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13 June 2023
Marina del Rey Man Arrested for Allegedly Fraudulently Obtaining More Than $3 Million in COVID Business Loans for Shell CompaniesRead the Press Release
LOS ANGELES – A Westside man has been arrested on a federal grand jury indictment alleging he fraudulently obtained nearly $3.2 million in COVID-19 loans for his businesses that, in fact, were shell companies, the Justice Department announced today.
Mark Farag Shehata, 70, a.k.a. “Samy Farag,” “Mark Farag,” and “Mark Fshehata,” of Marina del Rey, was arrested Monday morning by federal agents and was arraigned late Monday in United States District Court in downtown Los Angeles.
Shehata pleaded not guilty to seven counts of wire fraud. A July 24 trial date was scheduled, and a $500,000 bond was set in this case.
According to a federal grand jury indictment returned on June 8 and unsealed Monday, Shehata organized and registered four limited liability companies that purportedly operated in Marina del Rey: Shirmak Group LLC; Cynergy Group Internatioal (sic) LLC; Global Network Investments LLC; and Alpha and Omega Group LLC.
From May 2020 to May 2021, Shehata allegedly submitted at least seven false and fraudulent loan applications under the Paycheck Protection Program (PPP), a financial aid plan Congress enacted to support businesses harmed by the COVID-19 pandemic’s economic impact. The PPP loans were to be used by recipients to pay only certain authorized business expenses, such as payroll, mortgage interest, lease, and utilities.
Shehata’s four businesses were nothing more than shell companies, the indictment alleges. None of the PPP loan proceeds Shehata allegedly fraudulently obtained were used to make payments to employees for payroll or any business expenses.
In furtherance of the scheme, Shehata submitted to the Small Business Administration and several lenders false applications requesting a total of $5,423,989 in PPP loans, and fraudulently obtained approximately $3,154,265 in PPP proceeds, the indictment alleges.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Shehata would face a statutory maximum sentence of 20 years in federal prison for each count.
The United States Department of Justice Office of Inspector General investigated this matter.
This case was investigated by the Pandemic Response Accountability Committee (PRAC) Fraud Task Force. The PRAC was established to serve the American public by promoting transparency and facilitating coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 21 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending. The PRAC Fraud Task Force brings together agents from 15 Inspectors General to investigate fraud involving a variety of programs, including the Paycheck Protection Program. Task force agents who are detailed to the PRAC receive expanded authority to investigate pandemic fraud as well as tools and training to support their investigations.
Assistant United States Attorney Valerie L. Makarewicz of the Major Frauds Section is prosecuting this case.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Man Pleads Guilty to Running Child Sexual Abuse WebsiteRead the Press Release
An Alabama man pleaded guilty yesterday for his involvement with a website dedicated to the advertisement and distribution of images and videos depicting child sexual abuse.
According to court documents, William Michael Spearman, 57, of Madison, was the lead administrator of the website, which had been operating for many years. The website included a section devoted to the sexual abuse of infants and toddlers, a section devoted to images and videos depicting children being subjected to pain and torture, and a section devoted to avoiding detection by law enforcement. As the lead administrator, Spearman managed numerous “staff” members, directed them how to help run the site, recommended other users for promotion, kept records of child pornography files advertised and distributed over the site, presided over staff meetings, praised and scolded users, and counseled users and other managers about the function and expectations of the website. Spearman also advertised and distributed images over the website.
Spearman pleaded guilty to engaging in a child exploitation enterprise. He is scheduled to be sentenced on Aug. 31, and faces a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The following defendants have also been convicted in the Southern District of Florida for their involvement with the same website:
Name
Residence
Charges
Status
Selwyn David Rosenstein
Boynton Beach, Florida
Conspiracy to advertise child pornography; five counts of advertisement of child pornography; possession of child pornography
Sentenced to 28 years in prison and ordered to pay $85,000 in restitution to victims
Gregory Malcolm Good
Silver Springs, Nevada
Conspiracy to advertise child pornography; conspiracy to distribute child pornography
Scheduled to be sentenced on Aug. 22
Robert Preston Boyles
Clarksville, Tennessee
Conspiracy to advertise child pornography; conspiracy to distribute child pornography
Scheduled to be sentenced on Aug. 15
Matthew Branden Garrell
Raleigh, North Carolina
Conspiracy to advertise child pornography; conspiracy to distribute child pornography
Scheduled to be sentenced on Aug. 1
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office made the announcement.
The FBI’s Child Exploitation Operational Unit, West Palm Beach Resident Agency, and Miami Field Office investigated the cases. Substantial assistance for the case was provided by FBI Field Offices and Resident Agencies in: Huntsville, Alabama; Reno, Nevada; Clarksville, Tennessee; Raleigh, North Carolina; and Madison, Wisconsin. Substantial assistance was also provided by the U.S. Attorneys’ Offices for the Northern District of Alabama, District of Nevada, Middle District of Tennessee, Eastern District of North Carolina, and Western District of Wisconsin.
Trial Attorneys Kyle P. Reynolds and William G. Clayman of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Gregory Schiller for the Southern District of Florida are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Man Pleads Guilty to Running Child Sexual Abuse WebsiteRead the Press Release
MIAMI – An Alabama man pleaded guilty yesterday for his involvement with a website dedicated to the advertisement and distribution of images and videos depicting child sexual abuse.
According to court documents, William Michael Spearman, 57, of Madison, was the lead administrator of the website, which had been operating for many years. The website included a section devoted to the sexual abuse of infants and toddlers, a section devoted to images and videos depicting children being subjected to pain and torture, and a section devoted to avoiding detection by law enforcement. As the lead administrator, Spearman managed numerous other “staff” members, directed them how to help run the site, recommended other users for promotion, kept records of child pornography files advertised and distributed over the site, presided over staff meetings, praised and scolded users, and counseled users and other managers about the function and expectations of the website. Spearman also advertised and distributed images over the website.
Spearman pleaded guilty to engaging in a child exploitation enterprise. He is scheduled to be sentenced on Aug. 31, and faces a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The following defendants have also been convicted in the Southern District of Florida for their involvement with the same website:
Name
Residence
Charges
Status
Selwyn David Rosenstein
Boynton Beach, Florida
Conspiracy to advertise child pornography; five counts of advertisement of child pornography; possession of child pornography
Sentenced to 28 years in prison and ordered to pay $85,000 in restitution to victims
Gregory Malcolm Good
Silver Springs, Nevada
Conspiracy to advertise child pornography; conspiracy to distribute child pornography
Scheduled to be sentenced on Aug. 22
Robert Preston Boyles
Clarksville, Tennessee
Conspiracy to advertise child pornography; conspiracy to distribute child pornography
Scheduled to be sentenced on Aug. 15
Matthew Branden Garrell
Raleigh, North Carolina
Conspiracy to advertise child pornography; conspiracy to distribute child pornography
Scheduled to be sentenced on Aug. 1
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office made the announcement.
The FBI’s Child Exploitation Operational Unit, West Palm Beach Resident Agency, and Miami Field Office investigated the cases. Substantial assistance for the case was provided by FBI Field Offices and Resident Agencies in: Huntsville, Alabama; Reno, Nevada; Clarksville, Tennessee; Raleigh, North Carolina; and Madison, Wisconsin. Substantial assistance was also provided by the U.S. Attorneys’ Offices for the Northern District of Alabama, District of Nevada, Middle District of Tennessee, Eastern District of North Carolina, and Western District of Wisconsin.
Assistant U.S. Attorney Gregory Schiller and Trial Attorneys Kyle P. Reynolds and William G. Clayman of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-80173.
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Man Charged with Possessing Firearms While Trafficking Fentanyl in Chicago SuburbsRead the Press Release
CHICAGO — A federal grand jury has indicted a man on drug and firearm charges for allegedly possessing multiple guns while trafficking fentanyl and other narcotics in the Chicago suburbs.
An indictment returned in U.S. District Court in Chicago charges OMARI ANDREWS, JR., with possessing an AR-15 rifle and three handguns in furtherance of drug trafficking crimes. Andrews allegedly distributed fentanyl and heroin in Westmont, Ill., Villa Park, Ill., Des Plaines, Ill., and Hillside, Ill., the indictment states. In March, law enforcement searched his residence in Mt. Prospect, Ill., and discovered distribution quantities of fentanyl, heroin, cocaine, and marijuana, as well as the firearms, all of which were loaded.
Andrews, 23, is detained in federal custody without bond. His arraignment is scheduled for June 20, 2023, at 1:00 p.m., before U.S. District Judge Edmond E. Chang.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; and Sean Fitzgerald, Special Agent-in-Charge of Homeland Security Investigations in Chicago. The Skokie, Ill., Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorney Alejandro G. Ortega.
Holding firearm and drug offenders accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, the U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
andrews_jr._indictment.pdfMajor Supplier in Juvenile Fentanyl Overdose Case Pleads GuiltyRead the Press Release
A major drug trafficker linked to a string of juvenile fentanyl overdoses in north Texas pleaded guilty today to multiple drug crimes, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Jason Xavier Villanueva, 22, was charged via criminal complaint in February and indicted later that same month. On Tuesday, he pleaded guilty to conspiracy to possess with intent to distribute fentanyl and distribution of fentanyl to a person under 21 years of age.
“Over and over, Mr. Villanueva put poison into the hands of teenagers who could not possibly comprehend the inherent risks. Not even the news of multiple teenage deaths deterred this defendant,” said U.S. Attorney Leigha Simonton. “The Justice Department will not rest until every person who peddled pills to these children, directly or indirectly, is behind bars. We have seen these kids’ faces – vibrant in life, heartrending in death – and we will not forget.”
“The men and women of the DEA Dallas are pleased Mr. Villanueva has pled guilty and will answer for the crimes he has committed,” said Special Agent in Charge Eduardo A. Chávez. “Unfortunately we cannot undo the damage already done to our community, but we can use this to prove once again that drug trafficking cannot be tolerated and we must all stand together to rid our communities of the dangers of illicit drugs like fentanyl.”
In plea papers, Mr. Villanueva admitted he distributed more than 200,000 fentanyl pills to north Texas customers over the course of five or six months, at a rate of about 40,000 pills per month. He sold the pills – round blue tablets marked M-30 – to a network of juvenile and adult dealers in Carrollton, who went on to sell to friends, classmates, and other customers. He often advertised on Instagram.
Mr. Villanueva, through his lower-level dealers, is tied to as many as ten overdoses of nine teenagers in the Carrollton Farmer’s Branch Independent School District. The victims, all middle and high school students, ranged in age from 13 to 17.
Following the arrest of two of these lower-level dealers – Eduardo Navarrete and Magaly Cano – Mr. Villanueva posted on social media, “Only thing that’s gonna stop us is feds.”
Mr. Villanueva is the third defendant charged in the wake of the Carrollton / Flower Mound juvenile overdoses to enter a guilty plea. Magaly Cano and Stephen Paul Brinson pleaded guilty last month; five other defendants, including Mr. Navarrete, have been charged but not yet convicted. (All are presumed innocent until proven guilty in a court of law.)
Mr. Villanueva now faces up to 40 years in federal prison. His sentencing is slated for Wednesday, Oct. 4.
