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Tuesday 19 September 2023
California Real Estate Developer Sentenced to Federal Prison for Using Stolen Identities to Obtain Covid-Relief Program FundsRead the Press Release
PORTLAND, Ore.—A California real estate developer was sentenced to federal prison today for using stolen identities to fraudulently obtain more than $1.3 million in loans intended to help small businesses during the COVID-19 pandemic.
Alfred E. Nevis, 53, was sentenced to 70 months in federal prison and three years’ supervised release. Nevis was also ordered to pay more than $1.3 million in restitution to the U.S. Small Business Administration (SBA) and to forfeit another $1.3 million to the United States Treasury.
According to court documents, from April 1, 2020, through at least August 6, 2020, Nevis used the identities of multiple individuals known to him—including current and former employees, business associates, and their spouses—to illegally obtain Economic Injury Disaster Loans (EIDLs) disbursed by the SBA. The EIDL program was one of several economic relief programs originally authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES) passed in March 2020 to provide emergency financial assistance to American employers.
To facilitate his scheme, Nevis used the stolen identities to register straw corporations, obtain Employer Identification Numbers (EINs) from the IRS, and submit loan applications to SBA on behalf of the newly-registered corporations. In one instance, Nevis claimed a straw corporation called Isley Farms, registered in Oregon, had 12 employees and generated more than $725,000 in revenue in a 12-month period ending in January 2020.
Between April 1, 2020, and September 25, 2020, Nevis submitted at least 22 EIDL applications using the stolen identities of at least eight individuals. Together, these applications sought nearly $2.8 million from SBA. By August 2020, Nevis had obtained more than $1.3 million in EIDL payouts and laundered at least $160,000 of his ill-gotten gains.
On May 17, 2022, a federal grand jury in Portland returned an indictment charging Nevis with wire fraud, aggravated identity theft, and money laundering. On May 2, 2023, he pleaded guilty to all three charges.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration (TIGTA), the SBA Office of Inspector General, the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General, and the FBI. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’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.
Business Owner Sentenced for Illegally Tampering with Emissions ControlsRead the Press Release
SPRINGFIELD, Mo. – The owner of a Kirbyville, Mo., towing company was sentenced in federal court today for leading a conspiracy to illegally tamper with the emissions controls of the company’s diesel towing vehicles.
“This business owner intentionally polluted the air in southwest Missouri for more than a decade with massive amounts of cancer-causing toxins in violation of federal law,” said U.S. Attorney Teresa Moore. “He pursued personal profit at the expense of the environment and the health of his neighbors. And he brazenly continued dumping dangerous pollutants into the air, and ultimately into the lungs of everyone in the community, even after pleading guilty and being admonished by the court.”
Dennis Cleveland, 73, was sentenced by U.S. District Judge Stephen R. Bough to two years in federal prison without parole. The court also ordered Cleveland to pay a $255,000 fine.
“The defendant in this case conspired to bypass and disable the emission control equipment on heavy-duty diesel engines,” said Special Agent in Charge Lance Ehrig of EPA’s criminal investigation program in Missouri. “This sentencing demonstrates that EPA will vigorously prosecute those who violate laws designed to protect our communities from harmful air pollution.”
Cleveland is the owner of Affordable Towing, a roadside, recovery, hauling, and mobile repair provider for commercial and private automobiles and vehicles throughout southwest Missouri. Affordable Towing utilized heavy-duty, commercial diesel trucks to tow and haul away vehicles to repair facilities.
On March 9, 2023, Cleveland pleaded guilty to one count of conspiracy to violate the Clean Air Act and one count of tampering with a Clean Air Act monitoring device. Cleveland admitted that, since 2011, he has directed his employees to physically disable emissions control components on multiple heavy-duty diesel tow trucks.
Each one of Cleveland’s 12 illegally altered tow trucks was responsible for releasing the equivalent pollution of 1,140 legally operating tow trucks, according to court documents. If each of these illegally modified tow trucks operated only once a day (which the investigation revealed occurred far more frequently) that would be the equivalent of 13,200 tow trucks that have legal emission systems being operated every day.
Even after being contacted by law enforcement in September 2022, Cleveland continued operating his illegally modified fleet of tow trucks. After pleading guilty, and being warned by the court that continuing such operations would violate federal law as well as his plea agreement, Cleveland never stopped using his illegally modified tow trucks. As a result, Cleveland’s bond was revoked on July 20, 2023, and he has since been detained in federal custody.
Cleveland conspired with Robert Dyche, 67, of Springfield, the owner and operator of Full Flash Tuning, which specializes in illegally tampering with the on-board diagnostic systems on these vehicles. Cleveland caused the Affordable Towing trucks to be tampered with to save money by avoiding maintenance expenses on emissions control systems and by spending less money on fuel.
This tampering is frequently referred to as “tuning” or “flashing” an on-board diagnostic system. One purpose for “tuning” is to allow the vehicles to continue to seemingly operate normally while the emissions control system is disabled, rather than forcing the vehicle’s engine into a state known as “limp mode,” which greatly limits the maximum speed of the vehicle, incentivizing the driver or owner to repair the malfunction. The use of “tuning” thereby serves to reduce the high costs associated with maintaining or repairing components of the emissions control systems on heavy-duty diesel trucks.
As a consequence of “tuning,” tampered vehicles spew substantially more deleterious pollutants such as nitrogen oxides (Nox), carbon monoxide (CO), non-methane hydrocarbons (NMHC), and particulate matter (PM) into the air, presenting a risk to the environment and public health.
Cleveland, through Affordable Towing, contracted with Dyche on multiple occasions to “tune” or “flash” the emissions control systems of Affordable Towing vehicles, thereby causing multiple fleet vehicles to be altered in such a way that the vehicles released pollutants into the air that far exceeded the legally allowable amounts under the Clean Air Act. Each diesel truck would continue to operate normally, as if the vehicle were operating in accord with existing Clean Air Act restrictions, rather than go into limp mode.
In addition to personally tuning Affordable Towing vehicles, Dyche, on multiple occasions, would take the vehicles to an unidentified entity in Rogersville, Mo., to “tune” the vehicles, for which he was compensated by Affordable Towing.
Dyche pleaded guilty on March 13, 2023, to one count of conspiracy to violate the Clean Air Act and awaits sentencing.
These cases are being prosecuted by Assistant U.S. Attorney Patrick Carney. They were investigated by the Environmental Protection Agency.
Burlington Man Sentenced for Drug Trafficking OffensesRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont stated that on September 18, 2023, Kenneth Jackson, 69, of Burlington, Vermont, was sentenced in United States District Court in Burlington, Vermont to serve 48 months in prison after his guilty plea to one count of distribution of fentanyl and one count of possession with intent to distribute cocaine and fentanyl. U.S. District Judge William K. Sessions III also ordered Jackson to serve a five-year term of supervised release and to pay a $200 special assessment.
According to court records and proceedings, in October and November 2022, Kenneth Jackson sold drugs from his car at City Hall Park in Burlington, Vermont. A confidential informant (CI) purchased cocaine, cocaine base, and fentanyl from Jackson on several occasions. Law enforcement arrested Jackson on November 10, 2022. During a search of Jackson incident to his arrest, law enforcement found approximately $1,950. During a search of Jackson’s car, law enforcement found approximately $5,500, fentanyl packaged for sale, cocaine base, and cocaine. Law enforcement also searched Jackson’s residence, during which was found additional amounts of fentanyl and cocaine base, a loaded Rossi .357 caliber revolver under the mattress in Jackson’s bedroom, and materials used to package drugs for sale.
At the sentencing hearing, Judge Sessions noted that he had previously sentenced Jackson for separate drug trafficking offenses that occurred in 1998 and 2007. Judge Sessions further observed that he found as an aggravating circumstance that Jackson “set up shop in public places, including the main city park in Burlington, Vermont,” for the distribution of drugs.
U.S. Attorney Nikolas P. Kerest commended the efforts of the Burlington Police Department, the Drug Enforcement Administration, Homeland Security Investigations, and the Northern Vermont Drug Task Force, in the investigation and prosecution of Jackson.
Assistant U.S. Attorney Barbara A. Masterson handled the prosecution of Jackson. Assistant Federal Public Defender Sara M. Puls represented Jackson.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn.
Bronx Man Sentenced to 38 Years in Prison for 2018 Murder During Which He Shot the Victim’s Five-Year-Old SonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that JOSHUA RODRIGUEZ, a/k/a “Suave,” was sentenced by U.S. District Judge Jed S. Rakoff to 38 years in prison for the fatal shooting of Jaquan Millien on October 23, 2018. RODRIGUEZ shot and killed Millien in the Butler Houses in the Bronx, New York, in connection with a drug dispute. During the shooting, RODRIGUEZ shot Millien’s five-year-old son, who was with his father at the time. Thankfully, Millien’s son survived. RODRIGUEZ was convicted following a five-day trial before Judge Rakoff on June 6, 2023.
U.S. Attorney Damian Williams said: “Inside of a residential building in the Bronx, Joshua Rodriguez targeted, ambushed, and callously murdered Jaquan Millien over a drug dispute. Worse still, Rodriguez shot and wounded Millien’s five-year-old son who was standing next to his father. Millien’s son’s gunshot wound has healed, but the scars from witnessing the brutal murder of his father will last a lifetime. Today’s lengthy sentence is yet another example of this Office’s promise to remain relentless in its prosecution of violent drug dealers.”
According to the evidence presented in court during the trial:
Between in or about 2012 and in or about 2018, JOSHUA RODRIGUEZ conspired with others to sell marijuana in an apartment building located at 1408 Webster Avenue (the “Apartment Building”). In connection with his narcotics dealing, on or about October 23, 2018, RODRIGUEZ followed Jaquan Millien and his son into the Apartment Building after Millien picked up his son from school. RODRIGUEZ cornered Millien and his son in the stairwell and fired multiple shots, killing Millien and hitting Millien’s son in the arm.
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In addition to his prison term, RODRIGUEZ, 31, of the Bronx, New York, was sentenced to five years of supervised release.
Mr. Williams thanked the Federal Bureau of Investigation and the New York City Police Department for their outstanding work on the investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Mathew Andrews, Courtney Heavey, and Jim Ligtenberg are in charge of the prosecution, with the assistance of Paralegal Specialist William Coleman.
Beloit Man Sentenced to 22 ½ Years for Sexual Exploitation of a ChildRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Everett Wescott, 32, of Beloit, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 22 ½ years in federal prison for sexual exploitation of a child. This prison term will be followed by a 25-year term of supervised release. Wescott pleaded guilty to this charge on June 6, 2023.
Law enforcement began their investigation into Wescott after a 15-year-old victim disclosed to police that Wescott began sexually assaulting her when she was 12 years old. The victim detailed that Wescott transported her across state lines in order to have sex with her, and that he recorded himself having sexual intercourse with her using an iPhone. In an interview with FBI, Wescott admitted to the sexual relationship and to recording the sexual encounters.
At sentencing, Judge Conley stated that Wescott’s conduct “could hardly be more sinister” and warranted a lengthy sentence. Judge Conley also noted that the minor was especially vulnerable, which was something Wescott knew and then used to groom the victim.
The charge against Wescott was the result of an investigation conducted by the Beloit Police Department and Federal Bureau of Investigation. Assistant U.S. Attorney Taylor L. Kraus prosecuted this case.
Bay Area Resident Sentenced to 15 Years in Prison for Producing Child Pornography and Engaging in Sex Trafficking of A MinorRead the Press Release
SAN FRANCISCO – Kenneth Orlando Sparks was sentenced to serve 15 years in prison for producing child pornography and for engaging in the sex trafficking of a minor, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp. The sentence was handed down by the Honorable Vince Chhabria, United States District Judge.
A jury convicted Sparks, 37, of Oakland, Calif., of the charges on March 20, 2023. The evidence at trial established that Sparks produced child pornography by recording multiple videos of himself having sex with a minor victim in July 2019. Further, the evidence demonstrated that Sparks engaged in sex trafficking of a minor for his actions enticing, recruiting, and transporting the minor victim to Oakland and San Francisco to engage in commercial sex work on “the Blade” (a generic term used to describe both cities’ commercial sex strips).
Trial evidence demonstrated Sparks had been warned about the minor victim’s age and nevertheless transported her to the Bay Area for commercial sex on three occasions after receiving the warning. Sparks provided the minor accommodation in the Bay Area, offered her advice and instruction while she was working on the Blade, and arranged to transport the minor to and from the Blade to facilitate her ability to engage in commercial sex.
A federal grand jury indicted Sparks on September 29, 2021, charging him with one count each of production of child pornography, in violation of 18 U.S.C. § 2251(a); sex trafficking of a minor, in violation of 18 U.S.C. § 1591(a)(1), (b)(2), (c); coercion and enticement of a minor, in violation of 18 U.S.C. § 2422(b); and receipt of child pornography, in violation of 18 U.S.C. § 2252(a)(2). The government dismissed the receipt of child pornography charge before trial and the jury acquitted Sparks of the enticement charge.
In addition to the prison term, Judge Chhabria ordered Sparks to serve five years of supervised release to begin after the prison term is completed.
Assistant U.S. Attorneys Ilham Hosseini and Alethea Sargent are prosecuting the case with the assistance of Veronica Hernandez and Megan Pagaduan. The prosecution is the result of an investigation by the FBI and San Francisco Police Department.
Atlanta meat market owner pleads guilty to $10 million food stamp fraudRead the Press Release
ATLANTA – Uttam Halder has pleaded guilty to conspiracy to commit wire fraud arising from a $10 million scheme to purchase Supplemental Nutrition Assistance Program benefits from low-income recipients. After his arrest, Halder became a fugitive and attempted to flee to Istanbul, where he was apprehended by foreign authorities.
“The defendant exploited a program designed to provide nutritional assistance for needy citizens by enabling stores to pay cash to customers to redeem their food stamp benefits,” said U.S. Attorney Ryan K. Buchanan. “His actions diverted millions of dollars in taxpayer funds for his personal gain. He also tried to evade the consequences of his actions by escaping abroad but was captured and arrested with the assistance of our international law enforcement partners.”
“This investigation and prosecution should send a strong zero-tolerance message to those individuals engaged in the practice of defrauding the taxpayer through SNAP,” said Miles Davis, Special Agent-in-Charge, USDA-Office of Inspector General. “It should also serve as a warning to all stores that participate in the SNAP program as vendors that fraud and trafficking (purchasing those benefits for cash and the sharing of Point-of-Sale terminals) will be vigorously investigated and prosecuted by the USDA-OIG, the U.S. Attorney's Office, and all its federal, state, and local partners that have a stake in ensuring that fraud is eliminated from taxpayer-funded programs.”
“Halder thought that his scheme to defraud the government and his attempt to evade prosecution would be successful, but thanks to HSI and its law enforcement partners, both here and abroad, he was sadly mistaken,” said HSI Atlanta acting Special Agent in Charge Travis Pickard, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Crime does not pay is the lesson we want others, contemplating scams, to take from this case and change their minds.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Uttam Halder owned and operated a small meat market in Atlanta called Big Daddy’s Discount Meat (“Big Daddy’s”). Halder enrolled Big Daddy’s as a retailer for the USDA’s Supplemental Nutrition Assistance Program (“SNAP”) in 2014. SNAP, formerly known as the Food Stamp Program, is designed to alleviate hunger among low-income families by providing benefits on Electronic Benefit Transfer (“EBT”) cards that can be exchanged for eligible food items.
