Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
27 July 2023
Arizona man who extorted Georgia Tech sentenced to prisonRead the Press Release
ATLANTA - Ronald Bell has been sentenced to two years and nine months in prison for extorting Georgia Tech. Bell recruited a security guard to falsely claim that the guard witnessed an assault by its basketball coach in exchange for part of the extortion payout he expected to receive from the university.
“Ronald Bell tried to extort Georgia Tech and ruin the reputation of its basketball coach,” said U.S. Attorney Ryan K. Buchanan. “As federal prosecutors, we have a responsibility to the citizens of this district to pursue accountability and justice for crimes of sexual violence. But in this case Bell attempted to exploit the mission of our office, and law enforcement partners, to combat sexual assault through a brazen effort to enrich himself at the expense of Georgia Tech and a member of its staff. Bell has now been held accountable for his crime.”
“Bell sought to severely damage the reputation of the institution and their coach solely for his own financial gain,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This sentence proves that the FBI will not tolerate false allegations and will do everything in our power to seek the truth and hold individuals who commit these type of crimes accountable for their selfish actions.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Ronald Bell pleaded guilty to conspiring with his co-defendant, Jennifer Pendley, and a security guard at Georgia Tech, to extort the university by falsely accusing the coach of the men’s basketball team of sexual assault. Bell recruited the security guard to falsely claim that the guard witnessed an assault by the coach. Bell told the security guard that the false accusation of sexual assault could be worth $20 million to Bell and Pendley and promised the guard a share of the money and a new Jeep.
Bell also communicated with representatives of Georgia Tech and demanded money in exchange for not reporting the fictitious sexual assault. For example, he texted a representative of Georgia Tech that: “This is going to get very ugly. GT has made no effort . . . to amicably resolve this . . . I guess this has to get ugly. I tried to resolve this without damaging GT’s reputation . . . .”
After Georgia Tech refused to pay Bell, Pendley filed a lawsuit claiming sexual battery, sexual assault, and intentional infliction of emotional distress. These claims falsely alleged that the guard witnessed the coach sexually assault Pendley. Ultimately, the security guard admitted that his statements were false and that Bell asked him to lie to support the false sexual assault claim.
Ronald Bell, 57, of Oro Valley, Ariz., was sentenced to two years, nine months in prison to be followed by three years of supervised release. Bell was convicted of the charge of conspiracy on March 1, 2023, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Christopher J. Huber prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Arizona Man Sentenced to 14 Years in Prison for Conspiring to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Susan Lehr announced that Victor Gabriel Gonzalez-Garcia, 52, of San Luis, Arizona, was sentenced today in federal court in Omaha, Nebraska, for Conspiracy to Distribute and Possession with Intent to Distribute Methamphetamine. United States District Court Judge Brian C. Buescher sentenced Gonzalez-Garcia to 14 years’ imprisonment. He was also ordered to serve a five-year term of supervised release as there is no parole in the federal system.
On June 22, 2021, Bartolo Roman-Tapia was arrested after a search warrant of his Omaha residence revealed 28 one-pound packages of crystal methamphetamine and $18,754 in drug proceeds. Investigators learned that Roman-Tapia had received the 28 pounds of methamphetamine on June 19, 2021, at an Omaha gas station. Video surveillance from the gas station showed Roman-Tapia meeting with a passenger of a white Saturn and handing him a black suitcase containing narcotics proceeds. While at the gas station, the driver of the Saturn entered to pay for gas and was identified as Victor Gabriel Gonzalez-Garcia by video from inside the store. The investigation revealed that after leaving the gas station, the occupants of the white Saturn delivered 28 pounds of methamphetamine to Roman-Tapia at a nearby location.
On September 16, 2022, investigators arrested Gonzalez-Garcia who admitted that he was the driver of the white Saturn that delivered methamphetamine to Omaha on June 19, 2021. Gonzalez-Garcia also admitted to transporting loads of narcotics from Phoenix, Arizona to Omaha on several occasions during the last five years.
The $18,754 seized on June 22, 2021, was previously forfeited to the United States as proceeds from narcotics trafficking. Roman-Tapia was sentenced to 151 months’ imprisonment on April 19, 2023.
This case was the result of an investigation by Homeland Security Investigations.
30 Years for Coercion and Enticement of a MinorRead the Press Release
TULSA Okla. – A Broken Arrow man was sentenced to 30 years in prison for Coercion and Enticement of a Minor in Indian Country, announced U.S. Attorney Clint Johnson.
Christopher Dean Dana, 37, pleaded guilty Monday, October 18, 2021.
U.S. Chief District Judge John F Heil III has now ordered Dana to serve 30 years in federal prison followed by a lifetime of supervised release. At the hearing, the court heard from the victim who explained how she has trouble sleeping at night because that is when it all hits her. “I’m scared of what everyone is going to think of me,” she said, and “I’m scared to hang out with guy friends because I don’t know what they’re capable of.”
“Christopher Dana betrayed the trust of this young victim and has caused lasting emotional harm,” said U.S. Attorney Clint Johnson. “My office and our law enforcement partners will diligently prosecute those that prey upon the children in our communities.”
At the time of his plea, Dana, a non-Indian, admitted that when the victim was between seven and 12 years of age, he encouraged her to engage in sexual activity and sexually abused her. When she resisted his advances, Dana would pressure the victim by offering her money.
The victim is a citizen of the Choctaw Nation, and the crimes occurred within the boundaries of the Muscogee Nation reservation.
Dana has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility.
The Broken Arrow Police Department and FBI investigated the case.
Assistant U.S. Attorneys Stacey Todd and Gina Gilmore prosecuted the case.
26 July 2023
华女对以营利为目的的签证欺诈和移民走私计划认罪Read the Press Release
今天早些时候，廖海燕（Haiyan Liao）在布鲁克林的联邦法院对签证欺诈和洗钱指控认罪，因为其参与了旨在将中国公民非法带入美国以谋取经济利益的多年计划。 廖某于2021年1月被起诉。
美国纽约东区检察官布雷昂·皮尔斯（Breon Peace）、司法部刑事司助理司法部长小肯尼斯·A·波利特(Kenneth A. Polite, Jr.)、美国国务院外交安全局（DSS）首席副助理部长兼调查代理副助理主任格雷戈里·巴特曼（Gregory Batman）宣布了此消息。
“向廖支付了过千美元，以助向联邦政府撒谎，将包括无人陪伴的未成年人等个人带入美国，以谋取私利，”美国检察官皮尔斯（Peace）说。“本办公室致力维护法治并保护我们移民流程的完整性。”
“刑事司致力于在法律允许的最大范围内起诉人口走私者和人贩子，”司法部刑事司助理总检察长 小肯尼斯·A·波利特(Kenneth A. Polite, Jr.)说。 “廖的定罪表明，对那些剥削弱势群体谋取个人贪婪的人士追究责任的承诺。”
“外交安全局的全球存在让我们的机构能够充当美国和外国执法机构之间的联络人，协助双方努力制止人口贩运，” DSS 代理副助理调查主任格雷戈里·巴特曼(Gregory Batman)说。 “今天的认罪证明 DSS 在全球的部署如何能够阻止人口贩运的浪潮，并针对捕猎这些受害者的犯罪分子。”
根据法庭文件，已入籍的美国公民、土生土长的中国公民廖某与他人参与一项计划，协助来自中国的非公民非法进入美国。廖透过向美国驻广州领事馆提交包含虚假陈述的申请，以欺诈手段为这些非公民取得旅客签证。对于申请被批准的非公民——包括四名未成年人——廖为他们前往美国提供了便利，包括陪同他们乘坐商业航班飞往约翰肯尼迪国际机场。该等非美国公民及其家人支付了上千美元才能到达美国。由于此计划，廖透过从中国到美国的电汇汇款获取了至少 98,673.72 美元的非法收益。
廖承认了串谋非法将非法移民带入美国以谋取经济利益，最高可判处五年徒刑和洗钱罪，最高可判处20年徒刑。联邦地区法院法官将在考虑美国量刑指南和其他法定因素后确定任何量刑。
DSS 刑事欺诈调查科对此案进行了调查。
纽约东区助理美国检察官诺米·贝伦森(Nomi Berenson)和司法部人权和特别起诉科的审判律师拉米·巴达维(Rami Badawy)正起诉此案。
被告：
廖海燕（Haiyan liao）
年龄： 45
内华达州拉斯维加斯纽约东区法院案卷号：20-CR-500 (SJ)
Youngstown Man Sentenced to 10 years for Selling Drugs and Possessing FirearmsRead the Press Release
CLEVELAND – Daniel May, 29, of Youngstown, Ohio, was sentenced today to 10 years in prison by U.S. District Judge Christopher A. Boyko, after he pleaded guilty to conspiracy to distribute drugs, distributing drugs, and to being a felon in possession of firearms and ammunition. May was ordered to serve 4 years of supervised release following imprisonment and pay a $900 special assessment.
According to court documents and court records, May illegally possessed firearms, sold narcotics and conspired with others to distribute cocaine, cocaine base, heroin, fentanyl, and fentanyl analogues in the Youngstown, Ohio, area. Search warrants executed at houses associated with May resulted in the recovery of four firearms, ammunition, cocaine, cocaine base, heroin, fentanyl, and fentanyl analogues. Also seized was a drug kilogram press and over $10,000.
The investigation was conducted by the Federal Bureau of Investigation (FBI), Youngstown, the Youngstown Police Department, the Boardman Police Department, the Mahoning County Sheriff’s Office, and the Campbell Police Department. This case was prosecuted by Assistant U.S. Attorney Jason M. Katz.
Young man faces life for selling Fentanyl-laced pills causing deathRead the Press Release
CORPUS CHRISTI, Texas – A 21-year-old Corpus Christi man has entered a guilty plea to delivery of Fentanyl resulting in death, announced U.S. Attorney Alamdar S. Hamdani.
Ricardo Julyan Kross Rios aka Kross acknowledged he possessed and delivered a substance containing a detectable amount of Fentanyl (a schedule II controlled substance), the use of which resulted in the death of a person.
On Dec. 10, 2022, authorities responded to a reported drug overdose and discovered a non-responsive individual pronounced dead at the scene. An autopsy later determined the cause of death was acute Fentanyl toxicity.
The investigation led to the discovery that the victim had purchased pills from Rios who then delivered them Dec. 9, 2022, to a parking lot where a party was occurring. The victim consumed them during that event.
Witnesses described the pills as “press made” hydrocodone pills which may have contained Fentanyl.
On Jan. 17, law enforcement encountered Rios at a residence in Corpus Christi in possession of a plastic bag containing “pressed” pills as well as some additional loose powder and partial pills. Laboratory analysis later confirmed the pills and powder in the plastic bag did contain Fentanyl.
As part of his plea, Rios admitted to selling counterfeit “pressed” hydrocodone pills similar those found in his possession on Jan. 17 to the victim on the evening of Dec. 9, 2022.
U.S. District Judge David S. Morales will impose sentencing Oct. 17. At that time, Rios faces a minimum of 20 years and up to life in prison as well as a possible $1 million fine.
The Drug Enforcement Administration led the cooperative law enforcement effort targeting Fentanyl with the assistance of Homeland Security Investigations, Jim Wells County Sheriff’s Office and police departments in Corpus Christi, Aransas Pass and Mathis. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting this case.
Yogibo to Pay $217,000 to Resolve False Claims Act Allegations of Underpaying Customs DutiesRead the Press Release
BOSTON – Yogibo, a New Hampshire-based furniture seller, has agreed to pay $217,832 to resolve allegations that it violated the False Claims Act by failing to pay customs duties on imports from China.
Customs laws require importers to pay duties on the price paid for imported goods, including the cost of quality control testing, product design services, foreign inland freight and more.
Between 2016 and 2022, Yogibo imported goods from a Chinese manufacturer, Leadershow Home Textile Co., Ltd (Leadershow). For each shipment, Leadershow provided Yogibo with two invoices: a commercial invoice listing one price for the goods being imported; and a second invoice (which Yogibo called the “QC Invoice”) that included a separate and additional charge for inland freight from Leadershow to a Chinese port, design services and quality control testing. Yogibo did not provide the QC Invoice to its customs broker for determining duties owed to the United States government on Leadershow imports and instead, only provided the commercial invoice with the lower total price. As a result, the customs broker did not calculate the duties owed based the total cost of the goods, including the additional charges on the QC Invoice.