The Drug Enforcement Administration’s Dallas Field Office and the Carrollton Police Department conducted the investigation with the assistance of School Resource Officers from the Carrollton – Farmer’s Branch Independent School District and the Lewisville Independent School District. Assistant U.S. Attorneys Rick Calvert and Phelesa Guy are prosecuting the case.
Note: Illicitly produced, fentanyl-laced pills often look similar to legitimate prescription pills like Oxycontin or Percocet, but can pose significantly more danger. On the street, these pills are often referred to as “M30s” (a reference to the markings on some of the pills), “blues,” “perks,” “yerks,” “china girls,” or “TNT.” DEA research shows that six out of ten pills laced with fentanyl contain a potentially lethal dose. One pill can kill. For resources, visit https://www.dea.gov/onepill.Longtime Missouri Juvenile Officer Sentenced to 7 Years in Prison for Sex with 15-Year-OldRead the Press Release
ST. LOUIS – U.S. District Court Judge Audrey G. Fleissig sentenced a former longtime deputy state juvenile officer to seven years in prison for engaging in illegal sex acts with a 15-year-old who was living in an Illinois group home.
Judge Fleissig also ordered Scott F. Burow, 63, to pay $7,500 in restitution to his victim and $5,000 to a fund that helps victims of child pornography and child trafficking.
Burow met the juvenile on an online dating site on which the victim held herself out to be a young adult. Burow agreed to pay her $100 for sex, his plea agreement says. Burow also demanded that she send him a nude image to ensure that she was not an undercover law enforcement officer or working with police.
Burow picked up the girl on April 2, 2020 from a public park near her group home, took her to his home and secretly recording the sex acts. He then dropped her off at a motel in Palmyra, Missouri. She flagged down a passing police officer for help.
The girl was a ward of the state at the time, living in a facility supporting children struggling with issues related to attachment and developmental trauma.
Burow pleaded guilty in October to a felony charge of transportation of a minor across state lines to engage in prohibited sexual conduct.
The case was investigated by the Palmyra police Department, the Hannibal Police Department and the FBI. Assistant United States Attorney Jillian Anderson is prosecuting the case.This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
LeRoy Woman Sentenced to Probation and Home Detention for Failing to File Federal Tax ReturnsRead the Press Release
PEORIA, Ill. – A LeRoy, Illinois woman, Jill D. Little, 60, of the 400 block of West Wayne Street, has been sentenced to two years’ probation, with a condition that one year be served in home detention with electronic monitoring, for failure to file personal tax returns for the years 2015 through 2020. She was also ordered to pay restitution in the amount of $514,814 to the IRS.
An Information was filed against Little in December 2022. She waived indictment and pleaded guilty to the Information, pursuant to a written plea agreement in January 2023.
At the sentencing hearing before U.S. Magistrate Judge Jonathan E. Hawley, the Court heard that Little failed to file personal tax returns and corporate returns for the business where she served as corporate secretary for the tax years 2015-2019, failed to file quarterly returns for the tax years 2015 through the third quarter of 2020, and failed to pay over to the federal government the payroll taxes collected from employees. In total, the tax loss to the government was $514,814. As of the time of sentencing, Little had paid the personal taxes and $150,000 of the corporate taxes which were due and owing. She will pay the remaining balance pursuant to a payment plan with the IRS.
In pronouncing sentence, Magistrate Judge Hawley noted that this was a serious offense and that everybody needs to pay their fair share. In rejecting Little’s statements that this was just a mistake, Magistrate Judge Hawley commented that this was more than a mistake – it involved both the personal returns and the corporate returns for not just one year but for multiple years. “You knew you had to pay, but kept not paying, and you got caught.”
The statutory penalties for failure to file a tax return are not more than 1 year imprisonment and up to a $100,000 fine. Failure to file a tax return is a Class A misdemeanor.
The Internal Revenue Service, Criminal Investigation investigated the case. Criminal Chief Darilynn J. Knauss represented the government in the prosecution.
Kevin M. Epstein to Serve as the U.S. Trustee for the Northern and Eastern Districts of Texas for Interim PeriodRead the Press Release
Kevin M. Epstein, the U.S. Trustee for the Southern and Western Districts of Texas (Region 7), has been designated by Attorney General Merrick B. Garland to serve for an interim period as the U.S. Trustee for the Northern and Eastern Districts of Texas (Region 6) effective July 1, the Executive Office for U.S. Trustees announced today. Epstein replaces William T. Neary, who is retiring after a distinguished 40-year career with the U.S. Trustee Program (USTP). Under 28 U.S.C. § 585(b), the Attorney General may fill U.S. Trustee vacancies by designating an incumbent U.S. Trustee to serve in a second region.
Epstein is a 24-year veteran of the USTP who was appointed as the U.S. Trustee for Region 7 on Jan. 1, 2021.
“Mr. Epstein has a wealth of experience that will maintain stability during this transition, and I know he will bring the same energy and leadership to this additional role in Region 6 as he has brought to Region 7,” said USTP Director Tara Twomey. “On behalf of the USTP, I extend my deepest gratitude to Mr. Neary for the integral role he has played in the development of the USTP throughout his career, from the early pilot days to today, not only within Region 6 but nationally. His legacy of excellence and service will continue on.”
The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 90 field office locations. Region 6 has offices in Dallas and Tyler, Texas.
Justice Department Secures Agreement with Staffing Company to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Justice Department announced today that it has secured a settlement agreement with Mountain Prairie Holdings, a Colorado-based staffing agency that formerly operated as Apprentice Personnel. The settlement resolves the department’s determination that Mountain Prairie violated the Immigration and Nationality Act (INA) by discriminating against non-U.S. citizen workers when checking their permission to work in the United States.
“Demanding that workers provide more documentation than required by law to prove their permission to work causes unnecessary stress, financial hardship and obstacles to employment, especially for vulnerable workers,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold employers accountable for such discriminatory actions.”
The department’s investigation began after a newly hired non-U.S. citizen complained that staff in Apprentice Personnel’s Colorado Springs office demanded that he produce a foreign passport to prove his permission to work, even though he had already presented sufficient documentation. The department also determined that the Colorado Springs office routinely required certain non-U.S. citizens to show their immigration documents, even when these workers had already presented other valid documentation. Ultimately, the department found that several non-U.S. citizens, including the complaining party, had been victims of this practice.
Under the terms of the settlement, Mountain Prairie will pay civil penalties to the United States and be subject to departmental monitoring for a three-year period. Additionally, Mountain Prairie will train staff on the INA’s anti-discrimination provision and review and revise its employment policies before the company or any of its subsidiaries hire any workers during the monitoring period.
Federal law allows all workers to choose which valid, legally acceptable documentation to present to demonstrate their identity and permission to work, regardless of citizenship, immigration status or national origin. The INA’s anti-discrimination provision prohibits employers from asking for specific documents because of a worker’s citizenship, immigration status or national origin. Indeed, many non-U.S. citizens, including lawful permanent residents, refugees and asylees, are eligible for several of the same types of documents to prove their permission to work as U.S. citizens (such as driver’s licenses and unrestricted Social Security cards). Employers must allow workers to present whatever acceptable documentation the workers choose and cannot reject valid documentation that reasonably appears to be genuine.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Find more information on how employers can avoid discrimination when verifying permission to work on IER’s website. Learn more about how IER protects workers’ rights in this video. For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Sign up for email updates from IER.
Spanish Version
Jury Convicts Missouri Man After Undercover Sex StingRead the Press Release
TOPEKA, KAN.– A federal jury convicted a Missouri man on one count of travel with intent to engage in illicit sexual conduct, after he was arrested in an undercover operation.
According to court documents and evidence presented at trial, Steven E. Spradley, 58, of Kansas City, Missouri, traveled from Jackson County, Missouri, to Osage County, Kansas, in July 2021 to have sex with whom he believed to be a 17-year-old girl he met online. Spradley was actually communicating with an investigator from the Osage County Sheriff’s Office posing as a minor. The Osage County Sheriff’s Office is part of the Kansas Internet Crimes Against Children Task Force.
Spradley faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“While child predators have long been a threat, the internet has greatly extended their reach to seek out victims,” said U.S. Attorney Kate E. Brubacher. “As these criminals scour for opportunities to prey on our young people, I applaud law enforcement officers for their proactive approach to catching these criminals and hopefully put them behind bars before a child falls victim.”
“This conviction holds Mr. Spradley accountable for his shameful and predatory actions. It underscores our continued commitment to have our children grow up without fear of exploitation and the importance of our state and local law enforcement partnerships in stopping those who attempt to harm the most vulnerable in our community,” said Charles Dayoub, FBI Kansas City Special Agent in Charge.
The Osage County Sheriff’s Office, the Kansas Internet Crimes Against Children (ICAC) Task Force, and the Federal Bureau of Investigation (FBI) are investigating the case.
Assistant U.S. Attorneys Sara Walton and Stephen Hunting are prosecuting the case.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Jackson, Tennessee, Duo Sentenced in Fraud SchemeRead the Press Release
Jackson, TN – Jennifer Azbill-Hall, 43, and Benjamin Vargason, 61, both of Jackson, Tennessee, have been sentenced to federal prison for their involvement in a bank fraud scheme. United States Attorney Kevin G. Ritz announced the sentences today.
According to United States Attorney Ritz and the information presented in court, Hall and Vargason were indicted in December 2019, in connection with a scheme to steal almost $820,000 from B&H Finance between January 2015 and September 2018. According to the indictment, Hall opened fictitious accounts in the names of former customers of B&H Finance, where she was employed. Hall took out loans and forged endorsements on checks made payable to the customers and cashed the checks through Vargason’s business, Great American Sports. Vargason deposited the checks in his company's account and kept a portion of the proceeds.
Hall was also sentenced in connection with a separate scheme to defraud JMS Restoration while employed there between July 2018 and July 2019. Hall used her access to the company's bank account to pay her mortgage and to transfer funds to CastleGate Kennels which was owned by her husband.
United States District Judge S. Thomas Anderson sentenced Hall to 30 months imprisonment followed by two years supervised release. Hall was also ordered to pay restitution of $920,218.59 and a mandatory assessment fee of $1,600. Vargason was sentenced to time served and placed on supervised release for three years with six months to be served in home confinement. Vargarson was also ordered to pay restitution in the amount of $819,916.63. There is no parole in the federal system.
This case was investigated by the United States Secret Service and the Jackson, Tennessee Police Department.
United States Attorney Ritz thanked Assistant United States Attorney Carroll L. André III and former Assistant United States Attorney Matthew J. Wilson who prosecuted this case, as well as law enforcement partners who investigated this case.
Houston men charged with burning down Spring buildingRead the Press Release
HOUSTON – A 38-year-old local man is now in custody on charges of maliciously using explosive materials resulting in physical injury and conspiracy to do so, announced U.S. Attorney Alamdar S. Hamdani.
Authorities arrested Jason Vernon Rogers today. He is expected to make his initial appearance before U.S. Magistrate Judge Dena Hanovice Palermo at 2 p.m.
Truong Quoc Duong, 52, remains in custody on the same charges following his arrest in March.
