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Newest first across public DOJ and U.S. Attorney press releases.
1 August 2023
Orange County Woman and Man Charged with Running $2.2 Million Scheme that Tricked Banks into Cashing Out Victims’ MortgagesRead the Press Release
SANTA ANA, California – Two Orange County residents have been charged by a federal grand jury with fraudulently obtaining more than $2 million by stealing the identities of homeowners – primarily elderly Vietnamese Americans – and duping banks into “cashing out” mortgages on those properties, the Justice Department announced today.
Thao Thi Kim Nguyen, 47, of Garden Grove, and Nghiep Chinh Nguyen, 55, of Westminster, were arraigned Monday afternoon in United States District Court in Santa Ana.
Both defendants, who have been granted bond, are charged with one count of conspiracy to commit bank fraud and wire fraud. Thao Nguyen additionally is charged with seven counts of bank fraud and three counts of aggravated identity theft. Nghiep Nguyen is charged further with two counts of bank fraud and one count of aggravated identity theft.
At their arraignments, the defendants pleaded not guilty to the charges against them. A September 26 trial date was scheduled in this matter.
The schemers allegedly obtained a type of mortgage that allows homeowners to convert home equity into cash by borrowing against the value of the property.
According to an indictment returned on July 26, during a roughly four-month period in 2018, Thao Nguyen opened accounts in her name at two banks. The alleged purpose of these bank accounts was to collect the scheme’s ill-gotten gains.
Thao Nguyen then would visit the bank, accompanied Nghiep Nguyen and other co-schemers. Nghiep Nguyen and other co-schemers posed as the victim homeowners – whose identities they allegedly had stolen – and forged the victims’ signatures to fraudulently obtain cash-out mortgages on the victim-owned properties, which otherwise were unencumbered.
To pursue the fraud, Nghiep Nguyen allegedly used counterfeit California driver’s licenses and Social Security cards containing the victims’ names, and forged the victims’ signatures on documents, including bank and mortgage forms as well as grant deeds for the victims’ real estate properties. The victims’ names also were added to the Thao Nguyen-controlled bank accounts.
Thao Nguyen allegedly used her accounts to receive wire transfers totaling more than $2 million in fraudulently obtained cash-out mortgage proceeds. She allegedly would transfer the fraudulently obtained mortgage proceeds to other bank accounts she controlled and would make cash withdrawals totaling approximately $1 million. The remaining funds were distributed to the co-schemers.
In total, the defendants fraudulently obtained approximately $2,182,753 through the scheme, the indictment alleges.
For example, in July 2018, Thao Nguyen opened a bank account in her name. Later that month, Nghiep Nguyen and another co-schemer, accompanied by Thao Nguyen allegedly posed as two homeowners at the bank branch in Orange.
Two days later, Nghiep Nguyen allegedly forged the two victim homeowners’ signatures on a grant deed for properties in Garden Grove and Long Beach. Nghiep Nguyen and another co-schemer allegedly then used fake IDs in the victims’ names to add those names to Thao Nguyen’s bank account. While doing so Thao Nguyen told bank personnel that the victims were her parents, according to the indictment.
In August 2018, Thao Nguyen allegedly received a wire transfer of approximately $623,196 in fraudulent mortgage proceeds. She then transferred most of the ill-gotten funds to accounts she and another co-schemer controlled, according to the indictment.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted of all charges, the defendants would face a statutory maximum sentence of 30 years in federal prison for each conspiracy and fraud charge, and a mandatory sentence of two years in federal prison for each aggravated identity theft charge.
The FBI, the Federal Deposit Insurance Corporation Office of Inspector General, and IRS Criminal Investigation are investigating this matter. The Long Beach Police Department, the California Attorney General’s Office, and investigators with the Alameda County District Attorney’s Office provided assistance.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office and Special Assistant United States Attorney Gregory B. Wagner are prosecuting this case.
Operation Cross Country XIII Leads to Identification/Location of Adolescent VictimsRead the Press Release
Note: B-roll from Operation Cross Country XIII operations can be found/downloaded here: Operation Cross Country 2023 B-Roll
The FBI, working with its state and local partners, identified and located 200 victims of sex trafficking during a nationwide enforcement campaign called Operation Cross Country. The operation also led to identification or arrest of 126 suspects of child sexual exploitation and human trafficking offenses and 68 suspects of trafficking were identified or arrested.
Through targeted operations and collaborative efforts, Operation Cross Country achieved significant milestones in recovering victims, apprehending offenders, and raising public awareness about these heinous crimes. The FBI and its partners located 59 minor victims of child sex trafficking and child sexual exploitation offenses and located 59 actively missing children during its 2-week operation in July.
“Sex traffickers exploit and endanger some of the most vulnerable members of our society and cause their victims unimaginable harm,” said Attorney General Merrick B. Garland. “This operation, which located 59 actively missing children, builds on the tremendous work the FBI has undertaken over many years to rescue minor victims and arrest those responsible for these unspeakable crimes. We will continue to work with our law enforcement partners across the country to prevent human trafficking; increase detection, investigation, and prosecution of human trafficking crimes; and expand support and services to protect and empower survivors.”
The FBI-led nationwide initiative, in partnership with the National Center for Missing and Exploited Children (NCMEC), focused on identifying and locating victims of sex trafficking and investigating and arresting individuals and criminal enterprises involved in both child sex and human trafficking. Law enforcement agencies conducted targeted operations to identify and apprehend offenders, dismantling criminal networks, and preventing further harm to victims. Those suspects identified will be subject to additional investigation for potential charges.
“Human traffickers’ prey on the most vulnerable members of our society, and their crimes scar victims – many of them children – for life. The FBI's commitment to combatting this threat will never waver, and we will continue to send our message that these atrocities will not be tolerated,” said FBI Director Christopher Wray. “This operation would not be possible without the commitment and collaboration from our state and local law enforcement partners, and it demonstrates our continued focus on actively pursuing the criminals responsible for these heinous violations and connecting those impacted with dedicated victim services and resources.”
A multidisciplinary team (MDT), to include victim specialists, child/adolescent forensic interviewers, and other victim service personnel, in addition to special agents, ensures a victim-centered, culturally responsive, trauma-informed investigative response. The FBI MDT works with state and local partners to make resources available to meet the unique needs of trafficking victims.
Victim specialists provide services based on the individual needs of human trafficking victims, to include crisis intervention, emergency food and clothing, transportation to receive emergency services, and locating shelter or housing. The victim specialists also serve as conduit between the victims and the investigative team to help ensure they are receiving case updates, as appropriate.
“Behind every statistic, there is a person with dreams, aspirations, and the right to live a life free from child sex trafficking and exploitation. As a society we must work together to ensure the protection, support, and empowerment of those impacted by this heinous crime.” said NCMEC President & CEO Michelle DeLaune. “We applaud the FBI and their partner law enforcement agencies for their unwavering dedication to protecting children. Their tireless efforts in combatting crimes against children sends a powerful message that child sexual exploitation will not be tolerated.”
The FBI remains steadfast in its commitment to combatting child exploitation and human trafficking. Operation Cross Country is just one facet of the Bureau's ongoing efforts to protect the most vulnerable members of society and hold offenders accountable. The FBI encourages continued vigilance, cooperation, and reporting from the public to help identify and recover victims and bring perpetrators to justice.
Resources:
- Victim Services Division
- Crimes Against Children
- National Center for Missing and Exploited Children (NCMEC)
- NCMEC’s 24/7 call center number: 1-800-THE-LOST (843-5678)
Northern District of Indiana US Attorney’s Office to Participate in Community Events During National Night OutRead the Press Release
HAMMOND - The United States Attorney’s Office for the Northern District of Indiana will join community organizers, neighbors, and law enforcement partners to participate in National Night Out events on August 1, 2023. During this year’s National Night Out, United States Attorney Clifford D. Johnson has directed staff to attend community events throughout the Northern District, which includes areas within Northwest Indiana, South Bend and Fort Wayne. Staff will be meeting law enforcement and first responders during this yearly event.
United States Attorney Clifford D. Johnson said, “National Night Out activities are important steps in building bridges between law enforcement and the communities they serve. I encourage all District residents to participate in National Night Out activities in order to create law enforcement and community partnerships, which will, in turn, build safer neighborhoods and stronger communities.”
National Night Out is an annual community-building campaign that promotes partnerships and camaraderie between law enforcement and the communities they serve to make our neighborhoods safer places to live. Millions take part in National Night Out across thousands of communities throughout the country on the first Tuesday of August in most areas of the country.
National Night Out was established in 1984 with funding from the Bureau of Justice Assistance of the United States Department of Justice. The program is administered by the National Association of Town Watch, a nationwide non-profit organization.
Coordinated by local law enforcement and trained volunteers, National Night Out provides a great opportunity to bring police and neighbors together under positive circumstances. Neighborhoods host block parties, cookouts, festivals, parades, safety demonstrations, seminars, youth events, visits from emergency personnel, and more. National Night Out sends a message that neighbors are united and working together to keep their communities and each other safe.
For more information, visit https://natw.org/.
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Northeast Philadelphia Pharmacies and Their Owners Agree to Pay over $3.5 Million to Resolve False Claims Act LiabilityRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Future Pharmacy, Inc. (“Future”) and JJ Pharmacy, Inc. (“JJ”), and their respective owners, Arthur Kilimnik, Alexander Ferman, Mikhail Ferman, Leonard Kilimnik, and Aleksey (Alex) Orlov, have agreed to pay over $3,500,000 to the federal government to resolve allegations that they violated the False Claims Act by billing Medicare for prescription medications that were not actually dispensed. During the period January 1, 2012, to December 31, 2016, these medications included but were not limited to Lidocaine, Lidoderm, Advair Diskus, Nexium, Creon, and Abilify. Future Pharmacy and JJ Pharmacy have also agreed to a five-year federal healthcare exclusion, which will prohibit them from receiving payments from any federally funded health care insurer such as Medicare during the that time. The pharmacies have also surrendered their DEA Certificates of Registration and ceased operations.
As a majority owner of Future Pharmacy and minority owner of JJ Pharmacy, and a pharmacist, the government also contends that Arthur Kilimnik violated the Controlled Substances Act by: (a) failing to maintain complete and accurate records; (b) failing to separate Future Pharmacy’s Schedule II biennial inventory from its Schedule III-V biennial inventory; (c) failing to take appropriate inventory within a two-year period following Future Pharmacy’s last inventory; (d) receiving Schedule II supply from another company, Future Medical, and filling prescriptions generated by Future Medical without proper documentation; and (e) improperly allowing another individual to use Kilimnik’s Controlled Substance Ordering System username and password to order Schedule II controlled substances.
“Pharmacies and pharmacists have a responsibility to serve as gatekeepers of a closed system of prescription drug distribution. That responsibility was allegedly abused for profit here,” said U.S. Attorney Romero.
“Pharmacies are integral partners in patient care, and they are expected to act with integrity,” said Maureen Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services, Office of the Inspector General. “We take allegations of pharmacy fraud seriously, and today’s settlement reflects our commitment to working with our partners to ensure that taxpayer dollars are spent in an appropriate manner – on needed medications, not wasted on fraud and abuse.”
“Pharmacies are entrusted with the proper dispensing and safeguarding of controlled substances in their possession,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The Controlled Substances Act mandates that pharmacists maintain accurate records and inventories to account for these drugs.”
The settled civil claims are allegations only. There has been no determination of civil liability.
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General and the Drug Enforcement Agency. It was handled by Civil Chief Gregory B. David, Assistant U.S. Attorney Deborah W. Frey, and Auditor George Niedzwicki.
