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25 May 2023
Sex Offender Sentenced for Failure to RegisterRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Antonio Juan Paredes, age 33, was sentenced to 24 months in prison for failing to register as a sex offender.
The charges arose from an investigation by the United States Marshal Service Sex Offender Registry Unit.
On April 12, 2022, Paredes pleaded guilty to one count of Failure to Register as Sex Offender.
According to the U.S. Marshal Service, Paredes was previously convicted of Rape-First Degree in the District Court of McCurtain County, Oklahoma and has a lifetime reporting requirement as a level-3 sex offender. Paredes moved outside the state of Oklahoma and failed to update his sex offender registration as required under the Sex Offender Registration and Notification Act (SORNA).
“We work continuously to ensure our community’s safety, and our deputy marshals in Eastern Oklahoma work tirelessly to track offenders who are deliberately out of compliance,” Eastern Oklahoma U.S. Marshal Kerry L. Pettingill said in a statement.
“The societal benefits of having a sex offender registry can only be realized if sex offenders are in compliance with their registration requirements," said United States Attorney Christopher J. Wilson. “The United States Attorney’s Office is committed to working with the U.S. Marshal’s Sex Offender Registry Unit to ensure offenders like Mr. Paredes are held accountable for intentionally shirking their obligation to register and update their registrations.”
The Honorable Ronald A. White, Chief District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings in Muskogee. Paredes will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Edith A. Singer represented the United States.
Second Defendant Charged with Second Degree Murder in Death of Navajo ManRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Keon Apachito was charged with murder in the second degree. Apachito, 21, of To'Hajiilee, and an enrolled member of the Navajo Nation, appeared in federal court for a detention hearing and was released to a halfway house pending trial, which has not been scheduled.
According to an indictment, on May 28, 2022, along with two others, Apachito and co-defendant Cole Ray Shorty allegedly beat the victim in retaliation for stealing an item from Shorty. The victim died from their injuries at the University of New Mexico Hospital on May 30, 2022. The incident occurred within the exterior boundaries of the Navajo Nation.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Apachito faces up to 17 years in prison.
Cole Ray Shorty, 19, was arraigned on Sept. 13, 2022, and will remain in custody pending trial. If convicted, Shorty faces up to 17 years in prison.
The FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations. Assistant United States Attorney Brittany DuChaussee is prosecuting the case.
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Schenectady Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
ALBANY, NEW YORK – Daniel Quintero, age 38, of Schenectady, New York, pled guilty yesterday to receiving hundreds of images and videos of child pornography.
United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Quintero admitted that from on or about May 1, 2019 through March 2, 2022, he downloaded images and videos of child pornography.
At sentencing, scheduled for September 26, 2023, Quintero faces at least 5 years and up to 20 years in prison, a term of supervised release of between 5 years and life, and a maximum fine of $250,000. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Quintero will also be required to register as a sex offender upon his release from prison.
This case was investigated by the FBI Albany’s Child Exploitation Task Force, which includes members of federal, state, and local law enforcement agencies, including the Colonie Police Department, Rotterdam Police Department, and the New York State Police. Assistant United States Attorney Allen J. Vickey is prosecuting this case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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 https://www.justice.gov/psc.
SW Georgia Resident Pleads Guilty to Firearms Charge, Sold Stolen RiflesRead the Press Release
ALBANY, Ga. – An Americus, Georgia, resident with a criminal history pleaded guilty to illegally possessing a firearm after he was arrested stealing rifles from the local Walmart, which he sold for cash and drugs.
Brandon Michael Hatfield, 31, pleaded guilty to illegal possession of a firearm by a convicted felon today before U.S. District Judge Leslie A. Gardner. Hatfield faces a maximum of 15 years in prison to be followed by three years of supervised release and a maximum $250,000 fine. Sentencing is scheduled for Sept. 7. There is no parole in the federal system.
“The defendant stole several rifles in a matter of weeks, flipping them quickly for cash and drugs and thereby increasing the number of stolen firearms on the streets of Americus,” said U.S. Attorney Peter D. Leary. “Law enforcement at every level is working to reduce the number of firearms in the hands of criminals in an effort to improve the safety within every community across the Middle District of Georgia.”
“The unlawful acquisition and selling of firearms are serious crimes that feed and intensify the violence that plagues so many communities here and abroad," said Assistant Special Agent in Charge Beau Kolodka. "This investigation illustrates the collective resolve of ATF and our law enforcement partners working together to make a safer community.”
According to court documents, Hatfield attempted to steal a Rossi, 22LR caliber rifle from the Walmart in Americus, Georgia, on Nov. 18, 2022, but was stopped by Walmart employees before he could exit the store with the weapon. An investigation by Walmart’s security team revealed that Hatfield stole a total of five rifles on five different occasions from the store between Nov. 1 and Nov. 16. Hatfield admitted that he stole the firearms and traded them for money and drugs.
Hatfield has been convicted of several felonies, including dealing methamphetamine, escape and residential entry in Decatur County, Indiana, Superior Court. It is illegal for a convicted felon to possess a firearm.
The case was investigated by ATF and the Americus Police Department. Assistant U.S. Attorney Matthew Redavid is prosecuting the case for the Government.
Rock Island Man Sentenced to 84 Months in Prison for Felon in Possession of a Firearm and AmmunitionRead the Press Release
ROCK ISLAND, IL – Anthony Tony Gay, 49, of the 1200 block of 14th Street, Rock Island, was sentenced on May 24, 2023, to 84 months in the Bureau of Prisons, to be followed by a three-year term of supervised release, for Felon in Possession of a Firearm and Felon in Possession of Ammunition.
Gay was found guilty of the charges following a three-day jury trial in May 2022. At the trial, the government presented evidence that on May 31, 2020, a vehicle in which Gay was a passenger, was stopped by Rock Island police officers for a traffic violation. Gay fled from the traffic stop but fell as he was being chased by police. He was arrested a short distance away. When officers retraced Gay’s flight path, they found a loaded Glock model 36 .45 pistol in the location where he fell.
Approximately two weeks later, on June 14, 2020, Rock Island police were called to a Rock Island motel where Gay had been renting a room prior to his arrest. As motel personnel were cleaning Gay’s room and removing his belongings, one of them located a bag of .45 ammunition containing the same type of rounds that had been loaded in the Glock pistol.
During the trial, the government also established that Gay had an extensive number of prior felony convictions, including robbery, aggravated battery, and possession of a weapon in prison.
At the sentencing hearing before U.S. District Judge James Shadid, the government presented evidence that Gay’s prior robbery conviction involved him and several other gang members beating a 15-year-old boy who had been riding his bicycle, and that Gay had committed that crime only one day after being released from prison. The government further presented evidence of Gay’s extensive history of misconduct while in prison, which included several aggravated batteries of correctional officers.
In pronouncing sentence, Judge Shadid remarked that the nature and circumstances of the offense were serious, in that Gay, a felon on parole at the time of the offense, possessed a loaded firearm and fled from police. That, combined with Gay’s lengthy criminal record and violent history, including the act of violence against a 15-year-old, indicated to the judge that Gay was dangerous and that the 84-month prison sentence was necessary to protect the public.
The statutory penalties for the charges are up to ten years of imprisonment for each Count, a $250,000 fine, and up to a three-year term of supervised release.
The investigation was conducted by the Rock Island Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys John Mehochko and Jennifer Mathew and former Assistant U.S. Attorney Alyssa Raya represented the United States in the prosecution.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Property Manager Pleads Guilty to Stealing Government FundsRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Oliver Barrington King (44, Deland) has pleaded guilty to theft of government funds. King faces a maximum penalty of 10 years in federal prison. In addition, King has agreed to forfeit $16,618.91, the amount he obtained as a result of the offense. A sentencing date has not yet been scheduled.
According to the plea agreement, King was the property manager for an apartment complex that received Section 8 project-based rental assistance funding from the Department of Housing and Urban Development (HUD). As property manager, King had access to the HUD funding and misappropriated the government funds for his own unjust enrichment.
This case was investigated by the Department of Housing and Urban Development – Office of Inspector General. It is being prosecuted by Assistant United States Attorney Shannon Laurie.
Project LEAD Graduates 47 Students in the Municipality of Toa AltaRead the Press Release
SAN JUAN, Puerto Rico– This week, a total of 47 students from the Alejandro Jr. Cruz Elementary School and the José Pablo Morales Miranda Middle School in Toa Alta graduated from the Project LEAD school program in a ceremony held in U.S. District Court for the District of Puerto Rico. In January of 2023, the United States Attorney’s Office for the District of Puerto Rico began a 20-week school curriculum in both schools. The curriculum focused on the legal and social consequences of juvenile crimes and included techniques to help students resolve conflicts and resist peer pressure. Assistant United States Attorney Dennise Longo Quiñones, Chief of the Public Affairs and Community Engagement Division was the facilitator in charge of leading the weekly sessions with the students.
Project LEAD (Legal Enrichment and Decision-making) was established in 1993 by the Los Angeles County District Attorney’s Office in partnership with the Constitutional Rights Foundation. Its goal is to teach children that the choices they make today can affect their lives forever. An evaluation of the program conducted by Bernadette Chi, PhD and Ellen Middaugh, M.A. of the University of California, Berkley showed that Project LEAD provides:
- Protective factors that decrease students’ propensity to become involved in negative and illegal activities.
- An increase in students’ knowledge about the legal system.
- An increase in positive dispositions, for example: Confidence in their own decision-making capacities; Attitudes about the legal system; and Attitudes about authority.
The USAO launched the program in two public schools in Loíza in December of 2020. The USAO translated the Project LEAD program into the Spanish language and tailored the curriculum to focus on situations that youth in the District of Puerto Rico are likely to encounter. The 20-week curriculum focuses on the social and legal consequences of juvenile crimes, such as truancy, illicit drug use, shoplifting, graffiti, animal abuse, and bullying. Project LEAD also teaches students techniques to resolve conflicts, resist peer pressure, promote tolerance and respect for diversity, and the role of education to achieve economic stability. Students also learn about the federal and state judicial systems, including how each operates, and the roles played by prosecutors, defense attorneys, judges, and defendants in the litigation process. The curriculum concludes with the students’ performance of a scripted mock trial, putting into practice what they have learned about the criminal justice system.
United States Attorney for the District of Puerto Rico W. Stephen Muldrow stated: “We are grateful for the schools and the parents who trusted the USAO personnel along with other state and federal law enforcement agencies to provide the students with the skills and experience to evaluate challenging situations and help them make good decisions. We are looking forward to expanding our Project LEAD with the participation of the personnel from the Proyecto de Seguridad y Educación para el Desarrollo de la Niñez who have adopted our program and will continue to work along with us to continue with our project throughout Puerto Rico.”
This Project was possible with the collaboration of many federal and state agencies. Special thanks to the U.S. District Court for the District of Puerto Rico; the Office of the Governor of Puerto Rico; the Federal Public Defender; the U.S. Marshals Service, the Federal Bureau of Investigations, the Drug Enforcement Administration; the Hispanic Affairs Advisory Council; the PR Department of Justice; the PR Department of Public Safety; the PR Department of Education, in particular, the personnel at the Bayamón Regional Office; the PR Police Bureau; the PR Department of Corrections and Rehabilitation; the Administration of Juvenile Institutions; the PR Department of Natural and Environmental Resources; and personnel from the US Attorney’s Office.
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Primary Care Physicians to Pay $1.5 Million to Resolve False Claims Act Liability for Submitting Unsupported Diagnoses to the Medicare Advantage ProgramRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Complete Physician Services, Kenneth Wiseman, DO, and Steven Schmidt, DO (collectively, “CPS”), have agreed to pay a total of $1,500,000 plus interest to resolve False Claims Act allegations that they caused the submission of false claims by misrepresenting the severity of illness and services rendered to increase reimbursement from the Medicare Part C (Medicare Advantage) and Part B programs.
CPS, a primary care physician practice located in Philadelphia, treated patients under the Medicare Advantage program and the Medicare Part B (Medical Insurance) program. The government alleges that CPS caused the submission of false claims for payment to Part C from January 1, 2015, to December 31, 2018, arising from CPS submitting unsupported diagnosis codes, resulting in increased reimbursement to Part C health insurance companies. Specifically, CPS submitted morbid obesity diagnosis codes to Part C where the diagnoses lacked medical support in that patients had a body mass index under 35. The government contends that the diagnosis of morbid obesity in this situation is inappropriate. Further, the government alleges that CPS’s submission of chronic obstructive pulmonary disease (“COPD”) diagnoses were not medically supported or supported by appropriate medical documentation in many instances. As a result of these unsupported diagnoses, CPS substantially increased Part C reimbursement from the Centers for Medicare & Medicaid Services (“CMS”).