Between 2015 and 2020, Halder loaned his EBT terminals to two stores, Food World and Big Brother Mini Supermarket, contrary to SNAP rules. Co-conspirator Paltu Roy, the operator of Big Brother Mini Supermarket, and another co-conspirator who operated Food World agreed to share profits with Halder from Big Daddy’s terminals used illegally at those stores. After receiving Big Daddy’s EBT terminals, both stores made cash payments to customers in return for redeeming their SNAP benefits at the rate of roughly 50 cents on the dollar. During this six-year period, Big Daddy’s terminals collected more than $10 million in fraudulent redemptions of SNAP benefits, and Halder shared a substantial portion of the profits.
Following his arrest in January 2021, Halder was released on bond. Contrary to his bond conditions, Halder fled and became a fugitive in late 2022. In June 2023, foreign authorities in Turkey located Halder when he attempted to enter Istanbul from Cancun, Mexico with a fake passport. Halder was returned to the United States and placed into custody.
Uttam Halder, 42, of Decatur, Georgia, pleaded guilty to one count of conspiracy to commit wire fraud and one count of failure to appear. The sentencing is scheduled for January 30, 2024, before U.S. District Court Judge Michael L. Brown.
His co-conspirator, Paltu Roy, 51, of Stone Mountain, Georgia, pleaded guilty to one count of conspiracy to commit wire fraud on December 9, 2021. Judge Brown sentenced Roy on April 20, 2022, to three years and one month in prison, three years of supervised release, and a special assessment of $100 and ordered him to pay $3,071,235 in restitution to the USDA.
This case is being investigated by the U.S. Department of Agriculture, Office of Inspector General and Homeland Security Investigations.
Assistant U.S. Attorney Nathan P. Kitchens is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Athens, Georgia, Career Offender Sentenced to Prison for Federal CrimesRead the Press Release
ATHENS, Ga. – A federal career offender with a lengthy criminal history in the Athens community to include multiple aggravated assault and controlled substance convictions was sentenced to serve 18 years in federal prison this week after he admitted to drug trafficking charges.
Wayne L. McKinley, 36, of Athens, was sentenced as a career offender to serve 220 months in prison to be followed by five years of supervised release after he pleaded guilty to one count of distribution of heroin and one count of distribution of cocaine before U.S. District Judge C. Ashley Royal on Sept. 18. McKinley is not eligible for parole.
“Federal prosecutors will not turn a blind eye to repeat criminal activity by violent offenders in Athens or elsewhere in the Middle District of Georgia,” said U.S. Attorney Peter D. Leary. “Our office will continue to collaborate with local law enforcement to hold repeat criminals accountable for their continued crimes.”
“Repeat offenders pose serious threats to public safety in our communities,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “McKinley’s history of continued criminal activity demonstrates his lack of concern for the welfare of others and his disregard for the law.”
According to court documents, FBI confidential informants contacted McKinley to purchase heroin and cocaine from him in May 2016. The informants agreed to meet McKinley at an apartment complex on Fourth Street in Athens. Under surveillance, McKinley sold the illegal drugs to the informants, and was taken into custody.
McKinley has prior criminal convictions in the Athens-Clarke County community for aggravated assault, distribution of controlled substances, possession of a firearm during the commission of a felony, robbery by sudden snatching, terroristic threats and criminal trespassing.
This case was investigated by the FBI Middle Georgia Safe Streets Gang Task Force, the Northeast Georgia Regional Drug Task Force and the Athens-Clarke County Police Department. Assistant U.S. Attorney Mike Morrison prosecuted the case for the Government.
Anchorage Man Sentenced to 14 Years for Trafficking Fentanyl, MethRead the Press Release
FAIRBANKS, Alaska – An Anchorage man was sentenced on Sept. 5 to 14 years in prison for distributing large quantities of controlled substances in Alaska.
According to court documents, Darrell Latory Moss Sr, 45, sold over 1,300 grams of methamphetamine and 100 fake prescription pills containing fentanyl over a three-month period.
The defendant was arrested in Bethel, Alaska, in March 2023. The defendant pleaded guilty to one count of distributing a controlled substance, in violation of 21 U.S.C.§841(a)(1). Moss was sentenced to 14 years in federal prison, five years’ supervised release, and he is required to forfeit two vehicles and over $8,500 cash.
”Mr. Moss’s sentence brings us another step closer in our efforts to keep Alaskans safe,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Drugs are affecting communities and villages large and small and create serious public safety issues. Our office will continue to prioritize working with our Federal, State and local law enforcement partners to identify, investigate and prosecute people who choose to push dangerous drugs out into our communities. Their actions will not be tolerated.”
“This defendant sought to financially gain from distributing dangerous drugs, including deadly fentanyl pills disguised as oxycodone pills, at the expense of Alaska’s communities,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “This sentencing ensures accountability for those crimes, and is a result of law enforcement partnerships across Alaska working to keep illicit drugs out of our communities.”
The FBI Anchorage Field Office, with assistance from the Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), IRS Criminal Investigation, Alaska State Troopers, Anchorage High Intensity Drug Trafficking Area (HIDTA) team, Fairbanks HIDTA team and Mat-Su Valley HIDTA team investigated the case.
Assistant U.S. Attorney Carly Vosacek and former Assistant U.S. Attorney Ryan Tansey prosecuted the case.
This investigation and prosecution were part of the Organized Crime Drug Enforcement Task Force (“OCDETF”), which identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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ATM Machine Heists Land Four Individuals in Federal PrisonRead the Press Release
Orlando, Florida – United States District Judge Roy B. Dalton, Jr. has sentenced the remaining four defendants in a series of bank ATM machine thefts. Each of the individuals previously pleaded guilty to bank burglary for their role in the thefts, which targeted five banks in Central Florida and resulted in $593,650 being stolen and over $100,000 in damages to the five ATM machines. Details for the four defendants are listed below:
Name
Date of Plea
Sentencing Date
Sentence Imposed
Deontrae Walden
(23, Orlando)
1/18/23
9/18/23
3 years, 6 months
Aqunis Green
(24, Houston, TX)
5/18/23
9/18/23
18 months, consecutive to 46 months imposed on related case in Texas
Carlos Tawan Reed, Jr. (23, Orlando)
11/28/22
3/6/23
4 years, 3 months
Wendell Harp
(24, Orlando)
12/16/22
4/11/23
2 years, 6 months
According to court records, Walden, Green, Reed, and Harp engaged in a spree of ATM burglaries at five Chase Bank locations in the Orlando area. During each of the burglaries, the men used a stolen pickup truck and attach chains to rip the casing from the ATM machines and steal the cash boxes inside.
In October 2022, Green came to Orlando and showed Walden how to commit the first two offenses. Together they stole $104,000 from a bank ATM on East Colonial Drive in Orlando on October 26, 2021, and $158,000 from a bank ATM on Conroy Road in Windermere on November 11, 2021. Green is currently serving a 46-month federal sentence for similar conduct in the Eastern District of Texas. His 18-month sentence has been ordered to run consecutive to that previous sentence in Texas.
On November 14 and December 18, 2021, Walden burglarized two more bank ATMs. During the November 14 offense, Walden stole $108,140 from the bank on South Semoran Boulevard in Orlando. During the December 18 burglary, Walden netted $107,180 from the bank on SR 436 in Casselberry.
In the fifth heist on May 26, 2022, Walden recruited Reed and Harp to help him burglarize the ATM located on East Colonial Drive in Orlando. They stole $116,650 but were caught by law enforcement officers who were surveilling them. Deputies from the Orange County Sheriff’s Office had pursued them on the ground and from the air. Reed failed to stop and led police on a high-speed chase, which ended when deputies deployed spike strips and disabled the car. Reed, Harp, and Walden bailed from the car and attempted to flee on foot but were quickly apprehended. The deputies recovered the stolen money from the fifth burglary from the vehicle.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Orange County Sheriff’s Office, the Orlando Police Department, the Casselberry Police Department, and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael P. Felicetta.
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.
Monday 18 September 2023
Woodbridge Residents Ordered to Pay $336,356 for Defrauding the Paycheck Protection ProgramRead the Press Release
ALEXANDRIA, Va. – On September 7, the U.S. District Court for the Eastern District of Virginia entered a judgment that ordered Bernice Suppey, 40, and Kwaku Adubofour, 42, of Woodbridge, to pay $336,356 based on their fraudulent applications for multiple loans through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP).
“The Paycheck Protection Program has been a critical lifeline to small businesses and workers during the COVID-19 crisis,” said U.S. Attorney Jessica D. Aber. “EDVA is committed to using all enforcement tools – both civil and criminal – to hold accountable anyone who took advantage of the program for personal gain.”
“This recovery is a direct result of the concerted efforts of SBA and the United States Attorney’s Office for the Eastern District of Virginia to investigate claims of fraud in SBA’s COVID-relief programs and to recover funds lost through fraud from individuals and companies that engage in such activities,” said SBA’s General Counsel, Therese Meers.
The PPP offered loans to eligible small businesses for economic relief during the COVID-19 pandemic. PPP borrowers were required to provide their income and supporting documents to calculate and confirm the loan amount.
Suppey and Adubofour obtained four PPP loans by submitting applications with inflated income and fabricated tax documents to SBA-authorized lenders. Based on these fraudulent applications, the Court found Suppey and Adubofour liable for violating the False Claims Act, conspiring to violate the False Claims Act, and for violating the Financial Institutions Reform, Recover, and Enforcement Act (FIRREA).
The outcome in the case was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the Small Business Administration’s Office of Litigation.
The case was prosecuted by Assistant U.S. Attorneys William Hochul III and Kristin Starr.
The case caption is United States v. Suppey, No. 1:22-cv-00279-CMH-IDD. A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Wilson Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Kevin S. Wise, Jr., 33, of Wilson, NY, pleaded guilty before Senior U.S. District Judge William M. Skretny to possession with intent to distribute marijuana, being a user of a controlled substance in possession of firearms, and being a felon in possession of firearms. The charges carry a maximum penalty of life in prison and a $1,000,000 fine.
On September 6, 2020, Wise was arrested following a traffic stop on a domestic complaint for two counts of Aggravated Harassment. Subsequently, a search warrant was executed at his two residences on Youngstown Road in Wilson, including vehicles located on the properties. During the searches, investigators recovered 23 firearms, 18,446 rounds of ammunition, ammunition, firearms parts, approximately 374 grams of marijuana, a quantity of MDA, psilocybin mushrooms, two digital scales, and $2,717.00 in U.S. currency. Law enforcement also located 11 marijuana plants and observed multiple trail cameras positioned throughout the back yard, woods, and location of the marijuana plants. Wise admits that, at the time of his possession of the firearms, he was an unlawful user of marijuana and methamphetamine.
On August 1, 2022, investigators executed another search warrant at one of Wise’s Youngstown Road residences in Wilson. Wise was on federal pre-trial release at the time of the search. During the search, law enforcement recovered seven additional firearms, approximately 3,692 rounds of ammunition, numerous firearms parts and accessories, drug paraphernalia and suspected marijuana and THC products. Wise was convicted of a felony in Niagara County in October 2014 and is legally prohibited from possessing a firearm.
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.
The plea is the result of an investigation by the Niagara County Sheriff’s Office Drug Task Force, under the direction of Sheriff Michael Filicetti; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpinato.
Sentencing is scheduled for December 13, 2023, at 9:00 a.m. before Judge Skretny.
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Willowbrook Man Sentenced to 5 Years in Prison for Bank Robberies He Committed While on Supervised Release for Bank RobberyRead the Press Release
LOS ANGELES – A Willowbrook man was sentenced today to 60 months in federal prison for robbing three banks during a six-day crime spree while he was on supervised release for bank robbery convictions over a decade ago.
Rickey Lewis, 54, was sentenced by United States District Judge Christina A. Snyder, who also ordered him to pay $4,035 in restitution.
Lewis pleaded guilty in September 2022 to three counts of bank robbery and one count of attempted bank robbery.
From January 22 to January 28, 2019, Lewis stole a total of $4,035 in cash by robbing two JPMorgan Chase bank branches in Gardena and an International City Bank branch in Long Beach. Lewis also attempted to rob a Bank of America branch in Downey.
During the robberies, Lewis threatened to shoot bank tellers – though it was not apparent that he was carrying a firearm – and he had clear tape on his fingers. In fear for their lives, the bank tellers handed over the cash.
According to an affidavit filed with a criminal complaint in this case, law enforcement recovered a partial palm print recovered from the Long Beach bank robbery that matched Lewis’ palm print.
While he committed the January 2019 bank robbery spree, Lewis was on supervised release for bank robbery convictions he sustained after he pleaded guilty in February 2006 to a month-long spree in which he robbed six banks in South Los Angeles and Inglewood.
The FBI investigated this matter with the assistance of the Long Beach Police Department, the Downey Police Department, the Gardena Police Department, and the Los Angeles County Sheriff’s Department.
Assistant United States Attorneys Patrick Castañeda of the International Narcotics, Money Laundering, and Racketeering Section and Kevin J. Butler of the Violent and Organized Crime Section prosecuted this case.
West Virginia man sentenced for child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jerry Wayne Ricketts, age 43, of Martinsburg, West Virginia, was sentenced today to 235 months in federal prison for possession of child pornography.
According to court documents and statements made in court, Ricketts used the Kik app on his phone to upload images and videos of child pornography. Officers conducted a search of his home and another home in which he uploaded some of the images. Ricketts admitted to using both residences to upload images and videos and accessing the dark web. A review of his phone revealed more than 600 images and videos of child pornography, including minors under the age of 12.
Assistant U.S. Attorney Kimberley Crockett prosecuted the case on behalf of the government.
The West Virginia State Police investigated.
U.S. District Judge Gina M. Groh presided.
United States Files False Claims Act Complaint Against Bournewood Health Systems and First Psychiatric PlannersRead the Press Release
BOSTON – The United States Attorney’s Office has filed a complaint against Brookline-based Bournewood Health Systems and First Psychiatric Planners (FPP) for allegedly paying kickbacks in the form of free sober housing to induce patients to choose Bournewood and FPP over other treatment facilities.
The United States Attorney’s Office filed the complaint under the False Claims Act and the Anti-Kickback Statute against Bournewood Health Systems and FPP, together doing business as Bournewood. The Massachusetts Attorney General’s Office has also joined the complaint under the Massachusetts False Claims Act and other state laws.
It is alleged that Bournewood and FPP paid kickbacks in the form of free sober housing to induce substance use recovery patients to choose and attend Bournewood’s and FPP’s Partial Hospital Program, over a myriad of other treatment options and facilities, in violation of the federal Anti-Kickback Statute, the federal False Claims Act, the Massachusetts Anti-Kickback Statute and the Massachusetts False Claims Act. The governments contend that Bournewood and FPP paid the kickbacks to sustain and grow their daily patient census and increase the amount of reimbursement received from insurers, including federal healthcare programs, for the provision of partial hospital program treatment services.
It is further alleged that Bournewood and FPP contracted to send patients to certain sober homes to support their revenues, even when they knew that some of the sober homes were unsafe and threatened patients’ sobriety. Patients expressed to Bournewood and FPP, and Bournewood and FPP were otherwise aware of, concerns regarding sexual solicitation and harassment, drug overdoses, prescription medication theft, bed bugs and overcrowding.
The Anti-Kickback Statute prohibits providers from offering or paying, directly or indirectly, any remuneration—which includes money or other things of value—to induce Medicare and Medicaid patients to select the provider’s services. The governments do not contend that any substance use patient knowingly accepted the defendants’ kickbacks.
“The government’s complaint today alleges that Bournewood and FPP paid illegal kickbacks to induce vulnerable patients to drive business to their sober home operations,” said Joshua S. Levy, Acting United States Attorney for the District of Massachusetts. “This kickback scheme negatively impacted the Medicare and Medicaid programs financially, and more importantly it jeopardized patients’ health at a vulnerable time in their recovery.”