Under the Department of Justice’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases, the Department of Justice credited Yogibo’s cooperation in this matter.
“Customs laws are intended to, among other things, protect domestic companies from unfair competition,” said Acting United States Attorney Joshua S. Levy. “Our office will deploy the False Claims Act to go after anyone who cheats the system and defrauds the federal government.”
“U.S. Customs & Border Protection is responsible for facilitating lawful international trade while regulating and enforcing hundreds of laws from dozens of federal agencies. Submission of false invoices on imported goods is a serious matter. This scheme involves entities importing goods without paying the U.S. Government the lawful amount of duties owed, creating an unfair advantage over law-abiding American businesses. I am glad that we were able to work with our federal partners to reach a satisfactory settlement to recover these funds,” said Michael McCarthy, Acting Director of Field Operations for U.S. Customs and Border Protection, Boston Field Office.
“Customs fraud is a serious allegation. Yogibo used a system of dual invoicing to circumvent requirements for establishing the proper duty. HSI takes undervaluing products imported into the United States seriously and will continue to protect the integrity of the False Claims Act through the aggressive enforcement of our customs laws,” said Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England.
The settlement stems from allegations originally brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties, known as relators, to bring suit on behalf of the government and to share in any recovery. In connection with today’s announced settlement, the relator will receive 20 percent of the recovery.
Acting U.S. Attorney Levy, CBP Acting Director McCarthy and HSI Acting SAC Krol made the announcement today. Assistant U.S. Attorney Brian M. LaMacchia of the Affirmative Civil Enforcement Unit handled the matter.
US v. Yogibo - Settlement AgreementUtica Man Sentenced for Drug Conspiracy and Possession of Firearms in Furtherance of a Drug Trafficking CrimeRead the Press Release
SYRACUSE, NEW YORK – Matthew Brooks, age 37, of Utica, New York, was sentenced yesterday to serve 108 months (nine years) in federal prison for conspiring to distribute and possess with intent to distribute fentanyl, and possessing firearms in furtherance of a federal drug trafficking crime, announced United States Attorney Carla B. Freedman, Oneida County District Attorney Scott McNamara, and New York State Police Acting Superintendent Steven A. Nigrelli. Brooks was also sentenced to a 5-year term of post-imprisonment supervised release and was ordered to forfeit $3,377.00 in cash, and four firearms.
As part of his previous guilty plea in November 2022, which occurred mid-way through his federal jury trial, Brooks admitted that he sold and packaged fentanyl, used his apartment to distribute fentanyl to customers, rented cars for other members of the conspiracy, and possessed firearms at his residence in connection with the drug conspiracy. New York State Troopers and Utica Police Investigators executed a search warrant at the defendant’s residence on July 30, 2021, seizing 60 bags of fentanyl, $3,377.00 in cash, and four loaded firearms. The search warrant execution followed a complex investigation stretching over several months.
Matthew Brooks was the latest of member of the fentanyl distribution conspiracy to be sentenced:
- Jahari D. Brown, Jr., 23, of Utica, pled guilty to conspiracy to distribute and possess with intent to distribute fentanyl, and distribution and possession with intent to distribute fentanyl. He was sentenced on April 26, 2023, to serve 216 months (18 years) in federal prison, to be followed by a 5-year term of supervised release. He also pled guilty in Oneida County Court to Attempted Murder in the Second Degree, Attempted Assault in the First Degree, Criminal Possession of a Weapon in the Second Degree, Criminal Possession of a Firearm, and Reckless Endangerment in the First Degree, and was sentenced to serve a total of 18 years in state prison and 5 years of post-release supervision. The Federal and New York State sentences are to be served concurrently. Chief Assistant District Attorney Todd C. Carville and Oneida County Executive Assistant District Attorney Grant J. Garramone prosecuted Jahari D. Brown, Jr. in Oneida County Court.
- Kymani K. Minott, 20, of Utica, pled guilty to conspiracy to distribute and possess with intent to distribute fentanyl, and distribution and possession with intent to distribute fentanyl. He was sentenced on July 14, 2022, to serve 60 months in federal prison, to be followed by a 4-year term of supervised release.
- Daequon D. Perkins, 27, of Utica, pled guilty to conspiracy to distribute and possess with intent to distribute fentanyl, and distribution and possession with intent to distribute fentanyl. He was sentenced on November 10, 2022, to serve 33 months in federal prison, to be followed by a 4-year term of supervised release.
- Mark W. Baker, 45, of Utica, pled guilty to conspiracy to distribute and possess with intent to distribute fentanyl, and distribution and possession with intent to distribute fentanyl. He was sentenced on May 18, 2023, to serve 110 months in federal prison, to be followed by a 4-year term of supervised release.
- Melisa Muminovic, 26, of Utica, pled guilty to conspiracy to distribute and possess with intent to distribute fentanyl. She is scheduled to be sentenced on November 1, 2023.
The case was investigated by the New York State Police-Special Investigations Unit (NYSP-SIU) and the Utica Police Department (UPD), assisted by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the New York State Police-Violent Gangs and Narcotics Enforcement Team (NYSP-VGNET). Assistant U.S. Attorneys Matthew McCrobie and Richard Southwick prosecuted the case.
U.S. Attorney’s Office Uses Civil Forfeiture to Recover $273,082.50 for Fraud VictimRead the Press Release
Jackson, Miss. – On July 7, 2023, U.S. District Judge Taylor B. McNeel entered Final Judgment of Forfeiture against all funds held in a Bank First account totaling $273,082.50, announced U.S. Attorney Darren LaMarca. According to the Verified Complaint for Forfeiture in Rem filed by the U.S. Attorney’s Office, the Bank First bank account—opened in February 2023—had been the recipient of fraud proceeds deposited by the perpetrator of a business email compromise scheme (BEC).
“Victims of fraud often feel embarrassed or ashamed that they were victimized, and often fail to report the crime, fearing that they will appear foolish,” LaMarca said. “In reality, it is the perpetrators of the fraud who should be ashamed. Victims should know that people from all walks of life fall victim to criminals using a variety of methods to trick people and steal their money.”
A BEC is a sophisticated scam, often targeting businesses involved in wire transfer payments. The fraud is carried out by compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques. It causes employees of the victim company (or other individuals involved in legitimate business transactions with them) to transfer funds to accounts the scammers control.
The complaint was filed April 27, alleging that on March 30, 2023, an employee of the victim—a law firm—received an email purportedly from one of the firm’s clients, falsely instructing the employee to wire transfer funds owed by the firm to the client. The spoofed email appeared to be from the firm’s client and listed the account to which the funds were to be transferred.
The employee followed the instructions in the fraudulent email and wired funds into the account. A few days later, the perpetrator of the fraud used $250,000 of the funds to purchase a Wells Fargo cashier’s check and withdrew $50,000 in cash. Most of these funds were then deposited into the Bank First account.
After a third-party computer company employed by the law firm investigated the wire transfer, the firm discovered that the wire transfer had been sent to the fraud perpetrator rather than the client and contacted law enforcement.
The victim filed a claim in the civil forfeiture proceeding and filed a subsequent answer, in which it explained that it had been the victim of the fraud scheme. The U.S. Attorney’s Office validated the victim’s claim and asked the Court to enter a Final Judgment ordering the return of the $273,082.50 to the victim and canceling the interests of any other person or entity.
“I want to thank Wells Fargo and Bank First for their cooperation and rapid response which led to a just outcome,” LaMarca said.
The United States Secret Service conducted the investigation. The USAO Asset Recovery Unit team led by AUSA Clay B. Baldwin handled the matter.
Business Email Compromise schemes can be prevented. Here are some tips:
• Independently obtain mortgage payoff statements and confirm with verified and trusted sources.
• Independently verify the authenticity of information included in correspondence and statements.
• Enable Multi-Factor Authentication (MFA) on all email accounts.
• Routinely change passwords.
• Routinely monitor email account access, check for unauthorized email rules and forwarding settings.
• Restrict wire transfers to known and previously verified accounts.
• Pay using checks when the information cannot be independently verified.
• Have a clear and detailed Incident Response Plan.
For more information visit the Secret Service’s Preparing for a Cyber Incident page. To learn more about the Secret Service and efforts to combat Business Email Compromise fraud, please click here.
U.S. Attorney’s Office Providing Overdose Death Investigation Trainings to Law EnforcementRead the Press Release
RALEIGH, N.C. – United States Attorney Michael Easley today announced that the office is offering Overdose Death Investigation Trainings to law enforcement agencies in Eastern North Carolina. Trainings were held earlier this year in Fayetteville and Carteret County. The next training is being held in Northeastern North Carolina on August 2 at the College of the Albemarle in Manteo. An additional training is planned on August 11 at the New Bern Police Department.
“North Carolina reported a 22% increase in overdose deaths in 2021 with more than 4000 people losing their life in a single year, and more than 77% of the deaths likely involving fentanyl,” said Michael Easley. “Given this new and alarming trend, we want to ensure that law enforcement is equipped with the latest tools, technology, and best practices to investigate these overdose deaths and bring charges when appropriate.”
The free two-hour training is only available for law enforcement and will focus on how to investigate overdose deaths and determine when charges may be appropriate. Additional trainings will be offered throughout Eastern North Carolina between now and the end of the year. Law enforcement interested in participating in this training or scheduling a future training can contact Don Connelly at [email protected].
In addition to law enforcement training, the office is also providing outreach and education through its Heroin Education Action Team (HEAT), including educational events in local communities and in schools.
###
Two Supervisors Charged with Federal Crimes in Connection with Beating of 16-Year-Old Resident at Bronx Juvenile Detention CenterRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”), announced today criminal charges against DAQUAN SEYMOUR and RASHAWN WALKER, two supervisors at the Horizon Juvenile Center (“Horizon”), a secure detention center for juveniles located in the Bronx, New York. The charges relate to the April 25, 2022, beating of a 16-year-old resident at Horizon (the “Minor Victim”) and attempt to cover-up the beating. SEYMOUR and WALKER were charged with federal civil rights offenses, including conspiring to deprive the Minor Victim of his constitutional rights and depriving the Minor Victim of his constitutional rights under color of law, as well as filing false reports. SEYMOUR and WALKER were arrested this morning and will be presented in Manhattan federal court later today. The case has been assigned to U.S. District Judge Edgardo Ramos.
U.S. Attorney Damian Williams said: “Today’s charges allege a violent beating and a brazen cover-up by two supervisors at a juvenile detention facility in the Bronx that left a teenage resident seriously injured. Instead of safeguarding the youth that they were entrusted with protecting, Seymour and Walker violently dragged, punched, and stomped on the minor and then took steps to conceal the beating. My Office is committed to protecting the constitutional rights of all New Yorkers, including minors residing at youth detention facilities, and will ensure that those who abuse their authority are held accountable.”
DOI Commissioner Jocelyn E. Strauber said: “Defendants Seymour and Walker, ACS supervisors, had a duty to protect the youth residing in the Horizon Juvenile Center in the Bronx. Instead, they taunted and violently beat a 16-year-old resident, resulting in bodily injuries requiring medical care, and attempted to hide their disturbing misconduct by filing false reports, as alleged in the Indictment. Juvenile residents in custody should never be victimized by those entrusted with their safety. I thank the United States Attorney’s Office for the Southern District of New York for their partnership in this investigation and in our efforts to protect the rights of juveniles in detention centers.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:[1]
On or about April 25, 2022, SEYMOUR and WALKER were employed as Associate Youth Development Specialists at the Horizon Juvenile Center (“Horizon”), a secure detention center for juveniles located in the Bronx, New York, that was operated by the New York City Administration for Children’s Services (“ACS”). Associate Youth Development Specialists at Horizon are responsible for, among other things, supervising other staff members and ensuring the safety of all juvenile residents.
At the time of the beating, the Minor Victim was a 16-year-old pre-trial juvenile resident at Horizon. Following a confrontation between several staff members and juvenile residents at Horizon, including the Minor Victim, SEYMOUR and WALKER violently dragged the Minor Victim by his forearms across the floor of a residential hall and into a private room (the “Room”). Once inside the Room, SEYMOUR and WALKER beat the Minor Victim, striking him repeatedly and forcefully as the Minor Victim lay on the floor. SEYMOUR and WALKER took steps to restrain the Minor Victim, including by pinning down the Minor Victim’s hands. WALKER also stomped on the Minor Victim’s stomach and groin area. Both SEYMOUR and WALKER taunted and directed profanities at the Minor Victim during the beating. As a result of the beating, the Minor Victim suffered bodily injuries, including a deep laceration to his upper lip area, which required the Minor Victim to be transported to a nearby hospital for medical care.
