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Wednesday 3 May 2023
Baltimore Cocaine Dealer Sentenced to 11 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher today sentenced Thomas Jones, age 53, of Baltimore, Maryland, to 11 years in federal prison, followed by 11 years of supervised release for conspiracy and for possession with intent to distribute five kilograms of more of cocaine.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration (DEA), Washington Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, in April 2020, DEA investigators with the Baltimore OCDETF Strike Force began an investigation of drug trafficking in West and Northwest Baltimore. During the investigation, Jones was identified as one of the conspirators who agreed to acquire and distribute controlled substances, including cocaine and crack cocaine.
As detailed in his plea agreement, law enforcement overheard calls between Jones and other conspirators discussing the distribution of cocaine and crack cocaine. Jones also met with customers and co-conspirators at his home in the 1600 block of Edmondson Avenue to engage in drug transactions and other drug trafficking activities. On April 29, 2021, law enforcement executed a search warrant at Jones’ home and seized 143 grams of cocaine, 62 grams of crack cocaine, drug packaging material and scales, and $19,965 in cash. Investigators also recovered a .45-caliber pistol, two standard .45-caliber magazines and one extended magazine clip, and 170 rounds of .45-caliber ammunition from Jones’ home. Jones admitted that he planned to distribute the cocaine and that the cash represented proceeds of drug trafficking.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through relationships forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
United States Attorney Erek L. Barron commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys LaRai N. Everett and James T. Wallner, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Alaska Couple Charged in $700,000 Investment Fraud Scheme Based on Fictitious Alaska Marijuana “Bud and Breakfast”Read the Press Release
FAIRBANKS – A federal grand jury in Alaska returned an indictment charging a husband and wife from Delta Junction, Alaska, with conspiracy and wire fraud for perpetrating a years’ long scheme that defrauded nearly two-dozen investors out of over $700,000 dollars.
According to court documents, from 2017 until 2020, Brian Keith Corty, 52, and his wife Candy Corty, 47, used false and fraudulent claims to solicit investors to buy shares of stock in Ice Fog Holdings, LLC, a company purportedly established to grow, extract, develop, manufacture, and sell products in the medical and recreational marijuana markets in Alaska and other future markets. The defendants purchased the Midway Lodge along the Richardson Highway near Delta Junction, Alaska, and represented to investors that their money would be used to turn it into a “Bud and Breakfast” that would be a “marijuana theme park” and include glass ceilings so Ice Fog’s customers could lie in bed and watch the northern lights. Defendants also represented that they would grow, cultivate, and sell marijuana from the location.
The defendants and their co-conspirators made numerous material misrepresentations to Ice Fog investors, including that Ice Fog was already generating income via contracts for security services, that Ice Fog would make over $3.85 million in annual sales by year one; over $13.05 million in annual sales by year two; and over $23.24 million by year three with an expected return to investors of 30 times their initial investment. The defendants also represented that inspectors from the Alaska Marijuana Control Office had performed inspections on the Midway Lodge to create the impression that their application to become a licensed marijuana grow and dispensary was in the final stages of approval. Defendants made these representations while knowing that Ice Fog had no meaningful current or prospective revenue stream and little to no prospect to obtain a license from the Alaska Marijuana Control Office.
Over the course of the scheme, the defendants caused at least 22 individuals to invest in Ice Fog, and raised approximately $722,000 dollars through the sale of “shares” in Ice Fog Holdings, the majority of which the defendants misappropriated for their own personal use.
U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
The Federal Bureau of Investigation is investigating this case with assistance from investigators at the Alaska Department of Law. Assistant U.S. Attorneys Ryan Tansey and Tom Bradley for the District of Alaska are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
45 Minneapolis Gang Members and Associates Indicted on Federal ChargesRead the Press Release
MINNEAPOLIS – Two indictments were unsealed today in the District of Minnesota charging 30 members and associates of two Minneapolis-based street gangs – the Highs and the Bloods – with racketeering (RICO) conspiracy involving alleged murder, attempted murder, robbery, obstruction of justice, and drug trafficking. Additional charges include the use of a firearm to commit murder and drug trafficking. In addition to these indictments, separate charging documents have been brought against an additional 15 Highs or Bloods members on drug and gun charges.
“Today’s announcement marks a fundamental change for federal law enforcement. We are now addressing gang violence for what it is: organized criminal activity,” said U.S. Attorney Andrew Luger. “As alleged, these defendants engaged in an unrelenting trail of violence, resulting in today’s federal RICO charges and related charges. The aggregate nature of a RICO prosecution has a deeper impact and carries a stronger deterrence message, with the ultimate goal of reducing violence and returning peace to our communities.”
“Violent gangs wreak havoc on local residents, engaging in bloody street wars and peddling dangerous drugs that devastate communities and families,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As today’s announcement demonstrates, the Criminal Division is deploying its resources and expertise in close coordination with our partners to target the specific drivers of violent crime and hold gang members and associates accountable for their offenses.”
“When rival gangs declare war on each other in the streets in any city, it is the innocent bystanders that suffer the greatest consequences,” said Director Steven Dettelbach of the ATF. “I want to thank the U.S. Attorney’s Office, the Justice Department’s Criminal Division, the Minneapolis Police Department, the Hennepin County Sheriff’s Office, and all of our law enforcement partners involved in bringing this case.”
“Today's indictment of numerous Highs and Bloods gang members is the result of an exhaustive investigation conducted with our local, state, and federal partners,” Special Agent in Charge Alvin M. Winston Sr. of the FBI Minneapolis Field Office. “No American should be forced to live in perpetual fear of being a victim of violent crime. These arrests demonstrate our efforts are turning the tide against organized crime in the Twin Cities and the upper Midwest.”
“For too long, criminal gangs have wreaked havoc on our streets, leaving in their wake tragedy and trauma that threatens to destroy families, neighborhoods, and communities. When we refrain from utilizing the full force of laws available to hold these bad actors accountable, we allow for this horrific behavior, and its impact on residents, to continue to be normalized. The behavior of these bad actors is outrageous and entirely unacceptable,” said Chief Brian O’Hara of the Minneapolis Police Department. “The most vulnerable in our communities are often those most impacted by gun violence and criminal gang activity. Our most vulnerable residents are entitled to the same protections and safety as everyone else in society. These arrests are just the beginning. For the first time ever, we have embedded Minneapolis police officers in the U.S. Attorney’s Office, and we will continue to develop future cases. Today we are standing shoulder to shoulder with all of law enforcement and making clear that this behavior will not be tolerated. If you intend to engage in violent crimes in our city, we will find you, we will track you down, and we will bring you to justice.”
Highs Enterprise Indictments
Twenty members and associates of the Highs Enterprise are charged in a 12-count indictment with RICO conspiracy involving five separate murders, over 10 attempted murders, robbery, and drug trafficking. Five additional defendants are charged in this indictment with separate drug and gun charges.
As alleged in this indictment, the Highs have been operating primarily in the north side of Minneapolis since approximately 2008. The Highs congregated at specific businesses and residences located at or near the West Broadway Avenue and Lyndale Avenue North intersection. Prospective Highs members proved their loyalty to the gang by “putting in work,” i.e., committing acts of violence for the benefit of the gang or offering other benefits such as introducing a source for drugs or firearms. Highs members were expelled from the gang and physically assaulted for failing to “put in work.” The Highs leaders, or “shot callers,” determined the quantity of drugs bought and sold and the locations where members were permitted to sell the drugs. The shot callers sometimes took the lead in obtaining and distributing firearms to other Highs members.
The indictment alleges a years-long pattern of violence including murders, numerous shootings and acts of retaliation against rival gang members, dealing in fentanyl, and robberies. Between April and September 2021, Highs members are alleged to have committed five murders.
Minneapolis Bloods Enterprise Indictments
Five members and associates of the Minneapolis Bloods charged in a separate indictment, including two who are charged with RICO conspiracy involving two separate murders, over 10 attempted murders, robbery, and drug trafficking. The remaining three defendants are charged with separate drug and gun charges, including using a firearm in a killing for two separate murders.
As alleged in this indictment, the Minneapolis Bloods chapter has been in existence for several decades, controlling and operating territory on the south side of Minneapolis. The hierarchy of the Bloods includes a head or leader of the gang, senior leaders, street-level leaders, and other members or associates. New recruits (called “YGs” or young gangsters) must fight, shoot, or make money to gain respect and increase their position in the gang. The next level in the gang is “OG” (original gangsters), who are well-respected members of the gang, and the highest level is “double OG.” All OGs are equal in rank and can direct “shots” or orders. “Enforcers” carry out the OG’s “shots” or orders by beating or assaulting the offender. Members of the Bloods often wear red clothing, display gang signs, and obtain tattoos that identify the Bloods, its members, or territory.
This indictment alleges a pattern of violence, including a 2020 shootout and murder at the 200 Club in north Minneapolis. In April 2022, Bloods members physically attacked, shot at, and murdered an individual outside of William’s Pub in Uptown. The indictment also alleges other criminal acts, including numerous instances of narcotics trafficking.
The following defendants are charged in the Highs indictment, with all defendants being from Minneapolis, unless otherwise noted below.
- Montez Brown, aka Tez Blood, 31, is charged with RICO conspiracy, conspiracy to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime, possession with intent to distribute fentanyl, and possession of a machinegun in furtherance of a drug trafficking crime.
- Dantrell Johnson, aka Trell Moe, 30, is charged with RICO conspiracy and with using and carrying a firearm in furtherance of murder.
- Gregory Hamilton, aka Lil’ Lord, 27, is charged with RICO conspiracy and using and carrying a firearm in furtherance of murder.
- Keon Pruitt, aka KenKen, 20, is charged with RICO conspiracy and using and carrying a firearm in furtherance of murder.
- Jovan Knight, aka 23, aka JoJo, 23, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Tyreese Giles, aka Reese, 22, is charged with RICO conspiracy.
- Josiah Taylor, aka Joker, 29, is charged with RICO conspiracy, conspiracy to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime.
- Douglas Mobley, aka Nut, 35, of St. Paul, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Jarrett Robinson, aka Gator, 25, is charged with RICO conspiracy.
- Trevaun Robinson, aka Tricky Tre, 27, is charged with RICO conspiracy, conspiracy to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime.
- Isaac Hodge, aka Ike, 46, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Christopher Finch, aka Twin, 22, is charged with RICO conspiracy, conspiracy to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime.
- Tony Jelks, aka BD, 29, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Cortez Blakemore, aka Tez, 33, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Randy Tate, aka “Randy,” aka 32, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Trevoneia Felton, aka Tre, 21, of St. Paul, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Chase Robertson, aka Chase Loco, 25, of St. Paul, is charged with RICO conspiracy, conspiracy to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime.
- Malcolm Samuels, aka Reggie, 24, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- William Banks, aka Bear, 33, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Ronald Washington, aka Black, 36, is charged with RICO conspiracy.
- William Johnson, aka Lil’ Will, 32, is charged with using and carrying a firearm in furtherance of murder.
- Dashaun Morris, aka Mush, 21, is charged with conspiracy to distribute controlled substances.
- Ernest Boyd, aka Shaky Shawn, 42, is charged with conspiracy to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime.
- Maron Bailey, aka Boonie, 25, is charged with conspiracy to distribute controlled substances.
- Isaiah Bell, 20, of St. Paul, is charged with conspiracy to distribute controlled substances.
Additionally, the following defendants are Highs members or associates who were charged in individual indictments:
- Montrell Shief, 23, is charged with being a felon in possession of a firearm and unlawful possession of a machinegun.
- Deon Williams, aka Ghost, 28, is charged with being a felon in possession of a firearm.
- Dennis Mobley, aka Diddy, 34, is charged with being a felon in possession of a firearm.
The following defendants are named in the Bloods indictment:
- Desean James Solomon, aka Black, 33, is charged with RICO conspiracy and two counts of using and carrying a firearm in furtherance of murder.
- Michael Allen Burrell, aka Skitz, 42, is charged with using and carrying a firearm in furtherance of murder.
- Leontawan Lentez Holt, aka Leon, aka Shotta, aka Shot Dog, 25, is charged with using and carrying a firearm in furtherance of murder.
Additionally, the following defendants are Bloods members or associates who were charged separately:
- Theodore Harold Bobo Jr., aka Boo, 37 of St. Paul, is charged with possession with intent to distribute cocaine, being a felon of possession of a firearm and ammunition, and possession of a firearm in furtherance of a drug trafficking crime.
- Jordan Kenneth Edwards, aka J-Bird, 34, is charged with possession with intent to distribute cocaine, being a felon of possession of a firearm and ammunition, and possession of a firearm in furtherance of a drug trafficking crime.
- Isaiah Lamuel Elisha Ferguson, 26, is charged with firearm conspiracy and being a felon in possession of a firearm.
- Josiah Ferguson, 24, is charged with firearm conspiracy and being a felon in possession of a firearm.
- Demarcus Cortez Garner, 24, is charged with being a felon in possession of a firearm and ammunition.
- Andrew Dayjon Griffin, 32, is charged with being a felon in possession of a firearm.
- Obuatawan Holt, aka Bone, 47, is charged with being a felon in possession of a firearm.
- Latoya Bea Smith, 47, is charged with knowingly transferring firearms to a felon.
- John Eric Solomon, aka Eastside, 33 of Minneapolis, is charged with being a felon in possession of a firearm.
- Traigh Sean Tillman, 29, is charged with being a felon in possession of a firearm.
- Nathan Walz, aka Fat Nate, aka Fat Blood, aka Fat Boy, aka White Boy Nate, 34, of Prior Lake, is charged with possession with intent to distribute methamphetamine, being a felon in possession of a firearm, and possession of a firearm in furtherance of a drug trafficking crime.
If convicted, the defendants face a range of penalties, including up to life in prison for racketeering conspiracy involving acts of murder, using a firearm to commit murder, and conspiracy to distribute controlled substances.
The ATF, FBI, Minneapolis Police Department, IRS Criminal Investigation, U.S. Postal Inspection Service, Hennepin County Sheriff’s Office, Minnesota Bureau of Criminal Apprehension, and Minnesota Department of Corrections are investigating the cases, with assistance from the U.S. Marshals Service, DEA, Homeland Security Investigations, and the Hennepin County Attorney’s Office. The Ramsey County Sheriff’s Office, Dakota County Sheriff’s Office, St. Paul Police Department, and numerous other law enforcement agencies contributed to this investigation through reports or evidence control.
Assistant U.S. Attorneys Samantha H. Bates, Justin A. Wesley, Esther Soria Mignanelli, and Joseph S. Teirab for the District of Minnesota and Trial Attorneys Brian W. Lynch and S. Benjamin Tonkin of the Criminal Division’s Organized Crime and Gang Section are prosecuting the cases.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
45 Minneapolis Gang Members and Associates Indicted on Federal ChargesRead the Press Release
Two indictments were unsealed today in the District of Minnesota charging 30 members and associates of two Minneapolis-based street gangs – the Highs and the Bloods – with racketeering (RICO) conspiracy involving alleged murder, attempted murder, robbery, obstruction of justice, and drug trafficking. Additional charges include the use of a firearm to commit murder and drug trafficking. In addition to these indictments, separate charging documents have been brought against an additional 15 Highs or Bloods members on drug and gun charges.
“Violent gangs wreak havoc on local residents, engaging in bloody street wars and peddling dangerous drugs that devastate communities and families,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As today’s announcement demonstrates, the Criminal Division is deploying its resources and expertise in close coordination with our partners to target the specific drivers of violent crime and hold gang members and associates accountable for their offenses.”
“Today’s announcement marks a fundamental change for federal law enforcement. We are now addressing gang violence for what it is: organized criminal activity,” said U.S. Attorney Andrew Luger for the District of Minnesota. “As alleged, these defendants engaged in an unrelenting trail of violence, resulting in today’s federal RICO charges and related charges. The aggregate nature of a RICO prosecution has a deeper impact and carries a stronger deterrence message, with the ultimate goal of reducing violence and returning peace to our communities.”
“When rival gangs declare war on each other in the streets in any city, it is the innocent bystanders that suffer the greatest consequences,” said ATF Director Steven Dettelbach. “I want to thank the U.S. Attorney’s Office, the Justice Department’s Criminal Division, the Minneapolis Police Department, the Hennepin County Sheriff’s Office, and all of our law enforcement partners involved in bringing this case.”
“Today's indictment of numerous Highs and Bloods gang members is the result of an exhaustive investigation conducted with our local, state, and federal partners,” Special Agent in Charge Alvin M. Winston Sr. of the FBI Minneapolis Field Office. “No American should be forced to live in perpetual fear of being a victim of violent crime. These arrests demonstrate our efforts are turning the tide against organized crime in the Twin Cities and the upper Midwest.”
“For too long, criminal gangs have wreaked havoc on our streets, leaving in their wake tragedy and trauma that threatens to destroy families, neighborhoods, and communities. When we refrain from utilizing the full force of laws available to hold these bad actors accountable, we allow for this horrific behavior, and its impact on residents, to continue to be normalized. The behaviors of these bad actors is outrageous and entirely unacceptable,” said Chief Brian O’Hara of the Minneapolis Police Department. “The most vulnerable in our communities are often those most impacted by gun violence and criminal gang activity. Our most vulnerable residents are entitled to the same protections and safety as everyone else in society. These arrests are just the beginning. For the first time ever, we have embedded Minneapolis police officers in the U.S. Attorney’s Office, and we will continue to develop future cases. Today we are standing shoulder to shoulder with all of law enforcement, and making clear that this behavior will not be tolerated. If you intend to engage in violent crimes in our city, we will find you, we will track you down, and we will bring you to justice.”
Highs Enterprise Indictments
Twenty members and associates of the Highs Enterprise are charged in a 12-count indictment with RICO conspiracy involving five separate murders, over 10 attempted murders, robbery, and drug trafficking. Five additional defendants are charged in this indictment with separate drug and gun charges.
As alleged in this indictment, the Highs have been operating primarily in the north side of Minneapolis since approximately 2008. The Highs congregated at specific businesses and residences located at or near the West Broadway Avenue and Lyndale Avenue North intersection. Prospective Highs members proved their loyalty to the gang by “putting in work,” i.e., committing acts of violence for the benefit of the gang or offering other benefits such as introducing a source for drugs or firearms. Highs members were expelled from the gang and physically assaulted for failing to “put in work.” The Highs’ leaders, or “shot callers,” determined the quantity of drugs bought and sold and the locations where members were permitted to sell the drugs. The shot callers sometimes took the lead in obtaining and distributing firearms to other Highs members.
The indictment alleges a years-long pattern of violence including murders, numerous shootings and acts of retaliation against rival gang members, dealing in fentanyl, and robberies. Between April and September 2021, Highs members are alleged to have committed five murders.
Minneapolis Bloods Enterprise Indictments
Five members and associates of the Minneapolis Bloods charged in a separate indictment, including two who are charged with RICO conspiracy involving two separate murders, over 10 attempted murders, robbery, and drug trafficking. The remaining three defendants are charged with separate drug and gun charges, including using a firearm in a killing for two separate murders.
