeesRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, woman, Lerin E. Hughes, 25, was sentenced on November 30, 2023, to 42 months’ imprisonment, to be followed by three years of supervised release, following her conviction for cyberstalking.
At the jury trial before U.S. District Judge Colleen R. Lawless, the government presented evidence to establish that Hughes repeatedly made threatening Facebook posts directed towards an employee of the Illinois Department of Children and Family Services (DCFS) who was assigned to investigate allegations of child abuse and neglect. Hughes also sent threatening text messages and e-mail messages and sought out the personal Facebook page of a case worker employed by an agency contracted to work on behalf of DCFS. The threats occurred over a period of four months during the summer of 2022. These threats included threats to kill the two child protection workers. The government also presented evidence that Hughes made statements to other people indicating her desire to shoot the victims and other juvenile court personnel, as well as the governor of Illinois.
At sentencing, Judge Lawless said the victims were doing their job and should not have had to endure Hughes’s threats and harassment. Judge Lawless noted that the sentence was needed to deter others so that DCFS workers could continue to do their important jobs without fear of similar behavior.
Hughes was indicted on October 18, 2022, and was arrested on October 20, 2022. Hughes has remained in the custody of the United States Marshals Service since her arrest.
The penalties for cyberstalking are not more than five years’ imprisonment, not more than three years’ supervised release, not more than a $250,000 fine, and restitution pursuant to 18 U.S.C. § 3663A.
“DCFS employees work tirelessly to protect children in the State of Illinois,” said Assistant United States Attorney Sarah E. Seberger. “The defendant’s words caused real and severe emotional distress that these victims never should have had to endure for merely doing their jobs. This sentence sends a strong message that there are consequences for online threats of violence towards government employees. I am grateful to the FBI for their work on this case, as well as the important assistance of the Sangamon County Sheriff’s Office.”
“The FBI takes threats of violence very seriously and works diligently to protect the communities we serve,” said FBI Springfield Field Office Special Agent in Charge David Nanz. “We will continue to work with our law enforcement partners to disrupt and investigate those who engage in violent rhetoric—holding accountable anyone who threatens to harass, intimidate, or harm another.”
The case investigation was conducted by the Federal Bureau of Investigation, Springfield Field Office. Valuable assistance was provided by the Sangamon County Sheriff’s Department and the Sangamon County State’s Attorney’s Office. Assistant U.S. Attorneys Seberger and Sierra Senor Moore represented the government at trial.
Santa Barbara County Man Sentenced to 6 Months in Prison for Obstructing Federal Probe into Plane Crash He Posted on YouTubeRead the Press Release
LOS ANGELES – A YouTuber pilot was sentenced today to six months in federal prison for obstructing a federal investigation by deliberately destroying the wreckage of an airplane that he intentionally crashed in Santa Barbara County to gain online views.
Trevor Daniel Jacob, 30, of Lompoc, was sentenced by United States District Judge John F. Walter.
Jacob pleaded guilty on June 30 to one count of destruction and concealment with the intent to obstruct a federal investigation.
Jacob is an experienced pilot, skydiver and former Olympic athlete who had secured a sponsorship from a company that sold various products, including a wallet. Pursuant to the sponsorship deal, Jacob agreed to promote the company’s wallet in a YouTube video that he would post.
On November 24, 2021, Jacob took off in his airplane from Lompoc City Airport on a solo flight purportedly destined for Mammoth Lakes. Jacob did not intend to reach his destination, but instead planned to eject from his aircraft during the flight and video himself parachuting to the ground and his airplane as it descended and crashed.
Prior to taking off, Jacob mounted several video cameras on different parts of the airplane and equipped himself with a parachute, video camera and selfie stick. Approximately 35 minutes after taking off, while flying above the Los Padres National Forest near Santa Maria, Jacob ejected from the airplane and videoed himself parachuting to the ground.
Using the video camera mounted on the selfie stick and the video cameras he mounted on the airplane, Jacob was able to record the airplane as it descended and crashed into a dry brush area in Los Padres National Forest. After parachuting to the ground, Jacob hiked to the location of the wreck and recovered the data containing the video recording of his flight and the crash of the airplane.