Following the beating of the Minor Victim, SEYMOUR and WALKER attempted to cover up their participation in the beating. In particular, both SEYMOUR and WALKER prepared Horizon incident reports that described the confrontation between Horizon residents and staff members that immediately preceded the assault but failed to disclose that they dragged or physically assaulted the Minor Victim.
* * *
SEYMOUR, 33, of the Bronx, New York, and WALKER, 33, of Queens, New York, are each charged with one count of conspiracy to deprive civil rights, which carries a maximum sentence of 10 years in prison; one count of deprivation of rights under color of law, which carries a maximum sentence of 10 years in prison; and one count of falsification of records, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the efforts of the DOI for their outstanding work on this matter. Mr. Williams also thanked the Special Agents of the U.S. Attorney’s Office for the Southern District of New York for their significant assistance.
The prosecution of this case is being handled by the Office’s Civil Rights Unit in the Criminal Division. Assistant U.S. Attorneys Jamie Bagliebter and Mitzi S. Steiner are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
U.S. v. Seymour and Walker IndictmentTwo Federal Juries Convict Greenville Fraudster of Separate Schemes in JulyRead the Press Release
GREENVILLE, SOUTH CAROLINA — Robin Lee Johnson, 51, of Greenville, was found guilty by a jury of six counts of uttering counterfeit securities. Just two weeks ago, another jury found Johnson guilty of three counts of wire fraud. Senior United States District Judge Henry M. Herlong, Jr., presided over both trials and will sentence Johnson after the United States Probation Office prepares a presentence report. Johnson faces a statutory maximum of ten years on the securities case and 20 years on the wire fraud case.
Evidence presented to the jury during the first trial (July 11-12, 2023) showed that Johnson operated Global Staffing Solutions (“Global”), a business that purported to provide temporary employees to local companies. Johnson sold Global’s accounts receivable, representing money due from providing the temporary employees, to Capital Business Funding, a local factoring company. Factoring is a financial transaction and a type of debtor finance in which a business (Global) sells its accounts receivable to a third party (Capital) at a discount. The invoice factoring company (Capital) seeks to collect on the invoices it has purchased.
It was a part of the scheme that Global did not actually provide temporary employees to multiple businesses; however, Johnson represented to Capital that Global’s accounts receivable were valid and legitimate. Capital received multiple fraudulent emails and other documents from Johnson indicating that the workers had been provided and that Global was due money from Capital based on the factoring arrangement. Before her scheme was uncovered, Johnson obtained $406,289.04 from Capital based on fraudulent documents submitted.
Evidence presented during the second jury trial (July 26, 2023) showed that Johnson obtained and deposited six counterfeit checks totaling $185,533.16. The checks purported to be from National Funding, a lending company based in San Diego, California. Johnson knew of National Funding because she was on its mailing list and received marketing materials with the company’s name, address, and business purpose. The account number on the counterfeit checks belonged to a law firm in Ohio. Johnson deposited four of the counterfeit checks in her Bank of America account and quickly dissipated the stolen funds through large cash withdrawals and transfers to other accounts. Once the fraud was discovered, Bank of America stopped payment of the final two checks (totaling $75,000) and closed Johnson’s account because of fraud.
This case was investigated by the United States Secret Service and the Greenville County Sheriff’s Office. Assistant United States Attorneys Winston Marosek and Bill Watkins prosecuted both cases.
###
Two Brooklyn Men Indicted for Passing over $7,800 in Counterfeit Federal Reserve Notes at Multiple Stores in Tri-State AreaRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Eli Gabriel Lewis, Jr., age 20, of Brooklyn, New York, and Dejuan Smartt, age 26, of Brooklyn, New York, were indicted on June 13, 2023, by a federal grand jury on charges of passing counterfeit Federal Reserve notes and conspiracy. The case was unsealed on July 24, 2023.
According to United States Attorney Gerard M. Karam, the indictment alleges that between February 4, 2023, and February 22, 2023, Lewis and Smartt conspired to pass counterfeit federal reserve notes, including incidents at no fewer than 16 different stores in Pennsylvania and New Jersey. The Indictment further alleges that on six different occasions during the above-described time frame, Lewis and Smartt, either individually or collectively, passed counterfeit $20 Federal Reserve notes to retailers within the Middle District of Pennsylvania.
The matter was investigated by the United States Secret Service, the Pennsylvania State Police, the Mount Joy Police Department, the Northwest Lancaster County Regional Police Department, the Walnutport Police Department, the Manheim Township Police Department, the Kingston Township Police Department, the Upper Macungie Police Department, the Clinton Township (NJ) Police Department, the Snyder County District Attorney’s Office, the Lancaster County District Attorney’s Office, the Hunterdon County Prosecutor’s Office (NJ), and the Luzerne County District Attorney’s Office. Assistant U.S. Attorney James Buchanan is prosecuting the case.
The maximum penalty under federal law for this offense is twenty years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #
Trice Indicted for Kidnapping Resulting in Death and Kidnapping A Minor in Wynter Cole-Smith CaseRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced the indictment of Rashad Maleek Trice, 26, for kidnapping two-year-old Wynter Cole-Smith, resulting in her death and kidnapping a minor. While Trice was charged by criminal complaint on July 7, 2023, to secure his immediate detention, today’s action satisfies the defendant’s constitutional right to federal indictment by a grand jury.
“This indictment marks another step forward as we seek a measure of justice following the heartbreaking loss of Wynter Cole-Smith,” said U.S. Attorney Mark Totten. “My thoughts are deeply with Wynter’s family, and my office is fully prepared to make our case against Mr. Trice at a fair trial.”
Trice is charged with two counts. The first count is kidnapping resulting in death, in violation of 18 U.S.C. § 1201(a)(1). If convicted, the statutory mandatory minimum sentence is life in prison. This offense is also death penalty eligible. The second count is kidnapping of a minor, in violation of 18 U.S.C. §§ 1201(a)(1) and (g)(1). If convicted, the statutory mandatory minimum sentence is 20 years in prison with a maximum possible sentence of life in prison.
"There is no greater responsibility for the FBI than to investigate those who commit senseless acts of violence against young children,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI’s Detroit Field Office. “While today’s indictment cannot erase the pain her family is experiencing, it is the next step in the process of securing justice for Wynter.”
Arraignment and an initial pretrial conference on these charges is scheduled for Monday, August 7, 2023, at 11 a.m. before Magistrate Judge Ray Kent. U.S. Attorney Totten and FBI SAC Devin Kowalski is scheduled to attend the arraignment and will offer brief comments immediately following.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
###
Three men sentenced for drug trafficking in the Eastern PanhandleRead the Press Release
MARTINSBURG, WEST VIRGINIA – Three men were sentenced to federal prison in separate cases for drug trafficking in the Eastern Panhandle.
Cortney Lamar Jenkins, age 34, of Martinsburg, was sentenced to 15 years for a drug charge involving a trafficking operation that sold cocaine, fentanyl, and heroin in Berkeley County over a five-year period. Jenkins acknowledged that the heroin and fentanyl he sold had caused two individuals to overdose. A search of Jenkins’s house and vehicle yielded nearly $20,000 in cash, cocaine, marijuana, THC cartridges, and drug paraphernalia. Jenkins has six prior drug trafficking convictions, including a prior federal drug trafficking conviction, with a criminal history that spanned over twenty years.
Randy Stephen Humphrey, age 35, of Martinsburg, was sentenced to 12 and half years in federal prison after pleading guilty to a possession with intent to distribute cocaine hydrochloride. Humphrey worked with others to sell hundreds of grams of cocaine in Berkeley County. The investigation revealed that Humphrey transported cocaine from New York to Martinsburg and hid proceeds from the drug sales in another’s bank account. Humphrey has an extensive criminal history that includes drug trafficking and illegal firearms.
Glenn Caj’mere Civo Watlington, III, also known as “Chris,” age 29, of Parkville, Maryland, was sentenced to 6 years in prison for a drug conspiracy charge. Watlington worked with others to sell cocaine, cocaine base, heroin, and fentanyl in Jefferson and Berkeley Counties. During the course of the investigation, officers seized drugs, firearms, ammunition, and thousands of dollars in cash. Watlington has a criminal history including drug trafficking, firearms, and violence.
The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated the cases. Agencies include the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the West Virginia State Police Bureau of Criminal Investigations; the Berkeley County Sheriff’s Office; the Jefferson County Sheriff’s Office; the Martinsburg Police Department; the Ranson Police Department; and the Charles Town Police Department.
The Humphrey case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the cases on behalf of the government.
U.S. District Judge Gina M. Groh presided.
Threats Made to VA and Medical Center Employees Sends Noble, LA Man to Federal PrisonRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that Aaron Wade Knight, 31, of Noble, Louisiana, has been sentenced for making threats of violence against employees with the Sabine Medical Center (SMC) and the Veterans Administration (VA). Knight was convicted in February 2023 by a federal jury in Shreveport.
Knight was sentenced yesterday by United States District Judge Elizabeth E. Foote to 27 months in prison, followed by 3 years of supervised release for making these threats of violence. The charges Knight was convicted of stem from incidents which both occurred on June 1, 2022, when he made threats of violence against employees of the SMC in Many, Louisiana, and the VA in Shreveport and Alexandria. The first incident occurred in the morning hours of June 1 when Knight, who was living in Virginia at the time, called the VA hot line in Alexandria and spoke to a nurse who was working the call center. Knight proceeded to tell the nurse that he was upset about a bill he had received for a hospital visit a few weeks earlier at the SMC. As the conversation continued, Knight became more agitated and made the comment to her, “What do I need to do, do I need to blow up this place to get some help?” Out of concern about the threatening comments Knight made to her, the nurse contacted a patient advocate with the VA in Shreveport who had worked with Knight before.
The patient advocate then contacted Knight out of concern about the comments he had made moments earlier to the nurse. During the phone call, Knight became angry with the patient advocate and began to shout and made the following threatening statement to her, “do I need to go up there and shoot these motherf***rs in the f***ing face.”
The case was investigated by the Federal Bureau of Investigation and Many Police Department and prosecuted by Assistant U.S. Attorneys J. Aaron Crawford and Andrew Weber.
# # #
Thoroughbred Racehorse Trainer Jason Servis Sentenced to Four Years in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that defendant JASON SERVIS was sentenced to four years in prison today for his role in a years-long scheme in which horses trained by SERVIS were doped with approved and unapproved drugs designed to improve the performance of SERVIS’s racehorses, in connection with the charges filed in United States v. Navarro et al., 20 Cr. 160 (MKV). SERVIS was one of over 30 defendants charged in four separate cases in March 2020, each arising from this Office’s multi-year investigation of the abuse of racehorses through the use of performance enhancing drugs (“PEDs”).
U.S. Attorney Damian Williams said: “Today’s sentence sends a clear signal to those in the racehorse industry that no one is above the law. Endangering the welfare of animals for profit will not be tolerated. Illegally doping racehorses is a serious crime that will be met with a serious sentence.”
According to the allegations contained in the Superseding Indictment, the Superseding Information charging SERVIS, prior charging instruments, other filings in this case, and statements during court proceedings:
The charges in the Navarro case arose from an investigation of widespread schemes by racehorse trainers, veterinarians, PED distributors, and others to manufacture, distribute, and receive adulterated and misbranded PEDs and to secretly administer those PEDs to racehorses competing at all levels of professional horseracing. By evading PED prohibitions and deceiving regulators and horse racing officials, participants in these schemes sought to improve race performance and obtain prize money from racetracks throughout the United States and other countries, including in New York, New Jersey, Florida, Kentucky, and Saudi Arabia, all to the detriment and risk of the health and well-being of the racehorses. Trainers who participated in the schemes, like SERVIS, stood to profit from the success of racehorses under their control by earning a share of their horses’ winnings and by improving their horses’ racing records, thereby yielding higher trainer fees and increasing the number of racehorses under their control.
