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14 July 2023
Providence Man Admits to Passport Fraud, Theft of Government Funds and Fraudulent Use of Another Person’s Identity to Obtain Social Security Disability BenefitsRead the Press Release
PROVIDENCE – A Providence man admitted to a federal judge that he fraudulently collected more than $230,000 in Social Security Administration (SAA) disability benefits in his own name, all the while continuing to work using another person’s identity, announced United States Attorney Zachary A. Cunha.
Additionally, Leonardo Durango, 62, admitted that he used the name of that same person, without his knowledge, to fraudulently collect more than $26,000 in federally funded COVID-related unemployment benefits, and that he also made a false statement in a U.S. passport application. Durango admitted that he was not entitled to receive the funds.
Durango pleaded guilty on Thursday to charges of concealment to disclose affecting rights to SSA benefits payments, passport fraud, and theft of government property.
Durango is scheduled to be sentenced on October 12, 2023. The defendants’ sentences will be determined by a federal judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant United States Attorney Ly T. Chin.
The matter was investigated by the U.S. Department of State, U.S. Social Security Administration, and U.S. Department of Labor.
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Portsmouth Man Sentenced for Possessing Firearm used in Murder of Seven-Year-Old GirlRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to 15 years in prison for possessing a firearm used in the shooting of a child and straw purchasing another firearm used in a second shooting.
According to court documents and evidence presented at sentencing, Antonyo Taylor, 27, possessed a tan Smith and Wesson M&P connected to the homicide of a seven-year-old girl in Portsmouth, and separately straw purchased a GIRSAN MC 1911. On December 22, 2020, Taylor told others that he wanted to go shoot at rival gang members. Taylor and others, riding inside a gold Acura TL pulled alongside another vehicle that Taylor incorrectly indicated contained rival gang members. Taylor then fired his tan Smith and Wesson M&P towards the other vehicle. During this shooting, one of the passengers in the second vehicle, a seven-year-old girl, was shot and killed. Separately, on or about September 20, 2020, Taylor straw purchased a GIRSAN MC 1911. A co-conspirator of Taylor purchased the firearm from a legal firearm vendor and, during the purchase, checked the box on the ATF form 4473 indicating that they were the actual buyer of the firearm. The co-conspirator then transferred the firearm to Taylor. According to text messages obtained by law enforcement, Taylor admitted he used this firearm in a separate shooting in October of 2020 in Portsmouth that did not result in injuries.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, made the announcement after sentencing by Senior U.S. Judge John A. Gibney, Jr.
Assistant U.S. Attorney Matthew Heck 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. 2:22-cr-127.
One Detroit Violence Reduction Partnership to host Second Annual Peacenic at Heilmann Recreation CenterRead the Press Release
DETROIT - More than thirty community organizations and local, state, and federal law enforcement agencies will gather with residents for a second Peacenic at Heilmann Recreation Center on July 15. This follows a very successful Peacenic that was held on July 8th at O’Hair Park. The events on Saturday at Heilmann will run from 3pm to 7pm.
The Peacenics are part of the One Detroit Violence Reduction Partnership’s – Unified Summer Enforcement Strategy, a targeted strategy aimed at reducing gun violence in Detroit’s neighborhoods with the highest incidence of violent crime – Detroit’s 8th and 9th Precincts. The strategy has three components—enforcement, prevention, and reentry. One Detroit is a coalition of community and law enforcement partners working together to develop and execute the best strategies to reduce violent crime which was announced in May.
As part of the enhanced enforcement this summer, certain crimes committed in the “hot spot areas” are subject to immediate federal enforcement. On the reentry front, the One Detroit Partnership is holding community roundtables pairing individuals living in the hot spot communities who are on state probation with housing, mental health, and employment resources and giving them the opportunity to engage with individuals who have successfully transitioned from prison back into society. Finally, the Peacenics are a collective gathering of the community and law enforcement to share in food, fellowship and fun in the name of peace that signals the start of our One Detroit prevention efforts.
The Peacenics will feature vendors offering a variety of resources including job training, literacy programs, mental health and medical screenings, utility assistance, educational and vocational opportunities, tutorial and career development programs, expungement assistance and more. Several law enforcement agencies will also be present to engage with the community and recruit to fill vacancies in their organizations.
In addition to the resources, there will be bounce houses, face painting, and a 3-on-3 basketball tournament. Tracey Walker, II, from the Detroit Lions will be passing out book bags and doing drills. Adults will be able to join in the fun with Hustle Dance lessons, chess games, and a Spades tournament. New this year is the Thrift Clothing Boutique where residents can shop for gently used clothing. There will also be pizza, sliders, and ice cream available for free for residents at the Peacenics.
“I am so excited to be partnering again with so many organizations and individuals who are dedicated to helping improve the lives of the residents of Detroit, stated U.S. Attorney Dawn Ison. “Our first step is making the city peaceful, and the Peacenics are a celebration of the One Detroit Partnership’s multifaceted approach to reducing violence in the city.”
“The Peacenic and One Detroit Partnership shows what we can do when we all work together to reduce violence and improve the quality of life in our city,” said Chief James E. White. “This is a great time in the city of Detroit as law enforcement, government, community organizations and residents are coming together to stop violent crime and increase access to resources that can help Detroiters.”
Heilmann Recreation Center is located at 19601 Brock Street (9th Precinct). Members of the media are welcome to attend the event and should contact Gina Balaya at the above email address or contact her directly at (313)226-9758.
Participating OrganizationsCity of Detroit •Detroit Police Department •Wayne County Prosecutor’s Office •U.S. Attorney’s Office •8th Precinct Community Relations Council •Black Family Development, Inc. •Brilliant Detroit •Bureau of Alcohol, Tobacco, Firearms and Explosives •Ceasefire Detroit •Ceasefire Outreach •Delta Dental •Detroit at Work •Detroit Health Department •Detroit Housing and Revitalization Department •Detroit Lions •Detroit Pistons •Detroit Public Library •Detroit Public Schools Community District •Detroit Reconnect •Detroit Training Center •Detroit Wayne Integrated Health •Drug Enforcement Administration •Families Against Narcotics •Federal Bureau of Investigations •Goodwill Industries •I Teach Chess •Matrix Human Services
- Michigan Army National Guard •Michigan Department of
Corrections •Michigan Secretary of State •Project Clean Slate •Salvation Army •Team Wellness Center •U.S. Department of Homeland Security •Wayne County Sheriff’s Department •Wayne Metro Hope Program •Wayne State Health Mobile •Youthbuild Detroit
Ohio Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Kentrell Dupri McKenzie, 22, of Akron, Ohio, was sentenced yesterday to four years and nine months in prison, to be followed by three years of supervised release, for possession with intent to distribute methamphetamine.
According to court documents and statements made in court, on February 9, 2022, McKenzie was a passenger in a vehicle pulled over by a law enforcement officer on Interstate 77 in Jackson County. The officer detected the odor of marijuana, prompting a search of the vehicle. Officers found approximately 373 grams of methamphetamine in a sealed bag hidden inside the gear shift area. McKenzie admitted to possessing the methamphetamine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the Ripley Police Department.
Chief United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorneys Ryan Blackwell and Ryan A. Keefe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-30.
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Oahu Men Receive Sentences of 130 and 120 Months in Prison Following Federal Carjacking ConvictionsRead the Press Release
HONOLULU –Senior United States District Judge Helen Gillmor imposed prison sentences of 130 months on Treston Cory Kawailani Hardin, 35, of Waiawa, Hawaii, and 120 months on Anthony Kelii Mark, 31, of Wahiawa, Hawaii on July 13 and 14, 2023, respectively, for carjacking.
According to information presented to the court, on March 14, 2020, Hardin and Mark drove a stolen car to the Waipio Soccer Complex and parked alongside the victim, who was seated in the driver’s seat of a Nissan truck. Hardin then exited his car, walked over to the victim’s truck, opened his passenger’s side door, and displayed a bolt-action shotgun. Hardin then loaded a round into the shotgun and pointed the shotgun at the victim. Mark then approached the victim’s truck from the driver’s side and ordered the victim out of the truck. The victim complied and fled, as Hardin and Mark took his truck.
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 works 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.
The Honolulu Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that resulted in the convictions. Assistant U.S. Attorneys Gregg Paris Yates and Darren W.K. Ching handled the prosecution.
O.C. Surgeon Sentenced to over 2 Years in Prison for Accepting over $300,000 in Illicit Payments to Perform Surgeries at Corrupt HospitalRead the Press Release
LOS ANGELES – An Orange County orthopedic surgeon was sentenced today to 33 months in federal prison for accepting more than $315,000 in bribes and kickbacks for performing spinal surgeries at a now-defunct Long Beach hospital whose owner later was imprisoned for committing a massive workers’ compensation insurance fraud.
David Hobart Payne, 66, of Irvine, was sentenced by United States District Judge Josephine L. Staton, who also ordered him to a pay a fine of $20,000, and to forfeit $316,597 in ill-gotten gains.
At the conclusion of a six-day trial, a federal jury on March 3 found Payne guilty of one count of conspiracy, two counts of honest services wire fraud, and one count of use of an interstate facility in aid of bribery.
Michael Drobot – the owner of the Long Beach-based Pacific Hospital – conspired with doctors, chiropractors, and marketers to pay kickbacks and bribes in return for the referral of patients to Pacific Hospital for spinal surgeries and other medical services. These services and surgeries were paid for primarily through the California workers’ compensation system. During its final five years, the scheme resulted in the submission of more than $500 million in medical bills for spinal surgeries involving kickbacks.
Payne received bribes from Drobot of up to $15,000 for each spinal surgery that he performed at Pacific Hospital. The top bribe payment was for lumbar spinal surgeries Payne performed on patients at Pacific Hospital with implants from one of Drobot’s companies. Drobot and Payne covered up the bribes by disguising them as payments for marketing services and fees based on a sham contract.
In total, Payne received more than $315,000 in illegal payments.
In April 2013, law enforcement searched Pacific Hospital, which was sold later that year, bringing the kickback scheme to an end.
To date, 24 defendants, among them multiple physicians, have been convicted for participating in the kickback scheme. In 2018, Drobot was sentenced to 63 months in federal prison.
“Bribe schemes like [Payne’s] cause an insidious harm that lingers for years, leaving victim-patients wondering whether their surgeries were necessary or whether the unethical doctors and hospital executives who treated them as commodities also agreed to implant substandard medical hardware in their bodies,” prosecutors wrote in a sentencing memorandum.
The FBI, IRS Criminal Investigation, United States Postal Service Office of Inspector General, and the California Department of Insurance investigated this matter.
First Assistant United States Attorney Joseph T. McNally, Assistant United States Attorneys Billy Joe McLain of the Public Corruption and Civil Rights Section, and Hava Mirell of the Violent and Organized Crime Section prosecuted this case.
Munhall Man Pleads Guilty to Possession of a Firearm and Ammunition ChargeRead the Press Release
PITTSBURGH, PA -- A resident of Munhall Pennsylvania, pleaded guilty in federal court to a charge of felon in possession of a firearm and ammunition, United States Attorney Eric G. Olshan announced today.
Zai Quan Henderson, age 25, formerly of Munhall, pleaded guilty to one count before United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on January 12, 2022, Allegheny County Police observed Henderson with a suspected firearm. Henderson fled and attempted to conceal the firearm in an abandoned house. The Allegheny County Detectives, however, recovered the firearm, which was loaded and stolen. As a convicted felon, Henderson is prohibited from possessing firearms and ammunition.
Judge Conti scheduled sentencing for November 1, 2023 at 11:00 a.m. The law provides for a total sentence of ten (10) years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court remanded Henderson into the custody of the United States Marshals Service.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Allegheny County Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Henderson.
Multi-Convicted Felon Pleads Guilty to Drug Trafficking and Firearms OffensesRead the Press Release
Orlando, FL - United States Attorney Roger B. Handberg announces that Antione Oshea Ladson (29, Orlando) has pleaded guilty to two counts of possession with the intent to distribute cocaine and marijuana and two counts of possession of a firearm and ammunition by a convicted felon. Ladson faces a maximum sentence of 20 years in federal prison for the drug offenses, and up to 15 years for the firearm and ammunition offenses. His sentencing hearing has been scheduled for October 17, 2023.
According to the plea agreement, on August 27, 2022, Ladson had checked into the Bel Air Hotel in Orlando. While walking through an outdoor breezeway, Ladson encountered another man walking past him. After a brief confrontation with the man, Ladson lifted his modified pistol and shot the man in the neck.
On November 16, 2022, Ladson was apprehended at a convenience store in Orlando. Upon review of surveillance videos, law enforcement noticed that Ladson continuously lifted a bottom-level grocery shelf, retrieved items from under the shelf, and lowered the shelf back down. Underneath the bottom shelf, law enforcement officers found a fanny pack that contained Ladson’s wallet and Social Security card, two digital scales used for weighing narcotics, a pistol magazine, and plastic baggies containing cocaine and marijuana. Under Ladson’s fanny pack was a Glock 23 pistol loaded with 14 rounds of ammunition.
On December 27, 2022, members of the Orange County Sheriff’s Office Gang Enforcement Unit noticed Ladson driving on Orange Blossom Trail and subsequently pulled him over. A search of Ladson’s car revealed an XD9 firearm with 19 rounds of ammunition, an additional 12-round magazine fully loaded with 9mm rounds, a drum-style magazine, 4.8 grams of crack cocaine, and 61.4 grams of marijuana. Ladson has multiple prior felony convictions and is therefore prohibited under federal law from possessing both firearms and ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Orange County Sheriff’s Office, and the Orange County Sheriff’s Office Gang Enforcement Unit. It was prosecuted by Assistant United States Attorney David Pardo.
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.
Monroe County Man Charged with Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on July 11, 2023, Pernell Riddick, age 34, of Monroe County, Pennsylvania, was charged by a federal grand jury with trafficking methamphetamine, fentanyl, and cocaine. Riddick was also indicted for possessing multiple firearms in furtherance of his drug trafficking operation.
According to United States Attorney Gerard M. Karam, the indictment charges Riddick with possession with intent to distribute 50 grams or more of methamphetamine, fentanyl, and cocaine on September 2, 2022. The indictment also charges Riddick with possessing a firearm in furtherance of a drug trafficking crime.
This matter was investigated by the Pocono Mountain Regional Police Department, the Monroe County District Attorney’s Office, and the Drug Enforcement Administration (DEA). Assistant United States Attorney Brian J. Gallagher is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Riddick faces a maximum penalty of life in prison, a $10 million dollar fine, and a lifetime term of supervised release following imprisonment. 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.
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Milledgeville-based Meth Distribution Leader Sentenced to 30 Years in PrisonRead the Press Release
MACON, Ga. – The leader of a methamphetamine trafficking organization centered in Milledgeville, Georgia, that was responsible for distributing five kilograms of methamphetamine into the community was sentenced to serve 30 years in prison resulting from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation.
