Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 26 September 2023
Physician and Two Pharmacists Charged for $170M Fraud SchemeRead the Press Release
A 13-count indictment was unsealed today charging two pharmacists and a physician for their roles in a multimillion-dollar health care fraud, kickback, and money laundering scheme.
According to court documents, Shalondria Simpson, 45, of Houston, is a pharmacist who owned and operated two pharmacies in Houston: Advance Pharmacy (Advance) and TruCare Pharmacy (TruCare). Simpson’s twin sister, physician Lashondria Simpson-Camp, 45, of Allen, Texas, allegedly referred prescriptions to Advance and TruCare in exchange for illegal kickbacks and bribes. Shayla Bryant, 38, of Houston, was a pharmacist and Advance and TruCare’s business manager.
Between 2016 and 2022, Simpson, Simpson-Camp, and Bryant allegedly conspired with others to submit false and fraudulent claims to the Department of Labor’s Office of Workers’ Compensation Program (DOL-OWCP), which administered workers’ compensation benefits on behalf of the Federal Employee’s Compensation Act (FECA), for high reimbursing drugs that were often medically unnecessary and induced by kickbacks and bribes. Further, Simpson, Simpson-Camp, Bryant, and others allegedly conspired to pay and receive these kickbacks. Simpson and Bryan allegedly paid illegal kickbacks and bribes, often through shell entities or in cash, directly to physicians like Simpson-Camp, a clinic owner, a medical assistant, and other marketers. In total, Simpson’s pharmacies allegedly submitted approximately $170 million in fraudulent claims to FECA through DOL-OWCP.
To conceal the scheme and disguise its proceeds, Simpson also allegedly conspired to launder the proceeds of the criminal activity through financial transactions greater than $10,000. According to the indictment, after learning of the investigation, Simpson attempted to cover her tracks by converting criminal proceeds to cash, and transferring funds among over ten bank accounts and a cryptocurrency wallet. She also allegedly solicited others’ help in liquidating assets and concealing her ownership and control of those assets.
The indictment charges Simpson, Simpson-Camp, and Bryant with one count of conspiracy to defraud the United States and pay and receive health care kickbacks and one count of conspiracy to commit health care fraud. Simpson is also charged with five counts of paying health care kickbacks, one of which also charges Bryant. The indictment further charges Simpson with conspiracy to launder monetary instruments and five counts of money laundering. If convicted, Simpson, Simpson-Camp, and Bryant each face a maximum penalty of five years in prison for conspiracy to defraud the United States and pay and receive health care kickbacks, and 10 years in prison for conspiracy to commit healthcare fraud. Simpson and Bryant each face a maximum penalty of 10 years in prison for each count of paying health care kickbacks. Simpson faces a maximum penalty of 20 years in prison for conspiracy to launder money instruments and 10 years for each count of money laundering.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas, Special Agent in Charge Jonathan Ulrich of the U.S. Postal Service Office of Inspector General (USPS-OIG), Acting Special Agent in Charge Casey Howard of the Department of Labor Office of Inspector General (DOL-OIG), Acting Special Agent in Charge David L. Martinez of the FBI Houston Field Office, and Special Agent in Charge Kris Raper of the Department of Veterans Affairs Office of Inspector General (VA-OIG) South Central Field Office made the announcement.
The USPS-OIG, DOL-OIG, FBI, and VA-OIG are investigating the case.
Trial Attorneys Devon Helfmeyer and Andrew Tamayo of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Brandon Fyffe for the Southern District of Texas are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New Castle Resident Pleads Guilty to Conspiring to Distribute Cocaine and Cocaine BaseRead the Press Release
PITTSBURGH, PA – Forrest Gilmore pled guilty to conspiring to distribute cocaine and cocaine base, and to distributing cocaine base within 1,000 feet of a school, United States Attorney Eric G. Olshan announced today.
Gilmore, age 28, of New Castle, Pennsylvania, pled guilty before United States District Judge Cathy Bissoon. Judge Bissoon scheduled sentencing to occur on January 29, 2024, at 1:45 p.m.
The law provides for a sentence of at least one year and up to 90 years in prison and a fine of up to $6,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is to be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorneys Benjamin C. Dobkin and Craig W. Haller are prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Attorney General’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania State Police, the Lawrence County Drug Task Force, the Mercer County Drug Task Force, the New Castle Police Department, the Sharon Police Department, the Hermitage Police Department, and the Farrell Police Department led the investigation resulting in the conviction in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Modesto Man Pleads Guilty to Being a Felon in Possession of AmmunitionRead the Press Release
FRESNO, Calif. — Myron Kilgore, 44, of Modesto, pleaded guilty Monday to being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Feb. 2, 2021, Kilgore was arrested in Modesto after a Glock style P80 handgun was discovered under the driver’s side floormat during a search of his vehicle. The handgun was loaded with six rounds of ammunition. Kilgore is a convicted felon and is prohibited from possessing firearms and ammunition.
This case is the product of an investigation by the Federal Bureau of Investigation, the Modesto Police Department, and the Stanislaus County District Attorney’s Office. Assistant U.S. Attorney Chan Hee Chu is prosecuting the case.
Kilgore is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Dec. 18, 2023. Kilgore faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Mexican National Residing in Stockton Pleads Guilty to Heroin and Fentanyl TraffickingRead the Press Release
SACRAMENTO, Calif. — Jose Cruz Ivan Aispuro, 38, a Mexican national residing in Stockton, pleaded guilty today to conspiracy to distribute heroin and fentanyl and distribution of fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between November 2018 and December 2019, Aispuro and co-defendant Frank Guzman, of Stockton, conspired to distribute and possess with intent to distribute heroin and counterfeit pharmaceutical pills containing fentanyl. As part of this conspiracy, Aispuro supplied heroin that Guzman sold to a confidential source and undercover agent on three occasions. Aispuro also supplied 500 counterfeit oxycodone pills containing fentanyl that Guzman sold to the undercover agent on two occasions. Approximately 4.5 kilograms of heroin and $42,066 in cash were seized from Aispuro’s residence. Aispuro has agreed to forfeit the $42,066 to the United States as part of his plea agreement. Approximately 10,000 counterfeit oxycodone pills containing fentanyl and 2.8 kilograms of heroin were seized from Guzman’s residence.
This case is the product of an investigation by the Drug Enforcement Administration with assistance from the U.S. Marshals Service and the San Joaquin Metropolitan Drug Task Force. Assistant U.S. Attorney David W. Spencer is prosecuting the case.
Aispuro is scheduled to be sentenced by U.S. District Judge John A. Mendez on Jan. 9, 2024. Guzman is scheduled to be sentenced on Dec. 12, 2023. Aispuro and Guzman each face a maximum statutory penalty of life in prison and a $10 million fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
McAlester Resident Sentenced for Second Degree MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Crystal Marie Haworth, age 33, of McAlester, Oklahoma, was sentenced to 240 months in prison for Second Degree Murder in Indian Country.
The charges arose from investigations by the Federal Bureau of Investigation, the Oklahoma State Bureau of Investigation, the McAlester Police Department, and the Pittsburg Country Sheriff’s Office.
On September 18, 2023, Haworth pleaded guilty to Second Degree Murder in Indian Country. According to investigators, on July 15, 2020, Haworth stabbed the victim to death at a McAlester residence, drove to the Pittsburg County Sheriff’s Office, waived her Miranda rights, and confessed to the murder.
The crime occurred in Pittsburg County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable David C. Joseph, U.S. District Judge in the United States District Court for the Western District of Louisiana, sitting by appointment, presided over the hearings in Muskogee, Oklahoma. Haworth will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Department of Justice Criminal Division Organized Crime and Gang Section Trial Attorney Christopher Usher and Special Assistant United States Attorney Genevieve Ozark represented the United States at sentencing.
Maryland Man Sentenced to 24 Months in Federal Prison for Federal Firearms ChargesRead the Press Release
Baltimore, Maryland – Judge James K. Bredar yesterday sentenced Elias Nick Costianes, age 44, formerly of Nottingham, Maryland, to 24 months in prison, followed by two years of supervised release, after Costianes’s plea of guilty to possession of firearms and ammunition by an unlawful user of any controlled substance.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, on February 12, 2021, the FBI executed search warrants for Costianes’s residence, his vehicle, and his cellphone. Costianes was taken into custody pursuant to an arrest warrant issued by the U.S. District Court for the District of Columbia. Costianes was advised of his Miranda rights and voluntarily agreed to be interviewed. Costianes told agents that he kept four firearms in cases in the basement. Law enforcement searched the basement and recovered the four firearms described by Costianes: a 9mm pistol; a M&P 15 semi-automatic rifle; a .223 caliber semi-automatic rifle; and a 12-gauge shotgun, as well as thousands of rounds of ammunition, including 9mm, .22 caliber, .223 caliber, and shotgun cartridges. A box containing 100 rounds of 9mm ammunition was also found in the trunk of Costianes’ vehicle. Two of the firearms were semiautomatic and capable of accepting a large-capacity magazine.
As detailed in his plea agreement, during the search, law enforcement also recovered marijuana and four vials containing either testosterone enanthate or testosterone cypionate, both controlled substances. The electronic evidence from Costianes’ phone, including photographs and text message conversations, revealed that Costianes illegally used cocaine, testosterone, and marijuana and that his use of each substance was consistent, prolonged, and recent. Costianes further admitted that he not only purchased cocaine and testosterone for personal use, but that he also conspired to distribute, and did distribute, cocaine and testosterone to others.
United States Attorney Erek L. Barron commended the FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Jeffrey J. Izant and P. Michael Cunningham, who prosecuted the federal case. Mr. Barron also thanked Paralegals Andrew Branigan, and Mark Phares, and Intelligence Research Specialist Angelina Thompson for their assistance.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
# # #
Man with Loaded Firearm at Charlotte Transportation Center Is Sentenced to 10 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Everett Jamal Taite, 30, of Charlotte, to 10 years in prison followed by three years of supervised release for possession of a stolen firearm at the Charlotte Transportation Center, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Brian Mein, Acting Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, joins U.S. Attorney King in making today’s announcement.
According to filed court documents and the sentencing hearing, on October 4, 2022, law enforcement encountered Taite in a public restroom at the Charlotte Transportation Center where they observed him holding a small bag of cocaine. Court records show that when Taite was confronted by law enforcement, he attempted to put the cocaine into his backpack, failed to follow commands of the officer, resisted arrest, struck the officer in the face, and stated that he had a gun. Taite was taken into custody shortly thereafter. In Taite’s waistband, officers found a loaded .45 caliber pistol that had been reported stolen. Taite has previously been convicted in state court of conspiracy to commit common law robbery, two counts of felony breaking and entering, and possession of a firearm by a convicted felon.
On April 17, 2023, Taite pleaded guilty to possession of a stolen firearm. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the ATF for their investigation of the case.
Assistant U.S. Attorney David Kelly of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Man Sentenced to Five Years in Prison for His Role in Wide-Ranging Drug ConspiracyRead the Press Release
BOSTON – A Puerto Rican man was sentenced today in federal court in Worcester for his role in a wide-ranging cocaine trafficking conspiracy.
Abel Rodriguez Rivera, 35, of Ponce, Puerto Rico was sentenced by U.S. Senior District Court Judge Timothy S. Hillman to five years in prison, followed by four years of supervised release. On March 10, 2023, Rivera pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine.
Following a fatal fentanyl overdose in September 2018, an investigation began into a drug trafficking organization in the Fitchburg area. Beginning in July 2019, court authorized interceptions of wire and electronic communications to and from telephones used by members and suppliers of the drug trafficking organization revealed that Torres was a cocaine dealer who supplied cocaine to the drug trafficking organization.
Over the course of the investigation, over 1.8 kilograms of a heroin/fentanyl mixture, over 3.6 kilograms of cocaine, over 50 grams of crack cocaine, a stolen, loaded handgun, drug manufacturing equipment and over $376,000 in U.S. currency were seized.
Torres is the 13th defendant to be sentenced in this case. All 18 defendants have been convicted – either by guilty plea or jury conviction following trial. The remaining convicted defendants are scheduled to be sentenced in October and November 2023.Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police, made the announcement today. The Fitchburg and Lunenburg Police Departments and U.S. Postal Inspection Service provided valuable assistance. Assistant U.S. Attorney Alathea Porter of the Criminal Division prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Los Angeles County Trio Found Guilty of Laundering Target Gift Cards Purchased by Victims of Transnational Fraud RingsRead the Press Release
LOS ANGELES – Three Los Angeles County residents were found guilty by a jury today of scheming to launder the proceeds of scams targeting older adults and other victims who were conned into buying Target gift cards, supposedly to resolve various financial problems.
At the conclusion of a 10-day trial, a jury convicted the three defendants – Blade Bai, 35, of El Monte; Bowen Hu, 28, of Hacienda Heights; and Tairan Shi, 29, of Diamond Bar – of one count of conspiracy to commit money laundering. The jury also found Bai guilty of an additional charge of conspiring to commit money laundering, an offense he committed after being freed on bond in the initial case.
Hu and Shi were remanded into custody immediately after today’s verdict, and Bai has been in custody since February 2022
According to evidence presented at trial, telephone scammers based overseas lied to victims to persuade them to buy one or more Target gift cards to fix nonexistent problems. Some victims received calls from fraudsters posing as law enforcement officers or government employees, who claimed the victims’ identities had been stolen or warrants had been issued for the victims’ arrest, and that money in the form of Target gift cards was necessary to remedy the problems.
