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10 October 2023
U.S. Attorney’s Office Uses Civil Forfeiture to Recover $18,500 for Fraud VictimRead the Press Release
Jackson, Miss. – On September 28, 2023, U.S. District Judge Sul Ozerden entered a Final Judgment of Forfeiture against $18,500.00 in U.S. Currency seized in the form of a cashier check from one of the co-conspirators of a fraud scheme, announced U.S. Attorney Todd Gee. The funds will be returned to the victim of the scheme.
According to the Verified Complaint for Forfeiture in Rem filed by the U.S. Attorney’s Office, the co-conspirator was engaged in a business email compromise scheme (BEC) to receive fraud proceeds. A BEC is a sophisticated scam, often targeting businesses and individuals involved in wire transfer payments. The fraud is carried out by compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques. It causes employees of the victim company (or other individuals involved in legitimate business transactions with them) to transfer funds to accounts the scammers control.
The complaint was filed on June 12, alleging that on September 25, 2020, the victim received an email appearing to be from his attorney, giving him wiring instructions needed to close on a real estate transaction. The fraudulent email instructed the victim to send the funds via wire transfer to a bank account set up by a co-conspirator. Following the fraudulent instructions, the victim wired approximately $142,834.80 to the account.
After an investigation, the Government seized $18,500 in the form of a cashier check that had been issued to the co-conspirator in a fictitious name. After the complaint was filed in federal court, the victim filed a claim and answer in the civil forfeiture proceeding, explaining that he had been the victim of the fraud scheme. The U.S. Attorney’s Office entered into a Stipulated Settlement Agreement with the victim and asked the Court to enter a Final Judgment ordering the return of the $18,500.00 to the victim and canceling the interests of any other person or entity.
On January 29, 2021, in the Southern District of Texas, the United States filed a civil forfeiture action (United States v. $142,869.20 in U.S. Currency, 4:21-cv-306) against the funds then remaining in the co-conspirator’s account, of which $86,671.93 remained after the account was frozen. The United States won a default judgment, and the funds have since been returned to the victim.
The Federal Bureau of Investigation conducted the investigation. In the Southern District of Mississippi, the USAO Asset Recovery Unit team, led by AUSA Clay B. Baldwin handled the matter.
Business Email Compromise schemes can be prevented. Here are some tips:
• Independently obtain mortgage payoff statements and confirm with verified and trusted sources.
• Independently verify the authenticity of information included in correspondence and statements.
• Enable Multi-Factor Authentication (MFA) on all email accounts.
• Routinely change passwords.
• Routinely monitor email account access, check for unauthorized email rules and forwarding settings.
• Restrict wire transfers to known and previously verified accounts.
• Pay using checks when the information cannot be independently verified.
• Have a clear and detailed Incident Response Plan.
For more information visit the Secret Service’s Preparing for a Cyber Incident page. To learn more about the Secret Service and efforts to combat Business Email Compromise fraud, please click here.
U.S. Attorney’s Office Concludes Investigation into Overdose Death of Individual in Police CustodyRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that there is insufficient evidence to pursue federal criminal civil rights or District of Columbia charges against a detective from the Metropolitan Police Department (MPD) and a Special Agent from the Bureau of Alcohol, Tobacco, and Firearms (ATF). On Feb. 2, 2023, a 44-year-old District resident, M.P., died of an overdose after ingesting narcotics. The detective and special agent were the last persons to see the decedent, who died at the MPD Second District Police Station while in the custody of law enforcement.
The U.S. Attorney’s Office and the MPD Internal Affairs Division conducted a comprehensive review of the incident, which included a review of law enforcement and civilian accounts, cell block security camera footage, body-worn camera footage, physical evidence, recorded radio communications, forensic reports, the autopsy report, and reports from MPD.
According to the evidence, at about 6:44 a.m. on Feb. 2, M.P. was arrested pursuant to a D.C. Superior Court warrant. M.P. was cooperative during the arrest and transported to the Second District Police Station for processing on the warrant. M.P. was coherent and cooperative and did not appear to be in distress during processing. After being placed in a cell, M.P. covered the cell block camera. After using the toilet, M.P. fell to the floor. The detective and special agent, unaware of the fall, attempted to interview him minutes later but M.P. appeared to be either sleeping or unwilling to speak with them. Later, M.P. was discovered unconscious in his cell. Emergency efforts to save his life were unsuccessful. An autopsy performed on Feb. 3, 2023, and a subsequent toxicology review, determined that M.P. died as result of the combined effects of ingesting cocaine, fentanyl, fluorofentanyl, and heroin.
After a careful, thorough, and independent review of the evidence, federal prosecutors found insufficient evidence to prove beyond a reasonable doubt that the detective and special agent demonstrated deliberate indifference to M.P.’s condition or otherwise willfully violated M.P.’s rights.
Investigations generally
The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to conclude that any officers violated either federal criminal civil rights laws or District of Columbia law.
The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are investigated fully and completely. The Metropolitan Police Department’s Internal Affairs Division investigates all police-involved fatalities in the District of Columbia.
U.S. Attorney Kavanaugh Observes Domestic Violence Awareness MonthRead the Press Release
CHARLOTTESVILLE, Va. – October marks the observance of Domestic Violence Awareness Month (DVAM). United States Attorney Christopher R. Kavanaugh joins the U.S. Department of Justice in commemorating DVAM, paying tribute to victims and survivors, and saluting the dedication of advocates, service providers, justice professionals, law enforcement officers, and first responders who tirelessly work in support of survivors.
Domestic violence, dating violence, and intimate partner violence can have long-lasting impacts and consequences. Approximately one in four women and one in seven men will experience severe domestic violence in their lifetimes; however, rates are disproportionately higher for American Indian and Alaska Native populations, women of Color, lesbian, gay, bisexual, transgender, queer, intersex, and two-spirit people, and people with disabilities. DVAM provides an opportunity to spread awareness about domestic violence and encourage everyone to play a role in ending gender-based violence.
“Domestic violence is not a self-contained singular problem with a singular solution. It crosses all economic, racial, educational, and cultural backgrounds, and the generational impact can be devastating,” United States Attorney Kavanaugh said today. “As federal prosecutors, we use all the tools at our disposal, along with our partnerships with state and local officials, to ensure victims have a viable path to safety and justice.”
A crucial part of combatting domestic violence and reducing violent crimes includes enforcing federal firearm prohibitions. Domestic violence abusers with access to a gun are five times more likely to kill their partners. In addition to their lethality, firearms are used by abusers to inflict fear, intimidation, and coercive control. Under federal law, people with domestic violence misdemeanor and felony convictions, and those subject to domestic violence protective orders, are prohibited from purchasing or possessing firearms.
According to National Crime Victimization Survey data from the Bureau of Justice Statistics, nearly 20% of all violent crime is categorized as domestic violence.
“In the Western District of Virginia, our team of victim specialists, investigators, and prosecutors are dedicated to fostering awareness, facilitating intervention, and holding accountable those who commit acts of domestic violence,” U.S. Attorney Kavanaugh added. “We are confident that these, and other actions, will lead to more secure, violence-free communities.”
If you or someone you know is a victim of domestic violence or need resources, please visit: https://www.justice.gov/ovw/local-resources.
Immediate help for domestic violence victims: Call the National Domestic Violence Hotline (@ndvhofficial) at 1-800-799-7233 or Strong Hearts Native Helpline (@strongheartsdv) at 1-844-762-8483.
U.S. Attorney and U.S. Postal Inspector in Charge Unveil Charges Against Multiple Defendants Alleged to Have Interfered with Delivery of the MailRead the Press Release
OAKLAND – U.S. Attorney Ismail J. Ramsey and U.S. Postal Inspector in Charge Rafael Nuñez announced today that multiple arrests have been made in cases involving the interference with delivery of the U.S. mail. The announcement was made at a press conference held this morning at the Ronald V. Dellums Federal Building.
The theft of postal keys, break-ins of postal vehicles, assaults on letter carriers, and various other criminal acts involving interference with delivery of the mail and the alleged illegal possession of personally identifying information were all discussed at the press conference. According to U.S. Attorney Ramsey, defendants in each case now are facing severe federal penalties that make clear their alleged crimes were not worth the consequences.
“In each of the cases I will discuss,” said U.S. Attorney Ramsey, “the government alleges the defendants have violated federal criminal laws and, as a consequence, federal agents and local law enforcement has tracked them down . . .. The penalties for these crimes can be sobering.”
Inspector in Charge Nuñez reinforced the U.S. Attorney’s remarks and announced that the reward for information leading to arrest and conviction of any individual who robs or assaults a postal worker is now $150,000. “There is no more important mission for us as federal agents than protecting postal workers from crime and violence,” said Inspector in Charge Nuñez. “To any copycats or wannabes out there who might consider robbing a postal worker, I ask you to consider the years you will face in federal prison, the price on your head, and that postal inspectors will not stop hunting you. The proceeds of this crime are not worth your freedom.”
U.S. Attorney Ramsey stated that most of the cases involved the theft of specialized postal keys that often grant access to large mailboxes or mail storage facilities. Holding one such postal key in his hand, U.S. Attorney Ramsey explained that federal laws have been “carefully crafted to protect the sanctity of the mail, including the sensitive information we entrust to the mail system; the safety of the federal employees and contractors who deliver the mail; and the federal property that is used to ensure mail delivery.” He then went on to describe how three of the defendants are alleged to have violated the law as follows:
• Anthony Medina, 42, of American Canyon, Calif., is alleged to have unlawfully possessed seven mail keys. According to the complaint, officers with the San Francisco Police Department were attempting to perform a traffic stop when the defendant attempted to flee. Officers arrested the defendant and, in addition to the keys, defendant is alleged to have possessed credit cards in the names of other individuals, images of suspected stolen mail, and access codes for an apartment complex in San Francisco. Medina now faces 10 years in prison for each violation of 18 U.S.C. section 1704—the unlawful possession of the postal keys, as well as possible prosecution for unlawful possession of mail and credit cards. (Case No. 23-mj-71443 MAG)
• Robert Devon Nicholson Bell, Jr., 19 , of Antioch, Calif., is alleged to have participated in at least two armed robberies of letter carriers, one in Antioch and one in San Francisco. Allegations in the criminal complaint filed against the defendant describe Bell’s use of mail keys to steal mail from blue mailboxes. According to a criminal complaint, Bell was found in Antioch in possession of robbed postal keys, a substantial quantity of stolen mail, a fraudulent USPS ID with his picture, and stolen and counterfeit checks. He now faces a statutory maximum of 10 years in prison for the unlawful possession of the postal key, as well as 25 years for each of the armed robberies. (Case No. 23-mj-71439 MAG)
• Derek Hopson, 33, of Oakland, Calif., is alleged to have stolen mail and postal keys in two separate incidents that occurred in June of 2023. The complaint alleges the San Francisco Police Department responded to a burglary in progress at a residence in the Mission District of San Francisco when officers encountered the defendant in possession of several postal keys. Hopson also allegedly used a mailbox key to gain access to mailboxes at a residential complex in the Presidio of San Francisco. He now faces a statutory maximum of 15 years in prison for violating 18 U.S.C. sections 1704 and 1706. (Case No. 23-mj-71403 MAG)
Additional recently-filed cases being prosecuted in the Northern District of California include the following:
CASE NUMBER
DEFENDANT NAME
STATUTES ALLEGED
MAXIMUM STATUTORY SENTENCE
23-CR-0086 HSG
Craig Curtis Freeman
Kaylynn Nicole Ulrich
18 U.S.C. § 2117 (Breaking and Entering into a Carrier Facility)
18 U.S.C. § 1708 (Possession of Stolen Mail and Theft of Mail)
10 years of imprisonment
10 years of imprisonment
23-mj-70714 MAG
Stephen Hilton
18 U.S.C. § 2114
(Robbery of a Mail Carrier)
25 years of imprisonment
23-cr-317 HSG
Michael Derryberry
Lucas Ostolaza
18 U.S.C. § 2114
(Robbery of a Mail Carrier) (2 counts, each defendant)
18 U.S.C. §§ 1704 and 2: (Unlawful Possession of Mail Keys) (2 counts, each defendant)
25 years of imprisonment
10 years of imprisonment
23-mj-71424
Michael Morgan
18 U.S.C. §§ 1704 and 2: (Unlawful Possession of Mail Keys)
18 U.S.C. § 1708 (Possession of Stolen Mail and Theft of Mail)
10 years of imprisonment
5 years of imprisonment
23-cr-126 WHO
Vo Nguyen
18 U.S.C. § 111(a) and (b) (Assault on a Federal Employee with a Deadly or Dangerous Weapon)
18 U.S.C. § 1114(a)(3) (Attempted Murder of an Employee of the United States)
18 U.S.C. § 924(c)(1) Using, Carrying, and Discharging a Firearm in Connection with a Crime of Violence
20 years of imprisonment
20 years of imprisonment
Minimum 10 years of imprisonment and maximum life in prison
Indictments and criminal complaints merely allege that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. Further, in addition to the prison terms described, as part of any sentence following conviction the court may order defendants to serve an additional term of supervised release to begin after a prison term, additional fines, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution of these cases are the result of investigations by the United States Postal Inspection Service.
U.S. Air Force member in Great Falls admits to child pornography crimeRead the Press Release
GREAT FALLS -- A member of the U.S. Air Force at the Malmstrom Air Force Base in Great Falls today admitted to allegations that he obtained and sold images of child sexual abuse material using social media, U.S. Attorney Jesse Laslovich said.
Brandon Earl Bankston, 23, pleaded guilty to possession with intent to sell child pornography. Bankston faces a mandatory minimum of five years to 20 years of imprisonment, a $250,000 fine and not less than five years to a lifetime of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for March 14, 2024. Bankston was detained pending further proceedings.