SERVIS obtained hundreds of bottles of the drug “SGF-1000,” which was compounded and manufactured in unregistered facilities and contained growth factors that the defendant believed to be undetectable through regular drug screens. Virtually all the horses in SERVIS’s barn received that drug, including the thoroughbred racehorse “Maximum Security,” who crossed the finish line first at the 2019 Kentucky Derby. SGF-1000 was an intravenous drug promoted as, among other things, a vasodilator capable of promoting stamina, endurance, and lower heart rates in horses through the purported action of “growth factors.” SERVIS approved veterinary bills to racehorse owners that contained concealed charges for SGF-1000, which were falsely billed under the line item “Acupuncture & Chiropractic.” In September 2019, the New York State Gaming Commission released an advisory stating that SGF-1000 was prohibited under the racing rules and had been prohibited since 2012. SERVIS continued to allow the administration of that drug on the horses he trained up until his arrest in March 2020.
SERVIS-trained horses were also regularly administered the prescription drug “Clenbuterol” with no valid prescription, which was part of a deliberate effort to conceal that conduct from racing regulators and avoid mandatory reporting requirements.
SERVIS further obtained and transported a misbranded version of “Clenbuterol,” which he obtained from convicted co-defendant JORGE NAVARRO.
* * *
In addition to the prison term, SERVIS, 65, of Jupiter, Florida, was sentenced to one year of supervised release and ordered to pay $311,760 in forfeiture, $163,932 in restitution, and a $30,000 fine.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation New York Field Office’s Eurasian Organized Crime Task Force and its support of the Bureau’s Integrity in Sports and Gaming Initiative. Mr. Williams also thanked the Food and Drug Administration and Customs and Border Protection for their assistance and expertise.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorney Sarah Mortazavi is in charge of the prosecution.
Tacoma man sentenced to 5+ years in prison for persistent fentanyl trafficking while illegally possessing firearmsRead the Press Release
Tacoma – A Tacoma man was sentenced today in U.S. District Court in Tacoma to 66 months in prison and three years of supervised release for dealing fentanyl while armed with a handgun, announced Acting U.S. Attorney Tessa M. Gorman. Peter Darnell King, 24 was arrested in September 2022, following a joint operation between the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Tacoma Police Department (TPD). At today’s sentencing hearing, Chief U.S. District Judge David G. Estudillo said, “Controlled substances, including fentanyl, as in this case, have had a huge impact on the community. Quite literally, they are killing people.”
“Peter King contributed to the addiction and violence plaguing the most dangerous street in Tacoma by regularly dealing fentanyl out of his hotel room on Hosmer Street,” said Acting U.S. Attorney Gorman. “He was arrested three times within 11 days, each time with fentanyl and a gun, and each time he immediately returned to trafficking a deadly drug when he was released from custody.”
According to records filed in the case, in May 2022, law enforcement learned of King’s drug dealing activity and began an investigation. ATF conducted undercover buys of fentanyl pills from King at his apparent residence, the Econo Lodge motel on South Hosmer Street. In July 2022, King was arrested by Tacoma Police officers who encountered him in the parking lot of a Home Depot store. He had nearly 1,000 fentanyl pills and a firearm was observed in his vehicle. The following day, after his release from custody, Lakewood Police contacted King at a gas station near the Tacoma Mall because his car appeared to have no license plates. King became agitated and was taken into custody – he had over 100 fentanyl pills and a firearm in his pockets.
The third arrest last summer was August 6, 2022, when King was found asleep in his car while a young toddler played unrestrained in the front passenger seat. King had a loaded firearm in his lap and 182 fentanyl pills in a coin purse at his waist.
ATF conducted a series of undercover operations at the Econo Lodge in mid-August, during which King was seen numerous times engaging in drug trafficking behavior. The final arrest was on September 7 in a joint operation by ATF and the Tacoma Police Department. Officers executed a search warrant at the Econo Lodge, during which they seized three firearms, body armor, ammunition, and fentanyl.
King pleaded guilty in April 2023 to Possession of Controlled Substances with Intent to Distribute and Possession of a Firearm in Furtherance of a Drug Trafficking Offense.
In asking for a nine-year prison sentence Assistant United States Attorney Kristine Foerster wrote to the court, “Firearm possession, particularly in connection with drug trafficking, puts the community at significant risk. Every time King was stopped by police and found with distribution levels of fentanyl in the summer of 2022, he also had a gun. When Tacoma Police took one firearm, he had a new one days later. And King did not just keep a firearm at his hotel room, he carried guns with him and his drug stash as he moved throughout the community. He also kept both fentanyl and firearms in reach of his small child, as seen in August and September of 2022. A substantial prison sentence is necessary to not only punish King but to protect the public.”
The case was investigated by ATF and the Tacoma Police Department.
The case is being prosecuted by Assistant United States Attorney Kristine Foerster.
St. Peters Woman Admits $100,000 Pandemic FraudRead the Press Release
ST. LOUIS – A woman from St. Peters, Missouri on Wednesday admitted defrauding a pandemic-era loan program out of $100,927.
Francheska D. Reese, 36, pleaded guilty in U.S. District Court in St. Louis to one count of wire fraud. She admitted that between March 30, 2020, and at least Jan. 24, 2023, she devised a scheme to defraud a Paycheck Protection Program lender. Reese submitted a fraudulent PPP loan application for 1st Stop Child Development Center LLC on Jan. 21, 2021. 1st Stop had never filed federal income or employment tax returns since it was registered with the Missouri Secretary of State’s Office by Reese in September of 2018. But Reese falsely claimed her company employed seven full-time employees who were paid a total of $40,371 per month. She also falsely claimed that she would use the loan, which was intended to save businesses during the pandemic, on payroll, rent, mortgage interest and utilities.
She transferred the $100,927 loan into her personal account and spent the money on personal retail and car expenses, among other things, her plea agreement says.
At her sentencing October 25, Reese could face up to 20 years in prison, a fine of up to $250,000 or both prison and a fine. She will also be ordered to repay the money.
The U.S. Secret Service investigated the case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.
Anyone with information about pandemic fraud should call the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or report via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
St. Clair County Felon Sentenced to 51 Months on Gun ChargesRead the Press Release
ST. LOUIS – U.S. District Judge Stephen R. Clark on Wednesday sentenced a convicted felon from Cahokia Heights, Illinois to 51 months in prison for possessing a pistol converted into a machine gun at a St. Louis, Missouri hotel.
On Dec. 9, 2021, St. Louis Metropolitan Police Department officers caught Henry Miller with a 9mm Glock pistol that had been modified with a device, sometimes referred to as a Glock “switch,” that converted it into a fully automatic weapon. The Glock had a 29-round extended magazine. A 17-round magazine was also in the satchel.
Police had been summoned to the hotel after Miller rented a room using a stranger’s credit card information. Later in the day, police found him in the lobby with a blue satchel containing the Glock and a backpack that contained 300 grams of marijuana, a digital scale, $2,889 in cash and another conversion device. The Glock conversion device alone, even if not attached to a weapon, is a machine gun under federal law. There has been a dangerous increase in the devices being used and found in the St. Louis area and around the country.
Miller later admitted knowing that the Glock had been modified and admitted testing it to see if it worked.
Miller, 33, pleaded guilty in February to a charge of being a felon in possession of a firearm and possession of one or more machine guns.
The St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Jennifer Szczucinski is prosecuting the case.
South Carolina Man Charged with Sex Trafficking of Four Victims, including a MinorRead the Press Release
FLORENCE, SOUTH CAROLINA — A federal grand jury in Florence returned an indictment charging a South Carolina man with three counts of sex trafficking by force, fraud or coercion, one count of sex trafficking of a minor, two counts of interstate travel in aid of racketeering and one count of obstructing a sex trafficking investigation.
According to the indictment, between August 2019 and August 2020, Aaron T. Simmons, 26, of Greenville, used force, threats of force and coercion to compel three adult women to engage in commercial sex. The indictment also charges Simmons with sex trafficking of a minor victim.
Simmons will make his initial court appearance before a U.S. Magistrate Judge in the District of South Carolina. It is initially scheduled for July 28. If convicted of sex trafficking by force, fraud, or coercion, Simmons faces a minimum penalty of 15 years in prison and up to life in prison. If convicted of sex trafficking of a minor, Simmons faces a minimum penalty of 10 years in prison and up to life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Adair F. Boroughs for the District of South Carolina and Special Agent in Charge Steven J. Jensen of the FBI Columbia Field Office made the announcement.
The Greenville Police Department and the FBI Greenville Field Office investigated the case.
Assistant U.S. Attorney Carrie Fisher Sherard for the District of South Carolina and Trial Attorney Francisco Zornosa of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
The FBI is asking anyone with information about Aaron Simmons to contact the FBI Columbia Field Office at (803) 551-4200. If you or someone you know is a victim of human trafficking, please call the National Human Trafficking Hotline at (888) 373-7888.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
South Bend Man Sentenced to 120 Months in PrisonRead the Press Release
SOUTH BEND – Tyler Crawford, 32 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Robert L. Miller, Jr. after pleading guilty to possession with intent to distribute 50 grams or more of methamphetamine, announced United States Attorney Clifford D. Johnson.
Crawford was sentenced to 120 months in prison followed by 5 years of supervised release.
According to documents in the case, in January 2023 police officers attempted to pull over Crawford’s car, but instead of complying, he fled at a high rate of speed. During the pursuit, Crawford threw bags of methamphetamine and a loaded handgun out of the car. Officers recovered the methamphetamine, which totaled over 150 grams along with the firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the South Bend Police Department. This case was prosecuted by Assistant United States Attorney Joel Gabrielse.
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.
###
Smoke Shop Owner Who Fled to Brazil in 2014 Sentenced to 20 Years in Federal Prison for Selling K2Read the Press Release
A man who sold K2 from a smoke shop in Cedar Rapids, Iowa, and who fled the country in 2014 after being charged with federal drug crimes was sentenced July 25, 2023, to 20 years in federal prison.
Mohammad Al Sharairei, age 47, previously from Cedar Rapids, Iowa, received the prison term after a September 12, 2022 jury verdict finding him guilty of one count of maintaining a premises for the distribution of controlled substance analogues and one count of conspiring to distribute controlled substance analogues.
The evidence at trial showed that in 2012 and 2013, Al Sharairei and his wife owned and operated a smoke shop on First Avenue in Cedar Rapids called Puff N Stuff II. During June 2013, federal agents raided Puff N Stuff II and seized thousands of packets of K2 which were labeled as “novelty items,” “potpourri,” and “incense” and contained a warning that the products were “not for human consumption.” Some names of the “potpourri” products were Bizarro, Grave Digger, Lights Out, and Mega Kush. The substances in the packages were determined to contain synthetic cannabinoids called PB‑22 and 5F‑PB‑22. Trial evidence showed that these synthetic cannabinoid substances are far more potent than marijuana and have been associated with severe psychological and physical effects, including death. Trial evidence showed that, despite labeling the products as “not for human consumption” and having a store policy that customers could not talk about smoking the products, Al Sharairei himself smoked the “incense.”
Evidence at sentencing showed that, even after the June 2013 DEA raid of his business, Al Sharairei continued selling synthetic cannabinoids. In August 2013, Al Sharairei and his wife called the police to report a theft of synthetic cannabinoids from a vehicle at their Cedar Rapids residence. When responding police informed Al Sharairei that they would be calling DEA to seize the rest of the synthetic cannabinoid products in the vehicle, Al Sharairei declared that he did not care if they took it, and that he had already ordered another shipment that would be on the way. Trial evidence also showed that after Al Sharairei was charged and appeared in federal court, he fled the country in 2014 prior to a scheduled hearing. He remained a fugitive until he was extradited back to the United States from Brazil.
Seized store records from Puff N Stuff II showed that between January 2012 and June 26, 2013, the store had sold over $1.3 million in synthetic cannabinoid products. At sentencing, the judge found that Al Sharairei was responsible for over 78 kilograms of synthetic cannabinoids. The sentencing judge commented that Al Sharairei’s actions were “brazen” and that his business selling synthetic cannabinoids in packaging labeled “not for human consumption” was “a total scam.”
Al Sharairei was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Al Sharairei was sentenced to 240 months’ imprisonment on each count, to run concurrently. He also was ordered to forfeit $425,000 in drug proceeds. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Al Sharairei is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force, the Internal Revenue Service, and the Department of Homeland Security, Homeland Security Investigations. The DEA Task Force consists of the DEA, the Linn County Sheriff's Office, the Cedar Rapids Police Department, the Marion Police Department, and the Iowa Division of Narcotics Enforcement. The case is being prosecuted by Assistant United States Attorney Dan Chatham and Special Assistant United States Attorney Adam Vander Stoep.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 14‑CR‑63‑LTS‑MAR.
