Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 11 October 2023
Jeanette Resident Sentenced for Possession of a Firearm and Ammunition by a Convicted FelonRead the Press Release
PITTSBURGH, PA - A resident of Jeannette, Pennsylvania, has been sentenced in federal court today on a charge of possession of a firearm and ammunition by a convicted felon, United States Attorney Eric G. Olshan announced.
According to information presented to the court, on or about February 22, 2019, Kenyetta Jones, age 27, knowingly possessed a firearm and ammunition as a previously convicted felon. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition. Jones also admitted to possessing with the intent to distribute heroin and fentanyl at the time of the offense.
United States District Court Judge W. Scott Hardy sentenced Jones to 60 months in prison to be followed by three years of supervised release.
Assistant United States Attorney Carl J. Spindler prosecuted this case on behalf of the government.
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 gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, along with the Department of Homeland Security conducted the investigation leading to the successful prosecution of Jones.
Jacksonville Brothers Sentenced to Federal Prison for Child Sexual Exploitation Offenses and Ordered to Pay $141,000 in Restitution to VictimsRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Jonathan William Brown (26, Jacksonville) to five years in federal prison for receiving photos and videos depicting the sexual abuse of young children. His brother, Joshua Thomas Brown (28, Jacksonville), was sentenced to four years and six months in federal prison for possessing similar illegal photos and videos. Jonathan Brown was also ordered to serve a 15-year term of supervised release, register as a sex offender, and pay $46,000 in restitution to child victims. The court ordered Joshua Brown to serve a 10-year term of supervised release, register as a sex offender, and pay $95,000 in restitution to child victims.
Jonathan William Brown had pleaded guilty on March 16, 2023, and Joshua Brown had pleaded guilty on June 1, 2023. Both have been detained since their arrests on August 30, 2022.
According to court documents, in January 2022, an internet service provider documented several uploads of child sexual abuse material to a particular online account with the user name “Jonathan Brown” and other identifiers that were associated with this same name. These reports were forwarded to the Jacksonville Sheriff’s Office and the St. Johns County Sheriff’s Office for investigation. The investigation revealed that at least one contraband file had been uploaded using an internet connection that resolved to Jonathan Brown’s residence in Jacksonville.
On July 8, 2022, agents with Homeland Security Investigations (HSI), together with officers from the Jacksonville Sheriff’s Office, the St. Johns County Sheriff’s Office, and the Clay County Sheriff’s Office executed a federal search warrant at Jonathan Brown’s residence. Jonathan Brown was at the residence. During the execution of this warrant, agents seized several electronic devices, including computers, cellphones, and storage media. During an interview with law enforcement, Jonathan Brown stated that he had downloaded child sexual abuse materials, he had started engaging in this conduct “a long time ago” when he was in middle school, and since then has been in a cycle of seeking such materials on the internet, downloading it, and then deleting it. Forensic analysis of his electronic devices revealed that Jonathan Brown had downloaded more than 400 photos and 10 videos of child sexual abuse materials, including photos depicting infants and toddlers being sexually abused.
Joshua Brown lived at the same residence and was present during the search on July 8, 2022. During an interview with law enforcement, Joshua Brown admitted that a particular cellphone that was seized belonged to him and that only he used it. Forensic analysis of this device revealed that it contained hundreds of image and video files of child sexual abuse material. Further investigation revealed that Joshua Brown possessed more than 2,100 videos and 600 photos depicting children being sexually abused that were recovered from his three cellphones, a gaming computer, an external hard disk drive, and his online cloud storage account.
“This disturbing investigation exposed the Brown brothers, who admittedly shared child sexual abuse materials on the internet for many years. These images included vile depictions of infants and toddlers being sexually abused,” said Homeland Security Investigations (HSI) Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “Thanks to the law enforcement partnerships forged under the Northeast Florida INTERCEPT Task Force, we were able to identify these brothers and put a stop to their victimization of our most vulnerable.”
These cases were investigated by the Northeast Florida INTECEPT Task Force, to include Homeland Security Investigations (HSI) Jacksonville, the Jacksonville Sheriff’s Office, the St. Johns County Sheriff’s Office, the Clay County Sheriff’s Office, and the Columbia County Sheriff’s Office. They were prosecuted by Assistant United States Attorney D. Rodney Brown.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ithaca Man Convicted at Bench Trial of Wire Fraud and Engaging in Transactions in Criminally Derived PropertyRead the Press Release
SYRACUSE, NEW YORK – Ejembi Onah, age 60, of Ithaca, New York, was convicted yesterday at the conclusion of a non-jury trial of two counts of wire fraud and three counts of transacting in criminally derived property for fraudulently obtaining two Paycheck Program (PPP) loans during the pandemic, receiving over $140,000 in loan proceeds, and spending those proceeds, among other things, in three separate transactions each exceeding $10,000.
United States Attorney Carla B. Freedman; Thomas Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (IRS-CI); and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
PPP loans were United States Small Business Administration (SBA)-guaranteed, forgivable loans authorized in the Coronavirus Aid Relief, Economic Security (CARES) Act, which was enacted in March 2020 to provide emergency financial assistance to Americans suffering adverse economic effects from the COVID-19 pandemic.
The government’s evidence at trial established that Onah submitted two fraudulent PPP loan applications to two different lenders in June 2020. Each application included false information about the payroll and number of employees at Onah’s company, which he claimed was engaged in a seasonal nanotechnology business, and were supported by falsified tax returns. Onah spent the more than $140,000 he received to, among other things, pay back rent at his personal residence, lease a luxury car, and fund his expenses of daily living.
Sentencing is scheduled for February 15, 2024. Onah faces up to 20 years’ imprisonment for each wire fraud count and up to 10 years’ imprisonment for each money laundering count, a term of post-imprisonment supervised release of up to three years, restitution to the victims, and a fine of up $250,000 per count. A defendant’s sentence is imposed by a judge based on the statutes the defendant violated, the U.S. Sentencing Guidelines, and other factors.
In addition, the Court found during the trial that Onah must forfeit to the United States over $140,000 in loan proceeds and an additional nearly $100,000 of those proceeds that he spent in three different transactions exceeding $10,000 each.
HSI and IRS-CI investigated the case. The case is being prosecuted by Assistant United States Attorneys Michael D. Gadarian and Joshua R. Rosenthal.
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.
Iowa Nurse Pleads Guilty to Diverting Fentanyl at Waterloo HospitalRead the Press Release
An Iowa nurse who diverted fentanyl at a Waterloo hospital pled guilty today in federal court in Cedar Rapids. Luis Ramirez-Cajas, age 42, from Cedar Rapids, was convicted of one count of acquiring a controlled substance by misrepresentation, fraud, deception, and subterfuge.
At the plea hearing and in a plea agreement, Ramirez-Cajas admitted that the State of Iowa granted him a nursing license in 2012. In August 2022, before Ramirez-Cajas began working at a Waterloo hospital, Ramirez-Cajas and the Iowa Board of Nursing’s Iowa Nurse Assistance Program (“INAP”) entered into an agreement under which Ramirez-Cajas promised to abstain from drugs and alcohol and to refrain from working with narcotics. Ramirez-Cajas previously had admitted to diverting and using narcotics in the emergency room of an Iowa City hospital in late 2021 and early 2022. The Iowa City hospital was an affiliate of the Waterloo hospital and in the same hospital network. Ramirez-Cajas knowingly violated his agreement with INAP by accepting employment at the Waterloo hospital.
In September and October 2022, while working at the Waterloo hospital, Ramirez-Cajas diverted fentanyl, hydromorphone, and morphine to his own use. All these drugs are controlled substances. Ramirez-Cajas diverted the drugs mostly through purported wasting—falsely documenting in the Waterloo hospital’s records, for example, that he had wasted a full vial because a patient purportedly had refused the drug after Ramirez-Cajas pulled it. Instead of wasting the controlled substances, Ramirez-Cajas diverted them for personal use.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Ramirez-Cajas remains free on bond pending sentencing. Ramirez-Cajas faces a possible maximum sentence of four years’ imprisonment, a $250,000 fine, and one year of supervised release following any imprisonment.
In December 2022, Ramirez-Cajas surrendered his nursing license to the Iowa Board of Nursing with leave to apply for reinstatement within one year. As part of his plea agreement, Ramirez-Cajas agreed to forfeit his nursing license to the United States.
The case is being prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated by the Iowa Medicaid Fraud Control Unit and the Drug Enforcement Administration, Diversion Control Division.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-2049.
Follow us on Twitter @USAO_NDIA.
Inmate Sentenced to 37 Months’ Imprisonment for AssaultRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dontrace Blaine, age 36, an inmate at the United States Penitentiary Canaan, in Waymart, Pennsylvania, was sentenced on October 10, 2023, to 37 months’ imprisonment by United States District Court Judge Malachy E. Mannion for assault with a dangerous weapon.
According to United States Attorney Gerard M. Karam, on November 8, 2020, Blaine assaulted another inmate with a combination lock wrapped in a bedsheet, causing injury.
The matter was investigated by the Federal Bureau of Prisons and the Federal Bureau of Investigation (FBI). Assistant United States Attorney James Buchanan prosecuted the case.
# # #
Idaho man sentenced to 10 years in prison for trafficking meth in Great Falls, HelenaRead the Press Release
GREAT FALLS — An Idaho man who admitted to trafficking methamphetamine in Great Falls and Helena was sentenced today to 10 years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Thomas Lee Dieruf, 40, of Osborn, Idaho, pleaded guilty in May to possession with intent to distribute meth.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that law enforcement in Great Falls and Helena identified Dieruf as supplying meth, and in January 2022, investigators arranged for a purchase of meth from Dieruf. After agreeing to the deal, Dieruf left his home in Idaho and traveled to Montana, where law enforcement detained him at a gas station in St. Regis. Officers executing a search warrant on his car located approximately a quarter pound of meth, a digital scale, plastic baggies and two pistols.
Assistant U.S. Attorney Jeffrey K. Starnes prosecuted the case. The Russell Country Drug Task Force, Missouri River Drug Task Force, FBI and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
###
Hartford Gang Member Sentenced to 63 Months in Federal Prison for Drug and Gun Offenses, Violating Supervised ReleaseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JOEL DeLEON, JR., also known as “Psycho,” 42, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 63 months of imprisonment, followed by four years of supervised release, for narcotics distribution and firearm possession offenses, and for violating the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, this matter stems from an investigation into gang-related drug trafficking and firearm possession by members of Los Solidos. The investigation, which included court-authorized wiretaps, revealed that Luis Feliciano, also known as “Louminaty,” distributed fentanyl, heroin, cocaine, and crack to customers and other distributors in the Hartford area, and also to individuals in New York and Maine.
On March 8, 2022, investigators approached DeLeon, who was sitting in his vehicle on Wolcott Street, after they had observed him meeting with Feliciano and engaging in suspected drug activity. DeLeon was arrested on state charges after he was found with packaged fentanyl and crack cocaine, and a loaded .22 magnum revolver.
DeLeon’s criminal history includes multiple felony narcotics convictions, including a federal conviction for possession with intent to distribute heroin, for which he was sentenced in November 2015 to 51 months of imprisonment and four years of supervised release. He was released from federal prison in August 2018 and was on supervised release at the time of his arrest in March 2022.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On June 8, 2022, a grand jury returned an indictment charging DeLeon, Feliciano, and 14 others with various narcotics distribution and firearm possession offenses.
DeLeon has been detained since his federal arrest on July 5, 2022. On January 19, 2023, he pleaded guilty to unlawful possession of a firearm by a felon, and possession with intent to distribute fentanyl and cocaine.
Judge Shea sentenced DeLeon to 57 months of imprisonment for the narcotics and firearm offenses, and a consecutive six months of imprisonment for violating his supervised release.
Feliciano pleaded guilty and awaits sentencing.
This investigation has been conducted by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force and the Hartford Police Department. The Task Force includes members of the FBI, Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Robert S. Ruff, with the assistance of Law Student Intern Christopher D’Urso, through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former Senior Fiscal Officer for Non-Profit Organization Charged with Multi-Million Dollar Embezzlement SchemeRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Marcia Joseph with wire fraud in connection with her embezzlement of approximately $2.3 million from her employer, a non-profit organization (Company-1) that provides employment and education services for those in need. Joseph was arrested earlier today and made her initial appearance this afternoon before United States Magistrate Judge Peggy Kuo. The defendant was released on a $50,000 bond.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), announced the arrest and charges.
“As alleged, Joseph lined her pockets with millions of dollars that she stole from a charity,” stated United States Attorney Peace. “Money that should have gone to support those with employment and educational needs instead was used to pay for the defendant’s personal expenses, including mortgage payments, spa treatments, home remodeling, and landscaping. Today’s charges send a message to those entrusted with positions of trust that if you abuse that trust for personal gain, you will be arrested and prosecuted.”
“Depleting resources procured for those with special needs is among the most egregious of financial crimes. As we allege today, Joseph did just that by embezzling millions of dollars from the company for which she worked, diverting money away from programs for those in need and right into her pockets. We remind the public that those who engage in similar schemes will be met with a similar fate,” stated FBI Assistant Director-in-Charge Smith.
“This former senior fiscal officer at a Brooklyn-based nonprofit embezzled more than $2.3 million by submitting to the nonprofit fictitious invoices for services, some of which purportedly related to City contracts, for payment to an entity that the defendant created and controlled, according to the criminal complaint,” stated DOI Commissioner Strauber. “As charged, the defendant used her position of trust and responsibility to line her pockets at the expense of a nonprofit that receives City funding and provides critical services to vulnerable New Yorkers. I thank the FBI and the U.S. Attorney's Office for the Eastern District of New York for their partnership in this investigation and their commitment to protect important public resources from fraud and abuse.”
According to the complaint, Joseph was the senior fiscal officer of Company-1, a 501(c)(3) non-profit organization located in Brooklyn, New York that provides comprehensive services to support employment opportunities for persons with emotional, developmental, and/or physical disabilities, and those who are economically disadvantaged. Joseph set up a company called Prestige Business Services (“Prestige”), which purported to provide specialized services to other companies on behalf of Company-1. In truth, Prestige performed no work, and instead was used by Joseph for the exclusive purpose of embezzling more than $2.3 million from Company-1 over a 16-year period. Joseph used the money paid by Company-1 to Prestige to pay for numerous personal expenses, including approximately $235,000 in mortgage payments; 207,000 in credit card payments; $98,000 in car payments; $45,000 in Amazon expenses; and various other personal items, such as home remodeling, spa treatment, landscaping expenses, and luxury goods. Joseph also withdrew nearly $100,000 in cash, disbursed approximately $16,000 to friends and family, and issued approximately $50,000 in Prestige checks to herself.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Eric Silverberg is in charge of the prosecution with assistance from Paralegal Specialists Elizabeth Reed and Melissa Bennett.
