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16 June 2023
Houstonian sent to prison after hiding meth in speaker boxRead the Press Release
HOUSTON – A 32-year-old man has been sent to prison following his conviction for conspiracy to possess with the intent to distribute meth, announced U.S. Attorney Alamdar S. Hamdani.
Martin Alejandro Carreno pleaded guilty Nov. 8, 2022.
Today, U.S. District Judge Ewing Werlein ordered Carreno to serve 120 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional testimony about the impact meth has had on individuals, families and communities and noted that deadly drugs lead to disaster.
In March 2022, authorities learned Carreno was selling meth by the kilogram in the Houston area and had recently received a large quanity. Law enforcement conducted a search of his residence and discovered more than nine kilograms of meth concealed inside a speaker box.
The total weight was approximately 9.15 kilograms meth with a 99% purity level. It had an estimated street value of $500,000.
Carreno will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of Precinct 3 Harris County Constables Office. 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 on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorney Stuart A. Burns prosecuted the case.
Hialeah Man Pleads Guilty to Access Device Fraud and Aggravated Identity TheftRead the Press Release
Orlando, FL - United States Attorney Roger B. Handberg announces that Homberto Machin Morejon (38, Hialeah) has pleaded guilty to possessing 15 or more counterfeit and unauthorized access devices, and aggravated identity theft.
Morejon faces up to 10 years in federal prison for the access devices offense and a consecutive minimum mandatory sentence of 2 years for the aggravated identity theft offense. His sentencing hearing is scheduled for September 12, 2023.
According to court documents, on November 20, 2019, U.S. Secret Service (USSS) agents and members of the USSS Financial Crimes Task Force observed Morejon at a gas station in Cocoa standing between fuel pumps and holding what appeared to be a stack of white cards while periodically shuffling through them. Morejon then passed the cards between the fuel pumps to other individuals who had arrived at the gas station. A search incident to arrest of Morejon yielded 36 gift cards with magnetic stripes on the rear of each card. Subsequent investigation revealed that the gift cards had been re-encoded with credit and or debit card information of other persons.
The following day, a search warrant was executed on the vehicle Morejon was seen operating at the gas station. Sixty-four additional gift cards with magnetic stripes were seized along with a laptop. A forensic examination determined that the laptop contained the names of approximately 1,350 individuals and their credit or debit card account numbers.
On January 31, 2020, USSS agents, along with officers from the USSS Financial Crimes Task Force, executed a search warrant in Orlando at Morejon’s residence at the time. The agents seized, amongst other items, a laptop, 17 gift cards with magnetic stripes encoded with other persons’ credit card and or debit card numbers, several thumb drives, multiple phones, an external hard drive, a diesel fuel hose, several reproduced gas pump security stickers, and multiple ledgers containing suspected diesel fuel sales transactions. A forensic examination of one of the phones yielded multiple images of gas meters depicting amounts of gasoline purchased, images of gas pumps, and gas stations. A forensic audit of the external hard drive revealed the names of approximately 690 individuals and their credit or debit card account numbers. A forensic examination of one of the thumb drives produced the names of approximately 250 individuals and their credit or debit card account numbers. In total, Morejon was found to be in possession of more than 2,000 victims’ names and their credit or debit card account numbers.
This case was investigated by the United States Secret Service, the Orange County Sheriff’s Office, and the Brevard County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Terry B. Livanos.
Health Care Information Technology Contractor Agrees to Pay More Than $1.7 Million to Resolve False Claims Act Allegations for Charging Unallowable Costs to the National Institutes of HealthRead the Press Release
Baltimore, Maryland – Maryland-based Capital Technology Information Services, Inc., (“CTIS”), a health care information technology company, has agreed to pay the United States $1,712,949.44 to resolve federal False Claims Act allegations that it billed the National Institutes of Health (“NIH”) for costs that were unallowable for reimbursement.
The civil settlement was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
“Federal contractors are required to bill only for costs that are properly reimbursable and not for purely personal expenses unrelated to the contract work,” said United States Attorney for the District of Maryland Erek L. Barron. “This settlement represents our continuing commitment to holding companies accountable who do not follow the rules for federal contracting and grants and take advantage of taxpayer funded programs.”
“Federal grantees and contractors have a responsibility to ensure all charges they submit are for allowable expenses,” said Maureen Dixon, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG remains committed to protecting valuable taxpayer dollars, and the programs they fund, from fraud, waste, and abuse.”
The core business of CTIS involved health data analytics and the provision of related website infrastructure to its customers to capture, store and use health and biomedical data. CTIS received a five-year grant from NIH, through the National Institute of Minority Health and Health Disparities (“NIMHD”), to establish a consortium of educational and for-profit organizations to study the impact of health delivery systems in a selected minority community, to understand possible disparities, and find innovative ways to eliminate the identified disparities. CTIS was also awarded an NIH Cancer Therapy Evaluation Program (“CTEP”) Task Order cost-reimbursable contract to provide information technology and telecom solutions in support of NIH for CTEP. Under the contract and the grant, NIH would reimburse CTIS only for allowable expenses incurred during the performance period of the contract or grant.
The settlement resolves allegations that between July 1, 2013, through June 30, 2018, CTIS knowingly billed the NIH for unallowable costs on both the NIH grant and the CTEP Task Order, including for such personal expenses as the costs of luxury vehicles, residential mortgage payments, housekeeping services, the cost of a wedding, and other unreasonable and/or non-contract-related work or for work not actually performed. The costs were falsely represented as incurred specifically in support of the work performed on the NIH grant and CTEP Task Order and as necessary to the overall operation of the business of CTIS.
The civil settlement also resolves lawsuits filed under the whistleblower provision of the False Claims Act in United States ex rel. Sherette Rhodes, et. al., v. Capital Technology Information Services, Inc., Civ. No. GJH-17-0609 and in United States ex rel. Connie Ezerski v. CTIS, Inc., et. al., Civ. No. GJH-18-0486 (D.Md). The False Claims Act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the United States’ recovery. As part of the civil resolution, two of the Relators will receive $171,294.94, collectively, and the other will receive $171,294.94.The claims resolved by this settlement are allegations. The settlement is not an admission of liability by CTIS, nor a concession by the United States that its claims are not well founded. CTIS cooperated throughout the ensuing federal investigation conducted by the United States Attorney’s Office for the District of Maryland.
United States Attorney Erek L. Barron commended the DHHS-OIG for its work in this investigation. Mr. Barron thanked Assistant U.S. Attorney Tarra DeShields who handled this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Grand Jury - June 2023Read the Press Release
United States Attorney Steven Russell announced the federal Grand Jury for the District of Nebraska has returned 10 unsealed Indictments charging 12 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Ciprian Amariutei, a/k/a Steffano Ferrari, a/k/a Gianluca Ferrer, age 37, of Omaha, Nebraska, and Mona Maria Tataru, a/k/a Maria Murino, age 32, of Los Angeles, California, are charged in a four-count Indictment. Count I charges Amariutei and Tataru with illegal possession, production, or trafficking in device making equipment on or about April 23, 2023 and continuing to on or about April 25, 2023. The penalty if convicted is 15 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count II charges Amariutei and Tataru with possession of fifteen or more devices which are counterfeit and unauthorized on or about April 23, 2023 and continuing to on or about April 25, 2023. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count III charges Amariutei with aggravated identity theft on or about April 23, 2023 and continuing to on or about April 25, 2023. The penalty if convicted is an additional 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment. Count IV charges Tataru with aggravated identity theft on or about April 23, 2023 and continuing to on or about April 25, 2023. The penalty if convicted is an additional 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency and property seized.
* Latjor Gony, age 28, of Omaha, Nebraska, is charged in a two-count Indictment. Count I charges Gony with possession of a firearm by a prohibited person on or about July 21, 2020 and continuing to on or about December 28, 2021. The penalty if convicted is 15 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count II charges Gony with illegal possession of a machine gun on or about July 21, 2020 and continuing to on or about December 28, 2021. The maximum possible penalty if convicted is not less than 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Victor Aaron Gonzales, age 37, of Lincoln, Nebraska, is charged in a two-count Indictment. Count I charges Gonzales with conspiracy to distribute and possession with intent to distribute 50 grams or more of methamphetamine (actual), 500 grams or more of methamphetamine (mixture), a detectable amount of cocaine and a detectable amount of marijuana on or about February 1, 2022 and continuing to on or about November 17, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five-years and up to life term of supervised release, and a $100 special assessment. Count II charges Gonzales with possession with intent to distribute 50 grams or more of methamphetamine (mixture) on or about November 16, 2022. The maximum possible penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five-years and up to life term of supervised release consecutive, and a $100 special assessment.
* Dexter D. Hall, age 36, is charged with a prohibited person in possession of ammunition on or about February 8, 2023. The penalty if convicted is 15 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Thomas Janes, age 29, of Omaha, Nebraska, is charged with possession of child pornography on or about March 9, 2023. The penalty if convicted is not less than 10 years’ and up to 20 years’ imprisonment, a $250,000 fine, not less than five years and up to life term of supervised release, and a $5,100 special assessment.
* Salome Juarez-Castro, age 24, is charged with illegal reentry after deportation on or about May 22, 2023. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Miguel Angel Lopez Aguirre, age 30, is charged with illegal reentry of a removed alien after an aggravated felony conviction on or about April 19, 2023. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Brian E. Nielsen, age 46, of Oakland, Nebraska, is charged with possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about February 24, 2023. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to life term of supervised release, and a $100 special assessment.
* David Sikes, age 68, of Alma, Nebraska, is charged with harboring or concealing a person from arrest on or about January 17, 2018 and continuing to on or about January 14, 2022. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Alphonso Johnson, Jr., age 45, of Lincoln, Nebraska, and Stacey Vanarsdale, age 36, of Lincoln, Nebraska, are charged in a two-count Indictment. Count I charges Johnson and Vanarsdale with conspiracy to distribute 50 grams or more of methamphetamine (actual), on or about July 9, 2022 and continuing to on or about August 10, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to life term of supervised release, and a $100 special assessment. Count II charges Johnson and Vanarsdale with possession with intent to distribute 50 grams or more of methamphetamine (actual) and 50 grams or more of methamphetamine (mixture) on or about August 10, 2022. The maximum possible penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to life term of supervised release consecutive, and a $100 special assessment.
Fort Myers Couple Arrested and Charged with More Than $2 Million COVID Relief FraudRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces the arrest and unsealing of a criminal complaint charging Timothy Craig Jolloff (46, Fort Myers) and Lisa Ann Jolloff (56, Fort Myers) with one count of conspiracy to commit money laundering and one count of illegal monetary transactions. Timothy Jolloff is also charged with one count of wire fraud. If convicted, each faces a maximum penalty of 10 years in federal prison on each of the charges. Timothy Jolloff faces an additional maximum penalty of 20 years in federal prison for the wire fraud offense.
According to the complaint, between April and May 2020, Timothy Jolloff submitted false and fraudulent Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) loan applications to the Small Business Administration (SBA), as well as a PPP approved lender. In PPP loan applications and loan documents, Timothy Jolloff falsely represented and certified that PPP funds would be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments. Moreover, in loan documents signed and submitted by Timothy Jolloff for EIDL loans, he mispresented that EIDL proceeds would be used solely as working capital and to alleviate economic injury.
Timothy Jolloff’s false and fraudulent representations caused the SBA and a PPP lender to approve and fund 11 EIDLs and 6 PPP loans, totaling approximately $2.14 million. Timothy Jolloff and his wife, Lisa Jolloff, then conspired to unlawfully use PPP and EIDL funds to purchase three pontoon boats for more than $300,000 total, real estate in Indiana, home furnishings, outdoor kitchens for their homes, a 2020 Polaris UTV, as well as jewelry, and two dogs. The couple also fraudulently used more than $600,000 in EIDL funds to purchase a furniture business in Indiana and a landscaping business in Sarasota, which had no connection to the businesses for which the couple had obtained COVID relief funds.
A criminal complaint is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Trent Reichling.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint at www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.
Download Criminal ComplaintFormer federal correctional officer sentenced to prison for Paycheck Protection Program fraudRead the Press Release
ATLANTA - Harrescia Hopkins has been sentenced to five months in prison for fraudulently obtaining two Paycheck Protection Program loans while employed as a correctional officer by the Federal Bureau of Prisons. Hopkins obtained the loans in the name of a business that did not exist and used the money on a cruise and other vacations, as well as restaurants and a new SUV.
“While employed in a position of trust, Hopkins lied to steal emergency money intended for businesses suffering during the COVID-19 pandemic,” said U.S. Attorney Ryan K. Buchanan. “We will vigorously prosecute people who exploited these programs particularly when such fraud is committed by government employees and officials.”
“Hopkins’s fraud scheme took money earmarked for those who were legitimately struggling to make ends meet during the height of the COVID-19 pandemic, and she greedily used those funds for personal entertainment and luxury purchases. This sentencing should send a clear message to fraudsters everywhere: you will be brought to justice,” said James F. Boyersmith, Special Agent in Charge of the Department of Justice Office of the Inspector General Miami Field Office.
“OIG will identify and bring to justice wrongdoers who sought personal gain by theft of taxpayers’ funds,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “I want to thank the U.S. Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in or about March 2020 that was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief that the CARES Act provided was the authorization of up to $349 billion in forgivable loans to small businesses for payroll, mortgage interest, rent/lease, and utilities through a program referred to as the Paycheck Protection Program (“PPP”). Congress has since authorized additional PPP funding.
Hopkins, while a Federal Bureau of Prisons correctional officer, applied for two PPP loans for $19,100 each in August 2020 and January 2021. The PPP loan applications were purportedly to help a business named Hopkins Towing and Storage, which she claimed had a gross income of $100,525 in 2019. In reality, Hopkins Towing and Storage was not a real and functioning business. Hopkins also obtained a $4,000 loan from the United States Small Business Administration’s COVID-19 Economic Injury Disaster Loan program.
Hopkins caused the loan proceeds to be deposited into her personal checking account. Hopkins then spent the money on personal expenses – including a Caribbean cruise and other travel, a new Chevrolet Blazer, landscaping for her house, restaurant meals, and retail goods.
Harrescia Hopkins, 34, of Conley, Georgia, was sentenced on June 8, 2023, by U.S. District Judge Sarah E. Geraghty to five months in prison to be followed by two years of supervised release. As part of her sentence, Hopkins was ordered to repay all three loans in full in the amount of $46,004.04. Hopkins pleaded guilty to wire fraud on December 20, 2022.