Other victims were tricked into responding to tech support emails that purported to be from well-known companies and claimed there were serious problems relating to the victims’ financial accounts that could only be resolved by paying money in the form of Target gift cards.
As a result of the scammers’ lies and misrepresentations, the victims were convinced to buy Target gift cards – often more than one – typically in increments of $500 and to read the card numbers and access codes over the phone to the scam artists.
Bai, Hu and Shi obtained more than 5,000 gift cards from a group of unknown persons in China that called itself the “Magic Lamp” and sold gift card information via the online messenging application WeChat.
The defendants used WeChat to coordinate the distribution of gift cards to “runners,” who used the gift cards at Target stores primarily in Los Angeles and Orange counties to purchase consumer electronics, other gift cards and other items, according to court documents. Through the purchases and other transactions at multiple Target stores, the defendants and their co-conspirators sought to conceal the fact that the gift cards had been originally funded with fraudulent proceeds.
Prosecutors estimate that the defendants laundered more than $2.5 million in gift cards between approximately June 2019 and November 2020.
Bai was arrested on a criminal complaint in this matter in November 2020 and was released on bond. Within days of his release from federal custody, Bai engaged in another money laundering conspiracy involving Target gift cards. Bai offered to introduce an associate to someone who bought merchandise from him, and thereafter asked the associate to help him liquidate approximately $36,000 of Target gift cards. With Bai unwilling to be paid directly for the sale, two accomplices together arranged a deal in which they sold, to the customer, Bai’s gift cards for approximately 90 cents on the dollar.
Law enforcement arrested Bai again in February 2022 on a superseding indictment and he has remained in federal custody since that time.
United States District Judge André Birotte Jr. scheduled a January 26, 2024, sentencing hearing, at which time Bai, Hu and Shi will face a statutory maximum sentence of 20 years in federal prison for each money laundering conspiracy count.
Yan Fu, 60, of Chino Hills, pleaded guilty in September 2022 to one count of conspiracy to commit money laundering. Fu, who was one of the “runners” in this conspiracy, is serving a 20 month-sentence in federal prison. Judge Birotte also ordered Fu to pay $48,073 in restitution.
This case is the product of an investigation by Homeland Security Investigations (HSI) and the FBI. The investigation was conducted under the auspice of HSI Los Angeles’ El Camino Real Financial Crimes Task Force, a multi-agency task force comprised of federal and state investigators focused on financial crimes in Southern California.
The Social Security Administration’s Office of the Inspector General provided substantial assistance during the investigation, as did the following law enforcement agencies: the Brea Police Department; the La Palma Police Department; the Menifee Police Department; the Glynn County (Georgia) Police Department; the Fontana Police Department; the Charlotte-Mecklenburg (North Carolina) Police Department; the Streamwood (Illinois) Police Department; the Cleveland Police Department; the Madera County Sheriff's Office; the New York Police Department; the Norwood (New Jersey) Police Department; the Loudon County (Virginia) Sheriff's Office; the Waukesha County (Wisconsin) Sheriff's Department; the Fremont Police Department; the Marin County Sheriff's Office; the County of Hawaii Police Department; the Henderson (Nevada) Police Department; the Wilmington (Massachusetts) Police Department; the Las Vegas Metropolitan Police Department; the Lewisville (Texas) Police Department; the Gardena Police Department; the Des Moines Police Department; the Cobb County (Georgia) Sheriff`s Department; the Millburn (New Jersey) Police; the Wauwatosa (Wisconsin) Police Department; the San Angelo (Texas) Police Department; the Fairfax City (Virginia) Police Department; and the Virginia Beach Police Department.
Assistant United States Attorney Monica E. Tait of the Major Frauds Section and Justice Department Trial Attorneys Wei Xiang and Meredith Healy of the Civil Division’s Consumer Protection Branch are prosecuting the case.
The United States Attorney’s Office and the Consumer Protection Branch are part of the Transnational Elder Fraud Strike Force, which investigates and prosecutes scams targeting older adults and are run by transnational criminal organizations. These scams include mass mailing, telemarketing, and tech support scams.
If you fall victim to a gift card scam, immediately call the gift card issuer and ask them to freeze the gift card numbers involved – and save your receipt and the gift card. Then, report the crime to the FBI’s Internet Crime Complaint Center at www.ic3.gov, the Federal Trade Commission at https://reportfraud.ftc.gov/#/ or (877) 382-4357, and your local police department.
Lame Deer man admits meth trafficking role in large-scale ring based on Crow Indian ReservationRead the Press Release
BILLNGS — A Lame Deer man admitted on Monday to distributing methamphetamine on the Northern Cheyenne Indian Reservation that he received through a large-scale narcotics trafficking operation based on the Crow Indian Reservation, U.S. Jesse Laslovich said today.
Joseph John Simpson, 49, pleaded guilty to possession with intent to distribute meth. Simpson faces a mandatory minimum of 10 years to life imprisonment, a $10 million fine and at least five years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Simpson was detained pending further proceedings.
In court documents, the government alleged that from May 2022 to July 2023, law enforcement obtained information from multiple sources that Simpson was distributing meth on the Northern Cheyenne Indian Reservation and elsewhere. Simpson was affiliated with a large-scale, multiple-state narcotics trafficking operation centered on multiple properties on the Crow reservation, including one referred to as Spear Siding. Spear Siding was a source of meth for individuals, including Simpson.
The government further alleged that on July 13, a Bureau of Indian Affairs officer in Lame Deer observed a pickup truck that appeared to be stolen and was driven by an individual, later identified as Simpson. The officer pulled behind the truck, but it fled. The truck was stopped, and Simpson was taken into custody. Simpson had meth, a glass pipe and $328 on his person. The officer also observed four firearms and ammunition in the truck. Law enforcement executed a search warrant on the truck and found a duffle bag containing Simpson’s tribal identification card, approximately one pound of meth, a scale caked with possible meth residue, multiple plastic baggies and $305 in cash. Officers also found a submachine gun and a lockbox containing $9,120 in cash and an additional pound of meth.
Assistant U.S. Attorneys are prosecuting the case. The Bureau of Indian Affairs, Drug Enforcement Administration and FBI 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.
XXX
Justice Department Awards $68.19 Million in Grants to Support American Indian and Alaska Native CommunitiesRead the Press Release
The Justice Department announced that it will award $68,196,816 through 88 grants to American Indian and Alaska Native communities to provide services and promote justice for survivors of domestic violence, sexual assault, stalking, and trafficking. The awards are administered through the Office on Violence Against Women (OVW) and will enhance Tribal justice systems, support an array of services for victims of these crimes, and provide training and technical assistance to service providers and Tribal governments. The awards were announced in conjunction with the 5th annual Tribal Governments Program Summit in Jacksonville, Florida.
“For too long, Alaska Native and American Indian communities have endured persistent and disproportionate levels of violence,” said Attorney General Merrick B. Garland. “These grants are another step in the Justice Department’s efforts to work in partnership with Tribes to deliver justice for survivors of domestic violence, sexual assault, stalking, and trafficking, and to help make Tribal communities safer.”
One National Institute of Justice study found that over 80% of American Indian and Alaska Native individuals have experienced violence in their lifetimes. This includes over 56% of women and 27% of men who have experienced sexual violence, and over 55% of women and 43% of men who have experienced physical violence by an intimate partner.
“American Indian and Alaska Native individuals experience unacceptably high rates of violence, which is in many ways a direct reflection of systematic injustice and institutional failures these populations face,” said Associate Attorney General Vanita Gupta. “Through the authority and funding in VAWA 2022, the Justice Department is strengthening our partnerships with more Tribes, supporting communities in holding individuals accountable, and focusing on solutions that center survivors.”
“American Indian and Alaska Native communities know best the unique challenges they face and how best to allocate resources, strengthen prevention efforts, and provide pathways for safety, healing, and justice for survivors,” said OVW Director Rosie Hidalgo. “Today’s grant announcements are a direct result of Tribes, advocates, and survivors who have bravely shared their stories, challenges, recommendations, and leadership. We look forward to continuing our strong partnerships with Tribes and strengthening the collaboration to advance these shared goals.”
Today’s announced grants include:
-
48 grants totaling $39,958,557 under OVW’s Tribal Governments Program to support Tribes in developing strategies to respond to domestic violence, dating violence, sexual assault, stalking, and sex trafficking against Indian women, support survivor safety, and develop education and prevention strategies;
-
20 grants totaling $7,643,760 under the Grants to Tribal Domestic Violence and Sexual Assault Coalitions Program to encourage the development of nonprofit, nongovernmental Tribal domestic violence and sexual assault coalitions;
-
Seven grants totaling $6,450,000 under the Tribal Sexual Assault Services Program to support projects that create, maintain, and expand services for sexual assault survivors provided by Tribes, Tribal organizations, and nonprofits within Tribal lands;
-
Four grants totaling $6 million under the Special Tribal Criminal Jurisdiction Grant Program for Tribal governments to provide support and technical assistance in planning and implementing changes in their criminal justice systems to exercise special criminal jurisdiction and for expenses incurred in exercising the jurisdiction. In addition, OVW will award two grants totaling $3 million under the Special Tribal Criminal Jurisdiction: Targeted Support for Alaska Native Tribes Special Initiative;
-
Five grants totaling $4,149,999 under OVW’s Tribal Special Assistant U.S. Attorney Initiative, which funds the salary, training, travel, and supplies for Tribal prosecutors who are designated as Special Assistant U.S. Attorneys (SAUSAs) to work directly with U.S. Attorney’s Offices in their investigation and prosecution of Indian country domestic violence, sexual assault, dating violence, stalking, and sex trafficking cases; and
Two grants totaling $994,500 under OVW’s National Tribal Clearinghouse on Sexual Assault (NTCSA) initiative to provide training and technical assistance on issues related to sexual assault of American Indian and Alaska Native women.
OVW administers grant programs designed to develop the nation’s capacity to reduce sexual assault, domestic and dating violence, and stalking. Tribal organizations and governments interested in applying for these and other grants are encouraged to visit the OVW website for more details and application guidelines.
Full Award Lists
-
2023 OVW STCJ-Alaska Awards
-
2023 OVW STCJ Awards
-
2023 OVW TSAUSA Awards
-
2023 OVW TSASP Awards
-
2023 OVW Tribal Government Awards
-
2023 OVW Tribal Coalition Awards
-
2023 OVW NTCSA Awards
-
Jury Finds District Man Guilty of Assault with Intent to Kill and Other Charges Stemming from 2019 ShootingRead the Press Release
Defendant Shot Victim as Victim was Leaving the Scene
WASHINGTON – Dominic Copeland, 33, of Washington, D.C., was found guilty on September 21, 2023, of assault with intent to kill while armed, aggravated assault while armed, two counts of possession of a firearm during a crime of violence, and possession of a firearm by a convicted felon. The charges are in connection with a shooting that occurred on April 26, 2019, in the Truxton Circle area of Washington, D.C.
The verdict was announced by U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD). A sentencing hearing is scheduled for November 29, 2023.
According to evidence presented at trial, the victim drove to a local fast-food restaurant after work to meet Copeland. He was then directed to follow Copeland’s car to the area of N Street and First Street NW. Once parked, the victim entered the back seat of the car Copeland was in and handed Copeland money. Copeland took the victim’s money and, after a dispute, told the victim to “take the loss like a champ.” The victim exited and returned to his own car and got in the driver’s seat. Copeland then exited the car he was in, pulled out a handgun, and shot at the victim multiple times. The victim began to drive away but was hit twice in the upper back and crashed into multiple parked cars before finally coming to a rest on the side of the street. MPD officers promptly responded to the scene and found that the victim was unable to physically move because one of the gunshot wounds temporarily paralyzed him. The victim promptly identified his shooter to police as “Dominic,” whom he knew from work and, up to that point, had considered a friend.
Police recovered six fired cartridge casings from the scene. Evidence showed that two bullets entered the victim’s upper back, one of which punctured his lung causing a severe medical emergency that the treating physician declared would have resulted in the victim’s death had he not received medical care. Doctors left the bullets inside the victim’s body after determining that it would cause even more injury to attempt to remove them.
U.S. Attorney Graves and Acting Chief Smith commended the work of those who investigated the case from the MPD. They also expressed appreciation for the assistance provided by the U.S. Marshals Service and acknowledged the efforts of all of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Rachel Forman, Seth Gilmore, Gregory Kimak, and Paul Courtney, Paralegal Specialist Debra McPherson, and Supervisory Paralegal Specialist Renee Prather.
Finally, they commended the work of Assistant U.S. Attorneys Sam Danai and Richard Carlton, who investigated and prosecuted the case.
Haverhill Man Sentenced to Eight Years in Prison for Drug ConspiracyRead the Press Release
BOSTON – A Haverhill man was sentenced yesterday in federal court in Boston for distributing cocaine, methamphetamine and fentanyl and conspiring to distribute fentanyl and cocaine.
Elijah Declet, 26, was sentenced by U.S. District Court Judge Indira Talwani to eight years in prison and four years of supervised release. Declet pleaded guilty on March 29, 2023.