The Defendant:
MARCIA JOSEPH (also known as “Marcia James,” “Marcia Lewis,” and “Marcia Peters”)
Age: 57
Baldwin, New YorkE.D.N.Y. Docket No. 23-MJ-883
Former Nurse from Atlantic County Admits Possessing Child PornographyRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man today admitted possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Anthony Barbarino, 37, of Egg Harbor City, New Jersey, pleaded guilty before Chief U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
From April 12, 2022, to Aug. 3, 2022, Barbarino knowingly possessed 93 still photographs and 108 videos of child sexual abuse across three electronic devices, including at least one image of a prepubescent minor or a minor under 12 years of age, and at least one image that portrayed sadistic or masochistic conduct or other depictions of violence. Barbarino was arrested and charged by federal criminal complaint on Aug. 3, 2022, with the same offense. Prior to that arrest, Barbarino was employed as a nurse.
The count of possession of child pornography that involved at least one image that involved a prepubescent minor or a minor under 12 years of age carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 13, 2024.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz, with the investigation leading to today’s guilty plea. He also thanked the Atlantic County Prosecutor’s Office for its assistance.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the Criminal Division in Camden.
barbarino.information.pdfFormer Head of Boro Park Shomrim Society Sentenced to More Than 17 Years in Prison for Transporting a 15-Year-Old Girl with Intent to Engage in Sexual ActivityRead the Press Release
Earlier today, in federal court in Brooklyn, Jacob Daskal, the former head of the Boro Park Shomrim Society (the “Shomrim”), a private, Orthodox Jewish crime-patrol group associated with the New York Police Department, was sentenced by United States District Judge Nicholas G. Garaufis, to 210 months in prison and a $250,000 fine for transporting a minor with intent to engage in criminal sexual activity. Daskal pleaded guilty to the charge in July 2023. As part of the sentence, Daskal is required to register as a sex offender.
Breon Peace, United States Attorney for the Eastern District of New York, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Daskal used his position of power to inflict serious mental, emotional and physical harm on a vulnerable underaged victim, who belonged to the same community he promised to serve and protect,” stated United States Attorney Peace. “Today’s sentence brings some measure of justice for the brave victim.”
Mr. Peace also expressed his appreciation to the Kings County District Attorney’s Office and the New York City Police Department for their assistance with the investigation.
As set forth in court filings and statements at court proceedings, in the spring of 2017, as a result of his position with the Shomrim, Daskal was introduced to a 15-year-old girl who was having issues with her family and whom he took into his home and then groomed for sex. Between August and November 2017, Daskal, then 58 years-old, subjected the 15-year-old victim to sexual acts.
During the summer of 2017, the sexual conduct occurred primarily at Daskal’s house in Brooklyn, New York and at his summer house in South Fallsburg, New York. Daskal frequently transported the victim between those locations by way of New Jersey. At the end of August, Daskal, his family and the victim returned full-time to his house in Brooklyn where the abuse continued. As the school year started, the defendant helped the victim find a new school in Chicago, Illinois, and, in October 2017, she moved there to attend that school and live with another family. While the victim was in Chicago, Daskal communicated with the victim via text message and over Skype video chat. On November 5, 2017, Daskal traveled to Chicago to visit the victim. Daskal booked a hotel room in Chicago, and he brought the victim to the hotel for sex. He returned to New York that evening.
Throughout the abuse, Daskal instructed the victim to delete their communications and warned her not to tell anyone about their sexual relationship. Daskal also used his position as a leader in their community to quiet the victim, bragging about his connections to law enforcement and warning her that it would ruin her life if she told anyone about their relationship. In fact, the victim was expelled from her religious school after disclosing her relationship with Daskal to the school principal.
The government’s case is being handled by the office’s Civil Rights Section. Assistant United States Attorneys Erin Reid and Genny Ngai are in charge of the prosecution with assistance from Litigation Analyst Ryan Costley.
The Defendant:
JACOB DASKAL
Age: 64
Brooklyn, New YorkE.D.N.Y. Docket No. 21-CR-110 (NGG)
Former Federal Contract Employee Pleads Guilty to Child PornographyRead the Press Release
KANSAS CITY, Mo. – A former Lenexa, Kansas, man pleaded guilty in federal court today after child pornography was found on the cell phone he carried into a secure area at the U.S. Department of Energy national security campus in Kansas City, Mo.
Shaun Walker, 41, currently a resident of Springfield, Mo., pleaded guilty before U.S. District Judge Stephen R. Bough to one count of attempting to distribute child pornography over the internet.
Walker was employed by Honeywell Federal Manufacturing and Technology, which is contracted by the Nuclear National Security Administration, at the time of the offense.
According to court documents, Walker entered an inner secure area of the U.S. Department of Energy National Security Campus in Kansas City, Mo., with his personal cell phone on Nov. 29, 2021. Walker contacted Kansas City National Security Campus Security to self-report the violation.
Walker gave his cell phone to security personnel, who reviewed the cell phone to determine if any classified material was present on the phone. During the review, a security officer observed numerous images and videos depicting child pornography. Walker’s phone was seized in order to conduct a forensic examination.
Investigators found an encrypted folder on Walker’s cell phone that contained 21 images and a video of a 5-year-old girl who is known to Walker. Investigators found dozens of additional images and videos of child pornography on Walker’s cell phone. Investigators also found thousands of WhatsApp chats between Walker and females he contacted through a livestreaming pornography website. Walker requested photos and videos of nude underage females conducting sexual acts. As a result of his WhatsApp chats, Walker received and distributed images and videos of child pornography.
Under federal statutes, Walker is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the Department of Energy, Office of Inspector General.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Fentanyl trafficking in Great Falls sends Washington man to prison for five yearsRead the Press Release
GREAT FALLS — A Washington man who admitted coming to Great Falls to sell fentanyl pills was sentenced today to five years in prison, to be followed by four years of supervised release, U.S. Attorney Jesse Laslovich said.
Ryan Mark Jensen, 44, of Bremerton, Washington, pleaded guilty in May to possession with intent to distribute fentanyl.
Chief U.S. District Judge Brian M. Morris presided.
In court documents, the government alleged that Jensen was a significant drug dealer in Great Falls and had come to Great Falls from Washington to sell fentanyl pills because the mark-up on the pills was so profitable. In September 2022, the Russell Country Drug Task Force learned that Jensen was distributing methamphetamine and fentanyl pills while staying at a local hotel. Investigators searched his hotel room and found a small backpack containing several hundred fentanyl pills and a digital scale. Law enforcement also found small baggies that appeared to have contained meth residue.
Assistant U.S. Attorney Jessica A. Betley prosecuted the case. The Russell Country Drug Task Force conducted the investigation.
###
Federal Jury in Chicago Convicts Man of Sexually Exploiting Child He Met OnlineRead the Press Release
CHICAGO — A federal jury in Chicago has convicted an Ohio man of enticing a 16-year-old Illinois girl into sending him sexually explicit images of herself.
ANDREW BOLTZ, 25, of Kenton, Ohio, was convicted Tuesday on all five counts against him, including four counts of sexual exploitation of a child and one count of receipt of child pornography. Each exploitation conviction is punishable by a mandatory minimum sentence of 15 years in federal prison and a maximum of 30 years. The child pornography conviction is punishable by a mandatory minimum sentence of five years in federal prison and a maximum of 20 years. U.S. District Judge John Robert Blakey did not immediately set a sentencing date.
Boltz began communicating with the then-16-year-old girl in January 2020 on the social media application Omegle. Boltz continued communicating with her via text messaging and the social media application Snapchat. During these communications, Boltz enticed the victim into sending him sexually explicit images of herself. Boltz instructed the girl on what type of sexually explicit conduct should be portrayed in the images.
Boltz was convicted after a six-day trial in U.S. District Court in Chicago. The victim bravely testified at trial about being manipulated and degraded by Boltz.
The convictions were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Peru, Ill. Police Department, the LaSalle County, Ill. State’s Attorney’s Office, the Wilmington, Ill. Police Department, the Will County, Ill. State’s Attorney’s Office, the Will County, Ill. Children's Advocacy Center, the Norwalk, Ohio Police Department, and the Cleveland, Ohio Field Office of the FBI. Assistant U.S. Attorneys Elly M. Peirson, Edward A. Liva, Jr., and Kavitha Babu represent the government.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to https://www.missingkids.org/ or calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Federal Court Orders San Antonio-Area Pharmacy and Pharmacist to Pay $275,000 Civil Penalty in Case Alleging Unlawful Opioid DistributionRead the Press Release
A federal court in Texas ordered a San Antonio pharmacy and its pharmacist to pay a $275,000 civil penalty and imposed restrictions related to the dispensing of opioids and other controlled substances.
Pursuant to an agreed consent judgment and permanent injunction, the court enjoined Zarzamora Healthcare LLC, doing business as Rite-Away Pharmacy & Medical Supply #2, along with pharmacist-owner Jitendra Chaudhary, from dispensing certain opioid prescriptions, including combination opioid and benzodiazepine prescriptions. The order also mandates that the defendants undergo periodic comprehensive reviews of their dispensing practices to ensure compliance with the order and the Controlled Substances Act.
The order resolves a civil complaint the government filed on Jan. 21, 2022, in the Western District of Texas. The complaint alleged that the defendants repeatedly dispensed opioids and other controlled substances in violation of the Controlled Substances Act by filling prescriptions while ignoring “red flags” – that is, obvious indications that the prescriptions were not for any legitimate medical use. The complaint also alleged that the defendants altered prescriptions that lacked required information in order to make them appear to be in compliance with DEA regulations.
“The Controlled Substances Act requires pharmacies and pharmacists to ensure that opioids are dispensed for medically legitimate purposes,” said Principal Deputy Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Justice Department will continue to hold accountable professionals who flout their obligations regarding potentially dangerous prescription drugs.”
“The distribution of opioids and other prescription drugs by healthcare practitioners throughout the country has caused immense harm to our communities over the years,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “My office takes this issue very seriously and will litigate against healthcare professionals when warranted.”
“A pharmacist must resolve all “red flags” before the dispensation of any prescription drugs,” said Special Agent in Charge Daniel Comeaux of the Drug Enforcement Agency (DEA) Houston Division. “If the requirements of a proper prescription are not met, the men and women of the DEA Diversion Control Division are always ready to hold these pharmacists accountable .”
U.S. District Judge Jason K. Pulliam entered the consent decree in U.S. District Court for the Western District of Texas.
The DEA’s San Antonio District Office Tactical Diversion Squad investigated the case.
The case is being handled by Assistant U.S. Attorney Erin Van De Walle for the Western District of Texas and Trial Attorneys Scott Dahlquist and Ryan Norman of the Civil Division’s Consumer Protection Branch.
Claims made in a complaint are merely allegations that the United States must prove if a case proceeds to trial. The claims resolved by the injunction announced today are allegations only, and there has been no determination of liability.
Consent DecreeDistrict Man Indicted on Enhanced Second Degree Theft for September Package Thefts Near H Street CorridorRead the Press Release
WASHINGTON –Daniel Greene, 41, of Washington, D.C., was indicted today by a grand jury in the Superior Court of the District of Columbia on two counts of second-degree theft stemming from the Sept. 16, 2023, package thefts from the 600 block of G Street NE, announced U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith of the Metropolitan Police Department (MPD).
Greene is to be arraigned on Friday, Oct. 13, 2023, at a hearing before a Superior Court judge. He faces a maximum of 15 years in prison if convicted of the charges.
According to the government’s evidence, on Sept. 16, 2023, at about 2:45 p.m., Greene approached homes in the 600 block of G Street NE and stole packages from the porches of two of them. He walked away and was stopped by members of the MPD while he was in possession of the stolen packages.
Greene has more than two prior theft convictions, though not from the same occasion, and therefore is subject to enhanced penalties for his alleged theft, including a mandatory minimum sentence of one year in jail.
This case is being investigated by the MPD. It is being prosecuted by Assistant U.S. Attorney Hannah Skopicki.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
Convicted Felon Sentenced to 10 Years in Federal Prison for Possessing Fentanyl, Firearms and AmmunitionRead the Press Release
CONCORD – A Weare man was sentenced today to ten years in federal prison for possessing firearms and ammunition as a prohibited person, and possessing with intent to distribute fentanyl in New Hampshire, U.S. Attorney Jane E. Young announces.
Brian Elliott, age 32, was sentenced by U.S. District Court Chief Judge Landya McCafferty to 120 months in prison and 5 years of supervised release. On June 8, 2023, Elliott pled guilty to one count of possessing with intent to distribute fentanyl, and two counts of being a felon in possession of firearms and ammunition.
“The lengthy sentence imposed by the Court on the defendant is just punishment for the egregious nature of his conduct,” U.S. Attorney Young stated. “The defendant was a convicted felon who possessed multiple firearms and ammunition, and attempted to poison our community with large amounts of fentanyl. He pointed a weapon at a police officer, and later engaged in a standoff with police officers in Manchester during his flight from his crime spree. The message from the courthouse today was clear: this dangerous conduct will not be tolerated in New Hampshire.”
On May 22, 2021, Elliott fled on foot following a vehicle stop by a Goffstown Police Department officer. Elliott drove his vehicle at a high rate of speed on the wrong side of the road prior to jumping from his moving vehicle in order to flee from the pursuing officer. During a subsequent foot chase, he pointed a gun at the officer and threatened to shoot the officer. As described in the plea agreement, Elliott dropped a backpack containing approximately 138 grams of fentanyl and over 100 rounds of various types of ammunition. A loaded firearm was also recovered from the scene the next day. On May 24, 2021, Elliott was apprehended at a Holiday Inn in Manchester, after negotiators succeeded in getting him out of his room. A subsequent search of his hotel room yielded additional fentanyl, as well as another firearm and ammunition. Elliott was a convicted felon and was thus legally prohibited from possessing firearms.