A federal grand jury returned the two-count indictment March 1.
On Nov. 21, 2022, Duong and Rogers allegedly set fire to a three-story medical center under construction on I-45 North in Spring. The charges allege the fire resulted in burn injuries to a firefighter and damages to the building and fire truck which exceeded $1 million.
According to the charges, Duong was driving a Jeep Gladiator on the date of the fire with Rogers as his passenger. Duong allegedly let Rogers out near the building. The charges allege Rogers then entered the building with a full backpack but left after several minutes without it. They allegedly later contacted each other and met up at a local restaurant.
The fire had allegedly erupted after they had both left the area of the Spring building. It took firefighters several hours to extinguish it, but it was completely destroyed as was a wall to the adjoining car wash, according to the charges.
According to testimony at his detention hearing, Duong owned a pet store in the strip mall next to the location of the fire. He allegedly rented the location from the same landlord who owned the now-destroyed building. The judge heard that Duong had stopped paying rent and abandoned his store before the lease expired, and the landlords sued him. Several days after, the fire occurred, according to information presented in court.
Upon his arrest, authorities allegedly discovered several 2 liter bottles filled with gasoline as well as numerous unregistered firearm suppressors in Duong's vehicle.
If convicted, Duong and Rogers each face up to 40 years in prison as well as a possible $250,000 maximum fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation along with the Montgomery County Fire Marshal’s Office and Texas Ranger. Assistant U.S. Attorney Adam L. Goldman is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Haitian-Chilean Citizen Sentenced to Federal Prison in Connection with Plot to Kill Haitian PresidentRead the Press Release
MIAMI – Rodolphe Jaar, 49, was sentenced to life in federal prison by U.S. District Judge Jose E. Martinez for his participation in the events leading to the July 7, 2021, assassination of President Jovenel Moïse of Haiti, after pleading guilty on March 24.
From at least February to July 2021, South Florida served as a central location for planning and financing the plot to oust President Moïse from power and replace him with someone who would serve the coconspirators’ political goals and financial interests. Jaar helped secure weapons and provided other support.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, announced the sentence imposed by U.S. District Judge Martinez.
FBI Miami and HSI Miami investigated this case, with valuable assistance provided by Department of State, Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Department of Commerce, Bureau of Industry and Security Office of Export Enforcement, and the Department of Defense’s Criminal Investigative Service.
Assistant U.S. Attorneys Andrea Goldbarg and Monica Castro of the Southern District of Florida, Trial Attorneys Frank Russo and Jessica Fender of the National Security Division’s Counterterrorism Section, and Emma Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section are prosecuting this case. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture. The Justice Department’s Office of International Affairs provided valuable assistance.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-20104.
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Greyhound Bus Passenger Convicted of Trafficking NarcoticsRead the Press Release
Memphis, TN – Juan Covarrubias-Garcia, 34, pled guilty to possession with intent to distribute 400 grams or more of fentanyl and 500 grams or more of cocaine. United States Attorney Kevin G. Ritz announced the guilty plea today.
According to United States Attorney Ritz and information presented in court, on November 14, 2022, West Tennessee Drug Task Force Agents were working at the Greyhound bus station in Memphis, when they met an inbound bus from Oklahoma City. The defendant, Juan Covarrubias Garcia, a passenger on the bus, was found to be in possession of two brown bricks wrapped in mailing tape. Further search revealed the packages contained 990.8 grams of cocaine, approximately 1 kilogram of fentanyl powder, and 5,033 fentanyl pills.
The penalty for possession of 400 grams or more of fentanyl is not less than 10 years’ imprisonment, not more than life, not more than a $10,000,000 fine, and not less than 5 years’ supervised release. The penalty for possession of 500 grams or more, of cocaine is not less than 5 years’ imprisonment, not more than 40 years, not more than a $5,000,000 fine, and not less than 4 years’ supervised release. There is no parole in the federal system.
Sentencing is scheduled for September 13, 2023, before Chief District Judge Sheryl H. Lipman.
This case was investigated by the West Tennessee Drug Task Force and the Drug Enforcement
Administration.Assistant United States Attorneys Bryce Phillips and Michelle Kimbril-Parks are prosecuting this case.
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Great Falls man admits trafficking meth, fentanyl in communityRead the Press Release
GREAT FALLS — A Great Falls man admitted today to trafficking methamphetamine and fentanyl pills in the community, U.S. Attorney Jesse Laslovich said.
Shacotta Keenan St. Onge, aka Shaq, 30, pleaded guilty to a superseding information charging him with possession with intent to distribute controlled substances. St. Onge faces a mandatory minimum of 10 years imprisonment, a $10 million fine and at least five years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Nov. 9. St. Onge was detained pending further proceedings.
In court documents, the government alleged that in the fall of 2022, the Russell Country Drug Task Force learned that St. Onge was distributing drugs in the Great Falls area. Law Enforcement used undercover agents and confidential informants to make controlled buys of meth and fentanyl pills from St. Onge in January. Law enforcement executed a search warrant on St. Onge’s residence in February and recovered fentanyl pills and meth.
Assistant U.S. Attorney Ethan R. Plaut is prosecuting the case. Homeland Security Investigations, the Russell Country Drug Task Force, the Great Falls Police Department and Drug Enforcement Administration conducted the investigation.
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.
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Fort Myers Man Sentenced to Federal Prison for Unlawfully Possessing Firearm as A Convicted FelonRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Alphonso Lataurean James (29, Fort Myers) to seven years and eight months in federal prison for possessing a firearm as a previously convicted felon. The court also ordered James to forfeit the firearm and ammunition possessed during the offense. James had pleaded guilty on March 7, 2023.
According to court records, during the morning of August 10, 2022, officers from the Fort Myers Police Department (FMPD) conducted a traffic stop on a vehicle in which James was the front-seat passenger. Officers later searched the vehicle and, inside a camouflage bag that James had been seen wearing earlier that morning, officers located a loaded Glock handgun equipped with an extended magazine. In a velvet Crown Royal bag found near the camouflage bag, officers found more than a half-ounce of fentanyl. As a convicted felon, James is prohibited from possessing firearms or ammunition under federal law.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fort Myers Police Department, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Simon R. Eth.
Fort Myers Convicted Felon Pleads Guilty to Unlawfully Possessing FirearmsRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces that Travis Lavon Anderson (36, Fort Myers) has pleaded guilty to possessing firearms as a previously convicted felon. Anderson faces a maximum of 10 years in federal prison. A sentencing date has not yet been set.
According to court documents, during the afternoon of June 8, 2022, officers from the Fort Myers Police Department (FMPD) were alerted to multiple rounds of gunfire in quick succession in the vicinity of a home on Lantana Street in Fort Myers. During a subsequent investigation into the origin of the gunfire, officers obtained surveillance video depicting Anderson discharging a firearm 10 times in front of his home on Lantana Street. FMPD personnel obtained a warrant to search the interior of the residence where officers found three firearms and several dozen rounds of ammunition belonging to Anderson, including a loaded AR-15-style rifle and two handguns. As a previously convicted felon, Anderson is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Myers Police Department. It is being 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.
Fort McCoy Man Who Attempted to Entice A 12-Year-Old Child to Engage in Sexual Activity Sentenced to More Than 10 Years in Federal PrisonRead the Press Release
Ocala, Florida – Senior United States District Judge Gregory A. Presnell has sentenced Jorge Mojocoa (70, Fort McCoy) to 10 years and one month in federal prison for attempting to entice a minor to engage in sexual conduct. A federal jury had found Mojocoa guilty on March 1, 2023.
According to evidence presented at trial, on March 30, 2022, Mojocoa responded to a social media posting offering a minor child for sexual services in return for cash. The post had been made by an undercover law enforcement officer. The fictional child purportedly suffered from many physical disabilities, including paralysis and autism. Over the span of two days, Mojocoa spoke to an undercover officer about engaging in sex with the 12-year-old girl. After settling on a price, Mojocoa drove to an agreed-upon location to engage in sex with the child. Once arrested, law enforcement recovered lubricant and candy in Mojocoa’s possession. During the negotiations, Mojocoa had agreed to bring those particular items for his encounter with the child.
“When it comes to sexual deviants and their activities on social media there are no limits to what they will do,” said Homeland Security Investigations (HSI) Assistant Special Agent in Charge David Pezzutti. “This sentencing is a testament to totality of the federal, state, and local law enforcement partnerships we have when investigating those who would willfully harm our children.”
This case was investigated by Homeland Security Investigations (HSI), the United States Secret Service, the Marion County Sheriff’s Office, the Ocala Police Department, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorneys Tyrie K. Boyer and Belkis H. Crockett.
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.
Former Electrical Company General Manager Pleads Guilty to Defrauding Keolis Commuter ServicesRead the Press Release
BOSTON – The general manager of a Massachusetts-based electrical company pleaded guilty yesterday in connection with a false invoicing scheme that defrauded Keolis Commuter Services (Keolis) of over $4 million.
John Rafferty, 69, of Hale’s Location, N.H., pleaded guilty to one count of conspiracy to commit wire fraud. U.S. Senior District Court Judge William G. Young scheduled sentencing for Sept. 18, 2023. Rafferty was charged on April 4, 2023 and his alleged co-conspirator, John P. Pigsley, was charged in a separate case on the same day.
Keolis has operated the MBTA commuter rail system since 2014 under an annual contract of $291–$349 million. Rafferty was the general manager of LJ Electric, Inc., an electrical supply vendor to which Keolis paid over $17 million between 2014 through 2021.
Between July 2014 and November 2021, Rafferty and, allegedly, Pigsley defrauded Keolis of over $4 million through a false LJ Electric invoicing scheme. Specifically, Rafferty spent more than $3 million on items allegedly for Pigsley and others – including: at least nine trucks; construction equipment including at least seven Bobcat machines; at least $1 million in home building supplies and services; and a $54,000 camper. Rafferty then recovered the cost of these items by submitting false and fraudulent LJ Electric invoices to Keolis, which also included a percentage profit that Rafferty kept for himself.
The charge of conspiracy to commit wire fraud provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and U.S. Department of Transportation, Office of Inspector General’s Special Agent-in-Charge is Christopher A. Scharf made the announcement today. Assistant U.S. Attorneys Kristina E. Barclay and Elysa Q. Wan of Levy’s Public Corruption & Special Prosecutions Unit are prosecuting the cases.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Five Gang Members Found Guilty in the Murder of 10-year old Makiyah Wilson; One More Convicted of Related ChargeRead the Press Release
WASHINGTON – A Superior Court jury, today, returned guilty verdicts against six men, from Washington, D.C., charged in the murder of 10-year old Makiyah Wilson. The verdicts were announced by U.S. Attorney Matthew M. Graves and Interim Chief Ashan Benedict, of the Metropolitan Police Department (MPD).
A jury found Isaiah Murchison, 23, Darrise Jeffers, 23, Gregory Taylor, 27, Qujuan Thomas, 24, and Quentin Michals, 25, guilty of first degree murder while armed, conspiracy to commit a crime of violence, participation in a criminal street gang, and multiple counts of assault with intent to kill while armed. Co-defendant Marquell Cobbs, 21, was found guilty of conspiracy to commit a crime of violence. All six are members of the “Wellington Park crew.” Sentencing hearings are scheduled for October 6, 2023 and October 20, 2023.