New Haven Man Sentenced to 10 Years for Child Pornography OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that EDWARD WALKER, 50, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 120 months of imprisonment, followed by 10 years of supervised release, for producing child pornography.
According to court documents and statements made in court, in June and July 2019, Walker made two cell phone videos of himself engaging in sexual activity with a 16-year-old girl who was a runaway from foster care and dependent on Walker for housing, food, and other necessities.
On April 12, 2023, Walker pleaded guilty to possession of child pornography.
Judge Shea ordered that the 10-year sentence will run concurrently with a 25-year federal sentence that Walker is currently serving after being convicted of sex trafficking This matter was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Angel M. Krull and Shan Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Multimillion Dollar Fraudster Returned to Prison for Structuring Transactions While on Supervised ReleaseRead the Press Release
RALEIGH, N.C. – A Wake Forest man was sentenced to 36 months in prison for violating the terms of his supervised release and structuring transactions to avoid reporting requirements. Ricky Lamont Congleton, age 53, pled guilty to the charge on November 9, 2022.
According to court documents and other information presented in court, Congleton was previously sentenced to 66 months in prison in October of 2014, followed by 5 years of supervised release, for orchestrating a multi-million-dollar mortgage fraud upon various banks. In that scheme, Congleton and others used “straw buyers” to purchase properties that he and others had developed. Congleton then, with the assistance of a conspiring attorney, sold the properties at a discount by concealing from banks that he had supplied the downpayments on the sales.
After being released from prison, but while on federal supervision, an investigation was opened into Congleton’s movement of large amounts of cash into bank accounts that were then used to purchase new properties. The investigation ultimately uncovered that, to evade reporting requirements, Congleton broke approximately $100,000 in cash into small amounts and deposited it into different banks in different cities. This act of breaking up cash transactions to avoid bank reporting requirements is a federal criminal offense and is commonly known as “structuring.” Not only did Congleton commit structuring, but he also did so while under federal supervision.
At sentencing, the Court sentenced Congleton to the top of the guideline range – 24 months in prison, followed by an additional consecutive year for committing the offense while on supervised release. Congleton was also sentenced to an additional three years of supervised release.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge James C. Dever, III. The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation investigated the case. Assistant U.S. Attorney William M. Gilmore prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case Nos. 5:12-CR-1-1D and 7:22-cr-00108-D.
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Monroe, N.C. Woman Is Charged with Embezzling More Than $2.3 Million from Her EmployerRead the Press Release
CHARLOTTE, N.C. – A federal indictment was unsealed in federal court today, charging Kristy Lawrence, 44, of Monroe, N.C., with wire fraud, for allegedly embezzling more than $2.3 million from her employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to allegations in the indictment, from 2016 to April 2022, Lawrence was employed by a small family business located in Monroe. Over the course of her employment, Lawrence allegedly worked in a purchasing and accounting function for the business and handled the company’s books and records. The indictment alleges that Lawrence embezzled millions from the company by making multiple unauthorized electronic transfers from the company’s bank account to make payments for her personal benefit, including to pay her credit cards. Lawrence allegedly covered up the fraud by using her position and access to falsify documents and make fraudulent accounting entries in the company’s books and records. Lawrence’s alleged embezzlement scheme was uncovered after the defendant was on extended leave and another employee took over her responsibilities.
Lawrence was released on bond after her initial appearance. The wire fraud charge carries a maximum sentence of 20 years in prison and a $250,000 fine.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney King thanked the FBI in Charlotte and the Union County Sheriff’s Office for their investigation of the case.
Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Missouri Nurse Sentenced for Taking Leftover Fentanyl from HospitalRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Stephen N. Limbaugh Jr. on Tuesday sentenced a registered nurse who stole fentanyl from the hospital where she worked to three years of probation, 200 hours of public service work and a $5,000 fine.
Judge Limbaugh also ordered Lindsey M. Francis, 35, to undergo drug treatment. She will be subject to random drug screenings.
Francis was formerly a nurse at Saint Francis Medical Center in Cape Girardeau. On Jan. 15, 2022, a colleague discovered a used syringe in a locker room in the hospital’s emergency department. A subsequent investigation revealed that a vial of fentanyl had been tampered with. Confronted by hospital staff, Francis said that since June or July of 2021, she had taken and injected leftover fentanyl due to work and personal stress, her plea agreement says. The total amount of fentanyl diverted was determined to be less than 4 grams.
Francis pleaded guilty in U.S. District Court in Cape Girardeau in May to one count of unlawfully acquiring a controlled substance.
The case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Timothy Willis is prosecuting the case.
Mission Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Mission, South Dakota, man convicted of Assault With a Dangerous Weapon. The sentencing took place on July 31, 2023.
Cordero Morris, a/k/a Cordero McIntire, age 36, was sentenced to 10 years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Morris was indicted by a federal grand jury in January of 2023. He pleaded guilty on May 10, 2023.
The conviction stemmed from an incident that occurred near Mission, on September 15, 2022. On that date, Morris was riding in a vehicle driven by the victim, Morris’s spouse and intimate partner. Morris and the victim subsequently got into an argument and Morris produced a knife, which he used to cut the victim on her arm. The victim stopped the vehicle and Morris got out, at which point the victim drove away. The victim then drove into Mission and went to the residence of a family member, who called 911. In April of 2023, while the case was pending trial, Morris called the victim from jail and attempted to persuade her to change her description of the incident and to say she did not remember what happened.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
Morris was immediately remanded to the custody of the U.S. Marshals Service.
Michigan Man and Woman Plead Guilty to Federal Drug CrimesRead the Press Release
CHARLESTON, W.Va. – Darrell Lamar Holcomb, also known as “Smiley,” 31, of Dearborn Heights, Michigan, and Nicole Christian Ball, 44, of Jackson, Michigan, pleaded guilty today to aiding and abetting the distribution of 500 grams or more of methamphetamine and 400 grams or more of fentanyl. Holcomb also pleaded guilty to conspiracy to distribute 500 grams or more of methamphetamine and 400 grams or more of fentanyl,
According to court documents and statements made in court, beginning approximately in or before 2019, Holcomb began supplying controlled substances including methamphetamine, heroin, fentanyl, cocaine and marijuana to an individual living in the Oak Hill area of West Virginia. Holcomb or a courier would transport the controlled substances to the individual from the Detroit, Michigan area approximately once or twice per month. Holcomb usually provided the controlled substances on consignment, accepting payment after the individual sold them. Holcomb also provided cell phones to the individual that he was to use only to communicate with Holcomb.
In early December 2021, Holcomb negotiated with the individual to sell him approximately 5 pounds of methamphetamine and 3 kilograms of fentanyl along with approximately 2 kilograms of a cutting agent to mix with the fentanyl and increase the sellable amount. The individual was required to pay Holcomb $60,000 from a prior shipment as part of this drug deal.
Ball admitted that she was the courier for this transaction, delivering what she now knows was methamphetamine, fentanyl and the cutting agent to the individual in the Pea Ridge Road area of Oak Hill on December 12, 2021. Ball further admitted to taking what she believed to be $60,000 packaged in vacuum-sealed plastic from the individual. Law enforcement officers stopped Ball’s vehicle following the transaction and seized the money.
Holcomb and Ball are scheduled to be sentenced on November 8, 2023, and each faces a mandatory minimum of 10 years and up to life in prison, at least five years of supervised release, and a $10 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Central West Virginia Task Force.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Joshua Hanks is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-216.
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Merrillville Woman Sentenced to 84 MonthsRead the Press Release
HAMMOND-Stephanie Fazekas, 50, of Merrillville, Indiana was sentenced by United States District Court Judge Philip P. Simon after pleading guilty to distribution of child pornography, announced United States Attorney Clifford D. Johnson.
Fazekas was sentenced to 84 months in prison and 5 years of supervised release.
According to documents filed in the case, on or about April 3, 2021, Fazekas distributed visual depictions of minors being utilized in sexually explicit conduct using a telecommunications application.
This case was investigated by the United States Department of Homeland Security, Homeland Security Investigations with assistance from the Indiana State Police Department. The case was prosecuted by Assistant United States Attorney Thomas M. McGrath.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Merrillville Man Convicted of Crimes Against Children OffenseRead the Press Release
HAMMOND- Tyrone Johnson, age 35, of Merrillville, Indiana, was found guilty following a 2-day jury trial presided over by United States District Court Judge Philip P Simon, announced United States Attorney Clifford D. Johnson.
The jury found Johnson guilty of two (2) counts charged in the Second Superseding Indictment. Johnson was convicted of sexual exploitation of a minor for purpose of producing a visual depiction. He was also convicted of committing a felony offense involving a minor while being required by law to register as a sex offender.
Johnson will be scheduled for sentencing by separate order of the Court. Any specific sentence to be imposed will be determined by the District Court Judge after consideration of federal statutes and the United States Sentencing Guidelines.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations with assistance from the Indiana State Police, the Lake County, Indiana Sheriff’s Department, the Peru, Illinois Police Department, the LaSalle County, Illinois Sheriff’s Office and the Illinois State Police Offender Registration Unit. This case was prosecuted by Assistant United States Attorneys Emily Morgan, Abizer Zanzi and Philip Benson as well as former Assistant United States Attorneys Molly Kelley and Jill Koster.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Memphis Man Sentenced to 31 Years in Federal Prison for Series of Armed Robberies of Mid-South HotelsRead the Press Release
Memphis, TN – Today a federal judge sentenced the last of three men involved in a series of robberies of hotels in Memphis. Reginald Rose, 30, of Memphis was sentenced to 382 months in federal prison for his role in five hotel robberies in the Memphis area, said Kevin G. Ritz, United States Attorney for the Western District of Tennessee. U.S. District Court Judge Mark S. Norris also ordered Rose to serve three years of supervised release upon completion of his prison term.
There is no parole in the federal system.
Judge Norris previously sentenced both of Rose’s co-defendants: Memphis resident Gregory Moore, 24, was sentenced on May 18, 2023, and resident Randy Jack, 27, was sentenced on March 1, 2023. Judge Norris sentenced both Moore and Jack to 168 months and one day in prison after they pled guilty to four of the same robbery charges. Judge Norris also ordered that both Moore and Jack serve three years of supervised release.
This case was investigated by the FBI’s Safe Streets Task Force.
According to United States Attorney Ritz and the information presented in court, between August 5 and 7, 2021, Rose, Moore, and Jack robbed four Memphis hotels at gunpoint. On August 8, 2021, Rose and Moore also robbed a fifth hotel at gunpoint. On August 5, 2021, Randy Jack and Reginald Rose entered the Quality Suites, 2575 Thousand Oaks Boulevard in Memphis, and Jack pointed a firearm at the employee, demanding money. Rose stood in front of the counter to distract the other victims and employees. After taking money from the cash registers, the pair fled to a waiting getaway car driven by Moore.
Although they changed roles in some of the subsequent robberies, the trio went on to conduct similar robberies of the following hotels:
- August 7, 2021: Quality Inn, 3105 Millbranch Road, Memphis, Tennessee.
- August 7, 2021: Quality Inn and Suites, 1335 McRee Street, Memphis, Tennessee.
- August 7, 2021: Extended Stay America Suites, 2520 Horizon Lake Boulevard, Memphis, Tennessee.
- August 8, 2021: Microtel Inn and Suites, 2423 North Germantown Parkway, Memphis, Tennessee. (This robbery was committed by Rose and Moore alone.)
United States Attorney Kevin Ritz thanked Assistant United States Attorney Greg Wagner, who prosecuted this case, as well as law enforcement partners who investigated the case.