This case was investigated by the Department of Justice’s Office of Inspector General, and the Small Business Administration’s Office of Inspector General.
Assistant U.S. Attorney Garrett L. Bradford, Chief of the Public Integrity & Civil Rights Section, prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former FedEx Driver from Middleborough Pleads Guilty to Selling Firearms He Stole from Packages on His TruckRead the Press Release
BOSTON – A Middleborough man pleaded guilty today in federal court in Boston to charges stemming from his stealing and selling three firearms from FedEx packages he was responsible for delivering.
Frank P. O’Toole, 40, pleaded guilty to two counts of possession or sale of a stolen firearm. U.S. District Court Judge Angel Kelley scheduled sentencing for Sept. 26, 2023. O’Toole was arrested and charged by criminal complaint in August 2022 and subsequently indicted by a federal grand jury in September 2022.
O’Toole previously worked as a FedEx delivery truck driver out of a FedEx facility in Middleborough. Between October 2021 and June 2022, O’Toole stole three packages he was responsible for delivering, each containing a firearm intended for a Federal Firearms Licensee. On Aug. 9, 2022 and Aug. 12, 2022, O’Toole sold the three firearms to an undercover agent during two separate controlled purchases.
The charge of possession of a stolen firearm provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives; and Middleborough Police Chief Joseph Perkins made the announcement today. Assistant U.S. Attorney Elianna J. Nuzum of Levy’s Major Crimes Unit is prosecuting the case.
Former Army Reservist Sentenced for Conspiracy to Commit Theft of Government FundsRead the Press Release
NEW ORLEANS – Former United States Army reservist LYNEA SANDERS was sentenced on June 15, 2023, to 3 years of probation, 150 hours of community service, and a $100 mandatory special assessment fee, announced U.S. Attorney Duane A. Evans. Pursuant to the Mandatory Victim Restitution Act, Chief Judge Nannette Jolivette Brown further imposed restitution of $21,780.18, which SANDERS has already paid. SANDERS previously pled guilty to conspiracy to commit theft of government funds, having stolen $21,780.18 from the United States Department of the Army by claiming reimbursement for the performance of military funeral honors ceremonies that never happened.
The National Defense Authorization Act of 2000 authorizes military funeral honors for active-duty soldiers, retirees, and veterans. At a family’s request, eligible persons can receive military funeral honors, including the folding and presenting of the United States flag and the playing of “Taps.”
U.S. Attorney Evans praised the work of the United States Army Criminal Investigation Command, including Special Agents Dustin Stevens, John Hiniker, Jeffrey Riedeman, and Denny Richter. The prosecution was handled by Assistant United States Attorney Andre J. Lagarde of the Public Integrity Unit.
Former Army Reservist Sentenced for Conspiracy to Commit Theft of Government FundsRead the Press Release
NEW ORLEANS – Former United States Army reservist CHANTELLE DAVIS was sentenced on June 15, 2023, to 2 years of probation, 100 hours of community service, and a $100 mandatory special assessment fee, announced U.S. Attorney Duane A. Evans. Pursuant to the Mandatory Victim Restitution Act, Chief Judge Nannette Jolivette Brown further imposed restitution of $8,399.65, which DAVIS has already paid. DAVIS previously pled guilty to conspiracy to commit theft of government funds, having stolen $8,399.65 from the United States Department of the Army by claiming reimbursement for the performance of military funeral honors ceremonies that never happened.
The National Defense Authorization Act of 2000 authorizes military funeral honors for active duty soldiers, retirees, and veterans. At a family’s request, eligible persons can receive military funeral honors, including the folding and presenting of the United States flag and the playing of “Taps.”
U.S. Attorney Evans praised the work of the United States Army Criminal Investigation Command, including Special Agents Dustin Stevens, John Hiniker, Jeffrey Riedeman, and Denny Richter. The prosecution was handled by Assistant United States Attorney Andre J. Lagarde of the Public Integrity Unit.
Former Alaska Advanced Nurse Practitioner Sentenced to 30 Years for Illegally Prescribing Millions of Opioids Causing Five DeathsRead the Press Release
ANCHORAGE, ALASKA—Former Advanced Nurse Practitioner Jessica Joyce Spayd (52) was sentenced in U.S. District Court yesterday to 30 years (360 months) imprisonment for illegally prescribing and dispensing opioids outside the scope of legitimate medical practice that resulted in the deaths of five people between 2014 and 2019. United States District Judge Joshua M. Kindred handed down the sentence.
A jury convicted Spayd on October 27, 2022, of 10 crimes including five counts of illegal drug distribution that resulted in death and one count of maintaining a drug involved premises. She was also ordered to forfeit $117,000 in unlawful proceeds.
The parties presented 51 witnesses during the four-week trial. Government witnesses included pharmacists who refused to fill prescriptions from Spayd, law enforcement agents and officers who investigated the deaths, Spayd’s employees, individuals who received pills from Spayd, medical experts, every Medical Examiner in Alaska (each of whom performed autopsies on different overdose victims), and family members of the victims.
Evidence presented during the trial showed that Spayd prescribed and dispensed 4.5 million dosages of opioids in just over five years including fentanyl, methadone, oxycodone, and hydromorphone. Many times she combined those prescriptions with prescriptions for dangerous other drugs like valium and muscle relaxers, known as the “holy trinity,” greatly increasing the chances of overdose death. She wrote these prescriptions with little to no medical justification or treatment plan; minimal, if any, tests or physical examinations; and little, if any, considerations of non-opioid treatment. Many of her patients were vulnerable and suffering from chronic pain, addiction, and mental illness, yet Spayd disregarded their medical histories, risk factors, past overdoses, symptoms, and pleas to reduce or taper their doses. She also ignored warnings from patients’ family members, pharmacists, and other medical providers, and defied thousands of warning letters sent by insurance companies about the dangers of her practices.
In imposing the sentence, Judge Kindred emphasized the trust that society places in medical practitioners like Spayd and remarked that “when [practitioners] fail in their responsibilities, [they] can do far greater harm than the drug dealer on the street corner.” He also acknowledged that Spayd “knew she was in effect killing people, and she just kept doing it,” for nearly two decades.
“This is the deadliest drug case in this district’s history. And disturbingly, the five deaths the Defendant was convicted of at trial are just the tip of the iceberg” because “Spayd may have caused or contributed to the deaths of dozens: 20 total confirmed drug overdoses and many others suspected. She was a serial killer with a ‘poison pen,’” Assistant U.S. Attorney Ryan D. Tansey wrote in a sentencing memorandum filed with the court. “[H]er conduct was far more insidious” than that of a street level dealer “because she sanctioned (and supplied) lethal levels of drugs for her patients, day after day, year after year, under the shroud of a prescribing license, assuring them that it was safe and necessary. In the process, she abused her authority and violated her oath as a medical professional, prescribing higher doses per patient than any other prescriber in Alaska during the charging period.”
“Medical practitioners who abuse their positions of trust by supplying millions of opioids for no legitimate medical purpose wreak havoc on our community,” said U.S. Attorney S. Lane Tucker. “Let this sentence send a clear message to any other medical practitioners considering similar conduct in Alaska: our office and law enforcement partners will work tirelessly to investigate and prosecute these cases, and you will be punished severely.”
“Ms. Spayd betrayed the trust of her profession, those under her care, and her community by prescribing a staggering amount of opioids along with other powerful narcotics,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division. “This lengthy sentence emphasizes the seriousness of Ms. Spayd’s actions and should be seen as deterrent to those who aim to bring harm to our communities.”
“Spayd callously abused her dispensing authority, while fueling the opioid epidemic and poisoning our communities in the process,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “This investigation and subsequent prosecution was about seeking justice for the victims and their families, and holding Spayd accountable for her destructive and lethal crimes. With Spayd’s abuse linked to a significant loss of life, this sentence will undoubtedly have a direct public safety impact on our community.”
Assistant U.S. Attorneys Ryan Tansey and Michael Heyman prosecuted the case.
The Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation (FBI) conducted the investigation leading to the charges in this case, with invaluable assistance from members of the North Slope Borough Police Department, the Alaska Health Care Fraud Task Force, the U.S. Department of Health and Human Services-Office of the Inspector General, Internal Revenue Service (IRS), U.S. Bureau of Land Management (BLM), Office of Law Enforcement and Security, Department of Natural Resources (DNR), Alaska State Parks Rangers, Alaska State Troopers, Anchorage Police Department, Alaska Medicaid Fraud Control Unit, and the State of Alaska Division of Insurance.
The Alaska Health Care Fraud Task Force (AHCFTF) is a partnership of local, state, federal, and private agencies focused on the investigation of health care fraud, waste, and abuse in Alaska or affecting Alaskan interests.
Florida Man Sentenced for Securities Fraud Scheme Worth over $9 MillionRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jeffrey D. Martin, 64, of Orlando, FL, was sentenced to 78 months’ imprisonment and five years’ supervised release and fined $50,000 by United States District Court Judge Gerald Pappert for his participation in a conspiracy to artificially inflate the price of penny stock shares and sell them fraudulently to the public. Martin was also ordered to forfeit $3.5 million in ill-gotten gains.
In November 2020, Martin was charged for manipulating the stock of Mainstream Entertainment, Inc., now known as Volt Solar Systems, Inc., Resort Savers, Inc., Axiom Corp., Virtual Medical International, Inc., and Union Bridge Holdings, Ltd. In a “pump and dump” scheme, Martin and his co-conspirators published fraudulent press releases, filed fraudulent securities disclosures with the U.S. Securities and Exchange Commission, and conducted manipulative stock trading to artificially inflate the price of the stock. They then sold their shares at inflated prices, leading Martin to earn more than $989,000 in illicit proceeds from just one of the companies.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Paul G. Shapiro. The U.S. Attorney’s Office appreciates the assistance of the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority.
Florida Man Pleads Guilty to Impersonating Federal Officers in Nationwide Elder Fraud SchemeRead the Press Release
NEW ORLEANS – CHRISTOPHER L. KEEL, age 52, of Tampa, Florida, pleaded guilty on June 14, 2023 to conspiracy to commit wire fraud and false impersonation of an employee or officer of the United States, arising from his actions to defraud elderly victims in Louisiana and Washington State, announced U.S. Attorney Duane A. Evans. United States District Judge Ivan L.R. Lemelle scheduled KEEL’S sentencing for October 11, 2023.
According to court documents, KEEL was arrested on April 4, 2022, by Tangipahoa Parish Sheriff’s Office deputies in Hammond, Louisiana, while attempting to defraud a 77-year-old woman identified as “Victim A.” Deputies had received an earlier report from the victim’s son, that his mother had been contacted by people posing as U.S. Department of Treasury agents. These “agents” told Victim A that she should withdraw money from her bank accounts and send it to them for safekeeping because her accounts had been allegedly implicated in fraud or money laundering. Beginning in early March 2022, Victim A transferred approximately $60,000 via Green Dot cards to the “agents.” The agents also instructed Victim A to give an additional $60,000 to another “agent” on April 3rd. Victim A complied and handed over this sum to the “agent”, later identified as KEEL, at a mall in Hammond. The next day, the perpetrators called Victim A and instructed her to withdraw the remaining funds from her accounts and hand them over as well. Victim A’s bank contacted her son, who then called the police.
While deputies met with Victim A on April 4th, the “agents” called her again and gave her instructions to hand over the rest of her money. Deputies arranged a sting operation and arrested KEEL after he approached Victim A in the mall parking lot. Victim A identified KEEL as the same man she met with the prior day. Deputies seized a cell phone and hotel receipts from KEEL.
Agents with Homeland Security Investigations (HSI) continued the investigation and learned that KEEL and a co-conspirator, had both traveled to New Orleans within the past 48 hours on plane tickets purchased with the same credit card. They flew from Seattle, where agents identified another victim (“Victim B”). Victim B, a 76-year-old woman, had been defrauded of $300,000. A search of KEEL’S phone showed that he sent a photograph of a box with Victim B’s name and address on it. Victim B said she used this box to deliver her money to the “agent” she met with in Tukwila, Washington.
HSI Agents also identified another victim (“Victim C”), an 80-year-old woman living in Bossier Parish, Louisiana. Agents learned that Victim C had withdrawn $36,000 from her account because purported federal “agents” called and told her that her accounts had been compromised. However, prior to delivering the money, local police were contacted and waited at her home. Police observed a vehicle circle near Victim C’s house then depart. An officer recorded the vehicle’s license plate. Later, HSI Agents obtained rental records showing that the vehicle had been leased by a co-conspirator at the time of the attempted fraud.
The search of KEEL’S cell phone revealed his contacts with other co-conspirators dating back to 2021, and his travel to other states, including Texas and Oklahoma, to further the conspiracy. HSI and Federal Bureau of Investigation agents determined that, since October 2021, KEEL and his co-conspirators caused approximately $4,498,327 in actual and attempted losses to 31 victims located throughout the United States.
KEEL pleaded guilty to both counts of the superseding indictment pending in this case. As to Count 1, conspiracy to commit wire fraud, KEEL faces a maximum penalty of 20 years imprisonment, up to a $1,000,000.00 fine or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 3571, followed by up to three years of supervised release, and a mandatory $100 special assessment fee. As to Count 2, false impersonation of an officer or employee of the United States, KEEL faces a maximum penalty of three years of imprisonment, up to a $250,000.00 fine or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 3571, followed by up to one year of supervised release, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the Homeland Security Investigations New Orleans Field Office in investigating this matter. U.S. Attorney Evans also thanked the Federal Bureau of Investigation (Detroit Field Office,) the Homeland Security Investigations (Seattle Field Office,) the Tangipahoa Parish Sheriff’s Office, and the Bossier Parish Sheriff’s Office for their assistance in this successful prosecution. Assistant U.S. Attorney Matthew R. Payne, Senior Litigation Counsel, is in charge of the prosecution.
Florida Man Convicted in Maryland After Six-Day Trial for Nationwide Scheme that Defrauded Elderly Victims of More Than $2.5 MillionRead the Press Release
Baltimore, Maryland – A federal jury convicted Eghosasere Avboraye-Igbinedion a/k/a “Ego” and “Ghost,” age 28, of Miramar, Florida, for a federal charge of conspiracy to commit mail fraud and four counts of mail fraud, in connection with a scheme in which he and his co-conspirators defrauded more than 85 elderly victims of more than $2.5 million. The verdict was returned on June 15, 2023, after a six-day trial.