Declet was charged in November 2021 along with 12 others in connection with a large drug conspiracy centering around the Gangster Disciples in Lawrence, Haverhill and Methuen. The investigation, which began in August 2020, intercepted communications between Gangster Disciples’ leaders, members and drug suppliers pertaining to their alleged distribution of fentanyl, cocaine, methamphetamine and Suboxone in Massachusetts, Maine and southern New Hampshire as well as into the Essex County Jail. Calls were intercepted between Declet and other gang members, who conspired to distribute cocaine and fentanyl pills, and on several occasions, Declet distributed cocaine and methamphetamine pills to a cooperating witness.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation; and John E. Mawn, Interim Colonel of the Massachusetts State Police made the announcement. Assistant U.S. Attorney Philip C. Cheng of the Organized Crime & Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is also a 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 Man Sentenced to 9 Years in Federal Prison for Narcotics Distribution and Gun Possession OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that CHRISTOPHER ALAMO, also known as “Tito,” 36, of Hartford, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 108 months of imprisonment, followed by three years of supervised release, for narcotics distribution and firearm possession offenses.
According to court documents and statements made in court, the Drug Enforcement Administration’s Hartford Task Force identified Alamo as a distributor of heroin and cocaine in Connecticut, New York, and elsewhere. Alamo was arrested on January 13, 2021, after a court-authorized search of his residence revealed approximately 13,000 wax folds of fentanyl, more than 300 grams of loose fentanyl, approximately one kilogram of cocaine, quantities of crack cocaine and marijuana, items used to process and package narcotics for street sale, a .40 caliber handgun equipped with a loaded 28-round high-capacity magazine, a separate loaded 50-round “drum” magazine, assorted ammunition, a ballistic vest, and approximately $5,000 in cash.
While Alamo was detained in federal custody awaiting trial, he continued to coordinate the distribution of fentanyl through his wife, Maria Maldonado, as well as Maldonado’s son, Carlos Santiago, Jr., and a drug supplier, Henry DeJesus-Morales. On June 2, 2021, a court-authorized search of Maldonado’s residence, the same residence that was search in January 2021, revealed approximately 71 grams of loose fentanyl, approximately 1,800 wax folds of fentanyl, distribution quantities of marijuana, drug packaging supplies, a loaded pistol, a loaded shotgun, and approximately $13,000 in cash. The same day, a court-authorized search of Alamo’s father’s house revealed approximately $60,000 in U.S. currency and assorted jewelry, which were seized as proceeds of drug trafficking.
Alamo’s criminal history includes multiple felony convictions.
Alamo has been detained since his arrest. On February 7, 2023, he pleaded guilty to possession with intent to distribute controlled substances, and unlawful possession of a firearm by a felon.
Maldonado, Santiago, and DeJesus-Morales pleaded guilty to related charges and were sentenced to prison terms of 24, six, and 44 months, respectively.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, and Windsor Locks Police Departments.
This case was prosecuted by Assistant U.S. Attorney Robert S. Ruff 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.
Guatemalan Citizen Sentenced for Attempted Transport of an AlienRead the Press Release
ALBANY, NEW YORK –Fredi Chanchavac-Del Cid, age 34, a citizen of Guatemala, was sentenced today to time served (more than 6 months in jail) for the attempted transport of another person illegally present in the United States. United States Attorney Carla B. Freedman and Chief Patrol Agent Robert N. Garcia, United States Border Patrol, Swanton Sector, made the announcement.
As part of his guilty plea, Chanchavac-Del Cid admitted that on March 22, 2023, he drove to Franklin County, New York, and just south of the Canadian border Shortly thereafter, a Mexican citizen who had just illegally crossed into the United States from Canada exited the woods along the road and got into Chanchavac-Del Cid’s vehicle. Chanchavac-Del Cid admitted that he expected to be paid for transporting the illegal alien. However, both individuals were arrested by Border Patrol before he could drive the car away, and Chanchavac-Del Cid has been in custody since that time.
Border Patrol investigated this case. Assistant U.S. Attorney Benjamin S. Clark prosecuted the case.
Georgia Woman Pleads Guilty to Nationwide Telemarketing Fraud Scheme Targeting EldersRead the Press Release
MINNEAPOLIS – A Georgia woman has pleaded guilty to her role in a $300 million nationwide telemarketing fraud scheme that targeted elderly and vulnerable victims, announced U.S. Attorney Andrew M. Luger.
According to the defendant’s guilty plea, from 2016 through February 2020, Rita Antoinette Albritton, 59, of Stockbridge, Georgia, knowingly conspired with others to devise a telemarketing scheme that victimized numerous individuals across the United States, many of whom are elderly and vulnerable. Albritton worked as a telemarketer for World Wide Publication Inc., a Georgia-based company involved in fraudulent magazine sales. The company, owned by co-defendant Ronald Coleman, used fraudulent sales scripts to defraud victim-consumers, many of whom were elderly or otherwise vulnerable, out of hundreds or even thousands of dollars. The fraudulent sales scripts were designed to induce consumers, through a series of lies and misrepresentations, into making large or repeat payments. When acting as a telemarketer, Albritton at times used the alias of “Cynthia Alvarez.”
According to the defendant’s guilty plea, among other misrepresentations she made as directed by the scripts, Albritton falsely claimed that the victim-consumers owed a large outstanding balance for existing magazine subscriptions and fraudulently offered to pay off that balance in exchange for a one-time payment of $199.99. In reality, the victim-consumers did not have any existing subscriptions with World Wide Publication, they did not owe the company any outstanding balance, and the company did not have the ability to cancel the victim-consumers’ ongoing magazine subscriptions. In the course of the scheme, Albritton, Coleman, and their co-conspirators defrauded thousands of victims of approximately $1,749,959.
Albritton pleaded guilty yesterday before Judge John R. Tunheim to one count of conspiracy to commit mail fraud. A sentencing hearing has been scheduled for January 23, 2024.
This case is the result of an investigation conducted by the United States Postal Inspection Service and the Federal Bureau of Investigation. Additional assistance was provided by the Treasury Inspector General for Tax Administration (TIGTA) and the Minnesota Attorney General’s Office.
Assistant U.S. Attorneys Harry M. Jacobs, Matthew S. Ebert, Garrett S. Fields, and Melinda A. Williams are prosecuting the case.
Former Clay County Softball Coach Sentenced to 20 Years for Producing and Attempting to Produce Sexually Explicit Images and Videos of ChildrenRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Andrew Lynn Overheul (43, Orange Park) to 20 years in federal prison, followed by a lifetime of supervised release, for production and attempted production of sexually explicit images and videos of children. Overheul had pleaded guilty on June 7, 2023. He has been detained since his arrest on April 20, 2023.
According to court documents, on September 17, 2022, the parent of a 12-year-old child (“MV1”) contacted the Clay County Sheriff’s Office (“CCSO”) to report a complaint that MV1 had made about finding a cellphone recording her changing and using the shower in the bathroom at her softball coach’s house. CCSO responded that night and interviewed the parent and MV1. The parent and MV1 said that they were at Overheul’s home earlier that day for a softball team family party, and that the children had decided to have an impromptu group sleepover at Overheul’s home. Overheul told MV1 she could take a shower in the master bathroom, as another girl was using the shower in his other bathroom.
MV1 spotted a phone on the bathroom counter propped up between two boxes, with the camera facing the shower. Upon closer inspection, MV1 discovered the phone was actively recording and she immediately grabbed the phone and stopped the recording. MV1 reviewed the video and discovered that it depicted her, so she deleted the video, placed the phone back on the counter, and called her parents to pick her up.
MV1’s parent sent a text message to Overheul at 8:17 pm indicating they were on their way to pick up their daughter and would tell Overheul about it when they got there. At 8:44 pm, Overheul responded by text message, “Hey we talked with the girls. No one is addmitting [sic] to playing a joke. The others that were in that bathroom said they saw my phone charging but no other phones.”
After interviewing the parents and MV1, CCSO detectives responded to Overheul’s residence early the next day and conducted a recorded interview in which Overheul acknowledged that he was the only person that used or had access and control of his cellphone. Overheul acknowledged that his phone was in the bathroom and claimed he had placed it there to charge.
Agents obtained a search warrant to search Overheul’s cellphone. During the forensic review, agents found two photos of several minor females on the softball team wearing swimsuits and sitting on the floor in Overheul’s living room, dated September 17, 2022, with a time stamp of 5:36 pm. Forensics also showed that at 7:38 pm a search for “canon remote app” was conducted on Overheul’s phone, and then the Canon Camera Connect app was installed a few seconds later. This app allows a camera to remote shoot with live view imaging of the camera from a smartphone. Forensics also showed a search in the evening of September 17, 2022, in the Google Play Store on Overheul’s phone, for two applications which were downloaded. These apps can be used to delete information from a person’s phone.
On November 18, 2022, Homeland Security Investigations executed a search warrant at Overheul’s residence. Numerous electronic devices were seized. Agents discovered hundreds of photos and videos of minors that appeared to have been taken surreptitiously without their consent.
“This individual, in a position of trust, mentorship, and oversight over children in our community, abused this position in the most heinous of ways and will be held accountable for his despicable actions,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “This is another successful Northeast Florida INTERCEPT Task Force investigation that has stopped another dangerous predator from exploiting the vulnerability of unsuspecting children.”
This case was investigated by the Clay County Sheriff’s Office, Homeland Security Investigations, and the Northeast Florida INTERCEPT Task Force. It was prosecuted by Assistant United States Attorney Ashley Washington.
This case is brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former CHP Officer Sentenced to 10 Years in Prison for Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Timothy Allen Horwath, 53, formerly of Redding, was sentenced today to 10 years and one month in prison, 10 years of supervised release, $53,000 in restitution and a $5,100 special assessment for receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Horwath was serving as a California Highway Patrol officer while, in his nonworking time, he was receiving visual depictions of children engaging in sexually explicit conduct, including children as young as three and four years old being sexually abused by adult males. While released on bond, Horwath violated the court conditions that he not use the internet or a device capable of accessing the internet. Investigators caught Horwath with a home internet subscription and an iPhone that he had used to carry out dozens of WhatsApp encrypted conversations with females, many of which were sexual in nature. Horwath’s bond was revoked following execution of a search warrant that confirmed he was violating his bond conditions.
This case was the product of an investigation by the California Highway Patrol’s Computer Crimes Investigation Unit and the Federal Bureau of Investigation. Assistant U.S. Attorney Christina McCall prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Foreign National Pleads Guilty to Unlawful ReentryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Alejandro Marin-Gutierrez, age 44 and a foreign national, pleaded guilty to one count of Illegal Reentry of Previously Removed Alien.
The Indictment alleged that Marin-Gutierrez, who had been previously convicted of a felony and subsequently removed from the United States, was found again in the United States on or about June 2, 2022.
According to investigators, law enforcement observed and apprehended Marin-Gutierrez at a residence in McAlester, Oklahoma, on June 2, 2022.
The charges arose from an investigation by the Department of Homeland Security—Enforcement and Removal Operations.
The Honorable Judge Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Marin-Gutierrez was remanded to the custody of the U.S. Marshals pending sentencing.
Assistant United States Attorney Benjamin D. Traster represented the United States.
Fifth Defendant in Multi-Agency Drug Trafficking Investigation Sentenced to 120 Months for Attempting to Possess Fentanyl for DistributionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Reginald Jemison, 56, Chicago, Illinois was sentenced today by Chief U.S. District Judge James D. Peterson to 120 months in prison for attempting to possess fentanyl with intent to distribute. Jemison pleaded guilty to this charge on June 8, 2023.
In 2020, federal and state law enforcement agencies collaborated to investigate several known drug traffickers in Dane County, Wisconsin. As part of this investigation, the Wisconsin Department of Justice Division of Criminal Investigation (DCI) learned that an individual in Chicago, later identified as Jemison, coordinated with Andre McClinton to ship a parcel of narcotics to an apartment building in Madison, Wisconsin via the U.S. Mail.
On December 7, 2020, a U.S. Postal Inspector identified the parcel, obtained a federal warrant, and searched the package. Inside, investigators found a vacuum-sealed bag that contained a white substance. The substance weighed approximately 590 grams, and the Wisconsin State Crime Lab determined it tested positive for the presence of fentanyl. DCI agents took custody of the drugs and resealed the parcel for a controlled delivery.
Later on December 7, 2020, investigators delivered the parcel to the address in Madison. Approximately one minute after delivering the parcel, a silver sedan with Illinois license plates pulled up to the building. A male subject exited the front passenger seat, walked towards the building, and took the parcel. Law enforcement arrested the subject, later identified as Jeffrey Kemp, as he put the parcel into the sedan. Officers also arrested the driver of the vehicle, who agents identified as Antonio Dillard.
During post-arrest interviews, Kemp and Dillard admitted that Jemison paid them to pick up the parcel and transport the drugs back to Chicago for distribution.
In sentencing Jemison, Judge Peterson underscored the seriousness of Jemison’s crime. Judge Peterson specifically noted that Jemison attempted to possess a significant amount of dangerous drug that has caused thousands of overdose deaths in the United States.
On May 6, 2022, Judge Peterson sentenced Jeffrey Kemp to 48 months in prison, and on April 1, 2022, Judge Peterson sentenced Antonio Dillard to 24 months in prison for their roles in attempting to possess the fentanyl with intent to distribute. Additionally, Judge Peterson sentenced Andre McClinton on March 23, 2022 to 108 months in prison for conspiring to distribute cocaine and illegally possessing a firearm. On December 9, 2021, Judge Peterson sentenced McClinton’s codefendant Michael C. Henderson to 84 months in prison for conspiring to distribute cocaine.