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Member of St. Louis Drug Ring Sentenced to 18 Years in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Ronnie L. White on Tuesday sentenced a member of a St. Louis drug conspiracy that killed two rivals to 18 years in prison.
Michael “Beezy” Johnson, 30, pleaded guilty in U.S. District Court in St. Louis in May to one count of conspiracy to possess a firearm in furtherance of drug trafficking. He admitted discharging a firearm in furtherance of the drug conspiracy, and admitted that Kevin Davis Jr., 24, was shot on June 30, 2017 in the 1900 block of Belt Avenue in St. Louis.
A witness told investigators that Johnson fired 25 shots at Davis Jr. after chasing him down the street. One of the leaders of the drug conspiracy, Maurice Herbert Lee II, had placed a bounty of between $5,000 and $15,000 on any rival gang members or drug dealers. Earlier on the day of the murder, another member of the conspiracy, Delvin Bost, called Lee to confirm that a bounty for Davis was still being offered. Bost later claimed credit, received $10,000 from Lee and then paid Johnson, plea agreements by Lee and Bost say.
Lee pleaded guilty May 2 to one count of conspiracy to distribute and possess with intent to distribute fentanyl, one count of conspiracy to distribute and possess with intent to distribute methamphetamine and two counts of conspiracy to possess a firearm in furtherance of drug trafficking. He admitted being responsible for between 4 and 12 kilograms of fentanyl and between 500 grams and 1.5 kilos of methamphetamine. He also admitted that another fatal shooting occurred in furtherance of the drug conspiracy, that of Alexander Noodel on May 8, 2017.
"If ever there was an example of how drug trafficking and violence go hand in hand, this is it," said Special Agent in Charge Michael A. Davis, head of the Drug Enforcement Administration division that leads DEA investigations in Missouri and Kansas, as well as southern Illinois. "Not surprising that individuals who are willing to sell illicit drugs that could kill someone are willing to engage in other criminal activities that result in death. We must hold them responsible for their actions.”
Lee is scheduled to be sentenced September 7. Bost is scheduled to be sentenced August 29. Three other members of the conspiracy are also scheduled to be sentenced that week. In all, 17 defendants were charged and all pleaded guilty.
The case was investigated by the St. Louis County Police Department, the St. Louis Metropolitan Police Department and the Drug Enforcement Administration. Assistant U.S. Attorneys Paul D’Agrosa and Mohsen Pasha are prosecuting the case.
Massachusetts Man Sentenced for Conspiracy to Distribute Illegal Controlled Substances as well as Possession with Intent to Distribute HeroinRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont stated that on July 31, 2023, Glendon Parrish-Cambell, 23, of Springfield, Massachusetts, was sentenced by U.S. District Judge William K. Sessions III to a sentence of 42 months’ imprisonment and a 3-year term of supervised release for conspiracy to distribute fentanyl, cocaine, and cocaine base and for possession with intent to distribute heroin.
According to court records, during the months of March and April of 2022, law enforcement conducted controlled purchases of fentanyl and cocaine base at a residence in Washington, Vermont. Law enforcement identified Justin Llano, aka “TJ,” and Glendon Parrish-Cambell, aka “B,” as drug traffickers distributing fentanyl and cocaine base from the residence. A Special Agent with the Bureau of Alcohol, Tobacco, Firearms, and Explosives obtained a search warrant for the residence, which was executed on May 13, 2022. During the search, law enforcement seized 14 firearms, approximately 28 grams of cocaine base, and approximately 400 bags of fentanyl.
Previously, as courts records show, on May 22, 2021, law enforcement found Parrish-Cambell in an apartment in Barre, Vermont, with approximately 10,300 bags of heroin nearby and $2,428 in United States currency on his person.
United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of the Vermont Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Federal Bureau of Investigation. The U.S. Customs and Border Protection Office of Air and Marine, Homeland Security Investigations, Vermont State Police, Montpelier Police Department, Barre City Police Department, the Washington County Sheriff’s Office, and the Washington County State’s Attorney’s Office also provided valuable assistance.
This case was prosecuted by Assistant U.S. Attorney Andrew Gilman. Parrish-Cambell was represented by Robert L. Sussman, Esq.
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. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn.
Manatee County Man Sentenced to Federal Prison for Unlawfully Possessing Loaded Firearm as A Convicted FelonRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Shaborn Washington (29, Palmetto) to eight years and four months in federal prison for possessing a firearm as a previously convicted felon. The court also ordered Washington to forfeit the firearm and ammunition possessed during the offense. Washington had been found guilty following a bench trial on February 23, 2023.
According to court records, shortly after 2:00 A.M. on January 16, 2021, a deputy from the Lee County Sheriff’s Office conducted a traffic stop on a car near the Miromar Outlets in Estero. When the car stopped, the deputy approached and observed Washington, who was the backseat passenger, trying to shove something underneath his seat. During a later search of the vehicle, deputies found a black bag underneath the backseat concealing a loaded handgun. Subsequent DNA analysis revealed that Washington’s DNA profile matched DNA extracted from the firearm. As a convicted felon who had only recently been released from prison for selling cocaine, Washington is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Simon R. Eth.
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.
Maine Woman Sentenced to 42 Months for Possession of Drugs with the Intent to DistributeRead the Press Release
Acting United States Attorney Susan Lehr announced that Arica Marie Downs, 36, of Rumford, Maine, was sentenced today in Lincoln, Nebraska, by Senior United States District Judge John M. Gerrard to 42 months’ imprisonment for possession of methamphetamine with the intent to distribute. After her release from prison, Downs will begin a four-year term of supervised release. There is no parole in the federal system. Downs pleaded guilty to her offense on March 7, 2023.
On March 9, 2022, Downs and Judith Ann Deandrade were traveling east on Interstate 80 in a rental car when they were stopped by a Lancaster County Deputy Sheriff for following a semitruck at too close of a distance. During the traffic stop, a police canine was walked around the exterior of the car and alerted to the odor of drugs emanating from the vehicle. The deputy then searched the vehicle. In the area near where the two women had been seated, the deputy located syringes, small baggies, and about a half-ounce of fentanyl. When the deputy searched the trunk, he located approximately 18.5 pounds of methamphetamine. Both were arrested. Law enforcement learned that Deandrade arranged the trip from Boston to Las Vegas to pickup up the methamphetamine, and that Deandrade offered Downs a pound of methamphetamine to accompany her on the trip.
Deandrade died in custody on April 21, 2022, while this case was pending.
The investigation was conducted by the Lancaster County Sheriff’s Office and the Seward County Sheriff’s Office.
Maine Man Pleads Guilty to Role in Northern New England Fentanyl Trafficking OperationRead the Press Release
BOSTON – A Maine man pleaded guilty today in federal court in Boston in connection with a fentanyl trafficking operation that spanned across northern New England.
Douglas Morris, 33, of Bangor, Maine, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of p-Fluorofentanyl, a fentanyl analogue. U.S. District Court Judge Indira Talwani scheduled sentencing for Nov. 14, 2023. Morris was indicted by a federal grand jury along with five co-defendants in March 2022.
According to court documents, in June 2021, Morris picked up nearly two kilograms of p-Fluorofentanyl intended for distribution in Maine, allegedly from co-defendant Ivan Rodriguez Osorio in a hotel parking lot in Amesbury. State law enforcement subsequently stopped Morris’ vehicle and seized the narcotics. In July 2021, Morris again picked up nearly two kilograms of fentanyl, allegedly from Rodriguez Osorio, in the same hotel parking lot in Amesbury. State law enforcement again stopped Morris’ vehicle and seized the narcotics.
Morris is the third defendant to plead guilty in the case.
The charge of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of p-Fluorofentanyl, a fentanyl analogue, provides for a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement. Special assistance was provided by the New Hampshire State Police. Assistant U.S. Attorneys Stephen W. Hassink and Lauren A. Graber of the Criminal Division are prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Lorain Man Sentenced to 15 years for Selling and Possessing FentanylRead the Press Release
AKRON – Gregory Ralston, 33, of Lorain, Ohio, was sentenced on Friday, July 28, 2023, to 15 years in prison by U.S. District Judge John R. Adams, after a jury convicted him of distributing fentanyl and possessing additional fentanyl with the intent to distribute it. Ralston was ordered to serve 10 years of supervised release following imprisonment and pay a $200 special assessment.
According to court documents and court records, Ralston sold fentanyl on May 13, 2020. The next day, detectives from the Lorain and Elyria Police Departments, and Federal Bureau of Investigation (FBI) agents, arrested Ralston outside a restaurant in Lorain, Ohio. Ralston possessed additional fentanyl with the intent to distribute it.
The investigation was conducted by Lorain Police Department and the FBI as part of Operation Synthetic Opioid Surge (S.O.S.), a joint law enforcement initiative that seeks to reduce the supply of deadly synthetic opioids and to identify wholesale distribution networks and international and domestic suppliers in Lorain County. This case was prosecuted by Assistant U.S. Attorneys Robert J. Kolansky and Payum Doroodian.
Live Oak Man Sentenced to Two Years in Federal Prison for Conspiring to Possess and Transfer Unregistered Firearm SilencersRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Gregory Austin Eward (25, Live Oak) to two years in federal prison for conspiracy to possess and transfer unregistered firearm silencers. Eward had pleaded guilty on February 27, 2023.
According to the plea agreement, Eward and his father and co-defendant, Dustin Eward, operated Eward Research Inc., a company that marketed and sold firearm silencers (also known as suppressors) over the internet. In lightly coded language, their website, ewardresearch.com, advertised the sale of combinations of parts designed and intended for use in assembling firearm silencers – never using the term “silencer,” but referring to individual components as “toobz,” threaded “end caps,” “spacers,” and “spools.” Sales could be completed with either cash or cryptocurrency. The website included photographs of the items for sale, which were identifiable as components of firearms silencers.
In January and again in February 2022, an undercover ATF Special Agent ordered three silencers from the Ewards, paying for them with cryptocurrency. Surveillance video from a post office showed Gregory Eward mailing one of the parcels containing silencers that the agent eventually received.
The devices were examined by an ATF Firearms Enforcement Officer and firearms expert who concluded that the devices were consistent in design and construction with firearms silencers and he recognized the devices to be firearms silencers. These silencers were not registered in the National Firearms Registration and Transfer Record, as required by federal law.
At the time of his arrest, on May 9, 2022, Gregory Eward had a Glock-type handgun on the back seat of the car. The pistol had no serial number and was loaded. Agents also located three rifle bump-stocks in the car’s open trunk. These devices also had no serial numbers.
On May 10, 2022, FBI and ATF Special Agents executed a search warrant at the Ewards’s home. They located approximately 105 firearms, over 12,000 rounds of ammunition, and 35 assembled firearms silencers. There was also a sufficient quantity of parts (including metallic tubes, baffles, and threaded endcaps), which were designed or redesigned, and intended for use in assembling or fabricating more than 300 additional firearm silencers.
Gregory Eward’s co-defendant, Dustin Eward, is scheduled for trial in October 2023. He has been charged with conspiracy to possess and distribute unregistered silencers, possession of unregistered silencers, transfer of unregistered silencers, and threatening to assault and murder a federal law enforcement officer. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Naval Criminal Investigative Service, the Suwannee County Sheriff’s Office, the Live Oak Police Department, the Florida Department of Law Enforcement, the Columbia County Sheriff’s Office, and the Lake City Police Department. It is being prosecuted by Assistant United States Attorney Kirwinn Mike, Michael J. Coolican, and Cherie Krigsman.
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.