“Kickbacks can adversely influence the medical decision-making process,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “Together with our federal and state law enforcement partners, we remain committed to investigating allegations of improper arrangements that can put patient safety at risk.”
“Massachusetts is no place to take advantage of vulnerable populations, especially those suffering from substance use disorder,” said Attorney General Andrea Joy Campbell. “These entities referred patients to certain unsafe sober homes and jeopardized their healing to support their own revenue. By taking action, my office and the USAO are reaffirming our commitment to ensure those seeking help have access to treatment and a safe path to recovery.”
The government’s investigation was prompted by False Claims Act allegations brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act.
Acting U.S. Attorney Levy, HHS-OIG SAC Coviello and Attorney General Campbell made the announcement today. This matter is being handled by Assistant U.S. Attorneys Steven Sharobem and Julien Mundele of the Affirmative Enforcement Unit; Assistant United States Attorneys Gregory Dorchak and Anuj Kheturpal of the Civil Rights Unit; and Assistant Attorney General Katie Cooper Davis of the Massachusetts Attorney General’s Office’s Medicaid Fraud Division.
United States Attorney Ritz Celebrates Funding Awarded for Legal Services and Improved Court Responses to Domestic and Sexual ViolenceRead the Press Release
Memphis, TN – Today, the U.S. Attorney’s Office for the Western District of Tennessee announced that the Department of Justice Office on Violence Against Women (OVW) awarded $600,000 to a community-based organization to provide legal services and improve the effective coordination of justice systems impacting survivors of sexual assault, domestic violence, dating violence, and stalking.
OVW awarded the grant under the Legal Assistance for Victims (LAV) Program to West Tennessee Legal Services, Inc. Based in Jackson, Tennessee, West Tennessee Legal Services offers free civil legal services in 17 counties, focusing on issues that affect family safety and stability. The LAV Program addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking.
“The need for specialized legal services is both urgent and essential for survivors of domestic violence and sexual assault,” said U.S. Attorney Kevin Ritz. “These services provide interventions, such as securing restraining or protective orders, that are crucial for survivor safety. I am pleased that survivors of abuse in our district will benefit from this funding – and that the Justice Department and the Office on Violence Against Women continue to prioritize protecting victims and providing them equal access to justice.”
“The Legal Assistance for Victims Grant, in conjunction with the Justice for Families Program and the Domestic Violence Mentor Court Technical Assistance Initiative, serve as a powerful multi-pronged strategy to transform the justice system's approach to supporting families affected by violence," stated OVW Director Rosemarie Hidalgo. "These grants enhance court-related programs, trauma-informed training, and resources, while also providing victims with specialized legal support. This includes assistance with securing protective orders and navigating complex family law matters. Collectively, these grants advance a more comprehensive approach, aimed at ensuring that survivors and their families don't merely navigate our legal system, but genuinely find a path to justice and safety.”
OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges.
Read more about the Justice Department’s Office on Violence Against Women at www.justice.gov/ovw.
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US World Gang Member Convicted of Assaulting FBI Agent in 2022 ShootingRead the Press Release
COLUMBUS, Ga. –A Columbus resident and member of a criminal street gang who—along with a co-defendant—shot multiple rounds at an FBI agent in Columbus last year was found guilty of assault on a federal officer along with additional charges for armed drug trafficking by a federal jury this evening.
Joshuia Johnathon Luke Brown aka “Black,” 25, was found guilty of one count of forcible assault on a federal officer with a deadly weapon, one count of brandishing a firearm during and in relation to a crime of violence, one count of conspiracy to distribute and possess with intent to distribute controlled substances, one count of distribution of methamphetamine, one count of possession with intent to distribute methamphetamine, three counts of possession with intent to distribute controlled substances and one count of possession of a firearm in furtherance of a drug trafficking crime following a trial before U.S. District Judge Clay Land that began on Monday, Sept. 11. Brown is facing a maximum of life in prison. Brown’s sentencing is scheduled for Jan. 24, 2023.
Co-defendant Jarvis Smith, 28, pleaded guilty to one count of forcible assault on a federal law enforcement officer, one count of possession of a firearm in furtherance of a drug trafficking crime and one count of possession of a firearm by a prohibited person on Aug. 9. Smith is facing a maximum sentence of life in prison. Smith’s sentencing is scheduled for Dec. 19. Neither Smith nor Brown are eligible for parole.
“As if out of a movie, Joshuia Brown and Jarvis Smith stepped out of their car in the middle of a Columbus street and brazenly shot at an FBI agent, narrowly missing the agent and shooting through a citizen’s home. This type of lawlessness cannot be tolerated,” said U.S. Attorney Peter D. Leary. “Law enforcement at every level is putting their lives on the line in a collaborative effort to reduce violence and hold the most dangerous individuals in our communities accountable for their criminal actions.”
“Anyone who assaults a law enforcement officer is dangerous and an extreme threat to public safety. Stopping violent criminals, like Brown, is one of the most important things we can do to protect our communities,” said Keri Farley, Special Agent in Charge of FBI Atlanta. "Thankfully, no one—including our Special Agent—was injured during Brown's act of terror. Columbus is a safer community with him off the streets."
“We will not tolerate this kind of violent conduct in Columbus. Joshuia Brown and Jarvis Smith displayed cowardly and heartless conduct toward law enforcement, who are real people that choose to devote themselves to serve and protect our community so all of us can enjoy a better quality of life,” said Muscogee County Sheriff Greg Countryman. “Law enforcement doesn’t get a lot of thank-yous, but I want to thank everyone involved in this case who ensured that justice was served, and that these men are held accountable for their violent actions.”
According to facts presented in court, federal agents were surveilling Brown and Smith in July 2022 as part of a larger and ongoing investigation into armed drug trafficking in the Columbus community. Through surveillance, agents observed a drug transaction involving Smith and Brown on July 28, 2022, in the vicinity of 1049 Winston Road in Columbus. At 4:35 p.m., Smith departed the scene in his car with Brown. FBI Agent S.A. conducted mobile surveillance as Smith traveled down Wade Street, turning south on Sheridan Avenue. Smith, who was driving, stopped his car in the middle of the road and he and Brown, who was a passenger, stepped outside of the car with weapons pointed in the agent’s direction and fired multiple rounds at the agent’s car, hitting the passenger door, the roof and the rear bumper of the FBI vehicle. One round traveled through the back of the FBI agent’s passenger seat, hitting a small bag on the front passenger side. Another round entered a private residence’s living room window, shattering a painting on the wall. The FBI agent was not injured during the shooting.
FBI and Muscogee County Sheriff’s Office units attempted to stop Smith’s car; Smith and Brown were able to elude law enforcement in a lengthy pursuit by car and on foot. Smith was taken into custody on July 28. After a manhunt that last several days, Brown turned himself in on Aug. 10. A bag dropped by Brown during the pursuit contained a fully loaded Glock 19X handgun with an extended magazine. Two bullets recovered from the FBI agent’s vehicle matched the Glock 19X found inside Brown’s discarded bag. Law enforcement recovered a camo backpack dropped by Smith during the pursuit that held a fully loaded Glock pistol with an extended magazine, a fully loaded .380 semi-automatic pistol and ammunition. Also, several baggies containing methamphetamine, pills and other illegal drugs were found inside Smith’s backpack. Both the Glock 19X and the Glock pistol were modified to operate as machine guns.
Brown is a member of US World, a hybrid criminal street gang based out of Columbus that is affiliated with other national criminal gangs. Smith is a confirmed member of the Bloods criminal street gang and has a prior conviction of aggravated assault, burglary and robbery in Muscogee County, Georgia, Superior Court, Case No. SU-13-Cr-1336. It is illegal for a convicted felon to possess a firearm.
This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the FBI and the Muscogee County Sheriff’s Office, with assistance from multiple agencies including the DEA, the Columbus Police Department, the Harris County Sheriff’s Office, the Phenix City Police Department and the Russell County, Alabama, Sheriff’s Office. Assistant U.S. Attorneys Christopher Williams and Crawford Seals are prosecuting the case for the Government.
US Attorney Hosts United Against Hate Event in Gary, IndianaRead the Press Release
HAMMOND, IN– Last week, the United States Attorney’s Office for the Northern District of Indiana partnered with the Gary Indiana Police Department and, hosted its first “United Against Hate” Community Outreach Event, bringing together local and federal law enforcement and the community to discuss effective strategies to prevent, report, and respond to hate crimes and incidents.
“United Against Hate” is a nationwide Department of Justice initiative to combat unlawful acts of hate. “We are excited to bring this initiative to the Northern District of Indiana and thankful to our law enforcement partners and community leaders for joining us in this necessary step to help provide education on combating hate and protecting civil rights,” said United States Attorney Clifford D. Johnson.
The event, held Thursday, September 14, 2023, at the New Friendship Baptist Church in Gary, Indiana, featured remarks by U.S. Attorney Johnson and Gary Chief of Police, Anthony Titus, as well as presentations from Assistant U.S. Attorneys, the Federal Bureau of Investigation, and a representative from the Department of Justice’s Community Relations Service (CRS) on the topics of identifying hate crimes and incidents, the importance of reporting, and resources available to help communities dealing with such crimes.
“Combating hate crimes and bias incidents is one of the top priorities of the Department of Justice and our office,” said U.S. Attorney Johnson. “It is very fitting to be discussing strategies to tackle these issues on this day and in this forum, as September 15th marks the 60th anniversary of the bombing of the 16th Street Baptist Church in Birmingham, Alabama by members of the KKK. Addressing and defending against hate crimes requires all of us to be attentive and vigilant.”
As part of its United Against Hate Program, the U.S. Attorney’s Office hopes to engage with diverse communities across the District to further education and prevention efforts and encourage reporting of hate crimes, bias incidents, and discrimination to local and federal authorities. By convening community forums and providing education about civil rights statutes and incident reporting mechanisms, the goal is to build relationships and root out hate in the district.
Community Organizations or Leaders that wish to partner with the United States Attorney’s office to explore holding such an event in their community should contact the District via the following link: https://www.justice.gov/usao-ndin/northern-district-indiana-us-attorney-speakers-bureau.
Finally, if you believe you are the victim of a hate crime or have witnessed a hate crime, immediately report the crime to your state or local police by dialing 9-1-1, then quickly report the incident to the Federal Bureau of Investigation (FBI). You can report to the FBI online at tips.FBI.gov or by calling 1-800-CALL-FBI (1-800-225-5324). If you believe a bias incident or act of discrimination may not involve a hate crime, you should still report such incident to the Department of Justice’s Civil Rights Division at civilrights.justice.gov or by contacting the Civil Rights Coordinator in the Civil Division at the U.S. Attorney’s Office.
U.S. Settles False Claims Act Lawsuit Against Cardiologist and His Medical Practice for Paying Millions in Kickbacks for ReferralsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Naomi Gruchacz, the Special Agent in Charge of the New York Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), announced today that the United States has filed and settled a civil fraud lawsuit against KLAUS PETER RENTROP and his medical practice GRAMERCY CARDIAC DIAGNOSTIC SERVICES P.C. (“GRAMERCY CARDIAC”) for paying millions of dollars in kickbacks to physicians and their practices for patient referrals. The kickbacks took the form of inflated office “rental payments” and fees paid to contracted cardiologists. Specifically, the Complaint alleges that, from 2010 to 2021, RENTROP and Gramercy Cardiac entered into office space rental agreements, often in excess of fair market value, with primary care and other physicians (or their medical practices) in order to induce these physicians to refer patients to GRAMERCY CARDIAC-contracted cardiologists who saw patients at the rented office space. These cardiologists then regularly ordered diagnostic tests and procedures that were performed at GRAMERCY CARDIAC locations and were paid a flat fee for each referral. GRAMERCY CARDIAC provides cardiac diagnostic imaging services, including PET and SPECT scans, and previously operated four offices in New York City. RENTROP founded and owns GRAMERCY CARDIAC and serves as its President.
Under the settlement approved today by U.S. District Judge Jesse M. Furman, RENTROP and GRAMERCY CARDIAC will pay $4,510,678 to the United States and have admitted and accepted responsibility for conduct alleged in the Complaint as further described below. RENTROP and GRAMERCY CARDIAC have also agreed to pay $1,989,362 to the State of New York to resolve the State’s claims, for a total recovery of $6.5 million. The settlement amount is based on the Office’s assessment of RENTROP’s and GRAMERCY CARDIAC’s ability to pay based on the financial information they provided. The parties have also executed a Consent Judgment in the amount of $64,416,515, which may be enforced if Defendants do not make the payments required under the settlement agreement. In addition, RENTROP has agreed to relinquish his ownership and control over GRAMERCY CARDIAC by the end of the calendar year and will pay a portion of the proceeds of any sale of the practice to the United States. Further, RENTROP is indefinitely barred from working for any entity that bills federal healthcare programs. He also entered into a Voluntary Exclusion Agreement with HHS-OIG, which prohibits him from, among other things, participating in Medicare, Medicaid, or other federal healthcare programs for five years.
U.S. Attorney Damian Williams said: “Over more than a decade, Klaus Peter Rentrop and Gramercy Cardiac paid millions of dollars to doctors and their medical practices in exchange for patient referrals for cardiac testing and procedures. The Anti-Kickback Statute is meant to ensure that when making medical decisions, a doctor considers only the patient’s best interests — not the doctor’s or others’ financial interests. The defendants violated those doctor-patient relationships through their kickback arrangements, and now they are being held to account.”
HHS-OIG Special Agent in Charge Naomi Gruchacz said: “Individuals and entities that participate in the federal healthcare system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients. Certain violations of the Anti-Kickback Statute can induce medically unnecessary testing and influence physicians’ decision-making inappropriately.”
According to the Complaint, from 2010 through 2021:
RENTROP and GRAMERCY CARDIAC offered and paid physicians and their practices millions of dollars in kickbacks in the form of inflated “rental payments” and referral fees to induce them to refer patients to Gramercy-contracted cardiologists and to Gramercy Cardiac for diagnostic tests and procedures, in violation of the Anti-Kickback Statute and the Stark Law.
RENTROP and GRAMERCY CARDIAC’s scheme worked as follows. RENTROP and GRAMERCY CARDIAC entered into office space rental agreements, often in excess of fair market value, with primary care and other physicians or their medical practices (the “Rental Practices”). These agreements typically provided for the use of an exam room once or twice a month, as well as for the use of basic equipment (e.g., a telephone and a computer) and front desk staff to assist with scheduling. The defendants often agreed to pay thousands of dollars each month in rent. RENTROP and GRAMERCY CARDIAC also entered into independent contractor agreements with dozens of cardiologists (the “Gramercy-Contracted Cardiologists”) who were sent to see patients at the Rental Practices. In exchange for the purported “rental payments,” the Rental Practices referred patients to the Gramercy-Contracted Cardiologists, who in turn referred many of these patients to a GRAMERCY CARDIAC office to undergo cardiac diagnostic tests and procedures. RENTROP and GRAMERCY CARDIAC paid the Gramercy-Contracted Cardiologists a flat fee for each test or procedure performed on referred patients at a Gramercy Cardiac location, with larger fees paid for tests and procedures for which GRAMERCY CARDIAC received a greater reimbursement. These per-procedure fees were the only compensation paid to some Gramercy-Contracted Cardiologists.
To ensure the kickbacks paid to the Rental Practices were working, RENTROP directed his staff to calculate GRAMERCY CARDIAC’s return on investment from the “rental payments” paid to each Rental Practice. RENTROP insisted on a minimum return on investment of at least 300% from the kickbacks.