The charge against Jemison was the result of an investigation conducted by DCI, the Dane County Narcotics Task Force, Drug Enforcement Administration, United States Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Federal Bureau of Investigation. Assistant U.S. Attorney Chadwick M. Elgersma prosecuted this case.
Federal Jury Convicts Tampa Woman of Stealing Department of Veterans Affairs Benefits Intended to Assist Disabled Vets to Return to EmploymentRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Melanie Marshall (38, Tampa), a/k/a Melanie Gutermuth, guilty of theft of government funds. Marshall faces a maximum penalty of 10 years in federal prison. Her sentencing hearing is scheduled for December 14, 2023. Marshall had been indicted on December 19, 2018.
According to evidence presented at trial, Marshall stole from the Department of Veterans Affairs (VA), Vocational Rehabilitation and Employment (VRE) program. Marshall was eligible for the VRE program, which was designed to assist veterans with service-connected disabilities prepare for, find, and keep suitable employment, but lied to her VA Vocational Rehabilitation Counselor (VRC) to continue receiving benefits beyond what had been approved. Marshall signed an Individualized Written Rehabilitation Plan with the stated objective being to complete a Bachelor of Science Degree in Public Health/Health Education. Marshall graduated with her Bachelor of Science in approximately December 2015. However, Marshall failed to report to her VRC that she had completed the program she was approved for – by graduating with her bachelor’s degree – and lied on multiple occasions regarding her progress toward completion of her bachelor’s degree. Marshall also provided fake degree audits to support her repeated lies to the VRC regarding her progress towards her bachelor’s degree. As a result of Marshall’s lies and misrepresentations, the VA paid for classes and issued monthly subsistence allowance payments after she had already completed her approved VRE program. The total loss to the VA was $20,986.92.
“The Veteran Readiness and Employment program provides vital job training, education, and employment accommodations for our nation’s deserving veterans with service-connected disabilities. The VA Office of Inspector General is committed to holding accountable those who would commit fraud against VA’s programs and services,” said Special Agent in Charge David Spilker with the Department of Veterans Affairs Office of Inspector General’s Southeast Field Office. “The VA OIG thanks the U.S. Attorney’s Office and the Social Security Administration OIG for their efforts in this joint investigation.”
This case was investigated by the Department of Veterans Affairs, Office of the Inspector General and the Social Security Administration, Office of the Inspector General. It is being prosecuted by Special Assistant United States Attorney Suzanne Huyler and Assistant United States Attorney Jennifer L. Peresie.
Federal Grand Jury in Paducah Indicts Oklahoma Man for CARES Act FraudRead the Press Release
Paducah, KY – A federal grand jury in Paducah, Kentucky returned an indictment on August 8, 2023, charging an Oklahoma man with one count of conspiracy to commit wire fraud and one count of wire fraud involving the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) financial assistance program.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office, and Special Agent in Charge John McCabe of the United States Army’s Criminal Investigation Division (CID) at Fort Campbell made the announcement.
According to the indictment, between February 2021 and April 29, 2021, Kendarian Quentrell Dixon, 23, of Yukon, Oklahoma, conspired with unnamed persons to file a fraudulent application for a loan from the Paycheck Protection Program (PPP), a financial assistance program established by the CARES Act. At the time, Dixon was a soldier in the United States Army stationed at Fort Campbell, Kentucky. Dixon received $20,833 from the loan, which he transferred to associates and spent on personal expenses.
The Small Business Administration (SBA) PPP loans were designed to provide a direct incentive for small businesses who were in operation on February 15, 2020, to keep their workers on the payroll. PPP loan proceeds were required to be used by the business on certain permissible expenses. Interest and principal on PPP loans could be entirely forgiven if the business spent the loan proceeds on the allowable expenses within a designated period and used a certain percentage of the PPP loan proceeds on payroll expenses.
Dixon made his initial court appearance today before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. If convicted, Dixon faces a maximum sentence of 40 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
The FBI Paducah Satellite Office and the United States Army CID at Fort Campbell are investigating the case.
Assistant United States Attorney Raymond McGee, of the U.S. Attorney’s Paducah Branch Office, is prosecuting the case.
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.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Federal Grand Jury Indicts New Orleans Man for Murdering Two VictimsRead the Press Release
NEW ORLEANS, LOUISIANA – On August 18, 2023, BLAIR TAYLOR, a/k/a “Blood” a New Orleans resident, was charged in a recently unsealed two-count indictment. Both Counts 1 and 2, charged TAYLOR with causing a death through the use of a firearm, pursuant to Title 18, United States Code, Section 924(j)(1), announced U.S. Attorney Duane A. Evans. TAYLOR was arrested on Wednesday, September 20, 2023, in Norwich, Connecticut.
According to the indictment, on or about August l0, 2014, TAYLOR, during and in relation to a drug trafficking crime described as a conspiracy to distribute and to possess with the intent to distribute controlled substances, in violation of Title 21, United States Code, Sections 841 and 846, knowingly used, carried, brandished, and discharged a firearm, during his commission of a violation of Title18, United States Code, Section 924(c), that caused the deaths of two victims. The indictment further alleges that the deaths of these victims, through the use of a firearm, constituted the crime of murder as defined in Title 18, United States Code, Section 1111; all of which violated Title 18, United States Code, Sections 924(j)(1) and 2.
As to each count, TAYLOR faces a maximum term of life imprisonment, up to a $250,000 fine, up to 5 years of supervised release, and a mandatory special assessment fee of $100.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the 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 Federal Bureau of Investigation and the New Orleans Police Department. Assistant United States Attorney Inga Petrovich and Unit Chief Attorney Elizabeth Privitera, both of the Violent Crime Unit, are in charge of the prosecution.
Farrell, Pa Resident Pleads Guilty to Drug TraffickingRead the Press Release
PITTSBURGH, PA – Denzel Williams pled guilty to trafficking fentanyl, heroin, and cocaine base, United States Attorney Eric G. Olshan announced today.
Williams, age 29, of Farrell, Pennsylvania, pled guilty before United States District Judge Cathy Bissoon. Williams pled guilty to conspiring to distribute fentanyl, heroin, and cocaine base, between June 2020 and June 2021. Judge Bissoon scheduled sentencing to occur on January 30, 2024, at 11:00 a.m.
The law provides for a sentence of up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is to be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorneys Benjamin C. Dobkin and Craig W. Haller are prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Attorney General’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania State Police, the Lawrence County Drug Task Force, the Mercer County Drug Task Force, the New Castle Police Department, the Sharon Police Department, the Hermitage Police Department, and the Farrell Police Department led the investigation resulting in the conviction in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
El Departamento de Justicia Logra un Acuerdo de $9 Millones con la Compañía Washington Trust para Resolver Reclamos de Prácticas Discriminatorias en Rhode IslandRead the Press Release
PROVIDENCE, RI – La Oficina del Fiscal Federal para el Distrito de Rhode Island y la División de Derechos Civiles del Departamento de Justicia anunciaron hoy que la Compañía Washington Trust (Washington Trust), el banco comunitario más antiguo del país, acordó pagar $9 millones para resolver las alegaciones de que participó en un patrón o práctica de exclusión financiera (“redlining” en inglés) al marcar vecindarios de mayoría hispana y raza negra en Rhode Island.
“Redlining” es una práctica ilegal en la que los prestamistas evitan brindar servicios de crédito a personas que viven en comunidades de color debido a la raza, el color de piel o el origen nacional de los residentes de esas comunidades.
“Todos los que persiguen el sueño americano tienen derecho a esperar ser tratados con igualdad y dignidad, independientemente de su raza, origen o código postal. Cuando a las comunidades se les niega el acceso a préstamos justos, a las familias se les niega la oportunidad de generar estabilidad y éxito financiero”, dijo el fiscal federal Zachary A. Cunha. “Me complace que, como resultado del arduo trabajo de los abogados de mi oficina y de la División de Derechos Civiles del Departamento, Washington Trust haya acordado tomar medidas específicas y amplias para que servicios de préstamos significativos estén disponibles para todos los habitantes de Rhode Island, independientemente de su raza u origen”.
“Este acuerdo debería enviar un mensaje contundente a los bancos sobre el firme compromiso del Departamento de Justicia de combatir las practicas discriminatorias modernas y garantizar que todos los prestamistas brinden igualdad de acceso a oportunidades de préstamos hipotecarios a las comunidades de color”, dijo la Fiscal General Adjunta Kristen Clarke de la División de Derechos Civiles del Departamento de Justicia. “Esta resolución brindará un alivio fundamental a las comunidades de raza negra e hispanas afectadas, permitiéndoles comprar una casa, conservarla o acceder al valor líquido de su vivienda. Poner fin a las prácticas discriminatorias y brindar ayuda a las comunidades de color afectadas por esta práctica ilegal es un paso necesario en los esfuerzos continuos para reducir la riqueza racial y las brechas en la propiedad de viviendas en todo nuestro país”.
La demanda alega que, desde 2016 hasta al menos 2021, Washington Trust no proporcionó servicios de préstamos hipotecarios a vecindarios de mayoría raza negra e hispana en Rhode Island. La denuncia alega que, a pesar de su expansión en todo el estado de Rhode Island, Washington Trust nunca ha abierto uno de sus bancos en un vecindario de mayoría raza negra e hispana. La demanda alega que Washington Trust dependió de funcionarios de préstamos hipotecarios que trabajaban únicamente en áreas de mayoría raza blanca como fuente principal para generar solicitudes de préstamos, y Washington Trust no capacitó ni incentivó a sus empleados de préstamos ni realizó actividades de divulgación, marketing y publicidad de sus servicios hipotecarios para compensar su falta de bancos y presencia en áreas de mayoría raza negra e hispana. La demanda alega además que, en comparación con Washington Trust, durante el mismo período de seis años, otros bancos recibieron casi cuatro veces más solicitudes de préstamos cada año en vecindarios de mayoría raza negra e hispana en Rhode Island. La demanda también alega que, incluso cuando Washington Trust generó solicitudes de préstamos de áreas de mayoría raza negra e hispana, los propios solicitantes eran desproporcionadamente blancos.
Según la orden de consentimiento propuesta, que está sujeta a la aprobación del tribunal, Washington Trust ha acordado hacer lo siguiente:
- Invertir al menos $7 millones en un fondo de subsidio de préstamos para aumentar el acceso a hipotecas, mejoras del hogar, refinanciamiento de viviendas y préstamos y líneas de crédito sobre el valor líquido de la vivienda para los residentes de vecindarios de mayoría raza negra e hispana en Rhode Island;
- Invertir $1 millón en asociaciones comunitarias para brindar servicios que aumenten el acceso al crédito hipotecario residencial para los residentes de esos vecindarios;
- Invertir $1 millón en publicidad, divulgación, educación financiera del consumidor y asesoramiento crediticio centrado en vecindarios de mayoría raza negra e hispana;
- Abrir dos sucursales nuevas en vecindarios de mayoría raza negra e hispana en Rhode Island; y garantizar que al menos dos oficiales de préstamos hipotecarios se dediquen a prestar servicios a estos vecindarios; y
- Emplear un Director de Préstamos Comunitarios que supervisará el desarrollo continuo de los préstamos en comunidades de color.
Washington Trust también acordó completar una evaluación de las necesidades crediticias de la comunidad, para evaluar e informar sobre su programa de préstamos justos; y capacitar sus empleados sobre las obligaciones del banco según la orden de consentimiento. Washington Trust trabajó en cooperación con el Departamento para resolver y remediar las inquietudes sobre las prácticas discriminatorias que fueron identificadas y acordó resolver este asunto sin litigios impugnados.
En octubre de 2021, el Fiscal General Merrick B. Garland y la Fiscal General Adjunta Kristen Clarke lanzaron la Iniciativa contra la Exclusión Financiera, o “Redlining”, del Departamento de Justicia, un esfuerzo coordinado de aplicación de la ley para abordar esta forma persistente de discriminación contra las comunidades de color. Desde 2021, el departamento ha anunciado nueve casos de exclusión y ha obtenido $98 millones en ayuda para las comunidades de color que han sido víctimas de discriminación crediticia en todo el país.
Puede encontrar una copia de la queja e información sobre la aplicación de préstamos justos por parte del departamento en www.justice.gov/fairhousing. Las personas pueden reportar discriminación crediticia llamando a la línea de información sobre discriminación en vivienda del Departamento de Justicia al 1-833-591-0291 o enviando un informe en línea.
###
washington_trust_branch_locations.pdfDuluth Man Pleads Guilty to Possession of AmmunitionRead the Press Release
MINNEAPOLIS – A Duluth man has pleaded guilty to possession of ammunition as a felon, announced U.S. Attorney Andrew M. Luger.
According to court documents, on July 26, 2021, Jason Lamount Burns, 38, possessed a magazine loaded with 9mm ammunition that Duluth Police Department officers found stored on a shelf in Burns’ bedroom closet while executing a search warrant at his home.
Because Burns has prior felony convictions, he is prohibited under federal law from possessing firearms or ammunition at any time.
Burns pleaded guilty yesterday in U.S. District Court before Judge John R. Tunheim to one count of felon in possession of ammunition. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the Duluth Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Kimberly A. Svendsen is prosecuting the case.