On November 26, 2021, Jacob informed the National Transportation Safety Board (NTSB) about the plane crash. The NTSB, which launched an investigation into the crash on or about that same day, told Jacob that he was responsible for preserving the wreckage so the agency could examine it. Jacob agreed to determine the crash location and provide both the coordinates of the downed plane and videos of the crash to NTSB investigators. Three days later, the Federal Aviation Administration (FAA) launched its own investigation into the plane crash.
In the weeks following the plane crash, Jacob lied to investigators that he did not know the wreckage’s location. In fact, on December 10, 2021, Jacob and a friend flew by helicopter to the wreckage site. There, Jacob used straps to secure the wreckage, which the helicopter lifted and carried to Rancho Sisquoc in Santa Barbara County, where it was loaded onto a trailer attached to Jacob’s pickup truck.
Jacob drove the wreckage to Lompoc City Airport and unloaded it in a hangar. He then cut up and destroyed the airplane wreckage and, over the course of a few days, deposited the detached parts of the wrecked airplane into trash bins at the airport and elsewhere, which was done with the intent to obstruct federal authorities from investigating the November 24 plane crash.
On December 23, 2021, Jacob uploaded a YouTube video titled, “I Crashed My Airplane,” that contained a promotion of the wallet and depicted him parachuting from the plane and the aircraft’s subsequent crash. Jacob intended to make money through the video.
Jacob lied to federal investigators when he submitted an aircraft accident incident report that falsely indicated that the aircraft experienced a full loss of power approximately 35 minutes after takeoff. Jacob also lied to an FAA aviation safety inspector when he said the airplane’s engine had quit and, because he could not identify any safe landing options, he had parachuted out of the plane.
“It appears that [Jacob] exercised exceptionally poor judgment in committing this offense,” prosecutors argued in a sentencing memorandum. “[Jacob] most likely committed this offense to generate social media and news coverage for himself and to obtain financial gain. Nevertheless, this type of ‘daredevil’ conduct cannot be tolerated.”
The United States Department of Transportation – Office of Inspector General investigated this matter. The NTSB and FAA provided substantial assistance.
Assistant United States Attorneys Dominique Caamano and Dennis Mitchell of the Environmental Crimes and Consumer Protection Section prosecuted this case.
San Diego Man Admits Bank, Tax FraudRead the Press Release
NEWS RELEASE SUMMARY – December 4, 2023
SAN DIEGO – Alvin Pates of San Diego pleaded guilty in federal court today to bank and tax fraud charges, admitting that he participated in a scheme to deceive banks by using straw borrowers and bogus financial information to obtain loans.
According to his plea agreement, beginning as early as July 2014 and continuing through at least April 2020, Pates admitted that he used the names, social security numbers, and credit of the straw borrowers to obtain loans and lines of credit that primarily benefited Pates. Pates prepared, or directed others to prepare, the fraudulent loan and credit card applications. The applications included information about the borrowers’ income and employment that Pates knew to be false and were supported by false paystubs, W2s, and bank statements procured by Pates.
In exchange for the use of the straw borrowers’ personal identifying information and credit, Pates typically paid a 10 percent kickback from the loan proceeds to the straw borrower, and falsely promised to make all the payments on the loans. On at least one occasion, Pates communicated by telephone directly with a financial institution, pretending to be the straw borrower, in order to pass security questions and obtain approval of a loan.
Pates acknowledged in his plea agreement that he funneled the majority of the loan proceeds through the bank accounts of one of his shell companies to use for his personal benefit. For example, Pates admitted to using the funds for numerous personal transactions, cash withdrawals, personal living expenses for himself and his family, and to make payments to other credit unions. Pates admitted that the value of the fraudulent loans charged in the indictment is $87,000, and that he will be required to pay restitution of at least $40,500.
In addition to the bank fraud, Pates also admitted to aiding and assisting in the preparation of false tax returns for two taxpayers for the calendar year 2015. The tax return for one of the taxpayers falsely stated that the individual received “Other Income” in the amount of $538,462 and had paid federal income taxes of $543,643, thus entitling him to a refund of $376,260. Pates supplied false Forms 1099 to the taxpayer to support the return and accompanied the taxpayer to the IRS to submit the false return. The Internal Revenue Service (IRS) issued a refund check to the taxpayer for $376,260, which was ultimately returned to the IRS.