These Rental Practices referred tens of thousands of patients to the Gramercy-Contracted Cardiologists, who in turn referred more than 23,000 patients for PET and SPECT scans at GRAMERCY CARDIAC. A significant proportion of these patients were Medicare or Medicaid beneficiaries: GRAMERCY CARDIAC billed Medicare or Medicaid for tests or procedures provided to tens of thousands of Medicare or Medicaid beneficiaries who were referred by the Rental Practices, including for PET and SPECT scans for many thousands of these beneficiaries. As a result, the claims submitted for payment for these tests and procedures were false and violated the federal False Claims Act.
As part of the settlement, RENTROP and GRAMERCY CARDIAC each admits, acknowledges, and accepts responsibility for the following conduct:
- From 2010 through 2021, GRAMERCY CARDIAC, at RENTROP’s direction, entered into rental agreements (the “Rental Agreements”) with more than 130 physicians and medical practices (the “Rental Practices”) under which GRAMERCY CARDIAC leased a portion of the practice’s office space, usually one or two exam rooms for certain days or hours each month. RENTROP took part in the negotiation of the Rental Agreements and signed them on behalf of GRAMERCY CARDIAC. GRAMERCY CARDIAC paid a total of more than $11 million to the Rental Practices pursuant to the Rental Agreements.
- From 2010 through 2021, GRAMERCY CARDIAC, at RENTROP’s direction, entered into independent contractor agreements (the “Independent Contractor Agreements”) with more than 50 cardiologists (the “Gramercy-Contracted Cardiologists”) or their medical practices. RENTROP took part in the negotiation of the Independent Contractor Agreements and signed them on behalf of GRAMERCY CARDIAC.
- GRAMERCY CARDIAC sent the Gramercy-Contracted Cardiologists to the rented office space one or more times each month to see patients who were referred for an assessment by the healthcare providers at the Rental Practice. The Gramercy-Contracted Cardiologists in turn referred these patients to GRAMERCY CARDIAC to undergo diagnostic tests and procedures, such as PET and SPECT scans.
- GRAMERCY CARDIAC paid many of the Gramercy-Contracted Cardiologists a flat fee for each diagnostic test or procedure which the cardiologist referred to GRAMERCY CARDIAC provided that the patient received the test or procedure at a GRAMERCY CARDIAC location. These “per procedure” fees were the only compensation GRAMERCY CARDIAC provided to the Gramercy-Contracted Cardiologists.
- Certain versions of Independent Contractor Agreements stated that the Gramercy-Contracted Cardiologist was to be paid not for the referrals to GRAMERCY CARDIAC, but rather for the “[a]dministration and supervision” of the PET and SPECT scans to be performed at GRAMERCY CARDIAC. However, in many cases, the Gramercy-Contracted Cardiologists did not, in fact, administer and supervise the PET and SPECT scans and were nonetheless paid by GRAMERCY CARDIAC based solely on the number of tests and procedures referred.
- At the time the Rental Agreements were executed, it was understood that the Rental Practices would refer their patients to the Gramercy-Contracted Cardiologists. Indeed, GRAMERCY CARDIAC calculated the number of hours per month that GRAMERCY CARDIAC leased the office space based on the volume of expected patient referrals.
- GRAMERCY CARDIAC calculated its return on investment from its Rental Agreements — which it internally referred to as the “efficiency” of the Rental Agreements — by comparing the revenue GRAMERCY CARDIAC generated from the patient referrals to the payments it made to the Rental Practice.
- When a Rental Agreement’s return on investment fell below the minimum threshold, GRAMERCY CARDIAC, at RENTROP’s direction, would often refuse to pay the Rental Practice the amounts due under the Rental Agreement. In addition, at RENTROP’s direction, GRAMERCY CARDIAC Physician Liaisons advised Rental Practice physicians that if the volume of referrals to Gramercy-Contracted Cardiologists did not increase, rent would be decreased, or the Rental Agreement would be terminated. GRAMERCY CARDIAC terminated a number of Rental Agreements because the return on investment through patient referrals was too low.
- When negotiating or re-negotiating the monthly rental payment to be made under a Rental Agreement, GRAMERCY CARDIAC took into account the expected or historic return on investment based on the volume of patient referrals generated from the Rental Practice.
- The rental fees paid by GRAMERCY CARDIAC under the Rental Agreements were in excess of fair market value for at least some Rental Agreements.
In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had been filed under seal pursuant to the False Claims Act.
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Mr. Williams praised the outstanding investigative work of HHS-OIG, and he thanked the Medicaid Fraud Control Unit at the New York State Attorney General’s Office for its extensive collaboration in the investigation.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Jacob Lillywhite is in charge of the case.
U.S. Attorney’s Office Charges Two with 2022 Gun Store BurglaryRead the Press Release
DANVILLE, Va.– A federal grand jury in Danville, Virginia returned an indictment in August charging a pair of men with robbing a Federal Firearms Licensee (FFL) in 2022.
The grand jury charged Bradley Wayne McCraw, 43, of Gaffney, South Carolina, and Justin Darrell Whitaker, 30, of Cleveland County, North Carolina, with breaking into the Rabbit Ridge Gun Shop and Range in Ararat, Virginia in the early morning hours of September 22, 2022, and stealing at least 13 firearms from the business’ inventory.
McCraw and Whitaker are each charged with one count of possession of a firearm by a convicted felon, one count of knowingly and intentionally stealing firearms from an FFL, and one count of possession of stolen firearms.
U.S. 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 Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating the case with assistance from the Patrick County Sheriff’s Office. The Sheriffs’ Offices in Cherokee County, South Carolina, Spartanburg, South Carolina, and Cleveland County, North Carolina also have assisted with the investigation.
Assistant U.S. Attorney Kristin B. Johnson 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.
U.S. Attorney's Office Testifies Before D.C. Council in Support of the Accountability and Victim Protection Amendment Act of 2023Read the Press Release
WASHINGTON - The U.S. Attorney's Office for the District of Columbia will testify today at a committee hearing before the Council of the District of Columbia on proposed legislation, Bill 25-0345, the "Accountability and Victim Protection Amendment Act of 2023."
USAO-DC strongly supports the "Accountability and Victim Protection Amendment Act" because it will provide additional tools to protect some of the most vulnerable members of our community and hold accountable those who harm them. Our Office is committed to aggressively prosecuting all forms of violence, including sexual assault and domestic violence against adults, teens, and children, and to protecting our community from these often life-changing acts of violence.
In addition to appearing before the Council’s Committee on the Judiciary and Public Safety, Elana Suttenberg, Special Counsel to the U.S. Attorney, provided written remarks, available in the accompanying attachment.
The testimony is available in the attachment below.
U.S. Attorney Ritz Announces $500,000 Grant to Memphis Nonprofit to Support Community Re-EntryRead the Press Release
Memphis, TN – Kevin G. Ritz, United States Attorney for the Western District of Tennessee, today announced that a Memphis nonprofit organization was awarded a Department of Justice grant for $500,000 to help reinforce community-based reentry programs and create more opportunities for formerly incarcerated community members to make successful transition back to society.
This grant, which comes through the Byrne Discretionary Grants Program, was awarded to Lifeline to Success, a local organization focused on helping men and women with serious felony convictions transition back to society. The funds will support the organization’s new rehabilitation center, Welch Home for Success, and a 12-month demonstration program offering peer support, therapeutic and mental health services, job training, and life coaching to reduce recidivism and support long-term success.
“Our reentry partners play a crucial role in keeping Memphis safe and strong,” said United States Attorney Ritz. “This grant demonstrates the federal government’s commitment helping state and local partners stand with us to decrease crime, advance opportunity for ex-offenders, and protect our entire community. Lifeline to Success has an impressive and long-standing track record for helping those whose past would put them most at risk for returning to crime. We applaud them for the work they’ve done and the work this grant will allow them to do in the future.”
“If someone is committed to leaving a life of crime, our goal is to help them transform and become productive members of the community,” said Executive Director Vinessa Brown. “Since we started this program in 2009, we’ve helped more than 1,947 men and women to create new lives for themselves, find jobs, set financial goals, and become successful. We’re excited to launch the Welch Home for Success and focus the tools and partnerships we’ve built over two decades toward creating a life skills curriculum that reduces recidivism and increases ex-offenders’ chances of thriving here at home.”
The Byrne Discretionary Community Project Funding/Byrne Discretionary Grants Program is administered by Congress and supports projects that improve the functioning of the criminal justice system, prevent or combat juvenile delinquency, and assist crime victims.
Additional information about grants and funding through the U.S. Department of Justice Office of Justice Programs is available at www.ojp.gov.
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U.S. Attorney Chris Kavanaugh to Host Meeting of Attorney General’s Terrorism and National Security Subcommittee in Charlottesville, Va.Read the Press Release
CHARLOTTESVILLE, Va. – United States Attorney Christopher R. Kavanaugh will host 28 other U.S. Attorneys from across the country for the annual in-person meeting of the Terrorism and National Security Subcommittee for the Attorney General’s Advisory Committee (AGAC) from September 20th to September 22nd in Charlottesville, Virginia.
U.S. Attorney Kavanaugh serves as Chair of the Terrorism and National Security Subcommittee (TNSS) which plays a critical role in formulating, examining, and implementing policies and initiatives that affect the Department’s investigation and prosecution of national security threats and acts of domestic and international terrorism. U.S. Attorney Ryan Buchanan of the Northern District of Georgia serves as vice-chair.
“A top priority of the Department of Justice and the United States Attorney community in particular is keeping our nation safe,” said U.S. Attorney Kavanaugh. “Many of the threats we encounter are not neatly cabined to one geographic district, but rather are national in scope. As leaders of the Department of Justice in our respective districts, it is essential to meet with one another to discuss ongoing efforts to disrupt national security threats and to share best practices for investigating and prosecuting national security cases throughout the country. This meeting serves as a critical opportunity for United States Attorneys and Justice Department officials to achieve that goal, and I am honored to host our committee here in the Western District of Virginia.”
“Strategic coordination across the country is essential to protecting our national security,” said U.S. Attorney Ryan K. Buchanan. “The work of the Attorney General Advisory Committee’s Terrorism and National Security Subcommittee develops and advances the awareness, perspective, and best practices that are necessary to keep our respective districts safe.”
The agenda for the TNSS meeting will include presentations by multiple current and former officials of the Department of Justice and the Federal Bureau of Investigation, a national security law scholar from the University of Virginia School of Law’s National Security Law Center, and case studies by fellow United States Attorneys. The United States Attorneys will also meet with Assistant Attorney General Matthew Olsen of DOJ’s National Security Division as part of the subcommittee work supporting the Attorney General’s Advisory Committee.
In addition to U.S. Attorneys Kavanaugh and Buchanan, the committee’s membership includes United States Attorneys from Virginia, Georgia, New York, California, Texas, North Carolina, Maine, Massachusetts, Michigan, Minnesota, Illinois, Louisiana, Pennsylvania, Tennessee, Mississippi, West Virginia, Arkansas, Hawaii, Guam, and the District of Columbia.
Established in 1973, the AGAC and its subcommittees advise the Attorney General on matters of policy, procedure, and management impacting U.S. Attorneys’ Offices and represents the views of federal prosecutors across the country.
Two sentenced in burglary of British Consul General’s residenceRead the Press Release
HOUSTON – A Houston man and woman have been sentenced for damaging property occupied by a foreign government, announced U.S. Attorney Alamdar S. Hamdani.
Darion Benjamin Woods, 28, and Christin Danielle Brinkley, 26, pleaded guilty May 16, admitting they broke into, damaged and stole several items from the private residence of the Consul General for Great Britain.
U.S. District Judge Randy Crane has now ordered Woods to serve 30 months in prison followed by three years of supervised release. Brinkley received 14 months followed by one year of home detention as part of her three years of supervised release after her sentence. Both were also ordered to pay $56,636.15 in restitution.
In imposing the sentence, the court considered a statement from the victim and noted the seriousness of the conduct and extent of damage to the residence.
At the time of the pleas, both admitted to burglarizing the home on July 23, 2022. Nobody was in the residence at the time of the incident.
Security cameras captured Brinkley and Woods pulling up to the gated residence with a U-Haul, jumping over the gate and eventually driving through it and causing significant damage. Once inside, they stole multiple items, including the two cars (one of which was the property of the British Consulate), jewelry, electronics, documents and a safe.
Authorities later located the stolen vehicles at an address in Houston and observed Brinkley inside both vehicles at different times. They took Brinkley and Woods into custody and recovered the vehicles as well as some property from the residence, most of which was damaged.
Both were ordered into custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Department of State – Diplomatic Security Service and the FBI conducted the investigation with the assistance of the Harris County Sheriff’s Office. Assistant U.S. Attorneys Luis Batarse and Richard W. Bennett prosecuted the case.
Two Nigerian Nationals Sentenced in Online Romance Fraud ConspiracyRead the Press Release
ST. PAUL, Minn. – Two Nigerian nationals have been sentenced to prison, probation, and and ordered to pay $356,671 in restitution for their involvement in the theft of thousands of dollars from victims in romance fraud schemes, announced United States Attorney Andrew M. Luger.
According to court documents, beginning in 2016 through 2019, Charles Emeka Obije, 40, served as a “money mule” for a group of individuals who used fictitious identities to contact victims throughout the United States via email, social media, and online dating applications. The group pursued these romantic relationships online with the intent of using the relationships to defraud his victims.
Obije’s sister-in-law and co-conspirator, Ijeoma Miriam Chanthavong, 36, helped launder the financial proceeds of these schemes. Together, they conspired to transfer the proceeds of the online romance fraud scams to bank accounts under the group's control in Nigeria. In total, Obije and Chanthavong pleaded guilty to defrauding victims out of $356,671.
Obije, who pleaded guilty to conspiracy to commit international money laundering, was sentenced on September 13, 2023, by Senior Judge Donovan W. Frank to 14 months in prison, followed by three years of supervised release, and ordered him to pay $356,671.00 in restitution. Chanthavong also pleaded guilty to conspiracy to commit international money laundering and was sentenced on April 19, 2023, to three years of probation and ordered to pay $148,500.00 in restitution.
This case is the result of an investigation conducted by IRS Criminal Investigations, Homeland Security Investigations, and U.S. Department of Housing and Urban Development, Office of Inspector General.
Assistant U.S. Attorney William C. Mattessich prosecuted the case.
Two Minneapolis Men Sentenced for Armed CarjackingRead the Press Release
ST PAUL, Minn. – Two Minneapolis men have been sentenced for carjacking, kidnapping, and holding a victim at gunpoint for several hours, announced U.S. Attorney Andrew M. Luger.
According to court documents, on the evening of February 14, 2023, T’Shawn Teon Palton, then 20, Jamal Timothy Funchess, 18, and a then-juvenile at the time of the offence posted an advertisement on Facebook Marketplace to purportedly sell an iPhone. The victim responded and made arrangements to buy the phone. The victim and the purported seller agreed to meet at a location in Columbia Heights. When the victim arrived at the location and was still in the car, Palton and the juvenile approached. The juvenile had a gun and hit the victim in the face with the firearm. The men ordered the victim to the backseat of the car. The men then got into the victim’s car, drove a short distance, and picked up Funchess.
For several hours, the three men drove the victim’s car around the Twin Cities, holding the victim at gunpoint in the backseat. Each of the three men at some point held the firearm and pointed it at the victim. During this time, they demanded that the victim surrender his cell phone, wallet, credit cards, and banking information. They drove to several gas stations around the Twin Cities in an attempt to use the victim’s cards to withdraw money. Toward the end of the ordeal, the three men discussed what to do with the victim and openly talked about murdering him. Eventually, they dropped the victim on a road in St. Paul and drove away in the victim’s car. The victim ran to a nearby gas station and borrowed an employee’s cell phone to call 911. Officers were able to use the location of the victim’s stolen cell phone to find Palton, Funchess, and the juvenile, along with the victim’s stolen car and possessions.
