Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
30 August 2023
West Virginia man ordered detained following federal indictmentRead the Press Release
WHEELING, WEST VIRGINIA – A Follansbee, West Virginia, man has been ordered detained following his indictment on charges related to a federal hate crimes trial in the Western District of Pennsylvania.
Hardy Carroll Lloyd, age 45, appeared before U.S. Magistrate Judge James P. Mazzone this morning for an arraignment and detention hearing. Judge Mazzone heard testimony about Lloyd’s alleged criminal conduct, which included online threats about the federal hate crimes trial in Pittsburgh, Pennsylvania, of Robert Bowers, the Tree of Life Synagogue mass shooter.
Lloyd was indicted yesterday on charges of obstruction of the due administration of justice, transmitting threats in interstate and foreign commerce, and witness tampering. According to court documents, Lloyd, a self-proclaimed “reverend” of a white supremacy movement, made threatening social media posts, website comments, and emails towards the jury and witnesses during the trial. Lloyd also placed or had others place stickers in predominantly Jewish areas of Pittsburgh, directing people to the website containing his threats and antisemitic messages.
Lloyd’s trial is scheduled for October 31, 2023, before U.S. District Judge John Preston Bailey. Lloyd, who was remanded into the custody of the U.S. Marshals Service pending trial, faces up to 10 years in prison for the obstruction charge, up to five years for the threats charge, and up to 20 in prison for the tampering charge. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
First Assistant U.S. Attorney Randolph Bernard and Assistant U.S. Attorney Jarod Douglas are prosecuting the case on behalf of the government.
The Federal Bureau of Investigation is investigating.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Washington Man Receives Monumental Sentence in Indian Arts and Crafts Act CaseRead the Press Release
JUNEAU, Alaska – A Washington state man was sentenced Monday for selling Philippine produced products as authentic Alaska Native produced artwork, violating the Indian Arts and Crafts Act.
According to court documents, Cristobal “Cris” Magno Rodrigo, 59, was sentenced to two years in federal prison. He is also required to make a $60,000 donation to the Tlingit and Haida Central Counsel Vocational Program, write a letter of apology to be published in the Ketchikan Daily Newspaper and serve three years’ supervised release. According to the Indian Art and Crafts Board, this is the longest sentence a defendant has received for any Indian Arts and Crafts violation in the U.S. – 18 months longer than any other sentence.
From April 2016 to December 2021, while residing in Washington state, Rodrigo and his family owned and operated Alaska Stone Arts LLC. and Rail Creek LLC. in Ketchikan, Alaska. Alaska Stone Arts LLC. primarily sold stone carvings, and Rail Creek LLC. primarily sold wooden totem poles. The carvings and totem poles were sourced from Rodrigo Creative Crafts, a company owned by his wife and located in the Philippines.
The Philippine business was created for the sole purpose of producing carvings featuring Alaska Native designs and motifs using Philippine labor. The carvings were shipped to the U.S. and then to the family’s stores in Ketchikan where they were later sold as authentic Alaska Native art.
Rodrigo also hired Alaska Natives at both Ketchikan stores to represent and sell Philippine produced artwork as their own authentic Alaska Native artwork. The workers told customers they were all related family working in the store and the art was all produced from locally sourced materials and made by Alaska Natives.
Prior to the conspiracy, Rodrigo worked in Alaska at different stores and shops producing stone carvings that were sold in the tourist trade for over 20 years. He taught the styles of Alaska Native stone art and wood totem poles to the Philippine based company.
In 2019 and for part of 2021, the family and their Alaska-based company employees sold over $1 million worth of Philippine made carvings presented as Alaska Native artwork.
Co-conspirators in this case include Glenda Tiglao Rodrigo, 46, and Christian Ryan Tiglao Rodrigo, 24. Their cases are ongoing.
“The actions the defendant took to purposefully deceive customers and forge artwork is a cultural affront to Alaska Native artisans who pride themselves on producing these historical works of art, and negatively affects those who make a living practicing the craft,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Mr. Rodrigo’s monumental sentence is a testament to the federal government’s dedication to prosecuting Indian Arts and Crafts Act violations, and the U.S. Attorney’s office will continue to work with law enforcement partners to protect Alaska Native cultural heritage and unwitting customers, and hold perpetrators accountable who carry out this type of fraud.”
“The Indian Arts and Crafts Board administers and enforces the Indian Arts and Crafts Act, a truth-in-marketing law,” said Indian Arts and Crafts Board Director Meridith Stanton. “The Act is intended to rid the Alaska Native and Indian arts and crafts marketplace of fakes and counterfeits, in order to protect the economic livelihoods and cultural heritage of Alaska Native and Indian artists and craftspeople and their Tribes and villages, as well as the buying public. Authentic Alaska Native art and craftwork is an important tool for passing down cultural traditions, traditional knowledge, and artistic skills from one generation to the next. Fakes and counterfeits, such as those marketed for huge sums of money by the Rodrigos, tear at the very fabric of Alaska Native culture, Native livelihoods, and Native communities. Mr. Rodrigo’s sentencing should send a strong message to those who prey upon authentic Alaska Native artists and vulnerable consumers that this destructive conduct will not be tolerated, and Act violators will be held accountable.”
“The Rodrigos sold imported products as Alaska Native made in their Ketchikan, Alaska store,” said Edward Grace, Assistant Director of the U.S. Fish and Wildlife Service Office of Law Enforcement. “This deceptive business practice cheated customers and undermined the economic livelihood of Alaska Native artists. The U.S. Fish and Wildlife Service has a dedicated team of special agents that work on violations of the Indian Arts and Crafts Act. This sentence was the result of the strong collaboration between our special agents, the Indian Arts and Crafts Board, and the U.S. Attorney’s Office.”
The Department of Interior – U.S. Fish and Wildlife Service and Office of Law Enforcement, with assistance from the Indian Arts and Crafts Board, U.S. Customs and Boarder Protections, and U.S. Department of Agriculture, investigated the case.
Assistant U.S. Attorney Jack Schmidt prosecuted the case.
If you suspect potential Indian Arts and Crafts Act violations are being committed, a complaint may be submitted through the Indian Arts and Crafts Board’s online complaint form, www.doi.gov/iacb/should-i-report-potential-violation, by emailing [email protected], or by calling 888-278-3253.
###
Veterans Charity CEO and Attorney Charged with $1.9M Fraud ConspiracyRead the Press Release
BIRMINGHAM, Ala. – A father and daughter have been charged with devising a scheme to misuse CARES Act funds, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.
An information filed yesterday in United States District Court charges Kenneth L. Phillips, 62, of Birmingham, and Danielle A. Phillips, 30, of Birmingham, with conspiracy to commit wire fraud.
According to the information, Kenneth Phillips, a retired Lieutenant Colonel in the U.S. Army, was the founder and CEO of Priority Soldier, Inc. (PSI). His daughter, attorney Danielle Phillips, held various roles with PSI including Chief Operating Officer and in-house legal counsel. PSI's stated mission is to strengthen military families by advocating, educating, and addressing critical issues affecting veterans and their families.
The information alleges that in November 2020, the defendants submitted a fraudulent proposal to the State of Alabama requesting COVID-19 grant funding to operate an online program to assist veterans dealing with PTSD in coping with the then-ongoing COVID-19 pandemic. The defendants received approximately $1.9 million dollars in funding, but rather than use the funds for their intended purpose, began transferring funds to their personal bank accounts. After paying themselves a combined salary of more than $400,000 during the one month the program operated, the defendants in January 2021 represented to the Alabama Department of Finance that PSI had spent all but $54,617.04, which they returned. In reality, more than $1.4 million remined in the PSI bank account, which the defendants used to purchase personal items such as luxury sports cars, watches, and diamond jewelry for their own personal benefit.
In conjunction with the charge, the government also filed a plea agreement with both Kenneth and Danielle Phillips. Both must appear before a judge to enter a guilty plea.
The maximum penalty for conspiracy is five years in prison.
The FBI investigated the case. Assistant United States Attorney Ryan S. Rummage is prosecuting the case.
An information contains only charges. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney’s Office and HHS Secure Agreement with New Jersey Home Healthcare Provider to Resolve HIV DiscriminationRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and the U.S. Department of Health and Human Services Office for Civil Rights (HHS OCR) have secured a settlement agreement to resolve allegations that a home healthcare provider discriminated against a person with HIV.
Comfort Hands Home Healthcare LLC (Comfort Hands) of Marlton, New Jersey, a home healthcare provider, has agreed to resolve allegations that it discriminated against a person with HIV in violation of the Americans with Disabilities Act (ADA), the Rehabilitation Act, and the Patient Protection and Affordable Care Act. This settlement follows the government’s investigation in which it found that Comfort Hands unlawfully denied home healthcare services to a potential client based on her HIV status.
U.S. Attorney Philip R. Sellinger“People with HIV should not face discrimination, especially from healthcare providers. The Americans with Disabilities Act prohibits providers from denying services based on an individual’s HIV status. Today’s agreement will ensure that this home healthcare provider lives up to that obligation going forward. This office remains committed to ensuring that individuals with HIV and other disabilities are protected from unlawful discrimination.”
“People with HIV should not face discrimination, especially from healthcare providers.” U.S. Attorney Philip R. Sellinger said. “The Americans with Disabilities Act prohibits providers from denying services based on an individual’s HIV status. Today’s agreement will ensure that this home healthcare providers lives up to that obligation going forward. This office remains committed to ensuring that individuals with HIV and other disabilities are protected from unlawful discrimination.”
“The HHS Office for Civil Rights has a long history of taking enforcement actions to protect the rights of people with disabilities, including those with HIV,” OCR Director Melanie Fontes Rainer said. “Today’s important settlement tangibly contributes to our efforts to ensure nondiscrimination in HHS-funded services. It also advances our newly reinvigorated Olmstead Initiative by removing discriminatory barriers to ensure individuals with disabilities can be served in their own homes and communities.”
Under the settlement agreement, Comfort Hands will implement a non-discrimination policy to ensure that individuals with disabilities, including those with HIV or who are perceived to have HIV, are afforded full and equal opportunities to its benefits and services. Comfort Hands will also provide mandatory non-discrimination training to its employees and pay damages to the individual who experienced this act of discrimination.
The ADA prohibits places of public accommodation, such as Comfort Hands, from discriminating against people with, or perceived to have, disabilities, including HIV. Section 504 of the Rehabilitation Act prohibits discrimination based on disability in any program or activity receiving federal financial assistance from HHS, while Section 1557 of the Patient Protection and Affordable Care Act does the same with respect to certain health programs and activities.
Last year, U.S. Attorney Sellinger created a Civil Rights Division with the sole focus of enforcing federal civil rights laws, including the ADA, with the goal of protecting and upholding the civil rights of those in our community. Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint.
For more information on the ADA and HIV discrimination, visit www.ada.gov/aids. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD). For more information on Section 504 of the Rehabilitation Act and how it protects individuals with disabilities, visit: https://www.hhs.gov/civil-rights/for-individuals/disability/index.html. For more information on the nondiscrimination provisions in Section 1557 of the Affordable Care Act, visit: https://www.hhs.gov/civil-rights/for-individuals/section-1557/index.html. For more information about OCR’s Olmstead activities, visit: https://www.hhs.gov/civil-rights/for-individuals/special-topics/community-living-and-olmstead/index.html. You may file a complaint with OCR at: https://www.hhs.gov/ocr/complaints/index.html.
The government is represented by Assistant U.S. Attorneys Susan Millenky and Emily B. Goldberg of the U.S. Attorney’s Office’s Civil Rights Division and Jaimenys Taveras, Investigator, Eric Brown, SEOS, Frank Musumici, SEOS, Linda C. Colon, Regional Manager and Fernando Morales, Regional Civil Rights Attorney HHS OCR, Attorney Advisors, Marie Soueid and Chayhann Mars, Office of the General Counsel Civil Rights Division.
comforthands.settlement.pdfTwo persons admit intimidation charges after attempted theft from Fort Belknap Indian Reservation storeRead the Press Release
GREAT FALLS — A man and a woman who had been excluded from the Fort Belknap Indian Reservation admitted charges yesterday after they were accused of stealing from a store and assaulting a store employee, U.S. Attorney Jesse Laslovich said today.
Dustin Alan Robbins, 38, and Nicole Lynn Hicks, 37, both transients, pleaded guilty to intimidation. The defendants face a maximum of 10 years in prison a $50,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for Jan. 24, 2024 and ordered Robbins and Hicks detained pending further proceedings.
In court documents, the government alleged that on Nov. 1, 2021, Hicks and Robbins, who are non-Indian, entered the Red Paint Creek Trading Post in Lodge Pole, on the Fort Belknap Indian Reservation. At the time, both were excluded from the reservation by the Fort Belknap community for an incident that occurred near Hays in September 2021. Hicks took a 30-pack of beer without paying and left the store. After realizing Hicks had not paid for the beer, a store employee, who is an Indian person, followed Hicks outside. Hicks put the beer on the ground as she was going through a fence. The store employee went to retrieve the beer and picked it up.
The government further alleged that Robbins ran toward the employee, assaulted her and threatened to burn down the store. After learning of the theft, the store manager, also an Indian person, went outside and saw Robbins assaulting the store employee. The store manager yelled that she had called the police and picked up a large rock to defend the employee. Robbins stopped the assault and ran away with Hicks. As they were leaving, Hicks kept screaming and Robbins yelled threats, including that he was with the mafia and was going to burn down the store. Tribal police located Robbins and Hicks at a home on the reservation, despite their prior exclusion, and removed them from the reservation.
Assistant U.S. Attorney Amanda L. Myers is prosecuting the case. The FBI and Fort Belknap Law Enforcement conducted the investigation.
XXX
Two Individuals Admit Conspiring with Convicted Ponzi Schemer and Others to Defraud Investors of Tens of Millions of DollarsRead the Press Release
TRENTON, N.J. – Two individuals today admitted conspiring with a twice-convicted fraudster to defraud investors of more than $35 million, U.S. Attorney Philip R. Sellinger announced.
Christopher Anderson, 47, of Flemington, New Jersey, and Richard Curry, 36, of Northumberland, Pennsylvania, each pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to informations charging them with one count of conspiracy to commit securities fraud. Anderson and Curry admitted conspiring with others, including Eliyahu “Eli” Weinstein, whose 24-year federal prison sentence was commuted after being twice convicted of defrauding investors of a total of $230 million.
U.S. Attorney Philip R. Sellinger“These two defendants admitted scheming with Eli Weinstein and others to rip off investors to the tune of millions of dollars. They admitted that this scheme used phony identities and false promises of access to deals involving scarce medical supplies, baby formula, and first-aid kits supposedly destined for wartime Ukraine to defraud their victims. They will now face justice for their crimes, and we will continue to pursue the other alleged conspirators.”
“Anderson and Curry are admitting they took part in a scheme that created millions of dollars in loss for the victims,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Although it's not easily understood, scams like this impact people's lives in a very real way. We're asking anyone who believes they are a victim or know of an investment that doesn't pass the smell test, to reach out to us at the Newark FBI. We will do all we can to hold those fraudsters accountable and protect the next potential victim.”
