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Tuesday 27 June 2023
Texas Man Sentenced to Twenty Months in Prison for Failure to Register as a Sex OffenderRead the Press Release
Springfield, Ill. – On June 26, 2023, a Texas man, Robert Niffen, 63, was sentenced to 20 months in prison and seven months of supervised release for failing to register as a sex offender in Illinois in violation of 18 U.S.C. §2250(a).
At Niffen’s sentencing hearing, U.S. District Court Judge Colleen Lawless found that Niffen absconded from the state of Texas, despite being on parole, and had failed to register or update his registration as a sex offender when he arrived in Pike County, Illinois. Niffen remained in Pike County doing odd jobs and staying with various people. Niffen is required to register as a sex offender as a result of his conviction for aggravated rape in 1981. Niffen previously spent 20 years in a Texas state prison and is required to register as a sex offender for life.
At the sentencing hearing, the government presented evidence that Niffen was arrested after approaching three female minors and offering them marijuana and the use of a hot tub. Local law enforcement was contacted, and Niffen initially presented a fictitious name before running away. Niffen was later caught and arrested. When he was arrested, he was in possession of a small amount of marijuana. Niffen has remained in the custody of the United Marshal since his arrest on June 13, 2022. He pleaded guilty on March 7, 2023.
The statutory penalties for failing to register as a sex offender pursuant to 18 U.S.C. § 2250(a) are up to ten years imprisonment, a minimum five-year term of supervised release up to life, and a fine of up to $250,000.
The Barry, Illinois Police Department and United States Marshals Service investigated the case. Assistant U.S. Attorney Sierra Senor-Moore represented the government in the prosecution.
The case against Niffen was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Texas Man Sentenced to over 2 Years in Federal Prison for Participation in Money Laundering ConspiracyRead the Press Release
Louisville, KY – A Texas man, who is a citizen of Ghana and the United Kingdom, was sentenced today after being convicted of conspiracy to commit money laundering.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge of Headquarters Operations John T. Perez of the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, and Acting Special Agent in Charge Travis Pickard of the Homeland Security Investigations Atlanta Field Office made the announcement.
According to court documents, Joshua Roberts, 32, participated in a scheme to conceal the source of proceeds of criminal activity. As part of the scheme, Roberts established a sham company to launder illicit funds from a Business Email Compromise scheme. Business Email Compromise is a sophisticated scam that targets both businesses and individuals who perform legitimate transfer-of-funds requests. The scam is frequently carried out when a subject compromises legitimate business or personal email accounts through social engineering or computer intrusion to conduct unauthorized transfers of funds.
Roberts was sentenced to 2 years and 3 months in federal prison followed by 3 years of supervised release. Roberts was also ordered to pay $831,996.84 in restitution. Roberts’ sentence of imprisonment will run concurrent to a sentence he is serving for related crimes in a case arising out of the Northern District of Georgia. There is no parole in the federal system.
On September 26, 2022, Peggy McDowell Brown, 69, of Elizabethtown, Kentucky, was sentenced to 2 years of probation for her role in the conspiracy. Brown was also ordered to pay $831,996.84 in restitution.
On October 21, 2022, Olajide Samuel Agbaniyaka, 33, of Atlanta, Georgia, was sentenced to 3 years and 1 month in federal prison, followed by 2 years of supervised release, for his role in the conspiracy. Agbaniyaka was also ordered to pay $1,117,000.54 in restitution.
The case was investigated by the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau and Homeland Security Investigations.
Assistant U.S. Attorney Corinne Keel prosecuted the case.
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Suburban Chicago Attorney Sentenced to More Than Three Years in Federal Prison for Bankruptcy FraudRead the Press Release
CHICAGO — A federal judge today sentenced a suburban Chicago attorney to more than three years in prison for fraudulently enabling her brother to conceal more than $357,000 from creditors and the trustee in his bankruptcy case.
JAN R. KOWALSKI was a licensed attorney when she engaged in the fraud scheme in 2018 with her brother, co-defendant ROBERT M. KOWALSKI. When Robert Kowalski filed for bankruptcy, he possessed hundreds of thousands of dollars in cashier’s checks payable to himself but which were the property of his bankruptcy estate. Jan Kowalski helped her brother conceal the cashier’s checks, as well as money orders and other checks, by depositing them into her attorney trust account (IOLTA). She then withdrew a portion of the funds in cash or for use in, among other things, real estate transactions for her brother’s benefit.
When the bankruptcy trustee discovered the IOLTA account activity, Jan Kowalski attempted to conceal the scheme by fabricating documents and making materially false statements to the U.S. Bankruptcy Court. The funds concealed through the fraud scheme have yet to be recovered.
Jan Kowalski, 59, of LaGrange, Ill., pleaded guilty last year to a federal charge of concealing assets from a bankruptcy trustee. In addition to the 37-month prison term, U.S. District Judge Virginia M. Kendall ordered Jan Kowalski to pay $357,492 in restitution.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Vincent R. Zehme, Special Agent-in-Charge of the Chicago Region of the FDIC’s Office of Inspector General; Machelle L. Jindra, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Andrea Peacock, Special Agent-in-Charge of the Department of the Treasury, Office of Inspector General; Deborah Witzburg, City of Chicago Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General. Valuable assistance was provided by the U.S. Trustee Program. The government was represented by Assistant U.S. Attorneys Michelle Petersen, Brian Netols, and Kristin Pinkston, and Special Assistant U.S. Attorney Jeffrey Snell.
A jury earlier this year convicted Robert Kowalski for his role in the bankruptcy fraud scheme with his sister, as well as additional embezzlement and tax fraud offenses. Evidence at Robert Kowalski’s trial revealed that Robert Kowalski was a close associate of John Gembara, the former President of Washington Federal Bank for Savings, and that Robert Kowalski played a key role in an embezzlement scheme at the bank. Washington Federal was based in Chicago’s Bridgeport neighborhood until it was closed in December 2017 after the Office of the Comptroller of the Currency determined that the bank was insolvent and had at least $66 million in nonperforming loans.
Robert Kowalski, of Chicago, is awaiting sentencing. Numerous other defendants, including several high-ranking former bank employees, were charged as part of the federal criminal investigation into the failure of Washington Federal.
Substance Use Recovery Center Agrees to Pay $300,000 to Resolve Alleged False Claims Act ViolationsRead the Press Release
LEXINGTON, Ky. — Recovery Services, LLC, a recovery center that provides outpatient alcohol and drug services in Louisville, Kentucky, agreed to pay $300,000 to resolve civil allegations that it violated the False Claims Act, a federal law that prohibits causing the submission of false or fraudulent claims to the federal government.
According to the settlement agreement, the United States alleged that Recovery Services, formerly known as Recovery Chestnut, billed Kentucky Medicaid for urine drug screens for patients who did not receive individualized medical assessments. Kentucky Medicaid only pays for urine drug screens that are individualized to each patient for their medical diagnosis or treatment. The United States also alleged that Recovery Services billed Kentucky Medicaid for urine drug screens for residential patients, despite only being licensed to provide outpatient services. Kentucky Medicaid does not pay for residential services, including urine drug screens, performed by outpatient providers.
The United States encourages anyone with information about the improper billing of urine drug testing, or about other potential fraud, abuse, or mismanagement of Medicare or Medicaid funds, to please call the U.S. Department of Health and Human Services’ hotline at 800-HHS-TIPS (800-447-8477).
The case against Recovery Services was investigated by the United States Attorney’s Office for the Eastern District of Kentucky; the U.S. Department of Health and Human Services, Office of Inspector General; and the Kentucky Attorney General’s Office of Medicaid Fraud and Abuse Control. Assistant United States Attorney Meghan Stubblebine represented the United States.
The settlement resolves claims alleged by the United States; there has been no determination of liability.
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St. Louis Man Accused of Firebombing HomeRead the Press Release
ST. LOUIS – A man from St. Louis, Missouri has been accused of using a Molotov cocktail to firebomb a St. Louis home last year.
Marcus Reece, 31, was indicted in April on one felony count of damaging or destroying a building by fire and one felony count of possession of an unregistered destructive device. He was arrested June 22 and on Tuesday ordered held in jail until trial.
The indictment accuses Reece of possession of a Molotov cocktail on March 19, 2022 and attempting to damage or destroy a home in the 3700 block of Minnesota Avenue on the same date. A motion seeking to detain Reece in jail says he threw Molotov cocktails at the victim’s home after a dispute over a parking space.
Reece pleaded not guilty June 22 to both charges. Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The damaging by fire charge is punishable by up to 5 years in prison and a $250,000 fine, or both, and the unregistered destructive device charge is punishable by up to 10 years in prison and a $10,000 fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis Metropolitan Police Department investigated the case. Assistant U.S. Attorney John Ware is prosecuting the case.
Springfield Man Sentenced for Drug DistributionRead the Press Release
BOSTON – A Springfield man was sentenced today for fentanyl distribution.
Christian Camacho, 25, was sentenced by U.S. District Court Judge Mark G. Mastroianni to six months in prison and three years of supervised release. In November 2022, Camacho pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl.
On or about March 30, 2022, in Hampden County, Camacho knowingly possessed 40 grams or more of fentanyl intended for distribution. Additionally, at the time of his arrest, Camacho was found in possession of more than 129 grams of fentanyl laced with heroin packaged for distribution in more than 8,000 bags as well as $14,282 cash.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration in New England; and Springfield Police Commissioner Cheryl Clapprood made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Levy’s Springfield Branch Office prosecuted the case.
Six Wolf Point residents sentenced to prison for roles in kidnapping, assault of girl on Fort Peck Indian ReservationRead the Press Release
GREAT FALLS — Six Wolf Point residents convicted in the kidnapping and assault of a girl on the Fort Peck Indian Reservation in 2021 were sentenced this month to prison terms for their roles in the attack, U.S. Attorney Jesse Laslovich said today.
All six of the defendants pleaded guilty earlier to kidnapping an individual under 18. All defendants initially faced a mandatory minimum of 20 years to life in prison, a $250,000 fine and five years to life of supervised release. At the time of their sentencing hearings, however, they were eligible for sentences below the mandatory minimum.
Chief U.S. District Judge Brian M. Morris presided.
“This case is every parent’s worst nightmare. A Native American girl was lured out of her home, beaten, kidnapped, and left for dead in an open field on the Fort Peck Indian Reservation,” U.S. Attorney Laslovich said. “Our office stands with the Missing and Murdered Indigenous Women’s movement, seeking to ensure that Native women and girls are protected and that perpetrators of crimes like these are held accountable. I would like to personally thank law enforcement and the Fort Peck community for their help and quick actions. Without their efforts, this case easily could have resulted in the senseless death of a child on the reservation.”
Today, the court sentenced Patti Jo Annunciata Mail, 23, the sixth and remaining defendant, to 42 months in prison, to be followed by five years of supervised release.
The government requested a sentence of 168 months for Mail. The sentencing guideline range for Mail was 87 months to 108 months.
Co-defendant Cheri Cruz Granbois, 21, was sentenced on June 15, and co-defendants Dylan Troy Jackson, 20; Elmarie Amelia Weeks, 22; Kaylee Jade Jackson 19; and Lavanchie Patricia Goodbird, 30, were sentenced on June 14.
The five co-defendants were sentenced as follows:
- Cheri Cruz Granbois was sentenced to 58 months in prison, to be followed by five years of supervised release. The government requested a sentence of 185 months in prison, which was within Granbois’ guideline range of 168 months to 210 months.
- Dylan Jackson was sentenced to 55 months in prison, to be followed by five years of supervised release. The government requested a sentence of 180 months in prison for Dylan Jackson, whose sentencing guideline range was 108 months to 135 months.
- Elmarie Amelia Weeks was sentenced to 49 months in prison, to be followed by five years of supervised release. The government requested a sentence of 170 months for Weeks, whose sentencing guideline range was 108 months to 135 months.
- Kaylee Jade Jackson was sentenced to 45 months in prison, to be followed by five years of supervised release. The government requested a sentence of 160 months in prison for Kaylee Jackson, whose sentencing guideline range was 87 months to 108 months in prison.
- Lavanchie Patricia Goodbird, 30, was sentenced to 41 months in prison, to be followed by five years of supervised release. The government requested a sentence of 140 months in prison for Goodbird, whose sentencing guideline range was 108 months to 135 months.
The government alleged in court documents that on Sept. 15, 2021, Granbois, seeking revenge on the victim, a 15-year-old identified as Jane Doe, recruited others to help him exact that end. Saying the victim had wronged him, Granbois paid Kaylee Jackson money to lure Jane Doe outside of her house in Wolf Point so she could be assaulted. That evening, after drinking, Goodbird drove the group to the victim’s house. When Jane Doe came out, the situation escalated. Some of the individuals in the group assaulted the victim in her front yard. When eyewitnesses yelled that they were going to call the police, some of individuals forced Jane Doe into the vehicle and drove her to a vacant field where the assault continued.
The government alleged that during the assault, Granbois directed others as to when and who could assault the victim and directed others to take items from Jane Doe, including a cell phone that could have been used to report the kidnapping. An eyewitness to the assault in the field described the victim screaming and then going silent. The eyewitness thought Jane Doe had been murdered. The victim suffered serious injuries.
Assistant U.S. Attorneys Ryan G. Weldon and Wendy A. Johnson prosecuted the case. The FBI, Fort Peck Law Enforcement, Roosevelt County Sheriff’s Office and Wolf Point Police Department conducted the investigation.
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Ringleader Sentenced in Immigration Scheme that Offered Fake MarriagesRead the Press Release
Huntsville, Ala. – A federal judge today sentenced a Huntsville man for conspiracy to commit marriage fraud and submit fraudulent immigration documents, announced U.S. Attorney Prim F. Escalona, Homeland Security Investigations Acting Special Agent in Charge Travis Pickard and United States Citizenship and Immigration Services District Director Denise M. Frazier.
U.S. District Court Judge Liles C. Burke sentenced Preston Olantunji Augustus, 73, to 27 months in prison. In March, Augustus pleaded guilty to one count of conspiracy to commit marriage fraud and submit fraudulent documents related to immigration status.