Jarvis Havior aka “J Bo,” 31, of Milledgeville, was sentenced to serve 360 months in prison to be followed by three years of supervised release by Chief U.S. District Judge Marc Treadwell on July 13. Havior pleaded guilty to possession of methamphetamine with intent to distribute on Feb. 16.
“The armed distribution of highly addictive and deadly illegal drugs—and the additional crimes spawned by large-scale trafficking—will not be tolerated,” said U.S. Attorney Peter D. Leary. “It’s thanks to the strong collaboration of local, state and federal law enforcement through the Organized Crime Drug Enforcement Task Force that this criminal network was disbanded, and its players brought to justice.”
“Those who distribute methamphetamine pose a grave danger to the community. These traffickers can no longer deliver dangerous drugs on the streets and must now face the consequences of their actions,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division.
“The dangers associated with meth remain one of the most significant drug threats facing our community,” said Robert Gibbs, Supervisory Senior Resident Agent of FBI Atlanta’s Macon office. “With the help of our federal, state and local partners, this is a significant amount of poison that will not make it into our communities, driving crime and violence.”
“Illegal drugs are dangerous and threaten the safety of Georgia communities. The GBI is committed to getting these drugs off the streets by bringing to justice all those that take part in the illegal drug trade, from the supplier down to the dealer,” said GBI Director Mike Register.
According to court documents, agents with DEA, GBI and the Ocmulgee Drug Task Force (OCDETF) received credible information in June 2020 from multiple confidential sources that Havior was leading a multi-kilogram methamphetamine distribution ring operating in the Milledgeville community. A subsequent investigation determined the location of distribution “trap” and “stash” houses for bulk narcotics and cash that Havior and his criminal associates maintained.
On April 5, 2021, agents determined that Havior was going to replenish his methamphetamine supply at a location in Stone Mountain, Georgia, where he had previously traveled to for suspected drug re-supply runs. Agents observed Havior meet a man at a Publix parking lot in Stone Mountain and receive a fully laden green Publix bag. Havior traveled to a restaurant in Covington, Georgia, and gave the bag to co-defendant Anrico Taylor. Both defendants departed the restaurant in their respective vehicles and traffic stops were conducted on them in Baldwin County, Georgia. Taylor attempted to flee with the Publix bag, ripping apart several smaller bags of methamphetamine as he ran from officers, amounting to approximately one kilogram of methamphetamine spread on the ground. In total, four kilograms of methamphetamine was found inside the green Publix bag. In all, the drug trafficking ring is responsible for distributing at least five kilograms of methamphetamine.
The following co-defendants have been sentenced:
Nicolas Cuevas Flores was sentenced to serve 260 months in prison to be followed by three years of supervised release. Flores pleaded guilty to conspiracy to distribute controlled substances on Feb. 28;
Anrico Taylor was sentenced to serve 160 months in prison to be followed by three years of supervised release. Taylor pleaded guilty to one count of possession of methamphetamine with intent to distribute on Feb. 28;
Dawn Carey was sentenced to serve 121 months in prison to be followed by three years of supervised release. Carey pleaded guilty to one count of conspiracy to distribute controlled substances Oct. 13, 2022;
Arturo Marshall was sentenced to serve 100 months in prison to be followed by three years of supervised release. Marshall pleaded guilty to conspiracy to distribute controlled substances on Feb. 28;
Tyrone Hitchcock was sentenced to serve 85 months in prison to be followed by three years of supervised release. Hitchcock pleaded guilty to one count of possession of methamphetamine with intent to distribute on Oct. 12, 2022;
Paul Collins was sentenced to serve 78 months in prison to be followed by three years of supervised release. Collins pleaded guilty to one count of conspiracy to distribute controlled substances on Feb. 28, 2023;
Annie Collins was sentenced to serve 63 months in prison to be followed by three years of supervised release. Collins pleaded guilty to conspiracy to distribute controlled substances on March 7;
Alicia Nugent was sentenced to serve 60 months in prison to be followed by three years of supervised release. Nugent pleaded guilty to conspiracy to distribute controlled substances on Feb. 28;
Perry Miller was sentenced to serve 48 months in prison to be followed by one year of supervised release. Miller pleaded guilty to conspiracy to distribute controlled substances on Feb. 28;
Lamont Jackson was sentenced to serve 48 months in prison to be followed by one year of supervised release. Jackson pleaded guilty to conspiracy to distribute controlled substances on Feb. 28;
Ryan Rickard was sentenced to serve 48 months in prison to be followed by one year of supervised release. Rickard pleaded guilty to one count of the unlawful use of a communications facility on Feb. 16;
Amber Vanclief was sentenced to serve 15 months in prison to be followed by three years of supervised release. Vanclief pleaded guilty to one count of possession of methamphetamine with intent to distribute on Feb. 9; and
Macarthur Reeves was sentenced to serve three years of probation. Reeves pleaded guilty to the unlawful use of a communications facility on Feb. 16.
The following co-defendants entered guilty pleas and will be sentenced later:
- Matthew Cameron, 47, of Milledgeville, pleaded guilty to possession of methamphetamine with intent to distribute and faces a maximum of ten years in prison; and
- Paris Binion, 30, of Milledgeville, pleaded guilty to one count of the unlawful use of a communications facility and faces a maximum of four years in prison.
The following co-defendants remain at large and are charged by federal indictment with the following crimes:
- Paul Bentley aka “Old School,” 56, of Milledgeville, is charged with one count conspiracy to distribute controlled substances and faces a maximum of life in prison; and
- Noe Canela, 34, of Lilburn, Georgia, is charged with one count conspiracy to distribute controlled substances and faces a maximum of life in prison.
An indictment is only an allegation of criminal conduct, and all defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
People with information regarding the whereabouts of Bentley and Canela can contact the FBI’s Atlanta Field Office at (770) 216-3000 or submit a tip online at tips.fbi.gov.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by DEA, FBI, GBI, Ocmulgee Drug Task Force, Baldwin County Sherriff’s Office, Laurens County Sheriff’s Office, Washington County Sheriff’s Office, Georgia Department of Corrections, Milledgeville Community Supervision Office, Wilkinson County Sheriff’s Office, Jones County Sheriff’s Office, Atlanta-Carolina’s HIDTA Office and Gwinnett Metro Task Force. Assistant U.S. Attorney Alex Kalim is prosecuting the case.
Massachusetts Man Charged with Drug and Gun Trafficking in Bennington AreaRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that Keniel Santiago (a.k.a. “Kas”), 20, of Springfield, Massachusetts, was arraigned yesterday on drug and firearms trafficking charges. A federal grand jury, sitting in Rutland, charged Santiago with five counts: one count of conspiracy to distribute heroin and cocaine base; one count of possession of a firearm during a drug trafficking crime; and, three counts of aiding in the unlawful acquisition of firearms from licensed firearms dealers by making false statements. The alleged criminal conduct occurred in the Bennington area from September 2020 through March 2021.
During the hearing, Santiago pleaded not guilty to the charges, and U.S. District Court Magistrate Judge Kevin Doyle ordered Santiago remanded to the custody of the U.S. Marshals Service pending further proceedings.
The indictment is an accusation only and Santiago is presumed innocent until and unless proven guilty. If convicted, Santiago faces a maximum sentence of life imprisonment, a mandatory sentence of five years imprisonment, a $1,000,000 fine, and three years of supervised release, which would follow any sentence of imprisonment. The actual sentence will be advised by the Federal Sentencing Guidelines.
This case is being investigated by Homeland Security Investigations, the Bennington Police Department, the Vermont State Police, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The United States is represented by Assistant U.S. Attorney Joseph Perella. Santiago is represented by Ian Carleton, Esq.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn .
Maryland Defense Contractor Sentenced to Almost Four Years in Federal Prison for Procurement FraudRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar today sentenced Cory Collin Fitzgerald Sanders, age 39, of Hagerstown, Maryland, to 45 months in federal prison, followed by three years of supervised release, for wire fraud, false claims, and making and using a false document in connection with his companies’ performance on federal contracts. Chief Judge Bredar also ordered Sanders to forfeit $173,926.99 and to pay restitution of $27,315.10. A federal jury convicted Sanders on March 6, 2023, after a nine-day trial.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge Troy W. Springer, of the National Capital Region of the U.S. Department of Labor’s Office of Inspector General (“DOL-OIG”); and Special Agent in Charge Greg Gross of the U.S. Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office (ECFO).
According to the evidence presented at the nine-day trial, in June 2014 Sanders formed Sandtech LLC, a Maryland limited liability company whose business was the sale of video teleconference equipment to the Department of Defense and other agencies of the federal government. Sanders was the sole owner, agent, and president of Sandtech. Witnesses testified that Sanders obtained contracts with federal agencies for Sandtech to provide telecommunications equipment and services. Sanders caused Sandtech to fail to perform on contracts with the U.S. Department of Labor and the Department of the Army, which terminated the Sandtech contracts for cause. Sanders then formed Cycorp Technologies in 2016 to provide the same type of telecommunication services as Sandtech.
The trial evidence proved that from February 10, 2015 through June 30, 2020, Sanders engaged in a scheme to defraud the government by entering into contracts with federal agencies that required Sandtech or Cycorp Technologies to provide new telecommunications equipment which was still under manufacturers’ warranty. The evidence showed that in his communications with federal agency contracting officers Sanders provided false information about the delivery, source, warranty, and/or condition of the electronic equipment provided by his companies, including misrepresentations that the equipment was new and protected by the manufacturer’s warranty, when Sanders knew that the equipment was not new, or was new but not under warranty, or was procured through unauthorized channels. The evidence also showed that Sanders was not authorized to provide certain IT services to the federal government, although he represented to government officials that he was.
Further, Sanders provided contracting officials with false information and false documents about the credentials, certifications, and qualifications of Cycorp Technologies. As proven during trial, Sanders provided fabricated and forged documents falsely certifying Cycorp Technologies’ status as an “authorized partner” of two large national telecommunications equipment manufacturers. If true, the certificates would have authorized Cycorp Technologies to buy directly from those companies’ distributors, provide maintenance to their equipment, or re-sell their new and warrantied products. In addition, Sanders submitted invoices on behalf of Sandtech and Cycorp Technologies so that the government agencies he contracted with would pay for deficient or non-existent performance by electronic deposit into business bank accounts.
“Cory Collin Fitzgerald Sanders executed a brazen scheme using a pattern of deception to defraud numerous federal agencies on telecommunication contracts awarded to his companies. Today's sentencing should serve as a strong message to those who choose to defraud the government and harm the American taxpayer,” said Acting Special Agent in Charge Troy W. Springer of the U.S. Department of Labor – Office of Inspector General (DOL-OIG), National Capital Region. “DOL-OIG is committed to working closely with the U.S. Attorney’s Office and our investigative partners to combat fraud, deception, and other criminal acts associated with federal government contracting and purchasing.”
“Mr. Sanders deserves to be held fully accountable for his actions to defraud the U.S. Government by routinely providing telecommunications equipment that did not meet contract specifications and submitting false documentation in an attempt to cover up his scheme,” said Special Agent in Charge Greg Gross of the U.S. Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office (ECFO). “NCIS and our partners are dedicated to rooting out product substitution and other frauds that diminish the Department of the Navy’s (DON) warfighting capabilities and threaten the integrity of the DON acquisition process.”
United States Attorney Erek L. Barron commended the DOL-OIG and the NCIS for their work in the investigation and thanked the Army Criminal Investigation Division, and the Offices of Inspector General for the U.S. Department of State, the U. S. Department of Commerce, the U.S. Environmental Protection Agency, the U.S. Department of the Interior, the Defense Criminal Investigative Service, the U.S. Department of Homeland Security, the U.S. Department of Health and Human Services and the U.S. Department of Justice for their assistance. Mr. Barron thanked Assistant U.S. Attorneys Evelyn Lombardo Cusson and Stephanie Williamson, who prosecuted the case and thanked Paralegal Specialists Juliette Jarman and Jenna Lee for their assistance.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to fight fraud, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Man Who Sexually Abused 5-Year-Old Sentenced to 20 Years in Prison for Child PornographyRead the Press Release
A Snyder, Texas man who recorded himself sexually abusing a 5-year-old child was sentenced yesterday to 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Shemar Cameron Green, 20, was indicted in December 2022 and pleaded guilty in March 2023 to transportation of child pornography. He was sentenced Thursday by U.S. District Judge James Wesley Hendrix, who also ordered the defendant to register as a sex offender and to pay $17,500 in restitution to identifiable child pornography victims.
According to plea papers, Mr. Green admitted he sent sexually explicit images of himself to multiple minors, received nude photographs from minors, and produced a video of himself molesting a 5-year-old.
He further admitted that he regularly viewed pornographic images of children under age 10, and uploaded several sexually explicit images of prepubescent children from his computer to his social media accounts.
The National Center for Missing and Exploited Children relayed a cyber tip from a social media company that housed Mr. Green’s account to law enforcement, prompting the investigation.
The Snyder Police Department, the Texas Department of Public Safety, and the Federal Bureau of Investigation’s Dallas Field Office – Lubbock Resident Agency conducted the investigation. Assistant U.S. Attorney Callie Woolam prosecuted the case.
Long Island Man Pleads Guilty to Massive COVID-19 Loan FraudRead the Press Release
Earlier today, Rami Saab, of Glen Cove, New York, pleaded guilty at the federal courthouse in Central Islip to conspiracy to commit wire fraud in connection with his participation in a scheme to defraud banks and the Small Business Association (SBA) of millions of dollars’ worth of small business loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDLP). Today’s proceeding was held before United States District Judge Gary R. Brown. When sentenced, Saab faces up to 20 years in prison, as well as restitution of $9,668,508 and a fine of up to $250,000.
Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), Thomas M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), and J. Russell George, Treasury Inspector General for Tax Administration (TIGTA) announced the guilty plea.
“Using fraud and deceit, the defendant callously stole millions of dollars during an unprecedented public health crisis at the expense of American small business owners,” stated United States Attorney Peace. “Those who engaged in blatant theft of taxpayer dollars intended to assist legitimate businesses and their employees during the COVID-19 pandemic should know they will be aggressively prosecuted by our Office.”
Mr. Peace thanked the Nassau County Police Department for their assistance on this case.
“As alleged, Rami SAAB stole nearly $10 million dollars in relief money intended for small businesses impacted by the COVID-19 global pandemic, for his own enrichment,” stated HSI Special Agent-in-Charge Arvelo. “This is an egregious case of fraud perpetrated by an individual who pilfered a program intended for those who truly needed emergency financial assistance. HSI and our law enforcement partners remain steadfastly committed to rooting out such thievery and ensuring violators are prosecuted to the fullest extent of the law.”