The government also alleges that CPS caused the submission of inappropriate claims to the Medicare Part B program that were not supported by medical documentation from January 1, 2015, to December 31, 2018, in order to maximize its reimbursement. Specifically, the government contends that CPS improperly billed Evaluation and Management visits using Current Procedural Terminology Code 99214 without the requisite level and complex medical decision making that this code requires. Further, CPS inappropriately billed physician assistant services “incident to” the professional services of a physician including occasions when the physician was out of the country. Finally, CPS also submitted unsupported billing to CMS for smoking cessation counseling, pulmonary function tests, and unsupported claims for vaccine administration.
“Almost half of Medicare beneficiaries are now enrolled in Medicare Advantage plans. Investigation of credible allegations of fraud impacting it is more important than ever,” said U.S. Attorney Romero. “The Medicare Advantage Program relies on accurate information about its enrollees’ health status, such as whether they really have morbid obesity or COPD. It is imperative that enrollees receive appropriate treatment and that participating providers and health plans receive proper compensation for the services they actually provide. We will hold accountable those who report unsupported diagnoses to inflate Medicare Advantage payment.”
“Today’s settlement shows our attention to and commitment in investigating all potential allegations of fraud against the Medicare Part C Programs, no matter the size of the physician practice, or the complexity of the scheme,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General. “We will continue to partner with the United States Attorney’s Office to evaluate allegations brought under the False Claims Act to ensure the integrity of Medicare programs.”
This settlement resolved a lawsuit filed under the False Claims Act in the U.S. District Court for the Eastern District of Pennsylvania by former CPS employees captioned United States ex rel. Michael Helzner, D.O., et al. v. Complete Physician Services, LTD, at al., No. 16-cv-5401 (E.D. Pa.). Under the qui tam or whistleblower provisions of the False Claims Act, lawsuits like this one may be brought on behalf of the United States and the relators share in any recovery by the government. The relators were represented in this case by John M. Hanamirian of the Hanamirian Law Firm. “We thank the relators and the relators’ counsel for their contributions. Detecting fraud is much easier when we have the cooperation of whistleblowers like the ones in this case,” said Romero.
This matter was investigated by the U.S. Attorney’s Office for the Eastern District of Pennsylvania, in conjunction with the U.S. Department of Health and Human Services Office of Inspector General. The investigation and settlement were handled by Assistant U.S. Attorney Deborah W. Frey, Civil Division Chief Gregory B. David, and Auditor George Niedzwicki.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Pennsylvania Physician Sentenced to Prison for HOPE Clinic Prescription PracticesRead the Press Release
CHARLESTON, W.Va. – Brian Gullett, D.O., 46, of Clarksville, Pennsylvania, was sentenced today to six months in prison, to be followed by one year of supervised release, and fined $5,000 for aiding and abetting obtaining a controlled substance by fraud. Gullett admitted to unlawful prescription practices at HOPE (Hitech Opioid Pharmachovigilance Expertise) Clinic, a purported pain management clinic that operated in Beckley, Beaver and Charleston, West Virginia, and Wytheville, Virginia.
Gullett also surrendered his medical license and his Drug Enforcement Administration (DEA) certificate of registration, and agreed not to apply for re-registration to dispense Schedule II controlled substances.
“The criminal conduct in this case exploited and worsened an already devastating opioid crisis,” said United States Attorney Will Thompson. “This office and its law enforcement partners are resolved to bring to justice those who allow greed to outweigh their oaths and duties as health care professionals.”
According to court documents and statements made in court, from November 2010 until June 11, 2015, practitioners associated with HOPE Clinic prescribed thousands of oxycodone- and morphine-based pills to individual customers. Some of these prescriptions provided customers with an average of four to seven pills per day. Several HOPE Clinic locations averaged 65 or more customers a day during a 10-hour workday with only one practitioner working.
Gullett admitted to signing multiple oxycodone prescriptions for 120 pills of 30 milligrams each and 30 pills of 15 milligrams each for a HOPE Clinic customer at the Charleston location on March 13, 2013. Gullett further admitted that the customer’s medical chart did not support these prescriptions and that the prescriptions were not for a legitimate medical purpose in the usual course of professional medical practice.
Evidence showed that the customer had multiple failed drug screenings, reported being addicted to pain medication, bought pills on the street, and sold pills from his HOPE Clinic prescriptions to others. Gullett admitted that he did not discuss the possibility of addiction or the need for addiction treatment with the customer.
“Medical professionals who circumvent the rules for prescribing powerful and potentially addictive pain-killers contribute to the opioids crisis facing our nation,” said Special Agent in Charge George A. Scavdis, Food and Drug Administration (FDA) Office of Criminal Investigations Metro Washington Field Office. “Our office will continue to pursue and bring to justice those who see addiction as an opportunity for profit.”
Gullett was initially indicted in 2018 along with the owners, managers and other physicians associated with HOPE Clinic and PPPFD. Five other physicians have also pleaded guilty. The remaining defendants are awaiting trial. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Thompson made the announcement and commended the investigative work of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG), the Internal Revenue Service-Criminal Investigations (IRS-CI), the Food and Drug Administration-Office of Criminal Investigations (FDA-OCI), the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the West Virginia State Police, the Metropolitan Drug Enforcement Network Team (MDENT), the Beckley Police Department, the Kentucky State Police, the Harrison County, Kentucky, Sheriff’s Department, and the Appalachia High Intensity Drug Trafficking Area Task Force (AHIDTA).
United States District Judge Frank W. Volk imposed the sentences. Assistant United States Attorneys Monica Coleman, Steve Loew and Owen Reynolds prosecuted the case.
This prosecution was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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. 2:22-cr-167.
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Parkersburg Man Pleads Guilty to Child Pornography CrimeRead the Press Release
CHARLESTON, W.Va. – Robert Anthony Thomas, 46, of Parkersburg, pleaded guilty today to distribution and attempted distribution of child pornography.
According to court documents and statements made in court, from about June 1, 2020, through about August 23, 2022, Thomas made over 105,000 digital media files of child pornography available to others by using a peer-to-peer file sharing program. Thomas admitted that he knew the digital media files contained child pornography and would be downloaded by others. Thomas further admitted that the digital media files included a video file of a prepubescent female engaged in sexually explicit conduct.
On August 23, 2022, Thomas possessed more than 100 images and 14 videos on his laptop and external hard drive depicting minors engaged in sexually explicit conduct. Thomas admitted that many of these images and videos depict prepubescent minors, including infants and toddlers. Thomas further admitted that several of the images and videos depict known child victims.
Thomas is scheduled to be sentenced on August 30, 2023, and faces a mandatory minimum of five years and up to 20 years in prison, five years and up to a lifetime of supervised release, and a $250,000 fine. Thomas must also register as a sex offender.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI).
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Julie M. White 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 Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-70.
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Owner of Mid-State Opioid Treatment Programs Agrees to Settle Allegations of PPP Fraud & Controlled Substance Act ViolationsRead the Press Release
NASHVILLE – James C. Sells III, of Springville, Tennessee, has agreed to pay the United States a total of $500,000 to settle allegations that he fraudulently applied for and received funds from the Paycheck Protection Program (PPP) and violated the Controlled Substances Act, announced United States Attorney Henry C. Leventis.
According to the Settlement Agreement, Sells had ownership in several office-based opioid treatment programs in middle Tennessee, including Nashville Recovery LLC, which he sold in September 2022, Everwell Medical LLC, in Murfreesboro, Forever Well, LLC, in Dickson, and Journey Medical, in Gallatin. The programs, acting through Sells, applied for, and obtained multiple loans from the PPP in the total amount of $143,109, all of which were forgiven.
In addition, in the Settlement Agreement, the United States also alleges that from January 1, 2020, through September 8, 2020, one of the providers who sees patients at two of the programs failed to secure his password to the electronic prescribing system and allowed his office manager to electronically sign prescriptions, in violation of the Controlled Substances Act.
Of the $500,000 settlement, $143,109 is restitution relating to the PPP loans; $143,109 is damages relating to the PPP loan; and the remaining $213,782 is civil penalties for violations of the Controlled Substances Act.
The civil claims settled by this Settlement Agreement are allegations only, and there has been no determination of liability.
This matter was investigated by the Drug Enforcement Administration - Diversion Group and the Tennessee Bureau of Investigation. The United States is represented by Assistant U.S. Attorney Kara F. Sweet of the Middle District of Tennessee.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Orange County Resident Sentenced to over Four Years in Prison for Scheme to Defraud Multiple Victim InvestorsRead the Press Release
SAN JOSE – Jonathan Vu Hoang, aka Co Vu Hoang, was sentenced today to 49 months in prison in connection with a scheme to create a bogus investment company and defraud multiple victim-investors by falsely promising them he would invest their money, announced U.S. Attorney Ismail Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. The sentence was handed down by the Hon. Edward J. Davila, United States District Judge.
Hoang, 59, formerly of San Jose and residing more recently in Orange County, pleaded guilty to the charges on July 11, 2022. According to his plea agreement, Hoang admitted that beginning June of 2017, he devised and implemented a scheme by which he defrauded multiple investors of their money by promising to make investments that would yield significantly high returns. The scheme continued through May of 2019 by which time Hoang solicited over $1.6 million from his victims.
Hoang admitted in his plea agreement that he told his victim-investors he was a wealthy and successful businessman and that he had access to special investment opportunities. Hoang created a bogus investment company called Dunamis Global Holdings, Ltd. and asked his victim-investors to sign Subscription Agreements with the company as a means of assuring the victims that he was making legitimate investments on their behalf. Hoang also established bank accounts and email accounts to create the appearance of a legitimate investment company. For example, when emailing with his victim-investors, Hoang copied fake Dunamis employees with fake titles. Also, Hoang created email addresses and domain names of others that appeared to belong in prominent firms and companies, such as “@deloittewealthmanagement.com” and “@dlapipercapital.com.” Hoang used the fabricated email addresses to generate and transmit emails regarding proposed investment opportunities as a means of bolstering the appearance of his legitimacy. Hoang admitted that he obtained at least $1.6 million in funds from his victim-investors and acknowledged that rather than invest any of the funds he received as promised, he spent the funds on his personal expenses and to support his lifestyle.
Hoang was charged by Felony Information on April 7, 2022, with three counts of wire fraud in violation of 18 U.S.C. § 1343. Hoang pleaded guilty to the three counts.
At sentencing, Judge Davila described Hoang’s conduct as harmful to his community, noting the financial harm and trauma caused to the victims. In directly addressing Hoang, Judge Davila expressed, “It’s a pity that these victims were preyed upon in the way that they were, and a pity that you know better.” In addition to the prison term, Judge Davila also ordered Hoang to pay a $15,000 fine and restitution and entered a forfeiture money judgment in the amount of $1.5 million. Judge Davila ordered Hoang to begin serving his sentence on August 17, 2023.
Assistant United States Attorney Anne Hsieh is prosecuting the case with assistance from Helen Yee. The prosecution is the result of an investigation by the FBI.
Orange County Man Pleads Guilty to $1.2 Million Check Fraud Scheme He Promoted on Social MediaRead the Press Release
SANTA ANA, California – A convicted felon from Orange County who used social media to instruct his Instagram followers on how to defraud banks pleaded guilty today to conspiring with a bank employee and others to commit a check fraud scheme in which they sought $1.2 million.
Meshach Samuels, 26, of Placentia, pleaded guilty to one count of conspiracy to commit bank fraud and two counts of being a felon in possession of firearms and ammunition.
According to his plea agreement, from May 2021 to March 2022, Samuels urged his Instagram followers to join his Telegram chat groups, where – for a fee of up to thousands of dollars – he would provide instructions on how to recruit accomplices and commit check fraud to steal money from banks.
Samuels and his accomplices would create fraudulent checks drawn on victim accounts, frequently using stolen information obtained from a bank teller and other sources. Samuels’ co-conspirators, aided and abetted by Samuels, would deposit the fraudulent checks into third-party accounts.
