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Newest first across public DOJ and U.S. Attorney press releases.
3 October 2023
Kanawha County Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Trellae Nellum-Toney, 29, of St. Albans, was sentenced today to four years and six months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on September 22, 2022, law enforcement officers conducted a traffic stop of a vehicle driven by Nellum-Toney in St. Albans. Nellum-Toney admitted that he got out of his vehicle and threw a Raven Arms model P-25 .25-caliber semi-automatic pistol and a baggie of suspected heroin to the ground. Officers recovered the firearm and controlled substance.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Nellum-Toney knew he was prohibited from possessing a firearm because of his prior felony conviction for first-degree robbery in Kanawha County Circuit Court on August 26, 2014.
Nellum-Toney also admitted that he possessed two firearms in a vehicle he was driving on January 24, 2023. Officers conducted a traffic stop of the vehicle in the Scott Depot area in Putnam County and found a Taurus model 709 Slim 9mm semi-automatic pistol under the driver’s seat and a Savage model Stevens 320 20-gauge shotgun in the vehicle’s trunk. Nellum-Toney admitted that he now knows the 9mm pistol was reported stolen from a St. Albans residence on September 26, 2021.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Kanawha County Sheriff’s Office, and the Putnam County Sheriff’s Office.
Senior United States District Judge David A. Faber 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. 2:23-cr-34.
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Justice Department to Monitor Compliance with Federal Voting Rights Laws in Alaska JurisdictionsRead the Press Release
The Justice Department announced today that it will monitor the election on Oct. 3 in certain jurisdictions in the state of Alaska to ensure compliance with the minority language accessibility requirements of the Voting Rights Act of 1965. On election day, the Civil Rights Division will be monitoring in the following jurisdictions: Dillingham Census Area, Kusilvak Census Area and North Slope Borough, Alaska.
The division regularly deploys its staff to monitor for compliance with the federal civil rights laws in elections in communities all across the country. In addition, the division also deploys monitors from the Office of Personnel Management, where authorized by federal court order.
Individuals can file complaints related to possible violations of the federal voting rights laws by a complaint form on the department’s website civilrights.justice.gov/ or by telephone toll-free at 800-253-3931. In addition, individuals may also report complaints by email to [email protected].
Visit www.justice.gov/crt/voting-section for more information about the Voting Rights Act and other federal voting rights laws.
Justice Department Announces Eight Indictments Against China-Based Chemical Manufacturing Companies and EmployeesRead the Press Release
The Justice Department today announced the unsealing of eight indictments in the Middle and Southern Districts of Florida charging China-based companies and their employees with crimes relating to fentanyl and methamphetamine production, distribution of synthetic opioids, and sales resulting from precursor chemicals.
The indictments build on prosecutions announced in June and mark the second set of prosecutions to charge China-based chemical manufacturing companies and nationals of the People’s Republic of China (PRC) for trafficking fentanyl precursor chemicals into the United States.
The indictments complement actions taken today by the Department of the Treasury’s Office of Foreign Assets Control (OFAC) to designate 28 individuals and entities involved with the international proliferation of illicit drugs.
“We know that the global fentanyl supply chain, which ends with the deaths of Americans, often starts with chemical companies in China,” said Attorney General Merrick B. Garland. “The United States government is focused on breaking apart every link in that chain, getting fentanyl out of our communities, and bringing those who put it there to justice.”
“The international dimension to the deadly scourge of fentanyl requires the all-of-government response that we are delivering today,” said Secretary of Homeland Security Alejandro Mayorkas. “Through the dedication and investigative abilities of agents and officers from HSI, CBP, and our federal partners, we are bringing accountability to ruthless organizations and individuals resident in the People’s Republic of China and to the cartel members that seek to profit from the death and destruction that fentanyl causes.”
“The charges announced today are another down payment on the Justice Department’s pledge to every American family that has lost a loved one to fentanyl poisoning,” said Deputy Attorney General Lisa O. Monaco. “Just as we did in the fight against terrorists and cybercriminals, we are deploying a whole-of-government approach – sharing intelligence, combining resources, and relentlessly pursuing justice – to attack the global supply chain fueling the fentanyl crisis. We will not rest until we have rid our communities of this poison.”
“Fentanyl is the deadliest drug threat our nation has ever faced. These eight cases are the result of DEA’s efforts to attack the fentanyl supply chain where it starts — in China. Chinese chemical companies are fueling the fentanyl crisis in the United States by sending fentanyl precursors, fentanyl analogues, xylazine, and nitazenes into our country and into Mexico. These chemicals are used to make fentanyl and make it especially deadly,” said Drug Enforcement Administration (DEA) Administrator Anne Milgram. “DEA will not stop until we defeat this threat. We are grateful to our law enforcement partners whose collaboration and dedication have made these actions possible. I am also deeply grateful for the incredible work by the DEA Miami Field Division. Their pursuit of these organizations demonstrates the drive and determination of the men and women, who are working as one DEA, to defeat the cartels and their entire global supply chain.”
“This investigation of a narcotics trafficker utilizing counterfeit postage labels highlights the unique jurisdiction of the Postal Inspection Service,” said Chief Postal Inspector Gary R. Barksdale of the U.S. Postal Inspection Service (USPIS). “This indictment is a win in our battle against counterfeit postage and those seeking to use the nation’s mail system to distribute dangerous substances.”
The DEA led the investigations brought in both districts and used its unique authority to specially schedule protonitazene and metonitazene as Schedule I controlled substances, which was necessary as their adverse health effects, including death, pose an imminent threat to public safety. As a result of that order, the regulatory controls and administrative, civil, and criminal sanctions applicable to Schedule I controlled substances can be imposed on persons who handle or propose to handle these substances. In addition, Homeland Security Investigations (HSI) and U.S. Customs and Border Protection (CBP) seized more than 1,000 kilograms of fentanyl-related precursor chemicals, and the USPIS also traced packages containing the precursor chemicals mailed through the U.S. mail and analyzed their contents after seizure.
Fentanyl is the deadliest drug threat facing the United States. Not only is fentanyl 50 times more potent than heroin and 100 times more potent than morphine, a dose of as little as two milligrams can kill a grown adult. Fentanyl analogues are similar in chemical structure and effects as fentanyl. Fentanyl is the leading cause of death for Americans ages 18 to 49. From February 2022 to January, at least 105,263 Americans died of drug overdoses, the majority of which involved synthetic opioids such as fentanyl and fentanyl analogues.
Protonitazene and metonitazene are synthetic opioids that were emergency listed as Schedule I controlled substances in April 2022. There are no approved medical uses for protonitazene and metonitazene in the United States, or anywhere else in the world. Drug traffickers typically mix protonitazene and metonitazene with other opioids, such as fentanyl, to create new and more powerful cocktails of dangerous opioids. Methamphetamine overdose deaths are also surging in the United States. Methamphetamine is becoming more deadly because it is more frequently being mixed with highly potent fentanyl. There are currently no FDA-approved medications for treating methamphetamine use disorder or reversing overdoses. Drug overdose deaths involving psychostimulants, primarily methamphetamine, rose from 547 deaths in 1999 to 32,537 deaths in 2021.
The manufacture of fentanyl and methamphetamine begins with raw chemicals, known as precursors. Fentanyl and methamphetamine precursors, opioid additives, and synthetic opioids are manufactured and distributed by China-based chemical companies, many of which openly advertise on the internet. These China-based manufacturers ship fentanyl and methamphetamine precursors, opioid additives, and synthetic opioids around the world, including to the United States and Mexico, where drug cartels and traffickers combine the chemicals and then distribute fentanyl and methamphetamines throughout the United States to individual users.
These China-based chemical companies often attempt to evade law enforcement by using re-shippers in the United States, false return labels, false invoices, fraudulent postage, and packaging that conceals the true contents of the parcels and the identity of the distributors. In addition, these companies tend to use cryptocurrency transactions to conceal their identities and the location and movement of their funds.
The primary distributors of fentanyl and fentanyl analogues in North America are the Sinaloa Cartel based in Sinaloa, Mexico, and the Cartel Jalisco Nueva Generación based in Jalisco, Mexico. These two transnational criminal organizations have significant presences throughout Mexico, maintain distribution hubs in various cities across the United States, and control smuggling corridors into the United States.
Organizations such as the Sinaloa Cartel and Cartel Jalisco Nueva Generación receive fentanyl precursors from China that are then synthesized within clandestine laboratories into finished fentanyl at scale. China-based precursor chemical manufacturers ship precursors from mainland China by, among other methods, mislabeling the products being shipped and using containers and other packaging to mask their illicit contents.
Middle District of Florida
Five indictments were unsealed in the Middle District of Florida charging five Chinese corporations and eight Chinese nationals with the illegal importation of fentanyl and fentanyl-related chemicals into the United States.
According to the indictments, the defendants openly advertised their ability to thwart U.S. customs and deliver the chemicals used to make fentanyl to the Middle District of Florida and elsewhere in the United States. The defendants used fake shipping labels and special delivery procedures to ensure the illicit chemicals went undetected. The defendants played various roles, such as coordinators and suppliers, and eight defendants are also charged with international money laundering. According to the indictments, the Chinese companies demonstrated past success delivering a stable supply of product to clients in Mexico for years.
“The protection of our country from the deadly scourge of fentanyl is a key priority of the Department of Justice and my office,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We will continue to pursue cases against Chinese chemical companies who are knowingly manufacturing and exporting fentanyl precursors to profit on the pain and suffering of people in the United States. We thank our partners at the Drug Enforcement Administration for their tireless efforts in support of these prosecutions.”
Hebei Shenghao Import and Export Company, based in Shijiazhuang, Hebei Province, China, is charged with fentanyl trafficking conspiracy, along with Chinese nationals Qingshun Li, 29, who allegedly negotiates the sale of precursor chemicals and maintains a bank account for the receipt of payments; Qingsong Li, 32; and Chunhui Chen, 33, both of whom allegedly maintain cryptocurrency wallets for the remittance of payments of precursor chemicals; Chunzhou Chen, 30, who allegedly received Western Union payments on behalf of Hebei Shenghao.
Lihe Pharmaceutical Technology Company, based in Wuhan, Hebei Province, China, was charged with fentanyl trafficking conspiracy and international money laundering, along with Chinese nationals Mingming Wang, 34, who is the alleged holder for three bitcoin accounts shared by sales agents for Lihe Pharmaceutical, and Xinqiang Lu, 40, the alleged recipient of funds via Western Union on the company’s behalf.
Henan Ruijiu Biotechnology Company, based in Zhengzhou, Henan Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering, along with Chinese national Yongle Gao, 30, who is the alleged registered owner of the bitcoin wallet associated with Henan Ruijiu.
Xiamen Wonderful Biotechnology Company, based in Xiamen, Fujian Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering, along with Chinese national Guo Liang, 34, the alleged registered owner of the bitcoin wallet associated with Xiamen Wonderful.
Anhui Ruihan Technology Company, based in Hefei, Anhui Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering.
DEA investigated these cases.
Assistant U.S. Attorney Daniel Baeza and Special Assistant U.S. Attorney Michael Leath for the Middle District of Florida are prosecuting the cases.
Southern District of Florida
Three indictments were unsealed in the Southern District of Florida charging three Chinese companies and four officers and employees with fentanyl trafficking, synthetic opioid trafficking, precursor chemical importation, defrauding the U.S. Postal Service, and making and using counterfeit postage.
“Targeting those who fuel the opioid epidemic, regardless of who they are and where they are operating from, is one of our district’s top priorities,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Today, we announced charges against the Chinese companies and employees that manufacture and introduce the raw chemicals at the start of the fentanyl and methamphetamine supply chain. This is only the beginning of our fight. The precursors and synthetic opioids that are being marketed, sold, and shipped to the United States and Mexico are being mixed and re-distributed into our local communities as powerful and potentially deadly cocktails of controlled substances. We commend our partner agencies for their skill and resourcefulness, as we work collectively to prosecute the sources of the poison and protect the public.”
Hanhong Medicine Technology Company, a pharmaceutical company located in Wuhan, Hubei Province, China, was charged in a four-count indictment, along with Chinese nationals Changgen Du, 30, and Xuebi Gan, 28. According to the indictment, Hanhong has exported large quantities of fentanyl precursors and non-opioid additives, like xylazine, to the United States and Mexico, including to a drug trafficker in Pennsylvania and to a drug trafficker in the Sinaloa cartel for the manufacture of fentanyl in Mexico for eventual distribution in the United States. Xylazine is often mixed with fentanyl to increase the effects of the drug for users. Xylazine is a non-opioid drug approved for veterinary use for purposes of sedation, anesthesia, muscle relaxation, and pain relief in horses, cattle, and other animals. It is not approved for human use. Many opioid users are unaware they are taking xylazine. Overdose deaths involving xylazine have steadily increased year over year. Drug users who inject xylazine, or drug mixtures containing xylazine, often develop necrotic tissue resulting in disfiguring wounds or amputation.
The Du Transnational Criminal Organization is listed on the United States Attorney General’s Consolidated Priority Organization Target (CPOT) list. The CPOT list identifies the most significant transnational criminal organizations presenting a priority threat to the United States, including those international drug and money laundering organizations affecting the illicit drug supply of the United States. The CPOT list identifies those criminal organizations by the name(s) of their leaders. Du, as the criminal organization’s leader, is the director of Hanhong and allegedly negotiates sales with customers. Gan is an alleged sales representative. Du and Gan each operated a crypocurrency wallet that accepted payment for Hanhong’s sales. The four-count indictment charges Hanhong, Du, and Gan with conspiracy to manufacture and distribute fentanyl; conspiracy to manufacture and distribute a fentanyl precursor with intent to unlawfully import it into the U.S.; manufacturing and distributing a fentanyl precursor with intent to unlawfully import it into the U.S.; and conspiracy to commit money laundering.
Jiangsu Bangdeya New Material Technology Company, a pharmaceutical company located in Jiangsu, China, was charged in an eight-count indictment, along with Jiantong Wang, 40, a Chinese national and alleged owner and operator of Bangdeya. The indictment alleges that Bangdeya advertises openly online as an export company for chemicals, including synthetic opioids protonitazene and metonitazene. The introduction of these synthetic opioids into the illicit drug market threatens to exacerbate the overdose problem in the United States. Drug traffickers typically mix protonitazene and metonitazene with other opioids, such as fentanyl, to create new and more powerful cocktails of dangerous opioids. Bengdeya has imported large quantities of these synthetic opioids into the U.S., including to a drug trafficker in the Southern District of Florida.
Bangdeya and Wang were charged with conspiracy to import protonitazene and metonitazene; conspiracy to distribute protonitazene and metonitazene; multiple counts of distribution of protonitazene; conspiracy to defraud the United States and make and use forged and counterfeited postage; and making and printing unauthorized postage meter stamps.
Hubei Guanlang Biotechnology Company, a chemical company located in Shijaizhuang, Hebei Province, China, was charged in a two-count indictment, along with Chinese national Wei Zhang, 28, who allegedly runs the day-to-day operations of the company and operates a cryptocurrency wallet that accepts payment for the company’s sales of fentanyl precursors and opioid additives.
According to the indictment, Guanlang openly advertises online and sells an array of chemicals, including methamphetamine precursors like methylamine HCL, to customers in the United States and Mexico. Methylamine HCL is an essential precursor chemical that Mexican cartels use to manufacture highly pure and potent methamphetamine. Currently, most of the methamphetamine supply in the United States is produced by drug trafficking cartels in Mexico.
Guanlang and Zhang are charged with conspiracy to manufacture and distribute a methamphetamine precursor and unlawfully import into the U.S. and conspiracy to unlawfully import a methamphetamine precursor into the U.S. with the intent to manufacture methamphetamine; and the manufacture and distribution of a methamphetamine precursor that was unlawfully imported into the United States.
The DEA Miami Field Division, HSI Miami, USPIS-Miami, IRS-CI Miami, and FBI Miami Field Office investigated these cases.
Assistant U.S. Attorney Monique Botero and Jon Juenger for the Southern District of Florida are prosecuting the cases. Assistant U.S. Attorney Michell Hyman for the Southern District of Florida is handling asset forfeiture.
The U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) provided assistance with the indictments brought in both districts.
The indictments are a result of Organized Crime Drug Enforcement Task Forces (OCDETF) investigations. The OCDETF mission is to identify, disrupt, and dismantle the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency task force approach. OCDETF synchronizes and incentivizes prosecutors and agents to lead smart, creative investigations targeting the command-and-control networks of organized criminal groups and the illicit financiers that support them. Additional information about the OCDETF Program may be found at www.justice.gov/OCDETF.
Members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force carried out this case and prosecution. HIDTA was established in 1990. This program, which is made up of federal, state, and local law enforcement agencies, fosters intra-agency cooperation among law enforcement agencies in South Florida and involves them in developing a strategy to target the region's drug-related and violent crime threats to public safety, as with the opioid epidemic, fentanyl, and the cocaine threat to our nation. The South Florida HIDTA uses the funding provided by the Office of National Drug Control Policy, out of the Executive Office of the President of the United States, that sponsors a variety of law enforcement initiatives that target the region's illicit drug and violent crime threats to our community.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
hebei_redacted_indictment_03oct2023_003_redacted.pdf mdfl_anhui_redacted_indictment_03oct2023.pdf mdfl_henan_redacted_indictment_03oct2023.pdf mdfl_lihe_redacted_indictment_03oct2023.pdf mdfl_xiamen_redacted_indictment_03oct2023.pdf sdfl_bangdeya_indictment_03oct2023.pdf sdfl_hanhong_indictment_03oct2023.pdf sdfl_hubei_guanlang_indictment_03oct2023.pdfJustice Department Announces Eight Indictments Against China-Based Chemical Manufacturing Companies and EmployeesRead the Press Release
WASHINGTON – The Justice Department today announced the unsealing of eight indictments in the Middle and Southern Districts of Florida charging China-based companies and their employees with crimes relating to fentanyl and methamphetamine production, distribution of synthetic opioids, and sales resulting from precursor chemicals.
