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Friday 14 April 2023
Previously Convicted Felon Pleads Guilty to Drug Trafficking and Unlawful Possession of Firearms and AmmunitionRead the Press Release
CONCORD – A Manchester man pleaded guilty in federal court to drug trafficking and firearm offenses, U.S. Attorney Jane E. Young announces.
John Rivera, 24, pleaded guilty to unlawful possession with the intent to distribute quantities of fentanyl and cocaine base, commonly known as “crack” cocaine, and being a prohibited person in possession of a firearm and ammunition. U.S. District Court Judge Joseph LaPlante scheduled sentencing for July 25, 2023. Rivera was charged on March 11, 2022.
On September 16, 2021, the New Hampshire State Police, working in conjunction with the Manchester Police Department, observed a firearm under Rivera’s driver’s seat during a traffic stop. Upon searching the vehicle, officers seized 1.2 kilograms of fentanyl packaged for distribution, approximately 19.68 grams of crack cocaine, a stolen firearm, a loaded magazine, loose ammunition, drug packaging materials, and a digital scale. Rivera is prohibited from possessing firearms and ammunition based on a prior felony conviction.
The charging statute provides a sentence of no greater than 20 years in prison, 3 years of supervised release, and a fine of $1,000,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Manchester Police Department and the New Hampshire State Police led the investigation. Assistant U.S. Attorney Jennifer C. Davis is prosecuting the case.
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Podiatrist and Patient Recruiter Convicted for $8.5M Compounding Fraud SchemeRead the Press Release
A federal jury convicted two Texas men today for their role in a scheme to fraudulently bill TRICARE – the health care program for U.S. service members and their families – for compounded creams that were medically unnecessary and procured through kickbacks and bribes.
According to court documents and evidence presented at trial, Brian Carpenter, 56, of Bridgeport, was a podiatrist who signed prescriptions for compounded pain and scar creams for TRICARE beneficiaries to whom he never spoke and whom he never examined or treated. Jerry Lee Hawrylak, 69, of Lake Worth, recruited Carpenter to sign the prescriptions and recruited TRICARE beneficiaries to accept the medically unnecessary creams. From November 2014 to January 2017, Carpenter and Hawrylak caused the Fort Worth-based pharmacy involved in the conspiracy to fraudulently bill TRICARE approximately $8.5 million for these creams.
Carpenter and Hawrylak were convicted of one count of conspiracy to commit health care fraud and six counts of health care fraud. They are scheduled to be sentenced on Aug. 23 and face a maximum penalty of 10 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Leigha Simonton for the Northern District of Texas, Special Agent in Charge Michael Mentavlos of the Defense Criminal Investigative Service (DCIS), Special Agent in Charge Jason Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Regional Office, Special Agent in Charge Chad B. Yarbrough of the FBI Dallas Regional Office, Special Agent in Charge Steven Grell of the Department of Labor Office of Inspector General (DOL-OIG) Central Regional Office, and Special Agent in Charge Kris Raper of the Veterans Affairs Office of Inspector General (VA-OIG) South Central Field Office made the announcement.
The DCIS, HHS-OIG, FBI, DOL-OIG, and VA-OIG investigated the case.
Acting Assistant Chief Brynn A. Schiess and Trial Attorneys Lee Hirsch and Andrea Savdie of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Plaquemines Parish Man Sentenced to 190 Months for Violations of the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that CARL BLAKE RILEY, JR., age 47, a resident of Plaquemines Parish, was sentenced on April 13, 2023 to 190 months imprisonment, 5 years of supervised release, and a $200 mandatory special assessment fee by U.S. District Judge Eldon E. Fallon, after he pled guilty to a two-count indictment charging him with possession with the intent to distribute methamphetamine and possession with the intent to distribute heroin, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 841(b)(1)(C).
According to court documents, during a search of RILEY’s home, police found approximately 880 grams of methamphetamine and approximately 25 grams of heroin. RILEY received the narcotics from California and distributed them in the Plaquemines Parish area.
This case was investigated by the U.S. Drug Enforcement Administration and the Plaquemines Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
Owner of the Sportsmans Grille in Williamsburg Charged with Tax FraudRead the Press Release
NEWPORT NEWS, Va. – A federal grand jury returned an indictment charging a Williamsburg man with nine counts of tax fraud.
According to the indictment, Stephen G. Genakos, 62, is the sole owner and managing director of Sarantos, Inc., a Virginia Subchapter S corporation that does business as a restaurant, the Sportsmans Grille, in James City County. The indictment alleges that since 2016, Genakos skimmed more than $670,000 in U.S. currency from the Sportsmans Grille. During this period, he is alleged to have deposited more than $112,000 in currency in his personal bank accounts and gambled more than $502,000 with the Virginia Lottery.
The indictment further alleges that in 2020, Genakos listed the Sportsmans Grille for sale. In 2021, undercover agents from the Internal Revenue Service (IRS) made contact with Genakos. During this operation, Genakos allegedly joked about his “magic book” and ultimately provided IRS agents the chance to view the true books and records of the Sportsmans Grille.