Pates is scheduled to be sentenced on March 1, 2024, at 9 a.m. before U.S. District Judge Cathy Ann Bencivengo.
This case is being prosecuted by Assistant U.S. Attorneys Melanie K. Pierson and Loren G. Rene.
DEFENDANT Case Number 20CR2204-CAB
Alvin Pates a.k.a. Al Noble Age: 54 San Diego, CA
SUMMARY OF CHARGES
Count 8
Bank Fraud – Title 18, U.S.C., Sections 1344(1) and 2
Maximum penalty: Thirty years in prison, $1 million fine, forfeiture and restitution
Count 9
Aiding and Advising Preparation of a False Tax Return—Title 26, U.S.C., Section 7206(2)
Maximum penalty: Three years in prison, $250,000 fine, 3 years’ supervised release, forfeiture and restitution
AGENCIES
U.S. Secret Service
IRS Criminal Investigation
Russell County Man Sentenced to over Two Years in Federal Prison for Defrauding Two Local Non-Profit OrganizationsRead the Press Release
Bowling Green, KY – A Russell County man was sentenced last week to 2 years and 3 months in federal prison for defrauding two Russell County area non-profit organizations.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office made the announcement.
According to court records, Charles Davis, 57, was sentenced last week to 2 years and 3 months in prison, followed by a 3-year term of supervised release, for two counts of wire fraud. The charges were in in connection with his thefts while working as treasurer from two Russell County non-profit organizations, ArtWorks Community Arts Education Center, a local non-profit in Jamestown, Kentucky, that provides arts education to children, and the Russell County Arts Council, another non-profit that provides arts education to children and the community. Davis was also ordered to pay $352,336.72 in restitution to ArtWorks Community Arts Education Center and the Russell County Arts Council.
This case was investigated by the FBI.
Assistant United States Attorney Madison Sewell, of the U.S. Attorney’s Bowling Green Branch Office, prosecuted the case.
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Repeat, Violent Felon Sentenced to Four and a Half Years in Federal Prison for Illegally Possessing a HandgunRead the Press Release
INDIANAPOLIS- Michael Spencer, 31 of Indianapolis has been sentenced to 54 months in federal prison after pleading guilty to illegally possessing a firearm as a previously convicted felon.
According to court documents, on December 8, 2022, IMPD officers arrested Michael Spencer at a gas station on an outstanding warrant for intimidation of a domestic partner and a probation violation associated with a previous armed robbery conviction.
During a search of Spencer’s person, officers found a .40 caliber Glock 24 pistol with an extended magazine containing 20 live rounds in his waist band.
Spencer was convicted of armed robbery in 2010 and 2015. These felony convictions prohibit Spencer from ever legally possessing a firearm.
“Abusers with guns pose an extreme danger to those closest to them. That’s why it’s so important to prosecute illegally armed criminals and disrupt the domestic violence cycle,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “This defendant continued to illegally carry a gun even after multiple armed robbery convictions and an outstanding warrant for domestic violence. The serious prison sentence imposed will protect the public from the defendant for several years and sends a message to him and others like him about the consequences of continuing to illegally carry guns.”
The FBI and IMPD investigated this case. The sentence was imposed by U.S. District Court Judge Jane Magnus-Stinson. Judge Stinson also ordered that Spencer be supervised by the U.S. Probation Office for 3 years following his release from federal prison and pay a $900 fine.
U.S. Attorney Myers thanked Assistant United States Attorney Jeremy C. Fugate, who prosecuted this case.
This case was brought as part of the LEATH Initiative (Law Enforcement Action to Halt Domestic Violence), named in honor of Indianapolis Metropolitan Police Department (IMPD) Officer Breann Leath, who was killed in the line of duty while responding to a domestic disturbance call. A partnership among the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the IMPD, and the U.S. Attorney’s Office for the Southern District of Indiana, the LEATH Initiative focuses federal, state, and local law enforcement resources on domestic violence offenders who illegally possess firearms.
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