According to documents filed in this case and statements made in court:
Weinstein, Aryeh “Ari” Bromberg, Joel Wittels, Shlomo Erez, and Alaa Hattab were previously charged by complaint with conspiracy to commit wire fraud and conspiracy to obstruct justice based on allegations arising from the same scheme in which Anderson and Curry pleaded guilty today. That complaint remains pending.
Anderson and Curry admitted, among other things, to conspiring with each other, Weinstein, Bromberg, Wittels, Hattab and Erez to make materially false and misleading statements and omissions to investors and potential investors. These statements included actively concealing Weinstein’s identity, history of fraud and role in purported investments, and falsely claiming that investors funds would be used to invest in lucrative deals.
Weinstein was convicted two times in New Jersey federal court for defrauding investors. His first case involved a real estate Ponzi scheme, and his second case stemmed from additional fraud Weinstein committed while on pretrial release. For these crimes, which resulted in combined losses to investors of approximately $230 million, Weinstein was sentenced to serve 24 years in prison, followed by three years of supervised release. On Jan. 19, 2021, after Weinstein had served less than eight years in prison, the President of the United States at that time commuted Weinstein’s term to time served, leaving intact the rest of his sentence.
Conspiracy to commit securities fraud carries a maximum penalty of 20 years in prison and a $5 million fine. Sentencing for Anderson is scheduled for Jan. 16, 2024, and for Curry, Jan. 18, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy, with the investigation leading to the charges in this case. He also expressed appreciation for the Securities and Exchange Commission, under the direction of Antonia Apps, Director of the SEC’s New York Regional Office.
The government is represented by Assistant U.S. Attorneys Jonathan Fayer and Emma Spiro of the Economic Crimes Unit in Newark.
The charges and allegations against Weinstein, Bromberg, Wittels, Erez, and Hattab, are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
curry.information.pdf anderson.information.pdfTwo Charlotte Businessmen Are Sentenced to Prison for Selling Fraudulently Obtained New iPhones OverseasRead the Press Release
CHARLOTTE, N.C. – Hamzeh Jamal Alasfar, 31, and Tayseer Issam Alkhayyat, 35, both of Charlotte, were each sentenced today to 46 months in prison for a multi-year scheme to buy, sell, and ship fraudulently obtained and stolen new Apple iPhones to domestic and international buyers, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. The defendants were also ordered to serve three years under court supervision after they are released from prison.
Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s sentencing hearing, from 2013 through 2020, Alasfar and Alkhayyat engaged in a scheme to purchase fraudulently obtained and stolen new Apple iPhones and other electronic devices, which they then sold and shipped to buyers located in other states and foreign countries, including dozens of packages to the United Arab Emirates and Hong Kong.
Alasfar and Alkhayyat operated multiple businesses located in Charlotte, including Cellport International Inc. (Cellport) and D Town Wireless (D Town), which the defendants used to carry out the scheme. The defendants and their employees at D Town and Cellport purchased new iPhones, which were often still sealed in the box, at prices significantly below retail value from individuals who obtained the devices through fraud and theft. Between January 2019 and January 2020, Alasfar and Alkhayyat sold and shipped through Cellport more than 20,000 new iPhones for more than $20 million, many of which were fraudulently obtained.
On March 2, 2023, the defendants pleaded guilty to interstate and foreign transportation of stolen property. They will be ordered to report to the federal Bureau of Prisons to begin serving their prison terms upon designation of a federal facility.
This case was the result of the investigative efforts of CMPD and the Secret Service, which have established a fully integrated partnership to combat organized criminal groups operating in Charlotte. Through this partnership, this unit has successfully leveraged local and federal resources, personnel, expertise and authorities to identify and combat the criminals and criminal organizations that have the largest negative impact on the community.
Assistant U.S. Attorneys William T. Bozin and Michael E. Savage of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Three Residents of Panama Indicted on Charges of Conspiracy to Commit Wire Fraud and Conspiracy to Commit Money LaunderingRead the Press Release
PITTSBURGH, PA - Three residents of Panama have been indicted by a federal grand jury in Pittsburgh, PA, on charges of conspiracy to commit wire fraud and conspiracy to commit money laundering, United States Attorney Eric G. Olshan announced today. The charges stem from the Department of Justice’s wide-ranging efforts to protect older adults from fraud and financial exploitation.
Stefano Zanetti, a 41-year-old citizen of Canada; Samuel David Ferrer Avila, a 22-year-old citizen of Venezuela; and Cesar Javier Chourio Morante, a 27-year-old citizen of Venezuela and Colombia, were named as defendants in separate two-count Indictments.
“Our office is committed to protecting elderly and other vulnerable victims from fraud schemes targeting residents of Western Pennsylvania,” said U.S. Attorney Olshan. “This case demonstrates that we will use all available tools to identify and hold accountable those who steal from seniors, and we will work with our domestic and international partners to seek justice even when the evidence leads to perpetrators operating outside the United States. We encourage people to make use of the Department of Justice’s online resources to learn about these common fraud schemes and avoid falling prey to them.”
“International financial fraud investigations are at the core of HSI’s mission. As such, we take great pride in protecting our seniors who are among our most vulnerable and valuable citizens,” said Special Agent in Charge of HSI Philadelphia William S. Walker. “HSI will utilize every resource, both here and abroad, to ensure that the American public is kept safe from those that hide in foreign countries while attempting to defraud our citizens.”
As alleged in the Indictments, the defendants orchestrated and executed a sophisticated nationwide scheme to defraud that targeted the elderly and caused losses exceeding $1,500,000 to victims in Pittsburgh and other locations across the United States, including Georgia, Idaho, Kansas, New Hampshire, New York, and Tennessee. As part of the scheme, members of the conspiracy contacted victims and falsely claimed that a family member of the victim, usually a grandchild, had been detained in connection with a legal proceeding and needed money for bail. The victims were directed to withdraw cash and provide it to a “courier” who would visit them at their homes. In reality, the victims’ family members had not been detained, and the “courier” was actually a member of the conspiracy. From their location abroad in Panama, the defendants allegedly directed groups of “couriers,” who were tasked with picking up the victims’ money, and “safehouses,” who were tasked with collecting proceeds of the fraud and transferring it to others, including the defendants.
The Department of Homeland Security Investigations and Pennsylvania State Police conducted the investigation leading to the Indictments in this case. They were assisted in the investigation by other domestic and international agencies, including the Drug Enforcement Administration, United States Treasury Inspector General for Tax Administration, Royal Canadian Mounted Police, and National Police of Panama, Sensitive Investigation Unit.
The Indictments in this case were returned on December 6, 2022 and unsealed on August 21, 2023, following the arrests in Panama of Zanetti and Ferrer Avila on August 2, 2023, and of Chourio Morante on August 11, 2023. On August 30, 2023, all three defendants appeared in federal court in Pittsburgh, after having been extradited and transported from Panama by the Drug Enforcement Administration Airwing. The extradition of the defendants was the culmination of extraordinary cooperation among the primary investigating agencies, with valuable assistance from Panamanian authorities.
The law provides for a maximum total sentence of 40 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Las Vegas Street Gang Members Sentenced to Prison for Distributing Counterfeit Pills Containing FentanylRead the Press Release
LAS VEGAS – Three members of the Las Vegas based street gang Money Makin’ Moves have been sentenced for their roles in a drug trafficking conspiracy to distribute counterfeit pills containing fentanyl, and other related drug and gun offenses.
According to court documents, Giovani Barboza (21), Jordan Villalobos (24), and Francisco Ramirez-Sorto (21), all of Las Vegas, conspired to distribute 400 grams or more of fentanyl, a Schedule II controlled substance. On September 15, 2021, Barboza and Villalobos sold approximately 3,000 counterfeit pills containing fentanyl; and on September 29, 2021, Barboza and Villalobos sold 2,000 counterfeit pills containing fentanyl. Ramirez-Sorto sold counterfeit pills containing fentanyl to customers he was directed to by Barboza and Villalobos.
On October 15, 2021, during the execution of a search warrant at the residence shared by Barboza, Villalobos, and Ramirez-Sorto, law enforcement seized nine firearms, over 200 rounds of various ammunition, clear plastic bags containing various counterfeit pills, and thousands of pills containing fentanyl. One of the firearms was modified with a machine gun conversion device.
Barboza, Villalobos, and Ramirez-Sorto each pleaded guilty in March 2023 to one count of conspiracy to distribute a controlled substance-Fentanyl and one count of possession of a firearm during and in relation to a drug trafficking crime. Barboza and Villalobos were each sentenced to 10 years in prison on August 28, 2023. Ramirez-Sorto was sentenced to 60 months in prison on August 14, 2023.
United States Attorney Jason M. Frierson for the District of Nevada, Assistant Special Agent in Charge Kevin Adams for the Drug Enforcement Administration, Las Vegas Division Office (DEA), and Special Agent in Charge Jennifer Cicolani for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
This case was investigated by DEA and ATF. Assistant United States Attorney Melanee Smith prosecuted the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
DEA has launched the public awareness campaign, One Pill Can Kill, to educate the public on dangers of counterfeit pills and how to keep Americans safe. For more information, visit www.dea.gov/onepill.
###
Three Fentanyl, Fluorofentanyl, and Methamphetamine Traffickers Sentenced to Federal PrisonRead the Press Release
BOISE – U.S. Attorney for the District of Idaho Josh Hurwit announced the results of three separate drug trafficking cases in Southern Idaho today involving fentanyl, methamphetamine, and fluorofentanyl. Fluorofentanyl is an analogue of fentanyl.
“These cases show the unwavering commitment of my office and our law enforcement partners to remove drug traffickers from our communities,” said U.S. Attorney Hurwit. “In each of these cases, the defendant possessed firearms, which exacerbates the danger to the public of illicit drug distribution. There should be no confusion on the streets: drug trafficking and unlawfully possessing firearms means a long stay in federal prison.”
On August 29, 2023, Senior U.S. District Judge B. Lynn Winmill sentenced Joseph Castro, 38, of Seattle, Washington, to 188 months in federal prison followed by five years of supervised release. According to court records, in September 2022, Boise Police arrested Castro in connection with a narcotics investigation. While searching his backpack after arrest, officers located 2.8 pounds of fentanyl in powder and pill form, four firearms, one of which was stolen, and numerous rounds of ammunition. Castro pleaded guilty to the charge on June 5, 2023. Castro has an extensive criminal history, including convictions for burglary, domestic violence, battery, felon in possession of a weapon, and possession of a controlled substance.
Photo of fentanyl and firearms seized in Castro case showing “LV” and “300” imprinted on the brick of fentanyl powder.
U.S. Attorney Hurwit commended the cooperative efforts of the Boise Police Department, Boise Area Narcotics Drugs Interdiction Taskforce, and the Drug Enforcement Administration, which led to the charge in the Castro case. Assistant U.S. Attorney Erin Blackadar prosecuted this case.
In a separate case, Koty Dillon Cooley, 32, of Boise, was sentenced by U.S. District Judge Amanda K. Brailsford to nine years in federal prison to be followed by five years of supervised release for the possession with intent to distribute fentanyl and methamphetamine. Cooley’s sentence was enhanced because he possessed a firearm in furtherance of the drug trafficking offense.
According to court records, Cooley was pulled over for a traffic violation. During the traffic stop, officers obtained probable cause to search the vehicle for controlled substances. During the search, they found over 400 grams of methamphetamine, over 140 grams of fentanyl, a digital scale, a revolver, two loaded shotgun magazines, a loaded Glock magazine, a plastic container with 67 rounds of .22 caliber ammunition, and approximately $3,612 in illicit drug proceeds.
U.S. Attorney Hurwit commended the investigations by the Idaho State Police, the Ada County Sheriff’s Office, and the Drug Enforcement Administration, which led to the charges in the Cooley case. Assistant U.S. Attorney David Morse prosecuted this case.
In another case, Angelica Campos, 36, of Nampa, was sentenced to five years in federal prison for possession with intent to distribute fluorofentanyl.
According to court records, on October 18, 2022, U.S. Probation was attempting to serve a warrant. Officers contacted Campos outside of her residence. During a search of her purse, officers found 103 fluorofentanyl pills, 3.1 grams of methamphetamine, $885 in cash, and 35 Alprazolam (Xanax) pills. Officers also searched her vehicle and found a loaded .22 long rifle mini revolver, 48 rounds of .22 ammunition, a ledger with drug sales and prices, and drug paraphernalia.
Photo of evidence seized in the Campos case.
At the time she committed this offense, Campos was on supervised release with U.S. Probation because she was previously convicted in federal court for conspiracy to distribute and possess with intent to distribute methamphetamine. Senior U.S. District Judge B. Lynn Winmill also sentenced Campos to 30 months in prison for violating her supervised release. That sentence was ordered concurrently to the 60-month sentence for the new drug crime. Judge Winmill also ordered Campos to serve three years of supervised release following her prison sentence. Campos pleaded guilty to the charge on May 30, 2023.
U.S. Attorney Hurwit credited the cooperative efforts of U.S. Probation and the Caldwell Police Department, which led to the charge in the Campos case. Special Assistant U.S. Attorney Kelsey Manweiler prosecuted this case.
The Campos case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth.
###
Third “Project Python” man sent to prisonRead the Press Release
LAREDO, Texas – A 50-year-old resident of Guanajuato, Mexico, has been ordered to prison for his role in a conspiracy to possess with the intent to distribute meth, announced U.S. Attorney Alamdar S. Hamdani.
Jose Domingo Ibarra Martinez pleaded guilty April 26, 2021.
U.S. District Judge Diana Saldana has now ordered him to serve 120 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard about Martinez duties within the organization including his role in coordinating the transport of drugs with other truck drivers.
From August 2015 until March 2018, Martinez and others were engaged in the importation of large quantities of meth into the United States via the ports of entries in Laredo. The drug loads were further distributed throughout the United States.
Martinez admitted to smuggling various drug-laden items into the country, including over 150 vehicle batteries during the course of the conspiracy. The investigation revealed the batteries originated from Michoacán, Mexico with an average load of 7.5 kilos of meth.
Martinez admitted the organization had imported more than 1,000 drug-laden items.
Two others were previously sentenced - David Almanza, 43, and Eduardo Coronel-Cardoza, 35, both of Nuevo Laredo, Mexico, received 198 months and 78 months, respectively.
The Drug Enforcement Administration (DEA) led the Organized Crime and Drug Task Forces (OCDETF) operation with the assistance of Laredo Police Department and sheriff’s offices in Victoria and Williamson Counties. Assistant U.S. Attorney Anthony J. Evans is prosecuting the case.
It is part of Project Python, a nationwide DEA-led operation the Department of Justice announced in March 2020. The Project Python operation targeted the Cártel de Jalisco Nueva Generación and has resulted in more than 600 arrests, 350 indictments as well as significant seizures of money and drugs across the United States.
Tahlequah Resident Sentenced for Failing to Register as A Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Steven Wayne Edwards Jr., age 49, of Tahlequah, Oklahoma, was sentenced to 35 months in prison for knowingly failing to register and update his registration as required by the Sex Offender Registration and Notification Act (SORNA).