In court documents, the government alleged that in the summer of 2021, the Great Falls Internet Crimes Against Children Task Force was alerted that a suspect in Montana had uploaded videos containing known child sexual abuse material to an account on “X,” formerly known as Twitter. The task force also learned that a Snapchat user with a Montana address had posted an image of child sexual abuse material. The investigation determined that the internet provider addresses belonged to Bankston, an active-duty member of the U.S. Air Force assigned to the 341st Missile Security Forces Squadron at Malmstrom Air Force Base. Bankston admitted to Air Force investigators to possessing and distributing the child sexual abuse material in exchange for payment from users across various internet platforms.
Bankston told investigators that he obtained images and videos of the material through a messaging platform and stored the material on a cloud-based site in New Zealand. He further admitted to selling the child sexual abuse material to approximately 25 individuals. In a search of Bankston’s electronic devices, social media platforms, bank accounts and cloud-based storage applications, investigators determined he possessed approximately 5,000 images of child sexual abuse material and approximately 3,000 images and videos of the material saved in storage accounts. In addition, investigators determined Bankston received approximately $6,750 for child sexual abuse material sales from 42 separate transactions.
Assistant U.S. Attorney Jeffrey K. Starnes is prosecuting the case. The Great Falls Internet Crimes Against Children Task Force, Homeland Security Investigations and the U.S. Air Force Office of Special Investigations conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Two Nigerian Nationals Based in Maryland Sentenced for Schemes to Steal California and Other States’ Unemployment Insurance BenefitsRead the Press Release
SACRAMENTO, Calif. — Nigerian nationals Quazeem Owolabi Adeyinka, 22, and Ayodeji Jonathan Sangode, 25, currently both residing in Maryland, were sentenced today to 26 months and 14 months in prison respectively for their roles a fraud conspiracy during the COVID-19 pandemic, U.S. Attorney Phillip A. Talbert announced.
Sangode pleaded guilty in October 2022 to access device fraud, and Adeyinka pleaded guilty in November 2022 to conspiracy to commit wire fraud. A third co-conspirator, Olamide Yusuf Bakare, 26, also pleaded guilty and was sentenced in July 2023 to four years and nine months in prison.
According to court documents, between June 2020 and July 2021, Adeyinka, Sangode, Bakare, and others participated in a conspiracy to submit fraudulent unemployment insurance (UI) and Pandemic Unemployment Assistance (PUA) claims to the State of California. More than 200 individual applications were filed with the California Employment Development Department (EDD) indicating that the claimants’ address was the Hyattsville, Maryland, apartment that the co-defendants shared.
During the conspiracy, the conspirators obtained the personally identifiable information (PII) of persons who were not eligible for UI or PUA benefits or who did not authorize the conspirators to act on their behalf with respect to seeking such benefits. Such PII included names, dates of birth, and Social Security numbers. The conspirators then used the PII to submit dozens of fraudulent UI and PUA claims to EDD under the putative claimants’ identities and without their authorization.
The underlying benefit applications contained false representations, including, for example, that the claimants had worked for certain employers and supervisors; had specific annual incomes; worked during certain time periods; were self-employed in various occupations; were laid off and had no work; were newly unemployed due to a disaster including the COVID-19 pandemic; and were currently available to work. Most, if not all, of these claims were false because the claimants were not so previously working, employed, newly unemployed, or seeking new employment.
The conspirators knew that these representations were false or lacked the knowledge and authority to make such representations. These actions caused EDD to approve fraudulent UI and PUA claims.
For each approved claim, EDD deposited benefit funds into a debit card account administered by Bank of America and under the identity of the putative claimant. Bank of America then mailed unauthorized debit cards to addresses under the control of the defendants. Under the direction of Bakare and others, Adeyinka and Sangode then obtained these debit cards and their PINs and used these cards to withdraw cash at ATMs for the benefit of themselves and coconspirators.
At least 15 debit cards that Adeyinka used during the conspiracy were linked to bank accounts that received approximately $237,911 in fraudulent UI and PUA benefits. Adeyinka was personally involved in $793,844 in attempted loss. And at least 53 debit cards that Sangode used during the conspiracy were linked to bank accounts that received approximately $752,142 in fraudulent UI and PUA benefits.
This case was the product of an investigation by the Department of Labor – Office of Inspector General, the Federal Bureau of Investigation, the Department of Homeland Security – Office of Inspector General – Covid Fraud Unit, and the California EDD – Investigation Division. Assistant U.S. Attorney Denise N. Yasinow prosecuted the case.
This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.
Two New Jersey Men Plead Guilty to Defrauding Investors in Hemp CompanyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that VITALY FARGESEN and IGOR PALATNIK each pled guilty to one count of conspiring to commit securities fraud and one count of conspiring to commit wire fraud in connection with their fraudulent scheme to defraud investors in CanaFarma Corp. and later CanaFarma Hemp Products Corp. (together “CanaFarma”) by soliciting funds based upon false and misleading representations, failing to invest investors’ funds as promised, and secretly misappropriating millions of dollars of CanaFarma funds. FARGESEN and PALATNIK pled guilty today before U.S. District Judge Loretta A. Preska.
U.S. Attorney Damian Williams said: “Vitaly Fargesen and Igor Palatnik orchestrated a sophisticated scheme to obtain millions of dollars from investors with the promise that their money would be spent on building a legitimate company. Instead, they lied about their business, lied to their auditors, and stole millions of dollars of investor funds. Today’s guilty pleas reflect my Office’s commitment to prosecuting those who greedily lie to investors to line their own pockets.”
According to the allegations contained in the Indictment and statements made in public filings and in public court proceedings:
From in or about March 2019 to in or about March 2020, CanaFarma was a privately held Delaware corporation with offices in New York, New York. Beginning on or about March 19, 2020, CanaFarma was listed on the Canadian Stock Exchange, and beginning on or about March 23, 2020, CanaFarma was listed on the Frankfurt Stock Exchange. CanaFarma marketed itself to the investors as a “fully integrated cannabis company addressing the entire cannabis spectrum from seed to delivery of consumer products.” To the public, FARGESEN was held out as Senior Vice President of Strategic Planning at CanaFarma and PALATNIK was held out as Senior Vice President of Product Acquisition at CanaFarma. In truth, the two men exercised full control of CanaFarma but hid their control from the investing public by, among things, convincing an experienced businessman to falsely present himself to the market as the CEO of the company.
Using their control of CanaFarma, FARGESEN and PALATNIK devised and carried out a scheme to defraud CanaFarma’s investors by soliciting approximately $14 million in funds, including investments in private shares of CanaFarma, with false and misleading representations concerning the company’s management, products, and financials; failing to invest investors’ funds as promised; and secretly misappropriating at least $4 million of CanaFarma funds for their own benefit. FARGESEN and PALATNIK effectuated the scheme by, among other things, controlling CanaFarma through a nominal Chief Executive Officer who reported to FARGESEN and PALATNIK, lying to investors regarding CanaFarma’s actual and anticipated operations, attempting to artificially inflate CanaFarma’s reported revenue, making false statements to CanaFarma’s auditors, and misappropriating millions of dollars of investor funds.
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FARGESEN, 54, of Manalapan, New Jersey, and PALATNIK, 49, of Morganville, New Jersey, each pled guilty to one count of conspiracy to commit securities fraud and one count of conspiracy to commit wire fraud, which combined carries a maximum sentence of 10 years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. FARGESEN is scheduled to be sentenced by Judge Preska on January 30, 2024, at 10:00 a.m., and PALATNIK is scheduled to be sentenced by Judge Preska on January 11, 2024, at 11:00 a.m.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. Mr. Williams also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.
The case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Margaret Graham, Adam Hobson, Sarah Mortazavi, and Andrew Thomas are in charge of the prosecution.
Ten New Orleans Residents Indicted for Possession of Vehicles Stolen from Interstate Shipments, Conspiracy, and Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that, on July 28, 2023, the grand jury returned a sealed 20-count indictment against NICKIE WHITLEY, age 35, ERIN MURTHIL, age 21, DARIAL MAYE, age 24, MATHEW MAYE, age 26, MISTER MACKEY, JR., age 21, DESMOND TAYLOR, age 26, NORMAN ANDREWS, age 23, DERRIN RILEY, age 28, JONATHAN FRANK, age 39, and QUINTRELL BROWN, age 19, all residents of New Orleans.
As alleged in the indictment, the defendants possessed, and conspired to possess, eight, new 2023 Ford vehicles stolen from the Norfolk Southern Automotive Distribution Facility in March, 2023. The vehicles were bound for sale at dealerships in Louisiana, Mississippi, and Alabama when stolen from the Facility.
All 10 defendants are charged in Count 1 with conspiracy to possess goods stolen from an interstate shipment—the eight Ford vehicles—in violation of Title 18, United States Code, Section 371. This count carries a maximum term of imprisonment of five years, up to a $250,000 fine, and up to three years of supervised release.
All 10 defendants are also charged variously in Counts 2 through 9 with possession of goods stolen from an interstate shipment, in violation of Title 18, United States Code, Section 659. Each of these counts charges the possession of a specific vehicle stolen from the Facility: a 2023 Ford Explorer ST (Count 2); a 2023 Ford Explorer King Ranch (Count 3); a second 2023 Ford Explorer ST (Count 4); a 2023 Ford Explorer Timberline (Count 5); a 2023 Ford F-150 Raptor Crew Cab 4x4 (Count 6); a 2023 Ford Bronco Sport Outer Banks 4x4 (Count 7); a 2023 Lincoln Aviator (Count 8); and a 2023 Ford F-150 (Count 9). Each of these counts carries a maximum term of imprisonment of ten years, up to a $250,000 fine, and up to three years of supervised release.
MURTHIL is additionally charged in Count 10 with possession of a machinegun, in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2). This count carries a maximum term of imprisonment of ten years, up to a $250,000 fine, and up to three years of supervised release.
WHITLEY, MACKEY, JR., FRANK, and TAYLOR are also charged in Counts 11 through 14, respectively, with one count each, of being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8). Each of these counts carries a maximum term of imprisonment of fifteen years, up to a $250,000 fine, and up to three years of supervised release.
RILEY is charged in Count 15 and ANDREWS is charged in Count 17 with possession with intent to distribute tapentadol and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D). BROWN is charged in Count 19 with possession with intent to distribute tapentadol, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). The penalties for tapentadol are up to twenty years in prison, up to a $1,000,000 fine, and a minimum of three years of supervised release. The penalties for marijuana are up to five years in prison, up to a $250,000 fine, and a minimum of two years of supervised release.
RILEY, ANDREWS, and BROWN are also charged in Counts 16, 18, and 20, respectively, with one count each, of possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i). Each of these counts carries a mandatory minimum sentence of five years up to life imprisonment, which is to run consecutively to all other sentences, up to a $250,000 fine, and up to five years of supervised release.
If convicted, each count also carries a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of each defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the United States Department of Homeland Security, Homeland Security Investigations, the Louisiana State Police, and the New Orleans Police Department. Assistant United States Attorney David Berman of the Violent Crimes Unit is in charge of the prosecution.
Tax Preparer Sentenced to 51 Months in Prison for Preparing at Least 23 Fraudulent ReturnsRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Tuesday sentenced a tax preparer from Jennings, Missouri to 51 months in prison for preparing at least 23 fraudulent tax returns.
Judge Autrey also ordered Darius D. Cobb to pay restitution of $85,584.
Cobb, 52, prepared at least 200 tax returns for the tax years 2017 and 2018. In at least 23 of those, Cobb included false information. He included fake W-2 forms with false wages and withholdings, false Schedule C forms reporting profit or loss from a business even if the taxpayer was not a business owner, false claims for the American Opportunity Credit for educational expenses and false information about dependents.
“Mr. Cobb admitted that he knowingly prepared false returns for others in order to illegally obtain inflated refunds for his clients,” said Assistant Special Agent in Charge Bill Steenson, IRS Criminal Investigation, St. Louis Field Office. “We work alongside our partners in the U.S. Attorney’s Office throughout the year to investigate and prosecute dishonest tax return preparers. Let this be a warning to others who may be thinking about engaging in this type of illicit activity.”
Cobb pleaded guilty in April to two felony counts of aiding in the preparation of a false and fraudulent tax return.
The case was investigated by IRS Criminal Investigations. Assistant U.S. Attorney Jennifer Roy prosecuted the case.
St. Joseph Man Sentenced to 17 Years for Heroin Conspiracy, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A St. Joseph, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute heroin and for illegally possessing firearms.
Roderick A. Hughes, 48, was sentenced by U.S. District Judge Greg Kays to 17 years in federal prison without parole.
On May 27, 2022, Hughes pleaded guilty to participating in a conspiracy to distribute one kilogram or more of heroin in the St. Joseph area from Sept. 1, 2019, to March 26, 2021, and to possessing a firearm in furtherance of a drug-trafficking crime.
According to court documents, Hughes is responsible for distributing at least 461.9 grams of heroin, which is over 4,600 potentially lethal, 0.1-gram “doses” of the drug.
Law enforcement officers executed a search warrant at Hughes’s apartment on Feb. 23, 2021. Officers found a silver revolver on the kitchen table. They also found a loaded Glock 9mm handgun on a nightstand in the bedroom, a Stoeger 9mm handgun and a Jennings Bryco 9mm handgun on a shelf in the bedroom, and a black safe under the bed that contained 23.4 grams of heroin and $4,703 in cash. Officers also searched the garage and found three plastic bags with a total of 96.3 grams of heroin hidden in the rafters.
Co-defendant Franklin T. Hicks Jr., also known as “Frankie,” 42, of St. Joseph, pleaded guilty to the same charges and will be sentenced on Nov. 1, 2023.
Hicks was arrested outside of a hotel in St. Joseph on Jan. 22, 2021. He was in possession of 35.8 grams of heroin and $2,687 in cash. Officers also found a loaded Rock Island Armory .380-caliber handgun under the driver’s seat of his car and a Ruger 9mm handgun in the glovebox.