As alleged in this indictment, the Minneapolis Bloods chapter has been in existence for several decades, controlling and operating territory on the south side of Minneapolis. The hierarchy of the Bloods includes a head or leader of the gang, senior leaders, street-level leaders, and other members or associates. New recruits (called “YGs” or young gangsters) must fight, shoot, or make money to gain respect and increase their position in the gang. The next level in the gang is “OG” (original gangsters), who are well-respected members of the gang, and the highest level is “double OG.” All OGs are equal in rank and can direct “shots” or orders. “Enforcers” carry out the OG’s “shots” or orders by beating or assaulting the offender. Members of the Bloods often wear red clothing, display gang signs, and obtain tattoos that identify the Bloods, its members, or territory.
This indictment alleges a pattern of violence, including a 2020 shootout and murder at the 200 Club in north Minneapolis. In April 2022, Bloods members physically attacked, shot at, and murdered an individual outside of William’s Pub in Uptown. The indictment also alleges other criminal acts, including numerous instances of narcotics trafficking.
The following defendants are charged in the Highs indictment, with all defendants being from Minneapolis, unless otherwise noted below.
- Montez Brown, aka Tez Blood, 31, is charged with RICO conspiracy, conspiracy to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime, possession with intent to distribute fentanyl, and possession of a machinegun in furtherance of a drug trafficking crime.
- Dantrell Johnson, aka Trell Moe, 30, is charged with RICO conspiracy and with using and carrying a firearm in furtherance of murder.
- Gregory Hamilton, aka Lil’ Lord, 27, is charged with RICO conspiracy and using and carrying a firearm in furtherance of murder.
- Keon Pruitt, aka KenKen, 20, is charged with RICO conspiracy and using and carrying a firearm in furtherance of murder.
- Jovan Knight, aka JoJo, 23, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Tyreese Giles, aka Reese, 22, is charged with RICO conspiracy.
- Josiah Taylor, aka Joker, 29, is charged with RICO conspiracy, conspiracy to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime.
- Douglas Mobley, aka Nut, 35, of St. Paul, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Jarrett Robinson, aka Gator, 25, is charged with RICO conspiracy.
- Trevaun Robinson, aka Tricky Tre, 27, is charged with RICO conspiracy, conspiracy to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime.
- Isaac Hodge, aka Ike, 46, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Christopher Finch, aka Twin, 22, is charged with RICO conspiracy, conspiracy to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime.
- Tony Jelks, aka BD, 29, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Cortez Blakemore, aka Tez, 33, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Randy Tate, aka Randy, 32, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Trevoneia Felton, aka Tre, 21, of St. Paul, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Chase Robertson, aka Chase Loco, 25, of St. Paul, is charged with RICO conspiracy, conspiracy to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime.
- Malcolm Samuels, aka Reggie, 24, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- William Banks, aka Bear, 33, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Ronald Washington, aka Black, 36, is charged with RICO conspiracy.
- William Johnson, aka Lil’ Will, 32, is charged with using and carrying a firearm in furtherance of murder.
- Dashaun Morris, aka Mush, 21, is charged with conspiracy to distribute controlled substances.
- Ernest Boyd, aka Shaky Shawn, 42, is charged with conspiracy to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime.
- Maron Bailey, aka Boonie, 25, is charged with conspiracy to distribute controlled substances.
- Isaiah Bell, 20, of St. Paul, is charged with conspiracy to distribute controlled substances.
Additionally, the following defendants are Highs members or associates who were charged in individual indictments:
- Montrell Shief, 23, is charged with being a felon in possession of a firearm and unlawful possession of a machinegun.
- Deon Williams, aka Ghost, 28, is charged with being a felon in possession of a firearm.
- Dennis Mobley, aka Diddy, 34, is charged with being a felon in possession of a firearm.
The following defendants are named in the Bloods indictment:
- Desean James Solomon, aka Black, 33, is charged with RICO conspiracy and two counts of using and carrying a firearm in furtherance of murder.
- Michael Allen Burrell, aka Skitz, 42, is charged with using and carrying a firearm in furtherance of murder.
- Leontawan Lentez Holt, aka Leon, aka Shotta, aka Shot Dog, 25, is charged with using and carrying a firearm in furtherance of murder.
Additionally, the following defendants are Bloods members or associates who were charged separately:
- Theodore Harold Bobo Jr., aka Boo, 37 of St. Paul, is charged with possession with intent to distribute cocaine, being a felon of possession of a firearm and ammunition, and possession of a firearm in furtherance of a drug trafficking crime.
- Jordan Kenneth Edwards, aka J-Bird, 34, is charged with possession with intent to distribute cocaine, being a felon of possession of a firearm and ammunition, and possession of a firearm in furtherance of a drug trafficking crime.
- Isaiah Lamuel Elisha Ferguson, 26, is charged with firearm conspiracy and being a felon in possession of a firearm.
- Josiah Ferguson, 24, is charged with firearm conspiracy and being a felon in possession of a firearm.
- Demarcus Cortez Garner, 24, is charged with being a felon in possession of a firearm and ammunition.
- Andrew Dayjon Griffin, 32, is charged with being a felon in possession of a firearm.
- Obuatawan Holt, aka Bone, 47, is charged with being a felon in possession of a firearm.
- Latoya Bea Smith, 47, is charged with knowingly transferring firearms to a felon.
- John Eric Solomon, aka Eastside, 33 of Minneapolis, is charged with being a felon in possession of a firearm.
- Traigh Sean Tillman, 29, is charged with being a felon in possession of a firearm.
- Nathan Walz, aka Fat Nate, aka Fat Blood, aka Fat Boy, aka White Boy Nate, 34, of Prior Lake, is charged with possession with intent to distribute methamphetamine, being a felon in possession of a firearm, and possession of a firearm in furtherance of a drug trafficking crime.
If convicted, the defendants face a range of penalties, including up to life in prison for racketeering conspiracy involving acts of murder, using a firearm to commit murder, and conspiracy to distribute controlled substances.
The ATF, FBI, Minneapolis Police Department, IRS Criminal Investigation, U.S. Postal Inspection Service, Hennepin County Sheriff’s Office, Minnesota Bureau of Criminal Apprehension, and Minnesota Department of Corrections are investigating the cases, with assistance from the U.S. Marshals Service, DEA, Homeland Security Investigations, and the Hennepin County Attorney’s Office. The Ramsey County Sheriff’s Office, Dakota County Sheriff’s Office, St. Paul Police Department, and numerous other law enforcement agencies contributed to this investigation through reports or evidence control.
Trial Attorneys Brian W. Lynch and S. Benjamin Tonkin of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Samantha H. Bates, Justin A. Wesley, Esther Soria Mignanelli, and Joseph S. Teirab for the District of Minnesota are prosecuting the cases.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tuesday 2 May 2023
Young man admits to transporting automatic weapon parts into MexicoRead the Press Release
McALLEN, Texas – A 19-year-old Edinburg resident has pleaded guilty to smuggling goods from the United States, announced U.S. Attorney Alamdar S. Hamdani.
Peter Deshaewn Maldonado-Guillen admitted to attempting to export five AK-47 rifle barrels without a license or written approval.
On Feb. 14, Maldonado-Guillen crossed through the Hidalgo Port of Entry (POE). However, Mexican authorities selected his vehicle for inspection and denied entry into Mexico. He was not in possession of the appropriate documentation for the vehicle and had to return to the United States.
Once back at the Hidalgo POE, he denied having any firearms, but U.S. authorities referred him and his vehicle for secondary inspection.
During a search of the vehicle, law enforcement discovered five AK-47 barrels in the quarter panel area of the vehicle. Maldonado-Guillen admitted to taking possession of the weapon parts in the United States, loading them into his vehicle and transporting the weapon parts into Mexico.
AK-47 barrels are designated as defense articles on the U.S. Munitions List. Maldonado-Guillen did not obtain consent or a license to export the weapon parts into Mexico.
U.S. Chief District Judge Randy Crane will impose sentencing July 13. At that time, Maldonado-Guillen faces up to 10 years in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Jose A. Garcia is prosecuting the case.
Washington man charged for International District drive-by shooting and possession of drugsRead the Press Release
Seattle – A 48-year-old man with ties to Seattle was charged federally with unlawful possession of a firearm and other offenses after he was arrested for a drive-by shooting in Seattle’s International District, announced US Attorney Nick Brown. Phuong Nguyen Le, appeared today on the indictment. In February 2023 Le was allegedly found with fentanyl, heroin, and cocaine base. Le has been in custody in King County and today was brought over for arraignment on the federal charges.
On February 24, 2023, Seattle Police officers responded to reports of shots fired at the intersection of 10th Avenue South and South King Street in Seattle. Witnesses at the scene reported a man in a white Mercedes fired a handgun in the air multiple times at the intersection. SPD officers then located the vehicle nearby and found Phuong Nguyen Le driving, with his girlfriend in the passenger seat. Le was the owner of the vehicle. Le ultimately gave consent to search the vehicle. SPD officers seized the following items:
- a Springfield Armory XD-9 9mm caliber pistol, bearing serial number BY348001, with a round of ammunition in the chamber and a partially loaded magazine;
- an additional Springfield Armory 9mm caliber magazine loaded with ammunition;
- two spent bullet shell casings;
- approximately 83 grams of heroin;
- approximately 135 grams of cocaine;
- approximately 194 grams of suspected fentanyl powder;
- approximately 350 pills suspected to contain fentanyl;
- multiple cloth zipper bags containing approximately $4,400 in mixed denominations;
- various baggies;
- large amounts of handwritten names and phone numbers written on
- various documents;
- A notebook containing names.
In April of 2012, Le was convicted of distribution of cocaine base in U.S. District Court for the Western District of Washington. In September of 2020, Le was sentenced to two years in prison for illegal possession of a firearm and illegal possession of drugs.
Unlawful possession of a firearm is punishable by up to 15 years imprisonment. Possession of a controlled substance with intent to distribute is punishable by up to 40 years imprisonment. Carrying a firearm during and in relation to a drug trafficking crime is punishable by up to life in imprisonment.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Seattle Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is being prosecuted by Assistant United States Attorney Brian Wynne.
Violent Felon Sentenced to 15 Years in Federal Prison for Attempted RobberyRead the Press Release
A Cedar Rapids man who attempted to rob a marijuana dealer and later shot at least twenty‑four times at an apartment building was sentenced on May 1, 2023, to 15 years in federal prison.
Lucas Frank Floyd, age 28, from Cedar Rapids, Iowa, received the prison term after a December 29, 2022 guilty plea to one count of conspiracy to interfere with commerce by robbery.
In a plea agreement, Floyd admitted that, on March 1, 2021, he agreed with others to rob a Cedar Rapids marijuana dealer. Floyd and two others, all carrying firearms, broke into the marijuana dealer’s home and demanded marijuana and money from the dealer. When the dealer told Floyd that he did not have any marijuana or money, Floyd pistol‑whipped the dealer, causing bodily injury to the dealer. Floyd and the two other individuals then left the dealer’s home without taking anything. On March 8, 2021, law enforcement officers conducted a traffic stop on a car in which Floyd was seated in the front‑passenger seat. During the traffic stop, Floyd provided false names and dates of births to officers. During a search of the car, officers recovered three firearms, extended magazines, marijuana, and a black ski mask. The next day, on March 9, 2021, law enforcement officers searched Floyd’s residence and recovered another firearm.
Floyd had previously been convicted of felony offenses in September 2011, May 2012, and December 2012, and he was forbidden from possessing firearms.
Floyd also admitted that, on June 5, 2022, he fired at least twenty‑four shots at an occupied apartment building, striking the apartments in the apartment building at least twenty‑three times, with seventeen bullet holes found inside one of the apartments. The next day, law enforcement officers attempted to arrest Floyd when he jumped out of an apartment window and attempted to flee. Officers eventually arrested Floyd and they recovered the firearm Floyd used to shoot at the apartment building the night before.
Floyd was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Floyd was sentenced to 180 months’ imprisonment, and he was ordered to make $2,500 in restitution to the owner of the apartment building he shot. He must also serve a three‑year term of supervised release after the prison term. There is no parole in the federal system.
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.
Floyd is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-00050.
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United States Files Lawsuit Against Radnor, PA Radiologist Alleging Unnecessary Peripheral Artery ProceduresRead the Press Release
United States Attorney for the Eastern District of Pennsylvania, Jacqueline C. Romero, announced today that the United States has filed a complaint in U.S. District Court under the False Claims Act against Dr. James McGuckin of Radnor, PA, an interventional radiologist, and his affiliated practices and management entities. In its complaint, the United States alleges that McGuckin and his entities billed Medicare and the Federal Employees Health Benefits Program for medically unnecessary invasive peripheral artery procedures in patients’ legs between at least January 1, 2016 and December 31, 2019, and for which McGuckin and his entities were reimbursed at least $6.5 million for over 500 claims. The practice-entity defendants are: (1) Peripheral Vascular Institute of Philadelphia, LLC; (2) Main Line Vascular Institute LLC, of King of Prussia, PA; (3) Lehigh Valley Vascular Institute, LLC, of Bethlehem, PA; and (4) PA Vascular Institute, LLC, of East Stroudsburg, PA. The management-company defendants are Philadelphia Vascular Institute, LLC, and Pennsylvania Vascular Institute, P.C.
“Performing medically unnecessary procedures puts patients at risk and contributes to the soaring costs of health care, especially the invasive vascular procedures alleged in this case,” said U.S. Attorney Romero. “As this litigation demonstrates, we are committed to safeguarding federal health care program beneficiaries and protecting public funds.”
“Medicare rules are designed to protect beneficiaries and taxpayer dollars,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Inspector General, Department of Health and Human Services. “HHS-OIG and the U.S. Attorney's Office will continue to work together to fight health care fraud and investigate allegations of co-pay and kickback violations.” SAC Dixon added: “Anyone with information about health care fraud in this or other cases should contact the HHS-OIG hotline at 1-800-HHS-TIPS (1-800-447-8477) or online at https://oig.hhs.gov/fraud/report-fraud.”
The allegations regarding unnecessary vascular procedures are described in detail in the complaint and include unnecessary angioplasty, atherectomy, and the placement of stents, as well as the indiscriminate use of intravenous ultrasound. Each procedure requires puncturing the skin and inserting devices into and through the arteries in patients’ legs. As the relevant standards of care indicate, unnecessary invasive vascular procedures may cause harm to patients’ health, including increasing their likelihood of needing future procedures, and putting them at greater risk of leg amputations.
As alleged, Dr. McGuckin and Defendants knew from prior administrative sanctioning that unnecessary procedures are contrary to standards of care and federal law. First, in 2015, pursuant to a Consent Decree, McGuckin was sanctioned by the Washington [State] Medical Quality Insurance Commission—and subsequently several other states’ medical boards and Medicaid programs, including Pennsylvania—for improperly performing unnecessary, experimental vascular procedures, including angioplasty and stenting, on hundreds of patients for the purported treatment of Multiple Sclerosis—a non-vascular disease.
Second, in 2018, McGuckin signed a False Claims Act settlement as manager/owner of Vascular Access Centers, L.P. (“VAC”) and related entities, which resolved multi-million dollar qui tam lawsuits in the Southern District of New York and Eastern District of Louisiana. In the settlement, McGuckin, on behalf of his entities, admitted that his entities regularly scheduled, performed, and billed for vascular procedures “even though the patients presented without any documented evidence that they exhibited a need for therapies.” More information on those prior settlements is available here: https://www.justice.gov/usao-sdny/pr/manhattan-us-attorney-announces-settlement-fraudulent-billing-claims-against-vascular; https://www.justice.gov/usao-edla/pr/vascular-access-centers-pay-least-3825-million-resolve-false-claims-act-allegations.
Additionally, in 2019, McGuckin caused VAC to file for bankruptcy in this District—a filing that Bankruptcy Judge Ashely M. Chan found was orchestrated in bad faith. Judge Chan found that McGuckin’s misconduct in connection with the VAC bankruptcy, including making false statements to the Court on behalf of Philadelphia Vascular Institute, LLC, subjected him to sanctions by the Court. See, e.g., In re Vascular Access Centers, L.P., 611 B.R. 742 (Bankr. E.D. Pa 2000), appeal pending.
The current False Claims Act case is captioned United States of America ex rel. Aaron Shiloh, M.D., FSIR v. Philadelphia Vascular Institute and James McGuckin, M.D., Case No. 18-5458 (E.D. Pa.). This lawsuit was originally filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties (called relators) to sue on behalf of the government when they discover evidence that defendants have submitted false claims for government funds and to receive a share of any recovery. If the United States proves that a defendant has knowingly submitted false claims, it is entitled to recover three times the damage that resulted plus a penalty of $13,508 to $27,018 per claim. The False Claims Act also permits the government to intervene in such lawsuits, as it did when it filed a notice of intervention in this case on February 28, 2023.
The relator, Dr. Aaron Shiloh, is an interventional radiologist who worked for and with Defendants. “We sincerely thank the relator in this case. Without people like Dr. Shiloh being willing to shed light on allegations of fraud, preserving government program funds would be far more challenging,” said U.S. Attorney Romero.
The case has been investigated by the U.S. Department of Health and Human Services Office of the Inspector General. The case is being handled by Assistant U.S. Attorneys Lauren DeBruicker and Matthew E. K. Howatt, as well as Auditor Dawn Wiggins and Investigator Frank O’Connor.
All civil claims are allegations only. There has been no determination of civil liability.
U.S. Attorney’s Office Settles Disability Discrimination Lawsuit Against Three Michigan State AgenciesRead the Press Release
Detroit, MI – The United States Attorney’s Office for the Eastern District of Michigan has reached a settlement with the Michigan Department of Treasury, the Michigan Civil Service Commission, and the State of Michigan’s Office of State Employer to resolve a disability discrimination lawsuit.
The lawsuit is based on a disability discrimination claim made by an employee of the Michigan Department of Treasury. In the lawsuit, the U.S. Attorney’s Office describes how the employee needed to complete a medical treatment during work hours and submitted a reasonable accommodation request to use an empty office space for a short time each day. After initially allowing the employee to do so, the Michigan Department of Treasury revoked the accommodation, denying her subsequent requests and requiring the employee to travel back and forth from home during the workday to complete the procedure, until she filed a charge with the U.S. Equal Employment Opportunity Commission. The lawsuit also describes the roles that the Michigan Civil Service Commission and the Office of State Employer play in the reasonable accommodation process for numerous other state agencies.
Under the terms of the settlement agreement, the Michigan Department of Treasury will pay $40,000 in damages to the employee’s estate. As noted in the settlement agreement, the Michigan Civil Service Commission recently revised statewide rules and regulations for employees’ reasonable accommodations. Additionally, the settlement agreement requires the Michigan Department of Treasury, the Michigan Civil Service Commission, and the Office of State Employer to review and revise their respective ADA policies, practices, procedures, and documents. Supervisors at the Michigan Department of Treasury must receive periodic training on the ADA and these revised policies. Staff at the Michigan Civil Service Commission and the Office of State Employer who are involved in reviewing, evaluating, or making decisions on reasonable accommodation requests must attend the same training programs.
