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27 September 2023
Two Chicago Men Sentenced to over 2 Years in Federal Prison for Offenses Related to Stealing U.S. MailRead the Press Release
Louisville, KY – Two Chicago men were each sentenced today to 2 years and 6 months in prison for conspiring to steal U.S. Mail and for illegally using and possessing a key to access U.S. Postal Mail receptacles.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and U.S. Postal Inspector in Charge Lesley Allison of the Pittsburgh Division made the announcement.
According to court documents, Brandon King, 21, and Angel Martin, 25, were each sentenced to 2 years and 6 months in prison, followed by 3 years of supervised release, for conspiring to steal mail matter from U.S. Postal Mail receptacles and for the illegal use and possession of a key used to open U.S. Postal Mail receptacles.
There is no parole in the federal system.
As part of the conspiracy, King and Martin illegally used the key to access U.S. Postal Mail receptacles in the Louisville area and to steal items deposited in the mail receptacles. During the conspiracy, they fraudulently negotiated and attempted to negotiate stolen checks. The total intended loss caused by their conduct was $179,540.30. In June of 2022, King and Martin were arrested after attempting to flee from local law enforcement in the Louisville area.
The case was investigated by the U.S. Postal Inspection Service with assistance from the Jeffersontown Police Department.
Assistant U.S. Attorney Joel King, formerly with the United States Attorney’s Office for the Western District of Kentucky and now with the Eastern District of Kentucky, and Assistant U.S. Attorney Bryan Calhoun prosecuted the case.
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Toledo Couple Who Operated Clinic Sentenced for Mail, Wire, and Health Care FraudRead the Press Release
TOLEDO – Dr. Oliver Jenkins, age 61 and Sherry-Ann Jenkins, age 59, of Jessup, Georgia, were sentenced to prison yesterday by U.S. District Judge Jack Zouhary after earlier being convicted by a jury of conspiracy, mail fraud, wire fraud and health care fraud. Dr. Oliver Jenkins was sentenced to 41 months imprisonment to be followed by one year of supervised release and a $15,000 fine.
Sherry-Ann Jenkins was sentenced to 71 months imprisonment to be followed by two years of supervised release and a $25,000 fine. Restitution will be ordered at a later date.
According to court documents and evidence presented at trial, Dr. Oliver Jenkins, who was an Ear, Nose, and Throat M.D. at the Toledo Clinic, and his wife Sherry-Ann Jenkins, who had a Ph.D. but was not licensed to practice medicine in Ohio, started a new business called the “The Toledo Clinic Cognitive Center”. The Jenkinses represented to the Toledo Clinic that patients suspected of cognitive disorders, particularly dementia and Alzheimer’s Disease, could come to the Cognitive Center for neurocognitive testing, diagnosis, treatment, and referrals, and that Sherry-Ann Jenkins would administer the neurocognitive testing under the supervision of Dr.Oliver Jenkins. The Jenkinses represented that Dr. Oliver Jenkins would make a diagnosis, and provide medical treatment, or a referral. Instead, the Jenkinses engaged in a scheme to defraud. Dr. Oliver Jenkins never saw or treated patients at the Cognitive Center. Sherry-Ann Jenkins ordered PET scans of patients’ brains, interpreted the scans, diagnosed patients, one as young as 21 years old, with Alzheimer’s Disease, dementia, or other impairments. She also recommended patients take coconut oil to improve memory, and instructed certain patients to see her every 3-6 weeks for the rest of their lives. The Jenkinses billed Cognitive Center patients and health care benefits programs using Dr. Oliver Jenkins’ billing number.This case was investigated by the Federal Bureau of Investigation in Toledo, Ohio, the United States Department of Health and Human Services, Office of Inspector General in Cleveland, Ohio, the Ohio Attorney General’s Medicaid Fraud Control Unit, and the Ohio State Medical Board. The case is being prosecuted by Assistant U.S. Attorneys Brian McDonough and Robert Melching.
Three Defendants Sentenced in Prison-Directed Armed Drug Trafficking ConspiracyRead the Press Release
ATHENS, Ga. – Three defendants involved in a lengthy and ongoing investigation into armed drug trafficking conducted out of jail facilities in Mexico and Georgia were sentenced for their crimes recently.
Cindy Stamey, 50, of Danielsville, Georgia, was sentenced to serve 120 months in prison to be followed by five years of supervised release after a federal jury found her guilty of one count of conspiracy to possess with intent to distribute methamphetamine and one count of possession of methamphetamine on Sept. 21, 2022. Christopher Wilson, 42, of Hull, Georgia, was sentenced to serve 55 months in prison to be followed by three years of supervised release after he previously pleaded guilty to possession of methamphetamine with intent to distribute on April 13, 2022. Laura Yazmine Garcia Guerro, aka “Yazmin Garcia,” aka “Yaz,” 30, a citizen of Mexico and a resident of Duluth, Georgia, was sentenced to serve 120 months in prison to be followed by five years of supervised release after she previously pleaded guilty to one count of possession with intent to distribute more than 500 grams of methamphetamine on July 13, 2021.
U.S. District Judge C. Ashley Royal handed down the sentences on Sept. 18. The defendants are not eligible for parole.
“These cases are the result of a lengthy and ongoing criminal investigation into armed methamphetamine trafficking in the Athens community with ties to prisoners and Mexican cartels, a dangerous mixture,” said U.S. Attorney Peter D. Leary. “I want to applaud the tremendous efforts of law enforcement at the local, state and federal level to dismantle criminal networks plaguing our communities.”
The following co-defendants in related cases have been sentenced:
Bruce Hicks, a/k/a “Bruno,” a/k/a “Bruce Incc,” of Athens, was sentenced to serve 260 months in prison on Jan. 8, 2020, after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Jan. 1, 2019;
Malcody Dinges aka “Cody” aka “Yes, Sir Cody,” 44, was sentenced to serve 240 months in prison (to run consecutive to any state-imposed sentence) to be followed by three years of supervised release on May 12, 2022, after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Dec. 16, 2021;
Adonias Sales Temaj aka “Alacran,” 29, a citizen of Guatemala and resident of Norcross, Georgia, was sentenced to serve 210 months in prison on March 7, after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on July 14;
Frankie Baza, of Gwinnett County, Georgia, was sentenced to serve 200 months in prison to be followed by three years of supervised release on June 3, 2021, after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine;
Ervin Sales Temaj aka “Milton Aguilar,” 35, a citizen of Guatemala and resident of Norcross, was sentenced to serve 121 months in prison to be followed by three years of supervised release on July 14, 2022, after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on April 13, 2022;
Carrie Kasper, 32, of Athens, was sentenced to serve 120 months in prison on July 10, after she pleaded guilty to possession with intent to distribute methamphetamine on July 15, 2021;
Jeris Dove aka “Jeris Southers,” 29, of Athens, was sentenced to serve 110 months in prison to be followed by four years of supervised release on Jan. 20, 2022, after he pleaded guilty to possession with intent to distribute methamphetamine on Oct. 18, 2021;
Justin Maddox, 45, of Athens, was sentenced to serve 30 months in prison on Jan. 11, 2023, after he pleaded guilty to possession with intent to distribute methamphetamine on Aug. 3, 2021; and
Katlyn Lackey, 22, of Commerce, Georgia, was sentenced to serve 20 months in prison on Jan. 12, 2023, after she pleaded guilty to possession with intent to distribute methamphetamine May 12, 2022.
The following co-defendants are awaiting sentencing:
Brendan R. Gates, 38, of Commerce, was found guilty by a federal jury of one count of conspiracy to possess with intent to distribute methamphetamine, one count of possession with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime on Sept. 21, 2022, and faces a maximum of life imprisonment. Sentencing will occur at a date determined by the Court; and
David Zavala, of Gordon County, Georgia, pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine on Dec. 11, 2020, and faces a maximum of life imprisonment. Sentencing for Zavala will occur at a date determined by the Court.
According to court documents, law enforcement officers in the Middle District of Georgia began investigating drug trafficking organizations operating from jail facilities in Mexico and Georgia in 2016, including inmates using social media and contraband cell phones to conduct and direct drug sales and move the drug proceeds to other members of the conspiracy. In 2018, federal agents learned that co-defendant Dinges was conducting drug deals using contraband cell phones while in custody at Wheeler Correctional facility. During the investigation, agents learned that Dinges was communicating with the co-defendants and others located in the Athens region about controlled substances; these individuals would travel to locations in Atlanta as directed by Dinges to receive methamphetamine and return to Athens to distribute the drugs. Dinges received a fee for brokering the deals. The drug trafficking organization was responsible for distributing more than 100 kilograms of methamphetamine.
In March 2021, law enforcement conducted an undercover purchase of methamphetamine from “Carlos,” another incarcerated person in Mexico, who was suspected of providing large quantities of methamphetamine to the Athens-area including in Watkinsville, Georgia. "Carlos" directed Garcia Guerro to conduct the transaction at the El Indio Restaurant parking lot in Duluth. Garcia Guerro was arrested at the location point in possession of a gallon-size plastic bag of methamphetamine, nearly one kilogram. For more information about these cases, please visit https://www.justice.gov/usao-mdga/pr/68-defendants-indicted-operation-wu-block-meth-heroin-investigation.
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.
These cases are being investigated by DEA Macon Resident Office, FBI Middle Georgia Safe Streets Gang Task Force, Athens-Clarke County Police Department, Clarke County Sheriff's Office, Gwinnett County Sheriff’s Office, Hart County Sheriff’s Office, Madison County Sheriff’s Office, Oconee County Sheriff’s Office, Greene County Sheriff’s Office, Oglethorpe County Sheriff’s Office, Georgia Department of Corrections and Northeast Regional Drug Task Force.
Assistant U.S. Attorney Tamara Jarrett is prosecuting the cases for the Government.
Temple Man Sentenced to over 11 Years in Prison for Conspiring to Transport Non-Citizens Resulting in DeathRead the Press Release
DEL RIO – A Temple, TX man was sentenced yesterday to 136 months in prison for conspiracy to transport illegal aliens resulting in death.
According to court documents, between July 24, 2020, and July 26, 2020, Saul Benitez-Gonzalez, 22, conspired with Raul Perez-Benitez (indicted separately) and others to smuggle non-citizens from Mexico to the United States. Benitez helped and prepared Perez to illegally transport nine Mexican citizens into the United States.
On July 26, 2020, U.S. Border Patrol agents encountered Perez driving a GMC Sierra five miles north of Brackettville. When the agents tried to conduct an immigration inspection, Perez failed to yield and a highspeed chase ensued. Agents terminated pursuit after speeds of 100 miles per hour were reached.
Later that morning agents discovered the GMC had an accident. The GMC appeared to have flipped and rolled after hitting a large boulder. Of the nine Mexican citizens being transported by Perez in the GMC, two died from fatal injuries received in the accident and three others were transported to a medical facility with serious bodily injuries. Four others sustained minor injuries and were transported to a Border Patrol station for processing.
“Smugglers and those who support them have no regard for their human cargo,” said U.S. Attorney Jaime Esparza. “We will continue to work hard with our fellow law enforcement partners to bring these smuggling networks down.”
“This sentencing serves as reminder that HSI will utilize every tool to investigate and dismantle human smuggling networks,” said Special Agent in Charge, Craig Larrabee, HSI San Antonio. “Those engaged in this illicit activity place personal profit ahead of public safety. Driven by greed, these criminals have little regard for the health and well-being of the people they smuggle.”
On January 13, 2023, Perez was sentenced to 63 months with credit for time served since his incarceration on July 26, 2020.
HSI investigated the case.
Assistant U.S. Attorneys Izaak Bruce and Larry Fadler prosecuted the case.
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Strafford Business Owner Pleads Guilty to False Tax ReturnRead the Press Release
SPRINGFIELD, Mo. – A Strafford, Mo., business owner pleaded guilty in federal court today to filing a false tax return.
Philip Russell Turner, 53, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to one count of filing a false tax return. Turner is the co-owner and president of a business identified in court documents as “Company A.”
By pleading guilty today, Turner admitted that he filed a false tax return for the calendar year 2018. Turner only claimed $15,088 income, although he had received additional income that should have been reported.
According to today’s plea agreement, Turner used funds from Company A to pay for approximately $612,144 in renovations to his personal residence in Strafford and cabins in Colorado in 2017 and 2018. He falsely told his accountant that the expenses for the renovations were expenses incurred by Company A for, among other things, renovating Company A’s offices, so that his accountant would not include the renovations as personal income on Turner’s tax returns.
As a result of Turner’s misrepresentations, his personal income for calendar years 2017 and 2018 was unreported by approximately $612,144. As a result, according to his plea agreement, Turner has an outstanding income tax liability of $97,765 for calendar year 2017 and $61,201 for calendar year 2018.
In addition, the plea agreement says, Turner owes $351,620 in unpaid taxes from calendar years 2013, 2014, and 2015. Under the terms of the plea agreement, Turner must pay the Internal Revenue Service $510,586 in restitution plus interest.
Under federal statutes, Turner is subject to a sentence of up to three years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Shannon Kempf. It was investigated by IRS-Criminal Investigation.
Stilwell Resident Pleads Guilty to Involuntary ManslaughterRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Bradley Jordan Eagle-Tate, age 30, of Stilwell, Oklahoma, entered a guilty plea to one count of Involuntary Manslaughter in Indian Country.
The Indictment alleged that on June 27, 2022, Eagle-Tate unlawfully killed the victim by failing to devote his full time and attention to driving. According to investigators, Eagle-Tate drifted into the oncoming lane of Oklahoma Highway 100 in a no-passing zone, clipping one vehicle before colliding head-on with a second vehicle. The driver of the second vehicle died at the scene. Eagle-Tate admitted during the plea hearing that he had multiple drugs in his system at the time of the collision.
The crime occurred in Adair County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Oklahoma Highway Patrol and the Federal Bureau of Investigation.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea in Muskogee and ordered the completion of a presentence investigation report. The Court permitted Eagle-Tate to remain out of custody pending sentencing.