On June 21, 2022, Edwards pleaded guilty to Failure to Register as a Sex Offender, a violation of SORNA.
On March 15, 2022, law enforcement apprehended Edwards for failure to register as a sex offender based on a community tip. Upon his arrest, Edwards admitted that he knew his mandated registration requirements but had nevertheless failed to register upon relocating from Wyoming to Tahlequah in July of 2021.
The charges arose from investigations by the U.S. Marshals Service and the Cherokee County Sheriff’s Office.
In 2011, Edwards received a felony conviction from the State of Wyoming for Third Degree Sexual Abuse of a Minor. Based on this conviction, Edwards is a Tier III offender with a lifetime reporting requirement: he must appear in person to register in every jurisdiction where he lives, works, or goes to school, and he must appear in person to verify and update registration information every 3 months for life.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing in Muskogee. Edwards will remain in custody of the U.S. Marshal pending transportation to a designated Federal Bureau of Prisons facility, where he will serve his non-paroleable sentence of incarceration.
Special Assistant United States Attorney Genevieve A. Ozark represented the United States.
Suburban Chicago Chiropractor Charged with Fraudulently Billing for Nonexistent ServicesRead the Press Release
CHICAGO — A suburban Chicago chiropractor has been indicted on federal fraud charges for allegedly billing a private insurer for nonexistent services.
SEUNG HAN LIM owned and operated Movement Health and Rehab, also known as Motu Chiropractic and Motu Chiromassage, in Libertyville, Ill. From 2016 to 2019, Lim submitted fraudulent claims to Blue Cross Blue Shield of Illinois for purported health care services that Lim knew were not actually provided, according to an indictment unsealed today in U.S. District Court in Chicago. Some of the fraudulent claims were for services purportedly provided on dates when either Lim or the patient were not in Illinois, the indictment states. Other claims submitted by Lim were for services purportedly rendered by another chiropractor to Lim and Lim’s family members, even though Lim knew that those services were not actually provided by the other chiropractor and that BCBS would have denied the claims had Lim been identified as the rendering provider because the insurer prohibited claims from providers for services rendered to the provider or their immediate family members, the indictment states.
When BCBS attempted to audit Lim’s claims, he prepared false patient medical records and other documents and submitted them to BCBS, the indictment states.
As a result of the scheme, Lim and his clinic fraudulently obtained at least $430,000 from BCBS, the indictment states.
The indictment charges Lim, 40, of Lincolnshire, Ill., with 14 counts of health care fraud. Each count is punishable by up to ten years in federal prison. Lim was scheduled to make an initial court appearance this afternoon before U.S. Magistrate Judge Gabriel A. Fuentes.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Irene Lindow, Special Agent-in-Charge of the Great Lakes Region of the U.S. Department of Labor, Office of the Inspector General. The government is represented by Assistant U.S. Attorneys Paige Nutini and Jasmina Vajzovic.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Lim indictmentStockton Man Pleads Guilty to Heroin and Fentanyl TraffickingRead the Press Release
SACRAMENTO, Calif. — Frank Jonathan Guzman, 31, of Stockton, pleaded guilty Tuesday to conspiracy to distribute heroin and fentanyl and possession with intent to distribute heroin and fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between November 2018 and December 2019, Guzman and co-defendant Jose Cruz Ivan Aispuro, 38, of Stockton, conspired to distribute and possess with intent to distribute at least 1 kilogram of heroin and at least 400 grams of counterfeit pharmaceutical pills containing fentanyl. As part of this conspiracy, Guzman sold heroin to and undercover agent and another person on Nov. 29, 2018, Dec. 21, 2018, and Sept. 24, 2019. Guzman also sold 500 counterfeit oxycodone pills containing fentanyl to the undercover agent on Nov. 14, 2019. Agents executed a search warrant at Guzman’s residence in Stockton and seized approximately 10,000 counterfeit oxycodone pills containing fentanyl and 2.8 kilograms of heroin.
This case is the product of an investigation by the Drug Enforcement Administration with assistance from the U.S. Marshals Service and the San Joaquin Metropolitan Drug Task Force. Assistant U.S. Attorney David W. Spencer is prosecuting the case.
Guzman is scheduled to be sentenced by U.S. District Judge John A. Mendez on Dec. 12, 2023. Guzman faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Charges are pending against Aispuro. The charges against Aispuro are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Southern Oregon Man Sentenced to 15 Years in Federal Prison for Illegally Possessing a Firearm and MethamphetamineRead the Press Release
MEDFORD, Ore.—A southern Oregon man was sentenced to more than 15 years in federal prison today after he violated the terms of his supervised release by possessing a firearm and methamphetamine.
James Charles Danis, 41, of Phoenix, Oregon, was sentenced to 188 months in federal prison and five years’ supervised release.
According to court documents, on March 20, 2020, while under an active arrest warrant for violating the terms of his federal supervised release, Danis was spotted by a deputy U.S. Marshal leaving a motel in Medford. The deputy contacted detectives from the Medford Area Drug and Gang Enforcement (MADGE) team to assist with an arrest. When the deputy and the assisting officers confronted Danis, he fled in a vehicle and led officers from the Medford and Central Point police departments on a pursuit through both cities.
Despite multiple attempts to stop Danis, the pursuit ended when he crashed his vehicle through a fence into the background of a local residence, causing extensive damage. Danis continued trying to drive his blocked vehicle away from scene until officers removed him from it and placed him under arrest. A search of Danis’ person, vehicle, and motel room returned more than 300 grams of methamphetamine, multiple pounds of marijuana, drug paraphernalia and packing materials, a semi-automatic pistol, and ammunition.
On April 28, 2020, Danis was charged by criminal complaint with illegally possessing a firearm as a convicted felon, possessing a firearm in furtherance of a drug trafficking crime, and possessing with intent to distribute methamphetamine. Later, on July 23, 2020, a federal grand jury in Medford indicted Danis on the same charges.
On August 23, 2022, Danis pleaded guilty to illegally possessing a firearm as a convicted felon and possessing with intent to distribute methamphetamine.
This case was investigated by the U.S. Marshals Service and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with assistance from MADGE and the Medford and Central Point Police Departments. It was prosecuted by Judith R. Harper, Assistant U.S. Attorney for the District of Oregon.
Somers Man Pleads Guilty to Charge Stemming from Medicaid Fraud SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that DENNIS TOMCZAK, 73, of Somers, has pleaded guilty in federal court to a false statement offense stemming from his role in a Medicaid fraud scheme.
According to court documents and statements made in court, Tomczak, a state-licensed alcohol and drug abuse counselor, offered substance abuse treatment and related counseling services through his business, Pathway to Peace, LLC. Tomczak accepted Medicaid insurance and cash payments for his services.
In 2019, a medical provider asked Tomczak to use his own provider number to bill Medicaid for patients that the provider was allegedly seeing for psychotherapy sessions. In exchange, Tomczak would retain 25 percent of the Medicaid claims paid and he would turn over 75 percent of the payments to the provider. Tomczak agreed to do so, and from approximately April 2019 through October 2022, based upon a spreadsheet provided to him by the provider, Tomczak billed Medicaid for psychotherapy and related services allegedly rendered by the provider as if Tomczak had personally rendered those services himself. Tomczak never met any of the provider’s clients and did not review records and treatment notes for any services allegedly rendered by the provider.
Through this scheme, Medicaid paid Tomczak approximately $338,427.11 for approximately 53 clients that the provider had allegedly treated. Per his agreement with the provider, Tomczak retained approximately $84,000 of the claims money received from Medicaid.
On August 21, 2023, Tomczak waived his right to be indicted and pleaded guilty before U.S. District Judge Kari A. Dooley in Bridgeport to one count of making a false statement relating to a health care matter, an offense that carries a maximum term of imprisonment of five years. Judge Dooley scheduled sentencing for November 13.
Tomczak is released on bond pending sentencing.
This ongoing investigation is being conducted by the Office of the Inspector General of the U.S. Department of Health and Human Services (HHS-OIG), and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
Sea Cucumber Smugglers Plead Guilty to Illegal Trafficking in WildlifeRead the Press Release
NEWS RELEASE SUMMARY – August 30, 2023
SAN DIEGO – Zunyu Zhao (also known as Kathy Zhao) and Xionwei Xiao (also known as Luis Xiao) pleaded guilty in federal court this week to a two-count indictment charging them with conspiracy and illegal importation of sea cucumbers.
According to the indictment and plea agreement, starting on May 9, 2017, and through February 10, 2019, Zhao and Xiao conspired to illegally import Isostichopus Fuscus sea cucumbers, a species protected under Appendix III of the Convention on International Trade in Endangered Species, without the appropriate permits and documentation.
In May 2017, Zhao was stopped at the Calexico Port of Entry, attempting to smuggle 11.50 kg of Isostichopus Fuscus sea cucumbers. In February 2019, Zhao was stopped once again at the Calexico Port of Entry with 2 kg of undeclared Isostichopus Fuscus sea cucumbers. Between 2017 and 2019, Zhao and Xiao messaged each other with texts and images of other transactions in their illegal Isostichopus Fuscus sea cucumber importation conspiracy, as Zhao confirmed for Xiao each shipment that she smuggled into the United States.
On May 23, 2023, a Grand Jury sitting in San Diego issued a sealed indictment against both Zhao and Xiao. On June 9, 2023, Xiao was arrested at the U.S. border, and Zhao was arrested four days later.
The parties agreed that the fair market value of Isostichopus Fuscus sea cucumbers is $435/kg, and the total value of the sea cucumbers trafficked during the conspiracy was $10,222.50. The defendants also agreed to pay restitution to the Procuraduria Federal de Proteccion al Ambiente, the Mexican governmental entity charged with protection of the environment.
Acting United States Attorney Andrew R. Haden stated, “This office is committed to upholding the twin pillars of marine biodiversity and conservation. Criminals considering poaching protected species should be aware that this office will diligently investigate, thoroughly prosecute, and seek restitution no matter the species.”
United States Fish and Wildlife Service Special-Agent-in-Charge Manisa Kung commented, “One of the highest priorities of the U.S. Fish and Wildlife Service Office of Law Enforcement is to investigate individuals involved in the unlawful commercial trafficking and smuggling of wildlife here and around the world.”
Xiao is scheduled to be sentenced on September 29, 2023, at 10:30 a.m. before U.S. District Judge Todd W. Robinson. Zhao is scheduled to be sentenced on November 11, 2023, at 9:30 a.m., also before Judge Robinson.
This case is being prosecuted by Assistant U.S. Attorneys Carl Brooker and Melanie Pierson.
DEFENDANTS Case Number 23-cr-00893-TWR
Zunyu Zhao (also known as Kathy Zhao) Age: 51 Calexico, CA
Xionwei Xiao (also known as Luis Xiao) Age: 52 Mexicali, MX
SUMMARY OF CHARGES
Count 1: Conspiracy – Title 18, U.S.C., Section 371
Count 2: Importation Contrary to Law – Title 18, U.S.C., Section 545
Count 1: Maximum penalty: Five years in prison and $250,000 fine
Count 2: Maximum penalty: Twenty years in prison and $250,000 fine
AGENCY
U.S. Fish and Wildlife Service
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Readout of United States Attorney Kevin Ritz’s Roundtable Discussions in Dyer CountyRead the Press Release
Jackson, TN – On Thursday, August 24, United States Attorney Kevin G. Ritz traveled to Dyer County in the 29th Judicial District of West Tennessee to host a series of roundtable discussions with law enforcement, local prosecutors, and community stakeholders. Roundtable participants had an open dialogue with the U.S. Attorney, addressing their issues and concerns, and learned more about the Department’s priorities.
On Thursday morning, WTRO-101.7 FM host Bill Taylor interviewed U.S. Attorney Ritz about his goals for the roundtable discussions, Department priorities, and violent crime issues. As U.S. Attorney Ritz said during the interview, “Gun violence has many causes, and it needs to have many solutions. [Federal prosecutors are] part of the solution. With federal firearms laws, we have some aggressive tools. But we need everybody working together. We need prevention and intervention from community groups, faith leaders, and schools.”
Later that morning, U.S. Attorney Ritz met in Dyersburg with District Attorney Danny Goodman and local law enforcement leaders to discuss trends in violent crime, partner successes, and emerging concerns.
State Gazette reporter Dr. William Honeycutt interviewed U.S. Attorney Ritz and Assistant U.S. Attorney Hillary Parham just before lunch about crime and drug trends in Dyer County, Department priorities, and examples of sound collaboration between federal and local law enforcement.
Thursday afternoon, U.S. Attorney Ritz was the keynote speaker at the Rotary Club in Dyersburg.
The district-wide visit concluded late Thursday afternoon, when U.S. Attorney Ritz facilitated a roundtable discussion with the Dyer Baptist Association at Hillcrest Baptist Church.
Below are photos from these events. U.S. Attorney Ritz will continue to schedule roundtable discussions with stakeholders throughout the Western District of Tennessee.
###
United States Attorney Kevin Ritz interviewed by WTRO radio host Bill Taylor.
U.S. Attorney Ritz, along with AUSA Hillary Parham and District Attorney General Danny Goodman, facilitated roundtable discussion with Dyer County law enforcement
U.S. Attorney Ritz, along with AUSA Hillary Parham and District Attorney General Danny Goodman, facilitated roundtable discussion with Dyer County law enforcement.
U.S. Attorney Ritz addressed the members of the Dyersburg Rotary Club.Pittsburgh Man Sentenced to Life in Prison for Distributing Fentanyl and Butyryl Fentanyl Resulting in the Death of a Pittsburgh Resident as well as for Additional Drug Trafficking and Firearm CrimesRead the Press Release
PITTSBURGH, PA – Deon Blair was sentenced to life in prison for distributing fentanyl and butyryl fentanyl resulting in the death of a Pittsburgh resident as well as for additional drug trafficking and firearm crimes, United States Attorney Eric G. Olshan announced today.
Blair, age 31 of Pittsburgh, was sentenced by United States District Judge David S. Cercone. Judge Cercone ordered Blair to serve six years of supervised release in the event he is released from prison.
Blair was convicted at the conclusion of a trial in July 2021 of committing the following crimes in January and February 2017: (1) distribution of fentanyl and butyryl fentanyl resulting in death, (2) distribution of heroin, (3) distribution of fentanyl and butyryl fentanyl, (4) conspiracy to distribute fentanyl, butyryl fentanyl, and heroin, (5) possession of a firearm in furtherance of a drug trafficking crime, and (6) possession of a firearm by a convicted felon.
As of January and February 2017, Blair had already been convicted of eight counts of heroin trafficking in two state prosecutions, had recently served a 3-to-6 year state prison sentence as well as a parole revocation sentence, and was once again on state parole. He continued to engage in drug trafficking in January and February 2017 while illegally possessing a loaded pistol in furtherance of his drug trafficking. His continuing drug trafficking, that included fentanyl and butyryl fentanyl distribution, resulted in the death of D.S., a young man who was residing in Pittsburgh in February 2017.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Pittsburgh Police Department, the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania Board of Probation and Parole, and the Allegheny County Medical Examiner’s Office conducted the investigation that led to the convictions and sentence in this case.