Once the check amounts were credited to the third-party accounts, Samuels’ co-conspirators, aided and abetted by Samuels, fraudulently withdrew money in amounts below $10,000 to avoid triggering bank scrutiny. The corrupt bank teller was paid a portion of the cash the conspirators obtained from negotiating fraudulent checks.
This check fraud scheme attempted to obtain at least approximately $1.2 million and caused actual losses of at least $400,000.
Samuels also admitted in his plea agreement that he participated in a scheme to defraud the California Employment Development Department (EDD) through the submission of fraudulent applications for pandemic-related unemployment insurance that contained stolen identity information. Those fraudulent applications included information from individuals who resided outside California, were deceased, or who otherwise were not eligible for unemployment insurance. Members of the scheme provided EDD with a set of common mailing addresses they controlled for multiple applications.
After EDD approved the fraudulent applications and disbursed the pandemic benefits to EDD debit accounts, Samuels and his co-schemers used the debit cards to withdraw cash at ATMs.
In total, Samuels caused at least $14,250 in actual losses to EDD.
In addition, Samuels, whose criminal history includes felony convictions in Florida for aggravated battery on a law enforcement official with an enhancement for attempted murder, admitted to unlawfully possessing firearms and ammunition. Specifically, during an August 2021 traffic stop in Costa Mesa, police officers found a firearm and ammunition concealed on his person. In March 2022, federal agents searched Samuels’ residence and seized five firearms and ammunition.
United States District Judge Cormac J. Carney scheduled an October 23, sentencing hearing, at which time Samuels will face a statutory maximum sentence of 30 years in federal prison for the bank fraud conspiracy count and up to 10 years’ imprisonment for each count of illegally possessing firearms and ammunition.
In a related case, Sasha Lizette Jimenez, 26, Samuels’ former girlfriend, pleaded guilty on May 22 to one count of conspiracy to commit bank fraud for running the EDD fraud scheme in which Samuels participated. Jimenez, who was the bookkeeper for the conspiracy, caused the issuance of at least $2.8 million in fraudulent UI benefit debit cards – and at least $2.3 million was withdrawn from those debit cards. Judge Carney has scheduled an October 30 sentencing hearing for Jimenez.
The investigation into this scheme was conducted by the Los Angeles El Camino Real Financial Crimes Task Force, a multi-agency task force led by Homeland Security Investigations that includes federal and state investigators who are focused on financial crimes in Southern California. The Treasury Inspector General for Tax Administration also participated in this investigation. The Costa Mesa Police Department, the Inglewood Police Department, the Placentia Police Department, the New York City Police Department, and the Miami Beach Police Department provided assistance.
Assistant United States Attorneys Rachel N. Agress of the International Narcotics, Money Laundering, and Racketeering Section, and David Y. Pi of the Major Frauds Section are prosecuting Samuels. AUSA Agress is prosecuting Jimenez.
Ontario County Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Eric Passalacqua, 37, of Phelps, NY, pleaded guilty to receipt and distribution of child pornography before U.S. District Judge Frank P. Geraci. The charges carry a minimum penalty of five years in prison, a maximum penalty of 40 years, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that on January 20, 2023, the FBI in Rochester received information from the FBI in Anchorage Alaska, that an individual located in Phelps, NY, may have been responsible for exchanging child pornography with an individual in Alaska. Subsequent investigation determined that individual was Passalacqua. On January 24, 2023, a search warrant was executed at Passalacqua’s Phelps residence. A forensic examination of his phone recovered over 600 images of child pornography, including images that Passalacqua produced depicting a minor victim. Passalacqua also admitted to producing images of another minor victim.
The conviction is the result of an investigation by the Federal Bureau of Investigation Child Exploitation Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia and the Anchorage Office of the FBI, under the direction of Special Agent-in-Charge Antony A. Jung.
Sentencing is scheduled for August 24, 2023, before Judge Geraci.
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Onslow County Drug Dealer Who Supplied Prostitutes in his Home Sentenced to More than Six Years in PrisonRead the Press Release
RALEIGH, N.C. – A Jacksonville man was sentenced today to 78 months in prison for his role in a drug conspiracy that involved the distribution of methamphetamine and fentanyl from March 2019 through August 2021. On March 2, 2023, Roderick Wall, 49, pled guilty to drug conspiracy, distribution, and possession with the intent to distribute.
“Fentanyl is the single deadliest drug that our nation has encountered, and it is killing far too many in Eastern North Carolina,” said U.S. Attorney Michael Easley. “This defendant openly sold drugs to pregnant women and prostitutes and dealt deadly narcotics in front of his minor children. We are proud to partner with the FBI and Onslow County Sheriff’s Office to put those pushing deadly drugs into our communities behind bars.”
According to court documents and information presented in court, law enforcement initiated an investigation after receiving reports of illegal activity at Wall’s residence. The investigation revealed that Wall sold drugs, including heroin, fentanyl, and methamphetamine, for at least two and a half years. The investigation also revealed that Wall facilitated prostitution, including by posting online advertisements for sexual services and allowing females to engage in commercial sex out of his home, often while supplying them with drugs.
Between April and August of 2021, agents conducted six controlled purchases of narcotics from Wall, at or near his home. In at least two of the purchases, Wall sold fentanyl to a female who was visibly pregnant, and even discussed the pregnancy with her during one of the transactions. Wall’s wife and two minor children lived in the home with him and were present during some of the drug transactions and when investigators executed a search warrant on August 18, 2021. The search recovered pills, over 28 grams of crystal methamphetamine, over 23 grams of fentanyl, a 9mm pistol with an obliterated serial number, two .22 caliber rifles, marijuana, more than $5,000, and a home surveillance system. The surveillance footage from inside the home depicted drug transactions, as well as another pregnant female injecting fentanyl supplied by Wall.
A co-defendant in the case was previously sentenced to 60 months’ imprisonment.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Federal Bureau of Investigation and the Onslow County Sheriff’s Office investigated the case and Assistant U.S. Attorney Bryan M. Stephany prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-cr-90-D.
Norwich Man Pleads Guilty to Fraud and Tax Offenses Stemming from Scheme that Victimized Women Through Social Media AccountsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Joleen D. Simpson, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that on May 23, 2023, DEXTER ENWEREM, 36, of Norwich, waived his right to be indicted and pleaded guilty in Bridgeport federal court to fraud and tax offenses stemming from a scheme that defrauded women approached through their social media accounts.
According to court documents and statements made in court, between approximately September 2019 and March 2021, Enwerem participated in a scheme to defraud individuals, primarily women, who were contacted through their Facebook and Instagram accounts. As part of the scheme, a co-conspirator of Enwerem would use a false identity and make false representations to approach and befriend victims through the social media platforms. As the relationship progressed, the co-conspirator would sometimes move the communication to Google Hangouts, an online platform that allows users to communicate by video call or direct chat message. Eventually, the co-conspirator would request money from the victim based on various false representations of need. The victims would then send money by wire transfers, checks, money orders, and cash. Some of the money was wired into bank accounts that Enwerem controlled, and some was sent in packages to an address where Enwerem could receive them.
Through this scheme, Enwerem and his co-conspirators defrauded victims of approximately $450,000. Enwerem wired approximately $220,000 of these funds to bank accounts in Nigeria. In response to bank officials who questioned the nature of these wire transfers, Enwerem falsely stated that the recipients were family members and that the funds were intended to take care of his grandmother, and for household expenses.
Enwerem also failed to pay taxes on the income he fraudulently obtained.
Enwerem pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of tax evasion, which carries a maximum term of imprisonment of five years. As part of his plea, he has agreed to pay restitution of $449,189 to his victims, and $127,299 in back taxes for the 2019 and 2020 tax years.
Enwerem was arrested on related state charges on March 24, 2021. He is released on a $200,000 bond pending sentencing, which is not scheduled.
This investigation is being conducted by the Federal Bureau of Investigation’s Connecticut Cyber Task Force (CCTF), the Internal Revenue Service – Criminal Investigation Division, and the Norwich Police Department, with the assistance of the Hartford Police Department.
The FBI’s CCTF is staffed with detectives from the Connecticut State Police’s Cyber Crimes Investigation Unit and the Bristol, Hartford, Stamford, and UConn Police Departments, as well as an agent from the Internal Revenue Service – Criminal Investigation Division. To contact the CCTF or report a cyber incident, please call the FBI’s New Haven Field Office at 203-777-6311 or file a complaint with the FBI's Internet Crime Complaint Center at https://www.ic3.gov.
The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
North Charleston Man Sentenced to Twelve Years in Federal Prison for Sexual Exploitation of a Minor Through SnapchatRead the Press Release
CHARLESTON, SOUTH CAROLINA — Ty’Qwane Antonio Dix, 26, of North Charleston, was sentenced to 151 months in federal prison for sexual exploitation of a minor.
In October 2022, Dix pleaded guilty to use of an interstate commerce facility to entice a minor to engage in sexual activity. According to court documents and hearings, from August 2020 through January 2021, Dix portrayed himself online as a 19-year-old male. In that capacity, he enticed and coerced a 12-year-old girl in Virginia into sending him sexually explicit videos and images of herself via Snapchat. Dix later threatened to send her videos/images to others if she did not comply with his requests.
United States District Judge Bruce Howe Hendricks sentenced Dix to 151 months in prison, to be followed by a life term of court-ordered supervision. There is no parole in the federal system.
The Federal Bureau of Investigation (FBI) investigated the case. Assistant U.S. Attorney Dean H. Secor prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and CEOS, 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.
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North Carolina Man Sentenced to Prison for Tax EvasionRead the Press Release
A North Carolina man was sentenced today to 36 months in prison for tax evasion.
According to court documents and statements made in court, Darren Lee Joy of Matthews did not file individual income tax returns for most of the past two decades, even though he was required to do so based on the amount of income he earned. Joy evaded taxes by submitting and maintaining with his employers Forms W-4 and state tax forms that falsely claimed he was exempt from federal and state income tax withholding. As a result, taxes were not withheld from his wages and little to no taxes were paid to the IRS. In total, Joy earned more than $1.8 million in income and owed more than $380,000 in state and federal income taxes.
In addition to the term of imprisonment, U.S. District Court Judge Frank D. Whitney ordered Joy to serve two years of supervised release and to pay $359,859 in restitution to the United States and $23,058 in restitution to the State of California.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Dena J. King for the Western District of North Carolina and Special Agent in Charge Donald “Trey” Eakins of the IRS-Criminal Investigation Charlotte Field Office made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Brian Flanagan of the Justice Department’s Tax Division and Assistant U.S. Attorney Caryn Finley for the Western District of North Carolina prosecuted the case.
New Britain Man Involved in Florida to Connecticut Gun Trafficking Scheme sentenced to More Than 5 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ERIC WOODIE, 32, of New Britain, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 66 months of imprisonment, followed by five years of supervised release, for trafficking and possessing firearms, and for distributing cocaine.
According to court documents and statements made in court, on January 18, 2021, Woodie and Dominic Colon-Brown sold a .22 caliber firearm to an individual for $1,200. Woodie, Brown and Julian Judge then conspired to obtain stolen firearms in Florida and sell them in Connecticut. In late February 2021, Woodie rented a car, which Colon-Brown and Judge used to drive to Florida to obtain stolen firearms and bring them back to Connecticut. Woodie also provided Colon-Brown and Judge with cash to purchase firearms. Colon-Brown and Judge purchased three stolen handguns in Florida, transported them back to Connecticut, and provided them to Woodie.
Woodie was arrested on March 8, 2021, after he ran from New Britain Police officers and discarded a .40 caliber handgun, equipped with a laser and loaded high capacity magazine, during the chase. The firearm was recovered and a search of Woodie’s person revealed five knotted plastic baggies containing cocaine, as well as $1,038 in cash. A subsequent search of Woodie’s residence revealed the three stolen handguns they acquired in Florida, two extended magazines, more than 100 rounds of ammunition, and an additional distribution quantity of cocaine.
During the investigation, Woodie and his associates were captured in recorded conversations discussing the illegal acquisition and sale of firearms. Colon-Brown and Judge also posted photos of themselves on social media in possession of firearms.
Woodie has been detained since his arrest. On March 2, 2023, he pleaded guilty to one count of possession with intent to distribute cocaine, and one count of possession of a firearm in furtherance of a drug trafficking crime.
