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30 June 2023
Boston Man Sentenced to 10 Years in Prison for Drug Trafficking Following Two-Kilogram Cocaine DealRead the Press Release
BOSTON – A Boston man was sentenced yesterday for selling two kilograms of cocaine and possessing nearly one kilogram of heroin as well as a high-powered rifle in East Boston.
Carlos Acosta Estrella, 33, was sentenced by U.S. District Court Judge Leo T. Sorokin to 10 years in prison and eight years of supervised release. In September 2022, Estrella pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine, one count of possession with intent to distribute 100 grams or more of heroin and one count of possession of a firearm during a drug trafficking offense. Estrella was indicted along with his mother, Ana Guadalupe Acosta Grajeda, in October 2019.Estrella and Grajeda were arrested after they were videotaped selling two kilograms of cocaine to a cooperating witness in East Boston. A search of Estrella and Grajeda’s apartment in East Boston resulted in the seizure of nearly one kilogram of heroin, an additional kilogram of cocaine, numerous cellphones, a high-powered tactical shotgun with a laser sight and a box of ammunition for the shotgun.
Grajeda was sentenced in June 2022 after previously pleading guilty to possession with intent to distribute 500 grams or more of cocaine and has since been deported to Mexico.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Commissioner Michael A. Cox made the announcement. Assistant U.S. Attorney Christopher Pohl of Levy’s Narcotics & Money Laundering Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Bogue Chitto Man Pleads Guilty to Shooting at a Law Enforcement OfficerRead the Press Release
Jackson, Miss. – A Bogue Chittto man pled guilty to shooting at a law enforcement officer, announced U.S. Attorney Darren J. LaMarca and Acting Special Agent in Charge Anthony Spotswood of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court records, on March 17, 2020, in the Bogue Chitto Community of the Choctaw Indian Reservation, Shane Alexander Bell, Jr., 27, assaulted a law enforcement officer by firing a handgun at him, resulting in damage to the officer’s home. Fortunately, the officer was unharmed. In November of 2022, a federal grand jury indicted Bell for using a firearm in furtherance of a crime of violence.
Bell faces a penalty of not less than ten years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Choctaw Police Department of the Mississippi Band of Choctaw Indians, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case was prosecuted by Assistant United States Attorney Kevin J. Payne and Special Assistant United States Attorney Brian K. Burns.
Armed Drug Trafficker Sentenced to 24 Months in PrisonRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced today that Edgar Correa, aka “Joker,” 35, of Springfield, Massachusetts was sentenced today to serve 24 months of imprisonment after his conviction for possession with intent to distribute cocaine and cocaine base, to be followed by a three-year term of supervised release. Correa pleaded guilty to the drug trafficking crime on March 17, 2023. Correa’s co-defendant, Jose Luis Maldonado, Jr., aka “Peeto,” remains pending trial, which has not yet been scheduled.
According to court records, on October 12, 2022, law enforcement was monitoring electronic video surveillance of a house on Robbins Street in Rutland, Vermont where drug trafficking activity was suspected. On the video, officers noted a man, later identified as Maldonado, carrying a black shotgun with a pistol grip and walking with another man, later identified as Correa, toward a white Honda Civic. The two put bags in the trunk and left the premises. Rutland Police officers located the vehicle and conducted a traffic stop. Four firearms were in the vehicle, including the shotgun in the trunk, a .380 caliber pistol beneath Correa’s seat, a .38 Special revolver between Correa’s seat and the center console, and a .22 caliber pistol between Maldonado’s seat and the center console. A search of the vehicle revealed two bags, found to contain approximately 24 grams of cocaine base, approximately 7 grams of cocaine, and over 550 bags of fentanyl. When Correa was searched incident to arrest, he was found in possession of a firearm magazine loaded with .380 caliber ammunition and a digital scale commonly used to weigh drugs for the purposes of selling a particular quantity.
United States Attorney Nikolas P. Kerest commended the coordinated investigatory efforts of the Vermont State Police’s Drug Task Force, the Rutland Police Department, Homeland Security Investigations, and the Federal Bureau of Investigation.The prosecutor was Assistant United States Attorney Jonathan Ophardt. Correa was represented by Federal Public Defender Michael Desautels, 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.
Arkansas Man Pleads Not Guilty to Charge of Enticement of a Minor to Engage in Unlawful Sexual ActivityRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont stated that on June 30, 2023, Nicholas Shelton, 24, of Hope, Arkansas, pleaded not guilty to a single-count indictment that charges him with using a facility of interstate and foreign commerce to entice, persuade, and coerce a minor to engage in sexual activity for which a person could be held criminally liable. United States Magistrate Judge Kevin J. Doyle had previously ordered that Shelton remain in custody until trial, which has not been scheduled.
According to court records and proceedings, in approximately March 2023, Shelton began communicating with a 15-year old minor female victim from Essex, Vermont, using various social media platforms, telephone conversations, and text messaging. The communications between Shelton and the minor victim included sexually explicit content. Shelton traveled to Vermont in early April and met with the minor victim, who hid him in the garage of her family’s home. After her parents discovered Shelton, they instructed him to leave and to leave their daughter alone. Instead, Shelton and the minor victim left together, which triggered the filing by the parents of a missing persons report with the Essex Police Department. Three days later, Shelton and the minor victim were discovered camping in a wooded area near Sand Hill Park in Essex, Vermont. Shelton was taken into custody. Shelton gave consent for law enforcement to search his cell phone, which is where his communications with the minor victim were discovered.
U.S. Attorney Nikolas P. Kerest commended the efforts of the Essex Police Department, Homeland Security Investigations, and the Vermont Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Barbara A. Masterson is handling the prosecution of Shelton. Shelton is represented by Assistant Federal Public Defender Steven L. Barth.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and Child Exploitation Obscenity Section, Criminal Division (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
29 June 2023
Wyoming man admits traveling to Bozeman with intent to engage in sex with minorRead the Press Release
MISSOULA — A Wyoming man today admitted to a crime accusing him of traveling to Montana with the intent to engage in sex with a minor, U.S. Attorney Jesse Laslovich said.
Jeremy George Lusk, 38, of Crowley, Wyoming, pleaded guilty to travel with intent to engage in illicit sexual conduct. Lusk faces a maximum of 30 years imprisonment, a $250,000 fine and a minimum of five years to life of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for Oct. 30 before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Lusk was released pending further proceedings.
The government alleged in court documents that in January, a Bozeman Police Department officer was working undercover and observed an ad on a social media application asking if anyone wanted to engage in sexual relations with a 38-year-old from Bridger, Montana. The ad stated the individual was looking for someone between the ages of 18 and 68. The undercover responded that she was 14 years old and lived in Bozeman. Lusk told the undercover to contact him when she turned 18, and the undercover responded telling Lusk to contact her if he changed his mind. Luck re-initiated contact the same day, and the conversation turned sexual. The communications led to Lusk sending a nude photo of himself. On Feb. 22 and through the morning of Feb. 23, Lusk wrote messages indicating his intent to travel to Bozeman and that he was on his way. Law enforcement determined Lusk lived and worked in Wyoming. After being directed to a specific location by the undercover, officers arrested Lusk when he arrived. Lusk admitted to having online sexually explicit discussions with a 14-year-old and had come to Bozeman with the intent to meet her for a sexual encounter.
Assistant U.S. Attorney Zeno B. Baucus is prosecuting the case. The Bozeman Police Department and Homeland Security Investigations conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Woodland Hills Brothers Found Guilty of Fraudulently Obtaining Federal Tax Refunds and Laundering Proceeds Through U.K. BanksRead the Press Release
LOS ANGELES – Two San Fernando Valley brothers have been found guilty by a jury of nearly a dozen felonies for fraudulently obtaining hundreds of thousands of dollars in federal income tax refunds, some of which they then laundered through bank accounts held in the United Kingdom, the Justice Department announced today.
Victor A. Ohiri, 55, and Stephen O. Danielson-Ohiri, 54, both of Woodland Hills, were found guilty late Wednesday of one count of conspiracy and 10 counts of theft of government property.
According to evidence presented at their two-day trial, from March 2014 to March 2015, Victor and Stephen Ohiri, together with others in the United Kingdom, conspired to use the Ohiris’ U.S.-based bank accounts to fraudulently obtain hundreds of thousands of dollars of federal income tax refunds.
The co-conspirators filed nearly 20 fraudulent federal income tax returns with the IRS in the names of victim-taxpayers whose identities they had stolen. The co-conspirators used fake documents, such as bogus Forms W-2, to file the fraudulent returns, which requested large tax refunds, often between $8,000 and $10,000.
Based on the fraudulent returns, the IRS issued tax refunds, which were electronically transmitted not to the victim-taxpayers whose identities had been stolen, but instead to bank accounts controlled by Victor and Stephen Ohiri. The Ohiris then wired the majority of those refund proceeds to co-conspirators in the United Kingdom, and they withdrew the rest in cash for themselves.
During the conspiracy, approximately $340,000 in federal income tax refunds was deposited into accounts controlled by the Ohiris.
During the investigation, IRS investigators seized approximately $181,000 from two of Stephen Ohiri’s bank accounts – money that came from just one of the fraudulently obtained tax refunds.
United States District Judge Stephen V. Wilson has scheduled an October 2 sentencing hearing, at which time Victor Ohiri and Stephen Ohiri will face statutory maximum sentences, respectively, of 115 years and 60 years in federal prison.
IRS Criminal Investigation and Homeland Security Investigations investigated this matter.
Assistant United States Attorney Morgan J. Cohen of the Major Frauds Section is prosecuting this case.
West Richland Resident Sentenced to 15 Months in Federal Prison for Fraudulently Obtaining $337,267 in COVID-19 Relief FundsRead the Press Release
Richland, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Jimia Rae Cain, age 52, of West Richland, Washington, was sentenced to 15 months in federal prison for fraudulently obtaining $337,267 in COVID-19 relief funds. United States District Judge Mary K. Dimke announced the sentence, the most recent obtained by the COVID-19 Relief Fraud Strike Force Strike Force.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided government-backed funding to small businesses which could be forgiven so long as the proceeds were used for payroll and other eligible expenses. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The PPP and EIDL programs have provided billions of dollars in aid, the vast majority of which have not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.
“COVID-19 relief programs were designed to lift up our community during crisis, and because of the number of people and businesses that requested funding, deserving small businesses were not able to obtain desperately needed funding,” said U.S. Attorney Waldref. “We created the Eastern Washington COVID-19 Fraud Strike Force because combatting pandemic-related fraud and holding those accountable who abused these programs is critical to the strength and safety of our community in Eastern Washington. The Strike Force works to ensure that limited resources are used to protect our local small businesses and the critical jobs and services that they provide for the community.”
In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office (USAO) began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the USAO, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations, U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Department of Homeland Security (DHS) OIG, Internal Revenue Service, Department of Energy OIG, and others.
According to court documents and information disclosed during court proceedings, Cain fraudulently obtained $337,267 in CARES Act funding – a $71,900 EIDL and a $265,267 PPP – in July and August of 2020 in the name of her purported business Americore Construction. According to court documents, Cain used false statements and fictitious tax and payroll documentation in order to obtain the funds. In truth, Americore was not an active business during the relevant time period, did not have any employees, and was not eligible for any federal funding.
In addition to the 15-month prison sentence, Cain was sentenced to 3 years of federal supervision following her release, and is required to repay full restitution of $337,267.
“This sentence demonstrates that falsifying information to gain access to taxpayer dollars will not be overlooked and wrongdoers will be brought to justice,” said SBA OIG’s Western Region Acting Special Agent in Charge Keven Standley. “I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.
“I commend the stellar investigative work on these cases performed by the Strike Force and especially in this case by SBA OIG and TIGTA” said U.S. Attorney Waldref. “We will continue to work together with our law enforcement partners to vigorously prosecute those who abuse and misuse COVID-19 relief funding, and to strengthen our communities by protecting our small and local businesses.”
This case was investigated by the Eastern District of Washington COVID-19 Fraud Strike Force and by the SBA OIG and TIGTA. Assistant United States Attorneys Dan Fruchter and Tyler Tornabene prosecuted this case on behalf of the United States.
Case No. 4:22-CR-6042-MKD
Waco Woman Sentenced to 10 Years in Federal Prison for Identity Theft and Credit Card Fraud in Eastern District of TexasRead the Press Release
SHERMAN, Texas – A Waco woman has been sentenced to 10 years in federal prison for identity theft and credit card fraud in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Ashley Renee Cagle, 43, pleaded guilty to aggravated identity theft and access device fraud and was sentenced to 120 months in federal prison by U.S. District Judge Amos Mazzant.
According to information presented in court, Cagle was arrested by McKinney Police Department officers in May of 2021 when she was found to be in possession of stolen United States mail along with multiple credit and debit cards. Further investigation showed that Cagle engaged in wire fraud when she passed a check using another person’s driver license number at a Wal Mart in the Eastern District of Texas. According to information presented during the sentencing hearing, six businesses suffered financial losses as a result of Cagle’s fraudulent check passing scheme. During the sentencing hearing, Judge Mazzant noted Cagle’s extensive criminal history and the need for protection of the public when he sentenced Cagle to a term of ten years in federal prison.
“This case is an example of the hard work of the U.S. Postal Inspection Service and the U.S. Secret Service investigating identity theft, wire fraud, and mail theft and bringing these cases to prosecution by the U.S. Attorney's Office,” said U.S. Attorney Damien M. Diggs. “Identity theft causes harm not only to businesses who are defrauded, but to those individuals whose private information is used to carry out the crime. The U.S. Attorney's Office will continue to partner with federal and local law enforcement to investigate and vigorously prosecute these offenses.”
This case was investigated by the U.S. Postal Inspection Service, the U.S. Secret Service and the McKinney Police Department.
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Virginia Sheriff, Three Others Indicted on Federal Bribery ChargesRead the Press Release
CHARLOTTESVILLE, Va. – An indictment was unsealed today charging the Sheriff of Culpeper County, Virginia, and three other Virginia men with a conspiracy to exchange bribes for law enforcement badges and credentials, federal programs bribery, and honest services fraud.
According to the indictment, from at least April 2019, Culpeper County Sheriff Scott Howard Jenkins, 51, accepted cash bribes and bribes in the form of campaign contributions totaling at least $72,500 from Rick Tariq Rahim, 55, of Great Falls, Virginia, Fredric Gumbinner, 64, of Fairfax, Virginia, James Metcalf, 60, of Manassas, Virginia, and at least five others, including two FBI undercover agents. In return, Jenkins appointed each of the bribe payors as auxiliary deputy sheriffs, a sworn law-enforcement position, and issued them Culpeper County Sheriff’s Office badges and identification cards. Jenkins told or caused others to tell the bribe payors that those law-enforcement credentials authorized them to carry concealed firearms in all fifty states without obtaining a permit. In addition, Jenkins assisted Rahim in gaining approval for a petition to restore his firearms rights filed in Culpeper County Circuit Court that falsely stated that Rahim resided in Culpeper County.