Co-defendant Harvey E. Johnson, 50, of Kansas City, Mo., pleaded guilty to his role in the heroin-trafficking conspiracy and will be sentenced on Oct. 26, 2023. Johnson, who was in possession of approximately 51 grams of heroin at the time of his arrest, admitted that the drug-trafficking conspiracy involved at least two kilograms of heroin.
This case is being prosecuted by Assistant U.S. Attorney Byron H. Black. It was investigated by the St. Joseph, Mo., Police Department, the Buchanan County, Mo., Sheriff’s Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Self-proclaimed king of Bissonett guilty of sex traffickingRead the Press Release
HOUSTON – A federal jury in Houston has convicted a 47-year-old man of sex trafficking four women by means of force and of taking three women across state lines to engage in prostitution, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for approximately three hours before convicting Larry “Lavish” Lewis following a six-day trial.
Lewis used physical force and coercion to compel four women to engage in commercial sex in the Bissonnet street area of Houston and various cities in Texas and Louisiana. The jury also found he coerced them to cross state lines to engage in prostitution.
At trial, the victims detailed how Lewis recruited them on false promises of good money and a good life. Lewis confiscated the identification cards of two women and tightly controlled access to their hotel rooms. The women were completely dependent on him for food, lodging and basic necessities.
Lewis’ rules dictated where and how long they worked. The women were required to give Lewis all money they earned after commercial sex dates.
The victims detailed the consequences of breaking Lewis’ rules. He kicked one victim in the head into a window because he believed she disrespected him. During another incident, Lewis whipped the same victim with an electrical cord following an attempt to escape using his vehicle. Another victim described how Lewis broke her ribs and left bruises all over her body after receiving many beatings.
The jury ultimately did not believe defense claims that the women sought out Lewis because of his marketing expertise in the commercial sex industry.
U.S. District Chief Judge Randy Crane presided over the trial and set sentencing for Jan. 10, 2024. At that time, Lewis faces up to life in federal prison.
Lewis has been and will remain in custody pending sentencing.
Assistant U.S. Attorneys Sebastian A. Edwards and Christine Lu are prosecuting the case.
Texas Department of Public Safety and the Harris County District Attorney’s Office conducted the investigation with the assistance of the FBI as part of the Human Trafficking Rescue Alliance (HTRA).
HTRA law enforcement includes members of the Houston Police Department, FBI, Homeland Security Investigations, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety, Department of Homeland Security – Office of Inspector General (OIG), Social Security Administration – OIG and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.
Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Saratoga Springs Woman Sentenced for Misappropriating Funds as the Fiduciary to a VeteranRead the Press Release
ALBANY, NEW YORK – JoAnne Natalie, age 65, of Saratoga Springs, New York, was sentenced today to serve 3 months in jail for misappropriating the funds of a veteran as his appointed fiduciary. United States Attorney Carla B. Freedman and Christopher F. Algieri, Special Agent in Charge of the Northeast Field Office for the United States Department of Veterans Affairs (VA) Office of Inspector General, made the announcement.
In previously pleading guilty, Natalie admitted that after being appointed as a fiduciary for a veteran, between September 2019 and January 2021, she stole $50,174.42 of the veteran’s VA benefits by using the benefits, which were deposited into the veteran’s bank account, for her own personal ends. She also admitted to willfully neglecting and failing to submit required accountings to the VA.
United States District Judge Glenn T. Suddaby also sentenced Natalie to 2 years of supervised release, including 3 months of home detention, following her term of incarceration, and ordered her to pay restitution to the estate of the veteran.
The VA Office of Inspector General investigated the case, and Assistant U.S. Attorney Alexander P. Wentworth-Ping prosecuted the case.
This case is part of the Department of Justice’s Elder Justice Initiative. The mission of the Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults. Anyone with information about allegations of attempted fraud involving elders can call the National Elder Fraud Hotline at 1-833-372-8311.
Roane County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Kenneth Alan Paxton II, 58, of Walton, pleaded guilty today to unlawfully engaging in the business of dealing in firearms.
According to court documents and statements made in court, from September 18, 2018 through August 3, 2022, Paxton regularly sold firearms without a Federal Firearms License. Paxton admitted that he advertised his sale of firearms in a local trading publication and earned approximately $25 in net profits for each transaction. Paxton further admitted that he received and carried out requests for specific firearms from individuals and often sold to individuals who didn’t want to have a firearm in their name. Twelve of the firearms Paxton sold were recovered at crimes scenes. Of those 12 firearms, seven were recovered by law enforcement at crime scenes within 16 days of Paxton purchasing them from businesses with a Federal Firearms License.
Paxton is scheduled to be sentenced on January 29, 2024, and faces a maximum penalty of five years in prison, one year of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Alexander A. Redmon is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-154.
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Ohio Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Thomas V. Ratcliff, also known as “Twin,” 31, of South Point, Ohio, pleaded guilty today to possession with intent to distribute methamphetamine.
According to court documents and statements made in court, on November 7, 2022, law enforcement officers arrested Ratcliff at a Marcum Terrace residence in Huntington on an outstanding Wayne County Circuit Court arrest warrant. Following the arrest, officers executed a search warrant of the residence and found approximately 29 grams of methamphetamine, digital scales, and a loaded Hi-Point 9mm pistol. Ratliff admitted that he possessed the methamphetamine and intended to sell it for money.
Ratcliff is scheduled to be sentenced January 22, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Huntington Violent Crime and Drug Task Force, and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Courtney L. Finney is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-2.
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Nigerian National Extradited to Nebraska to Face Fraud Scheme ChargeRead the Press Release
Acting United States Attorney Susan Lehr announced the extradition of Alex Ogunshakin, 40, of Nigeria, to the District of Nebraska on a Conspiracy to Commit Wire Fraud Indictment, filed in August 2019 in Omaha, Nebraska. The Government of the Federal Republic of Nigeria granted the United States’ request for extradition, which was submitted in May 2020. Ogunshakin, a Nigerian national, was arrested in Nigeria and ultimately surrendered to the United States. Ogunshakin had an initial appearance on the Indictment on September 29, 2023. United States Magistrate Judge Michael D. Nelson ordered Ogunshakin remain detained pending trial.
Ogunshakin, who was on the FBI Cyber’s Most Wanted List, is alleged to have participated in a business email compromise (BEC) scheme from January 2015 to September 2016. The BEC scheme defrauded businesses in the District of Nebraska and elsewhere of more than $6 million. According to the indictment, Ogunshakin’s co-conspirators posed as the chief executive officer, president, owner, or other executive of the targeted company. Using e-mail accounts spoofed to make it appear as though they were from the company’s true business executive, Ogunshakin’s co-conspirators directed business employees or recipients of the e-mail to complete wire transfers. The business employees, believing the requests were legitimate, complied with the wire transfer requests and wired the money as instructed by Ogunshakin’s co-conspirators.
It is alleged Ogunshakin provided bank account information to the co-conspirators who sent the fraudulent e-mails, and which directed business employees to wire money to accounts controlled by Ogunshakin and others. These bank accounts largely belonged to victims of internet romance scams, who were instructed by co-conspirators to transfer the funds to other bank accounts.
Some of Ogunshakin’s co-conspirators have already been convicted and sentenced. Adewale Aniyeloye, one of the fraudsters sending the spoofed e-mails to the target business, was sentenced in February 2019 to 96 months’ imprisonment and ordered to pay $1,570,938.05 in restitution. Pelumi Fawehinimi, a bank account facilitator, was sentenced in March 2019 to 72 months’ imprisonment and ordered to pay $1,014,159.60 in restitution. Onome Ijomone, a romance scammer, was sentenced in January 2020 to 60 months’ imprisonment and ordered to pay $508,934.40 in restitution after his successful extradition from Poland. Other co-conspirators remain at large.
FBI Omaha Special Agent in Charge Eugene Kowel said, “Cyber Criminal Alex Ogunshakin worked with other co-conspirators (who remain at large and on the FBI Cyber's Most Wanted fugitive list) to defraud victims in the U.S. of millions of dollars. His indictment, arrest, and extradition should send a message to his co-conspirators and other cyber criminals: The FBI will remain vigilant in their pursuit of criminals both domestic and abroad. Disrupting these cyber criminal groups and their victimization of U.S. persons and businesses is a priority for the FBI, DOJ, and our international law enforcement partners. The FBI wishes to thank its partners in Nigeria, particularly the Economic and Financial Crimes Commission, the Federal Ministry of Justice, and National Central Bureau, Abuja – INTERPOL (Nigeria Police Force), for their past and continued assistance in pursuing those that engage in Business Email Compromise and other fraud schemes.”
This case was investigated by the Federal Bureau of Investigation. The Justice Department’s Office of International Affairs and the Nigerian Ministry of Justice’s Central Authority Unit provided substantial assistance in securing the arrest and extradition of Ogunshakin.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New York Man Admits Role in $127 Million Health Care Fraud and Kickback SchemeRead the Press Release
NEWARK, N.J. – A New York man and owner of a marketing company today admitted his role in conspiracies to commit health care fraud and to pay and receive illegal kickbacks, Attorney for the United States Vikas Khanna announced.
Eric Karlewicz, aka “Anthony Mazza,” 44, of Chestnut Ridge, New York, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
From June 2017 through May 2019, Karlewicz participated in a scheme with durable medical equipment (DME) companies, telemedicine companies, and doctors to submit false claims to health care benefit programs, including Medicare and TRICARE, based on a circular scheme of kickbacks and bribes. Karlewicz controlled a marketing company though which he and his conspirators identified Medicare and TRICARE beneficiaries to target for DME. Employees of the company called the beneficiaries to pressure them to agree to accept DME, frequently consisting of back, shoulder, and knee braces. Karlewicz and his conspirators paid the company’s employees commissions, bonuses, and incentives to encourage them to convince as many beneficiaries as possible to accept DME, regardless of medical necessity.
Karlewicz and his company then paid kickbacks to telemedicine companies, which in turn paid kickbacks to doctors, to obtain doctor’s orders for the DME. The doctors paid by the telemedicine companies signed the orders regardless of medical necessity, often without ever speaking to the patient. Karlewicz and his business partner then steered the doctor’s orders to DME suppliers around the country, with which Karlewicz and his company had additional kickback arrangements. The DME companies submitted claims for reimbursement to health care benefit programs including Medicare and TRICARE, and thereafter sent a portion of the proceeds to Karlewicz and his company as payment for the doctor’s orders generated through the conspiracy. The company received more than $63 million from DME suppliers in exchange for the referrals.
In total, Karlewicz and his conspirators caused the submission of false and fraudulent claims to health care benefit programs totaling more than $127 million for DME. Using proceeds from the scheme, Karlewicz purchased luxury vehicles, including a Ferrari, and Lamborghini, a Bentley, and a BMW.
The kickback conspiracy charge is punishable by a maximum of five years in prison, and the health care fraud conspiracy charge is punishable by a maximum of 10 years in prison; both charges are punishable by a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Feb. 20, 2024.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit and Senior Trial Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit in Newark.
karlewicz.information.pdfNew Orleans Man Pleads Guilty to Violating Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – EDWARD MCMILLAN, age 25, a resident of New Orleans, pleaded guilty on September 27, 2023 before U.S. District Judge Jane T. Milazzo to distributing cocaine base in violation of 21 U.S.C. §§ 841(a)(1) and 846(b)(1)(C).
According to court documents, on February 2, 2022, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives ("ATF") observed MCMILLAN conducting hand-to-hand drug transactions in Metairie, Louisiana. An ATF confidential informant drove to the area to purchase narcotics from MCMILLAN but was flagged down by MCMILLAN's co-defendant, and another individual. The confidential informant purchased 1.1 grams of cocaine base from the co-defendant and the other individual for $150.
On February 9, 2022, the ATF confidential informant completed a purchase of cocaine base from MCMILLAN and the co-defendant in Metairie, Louisiana. The confidential informant asked for $100 of "hard," which MCMILLAN understood to mean crack cocaine also known as cocaine base. MCMILLAN and the co-defendant split the transaction. MCMILLAN provided three rocks of cocaine base and the co-defendant provided two rocks, totaling 0.9 grams, in exchange for $100 from the confidential informant.
MCMILLAN faces a maximum sentence of twenty years in prison, a fine of up to $1,000,000, a minimum of three years of supervised release, and a mandatory special assessment fee of $100.00.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Firearms, Tobacco, and Explosives. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
Nevada Return Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
A Nevada woman pleaded guilty on Friday to assisting in the preparation of false income tax returns.
According to court documents and statements made in court, from 2015 to 2020, Jessica Avras operated a Las Vegas tax preparation business. During that time, Avras prepared and filed false returns that fraudulently reduced the income tax owed and/or inflated the tax refunds due to her clients. Avras routinely reported fictitious businesses that had significant purported losses or reported fabricated deductions, including noncash charitable contributions and sales taxes. Avras admitted that her conduct caused a tax loss to the IRS of approximately $525,000.
Avras is scheduled to be sentenced on Jan. 4, 2024, and faces a maximum penalty of three years in prison. She also faces a period of supervised release and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jason M. Frierson for the District of Nevada made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Thomas Flynn and Samuel Robins of the Tax Division are prosecuting the case.
Nashville Man Faces 30 Years in Federal Prison in Connection with June 2019 HomicideRead the Press Release
NASHVILLE – Justin Pace, 28, of Nashville, pled guilty in federal court today in connection with a June 2019 homicide at the Super 8 Motel in Hermitage, Tennessee, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
Pace and several co-defendants were charged by a federal grand jury in August 2021 with conspiracy to commit robbery, robbery, and causing death through the use of a firearm. Two other defendants have already pleaded guilty in connection with these offenses.
The charges in this case relate to the robbery of Anthony Goodall, a local drug dealer. Goodall arrived at the Super 8 Motel in the early morning hours of June 30, 2019. Pace and Donte Easley, who is now deceased, followed Goodall and robbed him after Goodall got out of an elevator in the breezeway of the motel. During the robbery, Goodall was shot and killed. Pace took Goodall’s backpack, which contained methamphetamine, and fled the scene with Easley. Surveillance footage from the motel permitted investigators to identify the assailants, who were charged in state and federal courts.