Colon-Brown, of Farmington, and Judge, of New Britain, each pleaded guilty to one count of transporting stolen firearms across state lines. On May 27, 2022, Judge was sentenced to 24 months of imprisonment and ordered to pay a $3,000 fine. On August 22, 2022, Colon-Brown was sentenced to 12 months of imprisonment and ordered to pay a $2,200 fine.
This investigation was conducted by the FBI’s Northern Connecticut Gang Task Force, the New Britain Police Department, the Farmington Police Department, the West Hartford Police Department, and the Pasco County (Fla.) Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Angel M. Krull.
This prosecution 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. In May 2021, the Justice 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.
Nebraska City Woman Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Amy Henner, 45, of Nebraska City, Nebraska, was sentenced on May 23, 2023, by Senior United States District Court Judge John M. Gerrard to a term of 66 months’ imprisonment following her conviction for possession with intent to distribute methamphetamine. After she completes her prison sentence, Henner will also serve three years on supervised release. There is no parole in the federal system.
On March 18, 2021, Henner was approached by police investigators in Lincoln. Investigators found that she had about a half-pound of methamphetamine in her purse. The methamphetamine was sent to the Nebraska State Patrol Crime Lab where a forensic scientist confirmed the presence of at least 190 grams of pure methamphetamine. Henner admitted to investigators that she had been selling methamphetamine to others.
This case was investigated by the Nebraska State Patrol and the Lincoln/Lancaster County Narcotics Task Force which is made up of officers from the Nebraska State Patrol, Lincoln Police Department, and the Lancaster County Sheriff’s Office.
Minneapolis Felon Sentenced to More Than Seven Years in Prison for Possession of a Stolen FirearmRead the Press Release
ST. PAUL, Minn. – A Minneapolis man has been sentenced to 92 months in prison, followed by three years of supervised release, for possessing a firearm as a felon, announced U.S. Attorney Andrew M. Luger.
According to court documents, on August 29, 2022, Lamonte Edjuan Brown, 39, pointed a loaded gun at two victims outside of a Minneapolis apartment complex. Officers with the Minneapolis Police Department were dispatched to the apartment, and when they approached Brown, he fled on foot. Officers chased Brown and apprehended him. In Brown’s sweatshirt pocket, officers found the loaded gun—a .40 caliber Smith & Wesson semi-automatic pistol that had been reported stolen by the Eagan Police Department.
Brown pleaded guilty on January 11, 2022, to one count of possession of a firearm as a felon. He was sentenced today in U.S. District Court by Senior Judge Susan Richard Nelson. In handing down the sentence, Judge Nelson remarked that that “the trauma in this case is palpable,” and emphasized that “our community is experiencing an epidemic of gun violence.”
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department.
Assistant U.S. Attorney Hillary A. Taylor prosecuted the case.
Michigan Vascular Surgeon Sentenced to 80 Months in Prison for Health Care Fraud Conviction and Agrees to Pay up to $43.419 Million to Resolve False Claims Act AllegationsRead the Press Release
Vasso Godiali, a vascular surgeon from Bay City, Michigan, was sentenced on May 3 to 80 months in prison for orchestrating a multimillion-dollar scheme to defraud health care programs by submitting claims for the placement of vascular stents and for thrombectomies that he did not perform and was ordered to pay $19.5 million in restitution collectively to Medicare, Medicaid, and Blue Cross/Blue Shield of Michigan (BCBSM). Additionally, Godiali agreed to pay the United States up to $43,419,000 to resolve related civil allegations that his fraudulent billings to federal health care programs violated the False Claims Act (FCA).
According to a plea agreement that Godiali entered on Feb. 8, 2022, Godiali began to knowingly defraud medical insurers, including Medicare and Medicaid, in approximately 2009. Godiali billed for the placement of multiple vascular stents in the same blood vessel and prepared medical records purporting to document the medical necessity justifying that billing. In fact, however, Godiali did not place those stents and admitted to billing for services never rendered while preparing materially inaccurate medical records to justify the fraudulent billings.
Godiali also billed for arterial thrombectomies and created medical records that stated he encountered occluded arteries that would justify the performance of the procedures. However, he admitted that he often encountered no such occlusions, performed no such thrombectomies, and thus billed insurers for services never rendered while preparing false medical records to justify the fraudulent claims. Godiali’s fraudulent practices resulted in $14,473,000 in damages to the federal government, and a total of $19.5 million across Medicare, Medicaid, and BCBSM, which he agreed to repay as restitution as part of his plea agreement.
In the related FCA action, in addition to alleging that Godiali submitted false claims for procedures that he never performed, the United States alleged that Godiali improperly used Modifier 59 to “unbundle” services that should have been billed together in a single claim to increase his reimbursements from federal health care programs.
A civil forfeiture case resulted in the seizure of approximately $39.9 million from financial accounts controlled by Godiali. Except for $7.5 million, which will be released to Godiali’s wife pursuant to an agreement with the United States, all of the seized funds will be used to pay the criminal judgment or the FCA settlement.
“We will not tolerate the use of federal health care programs as a source of personal enrichment,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our commitment to protecting the integrity of those programs and the taxpayer funds used to support them.”
“A priority of my office is protecting our district against unscrupulous health care providers.” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “Dr. Godiali stole an enormous amount of money from both public and private health insurers over a number of years, and falsified medical records to cover up his scheme to defraud. We hope that today’s sentence and substantial civil recovery deter any other physicians likewise inclined to line their pockets at the expense of the public.”
“This provider egregiously stole millions of dollars from taxpayers by billing federal health care programs for services that were neither medically necessary nor rendered to his patients,” said Special Agent in Charge Mario M. Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “As this case demonstrates, HHS-OIG and our partners remain committed to ensuring that vital taxpayer dollars are used lawfully and for their intended purposes, not for the illegitimate financial gain of an individual provider.”
“The scope of Godiali’s fraud is truly stunning,” said Special Agent in Charge James A. Tarasca of the FBI Detroit Field Office. “This investigation proves the collective resources of law enforcement and the private sector can successfully combat fraud in our health care system.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Innovative Solutions Consulting, LLC. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of the civil resolution, Innovative Solutions will receive up to $4,341,900. The qui tam case is captioned U.S. ex rel. Innovative Solutions Consulting LLC v. Vasso Godziachvili Godiali, M.D., Case No. 1:15-cv-14150-TLL-PTM (E.D. Mich.).
The criminal case was prosecuted by Assistant U.S. Attorneys John Neal, Philip Ross, and Craig Wininger for the Eastern District of Michigan. The FCA matter was handled by Senior Trial Counsel Sarah Arni of the Justice Department’s Civil Division and Assistant U.S. Attorney John Postulka for the Eastern District of Michigan. The civil forfeiture action was handled by Assistant U.S. Attorney Philip Ross for the Eastern District of Michigan. These matters received assistance from HHS-OIG, the FBI, the Michigan Attorney General’s Office, and the Michigan Department of Health and Human Services Office of Inspector General.
Except as to conduct admitted in connection with the criminal resolution, the claims resolved by the civil settlement are allegations only and there has been no determination of liability.
Michigan Vascular Surgeon Sentenced to 80 Months in Prison for Health Care Fraud Conviction and Agrees to Pay up to $43.419 Million to Resolve False Claims Act AllegationsRead the Press Release
Vasso Godiali, a vascular surgeon from Bay City, Michigan, was sentenced on May 3 to 80 months in prison for orchestrating a multimillion-dollar scheme to defraud health care programs by submitting claims for the placement of vascular stents and for thrombectomies that he did not perform and was ordered to pay $19.5 million in restitution collectively to Medicare, Medicaid, and Blue Cross/Blue Shield of Michigan (BCBSM). Additionally, Godiali agreed to pay the United States up to $43,419,000 to resolve related civil allegations that his fraudulent billings to federal health care programs violated the False Claims Act (FCA).
According to a plea agreement that Godiali entered on Feb. 8, 2022, Godiali began to knowingly defraud medical insurers, including Medicare and Medicaid, in approximately 2009. Godiali billed for the placement of multiple vascular stents in the same blood vessel and prepared medical records purporting to document the medical necessity justifying that billing. In fact, however, Godiali did not place those stents and admitted to billing for services never rendered while preparing materially inaccurate medical records to justify the fraudulent billings.
Godiali also billed for arterial thrombectomies and created medical records that stated he encountered occluded arteries that would justify the performance of the procedures. However, he admitted that he often encountered no such occlusions, performed no such thrombectomies, and thus billed insurers for services never rendered while preparing false medical records to justify the fraudulent claims. Godiali’s fraudulent practices resulted in $14,473,000 in damages to the federal government, and a total of $19.5 million across Medicare, Medicaid, and BCBSM, which he agreed to repay as restitution as part of his plea agreement.
In the related FCA action, in addition to alleging that Godiali submitted false claims for procedures that he never performed, the United States alleged that Godiali improperly used Modifier 59 to “unbundle” services that should have been billed together in a single claim to increase his reimbursements from federal health care programs.
A civil forfeiture case resulted in the seizure of approximately $39.9 million from financial accounts controlled by Godiali. Except for $7.5 million, which will be released to Godiali’s wife pursuant to an agreement with the United States, all of the seized funds will be used to pay the criminal judgment or the FCA settlement.
“We will not tolerate the use of federal health care programs as a source of personal enrichment,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our commitment to protecting the integrity of those programs and the taxpayer funds used to support them.”
“A priority of my office is protecting our district against unscrupulous health care providers.” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “Dr. Godiali stole an enormous amount of money from both public and private health insurers over a number of years, and falsified medical records to cover up his scheme to defraud. We hope that today’s sentence and substantial civil recovery deter any other physicians likewise inclined to line their pockets at the expense of the public.”
“This provider egregiously stole millions of dollars from taxpayers by billing federal health care programs for services that were neither medically necessary nor rendered to his patients,” said Special Agent in Charge Mario M. Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “As this case demonstrates, HHS-OIG and our partners remain committed to ensuring that vital taxpayer dollars are used lawfully and for their intended purposes, not for the illegitimate financial gain of an individual provider.”
“The scope of Godiali’s fraud is truly stunning,” said Special Agent in Charge James A. Tarasca of the FBI Detroit Field Office. “This investigation proves the collective resources of law enforcement and the private sector can successfully combat fraud in our health care system.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Innovative Solutions Consulting, LLC. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of the civil resolution, Innovative Solutions will receive up to $4,341,900. The qui tam case is captioned U.S. ex rel. Innovative Solutions Consulting LLC v. Vasso Godziachvili Godiali, M.D., Case No. 1:15-cv-14150-TLL-PTM (E.D. Mich.).
The criminal case was prosecuted by Assistant U.S. Attorneys John Neal, Philip Ross, and Craig Wininger for the Eastern District of Michigan. The FCA matter was handled by Senior Trial Counsel Sarah Arni of the Justice Department’s Civil Division and Assistant U.S. Attorney John Postulka for the Eastern District of Michigan. The civil forfeiture action was handled by Assistant U.S. Attorney Philip Ross for the Eastern District of Michigan. These matters received assistance from HHS-OIG, the FBI, the Michigan Attorney General’s Office, and the Michigan Department of Health and Human Services Office of Inspector General.
Except as to conduct admitted in connection with the criminal resolution, the claims resolved by the civil settlement are allegations only and there has been no determination of liability.
Mexican National Sentenced to 9 years for Smuggling Firearms into Mexico from the United StatesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Brendan Iber, Special Agent in Charge of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced today that Jesus Barron was sentenced to 115 months in prison. Barron, 35, of Deming, pleaded guilty on Sept. 29, 2022, to one count of conspiracy, six counts of making a false statement in the acquisition of a firearm, and one count of smuggling goods from the United States. Upon his release from prison, Barron will be subject to deportation.
According to the plea agreement and other court records, from January of 2021 to June of 2021, Barron paid his wife, Ana Barron, and their co-defendants, Victor Fierro-Caro, Mayra Madrid, Jose Orona, and Gloria Ramirez, to purchase firearms with the intention of smuggling them into Mexico from the United States. On June 7, 2021, seven of those firearms were seized from a Mexican national by Guardia Nacional (GN) officers operating a checkpoint in Fresnillo, Zacatecas, Mexico. Based on their knowledge, the GN officers believed that the firearms were destined for Cartel de Jalisco Nueva Generacion members in Zacatecas. Mexican Cartels prefer certain makes, models, and calibers of firearms. These "weapons of choice" are generally semi-automatic versions of military type rifles and pistols, which was consistent with the guns seized by GN officers.