“Scott Jenkins not only violated federal law but also violated the faith and trust placed in him by the citizens of Culpeper County by accepting cash bribes in exchange for auxiliary deputy badges and other benefits,” United States Attorney Christopher R. Kavanaugh said today. “Our elected officials are expected to uphold the rule of law, not abuse their power for their own personal, financial gain.”
"As law enforcement officers, we are sworn to protect and serve our communities. We do that by upholding the law - equally, and not abusing the powers that are entrusted to us,” Special Agent in Charge Stanley M. Meador of the FBI’s Richmond Division said today. “With today's announcement, FBI Richmond re-enforces our commitment - to the community - of ensuring abuses of public trust will not be tolerated and those responsible will be held accountable.”
Jenkins is charged with one count of conspiracy, four counts of honest-services mail and wire fraud, and eight counts of federal programs bribery. Rahim is charged with one count of conspiracy, three counts of honest-services mail and wire fraud, and three counts of federal programs bribery. Gumbinner is charged with one count of conspiracy, one count of honest-services wire fraud, and two counts of federal programs bribery. Metcalf is charged with one count of conspiracy, one count of honest-services wire fraud, and two counts of federal programs bribery.
If convicted, each defendant faces up to 5 years in prison on the conspiracy count, up to 20 years in prison on each of the honest-services mail and wire fraud counts, and up to 10 years in prison on each of the federal programs bribery counts. A federal district court judge will determine any sentence for all four defendants after considering the U.S. Sentencing Guidelines and other statutory factors.
The defendants are scheduled to make their initial court appearances today in U.S. District Court for the Western District of Virginia.
The FBI’s Richmond Field Office, Charlottesville Resident Agency is investigating the case. Trial Attorney Celia Choy of the Justice Department’s Public Integrity Section and Assistant U.S. Attorneys Heather Carlton and Melanie Smith of the Western District of Virginia are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
University of Oklahoma Professor and Wife Sentenced to Prison for Federal Grant FraudRead the Press Release
OKLAHOMA CITY – SHAORONG LIU, 60, and JUAN LU, 60, both of Norman, were sentenced to serve more than three years collectively in federal prison and ordered to pay $2.1 million in restitution for making false statements involving a Department of Energy grant, announced United States Attorney Robert J. Troester.
On February 18, 2021, a federal grand jury returned a 16-count Superseding Indictment against Liu and Lu. On April 21, 2021, Liu pleaded guilty to making a materially false statement regarding a matter pertaining to the United States Department of Energy. On May 24, 2021, Lu pleaded guilty to using documents containing materially false statements regarding a matter pertaining to the Department of Energy.
Public records reflect that Liu served since 2008 as a professor at the University of Oklahoma in its Department of Chemistry and Biochemistry. In approximately 2001, Liu and his wife Lu formed and controlled a company called MicroChem Solutions (MCS). Through MCS, they applied for and received federal grant monies from the Small Business Technology Transfer Program of the Department of Energy. The mission of the grant program was to support scientific excellence and technological innovation through the investment of federal research funds in critical American priorities to build a strong national economy. However, Liu and Lu spent this grant money on matters unrelated to the purpose of the grant funding, including on personal expenses. Liu and Lu also made false statements and submitted altered documents to the Department of Energy regarding how they spent grant money.
At recent sentencing hearings, United States District Judge Scott L. Palk sentenced the defendants as follows:
- Shaorong Liu was sentenced on June 21, 2023, to 27 months in federal prison and a $10,000.00 fine. This term of imprisonment will be followed by two years of supervised release.
- Juan Lu was sentenced on June 28, 2023, to 14 months in federal prison and a $10,000.00 fine. This term of imprisonment will be followed by two years of supervised release.
In addition to the prison sentences and fine, the Court ordered the defendants to pay $2,100,000.00 in restitution to the United States Department of Energy. In fashioning the sentences, Judge Palk found that Liu and Lu were unintended recipients of the grant due to their false statements and noted the seriousness of the offense and the need to deter others from engaging in similar conduct.
This case is the result of an investigation by the Department of Energy Office of Inspector General, the National Science Foundation Office of Inspector General, and the FBI Oklahoma City Field Office. The case was prosecuted by Assistant U.S. Attorneys Will Farrior and Matt Dillon.
Reference is made to public filings for more information.
United States Settles False Claims Allegations Against Evergreen Hospice, LLC for $48,830Read the Press Release
TULSA, Okla. – United States Attorney Clinton J. Johnson announces that Evergreen Hospice, LLC (Evergreen), a hospice company located in Tulsa, Oklahoma, has agreed to pay $48,830.70 to resolve allegations that it violated the False Claims Act by knowingly submitting false claims to Medicare for hospice care provided to beneficiaries who did not qualify for the services. The claims resolved by the settlement are allegations only; there has been no determination of liability.
“Unfortunately, some healthcare providers seek to defraud Medicare by billing unnecessary hospice services,” stated U.S. Attorney Clinton Johnson. “Left unchecked, this misconduct would deplete funds available for terminally ill patients desperately in need of the relief that hospice care provides. This settlement should serve as notice to others who consider similar practices that we will vigorously pursue them.”
Hospice care is special end-of-life care for terminally ill patients intended to comfort the dying. Patients admitted to hospice care generally stop receiving coverage for traditional medical care intended to cure their illnesses and instead receive medical care focused on providing them with relief from the symptoms, pain, and stress of a terminal illness. Medicare patients are hospice eligible when they are considered terminally ill and have a life expectancy of six months or less, if their illness runs its normal course.
This settlement resolves allegations that Evergreen knowingly submitted false claims to Medicare for hospice services provided to patients who were not terminally ill and for services that were not medically necessary. According to the settlement agreement, the United States alleged that Evergreen knowingly submitted false claims from Sept. 1, 2017, to May 31, 2020, to Medicare for hospice services that were provided to beneficiaries who did not qualify under the Medicare guidelines for routine hospice care because they were improperly certified as terminally ill.
The government’s action in this matter illustrates the emphasis on combating health care fraud, and one of the most powerful tools in this effort is the False Claims Act. Tips 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).
Assistant U.S. Attorney Marianne Hardcastle prosecuted this case.
The Office of Inspector General for the U.S. Department of Health & Human investigated this case.
U.S. Attorney’s Office for the Southern District of Mississippi Launches United Against Hate ProgramRead the Press Release
Jackson, Miss. - The U.S. Attorney’s Office for the Southern District of Mississippi launched United Against Hate, an outreach program focusing on preventing, identifying, and reporting hate crimes and incidents, announced U.S. Attorney Darren J. LaMarca.
United Against Hate connects community groups to federal, state, and local law enforcement to increase community understanding and reporting of hate crimes, build trust between law enforcement and communities, and create and strengthen alliances between law enforcement and other government partners and community groups to combat unlawful acts of hate.
In May of 2021, Attorney General Merrick Garland announced steps towards the Department of Justice’s enhanced efforts to combat and confront hate crimes. He stated, “Hate crimes and other bias-related incidents instill fear across entire communities and undermine the principles upon which our democracy stands. All people in this country should be able to live without fear of being attacked or harassed because of where they are from, what they look like, whom they love, or how they worship.”
On June 29, 2023, Assistant U.S. Attorneys Mitzi Dease Paige, Glenda Haynes, Tabitha Kingma and Angela Givens Williams, along with colleagues in their office and law enforcement partners who investigate hate crimes, hosted a presentation called “United Against Hate: Identifying, Reporting and Preventing Acts of Hate” at Pearl A.M.E. Church, 2519 Robinson Street in Jackson, Mississippi. This event gave the U.S. Attorney’s Office an opportunity to connect with faith-based leaders to help effect positive change within our community. Faith-based leaders are usually the first person of contact when individuals or families face these types of hateful behavior. Often hate crimes and incidents go underreported, allowing offenders to continue to spread their hate, fear, and intimidation. This event assisted faith-based leaders in the Jackson area to identify hate crimes, understand the importance of reporting these crimes and most importantly, to discuss strategies to prevent acts of hate.
The U.S. Attorney’s Office’s online complaint form is available at https://www.justice.gov/usao-sdms/civil-division webpage. The form can be emailed [email protected] , or concerns can be shared by leaving a voice mail for our Civil Rights Division at (601) 973-2825.
U.S. Attorney’s Office Participates in Coordinated National Health Care Fraud Enforcement ActionRead the Press Release
BOISE – U.S. Attorney Josh Hurwit announced criminal charges against two defendants today as part of the Department of Justice’s 2023 National Health Care Fraud Enforcement Action. This two-week nationwide law enforcement action resulted in criminal charges against 78 defendants for their alleged participation in health care fraud and opioid abuse schemes that included over $2.5 billion in alleged fraud.
In the Idaho case, a federal grand jury in Boise returned an indictment charging nurse practitioner Angela Kathryn Hughes, 49, of Boise, and Sydney L. Neal, 37, of Boise with conspiracy to distribute controlled substances. Hughes was also charged with distribution of controlled substances. The indictment alleges that from January 2022 through March 2023, Hughes and Neal conspired to distribute oxycodone, oxycodone acetaminophen, and hydrocodone acetaminophen outside the scope of professional practice and not for a legitimate medical purpose. In addition, the indictment alleges that Hughes distributed hydrocodone acetaminophen to Neal on two occasions and oxycodone to another person on a third occasion.
The trial is scheduled for August 28, 2023, before Senior U.S. District Court Judge B. Lynn Winmill of the U.S. District Court for the District of Idaho. If convicted, the defendants face a maximum of 20 years in federal prison. A federal district court judge would determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“These enforcement actions, including against one of the largest health care fraud schemes ever prosecuted by the Justice Department, represent our intensified efforts to combat fraud and prosecute the individuals who profit from it,” said Attorney General Merrick B. Garland. “The Justice Department will find and bring to justice criminals who seek to defraud Americans and steal from taxpayer-funded programs.”
“This nationwide enforcement action demonstrates that the Criminal Division is committed to fighting health care fraud and opioid abuse by prosecuting those who allegedly exploit patients and health care benefit programs for personal gain,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s announcement includes some of the largest and most complex cases that the Department has prosecuted, and demonstrates the Department’s commitment to seeking justice for those at all levels of the healthcare industry who put profits above patient care, from professionals in doctors’ offices to executives in corporate boardrooms.”
“Unlawful prescription schemes not only steal taxpayer dollars, but they also can cause addiction and physical harm to patients and the community,” said U.S. Attorney Hurwit. “Health care providers should never start down the path of fraud and unlawful prescription drug distribution. We won’t tolerate it, and I’m grateful for the Boise Police Department’s collaboration with our federal law enforcement partners to investigate the case we announced today.”
“Medical professionals who take advantage of their credentials to illegitimately prescribe controlled substances violate the principles of their profession and put the health and safety of others at risk,” said Steven J. Ryan, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG remains steadfast in our commitment to protecting the health and safety of American communities and holding accountable those who undermine efforts to curb the opioid crisis.”
“The DEA, in partnership with Health and Human Services-Office of the Inspector General (HHS-OIG) and the Boise Police Department (BPD), remain steadfast in our commitment to ensure prescription drugs are not illegally diverted from the supply chain in an effort to continue the fight to reduce the overwhelming drug poisonings occurring across the United States,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “These indictments and subsequent arrests are part of that effort to curb this drug poisoning epidemic and bring those to justice who knowingly and intentionally misuse their DEA registrations.”
U.S. Attorney Hurwit credited the cooperative efforts of the Boise Police Department, Health & Human Services, Office of Inspector General, and Drug Enforcement Administration which led to the charges.
Idaho patients impacted by this service disruption experiencing a behavioral health crises can contact the 988 telephone hotline. Additionally, Idaho patients can contact 211 for questions regarding access to treatment services, primary care, and where to obtain naloxone.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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U.S. Attorney Announces Charges in Four Separate Insider Trading Cases Against 10 Individuals, Including Drug Company Employees, Investment Firm Executive Director, and SPAC InvestorsRead the Press Release
Pfizer Employee and Associate Charged with Insider Trading Based on Non-Public Drug Trial Results for COVID-19 Treatment
Investment Firm Executive Director Charged with Insider Trading Based on Information Stolen from a Major Investment Bank
SPAC Investors Charged with Insider Trading by Exploiting Their Privileged Access to Information to Engage in Illegal Open Market Trades
Network of Individuals, Including Police Chief, Charged with Insider Trading Based on Inside Information About an Impending Merger
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced charges in four separate insider trading cases, collectively charging 10 defendants with securities fraud and other related charges. These cases involve trading based on confidential information misappropriated from entities and individuals in a variety of industries and reflect the U.S. Attorney’s Office for the Southern District of New York’s broad investigative reach and continued resolve to root out corruption in our financial markets. The defendants in these cases collectively generated more than $30 million dollars from illegal securities trading based on material, non-public information (“MNPI”) that was stolen from numerous sources.
U.S. Attorney Damian Williams said: “Insider trading is not a quick buck. It’s not easy money. It’s not a sure thing. It’s cheating. It’s a bad bet. It’s a ticket to prison. Because my Office, the Southern District of New York, is watching. And we’re working quickly to investigate and prosecute anyone who corrupts our financial markets. And we’ll keep at it as long as it takes. You can bet on that.”
FBI Assistant Director in Charge Michael J. Driscoll said: “The charges announced today center on the defendants’ alleged participation in illegal securities trading based on material, non-public information. Insider trading schemes not only yield ill-gotten gains for those directly involved but also damage the public’s faith in the fairness of our financial markets. Today’s announcement serves as a reminder to anyone attempting to tilt the balance in their direction using insider trading, investigating this illegal behavior is a top priority of the FBI.”
According to the allegations contained in the Indictments filed in federal court and other publicly available information:[1]
United States v. Amit Dagar and Atul Bhiwapurkar
In or about November 2021, AMIT DAGAR and ATUL BHIWAPURKAR participated in an insider trading scheme to reap illicit profits from options trading based on inside information about the results of clinical trials of Paxlovid, a medicine used to treat COVID-19. DAGAR was an employee of Pfizer Inc. (“Pfizer”) and assisted in managing the data analysis in certain clinical drug trials.
On or about November 4, 2021, DAGAR learned that a Pfizer trial of the drug Paxlovid, a medicine designed to treat mild to severe COVID‑19 infection, had produced positive results. The results were confidential and meant to remain so until Pfizer publicized them on or about November 5, 2021.