Assistant United States Attorneys Zack Parsons and Kevin Gross represented the United States.
St. Louis County Man Accused of Paying to Watch Sexual Abuse of ChildrenRead the Press Release
ST. LOUIS – A man from St. Louis County, Missouri appeared in court this week to answer charges accusing him of coercing children overseas into engaging in sexually explicit conduct.
Sanel Smajlovic was indicted Sept. 13 on four counts of attempted production of child pornography. The indictment accuses of Smajlovic of coercing a total of six minors on four occasions in 2018 and 2019 into engaging in sexually explicit conduct.
A motion seeking to have Smajlovic held in jail until trial says Homeland Security Investigations identified traffickers in the Philippines who were providing access to pre-produced child sexual abuse material as well as live-streaming the sexual abuse of children to paying customers worldwide. Smajlovic directed the sexual abuse of children and then paid the adults who provided the children, the motion says. The motion calls it part of a growing transnational child-sexual-abuse industry and says the Smajlovic case is part of a larger investigation.
Smajlovic was arrested at St. Louis Lambert International Airport Sunday upon his arrival on an international flight. He pleaded not guilty to the charges at an appearance in U.S. District Court in St. Louis Monday.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Homeland Security Investigations investigated the case, with the assistance of forensic specialists from the Justice Department Child Exploitation and Obscenity Section and the Missouri State Technical Assistance Team. Assistant U.S. Attorney Nathan Chapman is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Southwest Georgia Resident Sentenced to Prison Resulting from Valdosta Armed Drug Distribution InvestigationRead the Press Release
ALBANY, Ga. – A Valdosta, Georgia, probationer with a lengthy criminal history who was found guilty by a federal jury on charges related to controlled substance distribution out of a Valdosta, Georgia, apartment complex was sentenced to prison recently.
Barry Kiya Daise, 45, of Valdosta, Georgia, was sentenced to serve 240 months in prison to be followed by three years of supervised release to be served concurrently with any probation revocation sentence in Brooks County Superior Court by Senior U.S. District Judge W. Louis Sands on Sept. 21. Daise was convicted by a federal jury of one count of possession with intent to distribute cocaine and one count of maintaining and using a drug involved premises on Oct. 6, 2022. Daise is not eligible for parole.
“Despite prior felony convictions involving guns and drug trafficking, the defendant continued to disregard the law by committing crimes that harm the community,” said U.S. Attorney Peter D. Leary. “Defendants with long criminal records will face the possibility of federal prosecution for chronic illegal activity as we continue to partner with law enforcement to identify and hold repeat and violent offenders accountable.”
According to court documents and evidence presented at trial, Daise was identified as part of a larger investigation by the Lowndes County Sheriff’s Office Special Operations Division into armed drug trafficking in August 2019. At the time, Daise was on probation for a prior state felony. Following several months of surveillance, a search warrant was executed at Daise’s West Hill Avenue apartment on Nov. 19, 2019. Inside, officers found a loaded firearm stolen from Tifton, Georgia, ammunition, 48 grams of powder cocaine, digital scales and evidence of crack-cocaine production. Daise’s cell phone contained messages about selling controlled substances, meeting at his apartment complex parking lot to conduct the transactions and photos of guns and drugs.
Daise has a lengthy criminal record with prior state felony convictions including possession of a firearm by a convicted felon in Lowndes County, Georgia, Superior Court and possession of cocaine with intent to distribute in Brooks County, Georgia, Superior Court. The case was investigated by the Lowndes County Sheriff’s Office, Special Operations Division and FBI. Assistant U.S. Attorneys Sonja Profit and Robert McCullers prosecuted the case.
South Bend Man Sentenced to 198 Months in PrisonRead the Press Release
SOUTH BEND – Pablo Pedraza, 30 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to possession with intent to distribute methamphetamine, announced United States Attorney Clifford D. Johnson.
Pedraza was sentenced to 198 months in prison followed by 5 years of supervised release.
According to documents in the case, in February 2023, Pedraza sold 1 pound of methamphetamine. When law enforcement later executed a search warrant at his residence, they recovered over 2 kilograms of methamphetamine and over $18,000 cash.
This case was investigated by the Federal Bureau of Investigation with assistance from the Mishawaka Police Department, the Indiana State Police, the St. Joseph County Police Department, and the Drug Enforcement Administration North Central Laboratory. The case was prosecuted by Assistant United States Attorney Joel Gabrielse.
Saugus Man Sentenced to More Than Four Years in Prison for Role in Conspiracy to Traffic Counterfeit Prescription PillsRead the Press Release
BOSTON – A Saugus man was sentenced yesterday in federal court in Boston for his role in a North Shore-based drug trafficking organization (DTO) that allegedly manufactured and distributed tens of thousands of counterfeit prescription pills containing fentanyl and methamphetamine.
Justin Westmoreland, 25, was sentenced by U.S. Chief District Court Judge F. Dennis Saylor IV to 57 months in prison and three years of supervised release. On May 26, 2023, Westmoreland pleaded guilty to conspiracy to distribute and possess with intent to distribute controlled substances.
Westmoreland was among 23 individuals charged in October 2022 in connection with a wide-ranging conspiracy to traffic counterfeit prescription pills. The defendants were subsequently indicted along with two additional alleged co-conspirators in December 2022. According to court documents, the DTO distributed counterfeit oxycodone pills containing fentanyl and counterfeit Adderall pills containing methamphetamine, among other things, to various individuals in the Lynn area.
Westmoreland was responsible for the distribution of approximately 7,000 counterfeit oxycodone pills containing undisclosed amounts of fentanyl. Intercepted communications between Westmoreland and his supplier established that Westmoreland knew that the pills he was receiving and distributing were counterfeit pills.
Westmoreland is the first individual to be convicted and sentenced in connection with this case.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the Beverly, Everett, Peabody, Revere, Salem, Saugus and Swampscott Police Departments. Assistant U.S. Attorneys James E. Arnold and Evan D. Panich of the Narcotics and Money Laundering Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Santa Domingo Man Pleads Guilty to Sexual AbuseRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced today that Santiago Quintana, Jr. pleaded guilty to abusive sexual contact. Quintana, 70, of Santo Domingo, and a member of the Santo Domingo Pueblo, will remain in custody pending sentencing, which has not been scheduled.
According to court documents, on January 25, 2023, the Bureau of Indian Affairs received an allegation of sexual abuse of children from the Santo Domingo School. A Forensic Interviewer from the FBI interviewed the victim who stated that she and her sibling had been sexually abused by Quintana for about six years, beginning when they were 6 and 7 years old, and the siblings had both witnessed Quintana sexually abusing the other. In his plea agreement, Quintana admitted to engaging in sexual contact with the victim who was over the age of twelve years but had not yet attained the age of sixteen years.
At sentencing, Quintana faces up 10 years in prison and must register as a sex offender upon his release.
The FBI Albuquerque Field Office investigated this case with assistance of the Bureau of Indian Affairs. Assistant United States Attorney Robert James Booth II is prosecuting the case.
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Representative John Rogers Charged with Obstruction of Justice in Fraud Case Involving the Jefferson County Community Service FundRead the Press Release
BIRMINGHAM, Ala. – Representative John Rogers has been indicted by a federal grand jury for obstruction of justice, and tax charges have been added against his assistant, in a superseding indictment in the case involving schemes to defraud the Jefferson County Community Service Fund, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples, and Internal Revenue Service, Criminal Investigation Acting Special Agent in Charge Demetrius Hardeman.
A 25-count superseding indictment filed this week in United States District Court charges Varrie Johnson Kindall, 58, of Chelsea, with one count of conspiracy to commit wire and mail fraud, 11 counts of wire fraud, 3 counts of mail fraud, 1 count of money laundering, and 4 tax related charges. Additionally, the superseding indictment charges John Rogers, 82, and Kindall with 2 counts of obstruction of justice. These charges arise from an investigation of wrongdoing in connection with the Jefferson County Community Service Fund. In June, former Representative Fred L. Plump, Jr., pleaded guilty to conspiring with Kindall and resigned from the Alabama House of Representatives.
According to the superseding indictment, in 2015 the Alabama Legislature passed Alabama Act No. 2015-226 (the “Act”) and authorized the Jefferson County Commission to levy and distribute a one percent sales tax and a one percent use tax to benefit the public welfare and enhance the education of the children of Jefferson County. Jefferson County began levying the new taxes in or about August 2017. The Act required the County to distribute the tax revenue according to certain specified priorities, including paying debt incurred during school construction, increasing the County’s general fund, giving funds to each board of education serving students in the County, and for certain other purposes set forth in the Act.
The Act created the Jefferson County Community Service Fund (the “Fund”), which was subsidized by approximately $3.6 million annually from the new taxes. The Act also created the Jefferson County Community Service Committee (the “Committee”), the four members of which were elected by members of the Jefferson County House and Senate delegations. The Committee was responsible for ensuring that the Fund was used only for the purposes set forth in the Act, which included to support public entities and projects such as schools, libraries, museums, parks, zoos, neighborhood associations, athletic facilities, youth sports associations, road construction, the performing arts, police departments, the sheriff’s office, fire departments, and certain nonprofit entities. Each Representative and Senator representing Jefferson County could make recommendations to the Committee of expenditures from their allotted amount of the Fund. These recommendations were made on a form created by the Committee that required certain certifications by the legislator. The organization receiving the funds was required to submit information about the organization and confirm that it intended to use the money for a public purpose. During each fiscal year from 2018 to 2022, each Representative was allocated approximately $100,000 and each Senator was allocated approximately $240,000 from the Fund.
The superseding indictment identifies certain relevant parties. Representative John Rogers was a long-serving member of the Alabama House of Representatives. Fred L. Plump, Jr. served as the Executive Director of the Piper Davis Youth Baseball League (“Piper Davis”), a nonprofit organization that claimed to provide a positive sporting experience for inner city youth in Jefferson County. Defendant Varrie Johnson Kindall was Rogers’ personal and professional assistant. Individual #1 was the Founder of Organization #1.
Between fiscal year 2018 and fiscal year 2022, Representative Rogers was allocated approximately $500,000 by the Fund. Rogers directed approximately $400,000 of those discretionary funds to Piper Davis. In turn, Plump gave approximately $200,000 to Kindall.
The superseding indictment alleges that from in or about March 2019, and continuing through April 2023, Kindall conspired with Plump and others to defraud and obtain money from the Fund. It is alleged that it was part of the conspiracy that Rogers, with Kindall’s assistance, recommended during each fiscal year that most of his allotment of Fund money be paid to Piper Davis. In turn, Plump agreed to pay kickbacks to Kindall. Plump and Kindall submitted false and fraudulent information to the Committee about Piper Davis’ intended use of Fund money. Upon receipt and deposit of Fund checks, Plump gave checks to Kindall for approximately one-half of the amount of Fund money received by Piper Davis. On one occasion, it is alleged, Kindall engaged in money laundering by moving a large sum of illegally obtained money between bank accounts.
Additionally, the superseding indictment alleges that, in 2019, Kindall committed wire fraud by assisting Rogers in directing Fund money to another entity, identified as Organization #1, and then requiring Individual #1 to pay kickbacks to her.
The superseding indictment alleges further that, after learning about the federal investigation into the fraud scheme, Rogers and Kindall attempted to obstruct justice by offering Individual #1 additional grant money as a bribe and otherwise trying to corruptly persuade Individual #1 to give false information to federal agents.
The superseding indictment adds 4 counts alleging that Kindall did not file a tax return for 2019 despite receiving substantial income and aided the filing of false tax returns for 2020-2022.
The maximum penalty for the conspiracy and substantive fraud counts is twenty years in prison and a $250,000 fine. The maximum penalty for money laundering is ten years in prison and a $250,000 fine. The maximum penalty for obstruction of justice is twenty years in prison and a $250,000 fine. The maximum penalty for obstruction of justice by bribery is five years in prison and a $250,000 fine. The maximum penalty for failing to file a tax return is 1 year in prison and a $25,000 fine. The maximum penalty for aiding the filing of a false tax return is 3 years in prison and a $100,000 fine.
The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation investigated the case. Assistant United States Attorneys George Martin and Catherine Crosby are prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Recidivist Defendant Sentenced to Six Years in Prison for Orchestrating Million-Dollar Fraud Scheme Targeting Senior Executives of Investment FirmsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that JONATHAN GHERTLER was sentenced by U.S. District Judge Edgardo Ramos to six years in prison in connection with his scheme to impersonate senior leaders of two Manhattan-based investment firms, resulting in over $1 million in losses to their portfolio companies, and to impersonating a partner of a global law firm on telephone calls with federal law enforcement agents who were investigating the scheme. GHERTLER previously pled guilty to one count of wire fraud and one count of making false statements.
U.S. Attorney Damian Williams said: “Jonathan Ghertler orchestrated a sophisticated impersonation scheme by posing as prominent financiers and lawyers. He duped companies out of over $1 million. He also obstructed justice by brazenly impersonating a partner of a global law firm and urging federal agents to drop their investigation. But he did not get away with it. As today’s sentence demonstrates, serial fraudsters like Ghertler will be caught and held to account for their crimes.”
According to the Indictment and other filings and statements made in court:
From at least in or about December 2021, up to and including at least June 2022, GHERTLER impersonated the General Counsel of a global private equity firm (the “Private Equity Firm”). In doing so, GHERTLER fraudulently caused the Private Equity Firm’s portfolio companies to pay at least $200,000 to fund a non-existent internal investigation into alleged links between senior employees of the Private Equity Firm and Jeffrey Epstein, the deceased financier who, before he died on or about August 10, 2019, had been charged in the Southern District of New York with sex trafficking of minors and conspiring to commit sex trafficking of minors.