“On July 16, 2018, four men exited a vehicle in the courtyard of an apartment complex and indiscriminately fired over 50 shots at the residents because of a petty social media feud they had with individuals who associated with that community,” said U.S. Attorney Matthew M. Graves. “Their rampage left multiple people shot and a 10-year old child dead. Today’s verdicts demonstrate that we will hold accountable both the shooters in these brazen attacks and the people who help them.”
“This investigation was the result of great detective work by our homicide detectives, who worked tirelessly to track down evidence, follow up on leads and tips from the community, along with our federal law enforcement partnerships,” said Chief Benedict. “It was because of hard work between the Metropolitan Police Department, our law enforcement partners and most importantly the community.”
On July 16, 2018, defendants Isaiah Murchison, Gregory Taylor, Qujuan Thomas, and two other individuals drove to the Clay Terrace neighborhood armed with guns. They opened fire on the Clay Terrace courtyard, firing more than 50 shots, indiscriminately. Makiyah Wilson, who was sitting on the front stoop of her home, was killed. Several other people were wounded. Defendants Quentin Michals and Darrise Jeffers assisted the shooters by obtaining the weapons and vehicle used in the shooting. Despite having witnessed the defendants preparing for the shooting, no witnesses were willing to provide information regarding the identity of the shooters. The government presented forensic evidence, statements the defendants made over social media, and motive evidence in presenting its case.
In announcing the verdicts, U.S. Attorney Graves and Interim Chief Benedict commended the work of the detectives with the Metropolitan Police Department who investigated the case as well as members of the prosecution team, including: Paralegal Specialists Sharon Newman and Grazy Rivera and Assistant U.S. Attorneys Richard Barker and Melissa Jackson, along with former Assistant U.S. Attorney John Timmer, who investigated the case. Finally, they thanked Assistant U.S. Attorneys Laura Bach and Lindsey Merikas who prosecuted the case.
Firearms Dealer Sentenced for Selling Multiple Firearms to Prohibited IndividualsRead the Press Release
BOSTON – A Lowell woman has been sentenced in federal court in Boston for attempting to sell at least nine firearms, including an AR-15 rifle, to individuals cooperating with law enforcement.
Leticia Alcantara, 25, was sentenced on June 9, 2023 by U.S. District Court Judge Angel Kelley to one year and one day in prison, deemed served. On March 22, 2023, Alcantara pleaded guilty to one count of selling or transferring firearms to a prohibited person.In October 2021, investigators identified Alcantara as a firearms dealer in Massachusetts. On Feb. 15, 2022, Alcantara offered to sell a 9mm handgun to two individuals who, unbeknownst to her, were cooperating with law enforcement. On March 15, 2022, Alcantara met with the cooperating witnesses at a prearranged meeting location in a parking lot in Falmouth to conduct the transaction. There, Alcantara was observed entering the vehicle occupied by the cooperating witnesses and produced a black trash bag from her purse containing the firearm.
On multiple occasions in July 2022, Alcantara communicated with one of the cooperating witnesses regarding additional firearms she was offering for sale, including sending photos of: a 9mm handgun on July 2, 2022; a small holster-grip revolver and one large black pistol on July 7, 2022; and two handguns on July 9, 2022. At the direction of law enforcement, the cooperating witness agreed to purchase the last two handguns Alcantara offered for sale. On July 12, 2022, Alcantara met with the cooperating witnesses during a controlled purchase in Plymouth. There, Alcantara was observed entering the vehicle and producing one .45 caliber pistol and one 9mm pistol from a dark colored bag.
On July 12, 2022, Alcantara sent additional photos of two firearms for sale which, at the direction of law enforcement, the cooperating witness agreed to purchase. On July 19, 2022, Alcantara arrived at the same prearranged meeting location in Plymouth where she entered the cooperating witnesses’ vehicle and provided two 9mm pistols. Following the transaction, Alcantara continued communicating with the cooperating witness about additional firearms for sale, including a handgun and an AR-15 rifle. Alcantara was arrested on July 29, 2022.
Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance in the investigation was provided by the Plymouth and Falmouth Police Departments. Assistant U.S. Attorney Charles Dell’Anno of Levy’s Criminal Division prosecuted the case.
Federal Jury Finds Physician Assistant Guilty of $10 Million Medicare FraudRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte returned a guilty verdict today against a physician assistant, for his role in a genetic testing scheme that resulted in the submission of more than $10 million in fraudulent claims to the Medicare program, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Colby Edward Joyner, 35, of Monroe, N.C., was convicted of one count of health care fraud and six counts of making false statements relating to health care matters.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tamala E. Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG), join U.S. Attorney King in making today’s announcement
“Joyner exploited telemedicine technology to siphon off money from Medicare, a federally-funded program that so many people rely on for their health care needs,” said U.S. Attorney King. “As the telehealth field continues to grow, federal prosecutors and investigators are keeping a watchful eye for scammers who seek to exploit this platform for their own benefit.”
“Joyner took a medical oath to base his care on a patient’s needs rather than his financial interests, but he violated that oath and now must face the consequences,” said Special Agent in Charge DeWitt.
“When health care professionals cause the submission of false claims to federal health care programs, they undermine the public’s trust in the health care profession and take valuable, taxpayer-funded resources away from their intended recipients,” said Special Agent in Charge Miles.
According to trial evidence, witness testimony and documents filed with the court, in 2018 and 2019, Joyner was a physician assistant in the Charlotte area who worked as an independent contractor for a physician staffing and telemedicine company. As trial evidence established, during the relevant time frame, Joyner signed fraudulent prescriptions for medically unnecessary genetic testing, specifically cancer genomic and pharmacogenetic testing, for hundreds of Medicare beneficiaries residing in North Carolina. Joyner had never met, seen or treated the beneficiaries, and only had brief telephone conversations with them or no interactions at all.
Trial evidence showed that Joyner received from the telemedicine company and its clients pre-populated prescription forms and related records for patients who were pre-selected for genetic testing, which he then electronically signed and returned, in exchange for $12—and later $15—for each purported consultation that he performed.
According to evidence presented at trial, to conceal that Joyner was not the beneficiaries’ treating physician and that he did not conduct medical evaluations or examinations of the beneficiaries, Joyner falsified medical records in connection with the unnecessary prescriptions and falsely certified that the genetic tests were medically necessary. The government’s evidence established that Joyner’s scheme resulted in the submission of more than $10 million in fraudulent reimbursement claims to Medicare, and more than $3.6 million in payments.
Joyner was released on bond. A sentencing date has not been set. The health care fraud charge carries a maximum prison term of 10 years and a $250,000 fine. The charge of making false statements relating to health care matters carries a maximum penalty of five years in prison and a $250,000 fine, per count.
The FBI in Charlotte and HHS-OIG investigated the case.
Assistant U.S. Attorneys Katherine Armstrong and Matthew Warren, and Special Assistant U.S. Attorney Eric Frick of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Federal Jury Convicts West Virginia Inmate of Sending Obscene Matter to a MinorRead the Press Release
CHARLESTON, W.Va. – After a one-day trial, a federal jury convicted Darrin Alonzo Miller, 41, today of transfer of obscene material to a minor under the age of 16.
Evidence at trial proved that on June 22, 2020, Miller sent a letter through the United States mail to a 14-year-old girl while he was an inmate at the Parkersburg Correctional Center. In the letter, Miller described in graphic detail he and the minor female engaging in sexual intercourse upon his release from incarceration.
Miller is scheduled to be sentenced on September 7, 2023, and faces a maximum penalty of 10 years in prison, five years and up to a lifetime of supervised release, and a $250,000 fine.
“There can be no tolerance of predatory criminal behavior targeting children,” said United States Attorney Will Thompson. “I commend the West Virginia State Police for investigating this case and Assistant United States Attorneys Jennifer Rada Herrald and Francesca C. Rollo as well as our trial team for securing the guilty verdict.”
United States District Judge Joseph R. Goodwin presided over the jury trial.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-261.
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Fayetteville Cardiologist Agrees to Pay over $5 Million to Resolve Allegedly False Medicare and Medicaid ClaimsRead the Press Release
RALEIGH, N.C. – Fayetteville, North Carolina cardiologist Dr. Hari Saini and his current practice, Carolina Heart and Leg Center, P.A., agreed to pay $5,015,554 to the United States and North Carolina to resolve allegedly false Medicare and Medicaid claims.
“This civil fraud settlement demonstrates our steadfast commitment to protect taxpayer money and guard the integrity of our vital health care programs,” said U.S. Attorney Michael Easley. “Medical doctors should never bill for unnecessary procedures. Those who do will be held accountable. Our office will zealously pursue damages and civil penalties against medical professionals where warranted.”
This settlement arose from whistleblower allegations that Dr. Saini and his cardiology practice performed unnecessary atherectomy procedures to remove minor plaque blockage in leg arteries in patients. The United States filed a complaint against Dr. Saini, Carolina Heart and Leg Center, and Carolina Cape Fear Medical Group, alleging that Defendants “systematically overstated the stenosis percentage” to justify medically unnecessary atherectomies for the maximum number of procedures for their patients. More specifically, the Government alleged that Dr. Saini—who was one of the highest billing cardiologists in North Carolina for this type of claim—conducted “risky and invasive atherectomy procedures to unnecessarily remove plaque blockage that was, at best, only minimally present, all in blatant disregard for patient safety and Program billing requirements.” Based upon billing and medical records, Defendants were paid millions from Medicare and Medicaid, which the Government alleged was not supported by the retained medical records for the services provided and billed.
Ultimately, after six years of discovery and litigation, and with trial looming, Dr. Saini and his practice agreed to pay more than $5 million to resolve the False Claims Act allegations.
“Physicians cannot perform procedures on patients who don't need them just to make more money,” said Attorney General Josh Stein. “That’s a waste of taxpayer resources and a fundamental abuse of the trust we put in doctors. My office will hold accountable health care providers when they commit fraud for their own enrichment.”
The federal and state False Claims Acts mandate that the Governments recover triple the money falsely obtained, plus substantial penalties for each false claim submitted, and attorneys’ fees and costs to the whistleblower. It should be noted that the civil claims resolved by settlement here are allegations only, and that there has been no judicial determination or admission of liability. Dr. Saini and his practice deny these fraud allegations.
This matter was handled in partnership between the United States Attorney’s Office of the Eastern District of North Carolina and the Medicaid Investigations Division of the North Carolina Attorney General’s Office. Assistant United States Attorney Neal Fowler and North Carolina Senior Deputy Attorney General Eddie Kirby represented the United States and State of North Carolina in this civil action. The investigation was conducted by the HHS Office of Inspector General, including Special Agent Craig Schiffbauer, and the North Carolina Medicaid Investigations Division.
Eric G. Olshan Sworn in as U.S. Attorney for the Western District of PennsylvaniaRead the Press Release
PITTSBURGH, Pa. – Eric G. Olshan was sworn in yesterday as the 60th United States Attorney for the Western District of Pennsylvania and began his duties immediately. Chief U.S. District Judge Mark R. Hornak administered the oath to Mr. Olshan, 42, of Pittsburgh.