Pace pled guilty to all of the charges against him. The terms of his plea agreement with the United States call for him to be sentenced to a term of 30 years’ imprisonment.
“Today’s guilty plea ensures that this defendant will be removed from society for the next thirty years,” said United States Attorney Henry C. Leventis. “We will continue to work alongside our law enforcement partners to focus federal resources on the most violent criminals in Middle Tennessee.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Metropolitan Nashville Police Department. Assistant United States Attorneys Ben Schrader and Rachel Stephens are prosecuting the case.
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Muskogee Resident Pleads Guilty to Failure to Register as A Sex Offender, Theft in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Nathan Kelly Graham, age 26, of Muskogee, Oklahoma, entered a guilty plea to one count of Failure to Register as a Sex Offender, and one count of Theft in Indian country, charged in two single-count indictments.
One Indictment alleged that Graham resided in Indian country from approximately July 2022 to March 2023, and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act. Graham is required to register as a sex offender after having received a felony conviction from the State of Oklahoma in 2015 for Rape in the Second Degree. The charge arose from an investigation by the United States Marshals Service and the Muskogee County Sheriff’s Office.
A separate Indictment alleged that on January 26, 2023, Graham stole a motor vehicle parked at a Valero gas station in Muskogee, Oklahoma. The charge arose from an investigation by the Muskogee Police Department and Muskogee County Sheriff’s Office, who located the stolen 2019 Ford F150 with Graham behind the wheel. Graham fled the scene and was later apprehended by police. The crime occurred in Muskogee County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the pleas, and ordered the completion of a presentence investigation report. Graham will remain in the custody of the United States Marshal pending sentencing.
Special Assistant United States Attorney Genevieve Ozark, and Assistant United States Attorneys Richard Lorenz and Rachel Geizura represented the United States.
Multiple defendants prosecuted on federal firearms, drug chargesRead the Press Release
SAVANNAH, GA: Six people have been indicted in the Southern District of Georgia on felony charges including illegal firearms possession and drug distribution, while additional defendants have been sentenced to federal prison or await further proceedings after pleading guilty to federal gun charges.
The cases are prosecuted as part of Project Safe Neighborhoods in collaboration with federal, state, and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI, to reduce violent crime with measures that include targeting convicted felons who illegally possess guns.
“Removing illegally possessed firearms from convicted felons plays a key role in reducing violent crime in our communities,” said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. “In collaboration with our law enforcement partners, we will continue to prioritize taking these tools of violence out of the hands individuals who are prohibited from possessing them.”
In the past five years, more than 800 defendants have been prosecuted in the Southern District of Georgia for firearms offenses – most often for possessing a firearm after conviction for a previous felony. That charge carries a statutory penalty of up to 15 years in prison, and there is no parole in the federal system.
Those indicted during the October term of the U.S. District Court Grand Jury include:
- Ricky Rich, 41, of East Dublin, Ga., charged with four counts of Distribution of 5 Grams or More of Methamphetamine; Distribution of Fentanyl; Possession with Intent to Distribute 50 Grams or More of Methamphetamine; Possession with Intent to Distribute Fentanyl; three counts of Possession of a Firearm by a Convicted Felon; and two counts of Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
- Othnell Christian Ferguson, 27, of Pembroke, Ga., charged with Possession of a Firearm by a Convicted Felon;
- Jamal Brashad Hawkins, 20, of Swainsboro, Ga., charged with Possession of a Firearm by a Convicted Felon;
- Jamario D. Owens, 24, of Savannah, charged with Possession of a Firearm by a Convicted Felon;
- Keith Alan Scorza, 53, of Savannah, charged with False Statement During the Purchase of a Firearm, and Possession of a Firearm by a Prohibited Person, referring to a domestic violence protective order; and,
- Pedro Walker, 24, of Savannah, Possession of a Firearm by a Convicted Felon.
Defendants recently adjudicated on federal firearms charges include:
- Reginald General Jackson, 36, of Savannah, was sentenced to 120 months in prison after pleading guilty to Possession of a Stolen Firearm. Savannah Police officers found Jackson in possession of multiple pistols after they were called in June 2022 to a Savannah motel room that Jackson was refusing to leave.
- Tony Lavardo Blount Jr., 32, of Augusta, was sentenced to 78 months in prison and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Columbia County Sheriff’s deputies were called to a Grovetown, Ga., home to investigate a report of domestic violence and arrested Blount after a brief foot chase when he pulled a pistol from his pocket.
- Calvin Lomont Powell Jr., 22, of Waynesboro, Ga., was sentenced to 41 months in prison and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Georgia State Patrol troopers found a pistol, drugs, and cash in Powell’s car during a June 2022 traffic stop.
- Derrick Drurell Long, 32, of Augusta, was sentenced to 56 months in prison and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Georgia Department of Community Supervision officers arrested Long in June 2020 after finding a pistol in his apartment during a search.
- Reco Casey, a/k/a “Rico,” 33, of Augusta, was sentenced to 57 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. In September 2021, Richmond County Sheriff’s deputies found a pistol in the vehicle where Casey was a passenger. Casey was on state felony probation at the time of his arrest.
- Tavares L. Freeman Jr., 22, of Augusta, was sentenced to 45 months in prison and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Freeman was arrested in August 2022 after he was seen tossing a pistol from a window of his home as Richmond County sheriff’s deputies and agents from the Georgia Department of Community Supervision arrived to conduct a search of the residence. Freeman was on probation from a state felony conviction at the time.
- Cortez Timmie Dinh, 27, of Martinez, Ga., was sentenced to three years’ probation, fined $1,500 and ordered to serve 40 hours of community service after pleading guilty to False Statement During the Purchase of a Firearm. During an August 2019 traffic stop, Richmond County deputies found guns and drugs in a vehicle in which Dinh was a passenger. The driver, Jose Ramon Valero Jr., 25, of Stonecrest, Ga., is serving 84 months in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute, and to Distribute, Marijuana, and Possession of Firearms in Furtherance of a Drug Trafficking Crime. Dinh acted as a straw purchaser in buying one of the guns found in the vehicle for Valero, who was prohibited from possessing firearms because of a previous conviction for domestic violence.
- Jesu Aurelius Fox, 27, of Savannah, was sentenced to 30 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers found Fox in possession of a pistol while behind the wheel of his vehicle in August 2021.
- David Wayne Cleland, 34, of Ridgeland, S.C., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Garden City police officers investigating a suspicious vehicle in a motel parking lot found Cleland asleep in the car with a handgun in his lap.
- Steve Shontell Heath, 46, of Hephzibah, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. A Burke County sheriff’s deputy found a pistol in Heath’s vehicle during a December 2021 traffic stop.
Agencies investigating these cases include the ATF, the FBI, the Georgia Bureau of Investigation, the Savannah Police Department, the Statesboro Police Department, the Swainsboro Police Department, and the Laurens County Sheriff’s Office.
The cases are being prosecuted for the United States by the Southern District of Georgia U.S. Attorney’s Office.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information from the ATF on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atfw-form-4473
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Mount Vernon Man Pleads Guilty to Elaborate Check Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Patrick J. Freaney, the Special Agent in Charge of the New York Field Office of the United States Secret Service (“USSS”), and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced that ISHMAEL BENREUBEN pled guilty today to participating in a conspiracy to deposit approximately $760,000 in fraudulent checks into bank accounts across New York, New Jersey, and Washington, D.C., and to fraudulently withdrawing approximately $115,000 from those accounts. BENREUBEN pled guilty before U.S. District Judge Jed S. Rakoff.
U.S. Attorney Damian Williams said: “My Office is committed to protecting the integrity of the United States banking system and the United States mail. The defendant engaged in a scheme to steal three quarters of a million dollars by stealing real checks from the mail, forging the checks, falsifying identities, and taking advantage of multiple financial institutions. The defendant’s fraudulent scheme affected real people and their businesses. Today, he has been held accountable for his brazen conduct.”
USSS Special Agent in Charge Patrick J. Freaney said: “The defendant committed malicious fraud for his own personal gain. With today’s guilty plea, he can no longer endanger the community. This case should serve as a strong deterrent for criminal actors considering taking part in similar fraud schemes. The U.S. Secret Service and its law enforcement partners will continue to investigate and pursue prosecution of these crimes in order to safeguard our communities.”
NYPD Commissioner Edward A. Caban said: “The charges Mr. Benreuben pled guilty to today are not victimless crimes. In addition to compromising the integrity of our nation’s mail system, these offenses harm the people whose mail is stolen and the public at large. The NYPD will continue to work closely with our law enforcement partners, including the U.S. Secret Service and the U.S. Attorney for the Southern District of New York, to always ensure that anyone who steals checks and commits fraud is held fully accountable.”
According to the filings and statements made in Manhattan federal court:
From approximately September 2021 through March 2022, BENREUBEN and others orchestrated an elaborate forgery and fraud scheme. In furtherance of the scheme, BENREUBEN stole checks from the mail, forged and altered the stolen checks, deposited the checks into bank accounts across New York, New Jersey, and Washington, D.C. belonging to 26 co-conspirators, and then rapidly withdrew the funds before the banks could void the checks or shut down the accounts. The checks ranged in amounts from approximately $5,000 to $42,000 and were drawn from the accounts of real businesses and individuals throughout the Northeast. In total, BENREUBEN and his co-conspirators deposited approximately $760,000 in fraudulent checks and withdrew approximately $115,000 before the banks shut down the affected accounts.
Upon his arrest, BENREUBEN was found hiding under a couch at a co-conspirator’s home and was in possession of numerous images of the personal identifiable information on individuals’ identification cards, debit cards, and social security cards.
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BENREUBEN, 26, of Mount Vernon, New York, pled guilty to one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison; one count of bank fraud, which carries a maximum sentence of 30 years in prison; and one count of aggravated identity theft, which carries a mandatory prison term of two years, which must run consecutively to any other prison term.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as BENREUBEN’s sentence will be determined by Judge Rakoff. BENREUBEN is scheduled to be sentenced by Judge Rakoff on January 10, 2024, at 4:00 p.m.
Mr. Williams praised the exceptional investigative work of the USSS and NYPD.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Amanda C. Weingarten, Diarra M. Guthrie, and Nicholas Folly are in charge of the prosecution.
Mobile Drug Dealer Sentenced to 42 Months in Federal PrisonRead the Press Release
MOBILE, AL – A Mobile man was sentenced to 42 months in prison for conspiring to distribute methamphetamine and fentanyl.
According to court documents, Daniel Mark Stanley, II, 37, was arrested in September 2021 by narcotics agents who had obtained a search warrant for his house in Mobile. Agents had previously captured Stanley on video selling fentanyl pills to a confidential informant. During the search at Stanley’s house, agents found, among other things, additional pills, syringes, digital scales, and Stanley’s cell phones. Agents interviewed Stanley, who confessed to his involvement in drug trafficking. A search of Stanley’s cell phones revealed hundreds of messages that he sent to coconspirators regarding distribution of methamphetamine and fentanyl, and illegal possession of firearms.
In addition to the 42-month prison term, Chief United States District Judge Jeffrey U. Beaverstock ordered Stanley to serve a three-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment. The court did not impose a fine, but Chief Judge Beaverstock ordered Stanley to pay $100 in special assessments.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Mobile County Sheriff’s Office and Homeland Security Investigations investigated the case.
Assistant U.S. Attorneys Justin Roller and Sinan Kalayoglu prosecuted the case on behalf of the United States.
Mobile Cardiac PET Scan Provider and Founder to Pay $85 Million to Resolve Allegedly Unlawful Payments to Referring DoctorsRead the Press Release
Cardiac Imaging Inc. (CII), headquartered in Illinois, and its founder, owner, and CEO Sam Kancherlapalli, a resident of Florida, have agreed to pay a total of $85,480,000 to resolve False Claims Act allegations that they paid referring cardiologists excessive fees to supervise PET scans in violation of the Anti-Kickback Statute (AKS) and the Physician Self-Referral Law (Stark Law). CII agreed to pay $75 million, plus additional amounts based on future revenues, and Kancherlapalli agreed to pay $10,480,000. These settlements are based on their ability to pay.
“Healthcare providers that pursue patient referrals through illegal kickbacks and other unlawful financial arrangements will be held accountable,” said Principal Deputy Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to safeguard federal healthcare funds by rooting out financial relationships between healthcare providers and referring physicians that can corrupt medical decisionmaking and increase the cost of care.”
The United States alleged that between March 1, 2014, and May 31, 2023, CII and Kancherlapalli knowingly caused false or fraudulent claims to federal health care programs arising from violations of the AKS and the Stark Law. Specifically, with Kancherlapalli’s oversight and approval, CII allegedly paid kickbacks to referring cardiologists in the form of above-fair market value fees of $500 or more per hour, ostensibly for the cardiologists to supervise the PET scans for the patients they referred to CII. The United States alleged these fees substantially exceeded fair market value for the cardiologists’ services because CII paid the referring cardiologists for each hour CII spent scanning the cardiologists’ patients, including time the cardiologists were away from CII’s mobile scanning units providing care for other patients or were not even on site. CII’s fees also purportedly compensated the cardiologists for additional services beyond supervision that were not actually provided. CII purported to rely on a consultant’s fair market value analysis that the United States alleged CII knew was premised on fundamental inaccuracies about the services referring physicians provided and that the consultant ultimately withdrew.
“Paying illegal kickbacks to cardiologists so they refer patients undermines the integrity of federal healthcare programs and needlessly increases costs,” said U.S. Attorney Alamdar Hamdani for the Southern District of Texas. “Patients deserve care based on their medical need and not on a doctor or company’s financial interest or gain. This outcome emphasizes my office’s commitment to pursing justice, ensuring the public’s trust in the federal healthcare system and holding the corrupt accountable.”