Kanawha County Woman Pleads Guilty to Federal Fraud CrimeRead the Press Release
CHARLESTON, W.Va. – Tonja Oakes, 58, of Cross Lanes, pleaded guilty today to wire fraud, admitting to defrauding the American Red Cross (ARC) while employed at its Cross Lanes office. Oakes agreed to pay of $21,943 in restitution as a consequence of her guilty plea.
According to court documents and statements made in court, the ARC hired Oakes in 2015 as a business operations specialist, and her duties included acting as the purchasing agent for the ARC Central Appalachian Region. On March 9, 2019, Oakes began working as the executive assistance to the chief executive officer of the ARC Central Appalachian Region. Among her duties in that position, Oakes reviewed monthly statements of credit cards issued by ARC to certain employees and approved the statements for payment. This position allowed Oakes to review and approve her own expenditures.
Oakes admitted to making multiple unauthorized purchases with ARC-provided credit cards from at least February 17, 2017 through at least October 5, 2020. Oakes further admitted that the unauthorized transactions included a $973.77 payment for servicing a 2011 Kia Sorento on June 8, 2020. Other unauthorized purchases by Oakes included buying items while on vacation in South Carolina, groceries, and personal items purchased on Amazon. Oakes admitted that she used her employment position to review and approve her credit card statements, even though she knew many of the payments were unauthorized.
Oakes is scheduled to be sentenced on December 7, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI) and the Kanawha County Sheriff’s Office.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Ryan Blackwell is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-67.
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Kanawha County Woman Pleads Guilty to COVID-19 Relief Fraud SchemeRead the Press Release
CHARLESTON, W.Va. – Imeesha Bradley, 27, of South Charleston, pleaded guilty today to receipt of stolen money. Bradley admitted to a scheme to defraud the Paycheck Protection Program (PPP) of $18,703 in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
According to court documents and statements made in court, on April 21, 2021, Bradley applied for a PPP loan for her purported business, “Imeesha Bradley.” Bradley admitted that “Imeesha Bradley” was never engaged in legitimate business activity and was not a registered business entity at the time she applied for the loan. Bradley further admitted that she falsely represented that her fictitious business received $89,772 in gross income during 2020.
The CARES Act, enacted in March 2020, offered emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic. This assistance included forgivable loans to small businesses for job retention and certain other expenses through the Paycheck Protection Program. Businesses applying for PPP loans had to certify that the business was in operation on February 15, 2020, and were required to provide documentation showing their prior gross income from either 2019 or 2020.
A California lender approved Bradley’s fraudulent PPP loan application for $18,703, and transferred the funds to Bradley’s personal bank account on May 10, 2021. Bradley admitted that she withdrew $5,000 of the stolen funds that day and an additional $7,000 on May 14, 2021, each time from a bank branch in Nitro, West Virginia.
Bradley is scheduled to be sentenced on November 14, 2023, and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,00 fine. Bradley also owes $18,703 in restitution.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police-Bureau of Criminal Investigations (BCI) and the West Virginia State Auditor’s Office (WVSAO) Public Integrity and Fraud Unit (PIFU).
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Ryan Blackwell is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-112.
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Kanawha County Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Jonathan Kennedy, 42, of St. Albans, was sentenced today to three years in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on June 30, 2022, law enforcement officers responded to a report of shots fired on Leon Sullivan Way in Charleston. Officers found a bullet hole at the entrance of Jet Life Apparel and obtained a search warrant for the store’s video surveillance system. The video surveillance footage showed two firearms inside the store, a Dickinson model XXPA 12-gauge shotgun and a Smith & Wesson model M&P 15 5.56-caliber rifle. The video surveillance footage also showed Kennedy running across the store while holding the shotgun following an altercation outside.
Officers recovered both firearms from a vehicle in an alley near Jet Life Apparel. Each firearm was loaded with a high-capacity drum magazine.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Kennedy knew he was prohibited from possessing a firearm because of his felony convictions for interstate travel in aid of drug trafficking and use of a communication facility in furtherance of an unlawful act in the United States District Court for the Southern District of West Virginia on December 3, 2014.
The video surveillance footage also showed Jamon L. Woodson, 40, of Dunbar, firing a pistol in the direction of Jet Life Apparel during the altercation outside the store and Kevin Gerard Denson, 36, of Charleston, carrying both firearms inside the store afterward. Woodson was sentenced to five years in prison on July 20, 2023, after pleading guilty to being a felon in possession of ammunition. Denson pleaded guilty to being a felon in possession of a firearm on October 12, 2022, and is awaiting sentencing.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department.
Chief United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorney Nowles Heinrich prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-145.
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Kanawha County Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – George Michael Thayer, 52, of St. Albans, was sentenced today to four years and four months in prison, to be followed by three years of supervised release, for possession with intent to distribute a quantity of oxycodone.
According to court documents and statements made in court, on January 24, 2022, a law enforcement officer conducted a traffic stop of a vehicle driven by Thayer. The officer searched the vehicle and found approximately 12 oxycodone pills, multiple empty sandwich bags and a set of digital scales. Thayer admitted that he possessed the oxycodone found during the vehicle search and further admitted that he intended to distribute it. The Court also found that Thayer possessed and intended to distribute approximately 48 grams of methamphetamine, 1.8 grams of fentanyl, and 45 clonazepam pills.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police and the assistance provided by the Drug Enforcement Administration (DEA) Mid-Atlantic Laboratory.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Courtney L. Finney prosecuted 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-70.
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Kanawha County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Shawn Michael Patton, 47, of Dunbar, pleaded guilty today to distribution of methamphetamine.
According to court documents and statements made in court, on January 13, 2022, Patton sold 2 ounces of methamphetamine to a confidential informant on the front porch of his Park Drive residence in Dunbar in exchange for $700.
On February 9, 2022, law enforcement officers executed a search warrant at Patton’s residence and seized approximately 2 pounds of methamphetamine from a bedroom chair and a total of $14,572.
Law enforcement officers executed another search warrant at Patton’s residence on September 20, 2022, and seized approximately 287 grams of methamphetamine, two firearms and $554.
On October 5, 2022, Patton was arrested by law enforcement officers and consented to a search of his residence. Officers seized approximately 25 grams of heroin, 379 grams of marijuana and $2,315.
Patton is scheduled to be sentenced on November 30, 2023, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT).
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Stephanie Taylor is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-212.
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Kahliq Richardson Sentenced for Federal Gun CrimeRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that Kahliq Richardson, 20, formerly of Rutland County, was sentenced yesterday in the United States District Court in Burlington to 30 months of imprisonment for possessing a firearm while being an unlawful user of controlled substances. United States District Judge William K. Sessions III also ordered that Richardson serve three years of supervised release following his period of incarceration.
According to court documents, on April 3, 2021, Richardson was at the Quality Inn in Rutland when he shot 19-year-old Jonah Pandiani in the head. Jonah died instantly. The investigation of the homicide revealed that Richardson had a history of drug use and had been using crack cocaine in the hours before the shooting. The homicide and the investigation that followed resulted in the instant federal firearm charge, as well as state charges for voluntary manslaughter. The state charges are still pending.
In imposing the 30-month sentence, Judge Sessions varied upward from the otherwise applicable advisory Federal Sentencing Guidelines in part to recognize the recklessness which led to death of Jonah Pandiani.
This case was investigated by the Vermont State Police, the Rutland Police Department, and the Federal Bureau of Investigation.
Assistant U.S. Attorney Wendy L. Fuller represented the government. Mark A. Kaplan, Esq. represented Richardson.
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. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn.
Illinois Man Sentenced to 72 Months for Possessing Methamphetamine for DistributionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Leroy D. Hampton, 32, Champaign, Illinois was sentenced today by U.S. District Judge William M. Conley to 72 months for possessing methamphetamine with intent to distribute. Hampton pleaded guilty to this charge on May 9, 2023.
On November 12, 2020, a Wisconsin State Patrol trooper stopped a car on Interstate 90/94 in Juneau County, Wisconsin for illegally tinted windows and an obstructed Illinois temporary license plate.
During the interview with the driver, later identified as Hampton, the trooper smelled the odor of marijuana coming from inside the car. When asked, Hampton admitted to possessing a personal use amount of marijuana in his backpack. The trooper searched Hampton’s car and found a cell phone, as well as seven individually packaged bags of methamphetamine. The Drug Enforcement Administration Laboratory tested the methamphetamine and determined it weighed 418 grams and was 99% pure.
Agents from the Wisconsin Department of Justice Division of Criminal Investigation searched Hampton’s cell phone pursuant to a search warrant and found text messages consistent with drug distribution.
The charge against Hampton was the result of an investigation conducted by the Wisconsin State Patrol, Juneau County Sheriff’s Office, Wisconsin Department of Justice Division of Criminal Investigation, and Drug Enforcement Administration. Assistant U.S. Attorney Chadwick M. Elgersma prosecuted this case.
Illegal Possession of Drugs and Firearm Results in Hefty Sentence for Shreveport ManRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced the sentencing of Odis Freeman, 36, of Shreveport today. United States District Judge Elizabeth E. Foote sentenced Freeman to 102 months (8 years, 6 months) in prison, followed by 3 years of supervised release for illegal possession of drugs and a firearm. Freeman pleaded guilty on March 15, 2023 to one count of possession with intent to distribute marijuana and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to information introduced in court, officers with the Shreveport Police Department found Freeman in his vehicle in possession of a cigar with suspected marijuana on the center console of his vehicle, as well as a loaded Glock magazine inside the center console, a Glock, Model 30, .45 caliber pistol with an extended magazine under the driver’s side floor mat, a bag on the passenger seat which contained several suspected bags of marijuana, and another bag with packaging materials, a loaded extended magazine, and a sandwich bag full of suspected marijuana. Officers also found over $3,900 in cash in Freeman’s vehicle.
After being advised of his Miranda rights, Freeman spoke with the officers and admitted that he had additional marijuana inside his residence and a search was conducted. Officers recovered approximately 365 grams of suspected marijuana, approximately 28.6 grams of suspected methamphetamine, and two dosage units of alprazolam. In addition, Freeman had packaging materials used for distributing narcotics, five .45 caliber shell casings, and a digital scale with marijuana residue on it.
The seized narcotics were sent to the North Louisiana Crime Lab for testing and the suspected marijuana was confirmed. The suspected methamphetamine was determined to be substituted cathinone, a Schedule I controlled substance. Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) examined the firearm and determined it was a functioning firearm.
The case was investigated by the ATF and Shreveport Police Department and prosecuted by Assistant U.S. Attorney Brian C. Flanagan.
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Hammond Man Sentenced to 41 Months in PrisonRead the Press Release
HAMMOND- Brian Long, 32 years old, of Hammond, Indiana, was sentenced by United States District Court Senior Judge James T. Moody after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Long was sentenced to 41 months in prison followed by 2 years of supervised release.
According to documents in the case, on January 30, 2020, Brian Long possessed a semi-automatic pistol with an extended magazine in a parking lot of a business in Hammond, Indiana. Long’s criminal history revealed he has a prior felony conviction for continuing criminal financial enterprise, and as such is prohibited from possessing the firearm in this case. At the time of his current offense, Long was on probation from his prior felony conviction.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives Indiana High Intensity Drug Trafficking Task Force and the Hammond Police Department. This case was prosecuted by Assistant United States Attorney Michael J. Toth.
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.
Fugitive charged in scheme that misdirected millions in charitable donations intended for Christian outreach in ChinaRead the Press Release
DUBLIN, GA: A former Dublin, Ga., resident is being sought internationally on multiple federal charges alleging he orchestrated a scheme that misdirected more than $30 million donated for Christian ministry in China.