In addition, from at least May 2021, up to and including February 2023, GHERTLER impersonated the founder of an investment firm (the “Investment Firm”), directing the Chief Executive Officer (the “CEO”) of one of the Investment Firm’s portfolio companies (the “IF Portfolio Company”) to make at least $865,000 in payments to fund a non-existent internal investigation related to the founder’s alleged relationship with Epstein. Shortly before the fraud unraveled, GHERTLER, posing as the founder of the Investment Firm, had discussed with the CEO the possibility of making a large investment into a restaurant chain owned by another investment firm.
On or about February 7, 2023, after learning from the CEO that federal investigators were investigating a potentially fraudulent payment made by the Investment Firm, GHERTLER, posing as a partner (the “Partner”) at a global law firm, spoke on the phone with Special Agents with the Federal Bureau of Investigation (“FBI”). GHERTLER told the federal agents that the IF Portfolio Company had chosen not to report the fraud because it had been “made whole” by the fraudster.
On or about February 10, 2023, GHERTLER, impersonating the Partner, spoke again with federal agents. GHERTLER said, after “consult[ing]” with “associates and lower-level partners” at the Global Law Firm who “used to work” at the U.S. Attorney’s Office for the Southern District of New York, “our position is that, uh, the law states that, umm, you know, if the money was paid back prior to, uh, the crime being, uh, discovered, uh, it’s not a crime.” GHERTLER added that his “client [i.e., the founder of the Investment Firm] has a lot of other issues he is dealing with right now, so this is one he really doesn’t need to deal with.”
This case resulted in GHERTLER’s 16th conviction — his prior convictions include fraud, theft, larceny, burglary, and forgery. In 2001, he was convicted of wire fraud in the Southern District of New York, and, in 2007, he was convicted of wire fraud in the Middle District of Florida. As here, in both the prior federal cases, GHERTLER was charged with impersonating prominent lawyers and business leaders and persuading companies to fraudulently transfer large sums of money to accounts under his control.
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In addition to his prison term, GHERTLER, 61, of Orlando, Florida, was sentenced to three years of supervised release and ordered to pay restitution in the amount of $1,065,000 and forfeit the same amount.
Mr. Williams praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Adam Sowlati is in charge of the prosecution.
Prince George's County Man Pleads Guilty to Fraudulently Obtaining Covid-19 Cares Act Paycheck Protection Program LoansRead the Press Release
Baltimore, Maryland – Reginald Alphonso Hopkins, age 52, of Prince George's County, Maryland, pleaded guilty today to the charge of conspiracy to commit wire fraud relating to the submission of fraudulent claims for the Paycheck Protection Program (“PPP”) benefits under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, enacted to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic.
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, Hopkins fraudulently obtained $1,007,224 in fraudulent PPP funds and $9,000 in Economic Injury Disaster Loan funds for various purported businesses he controlled—a transportation business, a car sales business, and an assisted living facility. He also attempted to fraudulently obtain more than $3,132,224 in PPP and EIDL funds.
According to his plea agreement, on June 11, 2020, with direction from Hopkins, a co-conspirator submitted a fraudulent PPP loan application to Bluevine and Celtic Bank for Prestige Executive Transportation, a business owned by Hopkins. The application contained multiple material misrepresentations, including that Prestige Executive Transportation in 2019 had 15 employees and an average monthly payroll of $116,436. In support of the loan application, a fabricated 2019 Internal Revenue Service (IRS) Form 944—Employer’s Annual Federal Tax Return—was submitted, which falsely indicated that the entity’s total payments to all employees in 2019 was $1,397,237.78. Based on the fraudulent submissions, the PPP loan was funded, and approximately $291,090 was distributed. Hopkins agreed to pay the co-conspirator a kickback payment after the PPP loan funds were received, and he provided the co-conspirator a check in the amount $58,000.
On March 14, 2021, the co-conspirator submitted a fraudulent PPP loan application to Cross River Bank for Prestige 24/7 Auto Sales & Services LLC (“Prestige 24/7”), another business owned by Hopkins. The loan application contained multiple material misrepresentations, including that Prestige 24/7 in 2019 had 15 employees and an average monthly payroll of $120,409. In support of the loan application, a fabricated 2019 IRS Form 940—Employer's Annual Federal Unemployment—was submitted, which falsely indicated that the entity’s total payments to all employees in 2019 was $1,444,902.60. Based on the fraudulent submissions made on behalf of Hopkins as the owner of Prestige 24/7, the PPP loan was funded on March 23, 2021, and approximately $294,771 was disbursed to Hopkins.
On March 23, 2021, the co-conspirator, with direction from Hopkins, submitted a fraudulent PPP loan application to Cross River Bank for Prestige Assisted Living Inc. (“Prestige Assisted Living”), another business owned by Hopkins. The PPP loan application contained multiple material misrepresentations, including that Prestige Assisted Living in 2019 had 24 employees and an average monthly payroll of $168,545. In support of the loan application, a fabricated 2019 IRS Form 940 was submitted, which falsely indicated that the entity in 2019 paid $2,022,544.12 in wages to all employees. Prestige Assisted Living did not even obtain a license to operate as an assisted living facility until December 18, 2020. It was authorized to have four beds. Moreover, even after it obtained its license, Prestige Assisted Living never paid wages to any employee. The PPP loan application also included a fabricated February 2020 Wells Fargo Bank account statement for Prestige Assisted Living. The actual beginning balance on the Wells Fargo Bank statement was negative $3.50, not $123,538.50 as shown on the purported bank statement submitted to Cross River Bank. Likewise, the actual ending balance on the Wells Fargo Bank statement was negative $17.50, not $123,475.77 as shown on the purported February 2020 statement submitted to Cross River Bank. Based on the fraudulent submissions the PPP loan was funded, and approximately $421,363 was distributed to Hopkins. Hopkins again paid the co-conspirator kickback payments for his work, totaling $44,000.
Hopkins spent the fraudulently obtained loan proceeds in various ways, including by paying $177,000 in kickbacks to the co-conspirator, providing PPP funds to various friends, family members and associates for purposes unrelated to employment, making large cash withdrawals for himself, and paying off various personal debts.
Hopkins also used $30,000 of the PPP funds to purchase an auto body repair shop called B&G Auto Repair LLC. He planned to seek and obtain a fraudulent PPP loan for this entity as well.
On March 19, 2021, another fraudulent PPP loan application was submitted to Cross River Bank for Prestige Executive Protection Services, LLC, another business owned by Hopkins, seeking a loan in the amount of $250,723. This application falsely claimed, among other things, that the business had $100,289 in average monthly payroll. It also included a fabricated 2019 IRS Form 940, which stated that total payments to all employees in 2019 were $1,203,471.52. The loan was ultimately declined.
In addition to obtaining the PPP loans discussed above, Hopkins also conspired with the co-conspirator to obtain PPP loans for various other purported businesses, including Prestige Paradise Promotions, LLC, Prestige Executive Protection Services II, LLC, Prestige Real Estate & Development, LLC, and B&G Auto Repair LLC, as noted above. Hopkins repeatedly sought the co-conspirator’s assistance in obtaining PPP loans for these entities, but the loans never closed.
Hopkins also caused to be submitted numerous fraudulent EIDL applications. The EIDL program was another program administered by the U.S. Small Business Administration (“SBA”) designed to provide relief funds to small businesses impacted by COVID-19.
On April 1, 2020, an EIDL application was submitted for Prestige Executive Transportation. The application falsely claimed that the business had five employees, 2019 gross revenues of $250 million, and cost of goods sold of $100 million. This equated to a requested loan amount of $2 million. This loan was ultimately declined; however, Hopkins received a EIDL Advance of $5,000.
Likewise, on April 2, 2020, an EIDL application for Prestige Executive Protection Services II was submitted to the SBA. Financial information supplied on the application stated that Prestige Executive Protection had gross revenues of $200,000 and a monthly revenue of $16,666.66, which equated to a requested loan amount of $100,000. This loan was also declined; however, Hopkins received an EIDL Advance of $4,000.
On July 1, 2020, an EIDL application was submitted for Prestige 24/7. It falsely claimed that the business had gross revenues of $700,000 and cost of goods sold of $650,000. The loan was ultimately declined.
If the party’s plea agreement is accepted by the Court, Hopkins will be sentenced to between 18 months and 41 months of imprisonment. U.S. District Judge Richard D. Bennett has scheduled sentencing for January 10, 2024, at 2:30 p.m.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
United States Attorney Erek L. Barron commended the FBI for their work in the investigation and thanked the Baltimore County Police Department and the U.S. Small Business Administration – Office of Inspector General (“SBA-OIG”). Mr. Barron thanked Assistant U.S. Attorney Paul Riley, who is prosecuting the federal case. Mr. Barron also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna Huber.
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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Pittsburgh Resident Sentenced on Bank Robbery ChargeRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania was sentenced in federal court today on a charge of bank robbery, United States Attorney Eric G. Olshan announced.
The court was advised that on December 7, 2022, Ahmed Asiri robbed the Dollar Bank located at 3029 West Liberty Avenue, Pittsburgh, Pennsylvania in the Dormont neighborhood. As a result of the robbery, Asiri obtained $20,000 in United States currency. These funds were later recovered by law enforcement.
Judge Horan sentenced Asiri to 37 months in prison followed by one year of supervised release and ordered Asiri to pay restitution to Dollar Bank.
Assistant United States Attorney Carl J. Spindler prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, the Allegheny County Police Department, and the Dormont Police Department conducted the investigation that led to the prosecution of Asiri.
Pinellas Man Sentenced to Prison for Receiving Child Sexual Abuse MaterialRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday has sentenced Brian David Johnson (38, Pinellas Park) to 7 years and 3 months in federal prison, followed by 15 years of supervised release, for receiving child sex abuse material. The court also ordered Johnson to pay $23,000 in restitution and forfeit various electronic devices, which are traceable to proceeds of the offense. Johnson had pleaded guilty on June 28, 2023.
According to court documents, in November 2022, the FBI executed a search warrant at Johnson’s residence after discovering Johnson was distributing, receiving, and possessing child sexual abuse material. Johnson admitted to law enforcement that he downloaded thousands of child sexual abuse files over time and had viewed images depicting infants being sexually abused. A forensic review of Johnson’s devices revealed approximately 1,400 images and videos of child sexual abuse material, approximately 100 of which depicted toddlers.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Abigail K. King.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Panama City Man on State Probation Sentenced to Federal Prison for Manufacturing Counterfeit Federal Reserve NotesRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Neal Evan Pollman (42, Panama City) to 18 months in federal prison for manufacturing counterfeit Federal Reserve Notes. The court also ordered Pollman to pay restitution to the victims he defrauded.
According to court documents and public records, in 2022, Pollman entered various businesses in Brevard, Clay, Duval, and Seminole counties and purchased gift cards, merchandise and food using counterfeit Federal Reserve notes. Law enforcement subsequently determined that Pollman and his co-defendant, Lyndsey Rhea Markland (41, Panama City) were staying at a hotel in the City of Palm Bay. In November 2022, the Palm Bay Police Department (PBPD) executed a search warrant at their hotel room and located Markland inside the room. Also located in the room was approximately $30,000 in counterfeit currency and a printer, along with other tools used by Pollman to manufacture counterfeit Federal Reserve notes. Shortly after the execution of the search warrant, the PBPD located Pollman in the vicinity of the hotel and arrested him. When the officers searched Pollman they recovered various counterfeit Federal Reserve notes on him which were traced back to his manufacturing activities. During a subsequent forensic examination of Pollman’s cellphone, law enforcement located images of Federal Reserve notes that Pollman used to manufacture the counterfeit currency.
Pollman and Markland appeared in federal court on April 27, 2023, pursuant to a writ bringing them to Jacksonville from the Bay County Jail in Florida where they are serving time for violating their state probation on multiple charges related to passing counterfeit Federal Reserve notes. The Court had ordered Pollman and Markland detained pending trial.
On June 8, 2023, Markland pleaded guilty to four counts of passing counterfeit Federal Reserve notes. She faces up to 20 years in federal prison on each count and payment of restitution to the victims she defrauded. Her sentencing hearing is set for November 2, 2023.
This case was investigated by the Brevard County Sheriff’s Office, the Jacksonville Sheriff’s Office, the Palm Bay Police Department, the Orange Park Police Department, the Seminole County Sheriff’s Office, and the United States Secret Service - Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Owner of Telemedicine Companies Pleads Guilty to $44 Million Medicare Fraud SchemeRead the Press Release
BOSTON – The owner of Conclave Media (Conclave) and Nationwide Health Advocates (Nationwide) pleaded guilty today in connection with a $44 million telemedicine fraud scheme involving medically unnecessary durable medical equipment (DME), including orthotics such as back and knee braces, and genetic tests.
David Santana, 38, of Reading, Mass. pleaded guilty to one count of conspiracy to commit health care fraud. U.S. District Court Judge Angel Kelley scheduled sentencing for Feb. 7, 2024. Santana was charged in July 2023.
Between January 2018 and August 2021, Santana, through his companies Conclave and Nationwide, entered into business relationships with telemarketing companies that generated leads by targeting Medicare beneficiaries. The telemarketers then paid Conclave and Nationwide on a per-order basis to generate orders for DME and genetic testing for these beneficiaries. To arrange for these orders to be signed, Santana worked with medical staffing companies to find doctors and nurses who were willing to review and sign prepopulated orders, typically without any contact with the beneficiaries. The records falsely portrayed the medical providers as having performed a legitimate examination of the beneficiary. Santana then provided the signed orders to the telemarketing companies which sold the orders to DME suppliers and laboratories. Santana knew these DME suppliers and laboratories would use the signed orders to submit claims to Medicare for DME and genetic testing that were medically unnecessary, based on false documentation and tainted by kickbacks.