Drug Trafficker Sentenced to 7 Years in Prison for ID Theft and Attempting to Steal Seized Cars from the FBIRead the Press Release
SACRAMENTO, Calif. — Quinten Giovanni Moody, aka Christano Rossi, 39, of Dublin, was sentenced today to seven years in prison for aggravated identity theft, obstruction of justice, and conspiracy to distribute marijuana, U.S. Attorney Phillip A. Talbert announced.
“This defendant committed felonies involving drugs and identity theft, then doubled down by obstructing justice,” said U.S. Attorney Talbert. “After making hundreds of thousands of dollars distributing marijuana across the country and fraudulently claiming unemployment insurance benefits during the coronavirus pandemic, he used phony court documents in a failed attempt to get the FBI to release property seized during the federal investigation. The U.S. Attorney’s Office is committed to hold accountable those who engage in such brazen violations of federal criminal law.”
According to court documents, between June 2017 and June 2022, Moody, co-defendant Myra Boleche Minks, 46, formerly of Roseville, and other co‑conspirators generated hundreds of thousands of dollars by transporting marijuana from California to Georgia, Nevada, Texas, and other locations. Moody and others bought marijuana in California and then transported the marijuana to distributors in other states via couriers and baggage traveling on commercial airplanes and commercial shipping services. Once the marijuana was sold, Moody and others caused the proceeds of the marijuana sales to be returned to them in California by using couriers to travel on commercial airline flights carrying cash, using shipping services to ship cash, and causing others at their direction to deposit cash into bank accounts.
Moody and others also committed unemployment insurance fraud during the COVID-19 pandemic. Beginning in August 2020, Moody, Minks, and co-defendant Jessica Tang, 49, of Sacramento, participated in a scheme to submit fraudulent claims of unemployment benefits through the California Employment Development Department (EDD). As part of this scheme, on Sept. 4, 2020, Moody used a Bank of America debit card in the name of an identity theft victim to make purchases at a Cartier store and Louis Vuitton store in Las Vegas, Nevada.
“Quinten Moody engaged in a scheme to fraudulently obtain unemployment insurance (UI) benefits in the names of identity theft victims in order to purchase luxury jewelry and further his criminal enterprise. Today’s sentencing demonstrates the federal government’s commitment to holding perpetrators of UI fraud accountable for their actions. We commend the FBI and the Project Safe Neighborhoods program for leading this joint investigation,” said Quentin Heiden, Special Agent-in-Charge, U.S. Department of Labor Office of Inspector General, Western Region.
Moody sought to obstruct the investigation into his activities by using faked court documents. As part of the investigation, the United States applied for seizure warrants for a 1969 Chevrolet Camaro and a 1956 Chevrolet pickup that Moody purchased with the proceeds of his criminal activities. On April 15, 2022, personnel from the FBI seized the two vehicles in Georgia pursuant to the seizure warrants issued in the Eastern District of California. The vehicles were transported to the FBI’s Atlanta Field Office for storage. On May 8, 2022, at approximately 9:30 p.m., a flatbed truck from towing company arrived at the FBI’s Atlanta field office. The tow truck driver informed FBI security personnel that he had been directed to retrieve the vehicles from FBI’s custody. The tow truck driver gave FBI security personnel documents, including a document purporting to be an order issued by the Honorable John K. Larkins III, U.S. Magistrate Judge for the Northern District of Georgia. The documents purported to order the U.S. Marshal and the FBI to release the vehicles. The documents, however, were fraudulent and had been created by Moody and Minks for the purpose of fraudulently obtaining custody of the two seized vehicles.
On May 21, 2022, a tow truck from a different towing company arrived at the FBI’s Atlanta field office. Again, the driver presented a fake federal court order purporting to authorize the release of the seized vehicles. The fraudulent federal court documents had been altered from the previous attempt. FBI personnel did not release the vehicles. Shortly before the arrival of the tow truck, a co-conspirator called personnel at the FBI’s Atlanta field office and pretended to be an FBI Special Agent. While in character, the co-conspirator attempted to contact the employees assigned to the gate outside of the field office to facilitate the tow truck gaining access to the FBI property.
Charges are pending against Minks and Tang. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Drug Enforcement Administration, the California Highway Patrol, the Placer County Sheriff’s Office, the Placer County Probation Department, the San Mateo County Sheriff’s Department, the Colma Police Department, the Reno-Tahoe Airport Authority Police Department, the Roseville Police Department, the San Francisco Police Department, the Atlanta Police Department, the U.S. Department of Labor – Office of Inspector General, and the California Employment Development Department. Assistant U.S. Attorneys Justin Lee and Sam Stefanki are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
District Man Sentenced to 51 Months in Prison for Federal Firearms OffensesRead the Press Release
While on Pretrial Release to Obtain Medical Treatment, Defendant Absconded and Was Arrested Later with Second Gun
WASHINGTON – Shahid K. Randolph, 28, of Washington, D.C., was sentenced today to serve 51 months in prison on two federal firearms charges stemming from his possession of loaded handguns on October 21, 2020, and May 1, 2022, in the Anacostia and Washington Highlands neighborhoods of Southeast Washington.
The announcement was made by U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Randolph pleaded guilty on August 4, 2022, in the United States District Court for the District of Columbia, to two counts of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. Randolph subsequently attempted to withdraw his guilty plea but was not permitted to do so. He was sentenced by the Honorable Timothy J. Kelly. Following his prison term, Randolph will be placed on three years of supervised release.
According to court papers, on October 21, 2020, while on routine patrol in the 1900 block of 19th Street Southeast, MPD officers observed Randolph smoking marijuana in the passenger seat of an idling vehicle with heavily tinted windows. When officers approached the vehicle, Randolph leaned forward in an apparent effort to conceal something in his lap. Officers opened the vehicle’s passenger door and recovered a loaded .40 caliber pistol from Randolph’s lap. The firearm had been reported stolen. Randolph was arrested, charged in federal court, and held without bond. In July 2021, while the case was still pending, Randolph was released to home confinement to receive medical treatment in the community. Randolph subsequently cut off his GPS monitor in late December 2021, failed to appear at a January 2022 court hearing, and was a loss of contact. Then, on May 1, 2022, MPD officers were on routine patrol in the 800 block of Yuma Street Southeast when they observed Randolph attempt to obstruct their view of his waistband. Officers approached Randolph, who grabbed his waistband and fled on foot. Officers ultimately apprehended Randolph and recovered a loaded 9mm handgun in his flightpath. That firearm had also been reported stolen. Subsequent DNA analysis linked Randolph to the recovered gun.
Randolph has remained in custody since his May 1, 2022, arrest.
Federal law prohibits Randolph from possessing a firearm because, in 2012, he was convicted of carjacking in the Superior Court of the District of Columbia and sentenced to a term of seven years’ imprisonment. In 2020, Randolph was convicted of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year in the United States District Court for the District of Columbia. He was sentenced in that case by the Honorable Tanya S. Chutkan and was on supervised release at the time of the offenses for which he was sentenced today. Judge Chutkan has scheduled a hearing to revoke Randolph’s supervised release for Monday, October 2, 2023. The sentence imposed today will run consecutive to any sentence imposed by Judge Chutkan.
In announcing the sentence, U.S. Attorney Graves and Acting Chief Smith commended the work of those who investigated the cases from the Metropolitan Police Department. Valuable assistance was provided by the FBI.
The case was prosecuted by Assistant United States Attorneys Paul V. Courtney and Madhu Chugh.
District Man Pleads Guilty to Federal Firearms OffenseRead the Press Release
Defendant Possessed Firearms and Fentanyl with Child in Backseat of Vehicle
WASHINGTON – John Michael Wilcox, 36, of Washington, D.C., pleaded guilty today to a federal firearms charge stemming from his possession of a loaded firearm on July 12, 2022, while driving a vehicle near Nationals Park, announced U.S. Attorney Matthew M. Graves and Chief Jessica M.E. Taylor, of the United States Park Police.
Wilcox pleaded guilty in the United States District Court for the District of Columbia to one count of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. Judge Dabney L. Friedrich scheduled a sentencing hearing for January 9, 2024.
According to court papers, on July 12, 2022, at approximately 10:00 p.m., Wilcox was driving a black SUV with an obstructed Florida dealer tag in violation of District of Columbia law. United States Park Police officers initiated a traffic stop of the vehicle at South Capitol Street and O Street SW, near Nationals Park. As officers approached the vehicle, Wilcox held a military identification card out of the driver’s side window that was determined not to belong to him. While interacting with Wilcox, an officer observed a clear plastic bag containing suspected narcotics protruding from Wilcox’s front shorts pocket. Officers recovered the plastic bag from Wilcox’s pocket, which contained numerous smaller bags, all containing a tan powder that was determined to be fentanyl. Officers also recovered a clear plastic bag, which contained a white, rock-like substance that was determined to be cocaine base. Officers searched the vehicle after removing an adult female from the front passenger seat and a child from the backseat. From the glove compartment, officers recovered a loaded .32 caliber pistol and plastic bags, which contained a pink powder substance determined to be additional fentanyl. Officers also recovered miscellaneous firearms parts from the vehicle, including a .32 caliber firearm slide, barrel, and spring, as well as an assault-style rifle with an obliterated serial number. During the search of the vehicle, Wilcox stated multiple times that everything in the car belonged to him.
On May 17, 2023, following his indictment by a federal grand jury, Wilcox was arrested pursuant to a warrant issued by the United States District Court for the District of Columbia. He has remained in custody ever since.
Federal law prohibits Wilcox from possessing a firearm because he has multiple convictions from the Commonwealth of Virginia for which he was sentenced to terms of imprisonment exceeding one year.
Wilcox faces a maximum sentence of 15 years in prison and up to a $250,000 fine. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentence imposed in this case will be determined by the Court after considering the United States Sentencing Guidelines and other statutory factors.
This case was investigated by the United States Park Police. Valuable assistance was provided by the Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation (FBI).
This case is being prosecuted by Special Assistant United States Attorney Richard Kelley and Assistant United States Attorney Paul V. Courtney.
Dillingham Man Indicted on Federal Cyberstalking, Threat ChargesRead the Press Release
ANCHORAGE, Alaska – A federal grand jury in Alaska returned an indictment charging a Dillingham man with cyberstalking and threatening a Florida County Sheriff.
According to court documents, Joshua Wahl, 31, allegedly threatened Michael Chitwood, the Sheriff of Volusia County, Florida. The threats started after Chitwood held a news conference denouncing individuals who distributed anti-Semitic and pro-Nazi messages. Investigators discovered an online persona linked to Wahl that posted anti-Semitic and anti-law enforcement content.
The defendant’s first alleged threat was sent to Chitwood on March 31, 2023, via email. In the email, the defendant stated he was armed with lasers and explosives and included links to videos showing someone using a laser to burn a hole through a photograph of Chitwood’s face and holding explosives in front of another photograph of Chitwood.
The threats continued with the defendant allegedly posting threats against Chitwood to the online platform known as “4chan” in April 2023. The posts included direct threats to kill or harm Chitwood.
Wahl is charged with one count cyberstalking, in violation of 18 U.S.C. §2261A(2), and four counts transmitting a threat in interstate commerce, in violation of 18 U.S.C. §875(c). The defendant will make his initial federal court appearance on a later date. If convicted, he faces a maximum penalty of 5 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker of the District of Alaska; and Special Agent in Charge Antony Jung of the FBI Anchorage Field Office made the announcement.
The FBI Anchorage Field Office is investigating the case.
Assistant U.S. Attorney Seth Beausang is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Del Rio Man Sentenced to 20 Years in Prison for Exploitation of a ChildRead the Press Release
DEL RIO – A Del Rio man was sentenced today to 20 years in prison for sexual exploitation of a child, followed by eight years of supervision upon release, and ordered to pay a fine of $10,000.
According to court documents, between December 1, 2019, and February 19, 2020, Trever Lloyd Sexton, 29, caused a child victim to engage in sexually explicit conduct to produce child pornography. Sexton also placed a hidden camera in the child’s bathroom, which recorded the victim showering. Forensic analysis of Sexton’s phone revealed a video and photos of himself sexually molesting the child victim along with 37 images depicting child sexual abuse material of other prepubescent children.
“Thanks to the agents of HSI for helping us get another pedophile behind bars and out of our neighborhoods,” said U.S. Attorney Jaime Esparza. “We will continue to work with our law enforcement partners to take predators off the streets.”
“With today’s sentencing, HSI has removed a dangerous child predator from the community,” said Special Agent in Charge, Craig Larrabee, HSI San Antonio. “Preventing and investigating crimes against children is a high priority for HSI. We will continue to dedicate law enforcement resources to identify and bring to justice child predators who traumatize and victimize children."
HSI investigated the case.
Assistant U.S. Attorney Rex G. Beasley along with former Assistant U.S. Attorneys Ben Tonkin and Steven Kam, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
###
Cumberland County Man Sentenced to Two Years in Prison for Possessing Destructive Device and Explosive MaterialsRead the Press Release
CAMDEN, N.J. – A Cumberland County man was sentenced today to 24 months in prison for possessing a destructive device and explosive materials, U.S. Attorney Philip R. Sellinger announced.
Thomas Petronglo, 64, of Vineland, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an indictment charging him with one count of possession of a destructive device and one count of unlawful storage of explosives. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On March 12, 2021, Petronglo was found in possession of one destructive device, a 5 ¾-inch diameter metal can, containing a quantity of an explosive mixture of potassium perchlorate and aluminum, with a fuse sticking out of the device. Petronglo also possessed multiple intact improvised explosive devices and explosive materials at his residence.