Later that same day, and while those results remained confidential, DAGAR purchased short-dated, out-of-the-money call options in Pfizer stock. DAGAR also tipped his close friend, ATUL BHIWAPURKAR, about the coming drug results and BHIWAPURKAR also purchased short-dated, out-of-the-money Pfizer call options that expired approximately two weeks later. BHIWAPURKAR also tipped another friend (“Individual-1”), who similarly purchased short-dated, out-of-the-money Pfizer call options that expired approximately three weeks later.
The next day, on or about November 5, 2021, and before the market opened, Pfizer publicly released results of its Paxlovid study. That same day, following the publication of the positive results, Pfizer’s stock price increased substantially, opening — and eventually closing — more than 10% higher than the prior day’s closing price. In the coming weeks, DAGAR, BHIWAPURKAR, and Individual-1 sold their Pfizer call options at significant profits, totaling approximately more than $350,000.
DAGAR, 44, of Hillsborough, New Jersey, who was arrested this morning, has been charged with four counts of securities fraud, each of which carries a maximum sentence of 20 years in prison, and one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison.
BHIWAPURKAR, 45, of Milpitas, California, who was arrested this morning, has been charged with two counts of securities fraud, each of which carries a maximum sentence of 20 years in prison, and one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison.
United States v. Jordan Meadow
From at least in or about March 2021 through in or about May 2022, JORDAN MEADOW, a registered broker at a brokerage firm based in New York, New York, used inside information stolen from a major investment bank in New York City (“the Investment Bank”) to make millions of dollars in illegal profits trading stock on behalf of himself and his clients. In or about late 2020, MEADOW offered and agreed to provide items of value, such as Rolex watches, to a friend, Steven Teixeira, in exchange MNPI that Teixeira obtained by secretly accessing confidential work documents on a personal laptop computer (the “Laptop”) belonging to Teixeira’s then-girlfriend, an executive assistant at the Investment Bank. The documents on the Laptop contained MNPI about planned corporate acquisitions in which the Investment Bank served as an advisor.
In or around late July 2021, Teixeira secretly accessed confidential work information on the Laptop and learned that in less than a week, Penn National Gaming, Inc. (“Penn National”), was going to acquire Score Media and Gaming Inc. (“Score”), a Canadian digital media company, for approximately $2.2 billion. Teixeira shared this MNPI with a friend, who in turn shared it with MEADOW. MEADOW then purchased more than 769 call option contracts in Score between August 2, 2021, and August 3, 2021, based on the MNPI and also advised a colleague at the brokerage firm where he worked, their clients, and a friend to purchase Score securities. After Penn National’s acquisition of Score was announced publicly on August 5, 2021, MEADOW, his colleague, their clients at the brokerage firm, and MEADOW’s friend sold their holdings in Score for a combined profit exceeding $5 million.
Later, in or around early March 2022, Teixeira secretly accessed confidential work information on his then-girlfriend’s laptop and learned about a planned corporate acquisition of VMWare, an enterprise software company, for approximately $65 billion. Teixeira shared this MNPI with his friend, who in turn shared it with MEADOW. MEADOW purchased over 5,000 shares of VMWare stock, as well as call options contracts in VMWare, between May 9, 2022, and May 18, 2022, and advised his colleague at the brokerage firm to purchase VMWare securities. After there was public reporting that Broadcom was in talks to acquire VMWare, the VMWare holdings of MEADOW and his colleague increased significantly, and they began to sell their VMWare holdings for a combined profit exceeding $100,000.
MEADOW, 34, of Warren, New Jersey, who was arrested this morning, has been charged with six counts of securities fraud under Title 15, each of which carries a maximum sentence of 20 years in prison; one count of securities fraud under Title 18, which carries a maximum sentence of 25 years in prison; and one count of conspiracy, which carries a maximum sentence of five years in prison.
Also unsealed today were charges against Steven Teixeira, who has pled guilty pursuant to a cooperation agreement.
United States v. Michael Shvartsman, Gerald Shvartsman, and Bruce Garelick
In October 2021, MICHAEL SHVARTSMAN, GERALD SHVARTSMAN, and BRUCE GARELICK together made more than $22 million dollars in illegal profits by trading in securities of Digital World Acquisition Corporation (“DWAC”) based on MNPI about DWAC’s planned but not yet public business combination with a media company founded by former President Donald J. Trump.
As sophisticated investors, MICHAEL SHVARTSMAN, GERALD SHVARTSMAN, and BRUCE GARELICK were invited to invest in DWAC and another special purpose acquisition company (“SPAC”), and after signing non-disclosure agreements, they were provided confidential information about the SPACs, including that a potential target of the SPACs was Trump Media & Technology Group (“Trump Media”). As a condition of receiving this information, the defendants were prohibited by the non-disclosure agreements from disclosing the confidential information they learned or using it to buy and sell securities on the open market. After making initial investments into DWAC through the initial public offering process, GARELICK was given a seat on DWAC’s board of directors, which gave him access to valuable MNPI about DWAC’s plans to merge with Trump Media. After learning MNPI through his role on DWAC’s board, GARELICK provided updates to his alleged co-conspirators — which he called “intelligence” — about the status of the merger negotiations and the timing of a public merger announcement.
In violation of the non-disclosure agreements that they had signed, and in contravention of GARELICK’s duties and responsibilities as a board member, the defendants bought millions of dollars of DWAC securities on the open market before the news of the Trump Media business combination was public. In addition to their own purchases, the defendants also passed DWAC’s confidential information to their friends on a trip to Las Vegas, to MICHAEL SHVARTSMAN’s neighbors, and to GERALD SHVARTSMAN’s employees at a furniture supply store. After DWAC’s merger with Trump Media was announced publicly, the stock and warrant holdings of MICHAEL SHVARTSMAN, GERALD SHVARTSMAN, and BRUCE GARELICK, and those they tipped, significantly increased in value. The defendants and the individuals they tipped then sold their DWAC securities for a significant profit.
MICHAEL SHVARTSMAN, 52, of Sunny Isles Beach, Florida, who was arrested this morning, has been charged with five counts of securities fraud under Title 15, each of which carries a maximum sentence of 20 years in prison; one count of securities fraud under Title 18, which carries a maximum sentence of 25 years in prison; and one count of conspiracy, which carries a maximum sentence of five years in prison.
GERALD SHVARTSMAN, 45, of Aventura, Florida, who was arrested this morning, has been charged with three counts of securities fraud under Title 15, each of which carries a maximum sentence of 20 years in prison; one count of securities fraud under Title 18, which carries a maximum sentence of 25 years in prison; and one count of conspiracy, which carries a maximum sentence of five years in prison.
BRUCE GARELICK, 53, of Fort Lauderdale, Florida, who was arrested this morning, has been charged with five counts of securities fraud under Title 15, each of which carries a maximum sentence of 20 years in prison; one count of securities fraud under Title 18, which carries a maximum sentence of 25 years in prison; and one count of conspiracy, which carries a maximum sentence of five years in prison.
United States v. Joseph Dupont, Shawn Cronin, Slava Kaplan, and Paul Feldman
In 2020, JOSEPH DUPONT, SHAWN CRONIN, SLAVA KAPLAN, a/k/a “Stanley Kaplan,” and PAUL FELDMAN engaged in an insider trading scheme surrounding the announcement of one pharmaceutical company’s acquisition of another. CRONIN, KAPLAN, and FELDMAN collectively made more than $2.2 million dollars in illegal profits by trading in stocks and options based on MNPI that DUPONT misappropriated from his employer.
DUPONT was a vice president at Alexion Pharmaceuticals, Inc. (“Alexion”) and, on January 31, 2020, was informed of Alexion’s upcoming acquisition of Portola Pharmaceuticals, Inc. (“Portola”). Before that acquisition was publicly announced, in April 2020, DUPONT provided MNPI about the acquisition to his childhood friend, CRONIN. Not only were CRONIN and DUPONT childhood friends, but also CRONIN — who, at the time, was a sergeant in the police department of Dighton, Massachusetts, and later served as the chief of police — supervised DUPONT in DUPONT’s capacity as a reserve officer in that police department. Based on the MNPI that DUPONT provided CRONIN, CRONIN purchased shares of Portola stock as well as out-of-the-money call options for Portola stock.
In turn, CRONIN shared MNPI about Portola’s pending acquisition with Jarett Mendoza, another childhood friend of both CRONIN’s and DUPONT’s. CRONIN also assisted Mendoza in purchasing Portola stock in the days before the acquisition was publicly announced.
CRONIN shared MNPI about Portola’s pending acquisition not only with Mendoza, but also with KAPLAN, a friend of CRONIN’s, who was also known to DUPONT. CRONIN shared the MNPI with KAPLAN both so that KAPLAN could trade in advance of the acquisition and so that KAPLAN would assist CRONIN in formulating trading strategies to maximize CRONIN’s own insider trading profits. Based on the MNPI that CRONIN gave to KAPLAN, KAPLAN bought Portola shares and options.
KAPLAN, in turn, shared MNPI about the upcoming acquisition with, among others, FELDMAN, a friend and colleague of KAPLAN’s. Based on the MNPI that KAPLAN gave FELDMAN, FELDMAN aggressively bought Portola call options.
FELDMAN, for his part, shared MNPI about the Portola acquisition with others, including a work colleague.
Alexion’s acquisition of Portola was publicly announced on the morning of May 5, 2020. Portola’s stock increased significantly in value. CRONIN, KAPLAN, FELDMAN, and their tippees sold their shares of Portola and call options for Portola stock, reaping millions of dollars of illegally obtained trading profits.
DUPONT, 44, of Rehoboth, Massachusetts, who surrendered to authorities today, has been charged with one count of Title 15 securities fraud and one count of tender offer fraud, each of which carries a maximum sentence of 20 years in prison, and one count of securities fraud under Title 18, which carries a maximum sentence of 25 years in prison.
CRONIN, 43, of Dighton, Massachusetts, who surrendered to authorities today, has been charged with three counts of securities fraud under Title 15 and three counts of tender offer fraud, each of which carries a maximum sentence of 20 years in prison; one count of securities fraud under Title 18, which carries a maximum sentence of 25 years in prison; and one count of conspiracy to commit securities fraud and tender offer fraud, which carries a maximum sentence of five years in prison;.
KAPLAN, 45, of Hopewell Junction, New York, who was arrested today, has been charged with three counts of securities fraud under Title 15 and three counts of tender offer fraud, each of which carries a maximum sentence of 20 years in prison; one count of securities fraud under Title 18, which carries a maximum sentence of 25 years in prison; and one count of conspiracy to commit securities fraud and tender offer fraud, which carries a maximum sentence of five years in prison.
FELDMAN, 48, of Poughquag, New York, who was arrested today, has been charged with six counts of securities fraud under Title 15 and six counts of tender offer fraud, each of which carries a maximum sentence of 20 years in prison; one count of securities fraud under Title 18, which carries a maximum sentence of 25 years in prison; and one count of conspiracy to commit securities fraud and tender offer fraud, which carries a maximum sentence of five years in prison.
Also unsealed today were charges against Jarett Mendoza, who has pled guilty pursuant to a cooperation agreement.
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The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI’s New York and Philadelphia Field Offices. He also thanked the Miami Field Office of the U.S. Department of Homeland Security, Homeland Security Investigations, for its assistance in the investigation in United States v. Michael Shvartsman, Gerald Shvartsman, and Bruce Garelick. He further thanked the Securities and Exchange Commission for its cooperation and assistance across these investigations.
These cases are being handled by the Office’s Securities and Commodities Fraud Task Force. United States v. Dagar and Bhiwapurkar is in the charge of Assistant U.S. Attorney Alex Rossmiller. United States v. Meadow is in the charge of Assistant U.S. Attorney Nicholas Folly. United States v. Michael Shvartsman, Gerald Shvartsman, and Bruce Garelick is in the charge of Assistant U.S. Attorneys Elizabeth Hanft, Nicolas Roos, and Matthew Shahabian. United States v. Dupont, Cronin, Kaplan, and Feldman is in the charge of Assistant U.S. Attorneys Samuel P. Rothschild, Sarah Mortazavi, and Margaret Graham.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth below constitute only allegations, and every fact described should be treated as an allegation.
U.S. v. Dagar and Bhiwapurkar Indictment U.S. v. Meadow Indictment U.S. v. Shvartsman et al Indictment U.S. v. Dupont et al IndictmentU.S. Attorney Announces 17 Indictments in Fayetteville Area as Part of Ongoing Federal Violent Crime and Drug Strategy Significant Amounts of Drugs and Guns SeizedRead the Press Release
FAYETTEVILLE, N.C. – Today, U.S. Attorney Michael Easley, along with federal and local law enforcement, announced ongoing and coordinated efforts to address violent crime and drug trafficking in Fayetteville and surrounding areas.
This effort was conducted as part of two strategic initiatives underway in the region: the Violent Crime Action Plan (VCAP) and the Organized Crime Drug Enforcement Task Force (OCDETF).
Over the last two months, 17 individuals were indicted by grand juries for federal charges and are currently in custody. As part of the initiative, 16 guns, four auto sear machine gun switches, nearly 1500 rounds of ammunition, nearly a kilogram of cocaine, approximately an ounce of fentanyl, 100 MDMA/fentanyl pills, cash and two luxury SUVs have been seized.
Additionally, convictions have now been secured against all three North Carolina defendants in an international fentanyl trafficking ring that operated in multiple cities, including the city of Fayetteville. Earlier this month, a federal jury returned verdicts of guilty on both counts against Hector Perez Valenzuela, who was found with seven kilograms of pure fentanyl. In total, the fentanyl trafficking ring was held accountable for distributing more than 40 kilograms of fentanyl around the country.
“As we head into the summer months, when we typically see an uptick in violent crime, we want to send a strong and unified message that this community stands against gun violence and drug traffickers,” said U.S. Attorney Michael Easley. “We are working with law enforcement at every level to get dangerous, illegal guns and drugs off the streets and put the individuals most responsible for violence and narcotics behind bars. We are using every tool available to keep our communities safe.”
VCAP is a collaboration of the U.S. Attorney’s Office with the Fayetteville Police Department (FPD), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Federal Bureau of Investigation (FBI), the Cumberland County Sheriff’s Office (CCSO), the Cumberland County District Attorney’s Office, and the United States Marshals Service (USMS). A primary objective of the VCAP is to identify and systematically investigate and prosecute individuals contributing to crime in the city of Fayetteville and surrounding areas. Law enforcement partners use inter-agency coordination and intelligence-led policing, analyzing crime data to deploy resources where they are most needed and leveraging federal Task Force officers to bring federal technology to address local gun violence.