According to the plea agreement, Augustus operated a business, ISE-Interlink located in Huntsville, AL, which purported to provide placement for international students into professional programs to pursue university study or professional career placement. However, according to the indictment and the plea agreement, between November 2016 and August 2021, Augustus, and his co-conspirators Lucretia Bibbs, 44, of Huntsville and Shawnieque Wells, 29, of Huntsville and others participated in a scheme to recruit and pay United States citizens (USC) to engage in fraudulent marriages with non-United States Citizens (non-USC) so that the non-USC could obtain legal status in the United States and ultimately U.S. citizenship. The defendants also assisted with the preparation of documents to be submitted to the United States Citizenship and Immigration Services (USCIS) regarding the marriage, to include directing participants to fraudulently represent that they were residing together as spouses, when in fact, they did not reside together as spouses and had no intention of residing together.
HSI investigated the case along with the USCIS. Assistant U.S. Attorneys Russell E. Penfield and John M. Hundscheid prosecuted the case.
Redondo Beach Woman Found Guilty of Leading $24 Million Scam that Billed Medicare for Unnecessary Medical Equipment and RepairsRead the Press Release
LOS ANGELES – A South Bay woman was found guilty today of nearly two dozen felonies for billing Medicare more than $24 million by submitting fraudulent claims for medically unnecessary durable medical equipment – mostly power wheelchairs (PWC) – and PWC repairs, many of which were never performed.
Tamara Yvonne Motley, 54, a.k.a. “Tamara Ogembe,” of Redondo Beach, was found guilty by a federal jury of 20 counts of health care fraud, two counts of aggravated identity theft, and one count of conspiracy to commit money laundering.
Following the reading of the guilty verdicts, United States District Judge Stanley Blumenfeld Jr. remanded Motley into custody.
According to evidence presented at her five-day trial, from July 2006 to August 2014, Motley was the de facto owner of the Hawthorne-based Action Medical Equipment and Supplies. From January 2013 to November 2016, Motley was the de facto owner of the Ventura-based Kaja Medical Equipment & Supply. Both companies were enrolled with Medicare in the names of Motley’s out-of-state relatives.
Motley orchestrated a scheme in which she paid marketers for patient referrals and then directed them to take patients to corrupt physicians, who prescribed medically unnecessary durable medical equipment, such as PWCs, that Motley’s companies used to submit fraudulent bills to Medicare.
In January 2011, when Medicare changed the reimbursement rules for PWCs to make the upfront payments less lucrative to suppliers, Action switched to billing Medicare for PWC repairs, and continued that scheme at Kaja once Action was shut down. These repairs were not medically necessary because the patients did not need the PWCs to begin with, were not needed to make the PWCs serviceable in any event, and often simply were not performed. These repairs were expensive – often billed for $3000-$4000 – and accounted for nearly half of Action’s billings and almost all of Kaja’s.
Over an eight-year period, Action billed Medicare more than $18.2 million for DME – most for PWCs, but also for PWC accessories, knee braces and back braces – and the repair or replacement of PWCs. Medicare paid Action nearly $10.3 million.
Between July 2013 and November 2016, Kaja billed Medicare $6.3 million, primarily for PWC repairs. Medicare paid Kaja approximately $2.8 million for those claims.
Judge Blumenfeld scheduled an October 3 sentencing hearing, at which time Motley will face up to 10 years in federal prison for each health care fraud count, up to 20 years in federal prison for the money laundering conspiracy count, and a mandatory sentence of two years in federal prison consecutive to the other sentences for the aggravated identity theft counts.
Two other defendants have been convicted in this case:
- Cynthia Karina Marquez, 47, of Paramount, who worked as an office manager at both Action and Kaja, pleaded guilty in December 2019 to two counts of making false statements affecting a health care program. She received a time-served sentence, was placed on supervised release for three years, and was ordered to pay $9,886,646 in restitution.
- Juan Roberto Murillo, 46, of Montebello, who worked at both medical supply companies as a repair technician, pleaded guilty in November 2019 to one count of conspiracy to commit money laundering. He was sentenced to three years’ probation and was ordered to pay $2,504,119 in restitution.
The United States Department of Health and Human Services, Office of Inspector General; the FBI; and the California Department of Justice investigated this matter.
Assistant United States Attorneys Kristen A. Williams and David H. Chao of the Major Frauds Section are prosecuting this case.
Recording Artist Casanova Sentenced to 188 Months in Prison for Gang-Related Racketeering and Narcotics OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that recording artist CASWELL SENIOR, a/k/a “Casanova,” was sentenced today by U.S. District Judge Philip M. Halpern to 188 months in prison for racketeering and narcotics offenses arising out of his leadership role in the Untouchable Gorilla Stone Nation Bloods Gang (“Gorilla Stone”). As part of the racketeering conspiracy, SENIOR participated in a shooting in Florida on July 5, 2020, and a robbery in New York City on August 5, 2018, and conspired to traffic over 100 kilograms of marijuana.
U.S. Attorney Damian Williams said: “Caswell Senior is not just a notorious recording artist, but he is also a high-profile leader of a vicious street gang and a magnet for gang violence. At a crowded Miami house party, Senior personally fired a gun that seriously injured and could have killed a victim, inciting a shootout. Further, Senior’s stature in the community was central to Gorilla Stone’s successful recruitment and nationwide expansion. Today’s sentencing — along with the other significant sentences that have been imposed in this case — shows once again that gang life is not worth it and will lead to many years in prison.”
According to the Indictment, public court filings, and statements made in court:
Since at least 2004, Gorilla Stone has been a brutally violent street gang with a national presence that was founded by SENIOR’s co-defendant Dwight Reid, a/k/a “Dick Wolf.” Gorilla Stone has many members across New York State, including throughout New York City, Westchester, and the New York State Prison System, and all over the country — such as in Florida, where SENIOR engaged in substantial criminal conduct. Gorilla Stone is comprised of various sets (or “Caves,” as they are called by gang members). Gorilla Stone is a highly organized and efficient street gang with an organizational commitment to violence that strictly enforces its internal laws.
SENIOR’s Gorilla Stone co-defendants were charged with a host of crimes committed in furtherance of their joint enterprise. Some of the charges against Gorilla Stone members include racketeering conspiracy, various frauds, a large-scale narcotics conspiracy that SENIOR actively participated in, myriad firearms offenses, and numerous acts of violence, including a daytime murder of a juvenile in the middle of a Poughkeepsie street; multiple attempted murders and shootings, including two in Florida in which SENIOR was involved; a gunpoint drug-related robbery; and a brutal slashing.
For over a decade, SENIOR participated in and was associated with the Gorilla Stone racketeering conspiracy. SENIOR was a powerful, respected, high-profile member of the gang. SENIOR admitted that he was an organizer or leader of a criminal activity that involved five or more participants. SENIOR joined the gang while incarcerated over a decade ago and has remained an active member ever since, including upon his release from custody from a prior case in 2013.
As part of the racketeering activity, on or about July 5, 2020, while in Florida for a gang member’s birthday, SENIOR shot a gun at a gang member with whom he was having a gambling dispute, hitting one gang member in the leg/calf area and a second, different gang member in the foot when the bullet ricocheted. A victim suffered serious bodily injury because of the shooting and was treated at a Miami-area hospital for a gunshot wound to the foot. Thereafter, other party attendees, including a member of Gorilla Stone, discharged multiple firearms.
Additionally, as part of an August 5, 2018, robbery at a Manhattan diner that SENIOR participated in, a victim was restrained and suffered serious bodily injury. The robbery started when SENIOR appeared to believe that a female victim took a photo of him from the booth where the victim was sitting. SENIOR then proceeded to forcefully take the victim’s cellphone. SENIOR’s gang member associate then came up behind the victim and put her in a headlock until she fell to the floor unconscious from lack of oxygen.
SENIOR further agreed to traffic at least 100 kilograms of marijuana. During an approximately nine-month period, SENIOR was responsible for distributing between 100 kilograms and 400 kilograms of his personally branded “2x” marijuana.
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SENIOR, 36, of Montville, New Jersey, previously pled guilty on May 11, 2022, before Judge Halpern to one count of conspiring to conduct and participate in the conduct of the affairs of a criminal enterprise through a pattern of racketeering activity and one count of conspiring to distribute over 100 kilograms of marijuana. In addition to the prison term, SENIOR was sentenced to four years of supervised release and ordered to forfeit $50,000.
SENIOR is the 12th defendant in the Gorilla Stone case to have been sentenced. The 11 other defendants who have been sentenced by Judge Halpern are:
- DONAVAN GILLARD, a/k/a “Donnie Love,” who was sentenced to 248 months in prison;
- NAYA AUSTIN, a/k/a “Baby,” who was sentenced to 234 months in prison;
- JARRETT CRISLER, Jr., a/k/a “Jayecee,” who was sentenced to 207 months in prison;
- BRANDON NIEVES, a/k/a “Untouchable Dot,” who was sentenced to 110 months in prison;
- JAMAL TRENT, a/k/a “Trap Smoke,” who was sentenced to nine years in prison;
- DEZON WASHINGTON, a/k/a “Blakk,” who was sentenced to 97 months in prison;
- ROBERTA SLIGH, a/k/a “Trouble,” who was sentenced to eight years in prison;
- JORDAN INGRAM, a/k/a “Flow,” who was sentenced to eight years in prison;
- STEPHEN HUGH, a/k/a “Chino,” who was sentenced to seven years in prison;
- ISAIAH SANTOS, a/k/a “Zay,” who was sentenced to seven years in prison; and
- SHANAY OUTLAW, a/k/a “Easy,” who was sentenced to three years in prison.
Five additional defendants have pled guilty and are awaiting sentencing: DESHAWN THOMAS, a/k/a “Don,” AHMED WALKER, a/k/a “Ammo,” BRANDON SOTO, a/k/a “Stacks,” ROBERT WOODS, a/k/a “Blakk Rob,” and BRINAE THORNTON, a/k/a “Luxury.”
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation (“FBI”) Westchester County Safe Streets Task Force, which is comprised of special agents and task force officers from the FBI, U.S. Probation, New York State Police, New York State Department of Corrections and Community Supervision, New York City Police Department, Westchester County Police Department, Westchester County District Attorney’s Office, Putnam County Sheriff’s Office, Rockland District Attorney’s Office, and the Yonkers, New Rochelle, Mount Vernon, Greenburgh, White Plains, Peekskill, Ramapo, and Clarkstown Police Departments.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Shiva H. Logarajah, David R. Felton, and Courtney L. Heavey are in charge of the prosecution.
Readout of Assistant Attorney General Kristen Clarke’s Trip to South CarolinaRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division traveled to Columbia and Charleston, South Carolina on June 23 and June 24 to continue the division’s tour to engage with stakeholders in underserved communities and reaffirm the department’s commitment to protecting the civil rights of all Americans.
On Thursday, Assistant Attorney General Clarke and U.S. Attorney Adair Ford Boroughs for the District of South Carolina visited Turn 90, a non-profit organization in Columbia that is dedicated to assisting individuals who have been recently released from incarceration by providing life skills and job training to participants, including paid work in the organization’s screen-printing shop. They also toured the facility and spoke to program participants, who explained that Turn 90 provided a family-like atmosphere and described the programming as essential for preventing recidivism upon release from custody.
In the afternoon, she met with the staff of the U.S. Attorney’s Office for the District of South Carolina and thanked the office’s leadership and staff for their service and continued commitment to protecting the civil rights of all Americans.
Assistant Attorney General Clarke and U.S. Attorney Boroughs participated in a community conversation at Bible Way Church of Atlas Road in Columbia with over 40 community leaders and residents from across the state. During the meeting, community members raised concerns about local civil rights issues including education, disability rights, conditions of jails and prisons, and hate crimes and hate incidents.
In the evening, Assistant Attorney General Clarke spoke at the 2023 Emanuel Nine Humanitarian Awards program hosted by Mother Emanuel A.M.E. Church in Charleston to honor the nine individuals who tragically lost their lives on June 17, 2015 to white supremacist violence. During the event, nine honorees from the greater Charleston community were awarded for their work to embody the values of the Emanual Nine. Read her full remarks here.
On Friday, Assistant Attorney General Clarke attended the opening ceremony for the International African American Museum, which is dedicated to telling the story of the significant role that Charleston played in the international slave trade. According to some estimates, over 80 percent of all Black people in the United States can trace their lineage to slave ships that docked in Charleston. The museum’s exhibits document this history and highlights the contributions that these enslaved people and their ancestors provided to the United States. Federal, state, and local officials gave remarks during the ceremony, which also featured a number of musical and other artistic performances.
Assistant Attorney General Clarke concluded her visit to South Carolina with a tour by U.S. District Court Judge Richard Gergel of the “Four Corners of Justice,” a historic intersection in Charleston that is the site of several state and federal buildings, including the courtroom where Justice Thurgood Marshall argued Briggs v. Elliot. Briggs was one of the four cases consolidated with Brown v. Board of Education. While the plaintiff lost the Briggs case, the dissent from Judge Julius Waties Waring, after whom the federal courthouse is now named, influenced the Supreme Court’s ultimate holding striking down the “separate but equal” doctrine.
Ravenna CPA Sentenced for Embezzling More Than $1 Million from Employer and Submitting False Tax ReturnsRead the Press Release
CLEVELAND – Michael Harman, 46, of Ravenna, Ohio, was sentenced yesterday to 43 months in prison by U.S. District Judge Solomon Oliver, Jr. after Harman pleaded guilty to a six-count information that charged him with wire fraud, making and subscribing false tax returns, and money laundering. Harman was also ordered to pay restitution of $1,081,875.10 to the victim, Geis Company, and $227,638 to the IRS.
According to court documents, Harman was a Certified Public Accountant and was employed as a controller with his employer. As a controller, some of Harman’s responsibilities included processing payroll adjustments. From 2016 to August 2020, Harman devised a scheme to embezzle more than $1 million from his employer and used the funds for personal use, including child support payments in the State of New York and moving expenses. Harman executed the scheme by using a series of unauthorized wire transfers, fictitious checks, and fraudulent charges on his employer’s credit cards.
In addition, Harman failed to report income earned from the scheme on his tax returns for the tax years 2016, 2017, 2018, and 2019.
This case was investigated by the Cleveland FBI, Akron Resident Agency and IRS Criminal Investigation (CI). This case is being prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Aaron P. Howell.
Poway Man Hid Mother’s Death for 30 Years, Stole More than $800,000 in Government Benefits Intended for HerRead the Press Release
NEWS RELEASE SUMMARY – June 27, 2023
SAN DIEGO – Donald Felix Zampach of Poway pleaded guilty in federal court today to money laundering and social security fraud, admitting that he fraudulently concealed his mother’s death for decades and that he received and then laundered hundreds of thousands of dollars in government benefits intended for her, that should have ceased upon her death.