The Federal Bureau of Investigation led the investigation. Valuable assistance was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Goffstown Police Department and Manchester Police Department. Assistant U.S. Attorneys Aaron Gingrande and Cam Le are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Compounding pharmacy owner sentenced to 18 months and over $6 million in restitutionRead the Press Release
TULSA, Okla. - A former Jenks resident has been sentenced to 18 months for conspiracy to offer and pay health care kickbacks, announced U.S. Attorney Clint Johnson.
U.S. District Judge George K. Frizzell sentenced Christopher Parks, 62, to 18 months in federal prison, followed by two years of supervised release. Judge Frizzell further ordered Parks to pay $6,400,651.57 in restitution.
“Christopher Parks violated the trust of patients and abused Federal Health Care programs and private insurance companies to cheat taxpayers and pad his pockets,” said U.S Attorney Clint Johnson. “This office, together with our law enforcement partners, will continue to prosecute insurance and medical fraud.”
“This individual and his numerous co-conspirators used their medical credentials to exploit patient trust for financial gain,” said Jason E. Meadows, Special Agent in Charge of the United States Department of Health and Human Services Office of Inspector General (HHS-OIG). “Illegal kickback payments cloud medical judgment and cost taxpayers millions of dollars. HHS-OIG will continue to work with our law enforcement partners to hold accountable those who blatantly steal taxpayer money for their benefit.”
“The defendant exploited the health care industry by conspiring with others to pay and receive illegal kickbacks in order to enrich himself,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “This is not a victimless crime—health care fraud is a crime against all of us who contribute hard earned income and taxes into the system. The FBI will continue to work with our law enforcement partners to ensure those who willingly defraud the American people are held accountable.”
On June 27, 2023, Parks admitted in his plea agreement that he was one of the owners and/or operators of OK Compounding, LLC, and One Stop RX, LLC. Parks stated that between Nov. 2012 and June 2019 he paid physicians remuneration or kickbacks to induce referrals of their patients’ compounding prescriptions to one of the two pharmacies. Parks would pay the physicians through bank accounts he controlled knowing that some of the prescriptions were being paid for by government healthcare programs including Tricare, Medicare, the Federal Employees Compensation Act program, and the Civilian Health and Medical Program of the Department of Veterans Affairs.
Compounding prescriptions is a practice in which a pharmacist or physician combines, mixes, or alters ingredients of a drug or multiple drugs to create a medication that is tailored to the specific needs of a patient. These medications are prescribed when standard Food and Drug Administration-approved drugs are unsuitable for the patient. Compounded medications are also more expensive and reimbursed at a far higher rate by federal and private insurance companies than other forms of the same medication. Compounded drugs are not to be mixed or marketed in bulk.
The physicians were provided pre-printed prescription pads that listed compounding formula choices. Participating physicians checked a box with their preferred selection and then faxed it directly to the associated pharmacies, rather than writing a prescription tailored to the patient who could then take it to a pharmacy of their choice.
Parks disguised payments to physicians through various sham business arrangements. For example, physicians would enter into agreements with a pharmacy to serve as “medical directors.” However, the physicians provided no actual services as medical directors. Instead, physicians were paid kickbacks for writing prescriptions for medications whether their patients needed them or not and sending the prescriptions to Parks-affiliated pharmacies.
The Health & Human Services-Office of Inspector General, Defense Criminal Investigative Service and FBI investigated the case.
Assistant U.S. Attorney Melody Nelson prosecuted the case.
Colchester Man Sentenced to 44 Months for Possessing Firearm as a Convicted FelonRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on October 10, 2023, Dennis Martin, 42, of Colchester, Vermont, was sentenced to serve 44 months in prison for unlawfully possessing a firearm as a convicted felon. U.S. District Judge Christina Reiss also ordered Martin to serve a three-year term of supervised release.
Martin was convicted by a jury on February 9, 2023. The evidence at trial included a Snapchat video Martin sent to his mother-in-law on February 18, 2019, in which he brandished a firearm. According to trial testimony, Colchester Police, with the assistance of the Vermont State Police Tactical Services Unit, arrested Martin later in the day on February 18, 2019, from a vehicle near his Colchester residence. A search of the vehicle resulted in a seizure of a Ruger model LCP .380 caliber pistol with a laser sight. An analyst with the Bureau of Alcohol, Tobacco, Firearms, and Explosives testified that the firearm in the video appeared to be the same firearm from the Snapchat video and explained the similarities to the jury.
According to court records, on February 17, 2019, the day before Martin sent the Snapchat video, Martin’s then-wife reported ongoing domestic abuse perpetrated by Martin. Martin’s arrest on February 18, 2019, was for felony domestic assault and disorderly conduct with an electronic device based upon the Snapchat video. Martin was ultimately convicted for misdemeanor domestic assault and disorderly conduct by phone in Vermont Superior Court and sentenced to 363 to 364 days of jail.
The evidence at trial also showed that in 2015, Martin was convicted of a felony in Philadelphia, Pennsylvania, and sentenced to five years’ probation. According to court records, that felony was possession with the intent to distribute cocaine base. Martin testified at his Vermont federal trial that he did not know his prior conviction was a felony. Witnesses for the United States at trial included Martin’s probation officer and the prosecutor who prosecuted Martin in Pennsylvania, both of whom testified that Martin would have been made aware multiple times that his Pennsylvania conviction was for a felony. Evidence at trial also included paperwork Martin had signed that stated in multiple places that his offense was a felony.
At his sentencing on October 10, 2023, the Court found that Martin’s use of the firearm in the Snapchat video, in which he also made threatening statements, was conduct relevant to his unlawful firearm possession and constituted the federal felony of transmitting a threat in interstate commerce. The Court enhanced the sentence calculation accordingly under the U.S. Sentencing Guidelines. The Court also found that Martin obstructed justice by lying under oath at trial when he denied knowing his prior conviction was a felony and, as a result, applied an additional Sentencing Guidelines enhancement.
United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Colchester Police Department, and the Vermont State Police.
This case was prosecuted by Assistant U.S. Attorneys Jonathan Ophardt, Corinne Smith and Wendy Fuller. Mr. Martin was represented by Michelle Anderson Barth, Esq.
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.
Cincinnati man sentenced to prison for Covid relief fraudRead the Press Release
CINCINNATI– A man who filed for relief under the Paycheck Protection Program and fraudulently claimed that he was running a business during the time he was incarcerated was sentenced in U.S. District Court today to 12 months and one day in prison.
Willie Boyce, 42, pleaded guilty in April 2023 to one count of wire fraud. As part of his sentence, he will pay $41,040 in restitution.
According to court documents, Boyce was incarcerated in Hamilton County from March 2018 until September 2020, when he was released to a halfway house.
Boyce acknowledged that he applied electronically for two PPP loans in April 2021, claiming he owned a business that provided taxi and ridesharing services.
In his applications, Boyce fraudulently claimed a gross income of $98,500 for 2019 even though he was in prison for the entirety of that year. Boyce used his halfway house address as the business address and submitted a forged bank statement.
Boyce claimed the money was for payroll for his company, and received payments on April 20 and May 5, 2021, but withdrew or spent all the money by the end of May 2021, on non-business-related transactions including payments to Gucci, Louis Vuitton, Expedia, Hampton Inn and Delta Airlines.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the sentence imposed today by Senior U.S. District Judge Susan J. Dlott. The case was investigated by the Social Security Administration Office of Inspector General, in coordination with U.S. Postal Inspection Service, U.S. Secret Service, Ohio Bureau of Motor Vehicles Investigations and Hamilton County Prosecutor’s Office. Special Assistant U.S. Attorney Timothy Landry and Assistant U.S. Attorney Ebunoluwa Taiwo are representing the United States in this case.
# # #
Chatham Man Pleads Guilty to Insider Trading SchemeRead the Press Release
BOSTON – A Chatham man pleaded guilty today in federal court in Boston to securities fraud for trading on inside information about a Massachusetts semiconductor company’s planned acquisition of a California semiconductor company.
Gregory Manning, 60, formerly of Needham, pleaded guilty to one count of conspiracy to commit securities fraud and one count of securities fraud. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Jan. 3, 2024. Manning was charged in January 2020 along with co-defendants John Younis and David Forte.
In or around June 2016, Forte ¬obtained material non-public information from his brother who was a senior executive at Analog Devices, Inc. (Analog), a Norwood-based semiconductor company, about Analog’s planned acquisition of Linear Technology Corp. (Linear), a semiconductor company based in Milpitas, Calif. Forte passed the information to Manning, who purchased 3,000 shares of Linear stock in the week leading up to the public announcement of the acquisition on July 26, 2016. After the deal was announced, Manning sold all of the Linear shares he had purchased in the days leading up to the announcement for a profit and later paid Forte a kickback in appreciation for Forte’s stock tip.
In June 2022, Younis was sentenced to one month of home detention and two years of probation after pleading guilty to trading in Linear securities based on the material non-public information Forte provided to him. On July 20, 2023, Forte was convicted by a federal jury of one count of conspiracy to commit securities fraud and one count of securities fraud. He is scheduled to be sentenced on Oct. 24, 2023.
The charge of conspiracy to commit securities fraud provides for a sentence of up to 25 years in prison, five years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of securities fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Securities & Exchange Commission provided valuable assistance. Assistant U.S. Attorneys David M. Holcomb and Leslie A. Wright of the Securities, Financial & Cyber Fraud Unit are prosecuting the case.
CEO and Business Partner Charged with Massive Scheme to Defraud New York City’s Homeless Services ProgramsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”), announced today the indictment of PETER WEISER and THOMAS BRANSKY for conspiring to defraud the City of New York (the “City”) of millions of dollars through a multifaceted scheme to corruptly profit from the provision of temporary housing and homeless services in New York City. BRANSKY was the Chief Executive Officer of Childrens Community Services, Inc. (“CCS”), a purported not-for-profit homeless services provider formed and initially funded in part by WEISER. BRANSKY, in turn, fraudulently steered lucrative service contracts ultimately paid for by the City to a group of entities owned and controlled by WEISER. WEISER and BRANSKY intentionally concealed WEISER’s involvement in the formation and operation of CCS and his ownership and control of certain entities that contracted with CCS, including by submitting false statements and documents to the City. WEISER and BRANSKY were arrested earlier today and will be presented before U.S. Magistrate Judge Valerie Figueredo in Manhattan federal court later today. The case is assigned to U.S. District Judge Vernon Broderick.
U.S. Attorney Damian Williams said: “As alleged, the defendants engaged in a yearslong scheme to pocket millions in taxpayer dollars through the systematic exploitation of City programs intended to meet the basic needs of some of the most vulnerable New Yorkers – homeless men, women, and children. Worse still, the defendants allegedly perpetrated this massive scheme under the guise of a not-for-profit organization named ‘Childrens Community Services.’ Thanks to the persistent efforts of the New York City Department of Investigation and the Special Agents and career prosecutors of my Office, these two men will face justice for their brazen graft.”
DOI Commissioner Jocelyn E. Strauber said: “These two defendants, as charged, used New York City’s need for providers of homeless services as an opportunity for fraud and personal profit. Through a nonprofit entity, Childrens Community Services, and related companies, the defendants caused the City to pay over $50 million that the City would not otherwise have paid to these entities, including in inflated prices and unreasonable mark-ups for goods and services, as alleged in the Indictment. As charged, the defendants concealed their scheme by straw ownership of companies, false statements, and fictitious bids. I am grateful for the meticulous, exhaustive work of DOI's investigators and of the U.S. Attorney's Office for the Southern District of New York, our partners in the fight to protect critical public resources from wrongdoers, and for the cooperation of the City Department of Social Services.”
According to allegations in the Indictment filed in Manhattan federal court:[1]
From at least in or about 2014 through at least in or about January 2020, THOMAS BRANSKY, who was the Chief Executive Officer of CCS, and his business partner, PETER WEISER, conspired to defraud the City agencies responsible for the administration of homeless services. Between in or about November 2014 and in or about February 2020, CCS was awarded 12 contracts with the City worth approximately $913 million. BRANSKY fraudulently steered lucrative service contracts with CCS — contracts ultimately paid for by the City — to a group of affiliated entities owned and controlled by WEISER (the “Weiser Entities”). To carry out their scheme, WEISER, BRANSKY, and other individuals who worked with them intentionally concealed WEISER’s involvement in the formation and operation of CCS and his ownership and control of certain of the Weiser Entities from the City, including by submitting false statements and documents to the City.
WEISER and his associates created the Weiser Entities to profit unlawfully from the City’s provision of homeless services by capturing downstream revenues arising from CCS’s massive contracts with the City. For the most part, the Weiser Entities were created for the sole purpose of providing goods and services to CCS. WEISER and BRANSKY attempted to disguise the Weiser Entities as legitimate providers of, among other things, IT services and hardware, security services, office and living furniture, and food services. In reality, and with few exceptions, the Weiser Entities were fly-by-night companies with no or few employees. In most cases, the Weiser Entities obtained goods and services from legitimate third-party vendors and then re-sold those goods and services to CCS at marked-up and, in some cases, grossly inflated prices. For example:
- Delta IT Solutions LLC (“Delta”): In or about December 2016, WEISER and his associates created the Weiser Entity Delta to sell IT services and hardware to CCS at inflated prices and in violation of the City’s conflict-of-interest policies. Internal Delta records reflect significant markups for goods that Delta purchased from vendors (such as Amazon and Staples) and resold to CCS. For example, an internal Delta pricing list from 2019 shows markups of up to 330% for items such as routers, printer cables, and surge protectors. Likewise, Delta charged a 331% markup for telecom services that Delta obtained from a third-party provider. These exorbitant markups were not disclosed to the City.
- AMX Distributors, LLC (“AMX”): WEISER and one of his associates created the Weiser Entity AMX to source and supply various consumer goods, including furniture, to CCS at inflated prices and in violation of the City’s conflict-of-interest policies. Through AMX, WEISER sold furniture and supplies to CCS, including, among other things, beds, mattresses, sheets, towels, pillows, sofas, cribs, microwaves, refrigerators, chairs, tables, and toiletries. WEISER sold these goods to CCS at unjustified markups of up to 309%.
- 511 Realty Management, LLC (“511 Realty”): CCS contracted with a Weiser Entity called 511 Realty to lease certain residential and commercial properties. However, 511 Realty provided no legitimate services. Instead, 511 Realty made monthly rent payments to third-party landlords on CCS’s behalf. For this, 511 Realty charged hefty markups to CCS and, as a result, the City. For example, CCS would make monthly payments to 511 Realty of approximately $24,000 for CCS’s office space in the Rockaway Offices. 511 Realty, in turn, would pay the landlord $17,500 monthly, representing a 37% markup, for essentially doing nothing more than writing a check; the markup increased to 46% by in or around 2019.