The guilty verdict was announced by Erek L. Barron, United States Attorney for the District of Maryland and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
“Avboraye-Ibginedion was part of a scheme that targeted elderly victims by falsely claiming that a grandchild was in trouble and needed money and convincing the victims to send them thousands of dollars,” said U.S. Attorney Erek L. Barron. “If you or someone you know is a victim of financial fraud, please report it by contacting the Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).”
“Sophisticated scams like this one take advantage of a grandparent’s relationship with their loved ones,” said Special Agent in Charge Thomas J. Sobocinski of the FBI's Baltimore field office. “The FBI is working to educate and protect victims as we identify and bring to justice those seeking to defraud our most vulnerable community members.”
According to the evidence presented at trial, from January 2018 through November 2019, Avboraye-Ibginedion was part of a conspiracy to defraud elderly victims by persuading them to send thousands of dollars in cash to members of the conspiracy, falsely stating that the money would be used to help the victims’ relatives pay legal or other expenses for crimes and other incidents that had not actually occurred. Conspirators targeted elderly victims throughout the United States, calling and posing as a police officer, lawyer, or other individual, falsely telling the victim that a relative, typically the victim’s grandchild, had been incarcerated in connection with a car accident or traffic stop involving a crime, and needed money—often tens of thousands of dollars—for bail, legal fees, and other expenses.
Witnesses testified that during the telephone calls, the conspirators directed victims to send cash to particular addresses via an overnight delivery service. The conspirators even posed as the victims’ relatives to further induce them to send the cash. Once the victims did send money, the conspirators called the victims asking for more cash, regularly obtaining tens of thousands of dollars from the retirement savings of victims. To prevent the victims from sharing the information with anyone, the conspirators told the victims that a “gag order” had been placed on the case requiring secrecy, or that the situation was embarrassing for the grandchild and they didn’t want anyone else to know about it.
The evidence proved that Avboraye-Ibginedion’s part in the scheme was to retrieve packages of cash sent by elderly victims and deliver the packages to a co-defendant, Medard Ulysse. Avboraye-Ibginedion and other conspirators traveled from Florida to Maryland and other states and identified residential locations where the cash should be sent, typically locations that were either vacant or for sale, so that no one would be at those locations at the time of the deliveries. Once the packages were delivered, Avboraye-Ibginedion and others retrieved the packages of cash. Avboraye-Ibginedion and other conspirators also relayed directions to other participants in the scheme about where and when to retrieve packages of cash. Avboraye-Ibginedion then delivered the packages to Ulysse or to other conspirators.
Avboraye-Ibginedion faces a maximum sentence of 20 years in federal prison for mail fraud conspiracy. U.S. District Judge Richard D. Bennett has not yet scheduled sentencing Avboraye-Ibginedion.
Co-defendant Medard Ulysse, age 38, most recently of Miami, Florida, was sentenced earlier this year to nine years in federal prison, for wire fraud and conspiracy to commit mail fraud in relation to multiple fraud schemes, including the elder fraud “grandparent” scam. Judge Bennett also ordered Ulysse to pay restitution totaling $2,485,512, of which $1,866,745 is for the elder fraud scam.
Reporting from consumers about fraud and fraud attempts is critical to law enforcement efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying next steps, including identifying appropriate reporting agencies, providing information to callers to assist them in reporting or connecting them with agencies, and providing resources and referrals on a case-by-case basis. The hotline is staffed from 10:00 a.m. to 6:00 p.m. Monday through Friday. English, Spanish, and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324.
United States Attorney Erek L. Barron commended the FBI for its work in the investigation and thanked Canadian Sûreté du Québec for its assistance. Mr. Barron thanked Assistant U.S. Attorneys Sean R. Delaney and Christine Goo, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help seniors, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/elder-justice-initiative.
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Federal Grand Jury Indicts Tonawanda Man on Production and Distribution of Child Pornography Charges and Destroying EvidenceRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that a federal grand jury returned an indictment charging Michael E. Swain, 35, of Tonawanda, NY, with production and distribution of child pornography and corruptly altering, destroying, mutilating, or concealing evidence. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Raymond J. Fadel, who is handling the case, stated that according to the indictment and a previously filed complaint, the Tonawanda Police Department received a report that a minor female was the victim of coercion involving Swain. The investigation determined that Swain had been communicating on the Discord social media app with the victim for a long period of time. At his request, the victim sent numerous images and videos of herself to Swain, including some sexually explicit images. At times, Swain would threaten to release the images to family and friends of the victim. Investigators executed a search warrant at Swain’s residence and seized a cell phone, thumb drive, desktop computer, laptop computer, and an SD card. According to the indictment, when investigators arrived to execute the search warrant, Swain allegedly factory reset his cell phone, which can cause the data that was on the device to be deleted and unrecoverable.
The indictment is the result of an investigation by the Tonawanda Police Department, under the direction of Chief James Stauffiger, the Federal Bureau of Investigation Buffalo Office Child Exploitation Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, and the New York State Police, under the direction of Eugene Staniszewski.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Federal Grand Jury Indicts Kuttawa Man on Child Pornography ChargeRead the Press Release
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Rana Saoud of the Homeland Security Investigations (HSI) Nashville, and Sheriff Brent White of the Lyon County Sheriff’s Office made the announcement.
According to the indictment, Taylor Glass, 33, was charged with one count of possession of child pornography.
The defendant made an initial appearance on June 15, 2023, before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. If convicted the defendant faces a sentence of up to 20 years. There is no parole in the federal system.
HSI and the Lyon County Sheriff’s Office are investigating the case.
Assistant U.S. Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah Branch Office, is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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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Federal Grand Jury Indicts Hopkinsville Man for Methamphetamine TraffickingRead the Press Release
Paducah, KY – A federal grand jury in Paducah, Kentucky returned an indictment on June 13, 2023, charging a Hopkinsville man with methamphetamine trafficking.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Ronald Yeatts of the United States Army’s Criminal Investigation Division (CID) at Fort Campbell, and Sheriff Tyler DeArmond of the Christian County Sheriff’s Office made the announcement.
According to the indictment, Stephen Antwain Taylor, 30, was charged with possessing with the intent to distribute more than 50 grams of methamphetamine.
Taylor made his initial court appearance before a U.S. Magistrate Judge in the Western District of Kentucky on June 15, 2023. If convicted, Taylor faces a mandatory minimum sentence of 10 years and a maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by the United States Army CID at Fort Campbell and the Christian County Sheriff’s Office, with the assistance of the DEA Paducah Post of Duty.
Assistant U.S. Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah 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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Federal Grand Jury Indicts New Orleans Men for Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – On Friday June 9, 2023, DANIEEL MUTIN, age 18, and JUAN MATTHEWS, age 21, both residents of New Orleans, Louisiana, were charged in a five-count indictment, announced U.S. Attorney Duane A. Evans.
In Count 1, MUTIN is charged with possession with intent to distribute fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C). If convicted of Count 1, MUTIN faces a maximum term of imprisonment of 20 years, up to a $1,000,000 fine, and at least three years of supervised release. In Count 2, MUTIN is charged with possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A). If convicted of Count 2, MUTIN faces a mandatory minimum sentence of five years up to life imprisonment, to run consecutively to all other sentences, up to a $250,000 fine, and up to five years of supervised release.
In Count 3, MATTHEWS is charged with possession with intent to distribute marijuana and tapentadol, in violation of 21 U.S.C. §§ 841(a)(1), (b)(1)(C), and (b)(1)(D). If convicted of Count 3, MATTHEWS faces a maximum term of imprisonment of 20 years, up to a $1,000,000 fine, and at least three years of supervised release. In Count 4, MATTHEWS is charged with possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A). If convicted of Count 4, MATTHEWS faces a mandatory minimum sentence of five years up to life imprisonment, to run consecutively to all other sentences, up to a $250,000 fine, and up to five years of supervised release. In Count 5, MATTHEWS is charged with possession of a machinegun in violation of 18 U.S.C. §§ 922(o) and 924(a)(2). If convicted of Count 5, MATTHEWS faces a maximum term of imprisonment of 10 years, up to a $250,000 fine, and up to 3 years of supervised release. As to each count, MATTHEWS faces payment of a mandatory special assessment fee of $100..
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. Assistant United States Attorney Sarah Dawkins of the Violent Crime Unit is in charge of the prosecution.
El Departamento de Justicia halla vulneraciones de los derechos civiles por parte de la Policía de Minneapolis y la Ciudad de MinneapolisRead the Press Release
Tras una investigación integral, el Departamento de Justicia anunció hoy que la Policía de Minneapolis («MPD», por sus siglas en inglés) y la Ciudad de Minneapolis (Ciudad) han incurrido en un patrón o una práctica de conducta que vulnera la Constitución de los EE. UU. y las leyes federales. El Departamento anunció además que la Ciudad y la MPD han acordado, en principio, resolver los hallazgos del Departamentos mediante una orden de consentimiento ejecutable por los tribunales con un asesor de cumplimiento técnico independiente en vez de entrar en litigio contencioso.
En concreto, el Departamento de Justicia halló que la MPD:
- Emplea fuerza excesiva, lo que incluye la fuerza letal no justificada y el uso irrazonable de pistolas paralizantes;
- Discrimina de manera ilícita contra personas negras y nativas indígenas en sus actividades de aplicación de la ley, incluyendo el uso de fuerza después de una parada;
- Infringe en los derechos de personas que están ejerciendo su derecho de expresión protegida; y
- Junto con la Ciudad, discrimina contra personas con discapacidades de salud del comportamiento a la hora de responder a llamadas de auxilio.
El Departamento identificó y concluyó que las deficiencias continuas en las políticas, capacitación, supervisión y rendición de cuentas contribuyen a la conducta ilegal.
«La muerte de George Floyd tuvo un impacto irrevocable en su familia, en la comunidad de Minneapolis, en nuestro país y en el mundo», afirmó el Fiscal General Merrick B. Garland. «Los patrones y prácticas de conducta que el Departamento de Justicia observó durante nuestra investigación son profundamente inquietantes. Minan la confianza de la comunidad en las autoridades policiales. Y hacen posible lo que le pasó a George Floyd. Hoy hemos acabado nuestra investigación, pero este es solo un primer paso. Seguiremos colaborando con la Ciudad y la MPD con el fin de garantizar que los agentes de la MPD dispongan de apoyo y los recursos que necesitan para hacer su trabajo de una manera eficaz y legal, a medida que vayamos trabajando juntos hacia una reforma significativa y duradera».
«Yo sé que esta comunidad todavía sufre y que el anuncio de hoy posiblemente ha vuelto a abrir viejas heridas», comentó la Fiscal General Asociada, Vanita Gupta. «El Departamento de Justicia se ha comprometido a trabajar con Minneapolis a caminar hacia adelante, hacia una vigilancia policial constitucional y una mayor confianza entre la policía y la comunidad. Juntos podemos construir una Minneapolis que protege los derechos, la seguridad y la dignidad de todos».
«Cada estadounidense merece una vigilancia policial justa, equitativa y no discriminatoria», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Las manifestaciones que tuvieron lugar por todo Minneapolis y el país resaltan la urgencia de nuestros esfuerzos por asegurar que las policías respeten los derechos constitucionales a la vez que obtengan la confianza pública. Nosotros apoyaremos a la gente de Minneapolis a medida que implementemos reformas duraderas y permanentes».
«Estos hallazgos muestran una imagen solemne de un sistema fallido, pero hoy giramos hacia el cambio a través de la justicia», dijo la Primera Fiscal Federal Auxiliar para el Distrito de Minnesota, Ann Bildtsen. «Esta investigación a fondo constituye la base para convertir en realidad, para toda la comunidad, una vigilancia policial justa y legal».
La Ciudad y la MPD cooperaron plenamente con la investigación del Departamento de Justicia. El Departamento proporcionó a la Ciudad y la MPD un informe escrito integral de sus hallazgos investigativos. El informe reconoce los cambios ya implementados por la Ciudad y la MPD, y también identifica medidas correctivas adicionales que el Departamento cree que son necesarias para abordar sus hallazgos en su totalidad.
El Departamento inició esta investigación el 21 de abril del 2021. La investigación fue llevada a cabo por abogados de carrera y personal de la Sección de Litigios Especiales de la División de Derechos Civiles y la División Civil de la Fiscalía Federal para el Distrito de Minnesota. El equipo realizó varias visitas guiadas de las instalaciones de la MPD; entrevistó a agentes, supervisores, y personal de comando de la MPD; habló con oficiales y empleados de la Ciudad; acompañó a agentes y al personal de respuesta en sus vehículos; revisó miles de documentos y observó miles de horas de grabaciones provenientes de cámaras corporales. Asimismo, los abogados y personal del Departamento también se reunieron con miembros comunitarios, defensores, proveedores de servicios y otras partes interesadas del área de Minneapolis.
El Departamento realizó esta investigación de acuerdo con la Sección 12601 del Título 34 del Código de los EE. UU. (Sección 12601), que prohíbe que los policías incurran en un patrón o una práctica de conducta que prive a las personas de derechos amparados por la Constitución o las leyes federales, la ley de Calles Seguras de 1968, el Título VI de la ley de Derechos Civiles de 1964 o el Título II de la ley de Estadounidenses con Discapacidades.
Los hallazgos que se anunciaron hoy son el resultado de la investigación de patrón o práctica y son separados de los casos penales del Departamento contra exagentes de la MPD por delitos federales que se cometieron en conexión con la muerte de George Floyd.
El Departamento se comunicará con miembros de la comunidad de Minneapolis para pedir comentarios sobre medidas correctivas que aborden los hallazgos del Departamento. Las personas pueden también someter sus recomendaciones por correo electrónico a [email protected] o por teléfono al 1-866-432-0268.
Esta es una de ocho investigaciones de agencias de aplicación de la ley que se han iniciado durante esta Administración por la División de Derechos Civiles del Departamento de Justicia, en virtud de la Sección 12601. El Departamento tiene pendiente otras investigaciones en curso de la Policía de Phoenix; la Policía de Mount Vernon; la Policía Estatal de Louisiana; la División de Víctimas Especiales de la Policía de New York; la Policía de Worcester; y la Policía de Oklahoma City. Durante el último año, el Departamento ha publicado informes de hallazgos en virtud de la Sección 12601 en conexión con la Policía Metropolitana de Louisville, así como la Fiscalía y el Departamento del Sheriff del Condado de Orange.
Información adicional sobre la División de Derechos Civiles del Departamento de Justicia está disponible en su sitio web en www.justice.gov/crt. Para más información sobre la Fiscalía Federal para el Distrito de Minnesota, vaya a www.justice.gov/usao-mn.