Shreveport Man Sentenced for Illegally Possessing Loaded Firearms at His ResidenceRead the Press Release
SHREVEPORT, La. – Roderick Agnes, 42, of Shreveport, Louisiana, has been sentenced in U.S. District Court, announced United States Attorney Brandon B. Brown. United States District Judge Elizabeth E. Foote sentenced Agnes to 112 months (9 years, 4 months) in prison, followed by 3 years of supervised release, for possession of firearms and ammunition by a convicted felon and in furtherance of a drug trafficking crime.
According to evidence presented to the court, law enforcement officers executed a search warrant at a house on State Street in Shreveport, Louisiana on May 27, 2022. Agnes lived at the home and was present when the search occurred. Inside the master bedroom of the residence, law enforcement agents located a loaded Taurus pistol, model: PT1911, caliber: 45 containing seven rounds of ammunition; a loaded Century Arms pistol, model: Canik TP9, caliber: 9mm containing 12 rounds of ammunition; a Maverick Arms shotgun, Model: 88, caliber: 12 gauge; approximately 4 ounces of cocaine hydrochloride; digital scales; and over $2,000 in cash.
The suspected cocaine was submitted to the crime lab for testing and the results confirmed the substance was in fact cocaine hydrochloride. Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) examined the recovered firearms and found all three firearms to be operable. In addition, agents determined that all three firearms traveled in interstate commerce. Agnes pleaded guilty to the charges on December 6, 2022.
Agnes is a convicted felon, having previously been convicted of Possession of a Schedule II Controlled Dangerous Substance in Caddo Parish in 2005. At the time he possessed the Taurus pistol, the Century Arms pistol, the Maverick Arms shotgun, and the ammunition on or about May 27, 2022, Agnes knew that he had previously been convicted of a felony crime and was prohibited from possessing any firearm or ammunition.
The case was investigated by the U.S. Drug Enforcement Administration (DEA) and ATF and prosecuted by Assistant U.S. Attorney Jessica D. Cassidy. This effort is part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
# # #
Shiprock Man Sentenced to 15 Years in Prison for Drug and Firearms OffensesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced today that Jason E. Begay was sentenced to 15 years in prison. Begay, 42, of Shiprock, an enrolled member of the Navajo Nation, pleaded guilty on Jan. 24 to possession with intent to distribute 50 grams of methamphetamine, felon in possession of a firearm and ammunition, possession with intent to distribute 500 grams and more of a mixture and substance containing methamphetamine, using and carrying a firearm during and in relation to a drug trafficking crime, possessing a firearm in furtherance of such crime and being a felon in possession of a firearm and ammunition.
According to court records, on January 23, 2023, Begay admitted that on November 14, 2022, he was found by Navajo Nation Police Department officers in a vehicle with a black handgun, and multiple plastic bags with methamphetamine. The total weight of the plastic bags was 6.8 pounds. Begay admitted to having the firearm in furtherance of drug trafficking. Begay also admitted to being a convicted felon who knew that it was not lawful to possess a firearm or ammunition.
Upon his release from prison, Begay will be subject to 5 years of supervised release.
FBI investigated this case with assistance from the Navajo Nation Police Department. Assistant United States Attorney Robert James Booth II is prosecuting the case.
# # #
23-162
Several convicted in $16 million cartel drug conspiracyRead the Press Release
LAREDO, Texas – A total of 22 people in South Texas and Mexico have pleaded guilty for their roles in a conspiracy to transport large quantities of marijuana for Cartel del Noreste (CDN), announced U.S. Attorney Alamdar S. Hamdani.
Laredoan Joe David aka JD Moreno, 34, pleaded guilty to conspiracy to possess with intent to distribute 1,000 kilograms or more of marijuana.
Throughout the course of the investigation, authorities seized over 35,000 pounds (approximately 17.5 tons) of marijuana valued at approximately $16.4 million.
Moreno admitted to purchasing a utility truck used to transport numerous loads of marijuana throughout Laredo. He coordinated several narcotic smuggling transactions, paid co-conspirators for their involvement and reported directly to cartel leaders in Mexico.
This investigation revealed a complex conspiracy which began in February 2019 and continued through April 2020. Authorities ultimately apprehended Moreno on March 25, 2022, in Monterrey, Mexico.
U.S. District Judge Diana Saldana will impose sentencing at a later date. At that time, Moreno faces up to life in federal prison and possible $10 million maximum fine.
A total of 21 other conspirators previously pleaded guilty for their respective roles in transporting narcotics on behalf of CDN.
Moreno has been and will remain in custody pending sentencing.
The Drug Enforcement Administration and the Laredo Police Department conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Marshals Service; Border Patrol; Customs and Border Protection; FBI; Homeland Security Investigations; U.S. National Guard; Webb County District Attorney’s Office, Sheriff’s Office and Constable’s Office Precincts 1 and 4; Texas Department of Public Safety; and the Blue Indigo Task Force. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorneys Jennifer Day and Francisco Rodriguez are prosecuting this case.
San Francisco Man Charged with Stealing More Than $340,000 in Section 8 Housing BenefitsRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco indicted Gregory Finkelson with conspiracy, theft of government property, and money laundering, announced United States Attorney Ismail J. Ramsey, Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp, United States Department of Housing and Urban Development (HUD) Office of the Inspector General (OIG) Special Agent in Charge Mark Kaminsky, and IRS-Criminal Investigation Special Agent in Charge Darren Lian of the Oakland Field Office.
According to the indictment, between August 2006 and February 2020, Finkelson, 63, of San Francisco, stole approximately $341,455 in Section 8 rental assistance by hiding from housing authorities his true income, his ownership interest in the house where he lived and for which he received Section 8 vouchers, and the fact that he was the owner and president of a company called American Corporate Services (ACS) – all to qualify for and receive Section 8 benefits. For example, Finkelson reported to housing authorities that from 2015 to 2017 he earned $12,000 per year working as a notary public for ACS. In fact, Finkelson was the president and sole owner of ACS, a company that earned $2.8 million in gross income between 2013 and 2018.
The Section 8 program, funded by HUD, is a rent subsidy program that helps low- and moderate-income families obtain housing. To qualify for Section 8 assistance, families must have an income no higher than 80% of the area medium income. Further, to be eligible, a tenant cannot have an ownership interest in their rental unit, and tenants must accurately report their income and assets. In San Francisco, the San Francisco Housing Authority (SFHA) administers the Section 8 program for HUD.
Finkelson, according to the indictment, worked with a coconspirator in Russia to hide the fact that he owned the house where he lived. Finkelson also established numerous bank accounts in his coconspirator’s name or in the name of both Finkelson and his coconspirator to conceal the fact that he received and controlled the Section 8 payments rather than a separate landlord. In addition, Finkelson subdivided the single-family home where he lived into three units. Finkelson lived in one unit, his business operated out of a second unit, and Finkelson rented out a third unit. Finkelson caused rent payments from all three units to be funneled into accounts that he controlled, and Finkelson paid personal expenses out of those accounts using rental income. For example, from January 2018 to February 2020, at Finkelson’s direction, SFHA direct deposited Section 8 funds into a Wells Fargo Bank account. Finkelson paid personal expenses with Section 8 funds from that account and transferred funds, including Section 8 payments for his home, to his business, ACS. According to the indictment, Finkelson made payments toward a vacation timeshare in Maui, Hawaii, in part with Section 8 funds designed to help low- and moderate-income families rent decent housing.
In sum, the indictment charges Finkelson with conspiracy, in violation of 18 U.S.C. § 371; theft of government property, in violation of 18 U.S.C. § 641; and three counts of money laundering, in violation of 18 U.S.C. § 1956(a)(1)(B)(i).
Finkelson’s initial appearance in San Francisco federal court has not yet been scheduled.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Finkelson faces a maximum sentence of 5 years in prison, and a fine of $250,000, plus restitution, if appropriate, for a violation of 18 U.S.C. § 371; 10 years in prison, and a fine of $250,000, plus restitution, if appropriate, for a violation of 18 U.S.C. § 641; and 20 years’ in prison, a fine of $500,000 or twice the value of the laundered funds, plus restitution, if appropriate, for each violation of 18 U.S.C. § 1956(a)(1)(B)(i). The court also may order an additional term of supervised release to begin after a prison term as part of any sentence. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office. Assistant U.S. Attorney Christiaan Highsmith is prosecuting the case, with the assistance of Elizabeth Kim. The prosecution is the result of an investigation by the FBI, HUD-OIG, and IRS-CI.
Russian National Pleads Guilty to Wire FraudRead the Press Release
KANSAS CITY, Mo. – A Russian National has pleaded guilty in federal court to conspiracy to commit wire fraud.
Anton Vikharev, 31, pleaded guilty before U.S. District Judge Roseann Ketchmark to one count of conspiracy to commit wire fraud.
Between on or about January 2015 and continuing through March 1, 2018 Vikharev and others engaged in a scheme to defraud the United States by filing false and fraudulent federal income tax returns using stolen identities.
Tax returns claimed fraudulent refunds, which were deposited into bank accounts defendants controlled. The proceeds from the fraudulent refunds were withdrawn from ATMs in cash, deposited into other bank accounts, and wired to bank accounts in Russia. In this scheme, 7,167 false and fraudulent tax returns were filed for tax years 2011- 2016. The returns claimed $11,178,361 in fraudulent refunds. The Internal Revenue Service paid at least $2,020,569 in fraudulent tax refunds. Conspirators wire transferred at least $1,411,082 to bank accounts in Russia.
As part of his plea agreement, Vikharev will be required to pay restitution.
Under federal statutes, Vikharev is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes only, as the sentence of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the Internal Revenue Service-CI.
Rural Alaska Man Sentenced to 12 Years in Prison for Sexually Abusing a MinorRead the Press Release
ANCHORAGE, Alaska – A man from a rural Alaskan village was sentenced July 18, 2023, to over 12 years in prison for sexually abusing a minor.
According to court documents, Melvin Andrew, 44, pleaded guilty to one count of coercion and enticement of a minor.
Court documents say Andrew sexually abused a 14-year-old girl over the course of 10 months, with abuse taking place at least once a week. The defendant engaged in physical sexual abuse and requested sexually explicit images from the minor via text message.
“Individuals who target Alaska’s most vulnerable will be held accountable for their destructive actions,” said U.S. Attorney S. Lane Tucker of the District of Alaska. “Mr. Andrew’s actions have caused immense damage, and our office will continue to dedicate time and resources to identifying and prosecuting these cases on behalf of victims of abuse.”
“The defendant’s predatory behavior involved the repeated sexual abuse of a minor – a heinous crime that must be met with consequences,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “The FBI, the U.S. Attorney’s Office, and our partners remain steadfast in our commitment to protect Alaska’s youth from predators, no matter where they lurk.”
The FBI’s Anchorage Field Office and the Alaska State Troopers investigated the case.
Assistant U.S. Attorney Seth Brickey prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
###
Pittsburgh Resident Pleads Guilty to Charges of Robbery, Brandishing and Discharging a Firearm During a Crime of Violence, and Possession of a Firearm by a Convicted FelonRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, pleaded guilty in federal court to charges of robbery, brandishing and discharging a firearm during a crime of violence, and possession of a firearm by a convicted felon, United States Attorney Eric G. Olshan announced today.
Eric Lee Jones, age 34, of Pittsburgh, PA pleaded guilty to 7 counts before United States District Judge Christy Criswell Wiegand.
In connection with the guilty plea, the court was advised that Jones robbed or attempted to rob four Allegheny County businesses in March 2022. On March 6, 2022, Jones robbed the Fox’s Pizza in Oakmont. During that robbery, Jones shot the owner of the restaurant, who was working at the time, several times in the chest, stomach, and legs. The owner survived, but was seriously injured. On March 10, 2022, Jones robbed the Sunoco on Hulton Road in Verona, and pointed a gun at the head of an employee as he did so. On March 15, 2022, Jones attempted to rob the Family Dollar on Frankstown Avenue in Pittsburgh, and during the attempted robbery he brandished a pistol, and fired it one time in the store. Less than 30 minutes later, Jones attempted to rob the Edgewood Avenue Express on Edgewood Avenue. During this last attempted robbery, Jones shot the owner of the Edgewood Avenue Express once, and attempted to shoot him again but Jones’ pistol malfunctioned. Fortunately, the storeowner was not seriously hurt.