“I have spent my entire career litigating on behalf of the United States, and I’m honored to continue that service in my new role,” said U.S. Attorney Olshan. “I look forward to working with the dedicated attorneys and staff in our office, as well as our trusted partners in federal, state, and local law enforcement, to pursue our shared goal of securing justice and protecting communities throughout the district.”
Prior to becoming United States Attorney, Mr. Olshan served as the Chief of the Economic/Cyber/National Security Crimes Section. He joined the U.S. Attorney’s Office as an Assistant United States Attorney in 2017, focusing primarily on white collar prosecution. During his time in the district, Mr. Olshan has served as the Civil Rights Coordinator, Public Corruption Coordinator, Health Care Fraud Coordinator, Environmental Crime Coordinator, and District Election Officer.
From 2007 to 2017, Mr. Olshan served in the Public Integrity Section of the Criminal Division of the U.S. Department of Justice in Washington, D.C., first as a Trial Attorney from 2007 to 2013 and then as Deputy Chief from 2013 to 2017. Mr. Olshan entered the Department of Justice through the Attorney General’s Honors Program after serving as a law clerk for Judge Richard C. Tallman of the U.S. Court of Appeals for the Ninth Circuit from 2006 to 2007.
Mr. Olshan graduated from the University of North Carolina at Chapel Hill in 2003, where he earned a B.S. in physics with highest distinction. He received his J.D., cum laude, from Northwestern Pritzker School of Law in 2006.
Mr. Olshan was nominated by President Joseph R. Biden, Jr. on March 21, 2023, and confirmed by the United States Senate on June 8, 2023. He will lead an office currently staffed with 115 Assistant U.S. Attorneys and support staff in offices in Pittsburgh, Erie, and Johnstown.
The Western District of Pennsylvania covers the 25 westernmost counties in the Commonwealth.
El Departamento de Justicia llega a un acuerdo con una empresa de contratación que resuelve unas acusaciones de discriminación relacionada con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Mountain Prairie Holdings, una agencia de contratación con sede en Colorado que anteriormente operaba bajo el nombre de Apprentice Personnel. El acuerdo resuelve la determinación del Departamento que Mountain Prairie vulneró la Ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) al discriminar a trabajadores no ciudadanos de los EE. UU. a la hora de comprobar su permiso para trabajar en los Estados Unidos.
«El exigir que los trabajadores presenten documentos adicionales a los que por ley tiene el requisito de presentar para demostrar su permiso para trabajar causa estrés, dificultades económicas y obstáculos al empleo innecesarios, sobre todo en el caso de trabajadores vulnerables», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia seguirá obligando a los empleadores a rendir cuentas de tales acciones discriminatorias».
La investigación del Departamento comenzó después de que un recién contratado no ciudadano de los EE. UU. se quejó que el personal de la oficina en Colorado Springs de Apprentice Personnel exigió que presentara un pasaporte extranjero para demostrar su permiso para trabajar, a pesar de haber ya presentado suficiente documentación. Asimismo, el Departamento determinó que la oficina en Colorado Springs requería, de forma rutinaria, que ciertos no ciudadanos de los EE. UU. presentasen sus documentos migratorios, incluso cuando estos trabajadores ya habían presentado otra documentación válida. Finalmente, el Departamento halló que varios no ciudadanos de los EE. UU., entre ellos la parte demandante, habían sido víctimas de esta práctica.
Conforme los términos del acuerdo, Mountain Prairie pagará una sanción civil a los Estados Unidos y se someterá a la supervisión del Departamento durante un período de tres años. Por otra parte, Mountain Prairie capacitará a su personal en cuanto a la disposición antidiscriminatoria de la INA y repasará y revisará sus políticas de empleo antes de que la compañía o cualquiera de sus sucursales contraten a trabajadores adicionales durante el período de supervisión.
Las leyes federales permiten a todo trabajador elegir los documentos válidos y legalmente aceptables que desea presentar para demostrar su identidad y permiso para trabajar, independientemente de su ciudadanía, estatus migratorio o nacionalidad de origen. La disposición antidiscriminatoria de la INA prohíbe que los empleadores soliciten documentos específicos por motivos de la ciudadanía, el estatus migratorio o la nacionalidad de origen de un trabajador. En efecto, muchos no ciudadanos de los EE. UU., incluyendo a residentes permanentes legales, refugiados y asilados, son elegibles para varios de los mismos tipos de documentos como lo son los ciudadanos de los EE. UU. para demostrar su permiso para trabajar (tales como licencias de conducir y tarjetas de seguro social sin restricciones). Los empleadores deben permitir que sus trabajadores presenten cualquier documentación aceptable que dichos trabajadores quieran y no pueden rechazar documentación válida que parece ser genuina.
La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Hay información disponible en el sitio web de la IER sobre cómo los empleadores pueden evitar la discriminación a la hora de verificar el permiso para trabajar. Aprenda más sobre cómo la IER protege los derechos de los trabajadores en este video. Para más información sobre protecciones contra la discriminación en el empleo al amparo de las leyes migratorias, llame a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscríbase a un seminario en línea gratuito; envíe en correo electrónico a [email protected]; o visite los sitios web de la IER en inglés y español. Inscríbase para recibir las últimas noticias por correo electrónico de la IER.
East Hartford Man Charged with Fentanyl Distribution OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that OMARI LEWIS, 24, of East Hartford, was arrested today on an indictment charging him with fentanyl distribution offenses.
As alleged in court documents and statements made in court, in December 2021, the Drug Enforcement Administration’s Tactical Diversion Squad began investigating Lewis and others for distributing fentanyl in the East Hartford and Manchester area. In December 2021 and January 2022, investigators made two controlled purchases of fentanyl from Lewis.
On June 7, 2023, a grand jury in New Haven returned an indictment charging Lewis with two counts of possession with intent to distribute, and distribution of, fentanyl, an offense that carries a maximum term of imprisonment of 20 years on each count.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Lewis is released on a $75,000 bond pending trial.
This matter is being investigated by the DEA New Haven Tactical Diversion Squad. The DEA Tactical Diversion Squad is composed of personnel from the DEA and the Manchester, Glastonbury, West Haven, Hamden, Newington, and Bristol Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Lauren C. Clark and Stephanie T. Levick.
Dover Man Sentenced to 5 Years in Federal Prison for Distributing FentanylRead the Press Release
CONCORD – A Dover man was sentenced today in federal court for distributing fentanyl and possessing additional fentanyl with intent to distribute in New Hampshire, U.S. Attorney Jane E. Young announces.
Tyler Ward, 36, was sentenced by U.S. District Court Judge Joseph Laplante to 60 months in prison and 3 years of supervised release. On March 3, 2023, Ward pleaded guilty to two counts of distributing fentanyl, and one count of possessing fentanyl with intent to distribute it.
“The Dover Police Department and our federal partners successfully stopped these dangerous drugs from entering our communities,” U.S Attorney Jane E. Young said. “The defendant’s sentence should serve as a warning to those who traffic deadly drugs, that upon conviction, this office will seek significant periods of incarceration.”
“Tyler Ward dealt deadly fentanyl right out of his home in Dover and is now heading to prison for endangering his community,” said Christopher DiMenna, Acting Special Agent in Charge of the FBI Boston Division. “The lengthy federal sentence Mr. Ward received today illustrates how the FBI and our law enforcement partners will work together to investigate, disrupt, and ensure those who insist on bringing harmful crime to our neighborhoods are held accountable.”
On February 2, 2022, and February 11, 2022, law enforcement officers conducted two controlled purchases of five grams of fentanyl each from Ward at his apartment in Dover. At the time of his arrest on March 3, 2022, Ward possessed eight grams of fentanyl. Law enforcement officers located an additional 625 grams of fentanyl in his apartment. Ward admitted to law enforcement in a post-arrest interview that he had intended to sell this fentanyl.
The Federal Bureau of Investigation led the investigation. Valuable assistance was provided by the Dover Police Department. Assistant U.S. Attorney Aaron Gingrande prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Department of Justice leaders meet in Seattle to discuss strategies to combat community violenceRead the Press Release
Seattle – U.S. Attorney Nick Brown is hosting the Attorney General Advisory Committee’s Violent and Organized Crime Subcommittee in Seattle this week to share what is working in communities across the country to combat gun crime and enhance community safety. The group will hear from a variety of speakers on community programs working to end the cycle of gun violence, particularly among youth. Additionally, the Director of DOJ’s Project Safe Neighborhood program will lead discussions on the technical training and assistance available to support districts implementing anti-violence programs nationwide.
“This is an excellent opportunity to learn from other districts about strategies that are successfully promoting community safety,” said U.S. Attorney Brown. “We are also highlighting some of the community partnerships here in Western Washington that are working to get firearms away from those who shouldn’t have them. We’ll also spend time learning directly from community stakeholders about their perspectives on violence prevention.”
The King County Prosecutor’s Office will present about the Extreme Risk Protection Order program developed in Washington State. This “Red Flag” law has been a critical tool for getting firearms away from those with behavioral health or domestic violence issues or other violence risk factors. An Extreme Risk Protection Order ("ERPO") was utilized in a federal case during the investigation of Atomwaffen leader Kaleb Cole. Cole had numerous firearms removed from his residence north of Seattle under the ERPO. The Assistant United States Attorney who prosecuted Cole will present to the group about how the law was an important tool in the investigation that ultimately led to the federal prosecution and conviction for hate crimes.
The AGAC Violent and Organized Crime Subcommittee is led by United States Attorney Andrew Luger of Minnesota and the Vice-Chair is United States Attorney Jacqueline Romero of the Eastern District of Pennsylvania. U.S. Attorneys or their representatives are attending from New York, Illinois, California, South Carolina, North Carolina, Colorado, Louisiana, Alabama, Missouri, Mississippi, Georgia, Maine, Ohio, South Dakota, Tennessee, and Iowa.
Convicted Felon and Grape Street Crip Gang Member Sentenced for Firearm OffenseRead the Press Release
Memphis, TN – Fredrick Bonner, 26, has been sentenced to nine years in federal prison for illegal possession of a firearm. United States Attorney Kevin Ritz announced the sentence today.
According to United States Attorney Ritz and the information presented in court, on September 29, 2020, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted an operation in which Bonner sold a MAG Tactical Systems, multi-caliber rifle to investigators. Bonner was arrested on October 15, 2021, for the federal law violation as well as multiple outstanding state warrants.
During the investigation, it was revealed that Bonner had previously been convicted of a felony in Memphis and was affiliated with the Grape Street Crips gang.
Bonner pled guilty to being a convicted felon in possession of a firearm.
“Thanks to the hard work and dedication of the men and women of the ATF and our valued law enforcement partners in their efforts to confront violent crime. We will utilize every resource to disrupt the illegal activities gangs engage in such as the illegal possession of firearms, distribution of narcotics, and other acts of violence within the communities that we serve. This sentence is a perfect example of what it looks like when the revolving door of crime stops spinning. The cycle of violence must stop,” said Marcus Watson Special Agent in Charge, ATF, Nashville.