OCDETF investigations identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
"The Fayetteville Police Department remains committed to our partnership with Federal and State agencies to remove violent and career criminals from our community,” said Fayetteville Police Chief Kemberle Braden. “This partnership and the highlighted cases presented today support our goal of making Fayetteville a safe and secure community."
“These indictments and seizures demonstrate the FBI's relentless determination to eradicate the sales of illegal drugs. We are proud to work side by side with our law enforcement partners to hold these individuals accountable,” said Robert M. DeWitt, Federal Bureau of Investigation (FBI) Charlotte Special Agent in Charge.
“Drugs are affecting families and killing our loved ones,” said Cumberland County Sheriff Ennis W. Wright. “Law Enforcement and Criminal Justice Agencies nationwide are constantly collaborating to find opportunities to improve safety in our communities. We hold everyone who endangers our communities with gun violence and poisons like Fentanyl, Cocaine, Meth, and Heroin responsible. While the drug dealers think they are safe, we are putting you on notice that your dealings are being watched, and rest assured that we are on the way to you and have a place for you to stay."
“ATF and our law enforcement partners support the Violent Crime Action Plan because it focuses on those individuals who pose the biggest threat to our communities,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Bennie Mims. “We can have a major impact on the level of crime and violence in a community when we take firearms out of the hands of dangerous, prohibited individuals.”
"Fentanyl poisonings and other dangerous drugs have taken a terrible toll on our communities.” said Robert J. Murphy, Special Agent in Charge of the Drug Enforcement Administration (DEA) Atlanta Division. “Violent criminals and drug traffickers will face the consequences of their actions.”
“The Cumberland County District Attorney’s Office is proud to be a part of the Violent Crime Action Plan,” said Cumberland County District Attorney Billy West. “We are committed to partnering with our local, state, and federal law enforcement to aggressively prosecute violent crime. These indictments are an example of working together with our partners to remove dangerous and illegal drugs and guns as well as violent offenders from our community.”
There are a wide range of charges on these subjects including felon in possession of a firearm, robbery, possession with intent to possess/distribute narcotics, as well as possessing firearms in furtherance of drug trafficking crimes and crimes of violence.
The following individuals, all from Fayetteville and surrounding areas, face federal prosecution resulting from VCAP:
- Norman Vincent Brown, age 33, felon in possession of a firearm
- Malik Crawford, age 26, interference with commerce by robbery and possession of firearm during a crime of violence
- Joseph Monroe Griffin, age 33, felon in possession of a firearm
- Ondrilleis Malloy, age 26, felon in possession of a firearm
- Demarco McLucas, age 22, felon in possession of a firearm
- Tammy Michelle Mitchell, age 42, felon in possession of a firearm
- Anthony Thomas, age 27, interference with commerce by robbery and possession of firearm during a crime of violence
- Samuel Thompson, age 20, possession of a machinegun and felon in possession of a firearm
- Zaire Whitten, age 26, felon in possession of a firearm
The following defendants were indicted as part of an OCDETF investigation:
- Eric David Black, age 30, conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl; possession with intent to distribute fentanyl; possession of a firearm in furtherance of a drug trafficking crime.
- Robert James Colt, a/k/a “RJ,” age 38, conspiracy to distribute and possess with intent to distribute fentanyl; possession with intent to distribute fentanyl; possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm by a felon.
- Jean Raymond Desire, a/k/a “Krim,” age 50, conspiracy to distribute 500 grams or more of a mixture containing methamphetamine; distribution of 50 grams or more of a mixture containing methamphetamine; and distribution of a quantity of cocaine and aiding and abetting.
- Rashard Antwon Hardy, a/k/a “Gump,” age 42, conspiracy to distribute 50 grams or more of a mixture containing methamphetamine and distribution of 50 grams or more of a mixture of methamphetamine and abetting.
- Rick Derrell McIntyre, age 44, conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine; distribution of 50 grams or more of methamphetamine.
- Laron Marcell McIntyre, a/k/a “Rat,” age 48, conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine; distribution of 50 grams or more of methamphetamine.
- Natadja Denae Owen, age 26, conspiracy to distribute and possess with intent to distribute 50 grams or more of a mixture containing methamphetamine; distribution of 50 grams or more of a mixture containing methamphetamine and aiding and abetting; and distribution of a quantity of cocaine and aiding and abetting.
- Kenneth Brandon Pomeroy, Jr., a/k/a “Spazz,” age 38, conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl; possession with intent to distribute fentanyl; possession of a firearm in furtherance of a drug trafficking crime.
The VCAP initiative is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement. The Fayetteville Police Department, the Cumberland County Sheriff’s Office, the Cumberland County District Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and the U.S. Marshals Service are involved in the investigations. Assistant U.S. Attorneys Caroline Webb and Chad Rhoades are the lead prosecutors for the cases, with assistance from other criminal Assistant U.S. Attorneys in the office.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
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Two Las Cruces Men Sentenced for Firearms OffensesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Jeffrey C. Boshek II, Special Agent in Charge of the Dallas Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced today that Ruben Martha, 42, of Las Cruces, and Pablo Vargas, 52, of Las Cruces, were sentenced to 21 months and 60 months respectively for their parts in a neighbor dispute which resulted in approximately 39 rounds being fired and Martha, and another individual, being shot.
A federal grand jury indicted Vargas and Martha on April 20, 2022. According to court records, on April 17, 2021, Vargas was attending a party at his parent’s home on Nevada Street in Las Cruces, New Mexico. Martha, who lived down the street, was returning to his home along with his girlfriend and his adult daughter, who were in separate cars, and slowed down as they navigated their way through the busy street. An angry exchange occurred during which an object was thrown at Martha’s car and a can was thrown through the open window of the car Martha’s daughter was driving. The daughter was struck by the can and injured.
When Martha reached his home and observed what had happened, he ran back down the street towards the Vargas residence but retreated to his house when he saw Vargas and others outside the home. Shortly thereafter, another neighbor arrived on scene. The neighbor parked on the street where he observed a group with firearms walking towards him from the Vargas residence. Gunfire was exchanged and the neighbor was struck in the head by a bullet, however he managed to flee the scene. Martha retrieved a shotgun from a trashcan on his property as Vargas and at least one other individual fired toward Martha’s residence. Martha chambered a round of ammunition in the shotgun but was struck in the chest.
Though originally not expected to survive his injuries, the neighbor has since recovered. Martha also recovered from his injuries.
In 1997, Vargas was convicted of shooting at or from a motor vehicle. Martha was convicted in 2000 of aggravated assault with a deadly weapon and criminal damage to property, and in 2007 of shooting at a dwelling, aggravated assault with a deadly weapon, and felon in possession. As previously convicted felons, neither Vargas nor Martha can legally possess firearms or ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Las Cruces Police Department. Assistant United States Attorneys Maria Armijo and Christopher McNair are prosecuting the case.
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Texas Man Sentenced to over 13 Years for Attempting to Provide Material Support to ISISRead the Press Release
A Houston man was sentenced today to 165 months, the equivalent of 13 years and nine months, in prison followed by a lifetime of supervised release for attempting to provide material support to Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
According to court documents, Kaan Sercan Damlarkaya, 23, attempted to join and support ISIS from August 2017 until his arrest in December 2017. He pleaded guilty July 8, 2019. In addition to wanting to join ISIS, Damlarkaya also provided information to ISIS supporters about the use of machetes, homemade construction of an automatic weapon and how to build and use explosive materials.
As part of his plans to join ISIS overseas, starting in approximately early August 2017, Damlarkaya had numerous conversations online with many individuals he believed to be fellow ISIS supporters. During these discussions, he described his intentions to travel overseas to fight for ISIS in Syria or Afghanistan. Damlarkaya added that if he was unsuccessful in joining ISIS overseas, he would conduct an on attack on non-Muslims in the United States and that it was his “dream” to be a martyr.
Damalarkaya also provided information to other ISIS supporters, on at least two separate occasions, about ways to manufacture a bomb. Specifically, he described how to make explosives formula using triacetone triperoxide and cautioned the others to “take safety seriously while you make this” to be “useful until you can strike.”
Damlarkaya further illustrated to ISIS supporters ways to construct an automatic weapon. He claimed he could buy a “GIANT machete for $15” and stated “a lot of us are poor… or we don't have experience. So not all of us can get a gun or make explosives, but we can afford to buy a $15 knife.” He claimed he slept with a machete under his pillow ready to use if law enforcement raided his house.
When agents arrested Damlarkaya, they executed a search warrant at his residence and found a machete by his bed.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas and Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division made the announcement.
The FBI’s Joint Terrorism Task Force investigated the case.
Assistant U.S. Attorney Rob Jones for the Southern District of Texas is prosecuting the case, with valuable assistance provided by Trial Attorney Kevin Nunnally of the National Security Division’s Counterterrorism Section.
Texan sentenced for trafficking firearms to Mexico in ice chestRead the Press Release
LAREDO, Texas – A 74-year-old San Antonio man has been sent to prison following his conviction for illegal exportation of firearms and ammunition, announced U.S. Attorney Alamdar S Hamdani.
Atanacio Espinoza-Duarte pleaded guilty Feb. 15.
U.S. District Judge Diana Saldana ordered Espinoza-Duarte to serve 24 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard how firearms illegally exported from the United States to Mexico are used in violent crime south of the border. In handing down the sentence, the court noted that it is no excuse for delivery drivers to ignore the merchandise they are transporting.
At the time of his plea, Espinoza-Duarte admitted to attempting to illegally exporting firearms to Mexico.
On June 14, 2021, Espinoza-Duarte attempted to enter Nuevo Laredo, Mexico, through the Laredo Port of Entry in a pickup truck. Law enforcement working the outbound inspection lane observed an ice chest in the flat bed of Espinoza-Duarte’s truck. Upon further investigation, authorities discovered five AK-47 rifles and five, 30-round AK-47 magazines that were fully loaded.
Espinoza-Duarte admitted he purchased some of the seized firearms from a man in Mesquite.
Espinoza-Duarte will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection conducted the investigation with the assistance of Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Francisco J. Rodriguez prosecuted the case.
Susan T. Lehr to be New Acting U.S. AttorneyRead the Press Release
Career prosecutor Susan T. Lehr has been named the Acting United States Attorney for the District of Nebraska to take over following the retirement of Interim United States Attorney Steven A. Russell. Lehr’s appointment will be effective on July 1, 2023.
Lehr, a 1988 graduate of the Denver University College of Law, has been with the United States Attorney’s Office since 1999. Prior to joining the U.S. Attorney’s Office, Lehr worked as a prosecutor in the Buffalo and Douglas County Attorneys’ Offices. Lehr is originally from Omaha. During her tenure with the Department of Justice, Lehr has handled a wide variety of criminal cases and currently serves as the District of Nebraska’s First Assistant United States Attorney. She also completed a detail assignment to the U.S. Attorney’s Office in Washington, D.C. Lehr will serve until a new U.S. Attorney is appointed by the President.
Stratford Man Charged with Distributing Methamphetamine and OxycodoneRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Stratford Police Department Chief Joseph McNeil today announced that EDWARD JOHNSON, 31, of Stratford, has been charged by indictment with unlawfully distributing methamphetamine and oxycodone.
As alleged in court documents and statements made in court, in April 2022, the Stratford Police Department’s Narcotics, Vice and Intelligence Unit and the Drug Enforcement Administration began investigating Johnson and others for distributing controlled substances in the Stratford and Bridgeport area.
Johnson was arrested on state charges on August 2, 2022. On that date, investigators conducted a court authorized search of Johnson’s residence on Thompson Street in Stratford and seized approximately 967 grams of methamphetamine in both pill form and powder form, approximately 13 grams of oxycodone pills; other prescription pills, more than six pounds of marijuana, and $32,151 in cash.
On June 20, 2023, a grand jury in New Haven returned an indictment charging Johnson with one count of possession with intent to distribute 50 grams or more of methamphetamine and a quantity of oxycodone, an offense that carries a mandatory minimum term of imprisonment of five years and maximum term of imprisonment of 40 years.
Johnson, who has been detained since his arrest, appeared today before U.S. Magistrate Judge Maria E. Garcia in New Haven and entered a plea of not guilty.
U.S. Attorney Avery stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Stratford Police Department’s Narcotics, Vice and Intelligence Unit and the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force. The HIDTA Task Force includes personnel from the DEA Bridgeport Resident Office, the Connecticut State Police, and the Bridgeport, Norwalk, Stamford, Stratford, Milford, and Danbury Police Departments. The case is being prosecuted by Assistant U.S. Attorney Stephanie T. Levick.
St. Louis County Man Convicted of Armed Robbery of RestaurantRead the Press Release
ST. LOUIS – A man from Riverview, Missouri was convicted by a federal jury Wednesday of the armed robbery of the Steak ‘N Shake where he once worked.
Jonathan Davis, 24, was found guilty of two felonies at the end of the third day of his trial in U.S. District Court in St. Louis: robbery and possession and brandishing of a firearm in furtherance of a crime of violence.
On Jan. 23, 2021, at about 12:30 a.m., a man walked directly to the back office of the Steak ‘N Shake restaurant at 9550 Natural Bridge Road in Berkeley and demanded cash from the owner at gunpoint. The owner identified Davis as the robber, according to court testimony. Davis had worked at the restaurant until about two months before the robbery.
Evidence and testimony showed that Davis had been evicted from his home and was living in an extended-stay hotel at the time of the robbery. Later on the day of the robbery, Davis began a five-day spending spree, paying his rent, buying an iPhone, buying a diamond ring for his girlfriend, paying her cell phone bill and giving her cash, according to testimony. He also lost $1,000 to a scammer while trying to buy a car online.
Davis will be sentenced later this year.
The Berkeley Police Department and the FBI investigated the case. Assistant U.S. Attorneys Jennifer Szczucinski and Michael Hayes are prosecuting the case.
South Carolina Participates in National Enforcement Action Resulting in 78 Individuals Charged for $2.5B in Health Care FraudRead the Press Release
COLUMBIA, SOUTH CAROLINA -- The Department of Justice, including the U.S. Attorney’s Office for the District of South Carolina together with federal and state law enforcement partners, announced a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 78 defendants for their alleged participation in health care fraud and opioid abuse schemes that included over $2.5 billion in alleged fraud.
The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled, and, in some cases, used the proceeds of the schemes to purchase luxury items, including exotic automobiles, jewelry, and yachts. In connection with the enforcement action, the Department seized or restrained millions of dollars in cash, automobiles, and real estate.