Judge Wiegand scheduled sentencing for November 29, 2023 at 10:00 a.m. The law provides for a mandatory minimum sentence of at least 17 years and a maximum sentence of life, a fine of $1,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that the defendant remain detained.
Assistant United States Attorney Doug Maloney is prosecuting this case on behalf of the government.
The successful investigation and prosecution was based on significant and timely interagency cooperation between the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Allegheny County District Attorney’s Office, the Allegheny County Police Department, the Penn Hills Police Department, the Pittsburgh Bureau of Police, as well as the Oakmont and Edgewood Police Departments.
Owner of Brighton-Based Physical Therapy Clinic Sentenced to Three Years in Prison for Fraud SchemeRead the Press Release
BOSTON – A Boston woman was sentenced today in federal court in Boston for her role in a scheme to defraud multiple insurance providers for physical therapy services that were not provided to patients.
Gyulnara Bayryshova, 57, was sentenced by U.S. District Court Judge Richard G. Stearns to three years in prison and two years of supervised release. Bayryshova was also ordered to pay restitution of $7,383,756 and forfeiture of $7,834. In April 2023, Bayryshova pleaded guilty to one count of conspiracy to commit mail fraud. Bayryshova was indicted in February 2021 along with co-defendants Anna Barenboym, Slava Pride and Raya Bagardi.
Bayryshova was the owner of Brighton Physical Therapy (BPT), a Brighton-based physical therapy clinic. From October 2018 through June 2020, Bayryshova and her co-defendants conspired to cause multiple insurance companies to reimburse them for physical therapy services that were not actually provided and/or were not medically necessary and, in some cases, were provided by individuals not licensed to provide the services. Specifically, Bayryshova and her co-defendants falsely billed for services purportedly rendered to patients injured in automobile accidents when the services were not actually provided. BPT also paid patients for referrals and referred patients to attorneys to assist with patients’ insurance settlements.
On July 12, 2023, Pride was sentenced to two years in prison, two years of supervised release and was ordered to pay restitution of over $2.3 million. On July 19, 2023, Bagardi was sentenced to two years of supervised release, with the first year to be spent in home confinement and was also ordered to pay restitution of over $2.3 million.
Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts; Boston Police Commissioner Michael Cox; and Quincy Police Chief Mark Kennedy made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of the Criminal Division is prosecuting the case.
Omaha Woman Convicted of Conspiring to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Susan Lehr announced that Fabiola Diaz, 31, of Omaha, Nebraska, was sentenced today in federal court in Omaha for conspiring to distribute and possess with intent to distribute 5 grams or more of actual methamphetamine. United States District Court Judge Brian C. Buescher sentenced Diaz to 100 months’ imprisonment. He also ordered her to serve 3 years of supervised release after her release from prison. There is no parole in the federal system.
Between January 2020 and August 13, 2020, Diaz conspired with others to distribute methamphetamine in the Omaha area. On January 14, 2020, law enforcement executed a search warrant on the Omaha residence Diaz shared with her boyfriend and co-defendant, Steven Garcia, and seized 22.6 grams of actual methamphetamine. On August 13, 2020, law enforcement conducted a controlled drug transaction against Diaz and purchased 22 grams of actual methamphetamine. On November 17, 2020, law enforcement made another controlled buy against Diaz after which she fled in her vehicle. While fleeing, Diaz struck two police cars, recklessly placing law enforcement in danger before being arrested.
Steven Garcia has pleaded guilty and is scheduled to be sentenced on August 17, 2023.
This case was investigated by the Drug Enforcement Administration.
Omaha Man Sentenced to 85 Months for Felon in PossessionRead the Press Release
Acting United States Attorney Susan Lehr announced that Federico Cortez, 35, of Omaha, Nebraska, was sentenced today in federal court in Omaha for one count of Felon in Possession of a Firearm. Cortez had multiple prior felony convictions out of the State California for gang activity and one for felon in possession of ammunition. United States District Judge Brian C. Buescher sentenced Cortez to a term of 85 months of imprisonment, to be followed by three years of supervised release. There is no parole in the federal system.
Between July 7, 2022 and July 8, 2022, Cortez sold weapons that were stolen from a burglary of a firearms store, Frontier Justice gun club, to an undercover informant working with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”). After Cortez sold the stolen weapons, ATF searched his residence where they recovered another stolen firearm. Cortez argued for a lower sentence, but Judge Buescher found the circumstances of the crime deserved a lengthier sentence and ordered Cortez be immediately remanded to the custody of the United States Marshals Service.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Oklahoma Man Sentenced to 28 Years in Federal Prison for Producing Child PornographyRead the Press Release
BOISE – Kobe Jace Mahoney, 22, of Seminole, Oklahoma, was sentenced to 336 months in federal prison for sexually exploiting a child by producing child pornography, U.S. Attorney Josh Hurwit announced today.
According to court records, in November 2021 investigators learned that Mahoney traveled from Twin Falls, Idaho to Elko, Nevada, to meet a 13-year-old child. Mahoney admitted that he met the child on the Snapchat messaging application. He admitted that he had sexual intercourse with the child in Elko and used his cellphone to make a recording of the acts. Mahoney further admitted that he had engaged in sexual acts with approximately 24 different minor females with ages ranging from 11 to 17 years old in eight different states between August and November 2021. Mahoney claimed he exclusively used the Snapchat messaging application to meet the minor females.
Law enforcement obtained a search warrant for Mahoney’s cellphone. Two videos of the sexual acts between Mahoney and the child in Elko were found on the cellphone and were created in the fall of 2021. Messages between Mahoney and the child were also found. The child informed Mahoney that was she was underage prior to his travel from Idaho to Nevada to meet her. Mahoney was previously convicted of rape in Garvin County, Oklahoma.
“Our collective efforts to protect the most vulnerable members of our society, our children, have never been more urgent,” said U.S. Attorney Hurwit. “I thank our federal and local partners for all that they did in this case, and I look forward to working with them to ensure the safety of Idaho’s children.”
“Mahoney is a child predator who will spend the next 28 years behind bars in a federal prison and children across the country are safer because of it,” said Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations operations in the Pacific Northwest. “This sentence is another example of the successful partnerships that exist between HSI and Idaho law enforcement. We are especially appreciative of the work conducted by the Twin Falls Police Department, as the results of this investigation not only lead to a lengthy prison sentence, it has assisted in identifying additional victims of child exploitation.”
U.S. District Judge Amanda Brailsford also sentenced Mahoney to a lifetime of supervised release, which will commence upon completing his prison sentence. Mahoney will also be required to register as a sex offender.
U.S. Attorney Hurwit thanked Homeland Security Investigations in Boise and Reno, the Twin Falls Police Department, the Twin Falls County Prosecutor’s Office, the Elko County Sheriff’s Office, and the Elko County Prosecutor’s Office for their collaboration and hard work on this case. Law enforcement have identified and interviewed five minor victims in this investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
###
Ocala Woman Indicted for Fraud Relating to COVID-19 Relief FundsRead the Press Release
Ocala, Florida –United States Attorney Roger B. Handberg announces the return of an indictment charging Passion Lajodia Jackson (30, Ocala) with one count of wire fraud related to the Coronavirus Aid, Relief, and Economic Security (CARES) Act. If convicted, Jackson faces up to 20 years in federal prison. Her case is set for trial before Senior United States District Judge Gregory A. Presnell in October 2023.
According to the indictment, between April 2 and April 6, 2021, Jackson devised a scheme to defraud the Small Business Administration (SBA). During this time, she applied for a Paycheck Protection Program (PPP) loan under the CARES Act. It is alleged that Jackson made false representations and provided false documentation to obtain the loan. The United States is seeking an order of forfeiture for at least $20,132, which represents the unlawful proceeds of the offense charged in the indictment.
An indictment is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Norfolk Man Sentenced for Kidnapping his Child’s Mother at GunpointRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced today to 144 months in prison for the violent kidnapping of his child’s mother.
According to court documents, on May 19, 2022, James Maloyd Hunter, II, 32, kidnapped the mother of his child outside of her residence. Hunter was upset because the victim allowed her new boyfriend to be around the child. At approximately 5:35 in the morning, Hunter, with two co-conspirators, went to the victim’s residence in Norfolk. As the victim was leaving for work, Hunter confronted her, placed a firearm against her head, and forced her into his vehicle. Once inside the vehicle, he strangled the victim to stop her from screaming. She was in pain and unable to breathe. Hunter and his co-conspirators fled the scene to a hotel on Military Highway. Before departing the hotel, he zip-tied the victim’s hands together and forced her onto the floor of the back seat so no one could see her as they left the area.
On May 20, 2022, Hunter was located in Hocking County, Ohio. Local police stopped his vehicle and freed the victim. Upon examining her, they found noticeable signs of injury, including marks around her neck consistent with strangulation. Detectives recovered from Hunter’s vehicle a package of zip ties, a roll of duct tape, a hunting style knife, a pair of scissors, and a receipt from Superior Pawn in Norfolk for the purchase one week before of a 9mm Ruger, semiautomatic handgun. A search of Hunter’s phone revealed that he conducted multiple web searches for topics such as “tranquilizer darts for humans,” “directions to Colorado,” “do you need a passport to cross into Canada,” “sleeping sedative,” “how to put oil filter silencer on handgun,” and “homemade suppressor for handheld pistol.”
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Ramin Fatehi, Norfolk Commonwealth’s Attorney; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Mark Talbot, Chief of Norfolk Police, made the announcement after sentencing by Senior U.S. District Judge Raymond A. Jackson.
The U.S. Attorney’s Office for the Eastern District of Virginia expresses its appreciation to the Hocking County Sheriff’s Office for their significant assistance in this case.
Special Assistant U.S. Attorney Graham Stolle prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-3.
New York Man Sentenced to 11 Years in Prison for Conspiring to Distribute Fentanyl, Methamphetamine and HeroinRead the Press Release
NEWARK, N.J. – A New York man was sentenced to 132 months in prison for participating in a conspiracy to distribute fentanyl, methamphetamine and heroin in New Jersey from locations in Manhattan, U.S. Attorney Philip R. Sellinger announced today.
Juan Carlos Merced Moreno, aka “Samuel,” 45, of Manhattan, New York, pleaded guilty by videoconference on Dec. 20, 2022, before U.S. District Judge Claire C. Cecchi to a superseding information charging him with one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of a mixture and substance containing fentanyl, 50 grams or more of a mixture and substance containing methamphetamine, and 100 grams or more of a mixture and substance containing a detectable amount of heroin. Judge Cecchi imposed the sentence on July 25, 2023, in Newark federal court.
According to documents filed in this case and statements made in court:
Moreno admitted that from November 2020 through January 2021 he conspired with others to distribute and possess with intent to distribute fentanyl, methamphetamine, and heroin. He admitted participating in the conspiracy from locations in Manhattan and that some of the controlled substances were transported to New Jersey.
In addition to the prison term, Judge Cecchi sentenced Moreno to four years of supervised release.
U.S. Attorney Sellinger credited members of the Department of Homeland Security, Homeland Security Investigations, New York City Airport Border Enforcement Security Task Force under the direction of Ivan J. Arvelo; special agents of Homeland Security Investigations Newark Airport Border Enforcement Security Task Force, under the direction of Special Agent in Charge Ricky J. Patel; members of the New York Police Department, under the direction of Commissioner Edward Caban; and investigators and assistant prosecutors from the Hudson County Prosecutor’s Office, under the direction of Hudson County Prosecutor Esther Suarez, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office National Security Unit in Newark.
Muncie Man Sentenced to 15 Years in Federal Prison for Armed Trafficking of Methamphetamine and FentanylRead the Press Release
INDIANAPOLIS- Anson O’Neal, 22, of Muncie, Indiana, has been sentenced to 15 years in federal prison after pleading guilty to possession of methamphetamine with intent to distribute and possession of firearms in furtherance of drug trafficking.
According to court documents, on January 31, 2022, agents with the Drug Enforcement Administration and Officers with the Muncie Police Department executed a search warrant at O’Neal’s home in Muncie, Indiana.