Palton and Funchess pleaded guilty in U.S. District Court on May 22, 2023, to one count each of carjacking.
On September 15, 2023, Palton and Funchess were sentenced by Senior Judge Susan Richard Nelson. Palton received 108 months in prison, followed by three years of supervised release. Funchess received 100 months in prison, followed by three years of supervised release.
This case is the result of an investigation conducted by the FBI, the Anoka County Sheriff’s Office, and the Bloomington Police Department.
Assistant U.S. Attorney Matthew D. Forbes prosecuted the case.
Two Manchester Residents Arrested for Conspiring to Manufacture Methamphetamine in Their ResidenceRead the Press Release
CONCORD – Two Manchester residents have been charged for conspiring to manufacture methamphetamine and possessing the necessary chemicals and equipment to do so within their home, U.S. Attorney Jane E. Young announces.
Charles Winchell and Catherine Quinn, both 42 years old, were charged with conspiracy to manufacture methamphetamine and possession of equipment, chemicals, products, and materials to manufacture methamphetamine. Winchell will make an initial appearance in federal court in Concord today at 2:30 p.m., and Quinn will appear at 3:00 p.m.
According to the charging documents, Quinn and Winchell purchased pseudoephedrine, an over-the-counter medication and the primary ingredient used for the manufacturing of methamphetamine, dozens of times over the past few months. Most recently, Winchell purchased pseudoephedrine yesterday. Law enforcement executed a search warrant at their residence this morning and found pseudoephedrine and other ingredients used to manufacture methamphetamine, such as lighter fluid, drain cleaner, and batteries, which contain lithium strips used to create a chemical reaction.
The Drug Enforcement Administration and the Manchester Police Department are investigating this matter. Assistant U.S. Attorney Heather A. Cherniske is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Two Leaders of KC Street Gang Sentenced for Drug-Trafficking, Drive-By Shooting, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Two Kansas City, Mo., men who led 246, a violent street gang, were sentenced in federal court today for their roles in a drug-trafficking conspiracy and other violent criminal behavior that included illegal firearms and a drive-by shooting outside a daycare center where children were present.
Ladele D. Smith, also known as “Dellio” and “Dog,” 36, and Roy Franklin, Jr., 33, were sentenced in separate appearances before U.S. District Judge Greg Kays. Smith was sentenced to 35 years in federal prison without parole. Franklin was sentenced to 30 years in federal prison without parole.
On Sept. 15, 2022, Smith and Franklin were found guilty at trial of participating in a conspiracy to distribute heroin, cocaine, oxycodone, and marijuana from Jan. 1, 2011, to Oct. 1, 2019. Smith was also convicted of 15 additional counts that charged him with various drug-trafficking and firearms crimes, including a drive-by shooting and discharging a firearm during a crime of violence. Franklin was also convicted of nine additional counts that charged him with various drug-trafficking and firearms crimes, including the drive-by shooting and discharging a firearm during a crime of violence.
Co-defendants David J. Duncan, IV, also known as “Deej” or “DJ,” 34, and Gary O. Toombs, 43, both of Kansas City, Mo., also were convicted during the same trial and are scheduled to be sentenced on Sept. 26, 2023.
The investigation into the 246 street gang, operating in the Kansas City metropolitan area, began in June 2017. The gang is an alliance of gang members from the 24th, 43rd, and 68th streets of Kansas City, Mo. Smith was identified as a leader of the gang, and Franklin, Duncan and Toombs as members of the gang.
Smith and Duncan are local rap artists who often posted to social media platforms, such as YouTube, with references to the 246 gang. In some of the videos, Smith and others show firearms and large amounts of cash. The social media posts also portrayed Smith and others wearing expensive jewelry, watches, hats, and clothing that depicted 246 gang affiliation.
Smith only made about $300 from his music, according to court documents, but he spent about $54,000 at Halls Department Store between 2017 and 2019, and spent more than $27,000 on rental cars from Enterprise during that time. Those financial records don’t include the money spent on other luxury items (such as clothes, shoes, and accessories) seized by law enforcement from Smith’s residence.
Members of the 246 gang used a residence in the 4400 block of Kensington, which is within 1,000 feet of George Washington Carver Dual Language School, a public elementary school, for gang and drug-trafficking business. No one utilized the house as a primary or permanent residence. On Oct. 2, 2019, law enforcement officers executed a search warrant at the house and seized heroin as well as two assault rifles and a stolen vehicle that had been used in a drive-by shooting the previous month. Officers also found a Glock 9mm semi-automatic pistol and a Century Arms International 7.62x39mm pistol under the couch in the living room and a Glock .40-caliber semi-automatic pistol on the kitchen cabinet.
Smith was arrested at his apartment on Oct 2, 2019. Officers searched his residence and found codeine, $31,601 in cash, and jewelry valued at over $40,000.
Duncan was also arrested at his apartment on Oct. 2, 2019. Officers searched his residence and found a Zastava 7.62 x 39mm rifle, a Norinco 7.62 x 39mm rifle, a Glock 9mm semi-automatic pistol, two loaded rifle magazines, and a loaded handgun magazine under the bed in a bedroom. Officers found $7,100 in cash and four bags of pills that contained oxycodone in the living room.
Smith, Franklin and Toombs also were found guilty at trial of participating in a conspiracy to possess firearms in furtherance of a drug-trafficking crime.
In addition to the two conspiracies, Smith was found guilty of one count of drive-by shooting, one count of discharging a firearm in furtherance of a crime of violence, one count of maintaining a drug-involved premises, one count of distributing marijuana, one count of distributing marijuana near a school (within 1,000 feet of George Washington Carver Dual Language School), four counts of distributing heroin, and four counts of distributing heroin near a school (within 1,000 feet of George Washington Carver Dual Language School).
In addition to the two conspiracies, Franklin was found guilty of one count of drive-by shooting, one count of discharging a firearm in furtherance of a crime of violence, one count of maintaining a drug-involved premises, two counts of distributing marijuana and two counts of distributing marijuana near a school (within 1,000 feet of George Washington Carver Dual Language School).
Duncan also was found guilty of possessing oxycodone the intent to distribute, one count of possessing firearms in furtherance of a drug-trafficking crime, and five counts of money laundering related to the purchases of money orders with drug-trafficking proceeds.
Toombs also was found guilty of maintaining a residence for the purpose of manufacturing, distributing, and using controlled substances.
Fourteen co-defendants in this case have pleaded guilty and been sentenced.
This case is being prosecuted by Assistant U.S. Attorneys Ashleigh Ragner, Mary Kate Butterfield and Ben Hurst. It was investigated by the FBI, the Kansas City, Mo., Police Department, IRS-Criminal Investigation, and the Missouri State Highway Patrol.
KC Metro Strike Force
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
Three Southern Idaho Drug Traffickers Sentenced to Federal PrisonRead the Press Release
BOISE – U.S. Attorney for the District of Idaho Josh Hurwit announced the results of three separate drug trafficking cases in Southern Idaho today involving fentanyl, methamphetamine, and firearms.
“In each of these three cases, the defendant chose to distribute significant quantities of dangerous drugs in the Treasure Valley. As a result, each defendant is now heading to federal prison for a significant period of time,” said U.S. Attorney Hurwit. “Anyone else thinking of dealing drugs like fentanyl or methamphetamine in Idaho should think twice because, along with the DEA and our local law enforcement partners, we will spare no effort to hold you accountable and keep Idahoans safe.”
On September 14, 2023, Chief U.S. District Judge David C. Nye sentenced Bradley Don Oakes, 39, of Nampa, to 188 months in federal prison followed by five years of supervised release and a $1,000 fine. According to court records, Oakes sold a combined 139.9 grams of methamphetamine to law enforcement on two occasions in late 2022. On January 3, 2023, Oakes was pulled over on Interstate 84 for a traffic violation and found to be in possession of a .38 special revolver, a stolen 9mm semi-automatic pistol, 223.6 grams of methamphetamine, 2,315 grams of marijuana, 4 grams of psilocybin mushrooms, 14 grams of hashish, and six tabs of LSD.
Oakes was deemed to be a career offender under the U.S. Sentencing Guidelines due to two prior felony convictions for crimes of violence. In 2004, Oakes was convicted in California for assault with a firearm on a person. In 2013, also in California, Oakes was convicted of assault with a deadly weapon upon a peace officer. Additionally, Oakes was previously convicted of attempted possession of a controlled substance, possession of a stolen vehicle, violation of a domestic violence protection order, and possession of methamphetamine. At the time of his current federal offense, he was on felony probation out of Canyon County. Oakes pleaded guilty to the charges on June 14, 2023.
U.S. Attorney Hurwit commended the cooperative efforts of the Drug Enforcement Administration, the Boise Police Department, the Nampa Police Department, and the Idaho State Police, which led to the charges in the Oakes case. Assistant U.S. Attorney Christian Nafzger prosecuted this case.
In a separate case, Jason Lee Elsberry, 40, of Caldwell, was sentenced by U.S. District Judge Amanda K. Brailsford to six and a half years in federal prison to be followed by four years of supervised release for the possession with intent to distribute fentanyl. Elsberry pleaded guilty to the charge on May 23, 2023.
According to court records, on March 8, 2022, law enforcement officers responded to a car fire in Boise. When officers arrived on scene, they conducted an ID verification and discovered Elsberry had two outstanding arrest warrants. While placing Elsberry in handcuffs, he dropped a small ziploc bag that officers believed, based on their training and experience, to be consistent with a controlled substance. A subsequent field test identified the substance as fentanyl and a search of Elsberry’s vehicle uncovered approximately 3,000 fentanyl pills, in the center console. Elsberry admitted that he possessed those pills with the intent to distribute them to other persons. He also admitted that he sold between one and five boats a day (a boat is a street term for 1,000 fentanyl pills), that he received approximately 10,000 pills per week and about a kilogram of fentanyl powder every two weeks.
U.S. Attorney Hurwit commended the investigation by the Boise Police Department, which led to the charges in the Elsberry case. Assistant U.S. Attorney David Morse prosecuted this case.
In another case, Eric Moore, 40, of Boise, was sentenced by Judge Brailsford to 41 months in federal prison to be followed by three years of supervised release for the possession with intent to distribute fentanyl. Moore pleaded guilty to the charge on March 31, 2023
According to court records, between April and June 2022, Moore distributed fentanyl and methamphetamine to an undercover officer in the Treasure Valley on five separate occasions. When Moore was arrested for these offenses, he possessed 60 grams of fentanyl pills.
U.S. Attorney Hurwit credited the cooperative efforts of Drug Enforcement Administration, Boise Police Department, and the Boise Area Narcotics Drugs Interdiction Taskforce, which led to the charges in the Moore case. Assistant U.S. Attorney Erin Blackadar prosecuted the case.
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Three Nevada Men Sentenced in Multimillion-Dollar Prize Notice SchemeRead the Press Release
Three men were sentenced on Friday in Las Vegas for perpetrating a prize-notification scheme that stole more than $10 million from elderly and vulnerable victims.
Mario Castro, 55, of Las Vegas, was sentenced to 240 months in prison. Miguel Castro, 58, of Las Vegas, was sentenced to 235 months in prison. Jose Luis Mendez, 49, of Henderson, Nevada, was sentenced to 168 months in prison. In April, a jury found the three men guilty of conspiracy to commit mail fraud and multiple individual counts of mail fraud.
According to court documents and evidence presented at trial, the three defendants and other co-conspirators printed and mailed millions of fraudulent prize notices that led their victims to believe that they could claim a large cash prize if they paid a fee of about $20 to $25. This was false; victims who paid the fees did not receive anything of value. Once victims fell prey to the scheme, the defendants bombarded them with more fraudulent prize notices. The defendants produced the fake prize notices at their warehouse in Las Vegas. The defendants received millions of dollars of money from victims.
“For eight years, Mario Castro, Miguel Castro, and Jose Luis Mendez used lies and deceit to steal from the elderly and vulnerable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The jury’s verdict and the sentences hold them accountable for their predatory conduct. The department is committed to protecting consumers from mass-mailing schemes.”
The defendants operated the scheme from 2010 to February 2018, when postal inspectors executed multiple search warrants and the Justice Department obtained a court order shutting down the fraudulent mail operation. Mario Castro, Miguel Castro and Jose Luis Mendez worked at the printing and mailing businesses that sent the fraudulent mail and shared the profits from the fraudulent prize notices. The defendants and their co-conspirators ignored multiple cease and desist orders from the U.S. Postal Service that prohibited their mailing companies from sending fraudulent mail. The defendants responded to the cease and desist orders by changing the names of their companies and using straw owners to hide their continuing fraud.
“These defendants took part in a conspiracy that preyed upon and deceived elderly consumers with repeated promises of large cash prizes,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “We are committed to working with the Consumer Protection Branch and U.S. Postal Inspection Service to protect vulnerable members of our community, and to investigate and prosecute fraudsters who target seniors.”
“Postal Inspectors are steadfast in our dedication to protecting the American people from prize-notice schemes and other mail fraud schemes, especially those that target seniors and their hard-earned savings” said Inspector in Charge Eric Shen of the Criminal Investigations Group of the U.S Postal Inspection Service (USPIS). “We work to rid the mail stream from fraudulent mass mailing solicitations and make the mail safe for all.”
Four other people previously pleaded guilty to conspiracy to commit mail fraud in connection with this prize notice scheme: Patti Kern, 65, of Henderson; Andrea Burrow, 43, of Las Vegas; Edgar Del Rio, 45, of Las Vegas; and Sean O’Connor, 54, of Las Vegas.
The USPIS investigated the case.
Trial Attorneys Timothy Finley and Daniel Zytnick of the Civil Division's Consumer Protection Branch and Assistant U.S. Attorney Mina Chang for the District of Nevada prosecuted the case.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Nevada visit www.justice.gov/usao-nv. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Three Nevada Men Sentenced in Multimillion-Dollar Prize Notice SchemeRead the Press Release
LAS VEGAS – Three men were sentenced on Friday in Las Vegas, Nevada for perpetrating a prize-notification scheme that stole more than $10 million from elderly and vulnerable victims. Mario Castro, 55, of Las Vegas, Nevada, was sentenced to 240 months in prison. Miguel Castro, 58, of Las Vegas, Nevada, was sentenced to 235 months in prison. Jose Luis Mendez, 49, of Henderson, Nevada, was sentenced to 168 months in prison. In April, a jury found the three men guilty of conspiracy to commit mail fraud and multiple individual counts of mail fraud.
According to court documents and evidence presented at trial, the three defendants and other co-conspirators printed and mailed millions of fraudulent prize notices that led their victims to believe that they could claim a large cash prize if they paid a fee of about $20 to $25. This was false; victims who paid the fees did not receive anything of value. Once victims fell prey to the scheme, defendants bombarded them with more fraudulent prize notices. The defendants produced the fake prize notices at their warehouse in Las Vegas. The defendants received millions of dollars of money from victims.
“For eight years, Mario Castro, Miguel Castro, and Jose Luis Mendez used lies and deceit to steal from the elderly and vulnerable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The jury’s verdict and today’s sentences hold them accountable for their predatory conduct. The department is committed to protecting consumers from mass-mailing schemes.”
The defendants operated the scheme from 2010 to February 2018, when postal inspectors executed multiple search warrants and the Department of Justice obtained a court order shutting down the fraudulent mail operation. Mario Castro, Miguel Castro, and Jose Luis Mendez worked at the printing and mailing businesses that sent the fraudulent mail and shared the profits from the fraudulent prize notices. The defendants and their co-conspirators ignored multiple cease and desist orders from the United States Postal Service that prohibited their mailing companies from sending fraudulent mail. The defendants responded to the cease and desist orders by changing the names of their companies and using straw owners to hide their continuing fraud.