During the subsequent investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), it was determined that the seven firearms seized by GN officers had been purchased by Ana Barron and two others. ATF special agents interviewed the two other individuals who advised the agents that they and several others had been paid by Barron to purchase the guns from a Federal Firearms Licensee and that they knew the firearms would be smuggled to Mexico. During an interview with special agents from the ATF, Barron admitted to overseeing a firearm trafficking network in the United States.
Ana Baron pleaded guilty on March 21, 2022, to one count of conspiracy, three counts of making false statements in acquisition of firearms, and two counts of unlawful disposal of firearms to a prohibited person and was sentenced on Sept. 21, 2022.
Mayra Madrid pleaded guilty on Feb. 7, 2022, to one count each of conspiracy and making false statements in acquisition of firearms and was sentenced on May 23, 2022.
Gloria Ramirez pleaded guilty on April 26, 2022, to one count of conspiracy and two counts of making false statements in acquisition of firearms and was sentenced on Sept. 26, 2022.
Victor Fierro-Caro pleaded guilty on May 11, 2022, to one count of conspiracy, three counts of making false statements in acquisition of firearms, and three counts of unlawful dealing in firearms and was sentenced on April 5, 2023.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant United States Attorneys Ry Ellison and Maria Y. Armijo prosecuted the case.
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Matthews, N.C. Man Is Sentenced to Three Years in Prison for Tax EvasionRead the Press Release
CHARLOTTE, N.C. – Darren Lee Joy, 63, of Matthews, N.C. was sentenced yesterday in federal court before U.S. District Judge Frank D. Whitney for tax evasion, announced Dena J. King, U.S. Attorney for the Western District of North Carolina, and Stuart M. Goldberg, Acting Deputy Assistant Attorney General for the Justice Department’s Tax Division.
Joy received a sentence of 36 months in prison followed by two years of supervised release.
Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI) joins U.S. Attorney King and Acting Deputy Assistant Attorney General Goldberg in making the announcement.
According to court documents filed in the case and the sentencing hearing, from 1987 through 1990, 1993, 1996 through 2008, and 2010 through 2021, Joy did not file individual income tax returns despite earning more income than the minimum filing requirement. In order to evade his taxes, Joy submitted and maintained with his employers Forms W-4 and state tax forms, falsely claiming that he was exempt from federal and state income tax withholding when he was not entitled to claim exempt status. As a result, court documents show that taxes were not withheld from his wages and little to no taxes were paid over to the IRS or his state of residence. In total, Joy earned more than $1.8 million in income and owed the IRS and California more than $380,000 in taxes.
On July 19, 2022, Joy pleaded guilty to one count of tax evasion for his 2015 tax return.
Joy’s original sentencing date was April 26, 2023, however, he failed to appear, and a bench warrant was issued for his arrest. During the sentencing, Judge Whitney found that Joy obstructed justice by failing to appear for his original sentencing date and by filing numerous frivolous documents with the Court and the IRS. In pronouncing the sentence, Judge Whitney said that this sentence should show others that there are consequences for not paying your taxes. In addition to the term of imprisonment, the Court ordered Joy to pay $359,859 in restitution to the IRS and $23,058 in restitution to the State of California.
U.S. Attorney King and Acting Deputy Assistant Attorney General Goldberg thanked IRS-CI for their investigation of the case.
Assistant U.S. Attorney Caryn Finley of the Western District of North Carolina and Trial Attorney Brian Flanagan of the Justice Department’s Tax Division prosecuted the case.
Maryland Man Indicted for Violent Carjacking and Kidnapping in SeafordRead the Press Release
WILMINGTON, Del. – A federal grand jury returned an indictment yesterday charging Ralph Harmon, a resident of Salisbury, Maryland, with committing a violent carjacking and kidnapping in Seaford.
According to the indictment, on January 13, 2023, defendant Ralph Harmon, 24, carjacked and kidnapped a person referred to in the Indictment as “Victim.” The Indictment alleges that the carjacking resulted in serious bodily injury to the Victim.
Harmon is charged with carjacking and interstate kidnapping. If convicted, he faces a maximum penalty of life imprisonment for the kidnapping and 25 years in prison for the carjacking. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
David C. Weiss, U.S. Attorney for the District of Delaware, and Special Agent in Charge for FBI-Baltimore Thomas Sobocinski, made the announcement. Maryland State Police, Salisbury Police Department, and Seaford Police Department provided assistance in the investigation of this case. Assistant U.S. Attorneys Jennifer K. Welsh and Samuel S. Frey are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court
Man Pleads Guilty to Federal Firearm and Drug Trafficking Charges Stemming from New Orleans Hotel ShootoutRead the Press Release
NEW ORLEANS, LOUISIANA – BRIAN JACOB, age 23, from New Orleans, pled guilty to various firearm and drug charges stemming from his participation in a December 28, 2020, shootout at the Jung Hotel on Canal Street, announced U.S. Attorney Duane A. Evans. On May 23, 2023, JACOB pled guilty to Counts 1, 2, and 3 of the superseding bill of information, that charged him with possessing firearms in furtherance of a drug trafficking crime (Count 1); participating in a conspiracy to possess with the intent to distribute quantities of marijuana (Count 2); and illegally maintaining a drug involved premises (Count 3).
JACOB will be sentenced on September 19, 2023, and faces the following sentences:
For Count 1, he will face a mandatory minimum of 5 years and a maximum of life in prison, not more than 5 years of supervised release, and not more than a $250,000.00 fine, pursuant to Title 18, United States Code, Section 924(c). Any prison sentence imposed in connection with this count must be served consecutively to any other prison sentence imposed in connection with this case.
For Count 2, he will face a maximum of 5 years in prison, at least two years of supervised release, and a fine of not more than $250,000.00 pursuant to Title 21, United States Code, Section 841(b)(1)(D); and
For Count 3, he will face a maximum sentence of 20 years in prison, up to three years of supervised release, and not more than a $500,000.00 fine, pursuant to Title 21, United States Code, Section 856(a).
Each count also carries a mandatory special assessment fee of $100.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. Assistant United States Attorneys Maurice E. Landrieu, Jr. of the Narcotics Unit and Elizabeth Privitera, Chief of the Violent Crime Unit are in charge of the prosecution.
Man Pleads Guilty to Conspiring to Traffic Kilograms of FentanylRead the Press Release
BOSTON – A Mexican man pleaded guilty yesterday to conspiring to distribute kilograms of fentanyl bound for Massachusetts from California.
Ricardo Peinado Rivera, 31, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl. U.S. District Court Judge Denise J. Casper scheduled sentencing for Aug. 29, 2023. Peinado Rivera was arrested and charged in May 2022.
In September 2021, law enforcement received information about a person living in the Dominican Republic trafficking fentanyl within the United States. Undercover law enforcement contacted the individual, who offered to sell fentanyl that would be delivered in California and then driven to Boston. In November 2021, Peinado Rivera was intercepted delivering the fentanyl in Ontario, Calif.
The charge of conspiracy to distribute and to possess with intent to distribute fentanyl provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Special assistance was provided by the Drug Enforcement Administration, Los Angeles Field Division. Assistant U.S. Attorney Samuel R. Feldman of Levy’s Narcotics & Money Laundering Unit is prosecuting the case.
Maine Woman Pleads Guilty to Stealing Public FundsRead the Press Release
BOSTON – A Maine woman pleaded guilty yesterday to stealing federal housing benefits from at least December 2004 through February 2020.
Rebecca Amelia Cranford, 63, pleaded guilty to one count of theft of government funds. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for Aug. 17, 2023. Cranford was arrested and charged in September 2021.
In the early 2000s, Cranford was engaged by the owners of a vacation home in Wellfleet to look after the property in their absence. Instead of merely looking after the property, Cranford applied for federal housing subsidies pretending to be a tenant living at the property while separately directing the housing subsidies to a business entity incorporated in her own name and listed as the landlord for the property on the housing application. In total, Cranford stole approximately $113,067 in housing assistance benefits.
The charge of theft of government funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $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 and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Field Office, made the announcement today. Valuable assistance was provided by the Maine State Police and Cumberland County (Maine) Sheriff’s Office. Assistant U.S. Attorney Adam Deitch of Levy’s Criminal Division is prosecuting the case.
Long Island Man Sentenced to 41 Months in Prison for Multi-Million-Dollar Ponzi SchemeRead the Press Release
Earlier today, at the federal courthouse in Central Islip, John Quadrino was sentenced by United States District Judge Joan M. Azrack to 41 months’ imprisonment and over $3.3 million restitution for directing a Ponzi scheme utilizing Princess Cut Industries, Inc., Sassy Jewelry Buyers, Inc. and Golden Glitter Trading, Inc. (collectively referred to as the “Gold Purchasing Companies”). Quadrino told investors that their money would be invested in the sale of gold, jewelry and diamonds, via the Gold Purchasing Companies. In reality, Quadrino never invested their money. In April 2018, Quadrino pleaded guilty to one count of conspiring to commit wire fraud.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Anne T. Donnelly, Nassau County District Attorney, announced the sentence.
“The defendant blatantly stole the money of hard-working men and women in our community for the sole purpose of enriching himself until his Ponzi scheme collapsed under the weight of his lies,” stated United States Attorney Peace. “Today’s prison sentence punishes the defendant for the financial ruin he has inflicted on investors who had trusted him.”
“Dozens of investors handed over their savings to this defendant based on empty promises, and in the end, he personally spent and gambled away millions of dollars of their hard-earned money,” stated District Attorney Donnelly. “I commend our law enforcement partners at the FBI and U.S. Attorney’s Office for their work securing today’s prison sentence, and ensuring this defendant cannot further victimize anyone else.”
Quadrino represented to potential investors that the Gold Purchasing Companies were involved in the sale of gold, jewelry and diamonds to refineries and jewelers. He asked investors to invest large sums of money, for fixed periods of time, in exchange for a guaranteed, fixed rate of return at the end of the agreed upon time period. Quadrino never actually purchased gold, jewelry or diamonds in any significant quantities. Instead, Quadrino systematically engaged in a classic Ponzi scheme, over the course of five years, returning investor principal and interest from the investor capital of other victims. As a result, investors invested approximately $13.1 million with the Gold Purchasing Companies and suffered total losses of approximately $3.3 million. The defendant used investor capital to issue checks to himself and to pay for his personal gambling expenses.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Mark E. Misorek is in charge of the investigation with assistance provided by Special Assistant United States Attorney Matthew Sotirhos of the Nassau County District Attorney’s Office.
The Defendant: JOHN QUADRINO
Age: 57
Oceanside, New YorkE.D.N.Y. Docket No. 17-CR-153 (JMA)
Long Island Doctor Sentenced to 36 Months in Prison for Illegal Distribution of OxycodoneRead the Press Release
Earlier today, in federal court in Central Islip, Frank Parasmo, a former medical doctor, was sentenced by United States District Judge Joan M. Azrack to 36 months in prison for his conviction on 32 counts of unlawfully distributing oxycodone, a highly addictive prescription painkiller, to 18 patients without a legitimate medical purpose. As part of the sentence, Parasmo also received 3 years of supervised release.
Breon Peace, United States Attorney for the Eastern District of New York, and Frank A. Tarentino III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the verdict.
“Today’s sentence demonstrates that there are significant consequences for doctors who act as drug dealers,” stated U.S. Attorney Peace. “This Office remains committed to using all tools available to address the damage the opioid crisis does to our communities.”
“DEA’s investigative and regulatory focus is to keep the public safe and healthy,” stated DEA Special Agent-in-Charge Tarentino. “Parasmo’s actions were irresponsible to his patients and endangered theirs and others’ safety and well-being; his disregard of pertinent information such illicit drug use and the diversion of highly addictive opioid prescriptions was egregious. I commend the DEA’s Long Island District Office-Tactical Diversion Squad and the Eastern District of New York U.S. Attorney’s Office for their tenacious work on this investigation.”
As proven at trial, between January 2014 and February 2015, Parasmo provided prescriptions for oxycodone and hydrocodone pills to 18 of his patients without a legitimate medical purpose and outside the course of a professional medical practice. Parasmo issued prescriptions to patients who had just left detox treatment in rehabilitation facilities, as well as patients who had just been discharged from a hospital following an overdose. In addition, Parasmo issued prescriptions to many patients he knew were taking illegal drugs or who he suspected were addicts. There is a significant risk of an overdose when oxycodone is taken with heroin and cocaine.