The charge of conspiracy to commit health care fraud provides for a sentence of up to 10 years in prison, supervised release for up to three years, and a fine of up to $250,000 or twice the gross pecuniary gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Robert Coviello, Special Agent in Charge, Health and Human Services-Office of Inspector General; Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigations, Boston Division; Ketty Larco-Ward, Inspector in Charge, United States Postal Inspection Service, Boston Division; Carol S. Hamilton, Regional Director, Employee Benefits Security Administration, U.S. Department of Labor; and Patrick Hegarty, Special Agent in Charge, Defense Criminal Investigation Service, North East Field Office made the announcement today. Assistant U.S. Attorneys Lauren Graber and Howard Locker of the Health Care Fraud Unit and Alexandra Brazier and Lindsey Ross of the Affirmative Civil Enforcement Units are prosecuting the case.
Owner of Home Health Company Convicted of $2.8M Medicare Fraud SchemeRead the Press Release
A federal jury in the Eastern District of Michigan convicted an Indian national today for orchestrating a $2.8 million health care fraud and wire fraud conspiracy, and engaging in money laundering, aggravated identity theft, and witness tampering.
According to court documents and evidence presented at trial, Yogesh Pancholi, 43, of Northville, Michigan, owned and operated Shring Home Care Inc. (Shring), a home health company based in Livonia, Michigan. Despite being excluded from billing Medicare, Pancholi purchased Shring using the names, signatures, and personal identifying information of others to conceal his ownership of the company. In a two-month period, Pancholi and his co-conspirators billed and were paid nearly $2.8 million by Medicare for services that were never provided. Pancholi then transferred these funds through bank accounts belonging to shell corporations and eventually into his accounts in India. After being indicted, and on the eve of trial, Pancholi, using a pseudonym, wrote false and malicious emails to various federal government agencies alleging a government witness had committed various crimes and should not be allowed to remain in the United States in an attempt to keep the witness from testifying.
The jury convicted Pancholi of conspiracy to commit health care and wire fraud, two counts of substantive health care fraud, two counts of money laundering, two counts of aggravated identity theft, and one count of witness tampering. He is scheduled to be sentenced on Jan. 10, 2024, and faces a mandatory minimum penalty of two years in prison for aggravated identity theft, a maximum penalty of 20 years in prison on each of the conspiracy and witness tampering convictions, and a maximum penalty of 10 years in prison on each of the health care fraud and money laundering counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Acting Special Agent in Charge Devin J. Kowalski of the FBI Detroit Field Office, and Special Agent in Charge Mario Pinto of the Department of Health and Human Services Office of the Inspector General (HHS-OIG) made the announcement.
The FBI Detroit Field Office and HHS-OIG investigated the case.
Trial Attorneys Shankar Ramamurthy and Andres Almendarez of the Criminal Division’s Fraud Section are prosecuting the case, with assistance from Trial Attorney Kathleen Cooperstein. Trial Attorney Patrick Suter investigated and originally charged the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Operator of Large-Scale Marriage Fraud "Agency" Pleads GuiltyRead the Press Release
BOSTON – A California man pleaded guilty today in federal court in Boston to running a large-scale marriage fraud “agency” that arranged hundreds of sham marriages for the primary purpose of circumventing immigration laws. This included, among other things, obtaining green cards under the Violence Against Women Act (VAWA) by claiming the undocumented clients had been abused by alleged American spouses.
Marcialito Biol Benitez, a/k/a “Mars,” 49, a Philippine national residing in Los Angeles, pleaded guilty to conspiracy to commit marriage fraud and immigration document fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for Jan. 10, 2024. Benitez was arrested and charged in April 2022.
Benitez operated what he and others referred to as an “agency” that arranged hundreds of sham marriages between foreign national “clients” and United States citizens, including at least one foreign national who resided in Massachusetts. The agency then prepared and submitted false petitions, applications and other documents to substantiate the sham marriages and secure adjustment of clients’ immigration statuses for a fee of between $20,000 and $35,000 in cash.
Benitez operated the agency out of brick-and-mortar offices in Los Angeles, where he employed his co-conspirators as staff. Among other things, Benitez’s staff allegedly assisted with arranging marriages, submitting fraudulent marriage and immigration documents for the agency’s clients – including false tax returns, as well as recruiting U.S. citizens to marry the agency’s clients in exchange for payment.
After pairing foreign national clients with citizen spouses, Benitez’s agency staged fake wedding ceremonies at chapels, parks and other locations, performed by hired online officiants. For many clients, the agency would take photos of undocumented clients and citizen spouses in front of prop wedding decorations for later submission with immigration petitions.
Benitez’s agency then submitted fraudulent, marriage-based immigration petitions to U.S. Citizenship and Immigration Services (USCIS), the federal agency responsible for granting lawful permanent resident status. Benitez’s agency coached clients and spouses through interviews with USCIS and advised clients about maintaining the appearance of legitimate marriage to their spouses. Benitez’s agency arranged sham marriages and submitted fraudulent immigration documents for at least 600 clients between October 2016 and March 2022.
Benitez’s agency would assist certain clients – typically those whose spouses became unresponsive or uncooperative – with obtaining green cards under the Violence Against Women Act (VAWA) by claiming the undocumented clients had been abused by alleged American spouses. Specifically, the agency would submit fraudulent applications on clients’ behalf for temporary restraining orders against spouses based on fabricated domestic violence allegations. Benitez’s agency would then submit the restraining order documentation along with immigration petitions to USCIS, in order to take advantage of VAWA provisions that permit non-citizen victims of spousal abuse to apply for lawful permanent resident status without their spouses’ involvement.
Benitez is the seventh defendant to plead guilty in this case.
The charge of conspiracy to commit marriage fraud provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office; Chad Plantz, Special Agent in Charge of Homeland Security Investigations in San Diego; and Alanna Ow, Director of U.S. Citizenship & Immigration Services, San Diego District. The U.S. Attorney’s Office for the Central District of California provided valuable assistance in this matter. Assistant U.S. Attorney David M. Holcomb of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Omaha Man Sentenced to Eight Years for Possession of AmmunitionRead the Press Release
Acting United States Attorney Susan Lehr announced that Raymond A. Butler, Jr., 52, of Omaha, Nebraska, was sentenced today in federal court in Omaha following a conviction for being a felon in possession of ammunition. United States District Judge Brian C. Buescher sentenced Butler to 96 months’ imprisonment. There is no parole in the federal system. After his release from prison, Butler will begin a three-year term of supervised release.
On February 22, 2022, Omaha police stopped a vehicle for traffic infractions. Butler was identified as the driver and a data check confirmed an active misdemeanor arrest warrant. During a search incident to arrest, officers found one Winchester 9mm Luger bullet in his pocket. Butler is a convicted felon prohibited from possessing ammunition under federal law. His convictions include first-degree sexual assault in 1991, bank robbery in 2002, and delivery of a controlled substance in 2018.
This case was investigated by the Omaha Police Department.
Nurse Impostor Charged in Multi-Count Federal IndictmentRead the Press Release
Leticia Gallarzo used the identity of a real nurse to obtain employment as a registered nurse
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that a federal grand jury returned an indictment charging Leticia Gallarzo, 48, of Allegan County, with wire fraud, two counts of aggravated identity theft, two counts of making false statements in medical records affecting health care benefit programs, and production of a false identification document, all charges relating to her scheme to defraud employers by posing as a registered nurse.
“These allegations that Ms. Gallarzo faked her qualifications as a licensed medical professional are highly concerning and potentially put innocent patients at risk,” said U.S. Attorney Mark Totten. “My office takes this threat to the public very seriously and thanks our law enforcement partners for their investigative work in this case.”
If convicted, Gallarzo faces a maximum sentence of up to 20 years in prison for wire fraud and two years mandatory imprisonment for aggravated identity theft, to be served consecutively to the underlying sentence.
According to allegations in the indictment and a previously filed criminal complaint, Gallarzo used the Michigan licensing number and the name of a person licensed as a nurse to obtain employment as a registered nurse at two different locations: an area nursing home and a hospice facility. Gallarzo did not possess a valid nursing license and represented that she earned a master’s degree in nursing from The George Washington University and a bachelor’s degree in nursing from Davenport University, despite not having a degree of any kind in nursing. Gallarzo produced a counterfeit Michigan nursing license that was also used to obtain employment with the hospice facility. The hospice facility learned that Gallarzo was a nurse impostor when her fingerprints matched the fingerprints on record due to her previous state and federal convictions for practicing nursing without a license in Texas in 2015 and 2016. The Michigan State Police arrested Gallarzo shortly thereafter.
“As alleged in this case, the defendant recklessly and willingly put the lives of innocent patients at risk,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The FBI remains committed to ensuring identity theft cases like this one are thoroughly investigated. I would like to extend a special thank you to the Michigan State Police for their outstanding work and support throughout this case.”
“The defendant’s alleged actions demonstrate blatant disregard for the safety and well-being of those under her purported care,” said Mario M. Pinto, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “To ensure that patients receive appropriately qualified services, HHS-OIG will steadfastly pursue those who misrepresent their medical qualifications.”
The Federal Bureau of Investigation Grand Rapids Field Office and U.S. Health and Human Service Office of Inspector General are investigating the case. Assistant U.S. Attorney Ron Stella is prosecuting the case.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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North Carolina Man Sentenced for Role in $5.8 M Fraud SchemeRead the Press Release
RICHMOND, Va. – A Huntersville, North Carolina, man was sentenced today to 87 months in prison for his role in a fraud scheme that caused over $5.8 million in losses to victims.
According to court documents and testimony at hearings, from 2016 through 2021, Jayson Ryman Colavalla, 51, along with Carl Anthony McNeill, 59, of Mechanicsburg, Pennsylvania; Richard Thornhill Crock, 75, of Mableton, Georgia; and Ksyntolious Miller, 60, of Woodbridge, were involved in an advance fee scheme targeting individuals, small businesses, churches, and other entities that could not obtain conventional lines of credit through banks. The co-conspirators promised these victims that, using their relationships with major investment banks, the co-conspirators could obtain lines of credit for the victims. The scheme required that the victims advance a deposit consisting of 10-14% of the line of credit sought, representing that the deposit would be held in escrow and returned if they did not obtain the line of credit. In fact, the co-conspirators did not have any relationships with the investment banks mentioned in their dealings with the victims and did not safeguard the victims' funds in escrow.
The fraudulently obtained funds from victims were misapplied to pay co-conspirators, cover the payroll and operating expenses of C&D Corporate Services, the company McNeill used to commit the fraud, and pay frustrated victims seeking the return of deposited money. Crock also falsely represented to victims that their advanced funds would be insured via policies issued through a Georgia-based insurance company. These policies were also fraudulent, as the insurance company did not have sufficient assets on hand to compensate victims under such policies.
Colavalla was also ordered to pay over $2.4 million in restitution to victims with which he was involved.
In May, McNeill and Crock were both sentenced to 46 months in prison. In July, Miller was sentenced to 20 months in prison.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney, Jr.
Assistant U.S. Attorneys Michael C. Moore and Avi Panth prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-132.
New Castle Resident Sentenced to 120 Months in Prison for Drug TraffickingRead the Press Release
PITTSBURGH, PA – Ricardo Reeves was sentenced to 120 months in prison for fentanyl, heroin, and cocaine trafficking, and for possessing a firearm in furtherance of that drug trafficking, United States Attorney Eric G. Olshan announced today.
Reeves, age 45 of New Castle, Pennsylvania, was sentenced by United States District Judge Arthur J. Schwab. Judge Schwab ordered Reeves to serve four years of supervised release following his prison sentence.
Reeves pled guilty earlier this year to (1) possessing with intent to distribute 40 grams or more of a mixture containing fentanyl and heroin, as well as quantities of cocaine and cocaine base, and (2) possessing a firearm in furtherance of a drug trafficking crime, all on December 14, 2020. Reeves was initially released on bond following his indictment for these crimes. His bond was thereafter revoked after he got caught trafficking more fentanyl and cocaine while on bond.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Lawrence County Drug Task Force, the Pennsylvania State Police, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the convictions in this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Montgomery Woman Convicted for COVID-19 Era Paycheck Protection Program Loan FraudRead the Press Release
MONTGOMERY, ALABAMA – Today, a federal jury convicted Zsa Zsa Bouvier Couch, 55, from Montgomery, Alabama, on charges related to loans received through the Coronavirus Aid Relief and Economic Security (CARES) Act, announced United States Attorney Sandra J. Stewart. The CARES act is a federal law enacted in March 2020 to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic.
One source of relief provided by the CARES Act is the Paycheck Protection Program, or PPP, which authorizes the disbursement of forgivable loans to small businesses for job retention and certain other expenses. According to court records and evidence presented at trial, Couch submitted at least six fraudulent applications for loans under the U.S. Small Business Administration’s PPP. In total, Couch sought over $1.6 million. In each application, Couch falsely inflated the number of employees who worked for her purported businesses as well as the businesses’ average monthly payroll. These false statements resulted in her qualifying for larger PPP loan amounts than she would have otherwise been eligible to receive. Couch also made other false statements in her applications. For example, she failed to disclose that she had applied for multiple PPP loans for the same business. She also did not disclose her common ownership of multiple businesses. In support of the inflated employee numbers and average monthly payroll claimed in the applications, Couch submitted falsified tax documents. Ultimately, Couch received a total of $609,687.47 of PPP funds. Couch then used the funds to pay money to herself, her husband, and other family members and to purchase luxury vehicles.
On April 8, 2021, a federal grand jury indicted Couch on multiple counts of bank fraud, making false statements to a federally insured bank, and money laundering. Following the guilty verdict, Couch faces a potential sentence of up to 30 years in federal prison. A sentencing hearing will be scheduled for Couch in the coming months.
“The United States Attorney’s Office is committed to detecting, investigating, and prosecuting individuals who exploit public benefit programs,” said United States Attorney Stewart. “My office will continue to work with law enforcement partners to safeguard all tax dollars, especially programs dedicated to help businesses deal with economic hardships during times of crisis.”