According to his plea agreement, Zampach’s mother died in Japan in 1990, and at the time of her death she was receiving a widow’s pension from the Social Security Administration and an annuity from the Department of Defense Finance Accounting Service. Just before his mother’s death, Zampach fraudulently conveyed her Poway home and filed for Chapter 7 personal bankruptcy, disclosing neither his ownership of the Poway home nor the government benefits payments he was receiving. After his mother’s death, Zampach maintained her bank accounts, forged her signature on certificates of eligibility to keep her government benefits in pay, and filed forged federal income tax returns, posing as his mother, for over two decades.
Zampach admitted that between November 1990 and September 2022, he received at least $830,238 in stolen public money intended for his mother. Zampach also admitted to using his mother’s identity to fraudulently open credit accounts with at least nine different financial institutions, causing them to suffer a loss of more than $28,000. Zampach admitted to laundering the stolen money to pay off the mortgage on his Poway home, in order to conceal both his ownership of the Poway home and the fact that the money he used constituted criminal proceeds of his fraud.
Under the terms of his plea agreement, Zampach has agreed to pay more than $830,000 in criminal forfeiture, including the forfeiture of his Poway home to make restitution for his crimes.
“This crime is believed to be the longest-running and largest fraud of its kind in this district,” said U.S. Attorney Randy Grossman. “This defendant didn’t just passively collect checks mailed to his deceased mother. This was an elaborate fraud spanning more than three decades that required aggressive action and deceit to maintain the ruse. He filed false income tax returns, posed as his mother and signed her name to many documents, and when investigators caught up to him, he continued to claim she was still alive. As a result of this fraud, he received more than $800,000 in stolen public money. For his deceit, he will face justice.” Grossman thanked the prosecution team and investigating agencies for their diligence.
“For more than three decades, Mr. Zampach failed to report the death of his mother to the Social Security Administration (SSA) and used more than $250,000 in benefits for himself,” said Gail S. Ennis, Inspector General for SSA. “We will continue to pursue and hold those accountable who defraud SSA. I want to thank the U.S. Attorney’s Office and Special Assistant U.S. Attorney Jeffrey D. Hill for prosecuting this case.”
“Mr. Zampach's guilty plea is an acknowledgement of his decades-long identity theft scheme in which he benefited financially from the theft of Department of Defense (DoD) and Social Security retirement benefits,” said DoD Inspector General Robert P. Storch. “The DoD Office of Inspector General, through the Defense Criminal Investigative Service, stands together with our law enforcement partners and the Department of Justice to hold accountable those who choose to engage in beneficiary fraud, particularly as it relates to the DoD.”
Zampach was released on bail pending his sentencing hearing, which is scheduled before U.S. District Judge Cathy Ann Bencivengo on September 20, 2023, at 9:00 a.m.
DEFENDANT Case Number 23cr1268-CAB
Donald Felix Zampach Age: 65 Poway, CA
SUMMARY OF CHARGES
Money Laundering – Title 18, U.S.C., Section 1956(a)(1)(B)(i)
Maximum penalty: Twenty years in prison and $500,000 fine
Social Security Fraud – Title 42, U.S.C. Section 408(a)(4)
Maximum penalty: Five years in prison and $250,000 fine
AGENCIES
Social Security Administration – Office of the Inspector General
Department of Defense – Office of the Inspector General – Defense Criminal Investigative Service
Pittsburgh Woman and Detroit Man Indicted on Fraud Conspiracy and Bank Fraud ChargesRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh and a resident of Detroit, Michigan, have been indicted by a federal grand jury in Pittsburgh on charges of Fraud Conspiracy and Bank Fraud, United States Attorney Eric G. Olshan announced today.
The ten-count Indictment named Matthew Lloyd Parker, Jr., age 36, of Detroit, MI, and Virginia R. Humphries, age 35, of Pittsburgh, PA.
According to Indictment, between March 2020 and August 2021, Parker and Humphries defrauded the Small Business Administration and lenders of over $14,000,000 million dollars in Paycheck Protection Program (PPP) loans. Parker, a licensed CPA from Detroit, Michigan, and Humphries, a credit repair specialist in Pittsburgh, recruited hundreds of small businesses in Pittsburgh and Detroit and falsified PPP loan applications of which the SBA approved 226 applications, resulting in loans totaling approximately $14.5 million to businesses, the largest known PPP fraud in the Western District of Pennsylvania.
The law provides for a maximum total sentence of 50 years in prison, a fine of $1,250,000 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 Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Services and Federal Bureau of Investigation 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.
Pineville Woman Indicted for Killing Unborn Child of Kidnapping VictimRead the Press Release
SPRINGFIELD, Mo. – A Pineville, Mo., woman who was previously indicted for the kidnapping and murder of a pregnant Arkansas woman now faces an additional charge of killing her victim’s unborn child.
Amber Waterman, 43, and her husband, Jamie Waterman, 43, were charged in a three-count superseding indictment returned by a federal grand jury in Springfield, Mo. Today’s superseding indictment replaces an indictment returned on Nov. 16, 2022, and includes an additional charge against Amber Waterman. The Watermans remain in federal custody.
Amber Waterman is charged with one count of kidnapping resulting in death. The indictment alleges that, between Oct. 31 and Nov. 2, 2022, Amber Waterman kidnapped Ashley Bush in order to claim her unborn child as her own. She allegedly transported Ashley Bush from Maysville, Arkansas, to Pineville. The indictment alleges the kidnapping resulted in Bush’s death.
Today’s superseding indictment also alleges, in a new count, that Amber Waterman thereby caused the death of a child in utero.
Jamie Waterman is charged with one count of being an accessory after the fact to kidnapping resulting in death. The indictment alleges that he assisted Amber Waterman, in order to hinder and prevent her apprehension, trial, and punishment, knowing she had committed the offense of kidnapping resulting in death.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Stephanie L. Wan and James J. Kelleher. It was investigated by the FBI, the Benton County, Ark., Sheriff’s Department, and the McDonald County, Mo., Sheriff’s Department in conjunction with the U.S. Attorney’s Office in the Western District of Arkansas and the Benton County, Ark., Prosecuting Attorney’s Office.
Pennsylvania Man Indicted for Meth Trafficking, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Pennsylvania man who was stopped on Interstate 44 with 80 pounds of methamphetamine in his vehicle was indicted by a federal grand jury today for drug trafficking and illegally possessing a firearm.
Devion K.J. Boykin, 26, was charged in a two-count indictment returned by a federal grand jury in Springfield. Today’s indictment replaces a federal criminal complaint that was filed against Boykin on May 30, 2023, and includes an additional firearms charge.
The federal indictment alleges that Boykin was in possession of methamphetamine with the intent to distribute on May 28, 2023. Boykin is also charged with possessing a firearm in furtherance of a drug-trafficking crime.
According to an affidavit filed in support of the original criminal complaint, Boykin was driving a silver 2022 Ford Explorer when he was stopped on Interstate 44 near the overpass of Missouri 37 by a Missouri State Highway Patrol trooper on May 28, 2023. Boykin, who was driving a vehicle that had been rented to another person, did not have a driver’s license.
When the trooper opened the rear cargo door of the Explorer, he saw a black Versace shopping bag that contained 10 quart-sized bags, each of which contained approximately a pound of methamphetamine. The trooper unzipped a suitcase and saw 70 quart-sized bags, each of which contained approximately a pound of methamphetamine. In total, the suitcase and shopping bag contained approximately 80 pounds of methamphetamine.
The indictment alleges that Boykin also was in possession of a Glock 9mm pistol on the day of the traffic stop.
Boykin told investigators he was traveling from Phoenix, Arizona, to Erie, Pennsylvania.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jessica R. Eatmon. It was investigated by the Missouri State Highway Patrol and the Drug Enforcement Administration.
Panama City Man on State Probation for Passing Counterfeit Federal Reserve Notes Pleads Guilty to Manufacturing Counterfeit Federal Reserve NotesRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Neal Evan Pollman (42, Panama City) has pleaded guilty to manufacturing counterfeit Federal Reserve notes. Pollman faces up to 20 years in federal prison and payment of restitution to the victims he defrauded. A sentencing date has not yet been set.
According to court documents and public records, in 2022, Pollman entered various businesses in Brevard, Clay, Duval, and Seminole counties and purchased gift cards, food, and merchandise using counterfeit Federal Reserve notes. Law enforcement subsequently determined that Pollman and his co-defendant, Lyndsey Rhea Markland (41, Panama City), were staying at a hotel in the City of Palm Bay. In November 2022, the Palm Bay Police Department (PBPD) executed a search warrant at their hotel room and located Markland inside the room. Also located in the room was approximately $30,000 in counterfeit currency and a printer, along with other tools used to manufacture counterfeit Federal Reserve notes. Shortly after the execution of the search warrant, the PBPD located Pollman in the vicinity of the hotel and arrested him. When the officers searched Pollman they recovered various counterfeit Federal Reserve notes on him which were traced back to his manufacturing activities. During a subsequent forensic examination of Pollman’s cellphone, law enforcement located images of Federal Reserve notes that Pollman used to manufacture the counterfeit currency.
Pollman and Markland appeared in federal court on April 27, 2023, pursuant to writs bringing them to Jacksonville from the Bay County Jail in Florida, where they are serving jail sentences for violating state probation on multiple charges related to passing counterfeit Federal Reserve notes. The Court ordered Pollman and Markland detained pending trial.
On June 8, 2023, Markland pleaded guilty to four counts of passing counterfeit Federal Reserve notes. She faces up to 20 years in federal prison on each count and payment of restitution to the victims she defrauded. Her sentencing is set for September 25, 2023.
This case was investigated by the Brevard County Sheriff’s Office, the Jacksonville Sheriff’s Office, the Palm Bay Police Department, the Orange Park Police Department, the Seminole County Sheriff’s Office, and the United States Secret Service - Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
New Milford Woman Sentenced to Federal Prison for Tax OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MELISSA PEZZOLO, 66, of New Milford, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 13 months of imprisonment, followed by three years of supervised release, for tax offenses.
According to court documents and statements made in court, for nearly 20 years, Pezzolo was employed as the office manager and bookkeeper for a nursery and landscaping services company in Bethel. Pezzolo was responsible for managing the company’s books and invoices, paying the company’s bills, and handling the company’s payroll and employment tax obligations. She also was responsible for coordinating with the company’s tax return preparer who prepared the yearly filed corporate tax returns.
Beginning in or before 2014 and continuing through 2018, Pezzolo willfully failed to file any employment tax returns (Forms 941) and failed to make any related payments of withholding taxes on behalf of the company. Nevertheless, she continued to distribute paychecks to employees that withheld employees’ income and FICA taxes. She accounted for the withholdings on the employees’ annual W-2 forms, which she continued to issue, though she did not provide the W-2 forms or pay the related withholding taxes to the IRS or the Social Security Administration. She also failed to pay the company’s own share of FICA taxes.
With respect to her own withholdings, Pezzolo neither withheld nor paid her withholding taxes to the IRS, nor issued herself any W-2 forms between approximately 2010 and 2018.
Pezzolo also has admitted that she stole more than $400,000 from her employer by giving herself raises that were not authorized and by paying personal expenses using the company’s corporate bank account and company credit card.
Judge Bolden ordered Pezzolo to pay to the IRS restitution of $1,329,314, which reflects $1,170,992 in unpaid company payroll taxes and $158,322 in unpaid personal income taxes for the 2014 through 2018 tax years.
On January 17, 2023, Pezzolo pleaded guilty to one count of willful failure to collect or pay over tax, and one count of tax evasion of assessment.
Pezzolo, who is released on bond, is required to report to prison on August 1.
This investigation was conducted by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorneys Elena L. Coronado and Christopher W. Schmeisser.
Moriarty Man Sentenced for Scheme to Defraud the United StatesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Milton Boutte was sentenced to two years in prison and ordered to pay $1,210,000 in restitution. A federal jury convicted Boutte, 77, of Moriarty, New Mexico, of conspiracy to defraud the United States and conspiracy to commit wire fraud on June 27, 2022.
Beginning in 2004, Boutte, who was then the Director of the Big Crow Program Office at Kirtland Air Force Base, conspired with others to pay lobbyists, consultants and contractors with funds fraudulently obtained from the United States. Boutte conspired with George Lowe, a lobbyist, and Joe Diaz and Arturo Vargas, owners of Miratek and Vartek, two minority-owned small businesses that had sole-source contracts with the Big Crow Program Office. The conspirators disguised the nature of the claims for lobbying services provided by Lowe as well as other unauthorized subcontracts and expenditures. The Big Crow Program Office was not authorized to lobby or to expend appropriated funds for lobbying activities under the contracts.
Over the course of the conspiracy, Miratek and Vartek received approximately $8.4 million from the government. Of that amount, Boutte required those small businesses to pay nearly $4.1 million to lobbyists, consultants and contractors that Boutte had retained. Of that sum, Miratek and Vartek diverted more than $900,000 to Lowe, and another government contractor paid Lowe an additional $300,000.
Boutte and his co-conspirators were charged in a 46-count indictment on Nov. 28, 2017, with conspiracy to defraud the United States with respect to claims, conspiracy to commit wire fraud, fraud against the United States, and false, fictitious or fraudulent claims. Lowe, Diaz, and Vargas each pleaded guilty previously. The four conspirators were ordered to pay more than $1.2 million in restitution, with Vargas to contribute up to $398,027, Diaz to contribute up to $910,000, and Lowe and Boutte liable for the full amount.
“The United States Attorney's Office is committed to protecting the integrity of our federal agencies and your tax dollars,” said U.S. Attorney Alexander M.M. Uballez. “I want to thank the dedicated investigators and prosecutors who worked on this case. Their hard work and dedication led to these convictions and sentences."
“The sentencing should serve as a stark reminder that our agents, and those of our partner law enforcement agencies, are relentless in their pursuit of those who choose to defraud the government,” said Special Agent-in-Charge L. Scott Moreland, of the Department of the Department of the Army Criminal Investigation Division’s Major Procurement Fraud Field Office.
The case was investigated by the Department of the Army Criminal Investigation Division Major Procurement Fraud Field Office, Defense Criminal Investigations Services, Defense Contract Audit Agency – Investigative Support, U.S. Small Business Administration Office – Office of Inspector General, and General Services Administration – Office of Inspector General. Assistant U.S. Attorneys Timothy S. Vasquez and Jeremy Peña are prosecuting the case.