Jason Gerald Shenk, 45, is charged in a newly unsealed federal indictment with four counts of Wire Fraud; three counts of International Concealment Money Laundering; 13 counts of Concealment Money Laundering; 21 counts of Money Laundering Involving Transactions Greater than $10,000; and one count of Failure to File Report of Foreign Bank Account, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. Conviction on the charges would subject Shenk to statutory penalties of up to 20 years in prison, forfeiture of any property involved in or traceable to the offenses, substantial financial penalties, and a period of supervised release upon completion of any prison sentence.
There is no parole in the federal system.
Warrants have been issued for Shenk’s arrest. He is considered innocent unless and until found guilty in court.
“When people of faith donate money for evangelistic purposes, they reasonably expect those who solicit their donations to act as faithful stewards of those funds,” said U.S. Attorney Steinberg. “This case alleges an egregious breach of that trust at the expense of multiple charities and individual donors.”
As spelled out in the indictment, Shenk is alleged to have planned and executed a scheme in which he obtained more than $30 million from faith-based charities and individual donors, primarily from religious communities in Ohio and North Carolina, based on his promises that he would use the funds for producing and distributing Bibles and Christian literature in the People’s Republic of China.
Instead, the indictment alleges Shenk converted a significant amount of the funds to his own use, including:
- Payments of approximately $1 million to an online sports gambling website;
- Purchases of equity shares of approximately $850,000 in a privately held nuclear energy company;
- Approximately $4 million in purchases of at least 16 life insurance policies in various people’s names;
- Purchases of diamonds, gold, and precious metals in amounts totaling approximately $1 million;
- Purchases of domestic and foreign stocks totaling more than $188,000;
- Payments of approximately $7 million to the company running Shenk’s family farm;
- Purchases on at least 10 personal credit cards totaling more than $820,000; and,
- Purchases of $320,000 in real estate in the “Galt’s Gulch” development in Santiago, Chile.
The indictment alleges Shenk obtained approximately $22 million from one charitable organization and its donors, and approximately $10 million from another charity and its donors, along with other donations from individuals. The funds were directed to a variety of shell corporations as a result of Shenk’s claims to those religious communities that he was a missionary dedicated to various Christian mission projects around the world and would use the funding to produce and distribute Bibles and Christian literature in China.
Companies that served as conduits for these donations included Morning Star Ministries, with a bank account in Dublin, Ga.; Connect Connect Asia BV, with multiple bank accounts in Singapore; CLF Asia Limited, owner of a bank account in Hong Kong; Autumnvale Group Limited, owner of multiple bank accounts in Singapore; BCB International LLC, an entity registered in Georgia with bank accounts in the United States; Heartland Plantations LLC, an entity registered in Georgia with bank accounts in the United States; Global Paradigm LTD, an entity associated with bank accounts in the United States; and Shenkland LLC, an entity registered in North Carolina and owner of bank accounts in the United States.
The indictment alleges Shenk perpetrated the scheme from as early as April 2010 until July 2019, and that Shenk renounced his U.S. citizenship in 2016 to avoid financial reporting requirements under federal law.
If you believe you sent money directly or indirectly to Jason Gerald Shenk or one of the entities listed in the indictment for charitable purposes, please contact federal authorities at 478-752-6810. In addition, if you have information regarding the whereabouts of Jason Gerald Shenk, please contact federal authorities at this same number.
The case is being investigated by Internal Revenue Service Criminal Investigations, and prosecuted for the United States of America by Assistant U.S. Attorney Matthew A. Josephson.
us_dis_gasd_3_22cr19_indictment_as_to_jason_gerald_shenk.pdfFugitive charged in scheme that misdirected millions in charitable donations intended for Christian outreach in ChinaRead the Press Release
DUBLIN, GA: A former Dublin, Ga., resident is being sought internationally on multiple federal charges alleging he orchestrated a scheme that misdirected more than $30 million donated for Christian ministry in China.
Jason Gerald Shenk, 45, is charged in a newly unsealed federal indictment with four counts of Wire Fraud; three counts of International Concealment Money Laundering; 13 counts of Concealment Money Laundering; 21 counts of Money Laundering Involving Transactions Greater than $10,000; and one count of Failure to File Report of Foreign Bank Account, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. Conviction on the charges would subject Shenk to statutory penalties of up to 20 years in prison, forfeiture of any property involved in or traceable to the offenses, substantial financial penalties, and a period of supervised release upon completion of any prison sentence.
There is no parole in the federal system.
Warrants have been issued for Shenk’s arrest. He is considered innocent unless and until found guilty in court.
“When people of faith donate money for evangelistic purposes, they reasonably expect those who solicit their donations to act as faithful stewards of those funds,” said U.S. Attorney Steinberg. “This case alleges an egregious breach of that trust at the expense of multiple charities and individual donors.”
As spelled out in the indictment, Shenk is alleged to have planned and executed a scheme in which he obtained more than $30 million from faith-based charities and individual donors, primarily from religious communities in Ohio and North Carolina, based on his promises that he would use the funds for producing and distributing Bibles and Christian literature in the People’s Republic of China.
Instead, the indictment alleges Shenk converted a significant amount of the funds to his own use, including:
Payments of approximately $1 million to an online sports gambling website;
• Purchases of equity shares of approximately $850,000 in a privately held nuclear energy company;
• Approximately $4 million in purchases of at least 16 life insurance policies in various people’s names;
• Purchases of diamonds, gold, and precious metals in amounts totaling approximately $1 million;
• Purchases of domestic and foreign stocks totaling more than $188,000;
• Payments of approximately $7 million to the company running Shenk’s family farm;
• Purchases on at least 10 personal credit cards totaling more than $820,000; and,
• Purchases of $320,000 in real estate in the “Galt’s Gulch” development in Santiago, Chile.
The indictment alleges Shenk obtained approximately $22 million from one charitable organization and its donors, and approximately $10 million from another charity and its donors, along with other donations from individuals. The funds were directed to a variety of shell corporations as a result of Shenk’s claims to those religious communities that he was a missionary dedicated to various Christian mission projects around the world and would use the funding to produce and distribute Bibles and Christian literature in China.
Companies that served as conduits for these donations included Morning Star Ministries, with a bank account in Dublin, Ga.; Connect Connect Asia BV, with multiple bank accounts in Singapore; CLF Asia Limited, owner of a bank account in Hong Kong; Autumnvale Group Limited, owner of multiple bank accounts in Singapore; BCB International LLC, an entity registered in Georgia with bank accounts in the United States; Heartland Plantations LLC, an entity registered in Georgia with bank accounts in the United States; Global Paradigm LTD, an entity associated with bank accounts in the United States; and Shenkland LLC, an entity registered in North Carolina and owner of bank accounts in the United States.
The indictment alleges Shenk perpetrated the scheme from as early as April 2010 until July 2019, and that Shenk renounced his U.S. citizenship in 2016 to avoid financial reporting requirements under federal law.
If you believe you sent money directly or indirectly to Jason Gerald Shenk or one of the entities listed in the indictment for charitable purposes, please contact federal authorities at 478-752-6810. In addition, if you have information regarding the whereabouts of Jason Gerald Shenk, please contact federal authorities at this same number.
The case is being investigated by Internal Revenue Service Criminal Investigations, and prosecuted for the United States of America by Assistant U.S. Attorney Matthew A. Josephson.
Forney resident sentenced for trafficking “ice” for Michoacan CartelRead the Press Release
LAREDO, Texas – A 40-year-old Texan has been sentenced for conspiracy to possess with the intent to distribute approximately 19 kilograms of meth, announced U.S. Attorney Alamdar S. Hamdani.
Ernesto Diaz-Velazquez pleaded guilty Dec. 6, 2022.
U.S. District Judge Marina Garcia Marmolejo has now ordered Diaz-Velazquez to serve 84 months in federal prison. At the hearing, the court heard additional evidence that he trafficked meth “ice” in the city of Laredo. In handing down the sentence, the court noted the high-purity of meth and that it belonged to Michoacan Cartel. Judge Marmolejo admonished the defendant for seeking to distribute such a dangerous and disfiguring drug.
On Sept. 5, 2017, authorities launched an investigation into suspected drug trafficking across the local port of entry. It led to Diaz-Velazquez as the individual who took possession of approximately 18.58 kilograms of pure meth at a local store parking lot. He received the high-purity meth in liquid form.
The investigation revealed the Michoacan Cartel was the ultimate source of the drug supply.
Diaz-Velazquez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with assistance from the Laredo Police Department as part of an OCDETF operation. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, mutlti-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Former Principal of New Mission School Charged with Misusing Nearly $40,000 in School FundsRead the Press Release
BOSTON – The former Head of School for New Mission School in Hyde Park, an autonomous pilot school within the Boston Public Schools system, has been charged with one count of wire fraud for allegedly engaging in a scheme to defraud Boston Public Schools of approximately $38,806 by misusing school funds for her own personal use.
Naia Wilson, 60, of Mattapan, was charged by an Information with one count of wire fraud. Wilson, who has agreed to plead guilty and pay restitution, will appear in federal court in Boston at a later date.
According to the charging documents, Wilson was employed as Head of School for New Mission School from 2006 until about June of 2019. Pilot schools like New Mission are granted maximum autonomy over their budget and spending. New Mission School receives a lump sum per pupil budget from Boston Public Schools and school administrators decide how to spend that money based on the needs of the school.
Pilot school budgets are managed by an external fiscal agent that contracts with Boston Public Schools. The school funds managed by the external fiscal agent were held in a bank account. In order to spend school funds managed by the external fiscal agent, Wilson, in her role as headmaster of New Mission School, would be required to make a formal check request to the external fiscal agent for a check to be issued from the bank account holding the school’s funds.
Beginning in or about September of 2016 and continuing until at least May of 2019, Wilson allegedly requested checks from the external fiscal agent school account to be issued in the name of other individuals, fraudulently endorsed those checks to herself and then deposited them into her own bank account without the nominee ever knowing or authorizing her to do so.
Additionally, Wilson allegedly requested checks from the external fiscal agent that were used to pay for two all-inclusive personal vacations to Barbados for Wilson and her friends in 2016 and 2018. For both the 2016 and 2018 Barbados trips, Wilson requested that the external fiscal agent issue checks payable to other people who went on the trips and then converted that money to pay for the all-inclusive hotel and airfare. Wilson also fraudulently endorsed the checks used to pay for the 2018 trip.
“Protecting children is one of the very top priorities of this Office and threats come in all forms. Here, Ms. Wilson is accused of diverting school funds for her personal benefit. We will not allow this type of gross abuse of authority and responsibility fly under the radar. Individuals who take advantage of public trust to line their pockets will be investigated and held accountable,” said Acting United States Attorney Joshua S. Levy.
“Instead of working honestly on behalf of her students, Naia Wilson is accused of abusing her authority and using the school’s budget as her own personal slush fund to embezzle tens of thousands of dollars to fund two all-inclusive vacations to Barbados for herself and her friends,” said Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s charges should serve as a reminder to municipal workers everywhere that there are serious consequences for such shameful conduct, and it is the taxpayers they serve and answer to at the end of the day.”
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy, FBI Acting SAC DiMenna and Boston Police Commissioner Michael Cox made the announcement today. The Boston Public Schools were cooperative in this investigation. Assistant U.S. Attorneys Eugenia M. Carris and Charles Dell’Anno of the Criminal Division are prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Former President of Waterbury Credit Union Sentenced to 21 Months in Prison for Embezzling $254KRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that TARA KEWALIS, 51, of Beacon Falls, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 21 months of imprisonment, followed by three years of supervised release, for embezzling from a Waterbury credit union where she was employed.