Parkersburg Man Sentenced to Prison for Child Pornography CrimeRead the Press Release
CHARLESTON, W.Va. – Robert Anthony Thomas, 47, of Parkersburg, was sentenced today to six years in prison, to be followed by 15 years of supervised release, for distribution and attempted distribution of child pornography. Thomas must also register as a sex offender.
According to court documents and statements made in court, from about June 1, 2020, through about August 23, 2022, Thomas made over 105,000 digital media files of child pornography available to others by using a peer-to-peer file sharing program. Thomas admitted that he knew the digital media files contained child pornography and would be downloaded by others. Thomas further admitted that the digital media files included a video file of a prepubescent female engaged in sexually explicit conduct.
On August 23, 2022, law enforcement officers executed a search warrant at Thomas’ residence and seized electronic devices including a computer and an external hard drive. Thomas told the officers that he worked as a custodian at a local elementary school. Thomas has since been terminated from that position. Thomas also told officers that he routinely ran a scrubbing program on his electronic devices to delete their data, and provided the search terms he used to find sexually explicit images of minor females.
A forensic analysis of the electronic devices revealed over 37,000 digital media files of child pornography. Thomas admitted that many of these images and videos depict prepubescent minors, including infants and toddlers. Thomas further admitted that several of the images and videos depict known child victims.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI).
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorneys Julie M. White and Joshua Hanks prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-70.
###
New Jersey Man Sentenced to 15 Years in Federal Prison After Grooming Minor Online and Transporting Her Across State Lines via Uber for SexRead the Press Release
INDIANAPOLIS- Arnold Castillo, 23, of Paterson, New Jersey, has been sentenced to 15 years in federal prison after pleading guilty to Transportation of a Minor with Intent to Engage in Criminal Sexual Activity and Coercion and Enticement of a Minor.
According to court documents, from January to May 2022, Castillo used a false identity, “Jacob Shedletsky,” to communicate with and groom a 15-year-old girl via social media and gaming applications such as Instagram, Roblox, and Discord.
Castillo engaged in grooming behaviors such as buying the girl’s anime artwork using CashApp and purchasing other high-value items on Amazon such as an Artist’s Glove for Drawing Tablet, a Max Smart Tablet Drawing Stand, and a Wacom Mobile Studio Pro 13 Windows 10 computer to be delivered to her parents’ home in Indiana.
Castillo intentionally led the girl to believe that he had the ability to connect her to employment opportunities in the online gaming industry and used this leverage to engage in sexually explicit conversations with her. Castillo coerced and persuaded the girl into believing they were in love and that her family was her enemy.
During these conversations, Castillo discussed his plans to arrange for the girl to travel from Indiana to New Jersey so they could be together and engage in sexual activity. Castillo used the Uber application to find and hire a driver in New Jersey to transport the girl the 700 miles to his residence. Castillo paid the driver $500 through CashApp before they left New Jersey, and another $500 in cash when they returned with the victim.
When the girl arrived at Castillo’s New Jersey residence, Castillo sexually abused her on multiple occasions and used Uber to have others purchase or attempt to purchase the “Plan B” pill to prevent the child from becoming pregnant.
For days, Castillo kept the girl in New Jersey and continued to abuse her, knowing that her family and law enforcement were desperately searching for her. In a recorded phone interview on May 5, 2022, Castillo lied to law enforcement officers, stating that he had no idea where she was and that she must have run away.
On May 11, 2022, eight days after the girl was reported missing, FBI agents recovered her from Castillo as the two were walking in front of his residence. At the time of his arrest, Castillo had several unopened condoms in his pocket. Castillo admitted to law enforcement agents that he kept the victim in his care, custody, and control in a small room and controlled her movements in and out of the room. He also controlled her access to food and basic necessities, knowing that she had no financial resources or ability to travel back to Indiana.
“No parent should have to endure eight torturous days not knowing if their child is alive or dead, only to learn that a stranger used social media and other online tools to groom their child and spirit them across the country,” said U.S. Attorney for the Southern District of Indiana, Zachary A. Myers. “This defendant is a stone-cold, manipulative, child predator who used the tools of social media and gaming to abuse a vulnerable child and then obstructed the efforts of law enforcement officers to secure her safe return home. I commend the outstanding work of local law enforcement agencies along with the FBI’s Indianapolis and Newark Field Offices for working around the clock for eight days to bring the victim home safely. Thanks to the outstanding work of these law enforcement officers and our federal prosecutor, this dangerous predator will be unable to harm another child.”
“This was a horrible nightmare for both the child lured away from home under false pretenses and the family who was left to worry about where she was, if she was safe, and if they would ever see her again,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI and our partners will always do everything in our power to safely recover a child and reunite them with their loved ones.”
The FBI Indianapolis and FBI in Paterson, New Jersey investigated this case along with local law enforcement. The sentence was imposed by U.S. District Court Judge, Matthew P. Brookman. Judge Brookman also ordered that Castillo be supervised by the U.S. Probation Office for 20 years following his release from federal prison and pay $10,000 in restitution to the victim.
U.S. Attorney Myers thanked Assistant United States Attorney Tiffany J. Preston, who prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
If you are a victim of child sexual exploitation, please contact your local police department. Resources for victims of child exploitation can be found on our website at https://www.justice.gov/usao-sdin/project-safe-childhood
###
New Haven Man Who Committed 5 Gunpoint Robberies of New Haven Store Sentenced to More Than 13 Years in PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JERMAINE CANNON, 20, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 162 months of imprisonment, followed by five years of supervised release, for robbery and firearm offenses related to his commission of five gunpoint robberies of the same New Haven business during a six-week period in 2021.
According to court documents and statements made in court, on September 30, October 27, November 6, November 10 (photo below), and November 11, 2021, Cannon, brandishing a handgun, robbed the Howard Mini Mart & Deli, located on Howard Avenue in New Haven. During all five robberies, Cannon pointed the gun and threatened to shoot store employees.
Cannon was arrested after the fifth robbery on November 11, 2021. A search of a residence where Cannon was apprehended revealed a 9mm semiautomatic handgun, a distinctive hoodie he wore during the robbery on November 10, and a pair of latex gloves.
Cannon has been detained since his arrest. On March 27, 2023, he pleaded guilty to five counts of interference with commerce by robbery, and one count of carrying, using and brandishing a firearm during and in relation to a crime of violence.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorneys Nathaniel J. Gentile and Jocelyn Courtney Kaoutzanis.
U.S. Attorney Avery thanked the New Haven State’s Attorney’s Office for its close cooperation in investigating and prosecuting this matter.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Nevada Resident Pleads Guilty to COVID-19 Fraud SchemeRead the Press Release
LAS VEGAS – A Nevada woman pleaded guilty Monday to fraudulently seeking over $1 million in COVID-19 Paycheck Protection Program (PPP) loans.
According to court documents, Karen Chapon, aka Karen Hannafious, 53, submitted six fraudulent PPP loan applications to three financial institutions for her companies. From April 2020 to July 2020, Chapon made multiple false statements about her companies’ respective business operations and payroll expenses, and submitted false documents to support the loan applications, including false federal tax filings. As part of the loan applications, Chapon falsely stated that she had not been convicted of a felony in the past five years, but in fact, she pleaded guilty to felony fraud offenses in 2016. She received four loans totaling approximately $596,931. Chapon used fraudulently obtained funds for her own benefit, including the purchase of a Mercedes Benz SUV.
Chapon pleaded guilty to one count of bank fraud. U.S. District Judge James C. Mahan scheduled sentencing for November 29, 2023. She faces a maximum statutory penalty of 30 years in prison, a five-year term of supervised release, restitution, and a fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; U.S. Attorney Jason M. Frierson for the District of Nevada; Special Agent in Charge Spencer L. Evans for the FBI; Inspector General J. Russell George for the Treasury Inspector General for Tax Administration (TIGTA); and Special Agent in Charge Weston King for the U.S. Small Business Administration Office of Inspector General (SBA-OIG), Western Region, made the announcement.
This case was investigated by the FBI, TIGTA, and SBA-OIG. Trial Attorneys Lucy Jennings and Jennifer Bilinkas of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jessica Oliva of the District of Nevada are prosecuting the case.
In May 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 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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
# # #
More Than a Dozen Charged in a Violent Crime Conspiracy That Includes Armed Carjacking, Armed RobberyRead the Press Release
Defendants Charged With Multiple Counts of Hobbs Act Robbery and Firearms Offenses
WASHINGTON – A superseding indictment was unsealed today charging 16 alleged members (named below) of a violent crime ring that committed multiple armed carjackings, armed robberies, money laundering, and firearms offenses. Federal law enforcement arrested eight defendants this morning; the remaining defendants were previously arrested. Charges include conspiracy to interfere with interstate commerce (known as Hobbs Act) robbery, interference with interstate commerce by robbery, using a firearm in furtherance of a crime of violence, conspiracy to commit carjacking, and conspiracy to engage in monetary transaction in property derived from specified unlawful activity.
The case was announced by United States Attorney Matthew M. Graves, Special Agent in Charge Craig Kailimai with the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Assistant Director in Charge David Sundberg, of the FBI Washington Field Office’s (Criminal and Cyber Division), Special Agent in Charge James E. Dennehy, of the FBI’s Newark Field Office, Marshal Peter Marketos, of the United States Marshals Service, and Acting Chief Pamela Smith, of the Metropolitan Police Department.
According to the indictment, between January 7, 2022, through January 27, 2023, the defendants conspired in the District of Columbia to commit robberies in New Jersey, Pennsylvania, Virginia, and Florida. The robberies targeted jewelry stores owned by Asian Americans. Disguised in dark clothing, masks, and gloves, armed with a gun, one or more of the defendants used various vehicles, including stolen vehicles, to commit and flee from the robberies, including:
January 7, 2022: Yasini Jewelers in E. Falls Church, VA;
June 10, 2022: Virani Jewelers in Iselin, NJ;
September 20, 2022: Sonia Jewelers & Boutique, in Springfield, VA;
October 25, 2022: Paradise Jewelry Store, in Paterson, NJ;
November 10, 2022: Baral Jewelers & Gifts, in Harrisburg, PA;
November 27, 2022: Sara Emporium Jewelry & Boutique, in Springfield, VA;
December 6, 2022: Kishek Jewelers, in Jacksonville, FL;
December 22, 2022: Chintamanis Inc., in Franklin Park, NJ;
January 27, 2023: Princess Diamonds, in Falls Church, VA.
The indictment further alleges that William Hunter, a/k/a “Ill Will,” conspired to commit carjackings between September 11, 2022 and October 22, 2022, with others. Defendants Wright, Avery Fuller, a/k/a “Deavry Cordell Fuller,” William Hunter, and Franklin Hunter, a/k/a “Gino,” conspired to launder the proceeds of the stolen property.
"This indictment alleges a conspiracy to engage in a violent armed robbery spree involving commercial establishments throughout the Eastern Seaboard,” said U.S. Attorney Graves. “One defendant is also charged with conspiracy to commit carjacking as part of the spree, and others are charged with laundering the proceeds from the robberies. With an increasing number of robbery schemes that cross state lines, collaborative operations like this one are critical to holding accountable those who threaten the safety of our communities."
“It is devastating that firearm-related violence such as the crimes committed throughout this investigation have become so prevalent within our communities,” said ATF Special Agent in Charge Craig Kailimai. “We will continue collaborating with our law enforcement partners by holding those individuals who seek to harm innocent people accountable for their actions.”
“The defendants targeted small businesses along the East Coast, stealing hundreds of thousands of dollars' worth of jewelry from hardworking families,” said Assistant Director in Charge David Sundberg. “For the past 20 months, the FBI worked with our partners across state lines to connect the defendants to these heists. Today's indictment is a testament to the strength of our partnerships and the commitment we all share to eradicating violent crime.”
“We allege these suspects took part in take-over style armed robberies meant to terrify and overwhelm store owners and employees,” said FBI-Newark Special Agent in Charge James Dennehy. “Many of the victim businesses are family owned and operated and lost large sums of inventory. The alleged violent and reckless actions of the subjects are astounding; they gave no thought to the people who could have been seriously injured or even killed. We have a message for criminals out there right now who believe these smash and grab robberies work in their favor because they mistakenly believe no one will hold them accountable. That’s not the case here – and it won’t be the case in the future. FBI Newark and our law enforcement partners will make sure if we can charge something federally, we will make that happen.”
“I want to thank the detectives from MPD and the other agencies involved for their tireless work on this case. This is a prime example of how we, as law enforcement partners, come together as one to hold people accountable for committing crimes in the District of Columbia,” said Acting Chief of Police Pamela A. Smith of the Metropolitan Police Department of the District of Columbia. “While this investigation took time, the message is clear: If you choose to recklessly disregard public safety in D.C., we, collectively as law enforcement partners, will do everything to find you and hold you accountable.”
NAME
AGE
ADDRESS
CHARGES
Andrew Smith aka “Drewso” or “Drew”
29
Maryland
Hobbs Act Robbery;
Conspiracy to commit Hobbs Act Robbery;
Firearm in furtherance of a crime of violence
Antonio Tate, aka “Motion” or “T-Motion”
20
Washington, D.C.
Conspiracy to commit Hobbs Act Robbery
Avery Fuller, aka “Ace”, “Fully”, or “Fully Ace”
28
Washington, D.C.
Hobbs Act Robbery;
Conspiracy to commit Hobbs Act Robbery;
Firearm in furtherance of a crime of violence
Davon Johnson, aka “Yb”
30
Washington, D.C.
Hobbs Act Robbery;
Conspiracy to commit Hobbs Act Robbery;
Firearm in furtherance of a crime of violence
Decarlos Hill, aka “Los”
29
Maryland
Hobbs Act Robbery;
Conspiracy to commit Hobbs Act Robbery;
Firearm in furtherance of a crime of violence
Delonte Martin, aka “DD”
25
Washington, D.C.
Conspiracy to commit Hobbs Act Robbery
Franklin Hunter, aka “Gino”
29
Washington, D.C.
Hobbs Act Robbery;
Conspiracy to commit Hobbs Act Robbery;
Firearm in furtherance of a crime of violence
Hesham Gomaa
45
Virginia
Hobbs Act Robbery;
Conspiracy to commit Hobbs Act Robbery;
Firearm in furtherance of a crime of violence
Jameise Christian, aka “Safe Play”, “Safety”, or “Safe”
32
Washington, D.C.
Hobbs Act Robbery;
Conspiracy to commit Hobbs Act Robbery;
Firearm in furtherance of a crime of violence;
Conspiracy to commit carjacking
Jaylaun Brown, aka “Lil Launy”
21
Washington, D.C.
Conspiracy to commit Hobbs Act Robbery
Keith McDuffie
26
California
Hobbs Act Robbery;
Conspiracy to commit Hobbs Act Robbery;
Firearm in furtherance of a crime of violence
Robert Sheffield, aka “Real Lifaa”
32
Washington, D.C.