In addition to the prison term, Judge Kugler sentenced Petronglo to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Bryan Miller, with the investigation leading to today’s sentencing. He also thanked the Vineland Police Department, the Cumberland County Prosecutor’s Office, and the N.J. State Police for their assistance with the investigation.
The government is represented by Assistant U.S. Attorneys Jeffrey Bender and Joseph McFarlane of the U.S. Attorney’s Office in Camden.
Convicted Felon Indicted for Distribution of Cocaine and Possession of A FirearmRead the Press Release
Tampa, FL - United States Attorney Roger B. Handberg announces the return of an indictment charging Avery Jones-Neal (28, Dunedin) with three counts of distribution of cocaine, one count of possession of cocaine with the intent to distribute it, and one count of possession of a firearm by a convicted felon. If convicted of the narcotics offenses, Jones-Neal faces up to 20 years in prison on each count. If convicted of the firearm offense, Jones-Neal faces up a minimum mandatory penalty of 15 years, up to life, federal prison.
According to the indictment, on July 25, 26, and 31, 2023, Jones-Neal distributed cocaine, and on August 17, 2023, Jones-Neal possessed cocaine with the intent to distribute it. The indictment also alleges that on July 26, 2023, Jones-Neal possessed a Walther, model Uzi, .22 caliber pistol. Jones-Neal has five prior felony including sale or delivery of cocaine on two separate occasions, possession of cocaine on two separate occasions, and sale of alprazolam. As a convicted felon, he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clearwater Police Department. It will be prosecuted by Assistant United States Attorney Samantha Newman.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case 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.
Co-Founder of Global Multimillion-Dollar Cryptocurrency Ponzi Scheme “AirBit Club” Sentenced to 12 Years in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that PABLO RENATO RODRIGUEZ, the co-founder of AirBit Club with GUTEMBERG DOS SANTOS, was sentenced to 12 years in prison for orchestrating the massive global AirBit Club pyramid scheme. RODRIGUEZ and his co-conspirators deceived individuals into investing in AirBit Club, a purported cryptocurrency mining and trading company, and executed a sophisticated money laundering operation to hide their illegal profits pilfered from AirBit Club. RODRIGUEZ’s co-defendants, DOS SANTOS, SCOTT HUGHES, CECILIA MILLAN, and KARINA CHAIREZ have pled guilty and are awaiting sentencing. RODRIGUEZ and his co-defendants collectively have been ordered to forfeit their fraudulent proceeds of AirBit Club, which include seized or restrained assets consisting of U.S. currency, Bitcoin, and real estate currently valued at approximately $100 million. U.S. District Judge George B. Daniels imposed today’s sentence.
U.S. Attorney Damian Williams said: “Rodriguez co-founded and led an international multimillion-dollar pyramid scheme that preyed on mostly unsophisticated investors with false promises that their money was being invested in cryptocurrency trading and mining. Instead of investing on behalf of investors, Rodriguez hid victims’ money in a complex laundering scheme using Bitcoin, an attorney trust account, and international front and shell companies and used victims’ money to line his own pockets. Rodriguez is one of many recent examples of individuals exploiting cryptocurrency to commit fraud, and today’s sentence should deter anyone who may be tempted to defraud others with false promises of cryptocurrency investments.”
According to public court filings and statements made in Court:
RODRIGUEZ and DOS SANTOS co-founded AirBit Club in 2015. They coordinated a scheme in which victim-investors (the “Victims”) were induced to invest in AirBit Club based on the false promise of guaranteed profits in exchange for cash investments in club “memberships” (the “AirBit Club Scheme” or the “Scheme”). AirBit Club, through its founders, RODRIGUEZ and DOS SANTOS, as well as its promoters (the “Promoters”), including MILLAN and CHAIREZ, marketed AirBit Club as a multilevel marketing club in the cryptocurrency industry. Promoters falsely promised Victims that AirBit Club earned returns on cryptocurrency mining and trading and that Victims would earn passive, guaranteed daily returns on any membership purchased.
RODRIGUEZ, DOS SANTOS, HUGHES, MILLAN, and CHAIREZ traveled throughout the United States and around the world to places in Latin America, Asia, and Eastern Europe, where they hosted lavish expos and small community presentations aimed at convincing Victims to purchase AirBit Club memberships. In furtherance of the AirBit Club Scheme, the Victims were fraudulently induced to buy memberships in cash, including in the Southern District of New York. Following a Victim’s investment, a Promoter provided the Victim with access to an online AirBit Club portal to view the purported returns on memberships (the “Online Portal”). While Victims saw “profits” accumulate on their Online Portal, those representations were false; no Bitcoin mining or trading on behalf of Victims in fact took place. Instead, RODRIGUEZ and his co-conspirators enriched themselves and spent Victim money on cars, jewelry, and luxury homes, and financed more extravagant expos to recruit more Victims.
In many instances, as early as 2016, Victims who attempted to withdraw money from the AirBit Club Online Portal and complained to a Promoter were met with excuses, delays, and hidden fees amounting to more than 50% of the Victim’s requested withdrawal, if they were able to make any withdrawal at all. In April 2020, another victim received a notice on the AirBit Club Online Portal that his account was closed – and principal investment lost – due to “execution of financial sustainability Reserve, policy #34 of the AirBit Club Terms and Conditions, due to the economic and financial crisis caused by (COVID-19).” This excuse regarding the COVID-19 pandemic was false.
RODRIGUEZ, DOS SANTOS, HUGHES, CHAIREZ, and MILLAN sought to conceal the AirBit Club Scheme, as well as their respective control of the proceeds of that Scheme, by requesting that Victims purchase memberships in cash, using third-party cryptocurrency brokers, and by laundering the Scheme’s proceeds through several domestic and foreign bank accounts, including an attorney trust account managed by HUGHES (the “Hughes Trust Account”). The Hughes Trust Account was ostensibly intended to maintain custody of HUGHES’s law practice’s client funds. Instead, the Hughes Trust Account was used by RODRIGUEZ, DOS SANTOS, HUGHES, CHAIREZ, and MILLAN to conceal the nature and origin of the AirBit Club Scheme’s illicit proceeds. Through that account, HUGHES directed Victim funds to the personal expenses of RODRIGUEZ, DOS SANTOS, CHAIREZ, MILLAN, and himself, and funded promotional events and sponsorships designed to further promote the AirBit Club Scheme.
Before AirBit Club, RODRIGUEZ and DOS SANTOS were sued by the Securities and Exchange Commission (“SEC”) for perpetrating another pyramid investment scheme known as Vizinova and paid $1.7 million in disgorgement and fines. HUGHES, an attorney licensed to practice law in California, represented RODRIGUEZ and DOS SANTOS in the Vizinova SEC action. HUGHES then aided RODRIGUEZ and DOS SANTOS in perpetrating the AirBit Club Scheme by, among other things, helping to remove negative information about AirBit Club and Vizinova from the internet.
* * *
RODRIGUEZ, 40, of Irvine, California, was also sentenced to three years of supervised release. RODRIGUEZ was further ordered to pay a forfeiture of $65 million and to forfeit various items of property, including: (i) $999,936.22 formerly held in escrow by Insured International Aircraft Title Service LLC for the Gulfstream Jet with Tail Number N370Z and Serial Number 2082; (ii) 1,322.98963846 in BTC seized from various Bitcoin wallets; (iii) $896,483.00 in United States currency seized from RODRIGUEZ’s California residence; (iv) RODRIGUEZ’s residence located at 117 Amber Sky in the City of Irvine, California 92618; (v) various watches and jewelry seized from RODRIGUEZ’s California residence; and (vi) 2,499.997 in BTC seized from various Bitcoin wallets.
DOS SANTOS, 48, of Panama City, Panama, MILLAN, 41, of Greensboro, North Carolina, CHAIREZ, 47, of Modesto, California, and HUGHES, 47, of Newport Beach, California, have pled guilty to charges including wire fraud conspiracy, which carries a maximum potential sentence of 20 years in prison; money laundering conspiracy, which carries a maximum potential sentence of 20 years in prison; and bank fraud conspiracy, which carries a maximum potential sentence of 30 years in prison. MILLAN, CHAIREZ, and HUGHES are scheduled to be sentenced on October 3, 2023. DOS SANTOS is scheduled to be sentenced on October 4, 2023.
Mr. Williams praised the outstanding investigative work of Special Agents from Homeland Security Investigations’ El Dorado Task Force. Mr. Williams further thanked the New York Waterfront Commission for its assistance in the forfeiture process and the attorneys and investigators at the SEC whose expertise and diligence were integral to the development of this investigation.
If you believe you are a victim of the AirBit Club fraud, updated information regarding the case and victims’ rights, as well as contact information for the victim witness coordinator, is available here.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Kiersten A. Fletcher, Samuel L. Raymond, and Cecilia E. Vogel are in charge of the prosecution.
Cleveland Resident Pleads Guilty to Drug TraffickingRead the Press Release
PITTSBURGH, PA – Ravon Crockett pled guilty to committing fentanyl and cocaine trafficking crimes, United States Attorney Eric G. Olshan announced today.
Crockett, age 46, of Cleveland, Ohio, pled guilty before Chief United States District Judge Mark R. Hornak. Crockett pled guilty to (1) conspiring to distribute fentanyl and cocaine between March 2020 and August 2021, and (2) distributing fentanyl and cocaine on November 16, 2020. The sentencing hearing will be scheduled to occur on a date to be determined.
The law provides for a maximum total sentence of up to 40 years in prison and a fine of up to $2,000,000. Under the Under States Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Lawrence County Drug Task Force and the Federal Bureau of Investigation conducted the investigation leading to the conviction in this case.
Citrus Heights Man Pleads Guilty to Possession of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Christopher Campbell, 48, of Citrus Heights, pleaded guilty today to possession of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in February 2023 Campbell engaged in an online chat with an undercover officer whom Campbell believed was a 13-year-old girl. As a result of the conversations, law enforcement search Campbell’s residence and seized his iPad and cellphone, which contained approximately 517 images and 45 videos of child pornography. Law enforcement also searched Campbell’s Mega cloud storage account, which contained approximately 169 videos of child pornography, including depictions of toddlers and other minors engaged in sexually explicit conduct.
This case is the product of an investigation by the Sacramento County Sheriff’s Office with assistance from the Federal Bureau of Investigation and Homeland Security Investigations. Assistant U.S. Attorney Emily G. Sauvageau is prosecuting the case.
Campbell is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Feb. 6, 2024. Campbell faces a mandatory minimum penalty of 10 years in prison, a maximum statutory penalty of 20 years in prison, and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
# # # #
Chicago Man Sentenced to 12 Years for Attempted Enticement of a MinorRead the Press Release
SYRACUSE, NEW YORK – Kevin Couture, age 42, of Chicago, Illinois, was sentenced today to serve 144 months (12 years) in federal prison for attempting to entice and coerce a minor to engage in sexual activity, announced United States Attorney Carla B. Freedman and Alfred Watson, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his previously entered guilty plea, Couture admitted that, between January and February 2022, he exchanged sexually explicit messages online with an undercover officer posing as a 9-year-old child in an attempt to entice the child to engage in sexual acts with him. Couture also admitted that on February 8, 2022, he traveled to a prearranged meeting location in Oneida County, New York, with the intent to engage in sexual acts with the 9-year-old child. Couture was arrested by law enforcement upon arrival at the location.
United States District Judge, Glenn T. Suddaby, also sentenced Couture to a 20-year term of supervised release to begin after he serves his term of imprisonment. Couture also will be required to register as a sex offender upon his release from prison.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state, and local law enforcement agencies. The case was prosecuted by Assistant United States Attorney Adrian S. LaRochelle as 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.
Charlotte Man Is Sentenced to 16+ Years in Prison for Medicaid FraudRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Donald Booker, 57, of Charlotte, to 200 months in prison for his role in a scheme to defraud the North Carolina Medicaid program of more than $11 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Booker was also ordered to pay $11,834,506.27 in restitution to the North Carolina Medicaid program and to pay a $1,000 special assessment. On December 9, 2022, Booker’s co-defendant, Delores Jordan, 55, of Louisville, Kentucky, pleaded guilty for her role in the fraudulent scheme.
Joining U.S. Attorney King in making today’s announcement are Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina, Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, (IRS-CI), Charlotte Field Office, and North Carolina Attorney General Josh Stein, who oversees the North Carolina Medicaid Investigations Division (MID).
“Medicaid is a government-funded program that provides medical services to qualified North Carolinians in need of assistance. It’s not a get-rich-quick money jar for cheats and fraudsters to dip into,” said U.S. Attorney King. “The U.S. Attorney’s Office will hold accountable those who engage in schemes that defraud government programs and deprive important resources from those in real need.”
“North Carolina’s Medicaid program is meant to help the most vulnerable people in our community. Anyone who thinks they can manipulate the system should know the FBI will work tirelessly to make sure they pay dearly,” said FBI Special Agent in Charge DeWitt.
“Individuals abusing and stealing critical funding for Medicaid programs for their own financial benefit will be held accountable,” said Special Agent in Charge Eakins. “Thanks to the financial expertise and diligence of IRS-CI special agents working side-by-side with other federal, state and local law enforcement officers to uncover these schemes, the perpetrators now face the consequences of their actions.”