- Pronto Cleaning Services, LLC (“Pronto”): A Weiser Entity called Pronto Cleaning contracted with a legitimate janitorial services company to provide cleaning services at CCS offices and facilities. Pronto, which had no employees, resold those cleaning services to CCS at an approximately 56% markup, which was paid for by the City.
WEISER and BRANSKY, along with their coconspirators, attempted to conceal the scheme from the various City agencies and components responsible for the administration of homeless services. The defendants and their coconspirators solicited straw owners to appear on paper as the owners of the Weiser Entities when, in reality, WEISER owned, financed, and controlled each Weiser Entity. Moreover, WEISER, BRANSKY, and their coconspirators made and caused to be made false statements to City officials and personnel about, among other things, the ownership of the Weiser Entities, the interconnectedness of the Weiser Entities, the selection process through which CCS awarded contracts to the Weiser Entities, and the ability and experience of the Weiser Entities in providing quality goods and services.
Likewise, to evade and bypass the City’s fraud-detection and cost-saving policies and procedures, WEISER and BRANSKY, along with their coconspirators, caused CCS to award contracts to the Weiser Entities without using a competitive bidding process, conducting proper due diligence, completing necessary documentation, or obtaining requisite approvals. When questioned by the City, BRANSKY at times made and caused to be made false statements, including that the required documentation had been misplaced when, in fact, it had never been completed. At other times, WEISER created and/or solicited fictitious competing bids and caused those fictitious bids to be submitted to the City to secure contracts between CCS and the Weiser Entities and to conceal the inflated pricing.
WEISER, BRANSKY, and their coconspirators caused CCS — and, as a consequence, the City — to pay the Weiser Entities more than $50 million for goods and services. The City would not have authorized or made these payments had proper and truthful disclosures about the Weiser Entities been made. The fraudulent scheme harmed the City in numerous ways, including: (i) the City paid inflated prices resulting from the unnecessary insertion of middlemen (the Weiser Entities) between legitimate providers of goods and services and CCS; (ii) the City paid objectively unreasonable markups for certain goods and services; and (iii) CCS’s subversion of the mandatory bidding process and concealment of its conflicts of interest exposed the City to the risk — often realized — that the City would not obtain the best value for its money.
Through the scheme, WEISER collected more than $7 million in illicit profits, and BRANSKY earned more than $1.2 million in salary as the CEO of CCS.
* * *
WEISER, 80, of Lawrence, New York, and BRANSKY, 47, of Woodmere, New York, are each charged with one count of conspiracy to commit wire fraud and one count of wire fraud, which each carry a maximum sentence of 20 years in prison, and one count of embezzlement of government funds, which carries a maximum sentence of 10 years in prison. In addition, WEISER is charged with one count of money laundering, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of DOI and the Special Agents of the U.S. Attorney’s Office.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Nicholas Chiuchiolo, Jilan Kamal, and Sagar K. Ravi are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Burlington County Man Admits Drug and Gun ChargesRead the Press Release
TRENTON, N.J. – A Burlington County, New Jersey, man today admitted his role in a scheme to possess and distribute methamphetamine and illegally possess firearms, U.S. Attorney Philip R. Sellinger announced.
Nicholas Layton, 43, of Mount Holly, New Jersey, pleaded guilty before U.S. District Judge Zahid N. Quraishi in Trenton federal court to an information charging him with one count each of conspiracy to distribute 50 grams or more of methamphetamine, possessing with intent to distribute 50 grams or more of methamphetamine and possession of firearms by a convicted felon.
According to documents filed in this case and statements made in Court:
In December of 2018, Layton and his conspirator were stopped in Crawford County, Arkansas, in possession of over three kilograms of methamphetamine. In July of 2019, Layton possessed two firearms; a rifle and a shotgun after having been previously convicted in the District of New Jersey of a drug trafficking offense. At the time of his arrest in August of 2019, Layton possessed approximately 200 grams of methamphetamine.
The drug trafficking counts to which Layton pleaded guilty carry a mandatory minimum penalty of 10 years in prison, a maximum of life in prison, and a fine of up to $10 million. The firearms offense to which Layton pleaded guilty carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Feb. 15, 2024.
U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration (DEA), Camden Resident Office, under the direction of Special Agent in Charge Cheryl Ortiz in Newark; the DEA Fort Smith Post of Duty under the supervision of Special Agent in Charge Brad L. Byerley, New Orleans Field Division; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Bryan Miller, Newark Field Division; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Burlington County Prosecutor’s Office, under the direction of Prosecutor LaChia L. Bradshaw; and officers of the Arkansas State Police, under the direction of Col. Mike Hagar, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Michelle S. Gasparian of the U.S. Attorney’s Office Organized Crime and Gangs Unit in Newark.
layton.information.pdfBozeman Man Admits Buying Firearms in Montana, Illegally Exporting Them to MexicoRead the Press Release
MISSOULA — A Bozeman man accused of buying firearms in Montana and selling them to individuals in Mexico admitted today to illegally exporting guns, said U.S. Attorney Jesse Laslovich.
Cristyan Jose Gonzalez-Carrillo, 37, pleaded guilty to illegal export before U.S. Magistrate Judge Kathleen L. DeSoto. Gonzalez-Carrillo faces a maximum of 10 years in prison, a $250,000 fine, and three years of supervised release at his sentencing set for Feb. 15, 2024 before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Gonzalez-Carrillo was detained pending further proceedings.
“Every day across America, the Department of Justice is fighting the twin epidemics of gun violence and drug poisoning that shatter our communities,” said Deputy Attorney General Lisa O. Monaco. “To win that battle, we must root out and prosecute those who traffic illegal firearms to Mexico – where weapons end up in the hands of violent cartels that send deadly drugs back to the United States. Today’s guilty plea represents another step forward, but also a sobering reminder that the fight against cross-border firearms-trafficking is a nationwide challenge.”
“Buying guns in Montana and taking them to Mexico to sell is illegal. Fighting gun violence remains a top priority for our office and as today’s hearing showed, we will investigate and prosecute anyone who violates federal firearms laws,” U.S. Attorney Laslovich said.
“Preventing unlawful firearms trafficking is a top priority of the ATF,” said ATF Director Steven Dettelbach. “Whether the unlawful trafficking is destined for a gang in the United States or a cartel in Mexico, we will work with our partners to stop it and hold accountable those who violate our nation’s firearms laws.”
The government alleged in court documents that an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) determined that from February 2020 to May 2020, Gonzalez-Carrillo purchased approximately 31 handguns. Law enforcement executed a search warrant at Gonzalez-Carrillo’s residence in July 2020 and recovered firearms and ammunition, including semi-automatic handguns and AR style rifles. Receipts seized during the search were from multiple stores in Montana for the purchase of firearms during that period. In addition, the investigation determined that Gonzalez-Carrillo’s vehicle plate records would demonstrate multiple border crossings at San Ysidro, California, from April 2020 to June 2020. Investigators also learned that Gonzalez-Carrillo purchased and advertised firearms for sale on the platform WhatsApp, and sold firearms to individuals in Mexico.
Assistant U.S. Attorney Tara J. Elliott is prosecuting the case. ATF conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
###
Baton Rouge Man Sentenced for Assaulting and Threatening Federal OfficersRead the Press Release
NEW ORLEANS, LOUISIANA – KESHAWN KELLY, age 20, a resident of Baton Rouge, Louisiana, was sentenced on October 3, 2023 by U.S. District Judge Greg G. Guidry to twenty (20) months imprisonment, three (3) years of supervised release, and a $125 mandatory special assessment fee, announced U.S. Attorney Duane A. Evans. KELLY previously pleaded guilty to a two-count indictment charging him with influencing federal officials by threat, in violation of Title 18, United States Code, Section 115(a)(1)(B), and assaulting, resisting, or impeding federal officers, in violation of Title 18, United States Code, Section 111(a)(1).
According to court documents, on February 15, 2022, KELLY was involved in a 21-minute standoff with police in the emergency department parking lot at the New Orleans VA Medical Center. During the standoff, KELLY possessed a fully loaded AR-15 rifle with a round in the chamber and the selector switch set to the semi-automatic firing position. KELLY, who continuously refused to get out of the car with his hands up, made various threats to shoot and otherwise assault the officers for the duration of the standoff.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the United States Department of Veteran’s Affairs Police. The prosecution was handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
Baltimore Felon Sentenced to 33 Months in Federal Prison for Illegal Possession of Two Stolen FirearmsRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Tavion Thomas, age 23, of Baltimore, Maryland, to 33 months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm and ammunition.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Richard Worley of the Baltimore Police Department; and Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police.
“Removing from the community—by any legal means necessary—those most likely to commit gun violence, guides the accountability arm of our work,” said United States Attorney Erek L. Barron. “As a convicted violent offender, Mr. Thomas knew that he was not allowed to have a gun—if you are caught illegally carrying a gun, you will be held accountable.”
According to his guilty plea, on September 10, 2022, Baltimore Police officers were advised that Tavion Thomas had an open arrest warrant in Baltimore City for a violent crime. Officers went to the 3200 block of Belair Road in Baltimore, an area they knew Thomas was known to frequent, and located Thomas standing with a crowd of people. Thomas was arrested and the backpack he was wearing was searched. From the backpack, officers recovered a 9mm pistol loaded with one 9mm round in the chamber and one magazine containing 14 9mm rounds; a magazine loaded with 10 9mm rounds; eight mason jars containing a total of 1,696 grams of suspected marijuana; four plastic bags containing 28 grams of suspected marijuana; five plastic containers containing 100 grams of suspected marijuana; and one metal grinder with marijuana residue. Officers also searched Thomas and recovered from his waistband a 9mm pistol loaded with one 9mm round in the chamber and a magazine loaded with 10 9mm rounds. Thomas has a previous felony conviction and knew that as a result, he was prohibited from possessing a firearm and ammunition.
Investigation also revealed that the 9mm pistols Thomas possessed were reported stolen from Bel Air, Maryland and from Atlanta, Georgia.
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.
United States Attorney Erek L. Barron commended the ATF, the Baltimore Police Department and the Maryland State Police for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Michael F. Aubin, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
# # #
Armed Career Criminal Sentenced to More Than 15 Years for Possessing A Firearm and AmmunitionRead the Press Release
Tampa, FL – U.S. District Judge Thomas P. Barber has sentenced Deterrio M. Young (29, Tampa) to 15 years and 10 months in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered Young to forfeit the firearm and ammunition. Young had pleaded guilty on February 2, 2023.
According to court documents, Young had previously been convicted of battery on a law enforcement officer, obstructing or opposing an officer with violence, and aggravated assault. On July 28, 2021, law enforcement received a call that Young had recently been in possession of a firearm. When law enforcement arrived at the scene, Young fled. After a short pursuit, Young was detained, and officers found a magazine in his possession with seven rounds of ammunition. Officers also located the firearm, and DNA from the firearm was later determined to be a match for Young.
As a previously convicted felon, Young is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Michael R. Kenneth and Callan Albritton.
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 Man Sentenced to 30 Years in Prison for Attempted Murder of a Federal Task Force OfficerRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Robert Benjamin Nelson was sentenced to 30 years in prison. Nelson, 31, of Scottsdale, Arizona, pled guilty to attempted murder of a federal task force officer and discharging a firearm during a federal crime of violence on March 22, 2023, following a mistrial on January 17, 2023.
According to court documents, on Sept. 12, 2020, a New Mexico State Police Officer, serving as a Task Force Officer with U.S. Homeland Security Investigations (HSI), initiated a traffic enforcement stop on Nelson’s vehicle for following another vehicle too closely. As the officer approached Nelson’s vehicle from the passenger side, Nelson raised and fired a .22 caliber revolver three times at the officer through the window. The muzzle blast and initial round from the revolver shattered the passenger window, sending shards of glass into the officer’s face and eyes. The officer raised her hands to shield her face, and the second and third bullets struck her in the hands, causing serious and permanent injury to one of her eyes and both of her hands. The officer fell to the ground, but immediately got back up and returned fire as the truck sped off.
The officer pursued and caught up with Nelson, still traveling west on I-40, and pulled him over again. The officer observed Nelson retrieve a rifle from the floorboard of his vehicle and waited for back up to arrive. Officers from the Laguna Pueblo arrived on scene and Nelson was arrested without further incident.
“Today, bravery prevailed over cowardice and truth over irrational hate,” said U.S. Attorney Uballez. “Federal law enforcement officers work every day to make our lives safer. When their lives are put at risk by someone who trained himself to fear police through fantastical internet videos, we will serve decisive justice to protect our protectors. My thanks to our team of prosecutors and federal law enforcement agents who investigated this case, and to the victim whose bravery, professionalism, and calm while under fire made this result possible.”
"These types of shootings are brazened, violent acts, absolutely without justification and a threat to our entire community," said FBI Special Agent in Charge Raul Bujanda. "An attack on a federal Task Force Officer is a federal crime with serious consequences. Today’s sentencing reflects the FBI’s unwavering commitment to ensure that all those responsible for violence crimes against law enforcement officers are brought to justice."
Upon his release from prison, Nelson will be subject to 4 years of supervised release.
The FBI Albuquerque Field Office investigated this case in conjunction with the New Mexico State Police and the Albuquerque Multiagency Officer Involved Shooting Team. Assistant U.S. Attorneys Paul Mysliwiec and Nicholas Mote prosecuted the case.
# # #
23-245
Annual Awards Ceremony Held to Recognize Outstanding Performances by Western Pennsylvania Law Enforcement and ProsecutorsRead the Press Release
PITTSBURGH - The Law Enforcement Agency Directors (LEAD) of Western Pennsylvania recognized dozens of area law enforcement officers and prosecutors during its 25th Annual LEAD Awards Ceremony on Thursday, October 5, 2023, announced United States Attorney Eric G. Olshan. Comprising the Western Pennsylvania heads of federal, state, and local law enforcement agencies, LEAD bestows awards annually as a way to recognize outstanding work by law enforcement agents and officers, as well as prosecutors.
Notable among the LEAD Awards presented on Thursday were:
• The Courage Under Hostile Fire Award was presented to Pittsburgh Bureau of Police Officers Anthony Burke, Jonathan Craig, Jeffrey Garris, Jeremy Hurley, Timothy Matson, Daniel Mead, Stephen Mescan, Andrew Miller, John Persin, Joshua Robey, Michael Saldutte, Michael Smidga, and Clint Thimons for their response at the Tree of Life Synagogue in Squirrel Hill on October 27, 2018. Each of these Pittsburgh Bureau of Police Officers was recognized for exhibiting exceptional courage and professionalism, and their acts of bravery unquestionably prevented further bloodshed.