Hobbs Act Robbery;
Conspiracy to commit Hobbs Act Robbery;
Firearm in furtherance of a crime of violence
Timothy Conrad, aka “Twin”
32
Washington, D.C.
Hobbs Act Robbery;
Conspiracy to commit Hobbs Act Robbery;
Firearm in furtherance of a crime of violence
Trevor Wright, aka “Taliban Glizzy”
32
Washington, D.C.
Hobbs Act Robbery;
Conspiracy to commit Hobbs Act Robbery;
Firearm in furtherance of a crime of violence
William Hunter, aka “Ill Will”
28
Washington, D.C.
Hobbs Act Robbery;
Conspiracy to commit Hobbs Act Robbery;
Firearm in furtherance of a crime of violence;
Conspiracy to commit carjacking
Lamont Marable
27
Washington, D.C.
Hobbs Act Robbery;
Conspiracy to commit Hobbs Act Robbery;
Firearm in furtherance of a crime of violence
Federal agents and local law enforcement arrested Smith, Johnson, Hill, Gomaa, Brown, McDuffie, Sheffield, and Conrad this morning; Wright, Hunter, Fuller, Tate, Martin, Brown, Christian, and Marable were already in custody. Search warrants were also executed resulting in the seizure of multiple guns and approximately $300,000 from a safe in one of the residences.
The superseding indictment also contains a notice of forfeiture and seeks the proceeds of the illegal activities.
The statutory maximum sentence for conspiracy to interfere with interstate commerce (known as Hobbs Act) robbery is 20 years; the statutory maximum sentence of Hobbs Act robbery is 20 years in prison; the crime of using a firearm in furtherance of a crime of violence carries a mandatory minimum sentence of seven years with a maximum possible sentence of life; the statutory maximum sentence for conspiracy to commit carjacking is five years in prison; the statutory maximum sentence for money laundering is 20 years. A federal judge will determine the appropriate sentence after considering the appropriate sentencing guidelines and other factors.
This case was investigated by the ATF’s Washington Field Division, the FBI’s Washington and Newark Field Offices, the United States Marshal Service, and the Metropolitan Police Department, with substantial assistance from the police departments of: Fairfax County (VA), Falls Church (VA), Franklin Township (NJ), Jersey City (NJ), Paterson (NJ), Middlesex County (NJ), South Brunswick (NJ), Somerset County (NJ), Woodbridge (NJ), Swatara Twp. (PA), the United States Secret Service-Uniformed Division, and the U.S. Postal Inspection Service-Washington Division. Additional assistance was provided by multiple U.S. Attorney’s Offices including: the District of New Jersey, Eastern District of Virginia, the District of Maryland, the Central District of California, and the Southern and Middle Districts of Florida.
The case is being prosecuted by Assistant U.S. Attorneys Sitara Witanachchi and Andy Wang, of the Violence Reduction and Trafficking Offenses Section in the U.S. Attorney’s Office for the District of Columbia.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Methuen Man Sentenced for Disaster Fund Fraud SchemeRead the Press Release
BOSTON – A Methuen man was sentenced today in federal court in Boston for using stolen identities to fraudulently obtain Economic Injury Disaster Loan funds from the Small Business Administration (SBA) and laundering the funds.
Ramon Joseph Cruz, Jr., 27, was sentenced by U.S. District Court Judge Richard G. Stearns to two years and one day in prison and three years of supervised release. Cruz was also ordered to pay restitution in an amount that will be determined at a future hearing. On May 18, 2023, Cruz pleaded guilty to one count of conspiracy to commit wire fraud and four counts of wire fraud and aiding and abetting.Between approximately April and December 2020, Cruz and co-defendant Darwyn Joseph conspired to use stolen identity information of United States citizens to apply for SBA Economic Injury Disaster Loans. Specifically, Cruz and Joseph used stolen identity information of U.S. citizens to open fraudulent bank accounts which were then linked to other fraudulent bank accounts set up to receive the SBA funds. Cruz and Joseph also received some of the debit cards associated with fraudulent bank accounts into which SBA funds were deposited, and then laundered those funds by using them to purchase large numbers of iPhones for re-sale. Cruz and Joseph also wired a portion of the funds to the Dominican Republic in furtherance of the scheme.
Over $452,000 in SBA funds were fraudulently obtained in connection with this scheme. Approximately $250,000 of this money was used to purchase iPhones in Massachusetts and New Hampshire.
Joseph pleaded guilty to his role in the conspiracy on July 12, 2023 and is scheduled to be sentenced on Oct. 19, 2023.Acting United States Attorney Joshua S. Levy and Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England made the announcement. Assistant U.S. Attorneys Elianna J. Nuzum and Adam W. Deitch of the Criminal Division prosecuted 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 at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.Mercer County Couple Indicted for Conspiring to Submit Fraudulent Asylum ApplicationsRead the Press Release
NEWARK, N.J. – A Mercer County couple was indicted for conspiring to prepare and submit fraudulent asylum applications, U.S. Attorney Philip R. Sellinger announced today.
Zuwairul Ameer, aka “Zuwairul Thowfeek,” 61, and Claudette Ameer, aka “Claudette Pieries,” 63, both of Lawrence Township, New Jersey, were both indicted on Aug. 29, 2023, on one count of conspiring to commit immigration fraud and one count of committing immigration fraud.
According to documents filed in this case and statements made in court:
Applicants for asylum in the United States must show that they have suffered persecution in their country of origin on account of race, religion, nationality, political opinion, or membership in a particular social group, or have a well-founded fear of persecution if they were to return to that country. The process requires an application that is reviewed by an asylum officer with the U.S. Citizenship and Immigration Services (USCIS), who makes an initial determination whether to grant asylum. If the application has been prepared by someone other than the applicant, the preparer must disclose his or her name and address and must sign the application.
Since at least 2007, Zuwairul Ameer has been in the business of preparing fraudulent asylum application on behalf of his non-citizen clients. Claudette Ameer has managed that business, acting as the primary point of contact for clients, arranging meetings, and mailing completed applications to USCIS. With Claudette Ameer’s assistance, Zuwairul Ameer met with clients, listened to their stories of mistreatment in their countries of origin, and drafted applications on their behalf that were fraudulent because they exaggerated the stories of mistreatment, falsely omitted Zuwairul Ameer’s name as the preparer, or both.
U.S. Attorney Sellinger credited special agents of the FBI - New York Field Office, under the direction of Assistant Director in Charge James Smith and immigration officers with of the USCIS Fraud Detection and National Security Directorate at the New York Asylum Office, under the direction of Director Patricia Menges, with the investigation.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Aaron L. Webman of the Criminal Division in Newark.
ameer.indictment.pdfMaryland Man Pleads Guilty to Issuing Threats of Violence to an LGBTQI+ Advocacy GroupRead the Press Release
A Maryland man pleaded guilty in a U.S. District Court in Baltimore to a federal crime for using a telephone to threaten a group that advocates for LGBTQI+ people.
According to court documents, on the evening of March 28, the victim organization received a threatening voicemail from Adam Michael Nettina, 34, of West Friendship. The message referenced a mass shooting that had happened the day before at a school in Nashville, Tennessee, involving multiple shooting fatalities, where the perpetrator was a transgender woman. During the call to the advocacy organization on March 28, Nettina made multiple threats, including, “…We’ll cut your throats. We’ll put a bullet in your head….You’re going to kill us? We’re going to kill you ten times more in full.”
Nettina admitted to leaving the threatening voicemail and to targeting his victims because of their actual and perceived gender, gender identity and sexual orientation.
“Bias-motivated threats of violence terrorize entire communities and have no place in our society,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will not stand by idly when the LGBTQI+ community faces bias-motivated threats of violence. The Justice Department will continue to investigate and prosecute individuals who commit unlawful acts of hate in our country.”
According to court documents, Nettina also admitted to sending messages to state delegates in two prior incidents. On Oct. 15, 2022, Nettina emailed a Virginia state delegate who had advocated, in an interview published two days earlier, for the prevention of abuse towards transgender children. Nettina wrote, in part, “You are a terrorist. You deserve to be shot and hung in the streets. You want to come after people? Let’s go bitch.” On Nov. 8, 2022, Nettina sent Facebook messages to a Maryland state delegate who had previously posted his support for the transgender community. Nettina wrote, in part, “Better watch out[.] Baby killing terrorist. Enjoy hell[.] You’re going sooner than you think.”
“You have the right to your own opinions, but you don’t have the right to threaten the lives of those who disagree with you,” said U.S. Attorney Erek L. Barron for the District of Maryland. “We’ll continue prosecuting these threats to the fullest extent of the law.”
“The defendant in this case attempted to terrorize the LGBTQI+ community by calling in multiple threats of violence to a local advocacy group,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI will not tolerate these acts of hate, and we remain committed to investigating civil rights violations and keeping our communities safe and free from fear.”
Nettina faces a maximum penalty of five years in prison for interstate communications with a threat to injure. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Baltimore Field Office investigated the case.
Assistant U.S. Attorney Paul E. Budlow for the District of Maryland and Trial Attorney Tara Allison of the Civil Rights Division’s Criminal Section are prosecuting the case.
Manager of Mexican Methamphetamine Trafficking Cartel SentencedRead the Press Release
NORFOLK, Va. – A Mexican national was sentenced today to 12 years in prison for conspiring to distribute methamphetamine while living in Mexico and acting as a manager for a Sinaloa, Mexico, drug trafficking organization (DTO).
According to court documents, between approximately 2016 and 2018, Victor Hugo Hinojosa-Elizondo, 55, was involved in and a manager of an international DTO responsible for distributing over 40 pounds of highly pure Mexican-made methamphetamine to cities throughout the United States, including Los Angeles, California; Providence, Rhode Island; and Norfolk.
The Sinaloa-based organization is responsible for manufacturing, importing, and distributing large amounts of highly pure methamphetamine using couriers, while running international meth operations in the United States from Mexico. Two conspirators, Hinojosa-Elizondo and Luis Enrique Soto-Ferro, 47, were extradited from Mexico to the United States last year after a lengthy international extradition process.
Soto-Ferro was sentenced in Norfolk last month to 15 years in prison for conspiring to distribute methamphetamine while living in Mexico and acting as a leader for the organization. The District Court in Norfolk also sentenced two couriers for the organization, Irana Carmago-Lugue, 38, to 10 years in prison, and Jorge Alberto Perez-Miramontes, 41, to 11 years in prison.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Ramin Fatehi, Norfolk’s Commonwealth’s Attorney; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division; Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, and Mark Talbot, Chief of Norfolk Police, made the announcement after sentencing by U.S. District Judge Jamar K. Walker.
The Justice Department’s Office of International Affairs worked with the government of Mexico to secure the arrests and extraditions in this 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.
Assistant U.S. Attorney Kevin M. Comstock and Special Assistant U.S. Attorney Graham Stolle 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. 2:18-cr-85.
Man Sentenced to 28 Years in Federal Prison for Violent Robbery and Carjacking SpreeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that CHRISTIAN LUIS VELEZ-RUIZ, 25, formerly of New Britain, was sentenced today by U.S. District Judge Sarala V. Nagala in Hartford to 336 months of imprisonment, followed by three years of supervised release, for robbery, carjacking, and firearm offenses stemming from a violent crime spree in 2021.
According to court documents and statements made in court, between September 2021 into December 2021, Velez committed 28 armed robberies of convenience stores, six armed carjackings, and three additional car thefts, throughout Connecticut. Velez began his crime spree shortly after he walked away from a halfway house where he was completing a state sentence for larceny and burglary offenses, and he continued committing his crimes after the FBI’s announcement in early November 2021 of a $25,000 reward for information leading to his arrest and conviction.
On December 17, 2021, law enforcement located Velez in a car in a parking lot in New Britain. Velez attempted to escape by ramming police vehicles and he ultimately fled on foot. A K9 pursuit ensued, and Velez was captured after he attempted to steal another vehicle. He has been detained since his arrest.
On December 14, 2022, Velez pleaded guilty to one count of carjacking, two counts of interference with commerce by robbery, and two counts of brandishing a firearm during and in relation to a crime of violence. The carjacking occurred on September 2, 2021, when Velez stole at gunpoint a 2020 white Jeep Grand Cherokee from the driveway of a victim in Southington. One of the robberies occurred on September 26, 2021, when Velez robbed at gunpoint a store located at a Sunoco gas station in Bristol. Velez pistol-whipped the store employee and stole U.S. currency and cigarettes from the store. The other robbery occurred on October 7, 2021, when Velez robbed at gunpoint a store located at a Citgo gas station in Southington. Velez brandished a pistol at the store employee and stole cash and cigarettes from the store. In pleading guilty, Velez took responsibility for all the offenses he committed during his crime spree.
This matter was investigated by the FBI, the Connecticut State Police, the Greater Hartford Regional Auto Theft Task Force, and the New Britain, Waterbury, Berlin, Bristol, Cromwell, East Hartford, Enfield, Farmington, Glastonbury, Manchester, Meriden, Middletown, Newington, Norwich, Plainville, Southington, Windsor, Wolcott, and Woodbridge Police Departments. The case is being prosecuted by Assistant U.S. Attorney Robert S. Ruff.
MS-13 and Mexican Mafia Leader Sentenced to More than 17 Years for an International Drug ConspiracyRead the Press Release
NEWS RELEASE SUMMARY – August 29, 2023
SAN DIEGO – Nelson Alexander Flores of Tijuana was sentenced in federal court to 210 months in prison for trafficking large quantities of methamphetamine into the United States from Mexico on behalf of MS-13 street gang and the Mexican Mafia prison gang.
According to information presented in court, between 2018 and May 2020, Flores coordinated with and supplied others with pound quantities of methamphetamine from various sources in Mexico, which was then distributed throughout the United States.
Flores is also serving a five-year sentence in federal prison for his role in an MS-13 RICO case to which he pleaded guilty in the Southern District of Ohio in United States v. Aguilar-River, et al., case no. 2:17-CR-164.
The court ruled that Flores’ term of imprisonment in the Southern District of California case will run consecutive to the term of imprisonment in the Southern District of Ohio RICO case.
“This defendant was responsible for moving more than 100 pounds of methamphetamine and cocaine a month on behalf of violent international street and prison gangs,” said Acting U.S. Attorney Andrew R. Haden. “He imported these drugs into San Diego from Mexico, before they were sent to poison other communities throughout the United States. We were proud to partner with Joint Task Force Vulcan in this prosecution to fight back on behalf of the Southern District of California and our nation.”
“The MS-13, Mexican Mafia, and their criminal partners fuel their criminal activities through the illicit importation and sale of narcotics,” said Director of Joint Task Force Vulcan (JTFV) John Durham. “Mr. Flores played a key role in MS-13’s international drug operations by coordinating the importation and distribution of narcotics throughout the United States, and his conviction and sentence mark a significant disruption. JTFV and our law enforcement partners will continue to work relentlessly to protect our communities from the plague of transnational organized crime.”