The indictments build on prosecutions announced in June and mark the second set of prosecutions to charge China-based chemical manufacturing companies and nationals of the People’s Republic of China (PRC) for trafficking fentanyl precursor chemicals into the United States.
The indictments complement actions taken today by the Department of the Treasury’s Office of Foreign Assets Control (OFAC) to designate 28 individuals and entities involved with the international proliferation of illicit drugs.
“We know that the global fentanyl supply chain, which ends with the deaths of Americans, often starts with chemical companies in China,” said Attorney General Merrick B. Garland. “The United States government is focused on breaking apart every link in that chain, getting fentanyl out of our communities, and bringing those who put it there to justice.”
“The international dimension to the deadly scourge of fentanyl requires the all-of-government response that we are delivering today,” said Secretary of Homeland Security Alejandro Mayorkas. “Through the dedication and investigative abilities of agents and officers from HSI, CBP, and our federal partners, we are bringing accountability to ruthless organizations and individuals resident in the People’s Republic of China and to the cartel members that seek to profit from the death and destruction that fentanyl causes.”
“The charges announced today are another down payment on the Justice Department’s pledge to every American family that has lost a loved one to fentanyl poisoning,” said Deputy Attorney General Lisa O. Monaco. “Just as we did in the fight against terrorists and cybercriminals, we are deploying a whole-of-government approach – sharing intelligence, combining resources, and relentlessly pursuing justice – to attack the global supply chain fueling the fentanyl crisis. We will not rest until we have rid our communities of this poison.”
“Fentanyl is the deadliest drug threat our nation has ever faced. These eight cases are the result of DEA’s efforts to attack the fentanyl supply chain where it starts — in China. Chinese chemical companies are fueling the fentanyl crisis in the United States by sending fentanyl precursors, fentanyl analogues, xylazine, and nitazenes into our country and into Mexico. These chemicals are used to make fentanyl and make it especially deadly,” said Drug Enforcement Administration (DEA) Administrator Anne Milgram. “DEA will not stop until we defeat this threat. We are grateful to our law enforcement partners whose collaboration and dedication have made these actions possible. I am also deeply grateful for the incredible work by the DEA Miami Field Division. Their pursuit of these organizations demonstrates the drive and determination of the men and women, who are working as one DEA, to defeat the cartels and their entire global supply chain.”
“This investigation of a narcotics trafficker utilizing counterfeit postage labels highlights the unique jurisdiction of the Postal Inspection Service,” said Chief Postal Inspector Gary R. Barksdale of the U.S. Postal Inspection Service (USPIS). “This indictment is a win in our battle against counterfeit postage and those seeking to use the nation’s mail system to distribute dangerous substances.”
The DEA led the investigations brought in both districts and used its unique authority to specially schedule protonitazene and metonitazene as Schedule I controlled substances, which was necessary as their adverse health effects, including death, pose an imminent threat to public safety. As a result of that order, the regulatory controls and administrative, civil, and criminal sanctions applicable to Schedule I controlled substances can be imposed on persons who handle or propose to handle these substances. In addition, Homeland Security Investigations (HSI) and U.S. Customs and Border Protection (CBP) seized more than 1,000 kilograms of fentanyl-related precursor chemicals, and the USPIS also traced packages containing the precursor chemicals mailed through the U.S. mail and analyzed their contents after seizure.
Fentanyl is the deadliest drug threat facing the United States. Not only is fentanyl 50 times more potent than heroin and 100 times more potent than morphine, a dose of as little as two milligrams can kill a grown adult. Fentanyl analogues are similar in chemical structure and effects as fentanyl. Fentanyl is the leading cause of death for Americans ages 18 to 49. From February 2022 to January, at least 105,263 Americans died of drug overdoses, the majority of which involved synthetic opioids such as fentanyl and fentanyl analogues.
Protonitazene and metonitazene are synthetic opioids that were emergency listed as Schedule I controlled substances in April 2022. There are no approved medical uses for protonitazene and metonitazene in the United States, or anywhere else in the world. Drug traffickers typically mix protonitazene and metonitazene with other opioids, such as fentanyl, to create new and more powerful cocktails of dangerous opioids. Methamphetamine overdose deaths are also surging in the United States. Methamphetamine is becoming more deadly because it is more frequently being mixed with highly potent fentanyl. There are currently no FDA-approved medications for treating methamphetamine use disorder or reversing overdoses. Drug overdose deaths involving psychostimulants, primarily methamphetamine, rose from 547 deaths in 1999 to 32,537 deaths in 2021.
The manufacture of fentanyl and methamphetamine begins with raw chemicals, known as precursors. Fentanyl and methamphetamine precursors, opioid additives, and synthetic opioids are manufactured and distributed by China-based chemical companies, many of which openly advertise on the internet. These China-based manufacturers ship fentanyl and methamphetamine precursors, opioid additives, and synthetic opioids around the world, including to the United States and Mexico, where drug cartels and traffickers combine the chemicals and then distribute fentanyl and methamphetamines throughout the United States to individual users.
These China-based chemical companies often attempt to evade law enforcement by using re-shippers in the United States, false return labels, false invoices, fraudulent postage, and packaging that conceals the true contents of the parcels and the identity of the distributors. In addition, these companies tend to use cryptocurrency transactions to conceal their identities and the location and movement of their funds.
The primary distributors of fentanyl and fentanyl analogues in North America are the Sinaloa Cartel based in Sinaloa, Mexico, and the Cartel Jalisco Nueva Generación based in Jalisco, Mexico. These two transnational criminal organizations have significant presences throughout Mexico, maintain distribution hubs in various cities across the United States, and control smuggling corridors into the United States.
Organizations such as the Sinaloa Cartel and Cartel Jalisco Nueva Generación receive fentanyl precursors from China that are then synthesized within clandestine laboratories into finished fentanyl at scale. China-based precursor chemical manufacturers ship precursors from mainland China by, among other methods, mislabeling the products being shipped and using containers and other packaging to mask their illicit contents.
Middle District of Florida
Five indictments were unsealed in the Middle District of Florida charging five Chinese corporations and eight Chinese nationals with the illegal importation of fentanyl and fentanyl-related chemicals into the United States.
According to the indictments, the defendants openly advertised their ability to thwart U.S. customs and deliver the chemicals used to make fentanyl to the Middle District of Florida and elsewhere in the United States. The defendants used fake shipping labels and special delivery procedures to ensure the illicit chemicals went undetected. The defendants played various roles, such as coordinators and suppliers, and eight defendants are also charged with international money laundering. According to the indictments, the Chinese companies demonstrated past success delivering a stable supply of product to clients in Mexico for years.
“The protection of our country from the deadly scourge of fentanyl is a key priority of the Department of Justice and my office,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We will continue to pursue cases against Chinese chemical companies who are knowingly manufacturing and exporting fentanyl precursors to profit on the pain and suffering of people in the United States. We thank our partners at the Drug Enforcement Administration for their tireless efforts in support of these prosecutions.”
Hebei Shenghao Import and Export Company, based in Shijiazhuang, Hebei Province, China, is charged with fentanyl trafficking conspiracy, along with Chinese nationals Qingshun Li, 29, who allegedly negotiates the sale of precursor chemicals and maintains a bank account for the receipt of payments; Qingsong Li, 32; and Chunhui Chen, 33, both of whom allegedly maintain cryptocurrency wallets for the remittance of payments of precursor chemicals; Chunzhou Chen, 30, who allegedly received Western Union payments on behalf of Hebei Shenghao.
Lihe Pharmaceutical Technology Company, based in Wuhan, Hebei Province, China, was charged with fentanyl trafficking conspiracy and international money laundering, along with Chinese nationals Mingming Wang, 34, who is the alleged holder for three bitcoin accounts shared by sales agents for Lihe Pharmaceutical, and Xinqiang Lu, 40, the alleged recipient of funds via Western Union on the company’s behalf.
Henan Ruijiu Biotechnology Company, based in Zhengzhou, Henan Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering, along with Chinese national Yongle Gao, 30, who is the alleged registered owner of the bitcoin wallet associated with Henan Ruijiu.
Xiamen Wonderful Biotechnology Company, based in Xiamen, Fujian Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering, along with Chinese national Guo Liang, 34, the alleged registered owner of the bitcoin wallet associated with Xiamen Wonderful.
Anhui Ruihan Technology Company, based in Hefei, Anhui Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering.
DEA investigated these cases.
Assistant U.S. Attorney Daniel Baeza and Special Assistant U.S. Attorney Michael Leath for the Middle District of Florida are prosecuting the cases.
Southern District of Florida
Three indictments were unsealed in the Southern District of Florida charging three Chinese companies and four officers and employees with fentanyl trafficking, synthetic opioid trafficking, precursor chemical importation, defrauding the U.S. Postal Service, and making and using counterfeit postage.
“Targeting those who fuel the opioid epidemic, regardless of who they are and where they are operating from, is one of our district’s top priorities,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Today, we announced charges against the Chinese companies and employees that manufacture and introduce the raw chemicals at the start of the fentanyl and methamphetamine supply chain. This is only the beginning of our fight. The precursors and synthetic opioids that are being marketed, sold, and shipped to the United States and Mexico are being mixed and re-distributed into our local communities as powerful and potentially deadly cocktails of controlled substances. We commend our partner agencies for their skill and resourcefulness, as we work collectively to prosecute the sources of the poison and protect the public.”
Hanhong Medicine Technology Company, a pharmaceutical company located in Wuhan, Hubei Province, China, was charged in a four-count indictment, along with Chinese nationals Changgen Du, 30, and Xuebi Gan, 28. According to the indictment, Hanhong has exported large quantities of fentanyl precursors and non-opioid additives, like xylazine, to the United States and Mexico, including to a drug trafficker in Pennsylvania and to a drug trafficker in the Sinaloa cartel for the manufacture of fentanyl in Mexico for eventual distribution in the United States. Xylazine is often mixed with fentanyl to increase the effects of the drug for users. Xylazine is a non-opioid drug approved for veterinary use for purposes of sedation, anesthesia, muscle relaxation, and pain relief in horses, cattle, and other animals. It is not approved for human use. Many opioid users are unaware they are taking xylazine. Overdose deaths involving xylazine have steadily increased year over year. Drug users who inject xylazine, or drug mixtures containing xylazine, often develop necrotic tissue resulting in disfiguring wounds or amputation.
The Du Transnational Criminal Organization is listed on the United States Attorney General’s Consolidated Priority Organization Target (CPOT) list. The CPOT list identifies the most significant transnational criminal organizations presenting a priority threat to the United States, including those international drug and money laundering organizations affecting the illicit drug supply of the United States. The CPOT list identifies those criminal organizations by the name(s) of their leaders. Du, as the criminal organization’s leader, is the director of Hanhong and allegedly negotiates sales with customers. Gan is an alleged sales representative. Du and Gan each operated a crypocurrency wallet that accepted payment for Hanhong’s sales. The four-count indictment charges Hanhong, Du, and Gan with conspiracy to manufacture and distribute fentanyl; conspiracy to manufacture and distribute a fentanyl precursor with intent to unlawfully import it into the U.S.; manufacturing and distributing a fentanyl precursor with intent to unlawfully import it into the U.S.; and conspiracy to commit money laundering.
Jiangsu Bangdeya New Material Technology Company, a pharmaceutical company located in Jiangsu, China, was charged in an eight-count indictment, along with Jiantong Wang, 40, a Chinese national and alleged owner and operator of Bangdeya. The indictment alleges that Bangdeya advertises openly online as an export company for chemicals, including synthetic opioids protonitazene and metonitazene. The introduction of these synthetic opioids into the illicit drug market threatens to exacerbate the overdose problem in the United States. Drug traffickers typically mix protonitazene and metonitazene with other opioids, such as fentanyl, to create new and more powerful cocktails of dangerous opioids. Bengdeya has imported large quantities of these synthetic opioids into the U.S., including to a drug trafficker in the Southern District of Florida.
Bangdeya and Wang were charged with conspiracy to import protonitazene and metonitazene; conspiracy to distribute protonitazene and metonitazene; multiple counts of distribution of protonitazene; conspiracy to defraud the United States and make and use forged and counterfeited postage; and making and printing unauthorized postage meter stamps.
Hubei Guanlang Biotechnology Company, a chemical company located in Shijaizhuang, Hebei Province, China, was charged in a two-count indictment, along with Chinese national Wei Zhang, 28, who allegedly runs the day-to-day operations of the company and operates a cryptocurrency wallet that accepts payment for the company’s sales of fentanyl precursors and opioid additives.
According to the indictment, Guanlang openly advertises online and sells an array of chemicals, including methamphetamine precursors like methylamine HCL, to customers in the United States and Mexico. Methylamine HCL is an essential precursor chemical that Mexican cartels use to manufacture highly pure and potent methamphetamine. Currently, most of the methamphetamine supply in the United States is produced by drug trafficking cartels in Mexico.
Guanlang and Zhang are charged with conspiracy to manufacture and distribute a methamphetamine precursor and unlawfully import into the U.S. and conspiracy to unlawfully import a methamphetamine precursor into the U.S. with the intent to manufacture methamphetamine; and the manufacture and distribution of a methamphetamine precursor that was unlawfully imported into the United States.
The DEA Miami Field Division, HSI Miami, USPIS-Miami, IRS-CI Miami, and FBI Miami Field Office investigated these cases.
Assistant U.S. Attorney Monique Botero and Jon Juenger for the Southern District of Florida are prosecuting the cases. Assistant U.S. Attorney Michell Hyman for the Southern District of Florida is handling asset forfeiture.
The U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) provided assistance with the indictments brought in both districts.
The indictments are a result of Organized Crime Drug Enforcement Task Forces (OCDETF) investigations. The OCDETF mission is to identify, disrupt, and dismantle the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency task force approach. OCDETF synchronizes and incentivizes prosecutors and agents to lead smart, creative investigations targeting the command-and-control networks of organized criminal groups and the illicit financiers that support them. Additional information about the OCDETF Program may be found at www.justice.gov/OCDETF.
Members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force carried out this case and prosecution. HIDTA was established in 1990. This program, which is made up of federal, state, and local law enforcement agencies, fosters intra-agency cooperation among law enforcement agencies in South Florida and involves them in developing a strategy to target the region's drug-related and violent crime threats to public safety, as with the opioid epidemic, fentanyl, and the cocaine threat to our nation. The South Florida HIDTA uses the funding provided by the Office of National Drug Control Policy, out of the Executive Office of the President of the United States, that sponsors a variety of law enforcement initiatives that target the region's illicit drug and violent crime threats to our community.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
View the Anhui indictment here.
View the Hebei indictment here.
View the Henan indictment here.
View the Lihe indictment here.
View the Xiamen indictment here.
View the Bangdeya indictment here.
View the Hanhong indictment here.
View the Hubei Guanlang indictment here.
Justice Department Announces Eight Indictments Against China-Based Chemical Manufacturing Companies and EmployeesRead the Press Release
MIAMI – The Justice Department today announced the unsealing of eight indictments in the Middle and Southern Districts of Florida charging China-based companies and their employees with crimes relating to fentanyl and methamphetamine production, distribution of synthetic opioids, and sales resulting from precursor chemicals.
The indictments build on prosecutions announced in June 2023 and mark the second set of prosecutions to charge China-based chemical manufacturing companies and nationals of the People’s Republic of China (PRC) for trafficking fentanyl precursor chemicals into the United States.
The indictments complement actions taken today by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) to designate 28 individuals and entities involved with the international proliferation of illicit drugs.
“We know that the global fentanyl supply chain, which ends with the deaths of Americans, often starts with chemical companies in China,” said Attorney General Merrick B. Garland. “The United States government is focused on breaking apart every link in that chain, getting fentanyl out of our communities, and bringing those who put it there to justice.”
“The international dimension to the deadly scourge of fentanyl requires the all-of-government response that we are delivering today,” said Secretary of Homeland Security Alejandro Mayorkas. “Through the dedication and investigative abilities of Agents and Officers from HSI, CBP, and our federal partners, we are bringing accountability to ruthless organizations and individuals resident in the People’s Republic of China and to the cartel members that seek to profit from the death and destruction that fentanyl causes.”
“The charges announced today are another down payment on the Justice Department’s pledge to every American family that has lost a loved one to fentanyl poisoning,” said Deputy Attorney General Lisa O. Monaco. “Just as we did in the fight against terrorists and cybercriminals, we are deploying a whole-of-government approach – sharing intelligence, combining resources, and relentlessly pursuing justice – to attack the global supply chain fueling the fentanyl crisis. We will not rest until we have rid our communities of this poison.”
“Fentanyl is the deadliest drug threat our nation has ever faced. These eight cases are the result of DEA’s efforts to attack the fentanyl supply chain where it starts — in China. Chinese chemical companies are fueling the fentanyl crisis in the United States by sending fentanyl precursors, fentanyl analogues, xylazine, and nitazenes into our country and into Mexico. These chemicals are used to make fentanyl and make it especially deadly,” said DEA Administrator Anne Milgram. “DEA will not stop until we defeat this threat. We are grateful to our law enforcement partners whose collaboration and dedication have made these actions possible. I am also deeply grateful for the incredible work by the DEA Miami Field Division. Their pursuit of these organizations demonstrates the drive and determination of the men and women, who are working as One DEA, to defeat the cartels and their entire global supply chain.”
“This investigation of a narcotics trafficker utilizing counterfeit postage labels highlights the unique jurisdiction of the Postal Inspection Service,” said Chief Postal Inspector Gary R. Barksdale of the U.S. Postal Inspection Service. “This indictment is a win in our battle against counterfeit postage and those seeking to use the nation’s mail system to distribute dangerous substances.”