Para información específica sobre el trabajo de reformación policíaca de la División de Derechos Civiles, vaya a: https://www.justice.gov/crt/file/922421/download.
El Departamento de Justicia realizará una presentación virtual sobre los hallazgos a las 5:00 de la tarde, Hora Central. Se anima a los miembros del público a asistir para aprender más sobre los hallazgos. Puede unirse a la reunión aquí.
Dunkirk Man Pleads Guilty to Drug Charges Involving an Overdose That Led to A DeathRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Bruce Massara, 57, of Dunkirk, NY, who was convicted of possession with intent to distribute, and distribution of, 10 grams or more of butyryl fentanyl, was sentenced to serve 120 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that in August 2018, the FBI began investigating Massara’s narcotics trafficking activities. The investigation determined that his distribution of heroin and fentanyl analogs was linked with several overdoses:
- In March 2017, the Amherst Police Department and first responders were called to a residence in Williamsville, where they located L.B. on the ground, unconscious and unresponsive. L.B. appeared to have overdosed but was revived with Narcan and survived. Massara was present at the scene and prior to L.B.’s overdose, Massara provided L.B. with heroin.
- In November 2017, the Amherst Police Department and first responders were again called to the Williamsville residence, where they located S.D., who was pronounced dead at the scene. The previous evening, Massara provided heroin, fentanyl, butyryl fentanyl and furanyl fentanyl to S.D., who then overdosed.
- In November 2018, Massara provided heroin and fentanyl to L.B. at the same Williamsville residence. After taking the mixture, L.B. lost consciousness but Massara administered Narcan to L.B. and revived him.
The investigation also included a controlled purchase of narcotics from Massara. Following his arrest on May 23, 2019, while incarcerated at the Niagara County Jail, Massara directed a third party to destroy a personal journal containing entries related to, among others, the overdoses of S.D. and L.B.
The sentencing is the result of an investigation by the Amherst Police Department under the direction of Chief Scott Chamberlin and the Federal bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
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Dulce Man Pleads Guilty to Sexual Abuse in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Christian Quintana, 34, of Dulce, pled guilty to abusive sexual contact and aggravated sexual abuse in Indian country.
A federal grand jury indicted Quintana on Oct. 26, 2021. According to the plea agreement and other court records, between Oct. 2012, and Oct. 2013, Quintana engaged in sexual contact with a child, identified as Jane Doe 1, who at the time was less than 12 years old.
Between Oct. 2019, and Oct. 2020, Quintana engaged in a sexual act with a second victim, a minor identified as Jane Doe 2, by force, and threatened to kill “everyone” and himself if she told anyone. Based on her knowledge of Quintana’s history of violence, Jane Doe 2 complied.
Both victims are enrolled members of the Jicarilla Apache Tribe.
Quintana will remain in custody pending sentencing, which has not been scheduled. At sentencing, Quintana faces between 15 and 25 years in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Jicarilla Apache Police Department. Assistant United States Attorney Matthew J. McGinley is prosecuting the case.
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District Physician’s Assistant Arraigned on Two Counts of Second Degree Sexual Abuse of a Patient or ClientRead the Press Release
Defendant Accused of Sexually Assaulting Two Patients During Physical Exams
WASHINGTON – Haileleoul Erbello (Desta), 47, of Laurel, Maryland, was arraigned today on six counts of second degree sexual abuse of a patient or client arising from events that occurred in August of 2019 and April of 2021, announced U.S. Attorney Matthew Graves and Interim Chief Ashan Benedict of the Metropolitan Police Department.
On May 17, 2023, Erbello was indicted by a grand jury in the Superior Court of the District of Columbia on six counts of second degree sexual abuse of a patient or client. He faces a maximum of five years in prison on each count if convicted.
According to the government’s evidence, between August of 2019 and April of 2021, the defendant was working at Metro Lab clinic in Washington, D.C. On or about August 20, 2019, he was performing a physical exam on a patient to certify her eligibility for employment when he groped her breasts, pressed his chest up against her breasts, and pressed his genitalia up against her arm. The indictment also charges that Erbello sexually abused a second patient on or about April 10, 2021. He was, again, performing a physical exam to certify a patient’s employment eligibility when he pressed his groin up against the patient’s buttocks, groped her breasts, and touched her buttocks with his hand.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Graves and Chief Benedict commended the work of those investigating the case from the Metropolitan Police Department’s Sexual Assault Unit. They acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Investigative Analyst Durand Odom; Victim/Witness Advocate Lezlie Richardson; and Paralegal Specialists Cynthia Muhammad and ReShawn Johnson. Finally, they commended the work of former Assistant U.S. Attorney Angela Buckner, along with Assistant U.S. Attorney Bonnie Thompson, who is investigating and prosecuting the case.
District Man Sentenced to Seven Years in Prison for Drug and Gun OffensesRead the Press Release
WASHINGTON – Demetrius Green, 33, of Washington, D.C., was sentenced today to 84 months in prison for gun and drug charges, announced U.S. Attorney Matthew M. Graves, Special Agent in Charge is Craig B. Kailimai, and Interim Chief Ashan Benedict, of the Metropolitan Police Department.
Green was convicted, on December 14, 2022, after a one-week jury trial, of unlawful possession of a firearm and ammunition by a prohibited person (previous conviction for a term of imprisonment exceeding one year) and three counts of unlawful possession with intent to distribute a controlled substance (including crack cocaine, hydromorphone, and oxycodone).
According to the evidence, on January 20, 2020, at approximately 4:45 a.m., Green, a twice convicted felon, stepped onto the back porch of 917 Wahler Place, Southeast, in Washington, D.C., and fired a machinegun into the air. The Metropolitan Police Department (“MPD”) quickly responded and knocked on both the back and front door, but the individual inside refused to come out. MPD officers gathered the spent shell casings from the back porch and obtained pole camera footage from a camera that had been installed days earlier to monitor suspected drug trafficking and violence in the area. The pole camera captured Green stepping onto the back porch and firing off a weapon at 4:45 a.m, and then stepping onto the same back porch on at least two occasions later that morning. After reviewing this footage, law enforcement returned that evening with a search warrant.
As the warrant was executed, Green attempted to run out the back door, but was stopped and arrested. From inside the residence, MPD and the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) recovered approximately $30,000 of drugs (including 33 zips of crack cocaine, 288 hydromorphone pills, and 700 oxycodone pills), drug paraphernalia, and a machinegun that forensically matched the five spent shell casings that MPD had recovered from the back porch. Green was the only individual inside the residence. Several of Green’s ID cards were found merely feet away from the crack and the machinegun, and Green appeared to be the only person living in what the Government’s expert witness testified was a quintessential “stash house,” where controlled substances were stored in order to be sold to the public.
In announcing the sentence, U.S. Attorney Graves, Special Agent in Charge Kailimai, and Interim Chief Benedict commended the work of the detectives and patrol officers of the Metropolitan Police Department’s Seventh District, and agents and experts from the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). They also expressed appreciation to those who prosecuted the case Assistant U.S. Attorneys David T. Henek from the office’s Violence Reduction and Trafficking offenses section and Gilead Light from the Federal Major Crimes section.
Department of Justice Allocates Eight Additional Attorneys to the U.S. Attorney’s OfficeRead the Press Release
DETROIT – The U.S. Department of Justice has allocated eight additional attorney positions and two support staff positions to the U.S. Attorney’s Office for the Eastern District of Michigan to meet the district’s needs and the priorities of the Office and the Department, United States Attorney Dawn N. Ison announced today.
U.S. Attorney Ison had requested the additional resources over the past three months to meet her priorities of rebuilding community trust, reinvigorating civil rights enforcement efforts, and restructuring the office’s approach to violent crime. The eight additional attorneys and two support staff personnel will be hired over the coming months and will serve in the Detroit, Flint, and Bay City offices.
Two additional prosecutors and a new support staff employee will be hired to focus on violent crime and national security cases, including counter-terrorism efforts. One of the additional Assistant U.S. Attorneys will be dedicated to prosecuting criminal civil rights violations and bringing civil enforcement actions to protect civil rights. Two new prosecutors will be focused on prosecuting violent crime on the Isabella Reservation in Indian Country from the Office’s Bay City Branch. Two new attorneys, in term positions, will be detailed to fight fraud on Covid-19 pandemic relief programs through criminal prosecutions and civil enforcement actions. A new Assistant U.S. Attorney, as well as a new information technology specialist, will work on the Office’s eLitigation operations and improving the use of technology to manage electronic discovery in our civil and criminal cases.
As part of the process, the Department of Justice received requests for new resources and new prosecutors from U.S. Attorney’s Offices around the country. Attorney General Merrick Garland and the Department’s top leadership evaluated the requests, made final decisions, and recently notified the Offices of these decisions.
On June 21, 2023, at 4:00 p.m., the Office will be holding a recruitment event in preparation for the hiring of these additional eight attorneys.
“These additional resources will further invigorate our efforts to protect the District’s citizens and communities and to protect taxpayer dollars from fraud,” U.S. Attorney Ison said. “I am grateful
to Attorney General Garland for awarding our Office with these new positions to better combat violent crime, defend civil rights, and fight fraud.”
Defendant Threatened Violent, Antisemitic ActionRead the Press Release
MARQUETTE, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Seann Pietela, 19, of Pickford, Michigan was arrested by Federal Bureau of Investigation (FBI) agents and charged in a criminal complaint with transmitting a communication containing a threat to injure another.
“Antisemitic threats and violence against our Jewish communities – or any other group for that matter – will not be tolerated in the Western District of Michigan,” said U.S. Attorney Mark Totten. “Today and every day we take all credible threats seriously. I’m incredibly grateful to the FBI for their swift action to identify and arrest Pietela.”
As outlined in the complaint, Pietela is alleged to have communicated with others on Instagram and evinced a neo-Nazi ideology, antisemitism, glorification of past mass shooters, and a desire and intent to mimic past mass shooters or mass casualty events. Pietela allegedly communicated about planning to commit acts of violence to kill other people. Pietela’s home was searched earlier today, and law enforcement seized ammunition, magazines, a shotgun, a rifle, a pistol, various knives, firearms accessories, tactical vests, mask, a Nazi flag, a ghillie suit, gas masks, and military sniper/survival manuals. Also seized was Pietela’s phone, and in the notes app, he had identified a particular synagogue in East Lansing, a date, and a list of equipment.
“No American should face threats against them based on their race or religion,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “Crimes like the one alleged in this complaint have a profound effect not only on the intended target, but on their entire community. I would like to thank the Chippewa County Sheriff’s Office for their close collaboration during this investigation. Every Michigander should rest assured that law enforcement at all levels are working together to ensure that those who engage in this type of behavior see justice under the law.
The Chippewa County Sheriff's Office, TRI-county Drug Enforcement Team (TRIDENT), Upper Peninsula Substance Enforcement Team (UPSET), and Michigan State Police Emergency Services Team assisted the FBI with this case.
A copy of the complaint is attached. The charges in a complaint are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
Pietila Complaint Affidavit
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Coon Rapids Man Pleads Guilty to $1.29M Romance Fraud Scheme that Targeted Elderly VictimsRead the Press Release
ST. PAUL, Minn. – A Coon Rapids man has pleaded guilty to mail fraud, announced U.S. Attorney Andrew M. Luger.
According to court documents, from at least in or about June 2020 through in or about March 2021, Solomon Eghosa Wilfred, 42, and other scheme participants knowingly and intentionally participated in and facilitated an online romance fraud scheme that targeted primarily elderly victims and lured them into sending money under false pretenses. The scheme relied on impersonating a real or plausible but fictitious person, such as a senior U.S. diplomat or military official, that contacted the victims through online social media applications. The scheme participants then sought to forge a romantic connection with the victims. If successful, the scheme participants would then ask the victims for money purportedly to assist the false persona with some problem or need. Occasionally, the scheme participants would even introduce the victims to a purported third-party intermediary who would corroborate the false persona’s story and assist in defrauding the victims. The victims eventually were directed to send large sums of money by mail or other commercial means to a specified name and address.
Wilfred also assisted with the collection and transfer of the fraudulently obtained funds. Wilfred opened at least six Post Office boxes in Minnesota to receive victims’ packages and to send funds from victims to other scheme participants. Wilfred also communicated with some victims to facilitate the fraud scheme. For example, Wilfred admitted to sending victims cards and rings using the name of the false persona. In total, Wilfred received over 400 victim packages containing approximately $1,294,995 in fraud proceeds during the scheme. Wilfred kept some of the proceeds for his personal benefit and disbursed the remainder of the proceeds to other scheme participants.
Wilfred pleaded guilty yesterday in U.S. District Court before Judge Katherine M. Menendez to mail fraud. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by the FBI and the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Jordan L. Sing and Robert M. Lewis are prosecuting the case.
Convicted Murderer Sentenced to Almost 5 Years in Federal Prison for Possessing FirearmsRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Christopher Richard Munroe (55, Ocala) to four years and nine months in federal prison for possessing a firearm as a convicted felon. Munroe had pleaded guilty on March 20, 2023.
According to court documents, on November 14, 2022, the Ocala Police Department and the Marion County Sheriff’s Office responded to a call from the owner of a moving company, who reported that Munroe had stolen three firearms while packing a residence for customers. When officers arrived on the scene, they found Munroe crouched down in some nearby bushes. The officers located the stolen firearms, seven ammunition magazines, and ammunition where Munroe had been hiding. Munroe had previously been convicted of second-degree murder in New York. He was released on parole in 2018. As a convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the City of Ocala Police Department, and the Marion County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Belkis H. Crockett.
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.
Convicted Felon Indicted for Possession of Firearm and AmmunitionRead the Press Release
Tampa, FL - United States Attorney Roger B. Handberg announces the return of an indictment charging John Knight (45, St. Petersburg) with one count of possession of a firearm and ammunition by a convicted felon. If convicted, Knight faces up to 15 years in in federal prison.
According to the indictment, on February 18, 2023, Knight possessed a Beretta 9mm semiautomatic pistol, 15 rounds of Federal cartridge 9mm ammunition, and one round of Remington Arms company 9mm ammunition. Knight was previously convicted of two felonies, including attempted murder in the 2nd degree and possession of a firearm by a convicted felon. As such, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Petersburg Police Department. It will be prosecuted by Assistant United States Attorney Samantha Newman.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case 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.