• The Lifetime Service Award was presented to (Retired) Special Agent Patrick M. (Rick) McGlennon for his outstanding service with the Federal Bureau of Investigation (FBI). Retired Special Agent McGlennon began his employment in law enforcement as a police officer for the Borough of Wilkinsburg, where he worked for four years and obtained the rank of Detective. In 1984, he was hired by the FBI, where he served as a Special Agent for over 33 years. Agent McGlennon served as the primary case agent on the investigation and prosecution of Christina Korbe for the homicide of FBI Special Agent Samuel Hicks in November 2008 during the execution of an arrest warrant for Korbe’s husband. Since retiring from the FBI in December 2017, Agent McGlennon has continued his strong commitment to public safety and joined the National Threat Operations center at the FBI’s Criminal Justice Information Services Division (CJIS).
• An individual LEAD award was presented to Assistant U.S. Attorney Paul Sellers of the Erie Branch Office of the U.S. Attorney’s Office. Mr. Sellers led the investigation of the 4Nation gang which distributed large quantities of drugs and committed numerous acts of violence on the East Side of Erie since 2012. The grand jury returned an indictment against 58 defendants, and the FBI and other law enforcement agencies seized 119.2 pounds of methamphetamine, 180,018 fentanyl pills (19.8 kilograms), 5.22 kilograms of cocaine, 4.95kilograms of fentanyl powder, 709.59 grams of fentanyl analogues, several pounds of marijuana, 33 guns, and $235,151 in cash. This was the first RICO (Racketeer Influenced and Corrupt Organizations Act) brought in the Erie subdivision of the Court.
• Supervisory Deputy United States Marshal Jeremy DeLano also received an individual LEAD award. Deputy DeLano played a leading role in the capture of Michael Burham, who escaped from the Warren County Jail on July 6, 2023. Burham was awaiting trial on kidnapping charges, and was also a suspect in the rape and murder of his ex-girlfriend. Deputy DeLano assembled a large team of Deputy U.S. Marshals and Task Force Officers, utilized the latest technological tools, and obtained an Unlawful Flight to Avoid Apprehension federal arrest warrant, all of which led to the capture of Burham on July 15, 2023.
LEAD is composed of the following law enforcement agencies and their representatives: Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Federal Bureau of Investigation; U.S. Attorney's Office - Western District of Pennsylvania; U.S. Immigration and Customs Enforcement/Homeland Security Investigations; IRS - Criminal Investigation; U.S. Department of Homeland Security, Transportation Security Administration; U.S. Department of Defense - Defense Criminal Investigative Service; U.S. Department of Housing and Urban Development; U.S. Marshals Service; U.S. Postal Service, Office of Inspector General (OIG); U.S. Postal Inspection Service; U.S. Probation & Pretrial Services; United States Secret Service; U.S. Social Security Administration - OIG; U.S. Department of State – Diplomatic Security Service; U.S. Department of Transportation, Federal Air Marshal Service; the U.S. Department of Veterans Administration - OIG; U.S. Department of Labor - OIG; U.S. Department of Agriculture - OIG; U.S. Department of Homeland Security – Federal Protective Service; U.S. Food and Drug Administration – Office of Criminal Investigations; Pennsylvania Office of Attorney General; Pennsylvania State Police; Pennsylvania Board of Probation and Parole; Western Pennsylvania Chiefs of Police Association; Allegheny County Police Department; Allegheny County Sheriff=s Office; Allegheny County District Attorney=s Office; Allegheny County Chiefs of Police Association; Washington County District Attorney’s Office; Westmoreland County District Attorney’s Office; and the Pittsburgh Bureau of Police.
Tuesday 10 October 2023
Westchester Sex Offender Sentenced to 25 Years for Attempted Enticement of a MinorRead the Press Release
ALBANY, NEW YORK – Dean Picariello, age 33, of Valhalla, New York, was sentenced today to 300 months (25 years) in prison for attempting to entice a minor to engage in unlawful sexual activity and committing a felony offense involving a minor while required to register as a sex offender.
United States Attorney Carla B. Freedman and Alfred A. Watson, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
As part of his earlier guilty plea, Picariello admitted that on November 4, 2020, he initiated a conversation with someone he believed to be a 12-year-old girl in a teen chat group on a popular social media messaging application. Picariello engaged in sexually explicit conversation with the person, graphically describing the sex acts he would perform on the 12-year-old child when they met in person. In late November, Picariello began exchanging sexually explicit text messages with a second person posing as the 12-year-old girl’s 11-year-old cousin. On December 3, 2020, Picariello arranged to travel from Valhalla to Menands, to meet and have sex with the pre-teen cousins. When Picariello arrived at the prearranged meeting location in Menands, he was encountered by law enforcement officers and arrested.
Picariello has two prior New York State convictions for rape in the third degree, each involving a victim less than 17 years old.
United States District Judge Glenn T. Suddaby also imposed a life term of post-release supervision and ordered Picariello to forfeit the Samsung cellular phone he used to commit his crimes. Picariello will also be required to register as a sex offender upon his release from prison.
This case was investigated by the FBI Albany’s Child Exploitation Task Force, which includes members of federal, state, and local law enforcement agencies, including the Colonie Police Department. Assistant United States Attorney Allen J. Vickey and Rachel Williams prosecuted the case as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Undocumented alien and former Marietta teaching assistant have been sentenced to prison for firearms traffickingRead the Press Release
ATLANTA – A previously deported undocumented alien with a violent criminal history, and a former school paraprofessional who fatally abandoned a dog in a hot car while straw purchasing firearms, have been sentenced to federal prison for their roles in trafficking guns later used in shootings.
“Firearms traffickers fuel gun violence in our communities placing citizens at risk of injury and death,” said U.S. Attorney Ryan K. Buchanan. “Our office is committed to partnering with our federal, state, and local law enforcement partners to pursue and prosecute criminals whose disregard for life contributes to the illegal flow of guns onto our streets.”
“Although we are very pleased with the success of this operation, unfortunately this operation highlights the persistence of illegal firearms trafficking and demonstrates that this type of crime is real, extant, and must be continuously battled,” said ATF Assistant Special Agent in Charge Alicia Jones. “ATF will continue to work alongside our federal, state and local partners in furtherance of reducing gun crime.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Between February 2022 and June 2022, DeAndre Cannon purchased nearly four dozen firearms on behalf of Conroy Samuels, a convicted felon and undocumented alien, who was living under the assumed identity of “Justin Sheffield.” Samuels used this alias after he served a prison term and was deported from the United States following a conviction for attempted murder.
Cannon, to perpetrate the firearms trafficking scheme with Samuels, falsely represented to federally licensed firearms dealers in the metro-Atlanta area that he was the actual purchaser of the firearms even though he was buying the guns for Samuels and with Samuels’s money. In this way, Cannon sometimes illegally purchased up to 17 firearms in a week. After he received the guns from Cannon, Samuels would distribute them to others. At least two of the firearms that passed from Cannon to Samuels were recovered in Connecticut and linked to multiple shooting incidents in that state.
Cannon and Samuels’s crime spree ended on June 15, 2022, after ATF special agents saw Cannon receive money from Samuels and enter and exit a Jonesboro, Georgia, pawn shop. Although the temperature that day exceeded 95 degrees, Cannon left a dog inside his car for approximately an hour and a half while he straw purchased guns at the pawn shop. When agents encountered Cannon later, they saw that Cannon’s pet was suffering from extreme heat stress. The dog later died despite receiving emergency treatment from Clayton County animal control officers.
On August 2, 2023, Conroy Samuels, also known as “Justin Sheffield,” 50, of Kingston, Jamaica, was sentenced by U.S. District Judge Eleanor L. Ross to four years, nine months in prison to be followed by three years of supervised release. Samuels was convicted of possession of a firearm by a prohibited person, conspiracy to make false statements to a federally licensed firearms dealer, and reentry after deportation after he pleaded guilty on April 20, 2023.
On September 20, 2023, DeAndre Cannon, 34, of Woodstock, Georgia, was sentenced by Judge Ross to four years, two months in prison to be followed by three years of supervised release. Cannon was convicted of conspiracy to make false statements to a federally licensed firearms dealer after he pleaded guilty on June 1, 2023.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Clayton County Police Department.
Assistant U.S. Attorneys Leanne M. Marek and Theodore S. Hertzberg 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.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Navy Service Member Pleads Guilty to Transmitting Sensitive U.S. Military Information to Chinese Intelligence OfficerRead the Press Release
A U.S. Navy service member pleaded guilty today to federal felony offenses and admitted he transmitted sensitive U.S. military information to an intelligence officer from the People’s Republic of China (PRC) in exchange for bribery payments.
Petty Officer Wenheng Zhao, 26, aka Thomas Zhao, of Monterey Park, California, pleaded guilty to conspiring with the intelligence officer and receiving a bribe.
Zhao, who worked at Naval Base Ventura County in Port Hueneme and held a U.S. security clearance, admitted he engaged in a corrupt scheme to collect and transmit sensitive U.S. military information to the intelligence officer in violation of his official duties.
“The intelligence services of the People’s Republic of China actively target clearance holders across the military, seeking to entice them with money to provide sensitive government information,” said Assistant Attorney General for National Security Matthew G. Olsen. “When contacted by his co-conspirator, rather than reporting it to the Navy, the defendant chose greed over protecting the national security of the United States. He is now being held accountable for his crimes. To others tempted to put personal profit ahead of patriotic duty, know that we are committed to identifying you and bringing you to justice.”
“Protecting our country’s national security is of the utmost importance,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “Zhao’s guilty plea is an acknowledgement of the betrayal in selling sensitive military information to the Government of China. The FBI reminds all government officials to remain vigilant in reporting potential recruitment efforts by foreign actors, and we remain committed to standing with our partners to protect the U.S. from threats to our national security.”
Between August 2021 and at least May 2023, Zhao admitted receiving at least $14,866 in at least 14 separate bribes from the intelligence officer. In exchange for the illicit payments, Zhao surreptitiously collected and transmitted to the intelligence officer sensitive, non-public information regarding U.S. Navy operational security, military trainings and exercises and critical infrastructure. Zhao admitted he entered restricted military and naval installations to collect and record this information.
Zhao specifically admitted to transmitting plans for a large-scale maritime training exercise in the Pacific theatre, operational orders, and electrical diagrams and blueprints for a Ground/Air Task Oriented Radar system located in Okinawa, Japan.
Zhao further admitted to using sophisticated encrypted communication methods to transmit the information, destroying evidence and concealing his relationship with the intelligence officer. Zhao’s conduct violated his official duties to protect such information and the oath he swore to protect the United States.
“Officer Zhao betrayed his country and the men and women of the U.S. Navy by accepting bribes from a foreign adversary,” said U.S. Attorney Martin Estrada for the Central District of California. “While he and the PRC officer he served took great pains to conceal their corrupt scheme, investigators were vigilant in uncovering this shameful plot. Today’s resolution, requiring Zhao to plead guilty to all charges against him, shows that we will act swiftly and decisively to protect our nation from those who seek to undermine our security.”
“The Naval Criminal Investigative Service (NCIS) would like to once again thank our partners at the FBI and Department of Justice for their continued assistance in bringing this case to a quick resolution,” said Acting Special Agent in Charge Angel Cruz of the NCIS Office of Special Projects. “The swift action by the Department of Justice in prosecuting this case should serve as a warning to anyone who attempt to compromise the Department of the Navy’s sensitive information or the security of our warfighters. If you or someone you know has knowledge of a potential compromise of sensitive military information, please contact your nearest NCIS or FBI office.”
Zhao pleaded guilty before U.S. District Judge R. Gary Klausner. Sentencing is scheduled for Jan. 8, 2024. As a result of today’s guilty plea, Zhao faces a statutory maximum penalty of 20 years in prison – five years for the conspiracy count and 15 years for the bribery charge. Zhao has been in custody since his arrest on Aug. 3.
The FBI Los Angeles Field Office’s Counterintelligence and Cyber Division and NCIS conducted the investigation. IRS-Criminal Investigation provided substantial assistance.
Assistant U.S. Attorneys Annamartine Salick, Sarah Gerdes, Christine Ro and Kathrynne Seiden for the Central District of California and Trial Attorney Adam Barry of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case, with assistance from Ryan Waters of the Asset Forfeiture Section.
U.S. Navy Sailor Pleads Guilty to Transmitting Sensitive U.S. Military Information to Chinese Intelligence OfficerRead the Press Release
LOS ANGELES – A United States Navy service member pleaded guilty today to federal felony offenses and admitted he transmitted sensitive U.S. military information to an intelligence officer from the People’s Republic of China in exchange for bribery payments.
Petty Officer Wenheng Zhao, 26, also known as Thomas Zhao, of Monterey Park, pleaded guilty to one count of conspiring with the intelligence officer and one count of receiving a bribe.
Zhao, who worked at Naval Base Ventura County in Port Hueneme and held a U.S. security clearance, admitted he engaged in a corrupt scheme to collect and transmit sensitive U.S. military information to the intelligence officer in violation of his official duties.
Between August 2021 and at least May 2023, Zhao admitted receiving at least $14,866 in at least 14 separate bribe payments from the intelligence officer. In exchange for the illicit payments, Zhao surreptitiously collected and transmitted to the intelligence officer sensitive, non-public information regarding U.S. Navy operational security, military trainings and exercises, and critical infrastructure. Zhao admitted he entered restricted military and naval installations to collect and record this information.
Zhao specifically admitted to transmitting plans for a large-scale maritime training exercise in the Pacific theatre, operational orders, and electrical diagrams and blueprints for a Ground/Air Task Oriented Radar system located in Okinawa, Japan.
Zhao further admitted to using sophisticated encrypted communication methods to transmit the information, destroying evidence, and concealing his relationship with the intelligence officer. Zhao’s conduct violated his official duties to protect such information and the oath he swore to protect the United States.
“Officer Zhao betrayed his country and the men and women of the U.S. Navy by accepting bribes from a foreign adversary,” said United States Attorney Martin Estrada. “While he and the PRC officer he served took great pains to conceal their corrupt scheme, investigators were vigilant in uncovering this shameful plot. Today’s resolution, requiring Zhao to plead guilty to all charges against him, shows that we will act swiftly and decisively to protect our nation from those who seek to undermine our security.”