“Illegal kickback payments not only corrupt the medical decision-making process but also cause harm and financial loss to Medicare and other federally funded healthcare programs,” said Special Agent in Charge Jason E. Meadows for the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG works closely with our law enforcement partners to root out and hold accountable those who put profit and personal gain ahead of legitimate medical services.”
In connection with the settlement, CII and Kancherlapalli entered into a five-year Corporate Integrity Agreement (CIA) with the HHS-OIG. The CIA requires, among other compliance provisions, that CII implement measures designed to ensure that arrangements with referring physicians are compliant with the AKS and the Stark Law. The CIA also requires that CII implement a centralized annual risk assessment and internal review process to identify and address the AKS and the Stark Law risks associated with arrangements and retain an Independent Review Organization to perform a systems and transactions review of arrangements.
The civil settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by Lynda Pinto, a former billing manager at CII. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam action also raises claims against CII’s former President and part-owner Richard Nassenstein, which are not resolved in this settlement. The qui tam case is captioned U.S. ex rel. Pinto v. Cardiac Imaging, Inc., et al., No. 18-cv-2674 (S.D. Tex.). The relator’s share of the settlement has not yet been determined.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas, with assistance from the HHS-OIG, the Defense Health Agency Office of Inspector General, the Railroad Retirement Board Office of Inspector General, and Veteran’s Affairs Office of Inspector General
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the HHS at 800-HHS-TIPS (800-447-8477).
The matter was handled by Trial Attorneys Samuel R. Lehman and Jake M. Shields of the Justice Department's Civil Division, and Assistant U.S. Attorney Melissa M. Green for the Southern District of Texas.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Kancherlapalli Settlement CII SettlementMaryland U.S. Attorney's Office Partners with Baltimore Orioles to Elevate Campaign to End Gun Violence to New Heights [Photos]Read the Press Release
Baltimore, Maryland - The Maryland U.S. Attorney’s Office’s video spot aimed at ending gun violence is appearing on Baltimore’s “big screens.” Starting this week, "End Gun Violence" public service announcements will be featured on billboards, kiosks, bus shelters and other digital platforms across the region.
In September, the Maryland U.S. Attorney's Office launched a cutting edge 60 second public service announcement encouraging viewers to take action to end gun violence. The video continues to air across Maryland on digital platforms and will soon return to cable broadcast.
“There is no single solution to ending gun violence,” said Maryland U.S. Attorney Erek L. Barron. “We’ll make an impact with law enforcement working together with communities around prevention, intervention, and accountability.”Maryland is experiencing reduced violent crime than previous years as a result of collaborative efforts between law enforcement and community-based organizations. The Department of Justice's Project Safe Neighborhoods brings together committed groups to balance prevention, intervention, strategic law enforcement, and community engagement in an effort to end gun violence and keep communities safe.
The PSAs appear on outdoor platforms along I-895, I-83, throughout the Inner Harbor, and other places around greater Baltimore. Each includes a scannable code to find more information and learn how to get involved.
“The Baltimore Orioles, in partnership with our media partner, MASN, wholeheartedly support the effort to end gun violence throughout our communities because everyone deserves a safe place to call home,” said Kerry Watson, Executive Vice President, Public Affairs for the Baltimore Orioles. This campaign exposes the grief that impacts families every day and we appreciate the opportunity to be a vehicle for delivering this important message.”
No one should live in fear in their own home or neighborhood. This educational campaign encourages communities to get involved in ending gun violence.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Manatí School Security Guard Indicted for Child ExploitationRead the Press Release
SAN JUAN, Puerto Rico – On October 6, 2023, Special agents from Homeland Security Investigations (HSI) arrested Pedro Juan Molina-Falconi, a 34-year-old security guard from a school in Manatí, P.R.
A federal grand jury indicted Molina-Falconi on October 5, 2023, with three-counts for coercion and enticement of a minor, receipt of child exploitation material, and transfer of obscene material to a minor. This HSI-led investigation was conducted in collaboration with the Puerto Rico Police Bureau (PRPB) and the Puerto Rico Department of Education (PRDE).
According to court documents, between June and August 2023, Molina-Falconi used a cellular phone and an internet instant messaging platform to coerce a fifteen-year-old female minor to engage in sexual activity. During the same period the security guard, knowingly received child exploitation material and transferred obscene material to the fifteen-year-old female minor.
“These types of crimes cause immeasurable harm to both the child victims and their families,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “We will continue to work closely with our federal, state, and local law enforcement partners to identify, prosecute, and hold accountable those who exploit our children.”
Special Agent in Charge Rebecca González-Ramos stated: “The defendant in this case was a security guard of a school in Manatí, holding a position of public trust. He used his position of trust to take advantage of a minor within the safe space of our schools. HSI prioritizes the safety and well-being of our children, working together with the PRPB and the PRDE, to create a secure learning environment, we will not tolerate predators’ presence in our schools.”
Assistant U.S. Attorney Emelina Agrait-Barreto of the Child Exploitation and Immigration Unit is prosecuting the case.
If convicted, the defendant faces a mandatory minimum sentence of 10 years to life in prison for coercion and enticement of a minor; a mandatory minimum sentence of 5 years up to 20 years for receipt of child exploitation material; and up to 10 years in prison for the transfer of obscene material to a minor. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. After his initial appearance in court, the defendant was remanded to the custody of the U.S. Marshals.
For more information about HSI’s efforts to protect children from sexual predators, visit https://www.ice.gov/topics/iGuardiansArr; and to denounce suspicious activities call 787-729-6969.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Man Sentenced in El Paso for Trafficking Meth into U.S. from MexicoRead the Press Release
EL PASO, Texas – A Mexican national was sentenced in a federal court in El Paso to 70 months in prison for possession with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine.
According to court documents, Cesar Tarango Cobos, 42, of Chihuahua, Mexico attempted to enter the United States from Mexico through the Presidio Port of Entry on Feb. 17. A secondary vehicle inspection revealed 94 brick-shaped bundles containing 38.72 kilograms of marijuana and 21 cylinder-shaped bundles containing 10.2 kilograms of methamphetamine stored in after-market compartments and in the rear bumper and side panel areas of the vehicle.
“Agents at the ports of entry remain vigilant and I commend all of our law enforcement partners for their investigative work in this case,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “As the U.S. Attorney’s Office, we are committed to working with our federal partners to prosecute drug traffickers and protect our communities from the detrimental effects of their crimes.”
“With this conviction, FBI El Paso and our Drug Enforcement Administration partners are working together to have a positive impact at the local level,” said Special Agent in Charge John Morales for the FBI El Paso Field Office. “We are sending a strong and unified message that drug trafficking will not be tolerated, and, in turn, we are keeping our communities safer and free from methamphetamine which continues to cause horrific damage in too many of our communities.”
“Over 100,000 Americans died last year due to illicit synthetic drugs, primarily fentanyl and methamphetamine,” said Acting Special Agent in Charge Eric Castañeda of the DEA’s El Paso Division. “The men and women of the DEA will continue to prioritize, with laser focus, those who traffic these harmful drugs.”
The FBI and Drug Enforcement Administration investigated the case.
Assistant U.S. Attorney Kyle Myers prosecuted the case.
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Man Convicted in $67M “Doctor Chase” Genetic Testing Fraud SchemeRead the Press Release
A federal jury in Fort Pierce, Florida, convicted a Florida man on Oct. 6 for his role in a scheme to defraud Medicare of over $67 million by tricking physicians into authorizing thousands of genetic tests that were completely unnecessary and not used in the treatment of the Medicare beneficiaries who took them.
According to court documents and evidence presented at trial, Jose Goyos, 37, of West Palm Beach, managed a call center that engaged in deceptive telemarketing calls targeting thousands of Medicare beneficiaries and their physicians. Goyos and his co-conspirators managed the so-called “doctor chase” division of the call center, which contacted the primary care physicians of targeted Medicare beneficiaries and tricked these medical providers into ordering and authorizing medically unnecessary genetic tests based on medical paperwork that the call center created. For example, Goyos directed call center employees to falsely represent to providers that the Medicare beneficiaries were “mutual patients” who requested these genetic tests, and that the beneficiaries had medical conditions justifying genetic testing, when neither statement was true.
Goyos and his co-conspirators then used those doctors’ authorizations to submit claims to Medicare for the expensive and unnecessary genetic tests. In reality, the labs were shells; they had no equipment, did not conduct a single test, and had no lab personnel. Goyos and his co-conspirators referred all the genetic tests to other labs, which conducted them at a small fraction of the price that Goyos and his co-conspirators charged to Medicare. Finally, after the tests were conducted, the results often were not sent to the Medicare beneficiary’s primary care physicians and were not used in the treatment of the beneficiary.
In total, between June 2020 and July 2021, Goyos and his co-conspirators submitted over $67 million of these false and fraudulent claims to Medicare, of which Medicare paid over $52 million.
The jury convicted Goyos of conspiracy to commit wire fraud and conspiracy to commit money laundering. He is scheduled to be sentenced on Dec. 21. He faces a maximum penalty of 20 years in prison for the conspiracy to commit wire fraud count and 10 years in prison for the conspiracy to commit money laundering count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
To date, 20 other defendants have pleaded guilty in the scheme to various charges, including the leaders of the scheme – Daniel M. Carver, Thomas Dougherty, and John Paul Gosney Jr. – who are scheduled to be sentenced in December.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI and HHS-OIG investigated the case.
Trial Attorneys Patrick J. Queenan, Reginald Cuyler Jr., and Andrew Tamayo of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Long Island Man Indicted for Smuggling Protected Birdwing ButterfliesRead the Press Release
A six-count indictment was unsealed today in federal court in Brooklyn charging Charles Limmer with conspiracy to smuggle wildlife into the United States, smuggling wildlife into and out of the United States, and violations of the Lacey Act’s prohibitions on falsely labeling and trafficking in wildlife. Limmer allegedly trafficked numerous deceased specimens of protected butterflies commonly referred to as “birdwings” due to their exceptional size, angular wings and bird-like flight. Limmer will be arraigned at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, and Paul Chapelle, Resident Agent-in-Charge, U.S. Fish and Wildlife Service, Valley Stream Division (FWS), announced the charges.
Mr. Peace also thanked the U.S. Postal Inspection Service and U.S. Customs and Border Protection for their assistance with the investigation.
Limmer operated a commercial business (the “Limmer Business”) importing, exporting, purchasing, and selling wildlife, including protected species of butterflies. In 2016, the Limmer Business obtained a license to import and export wildlife from the FWS. The FWS suspended the license in October 2022.
U.S. law and regulations require that commercial importers and exporters of wildlife have a license and declare wildlife to the FWS. The restrictions apply to live and dead wildlife specimens, as well as the skins, parts and products made in whole or in part from listed species. Additional documents are also required for wildlife protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), including birdwing butterflies. The Lacey Act also requires that wildlife shipments be accurately labeled and prohibits trafficking in wildlife that an individual knows was transported unlawfully.
As alleged in the indictment, between October 2022 and September 2023, Limmer illegally imported and exported over $200,000 worth of shipments of deceased wildlife specimens. Limmer sold the unlawfully imported wildlife on Internet platforms to customers located around the world. To conceal the scheme, Limmer directed his co-conspirators to label the shipments of wildlife as “decorative wall coverings,” “origami paper craft” and “wall decorations.” He also noted to one co-conspirator, “Screw USFWS[….] They are a gang of Orangutans.”
The indictment also seeks forfeiture of over 1,000 butterflies, moths and other insects alleged to have been illegally trafficked.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of smuggling, Limmer faces up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Sean M. Sherman is in charge of the prosecution with the assistance of Paralegal Specialist Stephanie Heyward.
The Defendant:
CHARLES LIMMER
Age: 75
Commack, New YorkE.D.N.Y. Docket No. 23-CR-405 (LDH)
Lodge Grass woman admits trafficking meth, fentanyl in multi-state drug ring centered on Crow Indian ReservationRead the Press Release
BILLNGS — A Lodge Grass woman today admitted to trafficking methamphetamine and fentanyl as part of a large-scale, multiple-state narcotics organization that was centered on the Crow Indian Reservation, U.S. Attorney Jesse Laslovich said.
Yvon Lizbeth Lopez-Flores, 29, pleaded guilty to possession with intent to distribute controlled substances. Lopez-Flores faces a mandatory minimum of five years of imprisonment, a $5 million fine and at least four years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Lopez-Flores was detained pending further proceedings.
In court documents, the government alleged that federal law enforcement, in a collaborative effort with local and tribal law enforcement, conducted a large-scale, multiple-state investigation into narcotics trafficking centered on multiple properties on the Crow Indian Reservation. The properties, including one referred to as Spear Siding, were a source of supply for meth for both the Crow and Northern Cheyenne Indian Reservations. Lopez-Flores is one of the individuals associated with the investigation.
In July 2022, law enforcement learned that Lopez-Flores was identified as a distributor of meth and was working with several individuals on the Crow and Northern Cheyenne Indian Reservations.
Assistant U.S. Attorneys are prosecuting the case. The Bureau of Indian Affairs, Drug Enforcement Administration and FBI conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Lewis County man sentenced for attempting to obstruct hate crime investigationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Troy Anthony Pertuset, 37, of Jane Lew, West Virginia, was sentenced today to 21 months in federal prison for obstructing justice by tampering with a witness.
According to court documents and statements made in court, Pertuset was arrested by the Weston Police Department and charged with a hate crime for allegedly shooting a paintball gun at an African American man and shouting racial slurs. While Pertuset was in custody, investigators say he called a witness and asked that the person take the blame for firing the gun.
Assistant U.S. Attorneys Jarod Douglas and Sarah Wagner prosecuted the case on behalf of the government.
This case was investigated by the Federal Bureau of Investigation.
Chief U.S. District Judge Thomas S. Kleeh presided.