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Moriarty Man Sentenced for Scheme to Defraud the United StatesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Milton Boutte was sentenced to two years in prison and ordered to pay $1,210,000 in restitution. A federal jury convicted Boutte, 77, of Moriarty, New Mexico, of conspiracy to defraud the United States and conspiracy to commit wire fraud on June 27, 2022.
Beginning in 2004, Boutte, who was then the Director of the Big Crow Program Office at Kirtland Air Force Base, conspired with others to pay lobbyists, consultants and contractors with funds fraudulently obtained from the United States. Boutte conspired with George Lowe, a lobbyist, and Joe Diaz and Arturo Vargas, owners of Miratek and Vartek, two minority-owned small businesses that had sole-source contracts with the Big Crow Program Office. The conspirators disguised the nature of the claims for lobbying services provided by Lowe as well as other unauthorized subcontracts and expenditures. The Big Crow Program Office was not authorized to lobby or to expend appropriated funds for lobbying activities under the contracts.
Over the course of the conspiracy, Miratek and Vartek received approximately $8.4 million from the government. Of that amount, Boutte required those small businesses to pay nearly $4.1 million to lobbyists, consultants and contractors that Boutte had retained. Of that sum, Miratek and Vartek diverted more than $900,000 to Lowe, and another government contractor paid Lowe an additional $300,000.
Boutte and his co-conspirators were charged in a 46-count indictment on Nov. 28, 2017, with conspiracy to defraud the United States with respect to claims, conspiracy to commit wire fraud, fraud against the United States, and false, fictitious or fraudulent claims. Lowe, Diaz, and Vargas each pleaded guilty previously. The four conspirators were ordered to pay more than $1.2 million in restitution, with Vargas to contribute up to $398,027, Diaz to contribute up to $910,000, and Lowe and Boutte liable for the full amount.
“The United States Attorney's Office is committed to protecting the integrity of our federal agencies and your tax dollars,” said U.S. Attorney Alexander M.M. Uballez. “I want to thank the dedicated investigators and prosecutors who worked on this case. Their hard work and dedication led to these convictions and sentences."
“The sentencing should serve as a stark reminder that our agents, and those of our partner law enforcement agencies, are relentless in their pursuit of those who choose to defraud the government,” said Special Agent-in-Charge L. Scott Moreland, of the Department of the Department of the Army Criminal Investigation Division’s Major Procurement Fraud Field Office.
The case was investigated by the Department of the Army Criminal Investigation Division Major Procurement Fraud Field Office, Defense Criminal Investigations Services, Defense Contract Audit Agency – Investigative Support, U.S. Small Business Administration Office – Office of Inspector General, and General Services Administration – Office of Inspector General. Assistant U.S. Attorneys Timothy S. Vasquez and Jeremy Peña are prosecuting the case.
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Montana Man Sentenced for Trafficking Golden Eagle FeathersRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Hardin, Montana, man convicted of three counts of violating the Bald and Golden Eagle Protection Act. The sentencing took place on June 26, 2023.
Harvey Hugs, age 59, was sentenced to three years in federal prison, followed by one year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $300. Hugs was also ordered to pay $70,000 in restitution for the 14 juvenile eagles that he killed.
Hugs was indicted by a federal grand jury in May of 2022. He was found guilty following a jury trial on February 14, 2023.
The Bald and Golden Eagle Protection Act makes it a crime for anyone to take, sell, purchase, and barter, bald and golden eagles and any parts and feathers of eagles. In February of 2020, Montana authorities received information that Hugs, who had been convicted of trafficking in eagles in 2012, was again involved in trafficking golden eagle feathers. Between August 20, 2020, and November 3, 2020, law enforcement utilized recorded phone calls and text messages in which Hugs offered to sell various eagle feathers. On two separate occasions, Hugs knowingly sold golden eagle tails for several hundred dollars each. On a third occasion, Hugs sold a set of golden eagle wings and a gold eagle tail for $1,000. For each sale Hugs mailed the golden eagle feathers to South Dakota and requested that the payment be wired to him, under his daughter’s name, in Montana.
A search warrant was executed at Hugs’ Montana home on March 3, 2021, where multiple items, including several eagle tails and wings, were seized. The U.S. Fish and Wildlife Forensics Lab in Ashland, Oregon was able to determine that items seized from Hugs’ home genetically matched items Hugs sold and shipped to South Dakota during this case. In total, 14 juvenile eagles were genetically identified from the items seized.
This case was investigated by the U.S. Fish and Wildlife Service and the Montana Game and Fish Department. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Hugs was immediately remanded to the custody of the U.S. Marshals Service.
Missouri Husband and Wife Admit Possessing Child PornographyRead the Press Release
ST. LOUIS – A married couple from Jefferson County, Missouri on Tuesday pleaded guilty to federal charges and admitted possessing and sharing child pornography with each other.
David John Dohrman, 52, and Jacquelin Michelle Dohrman, 48, each pleaded guilty in front of U.S. District Judge Catherine D. Perry to a felony charge of possession of child pornography.
The investigation began when David Dohrman sent a video containing child sexual abuse material to his wife on Oct. 1, 2020, resulting in a tip from Facebook to the National Center for Missing and Exploited Children. A St. Louis County Police Department detective followed up and obtained a court-approved search warrant for the Dohrman’s home. David Dohrman admitted sending the video to his wife and admitted searching for and downloading child pornography, his plea agreement says. Investigators uncovered child pornography on cell phones belonging to the couple, as well as chats containing more child pornography and a discussion of a young girl they’d seen in a restaurant.
The Dohrmans are scheduled to be sentenced October 5. The charge is punishable by up to 20 years in prison and a $250,000 fine, or both.
The St. Louis County Police Department, the Jefferson County Sheriff’s Office and the FBI investigated the case. Assistant U.S. Attorney Jillian Anderson is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Mescalero Man Pleads Guilty to Assault on Federal OfficerRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Jeremy Daniel Dennis pled guilty to assault on a federal officer in Indian Country. Dennis, 43, of Mescalero, and an enrolled member of the Mescalero Apache Tribe, will remain in custody pending sentencing, which has not been scheduled.
According to court documents, on Dec. 25, 2022, Dennis assaulted a BIA Officer conducting a welfare check on him by hitting and kicking the officer, wrestling the officer to the ground, and rubbing pepper spray in the officer’s face. The incident occurred in Otero County, New Mexico, within the bounds of the Mescalero Apache Reservation.
At sentencing, Dennis faces up to 8 years in prison followed by 3 years of supervised release.
The Las Cruces Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Bureau of Indian Affairs. Assistant United States Attorney Eliot Neal is prosecuting the case.
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Mescalero Man Pleads Guilty to AssaultRead the Press Release
of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Dennett Jerome Chee pled guilty to assault resulting in serious bodily injury in Indian Country. Chee, 37, of Mescalero. and an enrolled member of the Mescalero Apache Tribe, will remain in custody pending sentencing, which has not been scheduled.
A federal grand jury indicted Chee on Jan. 10. According to the indictment and other court records, in May of 2022, Chee assaulted a victim, identified as John Doe, in Otero County, New Mexico, on the Mescalero Apache reservation. The assault resulted in serious bodily injury to John Doe.
At sentencing, Chee faces up to 10 years in prison.
The FBI and the Bureau of Indian Affairs investigated this case. Assistant United States Attorney Eliot Neal is prosecuting the case.
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Merrillville Man Sentenced to 102 in PrisonRead the Press Release
SOUTH BEND – Phillip Carter, Jr., 32 years old, of Merrillville, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to aiding and abetting the making of false statements to acquire firearms, announced United States Attorney Clifford D. Johnson.
Carter was sentenced to 102 months in prison followed by 2 years of supervised release.
According to documents in the case, in April 2021, Carter provided another individual money to purchase two pistols for him from a federally licensed firearms dealer. As a convicted felon, Carter was unable to purchase firearms himself and he knew that the other individual would have to lie in order to purchase the pistols for him. During the investigation, it was determined that Carter had another individual buy up to 24 firearms for him. Carter’s prior felony convictions, which include being a felon in possession of a firearm and discharging a firearm, prohibit him purchasing and possessing the firearms in this case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the LaPorte County Drug Task Force and the Michigan City Police Department. This case was prosecuted by Assistant United States Attorneys Kimberly L. Schultz and Jerome W. McKeever.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Luzerne County Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
According to United States Attorney Gerard M. Karam, Read admitted to conspiring with other individuals to distribute between 40 grams and 160 grams of fentanyl in the Luzerne County area between 2019 and 2020. Read was indicted by a grand jury in August 2020 for fentanyl trafficking.
The case was investigated by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Kingston Police Department, the Luzerne County Drug Task Force, and the Pennsylvania State Police. Assistant United States Attorney Robert J. O’Hara 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.
Under federal law, the offense carries a mandatory minimum sentence of five years in prison, a maximum sentence of up to forty years in prison, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Lenoir, N.C. Felon Is Sentenced to 15 Years for Illegal Firearm Possession and Drug ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Jeremy David Greene, 47, of Lenoir, N.C., was ordered to serve 15 years in prison followed by five years of supervised release for possession of a firearm by a felon and possession with intent to distribute methamphetamine.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Sheriff Alan C. Jones, of the Caldwell County Sheriff’s Office, join U.S. Attorney King in making today’s announcement.
According to information in court documents and today’s sentencing hearing, , in April 2022, law enforcement received information that Greene was selling large amounts of methamphetamine in Caldwell County. Greene also had outstanding arrest warrants for state law violations. On April 14, 2023, law enforcement located Greene driving his vehicle in Lenoir. Court records show that law enforcement officers attempted to conduct a traffic stop of Greene’s vehicle, but Greene ignored law enforcement and sped away. Law enforcement deployed stop sticks, successfully stopping Greene’s vehicle, and Greene was arrested shortly thereafter.
According to court records, law enforcement searched Greene’s vehicle and seized more than 500 grams of methamphetamine, a 9mm pistol, 36 rounds of ammunition, and over $11,900 in cash. Greene has prior felony convictions, including Assault with a Deadly Weapon on Law Enforcement, and he is prohibited from possessing a firearm or ammunition.
Greene is currently in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King commended the ATF and the Caldwell County Sheriff’s Office for their investigation of the case and thanked the Caldwell County District Attorney’s Office for their invaluable assistance and coordination.
Special Assistant U.S. Attorney (SAUSA) William Wiseman of the U.S. Attorney’s Office in Charlotte prosecuted the case. Mr. Wiseman is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Mr. Wiseman is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 26th Prosecutorial District and the United States Attorney’s Office.
Las Vegas Felon Sentenced to Nearly 12 Years in Prison for Possession of Child Sexual Abuse MaterialRead the Press Release
LAS VEGAS – A Las Vegas man who was serving his prison sentence for a prior conviction for possession of child pornography was sentenced today by United States District Judge Anne R. Traum to 140 months in prison followed by 10 years of supervised release for possession of child sexual abuse material.
Ronald William Dougherty (52) pleaded guilty on March 30, 2023, to one count of possession of child pornography. In addition to imprisonment, under the Sex Offender Registration and Notification Act, Dougherty must register as a sex offender after completion of his prison term.
According to court documents, on January 7, 2015, Dougherty was convicted of possession of child pornography, and he was permitted to complete his sentence at the Las Vegas Community Corrections Center. Staff at the residential re-entry center located an iPhone belonging to Dougherty. A forensic search of the iPhone found 179 images and 35 videos of child sexual abuse material, including depictions of children as young as toddlers. Dougherty also admitted to distributing child sexual abuse material using his personal email address.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The FBI and Las Vegas Metropolitan Police Department investigated the case. Assistant United States Attorney Supriya Prasad 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 U.S. Attorney’s Offices and the Department of Justice’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 1-800-THE-LOST (1-800-843-5678) or online at www.cybertipline.org.
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Jackson Woman Pleads Guilty to Conspiracy to Commit Bank FraudRead the Press Release
Jackson, Miss. – A Jackson woman pleaded guilty to conspiracy to commit bank fraud, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge David Denton of Homeland Security Investigations.
According to court documents, Latasha Wise, 36, conspired with two other individuals to obtain bank loans through fraudulent means. Wise used social security numbers that did not belong to her to obtain bank loans.
Wise is scheduled to be sentenced on September 26, 2023 and faces a maximum penalty of 30 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Madison Police Department and the HSI are investigating the case.
Assistant U.S. Attorney Charles W. Kirkham is prosecuting the case.
Injured Workers Pharmacy to Pay $10 Million to Resolve Allegations of Improper Dispensing and Submitting False ClaimsRead the Press Release
BOSTON – Injured Workers Pharmacy (IWP) – which has been one of the largest purchasers of opioids in the United States, among pharmacies – has agreed to pay $10 million to resolve allegations that it violated the Controlled Substances Act by improperly filling prescriptions for controlled substances, including opioids, and submitting false claims for payment to the Department of Labor. In addition, IWP will also enter into a five-year corrective action plan with the Drug Enforcement Administration (DEA).
As part of the settlement agreement, IWP admitted that between 2014 and 2019 it failed to adequately address prescriptions with “red flags,” including high doses of opioids, early refills and dangerous drug combinations, before dispensing them to injured workers. “Red flags” indicate prescriptions that may not have been issued for a legitimate medical purpose, such as abuse or diversion. IWP previously settled a parallel investigation by the Massachusetts Attorney General into its dispensing practices.
The settlement also concerns IWP’s claims for payment submitted to the Department of Labor, which administers the federal workers’ compensation program. In 2017, in an effort to curb opioid abuse among injured federal workers, the Department of Labor began reviewing claims and flagged concerning prescriptions – a process called a Drug Utilization Review (DUR). Before paying claims flagged for a DUR, the Department of Labor requires pharmacies to represent that a pharmacist or the prescribing medical professional addressed the concerns raised by the DUR. As part of the settlement, IWP admitted that, between 2017 and 2019, IWP’s claims employees routinely represented to the Department of Labor that IWP consulted with prescribers about DURs when, in fact, IWP did not consult with those prescribers. Instead, claims employees, who lacked clinical pharmacy experience and training, submitted codes representing “prescriber consulted” without consulting IWP pharmacists or prescribers.
Under the terms of the settlement, over the next five years, DEA is allowed to conduct unannounced inspections of IWP without Administrative Inspection Warrants. The DEA monitors pharmacy prescribing practices to ensure compliance with federal law. Pharmacies found in violation face escalating penalties including revocation of their DEA Registration number – the authorization that allows them to write prescriptions for controlled substances.