“This conviction underscores our unwavering commitment to upholding the rule of law and ensuring that those who engage in fraudulent activities meant to exploit the CARES Act's provisions are held accountable for their actions,” stated Paul Brown, Special Agent in Charge with the FBI Mobile, Alabama Division. “This accomplishment would not have been possible without the dedication and hard work of our law enforcement partners. We understand the significance of CARES Act funds in supporting individuals and businesses during these challenging times, and we will continue to be vigilant in our efforts to hold accountable any individuals or entities engaged in fraudulent activities related to CARES Act relief programs.”
“The defendant fraudulently took money from programs designed to help struggling small businesses survive during the COVID-19 pandemic,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “The verdict today serves as a reminder to others who defrauded government aid programs that IRS-Criminal Investigation and our law enforcement partners are continuing the pursuit to bring them to justice.”
“The Treasury Inspector General for Tax Administration will aggressively pursue those who endeavor to defraud taxpayer-funded Coronavirus Aid, Relief, and Economic Security Act programs, which were established to provide assistance to American business owners during these unprecedented times,” said Mark Morini, Special Agent in Charge of the Treasury Inspector General for Tax Administration Southeast Field Office. “We appreciate the efforts of the U.S. Department of Justice and our law enforcement partners in this effort.”
The FBI, the Internal Revenue Service-Criminal Investigations, the Treasury Inspector General for Tax Administration, and the Small Business Administration Office of Inspector General, investigated this case. Assistant U.S. Attorneys J. Patrick Lamb and Joel Feil are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus and https://www.justice.gov/coronavirus/combatingfraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Michigan Man Sentenced to Two Years in Prison for Participating in Romance Scams and Other Fraud Schemes Targeting Elderly VictimsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that TIMY HAKIM was sentenced to two years in prison and an additional six months in home detention for his participation in a conspiracy to defraud at least 15 victims of romance schemes, lottery scams, and business email compromise schemes. HAKIM was sentenced today by U.S. District Judge Lewis J. Liman.
U.S. Attorney Damian Williams said: “Hakim and his co-conspirators devastated elderly and vulnerable victims, including recent widowers. Several of the victims lost their entire life savings and one victim reported becoming suicidal. A U.S. citizen, Hakim provided co-conspirators in South Africa with U.S. phones used to contact and deceive victims and opened and operated bank accounts that laundered the victims’ money. He will now spend time in prison and be compelled to make restitution to the victims of the schemes.”
According to Count One of the Information to which HAKIM pled guilty and other statements and submissions made in Court:
From at least in or about 2015 up to and including November 2019, HAKIM participated in an international wire fraud conspiracy that left at least 15 people and entities with over $1.4 million in losses. HAKIM facilitated the laundering of proceeds of three types of fraud schemes, a “Romance Scheme,” a “Lottery Scheme,” and a “BEC Fraud Scheme.” Through the Romance Scheme, a vulnerable individual was led to believe she or he was in a romantic online relationship with a perpetrator of the Scheme, when in fact, the perpetrator merely used this as a mechanism to build the victim’s trust and solicit the victim’s money. Through the Lottery Scheme, the scheme participants informed certain victims that they had won a cash prize but first needed to make certain payments to access the funds. Through the BEC Fraud Scheme, the scheme participants induced a corporate victim located in Manhattan to release company funds under fraudulent pretenses by impersonating the founder of the company.
HAKIM controlled multiple U.S. and foreign bank accounts that received funds from victims targeted by these schemes. HAKIM also obtained and provided his foreign co-conspirators in South Africa with cell phones with American numbers subscribed to his plan, which were used to contact and defraud victims. And on at least one occasion, HAKIM personally contacted a victim pretending to be a government official involved in detaining the victim’s partner to induce the victim to send money.
At least 15 individual and corporate victims lost money as part of HAKIM and his co-conspirators’ schemes. They include vulnerable, isolated, and elderly victims, who entered into relationships after the deaths of their spouses and, over a period of several years, were induced to drain their entire retirement savings and take out loans from family and friends. Many victims experienced severe emotional harm, including a woman who reported becoming suicidal after losing her retirement savings to this scheme.
* * *
In addition to his prison term, HAKIM, 47, was sentenced to three years of supervised release, including six months to be spent in home detention, and was ordered to pay $1,414,043 in restitution and to forfeit $671,452.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
The criminal case is being prosecuted by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorney Vladislav Vainberg is in charge of the prosecution.
Mexican National Pleads Guilty to Federal Drug and Immigration ChargesRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that on September 26, 2023, FERMIN DANIEL PUENTE-MONTOYA, age 32, pleaded guilty to a three-count bill of information charging him with violating the Federal Controlled Substances Act and Illegal Reentry of a Removed Alien.
According to court documents, PUENTE-MONTOYA and two others, conspired to transport an amount of methamphetamine from Houston, Texas to Kenner, Louisiana. PUENTE-MONTOYA furthered the conspiracy by transporting the methamphetamine from Houston to Kenner by personal vehicle. In the course of doing so, he was pulled over by law enforcement in Kenner who observed him giving the methamphetamine to his co-conspirators. Prior to this drug trafficking conspiracy, PUENTE-MONTOYA had been deported from the United States and reentered the country illegally.
On Counts 1 and 2, conspiracy to distribute and possession with intent to distribute methamphetamine, PUENTE-MONTOYA faces a maximum sentence of twenty years imprisonment, up to a $1,000,000 fine, and up to three years of supervised release. For Count 3 that charges him with illegal reentry, PUENTE-MONTOYA faces up to two years imprisonment, up to a $250,000 fine, and up to one year of supervised release. Each individual count also requires payment of a mandatory $100 special assessment fee.
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 http://www.justice.gov/OCDETF.
United States Attorney Evans praised the work of the Drug Enforcement Administration and the Kenner Police Department. The prosecution is being handled by Assistant United States Attorney Stuart Theriot of the Narcotics Unit.
Members of deadly alien smuggling ring convictedRead the Press Release
BROWNSVILLE, Texas – Several members of a deadly alien smuggling ring have pleaded guilty to conspiring to smuggle illegal aliens resulting in multiple deaths, announced U.S. Attorney Alamdar S. Hamdani.
Juan Manuel Tena, 40, Pharr, Julia Isairis Torres, 37, Israel Torres Jr., 34, and Jose Refugio Torres, 27, all of Roma, conspired to transport illegal aliens from the Rio Grande Valley to destinations within the United States. As a result of that conspiracy, a total of eight aliens were killed and two others seriously injured.
All four were all involved in the attempted smuggling of illegal aliens in March 2019 by motor vehicle from the Rio Grande Valley to Houston. During this failed attempt, a vehicle rolled over and caused the deaths of four non-U.S. citizens with serious injuries to one other.
Tena and others also attempted to smuggle illegal aliens in February 2022 by watercraft from South Padre Island to the Corpus Christi area. The watercraft capsized, resulting in the deaths of four other non-U.S. citizens and serious injury to another.
The victims included migrants from Honduras, Mexico, Guatemala, El Salvador and Ecuador as well as a 17-year-old boy from Ecuador and a pregnant woman from Honduras.
“From the shores of Corpus Christi to the backroads of the Rio Grande Valley, Tena and his associates left a dark path strewn with dead migrants. Eight people, including a pregnant mother, lost their lives due to their actions,” said Hamdani. “Like so many others, the victims in this case wanted to come to America for a better life, but Tena and his associates took advantage of them for profit. Now they are going to federal prison. Let this case be an example to anyone thinking about smuggling people in the United States, especially using dangerous means. You will be prosecuted. You will be held accountable.”
“Not only did this human smuggler conspire to undermine our nation’s immigration laws for his own personal profit, but eight migrants lost their lives because of his callous and reckless disregard for those whom entrusted him,” said Special Agent in Charge Craig Larrabee of Homeland Security Investigations (HSI). “HSI remains committed to working with our law enforcement partners, and utilizing our unique investigative authorities, to bring those responsible for horrible tragedies like this to justice.”
As part of his plea, Tena admitted to coordinating and recruiting co-conspirators to transport illegal aliens using watercraft and vehicles in both March 2019 and February 2022. Tena also agreed to the forfeiture of several properties in Roma and Pharr that he admitted to purchasing with the proceeds he received from the conspiracy.
As part of their pleas, Julia Torres and Jose Torres both admitted to their involvement in the March 2019 failed alien smuggling attempt.
On July 26, Israel Torres also pleaded guilty to his involvement in the March 2019 incident.
U.S. District Judge Roland Olvera accepted the pleas and set sentencing for Dec. 20. At that time, all four face up to life in federal prison and a possible $250,000 maximum fine.
Tena has been and will remain in custody pending sentencing.
Julia Torres, Israel Torres and Jose Torres were permitted to remain on bond pending their hearings.
HSI conducted the investigation with the assistance of Border Patrol; Coast Guard; Customs and Border Protection’s Air and Marine Operations; police departments in Port Mansfield and South Padre Island; Texas Rangers; Texas Game Wardens; sheriff’s offices in Kenedy, Duval and Willacy Counties; and the Willacy County District Attorney’s Office. Assistant U.S. Attorneys Edgardo J. Rodriguez and David A. Lindenmuth are prosecuting the case.
Member of Violent Gang in Pontiac Sentenced to 94 Months in Federal Prison for Aggravated Identity Theft and Possession of A MachinegunRead the Press Release
DETROIT – Immanuel Gates, 21, of Southfield, MI, was sentenced in federal court in Detroit today to 94 months in federal prison for illegal possession of a machine gun and aggravated identity theft, announced United States Attorney Dawn N. Ison. Gates was a member of the violent R Block street gang, which was active in the city of Pontiac.
Ison was joined in the announcement by Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General and James Deir, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court records, Gates stole over $400,000 from at least four different states, in an unemployment insurance fraud scheme. Gates used personal identifying information of victims to assume their identities and fraudulently apply for unemployment in Michigan, Rhode Island, Arizona, and California. Gates used addresses in Pontiac MI, Waterford MI, and Ventura CA to perpetrate this fraud. Gates engaged in approximately $413,114 of unemployment insurance fraud.
Gates used some of the money he fraudulently obtained to purchase firearms. In a single day, Gates spent at least $3,273 of his fraud proceeds to purchase four firearms. Two of those firearms were subsequently used in shootings in Pontiac. Gates also transferred at least $7,950 to a straw purchaser who purchased firearms on his behalf. The straw purchaser has pleaded guilty in federal court.
Gates also purchased over thirty Glock conversion devices, commonly called “switches” from a Russian website. A Glock conversion device converts a semi-automatic pistol into a fully automatic firearm. Gates spent no less than $14,700.00 on guns and Glock conversion devices between October of 2020 and September of 2021.
“This prosecution and sentence reflect my office’s commitment, to hold accountable those relative few individuals who drive violence in our communities,” stated United States Attorney Dawn Ison. “And make no mistake, those who supply guns for others to use illegally are driving violence and will face federal prosecution.”
“Today’s significant sentence sends a strong message to dangerous street gangs that the law enforcement community will use every available tool to ensure the safety of our communities. Immanuel Gates engaged in an egregious scheme to obtain more than $400,000 in unemployment insurance funds by using stolen identities to file fraudulent claims. Gates used the proceeds of his fraudulent activities to purchase machine gun switches, which turn handguns into automatic weapons” said Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General. “We are grateful to the U.S. Attorney’s Office for the Eastern District of Michigan, the ATF, and our other federal, state, and local law enforcement partners for their strong partnership and collaboration on these types of investigations.”
This case was investigated by special agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Department of Labor, Office of Inspector General. This case was prosecuted by Assistant United States Attorney Matthew Roth.
Melbourne Man Sentenced to More Than Three Years in Federal Prison for Stealing Social Security BenefitsRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that U.S. District Judge Carlos E. Mendoza has sentenced Tommy Mendez (42, Melbourne) to three years and one month in federal prison for theft of government funds. As part of his sentence, the court also entered an order of forfeiture in the amount of $173,125, the proceeds of the theft of government funds. Mendez had pleaded guilty on July 3, 2023.
According to court documents, Mendez applied for child auxiliary benefits, which are Social Security benefits due to children of deceased wage earners, on behalf of his minor child. Mendez also applied for a separate monthly benefit due to the surviving spouse of a deceased wage earner with a child-in-care. On the applications, Mendez falsely claimed that the eligible child was living with him. Mendez’s applications were approved, and the Social Security Administration (SSA) paid both monthly benefits to Mendez. Mendez misused the child auxiliary benefits received on behalf of his minor child for his own personal expenses and was never entitled to the child-in-care benefits because the minor child did not live with him. In total, Mendez received $173,125 in SSA benefits to which he was not entitled.
“Mr. Mendez fraudulently obtained Social Security benefits for himself and a minor child by falsely reporting information to the Social Security Administration (SSA). This prison sentence holds Mr. Mendez accountable for using fraudulently obtained benefits as his own personal slush fund,” said Gail S. Ennis, Inspector General for the SSA. “I thank the U.S. Attorney’s Office and Special Assistant United States Attorney Suzanne Huyler for their efforts in prosecuting this case.”
This case was investigated by the Social Security Administration, Office of the Inspector General. It was prosecuted by Special Assistant United States Attorney Suzanne Huyler.
Maryland Man Convicted of Gun ChargeRead the Press Release
WASHINGTON – Artie Byrd, 31, of Hyattsville, Maryland, was found guilty, today, of unlawful possession of a firearm by a convicted felon. The verdict, in the U.S. District Court for the District of Columbia, was announced by Matthew M. Graves, U.S. Attorney for the District of Columbia and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD). A sentencing hearing is scheduled for January 5, 2024.
According to evidence presented at trial, on September 2, 2022, Byrd was driving southbound on Connecticut Avenue, while somewhat intoxicated, in a car bearing counterfeit Delaware tags. Two MPD officers observed Byrd’s driving and noticed the fake tags. When the officers attempted a traffic stop, Byrd fled, turning down a dead-end cul-de-sac and crashing his car into a bench in front of a house. Byrd bailed out of the car and ran between two houses into a back yard. After realizing he was trapped in by a series of fences and a retaining wall, Byrd eventually surrendered. Officers canvassed his flight path and found a loaded Smith & Wesson .40 caliber semi-automatic handgun loaded with 14 rounds in the magazine and one in the chamber. No one observed Byrd with the gun in his hand and no one saw him toss the gun, but DNA analysis tied him to the gun.