The Drug Enforcement Administration (DEA) led the investigations brought in both districts and used its unique authority to specially schedule protonitazene and metonitazene as Schedule I controlled substances, which was necessary as their adverse health effects, including death, pose an imminent threat to public safety. As a result of that order, the regulatory controls and administrative, civil, and criminal sanctions applicable to Schedule I controlled substances can be imposed on persons who handle or propose to handle these substances. In addition, Homeland Security Investigations (HSI) and U.S. Customs and Border Protection (CBP) seized more than 1,000 kilograms of fentanyl-related precursor chemicals, and the U.S. Postal Inspection Service also traced packages containing the precursor chemicals mailed through the U.S. mail and analyzed their contents after seizure.
Fentanyl is the deadliest drug threat facing the United States. Not only is fentanyl 50 times more potent than heroin and 100 times more potent than morphine, a dose of as little as two milligrams can kill a grown adult. Fentanyl analogues are similar in chemical structure and effects as fentanyl. Fentanyl is the leading cause of death for Americans ages 18 to 49. From February 2022 to January 2023, at least 105,263 Americans died of drug overdoses, the majority of which involved synthetic opioids such as fentanyl and fentanyl analogues.
Protonitazene and metonitazene are synthetic opioids that were emergency listed as Schedule I controlled substances in April 2022. There are no approved medical uses for protonitazene and metonitazene in the United States, or anywhere else in the world. Drug traffickers typically mix protonitazene and metonitazene with other opioids, such as fentanyl, to create new and more powerful cocktails of dangerous opioids. Methamphetamine overdose deaths are also surging in the United States. Methamphetamine is becoming more deadly because it is more frequently being mixed with highly potent fentanyl. There are currently no FDA-approved medications for treating methamphetamine use disorder or reversing overdoses. Drug overdose deaths involving psychostimulants, primarily methamphetamine, rose from 547 deaths in 1999 to 32,537 deaths in 2021.
The manufacture of fentanyl and methamphetamine begins with raw chemicals, known as precursors. Fentanyl and methamphetamine precursors, opioid additives, and synthetic opioids are manufactured and distributed by China-based chemical companies, many of which openly advertise on the internet. These China-based manufacturers ship fentanyl and methamphetamine precursors, opioid additives, and synthetic opioids around the world, including to the United States and Mexico, where drug cartels and traffickers combine the chemicals and then distribute fentanyl and methamphetamines throughout the United States to individual users.
These China-based chemical companies often attempt to evade law enforcement by using re-shippers in the United States, false return labels, false invoices, fraudulent postage, and packaging that conceals the true contents of the parcels and the identity of the distributors. In addition, these companies tend to use cryptocurrency transactions to conceal their identities and the location and movement of their funds.
The primary distributors of fentanyl and fentanyl analogues in North America are the Sinaloa Cartel based in Sinaloa, Mexico, and the Cartel Jalisco Nueva Generación based in Jalisco, Mexico. These two transnational criminal organizations have significant presences throughout Mexico, maintain distribution hubs in various cities across the United States, and control smuggling corridors into the United States.
Organizations such as the Sinaloa Cartel and Cartel Jalisco Nueva Generación receive fentanyl precursors from China that are then synthesized within clandestine laboratories into finished fentanyl at scale. China-based precursor chemical manufacturers ship precursors from mainland China by, among other methods, mislabeling the products being shipped and using containers and other packaging to mask their illicit contents.
Southern District of Florida
Three indictments were unsealed in the Southern District of Florida charging three Chinese companies and four officers and employees with fentanyl trafficking, synthetic opioid trafficking, precursor chemical importation, defrauding the U.S. Postal Service, and making and using counterfeit postage.
“Targeting those who fuel the opioid epidemic, regardless of who they are and where they are operating from, is one of our district’s top priorities,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Today, we announced charges against the Chinese companies and employees that manufacture and introduce the raw chemicals at the start of the fentanyl and methamphetamine supply chain. This is only the beginning of our fight. The precursors and synthetic opioids that are being marketed, sold, and shipped to the United States and Mexico are being mixed and re-distributed into our local communities as powerful and potentially deadly cocktails of controlled substances. We commend our partner agencies for their skill and resourcefulness, as we work collectively to prosecute the sources of the poison and protect the public.”
Hanhong Medicine Technology Company, a pharmaceutical company located in Wuhan, Hubei Province, China, was charged in a four-count indictment, along with Chinese nationals Changgen Du, 30, and Xuebi Gan, 28. According to the indictment, Hanhong has exported large quantities of fentanyl precursors and non-opioid additives, like xylazine, to the United States and Mexico, including to a drug trafficker in Pennsylvania and to a drug trafficker in the Sinaloa cartel for the manufacture of fentanyl in Mexico for eventual distribution in the United States. Xylazine is often mixed with fentanyl to increase the effects of the drug for users. Xylazine is a non-opioid drug approved for veterinary use for purposes of sedation, anesthesia, muscle relaxation, and pain relief in horses, cattle, and other animals. It is not approved for human use. Many opioid users are unaware they are taking xylazine. Overdose deaths involving xylazine have steadily increased year over year. Drug users who inject xylazine, or drug mixtures containing xylazine, often develop necrotic tissue resulting in disfiguring wounds or amputation.
The Du Transnational Criminal Organization is listed on the United States Attorney General’s Consolidated Priority Organization Target (CPOT) list. The CPOT list identifies the most significant transnational criminal organizations presenting a priority threat to the United States, including those international drug and money laundering organizations affecting the illicit drug supply of the United States. The CPOT list identifies those criminal organizations by the name(s) of their leaders. Du, as the criminal organization’s leader, is the director of Hanhong and allegedly negotiates sales with customers. Gan is an alleged sales representative. Du and Gan each operated a crypocurrency wallet that accepted payment for Hanhong’s sales. The four-count indictment charges Hanhong, Du, and Gan with conspiracy to manufacture and distribute fentanyl; conspiracy to manufacture and distribute a fentanyl precursor with intent to unlawfully import it into the U.S.; manufacturing and distributing a fentanyl precursor with intent to unlawfully import it into the U.S.; and conspiracy to commit money laundering.
Jiangsu Bangdeya New Material Technology Company, a pharmaceutical company located in Jiangsu, China, was charged in an eight-count indictment, along with Jiantong Wang, 40, a Chinese national and alleged owner and operator of Bangdeya. The indictment alleges that Bangdeya advertises openly online as an export company for chemicals, including synthetic opioids protonitazene and metonitazene. The introduction of these synthetic opioids into the illicit drug market threatens to exacerbate the overdose problem in the United States. Drug traffickers typically mix protonitazene and metonitazene with other opioids, such as fentanyl, to create new and more powerful cocktails of dangerous opioids. Bengdeya has imported large quantities of these synthetic opioids into the U.S., including to a drug trafficker in the Southern District of Florida.
Bangdeya and Wang were charged with conspiracy to import protonitazene and metonitazene; conspiracy to distribute protonitazene and metonitazene; multiple counts of distribution of protonitazene; conspiracy to defraud the United States and make and use forged and counterfeited postage; and making and printing unauthorized postage meter stamps.
Hubei Guanlang Biotechnology Company, a chemical company located in Shijaizhuang, Hebei Province, China, was charged in a two-count indictment, along with Chinese national Wei Zhang, 28, who allegedly runs the day-to-day operations of the company and operates a cryptocurrency wallet that accepts payment for the company’s sales of fentanyl precursors and opioid additives.
According to the indictment, Guanlang openly advertises online and sells an array of chemicals, including methamphetamine precursors like methylamine HCL, to customers in the United States and Mexico. Methylamine HCL is an essential precursor chemical that Mexican cartels use to manufacture highly pure and potent methamphetamine. Currently, most of the methamphetamine supply in the United States is produced by drug trafficking cartels in Mexico.
Guanlang and Zhang are charged with conspiracy to manufacture and distribute a methamphetamine precursor and unlawfully import into the U.S. and conspiracy to unlawfully import a methamphetamine precursor into the U.S. with the intent to manufacture methamphetamine; and the manufacture and distribution of a methamphetamine precursor that was unlawfully imported into the United States.
The DEA Miami Field Division, HSI Miami, USPIS-Miami, IRS-CI Miami, and FBI Miami Field Office investigated these cases.
Assistant U.S. Attorney Monique Botero and Jon Juenger for the Southern District of Florida are prosecuting the cases. Assistant U.S. Attorney Michell Hyman for the Southern District of Florida is handling asset forfeiture.
The indictments are a result of Organized Crime Drug Enforcement Task Forces (OCDETF) investigations. The OCDETF mission is to identify, disrupt, and dismantle the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency task force approach. OCDETF synchronizes and incentivizes prosecutors and agents to lead smart, creative investigations targeting the command-and-control networks of organized criminal groups and the illicit financiers that support them. Additional information about the OCDETF Program may be found at www.justice.gov/OCDETF.
Members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force carried out this case and prosecution. HIDTA was established in 1990. This program, which is made up of federal, state, and local law enforcement agencies, fosters intra-agency cooperation among law enforcement agencies in South Florida and involves them in developing a strategy to target the region's drug-related and violent crime threats to public safety, as with the opioid epidemic, fentanyl, and the cocaine threat to our nation. The South Florida HIDTA uses the funding provided by the Office of National Drug Control Policy, out of the Executive Office of the President of the United States, that sponsors a variety of law enforcement initiatives that target the region's illicit drug and violent crime threats to our community.
Middle District of Florida
Five indictments were unsealed in the Middle District of Florida charging five Chinese corporations and eight Chinese nationals with the illegal importation of fentanyl and fentanyl-related chemicals into the United States.
According to the indictments, the defendants openly advertised their ability to thwart U.S. customs and deliver the chemicals used to make fentanyl to the Middle District of Florida and elsewhere in the United States. The defendants used fake shipping labels and special delivery procedures to ensure the illicit chemicals went undetected. The defendants played various roles, such as coordinators and suppliers, and eight defendants are also charged with international money laundering. According to the indictments, the Chinese companies demonstrated past success delivering a stable supply of product to clients in Mexico for years.
“The protection of our country from the deadly scourge of fentanyl is a key priority of the Department of Justice and my office,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We will continue to pursue cases against Chinese chemical companies who are knowingly manufacturing and exporting fentanyl precursors to profit on the pain and suffering of people in the United States. We thank our partners at the Drug Enforcement Administration for their tireless efforts in support of these prosecutions.”
Hebei Shenghao Import and Export Company, based in Shijiazhuang, Hebei Province, China, is charged with fentanyl trafficking conspiracy, along with Chinese nationals Qingshun Li, 29, who allegedly negotiates the sale of precursor chemicals and maintains a bank account for the receipt of payments; Qingsong Li, 32; and Chunhui Chen, 33, both of whom allegedly maintain cryptocurrency wallets for the remittance of payments of precursor chemicals; Chunzhou Chen, 30, who allegedly received Western Union payments on behalf of Hebei Shenghao.
Lihe Pharmaceutical Technology Company, based in Wuhan, Hebei Province, China, was charged with fentanyl trafficking conspiracy and international money laundering, along with Chinese nationals Mingming Wang, 34, who is the alleged holder for three bitcoin accounts shared by sales agents for Lihe Pharmaceutical, and Xinqiang Lu, 40, the alleged recipient of funds via Western Union on the company’s behalf.
Henan Ruijiu Biotechnology Company, based in Zhengzhou, Henan Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering, along with Chinese national Yongle Gao, 30, who is the alleged registered owner of the bitcoin wallet associated with Henan Ruijiu.
Xiamen Wonderful Biotechnology Company, based in Xiamen, Fujian Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering, along with Chinese national Guo Liang, 34, the alleged registered owner of the bitcoin wallet associated with Xiamen Wonderful.
Anhui Ruihan Technology Company, based in Hefei, Anhui Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering.
DEA investigated these cases.
Assistant U.S. Attorney Daniel Baeza and Special Assistant U.S. Attorney Michael Leath for the Middle District of Florida are prosecuting the cases.
The U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) provided assistance with the indictments brought in both districts.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indictments are attached to this release.
Indictment-23cr335 Indictment-23CR338 Indictment-23CR334 Indictment-23CR336 Indictment-23CR333 CaseNo-23-20393-CR-ALT CaseNo-23-20394-CR-ALT CaseNo-23-60176-CR-SING###
Jury Convicts Macon Residents for Armed Fentanyl, Meth, Heroin TraffickingRead the Press Release
MACON, Ga. – A federal jury convicted two Macon residents and members of a local criminal street gang organization on multiple federal charges Monday evening for their roles in the armed distribution of large quantities of drugs, which often tested to be deadly fentanyl mixes.
Johnifer Dernard Barnwell aka “Whoop” aka “Malixe,” 37, of Macon, and Kenneth Emanuel Pertillo aka “Fat Boy,” 37, of Macon, West Virginia and North Carolina, were found guilty of conspiracy to possess with intent to distribute fentanyl, methamphetamine and heroin, and possession with intent to distribute fentanyl, methamphetamine, heroin, cocaine and cocaine base. Barnwell was also convicted of possessing a firearm in furtherance of a drug trafficking crime. The trial began on Sept. 25 before U.S. District Judge Royal, concluding Oct. 2. Both defendants face a maximum sentence of life in prison on each narcotics charge and a $10,000,000 fine. Barnwell additionally faces five consecutive years in prison and a maximum $250,000 fine for the firearms charge. Sentencing will be determined by the Court. The defendants are not eligible for parole.
“As part of our collective commitment to directly address violence in Macon, law enforcement conducted this lengthy investigation to unravel a violent and armed organized criminal group distributing large amounts of fentanyl, often sold to people as other drugs,” said U.S. Attorney Peter D. Leary. “In collaboration with our local, state and federal law enforcement partners, our office is resolved to bring justice to those who terrorize our neighborhoods with unrelenting violence and poison our communities with fentanyl and other deadly drugs.”
“Gangs wreak havoc on local residents, engaging in violence and peddling dangerous drugs that devastate communities and families," said Senior Supervisory Special Agent Robert Gibbs of FBI Macon. "As this case demonstrates, cooperation between federal, state and local law enforcement is vital to dismantling violent criminal enterprises and keeping our communities safe."
According to court documents and evidence presented at trial, FBI began investigating a large-scale fentanyl, heroin and methamphetamine distribution organization in Macon and the Central Georgia region in March 2020. Federal agents identified Pertillo and Barnwell as distributors and part of the MOB (Money Over Bitches) sect of the Mafia criminal street gang. To advance the investigation, agents conducted multiple controlled purchases from various defendants in the case and obtained orders authorizing wiretaps on five phones used by members of the organization, including Barnwell. Controlled purchases occurred at trap houses on Mimosa Drive and Culver Street, and at a local nightclub, among other locations. Illegal drugs being sold as “heroin” often tested as a fentanyl mix.
On July 20, 2021, FBI executed search warrants at eleven Macon addresses identified as trap houses or distribution locations on Mimosa Drive, Culver Street, Forest Hill Road, Riverside Park Boulevard, Lucerne Drive, Shurling Drive and Kingsview Drive. Agents found approximately eight kilograms of fentanyl, methamphetamine, heroin, cocaine and cocaine base plus 20 firearms, hundreds of rounds of ammunition, large-capacity firearm magazines and more than $50,000 cash. At one location—an apartment identified as a drug “lab” at 3990 Riverside Park Blvd. where Barnwell and Pertillo would mix fentanyl and heroin in a kitchen blender before selling it—agents found approximately 2.5 kilograms of methamphetamine, nearly one kilogram of pure fentanyl, more than one kilogram of a pure fentanyl chemical analogue and more than two kilograms of blends containing fentanyl, heroin and fentanyl analogue mix. Agents also found nearly half a kilogram of pure heroin, more than 280 grams of cocaine base, 80 grams of cocaine and 64 grams of ketamine. Agents seized several firearms, a fully loaded AR14 drum magazine, ammunition and $5,778 cash at that location.
In all, the organization is responsible for distributing or possessing with the intent to distribute more than three kilograms of fentanyl or fentanyl analogue, 2.5 kilograms of methamphetamine, nearly two kilograms of heroin and significant quantities of cocaine base and cocaine.
The following co-defendants have been convicted and are awaiting sentencing:
Christopher Leon Coleman aka “Slim,” 41, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine. He faces a mandatory minimum sentence of ten years up to a maximum of life in prison and a $10,000,000 fine;
Troy Truelle Williams, Sr., aka “Ty, 54, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl and heroin. He faces a mandatory minimum sentence of five years up to a maximum of 40 years in prison to be followed by six years of supervised release and a $2,000,000 fine;
De’Kerio Ja’mel Coleman aka “Dee,” 35, of Macon, pleaded guilty to distribution of fentanyl. He faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine;
Joshua Antoine Green aka “J” or “Jay,” 32, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine. He faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine;
Gregory Bernard Jolly aka “Stank,” 38, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine. He faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine;
Johnnie B. Lowe, 67, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl. He faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine;
Rochelle Oliver aka “Chelle,” 40, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances. She faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine;
Recardo Keon Ray aka “Keon,” 38, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine. He faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine;
Tiara Thomas aka “Red,” 23, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl. She faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine; and
Michael Clifford White, 40, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl. He faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine.
The following co-defendants have been convicted and sentenced:
Romello Campbell, 21, of Macon, was sentenced to serve 120 months in prison to be followed by three years of supervised release on May 9 after he pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine;
Diamond Monique Thomas, 27, of Macon, was sentenced to serve 96 months in prison to be followed by three years of supervised release on July 11 after she pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine; and
Jameliha Shalonda Coleman aka “Juicy,” 26, of Macon, was sentenced to serve 90 months in prison to be followed by three years of supervised release on June 9 after she pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case was investigated by the FBI, with assistance from numerous agencies who participated in executing search warrants and conducting arrests, including the DEA, the GBI, the Bibb County Sheriff’s Office, the Butts County Sheriff’s Office, the Bleckley County Sheriff’s Office, the Houston County Sheriff’s Office, the Georgia Department of Corrections, the Perry Police Department and the Athens-Clarke County Police Department.