“The intelligence services of the People’s Republic of China actively target clearance holders across the military, seeking to entice them with money to provide sensitive government information,” said Assistant Attorney General for National Security Matthew G. Olsen. “When contacted by his coconspirator, rather than reporting it to the Navy, the Defendant chose greed over protecting the national security of the United States. He is now being held accountable for his crimes. To others tempted to put personal profit ahead of patriotic duty, know that we are committed to identifying you and bringing you to justice.”
“Mr. Zhao’s admission makes it clear that he abandoned the oath he swore to uphold by providing sensitive information to a U.S. adversary in exchange for cash,” said Donald Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. "Zhao put his fellow servicemen at risk when he yielded to overtures from the Chinese government, a nation actively targeting Americans who have access to state secrets. I’m proud of the strong partnerships and hard work that resulted in today’s successful outcome.”
“NCIS would like to once again thank our partners at the FBI and Department of Justice for their continued assistance in bringing this case to a quick resolution,” said A.D. Cruz Jr., Acting Special Agent in Charge of Naval Criminal Investigative Service, Office of Special Projects. The swift action by the Department of Justice in prosecuting this case should serve as a warning to anyone who willingly or through willful negligence attempt to compromise the Department of the Navy’s sensitive information or the security of our warfighters. No matter how long it takes, we will find you and hold you to account. To those still working to assist our adversaries, find your nearest NCIS or FBI office and cooperate before we come for you.”
Zhao pleaded guilty before United States District Judge R. Gary Klausner, who scheduled a January 8, 2024, sentencing hearing. As a result of today’s guilty pleas, Zhao faces a statutory maximum sentence of 20 years in federal prison – five years for the conspiracy count and 15 years for the bribery charge. Zhao has been in custody since his arrest on August 3.
The FBI’s Counterintelligence and Cyber Division of the Los Angeles Field Office and NCIS conducted the investigation. IRS Criminal Investigation provided substantial assistance.
Assistant United States Attorneys Annamartine Salick, Sarah Gerdes, Christine Ro and Kathrynne Seiden of the Terrorism and Export Crimes Section are prosecuting this case, with assistance from Ryan Waters of the Asset Forfeiture and Recovery Section. The Counterintelligence and Export Control Section at the Department of Justice is providing substantial assistance.
U.S. Attorney’s Office Uses Civil Forfeiture to Recover $18,500 for Fraud VictimRead the Press Release
Jackson, Miss. – On September 28, 2023, U.S. District Judge Sul Ozerden entered a Final Judgment of Forfeiture against $18,500.00 in U.S. Currency seized in the form of a cashier check from one of the co-conspirators of a fraud scheme, announced U.S. Attorney Todd Gee. The funds will be returned to the victim of the scheme.
According to the Verified Complaint for Forfeiture in Rem filed by the U.S. Attorney’s Office, the co-conspirator was engaged in a business email compromise scheme (BEC) to receive fraud proceeds. A BEC is a sophisticated scam, often targeting businesses and individuals involved in wire transfer payments. The fraud is carried out by compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques. It causes employees of the victim company (or other individuals involved in legitimate business transactions with them) to transfer funds to accounts the scammers control.
The complaint was filed on June 12, alleging that on September 25, 2020, the victim received an email appearing to be from his attorney, giving him wiring instructions needed to close on a real estate transaction. The fraudulent email instructed the victim to send the funds via wire transfer to a bank account set up by a co-conspirator. Following the fraudulent instructions, the victim wired approximately $142,834.80 to the account.
After an investigation, the Government seized $18,500 in the form of a cashier check that had been issued to the co-conspirator in a fictitious name. After the complaint was filed in federal court, the victim filed a claim and answer in the civil forfeiture proceeding, explaining that he had been the victim of the fraud scheme. The U.S. Attorney’s Office entered into a Stipulated Settlement Agreement with the victim and asked the Court to enter a Final Judgment ordering the return of the $18,500.00 to the victim and canceling the interests of any other person or entity.
On January 29, 2021, in the Southern District of Texas, the United States filed a civil forfeiture action (United States v. $142,869.20 in U.S. Currency, 4:21-cv-306) against the funds then remaining in the co-conspirator’s account, of which $86,671.93 remained after the account was frozen. The United States won a default judgment, and the funds have since been returned to the victim.
The Federal Bureau of Investigation conducted the investigation. In the Southern District of Mississippi, the USAO Asset Recovery Unit team, led by AUSA Clay B. Baldwin handled the matter.
Business Email Compromise schemes can be prevented. Here are some tips:
• Independently obtain mortgage payoff statements and confirm with verified and trusted sources.
• Independently verify the authenticity of information included in correspondence and statements.
• Enable Multi-Factor Authentication (MFA) on all email accounts.
• Routinely change passwords.
• Routinely monitor email account access, check for unauthorized email rules and forwarding settings.
• Restrict wire transfers to known and previously verified accounts.
• Pay using checks when the information cannot be independently verified.
• Have a clear and detailed Incident Response Plan.
For more information visit the Secret Service’s Preparing for a Cyber Incident page. To learn more about the Secret Service and efforts to combat Business Email Compromise fraud, please click here.
U.S. Attorney’s Office Concludes Investigation into Overdose Death of Individual in Police CustodyRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that there is insufficient evidence to pursue federal criminal civil rights or District of Columbia charges against a detective from the Metropolitan Police Department (MPD) and a Special Agent from the Bureau of Alcohol, Tobacco, and Firearms (ATF). On Feb. 2, 2023, a 44-year-old District resident, M.P., died of an overdose after ingesting narcotics. The detective and special agent were the last persons to see the decedent, who died at the MPD Second District Police Station while in the custody of law enforcement.
The U.S. Attorney’s Office and the MPD Internal Affairs Division conducted a comprehensive review of the incident, which included a review of law enforcement and civilian accounts, cell block security camera footage, body-worn camera footage, physical evidence, recorded radio communications, forensic reports, the autopsy report, and reports from MPD.
According to the evidence, at about 6:44 a.m. on Feb. 2, M.P. was arrested pursuant to a D.C. Superior Court warrant. M.P. was cooperative during the arrest and transported to the Second District Police Station for processing on the warrant. M.P. was coherent and cooperative and did not appear to be in distress during processing. After being placed in a cell, M.P. covered the cell block camera. After using the toilet, M.P. fell to the floor. The detective and special agent, unaware of the fall, attempted to interview him minutes later but M.P. appeared to be either sleeping or unwilling to speak with them. Later, M.P. was discovered unconscious in his cell. Emergency efforts to save his life were unsuccessful. An autopsy performed on Feb. 3, 2023, and a subsequent toxicology review, determined that M.P. died as result of the combined effects of ingesting cocaine, fentanyl, fluorofentanyl, and heroin.
After a careful, thorough, and independent review of the evidence, federal prosecutors found insufficient evidence to prove beyond a reasonable doubt that the detective and special agent demonstrated deliberate indifference to M.P.’s condition or otherwise willfully violated M.P.’s rights.
Investigations generally
The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to conclude that any officers violated either federal criminal civil rights laws or District of Columbia law.
The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are investigated fully and completely. The Metropolitan Police Department’s Internal Affairs Division investigates all police-involved fatalities in the District of Columbia.
U.S. Attorney Kavanaugh Observes Domestic Violence Awareness MonthRead the Press Release
CHARLOTTESVILLE, Va. – October marks the observance of Domestic Violence Awareness Month (DVAM). United States Attorney Christopher R. Kavanaugh joins the U.S. Department of Justice in commemorating DVAM, paying tribute to victims and survivors, and saluting the dedication of advocates, service providers, justice professionals, law enforcement officers, and first responders who tirelessly work in support of survivors.
Domestic violence, dating violence, and intimate partner violence can have long-lasting impacts and consequences. Approximately one in four women and one in seven men will experience severe domestic violence in their lifetimes; however, rates are disproportionately higher for American Indian and Alaska Native populations, women of Color, lesbian, gay, bisexual, transgender, queer, intersex, and two-spirit people, and people with disabilities. DVAM provides an opportunity to spread awareness about domestic violence and encourage everyone to play a role in ending gender-based violence.
“Domestic violence is not a self-contained singular problem with a singular solution. It crosses all economic, racial, educational, and cultural backgrounds, and the generational impact can be devastating,” United States Attorney Kavanaugh said today. “As federal prosecutors, we use all the tools at our disposal, along with our partnerships with state and local officials, to ensure victims have a viable path to safety and justice.”
A crucial part of combatting domestic violence and reducing violent crimes includes enforcing federal firearm prohibitions. Domestic violence abusers with access to a gun are five times more likely to kill their partners. In addition to their lethality, firearms are used by abusers to inflict fear, intimidation, and coercive control. Under federal law, people with domestic violence misdemeanor and felony convictions, and those subject to domestic violence protective orders, are prohibited from purchasing or possessing firearms.
According to National Crime Victimization Survey data from the Bureau of Justice Statistics, nearly 20% of all violent crime is categorized as domestic violence.
“In the Western District of Virginia, our team of victim specialists, investigators, and prosecutors are dedicated to fostering awareness, facilitating intervention, and holding accountable those who commit acts of domestic violence,” U.S. Attorney Kavanaugh added. “We are confident that these, and other actions, will lead to more secure, violence-free communities.”
If you or someone you know is a victim of domestic violence or need resources, please visit: https://www.justice.gov/ovw/local-resources.
Immediate help for domestic violence victims: Call the National Domestic Violence Hotline (@ndvhofficial) at 1-800-799-7233 or Strong Hearts Native Helpline (@strongheartsdv) at 1-844-762-8483.
U.S. Attorney and U.S. Postal Inspector in Charge Unveil Charges Against Multiple Defendants Alleged to Have Interfered with Delivery of the MailRead the Press Release
OAKLAND – U.S. Attorney Ismail J. Ramsey and U.S. Postal Inspector in Charge Rafael Nuñez announced today that multiple arrests have been made in cases involving the interference with delivery of the U.S. mail. The announcement was made at a press conference held this morning at the Ronald V. Dellums Federal Building.
The theft of postal keys, break-ins of postal vehicles, assaults on letter carriers, and various other criminal acts involving interference with delivery of the mail and the alleged illegal possession of personally identifying information were all discussed at the press conference. According to U.S. Attorney Ramsey, defendants in each case now are facing severe federal penalties that make clear their alleged crimes were not worth the consequences.
“In each of the cases I will discuss,” said U.S. Attorney Ramsey, “the government alleges the defendants have violated federal criminal laws and, as a consequence, federal agents and local law enforcement has tracked them down . . .. The penalties for these crimes can be sobering.”
Inspector in Charge Nuñez reinforced the U.S. Attorney’s remarks and announced that the reward for information leading to arrest and conviction of any individual who robs or assaults a postal worker is now $150,000. “There is no more important mission for us as federal agents than protecting postal workers from crime and violence,” said Inspector in Charge Nuñez. “To any copycats or wannabes out there who might consider robbing a postal worker, I ask you to consider the years you will face in federal prison, the price on your head, and that postal inspectors will not stop hunting you. The proceeds of this crime are not worth your freedom.”
U.S. Attorney Ramsey stated that most of the cases involved the theft of specialized postal keys that often grant access to large mailboxes or mail storage facilities. Holding one such postal key in his hand, U.S. Attorney Ramsey explained that federal laws have been “carefully crafted to protect the sanctity of the mail, including the sensitive information we entrust to the mail system; the safety of the federal employees and contractors who deliver the mail; and the federal property that is used to ensure mail delivery.” He then went on to describe how three of the defendants are alleged to have violated the law as follows:
• Anthony Medina, 42, of American Canyon, Calif., is alleged to have unlawfully possessed seven mail keys. According to the complaint, officers with the San Francisco Police Department were attempting to perform a traffic stop when the defendant attempted to flee. Officers arrested the defendant and, in addition to the keys, defendant is alleged to have possessed credit cards in the names of other individuals, images of suspected stolen mail, and access codes for an apartment complex in San Francisco. Medina now faces 10 years in prison for each violation of 18 U.S.C. section 1704—the unlawful possession of the postal keys, as well as possible prosecution for unlawful possession of mail and credit cards. (Case No. 23-mj-71443 MAG)
• Robert Devon Nicholson Bell, Jr., 19 , of Antioch, Calif., is alleged to have participated in at least two armed robberies of letter carriers, one in Antioch and one in San Francisco. Allegations in the criminal complaint filed against the defendant describe Bell’s use of mail keys to steal mail from blue mailboxes. According to a criminal complaint, Bell was found in Antioch in possession of robbed postal keys, a substantial quantity of stolen mail, a fraudulent USPS ID with his picture, and stolen and counterfeit checks. He now faces a statutory maximum of 10 years in prison for the unlawful possession of the postal key, as well as 25 years for each of the armed robberies. (Case No. 23-mj-71439 MAG)
• Derek Hopson, 33, of Oakland, Calif., is alleged to have stolen mail and postal keys in two separate incidents that occurred in June of 2023. The complaint alleges the San Francisco Police Department responded to a burglary in progress at a residence in the Mission District of San Francisco when officers encountered the defendant in possession of several postal keys. Hopson also allegedly used a mailbox key to gain access to mailboxes at a residential complex in the Presidio of San Francisco. He now faces a statutory maximum of 15 years in prison for violating 18 U.S.C. sections 1704 and 1706. (Case No. 23-mj-71403 MAG)
Additional recently-filed cases being prosecuted in the Northern District of California include the following:
CASE NUMBER
DEFENDANT NAME
STATUTES ALLEGED
MAXIMUM STATUTORY SENTENCE
23-CR-0086 HSG
Craig Curtis Freeman
Kaylynn Nicole Ulrich
18 U.S.C. § 2117 (Breaking and Entering into a Carrier Facility)
18 U.S.C. § 1708 (Possession of Stolen Mail and Theft of Mail)
10 years of imprisonment
10 years of imprisonment
23-mj-70714 MAG
Stephen Hilton
18 U.S.C. § 2114
(Robbery of a Mail Carrier)
25 years of imprisonment
23-cr-317 HSG
Michael Derryberry
Lucas Ostolaza
18 U.S.C. § 2114
(Robbery of a Mail Carrier) (2 counts, each defendant)
18 U.S.C. §§ 1704 and 2: (Unlawful Possession of Mail Keys) (2 counts, each defendant)
25 years of imprisonment
10 years of imprisonment
23-mj-71424
Michael Morgan
18 U.S.C. §§ 1704 and 2: (Unlawful Possession of Mail Keys)
18 U.S.C. § 1708 (Possession of Stolen Mail and Theft of Mail)
10 years of imprisonment
5 years of imprisonment
23-cr-126 WHO
Vo Nguyen
18 U.S.C. § 111(a) and (b) (Assault on a Federal Employee with a Deadly or Dangerous Weapon)
18 U.S.C. § 1114(a)(3) (Attempted Murder of an Employee of the United States)
18 U.S.C. § 924(c)(1) Using, Carrying, and Discharging a Firearm in Connection with a Crime of Violence
20 years of imprisonment
20 years of imprisonment
Minimum 10 years of imprisonment and maximum life in prison
Indictments and criminal complaints merely allege that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. Further, in addition to the prison terms described, as part of any sentence following conviction the court may order defendants to serve an additional term of supervised release to begin after a prison term, additional fines, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution of these cases are the result of investigations by the United States Postal Inspection Service.