Since its creation in August 2019, JTFV has successfully implemented a whole-of-government approach to combatting MS-13, including increasing coordination and collaboration with domestic and foreign law enforcement partners; designating priority MS-13 programs, cliques and leaders, who have the most impact on the United States, for targeted prosecutions; and coordinating significant MS-13 indictments, including the first use of national security charges against MS-13 leaders. JTFV has been comprised of members from U.S. Attorney’s Offices across the country, including this Office; the Eastern District of New York; the Eastern District of Texas; the District of New Jersey; the Northern District of Ohio; the District of Utah; the District of Massachusetts; the Southern District of Florida; the District of Alaska; the Southern District of California; the District of Nevada; the Eastern District of Virginia; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division. All Department of Justice law enforcement agencies are involved in the effort, including the FBI; DEA; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; and the U.S. Bureau of Prisons. In addition, HSI plays a critical role in JTFV.
DEFENDANT Case Number 22cr908
Nelson Alexander Flores Age: 52 Tijuana, Mexico
Aka “Mula,” aka “El 40,” aka “Cuarenta,” aka “Juan,” aka “Juanita”
SUMMARY OF CHARGES
International Drug Conspiracy – Title 21, United States Code, Sections 959, 960 & 963.
Maximum penalty: Life in prison and $10 million fine.
AGENCY
Homeland Security Investigations
Drug Enforcement Administration
Federal Bureau of Investigation
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Luzerne County Man Indicted for Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Charles Vincent Benincasa, age 40, of Kingston, Pennsylvania, was indicted yesterday by a federal grand jury with drug trafficking and firearms offenses.
According to United States Attorney Gerard M. Karam, the indictment charges Benincasa with distribution of a controlled substance, possession with intent to distribute a controlled substance, possession of a firearm in furtherance of a drug trafficking crime, and possession of an unregistered firearm (commonly known as an untraceable “ghost gun”) related to conduct that occurred in July of 2023, in Luzerne County.
The case was investigated by the Luzerne County Drug Task Force together with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Luisa Honora Berti is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The maximum penalty under federal law for this offense is a term of life imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #
Kennewick Man Sentenced to over 9 Years in Federal Prison for Trafficking 21,000 Fentanyl Laced PillsRead the Press Release
Richland, Washington – On August 29, 2023, Chief United States District Judge Stanley A. Bastian sentenced Michael Lee Vantiger, age 43, to 115 months in in federal prison after his guilty plea to possession with intent to distribute 400 grams or more of fentanyl. Vantiger, who is from Kennewick, WA, also will serve 5 years of federal supervision after he is released from custody.
According to information disclosed during court proceedings, Vantiger had been under investigation on multiple occasions, by both the Tri-City Metro Drug Task Force and the Drug Enforcement Administration’s (“DEA”) Resident Office. In February 2020, Vantiger was arrested after a traffic stop where he was attempting to transport approximately 21,000 fentanyl laced pills which were concealed in the trunk of a rental vehicle. At the time, this was one of the largest single seizures of deadly fentanyl laced pills in this district. The items seized are pictured below:
Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, stated “Fentanyl is the deadliest drug threat facing this country. Egregious consequences stem from this dangerous poison. The Eastern District of Washington is safer and stronger today as a result of the incredible work of several law enforcement agencies, who came together to seize these drugs and save lives in our community.”
“This case illustrates how determined DEA and our federal, state, and local partners are in stopping those that pedal poisonous fentanyl into our communities. Mr. Vantiger was on our radar a few times, so it is satisfying to apprehend and incarcerate those who act in continual disdain for our communities’ safety and well-being,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division.
This case was investigated by the DEA Tri-Cities Resident Office, the Tri-City Metro Drug Task Force, United States Border Patrol, Richland Police Department, Kennewick Police Department, Pasco Police Department, West Richland Police Department, and the Benton County Sherriff’s Office. This case was prosecuted by Assistant United States Attorney Stephanie Van Marter.
4:20-CR-06010-SAB
Kennewick Business Owner Agrees to Pay $107,534 to Resolve False Claims Act Liability in Connection with COVID Relief FraudRead the Press Release
Richland, WA – A Kennewick business owner has agreed to pay $107,534 to resolve False Claims Act claims that he misused COVID-19 relief funding to purchase a personal recreational vehicle, announced Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington. This civil settlement is the most recent result announced by the Eastern Washington COVID-19 Fraud Strike Force launched by the U.S. Attorney’s Office last year.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided forgivable loans to eligible small businesses to retain jobs and maintain payroll during the pandemic. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low-interest bridge funding to support businesses endangered by the pandemic.
Since being launched in March 2022, the Eastern Washington COVID Strike Force has charged approximately 20 individuals, obtained ten criminal felony fraud convictions, and recovered millions of dollars in misspent funds, fines, and penalties.
“COVID-19 relief programs quickly ran out of money due to the number of businesses that requested funding, meaning that struggling, deserving small businesses were not able to obtain critically needed funding to keep their businesses afloat during the shutdowns and disruptions caused by the COVID pandemic,” said U.S. Attorney Waldref. “We created the Eastern Washington COVID-19 Fraud Strike Force because it is critical to the strength and safety of our communities that we all work together to combat pandemic-related fraud and bring much-needed accountability to these programs. The Strike Force works to ensure that limited resources are used to protect our local small businesses and the critical jobs and services that they provide for the community.”
In the settlement announced today, Benjamin D. Castilla, the owner of Columbia Basin Netwerks, a Kennewick-based IT services business, admitted that he received PPP and EIDL funding for his business. Castilla admitted that, while he used some of the funding he received for legitimate business purposes, he also used $107,534 to purchase a recreational vehicle (RV) for his personal use. In addition to paying $107,534, Castilla agreed through the settlement to timely repay all of the CARES Act loan funding that he received.
“I’d like to recognize the stellar investigative work done by the Small Business Administration, Office of Inspector General, on this case,” continued U.S. Attorney Waldref. “We will continue to work closely with the Strike Force and with our law enforcement partners to protect our communities and bring accountability for those who take advantage of vital public programs.”
“Those who misuse SBA pandemic funds for personal gain will be held accountable,” said Special Agent in Charge Weston King of SBA’s OIG Western Region. “I want to thank the U.S. Attorney’s Office and our law enforcement partners for their support and dedication to pursuing justice in this case.”
The cases were investigated by the Eastern Washington COVID Fraud Strike Force, and in particular by the Small Business Administration OIG, Western Region. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene prosecuted this case on behalf of the United States.
Justice Department Seeks to Shut Down Houston Area Tax Return Preparer and BusinessRead the Press Release
The United States today filed a complaint in the U.S. District Court for the Southern District of Texas seeking to permanently bar a Houston-area tax return preparer and her business from preparing federal income tax returns for others, among other related prohibitions.
The complaint alleges that Crystal Ojeda prepared over 10,000 federal income tax returns between 2018 and 2023 from her business “Money Market Tax Company LLC” as well as through two separate sole proprietorships: “Money Market Financial Services” and “Money Market Financial.” The complaint also alleges that in a substantial number of these tax returns, Ojeda significantly overstated her customers’ tax refund amounts by fabricating or inflating business losses, medical and dental expenses, and charitable contributions. In addition, the complaint alleges that for some customers’ returns, Ojeda falsely claimed residential energy credits to which her customers were not entitled, reducing their taxable income and leading to inflated refunds.
By repeatedly understating her customers’ tax liabilities, the complaint alleges, Ojeda has caused the United States harm of an estimated $4.8 million in tax revenue just from the years 2020 to 2022, and millions more from earlier years.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.
In the past decade, the Justice Department Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Secures Settlement with Missouri Apartment Complex Developers over Disability Discrimination ClaimsRead the Press Release
The Justice Department announced that LJLD LLC and Westminster Properties LLC, the developers of residential apartments in St. Louis, have agreed to settle a federal lawsuit alleging that they violated the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA) by failing to design and construct Bridgewater Residences Apartments in St. Louis to be accessible to people with disabilities.
Under the consent order, which must still be approved by the U.S. District Court for the Eastern District of Missouri, the defendants will pay $18,500 into a settlement fund to compensate individuals harmed by the inaccessible housing and will modify features of the apartment complex to be accessible. The updates will, among other things, eliminate inaccessibly steep slopes on the walkways around the outside of the apartment complex; make accessible the exterior facilities, such as the dumpster and the dog park, by constructing the appropriate sidewalks and ramps; and make the bathrooms in the apartments more accessible and usable.
“This settlement makes clear that the Justice Department is committed to zealously enforcing the federal civil rights laws that guarantee people with disabilities equal access to housing,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Real estate developers across the country should take note that they cannot ignore federally-mandated accessibility requirements.”
“Under this agreement, tenants with disabilities will be compensated for the difficulties they suffered in the past at these apartments,” said U.S. Attorney Sayler A. Fleming for the Eastern District of Missouri. “But more importantly, the agreed-upon updates will make it safer and easier for both current and future tenants to easily access all the facilities of the complex, including dumpsters, dog parks and their own apartment bathrooms.”
“Failing to properly design and construct apartments to be accessible to people with disabilities amounts to violation of the Fair Housing Act and the ADA,” said Principal Deputy Assistant Secretary Demetria L. McCain of the Department of Housing and Urban Development’s Office of Fair Housing and Equal Opportunity. “That is why Department of Housing and Urban Development's (HUD) free Fair Housing Accessibility FIRST initiative was created as a way to assist the public with planning for compliance with the accessibility requirements first – before engineering, before design and before construction.”
In addition to updating the apartments and compensating persons who have who have been harmed as a result of the inaccessible conditions at the properties (located at 19, 21 and 23 Kassebaum Lane), the consent order also requires that the defendants’ employees undergo training on the design and construction requirements of the FHA and the ADA.
The lawsuit arose from a complaint by Metropolitan St. Louis Equal Housing and Opportunity Council (EHOC) filed with HUD. After HUD investigated the complaint, it issued a charge of discrimination. EHOC chose to have the matter decided in federal court, and HUD referred to the matter to the Justice Department. Upon receiving the referral, the Justice Department investigated further and filed a lawsuit in September 2022.
Individuals who believe they or someone they know may have had difficulties because of the inaccessible conditions at these properties should send an e-mail to the Justice Department at [email protected] or call 1-833-591-0291 and select option 1 for English, option 4 for housing accessibility for persons with disabilities or the design and construction of accessible housing cases, and option 7 for Bridgewater to leave a message.
The Justice Department’s Civil Rights Division enforces the FHA, which prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. This law requires that multifamily housing buildings with four or more units constructed after March 13, 1991, have basic accessible features. Enacted in 1990, the ADA requires that places of public accommodation, such as rental offices at multifamily housing complexes constructed after Jan. 26, 1993, be accessible to persons with disabilities.
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals may report disability discrimination or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination tip line at 1-833-591-0291, e-mailing the Justice Department at [email protected], or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.
HUD’s Fair Housing Accessibility FIRST is an initiative designed to promote compliance with the Fair Housing Act design and construction requirements. The program offers comprehensive and detailed instruction programs, useful online web resources, and a toll-free information line for technical guidance and support. Those interested in technical assistance from HUD’s FIRST program may read more at www.hud.gov/program_offices/fair_housing_equal_opp/accessibility_first_home.
Consent OrderJustice Department Files Complaint to Enjoin Arizona Company and Its Owner from Manufacturing and Distributing Unapproved Animal DrugsRead the Press Release
The Justice Department announced today that the United States filed a complaint to enjoin a Gilbert, Arizona, company from manufacturing and distributing products the government alleges to be adulterated and unapproved new animal drugs, the Justice Department announced today.
In a civil complaint for permanent injunction filed Aug. 29, in the U.S. District Court for the District of Arizona, the United States alleges that AniCell Biotech LLC and its owner, Brandon T. Ames, violated the Federal Food, Drug and Cosmetic Act (FDCA). According to the complaint, the defendants manufacture products under the brand names EquusCell and CanisCell consisting of injectable and intravenous liquids, eye drops and grafts derived from the amniotic tissue of horses. The complaint alleges that the defendants claim on their website and in promotional pamphlets that their products are intended for use in horses, dogs and cats to treat various diseases, such as osteoarthritis and renal failure, and to promote tissue regeneration and healing.
According to the complaint, the defendants’ products are not generally recognized by qualified experts as safe and effective for the purposes claimed by the defendants and lack approval by the U.S. Food and Drug Administration (FDA). The complaint further alleges that new animal drugs sold in interstate commerce without FDA approval are considered adulterated. The complaint states that FDA repeatedly told the defendants, including through a 2018 warning letter, that their products constituted new animal drugs under the law and could not be sold without FDA approval.
“The FDCA is critical to ensuring the safety of animal drugs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to work with FDA to take action against animal drug manufacturers that do not comply with the law.”
“New animal drugs must undergo FDA review to ensure that, among other things, they are safe and effective for their intended uses,” said Director Tracey Forfa J.D. of the FDA’s Center for Veterinary Medicine. “When companies distribute unapproved new animal drugs like these by ignoring or attempting to bypass the public health safeguards of FDA pre-market review and post-market monitoring, they not only violate the law, but they also violate the trust of their people who rely on their products to be safe and effective to treat animals in need.”
Trial Attorney Coleen Schoch of the Justice Department’s Consumer Protection Branch is handling the case with the assistance of Associate Chief Counsel for Enforcement Jaclyn E. Martínez Resly of the FDA’s Office of the Chief Counsel.
The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove by a preponderance of the evidence.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch.
ComplaintJacksonville Convicted Felon Sentenced to More Than Three Years in Federal Prison for Firearm PossessionRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Antoine Danielle Pearson, Jr. (28, Jacksonville) to three years and one month in federal prison, followed by three years of supervised release, for possessing a firearm as a convicted felon. He was also ordered to forfeit the firearm and ammunition traceable to the offense. Pearson had pleaded guilty on May 24, 2023.
According to court documents, on August 12, 2022, officers with the Jacksonville Sheriff’s Office (JSO) attempted to pull over Pearson due to a traffic infraction. After he stopped, Pearson fled from the vehicle on foot, armed with a Glock pistol, an extended magazine with 24 rounds of ammunition, and a Glock switch. A Glock switch enables a semi-automatic firearm to operate as a fully functioning machine gun. Pearson was apprehended by JSO canine officers.
At the time of the offense, Pearson had multiple prior felony convictions and therefore is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sherriff’s Office. It was prosecuted by Assistant United States Attorney John Cannizzaro. The forfeiture will be handled by Assistant United States Attorney Mai Tran.
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.
Indiana Resident Sentenced to 90 Months in Prison on Charges of Violating Federal Narcotics LawsRead the Press Release
PITTSBURGH, PA. – A resident of Indiana, Pennsylvania, was sentenced on charges of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.
The two-count Indictment named James Emmanuel Emerson, a/k/a “Manny,” age 52, as the sole defendant.
According to the Indictment presented to the court, on or about February 15, 2022, and on or about March 3, 2022, Emerson knowingly, intentionally, and unlawfully possessed with the intent to distribute and distributed 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
United States District Court Judge Arthur J. Schwab sentenced Emerson to 90 months in prison to be followed by a four-year term of supervised release.