According to court documents and statements made in court, Kewalis was the President and Chief Executive Officer of Skyline Financial Federal Credit Union located in Waterbury. From approximately September 2016 until her employment was terminated in March 2021, Kewalis used her position to access the credit union’s accounting system to create fraudulent accounts, make fraudulent entries, and steal $254,532 in credit union funds.
Kewalis has paid restitution of $254,532, but may be required to pay additional restitution to reimburse expenses incurred by the credit union during the investigation and prosecution of this criminal matter.
On December 7, 2022, Kewalis pleaded guilty to embezzlement by a credit union officer or employee. She has been detained since July 17, 2023, when her bond was revoked after she was found to have violated the conditions of her release.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Michael S. McGarry.
Former Charlotte Housing Provider Is Sentenced to Prison for Medicaid Fraud and Money Laundering ConspiracyRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Delores Jordan, 54, of Charlestown, Indiana, to 30 months in prison followed by three years of supervised release for her role in a $15 million conspiracy to defraud the North Carolina Medicaid program (Medicaid), announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Judge Bell also ordered Jordan to pay $5,879,340 in restitution.
Joining U.S. Attorney King in making today’s announcement are Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), and Attorney General Josh Stein, who oversees the North Carolina Medicaid Investigations Division (MID).
According to filed court documents and court proceedings, Jordan was the owner of Legacy Housing, which provided subsidized housing to tenants in Charlotte and Greensboro. Jordan’s co-conspirator, Donald Booker, owned and operated United Diagnostic Laboratories (UDL), a urine toxicology testing laboratory, and United Youth Care Services (UYCS), a company that provided mental health and substance abuse treatment services. Court documents show that from January 2018 to December 2020, Jordan conspired with Booker and others to defraud Medicaid via a fraudulent drug testing scheme of urine samples of Medicaid-eligible beneficiaries.
As Jordan previously admitted in court, she along with other co-conspirators recruited housing-vulnerable individuals and other Medicaid-eligible beneficiaries for housing and other programs and services. Once enrolled, the beneficiaries were required to submit urine specimens for drug testing as a condition of their participation in the program. The specimens were provided to UDL and UYCS for medically unnecessary urine drug testing. Booker and his co-conspirators paid Jordan a kickback from the Medicaid reimbursements on the drug testing. Jordan also conspired with Booker to execute a conspiracy to launder the fraudulent proceeds in order to conceal and disguise the nature and source of the illegal kickback payments for the illicit drug testing referrals.
On December 9, 2022, Jordan pleaded guilty to health care fraud conspiracy and conspiracy to commit money laundering. In January 2023, Booker was convicted at trial of conspiracy to commit health care fraud, multiple violations of the Anti-Kickback Statute, money laundering conspiracy, and money laundering. Booker is awaiting sentencing.
The FBI, IRS-CI, and NC Medicaid Investigations Division investigated the case.
The prosecution for the government is handled by Assistant U.S. Attorneys Graham Billings and Mike Savage of the U.S. Attorney’s Office in Charlotte.
Former Ames Man Sentenced to Four Years in Federal Prison for Fraud and Firearms OffensesRead the Press Release
DES MOINES, Iowa – On August 1, 2023, an Ames man was sentenced to 48 months in prison for making a false statement to a financial institution and possessing firearms after having been previously convicted of a felony.
In early September 2021, Aaron Christopher Lindsey, 34, purchased a 2018 Dodge Durango GT from an Ames car dealership using the fictious identity “Kevin Grant”. Lindsey provided the dealership that false name as well as a false Iowa driver’s license, false social security number, and false date of birth. The false information that Lindsey provided the dealership was also submitted by Lindsey as part of his credit application to obtain financing for the vehicle and caused a local Ames credit union to approve a vehicle loan for more than $42,000.
In late September 2021, law enforcement executed a search warrant at Lindsey’s Ames residence. Officers located eight firearms and ammunition at the residence, including a loaded pistol in the Durango. Lindsey possessed each of these eight firearms and ammunition. Lindsey had been previously convicted of two felonies: a forgery conviction in Marshall County, Iowa in 2017 and a forgery conviction in Story County, Iowa in 2017. At Lindsey’s residence, police also found counterfeit credit cards, blank checks in the names of multiple purported third-persons, counterfeit driver’s licenses, hundreds of blank magnetic strip cards, hundreds of blank EMV “chip” cards, a magnetic strip card encoder, printers, computer equipment, a card cutter, a laminator, laminate papers, and holograms of various state seals.
Following his prison term, Lindsey will be on supervised release for five years. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The case was investigated by the Ames Police Department and the Iowa Department of Transportation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Final Defendant Sentenced to Federal Prison in 12-Defendant, $53 Million Health Care Fraud ConspiracyRead the Press Release
MIAMI – Edgar Perez, 51, of Miramar, Florida, the final defendant in a 12-defendant health care fraud conspiracy was sentenced yesterday to 12 months in federal prison, followed by three years of supervised release, and ordered to pay a restitution in the amount of $547,560.00, for his participation in a health care fraud conspiracy that billed Blue Cross Blue Shield (“BCBS”) for more than $53 million for services, including allergy tests and physical therapy, that patients never received.
Jorge Caballero, 44, of Hialeah, Fla., Alexander Juan, 47, of Miramar, Fla., Aymee Caballero, 52, of Miramar, Fla., Roberto Ballester-Ramos, 55, of Hialeah, Fla., Roberta Ascencion, 69, of Hialeah, Fla., Mara Ventura, 36, of Hialeah Gardens, Fla., Vladimir Perez Pena, 58, of Hialeah, Fla., Amado Plain Moreno, 36, of Miami, Fla., Carlos Sablon, 55, of Hialeah, Fla., Maria Rodriguez-Alvarez, 58, of Hialeah, Fla., and Edgar Perez were indicted on July 28, 2022, and charged with conspiracy to commit health care fraud and wire fraud, and health care fraud.
The defendants opened multiple clinics throughout South Florida, and paid recruiters to provide personal information for BCBS beneficiaries. The defendants then submitted fraudulent bills to BCBS and received payments into clinic bank accounts before transferring to personal accounts, making cash withdrawals, and laundering money through various businesses and individuals.
All defendants entered guilty pleas, and have been sentenced as follows: Jorge Caballero was sentenced to 52 months in prison, Alexander Juan was sentenced to 48 months in prison, Aymee Caballero was sentenced to 41 months in prison, Roberto Ballester Ramos was sentenced to 45 months in prison, Roberta Ascencion was sentenced to 12 months in prison, Mara Ventura was sentenced to 12 months in prison, Vladimir Perez Pena was sentenced to 11 months, Amado Plain Moreno was sentenced to 33 months in prison, Carlos Sablon was sentenced to 12 months in prison, and Maria Rodriguez Alvarez was sentenced to 4 months in prison. They all have agreed to pay more than $9,000,000 in restitution.
“These defendants compromised the integrity of America’s healthcare system by stealing millions of dollars that should have gone to providing quality care to patients with true medical needs,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Such criminal behavior will not be tolerated in this district.”
“Individuals who steal from our health care system are not just stealing money from the government. Instead, they are stealing from the most vulnerable among us – the sick, the elderly, the poor,” said Justin E. Fleck, Deputy Special Agent in Charge, FBI Miami. “The FBI will not relent in our efforts to investigate and bring them to justice, and seize their illegal income and assets in restitution.”
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, made the announcement.
FBI Miami investigated the case. Assistant U.S. Attorney Lindsey Lazopoulos Friedman prosecuted it. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-20341.
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Federal Grand Jury Indicts Bullitt County Man for Possession of a Firearm by a Convicted FelonRead the Press Release
Louisville, KY – A federal grand jury returned an indictment on August 1, 2023, charging a Bullitt County man with possession of a firearm by a convicted felon.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office, and Colonel Marcus Laytham, Chief of the Mt. Washington Police Department, made the announcement.
According to the indictment, James Nott, 39, of Mt. Washington, Kentucky, was charged with possession of a firearm by a convicted felon. On July 11, 2023, Nott possessed an AK-type 7.62 mm rifle, a Charter Arms .38 special revolver, and ammunition. Nott was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses. On November 11, 2011, in the U.S. District Court for the Western District of Kentucky, Nott was convicted of possession of an unregistered destructive device and possession of a firearm by an unlawful user of marijuana.
The felon in possession of a firearm offense charged in today’s indictment, arose from a federal search warrant executed at Nott’s residence in connection with a search for firearms and trafficked human remains. Nott previously made his initial appearance before a U.S. Magistrate Judge in the U.S. District Court for the Western District of Kentucky, and he was ordered detained pending trial. Nott is scheduled for arraignment on August 4, 2023.
If convicted, Nott faces a maximum sentence of 15 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
The FBI and the Mt. Washington Police Department are investigating the case.
Assistant United States Attorneys Christopher Tieke and Stephanie Zimdahl are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Eleven Charged in $4.5 Million Dollar Pandemic Fraud SchemeRead the Press Release
DETROIT - Eleven residents of southeast Michigan have been charged in a 23-count indictment for their alleged role in a multi-million-dollar unemployment insurance fraud scheme targeting funds set aside for unemployment assistance during the COVID-19 pandemic, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Department of Labor – Office of the Inspector General (DOL-OIG) Special Agent-in-Charge of the Great Lakes Region, Irene Lindow, and Acting Special Agent in Charge Devin J. Kowalski of the Detroit Feld Office of the Federal Bureau of Investigation (FBI).
Charged are Marcellus Dunham, 23, of Redford, Jaylin Davis, 22, of Detroit, Daniel Holt, 21, Day’on Holt, 22, both of Detroit, Daveontae White, 24, of West Bloomfield, Armani Haller, 22, of Clinton Township, Aaniya Carroll, 22, of Detroit, Laron Stroud, 23, of Detroit, Jaylin Qualls, 23, of Harper Woods, Cheikh Sene, 23, of Southfield, and Deleonte Rogers, 23, of Westland. Each defendant is charged with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft.
According to the indictment, the eleven defendants used stolen personal identifying information of other individuals to file fraudulent claims for pandemic unemployment assistance in multiple states. The indictment alleges that the defendants illegally obtained over $4.5 million in government funds over the course of their scheme.
“My office won’t cease our efforts to hold accountable those who used a global pandemic to enrich themselves at the expense of taxpayers,” stated U. S. Attorney Dawn Ison.
“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance programs. We will continue to work with our law enforcement partners to aggressively investigate these types of allegations”, said Irene Lindow, Special Agent in Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
“Unfortunately, many people believed they could defraud unemployment programs during the global pandemic and never face the consequences,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI’s Detroit Field Office. “This investigation proves the FBI, and our state and federal partners, will continue to investigate and bring these criminals to justice no matter how long it takes.”
The defendants face up to twenty years in prison based on the wire fraud and wire fraud conspiracy charges, and a mandatory two-year prison sentence for aggravated identity theft.
An indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being prosecuted by Assistant United States Attorneys Ryan Particka and Sarah Youngblood. The investigation is being conducted jointly by the FBI, DOL- OIG, Department of Homeland Security, Homeland Security Investigations, and the State of Michigan Unemployment Insurance Agency.
Dominican Citizen Sentenced to 18 Months for Selling Cocaine After Illegally Returning to United StatesRead the Press Release
SYRACUSE, NEW YORK – Jose Campusano, age 38, a citizen of the Dominican Republic residing in Utica, New York, was sentenced yesterday to serve 18 months in federal prison for selling cocaine and illegally reentering the United States.
The announcement was made by United States Attorney Carla B. Freedman; Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division; and Thomas Brophy, Field Office Director of Immigration and Customs Enforcement- Enforcement and Removal Operations (ICE-ERO), Buffalo Field Office.