Assistant U.S. Attorney Joy Odom is prosecuting the case for the Government.
Johnstown Man Pleads Guilty to Conspiring to Distribute and Possessing with Intent to Distribute Crack-Cocaine and CocaineRead the Press Release
JOHNSTOWN, Pa. – A former resident of Johnstown, PA pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.
Perry King, age 47, of Johnstown, PA, pleaded guilty to Count One of a Superseding Indictment and to Counts One and Two of an Indictment before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, from on or about April 2019, to on or about July 2021, King did conspire to distribute and possess with intent to distribute a quantity of a mixture and substance containing a detectable amount of cocaine base, in the form commonly known as crack, and a quantity of a mixture and substance containing a detectable amount of cocaine. Further, on or about October 31, 2019, King did possess with intent to distribute and distribute a quantity of a mixture and substance containing a detectable amount of cocaine base, in the form commonly known as “crack”. Additionally, on or about January 14, 2020, King did possess with intent to distribute 28 grams or more of a mixture and substance containing a detectable amount of cocaine base, in the form commonly known as “crack:”.
Judge Gibson scheduled sentencing for February 8, 2024. The law provides for a minimum sentence of 5 years in prison and a maximum sentence of 40 years in prison, a fine of up to $5,000,000, or both, at Count One of the Indictment, and a maximum sentence of 20 years in prison, a fine of up to $1,000,000, or both at Count One of the Superseding Indictment and Count Two of the Indictment. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Laurel Highlands Resident Agency and Homeland Security Investigations conducted the investigation that led to the prosecution of King. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Pennsylvania Office of the Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department and other local law enforcement agencies.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Jefferson Parish Man Indicted for Making False Statement to United States Coast GuardRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that DERRICK FREMEN (“FREMEN”), age 51, a resident of Jefferson Parish, was indicted for making a false statement to the United States Coast Guard, in violation of Title 18, United States Code, Section 1001(a)(3). FREMEN was arrested on September 28, 2023.
According to court documents, FREMEN was a licensed merchant mariner and holder of a 100-Ton United States Coast Guard master’s license. In late 2018, FREMEN applied for a job to work on a vessel. The prospective employer required FREMEN to submit to a drug screening, which he failed. In response to the failed drug test, FREMEN submitted an altered medication prescription to the United States Coast Guard on July 1, 2019, to justify his failed drug test.
If convicted of this violation, FREMEN faces a prison term of up to five years, up to three years of supervised release, a fine of up to $250,000, and a mandatory special assessment fee of $100. The matter is currently set for trial on December 4, 2023, before U.S. District Judge Lance M. Africk.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by Special Agents of the United States Coast Guard Investigative Service, Gulf Region. Assistant United States Attorney Spiro G. Latsis of the General Crimes Unit oversees the prosecution.
Jacksonville Beach Nurse Pleads Guilty to Tampering with MedicationRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Katherine Jee Rankin (30, Jacksonville Beach) today pleaded guilty to tampering with a consumer product, specifically injectable hydromorphone. Rankin faces a maximum penalty of 10 years in federal prison. A sentencing date has not been set.
According to the plea agreement, Rankin was a registered nurse and employed by a surgical center in Jacksonville. On October 13, 2022, after discovering that Rankin had forged an anesthesia record, a supervisor confronted Rankin and told her that she was being fired. After being terminated, but while still in the building, Rankin was seen by another employee, and captured on a surveillance camera, removing some vials from a controlled substances cabinet. While still at the surgical center, Rankin had a discussion with three other employees telling them that she had an addiction and that she had been taking drugs from the facility. She also said that the center’s drug count was going to be off. Rankin eventually turned over four vials of injectable hydromorphone, stating that the vials did not contain hydromorphone, but saline. Rankin explained that she had removed the hydromorphone, replaced it with saline, glued the caps back on, and then put vials back in the inventory so that surgical center’s drug count would be correct. Laboratory testing later showed that all four vials contained evidence of physical tampering (caps being removed and glued back on) and chemical tampering (each vial contained very diluted amounts of hydromorphone).
A review of patient records showed numerous instances in which 200 ml of hydromorphone was documented as being administered to patients when that amount would have been unusual – 100 ml being more typical. On those occasions, the entries appeared to have been altered with a “2” being written over the “1.” There were also multiple records of hydromorphone supposedly being administered post-operatively (which also would be unusual), indicating that these records were falsified or altered to cover for Rankin’s diversion of drugs for personal use.
As a trained and educated healthcare professional, Rankin knew that tampering with medication and falsifying records placed patients in danger of bodily injury and potentially death.
This case was investigated by the U.S. Food and Drug Administration – Office of Criminal Investigations and the Jacksonville Sheriff’s Office – Pharmaceutical Diversion and Designer Drug Unit attached to the North Florida High Intensity Drug Trafficking Area. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
Inmate at FCI-Berlin Sentenced to an Additional 30 Months for Assaulting Another InmateRead the Press Release
CONCORD – An inmate at FCI Berlin was sentenced in federal court in Concord for assaulting another inmate, U.S. Attorney Jane E. Young announces.
Aniel Gomez, 48, was sentenced by U.S. District Court Judge Steven McAuliffe to an additional 30 months in prison. Gomez was also ordered to pay $1,392 in restitution to the Federal Bureau of Prisons. On June 14, 2023, Gomez pleaded guilty to assault.
“The defendant’s attack not only caused significant harm to another inmate, but it risked the safety of the entire community including the prison’s staff,” said U.S. Attorney Jane E. Young. “The U.S. Department of Justice considers the custody and care of federal inmates to be a serious responsibility and we will continue to support our partners at the Federal Bureau of Prisons to accomplish this mission.”
“Today’s sentence makes it clear that prison is not a place to continue committing crimes,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “Aniel Gomez brutally beat a fellow inmate and will now spend more time behind bars for jeopardizing that inmate’s safety and the safety of the prison’s staff. This case demonstrates how the FBI will not hesitate to work with our law enforcement partners to ensure that anyone who engages in violence will be brought to justice.”
On December 19, 2022, Gomez beat another inmate with a homemade weapon consisting of two padlocks strapped together. Prison video footage showed Gomez waiting for the victim. After the victim exited a shower, Gomez followed him and beat him with the homemade weapon. As a result, the victim suffered head trauma including the loss of teeth and lacerations above the right eyebrow and back of the head.
At the time of the assault, Gomez was serving a 365-month imprisonment for conspiracy to maintain a residence for manufacturing and distributing marijuana, and conspiracy to manufacture and distribute 100 or more marijuana plants. Gomez’s sentence will be consecutive to his current sentence.
The Federal Bureau of Investigation and FCI-Berlin Special Investigative Services led the investigation. Assistant U.S. Attorney Matthew T. Hunter prosecuted the case.
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Inkster Mayor Charged with BriberyRead the Press Release
DETROIT – A federal indictment was issued charging the mayor of the City of Inkster with bribery, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Patrick Wimberly, 49, of Inkster, is the elected mayor of the City of Inkster, Michigan. According to the indictment, Wimberly demanded cash payments to facilitate the sale of property owned by the city (referred to as “Parcel 1”) to an outside party (referred to as “Person A”). Over several months, Person A provided Wimberly with monthly cash bribes to secure the purchase of this property. The monthly payments started at $5,000 but the parties agreed to eventually increase that amount. After the initial bribes, Wimberly explained that he was ready to increase the payments. Person A agreed. But when Person A later didn’t provide the amount Wimberly expected, Wimberly complained that he was due “10$ a month.” Person A then increased the monthly payments to $10,000. In total, Person A provided $50,000 in cash to Wimberly to assure a winning bid of Parcel 1.
Wimberly was charged with bribery concerning programs receiving federal funds, a violation of 18 U.S.C. § 666. This bribery charge carries a maximum sentence of 10 years’ imprisonment and a fine of $250,000.
“Elected public officials owe a duty to their community to act in the citizens’ best interest,” United States Attorney Ison said. “Our office is committed to prosecuting those public officials who betray the public trust by accepting bribes.”
"Mr. Wimberly was elected to serve the people of Inkster, yet he prioritized his personal interests and greed over their needs," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "The FBI considers public corruption its primary criminal investigative concern and will continue investigating allegations to maintain public trust in elected officials."
The investigation of this case was conducted by the FBI's Detroit Area Corruption Task Force. The case is being prosecuted by Assistant U.S. Attorneys Steven P. Cares and Eaton P. Brown.
An indictment is only a charging document and is not evidence of guilt.
Four Men Arraigned on Alleged Drug Trafficking Conspiracy and Gun ChargesRead the Press Release
WASHINGTON – Arraignments were held today for four alleged members of a drug trafficking conspiracy. Jorge Cruz Maldonado, Francisco Alexander Rosales Diaz, Erik Rivera Garcia, and Vladimir Roque Ceron are charged with conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine and a mixture and substance containing a detectable amount of fentanyl.
The charges were announced by U.S. Attorney Matthew M. Graves and Special Agent in Charge Jarod Forget of the Drug Enforcement Administration’s Washington Field Division.
Cruz Maldonado also is charged with unlawful distribution of 500 grams or more of cocaine; Cruz Maldonado, Rosales Diaz, and Rivera Garcia are charged with unlawful possession with intent to distribute 500 grams or more of cocaine and using, carrying, and possessing a firearm in furtherance of a drug trafficking offense; Rivera Garcia also is charged with unlawful possession of a firearm and ammunition by a prohibited person. Rosales Diaz additionally is charged with unlawful possession of ammunition by a prohibited person.
According to court documents, on or about Aug. 18, 2023, Cruz Maldonado, Rivera Garcia, and Rosales Diaz arrived in a vehicle at the parking lot of a shopping center in Northeast Washington, DC to conduct a drug deal. Shortly after, DEA agents approached all three individuals in their car and detained them. Inside the vehicle, DEA agents discovered and seized a loaded .38 caliber revolver, a loaded 9mm handgun, numerous rounds of ammunition for each firearm, an extended magazine, and approximately 3.6 kilograms of cocaine powder.
It is further alleged that between March and June 2023, through five transactions in Hyattsville, Maryland, and Washington, D.C., Roque Ceron sold a total of approximately 111 pills containing fentanyl and 197 grams of cocaine powder for $8,250; and, through two transactions between June and August 2023 in Washington, DC, Cruz Maldonado sold a total of approximately 581 grams of cocaine powder for $16,000. It is further alleged that Cruz Maldonado is Roque Ceron’s supplier of fentanyl and cocaine, and that together with Rosales Diaz and Rivera Garcia, they are engaged in a conspiracy to distribute and possess with intent to distribute cocaine and fentanyl.
Cruz Maldonado, Rosales Diaz, and Rivera Garcia were arrested on Aug. 18, 2023, and remain detained; Roque Ceron was arrested on August 20, 2023, and remains detained.
The maximum statutory sentence for the drug conspiracy charge is 40 years; the maximum statutory sentence for distributing or possessing with intent to distribute 500 grams or more of cocaine is 40 years; the maximum statutory sentence for possessing a firearm in furtherance of a drug trafficking offense is life imprisonment; and the maximum statutory sentence for possessing a firearm and/or ammunition by a prohibited person is 15 years. All statutory maximum sentences are prescribed by Congress and are provided here for informational purposes. If convicted of any offense, a defendant’s sentence will be determined by the court based on the advisory U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the DEA’s Washington Field Division with assistance from the Department of Homeland Security’s Immigration and Customs Enforcement (Washington Enforcement and Removal Operations) and the Metropolitan Police Department. The case is being prosecuted by Special Assistant U.S. Attorney Javier Urbina and Assistant U.S. Attorney Christopher Marin with the Violence Reduction and Trafficking Offenses section of the U.S. Attorney’s Office for the District of Columbia.
All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Key West hotel housekeeping manager sentenced for tax and immigration conspiracyRead the Press Release
MIAMI – A former housekeeping manager at a large Key West hotel, Nataliya Vasylivna Kasyanenko, was sentenced on Sept. 29, to eight months in prison for conspiring to defraud the United States and conspiring to harbor aliens and induce them to remain in the United States for her role in a tax and immigration conspiracy related to the operation of a labor staffing business, Phoenix ADB Services, Inc. (“Phoenix ADB”).
From at least 2009 to October 2020, a large hotel in Key West used staffing services provided by several companies, including General Labor Solutions LLC, Liberty Specialty Services LLC, Paradise Choice LLC and Paradise Choice Cleaning LLC (collectively, “Paradise Choice”), AmeriHos LLC (“American Hospitality”), Golden Sands Management LLC (“Golden Sands”). and Phoenix ADB (collectively, “hospitality labor staffing companies”). As a manager, Kasyanenko used these companies to hire aliens for positions at her hotel whom she knew were not authorized to work in the United States and received kickbacks from the hospitality labor staffing companies for directing unauthorized workers to be placed on their respective payrolls. Kasyanenko knew that the operators of Phoenix ADB—who included her sons, Former City of Key West Police Officer Igor Kasyanenko and Roman Riabov—paid workers without withholding federal income or employment taxes from their gross wages and did not file with the IRS requisite tax forms for such workers employed at hotels, bars, and restaurants in Key West and at other locations in Florida.
In a series of prior cases filed in federal court in the Southern District of Florida, operators of the hospitality labor staffing companies have been convicted and sentenced to prison for facilitating the employment of unauthorized workers in the Key West hospitality industry and violating the employment tax laws. Mykhaylo Chugay, one of the operators of General Labor Solutions LLC, Liberty Specialty Services LLC, and Paradise Choice Cleaning LLC, was convicted at trial in June 2022, and sentenced to 292 months in prison. Two of Chugay’s coconspirators, Oleksandr Morgunov and Volodymyr Ogorodnychuk, each pleaded guilty and were sentenced to 96 months and 48 months in prison, respectively.
Batyr Myatiev, the owner and operator of American Hospitality and Golden Sands, pleaded guilty in March 2023 and was sentenced to 32 months in prison.
In March 2022, Mikus Berzins, Igor Kasyanenko, Riabov, and Andrejs Kozlovs each pleaded guilty, acknowledging their respective roles in the operation of Phoenix ADB. Igor Kasyanenko and Riabov were sentenced to 22 months and 18 months in prison, respectively, for their roles in the same conspiracy to which Nataliya Kasyanenko pleaded guilty in this case. Mikus Berzins and Andrejs Kozlovs were sentenced to 28 months and 12 months in prison, respectively, for knowingly hiring ten or more aliens who were not authorized to work in the United States.
In addition to the term of imprisonment, U.S. District Judge Donald L. Graham ordered Nataliya Kasyanenko to serve two years of supervised release and to pay approximately $1.09 million in restitution to the United States.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI), Miami Field Office, and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, announced the sentence.
IRS-CI Miami and HSI Miami investigated the case. Assistant U.S. Attorney Christopher J. Clark, Senior Litigation Counsel Sean Beaty and Trial Attorneys Jessica A. Kraft, Nicholas J. Schilling Jr., Matthew C. Hicks and Wilson Rae Stamm of the Tax Division prosecuted the case.
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 23-cr-10001.
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Firearms Trafficker Sentenced to 3.5 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Juan Valentin Manriquez, 21, of Antioch, was sentenced today to three years and eight months in prison for unlawful dealing in firearms, U.S. Attorney Phillip A. Talbert announced.
According to court documents, co-defendant Andrew Jace Larrabure-Tuma used Snapchat to advertise narcotics and guns for sale. Law enforcement used undercover officers and a confidential informant to buy guns from Tuma. Tuma was 19 years old and could not legally purchase a gun in the state of California. Tuma ultimately introduced the informant working for law enforcement to his gun supplier, Manriquez. During the course of the following month, Manriquez sold the informant nine guns in exchange for cash.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sacramento Police Department, and the Western El Dorado Narcotics Enforcement Team. Assistant U.S. Attorney Justin Lee prosecuted the case.
Tuma pleaded guilty to unlawful dealing and manufacturing firearms and was sentenced to three years and four months in prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Felon Indicted for Possessing Rifle and a Straw-Purchased HandgunRead the Press Release
ALBANY, NEW YORK – Mana Sambola a/k/a “Coffee,” age 41, a citizen of Liberia residing in Saratoga Springs, New York, was indicted for possessing two firearms and four boxes of ammunition as a previously convicted felon. Christopher Krom, age 36, of Lake Luzerne, New York, was indicted for acting as a straw purchaser for one of Sambola’s firearms.
United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Homeland Security Investigations (HSI), Buffalo, New York Field Office, made the announcement.
According to the indictment and a previously filed criminal complaint, law enforcement searched Sambola’s apartment on May 22, 2023 and found an Anderson Manufacturing AM15 rifle emblazoned with the names of the Four Horseman of the Apocalypse: “Death,” “War,” “Famine,” and “Pestilence.” Investigators also recovered a Glock 43 pistol that Krom purchased on behalf of Sambola, as well as four boxes of ammunition. Sambola has prior felony convictions related to drugs and weapons, and as a result cannot lawfully possess these firearms or ammunition. The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The charge filed against Sambola carries a maximum term of 15 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. The charges filed against Krom carry a maximum term of 25 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
United States Magistrate Judge Daniel J. Stewart set conditions of release for Krom and ordered Sambola detained pending their trial before United States District Judge Anne M. Nardacci.
HSI is investigating the case with the assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); the Warren County District Attorney’s and Sheriff’s Offices; the New York State Police; and the Saratoga County Sheriff’s Office. Assistant U.S. Attorney Jonathan S. Reiner is prosecuting the case.
El Paso Woman Posed as Immigration Services Employee, Sentenced to Seven Years in PrisonRead the Press Release
EL PASO, Texas – An El Paso woman was sentenced in a federal court in El Paso to 87 months in prison for wire fraud and impersonating a federal employee.