United States District Judge Thomas L. Parker sentenced Bonner to 108 months in federal prison followed by three years of supervised release. There is no parole in the federal system.
This case was investigated by the ATF.
United States Attorney Kevin Ritz thanked Assistant United States Attorney Gregory Allen who prosecuted this case, as well as the law enforcement partners who investigated the case.
Construction Firm CFO Pleads Guilty to Employment Tax CrimeRead the Press Release
The Chief Financial Officer (CFO) of a Mississippi company pleaded guilty today to willfully failing to report and pay over employment taxes withheld from employees’ paychecks.
According to court documents and statements made in court, Julian Russ of Houma, Louisiana, was the CFO of Community Construction Company LLC, a pipeline-maintenance and construction company based in Hazelhurst, Mississippi. From at least 2012 through October 2018, Russ did not file required quarterly employment tax returns or pay over the taxes withheld from employees’ wages to the IRS, despite knowing of his obligation to do so. In total, Russ caused a tax loss to the IRS of more than $6 million.
Russ will be sentenced on September 19, 2023 and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Curtis Weidler of the Justice Department’s Tax Division and Assistant U.S. Attorney Charles Kirkham for the Southern District of Mississippi are prosecuting the case.
Construction Firm CFO Pleads Guilty to Employment Tax CrimeRead the Press Release
The Chief Financial Officer (CFO) of a Mississippi company pleaded guilty today to willfully failing to report and pay over employment taxes withheld from employees’ paychecks.
According to court documents and statements made in court, Julian Russ of Houma, Louisiana, was the CFO of Community Construction Company LLC, a pipeline-maintenance and construction company based in Hazelhurst, Mississippi. From at least 2012 through October 2018, Russ did not file required quarterly employment tax returns or pay over the taxes withheld from employees’ wages to the IRS, despite knowing of his obligation to do so. In total, Russ caused a tax loss to the IRS of more than $6 million.
Russ faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory actors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Curtis Weidler of the Justice Department’s Tax Division and Assistant U.S. Attorney Charles Kirkham for the Southern District of Mississippi are prosecuting the case.
Chief Engineer Convicted for Obstruction of Justice and Oil Record Book Offenses; Operating Company Pleads Guilty to Oil Record Book OffenseRead the Press Release
NEWS RELEASE SUMMARY – June 13, 2023
SAN DIEGO – Vessel Chief Engineer Denys Korotkiy was convicted by a federal jury of conspiracy to obstruct justice, obstruction of justice, and failure to maintain an accurate oil record book for the vessel Donald following a five-day jury trial in San Diego.
The company that operates the vessel, Interunity Management (Deutschland) GMBH, previously pleaded guilty for maintaining false and incomplete records relating to the discharge of oily bilge water.
The evidence showed that oily bilge water was illegally dumped from the Donald directly into the ocean through the vessel’s sewage holding tank without being properly processed through required pollution prevention equipment. Oily bilge water typically contains oil contamination from the operation and cleaning of machinery on the vessel. These illegal discharges were not recorded in the vessel’s Oil Record Book as required by law. The evidence also showed that Korotkiy made false and fictitious entries in the Oil Record Book claiming transfers of oily bilge had been made from the vessel’s engine room bilge wells to the vessel’s Bilge Holding Tank when, in fact, those transfers had not been made. Finally, the evidence showed that Korotkiy conspired with others to obstruct the United States Coast Guard’s inspection and investigation into the mishandling of oily bilge water onboard the motor vessel Donald.
At the conclusion of the trial, the court remanded Chief Engineer Korotkiy to custody. Sentencing is scheduled for Sept. 1.
“Unlawful oil discharges can cause immeasurable harm to the marine environment,” said U.S. Attorney Randy Grossman. “We will continue to work closely with our agency partners to safeguard our oceans by vigorous enforcement of environmental laws. Today’s case is a reflection of that commitment.” Grossman thanked the prosecution team and the U.S. Coast Guard for their excellent work on this case.
“The illegal discharge of oily bilge water at sea and the falsification and destruction of records in order to obstruct the United States’ ability to investigate those discharges are crimes we take seriously,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The Department of Justice will continue to work with our partner agencies to ensure polluters are held fully accountable.”
“This prosecution highlights the Department of Justice and the U.S. Coast Guard’s dedication in safeguarding our oceans against those that seek to deliberately harm our natural resources,” said Captain James Spitler, Sector Commander, Coast Guard Sector San Diego. “Illegal dumping of oil and falsification of oil record books are egregious violations. This guilty verdict should serve as a reminder that the Coast Guard and our partners at the Department of Justice will work tirelessly to hold accountable those that seek to deliberately discharge oil and falsify records.”
In the same matter, Interunity Management (Deutschland) GMBH pleaded guilty to a felony violation of the Act to Prevent Pollution from Ships, 33 U.S.C. § 1908(a), for failing to accurately maintain the Donald’s Oil Record Book. Under the terms of the plea agreement and subject to court approval, New Trade will pay a total fine of $1.25 million and serve a four-year term of probation, during which any vessels operated by the company and calling on U.S. ports will be required to implement a robust Environmental Compliance Plan. Chief Engineer Korotkiy will be sentenced on September 1, 2023, by the Court for his role.
The plea agreement for the company requires it to pay $312,500 to the National Fish and Wildlife Foundation as a community service payment, to be used to fund research at the Tijuana River National Estuarine Research Preserve.
This case was investigated by the U.S. Coast Guard Sector San Diego, and the U.S. Coast Guard Investigative Service. The case is being prosecuted by Assistant U.S. Attorney Melanie K. Pierson of the U.S. Attorney's Office for the Southern District of California and Senior Trial Attorney Stephen Da Ponte of the Environmental Crimes Section of the Department of Justice.
DEFENDANT Case Number 22cr2762-TWR
Denys Korotkiy Age: 40 Ukraine
SUMMARY OF CHARGES
Conspiracy to Obstruct Justice, in violation of Title 18, United States Code, Section 371
Maximum penalty: Five years in prison and $250,000 fine
Obstruction of Justice, in violation of Title 18, United States Code, Section 1519
Maximum penalty: Twenty years in prison and $250,000 fine
Failure to Maintain an Accurate Oil Record Book, in violation of Title 33, United States Code, Section 1908(a)
Maximum penalty: Six years in prison and $500,000 fine
DEFENDANT
Interunity Management (Deutschland) GMBH
SUMMARY OF CHARGES
Failure to Maintain an Accurate Oil Record Book, in violation of Title 33, United States Code, Section 1908(a)
Maximum penalty for a corporation: Five years of probation and a fine of $500,000 or twice the gross gain or loss from the offense
INVESTIGATING AGENCIES
U.S. Coast Guard Sector San Diego, Coast Guard Investigative Service
Buffalo Man Sentenced for His Role in Two Credit Union Robberies in Lackawanna and ClarenceRead the Press Release
BUFFALO, N.Y.- U.S. Attorney Trini E. Ross announced today that Myron McCollum, 35, of Buffalo, NY, who was convicted of aggravated bank robbery, was sentenced to serve 170 months in prison and ordered to pay restitution totaling $439,293.90, by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Joshua A. Violanti and Nicholas T. Cooper, who handled the case, stated that on July 25, 2019, McCollum and co-defendant Ronald Morris entered the South Towns Community Federal Credit Union on South Park Avenue in Lackawanna wearing dark colored clothing and face masks and conducted a bank robbery with pepper spray and a pistol. McCollum and Morris traversed the teller’s counter, sprayed the tellers with pepper spray, and went to the unlocked safe, forcibly taking $290,500 in United States currency.
On November 7, 2019, McCollum, Morris, and co-defendant Carl Wilson, armed with a pistol and donning masks and gloves, entered the Clarence Community and School Federal Credit Union on Sheridan Drive in Clarence, and conducted a bank robbery while Applewhite, the getaway driver, sat in a car nearby. McCollum and his accomplices ordered all the employees to the ground and demanded money. McCollum and Wilson went behind the teller line and went through teller’s drawers, while Morris went to the vault. They forcibly took $148,793.90 in United States currency.
Defendant Carl Wilson was previously convicted and sentenced to serve 72 months in prison. Defendant Ronald Morris and another co-defendant, Adrian Applewhite, were also previously convicted and are awaiting sentencing.
The sentencing is the result of an investigation by the New York State Police, under the direction of Major Eugene Staniszewski; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia; and the Lackawanna Police Department, under the direction of Chief Mark Packard.
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Bridgeport man admits to taking nearly $650,000 in COVID Relief fundsRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Bridgeport, West Virginia, man has admitted to accepting nearly $650,000 in fraudulent COVID-19 relief funding.
James Nolte, 52, pled guilty today to one count of wire fraud. Nolte admitted to improperly securing CARES Act Paycheck Protection Program (PPP) loans for businesses he reportedly owned by falsely representing wages, staff, and tax returns. Nolte received $645,747 in fraudulent loans for PGO Veterans Services, PG Health, RJS Catering, and Dental Care Plus.
Nolte is facing up to 20 years in prison. He will be sentenced at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Jennifer Conklin is prosecuting the case on behalf of the government.
U.S. Magistrate Judge Michael John Aloi presided.
Anyone aware of COVID fraud can report it via email to [email protected], by telephone to 304-234-0100, or via regular mail to the U.S. Attorney, P.O. Box 591, Wheeling, WV 26003, Attn: COVID Fraud Unit.
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Bloomington Man Pleads Guilty to Wire Fraud in $250 Million Feeding Our Future Fraud SchemeRead the Press Release
MINNEAPOLIS – A Bloomington man has pleaded guilty to his role in the $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic, announced U.S. Attorney Andrew M. Luger.
According to the defendant’s guilty plea and court documents, Abdulkadir Awale, 50, admitted that from April 2020 through 2022, he knowingly participated in a fraudulent scheme to obtain and misappropriate millions of dollars in federal child nutrition program funds that were intended as reimbursements for the cost of serving meals to underprivileged children.
According to the defendant’s guilty plea and court documents, Awale enrolled his businesses, Karmel Coffee, LLC, Sambusa King, Inc., and Nawal Restaurant, Inc., in the Federal Child Nutrition Program as vendors under the sponsorship of Feeding Our Future and Sponsor A. Awale falsely claimed that through his businesses, he provided food for more than 3.6 million meals to various sites in Minnesota, totaling approximately $11.8 million in fraudulent Federal Child Nutrition Program funds. As part of the scheme, Awale also paid at least $83,000 in kickbacks to a Feeding Our Future employee in exchange for Awale’s participation in the program. Awale used some of funds to pay off his home mortgage, make cash withdrawals, and purchase vehicles, including two Freightliner Cascadia trucks.
Awale pleaded guilty today before Judge Nancy E. Brasel to one count of wire fraud and agreed to pay restitution in the amount of $2,126,200. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Matthew S. Ebert, Joseph H. Thompson, Harry M. Jacobs, and Chelsea A. Walcker are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.
Bloomfield Man Charged with Drug Trafficking and Firearms OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, today announced that, a federal grand jury in New Haven has returned an indictment charging JOSEPH GIOVANNI SOTO, 32, of Bloomfield, with narcotics distribution and firearm possession offenses.