“When people steal from Medicaid, they’re breaking the law,” said Attorney General Stein. “They’re also taking from the taxpayers and people who need health care services. My office’s Medicaid Investigations Division works with our state and federal partners to hold accountable anyone committing Medicaid fraud.”
According to filed court documents, evidence presented at Booker’s trial evidence, and witness testimony, Booker owned United Diagnostic Laboratories (UDL), a urine toxicology testing laboratory, and United Youth Care Services (UYCS), a company that provided mental health and substance abuse treatment services. Booker’s co-defendant, Delores Jordan, owned Legacy Housing, a housing provider. Trial evidence established that, from January 2016 to August 2019, Booker and his co-conspirators executed a conspiracy to defraud the North Carolina Medicaid program by paying illegal kickbacks to Jordan and other co-conspirators in exchange for urine samples from Medicaid-eligible beneficiaries.
As Jordan previously admitted in court, she and other co-conspirators recruited housing-vulnerable individuals and other Medicaid-eligible beneficiaries for housing and other programs and services. Once enrolled, the beneficiaries were required to submit urine specimens for drug testing as a condition of their participation in the program. The specimens were provided to UDL and UYCS for medically unnecessary urine drug testing. Booker and his co-conspirators paid the recruiters a kickback from UYCS’s NC Medicaid reimbursement on the drug testing. Court records show that Booker and Jordan also executed a conspiracy to launder the proceeds of the kickback and health care fraud conspiracy in order to conceal and disguise the nature and source of UYCS’s illegal kickback payments for drug testing referrals.
On January 10, 2023, a federal jury convicted Booker of conspiracy to commit health care fraud, multiple violations of the Anti-Kickback Statute, money laundering conspiracy, and money laundering. Jordan has pleaded guilty to healthcare fraud conspiracy and money laundering conspiracy and is awaiting sentencing.
The FBI, IRS-CI, and the North Carolina Medicaid Investigations Division investigated the case.
Assistant U.S. Attorneys Graham Billings and Michael Savage of the U.S. Attorney’s Office in Charlotte prosecuted the case.
# # #
Charlotte Doctor Is Found Guilty of Making False Statements in Connection with $5 Million Durable Medical Equipment SchemeRead the Press Release
CHARLOTTE, N.C. – A federal jury has returned a guilty verdict against a Charlotte physician for her role in a durable medical equipment (DME) scheme that defrauded federal benefits programs of more than $5 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Sudipta Mazumder, 47, of Charlotte, was convicted of six counts of making false statements relating to healthcare matters. U.S District Judge Max O. Cogburn Jr. presided over the trial.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tamala E. Miles, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General for the region including North Carolina, join U.S. Attorney King in making today’s announcement.
According to court documents, witness testimony, and evidence presented at trial, during 2019 and 2020, Mazumder was a doctor in Charlotte who worked as an independent contractor for a telemedicine company. During the relevant time frame, Dr. Mazumder signed fraudulent orders for medically unnecessary durable medical equipment for patients insured by the Medicare and TRICARE programs. Trial evidence established that Dr. Mazumder falsely stated in those orders that she was treating the patients for the listed medical conditions and that the braces she ordered were medically necessary.
According to trial evidence and the testimony of witnesses, contrary to the orders she signed, Dr. Mazumder never examined the Medicare and TRICARE beneficiaries. In fact, Dr. Mazumder had little or no interaction with the beneficiaries and made no medical determination whether the devices were medically necessary or the beneficiaries needed the DME. Dr. Mazumder received from the telemedicine company unsigned orders for orthopedic braces for the beneficiaries, which she signed and returned to the telemedicine company in exchange for $20 for each purported assessment that she performed.
Dr. Mazumder remains released on bond. The charge of making false statements relating to healthcare matters carries a maximum penalty of five years in prison and a $250,000 fine, per count. A sentencing date has not been set.
The investigation was handled by the FBI and HHS-OIG with the assistance of the Defense Criminal Investigative Service of the U.S. Department of Defense, Office of the Inspector General.
Assistant U.S. Attorneys Graham Billings and Katherine Armstrong of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Canadian Truck Driver Convicted; Faces 10 to Life for Attempt to Smuggle 50 Kilograms of Cocaine Across BorderRead the Press Release
DETROIT – A Canadian trucker was convicted last week by a federal jury on charges of possessing with the intent to distribute over 50 kilograms of cocaine, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Angie Salazar, Special Agent in Charge of Homeland Security Investigations.
Convicted was Subeg Singh, 30. The three-day trial was held in Detroit before U.S. District Stephen J. Murphy III. Singh has been in custody since his arrest in September 2021.
Evidence presented during the trial showed that Singh tried to drive more than 50 kilograms of cocaine across the US-Canadian border in September 2021 in a commercial truck. But, he was stopped at the Ambassador Bridge by Customs and Border Protection Officers, who discovered the drugs in the trailer.
“Today’s verdict sends a message to drug traffickers and couriers who compromise the security of our borders by attempting to transport narcotics across them,” stated United States Attorney Ison. “This verdict is a result of the hard work of our Customs and Border Protection Officers who intercepted the drugs, and Homeland Security Investigations who investigated the case.”
“HSI relentlessly pursues drug traffickers that exploit international commerce for their illicit gains,” said HSI Detroit Special Agent in Charge Angie M. Salazar. “By thwarting this attempt with our CBP partners, we disrupt the transportation networks that supply drugs to our local communities.”
Given the type and quantity of drugs involved, Singh is facing a mandatory 10-year prison sentence, with a maximum possible sentence of life imprisonment. Sentencing is set for January 9, 2024.
This case was investigated by Customs and Border Protection and Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Robert White and Erin Ramamurthy.
California Man Charged with Trafficking over 70,000 Fentanyl Pills from Mexico into EvansvilleRead the Press Release
EVANSVILLE- A federal grand jury has returned an indictment charging Javier Moreno-Garibaldi, 37, of Salinas, California, with distribution of fentanyl.
According to court documents, in May of 2023, the Drug Enforcement Administration began an investigation into a-Mexico based drug trafficking organization operating in Mexicali, Mexico, trafficking large quantities of fentanyl and methamphetamine. During the investigation, law enforcement officers purchased or intercepted thousands of fentanyl pills shipped or transported by the drug traffickers into Southern Indiana and Western Kentucky.
As part of the investigation, undercover law enforcement officers arranged to purchase 100,000 fentanyl pills and 50 pounds of methamphetamine from a supplier based in Mexicali, Mexico. On August 31, 2023, the Mexican supplier told the undercover officer that his drug courier was leaving from Calexico, California, enroute to Evansville with 50,000 fentanyl pills in exchange for $100,000. The next day the supplier stated that the courier would now be delivering 60,000 pills to an Evansville hotel for $120,000 and a $2,500 delivery fee. For the next three days, the Mexican supplier and the undercover officer exchanged messages about the arrival of the courier and how to handle counting the money and the pills. The supplier indicated that the courier would arrive at the Evansville hotel at 10:00 am on September 4, 2023.
At 10:07 a.m., September 4, 2023, the Mexican supplier told the undercover officer that his courier would be driving a gray Honda, and later provided the courier’s cell phone number. At 10:30 a.m., a gray Honda SUV with California plates arrived at the hotel. At 10:31, the undercover officer called the number the supplier provided for the courier and arranged to meet the courier at the hotel. The undercover officer met the gray Honda in the hotel parking lot, and got into the front seat with the driver, later identified as Javier Moreno-Garibaldi. The undercover officer gave Moreno-Garibaldi the $2,500 delivery fee, and Moreno-Garibaldi stated that the pills were in a dog kennel box in the back seat. Moreno-Garibaldi agreed to go with the undercover officer to a safehouse to count the pills and the $120,000 owed for the drugs. Moreno-Garibaldi put the dog kennel box of pills into the undercover officer’s car and was arrested without incident. A search of the box revealed five separate bags containing a large amount of small blue pills marked “M” on one side and “30” on the other, apparent counterfeit “M-30” pills containing fentanyl. The field weight of the seized pills was 15.7 pounds (7.064 kilograms), or approximately 70,000 pills.
According to the Drug Enforcement Administration, as little as two milligrams of fentanyl can be fatal, depending on a person’s body size, tolerance, and past usage. One kilogram of fentanyl has the potential to kill 500,000 people. Last year, six out of ten illegal fentanyl tablets seized and analyzed by the DEA contained a potentially lethal dose of the drug.
“Fentanyl is such a deadly drug that just one counterfeit pill can be fatal. Every death, overdose, and addition fueled by these fentanyl pills is devastating to our families, neighbors, and friends,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “We know these drugs are flooding into our communities in astonishing quantities because of the Mexican cartels, aided by overseas chemical suppliers and traffickers and dealers nationwide. These criminals act with utter disregard for human life and must be held accountable. Our office will continue to work with our outstanding partners in DEA, Evansville Police Department, Vanderburgh County Drug Task Force, and Owensboro Police Department to prioritize investigation and prosecution of the members of these criminal enterprises.”
The Drug Enforcement Administration, Evansville Police Department, Vanderburgh County Drug Task Force, and Owensboro Police Department investigated this case. If convicted, Moreno-Garibaldi faces up to life in federal prison and a fine of up to $10,000,000. A federal district court judge will determine the actual sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Myers thanked Assistant United States Attorney Lauren M. Wheatley, who is prosecuting this case.
One Pill Can Kill: Avoid pills bought on the street because One Pill Can Kill. Fentanyl has now become the leading cause of death in the United States. Fentanyl is a highly potent opioid that drug dealers dilute with cutting agents to make counterfeit prescription pills that appear to be Oxycodone, Percocet, Xanax, and other drugs. Fake prescription pills laced with fentanyl are usually shaped and colored to look like pills sold at pharmacies. For example, fake prescription pills known as “M30s” imitate Oxycodone obtained from a pharmacy, but when sold on the street the pills routinely contain fentanyl. These pills are usually round tablets and often light blue in color, though they may be in different shapes and a rainbow of colors. They often have “M” and “30” imprinted on opposite sides of the pill. Do not take these or any other pills bought on the street – they are routinely fake and poisonous, and you won’t know until it’s too late.
An indictment or criminal complaint are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Bowling Green Man Sentenced to 15 Years in Federal Prison for Methamphetamine Trafficking and Firearms OffensesRead the Press Release
Bowling Green, KY – A Bowling Green man was sentenced yesterday to 15 years in prison for methamphetamine trafficking and firearms offenses.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Director Tommy Loving of the Bowling Green/Warren County Appalachia High Intensity Drug Trafficking Area (AHIDTA) Drug Task Force made the announcement.
According to court documents, Jimmy Norris, 46, was sentenced to 15 years in prison, followed by a 3-year term of supervised release, for possessing with the intent to distribute 23.456 grams of methamphetamine, illegally possessing a sawed-off shotgun that was not registered under the National Firearms Act, and possessing three handguns, two rifles, and a sawed-off shotgun as a convicted felon. Norris was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses. On August 24, 2016, in Warren Circuit Court, Norris was convicted of first-degree promoting contraband. On August 24, 2016, in Warren Circuit Court, Norris was convicted of first-degree trafficking in a controlled substance. On October 17, 2012, in Warren Circuit Court, Norris was convicted of first-degree wanton endangerment. On September 6, 2006, in the U.S. District Court for the Western District of Kentucky, Norris was convicted of felon in possession of a firearm.
There is no parole in the federal system.
The case was investigated by the ATF Bowling Green Field Office and the Bowling Green/Warren County AHIDTA Drug Task Force.
Assistant U.S. Attorney Mark J. Yurchisin II, of the U.S. Attorney’s Bowling Green Branch Office, 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.
###
Bogue Chitto Man Sentenced to Ten Years in Prison for Shooting at a Law Enforcement OfficerRead the Press Release
Jackson, Miss. – A Bogue Chitto man was sentenced today to ten years in prison for shooting at a law enforcement officer, announced U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Shane Alexander Bell, Jr., 27, used a firearm in furtherance of a crime of violence and fired a handgun at an officer with the Choctaw Police Department. Court documents also revealed that the gunfire resulted in damage to the officer’s home located in the Bogue Chitto Community of the Choctaw Indian Reservation. Fortunately, the officer was unharmed.
The case was investigated by the Choctaw Police Department of the Mississippi Band of Choctaw Indians and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case was prosecuted by Assistant United States Attorney Kevin J. Payne and Special Assistant United States Attorney Brian K. Burns.
Armed Fentanyl and Cocaine Dealer Is Sentenced to 7.5 YearsRead the Press Release
CHARLOTTE, N.C. – George McNeill, 32, of Charlotte, was sentenced today to 90 months in prison followed by four years of supervised release for possession with intent to distribute fentanyl and cocaine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to filed court documents and information presented at the sentencing hearing, in September 2021, law enforcement learned that McNeill was a fentanyl and cocaine trafficker in the Charlotte area. Court records show that law enforcement working with a cooperating individual arranged a meeting with McNeill to buy narcotics. When McNeill arrived in his vehicle at the agreed-upon location, law enforcement moved in to detain him. McNeill sped away from the scene to evade arrest. McNeill eventually crashed his vehicle and then attempted to flee on foot. He was apprehended after a brief foot chase. After McNeill was arrested, law enforcement searched his vehicle and recovered fentanyl, cocaine, drug paraphernalia, and $2,160 in cash. Law enforcement also found a firearm loaded with six rounds of ammunition tucked beneath the center console arm rest. Court records show that McNeill has multiple prior state convictions for drug trafficking.