According to court documents, Ana Maria Hernandez, 53, portrayed herself to be a U.S. Citizenship and Immigration Services (CIS) employee and defrauded numerous undocumented noncitizen victims and their family members by falsely representing that she would process their immigration applications for a substantial fee. Hernandez’s victims provided her with the documentation required to file and adjust their immigration status. She was not an employee of CIS and never took any actions to adjust the victims’ status. Investigation revealed that Hernandez had amassed thousands of dollars of unexplained wealth within the 18 months coinciding with her fraudulent activity. Following her arrest on Jan. 23, 2023, the U.S. Attorney’s Office for the Western District of Texas and the Homeland Security Investigations (HSI) El Paso Division began receiving calls from dozens of potential victims in Hernandez’s fraud scheme.
Hernandez pleaded guilty in April to 10 counts of wire fraud and one count of impersonation. In addition to her 87 months imprisonment, Hernandez was ordered to pay $123,275 in restitution and a money judgement order of $19,870.
“This defendant misled vulnerable migrants for financial gain by convincing them that she was a federal employee who could assist them on their path to U.S. citizenship,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “My office will prosecute anyone who fraudulently takes advantage of our federal agencies and their beneficiaries, and we will ensure their victims are afforded proper reparations.”
“The message is clear: Have no doubt. Individuals who impersonate a federal officer and exploit trusting individuals for their own personal gain, will be held accountable for their crimes,” said Special Agent in Charge Francisco B. Burrola for the HSI El Paso Division. “HSI will leverage its investigative abilities in order to identify, arrest and prosecute these piranhas in society.”
HSI investigated the case.
Assistant U.S. Attorney Patricia Aguayo prosecuted the case.
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Detroit Man Sentenced to Prison for Attempted Mail Fraud and Aggravated Identity TheftRead the Press Release
PITTSBURGH, PA – Milton Barth Reed, Jr., III, age 32, was sentenced today in federal court on charges of attempted mail fraud and aggravated identity theft, United States Attorney Eric G. Olshan announced.
According to information presented to the Court, Reed was part of a conspiracy that involved the use of personally identifying information belonging to other people to file fraudulent applications for Pandemic Unemployment Assistance and Federal Pandemic Unemployment Compensation benefits in states across the country, including Pennsylvania. On or about September 17, 2020, Reed traveled to Pittsburgh in an attempt to collect benefits that had been issued by Pennsylvania based on those fraudulent applications and were scheduled to be delivered in the area.
Judge Cathy Bissoon sentenced Reed to a total of 36 months in prison to be followed by three years supervised release.
Assistant United States Attorney Jeffrey R. Bengel prosecuted this case on behalf of the government.
The United States Department of Labor, United States Postal Inspection Service, and United States Department of Homeland Security conducted the investigation leading to the Indictment in this case.
Convicted lab owner ordered to forfeit over $187 million in health care fraud proceedsRead the Press Release
MIAMI – On Sept. 22, U.S. District Court Judge Rodolfo A. Ruiz, in Miami, ordered the defendant, Minal Patel, to forfeit over $187 million in health care fraud proceeds including over $30 million seized from personal and corporate bank accounts, a 2018 Red Ferrari Spider, a 2019 Land Rover Range Rover, and real property.
Minal Patel, 44, of Atlanta, owned LabSolutions LLC (LabSolutions), a lab enrolled with Medicare that performed sophisticated genetic tests. Patel conspired with patient brokers, telemedicine companies, and call centers to target Medicare beneficiaries with telemarketing calls falsely stating that Medicare covered expensive cancer genetic tests. After the Medicare beneficiaries agreed to take a test, Patel paid kickbacks and bribes to patient brokers to obtain signed doctors’ orders authorizing the tests from telemedicine companies. To conceal the kickbacks and bribes, Patel required patient brokers to sign sham contracts that falsely stated that the brokers were performing legitimate advertising services for LabSolutions, when, as Patel well knew, the brokers were deceptively marketing to Medicare beneficiaries and paying kickbacks and bribes to telemedicine companies for genetic testing prescriptions.
Patel knew the telemedicine doctors robo-signed prescriptions for expensive genetic testing even though they were not treating the beneficiaries, often did not even speak with them, and made no evaluation of medical necessity. From July 2016 through August 2019, LabSolutions submitted more than $463 million in claims to Medicare, including for thousands of medically unnecessary genetic tests, of which Medicare paid over $187 million. Patel enriched himself with the fruits of his crimes, including with the purchase of luxury items like a 2018 Red Ferrari Spider.
Exhibit from court record
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, and Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Miami Region, made the announcement.
FBI Miami and HHS-OIG Miami investigated the case. Trial Attorneys Jamie de Boer, Emily Gurskis, Reginald Cuyler Jr., Katherine Rookard, and Patrick Queenan of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Marx Calderon handled the asset forfeiture proceedings.
Related press release regarding sentencing available here: https://www.justice.gov/opa/pr/lab-owner-sentenced-463m-genetic-testing-scheme
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 19-cr-80181.
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Collinsville Man Pleads Guilty to Sawed-off Shotgun on Blue Ridge ParkwayRead the Press Release
ROANOKE, Va. – A Collinsville, Virginia man pled guilty yesterday in United States District Court to one count of knowingly possessing an unregistered firearm, United States Attorney Christopher R. Kavanaugh has announced.
James Anthony Nolan, 28, will be sentenced on January 8, 2024, where he faces up to 10 years in prison and a fine of up to $10,000.
According to court documents, in March 2023, a National Park Ranger saw a black Toyota Scion parked across two parking spaces at the Roanoke River Trail on the Blue Ridge Parkway. During a welfare check on the sole occupant of the vehicle, the Ranger could smell the odor of marijuana coming from the car. After Nolan admitted that he had marijuana with him, the Ranger proceeded to search the vehicle.
During the search, a backpack was discovered containing over 50 rounds of assorted ammunition and a sawed-off shotgun in operating condition. Seven expended 12-gauge shotgun shells were also present. The firearm, which was not registered as is required by federal law, was a Derya Arms, Tradition 12-gauge shotgun with black electrical tape wrapped around the buttstock and measuring approximately 21 inches in length with a 10-inch barrel. Nolan admitted to purchasing the shotgun and sawing down the barrel but claimed it was for a project he was working on.
United States Attorney Christopher R. Kavanaugh and Craig B. Kailimai, Special Agent in Charge of the Washington Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the National Park Service investigated the case.
Special Assistant U.S. Attorney J. Parker Gochenour, an Assistant Attorney General with the Virginia Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case.
Civil rights hotline created for federal prison in West VirginiaRead the Press Release
WHEELING, WEST VIRGINIA – Federal authorities have established a hotline for information related to civil rights abuses occurring at Federal Correctional Complex (FCC) Hazelton, United States Attorney William Ihlenfeld announced.
The U.S. Attorney’s Office is seeking information from persons who may have witnessed or were victims of physical assault while incarcerated at FCC Hazelton, which is located in Bruceton Mills, West Virginia. Any witness or victim to any such crimes or attempts to conceal such crimes are asked to directly contact federal prosecutors in the Northern District of West Virginia by calling 1-855-WVA-FEDS, by sending an email to [email protected], or by using the standardized complaint form here.
Chesterfield Man Sentenced to 72 Months in Prison for Fentanyl CrimesRead the Press Release
ST. LOUIS – U.S. District Judge John A. Ross on Tuesday sentenced a man from Chesterfield, Missouri who was caught with more than 2,000 capsules containing fentanyl and two stolen guns to 72 months in prison.
Travionne D. Shelton, now 30, pleaded guilty in June to two felony charges: possession with the intent to distribute fentanyl and possession with the intent to distribute an analogue of fentanyl. Shelton admitted selling methamphetamine and fentanyl for $300 on Oct. 27, 2022, to someone working with law enforcement. Officers tried to stop Shelton’s car after the drug sale, but he fled and eventually abandoned his car in a residential neighborhood. He was arrested in someone’s driveway.
Shelton told authorities that he kept drugs in his apartment and gave them consent to search it. They found nearly 700 grams of methamphetamine, almost 2,000 capsules containing fentanyl or an analog of fentanyl, 11 capsules containing a mix of methamphetamine, fentanyl and tramadol, 12 bags containing fentanyl and other drugs, $20,300 in cash, two stolen firearms and a Glock pistol with a fully loaded drum magazine, his plea says.
The Drug Enforcement Administration and the St. Charles Regional Drug Task Force investigated the case.
Cherokee and Tulsa County Residents Plead Guilty to Firearms OffensesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Eduardo Garcia, age 53, Eric Lopez, age 44, Eric Jesus Lopez, age 27, Savanna Jade Lopez, age 27, and Christian Lopez, age 26, all of Tahlequah, Oklahoma, and Francisco Hernandez, age 24, of Tulsa, Oklahoma, each entered guilty pleas to federal firearms charges.
On May 18, 2023, Eduardo Garcia pleaded guilty to one count of Felon in Possession of a Firearm. At the hearing, Garcia admitted to possessing multiple firearms despite knowing that he was prohibited from possessing firearms as a convicted felon.
On July 19, 2023, Christian Lopez pleaded guilty to one count of False Statement During Purchase of a Firearm.
On August 30, 2023, Eric Lopez, Eric Jesus Lopez, and Savanna Jade Lopez each pleaded guilty to one count of False Statement During Purchase of a Firearm.
On September 11, 2023, Francisco Hernandez pleaded guilty to one count of False Statement During Purchase of a Firearm.
The Indictment alleged that on November 4, 2022, Eduardo Garcia, knowing he was a convicted felon, unlawfully possessed three firearms. The Indictment further alleged that Eric Lopez, Eric Jesus Lopez, Savanna Jade Lopez, Christian Lopez, and Francisco Hernandez, on various dates, purchased firearms from licensed firearms dealers, indicating on the ATF Form 4473 that they were buying the firearms for themselves when they were actually buying the firearms for someone else.
The charges arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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 presentence investigation reports. All defendants will remain out of custody pending sentencing.
Assistant United States Attorney Erin Cornell represented the United States.
Charleston Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Travis Devon Woods, 35, of Charleston, was sentenced today to three years and one month in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on June 6, 2022, law enforcement officers went to Woods’ Livingston Avenue residence in Charleston to speak with him. Before opening his door for the officers, Woods tossed a loaded Sig Sauer, model P250, .45-caliber semiautomatic pistol out a back window of his residence. Officers recovered the firearm. Woods admitted that he possessed the firearm and tossed it out the window because he knew he was prohibited from possessing a firearm.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Woods knew he was prohibited from possessing a firearm because of his prior felony convictions for being a felon in possession of a firearm in United States District Court for the Southern District of West Virginia on July 1, 2015, and first-degree robbery in Kanawha County Circuit Court on March 19, 2009.
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 Charleston Police Department.
Senior United States District Judge David A. Faber 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. 2:22-cr-229.
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Calhoun County Man Sentenced to More than Eight Years in PrisonRead the Press Release
BIRMINGHAM, Ala. – A Calhoun County man has been sentenced to prison after pleading guilty for possession of a sexually explicit video of a child, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Carlton L. Peeples.
U.S. District Judge Annmarie Axon sentenced Joseph Skylar Weeks, 32, of Jacksonville, Alabama, to 97 months in prison followed by 30 years of supervised release. In June, Weeks plead guilty to possession of child pornography.
According to the plea agreement, On August 7, 2022, an undercover law enforcement officer (UC) responded to an ad posted by Weeks on a social media application. Between August 2022 and October 2022, Weeks communicated with the UC, whom Weeks believed to be a 14-year-old girl, about arranging a time to meet. On October 13th, Weeks arrived at the meeting location and was arrested by Homewood police officers. A search warrant was obtained for Weeks’ cell phone where investigators found a video containing child sexual abuse material. This conviction will require Weeks to register as a sex offender in accordance with the Sex Offender Registration and Notification Act (SORNA).
The FBI investigated the case along with the Homewood Police Department. The Alabama Law Enforcement Agency assisted in the investigation. Assistant U.S. Attorney Daniel S. McBrayer prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Bay Area Telecommunications Consultant Pleads Guilty to Violating Sanctions on IranRead the Press Release
OAKLAND - The U.S. Attorney’s Office today announced charges against and guilty pleas by Farhad Nafeiy for violating sanctions by exporting software upgrades for commercial-grade telecommunications servers to the Islamic Republic of Iran (“Iran”), and for tax evasion. The plea was accepted by the Honorable Araceli Martínez-Olguín, United States District Judge. The announcement was made by United States Attorney for the Northern District of California Ismail J. Ramsey, Assistant Attorney General Mathew G. Olsen, Homeland Security Investigations (HSI) Special Agent in Charge Tatum King, and Special Agent in Charge of the IRS Criminal Investigation’s Oakland Field Office Darren Lian.
Nafeiy, 70, of Alamo, Calif., was charged with and pleaded guilty to a violation of the International Emergency Economic Powers Act (“IEEPA”). Under IEEPA, the President of the United States is granted authority to address unusual and extraordinary threats to the national security, foreign policy, or economy of the United States. Under that law, the President has issued orders prohibiting certain activities and transactions with Iran and the Government of Iran. The Department of Treasury’s Office of Foreign Assets Control (OFAC) has issued regulations, referred to as the Iranian Transactions and Sanctions Regulations (ITSR), implementing those orders. These sanctions on Iran generally prohibit, among other things, exporting or facilitating the export of U.S.-origin products to Iran and providing services to Iran.
Nafeiy obtained licenses—or approvals—from OFAC for advising non-Iranian telecommunications companies on doing business with Iran. However, those licenses did not authorize Nafeiy to provide any hardware, software, or technology directly to Iran. Nafeiy exceeded his OFAC licenses, thereby violating the ITSR and IEEPA, by directly providing software upgrades to telecommunications equipment in Iran. Nafeiy admitted in his plea agreement that he knew he exceeded these licenses when he did so. In his plea agreement, Nafeiy further admitted that the total amount of sales of such software upgrades to Iran was approximately $400,000. Nafeiy separately was charged with, and admitted to, evading his federal income taxes, and specifically not paying income tax on some of the proceeds of these sales.
On August 10, 2023, Nafeiy was charged by information with one count of violating IEEPA, in violation of 50 U.S.C. § 1705, and one count of tax evasion, in violation of 26 U.S.C. § 7201. Pursuant to the plea agreement, he pleaded guilty to both charges.
Judge Martínez-Olguín scheduled Nafeiy’s sentencing hearing for January 29, 2024. For the 50 U.S.C. § 1705 violation, Nafeiy faces a maximum statutory prison term of 20 years, a maximum fine of $1,000,000, and restitution, if appropriate. For the tax evasion charge, Nafeiy faces a maximum prison term of five years, a maximum fine of $250,000, and restitution of at least $79,124 to the IRS. As part of any sentence, the court may also order Nafaiy to serve a period of supervised release and to pay additional assessments, however, the court will impose a sentence 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 case is being prosecuted by Assistant U.S. Attorney Benjamin Kingsley and Trial Attorney David Ryan of the National Security Division’s Counterintelligence and Export Control Section, with the assistance of Kathleen Turner of the U.S. Attorney’s Office. Former Trial Attorney Elizabeth Abraham provided valuable assistance in prior phases of the prosecution. The prosecution is the result of an investigation by Homeland Security Investigations and the Internal Revenue Service-Criminal Investigation.
Anchorage Man Arrested, Charged with Bank RobberyRead the Press Release
ANCHORAGE, Alaska – An Anchorage man was arrested on criminal charges after he allegedly robbed a bank yesterday morning.
According to court documents, Michael Nash, 49, tried to enter the First National Bank branch located on West 36th Avenue in Anchorage just after 9 a.m. on Oct. 2. Nash was unable to enter because the bank’s lobby did not open until 10 a.m. and the doors were locked.
The defendant slipped a note through the doors to a bank supervisor stating that this was a robbery. The bank was secured immediately, and police were called. A bank security officer requested Nash leave but he refused. Law enforcement officers arrived and arrested Nash in front of the bank.
Nash is charged with one count of bank robbery, in violation of 18 U.S.C. §2113(a) and §2113(f). If convicted, he faces up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker of the District of Alaska and Special Agent in Charge Antony Jung of the FBI Anchorage Field Office made the announcement.
The FBI’s Anchorage Field Office, with assistance from the Anchorage Police Department, is investigating the case.
Assistant U.S. Attorney Seth Brickey is prosecuting the case.
A criminal complaint 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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2 October 2023
Woman Sentenced to over Six Years in Federal Prison for Back-to-Back Bank RobberiesRead the Press Release
INDIANAPOLIS- Shamiya Hunt, 37, of Indianapolis, Indiana, has been sentenced to 76 months in federal prison after pleading guilty to bank robbery and attempted bank robbery while on supervised release for a previous heroin trafficking conviction.
According to court documents, on October 25, 2022, at approximately 9:30 a.m., Hunt entered a Chase Bank in Speedway, Indiana, approached the bank teller and gave her a note demanding that she put money in the bag, and if she did no one would get hurt. In response, the teller pressed her panic button alarm and walked away from her station. Hunt left the bank without receiving any money.
An hour later, Hunt entered the Regions Bank located at 86th Street in Indianapolis. Again, she approached the bank teller and gave her a note demanding that she put the money in the bag so no one will get hurt. After receiving the note, the teller gave Hunt $750 in cash.
As she left the Regions Bank, an employee saw her get into the back seat of a maroon Honda Accord with body damage and a busted taillight. FBI agents located the getaway car approximately an hour later and arrested her. During questioning, Hunt admitted to the attempted robbery of the Chase Bank and the robbery of the Regions Bank.
Hunt was released from federal prison in March 2022, after serving a 10-year sentence for heroin trafficking. She was sentenced to 30 months in prison for violating the terms of her supervised release.
U.S. Attorney for the Southern District of Indiana, Zachary A. Myers and Special Agent in Charge of the FBI’s Indianapolis Field Office Herbert J. Stapleton, made the announcement.