Officers found bags of methamphetamine in multiple locations throughout the house, including under the floor mat outside the front door, in a bedroom safe, and in a closet. The three bags of methamphetamine found on a closet shelf were stored directly on top of two loaded guns. A total of approximately 890 grams of methamphetamine was seized from the home. Investigators also seized approximately 63 grams of fentanyl, over $19,000 in cash, and a total of six firearms—including an AR-15 style rifle. O’Neal admitted that he possessed the methamphetamine and fentanyl with the intent to distribute the drugs to others, and that he possessed the guns in furtherance of his drug trafficking activities.
United States Attorney for the Southern District of Indiana, Zachary A. Myers, Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office, and Muncie Police Chief Nathan Sloan made the announcement.
“Dealers of deadly drugs, armed with deadly weapons, are a poison in our communities,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Those who choose to endanger our families to further their own greed will be identified and prosecuted. With our federal, state, and local partners, we are committed to dismantling these operations and ensuring that dangerous criminals are taken off our streets and held accountable for their actions.”
The Drug Enforcement Administration and Muncie Police Department investigated this case. The sentence was imposed by U.S. District Court Judge, Sarah Evans Barker. Judge Barker also ordered that O’Neal be supervised by the U.S. Probation Office for 5 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Patrick G. Gibson, who prosecuted this case.
According to the Drug Enforcement Administration, as little as two milligrams of fentanyl can be fatal, depending on a person’s body size, tolerance, and past usage. One kilogram of fentanyl has the potential to kill 500,000 people. 6 out of 10 illegal fentanyl tablets sold on U.S. streets now contain a potentially lethal dose of the drug.
One Pill Can Kill: Avoid pills bought on the street because One Pill Can Kill. Fentanyl has now become the leading cause of death in the United States. Fentanyl is a highly potent opioid that drug dealers dilute with cutting agents to make counterfeit prescription pills that appear to be Oxycodone, Percocet, Xanax, and other drugs. Fake prescription pills laced with fentanyl are usually shaped and colored to look like pills sold at pharmacies. For example, fake prescription pills known as “M30s” imitate Oxycodone obtained from a pharmacy, but when sold on the street the pills routinely contain fentanyl. These pills are usually round tablets and often light blue in color, though they may be in different shapes and a rainbow of colors. They often have “M” and “30” imprinted on opposite sides of the pill. Do not take these or any other pills bought on the street – they are routinely fake and poisonous, and you won’t know until it’s too late.
###
Monmouth County Man Sentenced to 45 Months in Prison for Role in $1 Million ‘Upfront-Fee’ SchemeRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man was sentenced today to 45 months in prison for his role in defrauding multiple victims through a $1 million “upfront-fee” scheme, U.S. Attorney Philip R. Sellinger announced.
Jerrid Douglas, 49, of Freehold, New Jersey, was convicted on Oct. 21, 2022, of wire fraud conspiracy and four counts of wire fraud following a five-week jury trial before U.S. District Judge John Michael Vazquez, who imposed the sentence today in Newark federal court. Two co-defendants were sentenced in June 2023 for their respective roles: Roy Johannes Gillar, 51, of Las Vegas, was sentenced to six years in prison, and Harold Mignott, 60, of Voorhees, New Jersey, was sentenced to three years in prison.
According to documents in this case and evidence at trial:
From March 2016 through June 2016, Douglas, Gillar, and Mignott, along with a fourth conspirator, agreed to defraud the owners of the victim company of approximately $1 million. The defendants fraudulently induced the two victim company owners to enter a joint venture agreement with the defendants’ New Jersey-based shell company. The defendants falsely represented that their company could acquire and provide a “standby letter of credit” (SBLC) backed by either €1 billion in cash or highly lucrative Mexican gold bonds. An SBLC is a guarantee of payment issued by a bank on behalf of a client that is used should the client fail to fulfill a contractual commitment with a third party.
The victim company wanted access to the standby letter of credit so it could purchase raw gold overseas and sell it to gold refineries. As part of the joint venture agreement, the company agreed to pay the defendants $1 million for the bank fee associated with the standby letter of credit.
In order to cover up the scheme and convince the victims to approve the transfer of the funds, the defendants made numerous verbal and written misrepresentations, including providing the victims with a phony letter from a major international bank saying that it was ready, willing, and able to provide a €1 billion SBLC to the defendants’ shell company.
However, after the victim company owners transmitted $800,000 of the $1 million to the defendants, the defendants failed to provide an SBLC or anything of value. Instead, the defendants misappropriated the money for their personal use.
In addition to the prison term, Judge Vazquez sentenced Douglas to three years of supervised release, restitution of $1.1 million, and forfeiture of $44,750.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorneys Jason S. Gould and Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.
Mexican National Sentenced to Life in Prison for KidnappingRead the Press Release
KANSAS CITY, Mo. – Jonathan M. Bravo-Lopez (also known as “Jonathan Vravo,” and “Shadow”), 27, a citizen of Mexico residing in Kansas City, Mo., was sentenced by U.S. District Judge Roseann Ketchmark to life in federal prison for conspiracy to commit kidnapping and kidnapping resulting in death. Bravo-Lopez was also sentenced to 24 months for unlawful reentry, which the court ordered to be served consecutive to the life sentences.
On Dec. 16, 2022, Bravo-Lopez and co-defendant Juan D. Osorio (also known as “Spexx”), 30, also a citizen of Mexico residing in Kansas City, Mo., were found guilty at trial of conspiracy to commit kidnapping and kidnapping resulting in death. Osorio was also found guilty of being an illegal alien in possession of a firearm. Bravo-Lopez was also found guilty of illegally reentering the United States after having been deported in 2016.
Osorio was sentenced on June 20, 2023, to life in federal prison without parole.
Evidence introduced during the trial indicated that Osorio and Bravo-Lopez conspired to kidnap Cristian Escutia in an attempt to rob him of money. They transported Escutia across state lines from Missouri to Kansas before fatally shooting him on April 3, 2017.
Osorio and Bravo-Lopez arranged to purchase $300 of marijuana from Escutia as a ruse to lure him into their kidnapping plan. On April 3, 2017, they met Escutia outside his residence and forced him into their vehicle, a Chrysler Pacifica, at gunpoint. Co-defendant Marco A. Sosa-Perea, 27, of Kansas City, Mo., who had remained in the car, drove them away from the scene of the kidnapping. The kidnapping was captured by the video surveillance system outside a nearby residence. When they drove to the 200 block of Donovan Road in Kansas City, Kan., they forced Escutia out of the vehicle. Escutia was shot three times and left to die on the side of the road.
Osorio, who is in the United States unlawfully, was in possession of an Action Arms Uzi .45-caliber semi-automatic pistol when he was arrested on April 7, 2017.
Sosa-Perea was sentenced on Feb. 6, 2023, to 10 years in federal prison without parole after pleading guilty to his role in the kidnapping conspiracy.
This case was prosecuted by Assistant U.S. Attorneys Patrick C. Edwards and Matthew A. Moeder. It was investigated by the FBI, the Kansas City, Mo., Police Department and the Kansas City, Kan., Police Department.
Manchester Man Charged with Fentanyl and Crack Cocaine Distribution OffensesRead the Press Release
CONCORD – A Manchester man has been charged in connection with the distribution of fentanyl and crack cocaine, U.S. Attorney Jane E. Young announces.
Walter Velez, 41, was arrested and charged with distribution of controlled substances in connection with the sale of fentanyl to a confidential informant. Velez made an initial appearance in federal court on Friday, July 21, 2023. Velez was ordered temporarily detained and a detention hearing is scheduled for July 26, 2023, at 4:00 p.m.
According to the charging documents, Velez sold fentanyl and crack cocaine on four separate occasions totaling over 200 grams of fentanyl and over 20 grams of crack cocaine.
The charge of distribution of a controlled substance provides for a sentence of at least 5 years and up to 40 years in prison, at least 4 years of supervised release, and a fine of up to $5,000,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The U.S. Department of Homeland Security Investigations led the investigation. Valuable assistance was provided by the Manchester Police Department. Assistant U.S. Attorney Geoffrey Ward is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
###
Man Pleads Guilty to Straw Purchasing Firearm Recovered Near Fatal Odessa ShootingRead the Press Release
MIDLAND, Texas – An Odessa man pleaded guilty in a federal court in Midland on Monday to one count of false statement during purchase of a firearm.
According to court documents, on June 29, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) responded to a fatal shooting in Odessa. The agents located a Ruger firearm in their investigation and confirmed that it had been purchased on May 26 by Miguel Angel Rodriguez, 21. Further investigation revealed that Rodriguez had straw purchased at least four total firearms, including the Ruger, for persons other than himself.
Rodriguez is scheduled to be sentenced on Nov. 2 and faces up to 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Jeffery C. Boshek II for the ATF Dallas Field Division made the announcement.
The ATF is investigating the case.
Assistant U.S. Attorney Joseph Mahoney is prosecuting the case.
###
Leader of White Supremist Gang Receives 25 Years in Federal Prison for Armed Drug Trafficking and Assaulting an OfficerRead the Press Release
NEW BERN, N.C. – A self-proclaimed founder and leader of a white supremacist gang, known as the Aryan Kings (“AK”), was sentenced today to 25 years in prison for trafficking heroin and methamphetamine, illegal possession of a firearm, and assaulting a federal officer. David Milam, aka “DC,” age 39, pled guilty to the charges.
“We are partnering with local law enforcement to dismantle the leadership of violent drug trafficking gangs like the Aryan Kings. This defendant was found with narcotics, cash, white supremacist paraphernalia, and a half-dozen guns, including two assault rifles stored in his home,” stated U.S. Attorney Michael Easley. “After his arrest, Milam continued his disregard for the law, even assaulting law enforcement officer in a local jail. I am grateful to the Onslow County Sheriff’s Office, DEA, and ATF for their focus on this case and commitment to keeping North Carolina a safe place to live, work and raise a family.”
According to court documents and other information presented in court, Milam was the self-proclaimed founder and leader of a criminal organization that calls itself the Aryan Kings (“AK”), which has been identified as a white supremacist organization.
Around 2018, investigators received information that the Aryan Kings were engaged in criminal activity in the Onslow County area, including high-volume drug trafficking; violence, including assaults using machetes; witness intimidation; and discharging a firearm at a law enforcement officer.
During the course of the subsequent investigation into Milam and the Aryan Kings, agents executed search warrants on residences associated with Milam. Multiple guns, drugs, cash, and white supremacist paraphernalia were located.
In Milam’s bedroom, law enforcement found 31 grams of methamphetamine and 27 grams of heroin. In total, Milam was found accountable for at least two kilograms of methamphetamine during the course of the conspiracy.
Agents seized a loaded .40 caliber handgun, two 9 mm handguns, a .22 caliber rifle, and two assault rifles. White supremacist paraphernalia recovered included a gas mask marked with “AK” (for Aryan Kings), swastikas, and an “88,” which stands for Heil Hitler.
In addition, a notebook containing the Aryan Kings Creed, an American flag with swastikas glued on it, a spear with a swastika, and other items were also found.
Based on those search warrants, Milam pled guilty to conspiracy to possess with intent to distribute and distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine and 100 grams or more of heroin; possession with intent to distribute a quantity of methamphetamine and heroin and possession of a firearm by a felon.
Between March and July 2021, while Milam was awaiting sentencing on the federal drug and gun charges, Milam was involved with others in a scheme to import contraband into the Pamlico County Jail, where he was being held.
On July 23, 2021, officers searched Milam’s cell for illegal contraband. Milam refused to leave the cell and punched an officer in the face. A second officer was also injured trying to subdue Milam.
“Poisonous drugs continue to flow into our communities at the expense of too many lives,” said Robert J. Murphy, Special Agent in Charge of the Drug Enforcement Administration, Atlanta Division. “This violent drug trafficker must now deal with the consequences of his actions.”
“The result of this collaborative effort should serve as a warning to those who think bringing drugs and violence into our communities will go unpunished,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Bennie Mims. “ATF and our partners will continue to work to prevent violent crime and bring those responsible for it to justice.”
Onslow County Sheriff Chris Thomas said, “This case shows the value of the partnership between the Onslow County Sheriff’s Office, our Federal Partners and the US Attorney’s Office with our efforts to remove violent criminals from our communities.”
This is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Onslow, Duplin, Pamlico and Craven County Sheriffs’ Offices and the Farmville Police Department investigated the case and Assistant U.S. Attorney Timothy Severo 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. 4:22-cr-00025-FL, 7:19-CR-102-FL, and 7:19-cr-00176-FL.