Connecticut Man Faces Kidnapping and Stolen Vehicle ChargesRead the Press Release
Burlington, Vermont — The United States Attorney’s Office stated that Barry Perez, 37, of Hartford, Connecticut, was arraigned in federal court this morning on charges of kidnapping and interstate transport of a stolen motor vehicle. Perez had been indicted by a federal grand jury in Burlington on May 11, 2023. United States Magistrate Judge Kevin Doyle ordered Perez detained in federal custody pending further proceedings.
According to court records, Perez stole a box truck in Lebanon, New Hampshire in the early hours of the morning of January 13, 2023, and drove it into Vermont before crashing it into a rock outcropping in the median of Interstate 89. When a good Samaritan truck driver pulled over to render aid, Perez pointed a realistic-looking faux firearm at the truck driver and compelled the truck driver to drive him northbound on Interstate 89. The truck driver was eventually able to flee from the truck in a parking lot in Berlin. Responding officers found Perez in the cab of the truck and arrested him.
The indictment is an accusation only, and Perez is presumed innocent until and unless proven guilty. If convicted, Perez faces a maximum possible penalty of life imprisonment. The actual sentence in the case will be determined by the court with reference to the advisory United States Sentencing Guidelines.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Berlin Police Department, the Lebanon, New Hampshire Police Department, and the Vermont State Police. He also thanked the Washington County Sheriff’s Office, the Barre City Police Department, and the Montpelier Police Department for their assistance safely taking Perez into custody.
Assistant United States Attorneys Paul van de Graaf and Ray Sun represent the government. Perez is represented by Federal Defender Michael L. Desautels, Esq. and Michael J. Leddy, Esq.
Cherokee Man Sentenced to over 29 Years in Federal Prison for Sexually Exploiting a ChildRead the Press Release
A Cherokee man who took videos while sexually abusing a minor child pled guilty on February 17, 2023, in federal court in Sioux City. James Franklin Buckingham, age 33, from Cherokee, Iowa was convicted of sexual exploitation of a minor.
In a plea agreement, Buckingham admitted that he sexually abused a minor child, under the age of 12. While sexually abusing the child, Buckingham took at least 4 videos of the abuse.
Buckingham was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 354 months’ imprisonment, he was also ordered to make a payment of $4,116.35 in restitution to the victim. Buckingham must also serve a 7-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Buckingham is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by Cherokee Police Department and the Federal Bureau of Investigations and was prosecuted by Assistant United States Attorney Ron Timmons.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-04067.
Follow us on Twitter @USAO_NDIA.
Cherokee County Resident Pleads Guilty to Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jeffery Glenn Bocephus Robinson, age 32, of Tahlequah, Oklahoma, entered a guilty plea of one count of Felon in Possession of a Firearm, punishable by up to 15 years in prison.
The Indictment alleged that on November 28, 2022, Robinson, who had been convicted of a crime punishable by imprisonment for a term exceeding one year, was found in possession of a .22 rifle.
The charges arose from an investigation by the Cherokee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. Robinson was remanded to the custody of the U.S. Marshal pending sentencing.
Special Assistant United States Attorney Michael R. Pahl represented the United States.
Canadian Man Convicted in Multimillion-Dollar Psychic Mass-Mailing Fraud SchemeRead the Press Release
A federal jury in the Eastern District of New York convicted a Canadian man today for perpetrating a decades-long mass-mailing fraud scheme that stole more than $175 million from victims in the United States.
According to court documents and evidence presented at trial, Patrice Runner, 57, a Canadian and French citizen, operated a mass-mailing fraud scheme from 1994 through November 2014. As part of the scheme, Runner sent letters to millions of U.S. consumers, many of whom were elderly and vulnerable. The letters falsely purported to be individualized, personal communications from so-called “psychics,” including Maria Duval (leading this type of fraud scheme to be referred to as a “Maria Duval Scam”), and promised that the recipient had the opportunity to achieve great wealth and happiness with the psychic’s assistance, in exchange for payment of a fee. Once a victim made a single payment in response to one of the letters, the victim was bombarded with dozens of additional letters, all purporting to be personalized communications from the psychics and offering additional services and items for a fee.
Although the scheme’s letters frequently stated that a psychic had seen a personalized vision regarding the recipient of the letter, in fact, the scheme sent nearly identical form letters to tens of thousands of victims each week. Runner and his co-conspirators obtained the names of elderly and vulnerable victims by renting and trading mailing lists with other mail fraud schemes. In reality, the so-called “psychics” identified in the letters sent by the scheme had no role in sending the letters, did not receive responses from the victims, and did not send the additional letters after victims paid money. Some victims made dozens of payments in response to the fraudulent letters, losing thousands of dollars.
Runner directed the scheme for the entirety of its 20-year operation, providing instructions to co-conspirators who ran the day-to-day operations through a Canadian company. Runner used a series of shell companies registered in Canada and Hong Kong to hide his involvement in the scheme while living in multiple foreign countries, including Switzerland, France, the Netherlands, Costa Rica, and Spain.
Runner was extradited from Spain to the United States in December 2020.
“This case exemplifies the commitment of the Department of Justice’s Consumer Protection Branch and its partners in the U.S. Postal Inspection Service to investigating and prosecuting fraud schemes targeting Americans, no matter where in the world those schemes originate,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will work with our law enforcement partners in the United States and around the world to bring to justice criminals who target Americans.”
“For over 20 years, Patrice Runner managed a predatory scheme that targeted older American by mailing personalized letters to millions of victims purporting to be from a world renown psychic. Yesterday’s verdict should have come as no surprise to Mr. Runner,” said Inspector in Charge Chris Nielsen of the Postal Inspection Service’s Philadelphia Division. “Postal Inspectors are committed to protecting American consumers by eliminating these fraudulent mailings from the mailstream.”
Runner was convicted of conspiracy to commit mail and wire fraud, eight counts of mail fraud, four counts of wire fraud, and conspiracy to commit money laundering. He was found not guilty on four counts of mail fraud.
Runner will be sentenced at a later date and faces a maximum penalty of 20 years in prison on each count. He remains in prison pending sentencing. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Four other people previously pleaded guilty to conspiracy to commit mail fraud in connection with this mass-mailing fraud scheme: Maria Thanos, 59, of Montreal, Canada; Philip Lett, 52, of Montreal, Canada; Sherry Gore, 72, of Indiana; and Daniel Arnold, 61, of Connecticut.
The U.S. Postal Inspection Service investigated the case. Assistant Director John W. Burke and Trial Attorneys Charles B. Dunn, Rachel Baron, and Ann Entwistle of the Justice Department’s Consumer Protection Branch are prosecuting the case. The Justice Department's Office of International Affairs worked with law enforcement partners in Spain to secure the arrest and extradition of Runner.
The department urges individuals to be on the lookout for lottery, prize notification, and sweepstakes scams. If you receive a phone call, letter, or email promising a large prize in exchange for a fee, do not respond. Fraudsters often will use official-sounding names or the names of real lotteries or sweepstakes, or pretend to be a government agent purportedly helping to secure a prize.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available. The Federal Trade Commission also provides a hotline at 877-FTC-HELP and a website at www.ftccomplaintassistant.gov to receive consumer complaints.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. The Department of Justice provides information about a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which are available at www.ovc.gov.
Cambria County Woman Pleads Guilty to Conspiracy to Commit Health Care FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Florentina Mayko, age 39, of Cambria County, Pennsylvania, pleaded guilty on June 14, 2023, before U.S. Magistrate Judge Martin C. Carlson to conspiracy to commit health care fraud for defrauding Medicare and the U.S. Department of Health and Human Services between 2017 and 2019. Mayko had been charged in a one-count Information on May 9, 2023.
According to United States Attorney Gerard M. Karam, Mayko agreed with others to defraud Medicare by submitting medically unnecessary urine drug tests for chronic opioid patients at medical clinics where she was the chief executive officer, including a group of clinics known as Pain Medicine of York or “PMY” (also known as All Better Wellness).
Mayko became the CEO of Pain Medicine of York around January 2018. Prior to that, Mayko served as Director of Operations of a group of medical practices known in the Information as “Practice Group 1.” Mayko was hired to work at Practice Group 1 by an individual known in the Information as Physician 1.
The owner of PMY, known as “PMY Owner” in the Information, was friends and business partners with Physician 1. Physician 1 was imprisoned for health care fraud and federal tax offenses in mid-2017, at which point the operation of Practice Group 1 was transitioned to PMY. When Mayko was promoted to the position of CEO of PMY, her responsibilities did not materially change. From the time of her promotion onward, Mayko was in charge of the day-to-day management of PMY’s operations, which included the practices previously associated with Practice Group 1.
PMY had a practice, established in 2016 by Physician 1 and PMY Owner, of ordering multiple urine drug tests for each patient at every PMY office visit, despite a lack of medical necessity. From mid-2017 onward, Mayko and PMY Owner were repeatedly confronted with information regarding the unlawful nature of the company’s UDT billing practices but continued to utilize the practice until search warrants were executed at PMY’s various locations in November 2019. PMY ceased operations soon thereafter because it could no longer retain medical providers.
PMY billed Medicare for more than $10 million in urine drug tests from mid-2017 through the end of 2019, and Medicare paid out over $4 million for these urine drug tests. The urine drug tests ordered by PMY were sent to an in-house laboratory at PMY whenever possible. As a result, when medically unnecessary tests were billed to Medicare, the proceeds from them went to PMY itself. A large portion of these proceeds went to PMY Owner and Mayko. Mayko, in turn, purchased several investment properties using these funds.
Mayko agreed to pay $1,408,976.48 in restitution to the United States. She also agreed to forfeit to the United States several properties located in Ocean City, Maryland and Myrtle Beach, South Carolina.
The case was investigated by the U.S. Department of Health and Human Services Office of Inspector General, Federal Bureau of Investigation, Drug Enforcement Administration, and the Pennsylvania Office of Attorney General. Assistant U.S. Attorney Ravi Romel Sharma and Special Assistant U.S. Attorney Robert Smultkis are prosecuting the case.
The maximum penalty under federal law for conspiracy to commit health care fraud is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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California Man Sentenced for Assaulting Two Female Passengers on Flight to BostonRead the Press Release
BOSTON – A California man was sentenced yesterday in federal court in Boston for assaulting two women aboard a redeye flight from Los Angeles to Boston.
Jairaj Singh Dhillon, 43, of Modesto, Cal., was sentenced by U.S. District Court Magistrate Judge Paul G. Levenson to one year of probation, with the first six months to be served in home confinement. On March 20, 2023, Dhillon pleaded guilty to two counts of assault while in the special aircraft jurisdiction of the United States.
During an overnight flight from Los Angeles to Boston on May 31, 2022, Dhillon engaged in unwanted sexual contact with two female passengers sitting next to him. The first victim reported that Dhillon, seated in the aisle seat next to her, touched her thigh and groin area while she was taking care of her infant child who was in a car seat in the window seat next to her. The first victim called for help and stated out loud, “this man just groped me.” The second victim, who was seated in the aisle seat opposite Dhillon, reported that Dhillon reached out with both hands and simultaneously grabbed her groin and buttocks when she was standing in the aisle. Flight crew intervened and moved Dhillon to another part of the plane for the duration of the flight. Dhillon was immediately taken into custody upon the flight’s arrival in Boston.
Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Charles Dell’Anno of Levy’s Criminal Division prosecuted the case.
Bryan County Resident Pleads Guilty to Federal Firearms CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Bobby William Wells, Jr., age 33, of Durant, Oklahoma entered a guilty plea to one count of Felon in Possession of Ammunition, punishable by up to 15 years in prison and a fine of up to $250,000.
During the plea hearing, Wells admitted to having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, and to possessing ammunition despite knowing he was prohibited from doing so.
The charges arose from an investigation by the Durant Police Department, Southeastern Oklahoma State University Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Richard Lorenz represented the United States.
Broomall Businessman Sentenced to 40 Months in Prison for Stealing PPP Funds and Tax EvasionRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Christopher Davis, 32, of Haddon Heights, NJ, was sentenced to 40 months in prison and five years of supervised release and ordered to pay $267,859 in restitution by United States District Court Judge Harvey Bartle III, for unlawfully obtaining and misusing loan proceeds offered through the federal Paycheck Protection Program (“PPP”) and committing tax evasion.
While operating a property management business out of Broomall, Pennsylvania in 2016, 2017, and 2018, Davis earned hundreds of thousands of dollars. Nonetheless, he willfully failed to file a tax return for each of these years and took actions to evade paying his personal income taxes, such as using approximately $230,000 from his business bank accounts to purchase four automobiles (including a Ferrari, a Range Rover, and a Mercedes Benz) for his personal use and utilizing corporate credit cards to charge over $326,000 in personal expenses, including trips to Italy, Monaco, Great Britain, Spain, France, and Greece.
After this business failed, in May 2020 Davis filed a fraudulent PPP application in the name of one of his companies, seeking a $209,510 loan. In support of this application, Davis falsely claimed that he had 20 employees and paid a monthly salary of approximately $83,000 to these employees. He also submitted false documentation to support these fraudulent claims. As a result, Republic Bank approved Davis’ fraudulent application and issued him the PPP loan. Davis immediately began to spend the proceeds on personal expenses, including a new Tesla.
“PPP funds were meant to help small businesses stay afloat during unprecedented adverse circumstances,” said U.S. Attorney Romero. “In fraudulently obtaining these funds and evading taxes, Davis took advantage of taxpayers and took valuable resources away from businesses and individuals who needed them.”
“Anyone contemplating cheating on their taxes should know that IRS Criminal Investigation Special Agents work tirelessly, year-round, to investigate tax and financial crimes,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. "The outcome today is due to the dedicated efforts of IRS Criminal Investigation special agents and our law enforcement partners."
“Christopher Davis blatantly defrauded a government program meant to keep businesses and workers afloat during the pandemic, using the money for his own personal expenses,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “The FBI and our partners will continue to crack down on Covid con artists like Davis and hold them accountable for their actions.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service and is being prosecuted by Assistant United States Attorney Patrick J. Murray.
Armed Career Criminal Sentenced to 19 Years in Prison for Illegal Firearm PossessionRead the Press Release
BIRMINGHAM, Ala. – A federal judge yesterday sentenced an armed career criminal for illegal possession of a firearm, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
U.S. District Court Judge Corey L. Maze sentenced William Wayne Osbourn, 38 of Sylacauga, to 228 months in prison. Osbourn pleaded guilty on March 17, 2023, to unlawfully possessing a Smith & Wesson magnum revolver in October 2021 in Talladega County. Osbourn is prohibited from having a firearm because of multiple prior felony convictions and the sentence pronounced yesterday reflected his status as an Armed Career Criminal. Osbourn was previously convicted on January 25, 2011, in the Circuit Court of Talladega County, Alabama, of the offense of Receiving Stolen Property, First Degree; convicted on March 6, 2012, in the Circuit Court of Talladega County, Alabama, of the offense of Attempted Unlawful Manufacturing of a Controlled Substance, Second Degree; convicted on February 11, 2014, in the Circuit Court of Talladega County, Alabama, of the offense of Unlawful Manufacturing of a Controlled Substance, First Degree; and convicted on September 21, 2015, in the Circuit Court of Calhoun County, Alabama, of the offense of Robbery, First Degree.