“Robbing banks won’t get you some quick cash, it will get you time in federal prison,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “It is especially important to hold repeat offenders accountable, to protect the public from their ongoing refusal to abide by our laws. Thanks to the quick investigative work of the FBI, this defendant has been held accountable for her decision to rob and intimidate innocent bank employees simply doing their jobs.”
This case was investigated by the FBI. The sentence was imposed by U.S. District Court Chief Judge, Tanya Walton Pratt. Judge Pratt also ordered that Hunt be supervised by the U.S. Probation Office for 3 years following her release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Jeremy C. Fugate, who prosecuted this case.
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Wayne County Sex Offender Sentenced to Prison for Child Pornography CrimeRead the Press Release
HUNTINGTON, W.Va. – David Lee Pinson, 41, of Ceredo, was sentenced today to six years and eight months in prison, to be followed by five years of supervised release, for possession of prepubescent child pornography.
According to court documents and statements made in court, Pinson admitted to uploading several images and videos of child pornography to his Google Photos account on May 28, 2022, in Ceredo. One of the videos depicts a prepubescent boy and girl engaging in sexual intercourse and sexually explicit conduct.
Pinson further admitted to possessing six images and 332 videos of child pornography on a memory card on August 16, 2022, and to viewing the images using his cell phone. Pinson also admitted that 44 of the images and videos depict known child victims, and that some of the images depict infants and toddlers.
Pinson was previously convicted of possession of child erotica in Wayne County Circuit Court on August 28, 2020.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI).
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Julie M. White and Andrew J. Tessman prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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-173.
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Violent Drug Dealer and Gang Member Sentenced to More Than 16 Years in PrisonRead the Press Release
NEW BERN, N.C. – A Dunn man was sentenced today to 199 months in prison for trafficking heroin and fentanyl. Oshea Massey, 25, pled guilty to the charges. Massey has been a validated member of the United Blood Nation street gang.
According to court documents and other information presented in court, Massey was a leader of a violent United Nation Blood street gang responsible for at least 10 shootings from 2019 to 2021. These shootings were typically related to territorial disputes, attempted armed robberies, or intimidation and retaliation. Law enforcement made seven controlled purchases of heroin and fentanyl from Massey between January and March of 2021. These purchases were made after Massey was identified as having sold another defendant varying amounts of heroin over a two-year period. During the investigation, others also identified Massey as a heroin dealer. Much of the heroin that was distributed by Massey also tested positive for fentanyl.
A traffic stop was conducted on a vehicle occupied by Massey to serve an arrest warrant for state charges in May 2021. A search of the vehicle found marijuana, cash, a receipt with an off-white powdery substance and a handgun near Massey’s leg. A subsequent search of Massey’s residence found 3.1 grams of heroin.
“It is through partnerships with surrounding local and federal agencies such as ATF and the U.S. Attorney’s Office that we can identify and convict violent, drug dealing gang leaders who are attempting to destroy our communities and youth,” said Harnett County Sheriff Wayne Coats. “Oshea Massey was a violent criminal in Harnett County who will now spend many years in prison.”
"This is another great example of ATF agents partnering with the Sheriff to ensure safer communities within Johnston County," said Sheriff Steve Bizzell. "We value the working relationship we have with the ATF and the U.S. Attorney’s office and will continue to aggressively pursue and remove drug dealers and felons that are in possession of firearms from our neighborhoods."
Massey pled guilty to conspiracy to distribute with intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl and distribution of a quantity of fentanyl. Massey was previously convicted on felony burglary (2013) and felony larceny (2015) charges. In 2016, he was convicted of possession of firearm by a felon. Massey also faces state charges for drug trafficking for offenses that allegedly occurred in 2018 and 2019.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Dunn Police Department and the Johnston and Harnett County Sheriffs’ Offices investigated the case and Assistant U.S. Attorney Tyler Lemons 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. 5:21-CR-00240-FL.
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United States Settles Kickback Allegations with BioTek reMEDys Inc., Chaitanya Gadde and Dr. David TabbyRead the Press Release
BioTek reMEDys Inc. (BioTek), located in New Castle, Delaware, and its chief executive officer, Chaitanya Gadde, have agreed collectively to pay $20 million based on their ability to pay to resolve allegations that they violated the False Claims Act by paying kickbacks to patients and physicians to protect its revenue stream.
When a Medicare beneficiary obtains a prescription drug covered by Medicare, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance or a deductible (collectively copays). Congress included copay requirements in the Medicare program in part to serve as a check on health care costs. The Federal Anti-Kickback Statute prohibits the offering, paying, soliciting or accepting, directly or indirectly, of any remuneration – which includes money or any other thing of value – to refer or arrange for the referral of items or services payable by any federal health care program. This prohibition extends to companies that routinely waive the copays of Medicare patients without determination of financial need. The Anti-Kickback Statute also extends to the payment of remuneration to physicians in exchange for patient referrals.
The government alleged that, from at least August 2015 through May 2020, BioTek, a specialty pharmacy that offers drugs and infusion services, routinely waived the copayments of Medicare and TRICARE patients to induce those patients to purchase its drugs and services. Many of the specialty drugs offered by BioTek were expensive and required patients to pay large copays. The government alleged that BioTek sought to avoid deterring patients from purchasing its drugs and services by engaging in a scheme, orchestrated and implemented by Gadde and others, to routinely waive these large copays, without regard for whether the patients were experiencing financial hardship.
Today’s settlement also resolves allegations that BioTek provided remuneration in the form of gifts, dinners and free administrative and clinical support services to physicians – in particular Dr. David Tabby, who operated a neurology practice in Bala Cynwyd, Pennsylvania – to induce those physicians to refer patients to BioTek. The government also alleged that Dr. Tabby knowingly solicited and accepted this remuneration in exchange for referring numerous patients to BioTek. Dr. Tabby has separately paid $480,000 to settle these allegations, based on his ability to pay.
“Participants in federal health care programs may not offer improper inducements to physicians or patients to generate business,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement reflects the government’s continuing commitment to protect the integrity of these programs and the healthcare decisions made by and on behalf of beneficiaries.”
“BioTek allegedly provided improper physician inducements and covered up kickbacks for patient referrals by waiving co-pays,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania (EDPA). “These improper and corrupt business practices will not be tolerated in this District. BioTek’s alleged scheme, orchestrated and implemented by Gadde, Dr. Tabby, and others, to routinely waive these copays – without regard for whether the patients were experiencing financial hardship – ensured a steady revenue stream for BioTek and undermined patient care to citizens of this District. EDPA will continue to invest itself in the pursuit of health care providers who violate the law for personal gain.”
“The Anti-Kickback Statute protects the financial integrity of federal healthcare programs and helps ensure that decisions about patient treatment are made on the basis of sound medical judgment rather than providers’ financial interests,” said U.S. Attorney David C. Weiss for the District of Delaware. “Kickbacks not only increase healthcare costs for all beneficiaries, they also violate the trust of patients. My office and the rest of the department will continue to pursue healthcare providers who put self-interest ahead of patient care and compliance with the law.”
“Kickbacks impose hidden costs on the health care system and compromise medical decision-making,” said Special Agent in Charge Maureen R. Dixon for the Department of Health and Human Services Office of the Inspector General (HHS-OIG). “Alongside our law enforcement partners, HHS-OIG is committed to safeguarding the integrity of federal health care programs by, in part, holding individuals who unlawfully bill the programs accountable for their actions."
“The settlement agreement announced today demonstrates our ongoing commitment to work with our law enforcement partners to investigate healthcare fraud and protect TRICARE, the healthcare system for military members and their dependents,” stated Special Agent in Charge Patrick J. Hegarty of the Defense Criminal Investigative Service, the law enforcement arm of the Department of Defense Office of Inspector General. “When health care companies pay physicians and submit false claims for improper referrals, they undermine the integrity of TRICARE and place an unnecessary financial burden on the program.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by former BioTek employees Shantae M. Wyatt and Latoya Sparrow. Under those provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery. Wyatt and Sparrow will receive $4 million as their share of the settlement with BioTek and Gadde, and $91,200 as their share of the settlement with Dr. Tabby. The qui tam case is captioned United States of America ex rel. Wyatt et al. v. BioTek reMEDys, Inc., No. 19-6069 (EDPA).
The resolutions obtained in this matter were the result of a coordinated effort among the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the U.S. Attorney’s Office for the District of Delaware, the HHS-OIG, the Office of Inspector General for the Office of Personnel Management, and the Defense Criminal Investigative Service.
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 Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
The matter was handled by Senior Trial Counsel Jennifer Cihon and Financial Analyst Craig Yamaoka of the Civil Division’s Commercial Litigation Branch, U.S. Attorney Jacqueline Romero, Assistant U.S. Attorneys Charlene Fullmer and Judith Amorosa, and Auditor George Niedzwicki for the Eastern District of Pennsylvania, and Assistant U.S. Attorney Dylan Steinberg for the District of Delaware.
The claims asserted by the United States are allegations only and there has been no determination of liability.
SettlementUnion County Man Admits Role in Conspiracy to Target Asian Small Business Owners in Residential BurglariesRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man today admitted his role in a conspiracy that targeted residences belonging to Asian small business owners, U.S. Attorney Philip R. Sellinger announced.
Kevin Jackson, 57, of Rahway, New Jersey, pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to an information charging him with one count of conspiracy to commit interstate transportation of stolen property.
According to documents filed in this case and statements made in court:
From Dec. 2, 2016, to March 20, 2019, Jackson participated in a conspiracy to burglarize the residences of certain Asian small business owners living in New Jersey, New York, Pennsylvania, and Delaware, stealing large sums of money, valuable jewelry, and other items and transporting the stolen goods in interstate commerce, including to residences in New Jersey and Pennsylvania.
The charge of conspiracy to commit interstate transportation of stolen property carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the amount of money involved in the offense, whichever is greatest. Sentencing is scheduled for Feb. 13, 2024.
U.S. Attorney Sellinger credited FBI Newark’s Transnational Organized Crime Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s guilty plea. He also thanked the South Plainfield Police Department, the Middlesex County Prosecutor’s Office, the New Jersey State Police, the Port Authority of New York and New Jersey, the U.S. Department of Labor, the U.S. Department of State, the Drug Enforcement Administration, the U.S. Customs and Border Protection, the U.S. Department of Transportation, the U.S. Postal Inspection Service, the Union County Prosecutor’s Office, and the Bernards Township, Bethlehem Township, Cherry Hill, Cinnaminson, Clark, Colonial Regional, Cranford, Delaware State Police-Troop 2, Delran, Edison, East Brunswick, East Hanover, Eatontown, Elizabeth, Essex County Sheriff’s Office-Bureau of Narcotics, Evesham Township, Exeter Township, Fair Lawn, Forks Township, Fort Lee, Franklin Township, Glassboro, Gloucester Township, Hackensack, Haverstraw, Hazlet, Highland Park, Hillside, Hillsborough Township, Howell Township, Jackson, Kenilworth, Lawrence Township, Linden, Lyndhurst, Mahwah, Marlboro Township, Maywood, Middletown, Montgomery County, Montville, Morris Township, Mount Laurel, Mountainside, New Castle County, New Providence, New York Police Department’s 105th Detective Squad, North Brunswick, North Plainfield, Old Bridge, Paramus, Parsippany, Phillipsburg, Piscataway, Pocono Mountain Regional, Pocono Township, Raritan, Roselle Park, Sayreville, Somerville, South Brunswick, South River, South Whitehall Township, Spotswood, Town of Tuxedo, Tinton Falls, Toms River, Township of Ocean, Union, Upper Macungie Township, Wall Township, Warren, Washington Township, Watchung, Westfield, Whitehall Township, and Woodbridge Township police departments.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the U.S. Attorney’s Office OCDETF/Narcotics Unit in Newark.
jackson.information.pdfTwo Men Sentenced to Federal Prison for Defrauding Their Employer Out of over $2 Million in Connection with the Sale of Chicken Frame ProductsRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that William Ross Hickman, 49, of Arcadia, Louisiana, and Brian K. Whiteman, 48, of Haughton, were sentenced today on fraud charges.
United States District Judge Elizabeth E. Foote sentenced Hickman to 52 months in prison, followed by 3 years of supervised release. Hickman was also ordered to pay restitution in the amount of $2,693,221.
Whiteman was sentenced to 20 months in prison, followed by 3 years of supervised release. In addition, he was ordered to pay restitution in the amount of $2,183,949.
Hickman and Whiteman participated in a scheme to defraud which began prior to 2018 and involved Raeford Farms of Louisiana, LLC (Raeford Farms), where Hickman was employed as the Sales Manager and Whiteman was as the Assistant Sales Manager of their Arcadia production plant. Raeford Farms sells various products to include fresh and frozen chicken, and chicken frames. A chicken frame is the core of the chicken that remains after processing the breasts, thighs, wings, and legs. Hickman negotiated the sale of these chicken products seeking the highest possible return when selling them.
While employed at Raeford Farms, Hickman developed a scheme to fraudulently divert business from Raeford Farms by using Group 7792 as an intermediary to purchase chicken frames from Raeford Farms. Hickman used his position as Sales Manager to provide favorable sales terms to other entities to the detriment of Raeford Farms. Hickman had a pre-arranged agreement with an unnamed individual and his corporation to sell the chicken frames to Heritage Food Sales (Heritage), which was another company controlled by Hickman. Heritage paid Group 7792 a guaranteed return for each transaction but never took possession of the chicken frames or added anything of value to the transaction. Hickman would then sell the same chicken frames to a poultry wholesaler in Chattanooga, TN for profit.
To further the scheme to defraud, Hickman and others acting in concert with him, sent invoices by email from Arcadia, Louisiana, through interstate commerce, for Heritage to receive payment for the chicken frames. Hickman and Whiteman conspired together to conceal the involvement of Heritage from Raeford Farms in these chicken frame transactions. As Assistant Sales Manager for Raeford Farms, Whiteman was responsible for tracking inventory and the details regarding all shipments. Whiteman provided this type of information to Hickman to further the conspiracy to defraud in order to get a higher price for chicken frame loads sold by Heritage. In exchange for his participation in the conspiracy to defraud, Whiteman understood and agreed with Hickman that Heritage would pay him through his own business entity, All Trade Enterprise, LLC (All Trade). Hickman would pay Whiteman a monthly commission through All Trade and occasionally to him personally. The transactions conducted during the time period of this investigation resulted in a loss of over $2 million to Raeford Farms.
Hickman and Whiteman each pleaded guilty on March 8, 2023, to conspiracy to commit fraud against the United States.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Alexander C. Van Hook, Special Counsel to the U.S. Attorney, and Assistant U.S. Attorney Tennille M. Gilreath.
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Two German Nationals Charged with Enticement and Sexual Abuse of A MinorRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today the unsealing of a Complaint charging THOMAS ALEXANDER BRANDENSTEIN and JOHN-PHILIPP PIEHL-BRANDENSTEIN with enticing a 15-year-old victim (the “Minor Victim”) to engage in sexual activity and then traveling across state lines in order to engage in illicit sexual activity with the Minor Victim. BRANDENSTEIN was arrested on September 29, 2023, in Queens, New York, and was presented today in federal court before U.S. Magistrate Judge Stewart D. Aaron. PIEHL-BRANDENSTEIN remains at large.
U.S. Attorney Damian Williams said: “As alleged, Thomas Alexander Brandenstein and John-Philipp Piehl-Brandenstein preyed upon a 15-year-old victim for sex and then traveled from Germany to the United States, where they met with the victim and engaged in illegal sexual acts at a Manhattan hotel. My Office is committed to keeping our borders safe from sexual predators, and thanks to the hard work of our law enforcement partners and the career prosecutors of this Office, Brandenstein and Piehl-Brandenstein have now been charged for their egregious conduct.”
HSI Special Agent in Charge Ivan J. Arvelo said: “The defendants are alleged to have traveled thousands of miles to commit unimaginable crimes against an underage victim. These charges serve as notice to anyone contemplating such heinous acts that we will take every measure necessary to safeguard the children of New York. HSI New York is proud of the collaboration with our federal partners to charge these predators before they could inflict more trauma on young New Yorkers.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:[1]
From March 2023 through July 2023, BRANDENSTEIN and PIEHL-BRANDENSTEIN, who are German nationals, enticed the Minor Victim, who was 15 years old at the time, to engage in illegal sexual activity. While in Germany, BRANDENSTEIN used internet-enabled messaging applications to send sexually explicit communications to the Minor Victim, including an image of a naked male in which the male’s penis was exposed. BRANDENSTEIN also sent sexually explicit videos to the Minor Victim, which depicted BRANDENSTEIN lying in bed, blowing kisses, and exposing his penis and masturbating, among other things. BRANDENSTEIN further communicated with the Minor Victim over these messaging applications about his plans to travel to New York with PIEHL-BRANDENSTEIN, sending the Minor Victim a video message depicting the two men on an airplane and writing, “next stop, New York.”
In June 2023, BRANDENSTEIN and PIEHL-BRANDENSTEIN traveled from Germany to Florida and then New York, where they met with the Minor Victim to engage in illegal sexual activity at a Manhattan hotel (the “Hotel”). Between July 5, 2023, and July 13, 2023, BRANDENSTEIN and PIEHL-BRANDENSTEIN reserved a room at the Hotel (the “Room”). BRANDENSTEIN brought the Minor Victim to the Room and BRANDENSTEIN and PIEHL-BRANDENSTEIN engaged in illegal sexual activity with the Minor Victim. Some of that illegal sexual activity was video recorded. On July 13, 2023, BRANDENSTEIN and PIEHL-BRANDENSTEIN departed from New York and returned to Germany.