“At the heart of this case are the experiences of one employee, who found herself struggling with both a serious health condition and her employer,” said Dawn N. Ison, United States Attorney for the Eastern District of Michigan. “Unfortunately, the employee passed away before the case resolved, but we commend the state agencies involved for taking steps to address her individual case and their commitment to revising broader policies and procedures that will help protect the rights of other state employees who have disabilities.”
The case was brought by Assistant U.S. Attorney Shannon Ackenhausen, Acting Chief of the Civil Rights Unit. The full and fair enforcement of the ADA is a priority of the U.S. Attorney’s Office for the Eastern District of Michigan and the Disability Rights Section of the Justice Department’s Civil Rights Division. The Civil Rights Unit of the U.S. Attorney’s Office was established in 2010 with the mission of prioritizing federal civil rights enforcement. For more information on the Office’s civil rights efforts, including a copy of the court’s opinion and order, please visit https://www.justice.gov/usao-edmi/programs/civil-rights.
Individuals who believe they have been subjected to discrimination or experienced a civil rights violation can submit a complaint with the U.S. Attorney’s Office by email at [email protected] or by phone at (313) 226-9151. Complaints can also be submitted to the Civil Rights Division through its complaint portal.
U.S. Attorney Will Thompson Announces Digital Ad Campaign Targeting Romance Fraud ScamsRead the Press Release
CHARLESTON, W.Va. – A convicted participant in a multimillion-dollar romance fraud scam is helping the Southern District of West Virginia sound the alarm about these schemes, said United States Attorney Will Thompson.
Thompson’s office has launched a digital awareness campaign that features 15- and 30-second public service announcements as well as a long-form video alerting West Virginians to online fraud scams. The campaign focuses on how the elderly population is particularly at risk.
The long-form video includes warnings from Kenneth Emeni, 30, a citizen of Nigeria who admitted to participating in a Huntington-based scheme that defrauded at least 200 victims, many of whom are elderly, of at least $2.5 million. In the video, Emeni explains how false personas were created to establish romantic, friendship or business relationships with unwitting individuals via email, text messaging, online dating websites and social media platforms. Emeni also offers examples of how victims were persuaded to send money for a variety of false and fraudulent reasons for the benefit of the false personas.
“As part of his acceptance of responsibility for his crime, Mr. Emeni agreed to provide a firsthand account of how these scams identify, target and exploit their victims,” Thompson said. “We hope this awareness campaign will help West Virginians safeguard themselves and their loved ones against fraudulent schemes.”
Emeni pleaded guilty to conspiracy to commit money laundering, and was sentenced on December 19, 2022, to one year and one day in prison.
The awareness videos also provide the number for 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, is staffed by experienced professionals who 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 staffed Monday through Friday, 10 a.m. to 6 p.m. Eastern Time. English, Spanish, and other languages are available.
The public is also encouraged to report potential online fraud activity or scams at https://www.ic3.gov.
All three awareness campaign videos are available on the YouTube Channel for the U.S. Attorney’s Office: https://www.youtube.com/@USAOSDWV. The PSA videos will appear over the next two months on YouTube and various social media platforms, apps and websites.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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Two corrections officers charged with violating a prisoner’s civil rightsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two correctional officers from United States Penitentiary Hazelton have been charged with civil rights violations involving the assault of a prisoner.
Robert David Sims, 40, of Bruceton Mills, West Virginia, and Joshua David Sines, 38, of Friendsville, Maryland, were each charged with one count of deprivation of rights and one count of assault with serious bodily injury. According to the indictment, Sims and Sines, while employed by USP Hazelton in Preston County, struck an inmate in the face, head, arms, and torso, causing significant injuries.
If convicted, Sims and Sines each face up to 20 years in prison for the civil rights charge and up to 10 years for the assault charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Department of Justice Office of Inspector General investigated the case.
Assistant U.S. Attorney Brandon Flower is prosecuting the case on behalf of the government.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Pharmacy Owners Charged with $29M Health Care Fraud SchemeRead the Press Release
An indictment was unsealed today in Brooklyn charging two New York men for their alleged participation in a scheme to submit false and fraudulent claims to Medicare and Medicaid for medically unnecessary prescriptions and over-the-counter products that were not actually dispensed, to pay illegal kickbacks and bribes, and to launder the proceeds of their scheme.
According to court documents, Taesung “Terry” Kim, 58, of Purchase, and Dacheng “Bruce” Lu, 44, of Great Neck, partly owned and operated four pharmacies: 888 Pharmacy Inc. and Huikang Pharmacy Inc., located in Brooklyn, and Elmcare Pharmacy Inc. and NY Elm Pharmacy Inc., located in Flushing. Between January 2015 and December 2022, Kim and Lu allegedly conspired with others to submit false and fraudulent claims to Medicare and Medicaid for dispensing pharmaceutical and over-the-counter products that were medically unnecessary, procured by the payment of kickbacks and bribes, or not provided. Further, Kim and Lu allegedly conspired with others who paid illegal kickbacks and bribes, in the form of cash and supermarket gift certificates, to Medicare beneficiaries and Medicaid recipients who filled their prescriptions at their pharmacies. Kim and Lu also conspired with others to pay and paid illegal kickbacks and bribes, in the form of rent and office staff, to the doctors who prescribed the medically unnecessary medications filled at their pharmacies.
Kim and Lu also are alleged to have laundered the proceeds of their fraud through shell entities to generate cash that they could disperse as unrecorded profits to themselves and the pharmacies’ other owners and to pay kickbacks to pharmacy customers. As part of the scheme, Kim and Lu’s pharmacies submitted approximately $29 million in fraudulent claims to Medicare and Medicaid.
Kim and Lu are charged with conspiracy to commit health care fraud, conspiracy to commit money laundering, and conspiracy to pay illegal health care kickbacks and bribes. If convicted, they each face a maximum penalty of 10 years in prison for conspiracy to commit health care fraud, 20 years in prison for conspiracy to commit money laundering, and five years in prison for conspiracy to pay illegal health care kickbacks and bribes.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Breon Peace for the Eastern District of New York, Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office, and Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI and HHS-OIG are investigating the case.
Trial Attorney Patrick J. Campbell and Acting Assistant Chief Miriam Glaser Dauermann of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Men, Including Buffalo Police Detective, Charged for Purchases Made on Illicit Online MarketplaceRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney Trini E. Ross announced today that Terrance Michael Ciszek a/k/a DrMonster, 33, and Corey Robert Dodge a/k/a Cakesbaylor, 41, both of Buffalo, NY, were charged in separate complaints with possessing 15 or more unauthorized access devices. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Charles M. Kruly, who is handling the cases, stated that since August 2018, the FBI has been investigating an illicit online marketplace known as Genesis Market, whose operators compile stolen data, such as computer and mobile device identifiers, email addresses, usernames, and passwords, from malware-infected computers around the globe and package it for sale on the market. Purchases made through Genesis Market are conducted using virtual currency, such as bitcoin.
According to the complaint against defendant Ciszek, a Buffalo Police Detective, between March 16 and July 29, 2020, he purchased 11 packages on Genesis Market that included 194 stolen account credentials. Investigators also determined that Ciszek had bitcoin wallet addresses associated with UniCC, a dark web carding website. Carding websites are illicit marketplaces and/or forums used to share stolen credit card data and discuss techniques for obtaining credit card data, validating it, and using it for criminal activity.
According to the complaint against Dodge, between March 26, 2020, and May 30, 2021, he purchased 14 packages on Genesis Market, that included approximately 8,586 stolen account credentials. The stolen credentials included accounts for Paypal, Tracfone, eBay, Amazon, FedEx, Etsy, Walmart, Chase, Venmo, and eTrade.
Ciszek and Dodge made an initial appearance this afternoon before U.S. Magistrate Judge Michael J. Roemer and were released on conditions. Defendant Ciszek has been suspended with pay by the Buffalo Police Department pending further internal investigation.
The complaints are the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
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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Tampa Area Siblings Sentenced to 15 Years for Series of Convenience Store RobberiesRead the Press Release
Tampa, FL – U.S. District Judge Mary Scriven has sentenced Christopher Alvarez (19, Tampa) and Dyonnie Alvarez (22, Tampa) to 15 years in federal prison for four Hobbs Act robberies, conspiracy to commit those robberies, and two counts of brandishing a firearm during a crime of violence during the commission of the robberies. Dyonnie Alvarez was also sentenced for an additional attempted Hobbs Act robbery. Both had previously pleaded guilty.
According to court documents, on May 5, 2022, Christopher and Dyonnie Alvarez and their codefendant, Enrique Marquez, robbed two convenience stores in the Tampa area. During the robberies, Marquez brandished a firearm. The next morning, the three individuals robbed two more Tampa area convenience stores in the same manner. Also, on May 1, 2022, Marquez and Dyonnie Alvarez attempted to rob an individual in an attempt to obtain narcotics.
Marquez previously pleaded guilty and was sentenced on March 28, 2023, to 17 years and 11 months in federal prison.
This case was investigated by the Hillsborough County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Samantha Newman. The forfeiture was handled by Assistant United States Attorney Suzanne Nebesky.
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.
St. Louis County Man Admits Smuggling WildlifeRead the Press Release
ST. LOUIS – A man from St. Louis County, Missouri on Tuesday admitted smuggling regulated wildlife into the United States.
Michael Amato, 68, pleaded guilty in U.S. District Court in St. Louis to a felony charge of fraudulently importing protected wildlife. He also agreed to forfeit more than six dozen taxidermy bird mounts that were seized from his home on Sept. 1, 2021 as well as bird mounts still in his possession, including owls, buzzards, hawks, eagles, harriers and cranes.
Amato admitted as part of his plea that he and unnamed associates smuggled wildlife into the United States from Malta, England, Germany and other countries without declaring that wildlife and without obtaining the permits required by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). From February 2018 through September 2020, Amato smuggled in 67 different birds.
Some are listed as threatened with extinction, others could become so if their trade is not regulated.
Amato told his international associates how to fill out export/import forms and list the wildlife to avoid law enforcement detection, his plea says.
Amato is scheduled to be sentenced August 8. Both sides have agreed to recommend three years of probation and a $5,000 donation to the World Bird Sanctuary to represent a portion of the market value of the protected wildlife seized from his home.
The case was investigated by the U.S. Fish and Wildlife Service. Assistant U.S. Attorney Dianna Collins is prosecuting the case.
Solano County Hells Angels Member Sentenced to 3 Years in Prison for Firearms OffensesRead the Press Release
SACRAMENTO, Calif. — Michael Mahoney, 30, of Fairfield, was sentenced today to three years and one month in prison for possessing a firearm with an obliterated or altered serial number and possessing an unregistered short-barreled shotgun, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 8, 2021, law enforcement officers executed a search warrant at Mahoney’s home as part of an investigation into a brutal beating at the clubhouse for the Vallejo chapter of the Hells Angels Motorcycle Club. In October 2021, two different victims—both of whom were members of a different motorcycle club that is considered a “puppet” (or subordinate) club of the Hells Angels—were beaten by Mahoney and other club members based on perceived infractions of the Hells Angels’ rules.
During the December 2021 search of Mahoney’s Fairfield home, law enforcement found several firearms, including a Smith & Wesson .38-caliber revolver with a serial number that had been scratched off, as well as a Sears & Roebuck 12-gauge shotgun with a barrel that had been sawn off to approximately 12.75 inches in length. Mahoney had not registered his ownership of this short-barreled shotgun with the National Firearms Registration and Transfer Record, as required by federal law.
This case was the product of an investigation by the Solano County District Attorney’s Office, the Solano County Sheriff’s Office, the Vacaville Police Department, the Vallejo Police Department, the Fairfield Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Aaron D. Pennekamp and Jason Hitt prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice 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.
Shoreline, Washington, man sentenced to 51 months in prison for illegal possession of ammunitionRead the Press Release
Seattle – A 45-year-old Shoreline, Washington man was sentenced today in U.S. District Court in Seattle to 51 months in prison for unlawful possession of ammunition, announced U.S. Attorney Nick Brown. Rustam Yusupov pleaded guilty in February 2023, following his arrest in March of 2022. At today’s sentencing hearing U.S. District Judge John C. Coughenour said the prevalence of guns on the streets is leading “to a bloodbath in this country.”
“Washington State is a pioneer in Red Flag laws designed to keep firearms out of the hands of those who pose a danger,” said U.S. Attorney Nick Brown. “We will never know what motivated Mr. Yusupov to bring high powered firearms and sniper rifles to a downtown hotel. This prosecution means his arsenal has been surrendered to police, and he remains prohibited from purchasing more firearms in the future.”
According to records filed in the case, Seattle Police Officers were called to a downtown Seattle hotel room on March 10, 2022, with reports of a distraught man asking the hotel staff for assistance. When the officers went to the hotel room, they noted that furnishings had been over-tuned, with the mattress moved to block the door. Police found two firearms in the room – including a “ghost gun,” -- a firearm without a serial number.
Due to his agitated state, Yusupov was transported for medical attention. As officers were preparing to leave the hotel, a staff member working in the garage alerted them to weapons he had seen in Yusupov’s car. In the car were multiple firearms – including two additional “ghost guns.” In all, police recovered:
- FMK Firearms Model AR-1 Extreme 5.56 NATO caliber rifle.
- Aero Precision Model X15 5.56 caliber pistol.
- Ruger Model 5.7 5.7x28mm caliber pistol.
- Ruger Model 18029 Precision 6.5mm Creedmoor/.308 Winchester Caliber rifle.
- Kel-Tec Model Sub 2000 9x19mm caliber rifle.
- A North American Arms Corp. Derringer .22 revolver.
- Two Polymer80 9mm caliber pistols with no serial number.
- A skeletonized AR-15 5.56 NATO caliber pistol with no serial number.
In his plea agreement Yusupov admits that he is the subject of a domestic violence protection order. He had been ordered by King County Superior Court to surrender all his weapons. In March 2020 and again in May 2021, Yusupov was ordered to surrender his firearms and had signed paperwork and informed law enforcement that he no longer possessed any firearms.
When law enforcement went to search Yusupov’s home, they found the walls smeared with blood. Testing revealed that it was the blood of a dog. A dog was also found in the home in a kennel, badly malnourished. It was taken to a shelter for care.
The search of the home resulted in the recovery of two inert grenades; a container for 120mm rocket projectiles; hundreds of rounds of assorted ammunition (both handgun and rifle caliber), including 600 rounds of Israel Military Industries 5.56mm caliber ammunition; multiple handguns and rifle magazines (some loaded); assorted pistol slides; a ballistic vest with rifle plates; a bolt-action rifle; and assorted firearms accessories and firearms parts.
Yusupov is forfeiting multiple firearms and ammunition to the government.
The case was investigated by the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF).
The case was prosecuted by Assistant United States Attorney Todd Greenberg.
Roommates of Three-Time Convicted Sex Offender Sentenced to Prison on Child Exploitation OffensesRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody has sentenced Donald Ray Shadowens (30, Clearwater) to 6 years in federal prison for receiving child sex abuse material. On April 19, 2023, Judge Moody sentenced related defendant Craigan Joyner (20, Clearwater) to 5 years and 10 months in federal prison for receiving child sex abuse material. Both Shadowens and Joyner will be required to register as sex offenders and pay restitution to their victims. Shadowens had pleaded guilty on February 8, 2023, and Joyner pleaded guilty on January 11, 2023.
According to court documents, Joshua Tripp, Joyner, and Shadowens all lived together at a residence in Clearwater. On August 18, 2022, investigators executed a search warrant at the residence and discovered more than 1,000 images and videos of child sexual abuse material on the three defendants’ electronic devices. This material included children less than 12 years old and children in sado-masochistic images. Additionally, certain conversations between Tripp and Joyner indicated their desire to drug and rape children.
Tripp pleaded guilty to one count of distributing child sex abuse material and one count of receiving child sex abuse material on March 28, 2023. He is scheduled for sentencing on November 8, 2023.
“These predators openly discussed their desires to drug and rape children and possessed a vast collection of explicit images and videos of children,” said Homeland Security Investigations (HSI) Tampa Assistant Special Agent in Charge Kristopher Pagitt. “HSI, alongside our partners in the Dickson County (Tennessee) Sheriff’s Office, the Clearwater Police Department, and the Pinellas County Sheriff’s Office, are fully committed to making our streets safe from those who sexually exploit children.”
This case was investigated by Homeland Security Investigations (HSI), with substantial assistance from the Dickson County (Tennessee) Sheriff’s Office, the Clearwater Police Department, and the Pinellas County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Erin Claire Favorit.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Registered Nurse Sentenced to 4 Years in Prison for Tampering with and Stealing Painkillers from Detroit HospitalRead the Press Release
DETROIT - A registered nurse was sentenced today to four years in prison after having pleaded guilty to tampering with vials and syringes of a liquid painkiller at the Detroit hospital where she worked, announced United States Attorney Dawn N. Ison.
Joining Ison in the announcement was Ronne Malham, Special Agent in Charge of the Food and Drug Administration (FDA), Office of Criminal Investigations, Chicago Field Office.
Mary Cheatham, 42, of Ypsilanti, Michigan, was sentenced by United States District Judge Mark Goldsmith.
According to court records, in 2020, Cheatham was employed as a licensed registered nurse at a local hospital in Detroit. Cheatham admitted she tampered with vials and syringes containing the painkiller hydromorphone, which she knew were intended to be administered to patients for the purpose of pain relief in the critical care unit of the hospital. She removed the hydromorphone from the vials and syringes, replaced the hydromorphone with saline solution, and returned the adulterated containers knowing they could be administered to patients at the hospital. In total, Cheatham stole 116 vials and syringes of hydromorphone, which she then used on herself.
“Patients in a hospital should be able to rely on receiving their needed medications,” said U.S. Attorney Ison. “We will not hesitate to prosecute health care workers who steal drugs and put patients at serious risk of harm.”
The investigation was conducted by the Food and Drug Administration, Office of Criminal Investigations.
The case was prosecuted by Assistant United States Attorney Regina R. McCullough.
Plaquemine Woman Sentenced to 44 Months for Pandemic Benefits Fraud SchemeRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Brian A. Jackson sentenced Lestreonia Renee Rodrigue, age 28, of Plaquemine, Louisiana, to 44 months in federal prison following her conviction for mail fraud. The Court further sentenced Rodrigue to serve three years of supervised release following her term of imprisonment and ordered her to pay $663,259 in restitution.
Between July 2020 and September 2021, Rodrigue submitted fraudulent claims for unemployment insurance benefits in California in her name and in the names of other individuals. Rodrigue also submitted fraudulent claims for Paycheck Protection Program (“PPP”) benefits in the names of fictitious businesses and based on fictitious business profits and losses.