U.S. Air Force member in Great Falls admits to child pornography crimeRead the Press Release
GREAT FALLS -- A member of the U.S. Air Force at the Malmstrom Air Force Base in Great Falls today admitted to allegations that he obtained and sold images of child sexual abuse material using social media, U.S. Attorney Jesse Laslovich said.
Brandon Earl Bankston, 23, pleaded guilty to possession with intent to sell child pornography. Bankston faces a mandatory minimum of five years to 20 years of imprisonment, a $250,000 fine and not less than five years to a lifetime of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for March 14, 2024. Bankston was detained pending further proceedings.
In court documents, the government alleged that in the summer of 2021, the Great Falls Internet Crimes Against Children Task Force was alerted that a suspect in Montana had uploaded videos containing known child sexual abuse material to an account on “X,” formerly known as Twitter. The task force also learned that a Snapchat user with a Montana address had posted an image of child sexual abuse material. The investigation determined that the internet provider addresses belonged to Bankston, an active-duty member of the U.S. Air Force assigned to the 341st Missile Security Forces Squadron at Malmstrom Air Force Base. Bankston admitted to Air Force investigators to possessing and distributing the child sexual abuse material in exchange for payment from users across various internet platforms.
Bankston told investigators that he obtained images and videos of the material through a messaging platform and stored the material on a cloud-based site in New Zealand. He further admitted to selling the child sexual abuse material to approximately 25 individuals. In a search of Bankston’s electronic devices, social media platforms, bank accounts and cloud-based storage applications, investigators determined he possessed approximately 5,000 images of child sexual abuse material and approximately 3,000 images and videos of the material saved in storage accounts. In addition, investigators determined Bankston received approximately $6,750 for child sexual abuse material sales from 42 separate transactions.
Assistant U.S. Attorney Jeffrey K. Starnes is prosecuting the case. The Great Falls Internet Crimes Against Children Task Force, Homeland Security Investigations and the U.S. Air Force Office of Special Investigations conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
XXX
Two Nigerian Nationals Based in Maryland Sentenced for Schemes to Steal California and Other States’ Unemployment Insurance BenefitsRead the Press Release
SACRAMENTO, Calif. — Nigerian nationals Quazeem Owolabi Adeyinka, 22, and Ayodeji Jonathan Sangode, 25, currently both residing in Maryland, were sentenced today to 26 months and 14 months in prison respectively for their roles a fraud conspiracy during the COVID-19 pandemic, U.S. Attorney Phillip A. Talbert announced.
Sangode pleaded guilty in October 2022 to access device fraud, and Adeyinka pleaded guilty in November 2022 to conspiracy to commit wire fraud. A third co-conspirator, Olamide Yusuf Bakare, 26, also pleaded guilty and was sentenced in July 2023 to four years and nine months in prison.
According to court documents, between June 2020 and July 2021, Adeyinka, Sangode, Bakare, and others participated in a conspiracy to submit fraudulent unemployment insurance (UI) and Pandemic Unemployment Assistance (PUA) claims to the State of California. More than 200 individual applications were filed with the California Employment Development Department (EDD) indicating that the claimants’ address was the Hyattsville, Maryland, apartment that the co-defendants shared.
During the conspiracy, the conspirators obtained the personally identifiable information (PII) of persons who were not eligible for UI or PUA benefits or who did not authorize the conspirators to act on their behalf with respect to seeking such benefits. Such PII included names, dates of birth, and Social Security numbers. The conspirators then used the PII to submit dozens of fraudulent UI and PUA claims to EDD under the putative claimants’ identities and without their authorization.
The underlying benefit applications contained false representations, including, for example, that the claimants had worked for certain employers and supervisors; had specific annual incomes; worked during certain time periods; were self-employed in various occupations; were laid off and had no work; were newly unemployed due to a disaster including the COVID-19 pandemic; and were currently available to work. Most, if not all, of these claims were false because the claimants were not so previously working, employed, newly unemployed, or seeking new employment.
The conspirators knew that these representations were false or lacked the knowledge and authority to make such representations. These actions caused EDD to approve fraudulent UI and PUA claims.
For each approved claim, EDD deposited benefit funds into a debit card account administered by Bank of America and under the identity of the putative claimant. Bank of America then mailed unauthorized debit cards to addresses under the control of the defendants. Under the direction of Bakare and others, Adeyinka and Sangode then obtained these debit cards and their PINs and used these cards to withdraw cash at ATMs for the benefit of themselves and coconspirators.
At least 15 debit cards that Adeyinka used during the conspiracy were linked to bank accounts that received approximately $237,911 in fraudulent UI and PUA benefits. Adeyinka was personally involved in $793,844 in attempted loss. And at least 53 debit cards that Sangode used during the conspiracy were linked to bank accounts that received approximately $752,142 in fraudulent UI and PUA benefits.
This case was the product of an investigation by the Department of Labor – Office of Inspector General, the Federal Bureau of Investigation, the Department of Homeland Security – Office of Inspector General – Covid Fraud Unit, and the California EDD – Investigation Division. Assistant U.S. Attorney Denise N. Yasinow prosecuted the case.
This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.
Two New Jersey Men Plead Guilty to Defrauding Investors in Hemp CompanyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that VITALY FARGESEN and IGOR PALATNIK each pled guilty to one count of conspiring to commit securities fraud and one count of conspiring to commit wire fraud in connection with their fraudulent scheme to defraud investors in CanaFarma Corp. and later CanaFarma Hemp Products Corp. (together “CanaFarma”) by soliciting funds based upon false and misleading representations, failing to invest investors’ funds as promised, and secretly misappropriating millions of dollars of CanaFarma funds. FARGESEN and PALATNIK pled guilty today before U.S. District Judge Loretta A. Preska.
U.S. Attorney Damian Williams said: “Vitaly Fargesen and Igor Palatnik orchestrated a sophisticated scheme to obtain millions of dollars from investors with the promise that their money would be spent on building a legitimate company. Instead, they lied about their business, lied to their auditors, and stole millions of dollars of investor funds. Today’s guilty pleas reflect my Office’s commitment to prosecuting those who greedily lie to investors to line their own pockets.”
According to the allegations contained in the Indictment and statements made in public filings and in public court proceedings:
From in or about March 2019 to in or about March 2020, CanaFarma was a privately held Delaware corporation with offices in New York, New York. Beginning on or about March 19, 2020, CanaFarma was listed on the Canadian Stock Exchange, and beginning on or about March 23, 2020, CanaFarma was listed on the Frankfurt Stock Exchange. CanaFarma marketed itself to the investors as a “fully integrated cannabis company addressing the entire cannabis spectrum from seed to delivery of consumer products.” To the public, FARGESEN was held out as Senior Vice President of Strategic Planning at CanaFarma and PALATNIK was held out as Senior Vice President of Product Acquisition at CanaFarma. In truth, the two men exercised full control of CanaFarma but hid their control from the investing public by, among things, convincing an experienced businessman to falsely present himself to the market as the CEO of the company.
Using their control of CanaFarma, FARGESEN and PALATNIK devised and carried out a scheme to defraud CanaFarma’s investors by soliciting approximately $14 million in funds, including investments in private shares of CanaFarma, with false and misleading representations concerning the company’s management, products, and financials; failing to invest investors’ funds as promised; and secretly misappropriating at least $4 million of CanaFarma funds for their own benefit. FARGESEN and PALATNIK effectuated the scheme by, among other things, controlling CanaFarma through a nominal Chief Executive Officer who reported to FARGESEN and PALATNIK, lying to investors regarding CanaFarma’s actual and anticipated operations, attempting to artificially inflate CanaFarma’s reported revenue, making false statements to CanaFarma’s auditors, and misappropriating millions of dollars of investor funds.
* * *
FARGESEN, 54, of Manalapan, New Jersey, and PALATNIK, 49, of Morganville, New Jersey, each pled guilty to one count of conspiracy to commit securities fraud and one count of conspiracy to commit wire fraud, which combined carries a maximum sentence of 10 years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. FARGESEN is scheduled to be sentenced by Judge Preska on January 30, 2024, at 10:00 a.m., and PALATNIK is scheduled to be sentenced by Judge Preska on January 11, 2024, at 11:00 a.m.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. Mr. Williams also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.
The case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Margaret Graham, Adam Hobson, Sarah Mortazavi, and Andrew Thomas are in charge of the prosecution.
Ten New Orleans Residents Indicted for Possession of Vehicles Stolen from Interstate Shipments, Conspiracy, and Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that, on July 28, 2023, the grand jury returned a sealed 20-count indictment against NICKIE WHITLEY, age 35, ERIN MURTHIL, age 21, DARIAL MAYE, age 24, MATHEW MAYE, age 26, MISTER MACKEY, JR., age 21, DESMOND TAYLOR, age 26, NORMAN ANDREWS, age 23, DERRIN RILEY, age 28, JONATHAN FRANK, age 39, and QUINTRELL BROWN, age 19, all residents of New Orleans.
As alleged in the indictment, the defendants possessed, and conspired to possess, eight, new 2023 Ford vehicles stolen from the Norfolk Southern Automotive Distribution Facility in March, 2023. The vehicles were bound for sale at dealerships in Louisiana, Mississippi, and Alabama when stolen from the Facility.
All 10 defendants are charged in Count 1 with conspiracy to possess goods stolen from an interstate shipment—the eight Ford vehicles—in violation of Title 18, United States Code, Section 371. This count carries a maximum term of imprisonment of five years, up to a $250,000 fine, and up to three years of supervised release.
All 10 defendants are also charged variously in Counts 2 through 9 with possession of goods stolen from an interstate shipment, in violation of Title 18, United States Code, Section 659. Each of these counts charges the possession of a specific vehicle stolen from the Facility: a 2023 Ford Explorer ST (Count 2); a 2023 Ford Explorer King Ranch (Count 3); a second 2023 Ford Explorer ST (Count 4); a 2023 Ford Explorer Timberline (Count 5); a 2023 Ford F-150 Raptor Crew Cab 4x4 (Count 6); a 2023 Ford Bronco Sport Outer Banks 4x4 (Count 7); a 2023 Lincoln Aviator (Count 8); and a 2023 Ford F-150 (Count 9). Each of these counts carries a maximum term of imprisonment of ten years, up to a $250,000 fine, and up to three years of supervised release.
MURTHIL is additionally charged in Count 10 with possession of a machinegun, in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2). This count carries a maximum term of imprisonment of ten years, up to a $250,000 fine, and up to three years of supervised release.
WHITLEY, MACKEY, JR., FRANK, and TAYLOR are also charged in Counts 11 through 14, respectively, with one count each, of being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8). Each of these counts carries a maximum term of imprisonment of fifteen years, up to a $250,000 fine, and up to three years of supervised release.
RILEY is charged in Count 15 and ANDREWS is charged in Count 17 with possession with intent to distribute tapentadol and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D). BROWN is charged in Count 19 with possession with intent to distribute tapentadol, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). The penalties for tapentadol are up to twenty years in prison, up to a $1,000,000 fine, and a minimum of three years of supervised release. The penalties for marijuana are up to five years in prison, up to a $250,000 fine, and a minimum of two years of supervised release.
RILEY, ANDREWS, and BROWN are also charged in Counts 16, 18, and 20, respectively, with one count each, of possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i). Each of these counts carries a mandatory minimum sentence of five years up to life imprisonment, which is to run consecutively to all other sentences, up to a $250,000 fine, and up to five years of supervised release.
If convicted, each count also carries a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of each defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the United States Department of Homeland Security, Homeland Security Investigations, the Louisiana State Police, and the New Orleans Police Department. Assistant United States Attorney David Berman of the Violent Crimes Unit is in charge of the prosecution.
Tax Preparer Sentenced to 51 Months in Prison for Preparing at Least 23 Fraudulent ReturnsRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Tuesday sentenced a tax preparer from Jennings, Missouri to 51 months in prison for preparing at least 23 fraudulent tax returns.
Judge Autrey also ordered Darius D. Cobb to pay restitution of $85,584.
Cobb, 52, prepared at least 200 tax returns for the tax years 2017 and 2018. In at least 23 of those, Cobb included false information. He included fake W-2 forms with false wages and withholdings, false Schedule C forms reporting profit or loss from a business even if the taxpayer was not a business owner, false claims for the American Opportunity Credit for educational expenses and false information about dependents.
“Mr. Cobb admitted that he knowingly prepared false returns for others in order to illegally obtain inflated refunds for his clients,” said Assistant Special Agent in Charge Bill Steenson, IRS Criminal Investigation, St. Louis Field Office. “We work alongside our partners in the U.S. Attorney’s Office throughout the year to investigate and prosecute dishonest tax return preparers. Let this be a warning to others who may be thinking about engaging in this type of illicit activity.”
Cobb pleaded guilty in April to two felony counts of aiding in the preparation of a false and fraudulent tax return.
The case was investigated by IRS Criminal Investigations. Assistant U.S. Attorney Jennifer Roy prosecuted the case.
St. Joseph Man Sentenced to 17 Years for Heroin Conspiracy, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A St. Joseph, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute heroin and for illegally possessing firearms.
Roderick A. Hughes, 48, was sentenced by U.S. District Judge Greg Kays to 17 years in federal prison without parole.
On May 27, 2022, Hughes pleaded guilty to participating in a conspiracy to distribute one kilogram or more of heroin in the St. Joseph area from Sept. 1, 2019, to March 26, 2021, and to possessing a firearm in furtherance of a drug-trafficking crime.