In several instances, Parasmo continued to write prescriptions for individuals who he had been warned were not taking their pills as prescribed and, in some instances, possibly reselling them on the streets. From 2010 to 2015, Dr. Parasmo prescribed over 1.5 million oxycodone and hydrocodone pills, making him one of the top prescribers of those painkillers in New York State during that period. Notably, after learning that the DEA was investigating his prescribing practices, Parasmo cut in half the number of oxycodone prescriptions he issued annually.
This case was investigated by the DEA’s Long Island District Office Tactical Diversion Squad, comprising agents and officers of the DEA, Nassau County Police Department, Suffolk County Police Department, Port Washington Police Department, and Department of Health and Human Services-Office of Inspector General.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Michael Maffei and Charles P. Kelly are in charge of the prosecution.
The Defendant:
FRANK PARASMO
Age: 76
Deer Park, New YorkE.D.N.Y. Docket No. 19-CR-1 (JMA)
Long Island Businessman Pleads Guilty to Multi-Million Dollar Covid-19 Loan FraudRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Donald Finley, a Locust Valley businessman and owner of the now-defunct Jekyll & Hyde theme restaurant in Manhattan and the Bayville Adventure Park on Long Island, pleaded guilty to disaster relief fraud and wire fraud in connection with his receipt of millions of dollars in small business loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDLP). Today’s proceeding was held before United States Magistrate Judge Arlene R. Lindsay. When sentenced, Finley faces up to 30 years in prison, as well as restitution totaling more than $3.2 million and a fine of up to $1.25 million.
Breon Peace, United States Attorney for the Eastern District of New York, Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), and Daniel Brubaker, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the guilty plea.
“Finley has admitted diverting millions of dollars in COVID-19 disaster relief funds to finance his personal expenses, including the purchase of a home in Nantucket, Massachusetts,” stated United States Attorney Peace. “This Office will continue investigating and prosecuting those, like the defendant, who shamelessly steal from government programs that were intended for struggling small businesses and families during the pandemic.”
“We have seen the abuses of disaster relief programs when all too often criminals find an opportunity for exploitation. In this case, Finley obtained millions in COVID-19 relief funds, only to use the ill-gotten cash for his own personal gain. While he may be the owner of an amusement park meant to bring joy, with his guilty plea and pending sentencing, Finley may be facing a future that he could find much less enjoyable,” stated IRS-CI Special Agent-in-Charge Fattorusso.
“Mr. Finley took advantage of a program intended to be used to support small businesses as part of the CARES Act of 2020, when he devised a scheme to submit fraudulent information to the government to obtain millions in funds during the pandemic to fund his lavish lifestyle. Not only did he purchase a home on Nantucket, but he utilized those funds to pay for personal expenses. Postal Inspectors and their law enforcement partners are always on a mission to ensure those who truly need assistance get it, and those who scheme and break the law to receive funds which they are not entitled to, are brought to justice,” stated USPIS Inspector-in- Charge Brubaker.
As set forth in court filings, between March 2020 and March 2021, amid the COVID-19 pandemic, Finley fraudulently applied for, and received, at least 29 PPP and EIDLP loans totaling approximately $3.2 million, on behalf of corporate entities he controlled. Instead of using the funds for disaster relief, Finley diverted them for personal use, including the purchase of a home in Nantucket, Massachusetts, in February 2021.
Congress created the PPP and EIDLP as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Enacted on March 29, 2020, the CARES Act provided emergency financial assistance in connection with economic effects of the COVID-19 pandemic. One source of relief provided by the CARES Act was the allocation of funds for the issuance of forgivable loans to small businesses for job retention and certain other expenses through the PPP. The PPP allowed qualifying small businesses to receive unsecured loans on favorable terms, which they were required to use for specified expenses, including payroll costs, interest on mortgages, rent and utilities. The PPP provided for forgiveness of the loan if the recipient businesses spent the proceeds on these specified expenses within a limited time period and used a certain percentage for payroll costs.
Another source of relief provided by the CARES Act was the EIDLP, which provided low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters. Under the program, EIDLP recipients were eligible to receive advances of up to $10,000 for small businesses within three days of applying for an EIDL (EIDL Advance). The amount of an EIDL Advance was determined based on the number of employees working for the applicant. The EIDL Advance did not have to be repaid.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Mark E. Misorek is in charge of the prosecution.
The Defendant:
DONALD FINLEY
Age: 61
Locust Valley, New YorkE.D.N.Y. Docket No. 23-CR-181 (JMA)
Lexington Man Sentenced to over 13 Years in Federal Prison for Methamphetamine Trafficking in OwensboroRead the Press Release
Owensboro, KY – A Lexington, Kentucky man was sentenced to over 13 years in federal prison today for methamphetamine trafficking.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Sheila Lyons of the DEA Chicago Field Division, and Chief Art Ealum of the Owensboro Police Department made the announcement.
According to court documents, James Leavell, Jr., 37, of Lexington and formerly of Owensboro, was sentenced to 13 years and 6 months in prison, followed by a 5-year term of supervised release, for distributing over 50 grams of methamphetamine in Owensboro during 2019.
There is no parole in the federal system.
The case was investigated by the DEA Evansville Resident Office and the Owensboro Police Department with assistance from the Vanderburgh County Sheriff’s Office.
Assistant U.S. Attorney Frank Dahl prosecuted the case.
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LaVista Man Sentenced for Selling Firearm to a FelonRead the Press Release
United States Attorney Steven Russell announced that Bryon S. Bruckner, 34, of LaVista, Nebraska, was sentenced today in federal court in Omaha for selling a firearm to a felon. United States District Judge Brian C. Buescher sentenced Bruckner to 18 months’ imprisonment, consecutive to his April 19, 2022, Nebraska state sentence of 12 to 14 years for Attempted 1st Degree Sexual Assault of a Child. There is no parole in the federal system. After his federal sentence is complete, Bruckner will begin a 3-year term of supervised release.
On March 3, 2022, Bruckner, while awaiting sentencing in his state case, sold a Bureau of Alcohol, Tobacco, Firearms and Explosives confidential source (and convicted felon) a Walther 9mm handgun. The illegal sale occurred in the driveway of Bruckner’s residence in LaVista. The confidential source told Bruckner that he/she was a felon before Bruckner sold the confidential source the gun and yet Bruckner still made the sale. The sale was audio and video recorded.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Omaha Police Department and was 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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Kentucky Militia Member Charged with Felony and Misdemeanors for Actions During Jan. 6 Capitol BreachRead the Press Release
WASHINGTON — A Kentucky man has been arrested on felony and misdemeanor charges for his actions during the breach of the U.S. Capitol on Jan. 6, 2021. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.
Daniel Edwin Wilson, 47, of Louisville, Kentucky, is charged in a criminal complaint filed in the District of Columbia with obstruction, a felony, and four misdemeanors including: knowingly entering and remaining in a restricted building or grounds, disorderly and disruptive conduct in a restricted building or grounds, disorderly conduct on Capitol grounds, and parading, demonstrating or picketing on Capitol grounds. He was arrested today in Louisville, KY and is expected to make his initial appearance later today in the Western District of Kentucky.
According to court documents, Wilson began planning, in the winter of 2020, to obstruct and interfere with the joint session of Congress at the Capitol on Jan. 6, 2021, to certify the electoral college vote. On Dec. 22, 2020, Wilson—who in a Telegram chat group went by the moniker “Live Wire”—responded to a discussion regarding traveling to Washington, D.C. for Jan. 6, 2021 by writing, “Ooh Rah. Curb stomp crew all in!!!” Later that same day, Wilson wrote, “We are willing to work and coordinate with others but I am a gray ghost ranger,” referring to Wilson’s affiliation with a particular militia. Wilson also discussed bringing firearms to Washington, D.C. for Jan. 6, 2021, but he ultimately wrote, on Dec. 24, 2020, “In my opinion I don’t think it’s time to gun up for the sixth we have to play this out but if they seat biden on the 20th all bets are off it’s gonna happen even if Trump wins we have to get this government under control it’s been crossing my mind if we go to a Civil War do we try to take Washington DC first or do we try to take state capitals first.” On Dec. 27, 2020, Wilson wrote, “I am ready to lay my life on the line. It is time for good men to do bad things.”
On Jan. 6, 2021, Wilson was captured in open-source and U.S. Capitol CCTV footage at the U.S. Capitol, wearing a pair of blue jeans, tan boots, and a blue hooded sweatshirt, carrying a red backpack and an olive-green fabric pouch, and at times, wearing a gas mask. A review of the U.S Capitol’s CCTV footage revealed that, at approximately 2:37 PM, Wilson entered the U.S. Capitol building through the Upper West Terrace Door. After entering the building, Wilson walked into the Rotunda, where he remained for several minutes. From the Rotunda, Wilson walked through Statuary Hall. He then returned to the Rotunda and ultimately exited through the East Rotunda Doors at approximately 2:49 PM.
In an interview with FBI agents on March 9, 2021, Wilson repeatedly denied being inside the Capitol building. A search warrant was obtained and, on June 3, 2022, during the execution of the warrant, law enforcement seized six firearms from Wilson’s residence, which were stored in a backpack and inside a cabinet in his residence, covered by clothing. Wilson was prohibited from possessing firearms at the time, due to previous felony convictions. At least two of the seized firearms were loaded at the time of seizure, and another two did not have serial numbers.
This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Western District of Kentucky.
The case is being investigated by the FBI’s Louisville and Washington Field Offices. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.
In the 28 months since Jan. 6, 2021, more than 1,000 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 320 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Kenmore Man Sentenced for Mail Fraud and Tax EvasionRead the Press Release
BUFFALO, N.Y.- U.S. Attorney Trini E. Ross announced today that Michael MacPherson, 57, of Kenmore, NY, who was convicted of mail fraud and tax evasion, was sentenced to one-year supervised release by U.S. District Judge Richard J. Arcara. MacPherson was also ordered to pay $95,000 in restitution to the victim and $125,673 in restitution to the Internal Revenue Service.
Assistant U.S. Attorney Charles M. Kruly, who handled the case, stated that in January 2017, MacPherson solicited an individual (victim) from Kansas to invest in a bulk cigarette deal, telling the individual that he had an agreement with a Native American tribe in New York State to purchase cigarettes at a discounted rate and resell them at a significant markup. MacPherson claimed a $75,000 investment would result in a 15-20% return within 90 to 120 days. The individual sent MacPherson a check, but he did not buy cigarettes, instead spending the money on payments to the Niagara Falls Country Club and Canisius High School, airline flights, hotels, car rental, utilities, retail purchases, gas, clothing, groceries, restaurants, and other merchants. In December 2017, MacPherson contacted the victim again to solicit a $20,000 investment for the purchase of carbon fiber, representing that the individual would receive his principal investment, in addition to a 30% return, within 180 days. The victim sent MacPherson a check and once again he did not use the money as stated, instead using it to pay a defaulted business loan, cash withdrawals, airline flights, car rental, utilities, retail purchases, gas, groceries, restaurants, hockey tickets, and other merchants.
In addition, MacPherson failed to file a federal income tax return for the tax year 2015 despite receiving gross income totaling approximately $265,254, including approximately $232,500 from a second individual. Once again, MacPherson used the money on personal expenses. For the 2017 tax year, MacPherson omitted approximately $80,156 in gross business receipts. The amount of tax loss to the United States is $93,815.00.
The sentencing is the result of an investigation by the U.S. Postal Inspection Service Boston Division, under the direction of Inspector in Charge Ketty Larco-Ward, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Thomas Fattorusso.
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Kearney Man Sentenced for Being an Unlawful User in Possession of FirearmsRead the Press Release
United States Attorney Steven Russell announced that Tyler Ray Tockey, 29, of Kearney, Nebraska, was sentenced today to a 21-month term of imprisonment for being an unlawful user of controlled substances while in possession of firearms. After he completes his prison sentence, Tockey will be on supervised release for two years. There is no parole in the federal system. Senior United States District Court Judge John M. Gerrard presided over the case. Tockey pleaded guilty to the offense on November 29, 2022.
On March 24, 2022, law enforcement executed a search warrant at the Tockey’s residence in Kearney. Inside the residence, they found firearms, ammunition, marijuana, and methamphetamine. Tockey was arrested. After being advised of the Miranda warnings, Tockey said he was the only person who lived at the residence. He admitted to being a regular user of marijuana and methamphetamine. He also said that police would find firearms and drugs in his residence.