To address issues uncovered in the investigation, IWP made improvements in its pharmacy practices. For example, the company developed additional procedures to review high-risk prescribing; increased training for all employees; eliminated production quotas for pharmacists and staff; implemented a drug diversion team to implement, establish and maintain diversion controls throughout the pharmacy; and established protocols to reduce losses of prescriptions shipped through the mail. The company also retained additional personnel to address high-risk prescribing, including a new chief compliance officer and a pain management specialty pharmacist. Prior to the settlement, IWP stopped dispensing prescriptions through the Department of Labor’s workers compensation program.
“Last week brought disturbing reports that opioid overdose deaths only increased last year in Massachusetts. Pharmacies are on the front lines of the prescription pill and opioid epidemic devastating our communities,” said Acting United States Attorney Joshua S. Levy. “Pharmacies that distribute dangerous prescription pills have a solemn responsibility to comply with measures enacted to curb abuse and addiction. Prosecutors in our office in the Civil and Criminal Divisions are working every day to fight the scourge of opioids, whether it is prosecuting traffickers, holding pharmacies and manufacturers accountable, or ensuring access to treatment for substance use disorder. We will not relent in our effort to protect the people of Massachusetts from these dangerous drugs.”
“The DEA is committed to ensuring that all registrants are in compliance with the required regulations, which are enforceable through the Controlled Substances Act,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “Failure to do so increases the potential for diversion and jeopardizes public health and public safety. DEA pledges to work with our law enforcement and regulatory partners to ensure these rules and regulations are followed.”
“Injured Workers Pharmacy (IWP) enriched themselves by submitting false claims to the U.S. Department of Labor (DOL) between December 12, 2017, and September 26, 2019. We will continue to work with our law enforcement partners and the Office of Workers’ Compensation Programs to protect the integrity of the DOL’s benefit programs,” said Jonathan Mellone, Special Agent-in-Charge, Northeast Region, U.S. Department of Labor Office of Inspector General.
“This settlement allows the OWCP to recover medical bill payments under the Federal Employees’ Compensation Act and return these funds to the Employees’ Compensation Fund,” said Office of Workers’ Compensation Director Christopher J. Godfrey. “It also shows the commitment of the Department of Labor to ensuring that program funds are used as the law requires, and the benefits of having the department’s Office of the Inspector General devote significant investigative resources to detecting cases of possible abuse within the FECA program.”
Acting U.S. Attorney Levy, DEA SAC Boyle, DOL-OIG SAC Mellone and OWCP Director Godfrey made the announcement today. Assistant U.S. Attorneys Brian M. LaMacchia and Jessica J. Weber of Levy’s Affirmative Civil Enforcement Unit handled the matter.
US v. Injured Workers Pharmacy - Settlement AgreementIndictment Charges Puerto Rico Woman with Trafficking Cocaine into ConnecticutRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations (HSI), New England, today announced that KARINA CINTRON SANTIAGO, 24, of San Juan, Puerto Rico, had been charged with trafficking 12 kilograms of cocaine into Connecticut.
As alleged in court documents and statements made in court, on June 4, 2023, a search of a luggage bag that Cintron Santiago checked prior to boarding a JetBlue flight from San Juan Airport to Bradley International Airport in Windsor Locks, Connecticut, revealed approximately 12 kilograms of cocaine. When Cintron Santiago arrived in Connecticut and discovered that her bag was not at baggage claim, she reported it lost. JetBlue personnel informed Cintron Santiago that when her bag was located they would deliver it to her, but she indicated that she would rather pick it up at the airport. On June 7, undercover investigators posing as JetBlue personnel contacted Cintron Santiago to inform her that her bag had been located and would be arriving on a flight to Bradley International Airport the next day.
On June 8, 2023, investigators placed Cintron Santiago’s bag, which contained its original contents, on a luggage carousel at Bradley International Airport. Cintron Santiago was arrested after she arrived at the airport and removed her bag from the luggage carousel.
On June 20, 2023, a grand jury in New Haven returned an indictment charging Cintron Santiago with possession with intent to distribute cocaine. Cintron Santiago, who had been detained since her arrest, appeared yesterday before U.S. Magistrate Judge Robert A. Richardson in Hartford, entered a plea of not guilty to the charge, and was released on a $75,000 bond.
The charge of possession with intent to distribute cocaine carries a maximum term of imprisonment of 20 years. U.S. Attorney Avery stressed that an indictment is not evidence of guilt. A charge is only an allegation, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations (HSI) with the assistance of the Transportation Security Administration (TSA), U.S. Customs and Border Protection, and the Puerto Rico Police Bureau. The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Indictment Charges Alleged Members of Drug Trafficking Organization in Drug, Gun and Money Laundering ChargesRead the Press Release
Kennedy Street Crew (KDY) Operated Open-Air Drug Markets in Kennedy Street Neighborhood, Scene of Increasing Violence, in Northwest Washington D.C.
WASHINGTON – This morning, law enforcement agents from the Metropolitan Police Department (MPD), Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigation (FBI), and the Internal Revenue Service Criminal Investigation (IRS-CI) arrested 12 alleged members of a violent drug trafficking organization (“DTO”), known as the “Kennedy Street Crew,” or “KDY,” on charges including conspiracy to commit drug trafficking, possession of firearms in furtherance of drug trafficking, possession of firearms by persons convicted of a crime, assault with a deadly weapon, and conspiracy to commit money laundering. In addition to the arrests, law enforcement seized multiple firearms and drugs.
The case was announced by U.S. Attorney Matthew M. Graves, Interim Chief Ashan Benedict of the Metropolitan Police Department, DEA Special Agent in Charge Jarod Forget, of the Washington Division, ATF Special Agent in Charge Craig Kailimai, of the Washington Division, FBI Acting Special Agent in Charge Sarah Linden, of the Washington Field Office’s Criminal and Cyber Division, and IRS-Criminal Investigation Acting Special Agent in Charge Kareem A. Carter, of the Washington, D.C. Office.
According to the indictment, KDY members operated open-air drug markets in and around the 100-1200 blocks of Kennedy Street in Northwest Washington, D.C., as well as the surrounding streets. The named defendants are charged with conspiring to distribute several controlled substances, including fentanyl, cocaine base and marijuana, and utilizing firearms, including fully automatic weapons, to enforce and protect the crew’s territory, including through intimidation and acts of violence. The indictment further alleges that KDY crew members conspired to establish shell companies through which they launder the proceeds of their drug trafficking. Over the course of the investigation, law enforcement seized more than 40 firearms (including eight suspected machineguns).
“As alleged in the Indictment, the Kennedy Street Crew (KDY) operated over an 11-block stretch, trafficking in large amounts of drugs and firearms and possessing numerous firearms in furtherance of its operations,” said U.S. Attorney Graves. “Criminal organizations like this are a magnet for violence. My office, MPD, and our federal law enforcement partners are focused on identifying and rooting out these types of operations: whether it be Fentanyl poisonings or the violence that typically accompanies large-scale drug operations, these distribution networks present a substantial threat to our community.”
“These individuals were a part of a criminal enterprise that existed to disrupt the community through violence and illegal activity, and today’s operation is evidence that intelligence-led policing and effective criminal justice partnerships can lead to positive outcomes in the District of Columbia,” said MPD Interim Chief Benedict. “The residents and businesses along our Kennedy Street corridor are safer because of the meticulous investigative efforts by law enforcement who relentlessly protect every city neighborhood.”
“Our strong partnership with state and local law enforcement agencies allows us to hold violent gang members like these accountable for their actions,” said DEA Special Agent in Charge Forget. “Ultimately, our goal is to ensure the safety of the families in our local area. As part of our initiative Operation Overdrive, we are making a difference in our communities, reducing drug poisonings, cutting violent crime, and stopping violent drug traffickers in their tracks.”
In addition to conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl, 100 kilograms or more of marijuana, and a mixture and substance containing a detectable amount of cocaine base, the indictment also charges various alleged members of the conspiracy with, among other charges, assault with a dangerous weapon; using, carrying, and possessing a firearm and/or machinegun during a drug trafficking offense; engaging in the business of dealing in firearms without a license; unlawful possession of a firearm by a person convicted of a crime; possession of a firearm with an obliterated serial number; and conspiracy to commit money laundering. The indictment also includes a forfeiture allegation seeking all proceeds of the alleged crimes. A full list of defendants, along with their corresponding charges, is contained below.
“This investigation is the result of multiple law enforcement entities working cohesively towards one common goal. That goal is disrupting criminal organizations and protecting our communities from firearms related violence, and the illegal distribution of narcotics,” said ATF Special Agent in Charge Kailimai. “As seen by our combined efforts with our law enforcement partners and the U.S. Attorney’s Office, this collaboration has led to the arrest of many individuals that continuously and carelessly disrupt the peace that we should all enjoy. ATF will continue to partner with our local, state, and federal partners to ensure that people who violate conditions of firearm ownership be prosecuted and held accountable for their actions.”
“IRS-CI is proud to stand with our law enforcement partners to announce this indictment. The dismantling of the Kennedy Street Crew exemplifies our commitment to improve the quality of life in our community and our relentless fight against drug trafficking organizations,” said Acting IRS-CI Special Agent in Charge Carter. “IRS-CI is specially equipped to follow the complex financial trail left by criminals, and we are dedicated to holding those accountable for crimes committed.”
The investigation of this case had the sponsorship and support of the federal Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF specializes in the investigation and prosecution of drug trafficking and money laundering organizations and related criminal enterprises.
This case is being investigated by the Metropolitan Police Department, the DEA’s Washington Division, ATF’s Washington Field Division, with assistance from FBI’s Washington Field Office, and the IRS-Criminal Investigation Washington, D.C. Office. It is being prosecuted by Assistant U.S. Attorneys Matthew W. Kinskey and Sitara Witanachchi, of the of the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office for the District of Columbia. Valuable assistance was provided by former Special Assistant United States Attorney Brian Lynch.
DEFENDANTS
NAME
AGE
CHARGES
Kenneth Ademola Olugbenga
27
Conspiracy to Distribute and Possess with Intent to Distribute 100 Kilograms or More of Marijuana, a Mixture and Substance Containing a Detectable Amount of Fentanyl, and a Mixture and Substance Containing a Detectable Amount of Cocaine Base;
Unlawful Possession with Intent to Distribute Marijuana;
Using, Carrying, and Possessing a Firearm During a Drug Trafficking Offense;
Unlawful Possession of a Firearm by a Person Convicted of a Crime Punishable by Imprisonment Exceeding One Year;
Conspiracy to Commit Money Laundering
Khali Ahmed Brown, also known as “Migo Lee”
22
Conspiracy to Distribute and Possess with Intent to Distribute 100 Kilograms or More of Marijuana, and 400 Grams or More of Fentanyl;
Assault with a Dangerous Weapon and Aiding and Abetting;
Possession with Intent to Distribute Fentanyl;
Possession with Intent to Distribute Marijuana;
Using, Carrying, and Possessing a Machinegun During a Drug Trafficking Offense;
Unlawful Possession of a Machinegun; Possession of a Firearm with an Obliterated Serial Number
Miasiah Jamal Brown, also known as “Michael Jamal Crawford”
21
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, and a Mixture and Substance Containing a Detectable Amount of Cocaine Base;
Using, Carrying, and Possessing a Firearm in Furtherance of a Drug Trafficking Offense
Tristan Miles Ware, also known as “Greedy”
23
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana;
Possession with Intent to Distribute Marijuana;
Unlawful Possession of a Firearm by a Person Convicted of a Crime Punishable by Imprisonment Exceeding One Year;
Using, Carrying, and Possessing a Firearm During a Drug Trafficking
Offense
Herman Eric-Bibmin Signou, also known as “Herman Signour”
23
Conspiracy to Distribute and Possess with Intent to Distribute One Hundred Kilograms of More of Marijuana
Cameron Xavier Reid
26
Conspiracy to Distribute and Possess with Intent to Distribute One Hundred Kilograms of More of Marijuana
Aaron Deandre Mercer, also known as “Curby,”
27
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, 400 Grams or More of Fentanyl, and a Mixture and Substance Containing a Detectable Amount of Cocaine
Base;
Unlawful Possession with Intent to Distribute 40 Grams or More of Fentanyl
David Penn, also known as “Turtle”
30
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, 40 Grams or Fentanyl, and a Mixture and Substance Containing a Detectable Amount of Cocaine
Base;
Unlawful Possession with Intent to Distribute 40 Grams or More of Fentanyl;
Unlawful Possession with Intent to Distribute Marijuana;
Using, Carrying, and Possessing a Machinegun in Furtherance of a Drug Trafficking Offense;
Using, Carrying, and Possessing a Firearm in Furtherance of a Drug Trafficking Offense;
Engaging in the Business of Dealing in Firearms without a License;
Unlawful Possession of a Firearm by a Person Convicted of a Crime Punishable by Imprisonment for a Term Exceeding One Year
Ronald Lynn Dorsey, also known as “Ron G”
29
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana and a Mixture and Substance
Containing a Detectable Amount of Cocaine Base;
Conspiracy to Commit Money Laundering
Antonio Reginald Bailey, also known as “Boy Boy,” also known as “Fellow King”
22
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana
Anthony Trayon Bailey, also known as “Fat Ant,” also known as “Bizzle”
27
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana
Angel Enrique Suncar, also known as “Coqui”
29
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana and a Mixture and Substance Containing Fentanyl
Defendant Cameron Reid is from Falmouth, VA; all remaining defendants are from Washington, D.C.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Idaho Business Owner Sentenced to Probation for Criminal Clean Air Act Violation Involving Asbestos ContaminationRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Alexander Borys Mischenko, age 76, of Priest River, Idaho, was sentenced to three years of probation and a fine of $12,060 for criminal violation of the Clean Air Act in connection with asbestos contamination at a site in Spokane in 2018. Senior District Judge Rosanna Malouf Peterson announced the sentence.
According to the plea agreement and other information disclosed during court proceedings, in October 2017, Mischenko and his company, Buck Creek Sales, signed a contract to dismantle a legacy industrial building located on Magnesium Road in North Spokane and known as “Building 5.” Mischenko’s contract included funding to commission an asbestos survey to determine whether and to what extent Building 5 contained asbestos.