“Saab pocketed nearly $10 million in ill-gotten gains by exploiting benefits meant to help those truly in need. Criminals like Saab continue to seek the quickest way to make a buck, regardless of the rule of law or those who may be victimized in the process. But as a result of strong law enforcement partnerships, today’s guilty plea means Saab now faces a large prison sentence for his criminal acts,” stated IRS-CI Special Agent-in-Charge Fattorusso.
“As alleged, the defendant and his co-conspirators fraudulently obtained more than $9.5 million in Federal funds from the Payroll Protection Program and Emergency Injury Disaster Loans through applications containing fraudulent documents. Fraud schemes like these defraud not only a program intended to help small businesses weather a global pandemic but also the United States' taxpayers. The Treasury Inspector General for Tax Administration is committed to working with our law enforcement partners and the United States Attorney’s Office to prevent these types of fraud and to bring those responsible to justice.”
As set forth in court filings, between May 2020 and May 2021, amid the height of the COVID-19 pandemic, Saab, working with others, fraudulently applied for, and received, at least 20 PPP and EIDLP loans totaling in excess of $9,500,000, on behalf of numerous corporate entities under his control. Saab submitted applications on behalf of these entities even though these were not, in fact, real businesses. Instead, these entities were “shell companies” that claimed false numbers of employees, payroll costs, and intended use of the loan proceeds – all of which was specifically designed to mislead the SBA and numerous banks administering the PPP and EIDLP loan programs. Shortly after the loans were funded, Saab engaged in numerous financial transactions designed to conceal the true nature and source of the funds, including electronically transferring portions of the loan proceeds between various bank accounts which Saab controlled. Saab, after transferring the loan proceeds though multiple accounts, utilized the laundered loan proceeds to enrich himself and others, including by personally making cash withdrawals and transferring funds to associates overseas.
Congress created the PPP and EIDLP as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Enacted on March 29, 2020, the CARES Act provided emergency financial assistance in connection with economic effects of the COVID-19 pandemic. One source of relief provided by the CARES Act was the allocation of funds for the issuance of forgivable loans to small businesses for job retention and certain other expenses through the PPP. The PPP allowed qualifying small businesses to receive unsecured loans on favorable terms, which they were required to use for specified expenses, including payroll costs, interest on mortgages, rent and utilities. The PPP provided for forgiveness of the loan if recipient businesses spent the proceeds on these specified expenses within a limited time period and used a certain percentage for payroll costs.
Another source of relief provided by the CARES Act was the EIDLP, which provided low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters. Under the program, EIDLP recipients were eligible to receive advances of up to $10,000 for small businesses within three days of applying for an EIDL. The amount of an EIDL advance –which did not need to be repaid – was determined based on the number of employees working for the applicant.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Anthony Bagnuola and Michael Maffei are in charge of the prosecution.
The Defendant:
RAMI SAAB (also known as “Rami Hasan”)
Age: 44
Glen Cove, New YorkE.D.N.Y. Docket No. 22-CR-344 (GRB)
Las Vegas Police Officer Convicted of Committing Three Casino RobberiesRead the Press Release
LAS VEGAS – A federal jury today convicted a Las Vegas Metropolitan Police Department (LVMPD) officer of robbing three casinos and stealing approximately $164,000 in total.
Caleb Mitchell Rogers (33) was found guilty of three counts of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence. United States District Judge Andrew P. Gordon presided over the trial. A sentencing date has been scheduled for October 12, 2023.
According to court documents and evidence presented during the four-day trial, Rogers stole approximately $73,810 from a casino in the western part of Las Vegas on November 12, 2021. A few months later, on January 6, 2022, he robbed a casino in North Las Vegas of approximately $11,500. In both robberies, he walked directly to the casino’s cashier cage and demanded money from the cashiers.
The third robbery occurred on February 27, 2022, in which Rogers ran toward two casino employees in the sportsbook area and yelled: “Get away from the money. I’ve got a gun. I will shoot you!” Rogers climbed over the counter and shoved one of the employees to the floor, before grabbing approximately $78,898 and placing it into a bag. Rogers fled when the employees triggered an alarm. As Rogers ran toward the parking garage, a casino security officer tackled him. Rogers drew a .357 caliber revolver and, with his finger on the trigger, threatened: “I’m going to shoot you!” Security officers were able to disarm Rogers and restrain him until LVMPD officers arrived. The officers arrested Rogers and seized his firearm. Checking the revolver’s serial number, officers learned that it belonged to the LVMPD.
The statutory maximum penalty is 20 years in prison for each count of interference with commerce by robbery, and life imprisonment for brandishing a firearm during and in relation to a crime of violence.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
This case was investigated by the FBI and the LVMPD. Assistant United States Attorneys Dan Cowhig and David Kiebler are prosecuting the case.
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La Crosse Man Charged with Drug CrimesRead the Press Release
MADISON, WIS. – In an indictment returned on June 28, 2023 by a federal grand jury sitting in Madison, Wisconsin, a La Crosse, Wisconsin man is charged with possessing methamphetamine for distribution and maintaining a drug house. The indictment is announced by Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin.
The indictment charges Alfredo Almanza, 42, with possessing 50 grams or more of methamphetamine with intent to distribute. The indictment alleges that he possessed the methamphetamine on March 22, 2023. The indictment also charges him with using and maintaining a place in La Crosse from March 15 to March 22, 2023, for the purpose of distributing and using methamphetamine.
Almanza was arrested on Wednesday, July 12 in La Crosse by investigators with the La Crosse and Tomah Police Departments and the Monroe County Sheriff’s Office. Almanza will make an initial appearance in U.S. District Court in Madison today.
If convicted, Almanza faces a mandatory minimum penalty of 5 years and a maximum of life in federal prison on the charge of possessing 50 grams or more of methamphetamine for distribution, and a maximum of 20 years on the charge of maintaining a drug house. The charges against him are the result of an investigation by the La Crosse and Tomah Police Departments and the Monroe County Sheriff’s Office. Assistant U.S. Attorney Kathryn Ginsberg is handling the prosecution.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Knoxville Man Sentenced to 24 Months in Prison and Ordered to Repay $411,963 for Health Care Fraud SchemeRead the Press Release
KNOXVILLE, Tenn. – On July 14, 2023, Ian P. Clarke, 43, currently of Knoxville, was sentenced to 24 months in prison by the Honorable Katherine A. Crytzer, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the plea agreement filed with the court, Clarke agreed to plead guilty to conspiracy to commit health care fraud, in violation of 18 U.S.C. § 1349. Judge Crytzer ordered Clarke to pay restitution to Medicare in the amount of $411,963, and a fine of $44,258. Following his imprisonment, Clark will be on supervised release for two years.
As set forth in the filed plea agreement, Clarke was responsible for the day-to-day operations of TN Premier Care, a medical clinic in East Tennessee. Clarke paid kickbacks to coconspirators in exchange for signed doctors’ orders for durable medical equipment (“DME”) that was medically unnecessary. TN Premier Care provided the DME to Medicare beneficiaries across the country who did not want or need it. Clarke then caused the DME orders to be submitted to Medicare for reimbursement on behalf of TN Premier Care.
The DME orders were obtained from “leads,” which consisted of a recorded call between a call-center employee or telemarketer and a Medicare beneficiary during which the beneficiary provided their Medicare information. The recordings were provided to doctors who used the information to generate a completed DME order. The doctors who signed the DME orders often did so regardless of medical necessity, in the absence of a preexisting doctor-patient relationship, without a physical examination, and sometimes based solely on a short telephonic conversation. The completed DME orders were uploaded to a shared cloud-based document storage system to which Clarke had access.
To conceal the conspiracy, Clarke and his coconspirators created sham contracts and documentation to disguise the kickbacks as legitimate payments for marketing and consulting services. Clarke also opened a separate bank account in TN Premier Care’s name for the purpose of paying kickbacks and receiving reimbursement checks from Medicare.
Between in or about July 2018 and in or about May 2019, Clarke caused the submission of approximately $778,429 in claims to Medicare for DME orders on behalf of TN Premier Care, for which Medicare paid to TN Premier Care approximately $411,963.
U.S. Attorney Francis M. Hamilton, III, of the Eastern District of Tennessee; U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) Special Agent in Charge Tamala E. Miles; and Federal Bureau of Investigation (FBI) Special Agent in Charge Joseph E. Carrico, made the announcement.
This case is the result of an investigation conducted by U.S. Department of Health and Human Services, Office of Inspector General, and the FBI.
Assistant United States Attorney William A. Roach, Jr., prosecuted the case.
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Kansas City Men Sentenced for Kidnapping and Torturing Victim in Wyandotte CountyRead the Press Release
KANSAS CITY, KAN. – Two Kansas men were sentenced to substantial terms of imprisonment following their convictions on kidnapping, firearm, and drug charges.
In February 2023, a federal jury found David Carr, 36, of Kansas City, and James Michael Poterbin, 47, of Edwardsville, guilty of kidnapping, conspiracy to distribute methamphetamine, and discharging a firearm in connection with a drug trafficking crime.
On July 6, 2023, a U.S. District Judge sentenced Carr to life in prison and Poterbin to 40 years’ imprisonment.
The convictions and sentences relate to the 2019 kidnapping and torture of a victim in Kansas City, Kansas. According to court documents and evidence presented at trial, after Carr and Poterbin mistakenly believed a woman had stolen drug money from them, they kidnapped her boyfriend and demanded payment for his release.
After beating, shooting, and stabbing the victim, Carr and Poterbin believed the victim was dead and left him in the house for days before he was discovered by another individual. After the victim was found alive and rescued, Carr ordered a co-conspirator to burn the house to the ground, endangering neighbors and first responders.
The Federal Bureau of Investigation (FBI) and the Kansas City, Kansas Police Department investigated the case. The Kansas City, Kansas Fire Department investigated the arson.
Assistant U.S. Attorneys Ryan J. Huschka and D. Christopher Oakley prosecuted the case. Assistant U.S. Attorney Sheri Catania presented the indictment to a grand jury and prepared the case for trial.
OCDETF Strike Force Cases
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The Kansas City Metro Strike Force’s mission also includes targeting violent street gangs and cartel members operating in and around the metropolitan area that are engaged in violent offenses and firearms offenses.
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Jefferson County Man Sentenced to 7+ Years in Prison on Gun ChargesRead the Press Release
ST. LOUIS – U.S. District Judge Rodney W. Sippel on Friday sentenced a convicted felon from Jefferson County, Missouri who was caught twice with guns to seven years, four months in prison.
The charges against Kentrez Robinson, now 31, of Festus, stem from two incidents in 2020.
On Aug. 11, 2020, St. Louis Metropolitan Police Department surveillance cameras alerted officers that a silver Pontiac Solstice was driving down Natural Bridge Avenue bearing a license plate belonging to a Chevy truck. Officers were also aware that a silver Pontiac Solstice had recently been reported stolen.
Detectives found the Solstice, parked and unoccupied, in the 1100 block of St. Louis Avenue, and then saw Robinson, who is a convicted felon, removing items from the car. Robinson had a loaded 9mm Beretta pistol in his pocket, along with fentanyl in two plastic bags.
On Oct. 5, 2020, a man reported being robbed of a gun and money on the parking lot of a market in the 3900 block of South Broadway. The vehicle driven by the robber was spotted by a license plate recognition camera near Page Boulevard and Walton Avenue and officers tried to pull it over. Robinson, who was driving, sped away, ignoring stop signs and traffic signals, and eventually reached speeds exceeding 100 m.p.h. on Interstate 70. After he left the interstate, Robinson’s vehicle hit a curb, flattening a front tire. But he kept going onto Interstate 55. Police were later able to disable the vehicle with a tire deflation device in the 5100 block of Vermont Avenue. Robinson got out and ran, climbing over at least two fences before he was arrested. He was caught with a satchel carrying the stolen gun and another pistol, as well as fentanyl.
Robinson pleaded guilty in December to two felony counts of being a felon in possession of a firearm.
The case was investigated by the St. Louis Metropolitan Police Department. Assistant U.S. Attorney Jennifer Szczucinski prosecuted the case.
International Tax Advisor Arrested for Helping to Conceal over $100 Million of Income for High-Net-Worth U.S. TaxpayersRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Thomas Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced the indictment of FRANK BUTSELAAR for participating in a conspiracy to engage in tax fraud over the course of over seven years. BUTSELAAR was an advisor to high-net-worth DJs and fashion industry clients who earned income all over the world (the “Clients”). The Clients earned millions of dollars every year. In certain years, these Clients became U.S. tax residents, meaning they had a legal obligation to pay U.S. taxes on their worldwide income. BUTSELAAR, working with other professionals, devised a strategy to unlawfully conceal from the U.S. Government millions of dollars of income the Clients were earning outside the United States during years they were U.S. tax residents. After having been arrested earlier this year following a request from the United States to Italy for provisional arrest for purposes of extradition, BUTSELAAR was taken back into custody earlier this week in Italy following a favorable ruling on the U.S. extradition request.
U.S. Attorney Damian Williams said: “As alleged, this defendant and his co-conspirators devised strategies to file false and fraudulent returns with the IRS for U.S. taxpayers of incredible means. Butselaar, as a tax advisor to many wealthy clients, knew intimately the responsibility his clients had to pay U.S. taxes on their income but ignored this obligation, opting instead to deceptively hide this income from the IRS. Our Office will continue to pursue those who use their expertise to unlawfully conceal income.”
IRS-CI Special Agent in Charge Thomas Fattorusso said: “Butselaar thought he was above the law. It’s alleged he operated this international fraud scheme to conceal millions of dollars in income earned by his high-profile clients around the world. This wasn’t just a get rich quick scheme, but rather Butselaar sought to play the long game and used a variety of sophisticated techniques to perpetuate this tax fraud over the course of several years. IRS-CI has a global reach, and we thank our J5 collaborators for their valuable partnership on this case. For Butselaar, it’s time to pay the tab.”
As alleged in the Indictment unsealed in White Plains federal court:[1]
FRANK BUTSELAAR conspired to defraud the United States and to conceal from the IRS through fraudulent, deceitful, and dishonest means the existence of millions of dollars of worldwide income generated by various clients, including Client-1 and Client-2, who are internationally renowned DJs (the “DJ Clients”). The DJ Clients, in particular, utilized offshore entities that at all relevant times BUTSELAAR and his co-conspirators knew the DJ Clients beneficially owned and effectively controlled. These entities were, in turn, held by trusts that the DJ Clients established on the advice of BUTSELAAR and others (the “Offshore Structures”). As part of their efforts to conceal the DJ Clients’ worldwide income, BUTSELAAR and his co-conspirators created and implemented a fraudulent scheme to use straw beneficiaries to conceal the income held within the DJ Clients’ Offshore Structures from the IRS.