The investigation was conducted by the Kearney Police Department, the Nebraska State Patrol, the Department of Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. 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.
Justice Department Announces 10 Additional Steps on the One-Year Anniversary of Executive Order 14074 on Advancing Effective, Accountable Policing and Criminal Justice Practices to Enhance Public Trust and Public SafetyRead the Press Release
To highlight the one-year anniversary of the May 25, 2022 Executive Order on Advancing Effective, Accountable Policing and Criminal Justice Practices to Enhance Public Trust and Public Safety, three years after the murder of George Floyd, the Justice Department today is releasing a series of 10 new reports and guidance documents as part of its ongoing efforts to implement the Executive Order.
The steps being announced today include updated guidance prohibiting racial profiling by federal law enforcement agencies, accreditation standards to encourage adoption of policies in the Executive Order by state, Tribal, local, and territorial (STLT) law enforcement agencies, a report on the Department’s efforts to implement the First Step Act, and guidance on officer wellness, investigating in-custody deaths, and responses to individuals in crisis, among others.
“While our work is not done, we are proud of the important changes we have made over this past year to update our internal policies and better provide our state and local partners with the resources and support they need to keep communities safe from violent crime, advance transparency, and build community trust,” said Attorney General Merrick B. Garland. “As we remember the life of George Floyd on the third anniversary of his death, the Justice Department renews our commitment to advancing accountability in law enforcement and safeguarding the civil rights of all Americans. We recognize that we have a responsibility to lead by example.”
Over the past year, the Department has worked tirelessly on more than 90 Executive Order steps, including robust and substantive engagement with stakeholders from civil rights, law enforcement, and community groups, as well as our federal agency partners.
“The Justice Department’s law enforcement partners are integral to our efforts to protect the American people from violent crime and a wide range of security threats,” said Deputy Attorney General Lisa O. Monaco. “Law enforcement officers are on the front lines every day, across the country, and they deserve our continued support as we work together to ensure equal justice for all. I am proud of the work the Department has done to implement the Executive Order, and in particular the priority it places on officer safety and mental health, to foster a culture of wellness within law enforcement agencies.”
“Public safety requires police-community trust and fair criminal justice policies. The Justice Department has worked hard over the last twelve months to implement the over 90 deliverables from Executive Order 14074, including a focus on mental health, use of force, data collection, officer wellness, reentry, and much more,” said Associate Attorney General Vanita Gupta. “In making progress in all these areas, we have relied on the extensive engagement of our law enforcement and civil rights partners every step of the way. We remain committed to using all of our tools to strengthen trust and build healthy and safe communities.”
In addition to the steps announced today, the Department’s work under the Executive Order includes prohibiting the transfer of or use of federal grant funds to purchase military-style weapons and equipment for STLT law enforcement agencies, awarding grants in a manner that supports and promotes the adoption of the Executive Order’s policies, and working to establish a National Law Enforcement Accountability Database.
All of this work is part of the Department’s abiding commitment to the Attorney General’s three co-equal priorities: upholding the rule of law, protecting civil rights, and keeping our country safe.
Overview of the Justice Department’s Implementation of Executive Order 14074
As part of an all-of-government strategy set forth in the May 2022 Executive Order, the Department is using all of its tools to advance public safety and build police-community trust, while advancing thoughtful, evidence-informed initiatives and reforms throughout the criminal justice system. As the Executive Order makes clear, system-wide change requires funding and support that only Congress can authorize. The mandates of the Executive Order apply only to federal law enforcement agencies.
- To raise the standards of federal law enforcement agencies, the Executive Order requires all federal law enforcement agencies to adopt policies equivalent to the Department’s policies on using force, chokeholds and carotid restraints, no-knock entries, and proper body-worn camera use.
- To promote adoption of the Executive Order’s policies by STLT law enforcement agencies and encourage best practices, the Department is awarding discretionary grants in a manner that supports and promotes adoption of the Order’s policies and has created first-of-their-kind accreditation standards to further encourage adoption. The Department, in collaboration with the Department of Health and Human Services, also published guidance on best practices for responding to calls and interacting with persons in behavioral or mental health crisis or with a disability, and published a report on supporting officer wellness.
- To improve conditions of confinement and promote better outcomes for individuals who are incarcerated or under supervision, the Department published a report on the use of restrictive housing in the Bureau of Prisons (BOP) and BOP’s efforts to reduce its use, a report outlining steps BOP and the U.S. Marshals Service are taking to improve conditions of confinement for individuals in their custody, and a report on the Department’s efforts to fully implement the First Step Act.
- To improve data collection and analysis to help better inform the public, government leaders, and policymakers, the Department is providing training and technical assistance to federal and STLT law enforcement agencies to increase reporting to the FBI’s National Use-of-Force data collection program, the Law Enforcement Officers Killed and Assaulted (LEOKA) data collection program, the Death in Custody Report Act, and the National Incident-Based Reporting System (NIBRS).
- The Department, in collaboration with the Department of Homeland Security, updated the Guidance on the Use of Race, Ethnicity, Gender, National Origin, Religion, Sexual Orientation, and Gender Identity by Federal Law Enforcement Agencies. The updated guidance prohibiting racial profiling by federal law enforcement agencies sets forth limited circumstances when federal law enforcement agents or officers may consider a protected characteristic, adds disability as a protected characteristic, expands application of the guidance beyond law enforcement officers to all federal law enforcement personnel engaged in or supporting federal law enforcement activities, and sets benchmarks and timelines for the development and implementation of training, data collection, and accountability provisions.
- Last month, the Department released a Strategic Plan outlining actions to safely reduce criminal justice system interactions, support rehabilitation during incarceration, and facilitate reentry for people with criminal records.
In the months and years to come, the Department will continue to operationalize and build upon its implementation of the Executive Order to keep communities safe, support law enforcement, and advance effective, fair policing.
The Department’s reports and guidance documents are available here.
The Department’s Fact Sheet on efforts to implement the Executive Order is available here.
Jefferson Parish Man Pleads Guilty for Distribution of Methamphetamine and Maintaining a Drug PremisesRead the Press Release
NEW ORLEANS, LOUISIANA –On May 18, 2023, NGHIA LE (“LE”), age 37, of Westwego, pleaded guilty as charged to all counts with which he was charged in a superseding indictment, announced U.S. Attorney Duane A. Evans.
Count 1 charged LE with conspiracy to distribute methamphetamine, in violation of 21 U.S.C §§ 841(a)(1), 841(b)(1)(A), and 846. Count 3 charged LE with distribution and possession with the intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), and 18 U.S.C § 2. Count 4 charged LE with distribution of methamphetamine and possession with the intent to distribute methamphetamine, in violation of 21 U.S.C §§ 841(a)(1), 841(b)(1)(A), and 18 U.S.C § 2. Count 8 charged LE with using or maintaining a drug premises in violation of 21 U.S.C § 856(a)(1) and 18 U.S.C § 2. Count 9 charged LE with possession with the intent to distribute marijuana, in violation of 21 U.S.C §§ 841(a)(1) and 841(b)(1)(D). Count 10 charged LE with possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C §§ 924(c)(1)(A)(i) and 2. Count 11 charged LE with distribution of marijuana, in violation of 21 U.S.C §§ 841(a)(1) and 841(b)(1)(D).
According to public records, LE utilized a motorcycle shop in New Orleans East to distribute methamphetamine on numerous occasions in 2021. LE sold over a pound and a half of methamphetamine to undercover agents and agreed to sell an additional 5 pounds of methamphetamine before he was arrested. Additionally, in 2020, LE also possessed over 45 pounds of marijuana, along with 5 firearms, intending to use those firearms to sell the marijuana.
As to Counts 1, 3, and 4, the minimum penalty includes a term of imprisonment of 10 years up to a maximum term of life, a fine of up to $10 million, and at least 5 years of supervised release.
As to Count 8, the maximum penalty includes a term of imprisonment of 20 years, a fine up to $500,000 and up to 3 years of supervised release.
As to Counts 9 and 11, the maximum penalty includes a term of imprisonment of 5 years, a fine up to $250,000 and at least 2 years of supervised release.
As to Count 10, the minimum penalty includes a term of imprisonment of 5 years, a maximum term of life, a fine up to $250,000 and up to 5 years of supervised release.
As to each count, LE faces payment of 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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Orleans Police Department, and the Louisiana State Police. Assistant United States Attorney Mike Trummel of the Violent Crime Unit handled the prosecution.
Jacksonville Men Who Robbed Five Convenience Stores at Gunpoint Sentenced to 16 and 10 Years in PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan today sentenced Sabastian Amrine (20, Jacksonville) to 16 years and 8 months in federal prison and Brandon Bayne (25, Jacksonville) to 10 years in federal prison for five armed robberies of convenience stores in Jacksonville. The court also ordered the forfeiture of a pistol that was used in the robberies. Restitution to the victims will be determined at a future date. Amrine had pleaded guilty on November 22, 2022, and Bayne pleaded guilty on August 16, 2022.
According to court documents, at least by August 19, 2021, Amrine and Bayne were residing together in Jacksonville when they formulated a plan to rob convenience stores at gunpoint. On that date, Bayne drove Amrine to a Circle K store in Jacksonville. Amrine entered the store and brandished a Smith & Wesson .40 caliber pistol with an extended magazine at the clerk and demanded money from the register. The clerk, fearing for his life, gave Amrine $120. Amrine left the Circle K and was picked up by Bayne. Bayne then drove Amrine to Blue Store in Jacksonville, where Amrine entered and again brandished the pistol at the clerk, demanding money. While Amrine was standing at the counter pointing the firearm at the clerk, a small child was standing next to him at the counter and at least one other child and an adult female were present inside the store. The clerk gave Amrine $100 and Amrine left and was again picked up by Bayne.
Amrine, child, and clerk during the robbery of Blue Store on August 19, 2021
On August 29, 2021, Bayne and Amrine conducted robberies of Rainbow Food Store and Fast Stop Store in the same manner.
On September 1, 2021, Bayne drove Amrine to a GATE gas station in Jacksonville. Amrine entered the store and again brandished the pistol and demanded money from the clerk, who complied with Amrine’s demand. Bayne picked up Amrine and a manager from the GATE gas station followed the two as they fled from the robbery. A patrol officer with the Jacksonville Sheriff’s Office joined the pursuit of Bayne’s vehicle. Bayne fled from the officer, driving recklessly in heavy traffic until he crashed the vehicle into a ditch along Argyle Forest Boulevard. Both Amrine and Bayne then exited the crashed vehicle and fled on foot. The Smith & Wesson .40 caliber pistol with extended magazine – which was loaded with 14 rounds of ammunition – fell out of Amrine’s pants as he fled. Amrine was taken into custody as he attempted to scale a fence while fleeing. Bayne was tracked down by a police canine unit a short distance away, hiding in a storage shed in a residential backyard. The Smith & Weston .40 caliber pistol was recovered by the Jacksonville Sheriff’s Office.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Federal Bureau of Investigation and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Kirwinn Mike and Laura Cofer Taylor.
Illinois Man Sentenced to 10 Years for Distributing Methamphetamine in Marathon CountyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Anthony Anderson, 40, Chicago, Illinois, was sentenced today by Chief U.S. District Judge James D. Peterson to 10 years in prison for distributing 50 grams or more of methamphetamine. Anderson pleaded guilty to this charge on January 20, 2023.
In August of 2021, law enforcement agents began a drug investigation into Anderson. On March 9, 2022, Anderson provided a confidential informant one ounce of methamphetamine in Wausau, Wisconsin. The following day, the informant met with Anderson and paid him $450 for the methamphetamine. After receiving the money, Anderson provided the informant an additional ounce of methamphetamine.
On August 1, 2022, at the direction of law enforcement, a second confidential informant contacted Anderson to arrange for the purchase of 10 ounces of methamphetamine. Later that day, Anderson met with the confidential informant in Wausau and sold them 10 ounces of methamphetamine in exchange for $4,200.
At the sentencing hearing, Judge Peterson concluded that a significant sentence was warranted because Anderson had an extensive criminal history including two prior drug trafficking convictions. Judge Peterson also noted that the large quantity of methamphetamine sold by Anderson demonstrated that his overall level of drug trafficking had increased from the time of his prior convictions.