“These defendants took part in a conspiracy that preyed upon and deceived elderly consumers with repeated promises of large cash prizes,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “We are committed to working with the Consumer Protection Branch and U.S. Postal Inspection Service to protect vulnerable members of our community, and to investigate and prosecute fraudsters who target seniors.”
“Postal Inspectors are steadfast in our dedication to protecting the American people from prize-notice schemes and other mail fraud schemes, especially those that target seniors and their hard-earned savings” said Inspector in Charge Eric Shen of the Criminal Investigations Group of the United States Postal Inspection Service. “We work to rid the mail stream from fraudulent mass mailing solicitations and make the mail safe for all.”
Four other people previously pleaded guilty to conspiracy to commit mail fraud in connection with this prize notice scheme: Patti Kern, 65, of Henderson, Nevada; Andrea Burrow, 43, of Las Vegas; Edgar Del Rio, 45, of Las Vegas; and Sean O’Connor, 54, of Las Vegas.
The U.S. Postal Inspection Service investigated the case.
Trial Attorneys Timothy Finley and Daniel Zytnick of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Mina Chang of the District of Nevada prosecuted the case.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Nevada visit their website at www.justice.gov/usao-nv. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
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Starkville Man Sentenced to Prison for Illegal Possession of a GunRead the Press Release
Oxford, Mississippi – A Starkville man was sentenced on Friday to more than 5 years in prison for possessing a firearm as a convicted felon.
According to court documents, Antonio Hill, 38, previously pled guilty to possession of a firearm by a previously convicted felon. On September 15, U.S. District Court Judge Glen H. Davidson sentenced Hill to 65 months imprisonment followed by a 3-year term of supervised release.
U.S. Attorney Clay Joyner of the Northern District of Mississippi, and Special Agent in Charge Jermicha Fomby of the FBI made the announcement.
This matter was investigated by the FBI and the Starkville Police Department.
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.
St. Peters, Missouri Woman Sentenced to 8 Months in Prison, Ordered to Repay $204,000 for Pandemic FraudRead the Press Release
ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Monday sentenced a woman from St. Peters, Missouri to eight months in prison for defrauding a small business assistance program out of $204,095 during the COVID-19 pandemic.
Trashunda M. Harrison, 38, was also ordered to repay the money.
Harrison pleaded guilty June 6 to three counts of wire fraud and one count of bank fraud and admitted engaging in a scheme to defraud the Paycheck Protection Program from around June 2020 through April 2021. The PPP was intended to save both small businesses and jobs. Harris submitted a total of nine fraudulent applications for PPP loans in the names of three businesses: The Quiet Space LLC, Blow LLC and StrutN 80s LLC, as well as in her own name as a sole proprietor. Harrison lied on the applications about the payroll and income of the businesses and submitted fraudulent tax forms to support her false claims. On applications for additional loans, she falsely claimed to have used the first loan for payroll and other business expenses.
At the time, Harrison had only one functional business, StrutN 80s, which made substantially less than what she claimed in her PPP applications.
Harrison falsely claimed the businesses would use the money for allowed expenses such as payroll. She instead used the PPP money for unapproved purposes, including shopping, dining, rent, cash withdrawals and payments to individuals who had no affiliation with the companies, she admitted in her plea agreement.
Harrison “exploited the COVID-19 pandemic for her personal gain, at the expense of those struggling due to the economic consequences of the pandemic,” Assistant U.S. Attorney Jonathan Clow wrote in a sentencing memo. Clow also pointed out that Harrison used the identity of someone else in two of her loan applications, without that person’s knowledge.
The case was investigated by the FBI. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.
Son of Joaquin Guzman Loera aka “El Chapo” Arraigned on Federal Criminal Charges Following his Extradition from Mexico to the United States for International Drug TraffickingRead the Press Release
Ovidio Guzman Lopez, 33, of Culiacan, Mexico, was arraigned in federal court in Chicago today after his extradition from Mexico to the United States on Sept. 15. In January, Guzman Lopez was arrested in Mexico pursuant to a U.S. request for his provisional arrest with a view toward extradition.
Guzman Lopez, aka El Raton and Raton Nuevo, is charged in the Northern District of Illinois with five counts in a nine-count 12th superseding indictment alleging that from around May 2008 and continuing to at least Oct. 21, 2021, he engaged in a drug trafficking Continuing Criminal Enterprise (CCE), along with additional drug, money laundering, and firearms charges. Guzman Lopez is charged with conspiring to distribute cocaine, heroin, methamphetamine, and marijuana from Mexico and elsewhere for importation into the United States.
According to court documents, the charges stem from a decades-long, collaborative, multi-district effort between the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS), based in Washington, D.C., the Northern District of Illinois, the Southern District of California, and their law enforcement partners.
Under the terms of the U.S.-Mexico extradition treaty, the United States had up to 60 days to present a fully supported request, one in compliance with the terms of the treaty. The United States submitted that request in February 2023. A Mexican court reviewed the U.S. request and last month favorably recommended his extradition. The Foreign Ministry reviewed the decision and similarly concluded that Guzman Lopez should be extradited to the United States. Guzman Lopez was subsequently extradited to the United States on Sept. 15. He was arraigned on the charges earlier today before U.S. District Judge Sharon Johnson Coleman of the U.S. District Court for the Northern District of Illinois and pleaded not guilty. He waived his right to a detention hearing and was ordered to remain detained without bond.
Guzman Lopez is one of the sons of Joaquin Guzman Loera, aka El Chapo, who was convicted by a jury in the Eastern District of New York for his role as the leader of the Sinaloa Cartel. Following Guzman Loera’s arrest in January 2016 and extradition to the United States in January 2017, Guzman Lopez and his three brothers, Ivan Archivaldo Guzman Salazar, Jesus Alfredo Guzman Salazar, and Joaquin Guzman Lopez, aka “the Chapitos,” who are also charged in the indictment, allegedly assumed their father’s former role as leaders of the Sinaloa Cartel, along with Zambada Garcia and Damaso Lopez Nunez, aka Licenciado. The Chapitos subsequently amassed greater control over the Sinaloa Cartel by allegedly threatening and causing violence against Lopez Nunez, his family, and his associates and, as a result, became principal leaders and drug traffickers within the Sinaloa Cartel.
Guzman Lopez was also indicted in the Southern District of New York on charges of continuing criminal enterprise, fentanyl importation conspiracy, fentanyl distribution conspiracy, possession of machineguns and destructive devices, conspiracy to possess machineguns and destructive devices, and conspiracy to commit money laundering.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois, Acting U.S. Attorney Andrew R. Haden for the Southern District of California, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI), and U.S. Drug Enforcement Administration (DEA) Administrator Anne Milgram made the announcement.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state, and local law enforcement agencies.
The FBI Washington, San Diego, and El Paso Field Offices, HSI Nogales Office, DEA’s Chicago and San Diego Divisions, and IRS Criminal Investigation’s Chicago Office investigated the case.
The Justice Department’s Office of International Affairs handled the extradition, in collaboration with the U.S. Marshals Service. The Office of Enforcement Operations also provided significant assistance in the case.
The Justice Department thanks the Government of Mexico, including the Mexican Foreign Ministry and the Mexican Attorney General’s Office. Earlier today, U.S. Attorney General Merrick B. Garland spoke by phone with Mexico’s Attorney General Alejandro Gertz Manero to express his gratitude to Attorney General Gertz and the Government of Mexico for successfully extraditing Guzman Lopez.
Trial Attorney Kirk Handrich of NDDS, Assistant U.S. Attorneys Andrew Erskine and Erika Csicsila for the Northern District of Illinois, and Assistant U.S. Attorney Matthew Sutton for the Southern District of California are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sharon Resident Convicted of Drug Trafficking and Firearm CrimesRead the Press Release
PITTSBURGH, PA – Raymond Briskey was convicted of committing cocaine and crack trafficking and firearm crimes, United States Attorney Eric G. Olshan announced today.
Briskey, age 38, of Sharon, Pennsylvania, pled guilty before United States District Judge Joy Flowers Conti. He pled guilty to possessing with intent to distribute cocaine and cocaine base on October 21, 2020, and to possessing a firearm in furtherance of a drug trafficking crime on that date. Judge Conti scheduled sentencing to occur on April 18, 2024, at 11:00 a.m.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Mercer County Drug Task Force, the Pennsylvania Office of Attorney General, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the return of the Indictment in this 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 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.
Savannah woman sentenced to more than 10 years in prison for violent armed robberyRead the Press Release
SAVANNAH, GA: A Chatham County woman has been sentenced to more than 10 years in federal prison after pleading guilty to the violent armed robbery of a vendor stocking an automatic teller machine.
Shannan Barnwell, 25, of Savannah, was sentenced to 170 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon; Interference with Interstate Commerce by Robbery; and Possession of a Firearm in Furtherance of a Crime of Violence, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Lisa Godbey Wood also ordered Barnwell to serve five years of supervised release upon completion of her prison term.
There is no parole in the federal system.
“It is extraordinarily fortunate that no one was hurt during this robbery,” said U.S. Attorney Steinberg. “The sentence imposed by the court is a direct consequence of Barnwell’s decision to put innocent individuals’ lives in danger for her own financial gain.”
As described in court documents and testimony, a vendor was restocking an automatic teller machine on Burroughs Street in Savannah on Sept. 27, 2022, when Barnwell brandished a handgun and declared a robbery. As Barnwell took containers of cash from the vendor, the attendant drew his firearm and Barnwell ran away, firing two shots with one striking the ATM. No individuals were struck by gunfire, and the vendor did not fire his weapon.
Savannah police officers located and arrested Barnwell at a nearby park, and recovered the cash receptacles and two pistols that Barnwell had dropped as she fled. At the time of the robbery, Barnwell was on parole from a previous conviction for armed robbery and carjacking, and her sentence will be served consecutive to the incarceration for the state parole violation.
“Barnwell terrorized and threatened her innocent victim,” said FBI Savannah Supervisory Senior Resident Agent Will Clarke. “This lengthy prison sentence hopefully provides some peace to the victim by ensuring Barnwell cannot terrorize anyone for decades to come.”
The Savannah Police Department and the FBI investigated the case, which was prosecuted for the United States by Assistant U.S. Attorney and Deputy Criminal Division Chief E. Gregory Gilluly Jr. and Special Assistant U.S. Attorney Makeia R. Jonese.
Russian International Money Launderer Arrested for Illicitly Procuring Large Quantities of U.S.-Manufactured Dual-Use Military Grade Microelectronics for Russian ElitesRead the Press Release
Maxim Marchenko, 51, a Russian citizen who has resided in Hong Kong, was charged today in connection with conspiring to defraud the United States and with smuggling, wire fraud, and money laundering offenses based on his alleged participation in a scheme to unlawfully procure U.S.-sourced, dual-use microelectronics with military applications on behalf of end users in Russia.
“According to the complaint, Marchenko employed a web of shell companies as part of an overseas smuggling ring to ship dual-use U.S. technology with military applications to Russia in contravention of U.S. law,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s action reinforces the Department’s commitment to protect U.S. security and counter Russian aggression in Ukraine through the vigorous enforcement of our export control laws.”
“As alleged, Maxim Marchenko participated in an illicit procurement network that provided military grade microelectronics to end users in Russia,” said U.S. Attorney Damian Williams for the Southern District of New York. “Following Russia’s unjust invasion of Ukraine, Marchenko and his co-conspirators are alleged to have used shell companies and other deceptive measures in order to secure U.S.-manufactured microelectronics, with applications including in rifle scopes, night-vision goggles, thermal optics, and weapon systems, for use by Russians. This office will relentlessly pursue those who seek to flout U.S. law in order to supply Russia with military technology.”
“Today’s charges demonstrate the FBI’s ability to leverage its international presence and partnerships to stop the illegal transfer of dual-use technology to Russia,” said Executive Assistant Director Larissa L. Knapp of the FBI's National Security Branch. “As alleged in the charges, Marchenko and his co-conspirators engaged in an elaborate, fraudulent scheme to smuggle military-grade technology with the potential to harm U.S. national security. The FBI and our partners will never waver in our commitment to keep Americans safe.”
“We are laser-focused on rooting out the procurement networks fueling the Russian war machine,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “Working hand-in-hand with our federal law enforcement partners, we will continue to identify and disrupt Russia’s use of front companies in the People’s Republic of China and elsewhere to evade our controls.”
“Disrupting the efforts of facilitators and procurement agents like Marchenko, who use their skills and connections to advance the agenda of the Russian war machine, is one of the most important priorities of this task force. Today’s arrest should serve as another reminder that we will leverage and deploy every tool to bring these criminals to justice,” said Task Force KleptoCapture Co-Director David Lim.
According to court documents, Maxim Marchenko is a Russian national who resides in Hong Kong and operates several Hong Kong-based shell companies, including Alice Components Co. Ltd. (Alice Components), Neway Technologies Limited (Neway) and RG Solutions Limited (RG Solutions). Marchenko and two co-conspirators (CC-1 and CC-2), who are also Russian nationals, have operated an illicit procurement network in Russia, Hong Kong and elsewhere overseas. This procurement network has fraudulently obtained from U.S. distributors large quantities of dual-use, military grade microelectronics, specifically OLED micro-displays, on behalf of Russia-based end users. To carry out this scheme, Marchenko, CC-1 and CC-2 used shell companies based in Hong Kong and other deceptive means to conceal from U.S. Government agencies and U.S. distributors that the OLED micro-displays were destined for Russia. The technology that Marchenko and his co-conspirators fraudulently procured have significant military applications, such as in rifle scopes, night-vision googles, thermal optics and other weapon systems.
To perpetrate the scheme, Marchenko and other members of the conspiracy acquired the dual-use OLED micro-displays from U.S.-based distributors using Marchenko’s Hong Kong-based shell companies, including Alice Components, Neway and RG Solutions. Members of the conspiracy, including Marchenko, procured these sensitive microelectronics by falsely representing to the U.S. distributors (who, in turn, are required to report to U.S. agencies) that Alice Components was sending the shipments to end users located in China, Hong Kong and other countries outside of Russia for use in electron microscopes for medical research. In reality, the OLED micro-displays were destined for end users in Russia. Marchenko and other members of the conspiracy concealed the true final destination (Russia) from U.S. distributors for the purpose of causing false statements to the U.S. agencies.
To conceal the fact that these OLED micro-displays were destined for Russia, Marchenko and other members of the conspiracy worked together to transship the illicitly procured OLED micro-displays by using pass-through entities principally operated by Marchenko in third countries, such as Hong Kong. Marchenko then caused the OLED micro-displays to be shipped to the ultimate destination in Russia using, among other entities, a freight forwarder known to provide freight forwarding services to Russia. In addition, Marchenko and other members of the conspiracy used Hong Kong-based shell companies, principally operated by Marchenko, to conceal the fact that payments for the OLED micro-displays were coming from Russia. In total, between in or about May 2022 and in or about August 2023, Marchenko’s shell companies funneled a total of more than $1.6 million to the United States in support of the procurement network’s efforts to smuggle the OLED micro-displays to Russia.
Marchenko is charged with conspiracy to defraud the United States, which carries a maximum penalty of five years in prison; conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison; conspiracy to smuggle goods from the United States, which carries a maximum penalty of five years in prison; money laundering, which carries a maximum penalty of 20 years in prison; smuggling goods from the United States, which carries a maximum penalty of 10 years in prison; conspiracy to commit wire fraud, which carries a maximum penalty of 20 years in prison; and wire fraud, which carries a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. sentencing guidelines and other statutory factors.