“These enforcement actions, including against one of the largest health care fraud schemes ever prosecuted by the Justice Department, represent our intensified efforts to combat fraud and prosecute the individuals who profit from it,” said Attorney General Merrick B. Garland. “The Justice Department will find and bring to justice criminals who seek to defraud Americans and steal from taxpayer-funded programs.”
“This nationwide enforcement action demonstrates that the Criminal Division is committed to fighting health care fraud and opioid abuse by prosecuting those who allegedly exploit patients and health care benefit programs for personal gain,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s announcement includes some of the largest and most complex cases that the Department has prosecuted, and demonstrates the Department’s commitment to seeking justice for those at all levels of the healthcare industry who put profits above patient care, from professionals in doctors’ offices to executives in corporate boardrooms.”
“Health care fraud is a complex and ever-evolving threat that negatively impacts the American people,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Today’s nationwide coordinated law enforcement action is a testament to the tenacity of the FBI and our partners, as well as our combined efforts to pursue anyone who conspires to exploit our health care system for financial gain.”
Telemedicine Fraud
The enforcement action included charges against 11 defendants in connection with the submission of over $2 billion in fraudulent claims resulting from telemedicine schemes. In a case involving the alleged organizers of one of the largest health care fraud schemes ever prosecuted, an indictment in the Southern District of Florida alleges that the chief executive officer (CEO), former CEO, and Vice President of Business Development of purported software and services companies conspired to generate and sell templated doctors’ orders for orthotic braces and pain creams in exchange for kickbacks and bribes. The conspiracy allegedly resulted in the submission of $1.9 billion in false and fraudulent claims to Medicare and other government insurers for orthotic braces, prescription skin creams, and other items that were medically unnecessary and ineligible for Medicare reimbursement.
As part of the alleged conspiracy, individuals in a massive telemarketing operation, located in the United States and abroad, targeted the elderly and disabled with direct mail, television advertisements, and other forms of advertising to induce them to contact offshore boiler-rooms staffed by individuals who “up-sold” the elderly and disabled on unnecessary medical equipment and prescriptions. According to the indictment, the software platform that the defendants allegedly operated was actually a conduit for these telemarketers to coordinate the payment of illegal kickbacks and bribes to telemedicine companies to obtain doctors’ orders for Medicare beneficiaries. The defendants allegedly programmed the software platform to generate false and fraudulent orders for telemedicine practitioners to sign and obstruct Medicare investigations by concealing that the interactions with beneficiaries had occurred remotely using telemedicine. The program-generated orders falsified certifications that the telemedicine doctors had examined the beneficiaries in person, and falsified diagnostic testing that Medicare required for brace orders. After the original CEO sold the company in a corporate acquisition, the new corporate leadership allegedly chose to continue the pre-existing fraud scheme.
In another telemedicine fraud case, in the Eastern District of Washington, a licensed physician was charged for signing more than 2800 fraudulent orders for orthotic braces, including for patients whose limbs had already been amputated. As alleged, the physician took less than 40 seconds to review and sign each order.
The cases announced build on earlier telemedicine enforcement actions involving over $10.1 billion in fraud. The April 2019 Operation Brace Yourself Telemedicine and Durable Medical Equipment Takedown—which originated in the District of South Carolina—alone resulted in an estimated cost avoidance of more than $1.9 billion in the amount Medicare paid for orthotic braces in the 20 months following that enforcement action, preserving the Medicare trust fund for necessary medical care.
“Patients trust federal health care programs to provide high quality care. When bad actors steal from these programs, they hurt patients,” said Inspector General Christi A. Grimm of the Department of Health and Human Services Office of the Inspector General (HHS-OIG). “HHS-OIG is dedicated to protecting federal health care programs and putting patients first. Thank you to our law enforcement partners, especially the Medicaid Fraud Control Units, that participated in this effort.”
Pharmaceutical Fraud
The enforcement action also included charges against 10 defendants in connection with the submission of over $370 million in fraudulent claims submitted in connection with prescription drugs. In one case announced, the owner and corporate officer of a pharmaceutical wholesale distribution company was charged for an alleged $150 million fraud scheme in which the company purchased illegally diverted prescription HIV medication, and then marketed and resold the medication by falsely representing that the company acquired it through legitimate channels. The defendant allegedly purchased the diverted medication at a substantial discount from individuals who obtained the drugs primarily through illegal “buyback” schemes in which they paid HIV patients cash for their expensive HIV medication and repackaged those pills for resale. To cover up their scheme, the defendant and others falsified labeling and product tracing documentation to make it appear legitimate. Pharmacies purchased the misbranded medications, dispensed them to patients, and billed them to health care benefit programs, all while the defendants reaped substantial illegal profits.
In a related case, on June 15, an individual in the Southern District of Florida was sentenced to 15 years in prison for his role in this nationwide scheme. According to court documents, the defendant illegally acquired large quantities of prescription drugs from patients for whom the drugs had been prescribed but not yet consumed. The defendant and others then repackaged the drugs and sold them to wholesale companies. In some instances, the medication that the defendant sold contained the wrong medication, broken pills, and even pebbles, leading to complaints by pharmacies. The defendant used his share of the proceeds to purchase luxury goods, including a $280,000 Lamborghini, a $220,000 Mercedes, and three boats.
Opioid Distribution and Other Types of Health Care Fraud
The charges also targeted over $150 million in false billings submitted in connection with other types of health care fraud, including the illegal distribution of opioids and clinical laboratory testing fraud. This enforcement action includes charges against 24 physicians and other licensed medical professionals who lined their own pockets, including doctors who allegedly put their patients at risk by illegally providing them with opioids they did not need. The charges also include cases where healthcare companies, physicians, and other providers paid cash kickbacks to patient recruiters and beneficiaries in return for patient information, so that the providers could submit fraudulent bills for Medicare reimbursement.
“At DEA, we are committed to protecting the safety and health of all Americans,” said DEA Administrator Anne Milgram. “When individuals divert addictive opioid medications for personal gain, they are knowingly putting Americans at risk, all too often causing harm and even death. DEA is committed to taking decisive action to hold accountable anyone who participates in these dangerous schemes.”
“CHAMPVA provides community health care to family members of our nation’s disabled or deceased veterans, and the defendants’ alleged criminal actions resulted in a multibillion-dollar fraud scheme that puts those benefits at risk and pilfers significant taxpayer funds,” said Inspector General Michael J. Missal of the Department of Veterans Affairs Office of Inspector General (VA-OIG). “The VA-OIG’s continued oversight of VA’s multiple healthcare programs, including CHAMPVA, is one of the agency’s highest priorities. We thank our outstanding law enforcement partners for their efforts in this investigation.”
The Center for Program Integrity of the Centers for Medicare & Medicaid Services (CPI/CMS) separately announced that it took adverse administrative actions in the last six months against 90 medical providers for their alleged involvement in health care fraud.
Principal Assistant Deputy Chief Jacob Foster and Acting Assistant Chief Rebecca Yuan of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section led and coordinated this enforcement action. The Health Care Fraud Unit’s Strike Forces in Brooklyn, Dallas, Detroit, the Gulf Coast, Houston, Los Angeles, Miami, Newark, and Tampa; the Health Care Fraud Unit’s National Rapid Response Strike Force; the U.S. Attorneys’ Offices for the Middle District of Florida, Southern District of Florida, Southern District of Georgia, District of Idaho, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of New Jersey, Eastern District of New York, Southern District of Ohio, District of South Carolina, Southern District of Texas, Eastern District of Washington, and Eastern District of Wisconsin; and the State Attorney Generals’ Offices for Indiana, New York, and Pennsylvania are prosecuting these cases, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of cases involved in this enforcement action are available on the Department’s website at www.justice.gov/criminal-fraud/health-care-fraud-unit/2023-national-hcf-court-documents.
In addition to the FBI, HHS-OIG, DEA, and CMS/CPI, State Medicaid Fraud Control Units, HSI, FDA, IRS-CI, VA-OIG, USPS-OIG, FDIC-OIG, OPM-OIG, Amtrak-OIG, and other federal and state law enforcement agencies participated in the operation.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
The Fraud Section uses the Victim Notification System to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas, and for further information for victims about new federal charges in connection with the HIV scheme, please visit www.justice.gov/criminal-vns/case/united-states-v-steven-diamantstein.
A complaint, information, or indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Sheriff and Three Men Charged in Bribery Scheme Involving Purchase of Law-Enforcement Badges and CredentialsRead the Press Release
An indictment was unsealed today in the Western District of Virginia charging the Sheriff of Culpeper County, Virginia, and three Virginia men with a conspiracy to exchange bribes for law enforcement badges and credentials.
According to court documents, from at least April 2019, Culpeper County Sheriff Scott Howard Jenkins, 51, of Culpeper, accepted cash bribes and bribes in the form of campaign contributions totaling at least $72,500 from Rick Tariq Rahim, 55, of Great Falls; Fredric Gumbinner, 64, of Fairfax; James Metcalf, 60, of Manassas; and at least five others, including two FBI undercover agents. In return, Jenkins appointed each of the bribe payors as auxiliary deputy sheriffs, a sworn law-enforcement position, and issued them Culpeper County Sheriff’s Office badges and identification cards. Jenkins told or caused others to tell the bribe payors that those law-enforcement credentials authorized them to carry concealed firearms in all 50 states without obtaining a permit. In addition, Jenkins assisted Rahim in gaining approval for a petition to restore his firearms rights filed in Culpeper County Circuit Court that falsely stated that Rahim resided in Culpeper County.
Jenkins is charged with one count of conspiracy, four counts of honest-services mail and wire fraud, and eight counts of federal programs bribery. Rahim is charged with one count of conspiracy, three counts of honest-services mail and wire fraud, and three counts of federal programs bribery. Gumbinner is charged with one count of conspiracy, one count of honest-services wire fraud, and two counts of federal programs bribery. Metcalf is charged with one count of conspiracy, one count of honest-services wire fraud, and two counts of federal programs bribery.
If convicted, each defendant faces a maximum penalty of five years in prison on the conspiracy count, a maximum penalty of 20 years in prison on each of the honest-services mail and wire fraud counts, and a maximum penalty of 10 years in prison on each of the federal programs bribery counts. The defendants are scheduled to make their initial court appearances today in the Western District of Virginia.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Christopher Kavanaugh for the Western District of Virginia, and Special Agent in Charge Stanley M. Meador of the FBI Richmond Field Office made the announcement.
The FBI Richmond Field Office, Charlottesville Resident Agency is investigating the case.
Trial Attorney Celia Choy of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Heather Carlton and Melanie Smith for the Western District of Virginia are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Seattle-area man arrested for string of pot shop armed robberiesRead the Press Release
Seattle – An 18-year-old Seattle-area man, who was living at a SeaTac hotel, remains in federal custody for robbery, with a detention hearing next week, announced Acting U.S. Attorney Tessa M. Gorman. Caiden James Charlton was arrested Tuesday June 27, 2023, in connection with three armed robberies in May and June 2023. Charlton had his initial appearance yesterday and will appear for a detention hearing on Monday, July 3, 2023.
According to records filed in the case, Charlton is charged with the May 30, 2023, robbery of Herb’s House on NW 65th Street in Seattle; the May 30, 2023, robbery of Hashtag Cannabis on Nickerson Street in Seattle; and the June 10, 2023, robbery of Oz Cannabis on Stone Way in Seattle. In each of the robberies, surveillance video shows clothing, tattoos, and jewelry that has been linked to Charlton. Victims of the robberies noted distinctive face tattoos around Charlton’s eyes that were not concealed by his mask.
In each of the robberies, one of two intruders displayed a handgun and ordered the dispensary staff to open safes or empty the till. In addition to money, the suspects stole a large amount of marijuana products. In some cases, the safes at the dispensaries could not be opened due to time locks used to discourage robberies. In one case, the robbers stole the safe by detaching it from the floor.
The robbery crew would run to a getaway car after the robberies – two of the cars had been reported stolen.
According to the criminal complaint, on June 5, 2023, Charlton was arrested by Tacoma Police for being a felon in possession of a firearm. Photographs from the arrest indicate Charlton wearing clothing and jewelry associated with the robberies of the marijuana dispensaries. Charlton was released on bail June 9, 2023 – one day before the third robbery charged federally. Charlton may face
federal firearms charges based on the Tacoma arrest, as well as eight guns found in his possession at the time of his federal arrest on June 27, 2023.
Law enforcement continues to investigate other robberies potentially linked to Charlton and his accomplices. This includes robberies in West Seattle, Edmonds, and Bellevue. In all, law enforcement believes as many as ten marijuana dispensary robberies may be linked to Charlton and a juvenile arrested in Bellevue following the robbery of a dispensary there. The juvenile was located based on a currency tracker that was included in the cash he stole from the Bellevue dispensary.
“Mr. Charlton’s prior arrest for similar crimes did little to dissuade his continuing criminal activities.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Fortunately, no one was killed during his violent robbery spree. Taking him off the streets may have saved lives of employees and patrons of the businesses he targeted and highlights the priority given to these types of violent crime. I applaud the efforts of our agents and partners, including the Seattle Police Department, King County Sheriff’s Department, and others on the Safe Streets Task Force, to safely take him into custody.”
The charges contained in the criminal complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI, the Seattle Police Department, and the Bellevue Police Department, as well as the King County and Snohomish County Sheriffs’ Offices.
The case is being prosecuted by Assistant United States Attorneys Erin H. Becker and Elyne Vaught.
charlton_complaint.pdfRound Rock Pastor Pleads Guilty to Child Pornography ChargeRead the Press Release
AUSTIN, Texas – A Georgetown man pleaded guilty in a federal court in Austin Tuesday to an enhanced charge of possession of child pornography.
According to court documents, David Lloyd Walther, 57, knowingly searched for, downloaded, distributed and possessed child sexual abuse material, including child pornography—some of which depicted prepubescent minors—using BitTorrent, a peer-to-peer file sharing network. During a search of Walther’s home and vehicle in November 2022, two large computer hard drives were located and found to contain more than 100,000 images and more than 5,000 videos of child sexual abuse material. At the time of his arrest, Walther was the pastor of Faith Baptist Church in Round Rock.
Walther faces a maximum penalty of 20 years in prison and a maximum fine of $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Oliver E. Rich, Jr. for the FBI San Antonio Division made the announcement.
The FBI San Antonio Division's Child Exploitation and Human Trafficking Task Force, with invaluable assistance from the Round Rock Police Department, is investigating the case. The FBI also appreciates the assistance received by the Williamson County Sheriff's Office and the Williamson County Children's Advocacy Center.