Leader and Two Members of Brooklyn-Based Real Ryte Gang Convicted of Violent Racketeering OffensesRead the Press Release
Earlier today, Semaj Smith, also known as “Bam Bam” and “Real Ryte Sport,” a member of the Brooklyn-based street gang Real Ryte, pleaded guilty at the federal courthouse in Brooklyn to racketeering conspiracy and brandishing a firearm in furtherance of a crime of violence. Smith’s guilty plea was preceded by those of co-defendants Dajahn McBean, also known as “Jeezy Mula,” who is the leader of Real Ryte, and Real Ryte member Mark Waiters, also known as “Telly.” The three defendants pleaded guilty in connection with a superseding indictment stemming from Real Ryte’s gang war with the Breadgang crew of the 5-9 Brims, a subset of the Bloods, including a shooting in which Real Ryte members and an associate wounded an innocent bystander they mistook for a member of the rival crew.
Today’s proceeding took place before United States District Judge Hector Gonzalez. When sentenced, Smith and Waiters each face up to life in prison, and McBean faces up to 20 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the guilty pleas.
“The defendants admitted that Real Ryte carried out violent crimes and committed acts of fraud, leaving some victims destitute and others shot.” stated United States Attorney Peace. “These types of organized criminal groups inflict grievous harm on their communities and will not be tolerated.”
Mr. Peace expressed his appreciation to the New York City Police Department for outstanding work and assistance in this investigation.
According to court filings and facts presented during the plea proceedings, between 2015 and 2018, Real Ryte was a violent street gang that operated in Brooklyn. Real Ryte members committed acts of violence, including murder and assault, and also engaged in bank fraud and wire fraud while committing other serious crimes.”
During the charged period, Real Ryte was engaged in a violent conflict with members of a rival crew known as the “Breadgang,” whose members also operated in Brooklyn. The gang war led to a series of shootings between Real Ryte and Breadgang, including the murder of Sean Peart, a Real Ryte member, a crime for which Marvin Pippins, a Breadgang member, was convicted following trial in the Eastern District of New York. Following Peart’s death, the defendants and other members of Real Ryte sought to retaliate against Pippins and other Breadgang members. On January 3, 2017, the defendants learned that a Breadgang member could be found in lower Manhattan, and, at McBean’s direction, Smith, Waiters and a co-conspirator traveled there to shoot and kill him. However, the defendants mistakenly shot an innocent person they mistook for their intended target, seriously injuring the victim before fleeing.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Garen Marshall, Joy Lurinsky and Rebecca Schuman are in charge of the prosecution, with assistance from Paralegal Specialists Cleon Thomas and Abiodun Ojo.
The Defendants:
DAJAHN MCBEAN (also known as “Jeezy Mula”)
Age: 28
Brooklyn, New YorkSEMAJ SMITH (also known as “Bam Bam” and “Real Ryte Sport”)
Age: 30
Brooklyn, New YorkMARK WAITERS (also known as “Telly”)
Age: 26
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-260 (S-1) (HG)
Kansas man sentenced for child pornographyRead the Press Release
KANSAS CITY, KAN. - A Kansas man was sentenced to 108 months in prison for distribution of child pornography.
According to court documents, Bardia Behravesh, 46, of Mission, Kansas, admitted in pleading guilty that he knowingly distributed videos of child pornography online through various apps and file-sharing programs. The videos and images included minors under the age of 12 and depictions of violence. After agents discovered Behravesh sharing this content, they obtained a search warrant of his home and discovered multiple electronics which contained images and videos of child pornography.
In addition to 108 months of imprisonment, his sentence included a $74,000 restitution award to the victims depicted in the images and videos, a $35,000 assessment pursuant to the Amy, Vicky, and Andy Child Pornography Victim Assistance Act of 2018 and $5,000 assessment pursuant to the Justice for Victims of Trafficking Act of 2015.
Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorney Faiza Alhambra prosecuted the case.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
#KC Man Sentenced to Life in Prison, Plus 15 Years, for Leading Cyberstalking Conspiracy That Resulted in MurderRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for leading a cyberstalking conspiracy that utilized GPS tracking devices to carry out the murder of another Kansas City, Mo., man by tracking him and shooting him to death in front of his minor daughter.
Lester E. Brown, also known as “Lucky,” 36, was sentenced by U.S. District Judge Greg Kays to life plus 15 years in federal prison without parole.
On May 5, 2023, Brown was found guilty at trial of one count of conspiracy to commit cyberstalking, one count of cyberstalking resulting in death, and one count of being a felon in possession of a firearm. The court sentenced Brown to life in prison for cyberstalking resulting in death, 10 years in prison for illegally possessing a firearm, and five years in prison for conspiracy, all of which must be served consecutively.
Co-defendants Michael Young, 32, of Independence, Mo., and Ronell Pearson, 36, of Minneapolis, Minnesota, have each pleaded guilty and were sentenced in June 2023 for their roles in the cyberstalking conspiracy. Young also pleaded guilty to cyberstalking resulting in death. Young was sentenced to 15 years in federal prison without parole. Pearson was sentenced to five years in federal prison without parole.
The court also ordered Brown, Young and Pearson to pay $19,012 in restitution to compensate the murder victim’s family for funeral and burial expenses, for which they are jointly and severally liable.
Murder of Christopher Harris
Brown, Young, and Pearson participated in a conspiracy to engage in the cyberstalking of Christopher Harris. Brown deployed multiple GPS devices on vehicles used by Harris to track his location. Brown tracked Harris for an extended period of time.
In January 2018, conspirators surveilled Harris’s girlfriend at her place of employment, and followed her to the residence she shared with Harris. In February 2018, they deployed a GPS tracking device on Harris’s black Nissan Altima, and used a tracking service to determine his real-time location. Another tracking device was deployed on Harris’s vehicle on March 12, 2018.
On March 14, 2018, Brown tracked Harris to a dance studio in Raytown, Mo. With Brown driving and Young and Pearson passengers, they followed Harris’s vehicle as he drove his daughter home from dance class and dropped her off at her mother’s residence in Independence. Brown pulled up behind Harris’s vehicle, blocking Harris in the driveway. Brown got out of the car and shot a firearm multiple times into Harris’s vehicle, causing Harris to scream, “My daughter’s in the car! My daughter is in the car!” Brown fired several more rounds at Harris as he ran, shielding his daughter with his body, to the front door of the house. Harris’s daughter was able to make it inside the house unharmed, but Harris fell to the ground before he reached the house. Brown stood over him and fired two last rounds at him while he lay on the ground.
Prior to his murder, conspirators had been sending threatening messages to Harris using the social media service Snapchat. These messages included photographs of GPS devices and demands for a $10,000-per-month payment to Brown.
According to court documents, while in custody Brown bragged to multiple individuals about killing Christopher in front of his daughter and told them he should have killed her, too. Brown also took multiple concerted actions to obstruct the investigation and prosecution in this case. He obtained and utilized smuggled cell phones, by which he threatened the life of an FBI task force officer who was a lead investigator in his case. Brown also posted messages on Facebook in an apparent attempt to intimidate co-conspirators and others so they would not testify at trial.
Brown’s conviction for being a felon in possession of a firearm is related to him illegally possessing the Glock .45-caliber pistol used to murder Harris. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Brown was on supervised release following his conviction and incarceration for being a felon in possession of a firearm when he stalked and murdered Harris.
Murder of Ryan Cobbins
Evidence was also presented during Brown’s trial regarding the murder of Ryan Cobbins, a friend and associate of Harris. One of the Snapchat messages sent to Harris threatened, “Man, you … are gonna end up like Ryan,” which Harris took to be a reference to the murder of his friend Ryan Cobbins in 2013.
Cobbins went missing on Oct. 24, 2013, following a haircut appointment. In November 2013, Brown accepted $20,000 from Harris and another person as “ransom” payment for the return of Cobbins. Brown claimed he could act as the middleman between the kidnappers and Harris, and that he could arrange the safe return of Cobbins. On Dec. 31, 2014, Cobbins was found dead from multiple gunshot wounds.
This case was prosecuted by Assistant U.S. Attorneys Matthew P. Wolesky and Nicholas P. Heberle. It was investigated by the Independence, Mo., Police Department, the Kansas City, Mo., Police Department, and the FBI.
Iowa Man Sentenced to 10 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
ROCK ISLAND, Ill. – A Davenport, Iowa man, Joseph A. Meador, 37, was sentenced on October 4, 2023, to 120 months’ imprisonment, followed by 5 years of supervised release for possession with intent to distribute at least 50 grams of pure (ice) methamphetamine.
At the sentencing hearing before U.S. District Judge James E. Shadid, the government referenced prior written filings stating that in April 2021, Moline police officers received information that Meador was distributing methamphetamine in the Quad Cities area. Officers approached Meador, who was in a SUV that was parked in a motel parking lot and found him to be in possession of 55.6 grams of methamphetamine and $3,970 cash. Meador admitted to officers that he had gone to the motel to sell half an ounce of methamphetamine and he had been selling methamphetamine to four or five customers since January or February 2021.
Meador was indicted in October 2021 and arrested in April 2022. He entered into a written plea agreement in May 2023. Meador has been in the custody of the U.S. Marshals Service since his arrest.
The statutory penalties for distribution of more than 50 grams of ice methamphetamine are 10 years to life imprisonment, a possible fine of up to $10 million dollars, and at least 5 years of supervised release.
The Moline Police Department and the Drug Enforcement Administration (“DEA”) investigated the case. Assistant U.S. Attorneys Ronald L. Hanna represented the government in the prosecution.
The case against Meador 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.
Indy Man Sentenced to Six Months in Federal Prison for Falsely Identifying Robbery Suspect in Order to Claim Cash RewardRead the Press Release
INDIANAPOLIS- Carl Davis, 25, of Indianapolis, Indiana, has been sentenced to six months in federal prison after pleading guilty to making a false statement or representation in a matter within the jurisdiction of the executive branch of the government of the United States.
According to court documents, on April 1, 2022, a letter carrier with the United States Post Office was robbed in the 1200 block of South Reisner Street in Indianapolis. Immediately following the armed robbery, the U.S. Postal Inspection Service announced that it was offering a $50,000 reward to anyone who provided information leading to the suspect’s arrest and conviction.
On April 7, 2022, Carl Davis called the tip line and claimed that he witnessed the robbery. In an interview with USPIS agents, under oath, Davis stated that he witnessed a man named M.S. hold a tan knife or gun to the letter carrier, take something from him and knock him down.
Further, Davis stated that he and M.S. communicated through Facebook Messenger. During this conversation, M.S. purportedly admitted to robbing the letter carrier. Davis provided investigators with images showing the purported conversation between him and M.S.
These statements were lies. Postal Inspectors discovered that the M.S. Facebook account—the one in which M.S. allegedly admitted to the robbery—was created by the Davis to set M.S. up. Davis admitted that he disliked M.S. for personal reasons and lied in hopes of getting M.S. incarcerated and collecting the $50,000 reward. M.S. did not commit the armed robbery.
“Greed and a petty personal beef do not entitle someone to lie and fabricate evidence in a federal investigation. The defendant’s attempt to frame an innocent person for a violent crime and collect the reward money was despicable,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “The prison sentence imposed here demonstrates that serious crimes like this carry serious consequences. I commend the work of the U.S. Postal Inspection Service to quickly debunk the defendant’s lies and ensure that he is held accountable.”
This case was investigated by the U.S. Postal Inspection Service. The sentence was imposed by U.S. District Court Judge, Matthew P. Brookman. Judge Brookman also ordered that Davis be supervised by the U.S. Probation Office for 18 months following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Adam J. Eakman, who prosecuted this case.
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Indian River County Man Who Committed Three Armed Robberies in Six-Day Spree in Melbourne and Orlando Sentenced to 17 YearsRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced Bernard Rogers (35, Sebastian) to 17 years in federal prison for committing armed robbery on July 14, 18, and 20, 2022. The court also ordered Rogers to forfeit $3,218 in cash and the firearm and ammunition possessed by Rogers when he was arrested. Rogers had pleaded guilty on June 8, 2023.
According to court documents, on Thursday, July 14, 2022, Rogers entered a Cracker Barrel in Melbourne and, after approaching the cashier with items to purchase, pointed a small black firearm at her and demanded money from the register. Rogers left the store with approximately $1,000 and fled from the scene in a vehicle that he had rented. On Monday, July 18, 2022, Rogers arrived at a Dollar General in Orlando, pointed a small handgun at the cashier, demanded all the money in the drawer, and told the cashier not to “try anything.” Rogers fled with $300 in his rental vehicle. On Wednesday, July 20, 2022, Rogers entered a T.D. Bank in Melbourne, showed his gun, and told the teller to empty his drawer and not do anything “stupid.” The teller gave Rogers more than $3,000, along with a concealed GPS tracker. Law enforcement located the tracker and after a short chase, Rogers was arrested in his rental getaway car with more than $3,000, the GPS tracker, and a black Ruger .380 firearm loaded with six bullets. License plate readers and other electronic information from Roger’s phone and rental car placed him at the scenes of all three robberies.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Brevard County Sheriff’s Office and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Dana E. Hill.
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.
Huntington Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – TJ Jazz Cremeans, 21, of Huntington, was sentenced today to one year and two months in prison, to be followed by three years of supervised release, for theft of firearms from a federal firearms licensee.
According to court documents and statements made in court, on July 15, 2022, Cremeans and Brennon Michael Adkins, 22, broke into Tri-State Pawn and Jewelry in Huntington to steal various electronics from the store’s inventory. Cremeans admitted that he stole a DPMS model AR-15 5.56mm rifle, a Savage Arms model 111 .30-06-caliber rifle, and a Stoeger model M3000 12-gauge shotgun during the breaking and entering.
Adkins pleaded guilty to possession of a stolen firearm on May 1, 2023, and admitted that he possessed the Stoeger model M3000 12-gauge shotgun following the breaking and entering. Adkins awaits sentencing.
Nigel Jamille Coats, 19, of Huntington, was sentenced to nine months in prison on September 25, 2023, after pleading guilty to possession of a stolen firearm. Coats admitted that he possessed the DPMS, model AR-15 5.56mm rifle shortly after the breaking and entering and theft was completed.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Troy D. Adams prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-213.