The indictment was returned on June 7, and Soto was arrested yesterday.
As alleged in an indictment and statements made in court, beginning in April 2021, the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force began investigating a cocaine trafficking operation headed by Soto. The investigation revealed that Soto was coordinating the shipment of parcels containing kilogram quantities of cocaine from U.S. Post Offices in Puerto Rico to various “drop addresses” in New Britain and Meriden, Connecticut, as well as addresses in Holyoke and West Springfield, Massachusetts. Soto and others picked up parcels from the drop addresses and delivered them to stash houses in Bloomfield and New Britain. It is alleged that investigators intercepted and seized more than five kilograms of cocaine and have identified numerous other suspicious parcels that likely contained kilogram quantities of cocaine.
On May 1, 2023, investigators conducted a court-authorized search of Soto’s residence and seized two firearms, a drum magazine, various ammunition, approximately two kilograms of cocaine, and approximately $12,000 in cash. Soto was arrested on state charges on that date.
It is alleged that Soto’s criminal history includes a state felony conviction for assault. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment charges Soto with one count of conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life; one count of possession with intent to distribute 500 grams or more of cocaine, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years; and one count of unlawful possession of a firearm by a felon, an offense that carries a maximum term of imprisonment of 15 years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Soto is released on a $100,000 bond pending trial.
This matter is being investigated by the U.S. Postal Inspection Service and the Narcotics and Bulk Cash Trafficking Task Force, which includes members from the U.S. Postal Inspection Service, the U.S. Postal Service – Office of the Inspector General, the Connecticut Army National Guard, and the Hartford, New Britain, Meriden, and Town of Groton Police Departments. The case is being prosecuted by Assistant U.S. Attorney Stephanie Levick.
Blaine Business Owner Indicted for $600,000 Scheme to Defraud Hundreds of JobseekersRead the Press Release
MINNEAPOLIS – A Blaine man has been indicted on wire fraud charges after devising an employment opportunity scheme to defraud hundreds of jobseekers out of approximately $600,000, announced United States Attorney Andrew M. Luger.
According to court documents, Charles Edward Fields, 43, was the owner and operator of a series of companies through which he pitched employment opportunities to prospective workers throughout the United States. The employment opportunities that Fields purported to provide were through his businesses, some of which included HOMESoft Systems Incorporated, WaterTek Marketing Corporation, Water Innovations Group, Inc., W I G Holdings Corporation, Mile High H20 Corporation, and the NEW H20. Fields, claimed that, after job applicants paid him an upfront deposit of approximately $3,000 to $5,000, he would hire them as sales contractors to sell products nationwide to the public, primarily home security or water filtration systems. As part of the scheme, Fields also misrepresented his affiliation with, and his authority to act on behalf of, Company A, a long-standing international company that designs and distributes various models of water machines and filtration systems.
According to court documents, Fields routinely posted nationwide online employment advertisements promising job seekers training, sales leads, and $6,000 in guaranteed monthly profit. In reality, the employment opportunities never materialized as promised by Fields. In order to conceal his fraud and to stave off scrutiny, Fields lulled his victims with bogus excuses as to why he was unable to fulfill his promises or to return their funds. In total, Fields defrauded at least 250 victims of at least $600,000.
The indictment charges Fields with five counts of wire fraud. He is scheduled to make his initial appearance in U.S. District Court on June 30, 2023.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorney Matthew Ebert is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Bangor Man Pleads Guilty After Discovery of 588g of FentanylRead the Press Release
BANGOR, Maine: A Bangor man pleaded guilty today in U.S. District Court in Bangor to possessing fentanyl with the intent to distribute and aiding and abetting.
According to court records, in June 2022, based on information the Maine Drug Enforcement Agency had gathered during an investigation, a search warrant was obtained to search the vehicle of Chad Savage, 34. Agents found a large quantity of suspected heroin/fentanyl in the glove compartment. The substances were sent to the U.S. Drug Enforcement Administration lab and were confirmed to be more than 588 grams of fentanyl.
Savage faces at least 10 years and up to life in prison and a $10 million fine. He will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency investigated the case.
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Albion Man Pleads Guilty to Attempting to Purchase Firearms for Convicted Felon in PalmyraRead the Press Release
BANGOR, Maine: An Albion man pleaded guilty today in U.S. District Court in Bangor to providing false information to a federal firearms dealer while purchasing firearms.
According to court records, in June 2018, Charles Viles, 31, knowingly made false statements to a licensed firearms dealer in Palmyra. Viles represented in writing that he was purchasing the firearms for himself despite knowing he was buying them for, and at the direction of, someone else. That person was a convicted felon and was therefore legally prohibited from purchasing or possessing firearms.
Viles faces up to five years in prison, a fine up to $250,000 and up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Massachusetts State Police investigated the case. The Middlesex County (Massachusetts) District Attorney’s Office also assisted in the investigation.
STRAW PURCHASING: A straw purchase is an illegal firearm purchase where the actual buyer of the gun, being unable to pass the required federal background check or desiring to not have his or her name associated with the transaction, uses a proxy buyer who can pass the required background check to purchase the firearm for him/her.
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12 June 2023
Waterbury, CT Resident Sentenced for Possession of Child PornographyRead the Press Release
PITTSBURGH, PA- A former resident of Canonsburg, Pennsylvania, was sentenced in federal court to possession of child pornography, United States Attorney Eric G. Olshan announced today.
Kevin Francisco Torres-Gerena, 29, of Waterbury, Connecticut was sentenced to four years imprisonment, and ten years supervised release before United States District Judge Nora Barry Fischer.
The Court was advised that investigators identified Torres-Gerena on a peer-to-peer network where offenders, like Torres-Gerena, could access and share child sexual abuse material (commonly referred to as “child pornography”). The court was further informed that law enforcement officials executed a federal search warrant at Torres-Gerena’s residence on September 5, 2018, and later uncovered 116 videos, ranging from 1 minute and 10 seconds to 9 minutes and 37 seconds, and 36 images depicting the sexual exploitation of minors, many of which involved children under the age of twelve. Torres-Gerena informed investigators that he would view the images/videos and then delete them but use the same search terms in subsequent searches to conceal his activity.
Assistant United States Attorney Rebecca L. Silinski is prosecuted this case on behalf of the government.
Homeland Security Investigations, with the assistance of the Federal Bureau of Investigations San Antonio Field Office, the North Strabane Police Department and the Canonsburg Police Department, conducted the investigation leading to the prosecution of Torres-Gerena.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ventura County Man Pleads Guilty to Making Death Threats and Bomb Threats to a Nonprofit and Reproductive Health CentersRead the Press Release
LOS ANGELES – A Ventura County man pleaded guilty today to federal criminal charges making threatening telephone calls last year, including to a Planned Parenthood office on the day the United States Supreme Court overturned its Roe v. Wade decision.
Nishith Tharaka Vandebona, 34, of Oxnard, but who lived in Camarillo during the offenses, pleaded guilty to one misdemeanor count of threatened forcible intimidation regarding the obtaining and provision of reproductive health services under the federal Freedom of Access to Clinic Entrances (FACE) Act. He also pleaded guilty to one felony count of transmitting threatening communications in interstate commerce.
At today’s hearing, United States District Judge R. Gary Klausner ordered Vandebona remanded into federal custody.
According to his plea agreement, in February and June of 2022, Vandebona used an internet application to create anonymous telephone numbers to make the threatening calls.
During the spring of 2022, there was news coverage that the Supreme Court was considering overturning Roe, its 1973 decision that recognized a constitutional right to abortion, after an initial draft of the new opinion was leaked.
On June 24, 2022, the Supreme Court published a decision in Dobbs v. Jackson Women’s Health Organization, which overturned Roe and ruled that the Constitution does not confer a right to abortion.
Vandebona admitted in his plea agreement that on the same day, using an anonymous number, he left a voicemail message containing death threats with Planned Parenthood California Central Coast, a Santa Barbara-based reproductive health services organization.
On June 25, 2022, Vandebona called Planned Parenthood Los Angeles and spoke with a call center specialist. Vandebona said, “I’m calling to let you know that I’m going to come in there and kill all of you, including your staff and your security. You got it? You’re overdue for an attack.”
Within an hour, Vandebona telephoned Planned Parenthood Los Angeles again and made several death threats, including “I’m gonna come in there and murder your staff.”
Prior to the threats to the Planned Parenthood facilities, Vandebona called in a bomb threat in February 2022 to the office of Californians for Population Stabilization (CAPS), a Ventura-based non-profit organization that advocates for “zero population growth,” primarily through immigration restrictions.
Vandebona admitted to using anonymous numbers he obtained from the internet to make threatening phone calls to CAPS. In one of the calls, he said, “I’m gonna come in there and kill all of you, dude. Be careful.”
In another call to CAPS in February 2022, Vandebona said, “I’m gonna come in there, plant a bomb, and kill as many white Americans as possible. You understand that? Servicemen, families, everybody.”
Judge Klausner scheduled an October 2 sentencing hearing, at which time Vandebona will face a statutory maximum sentence of one year in federal prison for the FACE Act count and up to five years in federal prison for the transmitting threatening communications in interstate commerce count.
The FBI investigated this matter. The Santa Barbara Police Department, the Santa Monica Police Department, and the Ventura County Sheriff’s Office have assisted in this investigation.
Assistant United States Attorneys Frances S. Lewis and Julius J. Nam of the Public Corruption and Civil Rights Section are prosecuting this case.
Anyone who has information about incidents of violence, threats, and obstruction that target a patient or provider of reproductive health services or damage and destruction of reproductive health care facilities, should report that information to the FBI at https://tips.fbi.gov.
For more information about clinic violence, and the Department of Justice’s efforts to enforce FACE Act violations, please visit www.justice.gov/crt/national-task-force-violence-against-reproductive-health-care-providers.
Urbana Man Convicted of Methamphetamine ConspiracyRead the Press Release
URBANA, Ill. – A federal jury returned a guilty verdict on June 8, 2023, against an Urbana, Illinois, man, Phoutasone Champanine, 37, of Ivanhoe Drive, for conspiracy to possess fifty grams or more of methamphetamine (actual) with intent to distribute, maintaining a drug-involved premises, and possessing a firearm as a felon. Sentencing for Champanine has been scheduled for October 13, 2023, at the U.S. Courthouse in Urbana.
Over two days of testimony, the government presented evidence to establish that Champanine, a felon with multiple prior drug convictions, was dealing in pounds of methamphetamine in the Champaign-Urbana area. Further, investigators with the Champaign County Street Crimes Task Force found several firearms and multiple calibers of ammunition in Champanine’s storage unit in Savoy, Illinois.
The investigators subsequently obtained a search warrant for Champanine’s home. During the execution of the warrant, agents found Champanine on the front porch of the home with eight pounds of methamphetamine in a bag on his shoulder. A further search of Champanine’s home revealed another pound of methamphetamine, two more firearms, and ammunition.