Assistant U.S. Attorney Matthew Devlin is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Repeat Sex Offender Sentenced to Nearly 20 Years in Federal Prison for Distributing Videos of Child Sexual Abuse Using Social MediaRead the Press Release
INDIANAPOLIS- Kenneth Woods, age 35, of Indianapolis, has been sentenced to 235 months in federal prison after pleading guilty to distributing and receiving images and videos of child sexual abuse over the internet, while having been previously convicted in Florida of similar conduct.
According to court documents, in 2021, Facebook and Snapchat accounts later found to be associated with Woods came to the attention of IMPD for uploading videos depicting child sexual abuse. A search of Woods’s residence in Indianapolis yielded a cell phone that contained still more videos of child sexual abuse. Still further investigation eventually uncovered an email account used by Woods to send videos of child sexual abuse to a specific individual, with whom Woods also exchanged messages about sex acts he desired to perform with that individual’s minor daughter. The child sex abuse materials distributed and possessed by Woods included depictions of the sexual abuse of infants and toddlers or other depictions of violence.
Woods was previously convicted in 2021 in Citrus County, Florida, of two felony charges related to obscene communications with a minor and possessing a photograph depicting child sexual abuse.
Zachary A. Myers, United States Attorney for the Southern District of Indiana, Randal Taylor, Chief of Indianapolis Metropolitan Police Department, and Jeffrey R. Adams, Special Agent in Charge of the U. S. Secret Service’s Indianapolis Field Office made the announcement.
“Criminals with a sexual interest in children continue to use social media platforms and other internet technologies to seek out and disseminate vile images of horrific abuses,” said U.S. Attorney Myers. “Repeat offenders like this defendant demonstrate their unwillingness or inability to stop committing these crimes, exacerbating the trauma already inflicted on child victims. The sentence imposed today demonstrates the commitment of federal law enforcement and IMPD to make our children safer by ensuring that these dangerous repeat offenders are in prison where they belong.”
IMPD, with assistance from the U.S. Secret Service, investigated this case. The sentence was imposed by U.S. District Court Chief Judge Tanya Walton Pratt. Chief Judge Pratt also ordered that Marshall be supervised by the U.S. Probation Office for 10 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Kristina Korobov, who prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Recidivist Defendant Pleads Guilty in Connection with Million-Dollar Fraud Scheme Targeting Senior Executives of Investment FirmsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JONATHAN GHERTLER pled guilty today before U.S. District Judge Edgardo Ramos in connection with his scheme to impersonate senior leaders of two Manhattan-based investment firms, resulting in over $1 million in losses to their portfolio companies, and to impersonating a partner of a global law firm on telephone calls with federal law enforcement agents who were investigating the scheme.
U.S. Attorney Damian Williams said: “Jonathan Ghertler defrauded companies of over $1 million by impersonating some of the most prominent figures in finance. But law enforcement got wind of his scheme. Again. And when Ghertler saw the writing on the wall, he brazenly impersonated a partner of a global law firm and tried to convince federal agents and an Assistant United States Attorney to drop their investigation. His efforts failed and his fraud was unraveled, as have all of Ghertler’s past frauds, thanks to the persistent work of the prosecutors of this Office and our law enforcement partners.”
According to the allegations in the Indictment and Complaint:
From at least in or about December 2021, up to and including at least June 2022, GHERTLER impersonated the General Counsel of a global private equity firm (the “Private Equity Firm”). In doing so, GHERTLER fraudulently caused the Private Equity Firm’s portfolio companies to pay at least $200,000 to fund a non-existent internal investigation into alleged links between senior employees of the Private Equity Firm and Jeffrey Epstein, the deceased financier who, before he died on or about August 10, 2019, had been charged in the Southern District of New York with sex trafficking of minors and conspiring to commit sex trafficking of minors.
In addition, from at least May 2021, up to and including February 2023, GHERTLER impersonated the founder of an investment firm (the “Investment Firm”), directing the Chief Executive Officer (the “CEO”) of one of the Investment Firm’s portfolio companies (the “IF Portfolio Company”) to make at least $865,000 in payments to fund a non-existent internal investigation related to the founder’s alleged relationship with Epstein. In recent weeks, GHERTLER, posing as the founder of the Investment Firm, had discussed with the CEO the possibility of making a large investment into a restaurant chain owned by another investment firm.
On or about February 7, 2023, after learning from the CEO that federal investigators were investigating a potentially fraudulent payment made by the Investment Firm, GHERTLER, posing as a partner (the “Partner”) at a global law firm, spoke on the phone with Special Agents with the Federal Bureau of Investigation (“FBI”). GHERTLER told the federal agents that the IF Portfolio Company had chosen not to report the fraud because it had been “made whole” by the fraudster.
On or about February 10, 2023, GHERTLER, impersonating the Partner, spoke again with federal agents. GHERTLER said, after “consult[ing]” with “associates and lower-level partners” at the Global Law Firm who “used to work” at the United States Attorney’s Office for the Southern District of New York, “our position is that, uh, the law states that, umm, you know, if the money was paid back prior to, uh, the crime being, uh, discovered, uh, it’s not a crime.” GHERTLER added that his “client [i.e., the founder of the Investment Firm] has a lot of other issues he is dealing with right now, so this is one he really doesn’t need to deal with.”
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GHERTLER, 60, of Orlando, Florida, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of making false statements, which carries a maximum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Sentencing has been scheduled for August 9, 2023, at 11 a.m.
Mr. Williams praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Adam Sowlati is in charge of the prosecution.
Port Angeles, Washington, man indicted for sexual abuse of a minorRead the Press Release
Seattle – A 34–year-old resident of Port Angeles, Washington, was indicted late yesterday by a federal grand jury for two counts of sexual abuse of a minor, announced Acting U.S. Attorney Tessa M. Gorman. Briceson R. Standley has been detained since his arrest on a criminal complaint on June 15, 2023.
According to records filed in the case, in April and June 2022, Standley met up with a 15-year-old youth who he had communicated with on a social media app. In the first encounter, Standley sexually molested the youth. In the second encounter, Standley allegedly carried a machete and a pocketknife. Standley allegedly raped the youth. The 15-year-old ceased any communication with Standley and ultimately reported the conduct to a health care provider.
An investigation by the U.S. Park Service determined that the alleged assaults took place on a portion of Olympic National Park land. Federal courts have jurisdiction over such land.
Sexual abuse of a minor is punishable by up to 15 years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Investigative Services Branch of the National Park Service and Port Angeles Police Department.
The case is being prosecuted by Assistant United States Attorney Kristine L. Foerster.
Ponte Vedra Beach Man Sentenced to More Than Six Years in Federal Prison for Distributing Child Sexual Abuse Videos over the InternetRead the Press Release
Jacksonville, Florida – Chief United States District Judge Timothy J. Corrigan has sentenced George Thomas Griffiths, Jr. (43, Ponte Vedra Beach) to six years and three months in federal prison for distributing videos and images depicting young children being sexually abused. Griffiths was also ordered to serve a 15-year term of supervised release, forfeit his smartphone, and register as a sex offender. Griffiths had pleaded guilty on May 27, 2022.
According to court documents, an FBI task force officer began an undercover investigation using a particular social media application (“app”) to identify individuals attempting to sexually exploit children using the internet. Between February 3 and February 20, 2020, an app user named “ban_me_again,” who was subsequently identified as Griffiths, uploaded several videos depicting children being sexually abused to a public chat room on the app. Meanwhile, the St. Johns County Sheriff’s Office (SJSO) received information from the National Center for Missing and Exploited Children that the same app had reported that this same user had uploaded videos depicting child sexual abuse materials during this same time period. Further investigation revealed that Griffiths had distributed these videos over the internet from his home and from his place of employment. At that time, Griffiths worked at a health care facility in Jacksonville as an x-ray technologist.
On November 19, 2020, SJSO detectives and personnel, together with agents from Homeland Security Investigations (HSI), executed a search warrant at Griffiths’s residence and seized a smartphone used by Griffiths. During an interview, Griffiths stated, among other things, that he had used the particular app to talk to individuals over the internet. He also stated that it was “possible” that he had exchanged pictures and videos on the app, and that these materials “possibly” included “bestiality” involving both adults and children. When asked how many times he distributed child sexual abuse materials, Griffiths first responded, “I don’t know” and then clarified, “more than one or two.”
Subsequent examination of Griffiths’s phone revealed that it contained at least 2,000 images and at least 10 videos depicting children being sexually abused, including infants and toddler-aged children.
This case was investigated by the St. Johns County Sheriff’s Office, the Federal Bureau of Investigation, and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney D. Rodney Brown. Assistant United States Attorney Mai Tran handled the forfeiture of Griffith’s electronic device.
It is another 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.
Political Consultant Sentenced to 24 Years in Prison for Role in Murder for Hire SchemeRead the Press Release
NEWARK, N.J. – A New Jersey-based political consultant was sentenced today to 288 months in prison for hiring two men to kill a longtime associate who had worked for him on various political campaigns, U.S. Attorney Philip R. Sellinger announced.
Sean Caddle, 45, of Hamburg, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit murder for hire. Judge Vazquez imposed the sentence today in Newark federal court.
“Sean Caddle unleashed two violent hitmen to stab Michael Galdieri to death and set fire to his apartment,” U.S. Attorney Sellinger said. “Despite being lifelong friends, Caddle paid to have Galdieri murdered because he thought that his own business interests were at risk. Today’s sentence is a just punishment for a heinous crime and provides some measure of justice for the victim and his family. I want to credit the dedicated agents of the Federal Bureau of Investigation and the members of my Office who doggedly pursued this cold case murder investigation for years and have now brought to justice all three individuals responsible for the death of Michael Galdieri.”
“Regardless of any dispute or argument a person has with someone, hiring hitmen to solve it is not only cold-hearted and despicable, but also against the law,” FBI Special Agent in Charge James E. Dennehy said. “Caddle now faces justice for paying to having his former colleague and friend murdered. He will spend years in federal prison contemplating his actions, a small price to pay when another man lost his life.”
According to documents filed in this case and statements made in court:
In April of 2014, Caddle solicited George Bratsenis of Monroe, Connecticut, to commit a murder on Caddle’s behalf in exchange for thousands of dollars. Bratsenis recruited Bomani Africa a longtime accomplice from Philadelphia, to join the plot. After Bratsenis confirmed his and Africa’s interest in the job, Caddle told Bratsenis that the target was a longtime associate who had worked for Caddle on various political campaigns.
On May 22, 2014, Bratsenis and Africa traveled from out of state to the victim’s apartment in Jersey City. After entering the apartment, Bratsenis and Africa stabbed the victim to death and then set fire to the victim’s apartment. After Caddle learned that the victim had been murdered, he met Bratsenis in the parking lot of a diner in Elizabeth, New Jersey. Caddle paid Bratsenis thousands of dollars in exchange for the murder, and Bratsenis shared a portion of those proceeds with Africa.
In addition to the prison term, Judge Vazquez sentenced Caddle to five years of supervised release.
Bratsenis was sentenced on March 29, 2023, to 16 years in prison; Africa was sentenced on Feb. 23, 2023, to 20 years in prison.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy, with the investigation leading to today’s sentencing. He also thanked the Hudson County Prosecutor’s Office and IRS-Criminal Investigation for their assistance.
The government is represented by Executive Assistant U.S. Attorney Lee M. Cortes Jr., Sean Farrell, Chief, New York Office, Department of Justice, Antitrust Division.
Placer County Man Indicted for Sexual Exploitation Offenses Against a MinorRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Ryan Davidek, 39, of Lincoln, charging him with transportation of a minor with intent to engage in criminal sexual activity and travel with intent to engage in illicit sexual conduct, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in 2016, Davidek began a sexual relationship with a 14-year-old victim who he had met online. Over the course of several years, Davidek booked hotel rooms and traveled across state lines, as well as transported the victim from another state to the Eastern District of California, to commit the charged crimes.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Alexis Klein is prosecuting the case.
If convicted of transportation of a minor with intent to engage in criminal sexual activity, Davidek faces a mandatory minimum of 10 years in prison and a maximum of life in prison and a $250,000 fine, and if convicted of travel with intent to engage in illicit sexual conduct, he faces up to 30 years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Pittsburgh Resident Indicted on Charges of Assault of a Federal Employee, Use of a Firearm During a Crime of Violence, and Felon in Possession of a Firearm and AmmunitionRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, PA, has been indicted by a federal grand jury in Pittsburgh on charges of forcible assault of a federal employee, use of a firearm during and in relation to a crime of violence, and felon in possession of a firearm and ammunition, United States Attorney Eric G. Olshan announced today.
The three-count Indictment named Martinel Humphries, age 28, as the sole defendant.
According to the Indictment, on January 5, 2023, Humphries used a firearm in assaulting a United States Postal Service employee. Because of his prior felony convictions, including a prior conviction for being a felon in possession of a firearm and ammunition, Humphries was not permitted to have a firearm.
The law provides for a ten year minimum sentence on the charge that Humphries used a firearm during and in relation to a crime of violence, and a maximum total sentence of not more than 20 years in prison on the forcible assault charge and not more than 15 years in prison on the felon in possession charge, a fine of not more than $250,000 on each count, a term of supervised release of not more than five years on the forcible assault and use of a firearm counts and not more than three years on the felon in possession count, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney William B. Guappone is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation leading to the Indictment in this case, with assistance from the Pittsburgh Police Department and Ross Township Police Department.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
PillPack by Amazon to Pay $300,000 to Settle Alleged Controlled Substances Act ViolationsRead the Press Release
CONCORD – U.S. Attorney Jane E. Young announces today that PillPack, LLC dba PillPack by Amazon Pharmacy (PillPack) will pay $300,000 to resolve allegations that it violated the Controlled Substances Act (CSA) by failing to keep accurate records of controlled substances.
In 2020, the Drug Enforcement Administration (DEA) began investigating PillPack for potential violations of the CSA, and in October of 2020 conducted an audit of PillPack, which revealed recordkeeping deficiencies. Specifically, DEA investigators found that PillPack’s records did not accurately reflect its inventory for ten Schedule III-V substances: Codeine #4, Tramadol, Zolpidem, Butalbital, Alprazolam, Acetaminophen with Codeine #3, Clonazepam, Lorazepam Carisoprodol, and Lyrica.
“PillPack’s failure to maintain accurate records risked the diversion of drugs that are often abused in our communities,” said U.S. Attorney Jane E. Young. “As a pharmacy, they have a responsibility to safeguard these controlled substances, and their penalty for failing to do so, serves as a warning to other entities handling medications improperly.”