“Prosecuting career criminals who possess firearms is an important part of reducing violent crime in this district,” said U.S. Attorney Escalona. “We are grateful for the investigation by the Sylacauga Police Department, Alabama Law Enforcement Agency, and the ATF in bringing this defendant to justice.”
“Today’s announcement is a perfect answer to why we chose to protect and serve the public. Illegal firearm possession and narcotic distribution in our communities is dangerous and damaging to everyone involved in the criminal activity,” said SAC Watson. “ATF will remain in lockstep with our local, state and federal partners in our continuing effort to combat violent crime and maintain public safety.”
The ATF investigated the case along with the Alabama Law Enforcement Agency and the Sylacauga Police Department. Assistant U.S. Attorneys Daniel McBrayer and Brittney Plyler prosecuted the case.
This case is a part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Arizona Couple Sentenced to Three Years Each in Federal Prison for Selling Dried Opium Poppy to Indianapolis ResidentsRead the Press Release
INDIANAPOLIS- Todd Anderson, age 60, and Carolyn Anderson, age 58, of Flagstaff, Arizona, have each been sentenced to three years in federal prison after pleading guilty to distribution of opium poppy and morphine.
According to court documents, from June 2019, through August 2020, the Andersons packaged and shipped hundreds of pounds of poppy straw (dried opium poppy) to Indiana and California for re-distribution by others. The pair used their four businesses, registered in Arizona, to illegally import the poppy from the United Kingdom. Poppy Straw is a Schedule II Controlled Substance that can result in death if improperly ingested. It is highly addictive and can be abused for its opioid effects. An active ingredient in poppy straw is morphine, a powerful opioid that is also a Schedule II controlled substance.
The Anderson’s operated a website that offered “dried poppy pods” for sale in various quantities. Neither Todd or Carolyn, nor their businesses, were registered importers with the DEA to sell any controlled substances, as required by law. There are over a hundred types of poppy plants, but the variety unlawfully imported and sold by Todd and Carolyn Anderson is the only variety designated as a controlled substance. The dried poppy pods and other parts of the plant are often ground up and steeped in hot water to make “poppy tea” containing high amounts of morphine.
On multiple occasions, Carolyn Anderson arranged, via text message, for individuals in Indianapolis and Noblesville to purchase anywhere from 10 to 50 pounds of poppy straw for $125 per pound. The pair instructed buyers to describe their business to authorities as “an Online dried floral business” and labeled packages as containing “dried decorations.”
On August 13, 2020, Todd and Carolyn were arrested at their property in Arizona, where local law enforcement officers recovered 499 kilograms of poppy straw—approximately one half a metric ton. In addition to the poppy straw at their property, agents seized approximately 40 additional kilograms of poppy straw that the Andersons shipped to customers in Indiana and elsewhere.
U.S. Attorney for the Southern District of Indiana, Zachary A. Myers, Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office, and Rodney Hopkins, Postal Inspector in Charge of the U.S. Postal Inspection Service’s Detroit Division made the announcement.
“Illegal opioid abuse and substance use disorders have driven epidemic levels of overdoses and other traumas suffered by our families, friends, and neighbors,” said U.S. Attorney for the Southern District of Indiana, Zachary A. Myers. “The federal prison sentences imposed against these defendants demonstrate that interstate and international drug trafficking schemes carry serious criminal consequences. Our federal prosecutors, along with our outstanding partners in the DEA and USPIS, are committed to making the public safer through investigation and prosecution of those who push dangerous drugs into our communities in search of illicit profits.”
The Drug Enforcement Administration (DEA) and the U.S. Postal Inspection Service (USPIS) investigated this case. The sentences were imposed by U.S. District Court Chief Judge, Tanya Walton Pratt. Judge Pratt also ordered that the two defendants be supervised by the U.S. Probation Office for three years following their release from federal prison and ordered each defendant to pay a $15,000 fine.
U.S. Attorney Myers thanked Assistant United States Attorneys Bradley P. Shepard and William L. McCoskey, who prosecuted this case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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15 June 2023
“Lottery Lawyer” Sentenced to 13 Years in Prison for His Role in Schemes to Defraud Lottery Winner Clients of More Than $100 MillionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JASON KURLAND, a New York lawyer, and CHRISTOPHER CHIERCHIO were sentenced today and yesterday for their participation in schemes to defraud KURLAND’s prominent lottery-winning clients of more than $100 million. KURLAND, who was convicted at trial in July 2022 of wire fraud, honest services wire fraud, money laundering, and conspiracy to commit wire fraud and money laundering, was sentenced to 13 years in prison. CHIERCHIO, who pled guilty to one count of conspiracy to commit wire fraud and money laundering, was sentenced to five years in prison. U.S. District Judge Nicholas G. Garaufis imposed both sentences.
U.S. Attorney Damian Williams said: “The trial of Jason Kurland proved that Kurland violated his solemn duties as a lawyer and as an officer of the Court by stealing and misappropriating more than $100 million from his clients, who were some of the largest lottery winners in U.S. history. Just before trial, Christopher Chierchio pled guilty to assisting Kurland in this fraud, while personally pocketing more than $25 million of the lottery winners’ money. Now, the sentences imposed by Judge Garaufis show that for these defendants who made the lottery winners their victims, their luck has run out, and this Office will prosecute anyone who chooses to engage in fraud – no matter their title or degree.”
According to the Indictment, the evidence presented in court during trial, and other statements made during court proceedings:
Between mid-2018 and mid-2020, KURLAND was a successful partner at a Long Island law firm, earning approximately $500,000 in annual compensation. Through public advertisements and self-promotion, KURLAND built a niche practice representing lottery jackpot winners across the country. KURLAND marketed himself widely in the national media as the “Lottery Lawyer,” touting expertise in counseling individuals and families who had won lotteries and consequently achieved sudden wealth. KURLAND purported to represent dozens of lottery winners throughout the country with total winnings of approximately $3 billion.
Beginning in mid-2018, KURLAND retained three major lottery winners — one won the $1.5 billion Mega Millions lottery, another won the $245 million Powerball jackpot, and the third won the $150 million jackpot (together, the “Lottery Victims”). The Lottery Victims each paid KURLAND and his law firm hundreds of thousands of dollars so that he could advise them on how to safely invest their money. Instead, after gaining their trust, KURLAND steered his clients to invest in various risky businesses that he secretly co-owned and controlled with co-defendants Francis Smookler and Frangesco Russo, among others. In addition to ownership profits from these businesses, KURLAND received undisclosed kickbacks based on a percentage of the Lottery Victims’ investments. The defendants then used the money from the Lottery Victims’ investments to keep their scheme going and to support their lavish lifestyles, purchasing, among other things, expensive vacations and luxury vehicles, including two yachts and a Porsche.
In text messages and intercepted phone calls, KURLAND and his co-defendants brazenly gloated about defrauding the Lottery Victims. For example, when KURLAND learned that he had retained the first Lottery Victim, he texted Russo, “Have to figure out how to have this get to us,” referring to KURLAND’s desire to direct the Lottery Victim’s money to their businesses. KURLAND used the unique attorney-client relationship, which is founded on principles of honesty and loyalty, to his advantage, ensuring that he and his co-defendants secured multimillion-dollar investments. Following a pre-investment client meeting with one Lottery Victim, KURLAND texted Smookler and Russo, “haven’t talked about the investment yet, but I could not have teed it up better[.]” Shortly thereafter, that Lottery Victim invested $5 million in one of the defendants’ businesses without knowledge of KURLAND’s ownership in the business. On a separate occasion, after KURLAND convinced one of the Lottery Victims to unknowingly purchase his and his co-defendants’ entire business for $2 million — a transaction that resulted in a large payout to KURLAND and his co-defendants — KURLAND bragged to Smookler in a text: “Like looking at my bank statement today. Not gonna lie.” Motivated by greed, KURLAND and the co-defendants haphazardly invested the Lottery Victims’ money in high-risk deals, which turned out to be a Ponzi scheme. As it became apparent that their high-risk investments were in peril, KURLAND texted Smookler, “let me know if I’m keeping the Panamera [a Porsche model], or have to go back to my Lexus.” Within a little more than a year, a large portion of the Lottery Victims’ investment capital, totaling more than $40 million, was lost.
In April 2020, in an effort to try to recoup their losses and conceal their fraud from the Lottery Victims, KURLAND, Russo, and Smookler resorted to investing in Personal Protective Equipment (“PPE”) deals. CHIERCHIO was the middleman for the PPE deals. CHIERCHIO quickly capitalized on KURLAND’s precarious situation and need for quick returns, egging him on to “go deep with me here” and promising that KURLAND could “make all [his] losses back.” In turn, KURLAND stole $19.5 million from one of the Lottery Victims’ accounts. Only a portion of this money was ever used for the purported PPE deals while millions of dollars were skimmed off the top by CHIERCHIO and the other co-defendants. In total, KURLAND’s misrepresentations, along with the actions of his co-defendants, caused the Lottery Victims losses in excess of $80 million, as well as an additional $19.5 million that was stolen by KURLAND directly from one of the Lottery Victims.
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In addition to their prison terms, KURLAND, 49, of Dix Hills, New York, and CHIERCHIO, 54, of Queens, New York, were sentenced to three years of supervised release. KURLAND was ordered to pay $64,600,000 in forfeiture, and his restitution will be determined by the Court within 90 days of today’s sentencing. CHIERCHIO was further ordered to pay $26,550,000 in forfeiture and $30,550,000 in restitution.
Mr. Williams praised the work of the Federal Bureau of Investigation on this case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Danielle Kudla, Louis A. Pellegrino, and Olga Zverovich from the Southern District of New York, and Assistant U.S. Attorney Brian Morris from the Eastern District of New York are in charge of the prosecution.
Youngstown Area Attorney Sentenced to Prison for Participating in Scheme to Steal More Than $1.3 Million from the IRSRead the Press Release
YOUNGSTOWN – Robert J. Rohrbaugh, 49, of Canfield, Ohio, was sentenced today to 52 months in prison by U.S. District Judge Bonita Pearson for engaging in a conspiracy to help two men illegally obtain more than $1.3 million from the IRS. Rohrbaugh was also ordered to serve 3 years of community control, pay a $400 special assessment, and pay restitution in the amount of $1,352,779 to the IRS.
“Today’s sentence sends a clear message that if you steal from the public by cheating the IRS, you will be investigated and prosecuted,” said U.S. Attorney Rebecca C. Lutzko, “the United States Attorney’s Office remains committed to ensuring the integrity of our revenue stream funded by good, honest, tax paying citizens.”
“The defendants in this case went to great lengths to steal in excess of $1.3 million from the government,” said Carilyn Peters, Acting Assistant Special Agent in Charge, IRS, Criminal Investigation. “The sentencings in this case reaffirm that if you participate in these types of tax refund fraud schemes, you will likely go to jail.”
Rohrbaugh was convicted of conspiracy to commit offenses against the United States, aiding and abetting theft of government property, aiding and abetting false claims against the United States, and conspiracy to commit money laundering.
According to court documents and evidence presented at trial, Rohrbaugh, a Youngstown-area attorney, assisted co-conspirators Brandon Mace and Terris Chanley Baker with obtaining a tax refund check for a fictitious business in the amount of $1,352,779.
Court documents state that in early 2015, Mace and Baker obtained a bogus tax refund check for a fictitious business by using fabricated tax forms and listing false taxes and expenditures that showed significant tax overpayments. After obtaining the refund check, Mace and Baker then contacted and worked with Rohrbaugh to deposit the check in accounts owned by the defendants.
During the trial, prosecutors presented evidence that Rohrbaugh assisted Mace and Baker with the scheme even though he was aware that the two had obtained the refund from an illegitimate business based on false tax returns.
According to court documents, after cashing the refund check, Mace and Baker attempted to launder the money by purchasing several high-end and luxury vehicles. In addition, evidence showed that Mace and Baker used $150,000 of the refund check to pay Rohrbaugh for his services.
Co-defendant Brandon Mace pleaded guilty in September 2020 to his role in the scheme and was sentenced to 60 months in prison in February 2023. Co-defendant Terris Chanley Baker was convicted by a jury for his role in April 2022 and was sentenced to 98 months in prison in April 2023.
This case was investigated by IRS Criminal Investigation (CI). This case is being prosecuted by Assistant U.S. Attorneys Megan R. Miller and Erica D. Barnhill.
Waynesville, N.C. Man Is Sentenced for Possession of Illegal MachinegunsRead the Press Release
ASHEVILLE, N.C. – Jacob Ryan McClure, 25, of Waynesville, N.C. was sentenced to 33 months in prison today followed by three years of supervised released for possession of machineguns, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Sheriff William Wilke of the Haywood County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to documents filed with the court and today’s sentencing proceedings, on July 6, 2022, deputies with the Haywood County Sheriff’s Office stopped McClure’s vehicle for a traffic violation. Over the course of the traffic stop, law enforcement found in McClure’s vehicle 97 illegal conversion devices, commonly known as “Glock switches,” which are used to convert firearms into machineguns. Law enforcement also seized four P80 pistols, which are privately manufactured firearms referred to as “Ghost guns,” that had been converted into machineguns with illegal Glock switches. Law enforcement also recovered a conventional Glock firearm that also had a Glock switch installed, an unregistered short-barreled 9mm rifle, 10 unregistered firearm silencers, and $3,000 in cash.
According to court records, prior to the incident in Haywood County, in August 2021, McClure was arrested in Tennessee after law enforcement seized from McClure’s vehicle and rental cabin several firearms, including converted machineguns, an unregistered silencer, narcotics, and over $10,000 in cash. The U.S. Attorney’s Office in the Middle District of Tennessee brought federal charges against McClure in connection with this offense. Those charges were later transferred to the U.S. District Court in the Western District of North Carolina.
On March 3, 2023, McClure pleaded guilty to two counts of possession of machineguns in connection with both federal cases. McClure remains in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
U.S. Attorney King thanked the ATF, the Haywood County Sheriff’s Office, and the Dover, Tennessee, Police Department for conducting investigations which led to today’s sentence.