Through her unemployment insurance scheme, Rodrigue falsely claimed that she and others were working in California prior to the coronavirus pandemic and that they lost their employment due to the pandemic. Rodrigue obtained names, birth dates, and Social Security numbers of others and submitted fraudulent claims for unemployment insurance benefits in their names, with and without their knowledge. Rodrigue captured people’s identifying information through social media. Upon submitting the claims and receiving the funds, she either gave a portion of the funds to others or kept all the funds for herself. Through her scheme, Rodrigue fraudulently obtained hundreds of thousands of dollars in unemployment insurance debit cards in the mail.
Rodrigue also devised a scheme to defraud lenders and the United States, through the Small Business Administration, by filing false and fraudulent applications for PPP funds. In furtherance of the scheme, Rodrigue submitted, or had others submit, forged bank statements, false tax documents, and made misrepresentations in her PPP applications.
Rodrigue also falsely reported bank cards stolen or lost so that she would receive new cards with additional pandemic benefit funds. Throughout the course of the fraudulent schemes, Rodrigue caused over $500,000 in unemployment insurance debit cards to be mailed to her addresses, to which she and others were not entitled. Additionally, Rodrigue caused $20,833 to be deposited into her bank account to which she was not entitled.
This matter was investigated by the Federal Bureau of Investigation and the U.S. Department of Labor-OIG and was prosecuted by Assistant United States Attorney Edward H. Warner.
Pittsburgh Man Sentenced to 130 Months for Committing Heroin and Fentanyl Trafficking and Firearm CrimesRead the Press Release
PITTSBURGH, PA – Michael Ginyard was sentenced to 130 months in prison for committing heroin and fentanyl trafficking and firearm crimes, Acting United States Attorney Troy Rivetti announced today.
Ginyard, age 36 of Pittsburgh, Pennsylvania, was sentenced by United States District Judge Joy Flowers Conti. Judge Conti ordered Ginyard to serve six years of supervised release following his prison sentence.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Pittsburgh Police Department, the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Penn Hills Police Department conducted the investigation in this case. This case was prosecuted as 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 of Justice 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.
Pharmacy Owners Charged with $26 Million Health Care Fraud SchemeRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Taesung “Terry” Kim and Dacheng “Bruce” Lu with perpetrating a health care fraud scheme to submit false and fraudulent claims to Medicare and Medicaid for medically unnecessary prescriptions and over-the-counter products that were not actually dispensed, to pay illegal kickbacks and bribes, and to launder the proceeds of their scheme. The defendants were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Cheryl L. Pollak.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Naomi Gruchacz, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced the arrests and charges.
As set forth in court filings, the defendants owned and operated four pharmacies: 888 Pharmacy Inc. and Huikang Pharmacy Inc., located in Brooklyn, and Elmcare Pharmacy Inc. and NY Elm Pharmacy Inc., located in Queens. Between January 2015 and December 2022, Kim and Lu allegedly conspired with others to submit false and fraudulent claims to Medicare and Medicaid for the dispensing of pharmaceutical and over-the-counter products that were medically unnecessary, procured by the payment of kickbacks and bribes, or not provided. Further, Kim and Lu allegedly conspired with others who paid illegal kickbacks and bribes, in the form of cash and supermarket gift certificates, to Medicare beneficiaries and Medicaid recipients who filled their prescriptions at their pharmacies. Kim and Lu also conspired with others to pay and paid illegal kickbacks and bribes, in the form of rent and office staff, to the doctors who prescribed the medically unnecessary medications filled at their pharmacies.
Kim and Lu allegedly laundered the proceeds of their fraud through shell entities to generate cash that they could disperse as profits to themselves and the pharmacies’ other owners, and to pay pharmacy customers as kickbacks. As part of the scheme, Kim and Lu’s pharmacies submitted approximately $26 million in fraudulent claims to Medicare and Medicaid.
The charges in the indictment are allegations, and the defendants are presumed to be innocent unless and until proven guilty. The defendants each face a maximum penalty of 10 years in prison for conspiracy to commit health care fraud, 20 years in prison for conspiracy to commit money laundering, and five years in prison for conspiracy to pay illegal health care kickbacks and bribes.
Trial Attorney Patrick J. Campbell and Acting Assistant Chief Miriam Glaser Dauermann of the Criminal Division’s Fraud Section are prosecuting the case.
The Defendants:
TAESUNG KIM (also known as “Terry”)
Age: 58
Great Neck, New YorkDACHENG LU (also known as “Bruce”)
Age: 44
Flushing, New YorkE.D.N.Y. Docket Number: 23-CR-191 (ARR)
Owner of Tukwila, Washington Thai restaurant sentenced to 18 months in prison for tax fraud totaling nearly $1 millionRead the Press Release
Seattle – The owner of ‘Simply Thai’ restaurant in Tukwila, Washington, was sentenced today in U.S. District Court in Seattle to 18 months in prison for willful failure to pay over taxes, announced U.S. Attorney Nick Brown. Keovilayvanh Rinthalukay, 62, pleaded guilty in February 2023, admitting that between 2015 and 2019 he withheld Medicare, Social Security, and federal income taxes from his employees’ paychecks, but instead of paying the taxes to the government, he pocketed the money for his own benefit. At the sentencing hearing, U.S. District Judge James L. Robart said the amount withheld “is not a small number – it’s a lot of money. And the defendant didn’t find it necessary to pay his taxes for a number of years – it shows no respect for the law.”
“The failure to turn over payroll taxes is simply theft from employees who trust their employer to make those payments for their future well-being,” said U.S. Attorney Nick Brown. “In this case, Mr. Rinthalukay has committed to aggressively pay back more than $926,000 in tax debt. The prison sentence brings home the need to do right by workers and their future Social Security, Medicare, and federal unemployment benefits.”
According to records filed in the case, between 2015 and 2019, the Tukwila restaurant employed dozens of people. Over that same period the restaurant failed to pay over the taxes withheld from paychecks, as well as the employer’s share of the payroll and federal unemployment taxes. In all, Rinthalukay failed to pay at least $926,092. Instead, he used the money for his personal expenses including buying property, paying private school tuition for his children, and buying a motorcycle. Judge Robart noted at today’s hearing that Rinthalukay currently owns two homes in Western Washington that together are valued at well over $2 million.
As relevant conduct, the government noted that Rinthalukay has not paid his personal federal income taxes since 1998. The IRS is still reviewing that matter.
Prosecutors described Rinthalukay’s history of misconduct in their sentencing memo. “Rinthalukay has a long history of disregard for his tax obligations, both personally and as a business owner. The criminal conduct here is not some momentary aberration but rather part of a decades-long pattern. And his conduct harmed not only the United States Treasury, but also the employees at his restaurant. Employees risk losing credit with the Social Security system when their payroll taxes are not turned over to the IRS,” Assistant U.S. Attorney Philip Kopczynski wrote in the sentencing memo.
“Restaurant employees deal with a lot: long hours, irate customers, and exhausting work. One thing they shouldn’t have to worry about – their employer stealing from them,” said Acting Special Agent in Charge Adam Jobes, IRS Criminal Investigation (IRS:CI), Seattle Field Office. “Mr. Rinthalukay has owned and operated a restaurant for a long time and knows how important it is for his staff to provide good customer service. Today’s sentence is a strong reminder that business owners must play by their own rules and provide good service to their employees. Remitting tax withholdings and not stealing from their workers is a solid start.”
As of today, Rinthalukay has paid $550,000 of the taxes owed. The judgment imposed by Judge Robart will require prompt repayment of the remainder, including having Rinthalukay liquidate assets if needed.
The case was investigated by the Internal Revenue Service Criminal Investigation.
The case was prosecuted by Assistant United States Attorney Philip Kopczynski.
Ohio Man Admits Role in $24 Million Health Care Fraud and Kickback SchemeRead the Press Release
NEWARK, N.J. – An Ohio man and owner of several marketing companies today admitted his role in conspiracies to commit health care fraud and to pay and receive illegal kickbacks, Attorney for the United States Vikas Khanna announced.
Mark Belter, 49, of North Ridgeville, Ohio, pleaded guilty via videoconference before U.S. District Judge Esther Salas to an information charging him with conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
From June 2017 through September 2020, Belter participated in a scheme with pharmacies, telemedicine companies, and doctors to submit false claims to health care benefit programs, including Medicare and TRICARE, based on a circular scheme of kickbacks and bribes. Belter controlled several marketing companies through which he and his conspirators identified Medicare and TRICARE beneficiaries to target for expensive drugs. The marketing companies called beneficiaries to pressure them to agree to try expensive medications, regardless of medical necessity. Belter and others would deliberately conceal the name of the prescribing doctor – whom the beneficiary had never met before – to increase the likelihood that the beneficiary would agree to accept the medications. Portions of the telephone calls were recorded.
Belter and his companies then paid kickbacks to telemedicine companies, which in turn paid kickbacks to doctors, to obtain prescriptions for the medications. Belter transmitted to the telemedicine companies the beneficiaries’ medical information, the telephone call recording, and pre-marked prescription pads for particular drugs that would yield exorbitant reimbursements. Belter, the marketing companies, and the pharmacies with which they had relationships chose particular drugs for the prescriptions largely based on reimbursement amount and not medical need. The doctors paid by the telemedicine companies signed the prescriptions regardless of medical necessity, often without ever speaking to the patient.
Belter and his conspirators then directed the prescriptions to pharmacies with which Belter had additional kickback arrangements. The pharmacies submitted claims for reimbursement to health care benefit programs including Medicare and TRICARE, and thereafter sent a portion of the proceeds to Belter and his companies as payment for the prescriptions generated through the conspiracy. In total, Belter and his conspirators caused the submission of false and fraudulent claims to health care benefit programs totaling in excess of $24 million of prescription drugs. Belter and his companies received kickbacks and bribes totaling more than $6 million in exchange for prescription referrals to a pharmacy located in New Jersey.
The conspiracy charges are each punishable by a maximum of five years in prison, along with fines, restitution, and penalties as to both counts. Both charges are punishable by a fine of $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for Sept. 27, 2023.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Katherine M. Romano of the Health Care Fraud Unit and Barbara Ward, Senior Trial Counsel of the Asset Recovery and Money Laundering Unit, in Newark.
belter.information.pdfOcean County Man Admits Money LaunderingRead the Press Release
NEWARK, N.J. – An Ocean County, New Jersey, man today admitted that he illegally laundered the proceeds of a wire fraud scheme, U.S. Attorney Philip R. Sellinger announced.
Eli Schamovic, 41, of Lakewood, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with money laundering.
According to documents filed in the case and statements made in court:
Schamovic made or caused others to make numerous fraudulent financial transactions through at least two entities that Schamovic formed and established as merchants that used multiple credit card processing companies. These transactions resulted in more than $1 million in losses to a multinational financial services corporation that specialized in payment cards. Schamovic laundered portions of the proceeds of this scheme, including through an approximately $500,000 wire transfer from a bank account under his control.
The charge of money laundering is punishable by a maximum potential penalty of 10 years in prison and a fine $250,000, or twice the gross profits or gross loss suffered by the victims, whichever is greatest. Sentencing is scheduled for Sept. 8, 2023.
U.S. Attorney Sellinger credited postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
schamovic.information.pdfNew Jersey Accountant Pleads Guilty to Tax Fraud SchemeRead the Press Release
A New Jersey certified public accountant (“CPA”) pleaded guilty today to conspiring to defraud the United States by promoting fraudulent tax shelters to high-income clients.
According to court documents and statements made in court, James H. Benkoil of Avon-by-the-Sea, New Jersey, promoted fraudulent syndicated conservation easements in which several investors form a partnership or company to purchase or invest in land, then donate the property for a charitable deduction. The scheme facilitated false claims of inflated charitable contribution tax deductions in connection with the “donation” of the conservation easement over land, allowing Benkoil’s high-income clients to buy deductions to illegally shelter their income from taxation.
Between 2009 and 2020, while working as a CPA, Benkoil and others, promoted such fraudulent syndicated conservation easement tax shelters by obtaining falsely inflated land appraisals to achieve the desired amount of tax deductions. As a part of his guilty plea, Benkoil admitted his conduct resulted in a tax loss to the IRS of nearly $2.5 million and has agreed to pay full restitution.
Benkoil faces a maximum penalty of five years in prison, as well as a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Christopher Magnani and Richard Rolwing of the Justice Department’s Tax Division are prosecuting the case.
Monroe Man Sentenced for $1.1 Million COVID-19 Fraud SchemeRead the Press Release
MONROE, La. - Michael Ansezell Tolliver, 57, of Monroe, Louisiana, has been sentenced by United States District Judge Terry A. Doughty for money laundering in connection with a fraudulent scheme to obtain more than $1.1 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) Program loans. Tolliver was sentenced to 120 months in prison, followed by 3 years of supervised release. In addition, Tolliver was ordered to pay $1,114,724 in restitution.
“The significant sentence handed down today demonstrates that those who steal from COVID-19 relief programs for personal gain will be prosecuted to the fullest extent of the law,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “We remain committed to rooting out bad actors who took advantage of federal programs meant to help those small businesses truly in need.”
“This defendant stole over $1 million through fraudulent means and used those funds to support his own personal lifestyle, taking from those whose legitimate businesses were suffering from losses due to the COVID-19 pandemic,” said U.S. Attorney Brandon B. Brown. “Federal programs such as these are set up to help those in need, not to benefit those who do not. It is a priority for our office to prosecute those who obtain these benefits illegally. We look forward to continued collaboration with the DOJ’s fraud section in aggressively investigating similar crimes related to the COVID-19 pandemic.”
In December 2022, Tolliver pled guilty to one count of money laundering. According to court documents, Tolliver submitted nine fraudulent PPP and EIDL Program loan applications on behalf of several purported companies that Tolliver owned, including Tolliver Oil & Gas Corporation of Louisiana, Inc. and Tolliver Petroleum Corporation of Louisiana. Tolliver falsified information in the loan applications and supporting documents, including falsely claiming that some of his businesses had over 100 employees. He also submitted falsified federal tax returns.
“Mr. Tolliver chose greed over compassion by fraudulently obtaining funds from the PPP and EIDL programs established to assist employers severely impacted by the pandemic,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Tolliver’s sentence today should stand as a warning to those who fraudulently received or may have attempted to fraudulently receive funds intended to help businesses during the COVID epidemic.”
“This result reveals the excellence achieved through the combined efforts of the Small Business Administration (SBA) and the U.S. Attorney’s Office to uncover and forcefully respond to PPP and EIDL fraud,” said Special Counsel Peggy Delinois Hamilton of the SBA. “SBA is strongly committed to identifying and aggressively pursuing instances of fraud perpetrated by those who took advantage of small business emergency relief programs. We applaud the work that our law enforcement partners have done to ensure fraudsters are held accountable.”
In total, Tolliver sought more than $7.6 million in PPP and EIDL Program loans and obtained more than $1.1 million. Tolliver then laundered and misused the loan proceeds, including by transferring the funds to personal bank accounts and purchasing luxury goods. Authorities seized approximately $128,500 from bank accounts, as well as a 2020 Cadillac CT5 sedan, a 2021 GMC Sierra 1500 truck, two Tissot watches, two Tag Heuer watches, and three Honda all-terrain vehicles.
The case was investigated by the IRS-CI and SBA and prosecuted by Assistant Chief Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Seth D. Reeg of the U.S. Attorney’s Office for the Western District of Louisiana.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. Since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
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.
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Massachusetts Man Charged with Possession and Intent to Distribute over Two Pounds of Fentanyl in New HampshireRead the Press Release
CONCORD – A Massachusetts man has been charged in connection with his possession and intent to distribute over two pounds of suspected fentanyl in New Hampshire, U.S. Attorney Jane E. Young announces.
Eddy Antonio Perdomo, 29, appeared before Magistrate Judge Daniel J. Lynch for an initial appearance in federal court on May 1, 2023. Perdomo’s detention hearing is scheduled for May 3, 2023.
According to the charging documents, Perdomo arranged to sell a kilogram of fentanyl to a confidential source in Ashland, New Hampshire on April 29, 2023. The car traveling from Massachusetts, in which Perdomo was a passenger, was stopped in a parking lot in Ashland. Investigators found suspected fentanyl on the floor of the passenger seat, between Perdomo’s feet.
The charge of possession with the intent to distribute fentanyl provides for a sentence of up to 20 years in prison, at least three years of supervised release, and a maximum fine of $1,000,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The U.S. Drug Enforcement Administration led the investigation. Assistant U.S. Attorney Heather A. Cherniske is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Maryland Resident Charged with Preparing and Submitting Numerous Fraudulent Applications for Federal Cares Act Financial AssistanceRead the Press Release
NEW ORLEANS – SIEDAH ELEY, age 30, a former resident of Columbia, Maryland, was charged on May 1, 2023 in a one-count bill of information with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 371 and 1343, for her role in preparing and filing false applications for loans related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), announced U.S. Attorney Duane A. Evans.
According to the bill of information, ELEY recruited friends and family members, primarily via word of mouth and text message, to participate in a scheme to fraudulently obtain money from Paycheck Protection Program (PPP) loans with her assistance. She then electronically created and submitted loan applications, falsely stating that the applicant had a sole proprietorship in the beauty industry that generated substantial income. ELEY charged some applicants up to approximately $5,000.00 once the PPP loan was funded.
ELEY faces a maximum term of imprisonment of five (5) years in prison, up to three years of supervised release, up to a $250,000 fine, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt
For more information on the Department of Justice’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.
U.S. Attorney Evans praised the work of the United States Secret Service in investigating this matter. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Integrity Unit, is in charge of the prosecution.
Marijuana Vending Machine Owner Pleads Guilty to Unlawfully Possessing FirearmRead the Press Release
DETROIT – A man who owned and operated a marijuana vending machine in Detroit has pleaded guilty to being a felon in possession of a firearm, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by James M. Deir, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Detroit Division.
Marcellus Cornwell, 44, of Detroit, entered his guilty plea in front of United States District Judge Stephen J. Murphy, III.
An anonymous tip alerted ATF agents to Cornwell’s marijuana vending machine last spring. Cornwell had been operating the marijuana vending machine for about four years. After an investigation, ATF agents executed a search warrant at Cornwell’s then-residence and discovered ammunition, marijuana, and 18 firearms in a basement gun safe. Cornwell had been previously convicted of identity theft, felony firearm, being a felon in possession of a firearm, and armed robbery, which are all felonies. Three of the guns that Cornwell possessed had had been reported as stolen.
Cornwell faces a maximum sentence of 10 years in prison and/or a fine of $250,000.
“Firearms pose a danger to our community. These weapons should not be in the hands of convicted felons. The number of weapons this defendant possessed despite being a prohibited person combined with his drug dealing makes his conduct even more egregious,” U.S. Attorney Ison said.
“Today’s guilty plea demonstrates ATF’s steadfast commitment to ensuring public safety in Michigan by identifying and holding anyone accountable who illegally acquires and/or possesses a firearm.” ATF Detroit Special Agent in Charge James Deir “Our highly experienced Special Agents, utilized unique information and intelligence programs working side by side our local law enforcement, and U.S. Attorney partners which was critical to the success of today’s case.”