Asbestos is a naturally-occurring mineral that, due to its insulating and fire-resistant properties, was a commonly-used material in buildings constructed prior to 1980, such as Building 5. Because inhalation of asbestos fibers has been linked to various dangerous lung conditions, including mesothelioma, asbestosis, and lung cancer, asbestos-containing material is regulated by the Environmental Protection Agency (EPA) and, in Spokane County, by the Spokane Regional Clean Air Agency (SRCAA).
According to court documents and information discussed in court, in late 2017, a certified asbestos inspector did perform an asbestos survey of Building 5. The survey showed significant quantities of asbestos-containing material in Building 5, including approximately 2,600 linear feet of asbestos-containing material known as thermal systems insulation (TSI). The survey noted that the asbestos-containing TSI was “friable” (that is, easily crumbled with hand pressure), and, therefore, “will require removal by a licensed asbestos contractor prior to any renovation or demolition activity that would directly impact these materials.” Mischenko was provided a copy of the survey report on or about December 4, 2017.
Subsequent to receiving the survey results, Mischenko, who was not a licensed asbestos contractor, and at least one employee, cut the asbestos-containing TSI off of the pipe and disposed of the pipe. Mischenko then placed the asbestos-containing TSI into 14 unsealed sacks and one open-top wooden crate, and moved the sacks and the crate to a nearby building, where they remained until they were found by inspectors from SRCAA and, later, EPA. Mischenko did not notify SRCAA or EPA prior to engaging in the work, which, due to the work methods employed by Mischenko, released significant quantities of asbestos fibers into the air as well as scattered on the floor of Building 5.
In September 2022, U.S. Attorney Waldref, who previously served as Trial Attorney with DOJ’s Environment and Natural Resources Division and an environmental law professor at Gonzaga University’s School of Law, was selected to lead the Environmental Justice & Environmental Issues Subcommittee for the Attorney General’s Advisory Committee. As the subcommittee chair, U.S. Attorney Waldref plays a key role in leading and coordinating DOJ’s criminal and civil environmental enforcement efforts.
“Environmental Justice is a critical public health priority,” said U.S. Attorney Waldref. “When businesses or individuals cut corners to save money, and fail to take seriously the public health risk posed by dangerous contaminants like asbestos, the entire community is harmed, but the harm falls disproportionately on marginalized and disadvantaged members of our community who are more likely to be affected and less likely to have access to health care and other services.”
“The defendant was responsible for the safe – and legal – removal of material containing asbestos,” said Acting Special Agent in Charge Benjamin Carr of EPA’s criminal enforcement program in Washington. “The defendant has been sentenced for doing just the opposite and put workers and the general public at risk.”
Senior District Judge Peterson sentenced Mischenko to 3 years of federal probation, during which time he will be supervised by the court and is prohibited from engaging in, performing, or supervising any asbestos-related work as well as other salvage work. Judge Peterson also imposed a $12,060 fine to ensure that Mischenko did not financially profit from his misconduct.
“I commend the exceptional work by SRCAA in uncovering this dangerous situation and quickly working to protect our community, as well as the stellar investigative work by EPA’s Criminal Investigation Division,” continued U.S. Attorney Waldref. “We will continue to work with our state and federal law enforcement partners to protect public health and our precious natural resources.”
This case was investigated by EPA’s Criminal Investigation Division. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene and Special Assistant United States Attorney Gwendolyn Russell prosecuted this case on behalf of the United States.
Case No. 2:20-CR-00175-RMP
Huntington Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – TJ Jazz Cremeans, 21, of Huntington, pleaded guilty today to theft of firearms from a federal firearms licensee.
According to court documents and statements made in court, on July 15, 2022, Cremeans and Brennon Michael Adkins, 22, broke into Tri-State Pawn and Jewelry in Huntington to steal various electronics from the store’s inventory. Cremeans admitted that he stole three firearms during the breaking and entering: a DPMS model AR-15 5.56mm rifle, a Savage Arms model 111 .30-06-caliber rifle, and a Stoeger model M3000 12-gauge shotgun.
Cremeans is scheduled to be sentenced on October 10, 2023, and faces a maximum penalty of 10 years in prison, up to three years of supervised release, and a $250,000 fine.
Adkins pleaded guilty to possession of a stolen firearm on May 1, 2023, and admitted that he possessed the Stoeger model M3000 12-gauge shotgun following the breaking and entering. Adkins is scheduled to be sentenced on August 14, 2023.
Nigel Jamille Coats, 19, of Huntington, pleaded guilty to possession of a stolen firearm on June 20, 2023, and admitted that he possessed the DPMS, model AR-15 5.56mm rifle shortly after the breaking and entering and theft was completed. Coats is scheduled to be sentenced on September 25, 2023.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Troy D. Adams is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-202.
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Houstonian imprisoned for distributing kilos of meth for Gulf CartelRead the Press Release
HOUSTON – A 61-year-old U.S. citizen has been ordered to federal prison following his conviction for conspiracy to distribute kilos of crystal meth, announced U.S. Attorney Alamdar S. Hamdani.
Carlos Rodriguez-Gayton pleaded guilty Nov. 8, 2022.
Today, U.S. District Judge David Hittner sentenced Rodriguez-Gayton to a total of 168 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the defense asked for a lower sentence based, in part, on their position he held a minor role in the conspiracy. However, the court noted that working in concert with a cartel to conduct four drug deals of a kilogram or more is not minor.
Rodriguez-Gayton’s arrest and ultimate conviction stems from an investigation into individuals affiliated with the Gulf Cartel operating in Houston.
From October 2020 through January 2021, Rodriguez-Gayton sold approximately three kilos of crystal meth over the course of multiple transactions that occurred in Houston. The investigation further revealed that on Jan. 21, 2021, another individual purchased an additional two kilos of crystal meth from Rodriguez-Gayton.
Law enforcement was able to take all drugs into their possession before they could hit the streets of Houston.
Rodriguez-Gayton has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, FBI, Houston Police Department, Harris County Precinct 5 Constable’s Office and the Harris County Sheriff’s Office conducted this investigation as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative. Assistant U.S. Attorney Shelley J. Sullivan prosecuted the case.
These such cooperative matters provide for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the DEA Strike Force is to identify and prosecute all members of narcotics trafficking organizations. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Harrisburg Man and Woman Charged with Conspiring to Steal Cell Phone ShipmentsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Parmod Kumar, age 40, and Reecha Saini, age 36, both of Harrisburg, Pennsylvania, were charged yesterday in an information with conspiring to steal interstate shipments of cell phones.
According to United States Attorney Gerard M. Karam, the information alleges that from 2018 to 2021, Kumar and Saini enlisted at least one employee at a UPS facility in Harrisburg to steal packages that they believed contained smartphones. Kumar and Saini then paid the employee for the phones and arranged for their sale at a convenience store in Harrisburg. The conspiracy involved the theft of phones with a total value of over $142,000.
The case was investigated by Homeland Security Investigations and the Swatara Township Police Department. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
The maximum penalty under federal law for this offense is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Harlem man admits assault crime for drive-by shooting of residence on Fort Belknap Indian reservationRead the Press Release
GREAT FALLS — A Harlem man accused of shooting an occupied house in Fort Belknap Agency on the Fort Belknap Indian Reservation admitted to an assault crime today, U.S. Attorney Jesse Laslovich said.
Tyree Daniel Doney, 21, pleaded guilty to assault with a dangerous weapon. Doney 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. Sentencing was set for Oct. 15. Doney was released pending further proceedings.
In court documents, the government alleged that on Jan. 19, a man, identified as John Doe, was inside his residence with his family, including two children. John Doe heard multiple gunshots, and one bullet lodged inside his residence. John Doe feared that he or his family would be harmed from the drive-by shooting. Law enforcement learned that Doney was in the area at the time of the shooting, and Doney ultimately admitted to firing the gunshots into John Doe’s home. Doney did so, in part, because Doney was upset about a physical fight he had with John Doe four months prior. Officers recovered 9mm casings outside John Doe’s residence, 9mm casings inside Doney’s vehicle and the 9mm firearm inside Doney’s residence.
Assistant U.S. Attorney Ryan G. Weldon is prosecuting the case. The FBI conducted the investigation.
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Grass Valley Man Sentenced to 10 Years in Prison for a Fentanyl Trafficking Conspiracy and other Narcotics OffensesRead the Press Release
SACRAMENTO, Calif. — Nathaniel Opondo Hubbert, 42, of Grass Valley, was sentenced today to 10 years in prison for conspiring to possess and distribute fentanyl, possession with intent to distribute fentanyl, and possession with intent to distribute heroin and methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in June 2020, Hubbert conspired with Steven Lawrence Robinson, 36, of Granite Bay, and others, to possess and distribute fentanyl in Placer County. A search of Robinson’s residence on June 2, 2020, resulted in the discovery of over 40 grams of fentanyl involved in this conspiracy. On June 24, 2020, a probation search of two hotel rooms Hubbert had rented, and a subsequent booking search of his person, resulted in the discovery of methamphetamine, heroin, and additional fentanyl. Robinson and Hubbert were connected to at least one overdose of a victim who had to be given medical treatment after using drugs purchased from Hubbert.
On March 26, 2021, Robinson was sentenced to five years in prison for his role in the fentanyl trafficking conspiracy.
This case was the product of an investigation by the Drug Enforcement Administration, the Lincoln Police Department, the Placer County District Attorney’s Office, the Placer County Sheriff’s Office, and the Roseville Police Department. Assistant U.S. Attorney Adrian T. Kinsella prosecuted the case.
Gloucester City Business Owner Sentenced to 30 Months in Prison for Payroll Tax Fraud and Pandemic Loan FraudRead the Press Release
CAMDEN, N.J. – The owner of a business in Gloucester City, New Jersey, was sentenced today to 30 months in prison for failing to pay over payroll taxes to the IRS, failing to file personal income tax returns, and fraudulently obtaining a Paycheck Protection Program (PPP) loan, U.S. Attorney Philip R. Sellinger announced.
John Degan, 69, of Philadelphia, Pennsylvania, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of failing to collect, account for, and pay over payroll taxes, one count of failure to file income tax returns with the IRS, and one count of bank fraud. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Degan was the owner and operator of Companion Services Group Inc., a building maintenance and restoration service company in Gloucester City. Companion provided architectural maintenance and restoration services, which includes restroom maintenance, glass restoration, and graffiti removal.
Degan admitted that for tax years 2016 through 2020, he willfully failed to file payroll tax returns and failed to pay over $600,629 in withheld employment taxes on behalf of his employees. Degan attempted to conceal from the IRS over $4.4 million in wages that he paid to himself and his employees by not filing and submitting Forms W-2 or Form W-3 to the Social Security Administration (SSA).
Degan admitted that he received a yearly salary that ranged from $140,000 to $170,000 from Companion, willfully failed to file his federal income tax returns for tax years 2016 through 2020, and has not filed a tax return since 2003. He also failed to file the corporate tax returns for Companion, a business that generated more than $1.4 million in gross receipts yearly.
Degan also submitted a fraudulent application to a lender to obtain a PPP loan. In April 2020, Degan submitted a PPP application for Companion in which he falsely represented to the lender that Companion had employees and payroll expenses. In further support of his application, Degan submitted various IRS Forms to establish that he was paying compensation to his employees. Those forms were never actually submitted to the IRS; instead, they were false forms that were only created and used for the purpose of securing the loan.
Based on Degan’s misrepresentations, the lender approved the PPP loan and disbursed $193,407 in federal COVID-19 emergency relief funds.
In addition to the prison term, Judge Kugler sentenced Degan to three years of supervised release. Restitution will be determined at a later date.
U.S. Attorney Sellinger credited special agents of the IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark, with the investigation leading to today’s sentencing.
The government is represented by Jason M. Richardson, Attorney in Charge of the U.S. Attorney’s Office in Camden.
Gardena Woman Sentenced to 2 Years in Federal Prison for Throwing Molotov Cocktail Inside Torrance Bank BranchRead the Press Release
LOS ANGELES – A South Bay woman was sentenced today to 24 months in federal prison for throwing a Molotov cocktail inside a bank in Torrance after having a dispute with the branch manager.
Teranee Millet, 35, of Gardena, was sentenced by United States District Judge Stanley Blumenfeld Jr.
Millet pleaded guilty on March 21 to unlawful possession of a firearm and destructive device.
On September 20, 2021, Millet entered a Bank of America branch in Torrance. She spoke to the bank manager and demanded to be helped by another teller because she believed she had been waiting in line for too long.
When the bank manager informed her that no other tellers were available and she would have to continue waiting, Millet used profane language and then yelled, “I’m going to blow this bitch up!” In response, the bank manager called 911 and informed law enforcement of Millet’s comments.
A few minutes later, Millet returned to the bank branch and threw a Molotov cocktail into the bank, causing a fire in the middle of the bank. A bank customer successfully extinguished the fire. On her way out of the bank’s parking lot and before law enforcement arrived, she threatened another customer and threw a glass bottle at the customer’s truck, causing minor damage to the vehicle. Police responded within a few minutes, secured the scene and recovered the item that Millet threw on the floor.
Law enforcement used bank surveillance photos to help identify Millet.
Millet was arrested in Georgia in December 2021, after she led law enforcement on a chase in a stolen U-Haul van that ended with the van crashing, according to court documents. Inside the van, law enforcement recovered a gym bag containing four packs of glass bottles with tissue paper inserted inside the bottles, a can of lighter fluid and a five-gallon can of gasoline, according to court documents. Millet sustained injuries in the crash and later received medical treatment. She has been in custody since that time.
The FBI, the Torrance Police Department, and the Torrance Fire Department investigated this matter.
Assistant United States Attorney Kellye Ng of the Violent and Organized Crime Section prosecuted this case.
Four More Arrested as Tractor-Trailer Smuggling Investigation ProgressesRead the Press Release
SAN ANTONIO – Four Mexican nationals were arrested Monday in San Antonio, Houston and Marshall, Texas, for their alleged connection to the 2022 tractor-trailer smuggling incident, which resulted in the death of 53 and injury of 11 undocumented noncitizens.
A superseding indictment returned by a San Antonio Grand Jury on June 7, alleges that Riley Covarrubias-Ponce aka Rrili aka Rilay, 30; Felipe Orduna-Torres aka Cholo aka Chuequito/Chuekito aka Negro, 28; Luis Alberto Rivera-Leal aka Cowboy, 37; and Armando Gonzales-Ortega aka El Don aka Don Gon, 53, participated in a human smuggling organization (HSO) which illegally brought adults and children from Guatemala, Honduras and Mexico into the United States between December 2021 and June 2022. The superseding indictment alleges that the smugglers worked in concert to transport and facilitate the transportation of the migrants, sharing routes, guides, stash houses, trucks, trailers, and transporters in order to consolidate costs, minimize risks, and maximize profit. The HSO maintained a variety of tractors and trailers for their smuggling operations, some of which were stored at a private parking lot in San Antonio.