Byrd faces a statutory maximum sentence of 15 years in prison, plus a period of supervised release. The court will determine the appropriate sentence after considering the guideline sentencing range and other relevant factors.
This case was investigated by the Metropolitan Police Department.
The case was prosecuted by former Assistant U.S. Attorney Connor Mullin, and Assistant U.S. Attorney’s Josh Gold, Colin Cloherty, and Cameron Tepfer, of the U.S. Attorney’s Office for the District of Columbia.
Man who sold fake Native Art to Seattle customers sentenced to two years of probation and 200 hours of community service for violations of the Indian Arts and Crafts ActRead the Press Release
Seattle – A 54-year-old Western Washington artist was sentenced today to 24 months of probation and 200 hours of community service for violations of the Indian Arts and Crafts Act by representing himself as a Native American artist, when he had no tribal enrollment or heritage, announced Acting U.S. Attorney Tessa M. Gorman. Lewis Anthony Rath, of Maple Falls, pleaded guilty in March 2023. U.S. District Judge Tana Lin thanked the tribal representatives who participated in the sentencing hearing. She read aloud the letter submitted by the San Carlos Apache Tribe Chairman, Terry Rambler, describing the harm to his 17,000 tribal members caused by Rath’s misappropriation of his Tribe’s culture in selling his fake artwork. Judge Lin also heard from Yavapai-Apache jewelry artist Matagi Sorensen who spoke about the importance of art to the survival of his people both culturally and financially.
According to documents filed in the case, the investigation of Lewis Anthony Rath began in July 2018, when the Indian Arts and Crafts Board received a complaint that Rath was representing himself as a San Carlos Apache Indian artist, when in fact, he is not an enrolled tribal member. For more than a year, Rath sold carved wooden totem poles, transformation masks, and pendants to Seattle retail stores, claiming they were Native American art.
Agents executed a federal search warrant at Rath’s residence and recovered feathers from birds protected under the Bald and Golden Eagle Protection Act and the Migratory Bird Treaty Act, according to results from the National Fish and Wildlife Forensic Lab.
In a statement to the court, Assistant U.S. Attorney Tate London stated, “Rath’s victims are real: they are Indian artists, many who struggle to make a living, who lost out on sales to those who seek authentic Indian artwork; and they are also consumers who were defrauded into purchasing fake Indian art.”
“Lewis Anthony Rath’s false Tribal affiliation involving the San Carlos Apache Tribe cheated customers and impacted the economic and cultural livelihood of Native American artists," said Edward Grace, Assistant Director of the U.S. Fish and Wildlife Service Office of Law Enforcement. “Protecting American Indian and Alaska Native culture and traditions is a critical part of the Indian Arts and Crafts Act. Our dedicated team of special agents work on behalf of the U.S. Department of the Interior and the Indian Arts and Crafts Board to protect American Indian and Alaska Native artists and the consumers who purchase authentic Native American art and craftwork. This sentencing is important in the ongoing effort to hold Indian Arts and Crafts Act violators accountable. We want to thank our partners at the U.S. Department of Justice and the Indian Arts and Crafts Board for their assistance with this investigation.”
“Counterfeit Indian art, like Lewis Anthony Rath’s carvings and jewelry that he misrepresented and sold as San Carlos Apache-made, tears at the very fabric of Indian culture, livelihoods, and communities,” stated U.S. Department of the Interior Indian Arts and Crafts Board (IACB) Director Meridith Stanton. “The IACB by statute is responsible for administering the Indian Arts and Crafts Act (IACA), an anti-counterfeiting law to protect Indian artists and consumers. Mr. Rath’s actions demean and rob authentic Indian artists who rely on the creation and sale of their artwork to put food on the table, make ends meet, and pass along these important cultural traditions and skills from one generation to the next. His actions also undermine consumers’ confidence in the Indian art market in the Northwest and nationwide. Due to the outstanding work of the Office of the U.S. Attorney-Western District of Washington and the U.S. Fish and Wildlife Service IACA Investigative Unit, Mr. Rath is being held accountable and the message is clear. For those selling counterfeit Indian art and craftwork it is important to know that wherever you are we will diligently work to find you and prosecute you under the Indian Arts and Crafts Act.”
The case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement. The case was prosecuted by Assistant United States Attorney and Tribal Liaison J. Tate London.
Man is Sentenced 15 Years for Possession of Meth and Firearm ChargesRead the Press Release
DEL RIO – An Eagle Pass man was sentenced on Monday to 15 years in prison for distributing methamphetamine and being a felon in possession of a firearm.
According to court documents, on October 21, 2021, a search warrant was conducted at the residence of Mario Alberto Torres Jr., 30, and co-defendant Kayla Saldana, 27, of Batesville, Texas. During the search, law enforcement found over 350 grams of methamphetamine and two handguns.
“Through the efforts of the Eagle Pass DEA, a significant source of narcotics supply at the community level was disrupted,” said U.S. Attorney Jaime Esparza. “The U.S. Attorney’s Office will continue to work hand in hand with law enforcement to rid our communities of these illegal and dangerous substances.”
“Mario Alberto Torres Jr., was profiting off small communities by selling poison in the form of meth," said Special Agent in Charge Daniel C. Comeaux of the Houston Division. "Let this sentence be a clear message to anyone considering harming our cherished communities. Our collaborative efforts with our federal, state, and local partners continue to demonstrate our unwavering commitment to protecting our citizens' lives.”
On July 18, 2022, Torres pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine; one count of possession with intent to distribute methamphetamine; and two counts of felon in possession of a firearm. Torres has remained in federal custody since his arrest on October 21, 2021.
On April 4, 2022, co-defendant Kayla Saldana pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. On April 20, 2023, Saldana was sentenced to 11 years in prison.
The DEA investigated the case.
Assistant U.S. Attorney Brett Miner prosecuted the case.
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Man Who Allegedly Attempted to Stab Flight Attendant and Open Airplane Door Mid-Flight Indicted by Grand JuryRead the Press Release
BOSTON – A Leominster, Mass. man has been indicted by a federal grand jury in Boston for allegedly attempting to open an emergency exit door while aboard a United Airlines flight from Los Angeles to Boston and then allegedly attempting to stab a flight attendant in the neck.
Francisco Severo Torres, 33, was indicted on one count of interference and attempted interference with flight crew members and attendants using a dangerous weapon. Torres was initially charged by criminal complaint on March 6, 2023 following his arrest at Boston Logan International Airport.
According to the charging documents, on March 5, 2023, Torres was a passenger aboard a United Airlines flight from Los Angeles to Boston. Approximately 45 minutes prior to landing, the flight crew received an alarm in the cockpit that a starboard side door located between the first class and coach sections of the aircraft was disarmed. Upon inspection, a flight attendant found that the door’s locking handle had been moved out of the fully locked position – approximately a quarter of the way towards the towards the unlocked position – and that the emergency slide arming lever had been moved to the “disarmed” position. The flight attendant reported this to the captain and flight crew after securing the door and emergency slide.
In subsequent discussions, a fellow flight attendant reported that he had observed Torres near the door and believed Torres had tampered with the door. A flight attendant then confronted Torres about tampering with the door, to which he allegedly responded by asking if there were cameras showing that he had done so. According to court documents, the flight attendant then notified the captain that they believed Torres posed a threat to the aircraft and that the captain needed to land the aircraft as soon as possible.
Shortly thereafter, it is alleged that Torres got out of his seat and approached the starboard side door where two flight attendants were standing in the aisle. One of the flight attendants saw Torres mouthing something that he could not hear. Video taken by a passenger allegedly depicts Torres yelling at points that he would “kill every man on this plane” and “I’m taking over this plane.” Torres then allegedly thrust towards one of the flight attendants in a stabbing motion with a broken metal spoon, hitting the flight attendant on the neck area three times. Passengers then tackled Torres and he was restrained with the assistance of flight crew. Torres was immediately taken into custody upon the flight’s arrival to Boston.
It is alleged that during subsequent interviews, passengers who were aboard the flight reported that Torres asked a fellow passenger where on the safety card it showed where the door handle was located during the flight attendants’ safety briefing prior to takeoff and that Torres was seen pacing in a galley before attacking the flight attendant.
The charge of interference and attempted interference with flight crew members and attendants using a dangerous weapon provides for a sentence of up to life in prison, up to five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Boston Police Commissioner Michael Cox made the announcement today. Assistant U.S. Attorney Elianna J. Nuzum of the Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Local man charged with orchestrating investment fraud schemeRead the Press Release
HOUSTON – A 38-year-old Mont Belvieu resident has been taken into federal custody on charges he diverted victims’ monies for his personal use, announced U.S. Attorney Alamdar S. Hamdani.
A federal grand jury returned the indictment Sept. 27 against Carl Spence.
Spence allegedly ran an investment business called AEI Financial from his residence. According to the charges, Spence lured victims by promising he would invest their funds and obtain 20-30% returns on investment. He also allegedly falsely represented to investors that he was registered with the SEC.
Spence would divert victims’ money and use it to pay for his own personal expenses or to pay previous investors, according to the charges. In addition, although the victims’ money had been significantly (or nearly completely) depleted, Spence would allegedly produce fraudulent account statements showing that the victims’ accounts had grown.
Spence faces one count of wire fraud which carries a penalty of up to 20 years imprisonment and a possible $250,000 maximum fine, upon conviction.
The FBI conducted the investigation. Assistant U.S. Attorneys Thomas Carter and Brad Gray are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Local man admits to fondling minor while producing child pornographyRead the Press Release
HOUSTON - A 38-year-old resident of Montgomery County has pleaded guilty to sexual exploitation of a child and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Authorities identified James Aubrey Zachary Wasson after discovering over 500 files of child pornography he had uploaded between March 2019 and March 2021. One folder contained a series of 51 photographs, all taken on a single date in December 2020. Some showed him in a state of sexual arousal next to a minor female child. He also appeared to be fondling her under her clothing.
A subsequent search of Wasson’s cell phone confirmed it was the device he used to produce the series of sexually explicit photographs. The cell phone also contained other files of child pornography saved between May 2020 and May 2021.
The minor victim also identified Wasson and recalled when he took the photographs.
U.S. District Judge George C. Hanks accepted the plea and set sentencing for Jan. 4, 2024. At that time, Wasson faces a minimum of 15 and up to 30 years in prison for sexual exploitation of a child, as well as up to 10 years for possession of child pornography.
He has been and will remain in custody pending sentencing.
Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Stephanie Bauman is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Leader of White Supremacist Group Pleads Guilty to Conspiring to Make Death Threats Against JournalistRead the Press Release
Earlier today in federal court in Brooklyn, Nicholas Welker, also known as “King ov Wrath,” pleaded guilty to conspiring to make interstate threats. Welker, the leader of Feuerkrieg Division (FKD), an international racially or ethnically motivated violent extremist group (RMVE), posted death threats against a Brooklyn-based journalist (the “Journalist”) to cause him/her to stop reporting on the extremist group. The proceeding was held before United States District Judge Pamela K. Chen. When sentenced, Welker faces up to five years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
“Welker and his hate group threatened a journalist to prevent reporting on the white supremacist group that Welker led. Today’s guilty plea represents a victory for freedom of the press,” stated United States Attorney Peace. “This prosecution demonstrates our commitment to ensuring that those who espouse hateful, extremist ideologies, like Welker, cannot silence First Amendment-protected activity through threats of violence and will be met with the full force of the law.”
Mr. Peace praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies. Mr. Peace also thanked the Estonian Internal Security Service and Prosecutor’s Office for their valuable support.
According to court filings and facts presented at the plea hearing, Welker’s threat included a photograph of the Journalist with a gun aimed at his/her head and the words “Race Traitor” over the journalist’s eyes. The threat stated, “JOURNALIST F[***] OFF! YOU HAVE BEEN WARNED.” Welker posted the threat to a public online forum. Two under-aged FKD members tweeted the threat directly at the Journalist’s twitter handle so that he/she would see the death threat. Welker intended to frighten the Journalist into dropping his/her reporting on Welker’s hate group.
FKD members share a common goal of challenging laws, social order, and the government via terrorism and other violent acts. The organization encourages attacks on racial minorities, the Jewish community, the LGBTQ+ community, the U.S. Government, journalists, and critical infrastructure. FKD has members in the United States and abroad.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Ellen H. Sise and Andrew Reich are in charge of the prosecution with assistance from Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section.
The Defendant:
NICHOLAS WELKER (also known as “King ov Wrath”)
Age: 32
San Jose, CaliforniaE.D.N.Y. Docket No. 23-CR-141 (PKC)
Kentwood Resident Pleads Guilty to Federal Drug and Firearms ChargesRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that TRACY DAVIS, age 51, of Kentwood, LA, pled guilty on September 26, 2023 to one (1) count of Possession with Intent to Distribute a Controlled Dangerous Substance, in violation of Title 21, United States Code, Section 841, one (1) count of Possession of Firearms in Furtherance of a Drug Trafficking Offense, in violation of Title 18, United States Code, Section 924(c)(1)(A), and one (1) count of Possession of a Firearm by a Convicted Felon, in violation of Title 18, United States Code, Section 922(g)(1).
According to court documents, DAVIS was prohibited from possessing a firearm due to a previous felony conviction. The Drug Enforcement Administration and Hammond Police Department began investigating DAVIS due to a complaint that DAVIS was distributing narcotics in the Kentwood area. A search warrant was obtained for two residences and a vehicle associated with DAVIS, that resulted in the seizure of cocaine and multiple firearms from within the residences and vehicle.