Sentencing is scheduled for September 14, 2023.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Tara Hindelang and Catherine Morris.
Man Sentenced in Methamphetamine ConspiracyRead the Press Release
United States Attorney Steven Russell announced that Taylor Brown, 34, formerly of McCook, Nebraska, and Omaha, Nebraska, was sentenced today in federal court in Lincoln, Nebraska, for conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine. Senior United States District Judge John M. Gerrard sentenced Brown to 63 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a five-year term of supervised release.
From February 2019, through May 2019, law enforcement utilized a confidential informant to purchase methamphetamine from Tina Smith and Taylor Brown for a total of 28 grams. In addition, cooperating witnesses indicated that they purchased four to five ounces from Brown.
Smith was sentenced to 57 months’ imprisonment followed by a three-year term of supervised release.
This case was investigated by the Federal Bureau of Investigation and the McCook Police Department.
Man Sentenced for $1.1M COVID-19 Fraud SchemeRead the Press Release
A Louisiana man was sentenced today to 10 years in prison for money laundering in connection with a fraudulent scheme to obtain more than $1.1 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) Program loans.
“The significant sentence handed down today demonstrates that those who steal from COVID-19 relief programs for personal gain will be prosecuted to the fullest extent of the law,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “We remain committed to rooting out bad actors who took advantage of federal programs meant to help those small businesses truly in need.”
“This defendant stole over $1 million through fraudulent means and used those funds to support his own personal lifestyle, taking from those whose legitimate businesses were suffering from losses due to the COVID-19 pandemic,” said U.S. Attorney Brandon B. Brown for the Western District of Louisiana. “Federal programs such as these are set up to help those in need, not to benefit fraudsters. It is a priority for our office to prosecute those who obtain these benefits illegally. We look forward to continued collaboration with the Criminal Division’s Fraud Section in aggressively investigating similar crimes related to the COVID-19 pandemic.”
According to court documents, Michael Ansezell Tolliver, 57, of Monroe, submitted nine fraudulent PPP and EIDL Program loan applications on behalf of several purported companies that Tolliver owned, including Tolliver Oil & Gas Corporation of Louisiana Inc. and Tolliver Petroleum Corporation of Louisiana. Tolliver falsified information in the loan applications and supporting documents, including falsely claiming that some of his businesses had over 100 employees. He also submitted falsified federal tax returns.
“Mr. Tolliver chose greed over compassion by fraudulently obtaining funds from the PPP and EIDL programs established to assist employers severely impacted by the pandemic,” said Special Agent in Charge James E. Dorsey of the IRS Criminal Investigation (IRS-CI) Atlanta Field Office. “Tolliver’s sentence today should stand as a warning to those who fraudulently received or may have attempted to fraudulently receive funds intended to help businesses during the COVID epidemic.”
“This result reveals the excellence achieved through the combined efforts of the Small Business Administration (SBA) and the U.S. Attorney’s Office to uncover and forcefully respond to PPP and EIDL fraud,” said Special Counsel Peggy Delinois Hamilton of the SBA. “SBA is strongly committed to identifying and aggressively pursuing instances of fraud perpetrated by those who took advantage of small business emergency relief programs. We applaud the work that our law enforcement partners have done to ensure fraudsters are held accountable.”
In total, Tolliver sought more than $7.6 million in PPP and EIDL Program loans and obtained more than $1.1 million. Tolliver then laundered and misused the loan proceeds, including by transferring the funds to personal bank accounts and purchasing luxury goods. Authorities seized approximately $128,500 from bank accounts, as well as a 2020 Cadillac CT5 sedan, a 2021 GMC Sierra 1500 truck, two Tissot watches, two Tag Heuer watches, and three Honda all-terrain vehicles.
The IRS-CI and SBA investigated the case.
Assistant Chief Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Seth D. Reeg for the Western District of Louisiana prosecuted the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at www.justice.gov/criminal-fraud/ppp-fraud.
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 www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Madison Man Sentenced to 30 Months for Receiving Stolen GunRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Aidan Johnson, 20, Madison, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 30 months in federal prison for receiving a stolen firearm. Johnson pleaded guilty to this charge on March 14, 2023. This prison term will be followed by three years of supervised release.
On March 11, 2022, Johnson stole a Glock 19x from another person. Johnson possessed the firearm until June 3, 2022, when he was arrested. Throughout that period, Johnson posted photos and videos on social media of himself with the firearm.
In imposing the 30-month sentence, Judge Peterson balanced Johnson’s youth and potential with the dangers he posed to the community. Judge Peterson described the image that Johnson had been presenting throughout his social media as a “fantasy of this life dealing drugs” and “being a gangster.” In addressing Johnson, Judge Peterson stated that path “is not romantic or a way to have a good life.” Judge Peterson concluded his sentencing with the hope that Johnson finds a “peaceful, kind, and productive way of being in the community.”
The charge against Aidan Johnson was the result of an investigation conducted by the Fitchburg Police Department, the Madison Police Department, the Middleton Police Department, and the Dane County Tactical Response Team. Assistant U.S. Attorneys Kathryn E. Ginsberg and Corey C. Stephan prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Lutz Man Pleads Guilty to Illegally Possessing A FirearmRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Toney Dewayne Salter (31, Lutz) has pleaded guilty to possessing a firearm as a convicted felon. Salter faces a minimum mandatory penalty of 15 years, up to life, in federal prison. A sentencing date has not yet been set. Salter has also agreed to forfeit the firearm traceable to the offense.
According to court documents, on February 21, 2022, officers from the Tampa Police Department encountered Salter when they pulled over a car for a traffic infraction. After detecting an odor of marijuana and observing a firearm in the driver’s possession, the officers searched the vehicle and located a handgun under Salter’s seat. They also located quantities of cocaine and marijuana during the search of the vehicle.
At the time of his arrest, Salter had multiple felony convictions, including convictions for delivery of cocaine and delivery of a controlled substance within 1,000 feet of a church. As such, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Tampa Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney David P. Sullivan. The forfeiture is being handled by Assistant United States Attorney Suzanne C. Nebesky.
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.
Los Angeles Case Part of Largest International Operation Against Darknet Trafficking of Fentanyl and OpioidsRead the Press Release
WASHINGTON – The Department of Justice, and its Joint Criminal Opioid and Darknet Enforcement (JCODE) team and international partners, today announced the results of Operation SpecTor, which included 288 arrests – the most ever for any JCODE operation and nearly double that of the prior operation. Law enforcement also conducted more seizures than any prior operation, including 117 firearms, 850 kilograms of drugs that include 64 kilograms of fentanyl or fentanyl-laced narcotics, and $53.4 million in cash and virtual currencies. Operation SpecTor was a coordinated international effort spanning three continents to disrupt fentanyl and opioid trafficking on the darknet, or dark web. The operation was conducted across the United States, Europe, and South America, and was a result of the continued partnership between JCODE and foreign law enforcement against the illegal sale of drugs and other illicit goods and services on the darknet. Operation SpecTor builds on the successes of prior years’ operations and takedowns of marketplaces, which result in the seizure of darknet infrastructure providing investigators across the world with investigative leads and evidence. JCODE and Europol’s European Cybercrime Centre (EC3) continue to compile intelligence packages to identify entities of interest. These leads allow U.S. and international law enforcement agencies to identify darknet drug vendors and buyers, resulting in a series of coordinated, but separate, law enforcement investigations, resulting in the statistics announced today.
This year’s law enforcement operation was accompanied by a public awareness campaign called Operation ProtecTor aimed to promote public safety and spread awareness of resources for those struggling with substance abuse and who go through extreme lengths to obtain opioids. JCODE has worked with every FBI field office in the country to facilitate outreach to households that have purchased individual amounts of opioids from the darknet. The interagency efforts are aimed to both identify those who use anonymizing technologies to purchase illicit narcotics and direct them to available resources.“Operation SpecTor was a coordinated international law enforcement effort, spanning three continents, to disrupt drug trafficking on the dark web and represents the most funds seized and the highest number of arrests in any coordinated international action led by the Justice Department against drug traffickers on the dark web,” said Attorney General Merrick B. Garland. “Our message to criminals on the dark web is this: You can try to hide in the furthest reaches of the internet, but the Justice Department will find you and hold you accountable for your crimes.”
“The availability of dangerous substances like fentanyl on dark net marketplaces is helping to fuel the crisis that has claimed far too many American lives,” said FBI Director Christopher Wray. “That's why we will continue to join forces with our law enforcement partners around the globe to attack this problem together. The FBI is proud to stand with our domestic and foreign partners as we continue to shine that light into the deepest corners of the dark net and hold those accountable who continue to peddle this poison around the world.”
“The Sinaloa and Jalisco drug cartels, and the global networks they operate are killing Americans by sending fentanyl into the United States. Their associates distribute this fentanyl into communities across America by every means possible, including the dark web,” said DEA Administrator Anne Milgram. “The DEA is committed to shutting down the fentanyl supply chain from beginning to end, and we will relentlessly pursue the associates of these cartels wherever they hide, even in the dark corners of the internet.”
“Our coalition of law enforcement authorities across three continents proves that we all do better when we work together,” said Executive Director Catherine De Bolle of Europol. “This operation sends a strong message to criminals on the dark web: international law enforcement has the means and the ability to identify and hold you accountable for your illegal activities, even on the dark web.”
“Collaboration with our law enforcement partners is key to combatting fentanyl and opioid trafficking,” said Chief Jim Lee of the IRS Criminal Investigation (IRS-CI). “Under the JCODE umbrella, law enforcement agencies across the globe have joined forces to take down criminals who use the darknet to buy and sell narcotics. Our team at IRS-CI plays an integral role in these investigations by following the money trail, whether it’s in fiat currency or digital assets on the blockchain.”
“The illicit movement of opioids poses a significant threat to public health and safety – whether by known transnational criminal gang members across international borders or anonymously through darknet spaces,” said Senior Official Performing the Duties of Deputy Director P.J. Lechleitner of Homeland Security Investigations (HSI). “Our HSI special agents, alongside federal and international partners, continue to aggressively investigate, disrupt, and dismantle networks responsible for trafficking dangerous, deadly narcotics and other contraband across global communities we are charged with protecting. We will continue to pursue bad actors engaged in these crimes to ensure they face justice, while protecting victims from these lethal substances.”
“The U.S. Postal Inspection Service leverages our specialized knowledge of the postal system as part of sophisticated dark web investigations such as Operation SpecTor with great results,” said Chief Postal Inspector Gary R. Barksdale of the U.S. Postal Inspection Service. “We are committed to taking all necessary actions to combat illicit drugs in the mail. And we thank our law enforcement partners for working with us to achieve this; removing dangerous illicit substances from the mail and American communities saves lives.”
“Addressing our nation’s drug overdose crisis and epidemic of substance use disorders is an issue of great concern and remains a top public health priority for the U.S. Food and Drug Administration (FDA),” said Commissioner Robert M. Califf, M.D., of the FDA. “The FDA has undertaken strategic and impactful actions to prevent drug overdoses and reduce deaths and is committed to using all of our cyber-resources to shed light on the darkest corners of illicit medical supply chains for the health and safety of all Americans.”
Operation SpecTor resulted in over 100 federal operations and prosecutions, including:
- On Dec. 1, 2022, Anton Peck, 29, of Boca Raton, Florida, was sentenced to 16 years in prison for conspiring to possess with the intent to distribute controlled substances, including fentanyl, methamphetamine, and heroin. According to court documents, between May 2021 and May 2022, Peck distributed narcotics from various darknet markets using the vendor profile “Syntropy.” After the transactions were carried out using cryptocurrency, Peck and co-conspirators Kevin Fusco and Vincent Banner mailed parcels containing fentanyl, heroin, and methamphetamine to cities around the country using the U.S. Postal Service (USPS). Fusco, 35, of West Palm Beach, Florida, was sentenced to 11 years in prison for conspiring to distribute fentanyl, heroin, and methamphetamine. Banner, 31, of Boynton Beach, Florida, is scheduled to be sentenced on June 8 after pleading guilty to one count of conspiracy to possess with intent to distribute fentanyl, methamphetamine, and heroin. Law enforcement recovered kilogram quantities of fentanyl, cocaine, methamphetamine, and heroin from business and storage locations in West Palm Beach, Boca Raton, and New York City. Peck possessed a list of more than 6,000 customers living across the United States. The DEA, FBI, USPS Office of Inspector General (USPS-OIG), U.S. Postal Inspection Service (USPIS) and the Palm Beach County Sheriff’s Office investigated the case. The U.S. Attorney’s Office for the Southern District of Florida is prosecuting the case.
- On Nov. 18, 2022, a federal grand jury in Los Angeles returned an indictment charging Christopher Hampton, 36, of Cerritos, California, with heading an organization that obtained bulk fentanyl, operated labs in California that used high-speed pill presses to create fake pills containing fentanyl and methamphetamine, and sold millions of pills to thousands of customers on the darknet. Hampton was named in an 11-count indictment that charges him with various narcotics and weapons offenses that could result in a sentence of life in prison. According to court documents, he was active on at least nine darknet marketplaces where he typically used the moniker “Narco710.” Hampton allegedly sold nearly $2 million worth of narcotics on two of these darknet marketplaces alone. He was arrested on Nov. 2, 2022, at which time federal law enforcement executed search warrants that led to the discovery and seizure of 450 pounds of suspected narcotics; six pill press machines, some of which were capable of producing thousands of pills per hour; and illegal firearms that included assault rifles and a machine gun. Agents later located a storage unit linked to the drug conspiracy and seized over 80 pounds of pressed fentanyl pills, eight guns, and precursor materials to press additional pills. Hampton is scheduled to go on trial on July 25. The FBI JCODE and DEA HIDTA Tactical Diversion Squad investigated the case. Los Angeles-based Assistant United States Attorneys Ian Yanniello and James A. Santiago are prosecuting this case.
- On May 12, 2022, a federal grand jury in Sacramento returned a two-count indictment charging Holly Adams, 31, and Devlin Hosner, 33, of Indio, California, with conspiracy to distribute and possess with intent to distribute fentanyl and methamphetamine, and with conspiracy to launder money. According to court documents, Adams and Hosner operated the vendor accounts “igogrrawwr” and “its4real” on the darknet marketplaces ToRReZ and Darkode, respectively, through which they sold tens of thousands of counterfeit oxycodone pills containing fentanyl in exchange for cryptocurrency. Adams and Hosner shipped these fentanyl pills to buyers throughout the United States, using the USPS, UPS, and other means of delivery. In the course of their conspiracy, Adams and Hosner finalized over 1,100 transactions of narcotics and other contraband and received more than $800,000 in cryptocurrency. Federal law enforcement officers executed a search warrant at a hotel in Riverside county where Adams and Hosner were residing and recovered more than 10,000 counterfeit oxycodone pills as well as approximately 60 grams of methamphetamine. The IRS-CI, HSI, FBI, USPIS, and USPS-OIG investigated the case. The U.S. Attorney’s Office for the Eastern District of California is prosecuting the case.
Operation SpecTor was a collaborative initiative across JCODE members, including the Department of Justice, FBI, DEA, USPIS, HSI, IRS-CI, ATF, Naval Criminal Investigative Service (NCIS), and the FDA’s Office of Criminal Investigations. This operation was aided by non-operational supporting participation from the Financial Crimes Enforcement Network (FinCEN) and U.S. Customs and Border Protection (CBP). Local, state, and other federal agencies also contributed to Operation SpecTor investigations through task force participation and regional partnerships. The investigations leading to Operation SpecTor were significantly aided by support and coordination by the Justice Department’s Organized Crime Drug Enforcement Task Forces (OCDETF); multi-agency Special Operations Division; the Criminal Division’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section’s Digital Currency Initiative, Narcotic and Dangerous Drug Section, and Fraud Section; the Justice Department’s Office of International Affairs; Europol and its Dark Web team; and international partners. The international partners include Eurojust; Austria’s Federal Criminal Police Office (Bundeskriminalamt); France’s Directorate-General of Customs and Indirect Taxes (Douane); Germany’s Federal Criminal Police Office (Bundeskriminalamt), Central Criminal Investigation Department of Oldenburg (Zentrale KriminaIinspektion Oldenburg), General Prosecutor’s Office in Frankfurt/Main - Cybercrime Center (Generalstaatsanwaltschaft Frankfurt/Main, Zentralstelle zur Bekämpfung der Internetkriminalität), Berlin Police (Polizei Berlin), various police departments (Dienststellen der Länderpolizeien), German Customs Investigation (Zollfahndungsämter); the Netherland’s National Police (Politie); Poland’s Central Cybercrime Bureau (Centralne Biuro Zwalczania Cyberprzestępczości); Brazil’s Civil Police of the State of Piauí (Polícia Civil do Estado do Piauí), Civil Police of the Federal District (Polícia Civil do Distrito Federal), National Secretariat of Public Security - Directorate of Integrated Operations and Intelligence - Cyber Operations Laboratory (Laboratório de Operações Cibernéticas da Diretoria de Operações Integradas e de Inteligência - Secretaria Nacional de Segurança Pública); Switzerland’s Zurich Cantonal Police (Kantonspolizei Zürich) and Public Prosecutor’s Office II of the Canton of Zurich (Staatsanwaltschaft II); and the United Kingdom’s National Crime Agency (NCA) and National Police Chief’s Council (NPCC).
Federal investigations and prosecutions are being conducted in more than 30 federal districts, including the District of Arizona, the Central District of California, the Eastern District of California, the Northern District of California, the Southern District of California, the District of Colorado, the District of Connecticut, the District of Columbia, the District of Delaware, the Southern District of Florida, the Northern District of Georgia, the Southern District of Indiana, the Eastern District of Kentucky, the District of Maryland, the District of Massachusetts, the Eastern District of Michigan, the Western District of Michigan, the Eastern District of Missouri, the Western District of Missouri, the District of Nebraska, the District of Nevada, the District of New Jersey, the Eastern District of New York, the Southern District of New York, the Western District of North Carolina, the Northern District of Ohio, the Southern District of Ohio, the Eastern District of Pennsylvania, the Middle District of Pennsylvania, the District of South Dakota, the Eastern District of Tennessee, the Eastern District of Texas, the Northern District of Texas, the Southern District of Texas, the District of Vermont, the Eastern District of Virginia, and the Western District of Washington.
The Justice Department established the FBI-led JCODE team to lead and coordinate government efforts to detect, disrupt, and dismantle major criminal enterprises reliant on the darknet for trafficking opioids and other illicit narcotics, along with identifying and dismantling their supply chains.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Leader and others sent to federal prison for operating Houston stash houseRead the Press Release
HOUSTON – A total of five people, all illegally residing in Houston, have been sentenced in connection with the April 2021 discovery of nearly 100 undocumented aliens in a suburban Houston residence, announced U.S. Attorney Alamdar S. Hamdani.
The leader in the conspiracy - Henry Licona-Larios, 34, Copan, Honduras - pleaded guilty May 24, 2022.