The U.S. Attorney’s Office in Asheville handled the prosecution. U.S. Attorney King also thanked the U.S. Attorney’s Office for the Middle District of Tennessee for their coordination and assistance.
Utica Man Indicted for Federal Drug and Gun OffensesRead the Press Release
SYRACUSE, NEW YORK – Carlos Pena Uceta, age 33, of Utica, New York, was indicted today for possession of a controlled substance with the intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the United States Drug Enforcement Administration (DEA), New York Division, made the announcement.
Pena Uceta was previously charged by a federal complaint on June 5, 2023. He has been detained without bail since he made his initial appearance on June 5 before United States Magistrate Judge Miroslav Lovric.
The indictment and complaint allege that, on June 4, 2023, Pena Uceta possessed over 9 kilograms of cocaine with the intent to distribute. The indictment also alleges that Pena Uceta possessed a 9mm handgun with no serial number (a “ghost gun”) with ammunition in furtherance of his drug trafficking crime.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charges filed against Pena Uceta carry a mandatory minimum sentence of 15 years in prison and a maximum sentence of life, a fine of up to $10,000,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The United States Drug Enforcement Administration (DEA) is investigating the case with assistance from the New York State Police, the City of Utica Police Department, and the Oneida County Sheriff’s Office. Assistant U.S. Attorney Jessica N. Carbone is prosecuting the case.
U.S. Attorney’s Office for the District of Kansas Recognizes World Elder Abuse Awareness DayRead the Press Release
KANSAS CITY, KAN. – United States Attorney Kate E. Brubacher encourages the citizens of Kansas to recognize World Elder Abuse Awareness Day on June 15, 2023, and to remain vigilant on behalf of our older family, friends, and loved ones who are at increased risk of abuse and fraud.
Older persons are at higher risk of exploitation, emotional and physical abuse, neglect, financial frauds, and scams, which can be perpetrated against them by strangers, trusted friends, and family alike. In addition to exploiting close relationships, abusers can contact older adults by phone, email, mail, social media, and the internet. Staying connected with older adults, encouraging trust and transparency regarding their relationships and contacts, and reducing social isolation are some of the most powerful tools in our community arsenal for combatting abuse, neglect, and financial exploitation.
These intentional and negligent acts affect millions of older adults every year, with wide-reaching implications on victims’ physical and emotional health, their finances, and their dignity and sense of trust. Unfortunately, the unprecedented challenges of the opioid epidemic and the COVID-19 pandemic have only exacerbated vulnerabilities that tend to disproportionally impact older adults.
The U.S. Attorney’s Office for the District of Kansas remains steadfastly committed to supporting and coordinating with federal, state, and local law enforcement partners to combat abuse of our elder citizens. Schemes to defraud these citizens with tactics such as social security and tax imposter scams, tech support scams, lottery scams, and romance scams are priorities the Office continues to investigate and prosecute on an ongoing basis.
Last year, in the District of Kansas, Oyindamola Akinrinola was sentenced on November 15, 2022, to six months of imprisonment and two years of supervised release for conspiracy to commit wire fraud.
According to her plea agreement, Arkinrinola participated in a scheme involving Facebook messages from an individual who purported to be with FedEx. Victims were led to believe they won a $130,000 grant and that FedEx would deliver the cash if the victims paid a “case file fee”. When victims said they did not have money to pay the “fee”, they allowed the purported Facebook account holder to purchase iPhones through their Verizon account and mail them to Arkinrinola. Victims also received an image from the Facebook account claiming to be from the IRS and requesting $15,000 before the grant funds were released. The victims never received any of the grant money they supposedly won from FedEx.
Akinrinola also admitted receiving more than $160,000 in deposits related to scams and remitting the majority of money to Nigeria after keeping a portion of the scammed proceeds for herself.
Also, last year a federal grand jury in Topeka indicted a U.S. Army service member for allegedly participating in a scheme to fraudulently obtain approximately $149,476 from at least 25 individuals.
On March 3, 2023, Innocent Ugwu, a U.S Army service member plead guilty to wire fraud to fraudulently obtain approximately $149,476 from victims. According to the plea agreement, Ugwu engaged in a scheme to defraud and to obtain money from victims across the United States. Specifically, Ugwu engaged in a romance and/or advanced fee scheme by falsely claiming there was money internationally that could not be accessed until the victim paid a small amount of taxes; claiming ailments or hardships to entice the victim to transfer money for life saving medical procedures; and also contacted victims pretending to be an attorney and requesting money as a retainer to pursue the fraudsters to recoup the victim's original loss. He then transferred the money to and through multiple bank accounts opened and controlled by him.
Ugwu is scheduled to be sentenced June 20, 2023.
The Department of Justice maintains a robust set of resources to educate yourself and your loved ones about these issues at https://www.justice.gov/elderjustice. If you or someone you know is a victim of elder fraud, please call the National Elder Fraud Hotline at 833–FRAUD–11 (833–372–8311). The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. eastern time. Services are available for speakers of English, Spanish, and other languages. You may also report suspected elder fraud by calling the Denver FBI field office at (303) 629-7171.
World Elder Abuse Awareness Day (WEAAD) was launched by the International Network for the Prevention of Elder Abuse and the World Health Organization at the United Nations in order to raise the public consciousness to these too often underrecognized and underreported violations of human rights.
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U.S. Attorney's Office Observes World Elder Abuse Awareness DayRead the Press Release
CHARLOTTE, N.C. – In observance of World Elder Abuse Awareness Day (WEAAD), U.S. Attorney Dena J. King joined the Justice Department and communities around the world today to condemn elder abuse, neglect, and financial exploitation, and vowed to continue to investigate and prosecute bad actors who seek to exploit and harm older adults.
First recognized on June 15, 2006, by the International Network for the Prevention of Elder Abuse and the World Health Organization at the United Nations, WEAAD aims to promote a better understanding of the abuse and neglect experienced by millions of older adults – crimes that are too often overlooked or unreported. Through this observance, WEAAD brings focus to the cultural, social, economic, and demographic circumstances affecting elder abuse and neglect.
Dena J. King, United States Attorney“Today, we reaffirm our commitment to end elder abuse and to continue to work tirelessly to advocate for older adults and advance the cause of elder justice. On this day and every day, it is important to shine a light on elder abuse, neglect, and exploitation and bring to justice individuals who victimize older adults and rob them of the safety, dignity, and respect they deserve.”
The U.S. Attorney’s Office for the Western District of North Carolina seeks to actively prevent elder abuse and financial exploitation from occurring in the first place. As part of its efforts to prevent elder financial fraud, the Office continues to engage in outreach with the community to educate older adults, their families, and caretakers about scams targeting the elderly, and provide educational material and resources on how to recognize and report elder abuse and financial exploitation and prevent victimization from happening.
Today, the U.S. Attorney’s Office organized a “Walk for Awareness” at Freedom Park in Charlotte, to promote WEAAD and raise public awareness of the fight against elder abuse, neglect, and financial exploitation. U.S. Attorney’s Office personnel, law enforcement partners, AARP volunteers, and members of the community participated in the walk in support of efforts to advance elder justice.
“As prosecutors our job is to bring to justice those who inflict harm on our older population. Equally important is our work in the community and our efforts to actively organize and promote public awareness events centered on the prevention of elder abuse and exploitation, so we can stop older adults from being victimized in the first place,” said U.S. Attorney King.
To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov. To learn more about the Office’s elder justice efforts please visit our website.
Two Jacksonville Compounding Pharmacies and Their Owner Agree to Pay at Least $7.4 Million to Resolve False Claims Act AllegationsRead the Press Release
The Justice Department announced today that Smart Pharmacy, Inc., SP2, LLC, and owner Gregory Balotin have agreed to pay at least $7.4 million to resolve lawsuits filed in Jacksonville, Florida, alleging they violated the False Claims Act by adding the antipsychotic drug aripiprazole to topical compounded pain creams to boost reimbursement and by routinely waiving patient copayment obligations. The settlement amount is based on the defendants’ ability to pay.
“When pharmacies inflate their revenue with medically unsupported prescription ingredients, they compromise the quality of patient care and waste taxpayer dollars,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold accountable those who undermine the integrity of federal healthcare programs for personal profit.”
“A primary mission of the U.S. Attorney’s Office is protecting the Medicare and TRICARE programs from fraud,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “This case exemplifies our commitment to pursue pharmacies and pharmacists who abuse federal healthcare programs at the expense of the taxpayers.”
Aripiprazole, which is sold under the brand names Abilify, Abilify Maintena, and Aristada, is approved by the U.S. Food and Drug Administration to treat a number of psychological conditions such as schizophrenia and Tourette’s disorder. The United States alleged that the defendants crushed aripiprazole pills approved for oral use and included them in compounded creams used topically for pain treatment, while knowing that there was not an adequate clinical basis to do so. The defendants allegedly included the drug in the pain creams to increase their profits on prescriptions paid for by Medicare Part D and TRICARE, the federal health care program for active duty military personnel, retirees, and their families. Both Medicare Part D and TRICARE reimburse pharmacies for the individual ingredients included in compounded drugs, thus defendants increased their reimbursement by adding aripiprazole to the combination of drugs used in their pain creams.
The government also alleged that the defendants improperly waived patient copayments to induce patients to accept the pain cream prescriptions. Although copayments may be waived in certain unique circumstances, such as on the basis of an individualized assessment of a patient’s financial hardship, the defendants allegedly routinely waived copayments without regard to patient need.
In connection with the settlement, Gregory Balotin has agreed to enter into a three-year integrity agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG), which includes an annual claims review by an independent review organization.
“Pharmacies participating in Medicare are obligated to obey laws designed to protect both the integrity of this program and the quality of care provided to patients,” said Special Agent in Charge Omar Pérez Aybar of HHS-OIG. “With our law enforcement partners, our agency is committed to investigating alleged health care fraud to protect both federal health care programs as well as the individuals served by those programs.”
“We are grateful to the U.S. Department of Justice, the U.S. Attorney’s Office, and other state and federal officials for their unwavering commitment to protect taxpayer dollars and safeguard the TRICARE pharmacy benefit,” said Chief Edward C. Norton Jr. of the Defense Health Agency’s Pharmacy Operations Division. “Their efforts ensure our service members, veterans, and their families continue to receive the highest-quality pharmacy benefit commensurate with the service and sacrifice they make for our nation.”
“Health care providers and suppliers that serve our nation’s active duty service members, military retirees, and their families are expected to meet the highest standards of ethical and professional behavior,” said Special Agent in Charge Darrin K. Jones of the Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS and its law enforcement partners will continue to investigate unprincipled health care providers that undermine the integrity of the DoD’s TRICARE program.”
The lawsuits, United States ex rel. Sanchez v. Smart Pharmacy, Inc., et al., No. 14-cv-1453 (M.D. Fla.), and United States ex rel. Kohli v. Smart Pharmacy, Inc., et al., No. 16-cv-387 (M.D. Fla.), were originally filed in the U.S. District Court for the Middle District of Florida by Amy Sanchez and Ashok Kohli, two former employees of Smart Pharmacy. The lawsuits were filed under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over such lawsuits, which the United States did here, in part. The share to be awarded in this case has not been determined.
This matter was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from HHS-OIG, DCIS, the Department of Veterans Affairs Office of Inspector General, the Department of Labor Office of Inspector General, and the Office of Personnel Management Office of Inspector General.
This matter was handled by Assistant U.S. Attorney Collette Cunningham for the Middle District of Florida, Trial Attorneys Nicholas Perros and Jessica Sievert of the Justice Department’s Civil Division, former Civil Division Trial Attorney Holly Snow (now an Assistant U.S. Attorney for the Western District of North Carolina), and former Civil Division Trial Attorney Andrew Jaco (now with the Justice Department’s Criminal Division).
The claims asserted against the defendants are allegations only and there has been no determination of liability.
Two Convicted of Romance and Pandemic Fraud SchemesRead the Press Release
BOSTON – Two Nigerian men were found guilty yesterday by a federal jury in Boston for their roles in expansive online fraud schemes targeting individuals in the United States, including pandemic unemployment assistance fraud, romance scams and other online scams.
Osakpamwan Henry Omoruyi, 37, and Osaretin Godspower Omoruyi, 36, both previously of Canton, were each convicted following an eight-day jury trial of one count of bank fraud, one count of bank fraud conspiracy, and one count of money laundering conspiracy. U.S. District Court Judge Patti B. Saris ordered that the defendants be taken into federal custody pending sentencing, which is scheduled for Sept. 22, 2023. The defendants were charged by criminal complaint in March 2021.
The defendants opened multiple bank accounts in the names of fake people using fraudulent foreign passports. The defendants then used those accounts to receive the proceeds from various frauds perpetrated by their co-conspirators, including pandemic unemployment assistance fraud, romance scams, and other online scams. The majority of the fraud proceeds came from romance scams, which occur when a criminal adopts a fake online identity to gain a victim’s affection and trust. The scammer then uses the illusion of a romantic or close relationship to manipulate and steal from the victim. In total, between 2019 and 2021, the defendants received more than $1.7 million in fraud proceeds and transferred most of the money overseas.The charges of bank fraud and conspiracy to commit bank provide for a sentence of up to 30 years in prison, five years of supervised release, a fine of up to $1 million or twice the gross gain or loss, whichever is greater, and forfeiture. The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $500,000, or twice the value of the criminally derived property, whichever is greater, and forfeiture. 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; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England; and Supervisory Special Agent Gregory Batman, Chief of the U.S. Department of State’s Diplomatic Security Service, Criminal Investigations Division made the announcement. Assistant U.S. Attorneys Christopher J. Markham and Benjamin A. Saltzman of Levy’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Two Chester County Men Indicted for Possession of a Machine GunRead the Press Release
COLUMBIA, SOUTH CAROLINA — A federal grand jury in Columbia returned a single count indictment against Zyquon DeAngelo Hudson, 23, and Ja’Vaughn Lonzell Brown, 22, both of Chester, South Carolina, for possession of a machine gun.
The indictment alleges that on June 24, 2022, Hudson and Brown were in possession of a Glock 9mm pistol that was modified with a “Glock Switch” or “Glock Auto Sear” which allowed the pistol to be fired as a machinegun.