In addition, FRANK BUTSELAAR and his co-conspirators devised and implemented similar fraudulent schemes for certain fashion industry clients (the “Fashion Industry Clients”) that involved fraudulent transfers of the Fashion Industry Clients’ overseas companies to family members, knowing that the Fashion Industry Clients would maintain beneficial ownership of the overseas companies and the income therefrom.
The tax evasion schemes, created and implemented by FRANK BUTSELAAR and his co-conspirators, caused to be filed Forms 1040 for the DJ Clients and the Fashion Industry Clients (during the time those Clients were U.S. tax residents) that fraudulently omitted over $100 million in worldwide income earned by those Clients.
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BUTSELAAR, 63, of Naarden, Netherlands, was charged with one count of conspiracy to defraud the United States, which carries a maximum penalty of five years in prison, and five counts of aiding and abetting the filing of false tax returns, each of which carries a maximum penalty of three years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the IRS-CI and the Joint Chiefs of Global Tax Enforcement (“J5”). Mr. Williams also thanked the Justice Department’s Office of International Affairs and Italy’s Ministero della Giustizia, Arma dei Carabinieri, and Guardia di Finanza for their assistance.
The J5 works together to gather information, share intelligence, and conduct coordinated operations against transnational financial crimes. The J5 includes the Australian Taxation Office, the Canadian Revenue Agency, the Dutch Fiscal Intelligence and Investigation Service, His Majesty’s Revenue and Customs from the United Kingdom, and the IRS-CI from the U.S.
This case is being handled by the Office’s White Plains Division and Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Shiva H. Logarajah and Nicholas S. Bradley are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is 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. Butselaar IndictmentInscription House Man Sentenced to over 24 Years for MurderRead the Press Release
PHOENIX, Ariz. – Eric Lee Kinney, 37, of Inscription House, Arizona, was sentenced on June 26, 2023, by United States District Judge Dominic W. Lanza to 292 months in prison, followed by five years of supervised release. Kinney pleaded guilty to Second Degree Murder.
On or about November 5, 2022, Kinney, a member of the Navajo Nation, stabbed the victim to death and later fled from law enforcement. Upon his arrest, Kinney directed law enforcement agents to where he had hidden the murder weapon.
The Federal Bureau of Investigation and the Navajo Nation Division of Public Safety conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-22-08132-PCT-DWL
RELEASE NUMBER: 2023-108_Kinney# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Idaho Springs Man Sentenced to Federal Prison for Wire Fraud and Money LaunderingRead the Press Release
DENVER - The United States Attorney’s Office for the District of Colorado announces that Edward Baker Harrington, age 59, of Idaho Springs, was sentenced to 51 months in prison for wire fraud and money laundering. Harrington was also ordered to pay restitution in the amount of $1,078,033.50.
According to the plea agreement, from April 2020 through September 2021, the defendant submitted a number of fraudulent Paycheck Protection Program (PPP) applications to seven banks and one lender on behalf of business entities that he purportedly controlled. These PPP applications contained a number of false and fraudulent certifications and representations. The defendant obtained more than $1,000,000 in PPP loans as a result of the scheme. He falsely represented that all PPP funds would be used to pay eligible business expenses, when, in fact, the proceeds were used for his personal benefit to purchase goods and property, including real estate and vehicles. The defendant submitted PPP loan forgiveness applications in which he made more false representations and certifications regarding his businesses and his compliance with the PPP program rules, including rules related to the eligible uses of PPP loan proceeds.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted in March 2020 and was designed to provide emergency financial assistance to Americans dealing with the economic impact of the COVID-19 pandemic. The CARES Act created PPP, a program administered by the Small Business Administration that provided loans to small businesses to retain workers, maintain payroll, and certain other expenses consistent with PPP rules.
“The defendant enriched himself with taxpayer funds meant to help workers and businesses weather the COVID-19 pandemic,” said U.S. Attorney Cole Finegan. "Thanks to the efforts of our law enforcement partners at the IRS, he will face the consequences of his fraud.”
“Harrington used the Paycheck Protection Program as his personal ATM. He brazenly stole over one million dollars with no regard for the hard-working American business owners and families this program was intended to support,” said Andy Tsui, Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “IRS-CI has investigated over 1000 instances of Covid-19 relief fraud since the CARES Act was introduced, and this sentence should send a clear message that we will continue to hold those accountable who abused the system for their personal benefit.”
This case is being investigated by Internal Revenue Service – Criminal Investigation. This case is being prosecuted by Assistant United States Attorneys Nicole Cassidy and Martha Paluch.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Case Number: 22-cr-00324
Idaho Falls Man Sentenced to 8 Years in Federal Prison for Possession with the Intent to Distribute MethamphetamineRead the Press Release
POCATELLO – Stephen Carston Wells, 27, of Idaho Falls, was sentenced to 96 months in federal prison for possession with the intent to distribute methamphetamine, U.S. Attorney Josh Hurwit announced today.
According to court records, on August 18, 2022, Idaho Falls Police responded to a welfare check in Idaho Falls and found Wells passed out in his vehicle. Wells informed law enforcement that he had “a little bit of weed,” in his vehicle. Law enforcement then searched the Wells vehicle. While searching Wells vehicle law enforcement found 459 grams of methamphetamine, 6 grams of cocaine, 7.7 grams of marijuana, 13.9 grams of THC oil, a loaded .45 caliber pistol, a loaded AR‑15 rifle, and additional loaded AR-15 magazines.
Senior U.S. District Judge B. Lynn Winmill imposed the sentence and also ordered Wells to serve five years of supervised release following his prison sentence. Wells pleaded guilty to the charge on April 24, 2023
U.S. Attorney Hurwit commended the Idaho Falls Police Department for their work on the case.
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High-Level Member of ISIS Sentenced to Life in Prison for Material Support to a Foreign Terrorist Organization Resulting in DeathRead the Press Release
A New York man was sentenced today to life in prison on one count of conspiracy to provide material support to the Islamic State of Iraq and al-Sham (ISIS) and five substantive counts of providing material support to ISIS in the forms of personnel, including himself, Australian citizen Jake Bilardi and others, as well as services, weapons, property and equipment, and false documentation and identification, all between January 2013 and June 2017, when the defendant was arrested in Sarajevo, Bosnia and Herzegovina.
According to court documents, Mirsad Kandic, 41, of Brooklyn and Kosovo, was convicted by a federal jury in May 2022 following a three-week trial in Brooklyn.
“Serving ISIS’s deadly terror campaign, this defendant fought on the battlefield, spread propaganda, smuggled weapons, and radicalized Western recruits,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The National Security Division was created to counter foreign terrorist organizations like ISIS and, with our partners, we remain committed to identifying and holding accountable those who provide support to such terrorist groups.”
“Kandic was a high-ranking member of ISIS who relished the death and destruction he wrought while providing every conceivable form of material support to a terrorist organization, including the recruitment of countless others to ISIS’s bloody campaigns in Syria and elsewhere,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Today’s sentence holds the defendant accountable for his conduct and ensures that he will never again pose a threat to the United States or any of our allies. This office will remain relentless in prosecuting terrorists who threaten the safety and security of the United States and U.S. interests around the world.”
“The defendant in this case provided numerous forms of material support to ISIS for years, and today, he was brought to justice for his actions,” said Assistant Director Robert R. Wells of the FBI’s Counterterrorism Division. “This sentencing demonstrates the serious commitment of the FBI and our law enforcement partners around the world to investigating and holding accountable terrorists who threaten the safety and security of American interests, and those of our allies.”
After several failed attempts to travel from the United States to Istanbul, Turkey, Kandic took a two-day Greyhound bus ride from New York City to Monterrey, Mexico, in November 2013, and flew through Panama, Brazil, Portugal, Germany, Kosovo, and Turkey before arriving in Syria at the end of 2013. Once in Syria, the defendant joined ISIS and became a fighter for the group in Haritan, an ISIS stronghold in the outskirts of Aleppo, wielding Russian-made PK machine guns and AK-47 assault rifles.
ISIS leadership then sent the defendant to Turkey to take up the role of smuggling foreign fighters and weapons into Syria from abroad, and to serve as an emir for ISIS media. Kandic disseminated ISIS recruitment messages and gruesome propaganda using more than 120 Twitter accounts. For example, the defendant sent out an ISIS-produced “documentary” titled “Flames of War.” This video celebrated ISIS conquests and macabre executions of ISIS captives, including instances where victims were forced to dig their own graves before being summarily executed by gunshot. The defendant tweeted that this video was the “best thing ever seen on screen.”
Kandic was a prolific recruiter of foreign fighters for ISIS. He sent thousands of radicalized ISIS volunteer fighters from Western countries into ISIS-controlled territories in Syria and elsewhere in the Middle East. This included a fellow New Yorker, Ruslan Maratovich Asainov, who became an ISIS sniper and sniper trainer, and another individual who became an emir for ISIS safehouses in the Idlib province of Syria. Asainov was convicted after trial in February 2023 of conspiracy to provide material support to ISIS, two substantive counts of providing material support to ISIS, one count of receiving military-type training from ISIS, and obstruction of justice. He is awaiting sentencing.
A foreign fighter recruited by the defendant was Jake Bilardi of Australia. Bilardi contacted the defendant in June 2014 for assistance in traveling to Syria to join ISIS. Kandic provided Bilardi – who had just turned 18 years old and had never traveled internationally before – with instructions and guidance for reaching Istanbul, Turkey. Kandic then arranged for Bilardi to be picked up at the airport in Istanbul and smuggled him into Syria. Kandic maintained contact with Bilardi as he became an ISIS fighter and ISIS suicide bomber. Bilardi went on to commit a suicide truck attack with fellow ISIS members on March 11, 2015, in Ramadi Iraq, killing himself, more than 30 Iraqi soldiers and an Iraqi policeman. Prior to the attack, the defendant wished Bilardi well and stated, “May Allah make there [sic] inner organs implode.” Bilardi’s attack was coordinated with others committed at the same time; 30 members of the Iraqi military were killed, 61 were injured, and 25 were missing, whose bodies were never found, all as a result of this coordinated series of attacks. After the attack, the defendant celebrated Bilardi’s service to ISIS, on Twitter and to a co-conspirator. A member of the Iraqi Army general staff testified at trial that the March 11, 2015, attack paved the way for ISIS’s takeover of Ramadi and the Anbar Province of Iraq several weeks later.
Kandic also provided battlefield intelligence to top ISIS leadership. He also shaped the information environment in which ISIS operated by enforcing ISIS media and publicity discipline. For example, the defendant directed other ISIS supporters to refrain from posting any information about the success (or failure) of ISIS recruitment efforts as well as to minimize any reporting about ISIS military action in specific military actions. Kandic managed money for ISIS fighters in Syria, including two ISIS fighters who gave the defendant their bank cards, from which bank records showed more than $40,000 was transacted. Kandic smuggled weapons to ISIS in Syria, including a night vision scope for an ISIS sniper. Kandic operated a private market via Telegram – called “Khilafah (Caliphate) Market” – for which he was the group administrator with authority to restrict access to the group. Members posted firearms and military equipment for sale, including mortars and suicide belts (i.e., improvised explosive devices). Among the members of Kandic’s private Telegram market was Abu Luqman, who, at the time, was the ISIS governor for the Raqqa province, ISIS’s de facto capital in Syria.
Assistant U.S. Attorneys Saritha Komatireddy and J. Matthew Haggans for the Eastern District of New York are prosecuting the case, with assistance from Paralegal Specialist Huda Abouchaer and Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section.
The Justice Department’s Office of International Affairs, the FBI’s Legal Attachés abroad and foreign authorities in multiple countries on three continents provided critical assistance in this case. The Bosnian and Herzegovina State Investigation and Protection Agency, the Bosnian and Herzegovina State Intelligence and Security Agency, the Bosnian and Herzegovina Foreigners’ Affairs Service, the Bosnian and Herzegovina State Prosecutor’s Office, the Ministry of Justice of Bosnia and Herzegovina, the Australian Federal Police, the Victoria Police (Australia), the Australian Border Force, the Australian Department of Foreign Affairs and Trade, the Australian Attorney-General’s Department, the Prosecutor General’s Office of the Republic of Kazakhstan, the Iraqi Ministry of Defense, Joint Operations Command in Iraq, and the FBI Legal Attaché Offices in Sarajevo, Canberra, Nur-Sultan, and Baghdad, provided extraordinary assistance in the investigation and prosecution. The Ministry of Justice for the Republic of Finland, and Federal Office of Justice in the Federal Republic of Germany, the Department of Justice & Constitutional Development in the Republic of South Africa and the central authorities responsible for mutual legal assistance in Albania, North Macedonia, Montenegro and Ukraine; and the FBI’s Legal Attaché Offices in those countries provided valuable support in the investigation.
High Level Member of ISIS Sentenced to Life in Prison for Material Support to a Foreign Terrorist Organization Resulting in DeathRead the Press Release
Earlier today, Mirsad Kandic was sentenced by United States District Judge Nicholas G. Garaufis to life imprisonment following his May 2022 trial conviction on one count of conspiracy to provide material support to the Islamic State of Iraq and al-Sham (ISIS), and five substantive counts of providing material support to ISIS in the forms of personnel, including himself, Australian citizen Jake Bilardi, and others, as well as services, weapons, property, and equipment, and false documentation and identification, all between January 2013 and June 2017, when the defendant was arrested in Sarajevo, Bosnia and Herzegovina. Kandic was convicted by a federal jury in May 2022 following a three-week trial in federal court in Brooklyn.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, Christie M. Curtis, Acting Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), Edward A. Caban, Acting Commissioner, New York City Police Department (NYPD), announced the sentence.
“Kandic was a high-ranking member of ISIS who relished the death and destruction he wrought while providing every conceivable form of material support to a terrorist organization, including the recruitment of countless others to ISIS’s bloody campaigns in Syria and elsewhere,” stated United States Attorney Peace. “Today’s sentence holds the defendant accountable for his conduct and ensures that he will never again pose a threat to the United States or any of our allies. This Office will remain relentless in prosecuting terrorists who threaten the safety and security of the United States and U.S. interests around the world.”
“Serving ISIS’s deadly terror campaign, this defendant fought on the battlefield, spread propaganda, smuggled weapons, and radicalized Western recruits,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The National Security Division was created to counter foreign terrorist organizations like ISIS and, with our partners, we remain committed to identifying and holding accountable those who provide support to such terrorist groups.”
“Let this sentence affirm that HSI will not abide any individual or organization that threatens the national security of the United States,” said HSI New York Special Agent in Charge Ivan J. Arvelo. “Mirsad Kandic’s steadfast physical and material support of ISIS brought untold additional members into the organization, sowing death and destruction throughout ISIS territory and the world. This investigation and successful prosecution were only possible through the close collaboration of U.S. and international partners working together to track down those who provide support to foreign terrorist organizations and bring them to justice.”