According to court documents, Hughes is responsible for distributing at least 461.9 grams of heroin, which is over 4,600 potentially lethal, 0.1-gram “doses” of the drug.
Law enforcement officers executed a search warrant at Hughes’s apartment on Feb. 23, 2021. Officers found a silver revolver on the kitchen table. They also found a loaded Glock 9mm handgun on a nightstand in the bedroom, a Stoeger 9mm handgun and a Jennings Bryco 9mm handgun on a shelf in the bedroom, and a black safe under the bed that contained 23.4 grams of heroin and $4,703 in cash. Officers also searched the garage and found three plastic bags with a total of 96.3 grams of heroin hidden in the rafters.
Co-defendant Franklin T. Hicks Jr., also known as “Frankie,” 42, of St. Joseph, pleaded guilty to the same charges and will be sentenced on Nov. 1, 2023.
Hicks was arrested outside of a hotel in St. Joseph on Jan. 22, 2021. He was in possession of 35.8 grams of heroin and $2,687 in cash. Officers also found a loaded Rock Island Armory .380-caliber handgun under the driver’s seat of his car and a Ruger 9mm handgun in the glovebox.
Co-defendant Harvey E. Johnson, 50, of Kansas City, Mo., pleaded guilty to his role in the heroin-trafficking conspiracy and will be sentenced on Oct. 26, 2023. Johnson, who was in possession of approximately 51 grams of heroin at the time of his arrest, admitted that the drug-trafficking conspiracy involved at least two kilograms of heroin.
This case is being prosecuted by Assistant U.S. Attorney Byron H. Black. It was investigated by the St. Joseph, Mo., Police Department, the Buchanan County, Mo., Sheriff’s Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Self-proclaimed king of Bissonett guilty of sex traffickingRead the Press Release
HOUSTON – A federal jury in Houston has convicted a 47-year-old man of sex trafficking four women by means of force and of taking three women across state lines to engage in prostitution, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for approximately three hours before convicting Larry “Lavish” Lewis following a six-day trial.
Lewis used physical force and coercion to compel four women to engage in commercial sex in the Bissonnet street area of Houston and various cities in Texas and Louisiana. The jury also found he coerced them to cross state lines to engage in prostitution.
At trial, the victims detailed how Lewis recruited them on false promises of good money and a good life. Lewis confiscated the identification cards of two women and tightly controlled access to their hotel rooms. The women were completely dependent on him for food, lodging and basic necessities.
Lewis’ rules dictated where and how long they worked. The women were required to give Lewis all money they earned after commercial sex dates.
The victims detailed the consequences of breaking Lewis’ rules. He kicked one victim in the head into a window because he believed she disrespected him. During another incident, Lewis whipped the same victim with an electrical cord following an attempt to escape using his vehicle. Another victim described how Lewis broke her ribs and left bruises all over her body after receiving many beatings.
The jury ultimately did not believe defense claims that the women sought out Lewis because of his marketing expertise in the commercial sex industry.
U.S. District Chief Judge Randy Crane presided over the trial and set sentencing for Jan. 10, 2024. At that time, Lewis faces up to life in federal prison.
Lewis has been and will remain in custody pending sentencing.
Assistant U.S. Attorneys Sebastian A. Edwards and Christine Lu are prosecuting the case.
Texas Department of Public Safety and the Harris County District Attorney’s Office conducted the investigation with the assistance of the FBI as part of the Human Trafficking Rescue Alliance (HTRA).
HTRA law enforcement includes members of the Houston Police Department, FBI, Homeland Security Investigations, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety, Department of Homeland Security – Office of Inspector General (OIG), Social Security Administration – OIG and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.
Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Saratoga Springs Woman Sentenced for Misappropriating Funds as the Fiduciary to a VeteranRead the Press Release
ALBANY, NEW YORK – JoAnne Natalie, age 65, of Saratoga Springs, New York, was sentenced today to serve 3 months in jail for misappropriating the funds of a veteran as his appointed fiduciary. United States Attorney Carla B. Freedman and Christopher F. Algieri, Special Agent in Charge of the Northeast Field Office for the United States Department of Veterans Affairs (VA) Office of Inspector General, made the announcement.
In previously pleading guilty, Natalie admitted that after being appointed as a fiduciary for a veteran, between September 2019 and January 2021, she stole $50,174.42 of the veteran’s VA benefits by using the benefits, which were deposited into the veteran’s bank account, for her own personal ends. She also admitted to willfully neglecting and failing to submit required accountings to the VA.
United States District Judge Glenn T. Suddaby also sentenced Natalie to 2 years of supervised release, including 3 months of home detention, following her term of incarceration, and ordered her to pay restitution to the estate of the veteran.
The VA Office of Inspector General investigated the case, and Assistant U.S. Attorney Alexander P. Wentworth-Ping prosecuted the case.
This case is part of the Department of Justice’s Elder Justice Initiative. The mission of the Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults. Anyone with information about allegations of attempted fraud involving elders can call the National Elder Fraud Hotline at 1-833-372-8311.
Roane County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Kenneth Alan Paxton II, 58, of Walton, pleaded guilty today to unlawfully engaging in the business of dealing in firearms.
According to court documents and statements made in court, from September 18, 2018 through August 3, 2022, Paxton regularly sold firearms without a Federal Firearms License. Paxton admitted that he advertised his sale of firearms in a local trading publication and earned approximately $25 in net profits for each transaction. Paxton further admitted that he received and carried out requests for specific firearms from individuals and often sold to individuals who didn’t want to have a firearm in their name. Twelve of the firearms Paxton sold were recovered at crimes scenes. Of those 12 firearms, seven were recovered by law enforcement at crime scenes within 16 days of Paxton purchasing them from businesses with a Federal Firearms License.
Paxton is scheduled to be sentenced on January 29, 2024, and faces a maximum penalty of five years in prison, one year of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Alexander A. Redmon is prosecuting 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. 2:23-cr-154.
###
Ohio Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Thomas V. Ratcliff, also known as “Twin,” 31, of South Point, Ohio, pleaded guilty today to possession with intent to distribute methamphetamine.
According to court documents and statements made in court, on November 7, 2022, law enforcement officers arrested Ratcliff at a Marcum Terrace residence in Huntington on an outstanding Wayne County Circuit Court arrest warrant. Following the arrest, officers executed a search warrant of the residence and found approximately 29 grams of methamphetamine, digital scales, and a loaded Hi-Point 9mm pistol. Ratliff admitted that he possessed the methamphetamine and intended to sell it for money.
Ratcliff is scheduled to be sentenced January 22, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Huntington Violent Crime and Drug Task Force, and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Courtney L. Finney is prosecuting 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. 3:23-cr-2.
###
Nigerian National Extradited to Nebraska to Face Fraud Scheme ChargeRead the Press Release
Acting United States Attorney Susan Lehr announced the extradition of Alex Ogunshakin, 40, of Nigeria, to the District of Nebraska on a Conspiracy to Commit Wire Fraud Indictment, filed in August 2019 in Omaha, Nebraska. The Government of the Federal Republic of Nigeria granted the United States’ request for extradition, which was submitted in May 2020. Ogunshakin, a Nigerian national, was arrested in Nigeria and ultimately surrendered to the United States. Ogunshakin had an initial appearance on the Indictment on September 29, 2023. United States Magistrate Judge Michael D. Nelson ordered Ogunshakin remain detained pending trial.
Ogunshakin, who was on the FBI Cyber’s Most Wanted List, is alleged to have participated in a business email compromise (BEC) scheme from January 2015 to September 2016. The BEC scheme defrauded businesses in the District of Nebraska and elsewhere of more than $6 million. According to the indictment, Ogunshakin’s co-conspirators posed as the chief executive officer, president, owner, or other executive of the targeted company. Using e-mail accounts spoofed to make it appear as though they were from the company’s true business executive, Ogunshakin’s co-conspirators directed business employees or recipients of the e-mail to complete wire transfers. The business employees, believing the requests were legitimate, complied with the wire transfer requests and wired the money as instructed by Ogunshakin’s co-conspirators.
It is alleged Ogunshakin provided bank account information to the co-conspirators who sent the fraudulent e-mails, and which directed business employees to wire money to accounts controlled by Ogunshakin and others. These bank accounts largely belonged to victims of internet romance scams, who were instructed by co-conspirators to transfer the funds to other bank accounts.
Some of Ogunshakin’s co-conspirators have already been convicted and sentenced. Adewale Aniyeloye, one of the fraudsters sending the spoofed e-mails to the target business, was sentenced in February 2019 to 96 months’ imprisonment and ordered to pay $1,570,938.05 in restitution. Pelumi Fawehinimi, a bank account facilitator, was sentenced in March 2019 to 72 months’ imprisonment and ordered to pay $1,014,159.60 in restitution. Onome Ijomone, a romance scammer, was sentenced in January 2020 to 60 months’ imprisonment and ordered to pay $508,934.40 in restitution after his successful extradition from Poland. Other co-conspirators remain at large.
FBI Omaha Special Agent in Charge Eugene Kowel said, “Cyber Criminal Alex Ogunshakin worked with other co-conspirators (who remain at large and on the FBI Cyber's Most Wanted fugitive list) to defraud victims in the U.S. of millions of dollars. His indictment, arrest, and extradition should send a message to his co-conspirators and other cyber criminals: The FBI will remain vigilant in their pursuit of criminals both domestic and abroad. Disrupting these cyber criminal groups and their victimization of U.S. persons and businesses is a priority for the FBI, DOJ, and our international law enforcement partners. The FBI wishes to thank its partners in Nigeria, particularly the Economic and Financial Crimes Commission, the Federal Ministry of Justice, and National Central Bureau, Abuja – INTERPOL (Nigeria Police Force), for their past and continued assistance in pursuing those that engage in Business Email Compromise and other fraud schemes.”
This case was investigated by the Federal Bureau of Investigation. The Justice Department’s Office of International Affairs and the Nigerian Ministry of Justice’s Central Authority Unit provided substantial assistance in securing the arrest and extradition of Ogunshakin.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New York Man Admits Role in $127 Million Health Care Fraud and Kickback SchemeRead the Press Release
NEWARK, N.J. – A New York man and owner of a marketing company today admitted his role in conspiracies to commit health care fraud and to pay and receive illegal kickbacks, Attorney for the United States Vikas Khanna announced.
Eric Karlewicz, aka “Anthony Mazza,” 44, of Chestnut Ridge, New York, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
From June 2017 through May 2019, Karlewicz participated in a scheme with durable medical equipment (DME) companies, telemedicine companies, and doctors to submit false claims to health care benefit programs, including Medicare and TRICARE, based on a circular scheme of kickbacks and bribes. Karlewicz controlled a marketing company though which he and his conspirators identified Medicare and TRICARE beneficiaries to target for DME. Employees of the company called the beneficiaries to pressure them to agree to accept DME, frequently consisting of back, shoulder, and knee braces. Karlewicz and his conspirators paid the company’s employees commissions, bonuses, and incentives to encourage them to convince as many beneficiaries as possible to accept DME, regardless of medical necessity.
Karlewicz and his company then paid kickbacks to telemedicine companies, which in turn paid kickbacks to doctors, to obtain doctor’s orders for the DME. The doctors paid by the telemedicine companies signed the orders regardless of medical necessity, often without ever speaking to the patient. Karlewicz and his business partner then steered the doctor’s orders to DME suppliers around the country, with which Karlewicz and his company had additional kickback arrangements. The DME companies submitted claims for reimbursement to health care benefit programs including Medicare and TRICARE, and thereafter sent a portion of the proceeds to Karlewicz and his company as payment for the doctor’s orders generated through the conspiracy. The company received more than $63 million from DME suppliers in exchange for the referrals.
In total, Karlewicz and his conspirators caused the submission of false and fraudulent claims to health care benefit programs totaling more than $127 million for DME. Using proceeds from the scheme, Karlewicz purchased luxury vehicles, including a Ferrari, and Lamborghini, a Bentley, and a BMW.
The kickback conspiracy charge is punishable by a maximum of five years in prison, and the health care fraud conspiracy charge is punishable by a maximum of 10 years in prison; both charges are punishable by a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Feb. 20, 2024.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit and Senior Trial Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit in Newark.
karlewicz.information.pdfNew Orleans Man Pleads Guilty to Violating Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – EDWARD MCMILLAN, age 25, a resident of New Orleans, pleaded guilty on September 27, 2023 before U.S. District Judge Jane T. Milazzo to distributing cocaine base in violation of 21 U.S.C. §§ 841(a)(1) and 846(b)(1)(C).
According to court documents, on February 2, 2022, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives ("ATF") observed MCMILLAN conducting hand-to-hand drug transactions in Metairie, Louisiana. An ATF confidential informant drove to the area to purchase narcotics from MCMILLAN but was flagged down by MCMILLAN's co-defendant, and another individual. The confidential informant purchased 1.1 grams of cocaine base from the co-defendant and the other individual for $150.
On February 9, 2022, the ATF confidential informant completed a purchase of cocaine base from MCMILLAN and the co-defendant in Metairie, Louisiana. The confidential informant asked for $100 of "hard," which MCMILLAN understood to mean crack cocaine also known as cocaine base. MCMILLAN and the co-defendant split the transaction. MCMILLAN provided three rocks of cocaine base and the co-defendant provided two rocks, totaling 0.9 grams, in exchange for $100 from the confidential informant.
MCMILLAN faces a maximum sentence of twenty years in prison, a fine of up to $1,000,000, a minimum of three years of supervised release, and a mandatory special assessment fee of $100.00.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Firearms, Tobacco, and Explosives. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
Nevada Return Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
A Nevada woman pleaded guilty on Friday to assisting in the preparation of false income tax returns.
According to court documents and statements made in court, from 2015 to 2020, Jessica Avras operated a Las Vegas tax preparation business. During that time, Avras prepared and filed false returns that fraudulently reduced the income tax owed and/or inflated the tax refunds due to her clients. Avras routinely reported fictitious businesses that had significant purported losses or reported fabricated deductions, including noncash charitable contributions and sales taxes. Avras admitted that her conduct caused a tax loss to the IRS of approximately $525,000.
Avras is scheduled to be sentenced on Jan. 4, 2024, and faces a maximum penalty of three years in prison. She also faces a period of supervised release and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jason M. Frierson for the District of Nevada made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Thomas Flynn and Samuel Robins of the Tax Division are prosecuting the case.