The FBI and Commerce Department’s Bureau of Industry and Security are investigating the case. The FBI Legal Attaché in Australia; U.S. Department of State’s Diplomatic Security Service (DSS); and the Justice Department’s Office of International Affairs provided valuable assistance.
The Southern District of New York is prosecuting the case, with assistance from the National Security Division’s Counterintelligence and Export Control Section.
Today’s actions were coordinated through the Justice Department’s Task Force KleptoCapture and the Justice and Commerce Departments’ Disruptive Technology Strike Force. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Marchenko complaintRussian International Money Launderer Arrested for Illicitly Procuring Large Quantities of U.S.-Manufactured Dual-Use, Military Grade Microelectronics for Russian EntitiesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Matthew G. Olsen, the Assistant Attorney General of the Justice Department’s National Security Division, David Lim, Co-Director of Task Force KleptoCapture, James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Matthew S. Axelrod, the Assistant Secretary of Commerce for Export Enforcement, announced the unsealing of a Complaint charging MAXIM MARCHENKO with conspiring to defraud the United States and with smuggling, wire fraud, and money laundering offenses based on MARCHENKO’s alleged participation in a scheme to unlawfully procure U.S.-sourced, dual-use microelectronics with military applications on behalf of end users in Russia. MARCHENKO was presented before U.S. Magistrate Judge Andrew E. Krause in White Plains federal court earlier today and ordered detained.
U.S. Attorney Damian Williams said: “As alleged, Maxim Marchenko participated in an illicit procurement network that provided military grade microelectronics to end users in Russia. Following Russia’s unjust invasion of Ukraine, Marchenko and his co-conspirators are alleged to have used shell companies and other deceptive measures in order to secure U.S.-manufactured microelectronics, with applications including in rifle scopes, night-vision goggles, thermal optics, and weapon systems, for use by Russians. This Office will relentlessly pursue those who seek to flout U.S. law in order to supply Russia with military technology.”
Assistant Attorney General Matthew G. Olsen said: “According to the complaint, Marchenko employed a web of shell companies as part of an overseas smuggling ring to ship dual-use U.S. technology with military applications to Russia in contravention of U.S. law. Today’s action reinforces the Department’s commitment to protect U.S. security and counter Russian aggression in Ukraine through the vigorous enforcement of our export control laws.”
Co-Director of Task Force KleptoCapture David Lim said: “Disrupting the efforts of facilitators and procurement agents like Marchenko, who use their skills and connections to advance the agenda of the Russian war machine, is one of the most important priorities of this Task Force. Today’s arrest should serve as another reminder that we will leverage and deploy every tool to bring these criminals to justice.”
FBI Assistant Director in Charge James Smith said: “Attempts by individuals to circumvent U.S. law through money laundering and other forms of deception undermine foreign policy established to keep the United States and our allies safe. Marchenko allegedly defied U.S. law by procuring sensitive American-made electronics on behalf of the Russian end users, directly endangering citizens in both Ukraine and the United States. The FBI will not yield in its efforts to stop those who deceive the U.S. government and directly jeopardize our national security.”
Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod said: “We are laser-focused on rooting out the procurement networks fueling the Russian war machine. Working hand-in-hand with our federal law enforcement partners, we will continue to identify and disrupt Russia’s use of front companies in the People’s Republic of China and elsewhere to evade our controls.”
According to the allegations contained in the Complaint unsealed today in White Plains federal court:[1]
MAXIM MARCHENKO is a Russian national who resides in Hong Kong and operates several Hong Kong-based shell companies, including Alice Components Co. Ltd. (“Alice Components”), Neway Technologies Limited (“Neway”), and RG Solutions Limited (“RG Solutions”). MARCHENKO and two co-conspirators (“CC-1” and “CC-2”), who are also Russian nationals, operate an illicit procurement network in Russia, Hong Kong, and elsewhere overseas. This procurement network has fraudulently obtained from U.S. distributors large quantities of dual-use, military grade microelectronics, specifically OLED micro-displays, on behalf of Russia-based end users. To carry out this scheme, MARCHENKO, CC-1, and CC-2 used shell companies based in Hong Kong and other deceptive means to conceal from U.S. Government agencies and U.S. distributors that the OLED micro-displays were destined for Russia. The technology that MARCHENKO and his co-conspirators fraudulently procured have significant military applications, such as in rifle scopes, night-vision googles, thermal optics, and other weapon systems.
To perpetrate the scheme, MARCHENKO and other members of the conspiracy acquired the dual-use OLED micro-displays from U.S.-based distributors using MARCHENKO’s Hong Kong-based shell companies, including Alice Components, Neway, and RG Solutions. Members of the conspiracy, including MARCHENKO, procured these sensitive microelectronics by falsely representing to the U.S. distributors (who, in turn, are required to report to U.S. agencies) that Alice Components was sending the shipments to end users located in China, Hong Kong, and other countries outside of Russia for use in electron microscopes for medical research. In reality, the OLED micro-displays were destined for end users in Russia. MARCHENKO and other members of the conspiracy concealed the true final destination (Russia) from U.S. distributors for the purpose of causing false statements to the U.S. agencies.
To conceal the fact that these OLED micro-displays were destined for Russia, MARCHENKO and other members of the conspiracy worked together to transship the illicitly procured OLED micro-displays by using pass-through entities principally operated by MARCHENKO in third countries, such as Hong Kong. MARCHENKO then caused the OLED micro-displays to be shipped to the ultimate destination in Russia using, among other entities, a freight forwarder known to provide freight forwarding services to Russia. In addition, MARCHENKO and other members of the conspiracy used Hong Kong-based shell companies, principally operated by MARCHENKO, to conceal the fact that payments for the OLED micro-displays were coming from Russia. In total, between in or about May 2022 and in or about August 2023, MARCHENKO’s shell companies funneled a total of more than $1.6 million to the United States in support of the procurement network’s efforts to smuggle the OLED micro-displays to Russia.
* * *
MARCHENKO, 51, a Russian citizen who has resided in Hong Kong, is charged with conspiracy to defraud the United States, which carries a maximum sentence of five years in prison; conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; conspiracy to smuggle goods from the United States, which carries a maximum sentence of five years in prison; money laundering, which carries a maximum sentence of 20 years in prison; smuggling goods from the United States, which carries a maximum sentence of 10 years in prison; conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; and wire fraud, which carries a maximum sentence of 20 years in prison.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division and the New York Field Office of the Bureau of Industry and Security of the Department of Commerce. Mr. Williams also thanked the FBI’s Legal Attaché office in Australia; the U.S. Department of State’s Diplomatic Security Service; the Department of Justice’s National Security Division, Counterintelligence and Export Control Section; and the Office of International Affairs of the Department of Justice’s Criminal Division for their assistance.
This case is being handled by the Office’s White Plains Division and Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Jennifer N. Ong and Shiva H. Logarajah are in charge of the prosecution, with assistance from Trial Attorney Garrett Coyle of the Counterintelligence and Export Control Section.
Today’s actions were coordinated through the Justice Department’s Task Force KleptoCapture. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.
The charges in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Ringleader Sentenced to 25 Years for Counterfeit Drug Trafficking ConspiracyRead the Press Release
BEAUMONT, Texas – A Houston man who led a counterfeit drug trafficking scheme has been sentenced to federal prison for drug trafficking and money laundering violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Byron A. Marshall, 45, pleaded guilty to conspiracy, trafficking in counterfeit drugs, and money laundering conspiracy and was sentenced to 300 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to the indictment, from April 2014 until August 2021, Marshall conspired with ten others including Adam P. Runsdorf, the owner and president of Woodfield Pharmaceutical LLC based in Boca Raton, Florida.
According to information presented in court, Marshall utilized Woodfield Pharmaceutical’s manufacturing facility and employees in Houston to produce more than 500,000 pints of counterfeit cough syrup. Marshall’s drug trafficking organization sold the counterfeit drugs across Texas, Louisiana, Mississippi, Alabama, Georgia, South Carolina, Tennessee, Wisconsin, California, Florida, Arkansas, and Ohio. Prices generally ranged from $100 to more than $1,000 per one-pint bottle. Depending on the market and brand of cough syrup, prices went as high as $3,800 to $4,000 per pint.
During the conspiracy, Marshall communicated directly with Runsdorf regarding production of the counterfeit cough syrup. At Runsdorf’s request, Marshall paid Woodfield Pharmaceutical in cash only, and Woodfield employees mailed the cash directly to Runsdorf in Boca Raton.
“Mr. Marshall was the ringleader of a drug trafficking organization responsible for selling counterfeit drugs across most of the southeastern United States and many other states,” said U.S. Attorney Damien M. Diggs. “Drug trafficking organizations like this are a cancer to our nation and present a substantial threat to our communities. Today’s significant sentence should send a clear message to such organizations that the Eastern District of Texas along with our federal, state, and local law enforcement partners will remain laser-focused on crippling drug trafficking organizations that choose to distribute drugs and other poisons in our communities.”
All eleven defendants charged in the indictment pleaded guilty. Eight have been sentenced including Marshall. Adam Runsdorf and Tunji Campbell pleaded guilty to conspiracy, trafficking in counterfeit drugs, and money laundering conspiracy. Campbell, who partnered with Marshall to hatch the scheme, was sentenced to 135 months imprisonment. Runsdorf was sentenced to 72 months imprisonment and ordered to forfeit $5 million and a McLaren sportscar. Chauntell D. Brown pleaded guilty to conspiracy and trafficking in counterfeit drugs and was sentenced to 72 months imprisonment. Cheryl A. Anderson, Ashley A. Rhea, Maria Anzures-Camarena and Kalpen Patel, each pleaded guilty to conspiracy and were sentenced to 60 months imprisonment. Three others are awaiting sentencing.
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 was investigated by the Drug Enforcement Administration; U.S. Food and Drug Administration Office of Criminal Investigations; Internal Revenue Service-Criminal Investigation; Federal Bureau of Investigation; U.S. Marshals Service; Houston Police Department; Galveston Police Department; Galveston County Sheriff’s Office; Dickinson Police Department; League City Police Department; Pearland Police Department; Pasadena Police Department; Texas City Police Department; Harris County Precent #2; Brazoria County Sheriff’s Office; Fort Bend County Sheriff’s Office; Liberty County Sheriff’s Office; and the Texas National Guard. This case was prosecuted by Assistant U.S. Attorneys John B. Ross, Jonathan C. Lee, and Robert A. Wells.
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Richmond Man Sentenced to 15 Years for Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Richmond, Mo., man has been sentenced in federal court for distributing child pornography.
Zachary Ryan Taylor, 32, was sentenced by U.S. District Judge Stephen R. Bough on Friday, Sept. 15, to 15 years in federal prison without parole. The court also ordered Taylor to pay $25,215 in restitution to the child victims depicted in the images of child pornography.
The court also sentenced Taylor to 20 years of supervised release following incarceration. He will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
On March 8, 2023, Taylor pleaded guilty to one count of distributing child pornography. Taylor admitted that he participated in a chatroom through the online application Kik. Taylor communicated with an online covert employee with the FBI, claiming to be sexually active with a child victim. He sent the covert FBI employee an image of child pornography that he claimed was the child victim, although investigators do not believe the photo actually was a depiction of the child victim. Taylor also claimed he had been with a second child victim.
On Dec. 21, 2021, the FBI and other law enforcement personnel executed a search warrant at Taylor’s residence. Upon arrival at the residence, the emergency lights on law enforcement vehicles were activated, and officers knocked and announced their presence. Taylor narrowly opened the front door to look out. After he failed to completely open the door despite orders to open the door and show his hands, the door was forced open.
Investigators seized several cell phones and other electronic devices, which contained hundreds of videos and images of child pornography.
The Western Missouri Cyber Crimes Task Force also investigated two cybertips, from Musical.ly and Kik, which reported that Taylor had uploaded images and videos of child pornography to those platforms.
This case was prosecuted by Assistant U.S. Attorney Alison D. Dunning. It was investigated by the FBI and the Richmond, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Renton, Washington, man sentenced to 3+ years for bringing box of Molotov cocktails to protest march in summer of 2020Read the Press Release
Seattle – A 35-year-old Renton, Washington, man was sentenced today in U.S. District Court in Seattle to 40 months in prison for his role in a plot to burn the Seattle Police Officers Guild building in downtown Seattle in September 2020, announced Acting U.S. Attorney Tessa M. Gorman. Justin Christopher Moore pleaded guilty in September 2022. At the sentencing hearing, U.S. District Judge Lauren King said, “What you did showed a complete disregard for human life. Our ability to peacefully assemble is a fundamental right to our society. Your acts of violence can deter people from exercising that fundamental right.”
According to records filed in the case, Moore made and carried a box of 12 Molotov cocktails in a protest march to the Seattle Police Officers Guild (SPOG) building on Labor Day, September 7, 2020. Ultimately the marchers were moved away from the building in downtown Seattle. Police smelled gasoline and grew concerned about the intentions of protestors. The box containing the 12 gasoline devices was found in the parking lot next to the SPOG building. Using video from that day and from other protests, as well as information from the electronic devices of other co-conspirators, Moore was confirmed as the person seen carrying the box of destructive devices.
In June 2021, law enforcement executed a search warrant at Moore’s residence. They seized clothing that is consistent with the images of what Moore was wearing when he carried the Molotov cocktails. From the basement storage area, they also recovered numerous items that are consistent with manufacturing explosive devices. Law enforcement recovered a notebook in which Moore had made entries related to the manufacturing of destructive devices and the ingredients necessary.
In asking for a 41-month sentence, Assistant United States Attorney Todd Greenberg noted that carrying and leaving the box of explosive bottles was inherently dangerous. “Moore’s offense was extremely dangerous and created a substantial risk of injury to numerous bystanders…. Moore carried the box of twelve Molotov cocktails in a crowd of over 1,000 people who were participating in the protest march. All of them were in harm’s way if one of the devices had exploded.”.
The case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Portland Man Sentenced to 25 Years in Federal Prison for Drug and Gun CrimesRead the Press Release
PORTLAND, Ore.—A Portland man whose 20-year federal prison term was cut short by a commutation was sentenced to an additional 25 years in prison today for dealing counterfeit oxycodone pills containing fentanyl analogue, money laundering, and unlawfully possessing firearms, all while on supervised release from his last federal conviction.
Dontae Lamont Hunt, 42, was sentenced to 300 months in federal prison and five years’ supervised release. Hunt was also ordered to pay $60,000 to satisfy a forfeiture money judgment.
In September 2005, Hunt was sentenced to 240 months in federal prison and eight years’ supervised release after pleading guilty to possessing with intent to distribute crack cocaine and carrying a firearm during and in relation to a drug trafficking crime. In October 2016, Hunt was released from prison early, to a halfway house, after receiving a sentence commutation.
According to court documents and trial testimony, only months after receiving his commutation, Hunt began distributing counterfeit oxycodone pills laced with carfentanil, a potent controlled substance sometimes used as an elephant tranquilizer. In December 2017, Hunt was shot multiple times outside an apartment building in Eugene, Oregon. A surveillance video of the shooting showed Hunt walking in a nearby parking lot while talking on a cellphone and carrying a satchel. Immediately after the shooting, Hunt’s girlfriend came to his aid, retrieved the satchel, and placed it in a vehicle used to drop Hunt off at a Eugene hospital.
After departing the hospital, the vehicle was stopped by Eugene police officers for a traffic violation and searched. Officers recovered a bloodstained satchel containing two loaded firearms, both of which were later determined to have Hunt’s DNA on them. Back at the shooting scene, officers found a large amount of blood and an iPhone near where Hunt was shot. On the phone, investigators found evidence of Hunt’s drug trafficking, including text messages and photos of what appeared to be counterfeit Oxycodone pills. Further investigation revealed that Hunt distributed the counterfeit pills in and around Portland and that his drug trafficking was connected to a fatal drug overdose in June 2018.