As proven at trial, Kandic had multiple responsibilities within ISIS, including recruiting foreign fighters, trafficking foreign fighters from the West through Turkey and into Syria, and obtaining weapons, military equipment, maps, money, and false identifications for ISIS fighters. In carrying out these responsibilities, Kandic worked directly with ISIS emirs and battlefield commanders, including Bajro Ikanovic, who commanded an ISIS training camp in Syria beginning in or around 2014. Ikanovic, in turn, reported to Omar Shishani, then the top military commander for ISIS, and a key advisor to Abu Bakr al-Baghdadi, at the time the leader of ISIS and the self-declared Caliph of the Islamic State.
After several failed attempts to travel from the United States to Istanbul, Turkey, Kandic took a two-day Greyhound bus ride from New York City to Monterrey, Mexico, in November 2013, and flew through Panama, Brazil, Portugal, Germany, Kosovo, and Turkey before arriving in Syria at the end of 2013. Once in Syria, the defendant joined ISIS and became a fighter for the group in Haritan, an ISIS stronghold in the outskirts of Aleppo, wielding Russian-made PK machine guns and AK-47 assault rifles.
ISIS leadership then sent the defendant to Turkey to take up the role of smuggling foreign fighters and weapons into Syria from abroad, and to serve as an emir for ISIS media. Kandic disseminated ISIS recruitment messages and gruesome propaganda using more than 120 Twitter accounts. For example, the defendant sent out an ISIS-produced “documentary” titled the “Flames of War.” This video celebrated ISIS atrocities and macabre executions of ISIS captives, including instances where victims were forced to dig their own graves before being summarily executed by gunshot. The defendant tweeted that this video was the “best thing ever seen on screen.”
Kandic was a prolific recruiter of foreign fighters for ISIS. He sent thousands of radicalized ISIS volunteer fighters from Western countries into ISIS-controlled territories in Syria and elsewhere in the Middle East. This included a fellow New Yorker, Ruslan Maratovich Asainov, who became an ISIS sniper and sniper trainer, and another individual who became an emir for ISIS safehouses in the Idlib province of Syria. Asainov was convicted after trial in February 2023 of conspiracy to provide material support to ISIS, two substantive counts of providing material support to ISIS, one count of receiving military-type training from ISIS, and obstruction of justice. He is awaiting sentencing.
A foreign fighter recruited by the defendant was Jake Bilardi of Australia. Bilardi contacted the defendant in June 2014 for assistance in traveling to Syria to join ISIS. Kandic provided Bilardi—who had just turned 18 years old and had never traveled internationally before—with instructions and guidance for reaching Istanbul, Turkey. Kandic then arranged for Bilardi to be picked up at the airport in Istanbul and smuggled him into Syria. Kandic maintained contact with Bilardi as he became an ISIS fighter and ISIS suicide bomber. Bilardi went on to commit a suicide truck attack with fellow ISIS members on March 11, 2015, in Ramadi Iraq, killing himself, more than 30 Iraqi soldiers, and an Iraqi policeman. Prior to the attack, the defendant wished Bilardi well and stated, “May Allah make there [sic] inner organs implode.” Bilardi’s attack was coordinated with others committed at the same time; 30 members of the Iraqi military were killed, 61 were injured, and 25 were missing, whose bodies were never found, all as a result of this coordinated series of attacks. After the attack, the defendant celebrated Bilardi’s service to ISIS, on Twitter and to a co-conspirator. A member of the Iraqi Army general staff testified at trial that the March 11, 2015 attack paved the way for ISIS’s takeover of Ramadi and the Anbar Province of Iraq several weeks later.
Kandic also provided battlefield intelligence to top ISIS leadership. He also shaped the information environment in which ISIS operated by enforcing ISIS media and publicity discipline. For example, the defendant directed other ISIS supporters to refrain from posting any information about the success (or failure) of ISIS recruitment efforts as well as to minimize any reporting about ISIS military action in specific military actions. Kandic managed money for ISIS fighters in Syria, including two ISIS fighters who gave the defendant their bank cards, from which bank records showed more than $40,000 was transacted. Kandic smuggled weapons to ISIS in Syria, including a night vision scope for an ISIS sniper. Kandic operated a private market via Telegram—called “Khilafah (Caliphate) Market”—for which the he was the group administrator with authority to restrict access to the group. Members posted firearms and military equipment for sale, including mortars and suicide belts, i.e., improvised explosive devices. Among the members of Kandic’s private Telegram market was Abu Luqman, who, at the time, was the ISIS governor for the Raqqa province, ISIS’s de facto capital in Syria.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Saritha Komatireddy and J. Matthew Haggans are in charge of the prosecution, with assistance from Paralegal Specialist Huda Abouchaer, and Trial Attorney Jennifer Levy of the Counterterrorism Section of the National Security Division of the Department of Justice.
The Justice Department’s Office of International Affairs, the FBI’s Legal Attachés abroad, and foreign authorities in multiple countries on three continents provided critical assistance in this case. The Department of State’s Regional Security Office in Sarajevo provided critical assistance in this case. In addition, the Office extends its appreciation to the Bosnian State Investigation and Protection Agency, the Bosnian State Intelligence and Security Agency, the Bosnian Foreigner’s Affairs Service, the Bosnian State Prosecutor’s Office, the Australian Federal Police, the Victoria Police (Australia), the Australian Border Force, the Australian Department of Foreign Affairs and Trade, the Australian Attorney-General’s Department, the Prosecutor General’s Office of the Republic of Kazakhstan, the Iraqi Ministry of Defense, Joint Operations Command in Iraq, and the FBI Legal Attaché Offices in Sarajevo, Canberra, Nur-Sultan, and Baghdad, for their extraordinary assistance in the investigation and prosecution. The Office also thanks the Ministry of Justice for the Republic of Finland, the Stuttgart Police Department and Federal Office of Justice in the Federal Republic of Germany, the Department of Justice & Constitutional Development in the Republic of South Africa, and the central authorities responsible for mutual legal assistance in Albania, North Macedonia, Montenegro, and Ukraine; and the FBI’s Legal Attaché Offices in those countries for their assistance in the investigation.
The Defendant:
MIRSAD KANDIC
Age: 41
Brooklyn, New York; KosovoE.D.N.Y. Docket No. 17-CR-449 (NGG)
Related Defendants:
RUSLAN MARATOVICH ASAINOV
Age: 46
Syria and Bay Ridge, Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-402 (NGG)
Harrisburg Man Charged with Hobbs Act RobberiesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Clarence Bernard Mitchell, age 33, of Harrisburg, Pennsylvania, was indicted yesterday by a federal grand jury on charges of robberies of businesses engaged in interstate commerce (Hobbs Act robbery).
According to United States Gerard M. Karam, the indictment alleges that on June 5, 2023, Mitchell entered the Agate Smoke Shop in Dauphin County, approached the cash register, pointed a paper bag at the employee in a manner indicating Mitchell had a gun in the bag, instructed the employee to open the register, and took money by means of threatened force. The indictment further alleges that on June 8, 2023, Mitchell returned to the Agate Smoke Shop and robbed the store in a similar manner as on June 5, 2023. The indictment also alleges that on June 14, 2023, Mitchell entered a Cricket Wireless, LLC authorized retailer in Dauphin County, approached the sales counter, pointed a paper bag at the employee in a manner indicating Mitchell had a gun in the bag, and took money by means of threatened force.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg Bureau of Police. Assistant U.S. Attorney David C. Williams is prosecuting the case.
The maximum penalty under federal law for the charged offense is up to 20 years 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.
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Gainesville Man Sentenced to Federal Prison for Identity Theft and Possessing Firearms as A Convicted FelonRead the Press Release
Ocala, Florida – Senior United States District Judge Gregory A. Presnell has sentenced Brandon Jamal Alex Grant (23, Gainesville) to three years and one month in federal prison for possessing counterfeit access devices with the intent to defraud and possessing firearms as a convicted felon. Grant had pleaded guilty on May 2, 2023.
According to court documents, on July 5, 2022, troopers from the Florida Highway Patrol pulled over a Maserati owned and operated by Grant for driving on a suspended license. After troopers smelled marijuana, they searched the vehicle and discovered 61 fraudulent debit and credit cards, a forged identification card bearing Grant’s photograph, numerous fraudulent checks, electronic devices used to facilitate fraud (including a laptop computer and laser printer), two loaded firearms, and more than $14,000 in cash. Grant has prior state felony convictions for possession of a forged driver’s license, possession of oxycodone, and grand theft. As a convicted felon, he is prohibited from possessing firearms and ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Secret Service, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney William S. Hamilton.
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.
Fort Myers Couple Indicted for $3.4 Million COVID Relief Fraud SchemeRead the Press Release
Fort Myers, Florida –United States Attorney Roger B. Handberg announces the return by a grand jury of an indictment charging Timothy Craig Jolloff (46, Fort Myers) and Lisa Ann Jolloff (56, Fort Myers) with wire fraud, conspiracy to commit money laundering, and illegal monetary transactions. Timothy Jolloff is also charged with multiple counts of bank fraud. The chart below summarizes the indictment charges and maximum penalties as to each defendant.
Defendant
Charge
Maximum Penalty per Count
Timothy Craig Jolloff
Wire Fraud (11 Counts)
20 years in federal prison
Bank Fraud (7 Counts)
30 years in federal prison
Conspiracy to Commit Money Laundering
10 years in federal prison
Illegal Monetary Transactions (4 Counts)
10 years in federal prison
Lisa Ann Jolloff
Wire Fraud
20 years in federal prison
Conspiracy to Commit Money Laundering
10 years in federal prison
Illegal Monetary Transactions (4 counts)
10 years in federal prison
The indictment also notifies the defendants that the United States intends to forfeit a 2019 GMC truck and approximately $3,403,265, which are alleged to be traceable to proceeds of the offense.
According to the indictment and other court documents, between April and March 2021, Timothy Jolloff and his wife, Lisa Jolloff, submitted false and fraudulent Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) loan applications to the Small Business Administration, as well as PPP approved lenders. In the PPP loan applications, the Jolloffs falsely represented the number of employees and average monthly payroll for the applicant businesses. The Jolloffs also falsely represented and certified that PPP funds would be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments. In EIDL applications, Timothy Jolloff misrepresented the gross revenue and cost of goods sold for the applicant businesses for which he sought EIDL funds. He also misrepresented the number of employees of the EIDL applicant businesses. Moreover, in loan documents signed and submitted by Timothy Jolloff for EIDL loans, he mispresented that EIDL proceeds would be used solely for working capital and to alleviate economic injury.
The Jolloffs’ false and fraudulent representations caused the Small Business Administration and PPP lenders to approve and fund 11 EIDLs and 8 PPP loans, as well as EIDL Advances, totaling approximately $3,403,265. The Jolloffs then conspired to unlawfully use PPP and EIDL funds to purchase three pontoon boats totaling more than $300,000, real estate in Fort Myers, Florida and Angola, Indiana, home furnishings, outdoor kitchens for their homes, a 2019 GMC truck, a 2020 Polaris UTV, as well as jewelry, and two dogs. The Jolloffs also fraudulently used more than $600,000 in EIDL funds to purchase a furniture business in Indiana and a landscaping business in Sarasota, Florida, which had no connection to the businesses for which the Jolloffs had obtained COVID relief money.
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.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Trent Reichling.
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.
Former Woonsocket Man Sentenced to Federal Prison for Trafficking Crack CocaineRead the Press Release
PROVIDENCE – A former Woonsocket man who, according to court documents, operated a significant drug dealing business in the Woonsocket area has been sentenced to five years in federal prison, announced United States Attorney Zachary A. Cunha.
David Kennedy, 33, pleaded guilty on October 1, 2019, to a charge of conspiracy to distribute and possession with intent to distribute 28 grams or more of cocaine base, admitting that, on at least three occasions while under law enforcement surveillance, he supplied a total of 44.25 grams of crack cocaine to customers brought to him by an individual who acted as a “broker.”
At the time of his arrest in July 2019, Kennedy was found by members of the FBI Safe Streets Task Force to be in possession of 119 grams of crack cocaine, 895 grams of powder cocaine, and $3,000 in cash.
At sentencing on Tuesday, U.S. District Court Chief Judge John J. McConnell, Jr., sentenced Kennedy to 60 months of incarceration to be followed by four years of federal supervised release.
Christian Nieves, 37, formerly of Woonsocket, identified during the investigation as the “broker” working with Kennedy, pleaded guilty on October 1, 2019, to conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base. He was sentenced by Chief Judge McConnell, Jr., in January 2020 to five years in federal prison to be followed by four years of federal supervised release.
The cases were prosecuted by Assistant United States Attorneys Sandra R. Hebert and Christine D. Lowell.
The Rhode Island FBI Safe Streets Task Force consists of agents and law enforcement officers from the FBI, United States Marshals Service, Central Falls Police Department, Cranston Police Department, Pawtucket Police Department, Providence Police Department, West Warwick Police Department, Woonsocket Police Department, and Rhode Island State Police.
This was prosecuted as part of the joint federal, state, and local 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.
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Former Virginia Police Officer Pleads Guilty to Civil Rights Offense for Sexually Assaulting Minor VictimRead the Press Release
A former police officer pleaded guilty today in federal court in the Eastern District of Virginia to violating the civil rights of a minor victim by forcibly sexually assaulting her.
According to court documents, Cleshaun A. Cox, 31, admitted that on or about May 27, 2019, while he was in uniform and working in his official capacity as an officer with the Portsmouth Police Department in Portsmouth, Virginia, he encountered Victim 1, a 17-year-old female, during a call for a noise complaint. After another, more senior officer told Victim 1 to drive home, Cox followed Victim 1 to her home in his marked police vehicle. Cox instructed Victim 1 to drive to a parking lot, where he then instructed her to get into his vehicle. Cox then drove Victim 1 to an isolated area. There, he forced Victim 1 to have vaginal sex with him against her will. Cox admitted that he knew that Victim 1 was only 17 years old and that he knew that she did not want to have sex with him. Cox also admitted to lying to state investigators about his actions that night.
“The defendant violated his oath and abused his power to sexually assault a child,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “The federal government will not tolerate law enforcement officials who commit acts of sexual assault and abuse, and we will continue to seek justice for the survivors of these heinous crimes.”
“Police officers are entrusted to safeguard and protect our community, especially vulnerable children,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Police officers are not above the law. Those who abuse their position to commit such abhorrent acts must and will be held accountable.”
“Our communities trust police officers to keep their members safe, and the defendant violated that trust when he sexually assaulted a child while on duty,” said FBI Assistant Director Luis Quesada of the Criminal Investigative Division. “The FBI is committed to ensuring that law enforcement officers who abuse their authority are held accountable for their crimes.”