Assistant United States Attorney Carl J. Spindler prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, Laurel Highlands Resident Agency conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Indian National Admits Defrauding Telephone Providers and Insurance Companies of Millions of Dollars’ Worth of MerchandiseRead the Press Release
NEWARK, N.J. – An Indian national admitted today that he conspired with others to devise a scheme to defraud various telephone providers and insurance companies out of millions of dollars by using stolen or fake identities to submit fraudulent claims for replacement cellular devices and then reselling those devices outside the United States, U.S. Attorney Philip R. Sellinger announced.
Parag Bhavsar, 42, of Newark, pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of conspiracy to commit mail fraud and one count of conspiracy to commit interstate transfer of stolen property.
According to documents filed in this case and statements made in court:
From June 2013 through June 2019, Bhavsar was involved in a widespread scheme to defraud cellular telephone provider and insurance companies using the U.S. Postal Service mail system, as well as other third-party mail carriers. He and his conspirators used stolen and fake identities to submit false claims of lost, stolen or damaged cellular telephones, as well as other devices, in order to obtain replacement devices. Bhavsar and his conspirators maintained a network of mailboxes and storage units across the United States, including in New Jersey, where the replacement devices would be shipped and then held before being sold to third parties outside the United States. Bhavsar and his conspirators’ scheme resulted in millions of dollars of losses to the cellular telephone providers and insurance companies.
The charge of conspiracy to commit mail fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greatest. The charge of conspiracy to commit interstate transfer of stolen goods carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greatest. As part of the plea agreement, Bhavsar will consent to the entry of a forfeiture money judgement of $10.67 million. Sentencing is scheduled for Jan. 3, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark and Assistant Director in Charge James Smith in New York, postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky J. Patel; officers of U.S. Customs and Border Protection, New York Field Office, under the direction of Director of Field Operations Frank Russo; and the U.S. Department of State’s Diplomatic Security Service, New York Field Office, under the direction of Acting Special Agent in Charge Kelly Bishop, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Rachelle M. Navarro of the U.S. Attorney’s Office’s Criminal Division in Newark.
bhavsar.information.pdfHoward County Man Pleads Guilty for Threatening an LGBTQI+ Advocacy GroupRead the Press Release
Baltimore, Maryland – Adam Michael Nettina, age 34, of West Friendship, Maryland, pleaded guilty today to using the telephone to threaten a group that advocates for LGBTQI+ people. As part of his plea agreement, Nettina also admitted sending messages to Maryland and Virginia state delegates due to their statements in support of transgender people.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
“You have the right to your own opinions, but you don’t have the right to threaten the lives of those who disagree with you,” said United States Attorney for the District of Maryland, Erek L. Barron. “We’ll continue prosecuting these threats to the fullest extent of the law.”
“Bias-motivated threats of violence terrorize entire communities and have no place in our society,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to investigate and prosecute individuals who commit unlawful acts of hate in our country.”
“All Americans should be able to go about their daily lives without fear and without threats of violence,” said Special Agent in Charge Thomas J. Sobocinski of the FBI’s Baltimore Field Office. “Protecting the American people is the FBI’s number one priority and we remain committed to protecting the rights of all Americans. We urge members of the public to notify law enforcement about threats of violence or if they have any concerns.”
According to court documents, on the evening of March 28, 2023, the victim organization received a threatening voicemail from a phone number, which investigators identified as belonging to Adam Michael Nettina. The message referenced the March 27, 2023, mass shooting at a school in Nashville, Tennessee, involving multiple shooting fatalities, where police identified the perpetrator as a transgender woman. During the call, numerous threats were made including, “ . . . We’ll cut your throats. We’ll put a bullet in your head . . . . You’re going to kill us? We’re going to kill you ten times more in full.” Nettina admitted that he left this voicemail for the purpose of issuing a threat and with the knowledge that the voicemail would be viewed as a threat. Further, Nettina intentionally selected the advocacy organization as a target of his message because of the actual and perceived gender, gender identity, and sexual orientation of the people who work at and are assisted by the organization.
As detailed in his plea agreement, on March 31, 2022, a Maryland State Delegate posted a message of support on social media in honor of Trans Day of Visibility. Nettina responded on social media later that same day, which stated, among other things, that he had “begun the formal process of getting you excommunicated . . . ” from the Catholic Church. On November 8, 2022, the delegate was reelected. Nettina sent the delegate another message on social media, stating: “ . . . Baby killing terrroist. Enjoy hell You’re going sooner than you think.”
Finally, as outlined in the court documents, on October 13, 2022, an online news story was published about an interview a Virginia State Delegate gave in which she advocated for the prevention of abuse towards transgender children. Two days later, on October 15, 2022, Nettina used the internet to send an email to the delegate’s press email account, stating: “The delegate is a terrorist. You are a terrorist. You deserve to be shot and hung in the streets. You want to come after people? Let’s go b**ch.” Nettina also sent a similar message to another email address of the delegate two minutes later. Nettina intentionally selected the delegate and her campaign staff as the recipient of his email because of the actual and perceived gender, gender identity, and sexual orientation of the people and constituents for whom the delegate had expressed support.
Nettina faces a maximum sentence of five years in federal prison for making threats transmitted by interstate communications. U.S. District Judge George L. Russell, III has scheduled sentencing for Nettina on November 3, 2023, at 9:30 a.m.
United States Attorney Erek L. Barron and Assistant Attorney General Kristen Clarke commended the FBI for its work in the investigation. Mr. Barron and Ms. Clarke thanked Assistant U.S. Paul E. Budlow and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division, who are prosecuting the federal case.
The U.S. Attorney’s Office for the District of Maryland (USAO-MD) is launching the national Department of Justice initiative, United Against Hate, this spring. Together with our local partners, USAO-MD’s United Against Hate campaign will empower local residents and communities to combat unlawful acts of hate, stand against racism and discrimination and alter the course of growing intolerance.
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.
# # #
Health Care Provider Agrees to Pay $5 Million for Alleged False Claims to California’s Medicaid ProgramRead the Press Release
Lompoc Valley Medical Center (LVMC), a California Health Care District that operates multiple health care providers, including a hospital and several clinics, in Lompoc, California, has agreed to pay $5 million to resolve allegations that it violated the False Claims Act and the California False Claims Act by causing the submission of false claims to California’s Medicaid program (Medi-Cal) related to Medicaid Adult Expansion under the Patient Protection and Affordable Care Act (ACA).
Pursuant to the ACA, beginning in January 2014, Medi-Cal was expanded to cover the previously uninsured “Adult Expansion” population – adults between the ages of 19 and 64 without dependent children with annual incomes up to 133% of the federal poverty level. The federal government fully funded the expansion coverage for the first three years of the program. Under contracts with California’s Department of Health Care Services (DHCS), Santa Barbara San Luis Obispo Regional Health Authority, doing business as CenCal Health (CenCal), arranges for the provision of health care services as a county organized health system under Medi-Cal in Santa Barbara County and San Luis Obispo County, California, by contracting with providers such as LVMC to provide health care services to Medi-Cal patients. Under its contractual arrangement with DHCS, CenCal received funding to serve the Adult Expansion population. If CenCal did not spend at least 85% of the funds it received for the Adult Expansion population on “allowed medical expenses,” CenCal was required to pay back to the state the difference between 85% and what it actually spent. California, in turn, was required to return that amount to the federal government.
The settlement resolves allegations that LVMC knowingly caused the submission of false claims to Medi-Cal pursuant to agreements executed by LVMC with CenCal for “Enhanced Services” that LVMC purportedly provided to Adult Expansion Medi-Cal members between Jan. 1, 2014, and June 30, 2016. The United States and California alleged that LVMC claimed and received payments pursuant to those agreements that were not for “allowed medical expenses” permissible under the contract between DHCS and CenCal; were pre-determined amounts that did not reflect the fair market value of any Enhanced Services provided by LVMC; and/or the Enhanced Services were duplicative of services already required to be rendered by LVMC. The United States and California further alleged that the payments were unlawful gifts of public funds in violation of the California Constitution.
This settlement brings the United States’ total recovery in the matter to $95.5 million. CenCal, Cottage Health System, Sansum Clinic and Community Health Centers of the Central Coast previously paid $68 million, and Dignity Health and Twin Cities Community Hospital and Sierra Vista Regional Medical Center, two subsidiaries of Tenet Healthcare Corporation, previously paid $22.5 million, to settle similar False Claims Act allegations.
“The Medicaid program provides critical health care services to those most in need,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold providers accountable when they knowingly divert Medicaid funds from their intended purpose.”
“This resolution underscores our steadfast resolve to hold accountable health care providers that seek to undermine the integrity of the Medicaid program,” said U.S. Attorney Martin Estrada for the Central District of California. “We will ensure that the nearly $100 million recovered in this case remains in government health care programs, and not in the hands of unscrupulous health care systems and providers.”
“Federal health care programs are intended to ensure that millions of Americans have access to high quality, medically necessary care,” said Special Agent in Charge Timothy B. DeFrancesca of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Protecting federal health care funds from fraud, waste, and abuse is at the center of HHS-OIG’s mission, and we are committed to ensuring that these valuable resources are available to patients as intended.”
“Medi-Cal supports millions of Californians by providing for the critical healthcare they rely on every day,” said California Attorney General Robert Bonta. “When providers misuse Medi-Cal funding, they siphon away much-needed resources from vulnerable, deserving patients. My office always stands ready to partner with the U.S. Department of Justice to hold such perpetrators accountable. The California Department of Justice is committed to protecting the integrity of the Medi-Cal program against those who may seek to abuse it.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Julio Bordas, CenCal’s former medical director. Under the act, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States and State of California ex rel. Bordas v. Lompoc Valley Medical Center, et al., No. 15-cv-09834 (C.D. Cal.). Dr. Bordas will receive approximately $950,000 as his share of the federal recovery.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Central District of California, and the California Department of Justice, with assistance from HHS-OIG and DHCS.
The investigation of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Trial Attorneys Mary Beth Hickcox-Howard and Tiffany L. Ho of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Jack D. Ross for the Central District of California handled this case.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
SettlementHarlingen business operators charged in multi-million dollar power wheelchair fraud schemeRead the Press Release
BROWNSVILLE, Texas – The operators of a durable medical equipment company have been charged with defrauding Medicare, announced U. S. Attorney Alamdar S. Hamdani.
Authorities took Maria Luisa Yzaguirre, 43, Harlingen, into custody this morning. She is expected to make her initial appearance before U.S. Magistrate Judge Ignacio Torteya III at 9:30 a.m. Aug. 31.
Jeremiah Yzaguirre, 44, also of Harlingen, was arrested Aug. 22.
The 16-count indictment charges the operators with conspiracy to commit health care fraud, aggravated identity theft and money laundering.
The charges allege that between 2019 and 2023, the Yzaguires submitted over $14 million in claims to Medicare for power wheelchairs, power scooters, parts and repairs for 37 individuals. In multiple instances, they allegedly billed Medicare more than $600,000 for parts and repairs for one Medicare beneficiary and falsely claimed to have replaced expensive parts on numerous occasions.
According to the indictment, in one instance they billed Medicare approximately $736,072 in parts and repairs for one patient - submitting repair claims 132 times for the expandable controller, 107 times for the motor-gearbox and 84 times for the battery. The patient was bed bound and did not have access to the power wheelchair when the repairs were allegedly conducted.
Additionally, the indictment alleges they used proceeds of the fraud scheme to purchase millions of dollars in real estate, cryptocurrency, stock, a luxury sports car and expensive movie memorabilia.
If convicted, they each face up to 10 years in prison for health care fraud and money laundering and a mandatory two years for each count of aggravated identity theft which muse be served consecutively to any other prison term imposed.
The FBI, Department of Health and Human Services-Office of Inspector General, Texas Health and Human Services, Texas Attorney General - Medicaid Fraud Control Unit and Texas Department of Insurance conducted the investigation.
Assistant U.S. Attorneys Andrew Swartz and Ana Cano 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.
Great Falls man admits making false statement while trying to buy gunRead the Press Release
GREAT FALLS — A Great Falls man admitted today that he did not disclose he was a methamphetamine user when he attempted to purchase a gun from a firearms dealer, U.S. Attorney Jesse Laslovich said.
Joshua Raymond Sauve, 35, pleaded guilty to making a false statement during a firearm transaction. Sauve faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for Jan. 24, 2024 and ordered Sauve detained pending further proceedings.
The government alleged in court documents that in April 2022 in Great Falls, law enforcement received a 911 report of a person, later identified as Sauve, waving a gun in the air while walking in the middle of the street near a gas station. Officers found Sauve in the gas station’s restroom, ordered him out and seized a .40-caliber semi-automatic pistol from his waistband. Sauve told an agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives that he tried to buy the pistol at Scheels but received a delay on the purchase. Because of the delay, Sauve contacted someone else who could buy the same gun for him. Sauve also acknowledged that he had used meth for the last five years. Investigators determined that Sauve tried to buy the pistol at Scheels, a licensed firearms dealer, and knowingly made a false statement when he checked the box on the ATF purchase form indicating that he was not an unlawful user of a controlled substance. While Scheels did not allow Sauve to purchase the pistol, Sauve’s statement was capable of influencing Scheels into believing that the firearm could be lawfully sold to him.
Assistant U.S. Attorney Jessica A. Betley is prosecuting the case. The ATF and Great Falls Police Department conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
XXX
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Two Vernon County Residents Charged with Drug Crimes Involving Methamphetamine & Fentanyl
Stanley J. Holte, 33, and Julia A. Lloyd, 40, both of Coon Valley, Wisconsin, are charged with conspiring to distribute methamphetamine and fentanyl. The indictment alleges that the amount of methamphetamine involved in the conspiracy is 500 grams or more. The indictment further alleges that the conspiracy operated from February through June 2023.
Holte and Lloyd also are charged with maintaining a drug house for the purpose of distributing methamphetamine and fentanyl, specifically a place in Coon Valley. The indictment also charges that on June 12, 2023, Holte and Lloyd possessed 500 grams or more of methamphetamine with intent to distribute. The indictment also seeks the forfeiture of $58,104 in U.S. currency alleged to be proceeds of the drug conspiracy.
If convicted, Holte and Lloyd face a mandatory minimum sentence of 10 years and a maximum of life in federal prison on the two charges alleging 500 grams or more of methamphetamine. The charge of maintaining a drug house has a maximum penalty of 20 years in federal prison. The charges against Holte and Lloyd are the result of an investigation by the Vernon and La Crosse County Sheriffs’ Offices, the Drug Enforcement Administration, and the Campbell, La Crosse, and Onalaska Police Departments. Assistant U.S. Attorney Steven Anderson is handling the prosecution.