There may be more victims of this alleged conduct. If you have information to report about sexual abuse or sexual assault perpetrated by THOMAS ALEXANDER BRANDENSTEIN or JOHN-PHILIPP PIEHL-BRANDENSTEIN, contact HSI through its toll-free Tip Line at 1-866-DHS-2423 or [email protected] and reference this case. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing-impaired users can call TTY 802-872-6196.
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BRANDENSTEIN, 57, of Berlin, Germany, and PIEHL-BRANDENSTEIN, 38, of Berlin, Germany, are charged with one count of enticing a minor victim to engage in illegal sexual activity, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison, and one count of travel with intent to engage in illicit sexual conduct, which carries a maximum sentence of 30 years in prison.
The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding investigative efforts of HSI and the New York City Police Department. He added that the investigation is ongoing.
The prosecution of this case is being handled by the Office’s Civil Rights Unit in the Criminal Division. Assistant U.S. Attorney Mitzi S. Steiner is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two Essex County Men Charged with Unlicensed Firearms TraffickingRead the Press Release
NEWARK, N.J. – Two Essex County, New Jersey, men were charged today with unlicensed dealing in firearms and trafficking firearms in interstate commerce; one of the defendants was also charged with conspiracy to sell fentanyl, U.S. Attorney Philip R. Sellinger announced.
Carlo M. De Leon De Jesus, 26, and Victor Gonzalez, 36, both of Newark, are each charged by complaint with one count of dealing firearms without a license, one count of transferring firearms to an out-of-state resident, and one count of firearms trafficking. De Jesus is also charged with one count of conspiracy to distribute fentanyl. They appeared before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and were detained.
According to documents filed in these cases and statements made in court:
According to documents filed in this case and statements made in court:
From July 2023 to September 2023, De Jesus sold four firearms, including two rifles and a semi-automatic handgun, as well as a substance that tested positive for fentanyl. Gonzalez sold a firearm with no serial number in September 2023.
The counts of dealing firearms without a license and transferring firearms to an out-of-state resident are punishable by a maximum of five years in prison and a fine of up to $250,000, or twice the gross pecuniary gain to the defendant or twice the gross pecuniary loss to victim. The count of count of firearms trafficking is punishable by up to 15 years in prison and a fine of up to a fine of up to $250,000, or twice the gross pecuniary gain to the defendant or twice the gross pecuniary loss to victim. The count of conspiracy to distribute fentanyl is punishable by a maximum of 20 years in prison and a fine of up to $1 million.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Bryan Miller; special agents of the Drug Enforcement Administration in Newark, under the direction of Special Agent in Charge Cheryl Ortiz; and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz, with the investigation leading to charges.
The government is represented by Assistant U.S. Attorney Barry O’Connell of the Criminal Division’s Organized Crime Drug Enforcement Task Force (OCDETF)/Narcotics Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
gonzalez.complaint.pdf dejesus.complaint.pdfTwo Anne Arundel County Men, Including Department of Defense Deputy Chief, Charged with Facilitating Dog Fighting RingRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Frederick Douglass Moorefield, Jr., age 62, of Arnold, Maryland, and Mario Damon Flythe, age 49, of Glen Burnie, Maryland with promoting and furthering animal fighting venture. The criminal complaint was filed on September 21, 2023, and was unsealed at the defendants’ initial appearances on September 28, 2023. At their initial appearance, U.S. Magistrate Judge J. Mark Coulson ordered that the defendants be released pending trial under the supervision of U.S. Pretrial Services.
The criminal complaint was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Wayne A. Jacobs of the Federal Bureau of Investigation, Washington Field Office, Criminal and Cyber Division; Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture Office of Inspector General; Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service - Mid-Atlantic Field Office; U.S. Marshal for Maryland Johnny Hughes; and Anne Arundel County Police Chief Amal E. Awad.
According to the affidavit filed in support of the complaint, Moorefield, a Deputy Chief Information Officer for Command, Control, and Communications, for Office of the Secretary of Defense, and Flythe used an encrypted messaging application to communicate with individuals throughout the United States to discuss dogfighting. Moorefield used the name “Geehad Kennels” and Flythe used the name “Razor Sharp Kennels” to identify their respective dogfighting operations.
For example, as detailed in the affidavit, Moorefield, Flythe and their associates used the encrypted messaging application to discuss how to train dogs for illegal dogfighting, exchanged videos about dogfighting, and arranged and coordinated dogfights. Moorefield and Flythe also discussed betting on dogfighting, discussed dogs that died as a result of dogfighting, and circulated media reports about dogfighters who had been caught by law enforcement. As further alleged in the affidavit, Moorefield and others also discussed how to conceal their conduct from law enforcement.
On September 6, 2023, law enforcement officers executed search warrants at Moorefield and Flythe’s residences in Maryland. Following the execution of these warrants, twelve dogs were recovered and seized by the federal government. Law enforcement also recovered veterinary steroids, training schedules, a carpet that appeared to be stained with blood, and a weighted dog vest with a patch reading “Geehad Kennels.” In addition, law enforcement officers seized a device consisting of an electrical plug and jumper cables, which the affidavit alleges is consistent with devices used to execute dogs that lose dogfights.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings. If convicted, the defendants each face a maximum sentence of five years in federal prison for possessing, training, or transporting animals for participation in an animal fighting venture. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Erek L. Barron commended the FBI, the United States Department of Agriculture – Office of the Inspector General, the Defense Criminal Investigative Service, the U.S. Marshals Service, the Anne Arundel County Police Department, Anne Arundel County Animal Control, and thanked the United States Attorney’s Office for the Eastern District of Virginia for their valuable assistance in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Alexander Levin and Darryl Tarver, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Texas Man Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – RAFAEL MOLINA, age 47, a resident of Edinburg, Texas was sentenced on September 20, 2023 by Chief United States District Judge Nannette Jolivette Brown to one hundred fifty-four (154) months imprisonment, five years of supervised release, and $200.00 in mandatory special assessment fees after pleading guilty to a superseding bill of information charging him with conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine hydrochloride, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(A), and 846, and interstate transportation in aid of racketeering, in violation of Title 18, United States Code, Sections 1952(a)(3) and 1953(a)(3)(A), announced U.S. Attorney Duane A. Evans.
According to court documents, in July 2018, Special Agents with the Drug Enforcement Administration (DEA) identified MOLINA as a Mexican-based drug trafficker who supplied kilogram quantities of cocaine hydrochloride to customers in the Lafourche Parish area. On February 9, 2018, agents learned that MOLINA was bound for Thibodaux, Louisiana to deliver two kilograms of cocaine hydrochloride to a customer the following day. Agents and officers established surveillance in Thibodaux and observed Molina driving a white pickup truck, as well as two individuals, identified as Gustavo Balderas and Michael Garza, in a black Chrysler 300, at a motel. Balderas and Garza entered the truck driven by Molina, and they drove away from the motel. Officers then stopped the truck, searched both vehicles, and located an ice chest containing two kilograms of cocaine hydrochloride, in the Chrysler 300.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Drug Enforcement Administration, Office of Homeland Security Investigations, Terrebonne Parish Sheriff’s Office, and the Lafourche Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney André Jones of the Narcotics Unit.
Tampa Man Charged with Possession and Distribution of Methamphetamine, Fentanyl, and HeroinRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Shane Valmont (43, Tampa) with possession and distribution of methamphetamine, fentanyl, and heroin. If convicted, Valmont faces a minimum mandatory penalty of 10 years, up to life, in federal prison on each count. The indictment also notifies Valmont that the United States intends to forfeit any assets, which are alleged to be traceable to proceeds of the offense.
According to the indictment, Valmont was involved in two deliveries of controlled substances in Pinellas County. On December 27, 2022, Valmont distributed 50 grams or more of methamphetamine. On January 17, 2023, Valmont distributed 40 grams or more of fentanyl and heroin.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration and the Clearwater Police Department. It will be prosecuted by Assistant United States Attorney Maria Guzman.
Tampa Armed Career Criminal Sentenced to 15 Years’ Imprisonment for Possessing FirearmRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell today sentenced Deandre Riviera Lopez (33, Tampa) to 15 years in federal prison for possessing a firearm as a convicted felon. Lopez had pleaded guilty on June 29, 2023.
According to court documents, on May 15, 2022, officers from the Tampa Police Department (TPD) arrested Lopez on an active felony warrant from the Thirteenth Judicial Circuit in Hillsborough County. During Lopez’s arrest, the officers observed Lopez blade his body and appear to reach for an item near his waist. A search of Lopez revealed a Century Arms “Canik” TP9 Elite Combat semi-automatic pistol tucked near Lopez’s right waist. The firearm was loaded with 14 rounds of ammunition. Lopez later admitted that he always carried a firearm for personal protection and that he had owned the pistol for several months.
At the time of his arrest, Lopez had multiple prior felony convictions and was therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by Tampa Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys David W.A. Chee and Samantha J. Newman.
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.
Stanford University Agrees to Pay $1.9 Million to Resolve Allegations that it Failed to Disclose Foreign Research Support in Federal Grant ProposalsRead the Press Release
Baltimore, Maryland – Stanford University, located in Palo Alto, California, has agreed to pay $1.9 million to resolve allegations that it violated the False Claims Act by submitting proposals for federal research grants that failed to disclose current and pending support that twelve Stanford faculty members were receiving from foreign sources.
The settlement was announced by United States Attorney for the District of Maryland Erek L. Barron and Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division.
The settlement relates to research grants that Stanford received between 2015 and 2020 from five federal agencies: The Departments of the Army, Navy and Air Force, the National Aeronautics and Space Administration (NASA) and the National Science Foundation (NSF). All of these agencies require grant applicants to disclose all current and pending support received by the institution and the principal investigators (PIs) and co-PIs on the grant proposals. Current and pending support is defined as all resources from whatever source — including foreign government sources — that are made available to researchers in support of and/or related to their research endeavors. The United States alleged that on sixteen grant proposals submitted to the Army, Navy, NASA and NSF, Stanford knowingly failed to disclose current and pending foreign funding that eleven Stanford PIs and co-PIs had received or expected to receive in direct support of their research. The United States further alleged that Stanford knowingly failed to disclose to the Army, Air Force and NSF that a Stanford professor received research funding in connection with his employment at Fudan University, a foreign public university and from a foreign government’s national science foundation. In connection with the settlement, Stanford has agreed to work with the NSF Office of the Chief of Research Security Strategy and Policy on best practices in the areas identified by the United States.
“Complete and accurate disclosures by principal investigators and universities of current and pending support are essential to federal agencies that make decisions on awarding federal grants,” said Erek Barron, United States Attorney for the District of Maryland. “Those individuals and universities that knowingly fail to do so skew the grant awarding process in their favor and will be held accountable.”
“Universities and their researchers must disclose all sources of current and pending support, including any foreign support, in federal research grant applications,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to ensure that grant applicants submit complete and truthful disclosures, so the government has full transparency into the applicant’s funding sources.”
“The National Science Foundation awards billions of dollars in grants each year to promote promising scientific research. NSF and other federal funding agencies rely on grant recipients to accurately track the commitments of their personnel and fully disclose all funding sources. Stanford failed to disclose foreign funding in grant proposals submitted to multiple federal agencies. Full and accurate disclosures are essential to protect the interests of American taxpayers and ensure that federal funds are properly awarded to deserving institutions,” said NSF Inspector General Lerner. “We thank the Department of Justice, U.S. Attorney’s Office for the District of Maryland, and our investigative partners for their work in protecting the integrity of federal research.”
“This settlement is a prime example of our agents and partner law enforcement agencies pursuing those who do not disclose foreign government ties when entering into contracts with the U.S. Army,” said Acting Special Agent-in-Charge Michael Curran for the Department of the Army Criminal Investigation Division, Major Procurement Fraud Field Office. “It is imperative that when someone partners with the U.S. Army, they comply with all their obligations.”
“The failure of U.S. universities to disclose current or pending awards with foreign entities on research grant proposals submitted to the U.S. Government as required by law has the potential to threaten government interests,” said Assistant Director Thomas Cannizzo of the NCIS National Security Directorate. “Through the efforts of the National Science Foundation with support from NCIS and additional law enforcement partners, sensitive research funded by the U.S. military was protected from disclosure to foreign interests.”
“Protecting research and development programs funded by taxpayer dollars is a top priority for us,” said Acting Assistant Inspector General for Investigations Michael Graham at the NASA Office of Inspector General (OIG). “The settlement agreement with Stanford University is the result of a joint effort to guard against fraud, waste and abuse in government grants. This case demonstrates the commitment of NASA OIG and our partners to work with the U.S. Attorney’s Office to safeguard public funds.”
“This settlement demonstrates the Office of Procurement Fraud’s determination and commitment to identify and hold accountable those who conceal foreign affiliations to obtain research funding,” said Special Agent in Charge William W. Richards for the Air Force Office of Special Investigations (AFOSI). “AFOSI, along with our law enforcement and prosecutorial partners, will continue to work tirelessly to protect the integrity of the Federal grant process."
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 United States Attorney’s Office for the District of Maryland, with assistance from Army CID, NCIS, AFOSI, NSF OIG, NASA OIG and the Department of Education.
The matter was investigated by Assistant U.S. Attorney Thomas F. Corcoran and by Trial Attorney Sarah E. Loucks of the Civil Division’s Commercial Litigation Branch (Fraud Section).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Stanford University Agrees to Pay $1.9 Million to Resolve Allegations That it Failed to Disclose Foreign Research Support in Federal Grant ProposalsRead the Press Release
Stanford University, located in Palo Alto, California, has agreed to pay $1.9 million to resolve allegations that it violated the False Claims Act by submitting proposals for federal research grants that failed to disclose current and pending support that 12 Stanford faculty members were receiving from foreign sources.
The settlement relates to research grants that Stanford received between 2015 and 2020 from five federal agencies: the Departments of the Army, Navy and Air Force, the National Aeronautics and Space Administration (NASA) and the National Science Foundation (NSF). All of these agencies require grant applicants to disclose all current and pending support received by the institution and the principal investigators (PIs) and co-PIs on the grant proposals. Current and pending support is defined as all resources from whatever source — including foreign government sources — that are made available to researchers in support of and/or related to their research endeavors.
The United States alleged that on 16 grant proposals submitted to the Army, Navy, NASA and NSF, Stanford knowingly failed to disclose current and pending foreign funding that 11 Stanford PIs and co-PIs had received or expected to receive in direct support of their research. The United States further alleged that Stanford knowingly failed to disclose to the Army, Air Force and NSF that a Stanford professor received research funding in connection with his employment at Fudan University, a foreign public university and from a foreign government’s national science foundation. In connection with the settlement, Stanford has agreed to work with the NSF Office of the Chief of Research Security Strategy and Policy on best practices in the areas identified by the United States.
“Universities and their researchers must disclose all sources of current and pending support, including any foreign support, in federal research grant applications,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to ensure that grant applicants submit complete and truthful disclosures, so the government has full transparency into the applicant’s funding sources.”
“Complete and accurate disclosures by principal investigators and universities of current and pending support are essential to federal agencies that make decisions on awarding federal grants,” said U.S. Attorney Erek Barron for the District of Maryland. “Those individuals and universities that knowingly fail to do so skew the grant awarding process in their favor and will be held accountable.”
“The National Science Foundation awards billions of dollars in grants each year to promote promising scientific research. NSF and other federal funding agencies rely on grant recipients to accurately track the commitments of their personnel and fully disclose all funding sources. Stanford failed to disclose foreign funding in grant proposals submitted to multiple federal agencies. Full and accurate disclosures are essential to protect the interests of American taxpayers and ensure that federal funds are properly awarded to deserving institutions,” said NSF Inspector General Allison C. Lerner. “We thank the Department of Justice, U.S. Attorney’s Office for the District of Maryland and our investigative partners for their work in protecting the integrity of federal research.”
“This settlement is a prime example of our agents and partner law enforcement agencies pursuing those who do not disclose foreign government ties when entering into contracts with the U.S. Army,” said Acting Special Agent in Charge Michael Curran of the Department of the Army Criminal Investigation Division, Major Procurement Fraud Field Office. “It is imperative that when someone partners with the U.S. Army, they comply with all their obligations.”
“The failure of U.S. universities to disclose current or pending awards with foreign entities on research grant proposals submitted to the U.S. government as required by law has the potential to threaten government interests,” said Assistant Director Thomas Cannizzo of the Naval Criminal Investigative Service (NCIS) National Security Directorate. “Through the efforts of the National Science Foundation with support from NCIS and additional law enforcement partners, sensitive research funded by the U.S. military was protected from disclosure to foreign interests.”
“Protecting research and development programs funded by taxpayer dollars is a top priority for us,” said Acting Assistant Inspector General for Investigations Michael Graham of the NASA Office of Inspector General (NASA-OIG). “The settlement agreement with Stanford University is the result of a joint effort to guard against fraud, waste and abuse in government grants. This case demonstrates the commitment of NASA-OIG and our partners to work with the U.S. Attorney’s Office to safeguard public funds.”
“This settlement demonstrates the Office of Procurement Fraud’s determination and commitment to identify and hold accountable those who conceal foreign affiliations to obtain research funding,” said Special Agent in Charge William W. Richards of the Air Force Office of Special Investigations (AFOSI). “AFOSI, along with our law enforcement and prosecutorial partners, will continue to work tirelessly to protect the integrity of the federal grant process."
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 District of Maryland, with assistance from Army CID, NCIS, AFOSI, NSF OIG, NASA OIG and the Department of Education.
The matter was investigated by Trial Attorney Sarah E. Loucks of the Civil Division’s Commercial Litigation Branch (Fraud Section) and Assistant U.S. Attorney Thomas F. Corcoran for the District of Maryland.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
SettlementSouth Carolina Physician and Nephrology Practice Agree to Pay over $585,000 to Settle Laboratory Kickback AllegationsRead the Press Release
WASHINGTON – Moustafa Moustafa, M.D. and his medical practice, South Carolina Nephrology and Hypertension Center Inc., of Orangeburg and Bamberg, South Carolina, have agreed to pay $585,540 to resolve False Claims Act allegations that they received illegal kickbacks in violation of the Anti-Kickback Statute in return for referring patients for laboratory testing. Dr. Moustafa and his practice have agreed to cooperate with the Justice Department's investigations of, and litigation against, other participants in the alleged kickback schemes.