Sentencing has been set for Nov. 28. With his guilty plea, Cox faces a minimum of 15 years in prison and a maximum of 20 years in prison, up to five years of supervised release and registration as a sex offender under the Federal Sex Offender Registration and Notification Act. In August 2021, Cox pleaded guilty to state level charges of carnal knowledge and abduction and was sentenced to 15 years in prison, 10 years of which was later suspended by the court.
The FBI Norfolk Field Office investigated the case.
Special Litigation Counsel Kathryn E. Gilbert of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney E. Rebecca Gantt for the Eastern District of Virginia are prosecuting the case.
Former Postal Employee Pleads Guilty to Stealing and Selling FirearmRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Maisha K. Daniels (46, Jacksonville) today pleaded guilty to selling a stolen firearm. Daniels faces a maximum penalty of 10 years in federal prison. A sentencing date has not been set.
According to the plea agreement, Daniels worked for the U.S. Postal Service at various times, beginning in 1998. In April 2022, she was assigned to a distribution center in Jacksonville. While it was passing through that particular facility, a Sig Sauer semi-automatic pistol was stolen from a parcel that a licensed firearms dealer had shipped from Nevada to Florida. Daniels worked on the day that the pistol went missing. The Nevada firearms dealer reported the pistol stolen, and one week later, Daniels sold it to a firearms dealer in Jacksonville for $250. While conducting the transaction, Daniels provided her name, address, and cellphone number. A security camera captured an image of her during the sale.
Daniels later agreed to be interviewed by special agents from the U.S. Postal Service – Office of Inspector General and the Bureau of Alcohol, Tobacco, Firearms and Explosives. She initially denied any knowledge about particular items being stolen from the postal distribution center and ever owning a firearm. When shown a picture of her at the Jacksonville gun dealer, Daniels eventually admitted that she had stolen a pistol at work. She also admitted stealing three Coach brand clutch purses.
When the agents searched Daniels’s belongings at work, they found four bags of THC edibles; a sealed letter bearing postal stamps that was addressed neither to nor from Daniels; a gift box and card, which was also not addressed to her, but instead to a third party; a Coach hat in its packaging; four gift cards; a Coach watch with its original box, and a Coach scarf and its packaging. Daniels denied stealing the Coach items and claimed that they were gifts from other postal employees.
This case was investigated by the U.S. Postal Service – Office of Inspector General and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
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.
Former Portsmouth Police Officer Pleads Guilty to Sexually Assaulting Minor VictimRead the Press Release
NORFOLK, Va. – A former police officer pleaded guilty today in federal court in the Eastern District of Virginia to violating the civil rights of a minor victim by forcibly sexually assaulting her.
According to court documents, Cleshaun A. Cox, 31, admitted that on or about May 27, 2019, while he was in uniform and working in his official capacity as an officer with the Portsmouth Police Department in Portsmouth, Virginia, he encountered Victim 1, a 17-year-old high school student, during a call for a noise complaint. After another, more senior officer told Victim 1 to drive home, Cox—unbeknownst to the other officer— followed Victim 1 to her home in his marked police vehicle. Cox instructed Victim 1 to drive to a parking lot, where he then instructed her to get into his vehicle. Cox then drove Victim 1 to an isolated area. There, he forced Victim 1 to have vaginal sex with him against her will. Cox admitted that he knew that Victim 1 was only 17 years old and that he knew that she did not want to have sex with him. Cox also admitted to lying to state investigators about his actions that night, including by falsely stating he did not know Victim 1’s true age and by falsely stating that it was Victim 1 who had proposed a sexual act to him.
“Police officers are entrusted to safeguard and protect our community, especially vulnerable children,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “Police officers are not above the law. Those who abuse their position to commit such abhorrent acts must and will be held accountable.”
“The defendant violated his oath and abused his power to sexually assault a child,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “The federal government will not tolerate law enforcement officials who commit acts of sexual assault and abuse, and we will continue to seek justice for the survivors of these heinous crimes.”
“Our sworn police officers have a duty to uphold the constitution and are entrusted with protecting the safety and quality of life of the communities they serve,” said Brian Dugan, Special Agent in Charge of the FBI Norfolk Field Office. “Cleshaun Cox broke that trust when he, while acting under color of law, physically assaulted a teenage girl and violated her rights to bodily integrity. Cox’s conduct is not reflective of the honor and professionalism with which Portsmouth Police officers perform their duties, and I am grateful for the department’s collaboration in this investigation.”
Sentencing is scheduled for November 28. Under the plea agreement, Cox faces at least 15 years and up to 20 years in prison, up to five years of supervised release and registration as a sex offender under the Federal Sex Offender Registration and Notification Act. In August 2021, Cox pleaded guilty in Portsmouth Circuit Court to charges of carnal knowledge and abduction and was sentenced to 15 years in prison, 10 years of which was later suspended by the court.
Assistant U.S. Attorney E. Rebecca Gantt for the Eastern District of Virginia and Special Litigation Counsel Kathryn E. Gilbert of the Civil Rights Division’s Criminal Section are prosecuting the case.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, Kristen Clarke, Assistant Attorney General of the Department of Justice’s Civil Rights Division and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. District Judge Elizabeth Wilson Hanes accepted the plea.
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-84.
Former Oklahoma Undersheriff Sentenced for Using Excessive Force and Violating Civil Rights of DetaineeRead the Press Release
A former Oklahoma undersheriff was sentenced to 22 months in prison and three months of supervised release for violating the civil rights of a handcuffed detainee by using excessive force.
On Nov. 8, 2022, Kendall Bryan Morgan, 45, pleaded guilty to one count of deprivation of rights under color of law. At the plea hearing, Morgan, the former undersheriff in the LeFlore County Sheriff’s Department, admitted that on Jan. 25, 2017, he repeatedly struck a person under arrest and in handcuffs, causing the victim bodily injury. At the time of the assault, the individual was not resisting arrest and posed no threat to officers or the public. Morgan’s excessive force furthered no legitimate law enforcement purpose and violated the victim’s constitutional right to be free from unreasonable force by law enforcement.
“This defendant abused his authority as a law enforcement officer and violated the public’s trust by repeatedly assaulting and injuring a handcuffed arrestee,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold accountable those officers who abuse their authority, wherever such abuses occur.”
“The reputation of the entire law enforcement profession is tarnished when an officer betrays the oath to protect and serve,” said Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office. “The sentencing of Mr. Morgan sends a clear message that the FBI will not tolerate anyone who dishonors the badge by using excessive force.”
“Law enforcement officers are bound by oath to serve and protect all citizens equally – this requires consistency, compassion, and respect for the dignity of all,” said U.S. Attorney Christopher J. Wilson for the Eastern District of Oklahoma. “The defendant violated that oath, and justice demands he pay the price for blatantly disregarding the law and the civil rights of others.”
Morgan will remain in the custody of the U.S. Marshal pending transportation to a designated U.S. Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant Attorney General Clarke, U.S. Attorney Wilson and Special Agent in Charge Gray made the announcement.
The FBI Oklahoma City Field Office investigated the case.
Assistant U.S. Attorney Jarrod Leaman for the Eastern District of Oklahoma and Trial Attorney Avner Shapiro of the Civil Rights Division’s Criminal Section prosecuted the case.
Former Head of Boro Park Shomrim Society Pleads Guilty to Transporting a 15-Year-Old Girl to Engage in Sexual ActivityRead the Press Release
Earlier today, in federal court in Brooklyn, Jacob Daskal pleaded guilty to transportation of a minor with intent to engage in criminal sexual activity. Today’s proceeding was held before United States District Judge Nicholas G. Garaufis. As part of his guilty plea, the defendant agreed to a sentence within the range of approximately 14 to 17 ½ years’ imprisonment. As part of the plea Daskal is required to register as a sex offender.
Breon Peace, United States Attorney for the Eastern District of New York announced the guilty plea.
“The defendant has admitted he abused his power, trust and position in the community by committing deplorable acts against a child in his care,” stated United States Attorney Peace. “We want victims everywhere to hear this guilty plea as our Office’s continued declaration that no one is above the law and we will bring those who violate our children to justice.”
Mr. Peace expressed his appreciation for the Federal Bureau of Investigation, New York Field Office, the Kings County District Attorney’s Office and the New York City Police Department.
As set forth in court filings, the defendant was the head of the Boro Park Shomrim Society (the “Shomrim”), a private, Orthodox Jewish crime-patrol group associated with the New York Police Department. In the spring of 2017, as a result of his position with the Shomrim, the defendant was connected to a 15-year-old girl, whom he took into his home and groomed for sex. Between August and November 2017, the defendant, then 58 years-old, subjected the 15-year-old victim to sexual acts.
During the summer of 2017, the sexual conduct occurred primarily at Daskal’s house in Brooklyn, New York and at his summer house in South Fallsburg, New York. The defendant frequently transported the victim between those locations by way of New Jersey. At the end of August, the defendant, his family and the victim returned full-time to his house in Brooklyn, where the abuse continued. As the school year started, the defendant helped the victim find a new school in Chicago, Illinois, and, in October 2017, she moved there to attend that school and live with another family. While the victim was in Chicago, the defendant communicated with the victim via text message and over Skype video chat. On or about November 5, 2017, the defendant traveled to Chicago for a day trip to visit the victim. The defendant booked a hotel room in Chicago, and he brought the victim to the hotel for sexual intercourse and oral sex. He flew back to New York that evening.
Throughout the abuse, the defendant instructed the victim to delete their communications and warned her not to tell anyone about their sexual relationship. The defendant also used his position as a leader in their community to quiet the victim, bragging about his connections to law enforcement and warning her that it would ruin her life if she told anyone about their relationship.
The government’s case is being handled by the office’s Civil Rights Section. Assistant United States Attorneys Erin Reid and Genny Ngai are in charge of the prosecution with assistance from Litigation Analyst Ryan Costley.
The Defendant:
JACOB DASKAL
Age: 64
Brooklyn, New YorkE.D.N.Y. Docket No. 21-110 (NGG)
Former Correctional Officer Pleads Guilty to Smuggling Controlled Substances into the Prince George’s County Department of Corrections Detention FacilityRead the Press Release
Greenbelt, Maryland – Former Prince George’s County Department of Corrections correctional officer Danielle Dominique Smith, age 34, of Waldorf, Maryland, pleaded guilty to conspiracy to distribute and possess with intent to distribute a controlled substance, in connection with her smuggling drugs to a prisoner with whom she had an intimate relationship.
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Director Corenne D. Labbe of the Prince George’s County Department of Corrections; and Chief Malik Aziz of the Prince George’s County Police Department.
According to her guilty plea, from November 23, 2009 through April 15, 2022, Smith was employed as a correctional officer at the Prince George’s County Department of Corrections (“PGDOC”) detention facility. During her employment, Smith developed a romantic and sexual relationship with an inmate at PGDOC, discussing their relationship on recorded jail calls beginning on at least June 3, 2021 and continuing until March 2, 2022.
As detailed in the plea agreement, from August 29, 2021 and March 2, 2022, Smith conspired with her inmate boyfriend and other co-conspirators to distribute Suboxone, and the synthetic cannabinoid commonly known as K2. Specifically, Smith obtained the controlled substances from co-conspirators outside PGDOC, then smuggled the drugs into PGDOC where she concealed them on special diet food trays designated for her inmate boyfriend. Once the inmate received the food tray, he distributed the controlled substances to other inmates within PGDOC. Other inmates, or relative and friends of inmates then sent Smith money for the controlled substances.
Smith and the inmate discussed the distribution of the controlled substances on recorded jail calls, referring to the controlled substances as food products in an effort to conceal the nature of the conversation. On September 24, 2021, PGDOC Special Investigations and Intelligence Section conducted a targeted cell search of Smith’s boyfriend’s cell for contraband and recovered white paper that was found to contain K2. On February 16, 2022, PGDOC Special Investigations and Intelligence Section conducted a targeted cell search of another PGDOC inmate for suspected contraband and found a bottle containing 395 strips that were found to contain Suboxone. The K2 and Suboxone were smuggled into PGDOC by Smith.
According to the plea agreement, at the end of February 2022, Smith took pre-approved leave from work. Smith continued to speak to her inmate boyfriend on jail calls during that time. On a March 2, 2022 jail call, the day Smith was scheduled to return to work, the inmate asked Smith if she was bringing the “meals,” and Smith said she was. Concerned that Smith was going to smuggle additional controlled substances, PGDOC administratively suspended Smith when she arrived at work that same day.
Smith and the government have agreed that, if the Court accepts the plea agreement, Smith will be sentenced to six months of home detention. U.S. District Judge Theodore D. Chuang has scheduled sentencing for October 13, 2023, at 2:30 p.m.
U.S. Attorney Erek L. Barron commended the DEA, the PGDOC, and the Prince George’s County Police Department for their work in the investigation. Mr. Barron also thanked Assistant United States Attorney Leah B. Grossi, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Federal Jury Convicts Orlando Man of Attempting to Entice and Meet A 13-Year-Old Child to Engage in Sexual ActivityRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announced today that a federal jury has found Gabriel Almenas Carrasquillo (35, Orlando) guilty of using the internet and his cellphone to attempt to entice a 13-year-old child to engage in sexual activity. Almenas faces a minimum mandatory penalty of 10 years, and up to life, in federal prison and a potential life term of supervised release. Almenas was ordered detained after the return of the verdict. His sentencing hearing is scheduled for October 18, 2023.
According to evidence and testimony introduced during the three-day trial, on August 11, 2022, an undercover agent (UC) with the Metropolitan Bureau of Investigation was posing online on a social media application (app) as a 13-year-old child seeking to identify individuals with a sexual interest in children. Almenas initiated a conversation with the UC, typing “You r really beautiful.” When Almenas asked if “he” was 18, the UC advised that “he” was “a little younger,” and stated, “I’ll be fourteen in a few months …” Almenas responded, “Oh wow you look really quite develop,” and “… I’m down to keep getting to know you more …” The two discussed meeting and Almenas confirmed that the “child” would be alone without adult supervision that entire evening. At Almenas’s suggestion, their online conversation moved to another social media app. Almenas then described the sexual acts that he wanted to perform on the “child,” and he sent the UC a video depicting Almenas’s genitalia. A short time later, Almenas drove to a pre-determined location in Orlando where he believed that the “child” was staying and was subsequently arrested. In an interview, Almenas stated, among other things, that he knew that the “child” was underage when he came to meet “him,” and agreed that he “took a chance and showed up for the 13-year-old.” He also admitted that he brought the lubricant found in his backpack to engage in sexual acts with the “child.”