Today, U.S. District Judge Keith Ellison ordered him to serve 41 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment.
At the hearing, the court heard additional evidence that detailed the inhumane conditions to which these undocumented aliens were subjected and that Licona-Larios was connected to an additional stash house discovered in December 2020. In handing down the sentence, the court noted the seriousness of the offense and Licona-Larios’s verbal and physical mistreatment of the undocumented aliens.
Four others had also pleaded guilty for their respective roles and were previously sentenced. Those included Marina Garcia-Diaz, 24, San Miguel, El Salvador, who received 27 months as well as Marcelo Garcia-Palacios, 23, Oaxaca, Mexico; Kevin Licona-Lopez, 27, Santa Barbara, Honduras; and Marco Baca-Perez, 22, Michoacan, Mexico, all of whom were ordered to serve 30 months. All are also expected to face removal proceedings.
“You cannot trust a human smuggler. Giving them money will put your life in danger,” said Hamdani. “These five people preyed on the desperation of foreign nationals hoping to get into the country. This sentence makes it clear - we will not allow the victimization of people for profit.”
The investigation began April 30, 2021, when authorities learned of a kidnapping. A woman reported that she had paid several thousand dollars for her brother to be smuggled into the country.
However, the smugglers demanded more money before they would release him. They also threatened to harm him if the money was not paid.
The investigation led to a residence on Chessington Drive in Southwest Houston. There, authorities ultimately found 97 illegal aliens held in two rooms of the residence. The rooms had deadbolts on the doors facing the outside which prevented escape. All of the male individuals were in their undergarments. One was told if the money was not paid, he would be put in “4 pieces of wood.”
All five have been and will remain in custody.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Karen M. Lansden prosecuted the case.
Largest International Operation Against Darknet Trafficking of Fentanyl and Opioids Results in Record Arrests and SeizuresRead the Press Release
Today, the Department of Justice, and its Joint Criminal Opioid and Darknet Enforcement (JCODE) team and international partners, announced the results of Operation SpecTor, which included 288 arrests – the most ever for any JCODE operation and nearly double that of the prior operation. Law enforcement also conducted more seizures than any prior operation, including 117 firearms, 850 kilograms of drugs that include 64 kilograms of fentanyl or fentanyl-laced narcotics, and $53.4 million in cash and virtual currencies.
Operation SpecTor was a coordinated international effort spanning three continents to disrupt fentanyl and opioid trafficking on the darknet, or dark web. The operation was conducted across the United States, Europe, and South America, and was a result of the continued partnership between JCODE and foreign law enforcement against the illegal sale of drugs and other illicit goods and services on the darknet. Operation SpecTor builds on the successes of prior years’ operations and takedowns of marketplaces, which result in the seizure of darknet infrastructure providing investigators across the world with investigative leads and evidence. JCODE and Europol’s European Cybercrime Centre (EC3) continue to compile intelligence packages to identify entities of interest. These leads allow U.S. and international law enforcement agencies to identify darknet drug vendors and buyers, resulting in a series of coordinated, but separate, law enforcement investigations, resulting in the statistics announced today.
This year’s law enforcement operation was accompanied by a public awareness campaign called Operation ProtecTor aimed to promote public safety and spread awareness of resources for those struggling with substance abuse and who go through extreme lengths to obtain opioids. JCODE has worked with every FBI field office in the country to facilitate outreach to households that have purchased individual amounts of opioids from the darknet. The interagency efforts are aimed to both identify those who use anonymizing technologies to purchase illicit narcotics and direct them to available resources.
“Operation SpecTor was a coordinated international law enforcement effort, spanning three continents, to disrupt drug trafficking on the dark web and represents the most funds seized and the highest number of arrests in any coordinated international action led by the Justice Department against drug traffickers on the dark web,” said Attorney General Merrick B. Garland. “Our message to criminals on the dark web is this: You can try to hide in the furthest reaches of the internet, but the Justice Department will find you and hold you accountable for your crimes.”
“The availability of dangerous substances like fentanyl on dark net marketplaces is helping to fuel the crisis that has claimed far too many American lives,” said FBI Director Christopher Wray. “That's why we will continue to join forces with our law enforcement partners around the globe to attack this problem together. The FBI is proud to stand with our domestic and foreign partners as we continue to shine that light into the deepest corners of the dark net and hold those accountable who continue to peddle this poison around the world.”
“The Sinaloa and Jalisco drug cartels, and the global networks they operate are killing Americans by sending fentanyl into the United States. Their associates distribute this fentanyl into communities across America by every means possible, including the dark web,” said DEA Administrator Anne Milgram. “The DEA is committed to shutting down the fentanyl supply chain from beginning to end, and we will relentlessly pursue the associates of these cartels wherever they hide, even in the dark corners of the internet.”
“Our coalition of law enforcement authorities across three continents proves that we all do better when we work together,” said Executive Director Catherine De Bolle of Europol. “This operation sends a strong message to criminals on the dark web: international law enforcement has the means and the ability to identify and hold you accountable for your illegal activities, even on the dark web.”
“Collaboration with our law enforcement partners is key to combatting fentanyl and opioid trafficking,” said Chief Jim Lee of the IRS Criminal Investigation (IRS-CI). “Under the JCODE umbrella, law enforcement agencies across the globe have joined forces to take down criminals who use the darknet to buy and sell narcotics. Our team at IRS-CI plays an integral role in these investigations by following the money trail, whether it’s in fiat currency or digital assets on the blockchain.”
“The illicit movement of opioids poses a significant threat to public health and safety – whether by known transnational criminal gang members across international borders or anonymously through darknet spaces,” said Senior Official Performing the Duties of Deputy Director P.J. Lechleitner of Homeland Security Investigations (HSI). “Our HSI special agents, alongside federal and international partners, continue to aggressively investigate, disrupt, and dismantle networks responsible for trafficking dangerous, deadly narcotics and other contraband across global communities we are charged with protecting. We will continue to pursue bad actors engaged in these crimes to ensure they face justice, while protecting victims from these lethal substances.”
“The U.S. Postal Inspection Service leverages our specialized knowledge of the postal system as part of sophisticated dark web investigations such as Operation SpecTor with great results,” said Chief Postal Inspector Gary R. Barksdale of the U.S. Postal Inspection Service. “We are committed to taking all necessary actions to combat illicit drugs in the mail. And we thank our law enforcement partners for working with us to achieve this; removing dangerous illicit substances from the mail and American communities saves lives.”
“Addressing our nation’s drug overdose crisis and epidemic of substance use disorders is an issue of great concern and remains a top public health priority for the U.S. Food and Drug Administration (FDA),” said Commissioner Robert M. Califf, M.D., of the FDA. “The FDA has undertaken strategic and impactful actions to prevent drug overdoses and reduce deaths and is committed to using all of our cyber-resources to shed light on the darkest corners of illicit medical supply chains for the health and safety of all Americans.”
Operation SpecTor resulted in over 100 federal operations and prosecutions, including:
- On Dec. 1, 2022, Anton Peck, 29, of Boca Raton, Florida, was sentenced to 16 years in prison for conspiring to possess with the intent to distribute controlled substances, including fentanyl, methamphetamine, and heroin. According to court documents, between May 2021 and May 2022, Peck distributed narcotics from various darknet markets using the vendor profile “Syntropy.” After the transactions were carried out using cryptocurrency, Peck and co-conspirators Kevin Fusco and Vincent Banner mailed parcels containing fentanyl, heroin, and methamphetamine to cities around the country using the U.S. Postal Service (USPS). Fusco, 35, of West Palm Beach, Florida, was sentenced to 11 years in prison for conspiring to distribute fentanyl, heroin, and methamphetamine. Banner, 31, of Boynton Beach, Florida, is scheduled to be sentenced on June 8 after pleading guilty to one count of conspiracy to possess with intent to distribute fentanyl, methamphetamine, and heroin. Law enforcement recovered kilogram quantities of fentanyl, cocaine, methamphetamine, and heroin from business and storage locations in West Palm Beach, Boca Raton, and New York City. Peck possessed a list of more than 6,000 customers living across the United States. The DEA, FBI, USPS Office of Inspector General (USPS-OIG), U.S. Postal Inspection Service (USPIS) and the Palm Beach County Sheriff’s Office investigated the case. The U.S. Attorney’s Office for the Southern District of Florida is prosecuting the case.
- On Nov. 18, 2022, a federal grand jury returned an indictment charging Christopher Hampton, 36, of Cerritos, California, with heading an organization that obtained bulk fentanyl, operated labs in California that used high-speed pill presses to create fake pills containing fentanyl and methamphetamine, and sold millions of pills to thousands of customers on the darknet. Hampton was named in an 11-count indictment that charges him with various narcotics and weapons offenses that could result in a sentence of life in prison. According to court documents, he was active on at least nine darknet marketplaces where he typically used the moniker “Narco710.” Hampton allegedly sold nearly $2 million worth of narcotics on two of these darknet marketplaces alone. He was arrested on Nov. 2, 2022, at which time federal law enforcement executed search warrants that led to the discovery and seizure of 450 pounds of suspected narcotics; six pill press machines, some of which were capable of producing thousands of pills per hour; and illegal firearms that included assault rifles and a machine gun. Agents later located a storage unit linked to the drug conspiracy and seized over 80 pounds of pressed fentanyl pills, eight guns, and precursor materials to press additional pills. The FBI JCODE and DEA HIDTA Tactical Diversion Squad investigated the case. The U.S. Attorney’s Office for the Central District of California is prosecuting the case.
- On May 12, 2022, a federal grand jury returned a two-count indictment charging Holly Adams, 31, and Devlin Hosner, 33, of Indio, California, with conspiracy to distribute and possess with intent to distribute fentanyl and methamphetamine, and with conspiracy to launder money. According to court documents, Adams and Hosner operated the vendor accounts “igogrrawwr” and “its4real” on the darknet marketplaces ToRReZ and Darkode, respectively, through which they sold tens of thousands of counterfeit oxycodone pills containing fentanyl in exchange for cryptocurrency. Adams and Hosner shipped these fentanyl pills to buyers throughout the United States, using the USPS, UPS, and other means of delivery. In the course of their conspiracy, Adams and Hosner finalized over 1,100 transactions of narcotics and other contraband and received more than $800,000 in cryptocurrency. Federal law enforcement officers executed a search warrant at a hotel in Riverside county where Adams and Hosner were residing and recovered more than 10,000 counterfeit oxycodone pills as well as approximately 60 grams of methamphetamine. The IRS-CI, HSI, FBI, USPIS, and USPS-OIG investigated the case. The U.S. Attorney’s Office for the Eastern District of California is prosecuting the case.
Operation SpecTor was a collaborative initiative across JCODE members, including the Department of Justice, FBI, DEA, USPIS, HSI, IRS-CI, ATF, Naval Criminal Investigative Service (NCIS), and the FDA’s Office of Criminal Investigations. This operation was aided by non-operational supporting participation from the Financial Crimes Enforcement Network (FinCEN) and U.S. Customs and Border Protection (CBP). Local, state, and other federal agencies also contributed to Operation SpecTor investigations through task force participation and regional partnerships. The investigations leading to Operation SpecTor were significantly aided by support and coordination by the Justice Department’s Organized Crime Drug Enforcement Task Forces (OCDETF); multi-agency Special Operations Division; the Criminal Division’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section’s Digital Currency Initiative, Narcotic and Dangerous Drug Section, and Fraud Section; the Justice Department’s Office of International Affairs; Europol and its Dark Web team; and international partners. The international partners include Eurojust; Austria’s Federal Criminal Police Office (Bundeskriminalamt); France’s Directorate-General of Customs and Indirect Taxes (Douane); Germany’s Federal Criminal Police Office (Bundeskriminalamt), Central Criminal Investigation Department of Oldenburg (Zentrale KriminaIinspektion Oldenburg), General Prosecutor’s Office in Frankfurt/Main - Cybercrime Center (Generalstaatsanwaltschaft Frankfurt/Main, Zentralstelle zur Bekämpfung der Internetkriminalität), Berlin Police (Polizei Berlin), various police departments (Dienststellen der Länderpolizeien), German Customs Investigation (Zollfahndungsämter); the Netherland’s National Police (Politie); Poland’s Central Cybercrime Bureau (Centralne Biuro Zwalczania Cyberprzestępczości); Brazil’s Civil Police of the State of Piauí (Polícia Civil do Estado do Piauí), Civil Police of the Federal District (Polícia Civil do Distrito Federal), National Secretariat of Public Security - Directorate of Integrated Operations and Intelligence - Cyber Operations Laboratory (Laboratório de Operações Cibernéticas da Diretoria de Operações Integradas e de Inteligência - Secretaria Nacional de Segurança Pública); Switzerland’s Zurich Cantonal Police (Kantonspolizei Zürich) and Public Prosecutor’s Office II of the Canton of Zurich (Staatsanwaltschaft II); and the United Kingdom’s National Crime Agency (NCA) and National Police Chief’s Council (NPCC).
Federal investigations and prosecutions are being conducted in more than 30 federal districts, including the District of Arizona, the Central District of California, the Eastern District of California, the Northern District of California, the Southern District of California, the District of Colorado, the District of Connecticut, the District of Columbia, the District of Delaware, the Southern District of Florida, the Northern District of Georgia, the Southern District of Indiana, the Eastern District of Kentucky, the District of Maryland, the District of Massachusetts, the Eastern District of Michigan, the Western District of Michigan, the Eastern District of Missouri, the Western District of Missouri, the District of Nebraska, the District of Nevada, the District of New Jersey, the Eastern District of New York, the Southern District of New York, the Western District of North Carolina, the Northern District of Ohio, the Southern District of Ohio, the Eastern District of Pennsylvania, the Middle District of Pennsylvania, the District of South Dakota, the Eastern District of Tennessee, the Eastern District of Texas, the Northern District of Texas, the Southern District of Texas, the District of Vermont, the Eastern District of Virginia, and the Western District of Washington.
The Justice Department established the FBI-led JCODE team to lead and coordinate government efforts to detect, disrupt, and dismantle major criminal enterprises reliant on the darknet for trafficking opioids and other illicit narcotics, along with identifying and dismantling their supply chains.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Largest International Operation Against Darknet Trafficking of Fentanyl and Opioids Results in Record Arrests and SeizuresRead the Press Release
WASHINGTON – Today, the Department of Justice, and its Joint Criminal Opioid and Darknet Enforcement (JCODE) team and international partners, announced the results of Operation SpecTor, which included 288 arrests – the most ever for any JCODE operation and nearly double that of the prior operation. Law enforcement also conducted more seizures than any prior operation, including 117 firearms, 850 kilograms of drugs that include 64 kilograms of fentanyl or fentanyl-laced narcotics, and $53.4 million in cash and virtual currencies.
Operation SpecTor was a coordinated international effort spanning three continents to disrupt fentanyl and opioid trafficking on the darknet, or dark web. The operation was conducted across the United States, Europe, and South America, and was a result of the continued partnership between JCODE and foreign law enforcement against the illegal sale of drugs and other illicit goods and services on the darknet. Operation SpecTor builds on the successes of prior years’ operations and takedowns of marketplaces, which result in the seizure of darknet infrastructure providing investigators across the world with investigative leads and evidence. JCODE and Europol’s European Cybercrime Centre (EC3) continue to compile intelligence packages to identify entities of interest. These leads allow U.S. and international law enforcement agencies to identify darknet drug vendors and buyers, resulting in a series of coordinated, but separate, law enforcement investigations, resulting in the statistics announced today.
This year’s law enforcement operation was accompanied by a public awareness campaign called Operation ProtecTor aimed to promote public safety and spread awareness of resources for those struggling with substance abuse and who go through extreme lengths to obtain opioids. JCODE has worked with every FBI field office in the country to facilitate outreach to households that have purchased individual amounts of opioids from the darknet. The interagency efforts are aimed to both identify those who use anonymizing technologies to purchase illicit narcotics and direct them to available resources.
“Operation SpecTor was a coordinated international law enforcement effort, spanning three continents, to disrupt drug trafficking on the dark web and represents the most funds seized and the highest number of arrests in any coordinated international action led by the Justice Department against drug traffickers on the dark web,” said Attorney General Merrick B. Garland. “Our message to criminals on the dark web is this: You can try to hide in the furthest reaches of the internet, but the Justice Department will find you and hold you accountable for your crimes.”
“The availability of dangerous substances like fentanyl on dark net marketplaces is helping to fuel the crisis that has claimed far too many American lives,” said FBI Director Christopher Wray. “That's why we will continue to join forces with our law enforcement partners around the globe to attack this problem together. The FBI is proud to stand with our domestic and foreign partners as we continue to shine that light into the deepest corners of the dark net and hold those accountable who continue to peddle this poison around the world.”
“The Sinaloa and Jalisco drug cartels, and the global networks they operate are killing Americans by sending fentanyl into the United States. Their associates distribute this fentanyl into communities across America by every means possible, including the dark web,” said DEA Administrator Anne Milgram. “The DEA is committed to shutting down the fentanyl supply chain from beginning to end, and we will relentlessly pursue the associates of these cartels wherever they hide, even in the dark corners of the internet.”
“Our coalition of law enforcement authorities across three continents proves that we all do better when we work together,” said Executive Director Catherine De Bolle of Europol. “This operation sends a strong message to criminals on the dark web: international law enforcement has the means and the ability to identify and hold you accountable for your illegal activities, even on the dark web.”
“Collaboration with our law enforcement partners is key to combatting fentanyl and opioid trafficking,” said Chief Jim Lee of the IRS Criminal Investigation (IRS-CI). “Under the JCODE umbrella, law enforcement agencies across the globe have joined forces to take down criminals who use the darknet to buy and sell narcotics. Our team at IRS-CI plays an integral role in these investigations by following the money trail, whether it’s in fiat currency or digital assets on the blockchain.”
“The illicit movement of opioids poses a significant threat to public health and safety – whether by known transnational criminal gang members across international borders or anonymously through darknet spaces,” said Senior Official Performing the Duties of Deputy Director P.J. Lechleitner of Homeland Security Investigations (HSI). “Our HSI special agents, alongside federal and international partners, continue to aggressively investigate, disrupt, and dismantle networks responsible for trafficking dangerous, deadly narcotics and other contraband across global communities we are charged with protecting. We will continue to pursue bad actors engaged in these crimes to ensure they face justice, while protecting victims from these lethal substances.”
“The U.S. Postal Inspection Service leverages our specialized knowledge of the postal system as part of sophisticated dark web investigations such as Operation SpecTor with great results,” said Chief Postal Inspector Gary R. Barksdale of the U.S. Postal Inspection Service. “We are committed to taking all necessary actions to combat illicit drugs in the mail. And we thank our law enforcement partners for working with us to achieve this; removing dangerous illicit substances from the mail and American communities saves lives.”
“Addressing our nation’s drug overdose crisis and epidemic of substance use disorders is an issue of great concern and remains a top public health priority for the U.S. Food and Drug Administration (FDA),” said Commissioner Robert M. Califf, M.D., of the FDA. “The FDA has undertaken strategic and impactful actions to prevent drug overdoses and reduce deaths and is committed to using all of our cyber-resources to shed light on the darkest corners of illicit medical supply chains for the health and safety of all Americans.”