On April 11, 2023, McNeill pleaded guilty to possession with intent to distribute fentanyl and cocaine. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King credited the Western District’s Organized Crime Drug Enforcement Task Force (OCDETF), and thanked the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Charlotte Mecklenburg Police Department for their investigative efforts.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
Assistant U.S. Attorney Taylor G. Stout of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Arkansas Business Owner Pleads Guilty to Fraudulently Obtaining More than $16.5 Million in COVID Relief FundingRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Tyler Keith Penix, age 37, of Bentonville, Arkansas, formerly known as Tyler Keith Andrews, pled guilty to fraudulently obtaining more than $16.5 million as part of a wide-ranging conspiracy to obtain fraudulent COVID relief funding. United States District Judge Thomas O. Rice accepted Andrews’ guilty plea, and set sentencing for January 11, 2024, at 10 a.m., in Spokane. This conviction is the most recent conviction, and most significant loss amount, announced by the Eastern Washington COVID-19 Fraud Strike Force launched in 2022.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided forgivable loans to eligible small businesses to retain jobs and maintain payroll during the pandemic. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low-interest bridge funding for small businesses placed at risk during the pandemic.
“COVID-19 relief programs quickly ran out of money due to the number of businesses that requested funding, meaning that struggling, deserving small businesses were not able to obtain critically needed funding to keep their businesses afloat during the shutdowns and disruptions caused by the COVID pandemic,” said U.S. Attorney Waldref. “We created the Eastern Washington COVID-19 Fraud Strike Force because it is critical to the strength and safety of our communities that we all work together to combat pandemic-related fraud and bring much-needed accountability to these programs. The Strike Force works to ensure that limited resources are used to protect our local small businesses and the critical jobs and services that they provide for the community.”
In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the U.S. Attorney’s Office, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations (HSI), U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Internal Revenue Service, Department of Energy OIG, Department of Homeland Security (DHS) OIG, Department of Labor OIG, Air Force Office of Special Investigations, and others. Cases investigated and prosecuted by the Strike Force have resulted in numerous indictments and convictions, and have recovered millions of dollars in penalties and restitution for the public.
In the plea agreement accepted by the court, and in information disclosed during court proceedings, Mr. Penix admitted to preparing and submitting dozens of fraudulent applications for PPP and EIDL funding for purported businesses supposedly owned by himself and others. For example, Mr. Penix admitted to preparing two EIDL applications for two purported businesses owned by Spokane resident and co-defendant Yuriy Anishchenko. Through the fraudulent applications prepared by Penix, Anishchenko received more than $300,000 for his two purported businesses, neither of which was an active business at the time of the applications. According to court documents, Anishchenko then shared some of the proceeds with Penix, and referred to Penix more than a dozen additional potential “clients” for which Penix prepared and submitted dozens of additional fraudulent EIDL applications using false information and fraudulent documents, and that Penix shared in the proceeds from many of these as well. Finally, Penix admitted to preparing and submitting numerous false and fraudulent PPP and EIDL applications on behalf of purported businesses owned by him, again using fictitious documentation and false statements. In total, Penix admitted to obtaining more than $3.25 million in PPP and EIDL funding for his own businesses, and another $13.5 million in EIDL funding for Anishchenko and other co-conspirators.
“I commend the stellar investigative work on these cases performed by the Strike Force and especially in this case by SBA OIG, the FBI, and TIGTA,” said U.S. Attorney Waldref. “The extent of Mr. Andrews’s fraud – more than $16 million is staggering. I’m so grateful for the support and collaboration with the U.S. Attorney’s Office for the Western District of Arkansas and the State Department’s Diplomatic Security Service. This was an extensive and wide-ranging conspiracy that required exceptional investigative work and close coordination. We will continue to work with our law enforcement partners to strengthen our communities by protecting our small and local businesses.”
“This guilty plea sends a signal to wrongdoers that evidence of their crimes will be brought to light,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Our Office will remain relentless in the pursuit of fraudsters who sought to exploit SBA’s vital pandemic response programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
“The money these subjects fraudulently received should have benefitted legitimate small businesses during the pandemic,” said Richard A. Collodi, Special Agent in Charge of the FBI Seattle field office. “I’m thankful for the work by members of the COVID Fraud Strike Force and the United States Attorney’s Offices to hold accountable those who would take advantage of disaster funding for their own nefarious purposes. This should serve as an example of the effort and resources law enforcement and prosecutors will leverage to seek justice.”
The charges to which Andrews pled carries a maximum sentence of up to 20 years in federal prison. The cases were investigated by the Eastern Washington COVID Fraud Strike Force, and in particular by SBA-OIG, the FBI, and TIGTA. The U.S. Attorney’s Office for the Western District of Arkansas and Department of State Diplomatic Security Service provided additional assistance and support. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene are prosecuting this case on behalf of the United States.
While Andrews has been adjudged guilty, the Indictment against Anishchenko remains pending. An Indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Case No. 2:22-CR-00057-TOR
Apopka Man Sentenced for Receiving and Possessing Child Sexual Abuse MaterialRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger today sentenced Charles Vincent Yannaccone (52, Apopka) to 12 years and 6 months years in federal prison for receipt and possession of child sexual abuse materials. The court also ordered Yannaccone to forfeit five hard drives, a cellphone, a thumb drive, a computer tower, and a computer with a SD card, which were used to commit the offenses in this case. Yannaccone had entered a guilty plea on June 28, 2023.
According to court documents, Yannaccone downloaded multiple depictions of child sexual abuse materials using a peer-to-peer file sharing platform. During the execution of a search warrant on his home, law enforcement discovered hundreds of depictions of child sexual abuse materials on Yannaccone’s electronic devices.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Courtney D. Richardson-Jones.
This is another case 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.
Monday 25 September 2023
Violent Street Gang Member Sentenced to 15 Years in Prison for Gun CrimesRead the Press Release
A Dallas man who committed an April 2022 drive-by-shooting was sentenced Monday, September 25, 2023 to 15 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Alexandro Mauricio Campos, 27, pleaded guilty in March 2023 to two counts of possession of a firearm by a convicted felon. He was sentenced September 25, 2023 by U.S. District Judge David C. Godbey. Campos is a violent felon, and a member of a violent street gang.
According to court documents, on April 24, 2022 Mansfield Police Officers were dispatched to investigate reports of a drive-by shooting. Once on the scene, officers observed two vehicles riddled with bullets that was parked at the residence. The residence was also shot, and bullets penetrated a child’s bedroom, the laundry room, and the garage. Officers recovered numerous shell casings from the street. An AK-47 firearm was used to shoot the vehicles and the house. Campos’s ex-girlfriend and young child were in the house when it was shot, and Campos had sent his ex-girlfriend threatening text messages before the shooting. A neighbor’s home security camera captured the shooting.
During the investigation, officers learned one of the vehicles hit in the April 24th shooting (which belonged to Campos’s ex-girlfriend) had previously been shot by Mr. Campos. Officers observed bullet holes covered with black electrical tape and learned Mr. Campos was being investigated for the violent attack.
On April 27, 2022, the U.S. Marshal’s North Texas Fugitive Task Force arrested Campos. During the arrest, officers located a large black AK-47 style pistol on the driver’s floorboard where Mr. Campos was seated and a large box of ammunition for the weapon. Ballistic testing confirmed that this firearm was used in the April 24th drive-by shooting.
According to the criminal complaint, Mr. Campos has a 2018 felony conviction for Aggravated Assault with a Deadly Weapon and received a 2-year prison sentence for the offense. Campos, in fact, has a long history of violent behavior directed at women.
Campos was also sentenced for possessing another AK-47 style pistol in Mesquite, Texas, in June 2021.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation with the assistance of the U.S. Marshal’s North Texas Fugitive Task Force, the Mansfield Police Department, and the Mesquite Police Department. Assistant U.S. Attorney Gary Tromblay prosecuted the case.
Vinton Man Admits to Illegal Possession of ExplosivesRead the Press Release
ROANOKE, Va. – A Vinton, Virginia man, who illegally possessed explosives both at his home and at another property in Roanoke County, has pled guilty in federal court.
Robert Wayne Wright, 29, pled guilty earlier this month to one count of possessing an explosive as a convicted felon.
According to court documents, between June 2021 and September 2021, Wright manufactured triperoxide (TATP) on multiple occasions, both at his residence in Vinton and at another property off Branico Drive in South Roanoke County.
TATP is a powerful, highly unstable explosive that can be created using commercially available products.
On October 5, 2021, law enforcement executed a search warrant at Wright’s residence after receiving multiple complaints from neighbors about explosions in rural Roanoke County. During the search, authorities recovered a small amount of unexploded TATP in a blue, plastic container.
At sentencing, Wright faces a maximum statutory penalty of up to 10 years in prison.
United States Attorney Christopher R. Kavanaugh and Craig B. Kailimai, Special Agent in Charge of the Washington Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U. S. Attorneys Andrew Bassford and Michael Baudinet are prosecuting the case for the United States.
Vallejo Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — Raykheem Andrew Guthery, 31, of Vallejo, pleaded guilty today to being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 9, 2022, law enforcement officers conducted a vehicle stop on Guthery for driving a car without license plates. Guthery pretended to be someone else, claimed he was not on parole or probation, and denied being armed. In fact, Guthery was on probation for felony assault and had a firearm loaded with an extended magazine concealed on his person. Officers discovered the firearm during Guthery’s arrest. The firearm was a non-serialized, privately manufactured firearm, known as a “ghost gun.” It was loaded with one round of .40-caliber ammunition in the chamber and another 17 rounds in an extended magazine.
Guthery is prohibited from possessing firearms or ammunition because he has been convicted of at least three felonies, including a 2016 felony conviction for forcible assault likely to cause grave bodily injury. He is also prohibited from possessing firearms or ammunition because he is the subject of a domestic violence protective order issued on April 15, 2021, by the Superior Court of California, Solano County.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Solano County District Attorney’s Office, the Solano County Sheriff’s Office, and the FBI’s Solano County Violent Crimes Task Force. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
Guthery is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Dec. 11, 2023. Guthery faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Two Real Estate Developers Convicted of Conspiring to Embezzle Millions from the Failed Washington Federal Bank in ChicagoRead the Press Release
CHICAGO — A federal jury in Chicago has convicted two real estate developers of participating in a conspiracy that embezzled millions of dollars from the failed Washington Federal Bank for Savings in Chicago.
Washington Federal, which was based in Chicago’s Bridgeport neighborhood, was shut down in 2017 after the Office of the Comptroller of the Currency determined that the bank was insolvent and had at least $66 million in nonperforming loans. For more than a decade, developers MIROSLAW KREJZA and MAREK MATCZUK were part of a conspiracy that embezzled millions of dollars in bank funds. The embezzled funds were disguised as purported real estate development loan disbursements to Krejza, Matczuk, and others. The conspirators were not required to repay these purported loans, and they never did.
Krejza, 65, of Chicago, and Matczuk, 60, of Park Ridge, Ill., were convicted Friday of conspiring to commit embezzlement and falsify bank records, as well as aiding and abetting embezzlement by bank employees. The jury returned the verdicts after a three-week trial in federal court in Chicago. U.S. District Judge Virginia M. Kendall did not immediately set sentencing dates.
The convictions were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Vincent R. Zehme, Special Agent-in-Charge of the Chicago Region of the FDIC’s Office of Inspector General; Machelle L. Jindra, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Andrea Peacock, Special Agent-in-Charge of the Department of the Treasury, Office of Inspector General; Deborah Witzburg, City of Chicago Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General. Valuable assistance was provided by the U.S. Trustee Program and U.S. Customs and Border Protection. The government is represented by Assistant U.S. Attorneys Michelle Petersen, Kristin Pinkston, and Brian Netols, and Special Assistant U.S. Attorney Jeffrey Snell.
The federal investigation into the collapse of Washington Federal led to criminal charges against 16 defendants, including the bank’s Chief Financial Officer, Treasurer, and other high-ranking employees, for conspiring to embezzle at least $31 million in bank funds. Krejza, Matczuk, and two others were convicted after jury trials, while ten defendants pleaded guilty and two entered into deferred prosecution agreements.
Much of the embezzled money was transferred to Chicago attorney ROBERT M. KOWALSKI and other individuals outside the bank without all of the required documentation and often without any documentation whatsoever. A jury earlier this year convicted Robert Kowalski on bankruptcy fraud, bank embezzlement, and false statement charges. His sentencing is set for Jan. 23, 2024. Robert Kowalski’s sister, JAN R. KOWALSKI, also an attorney, pleaded guilty and was sentenced in June to more than three years in prison for fraudulently enabling her brother to conceal more than $357,000 from creditors and the trustee in his bankruptcy case.
Last month, three former members of Washington Federal’s Board of Directors pleaded guilty to conspiring to falsify bank records to deceive the OCC. WILLIAM M. MAHON, GEORGE F. KOZDEMBA, and JANICE M. WESTON will be sentenced in December.
Last year, Chicago attorney PATRICK D. THOMPSON was convicted of making false statements to the Federal Deposit Insurance Corp. regarding the amount of money he received from Washington Federal via a purported loan and other unsecured payments. Thompson was also convicted of filing tax returns in which he falsely deducted interest that he had not actually paid to Washington Federal.