For the controlled dangerous substance charge, DAVIS faces a maximum sentence of twenty years, up to a $1,000,000 fine, and up to three years of supervised release. For the possession of a firearm in furtherance of drug trafficking charge, DAVIS faces an additional five years up to life imprisonment that must run consecutive to every other term of imprisonment, a fine of up to $250,000 and up to five years of supervised release. For the possession of a firearm by a convicted felon charge, DAVIS faces up to fifteen years imprisonment, up to a $250,000 fine, and up to three years of supervised release. Each count also requires payment of a mandatory $100 special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This 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 http://www.justice.gov/OCDETF.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration and Hammond Police Department. This case is being prosecuted by Assistant U.S. Attorney Stuart Theriot of the Narcotics Unit.
KC Street Gang Members Sentenced for Drug-Trafficking, Drive-By Shooting, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Two Kansas City, Mo., men who were part of a violent street gang have been sentenced in federal court for their roles in a drug-trafficking conspiracy and other violent criminal behavior that included illegal firearms and a drive-by shooting outside a daycare center where children were present.
David J. Duncan, IV, also known as “Deej” or “DJ,” 34, and Gary O. Toombs, 43, were sentenced in separate appearances before U.S. District Judge Greg Kays on Tuesday, Sept. 26. Duncan was sentenced to 30 years in federal prison without parole. Toombs was sentenced to 12 years and seven months in federal prison without parole.
On Sept. 15, 2022, Duncan and Toombs were found guilty at trial of participating in a conspiracy to distribute heroin, cocaine, oxycodone, and marijuana from Jan. 1, 2011, to Oct. 1, 2019.
Co-defendants Ladele D. Smith, also known as “Dellio” and “Dog,” 36, and Roy Franklin, Jr., 34, both of Kansas City, Mo., also were convicted during the same trial and were sentenced on Sept. 18, 2023. Smith was sentenced to 35 years in federal prison without parole. Franklin was sentenced to 30 years in federal prison without parole.
The investigation into the 246 street gang, operating in the Kansas City metropolitan area, began in June 2017. The gang is an alliance of gang members from the 24th, 43rd, and 68th streets of Kansas City, Mo. Smith was identified as a leader of the gang, and Franklin, Duncan and Toombs as members of the gang.
Duncan and Smith are local rap artists who often posted to social media platforms, such as YouTube, with references to the 246 gang. In some of the videos, they display firearms and large amounts of cash. The social media posts also portrayed Smith and others wearing expensive jewelry, watches, hats, clothing and tactical vests that depicted 246 gang affiliation.
Members of the 246 gang used a residence in the 4400 block of Kensington, which is within 1,000 feet of George Washington Carver Dual Language School, a public elementary school, for gang and drug-trafficking business. No one utilized the house as a primary or permanent residence. On Oct. 2, 2019, law enforcement officers executed a search warrant at the house and seized 295 grams of heroin as well as two assault rifles and a stolen vehicle that had been used in a drive-by shooting the previous month. According to court documents, the drive-by shooting was done at Duncan’s direction. Officers also found a Glock 9mm semi-automatic pistol and a Century Arms International 7.62x39mm pistol under the couch in the living room and a Glock .40-caliber semi-automatic pistol on the kitchen cabinet.
Duncan was arrested at his apartment on Oct. 2, 2019. Officers searched his residence and found a Zastava 7.62 x 39mm rifle, a Norinco 7.62 x 39mm rifle, a Glock 9mm semi-automatic pistol, two loaded rifle magazines, and a loaded handgun magazine under the bed in a bedroom. Officers found $7,100 in cash and four bags that contained a total of 179 pills, a total of more than two kilograms of oxycodone, in the living room.
Duncan also was found guilty of one count of drive-by shooting, one count of discharging a firearm in furtherance of a violent crime, one count of possessing oxycodone the intent to distribute, one count of possessing a firearm in furtherance of a drug-trafficking crime, and five counts of money laundering related to the purchases of money orders with drug-trafficking proceeds. Those money orders, according to court documents, were used to pay rent for his apartment and a payment on his Dodge Charger. Duncan laundered at least $272,231 in cash deposits, purchases, and money orders, according to court documents.
Toombs Smith and Franklin also were found guilty at trial of participating in a conspiracy to possess firearms in furtherance of a drug-trafficking crime. In addition to the two conspiracies, Toombs was found guilty of maintaining a residence for the purpose of manufacturing, distributing, and using controlled substances.
Smith and Franklin also were convicted of multiple counts that charged them with various drug-trafficking and firearms crimes.
Duncan and Toombs are the final defendants to be sentenced in this case. In addition to the four defendants who were convicted at trial, 14 defendants in this case pleaded guilty and have been sentenced.
This case is being prosecuted by Assistant U.S. Attorneys Ashleigh Ragner, Mary Kate Butterfield and Ben Hurst. It was investigated by the FBI, the Kansas City, Mo., Police Department, IRS-Criminal Investigation, and the Missouri State Highway Patrol.
KC Metro Strike Force
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
Justice Department and FTC Announce Additional Workshops on the 2023 Draft Merger GuidelinesRead the Press Release
The Justice Department and the Federal Trade Commission (FTC) announced today that they plan to hold two additional workshops to facilitate public dialogue on the 2023 Draft Merger Guidelines that the agencies announced in July. Like the agencies’ first workshop on Sept. 5, these events will promote a detailed discussion about the Draft Guidelines to complement the thousands of public comments submitted to the agencies. Each of the two remaining workshops will be held in-person at an academic institution.
The second workshop, co-hosted with the MIT Economics Department and the Mossavar-Rahmani Center for Business and Government, Harvard Kennedy School, will take place at the Harvard Kennedy School on Oct. 5 from 1:30 p.m. to 4:45 p.m. ET. Participants who register here will receive a link to view the event virtually. More information, including a tentative agenda for the workshop, can be found on the event page.
The third workshop, co-hosted with the University of Chicago Law School, Coase Sandor Institute for Law and Economics, will take place on Nov. 3 from 9 a.m. to 4:45 p.m. CT. More information about the workshop, including an agenda, will be updated on the event page in the coming weeks.
If either event needs to be postponed for any reason, information on rescheduling will appear on the event page.
The Justice Department’s Antitrust Division and the FTC are reviewing comments from the public on the Draft Guidelines, submitted online during the comment period, at www.regulations.gov/docket/FTC-2023-0043.
The agencies protect competition through enforcement of the antitrust laws and other federal competition statutes. Since 1968, the agencies have issued and revised merger guidelines to enhance transparency and promote awareness of how the agencies review mergers and acquisitions under the federal antitrust laws.
Justice Department Secures $9 Million Agreement with Washington Trust Company to Resolve Redlining Claims in Rhode IslandRead the Press Release
The Justice Department announced today that Washington Trust Company (Washington Trust), the oldest community bank in the nation, has agreed to pay $9 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining majority-Black and Hispanic neighborhoods in Rhode Island.
Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of residents in those communities.
“This settlement should send a strong message to banks regarding the Justice Department’s firm commitment to combat modern-day redlining and ensure that all lenders are providing equal access to home loan opportunities to communities of color,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This resolution will provide critical relief to impacted Black and Hispanic communities, enabling them to buy a home, keep their home or access the equity in their home. Ending redlining and providing relief to communities of color impacted by this unlawful practice is a necessary step in ongoing efforts to reduce racial wealth and homeownership gaps across our country.”
“Everyone who pursues the American dream has the right to expect to be treated equally and with dignity, regardless of their race, their background, or zip code. When communities are denied access to fair lending, families are denied the opportunity to build stability and financial success,” said U.S. Attorney Zachary A. Cunha for the District of Rhode Island. “I am pleased that, as a result of the hard work of attorneys in my office and the department’s Civil Rights Division, Washington Trust has agreed to take targeted and extensive measures to make meaningful lending services available for all Rhode Islanders, regardless of race or background.”
The complaint alleges, from 2016 through at least 2021, Washington Trust failed to provide mortgage lending services to majority-Black and Hispanic neighborhoods in Rhode Island. The complaint alleges that despite expansion across the state of Rhode Island, Washington Trust has never opened a branch in a majority-Black and Hispanic neighborhood. The complaint alleges that Washington Trust relied on mortgage loan officers working out of only majority-white areas as the primary source for generating loan applications, and Washington Trust failed to train or incentivize its lending staff or conduct outreach, marketing and advertising of its mortgage services to compensate for its lack of branches and presence in majority-Black and Hispanic areas. The complaint further alleges that, compared to Washington Trust, over the same six-year period, other banks received nearly four times as many loan applications each year in majority-Black and Hispanic neighborhoods in Rhode Island. The complaint also alleges that, even when Washington Trust generated loan applications from majority-Black and Hispanic areas, the applicants themselves were disproportionately white.
Under the proposed consent order, which is subject to court approval, Washington Trust has agreed to do the following:
- Invest at least $7 million in a loan subsidy fund to increase access to home mortgage, home improvement, home refinance and home equity loans and lines of credit for residents of majority-Black and Hispanic neighborhoods in Rhode Island;
- Spend $1 million on community partnerships to provide services that increase residential mortgage credit access for residents of those neighborhoods;
- Spend $1 million for advertising, outreach, consumer financial education and credit counseling focused on majority-Black and Hispanic neighborhoods;
- Open two new branches in majority-Black and Hispanic neighborhoods in Rhode Island; and ensure at least two mortgage loan officers are dedicated to serving these neighborhoods; and
- Employ a Director of Community Lending who will oversee the continued development of lending in communities of color.
Washington Trust also agreed to complete a community credit needs assessment, to assess and report on its fair lending program; and to train staff on the bank’s obligations under the consent order. Washington Trust worked cooperatively with the department to resolve and remedy the redlining concerns that were identified and agreed to settle this matter without contested litigation.
In October 2021, Attorney General Merrick B. Garland and Assistant Attorney General Kristen Clarke launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since 2021, the department has announced nine redlining cases and secured $98 million in relief for communities of color that have been the victims of lending discrimination across the country.
A copy of the complaint and information about the department’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online.
washington_trust_consent_order.pdf washington_trust_complaint.pdfJustice Department Secures $9 Million Agreement with Washington Trust Company to Resolve Redlining Claims in Rhode IslandRead the Press Release
PROVIDENCE, RI – The United States Attorney’s Office for the District of Rhode Island and the Justice Department’s Civil Rights Division announced today that Washington Trust Company (Washington Trust), the oldest community bank in the nation, has agreed to pay $9 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining majority-Black and Hispanic neighborhoods in Rhode Island.
Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color, or national origin of residents in those communities.
“Everyone who pursues the American dream has the right to expect to be treated equally and with dignity, regardless of their race, their background, or zip code. When communities are denied access to fair lending, families are denied the opportunity to build stability and financial success,” said U.S. Attorney Zachary A. Cunha. “I am pleased that, as a result of the hard work of attorneys in my office and the Department’s Civil Rights Division, Washington Trust has agreed to take targeted and extensive measures to make meaningful lending services available for all Rhode Islanders, regardless of race or background.”
“This settlement should send a strong message to banks regarding the Justice Department’s firm commitment to combat modern-day redlining and ensure that all lenders are providing equal access to home loan opportunities to communities of color,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This resolution will provide critical relief to impacted Black and Hispanic communities, enabling them to buy a home, keep their home or access the equity in their home. Ending redlining and providing relief to communities of color impacted by this unlawful practice is a necessary step in ongoing efforts to reduce racial wealth and homeownership gaps across our country.”
The complaint alleges, from 2016 through at least 2021, Washington Trust failed to provide mortgage lending services to majority-Black and Hispanic neighborhoods in Rhode Island. The complaint alleges that despite expansion across the state of Rhode Island, Washington Trust has never opened a branch in a majority-Black and Hispanic neighborhood. The complaint alleges that Washington Trust relied on mortgage loan officers working out of only majority-white areas as the primary source for generating loan applications, and Washington Trust failed to train or incentivize its lending staff or conduct outreach, marketing, and advertising of its mortgage services to compensate for its lack of branches and presence in majority-Black and Hispanic areas. The complaint further alleges that, compared to Washington Trust, over the same six-year period, other banks received nearly four times as many loan applications each year in majority-Black and Hispanic neighborhoods in Rhode Island. The complaint also alleges that, even when Washington Trust generated loan applications from majority-Black and Hispanic areas, the applicants themselves were disproportionately white.
Under the proposed consent order, which is subject to court approval, Washington Trust has agreed to do the following:
- Invest at least $7 million in a loan subsidy fund to increase access to home mortgage, home improvement, home refinance and home equity loans and lines of credit for residents of majority-Black and Hispanic neighborhoods in Rhode Island;
- Spend $1 million on community partnerships to provide services that increase residential mortgage credit access for residents of those neighborhoods;
- Spend $1 million for advertising, outreach, consumer financial education and credit counseling focused on majority-Black and Hispanic neighborhoods;
- Open two new branches in majority-Black and Hispanic neighborhoods in Rhode Island; and ensure at least two mortgage loan officers are dedicated to serving these neighborhoods; and
- Employ a Director of Community Lending who will oversee the continued development of lending in communities of color.
Washington Trust also agreed to complete a community credit needs assessment, to assess and report on its fair lending program; and to train staff on the bank’s obligations under the consent order. Washington Trust worked cooperatively with the department to resolve and remedy the redlining concerns that were identified and agreed to settle this matter without contested litigation.
In October 2021, Attorney General Merrick B. Garland and Assistant Attorney General Kristen Clarke launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since 2021, the department has announced nine redlining cases and secured $98 million in relief for communities of color that have been the victims of lending discrimination across the country.
A copy of the complaint and information about the department’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online.
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complaint_exhibits_and_consent_order.pdf united_states_attorney_cunha_prepared_remarks_9-27-2023.docx washington_trust_branch_locations.pdfJustice Department Files Complaint Alleging Environmental Violations by eBayRead the Press Release
The Justice Department filed a complaint against eBay Inc. today for unlawfully selling and distributing hundreds of thousands of products in violation of the Clean Air Act (CAA); the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) and the Toxic Substances Control Act (TSCA). The complaint was filed on behalf of the U.S. Environmental Protection Agency (EPA) in federal court in Brooklyn.