The charge against Anderson is the result of an investigation conducted by the Federal Bureau of Investigation’s Central Wisconsin Narcotics Task Force comprised of investigators from the FBI, Marathon County Sheriff’s Office, Wausau Police Department, Lincoln County Sheriff’s Office, Wisconsin State Patrol, Everest Metro Police Department, and Wisconsin’s National Guard Counterdrug Program. The Marathon County District Attorney’s Office also provided assistance. The prosecution of the case is being handled by Assistant U.S. Attorney Aaron Wegner.
Illinois Man Admits Robbing Ferguson Bank with NoteRead the Press Release
ST. LOUIS – A man from Illinois on Thursday admitted robbing a bank in Ferguson, Missouri in 2019.
Milton Randol, 35, of Alton, pleaded guilty in front of U.S. District Judge Matthew T. Schelp to a felony bank robbery charge. Randol admitted handing a note to a teller at Great Southern Bank in Ferguson on Dec. 13, 2019 that read, “Give me all the money[.] Don’t pull the silent alarm or I will shoot,” his plea agreement says. Randol then handed the teller a bag for the money. He told her not to set off the silent alarm, had her fill the bag then began stuffing money into his pockets before fleeing the bank.
Randol’s picture was captured on camera, and friends identified him when the picture was circulated in the St. Louis media. But Randol had fled to Texas, where he lived for a year before returning to St. Louis, his plea says.
Randol could face up to 20 years in prison, a $250,000 fine or both at his August 29 sentencing.
The Ferguson Police Department and the FBI investigated the case. Assistant U.S. Attorney Jason Dunkel is prosecuting the case.
Husband and Wife Real Estate Developers Arrested for Loan Fraud ConspiracyRead the Press Release
BOSTON – A Longmeadow couple has been arrested in connection with a scheme to defraud commercial lenders by providing false and fraudulent rent rolls and forged lease agreements for properties located in Springfield, Mass.; East Longmeadow, Mass.; and Enfield, Conn.
Louis R. Masaschi, 57, and his wife Jeanette Norman, 56, were indicted by a federal grand jury in Springfield on one count of conspiracy to committed wire fraud; two counts of wire fraud; and one count of aggravated identity theft. The defendants were arrested on May 23, 2023 and released on conditions following an appearance in federal court in Springfield. They are next scheduled to appear in U.S. District Court on July 24, 2023.
According to the indictment, Masaschi and Norman were partners in dozens of limited liability companies through which they owned primarily commercial and some residential property in Western Massachusetts, Connecticut and elsewhere. These companies included Longmeadow Hospitality; JLL Realty Developers, LLC; Shaker Rd, LLC; and 79 Enfield Realty, LLC. It is alleged that Masaschi and Norman conspired with each other and others to fraudulently obtain loans for their companies from financial institutions and commercial lenders by providing materially false, fictitious and fraudulent financial information – including false rent rolls and fraudulent lease agreements. After receiving the loans, Masaschi and Norman allegedly made some or no payments and ultimately defaulted on the loans, causing substantial losses to the financial institutions and commercial lenders.
According to the indictment, on or about May 11, 2018, Masaschi and Norman obtained a $350,000 loan for JLL Realty Developers, LLC, secured by the first mortgage of a residence in Springfield. On or about May 16, 2018, Masaschi and Norman amended this loan agreement and issued a $765,000 loan to JLL Realty Developers, LLC. This loan was cross-collateralized and cross-defaulted with the earlier loan and was secured by a second mortgage on two residences in East Longmeadow. On or about June 29, 2018, Masaschi and Norman obtained a $875,000 loan for 79 Enfield Realty, LLC, secured by Masaschi’s one hundred percent interest in the company. The purpose of the loan was to pay off an outstanding loan from another financial institution, which was only 45 days from maturing.
To obtain these loans, it is alleged that Masaschi and Norman failed to disclose that the income reportedly produced by commercial properties listed in their loan applications was based on materially false, fictitious and fraudulent rent rolls and lease agreements. Masaschi and Normal also allegedly overstating the amount of income collateral properties were paying by providing fraudulent rent rolls, forged tenant signatures and inflated lease amounts and rental terms.
It is further alleged that Masaschi and Norman ceased payments on the JLL Realty Developers, LLC loans in approximately January 2020. Additionally, apart from six months of interest reserves provided by the commercial lender, it is alleged that Masaschi and Norman never made any payments on the 79 Enfield Realty loan.
The charge of conspiracy to committed wire fraud provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss. The charges of wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed. 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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Steven H. Breslow of Levy’s Springfield Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Grand Jury Returns Indictment Against Zuni Man for Aggravated Sexual Abuse Against Children in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that a federal grand jury in the District of New Mexico returned an indictment charging Rodney Waikaniwa with multiple counts of aggravated sexual abuse against two victims in Indian Country. Waikaniwa, 51, and an enrolled member of the Zuni Pueblo, will remain in custody pending trial, which has not been scheduled.
According to the indictment, from 2000 to 2013, Waikaniwa allegedly engaged in sexual acts with two children under the age of 12. If convicted, the charges carry a mandatory minimum penalty of 30 years in prison and a maximum of life imprisonment. The incidents of abuse occurred within the exterior boundaries of the Pueblo of Zuni.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty in a court of law.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Special Assistant United States Attorney Mark A. Probasco is prosecuting the case.
If you have reason to believe you or your child may be a victim, or if you have information about this ongoing investigation, please call the FBI at (505) 889-1300 or submit their tips online at tips.fbi.gov.
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Gibson Man Sentenced for Federal Conspiracy to Stage Automobile AccidentsRead the Press Release
NEW ORLEANS, LOUISIANA – Yesterday, LARRY PICOU (“PICOU”), age 57, of Gibson, Louisiana, was sentenced for Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans, announced United States Attorney Duane A. Evans.
According to court documents, PICOU falsely claimed he was a passenger in a car that was struck by a tractor-trailer on May 11, 2017. In fact, PICOU conspired with others to intentionally collide with a tractor-trailer in the area of Chef Menteur Highway and Downman Road in New Orleans. After the intentional collision, PICOU and his other co-conspirators made a false police report, lied in depositions, and filed fraudulent lawsuits falsely claiming that the tractor-trailer was at fault. This scheme caused the insurance company for the tractor-trailer to pay over $140,000.00 in settlement funds.
U.S. District Court Judge Jane Triche Milazzo sentenced PICOU to serve a term of five (5) years’ probation. PICOU was also ordered to pay restitution in the amount of $200,963.59 and a mandatory special assessment fee of $100.00.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation, the Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorneys Maria M. Carboni, Edward Rivera, and Brandon S. Long, all of the Financial Crimes Unit and Brian M. Klebba, Chief of the Financial Crimes Unit.
Four Men from Plaquemines and Saint Tammany Parishes Indicted for Violations of the Federal Controlled Substances and Gun Control ActsRead the Press Release
NEW ORLEANS, LOUISIANA – DWAN RILEY, age 37, CHRISTOPHER GLASS, age 45, RODERICK PARKER, age 52, residents of Plaquemines Parish, Louisiana, and HERBERT RICHARDSON, age 51, a Slidell, Louisiana resident, were charged on April 28, 2023, in a sealed three-count indictment by a federal grand jury, announced U.S. Attorney Duane A. Evans.
Count 1 charged RICHARDSON and RILEY with conspiracy to distribute 40 grams or more of fentanyl, a quantity of heroin, and a quantity of cocaine in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), 841(b)(1)(C), and 846. For this offense, they face a statutory mandatory minimum sentence of five years, up to forty years imprisonment, a fine of up to $5,000,000, and at least four years of supervised release following any term of imprisonment.
Count 1 also charged GLASS and PARKER with conspiracy to distribute and possess with intent to distribute quantities of fentanyl, heroin, and cocaine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 846. For this offense, they face up to twenty years imprisonment, a fine of up to $1,000,000, and at least three years of supervised release following any term of imprisonment.
Count 2 charged RICHARDSON with possession with intent to distribute quantities of fentanyl and heroin, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). For this offense, he faces up to twenty years imprisonment, a fine of up to $1,000,000, and at least three years of supervised release following any term of imprisonment.
Count 3 charged RICHARDSON with being a felon in possession of firearms, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). For this offense, he faces up to ten years imprisonment, a fine of up to $250,000, and up to three years supervised release.
For each of the counts in which a defendant is charged, he faces payment of a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendants must be proven beyond a reasonable doubt.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by the federal Drug Enforcement Administration and Plaquemines Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
Fort Wayne Man Sentenced to 120 Months in PrisonRead the Press Release
FORT WAYNE –Shaine Shepherd, 28 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady after his plea of guilty to distributing 50 grams or more of methamphetamine, announced United States Attorney Clifford D. Johnson.
Shepherd was sentenced to 120 months in prison to be followed by 3 years of supervised release.
This case was investigated by the Drug Enforcement Administration with the assistance of the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Anthony W. Geller.
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Former Sewage and Water Board Official Charged with Federal TheftRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans announced the filing of a bill of information against JAMES ARNOLD, a former Utility Services Administrator for the Sewerage and Water Board of New Orleans.
ARNOLD is accused of stealing cash that belonged to the Sewerage and Water Board. The bill of information alleges that ARNOLD would instruct plumbers to provide him with payments for plumbing permits and that ARNOLD would keep the payments for his own use.
The charged offense of Theft From an Agency Receiving Federal Funds is punishable by up to ten years’ imprisonment followed by up to three years’ supervised release, a fine of up to $250,000, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the bill of information is merely a charge and that the defendant’s guilt must be proven beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Chandra Menon of the Public Integrity Unit is in charge of the prosecution.
Former Nurse Indicted on Computer Fraud ChargesRead the Press Release
PITTSBURGH, PA - One resident of Pittsburgh, PA, has been indicted by a federal grand jury in Pittsburgh on a charge of computer fraud, Acting United States Attorney Troy Rivetti announced today.
The two-count Indictment named Kevin N. Ukaegbu, age 30, of Pittsburgh, PA, as the sole defendant.
According to the Indictment, on December 5, 2022, Ukaegbu, formerly a graduate nurse at Allegheny General Hospital (AGH), criminally used the hospital credentials of a Highmark resident physician and attempted to modify prescription medications for two patients, putting one of the patients at risk of serious bodily harm. In neither case was the medicine administered to the patients.
The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
Homeland Security Investigations (HSI), United States Department of Homeland Security, with the assistance of Highmark Health Police, conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Little Rock Police Officer Convicted of Receipt of Obscene Images and Possession of Child Pornography After Three-Day Jury TrialRead the Press Release
LITTLE ROCK— A jury found former Little Rock Police Officer Eddie Scott Seaton, 55, of Cabot, guilty of receiving obscene images and possession of child pornography. The jury returned their verdict Thursday afternoon to Chief United States District Judge D.P. Marshall, Jr., who presided over the three-day trial. Judge Marshall will sentence Seaton at a later date.
Testimony during the trial established that, on December 11, 2019, a Special Agent with the North Dakota Bureau of Criminal Investigations downloaded child pornography from someone using an IP address that returned to Seaton in Cabot. Nineteen days later, law enforcement executed a search warrant at Seaton’s residence and seized electronic devices belonging to Seaton. A search of Seaton’s computer revealed almost 300 images of child pornography and over 120 images of obscene anime. The obscene anime depicted adults raping children and children engaged in sexually explicit conduct. Law enforcement also located near Seaton’s computer stories handwritten by Seaton that described various instances of an adult female having sex with two minor boys. Those writings described many of the actions depicted in the obscene anime seized from Seaton’s computer.
"This case shows that even those who swear to uphold the law can violate it in the most despicable way," said United States Attorney Jonathan D. Ross. "Commerce in sexually explicit images of children is not a victimless crime, and our office is committed to protecting those most vulnerable in our community. The jury today properly held Mr. Seaton accountable for his receipt and possession of images depicting the sexual exploitation of children."
The statutory penalty for receipt of obscene images is not less than five years and not more than twenty years imprisonment. The statutory penalty for possession of child pornography is not more than ten years imprisonment. Both offenses of conviction include a penalty of not more than a $250,000 fine and supervised release of not less than five years and not more than life.
The investigation was conducted by the FBI Little Rock Child Exploitation and Human Trafficking Task Force and Arkansas State Police and is being prosecuted by Assistant United States Attorneys Kristin Bryant and John Ray White.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
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