The indictment alleges that in the days leading up to June 27, 2022, Covarrubias-Ponce, Orduna-Torres, and others exchanged the names of undocumented noncitizens who would be smuggled in an upcoming tractor-trailer load. The four new defendants charged in the superseding indictment allegedly orchestrated the retrieval of an empty tractor-trailer and its corresponding hand-off to the driver on June 27. The driver, Homero Zamorano, Jr. of Elkhart, Texas, was previously charged in a July 2022 indictment along with Christian Martinez, of Palestine, Texas. Orduna-Torres allegedly provided the Laredo address at which Zamorano loaded the migrants into the tractor trailer. The indictment also alleges that Gonzalez-Ortega traveled to Laredo to meet the tractor-trailer, where at least 66 undocumented individuals, including eight children and one pregnant woman, were loaded for smuggling. According to the superseding indictment, Martinez, Covarrubias-Ponce, Orduna-Torres, Rivera-Leal, and Gonzales-Ortega then coordinated, facilitated, passed messages, and made each other aware of the tractor-trailer’s progress.
The superseding indictment alleges that some of the defendants were aware that the trailer’s air-conditioning unit was malfunctioning and would not blow any cool air to the migrants inside. When members of the organization met the tractor-trailer at the end of its approximately three-hour journey to San Antonio, they opened the doors to find 48 of the migrants were either already dead or had died on site, including the pregnant woman. 16 of the undocumented individuals were transported to hospitals—five of whom died.
Each defendant is charged with one count of conspiracy to transport illegal aliens resulting in death; one count of conspiracy to transport of illegal aliens resulting in serious bodily injury and placing lives in jeopardy; one count of transportation of illegal aliens resulting in death; and one count of transportation of illegal aliens resulting in serious bodily injury and placing lives in jeopardy. If convicted, they each face a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“Human smugglers prey on migrants’ hope for a better life – but their only priority is profit,” said Attorney General Merrick B. Garland. “Tragically, 53 people who had been loaded into a tractor-trailer in Texas and endured hours of unimaginable cruelty lost their lives because of this heartless scheme. Human smugglers who put peoples’ lives at risk for profit and break our laws cannot hide for long: We will find you and bring you to justice.”
“One year ago today, an unthinkable crime perpetrated by human smugglers at our southern border caused the death of 53 human beings,” said Deputy Attorney General Lisa O. Monaco. “But today’s arrests demonstrate that those who seek to profit from desperation will be brought to justice. Working with international partners, the Department of Justice is striking back at international organized crime and sending a clear message that there is no safe haven for trafficking in firearms, deadly narcotics, or human beings.”
“The allegations in the indictment are horrifying,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Dozens of desperate, vulnerable men, women and children put their trust in smugglers who abandoned them in a locked trailer to perish in the merciless south Texas summer. Thanks to our law enforcement partners at the local, state, and federal levels—with Homeland Security Investigations San Antonio Division leading the investigation—we are one step closer to delivering justice for those migrants and their families.”
“This horrific tragedy underscores the callous disregard criminal smuggling organizations have for human life, including the lives of children,” said Assistant Attorney General Kenneth A. Polite, Jr. for the Justice Department’s Criminal Division. “These indictments and arrests are another step forward in obtaining justice and accountability for these senseless deaths. Joint Task Force Alpha will remain steadfast in its efforts to thwart these deadly schemes driven by greed at the expense of safety and security.”
“These additional arrests are a result of the hard work and determination displayed by our agents and prosecutors in their efforts to identify those who were responsible for deadliest human smuggling event in U.S. history,” said Special Agent in Charge Craig Larrabee for the Homeland Security Investigations San Antonio Division. “HSI will continue investigating all leads to ensure that justice will be served for the deceased, the injured, and their families. We will remain committed to leveraging our broad range of authorities to dismantle all transnational criminal organizations engaged in human smuggling around the globe.”
HSI is investigating the case with the assistance of the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and has received tremendous support from Customs and Border Protection; Border Patrol; Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations; the San Antonio Police Department; the Bexar County Sheriff’s Office; the San Antonio Fire Department; the Marshall Police Department; and the Palestine Police Department.
Assistant U.S. Attorneys Eric Fuchs, Sarah Spears and Amanda Brown are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
These charges resulted from the coordinated efforts of Joint Task Force Alpha (JTFA). The U.S. Attorney’s Office for the Western District of Texas is part of the JTFA, which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime. JTFA consists of federal prosecutors and attorneys from U.S. Attorneys’ Offices along the Southwest Border (District of Arizona, Southern District of California, Southern District of Texas, and Western District of Texas), from the Criminal Division and the Civil Rights Division, along with law enforcement agents and analysts from DHS’s Immigration and Customs Enforcement, and Customs and Border Protection’s U.S. Border Patrol, the FBI and the Drug Enforcement Administration.
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Four Arrested for Tractor-Trailer Smuggling Incident that Resulted in 53 DeathsRead the Press Release
Four Mexican nationals were arrested yesterday in San Antonio, Houston, and Marshall, Texas, for their alleged roles in a tractor-trailer smuggling incident that resulted in 53 deceased and 11 injured undocumented individuals one year ago today.
“Human smugglers prey on migrants’ hope for a better life – but their only priority is profit,” said Attorney General Merrick B. Garland. “Tragically, 53 people who had been loaded into a tractor-trailer in Texas and endured hours of unimaginable cruelty lost their lives because of this heartless scheme. Human smugglers who put people’s lives at risk for profit and break our laws cannot hide for long: We will find you and bring you to justice.”
“Today’s announcement is another important step in our unprecedented effort against smugglers,” said Secretary of Homeland Security Alejandro N. Mayorkas. “These indictments are the direct result of a whole of government effort to prevent these horrific crimes and is the largest campaign of its kind in U.S. history. Human smugglers will do anything to turn a profit, and the Department of Homeland Security (DHS) will continue to do everything possible to stop them. I am grateful for the leadership of our Homeland Security Investigation (HSI) team and U.S. Customs and Border Protection for seeking justice for the 53 lives lost last year.”
These charges resulted from the coordinated efforts of Joint Task Force Alpha (JTFA), which Attorney General Garland established in June 2021 in partnership with Secretary Mayorkas, to strengthen the departments’ overall efforts to combat these crimes based on the rise in prolific and dangerous smuggling emanating from Central America and impacting our border communities. JTFA enhances U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras.
According to court documents, between December 2021 and June 2022, Riley Covarrubias-Ponce, aka Rrili, aka Rilay, 30; Felipe Orduna-Torres, aka Cholo, aka Chuequito/Chuekito, aka Negro, 28; Luis Alberto Rivera-Leal, aka Cowboy, 37; and Armando Gonzales-Ortega, aka El Don, aka Don Gon, 53, are alleged to have participated in a human smuggling organization which illegally brought adults and children from Guatemala, Honduras, and Mexico into the United States. The alleged smugglers worked in concert to transport the migrants by sharing routes, guides, stash houses, trucks, trailers, and transporters to consolidate costs, minimize risks, and maximize profit. The organization maintained a variety of tractors and trailers for their smuggling operations, some of which were stored at a private parking lot in San Antonio.
“One year ago today, an unthinkable crime perpetrated by human smugglers at our southern border caused the death of 53 human beings,” said Deputy Attorney General Lisa O. Monaco. “But today’s arrests demonstrate that those who seek to profit from desperation will be brought to justice. Working with international partners, the Department of Justice is striking back at international organized crime and sending a clear message that there is no safe haven for trafficking in firearms, deadly narcotics, or human beings.”
“This horrific tragedy underscores the callous disregard criminal smuggling organizations have for human life, including the lives of children,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “These indictments and arrests are another step forward in obtaining justice and accountability for these senseless deaths. Joint Task Force Alpha will remain steadfast in its efforts to thwart these deadly schemes driven by greed at the expense of safety and security.”
The indictment alleges that in the days leading up to June 27, 2022, Covarrubias-Ponce, Orduna-Torres, and others exchanged the names of undocumented individuals who would be smuggled in a tractor-trailer. The four new defendants charged in the superseding indictment allegedly orchestrated the retrieval of an empty tractor-trailer and its corresponding hand-off to the driver on June 27. The driver, Homero Zamorano Jr. of Elkhart, Texas, was previously charged in a July 2022 indictment along with Christian Martinez, of Palestine, Texas. Orduna-Torres allegedly provided the Laredo, Texas, address at which Zamorano loaded the migrants onto the tractor trailer. The indictment also alleges that Gonzalez-Ortega traveled to Laredo to meet the tractor-trailer, where at least 66 undocumented individuals, including eight children and one pregnant woman, were loaded into the back to be smuggled. Martinez, Covarrubias-Ponce, Orduna-Torres, Rivera-Leal, and Gonzales-Ortega then allegedly coordinated, facilitated, passed messages, and kept each other updated on the tractor-trailer’s progress.
“The allegations in the indictment are horrifying,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Dozens of desperate, vulnerable men, women, and children put their trust in smugglers who abandoned them in a locked trailer to perish in the merciless south Texas summer. Thanks to our law enforcement partners at the local, state, and federal levels – with the Homeland Security Investigations San Antonio Division leading the investigation – we are one step closer to delivering justice for those migrants and their families.”
Some of the defendants charged were allegedly aware that the trailer’s air-conditioning unit was malfunctioning and would not blow any cool air to the migrants inside. When members of the organization met the tractor-trailer at the end of its nearly three-hour journey to San Antonio, they opened the doors to find 48 of the migrants, including the pregnant woman, were already dead. Sixteen of the undocumented individuals were transported to hospitals, and five of them died there.
“One year ago today, HSI responded to a mass casualty human smuggling event that occurred in San Antonio, which resulted in the death of 53 undocumented noncitizens from Mexico, Guatemala, and Honduras,” said Senior Official Performing the Duties of Deputy Director PJ Lechleitner of Immigration and Customs Enforcement (ICE). “The indictments announced today emphasize that we will work tirelessly to bring to justice those who are responsible for this horrible tragedy. HSI continues investigative efforts with Joint Task Force Alpha and international partners to dismantle smuggling networks that demonstrate no regard for human life.”
Each defendant is charged with one count each of conspiracy to transport illegal aliens resulting in death, conspiracy to transport illegal aliens resulting in serious bodily injury and placing lives in jeopardy, transportation of illegal aliens resulting in death, and transportation of illegal aliens resulting in serious bodily injury and placing lives in jeopardy. If convicted on the top counts, they each face a maximum penalty of life in prison.
HSI is investigating the case with valuable assistance from Customs and Border Protection, Border Patrol, ICE Enforcement and Removal Operations, FBI, ATF, San Antonio Police Department, Bexar County Sheriff’s Office, San Antonio Fire Department, Marshall Police Department, and Palestine Police Department.
Assistant U.S. Attorneys Eric Fuchs, Sarah Spears, and Amanda Brown for the Western District of Texas are prosecuting the case.
Since its creation, JTFA has successfully increased coordination and collaboration between the Justice Department, DHS, and other interagency law enforcement participants, and with foreign law enforcement partners, including in El Salvador, Guatemala, Honduras, and Mexico; targeted those organizations that have the most significant impact on the United States; and coordinated significant smuggling indictments and extradition efforts in U.S. Attorneys’ Offices across the country. JTFA is comprised of prosecutors from southwest border U.S. Attorneys’ Offices, including the Southern District of Texas, the Western District of Texas, the District of New Mexico, the District of Arizona, and the Southern District of California. Dedicated support for the task force is also provided by numerous components of the Justice Department’s Criminal Division that are part of JTFA – led by the Human Rights and Special Prosecutions Section (HRSP) and supported by the Office of Prosecutorial Development, Assistance, and Training (OPDAT), the Narcotic and Dangerous Drug Section (NDDS), the Money Laundering and Asset Recovery Section (MLARS), the Office of Enforcement Operations (OEO), the Justice Department’s Office of International Affairs (OIA), and the Organized Crime and Gang Section (OCGS). JTFA is made possible by substantial law enforcement investment from the DHS, FBI, DEA, and other partners.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former officer convicted of smuggling cocaineRead the Press Release
McALLEN, Texas – A federal jury has returned guilty verdicts against a 51-year-old Raymondville resident for trafficking drugs, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for two hours before convicting Juan Posas Jr. of trafficking cocaine and conspiracy to do so.
Posas is a former Customs and Border Protection (CBP) officer. At trial, the jury heard that on June 6, 2022, Posas traveled from Raymondville to a Home Depot in Weslaco where he met with Alexis Soria-Soria, 25, a Mexican national illegally residing in the United States. Soria then transferred a box containing approximately 20 kilograms of cocaine into Posas’ truck.
At trial, the jury heard recordings of phone conversations in which Posas helped plan the drug smuggling attempt.
However, the defense attempted to convince the jury that Soria approached him in the parking lot and simply asked if he wanted free fruits, then placed a box of fruits in his car. He said he never checked the box to see what was inside. The jury did not believe his claims and found him guilty as charged.
U.S. District Judge Micaela Alvarez presided over the trial and set sentencing for Sept. 14. At that time, Posas faces a mandatory minimum of 10 years and up to life imprisonment and a possible $10 million maximum fine.
Previously released on bond, Posas was taken into custody following the conviction today where he will remain pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of the Drug Enforcement Administration and the Hidalgo County Sheriff’s Office. Assistant U.S. Attorneys Jongwoo Chung and Jose A. Garcia prosecuted the case.
Former Hamilton man sentenced on felony for lying to receive more than $70,000 in Social Security Administration benefitsRead the Press Release
MISSOULA — A former Hamilton man who admitted to making false statements to receive more than $70,000 in disability payments from the Social Security Administration was sentenced today, U.S. Attorney Jesse Laslovich said.
Aaron Lee Grossman, 51, of Washington, Utah, and formerly of Hamilton, pleaded guilty in February to false statements to a government agency.
U.S. District Judge Donald W. Molloy presided. The court sentenced Grossman to three years of probation, with three months to be spent on electronic location monitoring, imposed a $20,000 fine, ordered $71,456 restitution to the Social Security Administration and required Grossman to perform 150 hours of community service.