The complaint alleges that eBay sold, offered for sale or caused the sale of more than 343,000 aftermarket defeat devices, which defeat motor vehicle emission controls, a violation of the CAA. Aftermarket defeat devices significantly increase pollution emissions – including carbon monoxide, nitrogen oxides, particulate matter and nonmethane hydrocarbons – that harm public health and impede efforts by the EPA, states, Tribes and local agencies to plan for and attain air quality standards.
The complaint also alleges that eBay has violated FIFRA by unlawfully distributing or selling at least 23,000 unregistered, misbranded or restricted-use pesticide products, even in violation of a stop sale order EPA issued to eBay in 2020 and amended in 2021. Examples include a high toxicity insecticide banned in the United States, restricted use pesticides that only certified applicators may apply and products fraudulently claiming to protect users against the SARS-CoV-2 virus.
Finally, the complaint alleges that eBay has distributed over 5,600 items in violation of the TSCA Methylene Chloride Rule. The rule prohibits retailers from distributing in commerce products that contain methylene chloride for paint and coating removal to prevent unreasonable risks, including death, presented by these types of products.
“Laws that prohibit selling products that can severely harm human health and the environment apply to e-commerce retailers like eBay just as they do to brick-and-mortar stores,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “We are committed to preventing the unlawful sale and distribution of emissions-defeating devices and dangerous chemicals that, if used improperly, can lead to dire consequences for individuals and communities.”
“Our nation’s environmental laws protect public health and the environment by prohibiting the unlawful sale of defeat devices; unregistered, misbranded and restricted use pesticides; and unsafe products containing toxic chemicals such as methylene chloride,” said Assistant Administrator David M. Uhlmann of the EPA’s Office of Enforcement and Compliance Assurance. “The complaint filed today demonstrates that EPA will hold online retailers responsible for the unlawful sale of products on their websites that can harm consumers and the environment.”
“eBay’s sale of emission control defeat devices, pesticides and other unsafe products poses unacceptable risks to our communities disproportionately impacted by environmental and health hazards,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Together with our partners, this office will vigorously enforce federal law against those whose conduct endangers public health and the environment.”
The complaint seeks a court order that eBay’s business practices as an e-commerce retailer violated the CAA, FIFRA and TSCA and requests injunctive relief to enjoin eBay from further violations of these laws, as well as civil penalties for CAA violations.
The lawsuit, filed in U.S. District Court for the Eastern District of New York, is being handled by Senior Attorney James Freeman for ENRD’s Environmental Enforcement Section and by Assistant U.S. Attorneys Michael Blume and Paulina Stamatelos for the Eastern District of New York.
Jury Finds District Man Guilty of Armed Carjacking and Related ChargesRead the Press Release
Defendant Attacked Victim When She Stopped for Gas
WASHINGTON – Andrew Patrick, 38, of Washington, D.C., was convicted by a Superior Court jury of all charges including: armed carjacking, possession of a firearm during a crime of violence, felon in possession, carrying a pistol without a license, possession of an unregistered firearm, and unlawful possession of ammunition. The verdict was announced by U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD). The Honorable Judge Lynn Leibovitz scheduled sentencing for December 1, 2023, at 9:30am.
According to the government’s evidence, on September 22, 2022, the victim took her 2005 blue Chevy Suburban to the Good Hope Road gas station in Washington, DC. The defendant, dressed in a black jacket with white stripes and a hoodie, a red bandana, blue jeans, and grey New Balance sneakers, approached the victim and demanded her car keys while holding her at gunpoint. The victim begged Patrick not to hurt her. Patrick pushed her up against her own vehicle, took her keys, and drove away in the victim’s car. The victim called 911 and gave officers a description of her assailant and his black and grey firearm. Later that day, a license plate reader detected the tags of the blue Chevy Suburban on North Capitol NE and Benning Road NE. Officers located and apprehended the vehicle, which was being driven by the defendant. The defendant told officers that he received the vehicle from a man with a black hoodie. Upon arresting Patrick, officers discovered a black and grey Glock 37 in a red floral satchel on the front passenger floorboard.
In announcing the verdict, U.S. Attorney Graves and Acting Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office including: Paralegal Specialist Renee Prather, Victim/Witness Advocate Christie Bloodworth, and Litigation Technology Specialist Charlie Bruce.
Finally, they commended the work of Assistant U.S. Attorneys Gregory J. Evans and Omeed A. Assefi, who investigated, prosecuted, and tried the case.
Idaho man sentenced to five years in prison for stalkingRead the Press Release
MISSOULA — An Idaho man who admitted to threatening and harassing a woman in Montana was sentenced today to five years in prison, to be followed by three of supervised release, U.S. Attorney Jesse Laslovich said.
Daniel August Meyer, 39, of Post Falls, Idaho, pleaded guilty in May to stalking.
U.S. District Judge Dana L. Christensen presided.
In court documents, the government alleged that in August of 2022, the Missoula County Sheriff’s Office began investigating Meyer after the victim, identified as Jane Doe, reported that Meyer had threatened to kill her. Jane Doe reported that Meyer continually harassed her through phone calls and text messages after she moved to Missoula. In September 2023, Jane Doe discovered a tracking device on her vehicle believed to have been installed by Meyer. Meyer continued calling and leaving voice messages, including a message stating he was in town and on his way to her location. Law enforcement arrested Meyer on Sept. 14, 2023. A search of his vehicle led to the recovery of body armor, a sawed-off shotgun, and a large amount of ammunition. Meyer was prohibited from possessing a firearm or ammunition because he was subject to a permanent Order of Protection from 2010.
Assistant U.S. Attorney Tara J. Elliott prosecuted the case. The FBI’s Montana Regional Violent Crime Task Force and Missoula Police Department conducted the investigation.
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Idabel Resident Pleads Guilty to Murder in Indian Country and Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Zachary Carlton Ty Capps, age 28, of Idabel, Oklahoma, pleaded guilty to charges in a Superseding Indictment related to the murder of an Idabel resident.
At the plea hearing, Capps pleaded guilty to one count of Second Degree Murder in Indian Country and one count of Use, Carry, Brandish, and Discharge of a Firearm During and in Relation to a Crime of Violence. Capps admitted during the plea hearing he discharged a firearm to commit the murder.
According to investigators, Capps was seen with the victim in a white truck on November 15, 2022. Later that evening, law enforcement located Capps at a house in Idabel. During a search of the residence, agents located and recovered a revolver that was reported to be in Capps’s possession earlier in the night. Two days later, the victim was discovered in the same white truck, having been shot in the head. According to forensic reports, the revolver recovered from the Idabel residence fired the fatal bullet. The crime occurred in McCurtain County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Federal Bureau of Investigation, the Choctaw Nation Tribal Police, the Idabel Police Department, and the McCurtain County Sheriff’s Office.
The Honorable Judge Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Capps was remanded to the custody of the U.S. Marshals pending sentencing.
Assistant United States Attorney Benjamin D. Traster represented the United States.
Houston Man Arrested for Traveling to Have Sex with 13-Year-Old GirlRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces the arrest and detention of Tyler Colton Rock (26, Houston, Texas). A federal grand jury has returned an indictment charging Rock with production of child sex abuse material, enticement of a minor, travel with intent to engage in illicit sexual conduct, and transfer of obscene material to a minor. If convicted, Rock faces a minimum mandatory sentence of 15 years in federal prison for the production offense and a minimum mandatory sentence of 10 years’ imprisonment for the enticement offense.
If convicted on all counts, Rock faces a maximum penalty of life in federal prison for each offense.
According to the indictment, Rock had a minor child victim send him nude images of herself and he sent her an image of his erect penis. Additionally, Rock traveled to the Middle District of Florida to engage in sexual intercourse with the child.
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 Federal Bureau of Investigation and the St. Petersburg Police Department. It will be prosecuted by Assistant United States Attorney Abigail K. King.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Hospice medical director sentenced for $150M hospice fraud schemeRead the Press Release
McALLEN, Texas - A 52-year-old San Antonio man has been sentenced for his role in a scheme that involved the submission of over $150 million in false and fraudulent claims to Medicare for hospice and other health care services.
Jesus Virlar-Cadena pleaded guilty June 4, 2019.
U.S. District Judge Rolando Olvera has now ordered Virlar-Cadena to serve 50 months in federal prison to be immediately followed by one year of supervised release. The court also ordered Virlar-Cadena to pay $9 million in restitution and $9 million in forfeiture.
From 2009 to 2018, Virlar-Cadena served as the medical director of the Merida Group, a large health care company that operated dozens of locations throughout Texas. He was a physician but the Texas Medical Board later suspended his medical license.
A federal jury convicted co-conspirators Rodney Mesquias, 53, San Antonio, Henry McInnis, 52, Harlingen, and Francisco Pena in October 2019.
Evidence at the trial showed that the Merida Group marketed their hospice programs through a group of companies. They enrolled patients with long-term incurable diseases such as Alzheimers and dementia as well as patients with limited mental capacity who lived at group homes, nursing homes and in housing projects. In some instances, Merida Group marketers falsely told patients they had less than six months to live. They also sent chaplains to the patients based on the false pretense they were near death.
In order to bill Medicare for these services, the Merida Group hired Virlar and other medical directors but made payment of their medical director fees contingent upon an agreement to certify unqualified patients for hospice. In addition to regular medical director payments, Virlar received luxury trips, bottle service at exclusive nightclubs and other perks in exchange for his certification of unnecessary hospice patients. In exchange for these illegal kickbacks, Virlar himself certified over $18 million in unnecessary hospice services as part of the over $150 million conspiracy.
Mesquias and McInnis were previously sentenced to 20 and 15 years in prison, respectively. Pena is now deceased.
Virlar-Cadena was permitted to remain on bond pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Department of Health and Human Services – Office of Inspector General (OIG), FBI and Texas Health and Human Services Commission – Office of Inspector General investigated the case.
Assistant U.S. Attorney Andrew Swartz prosecuted the case along with Principal Assistant Chief Jacob Foster and former Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section.
Gun Dealer Employee Sentenced to Federal Prison After Using Employee Discount to Illegally Purchase Firearms for Three MinorsRead the Press Release
INDIANAPOLIS- Traven Armstrong, 24, of Indianapolis, Indiana, has been sentenced to 1 year and 1 day in federal prison after pleading guilty to making false statements in connection with a firearm purchase.
According to court documents, between September 1, 2020, and March 10, 2021, Traven Armstrong worked as an employee of a federally licensed firearms dealer. During that time, Armstrong purchased numerous handguns for other individuals from businesses in Carmel, Indiana, using his employee discount. On federal firearms purchase documents, Armstrong intentionally misrepresented that he was the actual buyer of the firearms.
When questioned by ATF agents, Armstrong admitted to straw purchasing the firearms for three specific individuals, all under the age of 21. A straw purchase scheme is when a person not prohibited from purchasing or possessing a firearm falsely states to a federally licensed gun dealer that they are purchasing a firearm for themselves, when they know that the gun is actually intended for someone else, frequently someone who is prohibited from purchasing or possessing the firearm themselves.
United States Attorney for the Southern District of Indiana, Zachary A. Myers and Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division made the announcement.
“Gun traffickers like this defendant fuel violence in our communities by putting deadly weapons in the hands of people who have no business having them,” said U.S. Attorney for the Southern District of Indiana, Zachary A. Myers. “Cutting off the supply of illegally transferred guns is critical to making our communities safer. Our office will continue to work with ATF and other law enforcement agencies to identify and prosecute straw purchasers and others responsible for criminal gun trafficking.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Chicago Group IV investigated this case. The sentence was imposed by U.S. District Court Judge, James P. Hanlon. Judge Hanlon also ordered that Armstrong be supervised by the U.S. Probation Office for 3 years following his release from federal prison and pay a $500 fine.
U.S. Attorney Myers thanked Assistant United States Attorney Lawrence D. Hilton, who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Grand jury indicts 2 local men in drug conspiracy involving more than 5 kilograms of methamphetamine, 1 kilogram of fentanylRead the Press Release
DAYTON, Ohio – A federal grand jury has indicted two area men with crimes related to running a drug trafficking operation out of a local home and business property.
Kevin Darnell Byrd, Jr., 38, of Dayton, and David Minor, 36, of Englewood, are charged in a narcotics conspiracy that is punishable by at least 10 years and up to life in prison and possessing firearms in furtherance of the drug conspiracy, which is punishable by at least five years and up to life in prison.
According to the 15-count indictment, Minor was using his home on Southview Drive in Englewood as a drug premises and Byrd was using a business on Webster Street in Dayton as a drug premises. The defendants allegedly conspired to distribute and possessed with the intent to distribute bulk amounts of methamphetamine and fentanyl.
On Sept. 14, the FBI Southern Ohio Safe Streets Task Force and the Regional Agencies Narcotics and Gun Enforcement Task Force conducted a buy-bust operation and purchased a pound of methamphetamine from Minor. Task force members attempted to initiate a traffic stop of Minor following the narcotics sale and Minor allegedly fled in his Chevrolet Impala and then attempted to flee on foot before ultimately being apprehended.
A search warrant of Minor’s residence on Southview Drive in Englewood revealed four firearms and bulk amounts of cash, along with methamphetamine, fentanyl and synthetic opioids in a vehicle at the property.
Agents and officers executed a related search warrant at a business on Webster Street in Dayton and discovered more than five kilograms of methamphetamine, approximately one kilogram of fentanyl, a loaded handgun and bulk amounts of cash.
Minor and Byrd are both prohibited from possessing firearms due to prior felony convictions.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI) Cincinnati Division; and Montgomery County Sheriff Rob Streck announced the indictment returned on Sept. 26. Assistant United States Attorney Ryan A. Saunders is representing the United States in this case.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, and gangs that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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