Operation SpecTor resulted in over 100 federal operations and prosecutions, including:
- On Dec. 1, 2022, Anton Peck, 29, of Boca Raton, Florida, was sentenced to 16 years in prison for conspiring to possess with the intent to distribute controlled substances, including fentanyl, methamphetamine, and heroin. According to court documents, between May 2021 and May 2022, Peck distributed narcotics from various darknet markets using the vendor profile “Syntropy.” After the transactions were carried out using cryptocurrency, Peck and co-conspirators Kevin Fusco and Vincent Banner mailed parcels containing fentanyl, heroin, and methamphetamine to cities around the country using the U.S. Postal Service (USPS). Fusco, 35, of West Palm Beach, Florida, was sentenced to 11 years in prison for conspiring to distribute fentanyl, heroin, and methamphetamine. Banner, 31, of Boynton Beach, Florida, is scheduled to be sentenced on June 8 after pleading guilty to one count of conspiracy to possess with intent to distribute fentanyl, methamphetamine, and heroin. Law enforcement recovered kilogram quantities of fentanyl, cocaine, methamphetamine, and heroin from business and storage locations in West Palm Beach, Boca Raton, and New York City. Peck possessed a list of more than 6,000 customers living across the United States. The DEA, FBI, USPS Office of Inspector General (USPS-OIG), U.S. Postal Inspection Service (USPIS) and the Palm Beach County Sheriff’s Office investigated the case. The U.S. Attorney’s Office for the Southern District of Florida is prosecuting the case.
- On Nov. 18, 2022, a federal grand jury returned an indictment charging Christopher Hampton, 36, of Cerritos, California, with heading an organization that obtained bulk fentanyl, operated labs in California that used high-speed pill presses to create fake pills containing fentanyl and methamphetamine, and sold millions of pills to thousands of customers on the darknet. Hampton was named in an 11-count indictment that charges him with various narcotics and weapons offenses that could result in a sentence of life in prison. According to court documents, he was active on at least nine darknet marketplaces where he typically used the moniker “Narco710.” Hampton allegedly sold nearly $2 million worth of narcotics on two of these darknet marketplaces alone. He was arrested on Nov. 2, 2022, at which time federal law enforcement executed search warrants that led to the discovery and seizure of 450 pounds of suspected narcotics; six pill press machines, some of which were capable of producing thousands of pills per hour; and illegal firearms that included assault rifles and a machine gun. Agents later located a storage unit linked to the drug conspiracy and seized over 80 pounds of pressed fentanyl pills, eight guns, and precursor materials to press additional pills. The FBI JCODE and DEA HIDTA Tactical Diversion Squad investigated the case. The U.S. Attorney’s Office for the Central District of California is prosecuting the case.
- On May 12, 2022, a federal grand jury returned a two-count indictment charging Holly Adams, 31, and Devlin Hosner, 33, of Indio, California, with conspiracy to distribute and possess with intent to distribute fentanyl and methamphetamine, and with conspiracy to launder money. According to court documents, Adams and Hosner operated the vendor accounts “igogrrawwr” and “its4real” on the darknet marketplaces ToRReZ and Darkode, respectively, through which they sold tens of thousands of counterfeit oxycodone pills containing fentanyl in exchange for cryptocurrency. Adams and Hosner shipped these fentanyl pills to buyers throughout the United States, using the USPS, UPS, and other means of delivery. In the course of their conspiracy, Adams and Hosner finalized over 1,100 transactions of narcotics and other contraband and received more than $800,000 in cryptocurrency. Federal law enforcement officers executed a search warrant at a hotel in Riverside county where Adams and Hosner were residing and recovered more than 10,000 counterfeit oxycodone pills as well as approximately 60 grams of methamphetamine. The IRS-CI, HSI, FBI, USPIS, and USPS-OIG investigated the case. The U.S. Attorney’s Office for the Eastern District of California is prosecuting the case.
Operation SpecTor was a collaborative initiative across JCODE members, including the Department of Justice, FBI, DEA, USPIS, HSI, IRS-CI, ATF, Naval Criminal Investigative Service (NCIS), and the FDA’s Office of Criminal Investigations. This operation was aided by non-operational supporting participation from the Financial Crimes Enforcement Network (FinCEN) and U.S. Customs and Border Protection (CBP). Local, state, and other federal agencies also contributed to Operation SpecTor investigations through task force participation and regional partnerships. The investigations leading to Operation SpecTor were significantly aided by support and coordination by the Justice Department’s Organized Crime Drug Enforcement Task Forces (OCDETF); multi-agency Special Operations Division; the Criminal Division’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section’s Digital Currency Initiative, Narcotic and Dangerous Drug Section, and Fraud Section; the Justice Department’s Office of International Affairs; Europol and its Dark Web team; and international partners. The international partners include Eurojust; Austria’s Federal Criminal Police Office (Bundeskriminalamt); France’s Directorate-General of Customs and Indirect Taxes (Douane); Germany’s Federal Criminal Police Office (Bundeskriminalamt), Central Criminal Investigation Department of Oldenburg (Zentrale KriminaIinspektion Oldenburg), General Prosecutor’s Office in Frankfurt/Main - Cybercrime Center (Generalstaatsanwaltschaft Frankfurt/Main, Zentralstelle zur Bekämpfung der Internetkriminalität), Berlin Police (Polizei Berlin), various police departments (Dienststellen der Länderpolizeien), German Customs Investigation (Zollfahndungsämter); the Netherland’s National Police (Politie); Poland’s Central Cybercrime Bureau (Centralne Biuro Zwalczania Cyberprzestępczości); Brazil’s Civil Police of the State of Piauí (Polícia Civil do Estado do Piauí), Civil Police of the Federal District (Polícia Civil do Distrito Federal), National Secretariat of Public Security - Directorate of Integrated Operations and Intelligence - Cyber Operations Laboratory (Laboratório de Operações Cibernéticas da Diretoria de Operações Integradas e de Inteligência - Secretaria Nacional de Segurança Pública); Switzerland’s Zurich Cantonal Police (Kantonspolizei Zürich) and Public Prosecutor’s Office II of the Canton of Zurich (Staatsanwaltschaft II); and the United Kingdom’s National Crime Agency (NCA) and National Police Chief’s Council (NPCC).
Federal investigations and prosecutions are being conducted in more than 30 federal districts, including the District of Arizona, the Central District of California, the Eastern District of California, the Northern District of California, the Southern District of California, the District of Colorado, the District of Connecticut, the District of Columbia, the District of Delaware, the Southern District of Florida, the Northern District of Georgia, the Southern District of Indiana, the Eastern District of Kentucky, the District of Maryland, the District of Massachusetts, the Eastern District of Michigan, the Western District of Michigan, the Eastern District of Missouri, the Western District of Missouri, the District of Nebraska, the District of Nevada, the District of New Jersey, the Eastern District of New York, the Southern District of New York, the Western District of North Carolina, the Northern District of Ohio, the Southern District of Ohio, the Eastern District of Pennsylvania, the Middle District of Pennsylvania, the District of South Dakota, the Eastern District of Tennessee, the Eastern District of Texas, the Northern District of Texas, the Southern District of Texas, the District of Vermont, the Eastern District of Virginia, and the Western District of Washington.
The Justice Department established the FBI-led JCODE team to lead and coordinate government efforts to detect, disrupt, and dismantle major criminal enterprises reliant on the darknet for trafficking opioids and other illicit narcotics, along with identifying and dismantling their supply chains.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jury Finds District Man Guilty of Two Counts of Armed RobberyRead the Press Release
Defendant and Associates Committed Two Gunpoint Robberies of Strangers Affiliated with Howard University on the Same Day
WASHINGTON – Marquis Funderburk, 20, of Washington, D.C., has been found guilty by a jury of two counts of robbery while armed for two separate gunpoint robberies that took place within 30 minutes of each other, in January of 2022, in the neighborhood surrounding Howard University, announced U.S. Attorney Matthew Graves and Chief Robert Contee, III, of the Metropolitan Police Department (MPD).
The verdict was returned on May 1, 2023, following a trial in the Superior Court of the District of Columbia. The Honorable Sean Staples scheduled sentencing for August 25, 2023.
According to the government’s evidence, on January 18, 2022, at approximately 11:35 a.m., the defendant and two associates grabbed victim 1, a stranger, as they walked past him on the sidewalk. A gun was brandished and pointed at victim 1’s stomach by one of the men while the other two associates went through victim 1’s pockets, taking his airpods, iPhone, wallet, and keys.
At approximately noon on the same day, approximately two blocks from the first robbery, the defendant and three associates grabbed Victim 2, a stranger, as they walked past him on the sidewalk. The defendant’s associate pressed a gun, concealed inside a fanny pack, into victim 2’s chin while demanding Victim 2 give them his property. The defendant punched victim 2 in the face, after which the defendant and his associates proceeded to punch and kick victim 2 repeatedly until he fell to the ground bleeding, ultimately resulting in a concussion. As they demanded victim 2’s account passwords, the defendant commanded his associate with the gun to shoot victim 2.
Immediately after the second robbery, an MPD police cruiser, canvassing for the suspects of the first robbery, inadvertently approached the scene of the second robbery. The defendant and his associates fled from the cruiser, taking with them victim 2’s laptop, charger, iPhone, and wallet. The defendant was defendant stopped by police two blocks from the second robbery at approximately 12:30pm. He was positively identified by each of the victims independently.
In announcing the verdict, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Richard Carlton, Luca Winer, and Dan Lenerz, Paralegal Specialist Richard Cheatham, Victim/Witness Advocate Christie Bloodworth, and IT Specialist William Henderson.
Finally, they commended the work of Assistant U.S. Attorneys Shauna Payyappilly and Katie Sessa, who investigated and prosecuted the case.
Hudson Man Indicted for Defrauding U.S. TaxpayersRead the Press Release
CONCORD – A Hudson man was indicted in connection with his attempt to fraudulently obtain over $1 million in CARES Act funds from the United States government, U.S. Attorney Jane E. Young announces.
Matthew Dispensa, 57, was indicted on four counts of bank fraud, two counts of attempted wire fraud, and two counts of money laundering. Dispensa was arrested this morning and released on conditions.
According to the charging documents, Dispensa owns and operates the Gateway Hills Heath Club in Nashua. Although he only had one gym, he filed CARES Act loan applications for two different entities, Gateway Hills Health Club, Inc. (“Gateway Hills Inc.”) and Gateway Hills Health & Wellness, LLC (“Gateway Hills LLC”). Between 2020 and 2022, Dispensa applied for four Paycheck Protection Program (PPP) loans and two Economic Injury Disaster Loans (EIDL) for Gateway Hills Inc. and Gateway Hills LLC. He submitted the Gateway Hills Inc. PPP applications to Millyard Bank and the Gateway Hills LLC PPP applications to a separate bank, Primary Bank. He provided the banks and the Small Business Administration (SBA) false documents, including fabricated tax documents, which inflated his purported companies’ size and payroll. Because PPP and EIDL loan size was tied to payroll and the number of employees a company had, he was able to apply for and obtain larger loans than he was entitled to. In total, he applied for $413,850 in PPP loans and $650,000 in EIDL funds.
Dispensa also misused at least some of the loan proceeds. For example, he obtained a $146,650 PPP loan for Gateway Hills Inc. He wired $100,000 of the proceeds to a personal brokerage account to purchase stock, including Tesla stock. Similarly, Dispensa obtained a $105,600 PPP loan for Gateway Hills LLC. He transferred the proceeds to his own bank account first before moving $25,000 to a personal brokerage account to purchase 10,000 shares of Ashford Hospitality Trust, a real estate investment trust.
The charge of bank fraud provides for a sentence of up to 30 years in prison and a fine of up to $1 million. The charge of attempted wire fraud provides for a sentence of up to 20 years in prison and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of money laundering provides for a sentence of up to 10 years in prison and a fine of twice the amount of the criminally derived property involved in the transaction. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Treasury Inspector General for Tax Administration and U.S. Postal Inspection Service led the investigation. Valuable assistance was provided by the Hudson Police Department. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
During the early part of the coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act included multiple relief provisions to help the millions of Americans and many small businesses adversely affected by the pandemic, including the Paycheck Protection Program (PPP). Private lenders could participate in the PPP. The loans, which were supposed to be used for payroll, were fully guaranteed by the government. If borrowers used the PPP loans for payroll and other approved expenses as intended, they could apply for loan forgiveness. The CARES Act also opened up the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. As with PPP loans, EIDL loans were supposed to be used for payroll and other business expenses such as rent and mortgage.
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.
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Hospers, Iowa Man Sentenced to 25 Years in Federal Prison for Meth and Gun ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine and illegally possessed firearms was sentenced on May 1, 2023, to 25 years’ imprisonment.
Robert Nicholas Hansen, 43, from Hospers, Iowa, was convicted by a jury of one count of conspiracy to distribute methamphetamine; two counts of distribution of methamphetamine; and one count of being a prohibited person in possession of a firearm (1 gun) on November 3, 2022. On May 18, 2022, Hansen was convicted by a jury of two counts of being a prohibited person in possession of a firearm (17 guns).
The jury found that, from January 2017 through January 2021, Hansen was involved in a conspiracy to distribute more than 50 grams of pure methamphetamine. Evidence at trial showed that Hansen was involved with several other co-conspirators in the acquisition and distribution of more than 100 pounds of methamphetamine. Evidence further showed that on two separate occasions, Hansen distributed one-half pound of methamphetamine to individuals cooperating with law enforcement and during one of the transactions was found to possess three separate bundles of cash, totaling $14,000. The jury verdict included findings that Hansen’s methamphetamine distributions occurred within 1000 feet of Hospers Elementary School and South Side Park in Hospers, Iowa. The jury also found that Hansen illegally possessed a .223 caliber AR-15 style rifle. At trial, evidence was presented that Hansen had others store methamphetamine and guns for him when the “heat was on” him from law enforcement. At sentencing, Hansen’s illegal involvement with three other guns was also presented.
During Hansen’s other trial, the jury found that, from 2017 through November 2017, Hansen illegally possessed seventeen firearms. At sentencing, Hansen’s illegal involvement with four other guns was also presented. Hansen was previously convicted of possession of methamphetamine with intent to deliver in 2003 in the Iowa District Court for Sioux County.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Hansen was sentenced to 25 years’ imprisonment and must serve a 10-year term of supervised release following the imprisonment. There is no parole in the federal system. Hansen remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Shawn Wehde and Patrick Greenwood and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Sioux County Sheriff’s Office, the Orange City Police Department, the Plymouth County Sheriff’s Office, the Iowa Division of Narcotics Enforcement and the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 21-4014 and 21-4054. Follow us on Twitter @USAO_NDIA.
Head of Telemarketing Operation Sentenced to 78 Months in Prison for $19 Million Credit Card Laundering SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that STEVEN SHORT, the former head of Florida-based E.M. Systems & Services LLC and affiliated companies (collectively, “E.M. Systems”), was sentenced today to 78 months in prison for conspiracy to commit wire fraud and bank fraud in connection with his participation in a fraudulent scheme to obtain credit card processing services for his deceptive Florida-based telemarketing operation through a California-based company called CardReady LLC (“CardReady”). SHORT previously pled guilty to the conspiracy charge and was sentenced today before United States District Judge Loretta A. Preska.
U.S. Attorney Damian Williams said: “Over a two-year period, Steven Short and his co-conspirators used shell companies to deceive credit card payment processors into processing more than $19 million obtained from more than 19,000 victims nationwide. Short preyed on vulnerable people in credit card debt, charging fees up to $1,495 in exchange for guaranteeing to reduce their debt and lower their interest rates, but instead generally sent them cookie-cutter booklets with ordinary budgeting advice.”
According to the Superseding Indictment, court filings, and statements made in Court:
SHORT controlled E.M. Systems. From approximately 2012 through 2015, SHORT and E.M. Systems carried out a telemarketing fraud scheme in which they used telemarketers to cold-call consumers, targeting consumers with outstanding credit card debt. In exchange for fees up to $1,495, the cold-callers offered the customers services, including debt consolidation and interest-rate reduction on their debts, which were prohibited by the applicable guidelines from a bank used by SHORT (“Bank-1”) and associated processing entities (the “Guidelines”), and which — as SHORT knew — would produce chargebacks from dissatisfied customers far in excess of the number and rate of chargebacks permitted under the Guidelines. SHORT and E.M. Systems generated over $19 million in fraud proceeds from more than 19,000 customers through this scheme, resulting in thousands of complaints by customers of fraud and deceptive tactics and requests for millions of dollars in refunds and chargebacks.
In order to charge for E.M. Systems’ purported services via credit cards, SHORT sought access to the credit card processing market through CardReady, a Los Angeles-based company acting as a sales agent in the credit card processing industry. As part of its business as a sales agent, CardReady found merchants who wanted credit card processing services, such as SHORT, and submitted merchant applications on behalf of those merchants to a Manhattan-based Independent Sales Organization (the “New York ISO”). The New York ISO then evaluated the merchant applications and referred acceptable merchant accounts up the chain to a payment processor (“Payment Processor-1”) and Bank-1. Bank-1 and Payment Processor-1, in turn, processed payments to merchants for purchases by customers who had used credit cards. Under E.M. Systems’ deal with CardReady, CardReady kept approximately one-third of the credit card sale transactions of SHORT and E.M. Systems in exchange for providing them access to the credit card processing network.
In securing credit card processing for E.M. Systems to process the fees paid by its customers, SHORT and CardReady concealed that E.M. Systems was the true underlying merchant. Instead, SHORT and his co-conspirators, over a period of more than 20 months, created approximately 26 sham merchant companies, each headed by a “signer” (the “Sham Merchants” and the “Sham Merchant Accounts”). The 26 signers for the 26 Sham Merchants typically had no business of their own and knew little or nothing about E.M. Systems’ business. In return for signing paperwork, the signers were paid a nominal fee by CardReady. These false merchant applications also concealed the Sham Merchant’s true association with E.M. Systems.
By steering E.M. System’s payment processing through these Sham Merchant Accounts, SHORT and CardReady accomplished a number of fraudulent purposes. First, the use of these Sham Merchant Accounts made it possible for E.M. Systems to conceal its identity from Payment Processor-1 and Bank-1 and to maintain payment card processing. This was particularly relevant as Payment Processor-1 repeatedly required CardReady to close individual Sham Merchant Accounts because of excessive chargebacks and reports of sales of prohibited services. SHORT and CardReady then quickly replaced the closed Sham Merchant Accounts with new Sham Merchant Accounts, precluding Payment Processor-1 from shutting down its processing of high-risk merchants. Second, the fraudulent processing scheme enabled E.M. Systems to spread out its charges, refunds, and chargebacks across multiple Sham Merchant Accounts. SHORT and CardReady thus enabled E.M. Systems to evade chargeback monitoring programs operated by Bank-1, Payment Processor-1, and the New York ISO.