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Honduran National Previously Deported 4 Times Sentenced to 3 Years in Federal Prison for Illegally Reentering the U.S.Read the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MIGUEL ANTONIO CONTRERAS-MARTINEZ, 54, a citizen of Honduras residing in Stamford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 36 months of imprisonment for illegally reentering the U.S.
According to court documents and statements made in court, Contreras-Martinez was deported from the U.S. to Honduras in 2006, following the completion of a Connecticut state sentence for a violation of probation and violation of a protective order, and in 2010, following the completion of a Connecticut state sentence for carrying a dangerous weapon. Contreras-Martinez returned to the U.S., was convicted in Connecticut state court of criminal trespass and in federal court of illegal reentry, and was deported to Honduras in 2013. He was subsequently again found in the U.S. and deported to Honduras in 2016.
In 2021, Contreras-Martinez was arrested by Stamford Police for operating a motor vehicle under the influence of alcohol/drugs, and operating a motor vehicle under suspension. He subsequently failed to appear for a court proceeding. On September 30, 2022, Contreras-Martinez turned himself into the Fairfield Police Department following a hit and run incident.
Contreras-Martinez has been detained since his federal arrest on November 10, 2022. On July 13, 2023, he pleaded guilty to illegal reentry of a removed alien.
This investigation was conducted by the U.S. Immigration and Customs Enforcement (ICE). The case was prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
Holly Ridge Man Sentenced to More Than 22 Years for Producing Child PornographyRead the Press Release
NEW BERN, N.C. – A Holly Ridge man was sentenced today to 270 months imprisonment followed by a lifetime of supervised release for Production of Child Pornography. Aaron Halbeisen, age 35, pled guilty to the charge on March 15, 2023.
According to court documents and other information presented in court, the Department of Homeland Security Investigations and the Onslow County Sheriff’s Office initiated an investigation of Halbeisen in June 2019 following a tip from the Queensland Police Service in Australia, who were conducting an undercover investigation into an image sharing website. During the undercover investigation, one of the users posted a picture of a small child that constituted child pornography. The IP address used to upload the photograph was leased by Halbeisen with an associated address in Holly Ridge, North Carolina.
Homeland Security agents and detectives with Onslow County Sheriff’s Office went to Halbeisen’s residence and confronted him about the photograph. Halbeisen admitted he had taken the photograph and acknowledged the child was someone with whom he had contact. A search warrant was obtained for the residence to search any digital devices for additional contraband images.
When Halbeisen’s digital devices were searched, additional images of the child were located on his phone that also constituted child pornography. In addition, agents located hundreds of images of child pornography unrelated to the minor child. Agents also found numerous chats between Halbeisen and another user of the image sharing website wherein the two discussed the sexual abuse of minors as well as traded images and videos depicting the sexual abuse of children.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing was concluded. U.S. District Judge Louise W. Flanagan presided over the sentencing. The Department of Homeland Security Investigations and Onslow County Sheriff’s Office investigated the case and Assistant U.S. Attorney Charity Wilson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-CR33-FL
Hartford Man Sentenced to 4 Years in Federal Prison for Illegally Possessing Loaded HandgunRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ERIC WHITE, 31, of Hartford, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 48 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on February 17, 2021, Hartford Police arrested White after a foot chase and they found him in possession of a loaded .45 caliber Taurus handgun.
White’s criminal history includes state felony convictions for assault and narcotics offenses, and he was on special parole with the state when he was arrested in February 2021. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
White has been detained since his arrest. On June 30, 2022, he pleaded guilty to unlawful possession of a firearm by a felon.
This investigation was conducted by the Federal Bureau of Investigation’s Connecticut Violent Crime Task Force and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorneys Jennifer R. Laraia and Elena L. Coronado.
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.
Former Used Car Dealer Sentenced to Federal Prison for Leadership Role in $2.4 Million Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – A former Massachusetts used car dealer who led a wide-ranging conspiracy to defraud financial institutions in several states, including Rhode Island, out of more than $2.8 million dollars has been sentenced to five years in federal prison, announced United States Attorney Zachary A. Cunha.
Rolando E. Estrella, 35, of Dracut, MA., the former owner of a used car dealership in Lawrence, MA, previously admitted to a federal judge in Providence that he recruited, employed, and directed others to file fraudulent used car loan applications using stolen personal identifying information and fraudulent documents, including falsified car. Once the loans were issued by financial institutions, the proceeds were deposited into bank accounts controlled by members of the conspiracy and the proceeds were then quickly withdrawn in cash.
According to information presented to the court, Estrella and his co-defendants intended to defraud financial institutions of more than $2.8 million.
Estrella pleaded guilty on October 1, 2022, to conspiracy to commit bank fraud, seven counts of bank fraud, and one count of fraudulent use of a Social Security number. He was sentenced today in sixty months in federal prison to be followed by three years of federal supervised release. Estrella was ordered to pay restitution to financial institutions totaling more than $2.8 million.
The case was prosecuted by Assistant U.S. Attorney G. Michael Seaman.
The investigation into this fraud ring which operated throughout the northeast was conducted by the Social Security Office of Inspector General and the United States Secret Service.
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Former Fresno Resident Pleads Guilty to Cyberstalking and Sending Interstate ThreatsRead the Press Release
FRESNO, Calif. — William Lee Robinson, 43, of Hattiesburg, Mississippi, pleaded guilty today to five counts of sending threatening interstate communications and three counts of cyberstalking, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Robinson worked at a business in Fresno from June to November in 2017. After the business fired him, Robinson began sending threatening messages to his former supervisor and other co-workers in an attempt to extort them for money. These threats included graphic statements threatening to physically harm co-workers and a former supervisor’s daughter. Robinson made the threats because he wanted the company to pay him between $10,000 and $20,000 to cover the cost of relocating to a different city.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney David Gappa is prosecuting the case.
U.S. District Judge Jennifer L. Thurston is scheduled to sentence Robinson on Feb. 12, 2024. He faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each of the five counts of sending threatening communications. He faces a maximum statutory penalty of five years in prison and a $250,000 fine for each of the cyberstalking counts. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Cincinnati City Council member sentenced to 16 months in prison for bribery, attempted extortionRead the Press Release
CINCINNATI – Former Cincinnati City Council member Alexander “P.G.” Sittenfeld, 39, of Cincinnati, was sentenced in U.S. District Court today to 16 months in prison for bribery and attempted extortion by a government official.
Sittenfeld was convicted following a jury trial in June and July 2022.
“Sittenfeld earned today’s prison sentence,” said U.S. Attorney Kenneth L. Parker. “A jury of his peers reviewed the evidence against him and found him guilty. Now, he must be accountable for his actions. Not only did he break the law, but he also violated the public’s trust. Public service is just that: public service, not self service.”
According to court documents and trial testimony, Sittenfeld accepted $20,000 in bribe payments to his political action committee (PAC) from undercover FBI agents posing as corrupt businessmen working with a real estate developer.
Sittenfeld knowingly received the $20,000 in bribe payments in return for guaranteeing votes for a development project at 435 Elm St. Sittenfeld told the undercover agents he could “deliver the votes.”
Trial testimony detailed that Sittenfeld’s typical fundraising strategy was to use his power over city business to extract campaign contributions from individuals who regularly conducted business with the city. Sittenfeld instructed his staff to create a list and track individuals with business before the city so he could identify and target donors.
For example, Sittenfeld solicited the real estate developer to collect $10,000 in contributions to the former council member for Sittenfeld’s support of the developer’s efforts.
In total, Sittenfeld accepted eight $5,000 checks in 2018 and 2019 from the undercover FBI agents. The latter $20,000 was received from the undercover agents for help with their sports book.
Sittenfeld’s PAC records do not list the undercover agents as the source of the $40,000 total that he received directly from them, and his ethics disclosures failed to list expensive gifts and dinners he received from the undercover agents.
Sittenfeld was indicted in November 2020.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed today by U.S. District Court Judge Douglas R. Cole. Deputy Criminal Chief Emily N. Glatfelter and Assistant United States Attorneys Matthew C. Singer and Megan Gaffney Painter represented the United States in this case.
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Former CEO of Iconix Brand Group Sentenced to 18 Months in Prison for Accounting FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced earlier today that NEIL COLE, the former Chief Executive Officer of Iconix Brand Group, Inc. (“Iconix”), was sentenced today in Manhattan federal court to 18 months in prison for participating in a scheme to fraudulently inflate Iconix’s revenue and earnings per share, making false filings with the U.S. Securities and Exchange Commission (“SEC”), and misleading the conduct of audits. In November 2022, a jury found COLE guilty following a four-week retrial before U.S. District Judge Edgardo Ramos, who imposed today’s sentence.
According to the allegations contained in the Indictment, the evidence offered at trial, and matters included in public filings:
Iconix, whose shares traded on the NASDAQ, was in the business of acquiring various brands, including clothing and fashion brands, and then licensing those brands to retailers, wholesalers, and suppliers who, in turn, produced and sold clothing and other products bearing the brand names.
Iconix utilized joint ventures (“JVs”) to profit from its brands in foreign markets. With respect to these JVs, Iconix transferred ownership of a trademark or brand to the JV while maintaining a 50% ownership interest in the JV itself. The other party involved in the JV purchased a 50% interest in the JV from Iconix. As part of the JV agreements, each JV partner was generally entitled to 50% of the JV’s licensing revenue. When it entered into a JV, Iconix recognized as revenue the buy-in purchase price paid by the JV partner, less Iconix’s cost basis in the trademarks.
Among the most critical financial metrics disclosed in Iconix’s public filings with the SEC were Iconix’s quarterly and annual revenue and non-GAAP diluted earnings per share (“EPS”). Iconix executives, including COLE, publicly identified revenue and EPS as the principal metrics demonstrating Iconix’s growth. They also touted Iconix’s consistent record of revenue and earnings growth and of meeting or exceeding Wall Street analyst consensus with respect to these metrics.
The Accounting Fraud Scheme
COLE engaged in a scheme to falsely inflate Iconix’s reported revenue and EPS by orchestrating a series of “round trip” transactions in which COLE and a senior Iconix executive induced a JV partner, a Hong Kong-based international apparel licensing company (“Company-1”), to pay artificially inflated buy-in purchase prices for JV interests, with the understanding that Iconix would then reimburse Company-1 for the overpayments. COLE executed the scheme for the purpose of enabling Iconix to report fraudulently inflated revenue and EPS figures based on the inflated buy-in purchase prices it obtained from Company-1.
COLE arranged for Iconix to enter into at least two JVs with Company-1 that included inflated buy-in purchase prices from Company-1: (i) an amendment to a preexisting Southeast Asia joint venture, which closed on or about June 30, 2014 (“SEA-2”), and (ii) a second amendment to the Southeast Asia joint venture, which closed on or about September 17, 2014 (“SEA-3”). SEA-2 and SEA-3 involved a fraudulent “round trip” transaction, lacking in economic substance, in which Company-1 paid an artificially inflated buy-in purchase price for its interest in the JV, in exchange for COLE’s agreement that Iconix would give back the inflated portion of the purchase price to Company-1. COLE and a senior Iconix executive hid from Iconix’s lawyers and outside auditors that COLE had reached an understanding with Company-1 to artificially increase the consideration Company-1 paid Iconix in exchange for COLE’s agreement to round-trip the overpayment back to Company-1.
Through the scheme, COLE caused Iconix to report fraudulently inflated revenue and EPS figures to the investing public. COLE did so, in part, to ensure that the reported figures met analyst consensus and to fraudulently convey the impression to the investing public that Iconix was growing quarter after quarter, as COLE had touted to the investing public.
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In addition to his prison term, COLE, 66, of New York, New York, was sentenced to three years of supervised release and ordered to pay forfeiture in the amount of $790,200.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation and the SEC Office of the Inspector General. Mr. Williams also thanked the SEC Division of Enforcement, which previously brought a separate civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jared Lenow, Justin V. Rodriguez, and Andrew Thomas are in charge of the prosecution.
Five Charged with Bank Fraud Conspiracy, Aggravated Identity TheftRead the Press Release
ALBANY, NEW YORK – Five people have been indicted and arrested in connection with a bank fraud conspiracy targeting SEFCU, now Broadview Federal Credit Union. United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
According to the indictment, court filings, and statements made by prosecutors in court, between February and October 2022, the conspirators obtained customer account information from Caeshara Cannon, age 33, of Albany, formerly a Member Services Representative at SEFCU. They used that information to create counterfeit checks, which were presented for negotiation at SEFCU branches. The conspirators also obtained personal identifying information of other people, which they used to fraudulently obtain loans from SEFCU and then withdraw the proceeds in cash. The conspirators used fake New York State driver’s licenses, with pictures of the conspirators but bearing the personal identifying information of others, during the loan application process. The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The following individuals were charged in the indictment handed up September 21, 2023:
- Allahson Allah, formerly known as Gwyn Cancer, age 53, of Albany, is charged with one count of conspiracy to commit bank fraud and two counts of aggravated identity theft.
- Evan Cutler, age 24, of Queensbury, New York, is charged with one count of conspiracy to commit bank fraud and four counts of aggravated identity theft.
- Dnauticah Taylor-Sterman, age 21, of Albany, is charged with one count of conspiracy to commit bank fraud and one count of aggravated identity theft.
- Davon Parson, age 20, of Troy, New York, is charged with one count of conspiracy to commit bank fraud and two counts of aggravated identity theft.
In addition, Cannon was previously arrested and pled guilty on September 14, 2023 to one count of conspiracy to commit bank fraud and one count of aggravated identity theft.
A conviction for conspiracy to commit bank fraud carries a term of up to 30 years in prison, and a conviction for aggravated identity theft carries a mandatory term of imprisonment of 2 years, which must be imposed consecutive to any term of incarceration imposed for the bank fraud offense. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
HSI is investigating the case, with assistance from the Bethlehem Police Department. Assistant United States Attorney Benjamin S. Clark is prosecuting this case.