In court documents, the government alleged that in 2011, Grossman applied for Social Security Disability Insurance (SSDI) payments from the Social Security Administration. The agency approved Grossman’s application and advised him of his legal obligation to notify it if he experienced a change in his ability to work, returned to work or if his medical condition improved. In February 2020, the Social Security Administration learned Grossman had started a new business and not reported it as required. Additionally, the agency learned that Grossman received $36,210 from Lynch Insulation in 2019 for work he performed through Grossman Consulting, LLC. The agency then directed Grossman to update a Work Activity Report. Grossman did so but did not report making any money from Lynch Insulation. Had he reported the income, Grossman would have been ineligible for SSDI benefits. When confronted, Grossman lied to agents and claimed his wife earned those wages. However, records from Lynch Insulation indicted that Grossman, in fact, completed the work. In an interview in 2021, Grossman admitted he concealed his income from Lynch Insulation so he could maintain his government benefits. Grossman also underreported the value of his work for another company, owned by his father, from 2019 to 2021. Grossman’s father disclosed that Grossman’s hourly wage was set so low so he could maintain his disability payments.
Assistant U.S. Attorney Karla E. Painter prosecuted the case. The Social Security Administration Office of Inspector General conducted the investigation.
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Florida Man Sentenced to 10 years in Federal Prison for Possession with Intent to Distribute 40 Kilograms of CocaineRead the Press Release
Gulfport, Miss. – A Florida man was sentenced to 120 months in federal prison for possession with intent to distribute cocaine, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
Vicente Valerio, 32, of West Palm Beach, Florida, was sentenced today in U.S. District Court in Gulfport.
According to court records, On October 11, 2022, a DEA Task Force Officer (TFO) conducted a traffic stop on a Chevrolet Silverado on Interstate 10 in Gulfport, Mississippi. The driver of the vehicle and sole occupant was identified as Vicente Valerio. Officers searched Valerio’s vehicle and found three bags containing forty bricks of cocaine. Each brick weighed a kilogram of cocaine.
Valerio was indicted on November 1, 2022, and plead guilty on March 24, 2023.
The case was investigated by the Drug Enforcement Administration with the support of the Gulfport Police Department.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
Federal Agreement Requires Nationwide Service Improvements at CVS MinuteClinics for Patients Who Are Deaf or Hard of HearingRead the Press Release
PROVIDENCE –MinuteClinic, LLC (“MinuteClinic”), a retail health care provider operating inside CVS pharmacy locations nationwide, has entered into a settlement agreement with the United States, requiring it to change its policies and procedures to provide effective communication to individuals who are deaf and hard of hearing at all of its over 11,000 locations, announced Zachary A. Cunha, United States Attorney for the District of Rhode Island.
This agreement follows an investigation begun after the Rhode Island U.S. Attorney’s Office received a complaint from a deaf individual who alleged that MinuteClinic failed to provide her with requested American Sign Language (ASL) interpretation for her medical appointments at a MinuteClinic. The investigation revealed that MinuteClinic had, in fact, failed to provide her with requested ASL interpretation, and that as a result, she was not able to effectively communicate with MinuteClinic health personnel during her medical appointments.
Additionally, the investigation revealed that, while CVS MinuteClinic’s website directed hearing-impaired patients to contact a patient support line to obtain an ASL interpreter for visits to a MinuteClinic, on at least six other occasions, when individuals called that number to request an ASL interpreter for upcoming medical appointments, the MinuteClinic representatives who answered the phone did not assist them with scheduling an interpreter.
“Interactions with health care providers as we make crucial decisions about treatment and care are among the most personal interactions we have in life,” said U.S. Attorney Cunha. “And the most basic part of that interaction is being able to communicate effectively with your health care provider. Providers have an obligation under the Americans with Disabilities Act to eliminate obstacles to access for those with disabilities, and I am pleased that, with today’s agreement, MinuteClinic is taking appropriate steps to ensure that those barriers are eliminated for users of CVS stores across the country.”
Under the settlement agreement, MinuteClinic will revise its policies and procedures for requesting, providing and tracking requests for qualified interpreters at all of its MinuteClinic locations, train staff on those policies, and post notices at its locations and website, informing patients of the means and methods by which to request auxiliary aids and services, free of charge. MinuteClinic will also pay $5,000 to the complainant.
The matter was litigated by Assistant U.S. Attorney Amy R. Romero.
The Department of Justice has a number of publications available to assist entities in complying with the ADA. For more information on the ADA and to access these publications, visit www.ada.gov or call the Justice Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD). Any member of the public who wishes to file a complaint alleging that a place of public accommodation or public entity in Rhode Island is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at (401) 709-5000 or by email at [email protected].
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cvs_minuteclinic_ada_agreement.pdfFather and Son Guilty in $21 Million Medicare Fraud SchemeRead the Press Release
NEWS RELEASE SUMMARY – June 15, 2023
SAN DIEGO - El Cajon resident and businessowner Anthony Duane Bell, Sr., pleaded guilty in federal court today, admitting that he fraudulently received more than $21 million in Medicare payments. His son and namesake, Anthony Duane Bell, Jr., admitted making false statements to the FBI to conceal the fraudulent scheme.
As part of his guilty plea, Bell, Sr. agreed to pay $21,725,604.56 in restitution to Medicare and forfeit $806,375.12 and a multi-million-dollar luxury house in El Cajon.
According to court records, the Bells created companies known as Universal Medical Solutions 1 and Universal Medical Solutions 2, with locations in Santee and San Diego. The companies supplied durable medical equipment like knee, ankle, wrist, shoulder, and back braces. The Bells obtained customers for their companies by paying thousands of dollars in kickbacks to “marketing” companies. To obtain the prescriptions, the marketing companies paid doctors for the medically unnecessary prescriptions for braces. The Bells sought to conceal their fraudulent kickback scheme by entering into sham “marketing” agreements and other contracts. In truth, the Bells were paying a set fee per brace to purchase the patients. The Bells would then send the braces to the Medicare beneficiaries and bill Medicare for the medically unnecessary braces. The Bells paid significantly less for the braces than they billed Medicare.
When Bell Jr. was interviewed by the FBI, he falsely stated that he had never heard of PA Healthcare Pharmaceuticals, a provider of durable medical equipment and his former employer.
“Fraudulent conduct that exploits the Medicare system erodes public support for this important program and squanders taxpayer resources,” said U.S. Attorney Randy Grossman. “I am grateful to our prosecution team and agency partners for their efforts to bring these crimes to justice.”
“Medicare is an essential government program that is supposed to assist some of our most vulnerable citizens with getting the healthcare they need. It should not be used as a ‘get rich’ scheme by scammers,” said FBI San Diego Acting Special Agent in Charge, Thomas Ryan. “People who exploit government programs to attempt to mask their malicious acts will continue to be investigated and held accountable by the FBI and our law enforcement partners.”
The Bells are scheduled to be sentenced on January 8, 2024, at 9 a.m., before U.S. District Judge William Q. Hayes.
The investigation was conducted by the Federal Bureau of Investigation, Department of Health and Human Services, and United States Marshal’s Service. The case is being prosecuted by Assistant U.S. Attorneys Valerie H. Chu and Christopher M. Alexander of the Southern District of California.
DEFENDANTS Criminal Case No. 20CR2887-WQH
Anthony Duane Bell Sr. Age: 54 El Cajon, California
Anthony Duane Bell Jr. Age: 33 Los Angeles, California
SUMMARY OF CHARGES
Health Care Fraud, a felony, in violation of Title 18, United States Code, Section 1347
Maximum Penalty: Ten years in custody; $250,000 fine
False Statement, a felony, in violation of Title 18, United States Code, Section 1001
Maximum Penalty: Five years in custody; $250,000 fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Department of Health and Human Services, Office of Inspector General
United States Marshal’s Service
Drug Dealer Sentenced to 8 Years in Federal Prison for Role in Fentanyl Death of Yamhill County TeenRead the Press Release
PORTLAND, Ore.—An Oregon man was sentenced to federal prison Tuesday for distributing counterfeit pills containing fentanyl that caused the fatal overdose of a Yamhill County teen.
Dylan Wilson, 26, of Lafayette, Oregon, was sentenced to 96 months in federal prison and three years’ supervised release.
According to court documents, on July 21, 2021, Yamhill County Sheriff’s Office deputies responded to the fatal overdose of a 15-year-old in Dayton, Oregon. A search of the victim’s cell phone and an interview with one of the victim’s minor friends revealed that the victim had recently purchased what they thought were Oxycodone pills from Wilson. The victim was not aware that the counterfeit pills, labeled with “M30,” contained fentanyl. A toxicology report later confirmed the victim died of a fentanyl overdose.
The next day, on July 22, 2021, Yamhill County deputies and FBI special agents surveilled Wilson’s residence in Lafayette and arrested him without incident. Wilson confessed to knowing the victim was a minor before selling the counterfeit pills. A search of Wilson’s cell phone revealed evidence of his fentanyl supplier. Investigators identified the supplier as Scott Keeling, 23, of McMinnville, Oregon, and arrested Keeling the same day.
On December 7, 2021, a federal grand jury in Portland returned a three-count indictment charging Wilson and Keeling with conspiring with one another and others to possess with intent to distribute fentanyl and possessing with intent to distribute fentanyl.
On February 21, 2023, Keeling pleaded guilty to possessing with intent to distribute fentanyl. Two months later, on April 5, 2023, Wilson pleaded guilty to the same charge. On May 30, 2023, Keeling was sentenced to 96 months in federal prison and three years’ supervised release.
This case was investigated by the Yamhill County Sheriff’s Office and the FBI. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
District of Columbia Woman Found Guilty in Scheme to Steal Money from Non-Profit She Was Entrusted to RunRead the Press Release
WASHINGTON – Rowena Joyce Scott, 70, of the District of Columbia, was convicted today of wire fraud, credit card fraud, filing false tax returns, and failing to file tax returns, in connection with a scheme to steal and embezzle money from the non-profit corporation she was entrusted to run for the benefit of some of the District’s economically disadvantaged residents.
The verdict was announced by U.S. Attorney Matthew M. Graves, Acting Special Agent in Charge Kareem Carter, of the Internal Revenue Service Criminal Investigation Washington D.C. Office and Chief John Fowler of the DC Office of Tax and Revenue Criminal Investigation Division. A sentencing hearing is scheduled for October 18, 2023.
The offense of wire fraud carries a statutory maximum of 20 years in prison. The offense of filing a false income tax return carries a statutory maximum of 3 years in prison. The offense of credit card fraud carries a statutory maximum of 10 years. The offense of willful failure to file tax returns carries a statutory maximum of one year. All the offenses also carry financial penalties.
According to evidence presented in court, from approximately January 2010 through May 2014, Scott served as the president of the board of directors and manager of Park Southern Neighborhood Corporation (“PSNC”), a non-profit, non-member corporation that owned and operated the Park Southern apartment complex in Southeast Washington, D.C. Instead of serving PSNC’s charitable mission – of providing adequate, safe, affordable housing for the District’s underhoused and underprivileged residents – Scott engaged in a scheme through which she embezzled at least $125,000 from the organization’s coffers and used nearly $30,000 in additional funds to make purely personal, unauthorized purchases from third-party vendors. All the while, Scott collected $260,000 in “salary” (about $60,000 per year), lived in the building rent-free, and used the property’s common rooms, free of charge, to operate her own ministry. Scott failed to report all of the income she received from PSNC – legitimate or otherwise – for tax purposes. Meanwhile, under her watch, the PSNC failed to finish renovations for Americans-with- Disabilities-Act compliant units and failed to make loan payments to the District.
This case was investigated by IRS-CID, the DC Office of Tax and Revenue. Assistant U.S. Attorney Kate Rakoczy, and former Assistant U.S. Attorney Peter Lallas. It was prosecuted by Assistant U.S. Attorneys Brian Kelly and Diane Lucas, and Paralegal Specialist Sona Chaturvedi.
District of Columbia Man Sentenced to 70 Months in Prison for Conspiracy to Distribute Narcotics and Use FirearmsRead the Press Release
WASHINGTON – Trevon Fairfax, 28, of Rockville, Maryland, was sentenced today to 70 months in federal prison for his role in an ongoing conspiracy to distribute narcotics and a related conspiracy to possess firearms in furtherance of drug trafficking.
The announcement was made by U.S. Attorney Matthew M. Graves, Acting Special Agent in Charge Sarah Linden, of the FBI Washington Field Office’s Criminal and Cyber Division, Special Agent in Charge Craig B. Kailimai, of the Bureau of Alcohol, Tobacco, Firearms, and Explosives Washington Division, and Interim Chief Ashan Benedict, of the Metropolitan Police Department.
Fairfax is one of more than a dozen individuals arrested as part of a joint FBI/ATF investigation which resulted in the seizure of more than 34 pounds of marijuana, 16 firearms, and more than $270,000 in cash.
Fairfax, who utilized the street nickname “Trizz,” pleaded guilty on October 21, 2022 in the U.S. District Court for the District of Columbia, to one count of conspiracy to distribute more than 100 kilograms of marijuana, as well as oxycodone and codeine, and one count of unlawful possession of a firearm by a convicted felon. As part of his plea agreement, Fairfax admitted to participating in a separate conspiracy to use, carry, and possess firearms, and further admitted to discharging a firearm in defense of the co-conspirators’ drug dealing territory. Fairfax was sentenced by the Honorable Amy Berman Jackson. Following completion of his prison term, Fairfax will be placed on four years of supervised release.
According to the government’s evidence, beginning in approximately June 2018, and continuing through April 2021, Fairfax and his co-conspirators maintained drug dealing territory on Trenton Place SE in the Congress Heights neighborhood of Washington, D.C. – a territory they defended by carrying, and discharging, firearms at perceived rivals. As part of his role in the conspiracy, Fairfax distributed marijuana in bulk quantities and served as an armed defender of the co-conspirators’ drug dealing territory. Fairfax admitted that, on April 12, 2020, he fired a 9mm handgun at an SUV driving through the co-conspirators’ territory while another co-conspirator also fired at that vehicle. The driver of that vehicle sustained a gunshot wound and crashed his vehicle, but was able to escape on foot. Fairfax was arrested on April 22, 2021, and has been detained ever since.
In announcing the sentence, U.S. Attorney Graves, Acting Special Agent in Charge Linden, Special Agent in Charge Kailimai, and Interim Chief Benedict commended the work of those who investigated the case from the FBI, ATF, and MPD. They also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney James B. Nelson who investigated and prosecuted the case.