“The DEA is committed to ensuring that all registrants are in compliance with the required regulations, which are enforceable through the Controlled Substances Act,” said Special Agent in Charge Brian D. Boyle. “When a pharmacy like PillPack fails to comply, that increases the potential for diversion and puts the safety of the public in jeopardy. DEA pledges to work with our law enforcement and regulatory partners to ensure these rules are followed.”
The CSA deters the illegal distribution, possession, dispensing, and improper use of controlled substances. The CSA requires the accurate inventorying, tracking and recordkeeping of each controlled substances to prevent misuse.
The Drug Enforcement Administration led the investigation leading to the settlement agreement. The case was handled by Assistant U.S. Attorney Raphael Katz.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Phoenix Man Sentenced to 40 Months for Alien Smuggling and Firearm OffenseRead the Press Release
TUCSON, Ariz. – John Edward Crenshaw, 40, of Phoenix, Arizona was sentenced yesterday by United States District Judge Rosemary Márquez to 40 months in prison, followed by three years of supervised release. On January 19, 2023, Crenshaw pleaded guilty to Conspiracy to Transport Illegal Aliens for Profit and Possession of a Firearm by a Prohibited Person.
On March 3, 2022, Crenshaw was encountered at a United States Border Patrol checkpoint, which he approached while erratically driving a Ford Fusion. After he stopped, Border Patrol agents discovered that he was transporting five passengers, who were determined to be undocumented noncitizens that Crenshaw was smuggling further into the country. Four of the passengers were in the rear of the vehicle, which did not have seats or seat belts. Crenshaw was in possession of a knife and a loaded .380-caliber pistol. He was later determined to be a convicted felon who could not legally possess a firearm.
The Federal Bureau of Investigation and the United States Border Patrol conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: 22-CR-00595-TUC-RM (JR)
RELEASE NUMBER: 2023-102_Crenshaw# # #
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.Philadelphia Business Owner Charged with Fraud and Tax EvasionRead the Press Release
A federal grand jury in Philadelphia returned a superseding indictment today charging a Pennsylvania man with seven counts of wire fraud, two counts of mail fraud, and three counts of tax evasion. He was previously charged with the wire and mail fraud counts in an indictment unsealed on Jan. 3, 2023.
According to the superseding indictment, John Griffin of Philadelphia was the principal and founder of Second Story Farming, Inc., doing business as Metropolis Farms, a business purportedly involved with developing and manufacturing sustainable vertical farming technologies. Between approximately 2016 to 2018, Griffin allegedly made misrepresentations, promising to provide two entities with the equipment necessary to create indoor vertical farms. In total, both entities allegedly paid Griffin $760,000 to purchase the equipment, yet Griffin allegedly used only a fraction of that money to purchase equipment. The remainder was allegedly used to operate Griffin’s own business and pay his personal expenses.
The superseding indictment further alleges that from 2016 through 2018, Griffin received at least $420,000 in gross income from his work for Second Story Farming and did not report it on his federal tax returns, and allegedly did not to file a personal tax return since at least 2014. Griffin allegedly attempted to evade his income taxes by making personal withdrawals from business bank accounts and transferring funds from business bank accounts to his wife and entities he controlled.
If convicted, Griffin faces a maximum penalty of 20 years in prison for each wire and mail fraud count and 5 years in prison for each of tax evasion count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jacqueline C. Romero of the Eastern District of Pennsylvania made the announcement.
IRS-Criminal Investigation, the United States Postal Inspection Service, and the FBI are investigating the case.
Trial Attorney Catriona Coppler of the Tax Division and Assistant U.S. Attorney David Ignall of the Eastern District of Pennsylvania are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Pensacola Sex Offender Found Guilty of New Child Pornography OffensesRead the Press Release
PENSACOLA, FLORIDA – Frank P. Knight, 59, of Pensacola, Florida, was found guilty by a federal jury for receiving and possessing images and videos of child pornography. The guilty verdict returned yesterday afternoon, at the conclusion of a three-day trial, was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“Protecting innocent children from sexual predators remains one of our highest priorities,” said U.S. Attorney Coody. “I commend our law enforcement partners and prosecutors who work diligently to identify these predators and bring them to justice so that they no longer have the opportunity to exploit any child again. Due to their efforts, our community is safer, and this repeat offender is exactly where he belongs – back behind bars.”
Between October 1, 2018, and October 12, 2022, Knight received, and attempted to receive, material containing child pornography. Also, between September 1, 2021, and October 12, 2022, Knight possessed, and attempted to possess, material containing child pornography. Knight is a previously convicted federal sex offender for similar crimes spanning 2002 – 2009. He served over six years in federal prison for those crimes but was released in 2015.
“This convicted felon once again showed no respect for the law by possessing child sexual abuse materials while on probation,” said HSI Tallahassee Assistant Special Agent in Charge Nicholas G. Ingegno. “Thanks to the vigilance of the North Florida Internet Crimes Against Children Task Force, the U.S. Probations Office, and the Florida Department of Law Enforcement, this repeat offender will now be behind bars, making our communities safer for our children.”
On October 5, 2022, one of the United States Probation Officers who was supervising Knight conducted a random check at Knight’s place of business and discovered electronic devices that had not been reported by Knight to his supervising officer. On October 11, 2022, with the assistance of the Florida Department of Law Enforcement, the United States Probation Office seized additional electronic devices at Knight’s location that he also had not reported. At that time, a Smart TV was located in Knight’s personal living area within the business. All the accounts on the Smart TV were logged in under Knight’s name and email address, and the browser history revealed child pornography websites had been recently accessed. The electronic devices that were seized were analyzed by forensics examiners with the Department of Homeland Security, and numerous images and videos of child pornography were located on multiple seized devices. The devices all contained Knight’s log-in information, email accounts, credit card accounts, photographs, and other identifying information belonging to Knight. The devices also contained browser history searches and link files for child pornography dating back to 2018.
Sentencing is currently set for September 25, 2023, at 9:00 a.m., at the United States Courthouse in Pensacola before the Honorable United States District Judge M. Casey Rodgers. Based on his prior child pornography convictions, Knight faces a minimum mandatory sentence of 15 years in federal prison, with a maximum of 40 years.
This case was investigated by the United States Department of Homeland Security and the Florida Department of Law Enforcement and the North Florida Internet Crimes Against Children (ICAC) Task Force. Assistant United States Attorneys David L. Goldberg and Jessica S. Etherton prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice and led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), it marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Pecos Gun Thieves Sentenced for Selling Stolen FirearmsRead the Press Release
ALPINE, Texas – Two Pecos men were sentenced in a federal court in Pecos Tuesday for crimes related to the theft and subsequent selling of firearms.
According to court documents, Nathaniel Elijah Saenz, 19, and Raul Ivan Duarte, 31, were part of a local ring of criminals that were breaking into vehicles and stealing firearms from vehicles. After stealing the firearms, they would sell them to various buyers. Texas Department of Public Safety special agents and Pecos Police Department investigators conducted multiple undercover purchases throughout the investigation. On March 8, 2022, DPS and the Pecos Police Department executed search warrants and arrested Saenz and Duarte.
Saenz was sentenced Tuesday to 63 months in prison for one count of sale of a stolen firearm. Duarte was sentenced to 30 months for one count of possession of a firearm not registered in the National Firearms Registration and Transfer Record.
“This case is a clear reminder of our commitment to collaborate with our law enforcement partners at every level to stop the illicit selling of stolen firearms and to hold firearm traffickers responsible,” said U.S. Attorney Jaime Esparza for the Western District of Texas.
A third defendant, Juaquin Osbaldo Munoz, 20, was sentenced on May 22 to 57 months in prison for one count of sale of a stolen firearm. Munoz has been in federal custody since his arrest on April 10, 2022.
The Texas Department of Public Safety Criminal Investigations Division and Pecos Police Department investigated the case.
Assistant U.S. Attorney Matthew Ellis prosecuted the case.
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Papillion Man Sentenced to 132 Months for Distributing Child PornographyRead the Press Release
United States Attorney Steven Russell announced that Jason Stoolman, 51, of Papillion, Nebraska, was sentenced today in federal court in Omaha, Nebraska, for distributing child pornography. United States District Judge Brian C. Buescher sentenced Stoolman to 132 months of imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Stoolman will begin a five-year term of supervised release. Stoolman must also pay $18,000 in restitution.
On September 20, 2020, Stoolman distributed child pornography online via Kik. Between February of 2021 and April 2021, Stoolman uploaded child pornography to Kik. On March 23, 2021, law enforcement executed a search warrant at Stoolman’s Omaha residence. Officers obtained Stoolman’s iPad and located approximately 1,421 files of child pornography involving prepubescent children on it. Stoolman was knowingly in possession of this child pornography.
This case was investigated by the Federal Bureau of Investigation and was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Owasso Man Sentenced for Receipt of Child PornographyRead the Press Release
TULSA, Okla. – A man who was caught downloading and viewing child pornography was sentenced in federal court, announced U.S. Attorney Clint Johnson.
Gregory Allen Kirk, 63, of Owasso was sentenced to 66 months in prison followed by 10 years of supervised release for Receipt of Child Pornography. He was further ordered to pay $21,500 in restitution to several victims and $10,100 in fines and penalties.
“My office is committed to the prosecution of those who possess, distribute, or produce child pornography,” said U.S. Attorney Clinton Johnson. “I am thankful for the thorough work of our law enforcement partners for bringing these cases out of the shadows and into federal court.”
According to the plea agreement, Kirk admitted that from about May 2018 through January 2020, he received at least 600 images of child pornography on his computer, which consisted of visual depictions of minor children, under 12 years old, engaged in sexually explicit conduct, including prepubescent children engaged in sexual acts.
The Federal Bureau of Investigation conducted the investigation.
Assistant U.S. Attorneys Cymetra Williams and Vani Singhal prosecuted the case.
The case is part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Oklahoman convicted of kidnapping estranged wife by gunpointRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old resident of Yukon, Oklahoma, has been found guilty of kidnapping and brandishing a firearm during the crime, announced U.S. Attorney Alamdar S. Hamdani.
The federal jury sitting in Corpus Christi deliberated for approximately three hours before convicting Joshua Anthony Wallin on both counts following a four-day trial.
“Joshua Wallin’s maniacal decision to kidnap and torture his estranged wife and one-year-old son and later point a gun at the baby’s head caused two days of terror from places in Oklahoma to Texas,” said Hamdani. “Thanks to the heroic efforts of first responders, the child and mother were able to survive their frightening nightmare, and now Wallin will pay the price for his actions.”
In the early morning hours of June 23, 2021, Wallin confronted his estranged wife at her home in Crescent, Oklahoma, holding her at gunpoint and subjecting her to a two-day ordeal. The jury heard how he took her and their one-year-old son on an arduous journey that culminated at a Corpus Christi restaurant.
The victim provided testimony describing her fear and how she was sexually assaulted before they left Oklahoma and again along the way. She also told the jury that at one point during the trip, Wallin said “at the end of the day someone is going to die.”
As they traveled though Texas, Wallin was aware of law enforcement, called 911 and began a series of conversations with them. He repeatedly made threatening statements about killing his wife and child, telling authorities they should not get too close. His driving became erratic, and law enforcement was able to use a tire deflation device to flatten a rear tire. He eventually crashed into a local restaurant.
They eventually arrived in Corpus Christi, at which time Wallin grabbed his son from the mother’s arms and carried him into the restaurant while pointing a gun at his son’s head. Upon entry, Wallin fired one shot into the ceiling and ordered the occupants out of the restaurant.
A two-hour stand-off then ensued. Wallin did speak with negotiators, but became increasingly agitated. As authorities gained entry, Wallin shot himself. The child was unharmed. Wallin recovered from his self-inflicted wound.
At trial, testimony revealed Wallin had performed internet searches on his phone the day before the kidnapping in an attempt to locate his estranged wife and to learn how people react when kidnapped.
The defense attempted to convince the jury that Wallin and the victim were on a vacation when things went horribly wrong. The jury did not believe those claims and found Wallin guilty as charged.
U.S. District Judge David S. Morales presided over the trial and set sentencing for Sept. 20. At that time, Wallin faces up to life in prison for the kidnapping as well as another seven years for brandishing the firearm which must be served consecutively.
Wallin has been and will remain in federal custody pending that hearing.
The Corpus Christi Police Department and FBI conducted the investigation. Assistant U.S. Attorneys Michael Hess and Ashley Martin prosecuted the case.
Nigerian Man Pleads Guilty in Manhattan Federal Court to Participating in Business Email Compromise ScamsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that CHIBUNDU JOSEPH ANUEBUNWA, a citizen of Nigeria who was previously extradited from the United Kingdom, pled guilty today before U.S. District Judge Paul A. Crotty to wire fraud conspiracy in connection with his participation in fraudulent business email compromise scams that targeted thousands of victims around the world, including in the United States. In connection with the same conspiracy as ANUEBUNWA, co-defendant DAVID CHUKWUNEKE ADINDU was previously sentenced to 41 months in prison, and co-defendant ONYEKACHI EMMANUEL OPARA was previously extradited from South Africa and sentenced to 60 months in prison.
U.S. Attorney Damian Williams said: “As he has now admitted, Chibundu Joseph Anuebunwa participated in a conspiracy to trick thousands of business employees located all around the world into wiring millions of dollars to overseas bank accounts by sending bogus emails that appeared to be legitimate. This case should serve as a reminder to cyber criminals located around the globe that we will track them down and hold them responsible.”
According to publicly filed court documents and statements made at public court proceedings:
Between 2014 and 2016, ANUEBUNWA, OPARA, and ADINDU participated in business email compromise scams (“BEC scams”) targeting thousands of victims around the world, including in the United States. As part of the BEC scams, emails were sent to employees of various companies directing that funds be transferred to specified bank accounts. The emails purported to be from supervisors at those companies or third-party vendors that did business with those companies. The emails, however, were not legitimate. Rather, they were either from email accounts with a domain name that was very similar to a legitimate domain name, or the metadata in the emails had been modified so that the emails appeared as if they were from legitimate email addresses. After victims complied with the fraudulent wiring instructions, the transferred funds were quickly withdrawn or moved into different bank accounts. In total, the BEC scams attempted to defraud the victims of millions of dollars.
ANUEBUNWA and others carried out BEC scams by exchanging information regarding: (i) bank accounts used for receiving funds from victims; (ii) email accounts used for communicating with victims; (iii) scripts for requesting wire transfers from victims; and (iv) lists of names and email addresses for contacting and impersonating potential victims.