Lansing-Area Health System Agrees to Pay $671,300 to Settle False Claims Act Allegations Relating to Improper BillingRead the Press Release
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced that Edward W. Sparrow Hospital Association d/b/a Sparrow Medical Group, Sparrow Care Network, and Sparrow Health System located in Lansing (collectively “Sparrow”) have agreed to pay $671,310 to resolve allegations that they violated the False Claims Act by misuse of “incident-to” billing.
“Truthful and accurate billing is crucial to our Medicare system,” said U.S. Attorney Mark Totten. “This settlement reflects the commitment of my office in working with our investigative agencies to protect the Medicare population and maintain the system of trust and accountability necessary between the patient, physician, and federal healthcare programs.”
An “incident-to” billing provision allows an Advanced Practice Provider (APP), including nurse practitioners and physician assistants, to treat a patient but bill the encounter under the physician’s name and reimbursement rate if certain criteria are met. Those criteria include the presence of an on-site doctor, that the physician performs the initial visit for the patient, and that the physician establish the patient’s diagnosis and treatment plan during the initial visit. If an APP appropriately performs a service “incident to” a physician’s oversight, the physician or their healthcare practice may submit a claim for 100 percent reimbursement for the patient encounter, as opposed to the 85 percent reimbursement rate if the APP billed services under their own billing number. The United States alleges that Sparrow improperly billed services under a physician’s name and reimbursement rate where the services were rendered by mid-level providers at Sparrow’s locations where the criteria for “incident-to” billing were not met.
“Improper billing in our federal health care programs wastes valuable taxpayer funds that are set aside to care for the wellbeing of those most in need,” said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) – Chicago Region. “HHS-OIG will continue to work with our law enforcement partners to ensure that those who engage in these practices are held accountable.”
U.S. Attorney Totten also commended Sparrow for its cooperation with the United States’ investigation, including undertaking an internal audit of violations alleged in the qui tam and sharing the results with the United States.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act against Sparrow. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant. The qui tam case is captioned U.S. ex rel. Patricia M. Crowe, M.D. v. Sparrow Medical Group, et al., No. 1:21-cv-00770 (W.D. Mich.).
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Michigan and Health and Human Services, Office of the Inspector General.
Assistant U.S. Attorney Carrie Almassian investigated the matter. Investigative support was also provided by the Department of Health and Human Services, Office of Inspector General.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
###
Kevin Love Hubbard Appointed to Coordinate Affirmative Civil Enforcement Matters in the District of Rhode IslandRead the Press Release
PROVIDENCE – U.S. Attorney Zachary A. Cunha, announced today that he has appointed Kevin Love Hubbard, an Assistant U.S. Attorney in the Office’s Civil Division, to serve as Affirmative Civil Enforcement Coordinator, overseeing the District’s significant docket of civil investigations and litigation in which the federal government is suing to vindicate the public interest.
These civil cases are an important and significant part of the Office’s docket, and include actions under the federal False Claims Act, environmental enforcement statutes, civil matters involving the Controlled Substances Act and other federal laws. Affirmative civil enforcement cases frequently seek to recover funds that are paid out by the federal government as a result of healthcare, procurement, or related fraud; enforce compliance with federal law; and seek penalties for other types of publicly harmful conduct along with injunctive relief designed to stop conduct that violates various federal statutes.
AUSA Hubbard joined the United States Attorney's Office in 2021, from the partnership of Medina Orthwein; earlier in his career he served as a law clerk to the Honorable Neil Wake of the United States District Court for the District of Arizona. He is a graduate of the Pennsylvania State University and Yale Law School.
###
Justice Department, EPA and the Mississippi Department of Environmental Quality Reach Agreement with City of Jackson on Proposal to Address Sewer System IssuesRead the Press Release
The Justice Department, Environmental Protection Agency (EPA), Mississippi Department of Environmental Quality (MDEQ) and the City of Jackson, Mississippi agreed to a proposed stipulated order, lodged today in federal district court, to expedite needed sewer system repairs and address spills of raw and undertreated sewage into homes, businesses, streets, yards and waterways. Under the terms of the agreement, the federal court would appoint Ted Henifin as interim third-party manager of the city’s sewer system. Henifin, who has been serving as interim third-party manager for the city’s drinking water system since November 2022, would manage, operate and maintain the city’s sewer system.
The proposal is an interim measure until the parties negotiate modifications to a judicially enforceable consent decree to achieve the sewer system’s long-term compliance with federal and state regulations. The proposed stipulated order is subject to a public comment period through Aug. 31, during which public meetings will be held in the City of Jackson.
“Under today’s agreement, expedited measures will be taken to address the City of Jackson’s deteriorating sewer infrastructure and inadequate operation and maintenance, which have caused residents and businesses to endure sewage discharges that threaten public health and the environment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This action shows the continuing commitment of the Justice Department to seek justice, health and safety for the residents of Jackson, Mississippi, and to prioritize enforcement in the communities most burdened by environmental harm.”
“In November of last year, the Justice Department filed a proposal to appoint a third-party manager to oversee and implement improvements to Jackson’s drinking water system,” said Principal Deputy Assistant Administrator Larry Starfield of EPA’s Office of Enforcement and Compliance Assurance. “Today, we continue to protect the health and safety of Jackson residents by proposing the oversight and programs needed to restore Jackson’s sewer systems.”
“This agreement is an appropriate next step in our enforcement efforts to ensure that the City of Jackson lives up to its responsibility, pursuant to the federal Clean Water Act and Mississippi law, to address and correct issues with its sewer system,” said Executive Director Chris Wells of the Mississippi Department of Environmental Quality.
The agreement acknowledges that the city failed to achieve significant progress under a 2013 settlement among the parties that was entered by the federal court as a consent decree, and that the sewer system has further deteriorated over the last 10 years, resulting in violations of the settlement, the federal Clean Water Act (CWA), the Mississippi Air and Water Pollution Control Law (MAWPCL), and the city’s National Pollutant Discharge Elimination System (NPDES) permits associated with the sewer system.
The agreement requires implementation of certain programs and capital projects to improve the sewer system’s condition, operations, and maintenance that are anticipated to bring near-term relief to the city’s residents and businesses.
The interim third-party manager would have the authority to, among other things:
- Operate and maintain the city’s sewer system in compliance with the CWA, MAWPCL and NPDES permits;
- Implement capital improvements to the city’s sewer system. This includes a set of priority projects to investigate and repair certain areas of the sewer system (including 215 areas previously identified by the city as emergency sewer failure locations), and certain repair work associated with the Savanna and Trahon wastewater treatment plants; and
- Implement or continue implementing programs to post signage about sewer overflows where there is a reasonable expectation of public exposure; keep fats, oils, and grease out of the sewer system; and clean and inspect lines on a recurring schedule.
Under the proposal, the Justice Department, EPA, MDEQ and the City of Jackson will resume negotiations within three years to modify the 2013 settlement to achieve long-term compliance with the CWA, MAWPCL and NPDES permits.
A copy of the proposed stipulated order and instructions for submitting public comments is available at www.justice.gov/enrd/consent-decrees. All comments must be electronically submitted or postmarked by Aug. 31.
Public meetings to receive comments are planned at the Mississippi e-Center, 1230 Raymond Road, Jackson, Mississippi on Aug. 21, 6:00 – 8:00 pm. Additional meetings are being planned and will be announced separately. For information and details on the public meetings, please visit www.epa.gov/ms/jackson-ms-sewer-system.
The case is being litigated by the Environment and Natural Resources Division’s Environmental Enforcement Section, in conjunction with EPA and MDEQ.
Members of the public can help protect our environment by identifying and reporting environmental violations. Learn more here.
Jury Finds District Man Guilty of Unlawful Possession of a FirearmRead the Press Release
WASHINGTON – A jury, sitting in U.S. District Court in the District of Columbia, today found Jonathan Johnson, 35, of Washington, D.C., guilty of unlawful possession of a firearm by a convicted felon. The verdict follows a three-day trial before the Honorable Florence Y. Pan, who scheduled a sentencing hearing for November 15, 2023.
According to the evidence presented at trial, shortly after 6:00 pm, on Tuesday, December 29, 2020, members of the Metropolitan Police Department patrolling on 13th Street SE, Washington, D.C., saw the defendant crouch behind his car and heard a gun dropped on the concrete curb. MPD Officers approached the defendant and found a gun lying where the defendant was previously bent down. Further examination revealed that the gun was modified with a “giggle” or “selector” switch, which turned the semi-automatic gun into a fully automatic machine gun. In addition, the firearm was loaded with 22 bullets in an extended magazine.
In announcing the conviction, U.S. Attorney Graves commended the work of those who investigated the case from the Metropolitan Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. They also expressed appreciation to those who worked on the case form the U.S. Attorney’s Office, including Assistant U.S. Attorneys Kevin Birney, Lauren Renaud, Janani Iyengar, William G. Hart, who investigated the case, and Josh A. Gold and Colin Cloherty who prosecuted the case.
Jorge R. Lopez, 31, was sentenced today in federal court in Omaha, Nebraska, for robbery and brandishing a firearm during a crime of violence.Read the Press Release
Acting United States Attorney Susan Lehr announced that Jorge R. Lopez, 31, was sentenced today in federal court in Omaha, Nebraska, for robbery and brandishing a firearm during a crime of violence. United States District Court Judge Brian C. Buescher sentenced Lopez to 30 months’ imprisonment on the robbery charge and 84 months’ consecutive on the brandishing charge, resulting in 114 months in the Bureau of Prisons. There is no parole in the federal system. After his release from federal prison, Lopez will begin a 3-year term of supervised release.
On July 1, 2022, officers responded to a radio call to Ground Floor Guitar in Omaha for an armed robbery. The store owner told officers that two men entered the store separately before displaying a black handgun and robbing the store owner of cash and property, specifically several guitars and at least one amplifier. Various customers were also robbed by being instructed to “hand over their wallets.”
Codefendant Marco Lopez instructed all the victims to move down into the basement where he locked them and a dog into a bathroom, telling them not to come out or he would “shoot them,” while displaying a handgun.
The victims eventually left the bathroom and called 9-1-1.
On July 2, 2022, Omaha Police were responding to a tip related to a residential break-in, which identified codefendant Marco Lopez as a suspect. Marco is cousins with Jorge Lopez. Jorge Lopez was interviewed and admitted that both he and Marco Lopez had robbed the guitar store and that Marco took the cash and guitars with him to Texas when he left after the robbery. Police searched the truck used in the robbery, finding a wallet belonging to one of the victims and other materials linking the truck to the robbery. Marco Lopez was located and arrested in Texas before being extradited to Nebraska.
Marco Lopez has pleaded guilty to the charges and is scheduled to be sentenced on September 7, 2023.
This case was investigated by the Omaha Police Department.
Jacksonville Tax Preparer Pleads Guilty to Preparing False Personal ReturnRead the Press Release
A Florida woman pleaded guilty today to aiding and assisting in the preparation of a false tax return.
According to court documents, Iona Coates of Orange Park, Florida, owned and operated Bits & Bytes Accounting Services Inc., a tax preparation and bookkeeping services company located in Jacksonville. Between 2015 and 2020, Coates reported wages and tax withholdings from Bits & Bytes on her personal tax returns, including $42,500 of withholdings on her 2017 return. However, as Coates knew, Bits & Bytes did not withhold and pay over any taxes to the IRS during those years. In total, between 2015 and 2020, Coates claimed false withholdings of $228,788.
Coates faces a maximum penalty of three years in prison, and also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and United States Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Kevin Schneider and Wilson Stamm of the Justice Department’s Tax Division are prosecuting the case.
Holyoke Man Sentenced to Five Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
BOSTON – A Holyoke man was sentenced yesterday in federal court in Springfield for illegally possessing a firearm as a previously convicted felon.
Joe Anthony Montaner-Vazquez, 25, was sentenced by U.S. District Court Judge Mark G. Mastroianni to five years in prison and three years of supervised release. In April 2023, Montaner-Vazquez pleaded guilty to one count of being a felon in possession of a firearm.
In May 2022, Montaner-Vazquez was found in possession of a Glock 9-millimeter caliber pistol and 20 rounds of ammunition after he attempted to flee from police. Montaner-Vazquez was previously convicted of a felony and is prohibited from possessing firearms and ammunition.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Holyoke Police Chief David Pratt made the announcement today. Assistant U.S. Attorney Neil L. Desroches of the Springfield Branch Office prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.