This case was investigated by the Metropolitan Bureau of Investigation and the Federal Bureau of Investigation in Orlando. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
FCI Schuylkill Inmate Indicted for Possession of A WeaponRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on July 11, 2023, Deondray LuRon Crayton, age 36, a federal inmate incarcerated at the Federal Correctional Institution at Schuylkill (FCI Schuylkill), Pennsylvania, was indicted yesterday by a federal grand jury on the charge of possessing contraband in prison.
According to United States Attorney Gerard M. Karam, the indictment alleges that on June 21, 2023, Crayton was found in possession of a homemade knife, commonly referred to as a “shank.”
The case was investigated by the Federal Bureau of Investigations and the Special Investigative Services of the Federal Bureau of Prisons. Assistant U.S. Attorney Luisa Honora Berti is prosecuting the case.
The maximum penalty under federal law for this offense is up to five years’ imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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FCI Schuylkill Inmate Charged with Possessing ContrabandRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on July 11, 2023, Charles Epps, age 26, an inmate at the Federal Correctional Institute Schuylkill (FCI Schuylkill), Pennsylvania, was charged by the grand jury with possessing contraband.
According to United States Attorney Gerard M. Karam, the indictment alleges that on May 11, 2023, Epps was found in possession of a six-inch piece of plastic sharpened to a point with a cloth handle, commonly referred to as a “shank.”
This matter was investigated by the Federal Bureau of Investigation and the Bureau of Prisons. Assistant United States Attorney Brian J. Gallagher is prosecuting the case.
Epps faces a maximum penalty of five 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.
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Electronic Health Records Vendor NextGen Healthcare, Inc. to Pay $31 Million to Settle False Claims Act AllegationsRead the Press Release
Burlington, Vermont – NextGen Healthcare, Inc. (NextGen), an electronic health record (“EHR”) technology vendor, has agreed to pay $31 million to resolve allegations that NextGen violated the False Claims Act by misrepresenting the capabilities of certain versions of its EHR software and providing unlawful remuneration to its users to induce them to recommend NextGen’s software.
“Electronic health records are an essential part of our healthcare system” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “Every day, millions of patients and healthcare providers across the country rely on such records to accurately identify and transmit vital health information. The Civil Division is committed to protecting the integrity of the electronic health records software that is available to providers and the process by which they decide which software to select.”
The American Recovery and Reinvestment Act of 2009 established the Medicare and Medicaid EHR Incentive Program to encourage healthcare providers to adopt and demonstrate their “meaningful use” of EHR technology. Under the program, the U.S. Department of Health and Human Services (HHS) made incentive payments to eligible healthcare providers that adopted certified EHR technology and met certain requirements relating to their use of the technology. To obtain certification for their product, companies that develop and market EHR technology are required to demonstrate that their product(s) satisfies all applicable HHS-adopted certification criteria; the company must also identify any software components on which their EHR relies to perform the criteria. Developers must first pass testing performed by an independent, accredited testing laboratory authorized by HHS, and then obtain and maintain certification by an independent, accredited certification body authorized by HHS.
In a complaint filed in conjunction with the settlement, the United States contends that NextGen falsely obtained certification for its software in connection with the 2014 Edition certification criteria published by HHS’s Office of the National Coordinator. Specifically, the government alleges that NextGen relied on an auxiliary product designed only to perform the certification test scripts, which concealed from the certifying entity that NextGen’s EHR lacked critical functionality. The government alleges that, consequently, the EHR that NextGen ultimately released to its users lacked certain required functionalities, including the ability to record vital sign data, translate data into required medical vocabularies, and create complete clinical summaries.
In its complaint, the government also alleges that NextGen violated the Anti-Kickback Statute, which prohibits anyone from offering or paying, directly or indirectly, any remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. In its complaint, the government contends that, notwithstanding this prohibition, NextGen knowingly gave credits, often worth as much as $10,000, to current customers whose recommendation of NextGen’s EHR software led to a new sale. The government alleges that other remuneration, including tickets to sporting events and entertainment, was also provided to induce purchases and referrals.
“Electronic health records play a pivotal role in the provision of safe, effective healthcare, and the testing and certification process of the EHR Incentive Program was intended to provide assurances to providers that their EHR can perform certain important functions,” said United States Attorney for the District of Vermont, Nikolas P. Kerest. “With this settlement, our office has now resolved five investigations into misconduct by EHR companies, demonstrating our commitment to ensuring that EHR companies are held responsible for their misrepresentations.”
“Medical providers must be able to rely on electronic health records systems to correctly document and process important health data for continuity of patient care,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General. “We will continue to work with our valuable law enforcement partners to evaluate allegations brought under the False Claims Act and ensure the integrity of Medicare programs.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Toby Markowitz and Elizabeth Ringold, healthcare professionals at a facility that used NextGen’s software. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The whistleblowers in this case will receive $5,580,000. The qui tam case is captioned United States ex rel. Markowitz et al. v. NextGen Healthcare, Inc., Case No. 2:18-cv-195 (D. Vt.).
The investigation and pursuit of this matter illustrate the government’s emphasis on combating healthcare fraud, including in the healthcare technology arena. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the District of Vermont. Investigative support and assistance was provided by the Department of Health and Human Services, Office of Counsel to the Inspector General and OIG Office of Investigations.
The matter was handled by Assistant U.S. Attorney Lauren Almquist Lively and Fraud Section Attorneys Christelle Klovers and Kelley Hauser.
The claims in the Relators’ and the government’s complaints are allegations only and there has been no determination of liability.
nextgen_complaint_in_intervention.pdf nextgen_settlement_agreement.pdfElectronic Health Records Vendor NextGen Healthcare Inc. to Pay $31 Million to Settle False Claims Act AllegationsRead the Press Release
NextGen Healthcare Inc. (NextGen), an electronic health record (EHR) technology vendor, has agreed to pay $31 million to resolve allegations that NextGen violated the False Claims Act (FCA) by misrepresenting the capabilities of certain versions of its EHR software and providing unlawful remuneration to its users to induce them to recommend NextGen’s software.
“Electronic health records are an essential part of our health care system” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. “Every day, millions of patients and health care providers across the country rely on such records to accurately identify and transmit vital health information. The Civil Division is committed to protecting the integrity of the electronic health records software that is available to providers and the process by which they decide which software to select.”
The American Recovery and Reinvestment Act of 2009 established the Medicare and Medicaid EHR Incentive Program to encourage health care providers to adopt and demonstrate their “meaningful use” of EHR technology. Under the program, the U.S. Department of Health and Human Services (HHS) made incentive payments to eligible health care providers that adopted certified EHR technology and met certain requirements relating to their use of the technology. To obtain certification for their product, companies that develop and market EHR technology are required to demonstrate that their product(s) satisfies all applicable HHS-adopted certification criteria; the company must also identify any software components on which their EHR relies to perform the criteria. Developers must first pass testing performed by an independent, accredited testing laboratory authorized by HHS, and then obtain and maintain certification by an independent, accredited certification body authorized by HHS.
In a complaint filed in conjunction with the settlement, the United States contends that NextGen falsely obtained certification for its software in connection with the 2014 Edition certification criteria published by HHS’s Office of the National Coordinator. Specifically, the government alleges that NextGen relied on an auxiliary product designed only to perform the certification test scripts, which concealed from the certifying entity that NextGen’s EHR lacked critical functionality. The government alleges that, consequently, the EHR that NextGen ultimately released to its users lacked certain required functionalities, including the ability to record vital sign data, translate data into required medical vocabularies, and create complete clinical summaries.
In its complaint, the government also alleges that NextGen violated the Anti-Kickback Statute, which prohibits anyone from offering or paying, directly or indirectly, any remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. In its complaint, the government contends that, notwithstanding this prohibition, NextGen knowingly gave credits, often worth as much as $10,000, to current customers whose recommendation of NextGen’s EHR software led to a new sale. The government alleges that other remuneration, including tickets to sporting events and entertainment, was also provided to induce purchases and referrals.
“Electronic health records play a pivotal role in the provision of safe, effective health care, and the testing and certification process of the EHR Incentive Program was intended to provide assurances to providers that their EHR can perform certain important functions,” said U.S. Attorney Nikolas P. Kerest for the District of Vermont. “With this settlement, our office has now resolved five investigations into misconduct by EHR companies, demonstrating our commitment to ensuring that EHR companies are held responsible for their misrepresentations.”
“Medical providers must be able to rely on electronic health records systems to correctly document and process important health data for continuity of patient care,” said Special Agent in Charge Maureen R. Dixon for the HHS, Office of the Inspector General (HHS-OIG). “We will continue to work with our valuable law enforcement partners to evaluate allegations brought under the False Claims Act and ensure the integrity of Medicare programs.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Toby Markowitz and Elizabeth Ringold, health care professionals at a facility that used NextGen’s software. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The whistleblowers in this case will receive $5,580,000. The qui tam case is captioned United States ex rel. Markowitz et al. v. NextGen Healthcare Inc., Case No. 2:18-cv-195 (D. Vt.).
The investigation and pursuit of this matter illustrate the government’s emphasis on combating health care fraud, including in the health care technology arena. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Vermont. Investigative support and assistance was provided by the Department of Health and Human Services, Office of Counsel to the Inspector General and OIG Office of Investigations.
The matter was handled by Fraud Section Attorneys Christelle Klovers and Kelley Hauser and Assistant U.S. Attorney Lauren Almquist Lively for the District of Vermont.
The claims in the relators’ and the government’s complaints are allegations only and there has been no determination of liability.
Settlement ComplaintEast St. Louis Drug Dealer Sentenced to 16 Years in Federal PrisonRead the Press Release
EAST ST. LOUIS, Ill. – A U.S. District judge sentenced an East St. Louis man to spend 16 years in federal prison on drug distribution and firearm charges.
Mosezell Jones, 43, pled guilty to one count of possession with intent to distribute a controlled substance and one count of felon in possession of a firearm.
“Illicit drugs and firearms result in fear and destruction to a neighborhood, and families in East St. Louis are better off with one less criminal infecting the community,” said U.S. Attorney Rachelle Aud Crowe. “I applaud the officers for apprehending this defendant.”
“Illinois State Police special agents are committed to seeking out and holding accountable those individuals pushing life-destroying meth into our communities,” said ISP Director Brendan F. Kelly.
According to court documents, undercover agents with the Metropolitan Enforcement Group of Southern Illinois of ISP conducted several controlled buys of a total of approximately 25 grams of methamphetamine from Jones at his home in East St. Louis in June 2021. Following the operation, officers executed a search warrant on Jones’s home and detained him.
From the search, officers recovered approximately 140 grams of methamphetamine, an AK-47-style rifle, 12-guage shotgun, a revolver, ammunition and drug paraphernalia. Due to prior felony convictions, Jones is unable to legally possess firearms.
During the investigation, officers discovered Jones was using a pill press machine to disguise methamphetamine, an addictive and deadly stimulant, as multi-colored tablets that appeared similar to candy or vitamins.
ISP led the investigation with support from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).Dominican National Extradited to Face International Narcotics Trafficking Charges in MilwaukeeRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced the successful extradition of Rafael Dario Gonzalez-Amparo (a/k/a “Rafa,” a/k/a “Sisi”) from the Dominican Republic based on a superseding indictment returned in Milwaukee. On July 14, 2023, Gonzalez-Amparo had his initial appearance and arraignment before U.S. Magistrate Judge Stephen C. Dries in Milwaukee, Wisconsin. Gonzalez-Amparo was ordered temporarily detained. His detention hearing is scheduled for July 19, 2023.
On November 8, 2022, a grand jury had returned a superseding indictment against Gonzalez-Amparo, alleging one count of international drug trafficking conspiracy and one substantive count of international drug trafficking. According to the superseding indictment, from approximately February 2019 through March 22, 2022, Gonzalez-Amparo conspired with Jean Eliobert Jasme (a/k/a “ED1,” “Eddy One,” and “Tio Loco”), Gabriel Zuñiga (a/k/a “Ito,” a/k/a “Hito,” a/k/a “Captain Ito,” a/k/a Capi”), and others to distribute five kilograms or more of cocaine intending, knowing, or having reasonable cause to believe the cocaine would be unlawfully imported into the United States. The indictment also alleges that on or about April 19, 2020, Gonzalez-Amparo distributed five kilograms or more of cocaine intending, knowing, or having reasonable cause to believe the cocaine would be unlawfully imported into the United States.
The DEA Port-au-Prince Country Office and the DEA Milwaukee Field Office investigated this case. The Justice Department’s Office of International Affairs, the Dominican government, including the National Counterdrug Directorate (DNCD), and the U.S. Marshals Service, provided substantial assistance in this matter. Assistant U.S. Attorneys Robert J. Brady, Jr. and Gail J. Hoffman of the Eastern District of Wisconsin are prosecuting the case.
An indictment is merely an allegation, and a defendant is presumed innocent until proved guilty beyond a reasonable doubt in a court of law.
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District Man Sentenced to 19 Years in Prison for Following and Fatally Shooting Man in AlleywayRead the Press Release
WASHINGTON – Keith Hudson, 28, of Washington, D.C., was sentenced today to 19 years in prison for second degree murder while armed in the February 6, 2021, shooting death of Isaiah Glover. Superior Court Judge Anthony C. Epstein also ordered five years of supervised release. The sentence was announced by U.S. Attorney Matthew M. Graves and Interim Chief Ashan Benedict, of the Metropolitan Police Department.
According to the government’s evidence, around 2:40 p.m. on February 6, 2021, the victim was walking on Hunt Place NE, when he turned south onto the 800 block of 42nd Street and encountered the defendant. Hudson was driving a white Buick LeSabre. He drove north on 42nd Street NE past Mr. Glover, then intentionally made a U-turn and drove back south on 42nd Street past Mr. Glover again. Mr. Glover took a right onto Hunt Place SE and headed towards Minnesota Ave. NE. After passing Mr. Glover twice, the defendant drove to Gault Street NE and 42nd Street NE where he parked the vehicle. The defendant got out of his car and walked towards Hunt Place SE and Minnesota Ave., and followed Mr. Glover into the alley behind 4147 Minnesota Ave, NE. Mr. Glover was unaware that he was being followed. The defendant quickly caught up to Mr. Glover. He drew a .40 caliber firearm out of his front hoodie pocket and, just as soon as Mr. Glover realized that the was being followed, the defendant shot Mr. Glover twice. Mr. Glover sustained a life ending injury to his brain. The defendant then ran through a perpendicular alley, back to his car, and fled. Law enforcement and paramedics arrived at the alley and pronounced Isaiah Glover dead at 2:53 pm.
“This sentence will remove a dangerous person from our District’s streets for a substantial period of time,” said U.S. Attorney Graves. “Our office is grateful for the detectives who doggedly pursued this case and offers our sincerest condolences to Isaiah Glover’s family on this tragic loss.”
Officers with the Metropolitan Police Department arrested Hudson on February 9, 2021 and has been in custody since. Hudson pleaded guilty on April 14, 2023.