In pleading guilty, Campusano admitted that after being deported from the United States in 2009, he returned without permission. While he was living in the Utica area illegally, Campusano sold cocaine to another individual on six separate dates.
Chief United States District Judge Brenda K. Sannes also ordered that Campusano serve a three-year term of supervised release following his release from prison.
The U.S. Drug Enforcement Administration (DEA) and U.S. Immigration and Customs Enforcement-Enforcement and Removal Operations (ICE-ERO) investigated the case with assistance from the New York State Police, Oneida County Sheriff’s Department, Onondaga County District Attorney’s Office, the Syracuse Police Department, and Utica Police Department. Assistant U.S. Attorney Jessica N. Carbone prosecuted the case.
Del Rio Man Sentenced for Smuggling More Than 10,000 Rounds of Ammunition into MexicoRead the Press Release
DEL RIO, Texas – A Del Rio man was sentenced in a federal court in Del Rio last week to 57 months in prison with credit for time served for smuggling goods from the United States.
According to court documents, Hugo Medina, 40, was selected for an inspection in the outbound lane of the Del Rio Port of Entry on Sept. 24, 2020. After he elected to not declare any weapons, ammunition or currency over $10,000, Customs and Border Protection officers located a black duffle bag containing small boxes in the trunk of Medina’s vehicle. The officers confirmed that the boxes contained ammunition and took Medina into custody. Following a vehicle inspection scan, officers seized a total of 10,498 rounds of ammunition.
“Transporting ammunition into Mexico is a serious offense,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Along with our law enforcement partners, my office is committed to stopping the supply of dangerous weapons across the border into Mexico.”
“The sentencing sends a clear message to individuals who facilitate the illegal sale and movement of ammunition. Combatting ammunition smuggling is a top priority for Homeland Security Investigations,” said Special Agent in Charge Craig Larrabee for Homeland Security Investigations San Antonio Division. “Through collaborative law enforcement with our federal, state and local partners, we aggressively investigate individuals involved in these activities to prevent the items from falling into the hands of transnational criminal organizations.”
Claudia Veronica Flores, who purchased the ammunition and arranged for it to be smuggled into Mexico, pleaded guilty on Aug. 15, 2022 to conspiracy to smuggle goods from the United States in DR:21-CR-2145. Her sentence hearing is currently scheduled for Dec. 4.
HSI investigated the case.
Assistant U.S. Attorney Izaak Bruce prosecuted the case.
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Defense contractor sentenced to prison for providing fraudulent parts to militaryRead the Press Release
COLUMBUS, Ohio – A California man was sentenced in U.S. District Court in Columbus today to three months in prison for committing crimes related to supplying the military with faulty parts.
Timothy W. Foley, 72, was also ordered to pay restitution of more than $1.3 million.
According to court documents, Foley was the operator and co-owner of Parts Source International Inc. in Goleta, California. Parts Source was a Department of Defense contractor who sold and supplied a variety of military parts to the DoD for use on military weapons systems, and some of which were critical application items, and invoiced the Defense Finance and Accounting Service (DFAS) in Columbus, Ohio, for payment.
Foley admitted that from 2012 through 2019, he conspired to supply non-conforming parts to the DoD. Foley submitted 131 quotes for purchase orders that stated he would provide the exact product as required by the government. Rather, as testing and documents revealed, Foley provided unapproved substitutions in fraudulent packaging rendering them unacceptable for use by the military.
Parts Source received a total of approximately $1.36 million in payments for the parts. Foley pleaded guilty in November 2022 to conspiring to commit wire fraud and to money laundering.
Foley’s co-defendant, Jimmy Daryl Thomas, 52, of White House, Tennessee, was sentenced in May 2023 to two months in prison and three years of supervised release for participating in the wire fraud conspiracy. Thomas assisted Foley in procuring cheaper, non-conforming parts on at least 29 contracts. He also helped provide false packaging and invoices. As part of his sentence, Thomas was ordered to pay more than $219,000 in restitution.
“Behavior such as this, from individuals putting profit over the safety of the dedicated men and women in our military, will not be tolerated,” said U.S. Attorney Kenneth L. Parker. “When we find individuals supplying fraudulent items to the U.S. military, we will address these illegal acts as the serious crimes they are.”
“Protecting the integrity of the U.S. Department of Defense (DoD) supply chain is a priority for the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the DoD Office of Inspector General,” said Patrick J. Hegarty, Special Agent in Charge of the DCIS Northeast Field Office. “The introduction of defective parts into the DoD supply chain endangers the lives of American service members and threatens our military readiness. The DCIS is committed to working with the U.S. Attorney's Office, Southern District of Ohio, the Defense Logistics Agency, and our law enforcement partners to ensure that individuals who engage in fraudulent activity, at the expense of the U.S. military, are investigated and prosecuted.”
U.S. Attorney Parker and Special Agent in Charge Hegarty were joined by the Defense Finance and Accounting Service (DFAS), and Bryant Jackson, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI), in announcing the sentence imposed today by U.S. District Judge Sarah D. Morrison. Assistant United States Attorney Jessica W. Knight and Special Assistant United States Attorney J. Michael Marous are representing the United States in this case.
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Defendant Sentenced to 19 Years in Federal Prison for a Racketeering Conspiracy, Including Two MurdersRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced Demonte Kellum, age 26, of Baltimore to 19 years in federal prison, followed by 5 years of supervised release, for conspiracy to participate in racketeering activity, specifically, his involvement in three armed robberies in 2019, two of which resulted in the murder of the victims.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Acting Commissioner Richard Worley of the Baltimore Police Department.
“This crew’s reign of terror is over. The violent armed robberies committed by Kellum led to the deaths of two victims and suffering by their families, friends and the entire Baltimore community,” said U.S. Attorney Erek L. Barron. “We will continue to use every tool available to aggressively prosecute violent offenders.”
“The reality of guns in Baltimore is that criminals who possess them do so with the intent to use them. It is not just to show off or use as a threat—they are ready and willing to shoot someone without a second thought,” said ATF Special Agent in Charge Toni M. Crosby. “ATF and our law enforcement partners will continue to do everything we can to take these trigger-pullers off the street so the citizens of Baltimore can live more safely.”
According to his guilty plea, from April 2019 to August 2019, Kellum and at least five others were co-conspirators in an enterprise that engaged in a pattern of deadly racketeering activity, including a series of armed carjackings, armed robberies and attempted armed robberies in Baltimore City, as well as the pawning of stolen goods. Members of the enterprise used at least three different firearms to commit the crimes and shared the proceeds of their exploits. The members also used carjacked cars to commit other carjackings and acts of violence.
Kellum admitted that he participated in three armed robberies, specifically, the attempted armed robbery of a victim on July 23, 2019, in the 4900 block of Goodnow Road in Baltimore, during which one member of the conspiracy shot and killed the victim; the armed robbery of a victim on August 1, 2019, in the 2600 block of Talbot Road in Baltimore, during which the conspirators brandished firearms and tied up the victim; and later on August 1, 2019, the attempted armed robbery of a victim in the 5300 block of Fernpark Avenue in Baltimore during which one of the conspirators shot and killed the victim.
As detailed in his plea agreement, the investigations showed that co-conspirators committed eight carjackings and eight additional armed robberies or attempted armed robberies, including two where the victims were shot and a third where the victim was shot and killed.
Co-defendant Karon Foster, age 28 and Rashaud Nesmith, age 22, both of Baltimore, were each sentenced to 40 years in federal prison for their roles in the racketeering enterprise; and Malik Evans, age 25, of Baltimore, was sentenced to 17 years in federal prison. Co-defendant Jamai Wells, age 33, of Baltimore pleaded guilty to the racketeering conspiracy and related charges and is awaiting sentencing. A fifth co-defendant is scheduled to go to trial early next year.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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 make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Erek L. Barron commended the ATF, the Baltimore Police Department, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Patricia C. McLane and Clinton J. Fuchs who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Colorado Man Arrested for Illegally Trafficking Firearms into Washington, D.C.Read the Press Release
WASHINGTON – Federal law enforcement, today, arrested Demarco Diggs, 26, of Aurora, Colorado, for trafficking-in dozens of firearms, including numerous firearms recovered in the Washington, D.C.-area. Diggs is charged by indictment with engaging in the business of dealing in firearms without a license, and illegally transporting firearms. Diggs will have a detention hearing on August 3, 2023 in the District of Colorado.
The charges were announced U.S. Attorney Matthew M. Graves, ATF Special Agent in Charge Craig Kailimai, of the Washington Division, Acting United States Marshal Peter D. Marketos, of the District of Columbia, and Acting Chief Pamela Smith, of the Metropolitan Police Department.
According to the indictment, from on or about June 2021 to March 2023, Diggs engaged in the business of dealing in firearms without a license. The indictment also charges Diggs with illegally transporting firearms into the District of Columbia on or about June and July of 2021. Finally, the indictment seeks forfeiture of over two dozen firearms, as well as corresponding assorted ammunition, from Diggs. Among the firearms recovered, at least one has been linked to a D.C.-area shooting, and was traced back to Diggs as the purchaser.
“This office, along with our law enforcement partners, will use every legal tool at our disposal to combat straw purchasing and choke off the dangerous flow of illegal guns into our city,” said U.S. Attorney Graves. “The message should be clear: unlawfully buying a gun for a prohibited person is a serious federal offense.”
“Today’s announcement sends a clear message that participating in straw purchasing and firearm trafficking related schemes will have consequences. ATF continues to work with our law enforcement partners to ensure those who violate firearm related laws are held accountable,” said ATF Special Agent in Charge Kailimai. “One of our top priorities is to maintain public safety, so that citizens can feel safe in their communities.”
“The United States Marshals Service for the District of Columbia (D/DC) is proud to work with our federal, state, and local partners in a coordinated effort to keep illegal firearms off the streets of Washington, D.C.,” said Acting United States Marshal Marketos. “We are committed to continue our joint efforts to ensure the apprehension of those individuals who engage in the illegal sales and transportation of firearms and other crimes that lead to violence. This apprehension is a perfect example of the lengths to which the United States Marshals Service will go to make our city safer for the community.”
The forfeiture allegations represent the firearms recovered in Washington, D.C. as well as additional firearms recovered from a search of Diggs’s residence, and firearms that Diggs had advertised for sale.
Each charge carries a statutory maximum sentence of five years in prison. The sentence will be determined by the court after considering the advisory Sentencing Guidelines and other factors.
This case was jointly investigation by the Metropolitan Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the United States Marshals Service (USMS), with assistance from ATF Denver Regional Anti-Violence Enforcement Network (RAVEN). It is being prosecuted by Assistant U.S. Attorneys Andy Wang and Matthew W. Kinskey of the Violence Reduction and Trafficking Offenses (VRTO) Section.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Clinical laboratory and owner agree to pay to resolve outstanding judgment for inflated mileage-based lab tech travel allowance feesRead the Press Release
HOUSTON – BestCare Laboratory Services LLC, a now defunct Texas-based company that operated as a clinical laboratory, and its owner and founder, Karim A. Maghareh, have agreed to pay an additional $5.7 million to settle an outstanding False Claims Act judgment against them.
The judgment was entered in 2018 after a court found BestCare knowingly submitted false claims to Medicare, as Maghareh directed, by billing for travel allowance reimbursements that did not reflect the mileage lab technicians had actually traveled when they collected specimens from nursing home residents in Texas.
The settlement announced today is designed to resolve BestCare and Maghareh’s outstanding obligation under the 2018 judgment. The settlement provides for payments totaling $5.7 million and the possibility of additional annual payments for five years based on Maghareh’s future income. These payments are in addition to $789,652 that the United States has already collected since 2018. The settlement amount is based on the Department of Justice’s ability-to-pay policy.