“Financial inducements to healthcare providers can influence medical decisions and undermine the integrity of public healthcare programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to hold accountable those who participate in kickback arrangements, including unlawful arrangements involving clinical laboratory testing.”
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The settlement announced today resolves allegations that Dr. Moustafa and his practice received kickbacks in violation of the Anti-Kickback Statute in return for Dr. Moustafa’s laboratory referrals and caused the submission of false or fraudulent claims to Medicare and TRICARE.
- Office Rent and Phlebotomy Kickbacks. From June 2017 to December 2021, Dr. Moustafa and his practice allegedly received thousands of dollars in remuneration disguised as purported office space rental and phlebotomy payments, paid monthly or in a lump sum money order, from a clinical laboratory in Anderson, South Carolina, in return for Dr. Moustafa’s laboratory referrals.
- Clinical Staff Kickbacks. From August 2020 to December 2022, Dr. Moustafa and his practice allegedly received from a clinical laboratory in Kenilworth, New Jersey, remuneration in the form of free clinical staff to provide services to Dr. Moustafa’s practice unrelated to that laboratory, in return for Dr. Moustafa’s referrals for laboratory testing.
- Consulting and Medical Director Kickbacks. From September 2019 to March 2023, Dr. Moustafa allegedly received from marketing company Ralston Health Group Inc. (Ralston) thousands of dollars in remuneration disguised as consulting and medical director payments, paid monthly, in return for Dr. Moustafa ordering clinical laboratory services from five laboratories. The settlement resolves allegations that Ralston kicked back to Dr. Moustafa a portion of the commissions those five laboratories paid to Ralston, in return for Dr. Moustafa ordering laboratory testing from those laboratories.
“Rooting out healthcare fraud is a priority in the District of South Carolina,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “Kickbacks raise costs for taxpayers and undermine our healthcare programs by leading to unnecessary medical services. We are committed to holding those who give and receive illegal kickbacks accountable.”
“Kickbacks have no place in our healthcare system,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Health care providers and clinical laboratories are on notice that benefits in exchange for referrals are improper, and may violate the Anti-Kickback Statute. We will continue to pursue those who enter into unlawful arrangements that waste taxpayer dollars and improperly influence healthcare providers’ medical judgments.”
“Healthcare providers who accept kickbacks can allow greed to influence their medical decision-making, putting patients and their healthcare programs at risk of harm,” said Special Agent in Charge Naomi Gruchacz of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work alongside our law enforcement partners to protect HHS programs from abuse and ensure that patient needs drive providers’ decisions.”
“Kickback schemes have no place in federal healthcare programs and will not be tolerated,” said Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “DCIS and our partner agencies continue to stand firm in our dedication to protect the integrity of these programs.”
The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the Districts of South Carolina and New Jersey, with assistance from the Federal Bureau of Investigation, HHS-OIG and DCIS. The settlement announced today was handled by Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section), Assistant U.S. Attorney Beth C. Warren for the District of South Carolina and Assistant U.S. Attorney Kruti Dharia for the District of New Jersey.
The government’s pursuit 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 Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Sanger Man Sentenced to 14 Years in Prison for Trafficking Fentanyl and Fentanyl Analogues in Operation Killer HighRead the Press Release
FRESNO, Calif. — Abel Lozano, 29, of Sanger, was sentenced today to 14 years in prison for possession with intent to distribute 400 grams or more of a mixture or substance containing detectible amount of fentanyl, 100 grams or more of a mixture or substance containing a detectable amount of fentanyl analogue, and 50 grams or more of actual methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, after a series of overdoses in the Fresno area caused by counterfeit oxycodone M30 tablets containing fentanyl, or M30s, an investigation began to find the drug dealers suppling the toxic pills. The investigation, named “Operation Killer High,” uncovered a large drug-trafficking ring led by Horacio Torrecillas Urias Jr., the self-proclaimed “M30 king of Fresno.”
According to court documents, in February 2022, investigators learned that Urias planned to deliver several thousand fentanyl pills to Lozano. Two days later, federal officers searched Lozano’s home and found about a kilogram of fentanyl analogue, over a kilogram of fentanyl mixture, about a kilogram of methamphetamine, over 3 kilograms of marijuana, and a small amount of cocaine. Lozano was interviewed and admitted that the drugs were his and that he was regularly buying and reselling them in large quantities, including to customers in other states.
Lozano and 17 others were indicted by a federal grand jury in 2022. Lozano is the first defendant to be sentenced. Marvin Carreno, 24, of Fresno, pleaded guilty today to possession with intent to distribute over 40 grams of fentanyl and is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Feb. 12, 2024.
Twelve co-defendants have previously pleaded guilty to fentanyl or cocaine distribution charges and are now awaiting sentencing.
- Henry Cox, 23, of Sanger;
- Justin Riddle, of Las Cruces, New Mexico,
- Erica Ramirez, of Fresno;
- Alejandro Guzman, of Fresno;
- Agustin Hernandez, of Fresno;
- Christian Harris-Blanchette, of Fresno;
- Oscar Jaramillo-Cortez, of Fresno;
- Jacob Valles, of Fresno;
- Cody Fyfe, of Fresno;
- Juan Valencia Jr., of Fresno;
- Amadeo Sarabia Jr., of Fresno; and
- Alex Garcia, of Fresno.
Charges are pending against the remaining four defendants: Horacio Torrecillas Urias Jr., Alma Garza, Brayan Cruz, and Victor Yair Torrecillas-Urias. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Fentanyl Overdose Resolution Team (FORT), an agency composed of officers from Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno and Clovis Police Departments. Assistant U.S. Attorneys Justin J. Gilio and Laurel J. Montoya are prosecuting the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Rhode Island Man Charged with Violating the Migratory Bird Treaty ActRead the Press Release
PROVIDENCE, RI – A Rhode Island man has been charged by way of a federal criminal information with violating the Migratory Bird Treaty Act, having allegedly shot at, injured, and /or killed Red-Tailed and Cooper hawks in and around his property in an effort to protect squirrels, announced United States Attorney Zachary A. Cunha.
It is alleged in charging documents that, between October 1, 2018, and April 18, 2021, Robert J. Ferreira, 64, of Portsmouth, repeatedly used a pump-action pellet air gun to shoot at hawks in his back yard. Ferreira is alleged to have told a U.S. Fish and Wildlife Service agent that he estimates that he shot at approximately 50-80 hawks, which he believed were a threat to squirrels that visited squirrel feeders on his property.
According to court documents, on various dates neighbors reported hearing popping sounds from the area of Ferreira’s property that were consistent with the firing of a weapon, and found approximately eight injured and deceased hawks on or near Ferreira’s property.
The Migratory Bird Treaty Act (MBTA) protects certain migratory birds, including the Red-Tailed hawk and Cooper hawk, and forbids hunting, capturing, or killing these birds unless authorized by permit.
Ferreira is charged by way of a federal criminal information with four counts of hunting, taking, killing, or attempting to kill migratory birds, a violation of the Migratory Bird Treaty Act. He is scheduled to appear for his arraignment on the information before a magistrate judge on October 12, 2023.
Hunting, taking, or killing, or attempting to kill migratory birds is a misdemeanor, punishable by up to 6 months of imprisonment and fine of up to $15,000. A federal criminal information is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Denise M. Barton.
The matter was investigated by U.S. Fish and Wildlife Service, Office of Law Enforcement.
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Rapid City Man Sentenced for Conspiring to Distribute MethamphetamineRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Rapid City, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on September 28, 2023.
Eugene Perez, 44, was sentenced to 11 years and five months in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Perez was indicted for Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person by a federal grand jury in January of 2022. He pleaded guilty on June 28, 2023.
The charge stems from Perez conspiring with others to distribute multiple pounds of methamphetamine in and around Rapid City between January 2018 and December 2021.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Unified Narcotics Enforcement Team, Pennington County Sheriff’s Office, South Dakota Department of Criminal Investigation, and the South Dakota Highway Patrol. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Perez was immediately remanded to the custody of the U.S. Marshals Service.
Project Safe Neighborhoods Investigation Nets More Than Five Kilos of Fentanyl Pills and Powder, Along with Commercial Pill PressesRead the Press Release
PROVIDENCE – Two Rhode Island men were arrested for drug trafficking and more than seven kilos of fentanyl pills and powder, and two commercial pill presses have been seized as the result of an ongoing Project Safe Neighborhoods Investigation into the trafficking of fentanyl pills, announced United States Attorney Zachary A. Cunha.
Jorge Pimentel, 33, of Cranston, and Matthew Jones, 29, of North Smithfield, have been charged by way of federal criminal complaints with conspiracy to distribute and conspiracy to possess with intent to distribute 400 grams or more of fentanyl; distribution of 400 grams or more of fentanyl; and possession with intent to distribute 400 grams or more of fentanyl. A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
It is alleged in charging documents that, as a result of an ongoing FBI Rhode Island Safe Streets Task Force investigation, on multiple occasions Pimentel arranged for the sale and delivery of thousands of fentanyl pills, some of which were delivered by Jones. In each instance, the pills were quickly seized by members of the task force.
In addition to the seizure of tens of thousands of fentanyl pills during the investigation, on September 28,2023, members of the Safe Street Task Force executed a court-authorized search of a storage unit in Pawtucket and seized approximately 5.7 kilos of fentanyl; 50 kilos of binding agents used in the production of fentanyl pills; two commercial pill presses; and a kilo press. Altogether, over seventy-five thousand fentanyl pills and over two kilograms of powder fentanyl have been seized in connection with this 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. In May 2021, the Justice 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 is being prosecuted by Assistant United States Attorneys Stacey A. Erickson and Milind M. Shah.
The matter is being investigated by the FBI Rhode Island Safe Streets Task Force consisting of agents and officers from the FBI, United States Marshals Service, Central Falls Police Department, Cranston Police Department, Pawtucket Police Department, Providence Police Department, West Warwick Police Department, Woonsocket Police Department, and Rhode Island State Police.
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Previously Deported Honduran Man Sentenced to 19 Months’ Imprisonment for Illegal Re-EntryRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Nicholas Heriberto Vallecillo-Tejeda, age 41, was sentenced on September 29, 2023, by U.S. District Court Judge Malachy Mannion, to 19 months’ imprisonment on the charge of illegal re-entry into the United States by a previously deported alien. Vallecillo-Tejeda was previously convicted of the offense after a two-day jury trial before Judge Mannion in April 2023.
According to United States Attorney Gerard M. Karam, Vallecillo-Tejeda was previously deported from the United States to Honduras in November 2008 and again in July 2009. He re-entered the United States again sometime after July 2009 without first obtaining legal permission to do so. Vallecillo-Tejeda was encountered in Schuylkill County, Pennsylvania, on September 5, 2020, when he was arrested by the Shenandoah Police Department on charges which eventually led to convictions for simple assault and weapons possession.
The matter was investigated by U.S. Immigration and Customs (ICE) Enforcement and Removal Operations (ERO). Assistant United States Attorneys Robert J. O’Hara and Brian J. Gallagher prosecuted the case.
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Pine Ridge Man Found Guilty at Jury TrialRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a jury has convicted JT Myore, age 36, of Pine Ridge, South Dakota, of Robbery, Carjacking, and Brandishing a Firearm During a Crime of Violence following a three-day jury trial in federal district court in Rapid City, South Dakota. The verdict was returned on September 27, 2023.
The charges carry a mandatory minimum of seven years in custody up to life, and/or a $250,000 fine, five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund for each count.
Myore was indicted by a federal grand jury in July of 2021. He was charged in connection with two separate incidents, and the first one occurred in August of 2019 and the second in May of 2021.
In August of 2019, Myore and a co-defendant brandished firearms in order to carjack a Ford Freestyle from another male in Pine Ridge. In May of 2021, Myore and his co-defendants forcibly assaulted a male in Pine Ridge in order to steal his Toyota Celica. The male sustained a broken arm and cuts and contusions to his head and face.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in federal court as opposed to State court.
This case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen prosecuted the case.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service.
Ottumwa Man and Woman Sentenced for Defrauding the Internal Revenue Service, Iowa Workforce Development, and Numerous CitizensRead the Press Release
Des Moines, IA – On September 29, 2023, Thein Maung, 47, of Ottumwa, was sentenced to twelve years in prison after pleading guilty to forty-nine fraud- and tax-related charges. Phyo Mi, 21, of Ottumwa, was sentenced to nine years in prison after a jury convicted her of sixteen fraud-related charges. In all, Maung and Mi’s fraud resulted in nearly $4 million in losses to the Internal Revenue Service, Iowa Workforce Development, and numerous Iowa citizens.
According to public court documents and evidence presented at trial, for several years, Maung and Mi ran a fraudulent tax-preparation business out of their family’s Ottumwa home. In exchange for a cash fee, Maung and Mi would prepare and file their customers’ tax returns. Maung and Mi primarily catered to immigrants and refugees who worked at meat-packing facilities in Iowa and who had little or no ability to read, write, or speak English.
Without their customers’ knowledge or approval, Maung and Mi included fraudulent items on their customers’ federal tax returns, like false claims for residential energy credits, business-expense deductions, or moving-expense deductions for members of the United States Armed Forces. The effect of Maung and Mi including fraudulent items on the tax documents was to increase the refunds their clients received and increase Maung and Mi’s customer base. In all, from 2018 to 2022, Maung and Mi caused over 1600 tax returns to be filed from their residence. Those returns claimed over $3.5 million in fraudulent residential energy credits.
It is estimated that from 2018 to 2022, Maung and Mi received over $200,000 in cash fees from their customers. In addition, on their customers’ returns, Maung and Mi sometimes directed that portions of the fraudulent refunds be sent to financial institution accounts accessible to Maung and Mi. As a result, Maung and Mi obtained nearly $50,000 in fraudulent tax refunds.
Maung and Mi also offered to help customers with applying for unemployment benefits from Iowa Workforce Development. Without their customers’ knowledge or approval, Maung and Mi submitted materials to Iowa Workforce Development directing that their customers’ benefits payments be sent to financial institution accounts that Maung and Mi had access to. Maung and Mi obtained nearly $70,000 in fraudulent unemployment insurance benefits payments be sent from Iowa Workforce Development to their accounts, instead of to eligible claimants.
At sentencing, Chief United States District Court Judge Stephanie M. Rose described Maung and Mi’s fraud as being elaborate and extensive, involving layers of subterfuge, and victimizing hundreds of vulnerable immigrants and refugees with little education and limited English fluency.
Following their prison terms, Maung and Mi will be on supervised release for three years. There is no parole in the federal system.
“This sentence should send a strong message to any return preparers who are looking to cheat innocent taxpayers and the U.S. government that a prison cell awaits them,” said Special Agent in Charge Thomas F. Murdock, IRS Criminal Investigation (CI), St. Louis Field Office. “Maung and Mi preyed on people who were vulnerable. CI special agents do not take this kind of fraud lightly. Our law enforcement partners worked diligently to help us bring these two to justice.”
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
The investigation was conducted by Internal Revenue Service Criminal Investigation and the Ottumwa Police Department. Assistant U.S. Attorneys Kyle Essley and Laura Roan prosecuted the case.
Ohio Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – Nathaniel Jarvis Kennard, 40, of South Point, Ohio, was sentenced today to six years and four months in prison, to be followed by three years of supervised release, for distribution of a quantity of fentanyl.
According to court documents and statements made in court, on September 12, 2022, Kennard sold approximately 20 grams of fentanyl for $1,000 to a confidential informant at a location on U.S. Route 60 in Huntington. Kennard admitted to that transaction and further admitted to five additional transactions with the confidential informant between July 20 and September 21, 2022. Kennard sold a total of approximately 82 grams of fentanyl, 10 grams of a mixture of heroin and fentanyl, and 10 grams of methamphetamine during these transactions.
On September 28, 2022, law enforcement officers executed a search warrant at a Huntington residence where Kennard lived. During the search, officers found approximately 96 grams of fentanyl and 274 grams of methamphetamine in a vacant lot across the road from the residence. Kennard admitted that he hid the controlled substances in the vacant lot and intended to distribute them. Kennard told officers that he had distributed controlled substances “off and on” in the Huntington area for at least the previous three years.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams prosecuted the case.
This case was prosecuted as part of Operation Synthetic Opioid Surge (SOS), an enforcement surge that has sought to reduce the supply of deadly synthetic opioids in high impact areas.
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-189.
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Nowata woman pleads guilty to accidentally killing her daughterRead the Press Release
TULSA, Okla. – A Nowata woman pleaded guilty in federal court to involuntary manslaughter in Indian Country, announced U.S. Attorney Clint Johnson.
Amanda Myrene Fields Moffett, 43, a Cherokee citizen of Nowata pleaded guilty to involuntary manslaughter in Indian country for shooting and killing her daughter while attempting to shoot a stray dog.
“Every gun owner has the legal responsibility to use extreme caution when discharging a firearm. This case unfortunately highlights the potential tragic results absent that caution,” said U.S. Attorney Clinton Johnson.
After sunset on Oct. 5, 2018, Moffett’s daughter told her that a stray dog was attacking kittens outside.
Moffett admitted she stepped out onto her front porch and discharged a handgun into the dark yard at what she believed was the stray dog. Moffett further admitted that she did not confirm that her daughter was out of her line of fire.
Moffett faces a maximum of eight years in federal prison. A date for sentencing has not been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Moffett will remain on conditions of supervised release until sentencing.
The Oklahoma State Bureau of Investigations, FBI and Nowata County Sheriff’s Office conducted the investigation.
Assistant U.S. Attorneys Aaron Jolly and Valeria Luster are prosecuting the case.