La Crosse Man Charged with Possessing Methamphetamine for Distribution & Gun Crimes
Benjamin W. Thoreson, 42, La Crosse, Wisconsin, is charged with possessing methamphetamine with intent to distribute, possessing a loaded firearm in furtherance of that drug trafficking crime, and being a felon in possession of firearms and ammunition. The indictment alleges that on August 2, 2023, Thoreson possessed methamphetamine for distribution and two loaded handguns.
f convicted, Thoreson faces a maximum penalty of 20 years in federal prison on the methamphetamine charge and a mandatory minimum penalty of 5 years and a maximum of life on the charge of possessing a firearm in furtherance of that drug trafficking crime. Federal law requires that any penalty imposed for the charge of possessing a firearm in furtherance of a drug trafficking crime be served consecutive to any other sentence imposed. The charge of being a felon in possession of firearms and ammunition has a maximum penalty of 15 years in federal prison.
The charges against Thoreson are the result of an investigation by the La Crosse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan is handling the prosecution.
La Crosse Man Charged with Illegally Possessing Firearm
Briante C. Banks, 30, La Crosse, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that on May 2, 2023, he possessed a loaded 9mm handgun.
If convicted, Banks faces a maximum penalty of 15 years in federal prison. The charge against him is the result of an investigation by the La Crosse Police Department, La Crosse County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan is handling the prosecution.
Eau Claire Man Charged with Gun Crime
Nathaniel R. Larson, 25, Eau Claire, Wisconsin, is charged with being a felon in possession of a firearm and ammunition. The indictment alleges that on July 11, 2023, Larson possessed a loaded 9mm handgun.
If convicted, Larson faces a maximum penalty of 15 years in federal prison. The charge against him is the result of an investigation by the Eau Claire Police Department, West Central Drug Task Force, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan is handling the prosecution.
The Thoreson, Banks, and Larson indictments have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Furniture company employee pleads guilty to embezzling more than $26 million from employerRead the Press Release
COLUMBUS, Ohio – A Central Ohio man pleaded guilty in U.S. District Court to embezzling more than $26 million from his Columbus employer.
Yi He, 35, of Powell, admitted to committing wire fraud and filing a false tax return.
According to court documents, Yi was a long-time and trusted employee of a furniture company that provides furniture to retailers like Wayfair, Overstock, Kohls, Walmart and Ashley. Yi was solely responsible for payroll and payroll tax-related duties for the company.
From 2018 until 2022, Yi embezzled money from the company’s bank account into his own personal and financial investment accounts. Yi submitted false and fraudulent bank and financial statements to the company’s leadership to remain undetected.
For example, in one wire transfer in February 2022, Yi wired himself $100,000. Yi falsified that month’s bank account statement by removing the transaction entirely.
In total, Yi stole $26.5 million from the company.
Yi also helped oversee an employee incentive LLC that rewarded company employees with 10 or more years of service. The LLC offered employees a way to earn more and supplement retirement. Yi similarly embezzled from the LLC’s bank accounts. For example, in one wire transfer in April 2022, he paid himself $200,000 by falsely categorizing the transfer as “Rent.” In total, he stole $635,000 from the LLC.
Yi failed to accurately report his income to the IRS for tax years 2018 through 2021, causing a total tax loss of approximately $6.8 million.
As part of his guilty plea, Yi will pay more than $27 million in restitution to the furniture company and LLC, and he will forfeit two homes in Reynoldsburg and one home in Columbus.
Wire fraud is punishable by up to 20 years in prison. Filing a false tax return carries a potential penalty of up to three years in prison. Congress sets the maximum statutory sentence, and sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI); announced the guilty plea entered on Aug. 29 before U.S. District Judge Sarah D. Morrison. Assistant United States Attorney Jessica W. Knight is representing the United States in this case.
# # #
Former University Financial Advisor Sentenced to Four Years in Federal Prison for Scheme to Fraudulently Obtain More Than $5 Million in Student LoansRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Randolph Stanley, age 44, of Lexington Park, Maryland, yesterday to four years in federal prison, followed by three years of supervised release, for conspiracy to commit wire fraud. Judge Chuang also ordered that Stanley must pay restitution in the full amount of the victims’ losses, which is at least $5,648,238, the outstanding balance on all federal student loans that Stanley obtained on behalf of himself and others as part of the scheme.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Terry Harris of the U.S. Department of Education, Office of Inspector General (DOE-OIG) Eastern Regional Office; and Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service - Mid-Atlantic Field Office.
As detailed in court documents and his plea agreement, from about 2006 until approximately 2021, Stanley and his co-conspirators engaged in a scheme to defraud the U.S. Department of Education. Specifically, Stanley, was employed as a Financial Advisor at University 1, headquartered in Adelphi, Maryland, and his co-conspirators recruited over 60 individuals (“Student Participants”) to apply for and enroll in post-graduate programs at more than eight academic institutions, including University 1 and University 2 (“the Schools”). Stanley and his co-conspirators told Student Participants that they would assist with the coursework for these programs, including completing assignments and participating in online classes on behalf of the Student Participants, in exchange for a fee. As a result, the Student Participants fraudulently received credit for the courses, and in many cases, degrees from the Schools, without doing the necessary work.
Stanley also admitted that he and his co-conspirators directed the Student Participants to apply for federal student loans. Many of the Student Participant were not qualified for the programs to which they applied. Student Participants, as well as Stanley himself, were awarded tuition, which went directly to the Schools and at least 60 Student Participants also received student loan refunds, which the Schools disbursed to Student Participants after collecting the tuition. Stanley, as the ringleader of the scheme, kept a portion of each of the students’ loan refunds.
United States Attorney Erek L. Barron commended the DOE-OIG, Defense Criminal Investigative Service, and the Defense Contract Audit Agency Office of Inspector General for their work in the investigation. Mr. Barron thanked Special Assistant United States Attorney Peter Cooch and Assistant U.S. Attorney Leah Grossi, who handled the sentencing.
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.
# # #
Former Sheriff’s Deputy Indicted for Threatening to Burn Down the Plymouth County Courthouse and Kill Law Enforcement OfficersRead the Press Release
BOSTON – A federal grand jury in Boston indicted a former Middlesex County Sheriff’s deputy today for allegedly threatening to burn down the Plymouth County Courthouse, to kill court security officers and “to get” current Middlesex County sheriff’s officers.
Joshua P. Ford, 42, of Kingston, Mass., was indicted on three counts of interstate transmission of a threatening communication. Ford is currently in state custody and will appear in U.S. District Court in Boston at a later date.
According to the indictment, Ford served as a deputy for the Middlesex County Sheriff’s Office between about 2009 and 2017. It is alleged that on March 13, 2023, Ford sent 12 emails to a total of about 140 people, almost all Massachusetts law enforcement officers. Each email allegedly contained the same text: stating “[there] is no more justice system anymore just WAR” and “I am calling on all able bodied officers my brothers in blue to suit up for a fight.” Ford then allegedly asked those law enforcement officers to arm themselves with firearms and armored vehicles and declared, “Tomorrow we burn down the Plymouth County Court house to the ground.”
It is further alleged that the emails included a link to a video Ford posted on YouTube and British video hosting service BitChute. According to the indictment, the video, titled, “War Has Been Declared F***’em All,” is an 11-minute recording of Ford in a kitchen, where he speaks directly to the camera. In the video, it is alleged that Ford’s principal assertion is that the justice system is corrupt, and makes various statements about police officers, correctional officers, court officers, a judge, a prosecutor, defense attorneys and others. Ford allegedly expressed particular contempt for Middlesex Sheriff’s officers, about whom he says, “And guess what? I’m f****** coming. I’m f****** coming, and hell’s f****** coming with me. I’m going to f****** get every last one of you mother*****s. I know where you work. And I am coming to get you.” Ford also allegedly threatened to “break the arms and legs of every court officer” and to “kill” court security officers working in the Plymouth County Courthouse. Ford also allegedly exhorted other law enforcement officers to assist him by bringing guns, gasoline, C-4, armored personnel carriers and SWAT teams to his confrontation, which he scheduled for 8:30 a.m. on March 14, 2023. Instead, local law enforcement arrested Ford on March 13, 2023 after the emails were sent.
The charges of interstate transmission of a threatening communication each provide for a sentence of up to five years in prison, three 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 and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Kingston Police Department and the Marshfield Police Department provided valuable assistance in the investigation. Assistant U.S. Attorney Amanda Beck of the National Security 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.
Former Plumas County Man Sentenced to 6 Years in Prison for Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — David J. Zappa, 71, of Sebastopol, was sentenced Tuesday to six years in prison to be followed by 10 years of supervised release for receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Feb. 5, 2015, law enforcement officers executed a search warrant at Zappa’s home and found that Zappa used peer-to-peer software to receive and share files over the BitTorrent network, and his computer was in the process of downloading four torrent files that contained child pornography. Overall, agents found thousands of images and approximately 200 videos of child pornography.
This case was the product of an investigation by the Federal Bureau of Investigation and the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Roger Yang prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Former North Shore Pizzeria Owner Sentenced to Two Years in Prison for COVID FraudRead the Press Release
BOSTON – A former North Shore resident was sentenced today in connection with filing fraudulent applications for more than $660,000 in Paycheck Protection Program (PPP) loan funds and using those funds for personal expenses, including the purchase of an alpaca farm in Vermont.
Dana L. McIntyre, 59, of Grafton, Vt. and previously of Beverly and Essex, Mass., was sentenced by U.S. District Court Judge Denise J. Casper to two years in prison and three years of supervised release. McIntyre was also ordered to pay $679,156 in restitution and forfeiture. On April 13, 2023, McIntyre pleaded guilty to four counts of wire fraud and three counts of money laundering.
“Make no mistake about it, this was no momentary lapse in the fog of the pandemic. Mr. McIntyre submitted multiple bogus applications for pandemic money was supposed to provide a lifeline to small businesses and their employees during a national emergency. He stole from the American taxpayers and the many small businesses which truly needed those loans to survive,” said Acting United States Attorney Joshua S. Levy. “Just last month our office expanded the resources dedicated to investigating and prosecuting COVID fraud. Whether someone used stolen money to buy luxury goods or fancy cars or exotic farm animals, we intend to find them and hold them accountable.
“Dana McIntyre capitalized on a national catastrophe and stole hundreds of thousands of dollars from a limited pool of money set aside to help struggling businesses, to buy a farm, stock it with alpacas, and make a fresh start for himself in Vermont,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s sentence holds him accountable for his selfish criminal conduct. The FBI will continue to aggressively pursue others like him who are using the money from this economic relief program to pad their own pockets. If you know of similar instances of fraud, please contact us at 1-800-CALL-FBI.”
“The funds made available through the Paycheck Protection Program were intended to help businesses and their employees get through the financial hardships caused by the COVID-19 pandemic. Instead, Mr. McIntyre’s greed betrayed the good intentions of the American taxpayer,” said Special Agent in Charge Christina Scaringi with the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG). “The sentencing today should serve as a reminder that if you defraud pandemic-related government assistance programs, you will be held accountable. HUD OIG will continue to work with its law enforcement partners and the U.S. Attorney’s Office to bring these matters to a just conclusion.”
McIntyre is the former owner of Rasta Pasta Pizzeria in Beverly. In March 2020, McIntyre used the names of his adult children to submit two fraudulent applications to the U.S. Small Business Administration (SBA) for Economic Injury Disaster Loans (EIDL) for businesses that did not exist. Beginning in April 2020, McIntyre submitted an application and weekly certifications in order to receive Pandemic Unemployment Assistance (PUA) benefits. In these filings, McIntyre falsely claimed that he was not working or receiving income as a result of the pandemic, while McIntyre in fact was still operating the restaurant and paying himself income from the business. By September 2020, when McIntyre sold the restaurant, he had received over $17,000 in PUA and related benefits that he was not entitled to receive.
In April 2020, McIntyre submitted a fraudulent application for a PPP loan of over $660,000 through an SBA-approved lender. In the application, McIntyre inflated information about the pizzeria’s employees and payroll expenses and falsified an official tax form in an effort to qualify the business for a larger loan amount. After receiving a PPP loan of over $660,000, McIntyre sold the pizzeria and used nearly all the funds to purchase a farm in Vermont, as well as eight alpacas, and other personal expenses, including two vehicles and airtime for his crypto-currency themed radio show.
Acting U.S. Attorney Levy, FBI SAC Cohen, HUG-OIG SAC Scaringi and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorneys David M. Holcomb and Mackenzie A. Queenin of the Securities, Financial & Cyber Fraud Unit and Carol Head, Chief of the Asset Recovery Unit, prosecuted 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.
Former Auburn Physician Pays $135,000 and Forfeits DEA Registration, for Overprescribing Controlled SubstancesRead the Press Release
SYRACUSE, NEW YORK – Dr. Jang Boo Chi, formerly a physician in Auburn, and his medical practice, Jang Boo Chi M.D. P.C., have agreed to pay the United States $135,000 in civil penalties for overprescribing opioids and other controlled substances in dangerous combinations. United States Attorney Carla B. Freedman, and Special Agent in Charge Frank A. Tarentino III, U.S. Drug Enforcement Administration (DEA), New York Division made the announcement.
The Settlement Agreement resolves allegations that Dr. Chi wrote prescriptions for non-legitimate medical purposes, outside the usual course of a professional practice, in violation of the Controlled Substances Act. Specifically, the United States alleges that Dr. Chi allowed patient desires to dictate his prescribing decisions instead of his own medical judgment; he prescribed opioids, benzodiazepines, and carisoprodol in a dangerous combination known as the “Holy Trinity”; and he ignored red flags that the controlled substances he prescribed were being diverted for illicit use. Examples of admitted conduct include:
- Dr. Chi prescribed Hydrocodone-Acetaminophen, Diazepam (also known as “Valium”), and Carisoprodol (a muscle relaxant known as “Soma”) to Patient #1, even though drug screens indicated the patient was not taking the prescribed medications, while using MDMA (also known as “Molly” or “Ecstasy”), cocaine, and unprescribed Oxycodone. Patient #1 eventually died of acute intoxication by the combined effects of controlled substances- both prescribed, and unprescribed.
- Dr. Chi prescribed Adderall for Patient #2, to treat Attention-Deficit/Hyperactivity Disorder (ADHD), but the medical records lack a sufficient basis to establish an ADHD diagnosis. At various times, Dr. Chi encouraged Patient #2 to decrease their use of Adderall and to not take it with certain other medication, however when they did not, he continued prescribing it.
- In Patient #3’s case, Dr. Chi prescribed Fentanyl patches, Oxycodone, Percocet, Lorazepam, Lyrica, and Zolpidem, among several other controlled substances. During a hospitalization in 2018, another doctor noted Patient #3 “has a problem with polypharmacy” as they were on more than 20 different medications and supplements. Dr. Chi noted Patient #3’s medications were “heavy,” and that “…I felt too [they] take much medication…” (sic.) Dr. Chi did not further reduce the patient’s medications until September 2021, after the DEA questioned his prescribing practices.
This $135,000 payment constitutes civil penalties under the Controlled Substances Act.
Dr. Chi has surrendered his DEA registration, and, as part of the civil settlement, agreed not to seek a renewal for at least 15 years.
This case was investigated by DEA Albany District Office’s Diversion Group, with assistance from the DHHS Office of Inspector General’s New York Region, the New York State Department of Health, Bureau of Narcotic Enforcement, and the Auburn Police Department.
Assistant U.S. Attorney Christopher Moran represented the United States in this matter.