Richard Drummond originally filed the lawsuit in 2008 under the qui tam, or whistleblower, provisions of the False Claims Act. The qui tam provisions allow private parties, called relators, to sue on behalf of the United States individuals or companies they believe have knowingly submitted false claims for government funds. Relators are entitled to receive 15 to 25 percent of any recovery if the United States intervenes in the suit, as it did here in 2011. As part of this settlement, the relator will receive $1,311,000.
“Health care providers that submit inflated reimbursement claims to Medicare waste funds intended to ensure access to vital medical services,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates the Department’s resolve to ensure that those who defraud the taxpayers are held accountable.”
“When the greedy manipulate the Medicare system, it affects us all, especially the elderly,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas (SDTX). “It’s a waste of resources meant to help those in need. This fraudulent scheme adversely impacted our healthcare system because of the inflated costs associated with transporting lab samples. This settlement brings to bear some economic justice, by requiring those that orchestrated the fraudulent scheme to pay for their actions.”
This settlement illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The resolution obtained in this matter was the result of a coordinated effort among the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; SDTX - Affirmative Civil Enforcement Section; and the Department of Health and Human Services, Office of Inspector General. SDTX Assistant U.S. Attorney Elizabeth Karpati and Fraud Section Senior Trial Counsel Andrew A. Steinberg handled the matter.
Clinical Laboratory and Its Owner Agree to Pay an Additional $5.7 Million to Resolve Outstanding Judgement for Billing Medicare for Inflated Mileage-Based Lab Technician Travel Allowance FeesRead the Press Release
BestCare Laboratory Services LLC (BestCare), a now defunct Texas-based company that operated as a clinical laboratory, and its owner and founder, Karim A. Maghareh, have agreed to pay an additional $5.7 million to settle an outstanding False Claims Act judgment against them. The judgment was entered in 2018 after a court found that BestCare knowingly submitted false claims to Medicare, as directed by Maghareh, by billing for travel allowance reimbursements that did not reflect the mileage that lab technicians had actually traveled when they collected specimens from nursing home residents in Texas.
The settlement announced today is designed to resolve BestCare and Maghareh’s outstanding obligation under the 2018 judgment. The settlement provides for payments totaling $5.7 million and the possibility of additional annual payments for five years based on Maghareh’s future income. These payments are in addition to $789,652 that the United States has already collected since 2018. The settlement amount is based on the Justice Department's ability-to-pay policy.
The original lawsuit was filed in 2008 by Richard Drummond under the qui tam, or whistleblower, provisions of the False Claims Act. The qui tam provisions allow private parties, called “relators,” to sue on behalf of the United States individuals or companies they believe have knowingly submitted false claims for government funds. Relators are entitled to receive 15 to 25 percent of any recovery if the United States intervenes in the suit, as it did here in 2011. As part of this settlement, the relator will receive $1,311,000.
“Health care providers that submit inflated reimbursement claims to Medicare waste funds intended to ensure access to vital medical services,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates the department’s resolve to ensure that those who defraud the taxpayers are held accountable.”
“When the greedy manipulate the Medicare system, it affects us all, especially the elderly,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “It’s a waste of resources meant to help those in need. This fraudulent scheme adversely impacted our healthcare system because of the inflated costs associated with transporting lab samples. This settlement brings to bear some economic justice, by requiring those that orchestrated the fraudulent scheme to pay for their actions.”
This settlement illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The resolution obtained in this matter was the result of a coordinated effort among the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Southern District of Texas, Affirmative Civil Enforcement Section; and the Department of Health and Human Services, Office of Inspector General. The settlement was handled by Fraud Section Senior Trial Counsel Andrew A. Steinberg and Assistant U.S. Attorney Elizabeth Karpati for the Southern District of Texas.
This case is captioned United States ex rel. Drummond v. BestCare Laboratory Services LLC and Karim A. Maghareh, Case No. 4:08cv2441 (S.D. Tex.).
SettlementChickasha Man Sentenced to Serve a Decade in Prison for Illegally Possessing a FirearmRead the Press Release
OKLAHOMA CITY – Yesterday, JAMES LANDON MCCULLOUGH, 39, of Chickasha, Oklahoma, was sentenced to serve 10 years in federal prison, the statutory maximum, for illegally possessing a firearm after a prior felony conviction, announced U.S. Attorney Robert J. Troester.
On July 21, 2022, a federal grand jury returned a one-count indictment against McCullough, charging him with being a previously convicted felon in possession of a firearm. On December 5, 2022, McCullough pleaded guilty to the one-count indictment and admitted to possessing a 9mm handgun with an obliterated serial number after a prior felony conviction.
According to public records, on June 16, 2022, law enforcement encountered McCullough during an undercover commercial sex work investigation at an Oklahoma City metro motel. During the investigation, McCullough watched from a nearby balcony as authorities arrested an individual for engaging in commercial sex work. McCullough approached the room where law enforcement had taken the commercial sex worker into custody. He was armed with a firearm at the time and admitted to being a felon.
On Monday, U.S. District Judge Scott L. Palk sentenced McCullough to serve 10 years in federal prison, followed by three years of supervised release. In announcing the sentence, Judge Palk noted McCullough’s lengthy criminal history, including his history involving domestic violence.
Public records reflect McCullough holds multiple felony convictions. These convictions include Burglary in the Second Degree and Domestic Assault and Battery, in Oklahoma County case numbers CF-2014-6247 and CF-2014-6255; Distribution of a Controlled Dangerous Substance – cocaine base and Possession of a Controlled Dangerous Substance in the Presence of a Child Under Twelve Years of Age in Oklahoma County case number CF-2003-2678; Possession of a Controlled Dangerous Substance – cocaine base in Oklahoma County case number CF-2010-230; Possession of a Controlled Dangerous Substance – cocaine in Oklahoma County case number CF-2010-138. McCullough also holds a misdemeanor Domestic Assault and Battery in Oklahoma County case number CM-2012-1096.
This case is the result of investigations by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Oklahoma City Police Department. Prosecuted by Assistant U.S. Attorney Mary E. Walters, the case is part of Project Safe Neighborhoods, a Department of Justice program to reduce violent crime. In October 2017, the Department announced the reinvigoration of Project Safe Neighborhoods and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001.
This case is also part of “Operation 922.” Operation 922 is the Western District of Oklahoma’s implementation of Project Safe Neighborhoods, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. “Operation 922” prioritizes prosecution of federal crimes connected to domestic violence.
For more information about Project Safe Neighborhoods, please visit https://justice.gov/psn and https://justice.gov/usao-wdok.
Reference is made to public filings for more information.
Charleston Man Sentenced to 15 Years in Prison for Drug and Gun CrimesRead the Press Release
CHARLESTON, W.Va. – Mark Bolling, 55, of Charleston, was sentenced today to 15 years in prison, to be followed by five years of supervised release, for possession with intent to distribute fentanyl, possession with intent to distribute 50 or more grams of methamphetamine, being a felon in possession of firearms and ammunition, and illegal possession of a firearm silencer.
A federal jury convicted Bolling of the charges on February 16, 2023, following a three-day trial. Evidence at trial proved that on September 19, 2020, a law enforcement officer in Fayette County conducted a traffic stop of a vehicle driven by Bolling and recovered approximately 100 grams of methamphetamine, 30 grams of fentanyl, a pistol magazine containing .45-caliber ammunition, and $7,000 from the vehicle.
On September 21, 2020, law enforcement officers executed a search warrant at Bolling’s property on Keystone Drive in Charleston and seized a Rock River Arms, model LAR-15, 5.56mm rifle, a Bryco Arms, model 38, .380-caliber pistol, and a Gemtech, Model HALO, 5.56mm silencer.
The silencer was not registered to Bolling in the National Firearms Registration and Transfer Record. Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Bolling was prohibited from possessing firearms and ammunition because of prior felony convictions including possession with intent to deliver methamphetamine on September 30, 2019, and transferring and receiving stolen property on September 24, 2018, both in Kanawha County Circuit Court.
Bolling’s long criminal history also includes prior convictions for being a felon in possession of a firearm, domestic battery, two separate violations of protective orders, battery of an officer, possession of a controlled substance, first-degree burglary and vehicle theft.
“This defendant has persistently committed felonies throughout the majority of his adult life, and his continuing involvement in criminal activity and his possession of firearms pose a risk to public safety,” said United States Attorney Will Thompson. “I commend the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Kanawha County Sheriff’s Office and the Fayetteville Police Department for their excellent work in this case. I also commend Assistant United States Attorneys Nowles Heinrch and Steve Loew and our trial team for securing guilty verdicts on five counts in this case.”
Senior United States District Judge David A. Faber imposed the sentence.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-87.
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Charleston Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Toby Lee Graley, 60, of Charleston, pleaded guilty today to conspiracy to distribute methamphetamine and fentanyl.
According to court documents and statements made in court, since at least June 2022, Graley conspired with several other people to distribute methamphetamine and fentanyl. Graley admitted to obtaining methamphetamine and fentanyl from his supplier and distributed the controlled substances to customers at his Lumari Lane residence in Charleston and other locations within the Southern District of West Virginia. Graley further admitted to arranging drug-related transactions on his cell phone with his supplier and customers. Graley also admitted that he knew several of his customers would redistribute the methamphetamine and fentanyl he sold them.
Graley is scheduled to be sentenced on December 14, 2023, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the U.S. Route 119 Drug Task Force, the West Virginia State Police, the Kanawha County Sheriff’s Office, and the United States Postal Inspection Service (USPIS).
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorneys Ryan A. Keefe and J.C. MacCallum are prosecuting the case.
The case is a result of “Operation Into The Woods,” a 10-month investigation of drug trafficking in Kanawha and Boone counties. Graley and several other individuals have been indicted, and law enforcement seized 120 grams of methamphetamine, four shotguns, and approximately $23,150 from Graley when he was arrested. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2-23-cr-44.
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Catoosa Man Gets 25 years for Shaking 3-Month-Old SonRead the Press Release
TULSA Okla. – A Catoosa man, responsible for physically abusing his 3-month-old son was sentenced today in Federal Court, announced U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Jacob Thomas Shell, 29, to 300 months in federal prison, for child abuse in Indian Country, followed by 5 years of supervised release. Judge Frizzell further ordered Shell to pay more than $6,000 in restitution.
“Jacob Shell forever changed the daily life and future of his three-month old baby,” said U.S. Attorney Clint Johnson. “Child abuse is never acceptable, and with the support of our local law enforcement partners will be aggressively prosecuted. This case should serve as a reminder that parents who feel overwhelmed should seek help.”
According to court documents, On February 12, 2020, Shell, became frustrated after being awakened by the crying of his 3-month-old son. He violently and forcibly shook and threw the child until he stopped crying and was limp. The victim, a citizen of the Choctaw Nation, sustained lifelong injuries and is now physically, developmentally, and cognitively delayed. The child suffered severe visual impairment, forcing him to attend the school for the blind. The child also sustained severe nerve damage, which impacted the child’s physical mobility and use of his right arm. The victim is still undergoing treatment and was in the hospital for a neurosurgical procedure the day Shell was sentenced.
The adoptive parents victim impact statement stated, “Already, by the age of three, our son has spent more time fighting for his life than most people ever will.” They also noted his twin brother is taking on the role of an older brother. Instead of having a same age playmate, he helps and cares for his twin.
The Rogers County Sheriff’s Office and FBI investigated the case. Assistant U.S. Attorney Stephanie Ihler prosecuted the case.