Brown and Hudson face a maximum penalty of 10 years imprisonment.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Chester County Sheriff's Office. Assistant U.S. Attorney Christopher D. Taylor is prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Three Lexington County Defendants Sentenced in Federal Court for Labor Trafficking and Fraud in Foreign Labor ContractingRead the Press Release
COLUMBIA, SOUTH CAROLINA — Enrique Balcazar, 37, and Elizabeth Balcazar, 21,– both of Batesburg – and Balcazar Nature Harvesting, LLC (BNH) have been sentenced in federal court for labor trafficking, confiscating passports in connection with labor trafficking, and fraud in foreign labor contracting.
Evidence presented in Court indicated that Enrique Balcazar and his daughter Elizabeth Balcazar operated BNH, which provided seasonal agricultural labor to farms in the Lexington County area. In early 2021, the defendants incorporated the business and obtained permission from the U.S. Department of Labor (DOL) to recruit foreign national agricultural workers by promising it would provide particular work conditions for its workers.
Elizabeth then travelled to Mexico and recruited 55 Mexican nationals to work for BNH in Lexington County in exchange for those same promises. Each worker obtained an H-2A temporary agricultural worker visa that authorized them to lawfully work in the United States. Elizabeth travelled by bus with the workers back to Lexington County, where she and her father brought the workers to a camp facility in Batesburg where they would live and work for BNH. Enrique and Elizabeth confiscated the workers’ passports and visas the same day they arrived.
From April 2021 to December 2021, BNH subjected the workers to forced and exploitative labor. Rather than the 40 hours of work per week promised, victims were made to work nearly twice that, and some weeks as many as 90 hours. Because BNH only paid victim workers for 40 hours, the workers received no pay at all for a portion of their work. BNH further failed to pay promised wages for the hours they did pay, and they engaged in illegal cost-shifting by requiring workers’ pay for transportation, visas, food, and work equipment.
Workers were also made to work outside of the location BNH promised, and some mornings workers were woken at 3:00 A.M. or 4:00 A.M. to travel to a work site. Workers were returned at 10:00 P.M. or 11:00 P.M., which is when they were provided dinner. The defendants promised to provide three meals a day, but instead they provided two meals a day, for which BNH improperly deducted from worker paychecks.
Enrique used force and coercion to keep workers with BNH, including by threatening deportation, confiscating passports and visas, brandishing and discharging firearms, failing to provide medical care, placing locks on the outside of the facility where workers slept, and by posting armed guards at the camp facility. Workers eventually began to escape and speak with victim service providers, the South Carolina Law Enforcement Division (SLED), and the U.S. Department of Homeland Security (HSI).
In December 2021, a federal search warrant was executed at BNH, where agents seized 23 firearms, ammunition, body armor, at least 9 victim passports from BNH. Following that search, service providers provided victim assistance and DOL investigated workplace conditions.
Federal charges were brought, and Enrique Balcazar pled guilty to Labor Trafficking in violation 18 U.S.C. § 1589 and Passport Confiscation in Furtherance of Labor Trafficking in violation of 18 U.S.C. § 1592. Elizabeth Balcazar and BNH pled guilty to Fraud in Foreign Labor Contracting in violation of 18 U.S.C. § 1351.
United States District Judge Sherri A. Lydon sentenced the defendants, and at sentencing the Court heard from nineteen victims through written victim impact statements.
Enrique Balcazar was sentenced to 40 months in federal prison, $11,332.90 in restitution, 3 years of Court-ordered supervision to follow his term of imprisonment, he will be placed in immigration removal proceedings following imprisonment, and 23 firearms, ammunition, body armor, and more than $32,000 in funds were ordered to be forfeited. There is no parole in the federal system.
Elizabeth Balcazar was sentenced to time served (two months), she was ordered to pay a total of $508,125.89 in restitution to 55 victim workers largely related to unpaid wages, plus 3 years of Court-ordered supervision, 1 year of a curfew, and 100 hours of community service at an organization that serves the immigrant community.
BNH was ordered to pay $508,125.89 in restitution to 55 victim workers, more than $32,000 in business funds were forfeited, and the business was sentenced to 3 years of probation.
“Our office will not tolerate forced labor or the exploitation of foreign national workers in South Carolina,” said U.S. Attorney Adair F. Boroughs. “Human trafficking violates people’s most basic human rights, and the Department will continue to bring every resource we have to combat it. We thank our law enforcement and service provider partners for their critical work in this case.”
“Identifying and stopping those who are involved in labor exploitation not only protects workers from unjust and inhumane treatment, but also prevents unfair competitive advantages that harm the labor market,” said Ronnie Martinez, Special Agent in Charge of HSI Charlotte, which covers North and South Carolina. “Hopefully, the results of this case will encourage others being exploited to come forward and seek help.”
“Victims of labor trafficking deserve justice. Our communities are safe when we show that labor trafficking will not be tolerated in South Carolina,” said SLED Chief Mark Keel. “SLED will continue to work together with local, state and federal law enforcement, as well as prosecutors and other community partners, so the people and businesses that look to harm and exploit these individuals will face consequences.”
“Human trafficking is among the most heinous crimes against workers, especially when employers prey on our society’s most vulnerable members,” said U.S. Department of Labor Wage and Hour Division District Director Jamie Benefiel. “These victim workers traveled far from home to provide for their families and found themselves stripped of their dignity, freedom, and basic human rights. The U.S. Department of Labor and its Wage and Hour Division are engaged in a battle to identify human trafficking, to end the misery it brings, and to hold those who callously engage in it accountable.”
The case was investigated by HSI, SLED, and DOL. Assistant U.S. Attorneys Elliott B. Daniels and Carrie Fisher Sherard prosecuted the case.
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Ten Indicted and Six Arrested in Joint Task Force Alpha Investigation of the Lopez Crime Family Human Smuggling Organization Operating in Guatemala, Mexico, and the United StatesRead the Press Release
ALBUQUERQUE, N.M. – On Thursday, Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Francisco B. Burrola, Special Agent in Charge of Homeland Security Investigations (HSI) El Paso, announced the unsealing of an indictment returned by a federal grand jury on May 24, 2023, and the arrest of, six alleged human smugglers in a coordinated, multistate enforcement operation that included arrests in Arizona and California.
According to the indictment and other court records, Ronaldo Galindo Lopez-Escobar, aka “Tio Roni,” 45, of Guatemala City, Guatemala, and his sister, Rosa Adriana Lopez-Escobar, aka “Tia Rosa,” 38, of Phoenix, and citizens of Guatemala, allegedly led the Lopez Crime Family, a transnational criminal organization principally involved in human smuggling with operations in Guatemala, Mexico, and the United States. The organization smuggled undocumented noncitizens into the United States utilizing a series of coordinated transports, stash houses, and directed electronic money transfers to avoid detection. Rosa Adriana Lopez-Escobar was arrested in Phoenix on June 14, 2023, and is detained pending further proceedings, which have not been scheduled.
Ronaldo Galindo Lopez-Escobar’s family associates, who are alleged to have been involved in moving money through funnel bank accounts and through electronic money transfers on behalf of the organization were also arrested. Deysi Marisela Lopez-Ambrosio, 25, was arrested in Long Beach, California. Both are citizens of Guatemala.
Arrests in Arizona on June 14 also were made of Rosa Adriana Lopez-Escobar’s family and their close associates, who allegedly coordinated the transportation and harboring of the smuggled undocumented noncitizens: Jose Denilson Lopez-Chilel, aka “Andres,” 24, Franklin Leonardo Chilel-Ramirez, aka “Arisona,” 37, and Junior Vanegas-Portillo, 20, citizens of Guatemala.
If convicted, they each face up to ten years in prison and some will be subject to deportation.
Suny Diaz-Salguero, an associate of the Lopez family associate, was also arrested in a related in case in Los Angeles, California.
“Today’s human smuggling organizations prey on the hope of Latin American migrants, targeting those who are most vulnerable for exploitation,” said U.S. Attorney Uballez. “To combat human smuggling we will dismantle networks, arrest leaders, and seize bank accounts. And that is our promise, and our solemn duty to each other and to our neighbors south of the border seeking a better life—this team will tirelessly target those who profit from the misery of others.
“We are grateful to our law enforcement partners for their invaluable contribution to the success of this tri-state enforcement action - a significant joint effort and victory against unscrupulous human smugglers,” said Special Agent in Charge Burrola. “Criminal organizations, such as the Lopez Crime Family, not only jeopardize the safety and lives of the people on whom they prey for profit and greed, they also threaten the security of the United States. HSI remains steadfast in vigorously investigating and dismantling transnational criminal networks that pose a threat to our nation.”
“El Paso Sector Border Patrol Agents continue to successfully disrupt smuggling schemes and the illegal operations of Transnational Criminal Organizations through our law enforcement partnerships,” said El Paso Sector Chief Patrol Agent Anthony Scott Good. “I am grateful for these partnerships at the state, local and federal level and are vital to our National Security Mission. This alliance is successfully disrupting dangerous criminal organizations, their leadership, and their human smuggling schemes.”
JTFA was created by Attorney General Merrick Garland in June 2021 in partnership with the Department of Homeland Security (DHS), to strengthen the Department’s overall efforts to combat these crimes based on the rise in prolific and dangerous smuggling emanating from Central America and impacting our border communities. JTFA’s goal is to disrupt and dismantle those human smuggling and trafficking networks operating in El Salvador, Guatemala, Honduras, and Mexico, with a focus on networks that endanger, abuse or exploit migrants, present national security risks, or engage in other types of transnational organized crime.
Since its creation, JTFA has successfully increased coordination and collaboration between the Justice Department, DHS, and other interagency law enforcement participants, and with foreign law enforcement partners, including El Salvador, Guatemala, Honduras, and Mexico; targeted those organizations who have the most impact on the United States, and coordinated significant smuggling indictments and extradition efforts in U.S. Attorney’s Offices across the country. To date, JTFA’s work with its partners has resulted in criminal charges and over a hundred domestic and international arrests, including against leaders, organizers and significant facilitators of human smuggling activities; several dozen convictions; significant jail sentences imposed; and substantial asset forfeiture. JTFA is comprised of detailees from southwest border U.S. Attorney’s Offices, including the New Mexico, the Southern District of Texas, the Western District of Texas, the District of Arizona, and the Southern District of California, and dedicated support for the program is also provided by numerous components of the Justice Department’s Criminal Division that are part of JTFA – led by the Human Rights and Special Prosecutions Section (HRSP), and supported by the Office of Prosecutorial Development, Assistance, and Training (OPDAT), the Narcotic and Dangerous Drug Section (NDDS), the Money Laundering and Asset Recovery Section (MLARS), the Office of Enforcement Operations (OEO), the Justice Department’s Office of International Affairs (OIA), and the Organized Crime and Gang Section (OCGS). JTFA is made possible by substantial law enforcement investment from HSI, FBI, Drug Enforcement Administration (DEA), and other partners.
HSI New Mexico led U.S. investigative efforts, with enforcement assistance from HSI in Arizona and the Central District of California.HSI received investigative assistance from U.S. Border Patrol Deming, Lordsburg, Blythe, El Centro, Yuma, and Tucson, as well as U.S. Customs and Border Protection’s National Targeting Center/Operation Sentinel, and the Montgomery County Sheriff’s Department. HRSP and MLARS also provided support in this matter.
The case is being handled by Assistant U.S. Attorney Matthew Ramirez for the District of New Mexico. Assistant U.S. Attorney Shawn Nelson for the Central District of California and Stuart Zander for the District of Arizona provided critical support fugitive location and search warrants.
The charges contained in an indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Tax preparers sentenced in tax fraud schemeRead the Press Release
HOUSTON – Three women have received their sentences following their convictions of conspiracy to aid and assist in the preparation of false tax returns, announced U.S. Attorney Alamdar S. Hamdani.
Tamara Turner aka Tamara Owens, Brittany Richardson and Terra White pleaded guilty March 22, Feb. 1 and Feb. 25, respectively. All admitted to their roles in the tax fraud scheme.
Today, U.S. District Judge Sim Lake imposed a 41-month term of imprisonment for Turner to be immediately followed by three years of supervised release. Owens and White must serve two years on probation. All three were also ordered to pay $308,537 in restitution for the losses they colectiovely caused to the tax-paying public.
At the hearing, the court heard additional evidence that scheme ran for roughly four years. In handing down the sentences, Judge Lake commented on the magnitude of the charges, the difficulty in detecting such schemes and importance of protecting the public from these schemes.
“Fraudsters like Turner learn that the real cost of stealing from taxpayers is paid by losing freedom. Return preparers that promise higher returns by committing fraud also shirk their responsibilities by placing the burden on all the other taxpayers,” said Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation’s (CI) Houston Field Office. “Our special agents and investigators are experts at following the money back to the criminals that took it.”
From 2014 to 2018, Turner admitted she owned and operated AJW Taxes and More Tax Preparation Service, located on Westpark Drive in Houston. White and Richardson were employed as tax preparers at various times during the tax season. Turner admitted to submitting fraudulent Schedule C forms and W-2 tax records to the IRS. She inflated her clients personal and business losses to generate larger tax refunds.
Additionally, Turner admitted she routinely submitted altered or fake W-2 forms certifying employment for her clients and qualifying them for Earned Income Tax Credit. She also charged tax preparer fees well in excess of other tax offices that provide the same services.
White and Richardson claimed Turner trained them to submit fraudulent forms to create larger tax refunds for clients. They also admitted to utilizing a unique IRS filing number assigned to other individuals.
Turner was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS-CI conducted the investigation. Assistant U.S. Attorney Thomas Carter prosecuted the case.
Tahlequah Resident Sentenced for Assault with A Dangerous WeaponRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jordan Allen Houston, age 25, of Tahlequah, Oklahoma, was sentenced to 39 months in prison for Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country.
The charges arose from investigations by the Tahlequah Police Department and the Federal Bureau of Investigation.
On July 26, 2022, Houston pleaded guilty to one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country.
On July 1, 2022, while at a friend’s home in Tahlequah, Houston got into an argument. Houston struck the first victim in the side of the head with a pistol, causing an accidental discharge and sending a bullet into the ceiling. When the residents ejected Houston from the house, he fired multiple rounds through the front window and door. Two of those rounds struck a second victim in the chest but were not fatal. Houston committed these crimes in Cherokee County, within the boundaries of the Cherokee Nation Reservation and the Eastern District of Oklahoma.
“Whether violence comes from a stranger or a friend, the harm to individuals and communities is incalculable,” said United States Attorney Christopher J. Wilson. “Together with law enforcement and first responders, we are committed to promoting justice and protecting the peace of our communities against dangerous offenders.”
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 based on 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.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings in Muskogee. Houston will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Zachary W. Parsons represented the United States.