Champanine remains in the custody of the United States Marshal Service. At sentencing, Champanine faces statutory penalties of ten years to life imprisonment, up to a $10,000,000 fine, and a maximum life term of supervised release for the conspiracy conviction. He faces up to twenty years of imprisonment, up to a $500,000 fine, and up to three years of supervised release for maintaining a drug-involved premises. Finally, he faces up to ten years of imprisonment, up to a $250,000 fine, and up to three years of supervised release for possessing a firearm as a felon.
The case investigation was conducted by the Champaign County Street Crimes Task Force, a multi-jurisdictional group composed of officers from the Champaign County Sheriff’s Office, the Champaign Police Department, the Urbana Police Department, and the University of Illinois Police Department, with assistance provided by the Federal Bureau of Investigation, Springfield Field Office; Drug Enforcement Administration; and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Timothy Sullivan and William J. Lynch represented the government at trial.
The case against Champanine 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.
Two North Carolina Lawyers Plead Guilty to Conspiracy Involving Scam Political Action CommitteeRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on June 9, 2023, and June 12, 2023, respectively, Jack Daly (age: 51) and Nathanael Pendley (age: 61) pled guilty to conspiring to (i) commit mail fraud and (ii) lie to the Federal Election Commission (“FEC”).
According to court documents, the conspiracy centered on a political action committee (the “Draft PAC”) that Daly and Pendley ostensibly formed to convince David Clarke, Jr., the former Sheriff of Milwaukee County, to campaign for a seat in the United States Senate. In soliciting contributions to the Draft PAC, Daly and Pendley falsely represented that donor contributions would be used to support an effort to draft Clarke to run for Senate. Over the relevant period, the Draft PAC raised over $1.6 million. Most of this money was spent on additional fundraising to personally benefit Daly and Pendley, not genuine efforts to convince Clarke to run for office.
Court documents further demonstrate that Daly and Pendley solicited donations through the Draft PAC after they became aware that Clarke had publicly announced that he would not run for a Senate seat and had characterized the Draft PAC as a “scam.” When confronted by Clarke about the Draft PAC’s ongoing solicitations, Daly and Pendley lied to Clarke and suggested that the Draft PAC’s new Treasurer was responsible. They also submitted false and misleading information to the Federal Election Commission, including a post-dated “FEC Form 1” which identified the Draft PAC’s intern, Z.Z., as its Treasurer, replacing Daly. In fact, as Daly and Pendley knew, Z.Z. was not performing any duties as Treasurer or undertaking any responsibilities as Treasurer.
Both defendants are scheduled for sentencing hearings before District Court Judge J.P. Stadtmueller in September 2023.
This matter was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Kevin Knight and Benjamin Taibleson.
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Troy Felon Receives 37 Months for Firearm and Drug ConvictionsRead the Press Release
ALBANY, NEW YORK – Frankie Rios, age 42, of Troy, New York, was sentenced today to 37 months in prison for illegally possessing a firearm as a convicted felon, and for possessing and intending to distribute cocaine and cocaine base. United States Attorney Carla B. Freedman and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement.
Rios, a convicted felon, pled guilty before United States District Judge Mae A. D’Agostino, on January 6, 2023. Rios admitted that he possessed a .25 caliber Mauser handgun with six rounds of ammunition on March 30, 2019. The handgun was recovered from Rios by Troy Police Officers responding to a stabbing at a bar on 4th Street in Troy. Rios also admitted that on February 17, 2021, he possessed more than 100 grams of cocaine and cocaine base (a/k/a crack cocaine) with intent to distribute those substances, in Troy. Rios is required to forfeit the firearm and ammunition as part of his plea, and will serve a 3-year term of post-imprisonment supervised release following his term of imprisonment.
ATF and the Troy Police Department investigated this case, and Assistant U.S. Attorney Benjamin S. Clark prosecuted this case.
St. Tammany Man Indicted for Violation of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – MATTHEW LAURENT, age 21, a resident of St. Tammany Parish, was indicted on June 9, 2023 for possession of a machine gun, in violation of Title 18, United States Code, Section 922(o), announced U.S. Attorney Duane A. Evans.
According to the indictment, on or about December 16, 2022, LAURENT, possessed machineguns, that is three (3) Glock auto-sears and two (2) swift links, in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2).
If convicted of possessing a machine gun, LAURENT faces a maximum term of imprisonment of 10 years, a fine of up to $250,000, up to three (3) years of supervised release, and a mandatory special assessment fee of $100.00.
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.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives in investigating this matter. Assistant United States Attorney Greg M. Kennedy of the Violent Crime Unit is in charge of the prosecution.
St. Petersburg Man Who Orchestrated Multimillion Dollar Fraud Scheme While on Supervised Release Sent Back to Prison for Theft of Government Property and Money LaunderingRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody has sentenced Matthew Walker Meredith (40, St. Petersburg) to six years in federal prison for theft of government money and money laundering. As part of his sentence, the Court also entered an order forfeiting real property, six Mercedes Benz vehicles, and $6,374,576.92, which represents the proceeds of the charged criminal conduct. Meredith pleaded guilty on March 24, 2023.
According to court documents, in 2016, Meredith was sentenced in federal court to three years’ imprisonment for conspiracy and possession with intent to distribute Ethylone, also known as “Molly.” Those charges stemmed from Meredith’s importation of kilogram quantities of Ethylone from China. The Bureau of Prisons released Meredith in October 2017, and he began serving a three-year term of federal supervised release. While under federal supervision, Meredith began to submit claims for tax refunds to the Internal Revenue Service (IRS) in the names of entities under his control. Specifically, in just six months, Meredith submitted five claims to the IRS seeking in excess of $170 million. Each claim was false and fraudulent, in that Meredith falsified both his income and withholdings.
On November 23, 2019, the IRS issued Meredith a refund check in the amount of $6,374,576.92, which Meredith quickly deposited into his bank account. In the weeks that followed, Meredith laundered the illicit proceeds by purchasing luxury vehicles and a waterfront home. Specifically, and as described below, in one week he purchased six new Mercedes Benz totaling $843,269.32.
Date of Purchase
Type of Vehicle
Cost
11.30.19
2020 Mercedes Benz S63AMG3
$187,327.68
11.30.19
2019 Mercedes Benz SL63
$156,404.27
11.30.19
2020 Mercedes Benz C63WS
$103,547.17
12.6.19
2020 Mercedes Benz GLE350W
$72,707.55
12.6.19
2020 Mercedes Benz AMG GTR
$232,368.12
12.7.19
2019 Mercedes Benz C63WS
$90,914.53
And on December 5, 2019, Meredith purchased, in cash, a 6,500 square foot waterfront mansion (pictured below) in St. Petersburg, for $2,625,000.
“The American tax system is designed to provide vital government services to our people. It is not a slush fund for thieves and fraudsters,” said Brian J. Payne, IRS-CI Special Agent in Charge. “As today’s sentence demonstrates, those who illegally target our nation’s tax dollars for personal financial gain, will face criminal prosecution and a lengthy stay in prison.”
This case was investigated by Internal Revenue Service—Criminal Investigation. It was prosecuted by Assistant United States Attorney Carlton C. Gammons.
St. Petersburg Convicted Felon Sentenced to More Than Fifteen Years for Drug Trafficking and Firearms ChargesRead the Press Release
Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington has sentenced Jamel Middleton (27, St. Petersburg) to 15 years and 8 months in federal prison for possession with the intent to distribute a controlled substance and being a felon in possession of a firearm. The Court also ordered Middleton to forfeit approximately $7,500 is cash, an American Tactical semi-automatic rifle, a Norinco SKS semi-automatic rifle, a Springfield semi-automatic pistol, a Glock semi-automatic pistol, and assorted rounds of ammunition, which are traceable to proceeds of the offense and used in the commission of the offense. Middleton had pleaded guilty on March 8, 2023.
According to court documents, On February 17, 2022, the Drug Enforcement Administration (DEA), along with Pinellas County Sheriff's Office (PCSO), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted a federal search warrant at a residence in St. Petersburg, where Middleton was found. During the search, agents located 56.79 grams of 100% pure methamphetamine. A field test of the white powdery substance showed a positive result for Mannitol, a commonly used cutting agent for narcotics. An additional 93.12 grams of a substance tested positive for fentanyl.
During the search of a bedroom on the northeast side of the residence, agents located a loaded handgun under the mattress. To the right of the handgun agents located a folder that had “Middleton, Jamel” written in black ink. Additionally, agents located two rifles inside the closet of the bedroom. Underneath the television within the bedroom was a black safe. Inside was a bag with six clear plastic baggies containing a crystalline substance and a handgun. The DEA laboratory determined the crystalline substance to be 658.58 grams of pure methamphetamine.
Middleton has multiple prior convictions, including for shooting at or within a building and sale of controlled substance. Therefore, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Pinellas County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Samantha Beckman.
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 Lawyer Sentenced for Faking Legal Documents for at Least 30 ClientsRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Monday sentenced a St. Louis, Missouri lawyer to 31 months in prison for faking legal documents and forging judges’ signatures in cases involving at least 30 clients.
Judge Pitlyk also ordered Andrew Gavin Wynne to pay $351,000 in restitution for losses suffered by his former law firm. Wynne created fictitious documents with forged signatures in cases in St. Louis as well as St. Louis and St. Charles counties. Wynne created bogus court orders, judgments and emails authored by at least ten separate judges, some of which falsely claimed to award money to his clients.
In one example, Wynne sent an email to a client on Feb. 28, 2020 that included a fictitious judgment and decree of dissolution with a forged judge’s signature. That divorce decree said Wynne’s client's marriage was dissolved and the parties would have joint legal and physical custody of the minor children. The decree also said the client was owed $900 per month child support, $5,000, a vehicle and other assets.
On July 21, 2020, Wynne emailed another client an order with a forged judge’s signature that claimed $20,200 in payments were owed to that client.
Wynne’s series of deceptions and lies began unraveling when a client complained to Wynne’s boss.
One victim told Judge Pitlyk during Monday’s sentencing hearing that his divorce was still not finalized, and that Wynne’s actions had cost him his relationship with his two daughters.
Wynne’s former boss said Wynne’s actions and deceptions were unprecedented in Missouri, had “stunned” clients and caused him “abject humiliation, utter despair and fear for the future.” The firm is still unwinding and trying to repair Wynne’s misdeeds, which the boss said victimized both clients and the judicial system.
Wynne, 35, pleaded guilty in March to five felony counts of identity theft.
The FBI investigated the case. Assistant U.S. Attorneys Derek Wiseman and Kyle Bateman are prosecuting the case.
South Lake Tahoe Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Timothy Mackey, 42, of South Lake Tahoe, pleaded guilty today to distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Mackey was a member of chat groups that shared child pornography on the social media platform LiveMe, including a group named “No Limit!!!” On Feb. 6, 2020, and Feb. 25, 2020, Mackey, using the username “bag of rock,” posted multiple images of child pornography in the “No Limit!!!” group.
Mackey had worked as a snowboarding instructor and applied to become a foster parent prior to his arrest in April 2020.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Denise N. Yasinow is prosecuting the case.
Mackey is scheduled to be sentenced on Sept. 11, 2023. He faces a mandatory minimum sentence of five years in prison, a maximum statutory penalty of 20 years in prison, and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.