District Nightclub Owner Guilty of Bribing Tax OfficialsRead the Press Release
Jury Finds Zeba Bar Owner Paid Off Officials for Five Years
WASHINGTON – Davoud Jafari, 72, a Washington D.C. nightclub owner, was found guilty today of bribery, conspiracy, and wire-fraud. The offenses arise from a multi-year-scheme in which he bribed former D.C. Tax Official Vincent Slater in order to avoid paying several hundred thousand dollars in business-related taxes. U.S. District Court Judge Reggie B. Walton will sentence Jafari on January 25, 2024.
The verdict was announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge Wayne A. Jacobs, with the Washington Field Office Criminal and Cyber Division, D.C. Inspector General Daniel W. Lucas, and the D.C.Chief Financial Officer Glen Lee.
According to the evidence at trial, Jafari owned a company called Gevani, Inc., which in turn owned and operated Zeba Bar and Grill, located in Columbia Heights. Between October 2012 and December 2017, Jafari collected sales and use taxes from Zeba Bar and Grill customers consisting of 10 percent of the cost of food and drinks purchased. Although Jafari was supposed to turn those tax dollars over to the district on a monthly basis, he instead wrote a check to middleman and co-defendant Anthony Merritt for approximately half the amount of taxes due. Merritt cashed the check and shared the proceeds with Slater, the then-manager of the District of Columbia’s Office of Tax Revenue’s (OTR) Adjustment Unit. In exchange, Slater took actions to falsify records for Jafari and to help Jafari’s company evade collection efforts by other OTR officials.
Merritt pleaded guilty to all charges in the indictment on the first day of trial. On June 7, 2023, a separate jury also convicted Merritt of bribery, conspiracy, and wire fraud for playing a similar role in a different scheme on behalf of businessman Andre De Moya (who was also convicted at trial). Merritt is scheduled to be sentenced in both cases on January 19, 2024. Slater previously pleaded guilty for his role in the Jafari scheme and the De Moya scheme and is awaiting a sentencing date.
“Today’s verdict, and the investigation that preceded it, demonstrate the U.S. Attorney’s Office’s unwavering commitment to prosecuting and holding accountable individuals who seek to corrupt our local government agencies by bribing the public officials who work within them,” said U.S. Attorney Matthew M. Graves. “The defendants in these cases entered multiyear conspiracies to defraud the District of Columbia and its citizens. We will continue our tireless efforts to confront and eradicate such acts of corruption.”
“Today’s guilty verdict is a positive step toward bringing Mr. Jafari and his co-conspirators to justice for their scheme to defraud the government and taxpayers of the District of Columbia,” said FBI Special Agent in Charge Jacobs. “The FBI will continue to work aggressively with our partners to enforce public corruption laws.”
The statutory maximum sentence for conspiracy is five years in prison; for bribery, is 15 years in prison; and for wire fraud, is 20 years in prison. U.S. District Judge Reggie B. Walton will determine the appropriate sentence based on the guideline range and other factors.
In announcing the verdict, U.S. Attorney Graves commended the work of the agencies who investigated the case, including the FBI’s Washington Field Office and the District of Columbia Office of the Inspector General, with substantial assistance by the District of Columbia Office of the Chief Financial Officer, Office of Integrity and Oversight. He also expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Liliana Villamizar Michon Tart, Amanda Rhode, and Mariela Andrade, and former paralegal specialist Aisha Keys.
Finally, he acknowledged the work of Assistant United States Attorneys Emily Miller and Timothy Visser, who prosecuted the case at trial, and Assistant United States Attorneys Emily Miller and Molly Gaston, who investigated the case.
Detroit, MI, Man Sentenced to 15 Years in Federal Prison for His Leadership Role in a Drug Trafficking Organization Targeting two of North Dakota’s Native American ReservationsRead the Press Release
FARGO – United States Attorney Mac Schneider announced that Devonsha Dabney a/k/a Kemell, age 29, of Detroit, Michigan, appeared before Chief Judge Peter D. Welte, U.S. District Court, Fargo, ND, on October 10, 2023, for his leadership in a drug trafficking organization targeting two of North Dakota’s Native American Reservations. Dabney pled guilty to Continuing Criminal Enterprise and admitted to forfeiture allegations involving US Currency, jewelry, and more. Dabney was sentenced to 180 months in federal prison, 4 years of supervised release, and $100 special assessment.
This case is part of “Operation Letter to Reub,” an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the multi-state trafficking of oxycodone and fentanyl laced pills. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A multi-agency investigation led by the Bureau of Indian Affairs Division of Drug Enforcement revealed that Dabney and his co-conspirators targeted areas with fewer law enforcement resources where they could distribute controlled substances at a premium price. Dabney and his coconspirators used local residences and people for distribution and stash houses to further their criminal activities for monetary gain. In total, forty-one defendants were charged in the case including members of 5674 Reub Gang, IUR (Iced Up Records), and CCL (Chicken Chaser Loyalty).
Law enforcement learned of a drug trafficking organization affiliated with the 5674 Reub Gang, a violent street gang operating out of Michigan, which was involved in transporting thousands of oxycodone/fentanyl pills to North Dakota for distribution, in Bismarck, ND, Minot, ND, Fort Berthold Indian Reservation and Spirit Lake Indian Reservation. As part of this organization, in approximately 2015, Reuben Rambus began trafficking oxycodone pills from Detroit, MI, to North Dakota. After he died, his brother, Romel Rambus, took over operations and worked with the Devonsha Dabney, to distribute narcotics in North Dakota. Multiple individuals identified Devonsha as the leader of the pill operations in North Dakota beginning in approximately 2017. He recruited individuals from the Detroit, MI, area, as well as local users, to distribute pills for him and oversaw their activities.
Pill supplier turned trafficker, Jonathan B. Walker, a/k/a Jay, was sentenced on October 2, 2023, to 180 months incarceration, 5 years of supervised release, and $500 in special assessment fees. Walker pled guilty to various drug trafficking offenses including Continuing Criminal Enterprise. Jonathan Walker entered the drug trafficking organization initially as a supplier of opiate pills to Dabney and others but began trafficking pills in North Dakota himself after concerns of money coming up short. Walker collaborated with others and had several individuals working under his direction. These individuals would transport shipments of pills utilizing rental vehicles to assist in the distribution and sales of pills in North Dakota and other states, as well as collect drug proceeds that were returned to Walker.
“Drug traffickers who think Indian country is a soft target because of a perceived lack of law enforcement resources ought to think again,” Schneider said. “This sentence shows that if you prey on tribal communities, you will be doggedly pursued by federal, state, local, and tribal law enforcement and you will face justice as a defendant in federal court. The success in this case is a product of the determination of our career prosecutors and the cooperative, multi-agency approach taken by our law enforcement partners.”
"We are grateful to the US Department of Justice and all other agencies. This includes our own MHA Division of Drug Enforcement, who also played a role in this investigation leading to the arrests of these individuals,” said Chairman Mark N. Fox, Mandan, Hidatsa and Arikara Nation, Fort Berthold, ND. “We will continue to fight against illegal drug traffickers that are entering our boundaries and are extremely dangerous to our people."
“Today as tribal and state citizens of North Dakota, we at Spirit Lake Tribe are grateful for the determined work by all agencies to combat the dangers of drug trafficking and abuse in our communities,” said Chairwoman Lona J. Street, Spirit Lake Nation, Fort Totten, ND. “This is a result of excellent teamwork displayed by all local, state, and federal agencies.”
“Devonsha Dabney thought he could come out unscathed while plaguing our streets with poison,” said James Deir, Special Agent in Charge of the ATF’s Detroit Division. “This multi-state collaborative effort with the U.S. Attorney’s Office, our federal, tribal and local partners in North Dakota resulted in Mr. Dabney finding out about accountability.”
This case was investigated by the Bureau of Indian Affairs Division of Drug Enforcement, the Bureau of Alcohol Tobacco Firearms and Explosives (Detroit), the Drug Enforcement Administration, Ward County Narcotics Task Force, Metro Area Narcotics Task Force, Mandan Hidatsa Arikara Division of Drug Enforcement, North Dakota Bureau of Criminal Investigation, North Dakota Crime Laboratory, and Minot Police Department.
The case was prosecuted by the United States Attorney’s Office, with Assistant United States Attorneys Dawn Deitz and Alex Stock assigned with the assistance of lead investigator Bureau of Indian Affairs Division of Drug Enforcement Special Agent Isaiah Soldier.
Delray Beach convicted felon pleads guilty to discharging firearm in Allapattah Flats Wildlife Management AreaRead the Press Release
MIAMI – On Oct. 4, a man pleaded guilty to possession of a firearm by a convicted felon after discharging a firearm in the Allapattah Flats Wildlife Management Area in Martin County, Florida.
Dominic Elvir, 26, of Delray Beach, discharged a Glock, model 19, 9mm pistol into the air in the Allapattah Flats Wildlife Management Area. Law enforcement agents located a video of Elvir on a social media platform discharging the firearm. In 2019, Elvir was previously convicted of burglary and grand theft.
Sentencing is scheduled for Dec. 21, before United States District Court Judge Aileen M. Cannon. Elvir faces up to 10 years in federal prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office; and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami Field Office, announced the guilty plea.
ATF Fort Pierce Field Office and HSI Fort Pierce Office investigated the case. Assistant U.S. Attorney Christopher Hudock is prosecuting it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-14058.
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DC Solar Attorney Indicted in the DC Solar Billion Dollar Ponzi SchemeRead the Press Release
SACRAMENTO, Calif. — On Oct. 5, 2023, a federal grand jury returned a 23‑count indictment against Ari J. Lauer, 59, of Lafayette, charging him with conspiracy to commit wire and bank fraud, bank fraud, and wire fraud affecting a financial institution, for his role in the biggest criminal fraud scheme in the history of the Eastern District of California, U.S. Attorney Phillip A. Talbert announced.
Lauer is an attorney licensed to practice law in California, and from approximately 2009 to January 2019, he was outside counsel to DC Solar and provided legal and business advice concerning DC Solar’s operations. The indictment was unsealed today following Lauer’s arrest.
According to court documents, between 2011 and 2018, DC Solar manufactured mobile solar generators that were mounted on trailers. The company touted the versatility and environmental sustainability of the generators and claimed that they were used to provide emergency power to cellphone towers and lighting at sporting and other events. A significant incentive for investors were generous federal tax credits due to the solar nature of the generators. Jeff Carpoff, 52, Paulette Carpoff, 49, both of Martinez, and their co-conspirators solicited investors to invest in the generators in large multimillion-dollar transactions using a variety of fraudulent techniques.
A key part of the fraud was that investors would never actually take possession of the generators. Instead, DC Solar typically leased those generators back from the investors, and claimed to sublease them to third parties to generate revenue. In reality there was very little actual third-party rental demand for the generators, yet when Lauer and the other co-conspirators learned this, they continued to represent falsely to investors that the rental market for the generators was robust.
In June 2012, Lauer, Jeff Carpoff, and others met to discuss the failure to generate third-party lease revenue sufficient to meet their financial obligations to the investors. The conspirators agreed to conceal that lack of third-party lease revenue from current and prospective investors, by, among other things, making periodic transfers of investor money from one account to another while misrepresenting the flow of funds as third-party lease revenue. Lauer and other members of the conspiracy created a circular payment system they referred to as “re-rent.” In 2014, they created a “re-rent agreement,” backdating the document to 2011, and used it to explain the large sums of money being transferred from one account to another. In fact, the real source of money was new investor money, which was being used to pay obligations to existing investors. The indictment further alleges that Lauer and other members of the conspiracy prepared sublease agreements with “concealed addendums” that materially altered the terms of the contracts. They used the sublease agreements to defraud investors.
Between March 2011 and Dec. 18, 2018, investors collectively invested approximately $759,400,000 and several financial institutions and other investors transferred collectively $152,700,000 to DC Solar as part of related transactions for the purchase and lease of generators. In total, DC Solar closed transactions with investors that contributed an aggregate of more than $912 million to purchase generators. Those transactions purportedly involved approximately 17,000 generators, at approximately $2.5 billion in purported value.
During the conspiracy, approximately 94% to 95% of the supposed lease revenue on the books was actually intercompany transfers disguised as new investor money. In truth, third-party end-user demand for generators never exceeded 5% of the revenue that was claimed.
This case is the product of an investigation by the Federal Bureau of Investigation, IRS Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General. Assistant U.S. Attorney Audrey Hemesath is prosecuting the case.
On Nov. 9, 2021, Jeff Carpoff was sentenced to 30 years in prison and ordered to pay $790,600,000 in restitution for conspiracy to commit wire fraud and money laundering. His wife Paulette Carpoff pleaded guilty to conspiracy to commit an offense against the United States and money laundering. She was sentenced on June 28, 2022, to 11 years and three months in prison.
On Nov. 16, 2021, Joseph W. Bayliss, 48, of Martinez, was sentenced to three years in prison and ordered to pay $481,300,000 in restitution for securities fraud and conspiracy in connection with the DC Solar scheme. On April 12, 2022, DC Solar CFO Robert A. Karmann, 57, of Clayton, was sentenced to six years in prison and ordered to pay $624 million. On May 31, 2022, Alan Hansen was sentenced to eight years in prison for conspiracy to commit an offense against the United States and aiding and abetting money laundering. Ryan Guidry, 48, of Pleasant Hill, was sentenced on Jan. 31, 2023, to six years and six months in prison and ordered to pay $619,415,950 in restitution for to conspiracy to commit an offense against the United States and aiding and abetting money laundering.
Ronald J. Roach, 55, of Walnut Creek, pleaded guilty to criminal offenses related to the fraud scheme and is scheduled to be sentenced on Nov. 14, 2023. Roach faces a maximum statutory penalty of 10 years prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
lauer_indictment.pdf