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ANUEBUNWA, 40, a citizen of Nigeria, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum penalty of 20 years in prison. ANUEBUNWA is scheduled to be sentenced by Judge Crotty on October 2, 2023, at 3:30 p.m.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation. Mr. Williams also thanked United Kingdom authorities and the Yahoo E-Crime Investigations Team for their assistance in the investigation. The U.S. Department of Justice’s Office of International Affairs provided significant assistance in securing the defendant’s extradition from the United Kingdom.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Andrew K. Chan is in charge of the prosecution.
Nicaraguan sentenced for smuggling conspiracy resulting in deathRead the Press Release
LAREDO, Texas – A 49-year-old Nicaraguan citizen illegally in the United States has been ordered to federal prison for his role in a conspiracy to transport undocumented aliens, announced U.S. Attorney Alamdar S. Hamdani.
Arling Antonio Gutierrez-Garcia pleaded guilty March 10.
Today, U.S. District Judge Diana Saldaña ordered him to serve 72 months in federal prison. Not a U.S. citizen, Gutierrez-Garcia is expected to face removal proceedings following his imprisonment. At the hearing, the court considered the conditions inside the trailer, law enforcement efforts in the heat and prior statements four of the aliens had made. In handing down the sentence, the court noted Gutierrez-Garcia was lucky that more persons did not die. She also added that he could have stayed and assisted the aliens not able to exit and offered assistance to those in distress, instead of running away into the brush.
“Transporting dozens of human beings in a vinyl-covered all metal trailer in the South Texas summer heat demonstrates the callousness and indifference of smugglers to human life,” said Hamdani. “The sweltering heat that built up in this vehicle which was designed not for people, but for hauling sand, rock and other materials maximized the potential for injury and the eventual and tragic death of one of the victims. Gutierrez-Garcia will now pay the price for his inhumane crime.”
On June 6, 2022, Gutierrez-Garcia drove a semi-tractor pulling a belly-dump trailer with 63 citizens from Mexico and Guatemala. The metal trailer was covered with a vinyl tarp, thereby eliminating air circulation and increasing temperatures which led to the aliens’ distress.
Gutierrez-Garcia noticed them jumping out the trailer from a tear in the tarp they had made. He then stopped the semi-tractor in west Webb County on a private ranch road where law enforcement saw him standing by the cab.
Law enforcement and medical personnel provided assistance to the individuals located in the trailer and brush. One alien was found at the bottom of the trailer’s pit and pronounced dead at the scene.
Authorities apprehended Gutierrez-Garcia in the brush, at which time he claimed he was being transported with the others. However, the investigation revealed he was the driver of the vehicle.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility.
Homeland Security Investigations conducted the investigation with the assistance of Border Patrol, Sheriff’s Offices in Webb and Dimmit Counties, Webb County District Attorney’s Office, Texas Department of Public Safety and Texas Highway Patrol. Assistant U.S. Attorney Homero Ramirez prosecuted the case.
New York Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
BOSTON – A New York man pleaded guilty yesterday in federal court in Springfield to drug trafficking charges involving fentanyl.
Chanty Reynoso Vasquez, 28, of Bronx, N.Y., pleaded guilty to possession with intent to distribute 400 grams or more of fentanyl. U.S. District Judge Mark G. Mastroianni scheduled sentencing for Nov. 20, 2023. Reynoso Vasquez was indicted by a grand jury in May 2022.
On March 30, 2022, in Springfield, Reynoso Vasquez possessed 400 grams or more fentanyl intended for distribution.
The charge of possession with intent to distribute 400 grams or more of fentanyl provides for a sentence of up to life in prison, up to six years of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration in New England; and Springfield Police Commissioner Cheryl Clapprood made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Levy’s Springfield Branch Office is prosecuting the case.
New Orleans Man Sentenced for Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – EDDIE HARRIS, age 39, of New Orleans, Louisiana, was sentenced on June 28, 2023 by U.S. District Judge Jane T. Milazzo to 92 months imprisonment followed by three years of supervised release, along with a mandatory $200 special assessment fee, for possession with intent to distribute cocaine and being a felon in possession of a firearm, announced U.S. Attorney Duane A. Evans.
According to court documents, HARRIS admitted to possessing a Smith & Wesson .40 caliber semi-automatic weapon after being previously convicted of several state felony offenses, including possession with intent to distribute a controlled substance and felon in possession of a firearm. HARRIS also admitted to possessing 25 baggies of cocaine with the intent to distribute them.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. Assistant United States Attorney David Berman of the Violent Crimes Unit handled the prosecution.
New Britain Man Sentenced to 42 Months in Federal Prison for Firearm OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that LUIS JAVIER LOPEZ, 24, of New Britain, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 42 months of imprisonment, followed by three years of supervised release for unlawfully possessing a firearm and ammunition.
According to court documents and statements made in court, on February 26, 2022, Hartford Police attempted to stop a car that Lopez was driving, and which was reported to be involved in two shots fired incidents in the weeks prior. After Lopez fled, police deployed tire deflation devices during the pursuit to disable Lopez’s car. Lopez continued to drive his disabled car for several miles before he crashed into a vehicle stopped at a red light on the Berlin Turnpike in Wethersfield. Lopez ran from his car and was arrested in the vicinity of a motel on Arrow Road.
At the time of his arrest, Lopez possessed a high-capacity magazine loaded with 16 rounds of 9mm ammunition. Officers also located a 9mm firearm on the other side of a fence where Lopez had been running, and two spent 9mm shell casings by Lopez’s car. Analysis of the firearm and recovered shell casings via the National Integrated Ballistic Information Network (NIBIN) connected them to each other, and to the two shots fired incidents involving his car.
Lopez was previously convicted in state court of possession with intent to sell a controlled substance. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Lopez has been detained since his arrest. On February 16, 2023, he pleaded guilty to possession of ammunition by a felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Hartford Police Department. This case was prosecuted by Assistant U.S. Attorneys Stephanie T. Levick and Angel M. Krull through the Justice’s Department’s Project Safe Neighborhoods (PSN) program.
PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Navajo Woman Pleads Guilty to Involuntary Manslaughter in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Mariah Chapo pled guilty to involuntary manslaughter. Chapo, 26, an enrolled member of Navajo Nation, will remain in custody pending sentencing
According to court records, on the night of February 11, 2022, Chapo was driving her vehicle at a high rate of speed while intoxicated with her eight-month-old son unsecured in the backseat. Chapo failed to assess a lazy turn and rolled the vehicle she was driving up a dirt embankment. Her son was ejected from the vehicle through an open window and died at the scene. Chapo’s blood alcohol content registered at .12 and .11 and first responders found an empty 375-milliliter bottle of Importers Vodka in the vehicle.
At sentencing, Chapo faces up to eight years in prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department. Assistant United States Attorney Matthew J. McGinley is prosecuting the case.
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Muscatine Man Sentenced to 11 Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
DAVENPORT, IA – A Muscatine man was sentenced on June 23, 2023 to 136 months in federal prison for conspiracy to distribute methamphetamine.
According to court documents, Mackenzie Jacob Belnap, 31, was identified by law enforcement as a distributor of “ice” methamphetamine in eastern Iowa. In May 2022, a package linked to Belnap was intercepted by federal authorities. The package contained nearly a pound of methamphetamine and was shipped to Iowa from California. In all, Belnap was responsible for more than 4,500 grams of ice methamphetamine.
After completing his term of imprisonment, Belnap will be required to serve five years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the United States Postal Inspection Service, the Drug Enforcement Administration, and the Muscatine County Drug Task Force.
Multiple Defendants Charged in Federal Methamphetamine Conspiracy and Related Drug Trafficking OffensesRead the Press Release
Bowling Green, KY – A federal grand jury in Bowling Green, Kentucky, returned a six-count indictment on April 12, 2023, charging six defendants with conspiring to possess with the intent to distribute methamphetamine and seven total defendants with methamphetamine trafficking related offenses.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Director Tommy Loving of the Bowling Green/Warren County Appalachia High Intensity Drug Trafficking Area (AHIDTA) Drug Task Force made the announcement.
According to the indictment, the following six defendants were each charged with conspiracy to possess with the intent to distribute over 50 grams of methamphetamine between June 1, 2022, and March 7, 2023:
Leroy B. Riggsbee, 38, of Bowling Green, KY,
Shantaja S. Hutchins, 46, of Bowling Green, KY,
Jeffery W. Glass, 50, of Bowling Green, KY,
Tyler P. Houchens, 28, of Glasgow, KY,
Brandon T. Trent, 24, of Bowling Green, KY, and
Joseph A. Raby, 40, of Bowling Green, KY.
Each defendant also faces additional charges. Riggsbee and Glass are charged with aiding and abetting each other in the distribution of 50 grams or more of methamphetamine on June 28, 2022. Riggsbee is charged with distributing 50 grams or more of methamphetamine on August 24, 2022. Riggsbee and Houchens are charged with aiding and abetting each other in the possession with the intent to distribute 50 grams or more of methamphetamine on September 22, 2022. Trent, Raby, Riggsbee, and Hutchins are all charged with aiding and abetting each other in the possession with the intent to distribute 50 grams or more of methamphetamine on January 4, 2023.
Antoine Bass, 40, of Bowling Green, who was not charged in the conspiracy, was charged with Hutchins for aiding and abetting each other in the distribution of 50 grams or more of a mixture or substance containing methamphetamine on March 7, 2023.
Riggsbee, Hutchins, Glass, Houchens, Trent, and Raby all face a mandatory minimum sentence of 10 years and a maximum sentence of life in prison. Bass faces a mandatory minimum sentence of 5 years and a maximum sentence of 40 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
The ATF Bowling Green Field Office and the Bowling Green/Warren County Appalachia High Intensity Drug Trafficking Area (AHIDTA) Drug Task Force are investigating the case.
Assistant U.S. Attorney Mark J. Yurchisin II, of the U.S. Attorney’s Bowling Green Branch Office, is prosecuting this case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Multi-Convicted Felon Pleads Guilty to Possessing FirearmRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Terrence Thompson (42, Sarasota) has pleaded guilty to possessing a firearm as a convicted felon. Thompson faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been set.
According to court documents, on December 9, 2022, deputies from the Sarasota County Sheriff’s Office (“SCSO”) received a 911 call about a disturbance involving Thompson at a residence in the area of Lalani Boulevard and Bee Ridge Road in Sarasota. The SCSO Aviation Unit tracked Thompson from the residence and with its infrared camera recorded Thompson stopping his vehicle and throwing a small pistol-shaped object in the bushes near Crescent Ridge Road and Bee Ridge Road. SCSO deputies searched the area and recovered the loaded Bersa Thunder 380 pistol that Thompson had discarded.
Thompson was arrested a short time later. During an interview with ATF agents, Thompson admitted to being a convicted felon and possessing the pistol. He further admitted to discarding the pistol when the helicopter spotted him. As a convicted felon Thompson is prohibited from possessing firearms or ammunition under federal law.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Sarasota County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney David W.A. Chee.
Movement Mortgage to Pay $23.7 Million to Resolve Allegations it Caused the Submission of False Claims to Government Mortgage ProgramsRead the Press Release
ALBANY, NEW YORK – Movement Mortgage, LLC, has agreed to pay the United States $23.75 million to resolve allegations that it violated the False Claims Act by failing to comply with material program requirements when it originated and underwrote mortgages insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA), United States Attorney Carla B. Freedman announced today. Movement Mortgage is headquartered in Indian Land, South Carolina, with loans underwritten across the United States, including in upstate New York.
“Lenders participating in mortgage programs backed by taxpayers must follow rules designed to protect both program integrity and homeowners,” said United States Attorney Freedman. “Today’s settlement holds Movement Mortgage accountable for its past violations, while acknowledging that it has taken steps to strengthen its internal controls to ensure future compliance with FHA and VA requirements.”
Participants in FHA insurance and VA guarantee programs, like Movement Mortgage, have the authority to originate and underwrite mortgages without first having the government review the loans for compliance with the agency’s underwriting and origination requirements. If an FHA insured or VA guaranteed loan defaults, the holder of the loan may submit a claim to the United States for certain losses. Lenders are therefore required to follow FHA and VA rules designed to ensure that only mortgages that meet key credit and underwriting criteria are insured or guaranteed by the government.
The settlement announced today resolves allegations that Movement Mortgage failed to comply with material program rules that require lenders to maintain quality control programs to prevent and correct underwriting deficiencies, self-report any materially deficient loans that they identify, and ensure that the underwriting process is free from conflicts of interest.
As part of the settlement, Movement Mortgage admitted that it certified for FHA mortgage insurance and VA home loan guarantees a material percentage of loans that did not meet applicable requirements and, therefore, were not eligible under those programs, despite inaccurately representing to HUD and the VA that such loans complied with applicable program requirements. Movement Mortgage also acknowledged that HUD and the VA would not have insured or guaranteed the loans but for its submission of false certifications. Movement Mortgage further admitted that it failed to adhere to HUD and the VA’s applicable self-reporting requirements.
The covered conduct stretched back as far as July 2008, including a period of rapid expansion by the company. As Movement Mortgage took significant measures to stop the practices, both before and after being notified of the United States’ investigation, it received credit for doing so in connection with the settlement.
“HUD is committed to protecting public funds by ensuring that lenders follow the rules for origination of FHA-insured mortgages,” said Damon Smith, General Counsel for HUD. “Through this settlement, Movement Mortgage is accepting responsibility for its past actions by fully repaying the FHA insurance fund for its losses on defaulted loans that should not have been issued.”
“The integrity of the FHA loan program is essential to helping hard working citizens realize the American dream of homeownership,” said Special Agent in Charge Mark T. Kaminsky with HUD OIG Office of Investigation. “This case demonstrates HUD OIG’s enduring commitment to working with the Northern District of New York USAO to investigate and hold accountable those who seek to jeopardize this program and the health and stability of our nation’s housing market.”
“VA’s Home Loan Guaranty program provides valuable assistance to our nation’s veterans when purchasing or repairing their homes, and vendors must adhere to critical quality standards in order to maintain the integrity of the program,” said Special Agent in Charge Christopher F. Algieri with the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “The VA OIG appreciates the work of the U.S. Attorney’s Office and our law enforcement partners throughout this important investigation.”
This investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act, which allow private persons, known as “relators,” to file civil actions on behalf of the government and share in any recovery. The relators in this case, two former employees of Movement Mortgage, will receive a total of $4,037,566 of the settlement proceeds. The case is docketed with the U.S. District Court for the Northern District of New York under number 18-cv-848.
This matter was investigated by the U.S. Attorney’s Office for the Northern District of New York, the Department of Justice’s Civil Division, HUD-OIG, HUD, and VA OIG. The United States was represented by Assistant U.S. Attorney John Hoggan, with significant assistance from Adam E. Cearley, Deputy Assistant General Counsel in HUD’s Office of Program Enforcement.