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SHORT, 46, of Tampa, Florida, pled guilty on August 16, 2022, to one count of conspiracy to commit wire fraud and bank fraud. In addition to the prison sentence, SHORT was sentenced to three years of supervised release and ordered to pay restitution of $1,912,090.05 and forfeiture of $8,833,889.69.
Also charged in this case is Brandon Becker, 51, of Los Angeles, California, whose trial is scheduled to begin on December 4, 2023, before Judge Preska. Becker is presumed innocent unless and until proven guilty.
Mr. Williams praised the work of the Federal Bureau of Investigation and thanked the Federal Trade Commission for its assistance.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys David Raymond Lewis, Vladislav Vainberg, and Sarah Y. Lai are in charge of the prosecution.
Goldsboro Drug Dealer Sentenced to 21 Years in PrisonRead the Press Release
WILMINGTON, N.C. – Johnathan Aquavious Heath, a/k/a “Booty,” age 43, of Goldsboro was sentenced to 252 months in prison for his leadership role in a drug trafficking organization bringing significant quantities of methamphetamine, cocaine, crack, heroin, and fentanyl in the Goldsboro area.
“There are serious consequences for those that are trafficking dangerous and deadly narcotics in our communities,” said U.S. Attorney Michael Easley. “This defendant will be spending the next twenty-plus years behind bars for his crimes.”
According to court documents and information presented in court, in 2019, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in Wilmington, North Carolina received information that Heath was a leader of a large-scale drug trafficking organization operating in Goldsboro and distributing significant quantities of crystal methamphetamine, fentanyl, heroin, powder cocaine, and cocaine base (crack). Based on the investigation, law enforcement learned that Heath maintained several “trap houses” or “stash houses” in Goldsboro and employed people to run the stash houses and he also employed runners, often times drug users, to hand deliver drugs.
During the course of the investigation, law enforcement gathered information regarding this organization from multiple confidential sources and cooperating defendants, conducted surveillance, and also conducted controlled purchases of narcotics from Heath, as well as those working for him. Over the course of the conspiracy, Heath was responsible for assisting in the distribution of at least 119.54 grams of cocaine, 401.62 grams cocaine base, 373.608 grams of actual methamphetamine, 1,500 grams of heroin, and 1,474.18 grams of fentanyl. On June 7, 2022, Heath pled guilty to Conspiracy to Distribute and Possess With Intent to Distribute Fifty (50) grams or more of methamphetamine, 5 kilograms or More of Cocaine, and 280 grams or More of Cocaine Base and Distribution of Fifty (50) grams or more of methamphetamine.
Four additional defendants have previously been charged and convicted in this investigation:
- Aratika Omhaya Anderson, a/k/a “Tika” (5:21-CR-314-M-2): pled guilty on October 19, 2021, to Conspiracy to Distribute and Possess With Intent to Distribute Fifty (50) Grams or More of Methamphetamine and Distribution of 5 grams or More of Methamphetamine, aiding and abetting and was sentenced to 88 months in prison.
- Victoria Christine Taylor (5:21-CR-314-M-3): pled guilty on March 8, 2022, to Conspiracy to Distribute and Possess With Intent to Distribute a quantity of crack cocaine and was sentenced to 80 months in prison.
- Richard Ronald Harris, III (5:21-CR-314-M-5): pled guilty on October 6, 2021, to Conspiracy to Distribute and Possess With Intent to Distribute Fifty (50) Grams or More of Methamphetamine and Distribution of Five Grams or more of Methamphetamine, Aiding and Abetting. Harris was sentenced to 70 months in prison.
- Lelia Inez Harris (5:21-CR-314-M-5): pled guilty on November 16, 2021, to Conspiracy to Distribute and Possess With Intent to Distribute Five (5) Grams or More of Methamphetamine, Distribution of Five Grams or more of Methamphetamine, Aiding and Abetting. Harris was sentenced to 55 months in prison.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by Chief Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in Wilmington, North Carolina and the Goldsboro Police Department investigated the case and Assistant U.S. Attorney Jennifer C. Nucci prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for case number 5:21-CR-00314-M.
Gloucester County Man Sentenced to 10 Years in Prison for Possessing Child PornographyRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man was sentenced today to 120 months in prison, 10 years of supervised release and ordered to pay $73,000 in restitution for possessing images and videos of child sexual abuse. Joseph Cooper, 76, of Williamstown, New Jersey, pleaded guilty before U.S. District Judge Renée Marie Bumb on Sept. 13, 2022, to an information charging him with one count of possession of child pornography.
Georgia woman sentenced to prison, ordered to pay more than $1 million in restitution for COVID fraudRead the Press Release
SAVANNAH, GA: A Georgia woman has been sentenced to prison and ordered to repay more than $1 million in fraudulently obtained funds from a COVID-19 small business relief program.
Salmat Deyji, 26, of Stockbridge, Ga., was sentenced to 26 months in prison after pleading guilty to Conspiracy to Commit Wire Fraud and Money Laundering, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Lisa Godbey Wood also ordered Deyji to pay $1,073,307 in restitution to the government, and to serve three years of supervised release upon completion of her prison term.
There is no parole in the federal system.
“Congress provided substantial funding to assist struggling small businesses during the COVID-19 pandemic, and unfortunately scam artists found myriad ways to enrich themselves through those funds,” said U.S. Attorney Steinberg. “Salmat Deyji not only helped herself to undeserved assistance, but also profited by conducting fraudulent activity on behalf of others. She’s now being held accountable for this substantial theft.”
The 2020 Coronavirus Aid, Relief and Economic Security (CARES) Act provided more than $650 billion in funding for qualifying small businesses facing financial challenges during the COVID-19 pandemic, including grants available through the Paycheck Protection Program (PPP).
In her plea agreement, Deyji admitted to filling out and submitting fraudulent PPP loan applications for herself and other individuals, in the Southern District of Georgia and elsewhere, who otherwise did not meet the qualifications for the program. She assisted in filing these applications using fabricated IRS forms and tax records which she created. Her scheme included soliciting information from U.S. Army service members as well as friends and family who she recruited to receive PPP funding in exchange for kickbacks.
In total, the scheme caused the disbursement of more than $1 million in fraudulent CARES Act grants to more than three dozen applicants. At least six others who participated in the scheme pled guilty to related charges, with sentences ranging from probation to 22 months in prison along with substantial orders of restitution.
“Today’s sentencing should serve as a stark reminder that our agents, and those of our partner law enforcement agencies, are relentless in their pursuit of those who choose to defraud the government,” said Special Agent in Charge Scott Moreland of the Department of the Army Criminal Investigation Division, Major Procurement Fraud Field Office.
“Those who illegally utilize government assistance for their own advantage undermine the efficacy and integrity of programs designed to support those who are in need of government aid,” stated Special Agent in Charge Darrin K. Jones, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS and our investigative partners are committed to bringing those who exploit these programs for selfish gain to justice.”
“During the COVID-19 pandemic, the Paycheck Protection Program was enacted by Congress in response to helping businesses who were experiencing economic uncertainty,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Unfortunately, people like Deyji and her co-conspirators fraudulently applied for and obtained those funds for their personal benefit. IRS-Criminal Investigation and our law enforcement partners will continue pursuing those who defrauded the government and stole from others in need of economic relief.”
“The U.S. Secret Service’s investigative collaboration with our law enforcement and prosecutorial partners again demonstrates our commitment to bringing to justice those who choose to exploit the systems created to help those affected by COVID-19 pandemic,” said Craig Reno, Resident Agent in Charge of the Savannah Resident Office of the U.S. Secret Service. “The results of these cases should serve as a deterrent to fraudsters that you will be held accountable to fullest extent of the law.”
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.
The case was investigated by the Department of the Army Criminal Investigation Division, the Defense Criminal Investigative Service, Internal Revenue Service Criminal Investigations, and the U.S. Secret Service, and prosecuted for the United States of America by Assistant U.S. Attorney Matthew A. Josephson.
Four People Sentenced in Federal Court for Schemes to Smuggle Drugs into the Polk County JailRead the Press Release
DES MOINES, IA – Four individuals have been sentenced in federal court for schemes to smuggle drugs into the Polk County Jail.
On December 19, 2022, Michael Joseph Wilson, 35 of Des Moines, was sentenced to 12 months in prison for attempt to possess contraband in a federal facility. On April 11, 2023, Fawn Ann Colyn, 57 of Des Moines, was sentenced to 30 months in prison after pleading guilty to providing contraband in a federal facility. On April 28, 2023, Randall Joseph Verbeski, 61 of Sioux City, was sentenced to thirty months in prison for possessing contraband in a federal facility. On April 28, 2023, Ashley Michelle Evans, 35 of Ottumwa, was sentenced to a term of five years’ probation for attempt to provide contraband in a federal facility.
According to court documents, as well as evidence presented at the sentencing hearings, Colyn and Verbeski engaged in a scheme to mail Suboxone and other opioids into the Polk County Jail, which houses federal prisoners. The scheme involved Colyn, who was not incarcerated, hiding drugs in envelopes and documents disguised as legal mail, and then sending those envelopes to Verbeski. Verbeski was in the Polk County Jail serving a federal sentence related to a prior gun and drug trafficking offense.
According to court documents, Wilson and Evans engaged in a similar scheme to mail MDMB-4en-PINACA, commonly known as K2, into the Polk County Jail. Evans, who was not incarcerated, hid the K2 in an envelope and document disguised as legal mail which she sent to Wilson. At the time, Wilson was in the Polk County Jail after officers found methamphetamine, heroin, MDMA, and a loaded revolver at his residence in Des Moines. At the time of his arrest, Wilson was on federal supervised release out of Indiana for a firearm conviction. Wilson was ultimately sentenced to a total term of 240 months, for the Iowa and Indiana federal charges.
Following their prison sentences, Colyn, Verbeski, and Wilson will serve terms of supervised release. There is no parole in the federal system.
Polk County Sheriff Kevin J. Schneider said “Maintaining the highest level of security at the Polk County Jail is one of my top priorities, and a mission for our staff. Our strong working relationships with partner agencies allow us to remain successful. I am proud of the Polk County Sheriff’s Office staff, and appreciate the great work done by the United States Marshals Service and the United States Attorney’s Office in concluding these cases.”
“Once again, these positive outcomes show the importance of maintaining a solid working relationship with our local partners. The communication and close bonds we’ve formed, serves as a force multiplier, to assure we can deliver the best service possible,” said
United States Marshal Ted G. Kamatchus of the Southern District of Iowa.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
The investigated was conducted by the United States Marshals Service and the Polk County Sheriff’s Office—Jail Division.
Four Charged with Failure to Register as Sex OffendersRead the Press Release
Memphis, TN – In April 2023, federal grand juries in Jackson and Memphis returned indictments
against four convicted sex offenders for failure to register or maintain their registration when
they moved to Tennessee, in violation of the Sex Offender Registration and Notification Act
(SORNA). United States Attorney Kevin Ritz announced the indictments today.According to United States Attorney Ritz and information presented in court, the following sex
offenders failed to update their registration to reflect travel to the Western District of
Tennessee (WDTN).• Terrell Chase Powell, 40, present in the WDTN from September 27 to December 15, 2022.
• Edward Elbert Thompson, 75, present in the WDTN from January 2022 to March 2, 2023.
• Jose Lozano, 45, present in the WDTN from November 29, 2021, to January 6, 2022; and
• Lorenzo Mitchell, 41, present in the WDTN from October 29 to December 5, 2022SORNA requires sex offenders to register and keep their registration current in each jurisdiction
in which they reside, work, or go to school.“Most convicted sex offenders who live and work in West Tennessee meet their registration
requirements and are productive members of our communities. Compliance with SORNA holds convicted
sex offenders accountable to law enforcement and helps to keep our communities safe. Failure to
register is a serious offense, and my office will aggressively pursue those offenders who attempt
to avoid their legal obligations when
st Tennessee,” said United States Attorney Kevin Ritz.United States Marshal for the Western District of Tennessee Tyreece Miller said, “Congress directed
the United States Marshals Service to locate absconded sex offenders through the Adam Walsh Child
Protection and Safety Act in July 2006. Our office takes this responsibility seriously and is
proactive in locating and arresting non-compliant sex offenders. These indictments are examples of
our partnership with the U.S. Attorney’s Office and commitment to protecting the citizens in the
Western District of Tennessee.”If convicted, each defendant faces up to 10 years’ imprisonment, up to a $250,000 fine, and a
period of supervised of five years to life. There is no parole in the federal system.The case was investigated by the United States Marshals Service.
Members of the public are reminded that an indictment only contains charges. Each defendant is
presumed innocent of the charges and it will be the government's burden to prove each defendant's
guilt beyond a reasonable doubt.Assistant United States Attorneys Adam Davis and Lauren Delery are prosecuting the case.
###
For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or
[email protected]. Follow @WDTNNews on Twitter for office news and updates.
Four Charged in Multi-Million-Dollar Childcare Benefits Fraud Ring that Bilked California Welfare and Benefits Program for YearsRead the Press Release
NEWS RELEASE SUMMARY – May 2, 2023
SAN DIEGO – Four San Diego residents were charged in federal court today with participating in a childcare-benefits fraud scheme that bilked a California welfare and benefits program of millions of dollars.
Mohamed Muriidi Mohamed, Amina Abdirazak Omar, Osob Abdirazak Omar and Omar Omar were arraigned this afternoon before U.S. Magistrate Judge Barbara L. Major.
According to the indictment, the Department of Health and Human Services (HHS) funds a program known as “Alternative Payment Program/Stage 2 Childcare.” This childcare benefits program allows eligible parents to select a licensed childcare provider to provide childcare services that best fit a family’s needs. In San Diego, this program is administered by two contractors: Child Development Associates (CDA) and the Young Men’s Christian Association (YMCA). CDA and YMCA disburse the funding from HHS and the state of California directly to the designated childcare providers. In administering the program, CDA and YMCA require verification forms to be completed by the parent, and the employer and/or school.
The indictment alleges that the defendants fraudulently caused CDA and YMCA to pay out millions in childcare benefit program funds by falsely verifying that parents were working at or attending school at the UMI Learning Center, a vocational and language school located on University Avenue, although the parents were not actually participating in classes or employment during the days, and for the hours, claimed. In turn, childcare providers submitted false daily childcare attendance forms claiming that childcare was provided for days and hours when the parents were supposedly at UMI Learning Center for work or school, although no childcare was actually provided. In exchange for these false verification forms, parents were expected to pay $200 to UMI Learning Center, and the childcare providers were expected to split the childcare benefit program funds they received, 50/50, with the parents. The indictment alleges that the defendants’ scheme caused CDA and YMCA to pay out over $3.7 million dollars in childcare benefit program funds.
“Childcare benefit programs are designed to help parents who need the assistance of quality childcare service,” said U.S. Attorney Randy Grossman. “Fraud takes money away from the very communities those programs are intended to serve.” Grossman thanked the prosecution team and Homeland Security Investigations for their hard work on this case.
“It is unacceptable for individuals to exploit and defraud programs designed to provide basic childcare benefits for hard working families,” said Chad Plantz, special agent in charge, HSI San Diego. “This investigation serves as an example of how dedicated we are to working in coordination with our law enforcement partners to support and affect a positive impact on the local community.”
DEFENDANTS Case Number 23CR0552-RBM
Mohamed Muriidi Mohamed, Spring Valley Age: 46
Amina Abdirazak Omar, Spring Valley Age: 40
Osob Abdirazak Omar, San Diego Age: 32
Omar Omar, San Diego Age: 22
SUMMARY OF CHARGES
Wire Fraud and Theft Conspiracy - Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and fine of the greater of $250,000, or twice the pecuniary gain or loss
Wire Fraud– Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in prison and fine of the greater of $250,000, or twice the pecuniary gain or loss
Theft of Government Funds – Title 18, U.S.C., Section 641
Maximum penalty: Ten years in prison and fine of the greater of $250,000, or twice the pecuniary gain or loss
AGENCIES
U.S. Department of Homeland Security, Homeland Security Investigations
U.S. Department of Health and Human Services, Office of the Inspector General
U.S. Department of Housing and Urban Development, Office of the Inspector General
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Fort Worth Fentanyl Traffickers SentencedRead the Press Release
Two fentanyl traffickers were sentenced to a combined 23 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Steven Keys, 28, and Rico Marion, 26, were indicted in August 2022. The following month, Mr. Keys pleaded guilty to conspiracy to possess with intent to distribute a controlled substance; Mr. Marion pleaded guilty to the same charge shortly thereafter. Mr. Keys was sentenced in February to 151 months in federal prison, and Mr. Marion was sentenced Tuesday to 135 months in federal prison.
“HSI is deeply committed to prosecuting those who bring illicit drugs into our communities,” said Todd Johnson, Assistant Special Agent in Charge HSI Dallas. “We hope these combined sentences send a direct message to the drug traffickers who peddle this poison that HSI will never relent in putting those away who have no regard for our nation’s laws.”
According to court documents, Mr. Keys and Mr. Marion dealt fentanyl-laced counterfeit oxycodone pills out of a motel in Fort Worth.
On July 12, 2022, after a surveillance team posted at the motel observed an apparent drug sale, law enforcement pulled Mr. Keys and Mr. Marion over on traffic violations. Inside the vehicle, investigators discovered a Louis Vuitton bag containing $7,129 cash, likely derived from the sale of illegal drugs.
The following day, law enforcement reviewed surveillance footage from convenience stores where open-air narcotics sales are known to occur and observed Mr. Keys and others dealing drugs from the vehicle.
They tracked the vehicle back to the motel and sent a confidential source into the room to purchase fentanyl pills. The confidential source stated he purchased five small blue pills – which he turned over to agents – from Mr. Keys.
Agents arrested Mr. Keys without incident that evening. They arrested Mr. Marion in the motel room after breaching the door and deploying gas inside the motel.
A search of the room uncovered a black backpack containing approximately 1,000 fentanyl-laced blue pills, a .40 caliber handgun on the bed, and a plastic baggy of marijuana inside the toilet.
Homeland Security Investigations and the Fort Worth Police Department conducted the investigation. Assistant U.S. Attorney Shawn Smith prosecuted the case.
Fort Myers Man Sentenced to Federal Prison for Unlawfully Possessing A Firearm as A Convicted FelonRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Jontavious Jarquel Griffin (34, Fort Myers) to 5 years and 10 months in federal prison for possessing a firearm as a previously convicted felon. The court also ordered Griffin to forfeit the firearm and ammunition possessed during the offense. Griffin had pleaded guilty on January 25, 2023.
According to court records, on July 27, 2022, deputies from the Lee County Sheriff’s Office (LCSO) conducted a traffic stop on a vehicle being driven and solely occupied by Griffin. Deputies later searched the vehicle, and inside a backpack on the front-passenger seat, they found a loaded Smith & Wesson handgun and quantities of cocaine and fentanyl. As a convicted felon, who had previously served prison time for a drug-related crime, Griffin is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lee County Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Simon R. Eth.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.