In announcing the sentence, U.S. Attorney Graves and Interim Chief Benedict commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case form the U.S. Attorney’s Office, including Paralegal Specialist Kelly Blakeney, Victim/Witness Advocate Latrice Washington-Williams.
Finally, they commended the work of Assistant U.S. Attorney Andrea Coronado, who investigated and prosecuted the case.
Dayton man sentenced to 2 years in prison for stealing checks from U.S. MailRead the Press Release
DAYTON, Ohio – Keith Dujuan Calahan, of Dayton, was sentenced in U.S. District Court to 24 months in prison for receiving and unlawfully possessing materials stolen from the U.S. Mail, including approximately 250 checks. Callahan intended to use the stolen mail matter to perpetrate more than $250,000 in fraud.
Local law enforcement began placing GPS tracking devices inside “dummy” packages in collection boxes outside the Dabel Post Office in Kettering, and, in May 2022, three such packages were stolen.
According to court documents, law enforcement tracked the GPS locations of the stolen packages and set up surveillance around an apartment complex Dayton. Three individuals were subsequently arrested, including Calahan. Calahan had two trash bags full of stolen mail matter, including two of the dummy packages.
While executing a search warrant at Calahan’s apartment, investigators discovered 250 stolen checks, nearly $1,700 in cash, a $1,000 money order and two firearms. Two weeks prior to his arrest, Calahan had fraudulently deposited a $6,100 check, which had been stolen from the U.S. Mail and altered to reflect a different payee.
Calahan pleaded guilty in February 2023 to receipt and possession of stolen mail.
“The theft of mail can be hugely disruptive to the lives of those whose private communications are stolen, opened, and exploited,” said United States Attorney Kenneth L. Parker. “This sentence should be a warning to anyone tempted to break into a collection box in search of easy money that doing so comes with considerable consequences.”
Parker and Lesley C. Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division; announced the judgment issued on July 13 by U.S. District Court Judge Walter H. Rice. Assistant United States Attorney Rob Painter is representing the United States in this case.
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DOJ and UW Medical Center - Northwest resolve allegations the medical center violated the Americans with Disabilities Act in caring for patients who are deafRead the Press Release
Seattle – University of Washington Medical Center – Northwest (UWMC-NW) will reform its policies and procedures for providing sign-language interpreters, and other assistive devices for patients who are deaf or hard of hearing following a complaint from a patient that such services were not provided during a hospitalization in 2021. UWMC-NW will pay the patient $40,000 in addition to the changes in training, policies, and procedures.
“Ensuring effective communication in medical settings has been a top priority in our civil rights work,” said Acting U.S. Attorney Gorman. “Before and after surgery, a patient must be able to understand the medical staff and communicate their level of pain, their concerns, and any questions they have about ongoing care. This settlement clearly lays out the steps for UWMC-NW to comply with the ADA and provide best practices for their patients.”
The Americans with Disabilities Act (ADA) mandates that public entities, including healthcare providers, provide auxiliary aids and services free of charge to patients who need them in order to communicate effectively. An investigation by the U.S. Attorney’s Office, Western District of Washington, determined that UWMC-NW failed to provide the complainant with a qualified sign language interpreter necessary to communicate effectively with her on several occasions during her hospital stay in April 2021 including pre-surgical consultation, surgery, and post-surgical care. The hospital did attempt to use a Video Relay Interpreter (VRI) service, but it was ineffective.
The settlement requires the hospital to make a number of changes including:
- UWMC-NW will have a designated ADA Coordinator on duty at all times that the hospital is open to the public. That person will coordinate services and assistive devices for patients who are deaf, deaf-blind, or hard of hearing.
- The UWMC-NW will enter into contracts with three interpreter services so that they are able to obtain an interpreter in a reasonable period of time.
- Video Remote Interpreting will be used only if it meets certain guidelines, and will not be used for certain complex or lengthy appointments where in-person interpretation is critical.
- All staff will be trained on the new procedures including the initial evaluation of whether a patient needs assistive services for communication.
- The hospital will log the use of assistive devices and services and provide that log to the U.S. Attorney’s Office every six months for review. The hospital will also provide any complaints regarding provision of assistive services.
- The review by the U.S. Attorney’s Office will continue for the next three years. If the U.S. Attorney’s Office believes the terms of this settlement have been violated it can file suit in U.S. District Court.
The investigation and settlement were negotiated by Assistant United States Attorney Matt Waldrop.
Chicago Man Sentenced to 30 Years in Federal Prison for Enticing Girls in the Philippines to Produce Sexually Explicit ImagesRead the Press Release
CHICAGO — A Chicago man has been sentenced to 30 years in federal prison for enticing at least nine girls in the Philippines to produce sexually explicit photos and videos of themselves and send them to him.
KARL QUILTER, 58, pleaded guilty last year to a federal charge of sexual exploitation of children. U.S. District Judge Virginia M. Kendall imposed the 30-year sentence after a hearing July 7, 2023, in federal court in Chicago.
Quilter admitted in a plea agreement that he communicated with the girls via Facebook, Viber, and Skype from 2017 to 2020. Quilter referred to the minor victims as his “girlfriends” to manipulate and pressure them into sending specific types of photos and videos that he demanded. Quilter also preyed on the victims’ financial difficulties, using money transfers to the victims’ families to entice the girls to take the sexually explicit images. In a message to one 16-year-old victim in 2020, Quilter promised to send money to her family for medicine and food if she complied with his demands. “If u do what I tell you… I will make sure u can buy food for 2 weeks and your medication,” Quilter said in the message. “Think of your little sister that she can e[a]t for 2 weeks everyday 3 meals a day and u get well.”
Quilter traveled to the Philippines in 2017 and 2018 and explicitly referenced his plans to have sex with several of the minors when he next visited the country in December 2020. Law enforcement arrested Quilter in Chicago in November 2020.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Sean Fitzgerald, Special Agent-in-Charge of Homeland Security Investigations in Chicago. The Chicago Police Department provided valuable assistance.
“Victim by victim, and message by message, defendant used social media and the internet to target and groom young Filipino girls,” Assistant U.S. Attorney Ashley A. Chung argued in the government’s sentencing memorandum. “This was not a one-time aberration, but rather a years-long pattern of predatory abuse and exploitation of minors.”
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Chicago Man Sentenced 46 Months for Bank Fraud ConspiracyRead the Press Release
BOISE – Elijah A. Johnson, 32, of Chicago, Illinois, was sentenced to 46 months in federal prison for conspiracy to commit bank fraud, announced U.S. Attorney Josh Hurwit. U.S. District Judge Amanda K. Brailsford imposed the sentence and also ordered Johnson to serve five years of supervised release following his prison sentence.
According to court records, from March 2019 through March 2022, Johnson was part a bank fraud conspiracy that obtained victim bank account information, impersonated account holders, and created and cashed counterfeit checks to obtain money. On part of the conspiracy, Johnson recruited check cashers, drove check cashers, and organized counterfeit check-cashing trips to other states. He has travelled to numerous states to facilitate the conspiracy, including Idaho, Minnesota, Ohio, California, Tennessee, Indiana, and Pennsylvania.
Johnson traveled with at least six-co-conspirators to Idaho on May 5, 2020. Johnson drove and assisted other co-conspirators in cashing and attempting to cash counterfeit checks in Idaho between May 6 and 8, 2020. On May 6, Johnson assisted co-conspirators in successfully cashing nine counterfeit checks, totaling $47,054.41. On May 8, the Defendant assisted two co‑conspirators in attempting to cash checks and successfully cashing a third check at another bank, totaling $13,710.96.
Johnson’s six co-conspirators have been charged in two related cases. Four co-conspirators were previously charged and sentenced in another case. Johnson’s co-conspirator Billy A. Guidry pleaded guilty to conspiracy to commit bank fraud and is set for sentencing on August 8, 2023.
U.S. Attorney Hurwit credited the collective efforts of a geographically-diverse set of law enforcement agencies for this successful investigation: in Idaho, the Federal Bureau of Investigation, the Social Security Administration Office of the Inspector General, the Ada County Sheriff’s Office, the Boise Police Department, the Garden City Police Department, the Meridian Police Department, and the Nampa Police Department; and outside of Idaho, the Chicago Police Department, the Ellisville Police Department, the Fort Atkinson Police Department, the Gahanna Police Department, the Johnson Creek Police Department, the Montgomery Township Police Department, the Normal Police Department, the Peoria County Sheriff’s Office, the Redwood City Police Department, the San Mateo County Sheriff’s Office, the Sioux Falls Police Department, the Stockton Police Department, the Waltham Police Department, and the Wellesley Police Department.
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Brooklyn, NY, consultant for Amazon sellers sentenced to home detention and fine for role in bribery schemeRead the Press Release
Seattle – A successful consultant to Amazon third-party selling partners (3P Sellers) was sentenced today in U.S. District Court in Seattle for his participation in an international bribery scheme used to aid his clients, announced Acting U.S. Attorney Tessa M. Gorman. Ephraim Rosenberg, 48, was sentenced to two years of probation, including a year of home confinement, and a $100,000 fine. At the sentencing hearing, U.S. District Judge Richard A. Jones noted that Rosenberg “participated in the scheme for a period of three years. You stopped because you got caught by law enforcement.”
“Mr. Rosenberg participated in a scheme to bribe Amazon employees for confidential information and improper benefits – and he didn’t just funnel bribes through his co-conspirators to workers in India -- he paid a Seattle Amazon employee more than $18,000 for confidential information,” said Acting U.S. Attorney Gorman. “After first attacking the federal indictment brought in this case, Mr. Rosenberg has now admitted his crimes and has publicized his regret about his criminal conduct as a warning to others who scheme to illegally manipulate the marketplace.”
According to records filed in the case, between July 2017 and September 2020, Rosenberg and his coconspirators used a number of illegal tactics to steal internal and confidential data from Amazon. Rosenberg paid bribes to obtain confidential notes and information as to why certain clients, 3P Sellers, had been suspended by Amazon. The clients could then use that information to craft their appeals to be reinstated. Rosenberg also purchased forged documents to act as proof that certain products had been purchased from approved suppliers. In fact, the use of the forged documents could allow counterfeit or even unsafe products to enter the marketplace and harm consumers.
While Rosenberg used bribery and fraud to assist his clients, there is no evidence that he engaged in negative attacks on other 3P sellers. Other conspirators in the scheme made false complaints to Amazon, posted sham negative reviews and even defaced sellers’ product listings. Those defendants who attacked other Amazon sellers have faced more significant prison sentences.
Hadis Nuhanovic, 32, of Acworth, Georgia, was sentenced in February 2023, to 20 months in prison, forfeiture of $100,000 and $160,453 in restitution to the Internal Revenue Service. Rohit Kadimisetty, was sentenced last year to ten months in prison and a $50,000 fine. Kristen Leccese and Joseph Nilsen have pleaded guilty and are scheduled for sentencing on September 8, 2023.
In her sentencing memo, Assistant United States Attorney Miriam Hinman wrote, “Rosenberg committed a serious crime when he corrupted Amazon employees, stole from Amazon, and gained access to internal systems and controls—all to the disadvantage of Amazon, small businesses, and consumers. Rosenberg and his co-conspirators used their insider knowledge of Amazon to break its rules and abuse Amazon’s platform. They stole Amazon’s confidential information to line their own pockets… These activities resulted in deceiving customers and unfairly disadvantaging small businesses that followed the rules. This long running, global conspiracy caused significant harm.”
The case is being investigated by the FBI, with assistance from the Internal Revenue Service-Criminal Investigations (IRS-CI), and the Department of Justice Office of International Affairs.
The case is being prosecuted by Assistant United States Attorneys Miriam R. Hinman.
Booneville Man Sentenced in Drug Trafficking CaseRead the Press Release
Oxford, MS – A Booneville man was sentenced today to 15 years in prison for conspiracy to possess with intent to distribute methamphetamine.
According to court documents, Justin Williams, 34, of Booneville, Mississippi, pled guilty in the United States District Court for the Northern District of Mississippi to one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. Williams was sentenced by U.S. District Court Judge Glen H. Davidson to 180 months in prison and a $10,000 fine. He was further sentenced to 5 years of supervised release following his release from prison. In addition, the court ordered Williams to forfeit more than $100,000 and various jewelry items that were identified as drug proceeds.
Williams was involved in a drug trafficking organization responsible for transporting large quantities of methamphetamine from Texas and distributing it throughout the Northern District of Mississippi and elsewhere. Williams participated in the conspiracy by being a source of supply for large quantities of methamphetamine distributed throughout the Northern District of Mississippi. Williams arranged to have the controlled substances shipped through commercial package delivery services into Mississippi, where he would then distribute the controlled substance throughout the Northern District of Mississippi. The investigation of this drug trafficking organization and its participants spanned more than a year. Williams was indicted along with sixteen other individuals, including Chuckie Leach and Gary Ricks. Leach was recently sentenced to 151 months imprisonment followed by 3 years of supervised release while Ricks was sentenced to 188 months imprisonment and 3 years of supervised release.
“The distribution and use of methamphetamine has devastating consequences for communities across our Country, and many towns throughout our District have felt its harsh effects,” stated U.S. Attorney Clay Joyner. “The arrest and prosecution of those who contribute to this problem is a priority for the U.S. Attorney’s Office as well as our federal, state and local law enforcement partners, and we will continue to work together to hold accountable those who distribute dangerous drugs like methamphetamine in the Northern District of Mississippi.”
"Justin Williams's sentencing sends a clear message that drug trafficking will not be tolerated in the Northern District of Mississippi,” remarked Bradford L. Byerley, Special Agent in Charge of the DEA. “Methamphetamine is an addictive drug with devastating consequences for individuals and families. We will continue to work tirelessly with our law enforcement partners to investigate and prosecute those who are responsible for bringing dangerous drugs into our communities.”
Ada Resident Sentenced for Murder in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jimmy Louis Northcutt, Jr., age 45, of Ada, Oklahoma, was sentenced to 222 months for his role in a Pontotoc County homicide.
The charges arose from an investigation by the Pontotoc County Sheriff’s Office, the Oklahoma Bureau of Investigation, and the Federal Bureau of Investigation.
On April 7, 2022, Northcutt pleaded guilty to one count of Murder in Indian Country – Second Degree. According to investigators, on July 18, 2019, Northcutt broke into a commercial marijuana grow operation and shot the victim three times, killing him. The crime occurred in Pontotoc County, within the boundaries of the Chickasaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Northcutt was remanded to the custody of the U.S. Marshal at the conclusion of sentencing. He will remain in custody pending transportation to a designated United States Bureau of Prisons facility to serve his non-paroleable sentence of incarceration.
Assistant United States Attorney Cameron McEwen represented the United States.