In September 2018, investigators searched three properties linked to Hunt, including his residence in Northeast Portland. At his residence, Hunt refused commands to surrender and remained alone upstairs for approximately 15 minutes. After he was taken into custody, Portland Police Bureau officers found blue pills adjacent to an upstairs toilet, consistent with and indicative of Hunt disposing of evidence. Agents also located several dozen additional blue pills concealed in a jar of baby ointment, three firearms, and a gun box labeled with the make, model, and serial number of one of the firearms found in the bloodstained satchel in Eugene. Lab reports later confirmed the pills seized contained fentanyl analogue. Cellphones seized from Hunt’s residence contained additional evidence of his drug trafficking activities. Agents also recovered more than $40,00 in cash and seized multiple vehicles.
In October 2022, a federal jury found Hunt guilty on multiple gun, drug, and money laundering charges.
This case was investigated jointly by the Portland Police Bureau, IRS-Criminal Investigation, and FBI with assistance from U.S. Drug Enforcement Administration and the Eugene Police Department. It was prosecuted by Peter Sax, Gary Sussman, and Suzanne Miles, Assistant U.S. Attorneys for the District of Oregon. Forfeiture litigation was handled by Assistant U.S. Attorney Julia Jarrett.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Pharmacy Operators and Pharmacist Charged with $33 Million Health Care Fraud, Wire Fraud, and Kickback ConspiracyRead the Press Release
NEWARK, N.J. – Two pharmacy executives and a pharmacist were arraigned today on charges of defrauding Medicare and TRICARE by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced. The pharmacy executives are also charged with paying and conspiring to pay illegal kickbacks.
William B. Welwart 69, of Staten Island, New York; Ethan B. Welwart, 35, of Bolivar, New York; and Gary Kaczka, 62, of Saddle Brook, New Jersey, are each charged in a 22-count indictment with conspiracy to commit health care fraud and wire fraud, and health care fraud. William and Ethan Welwart are additionally charged with wire fraud, conspiracy to violate the federal anti-kickback statute, and payment of illegal kickbacks. The defendants appeared today before U.S. District Judge Esther Salas and were each released on $250,000 bond.
According to the indictment:
From January 2017 to December 2020, the defendants operated pharmacies, including Apogee Bio-Pharm LLC in Edison, New Jersey. William B. Welwart was the CEO and owner of Apogee. Ethan B. Welwart was director of operations at Apogee and the purported owner of additional pharmacies used to perpetuate the scheme. Kaczka was a pharmacist-in-charge at Apogee. The defendants and others agreed to engage in a scheme to defraud insurance payors, including Medicare and TRICARE, by working with marketing companies to generate medically unnecessary prescriptions through a telemarketing and telemedicine scheme. The Welwarts and others also agreed to pay kickbacks to marketing companies in return for the marketing companies referring prescriptions for expensive medications to the pharmacies.
The marketing companies identified Medicare and TRICARE beneficiaries to target for expensive drugs and contacted the beneficiaries by telephone to pressure them to agree to try expensive medications, such as pain creams, scar creams, eczema creams, and migraine medication. The marketing companies then transmitted recordings of telephone calls with the beneficiaries, together with pre-marked prescription pads for particular drugs that would yield exorbitant reimbursements, to telemedicine companies. The marketers paid the telemedicine companies kickbacks for every beneficiary referred for a prescription, and the telemedicine companies paid doctors to approve the prescriptions. The marketing companies then directed the prescriptions to pharmacies, including Apogee, with which they had kickback arrangements. The pharmacies filled the prescriptions and sought reimbursement from federal health care benefit programs, including Medicare and TRICARE. The pharmacies, including Apogee, then paid a portion of each reimbursement to the marketing companies as a kickback. The defendants and their conspirators caused a loss to Medicare and other federal health care benefit programs of over $33 million.
The health care fraud and wire fraud conspiracy charges carries a maximum potential penalty of 20 years in prison; the health care fraud charges carry a maximum potential penalty of 10 years in prison; the wire fraud charges carry a maximum potential penalty of 20 years in prison; the charge of conspiracy to violate the Anti-Kickback Statute carries a maximum potential penalty of five years in prison; and the charges of payment of illegal kickbacks are punishable by 10 years in prison. All of the counts are also punishable by a fine of $250,000, or twice the gain or loss from the offense, whichever is greatest.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit and Barbara Ward, Senior Trial Counsel of the Asset Recovery and Money Laundering Unit, in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
apogee.indictment.pdfOmaha Man Sentenced to 5 Years for Possession of a FirearmRead the Press Release
Acting United States Attorney Susan Lehr announced that James E. Williams, 50, of Omaha, Nebraska, was sentenced on September 15, 2023, in Omaha by Chief United States District Judge Robert F. Rossiter, Jr. for possessing a firearm in furtherance of a drug trafficking crime. Williams was sentenced to 60 months in prison and will also serve two years on supervised release. There is no parole in the federal system.
On April 12, 2021, Williams sold to a cooperating witness working with law enforcement 3.6 grams of cocaine and two firearms, a Colt M4 Carbine .22 caliber rifle and an Iver Johnson .38 caliber revolver. The transaction, which was audio and video recorded, occurred inside a garage of an Omaha residence.
This case was investigated by the Omaha Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Ohio coding consultant agrees to settle allegations regarding neurostimulator devicesRead the Press Release
HOUSTON – A 47-year-old healthcare consultant has agreed to pay $30,000 to settle allegations that she assisted in causing the submission of false claims, announced U.S. Attorney Alamdar S. Hamdani.
Franceene McKinney is a medical information technology and coding consultant based in the Cincinnati area. Through her business, IOS Consultants LLC, she provided services to doctors, chiropractors and other medical professionals across the country, including in the Southern District of Texas.
From Jan. 1, 2016, to Dec. 31, 2020, McKinney aided those providers in billing Medicare fraudulently, pointing them to a billing code designed for the surgical implantation of neurostimulator electrodes. These are invasive procedures usually requiring the use of an operating room. Medicare pays thousands of dollars per procedure.
However, the providers McKinney assisted did not perform surgical procedures. Instead, patients received devices used for electro-acupuncture, which only involves inserting needles into patients’ ears and taping the neurostimulator behind them with an adhesive.
In addition to the financial settlement, McKinney and IOS have agreed to a three-year period of exclusion from participation in any federal health care programs.
To date, this is the tenth case the Southern District of Texas has resolved for similar conduct. The other matters included settlements with a Katy anesthesiologist, Houston pain doctor, Rockport chiropractor, Houston chiropractor, Laredo pain doctor, The Woodlands pain doctor, Cypress marketing representative, and two separate settlements (linked here and here) with Cypress podiatrists.
The Department of Health and Human Services – Office of Inspector General conducted the investigation. Assistant U.S. Attorney Brad Gray handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Ocean County Man Charged with Sexually Exploiting MinorsRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man made his initial court appearance today on charges of producing and distributing videos and images depicting child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Christopher Budelman, 36, Brick, New Jersey, is charged by complaint with two counts of production of child pornography and one count of distribution of child pornography. He made his initial appearance before U.S. Magistrate Judge Douglas E. Arpert by videoconference and was detained.
According to documents filed in this case and statements made in court:
In June 2022, while communicating via an online video chat site, Budelman enticed at least two minors to engage in sexually explicit conduct while he masturbated. Budelman recorded and saved those video chats on his computer. From September 2021 to June 2022, Budelman used two Kik Messenger accounts to send images and videos containing child sexual abuse, including images and videos depicting prepubescent minors, to others.
The charges of sexual exploitation of children each carry a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine. The charge of distribution of child exploitation material carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz; the Ocean County Prosecutor’s Office High Tech Crime Unit, under the direction of Prosecutor Bradley D. Billhimer; the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; and Brick Township Police Department, under the direction of Chief David Forrester, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Ashley Super Pitts of the Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
budelman.complaint.pdfNorth Carolina Man Convicted of Defrauding Attorneys Through International Fraud SchemeRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Omoyoma Christopher Okoro, age 49, of North Carolina, was found guilty of all charges against him following a five-day jury trial that concluded on September 15, 2023. The indictment charged Okoro with conspiracy to commit wire fraud affecting a financial institution, mail fraud affecting a financial institution, and bank fraud. In addition, Okoro was charged with two counts of wire fraud affecting a financial institution, one count of mail fraud affecting a financial institution, and one count of bank fraud.
According to United States Attorney Gerard M. Karam, Okoro, a naturalized U.S. citizen of Nigerian origin, resided in Nigeria before moving to the United States around 2013. Between 2006 and 2010, Okoro, along with other unnamed coconspirators, conspired to defraud attorneys located in the United States through what became known as the “attorney collection scheme.” Through this scheme, attorneys in the United States were contacted by a prospective “client” in a foreign country who purported to be in need of legal representation. The client would typically claim to be owed money from someone in the United States resulting from a business transaction, settlement from a dispute, or an accident. If the attorney responded to the initial inquiry, the attorney would then be told that the other party had agreed to settle the matter and was prepared to make a payment. Soon after that, the attorney would receive a counterfeit “official check” supposedly issued by a U.S. bank in the mail. The attorney was directed by the client to deposit the check into his or her law firm escrow account, keep a portion of the funds as payment for services, and wire the balance to a foreign bank account, typically located in an East Asian country. Once the funds reached the foreign bank account, they were immediately withdrawn by a member of the conspiracy, generally before the attorney victim realized that he or she had been defrauded. The attorney and the attorney’s bank would then be left responsible for the loss once they realized that the official check was counterfeit.
The evidence at trial showed Okoro communicating with numerous other members of the conspiracy, including individuals responsible for furnishing the financial accounts in East Asia used to receive victim funds, as well as individuals who appeared to be in contact with attorney victims. On numerous occasions, Okoro was either the sender or recipient of emails confirming that an attorney victim had wired funds to a foreign bank account. In addition, evidence at trial showed funds flowing back to Okoro from coconspirators located in the area of Toronto, Canada, where several key members of the conspiracy resided.
In total, it is believed that over $20 million in fraudulent proceeds were actually obtained through the attorney collection scheme, and over $70 million in attempted fraud occurred. Okoro represents the latest defendant to be prosecuted in this district for his role in the attorney collection scheme. Prior defendants include Emmanuel Ekhator and Yvette Mathurin, previously residents of Canada and Nigeria, and Kingsley Osagie of Nigeria. For more information, please see https://www.justice.gov/usao-mdpa/pr/nigerian-national-sentenced-100-months-involvement-scheme-defraud-lawyers-out-millions. They also include Henry Okpalefe, previously a resident of Toronto, Canada and Nigeria. For more information, please see https://www.justice.gov/usao-mdpa/pr/canadian-man-sentenced-18-years-imprisonment-multi-million-dollar-fraud-targeting-us.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Ravi Romel Sharma, Assistant U.S. Attorney David C. Williams, and U.S. Department of Justice Trial Attorney Shaunik R. Panse prosecuted the case and handled the case at trial. This case and other prior cases related to the attorney collection scheme were previously handled by Assistant U.S. Attorneys Christy Fawcett, Kim Douglas Daniel, Chelsea Schinnour, and Paul J. Miovas, Jr.
The maximum penalty under federal law for each of the five charges against Okoro is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Niagara Falls Man Going to Prison for 20 Years for Production of Child PornographyRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Jessy Santos, 30, of Niagara Falls, NY, who was convicted of production of child pornography, was sentenced to serve 240 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Maeve E. Huggins, who handled the case, stated that on June 23, 2016, Santos produced a digital recording of himself engaged in sexual conduct with an eight-year-old minor victim in his care. Santos used a cellular telephone to record the conduct.
The sentencing is the result of an investigation by the Federal Bureau of Investigation Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, the Niagara County Sheriff’s Office, under the direction of Sheriff Michael Filicetti, the Cheektowaga Police Department, under the direction of Chief Brian Gould, and the Tonawanda Police Department, under the direction of Chief James Stauffiger.
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New Orleans Man Indicted for Federal Narcotics and Illegal Possession of Firearms ViolationsRead the Press Release
NEW ORLEANS, LA – CALEB PUNCH, age 32 of New Orleans, was indicted on September 15, 2023 announced U.S. Attorney Duane A. Evans. In Count 1, PUNCH is charged with Conspiracy to Possess with Intent to Distribute Controlled Dangerous Substances, in violation of Title 21, United States Code, Sections 846, 841(a)(1), 841(b)(1)(B), and 841(b)(1)(C). Count 2 charges PUNCH with Possession with Intent to Distribute Controlled Dangerous Substances, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 841(b)(1)(C). Count 3 charges PUNCH with Possession of Firearms during a Drug Trafficking Offense, in violation of Title 18, United States Code, Section 924(c)(1)(A). Count 4 charges PUNCH with being a Felon in Possession of a Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8). Count 5 charges PUNCH with Maintaining a Drug-involved Premises, in violation of Title 21, United States Code, Section 856(a).
If found guilty of either Counts 1 and 2, PUNCH faces a minimum sentence of 5 years up to a maximum of 40 years imprisonment, up to a $5,000,000 fine, and at least four years of supervised release. As to Count 3, he faces a minimum sentence of 5 years up to life imprisonment, to be served consecutively to any other counts, up to a $250,000 fine, and up to 5 five years of supervised release. As to Count 4, he faces up to fifteen years imprisonment, up to a $250,000 fine, and up to three years of supervised release. As to Count 5, he faces up to twenty years imprisonment, up to a $500,000 fine, and up to three years of supervised release. All five counts also carry a mandatory $100 special assessment fee.
United States Attorney Evans reiterated that the 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.
United States Attorney Evans also praised the work of the Drug Enforcement Administration and Louisiana State Police. This case is being prosecuted by Assistant United States Attorney Stuart Theriot of the Narcotics Unit.
New Orleans Man Found Guilty of Hobbs Act Robberies and Weapons ViolationsRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced today that MARVIN LEGENDRE, age 40, of New Orleans, was found guilty as charged on September 13, 2023 after a three-day jury trial before U.S. District Judge Carl J. Barbier.
The jury found LEGENDRE guilty as charged as to all five counts in the indictment. The indictment charged LEGENDRE, in Counts 1 and 3, with Hobbs Act robberies, in violation of Title 18, United States Code, Section 1951(a). Counts 2 and 4 charged LEGENDRE with using a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1). Count 5 charged LEGENDRE with being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1).
The FBI’s New Orleans Violent Crime Task Force worked in conjunction with the New Orleans Police Department and the St. Bernard Parish Sheriff’s Office to investigate several Hobbs Act Robberies linked to LEGENDRE. As charged in the indictment, on March 7, 2021, LEGENDRE committed an armed robbery at a Cricket Wireless in Chalmette, LA. and on March 10, 2021, LEGENDRE committed an armed robbery at a Boost Mobile in New Orleans, LA.
During the investigation, detectives and agents used both physical and video surveillance to track a distinctive vehicle that LEGENDRE, was using to travel to and from the robberies. Agents then located LEGENDRE’s residence on N. I-10 Service Rd., executed a search warrant, and arrested LEGENDRE. The search yielded the clothes LEGENDRE wore during the robberies as well as firearms. Upon further investigation, agents confirmed phone records that placed LEGENDRE at the respective scenes as well as incriminating videos, pictures, and texts sent from LEGENDRE’s phone.
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, New Orleans Police Department and the St. Bernard Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Inga Petrovich and Mike Trummel of the Violent Crime Unit.