The indictment further alleges that for tax years 2016 through 2020, Genakos filed materially false tax returns for himself and his business, Sarantos Inc. He is charged with filing nine returns that understate his taxable income by more than $670,000 and caused a tax loss to the United States of approximately $113,163.
Genakos is charged with aiding and assisting in the preparation of materially false tax returns. If convicted, Genakos faces a maximum of 3 years in prison on each of the nine counts. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Kareem A. Carter, IRS Criminal Investigation Acting Special Agent in Charge of the Washington D.C. Field Office, made the announcement.
Assistant U.S. Attorneys Mack Coleman and Brian Samuels are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:23-cr-37.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Oswego County Woman Pleads Guilty to Charges Related to Theft of Social Security BenefitsRead the Press Release
SYRACUSE, NEW YORK – Lisa Waldron, age 44, of Palermo, New York, pled guilty today to eleven counts of Theft of Government Property, announced United States Attorney Carla B. Freedman and Sharon B. MacDermott, Special Agent in Charge of the Social Security Administration (SSA), Office of the Inspector General, New York Field Office.
The charges to which Waldron pled guilty relate to her theft of Supplemental Security Income (“SSI”) benefits intended for her disabled son, Jordan Brooks, while Waldron was acting as Brooks’s representative payee. A representative payee is a person or organization who receives Social Security benefits on another person’s behalf and is required to ensure the benefits are used only to support the beneficiary.
As part of her guilty plea, Waldron admitted that, after Brooks died on May 9, 2021, Waldron continued to receive SSI benefits intended for Brooks. Instead of properly notifying SSA of the issue and knowing she was not entitled to Brooks’s benefit payments, Waldron nonetheless used Brooks’s SSI benefits to pay her own personal expenses until SSA independently learned of the issue and terminated Brooks’s benefits.
Unrelated to the federal charges to which Waldron pled guilty today, Waldron is also facing state murder charges related to her involvement in Brooks’s death.
On the federal charges, Waldron faces a maximum term of imprisonment of ten years, a fine of up to $250,000, and a term of supervised of up to three years. As part of her plea agreement, Waldron has also agreed to pay full restitution. She is scheduled to be sentenced on August 22, 2023, by Chief United States District Judge Brenda K. Sannes in Syracuse, New York.A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the Social Security Administration Office of the Inspector General and is being prosecuted by Assistant U.S. Attorney Adrian S. LaRochelle and Special Assistant U.S. Attorney Paul J. Tuck.
North Carolina Woman Admits Participating in Health Care Fraud SchemeRead the Press Release
NEWARK, N.J. – A North Carolina woman today admitted her role in a health care fraud conspiracy in which she paid for doctors’ orders for durable medical equipment (DME), namely orthotic braces, Attorney for the United States Vikas Khanna announced.
Ircania Vargas, 50, of Charlotte, North Carolina, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging her with one count of conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Vargas owned and operated various entities in New Jersey, through which she obtained doctors’ orders for DME. From December 2017 through May 2019, Vargas agreed to pay an individual and others a set amount for each DME order for a back, knee, shoulder or ankle brace provided to her DME supply companies. Vargas then billed Medicare for the DME orders that she obtained in exchange for kickbacks. Vargas observed indicators that these DME orders were not medically necessary, in part because Medicare beneficiaries would frequently call to complain that they had not ordered the DME that they received. To disguise the scheme, Vargas put her companies in the names of nominee owners, including her sisters and a friend. Vargas also received sham invoices which indicated that her companies had performed “marketing services” for an individual, when in reality, the invoices were for kickback payments for the purchase of DME orders. Vargas’s scheme resulted in an actual loss to Medicare of at least $5.5 million.
Conspiracy to commit health care fraud carries a maximum potential punishment of 10 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Sept. 12, 2023.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Emma Spiro of the Economic Crimes Unit in Newark.
vargas.information.pdfNine Defendants Sentenced in $126M Compounding Fraud SchemeRead the Press Release
Nine defendants – including three compounding pharmacy owners, a physician, two pharmacists, and three patient recruiters – were sentenced yesterday for their respective roles in a years-long, multi-state scheme to defraud the Department of Labor’s Office of Workers’ Compensation Programs (OWCP) and TRICARE, the health care program for U.S. service members and their families.
The sentences include:
- John Cruise, 52, of Houston, a former co-owner of Assurance Consolidated Pharmacy (ACP), a pharmacy located in Spring, Texas, as well as an owner of the Injured Federal Workers Advocate Association (IFWAA), an organization that purported to assist injured federal workers, was sentenced to 20 years in prison.
- LaShonia Johnson, 50, of Houston, a former co-owner of ACP with her husband and co-defendant Cruise, and director at IFWAA, was sentenced to 15 years in prison.
- Kenny Ozoude, 48, of Houston, former owner of Compounding Solutions LLC, a Houston-based pharmacy, was sentenced to 10 years in prison.
- James Don Jackson, 63, of Tyler, Texas, a medical doctor licensed in Texas, was sentenced to five years in prison.
- Nirvana Hightower, 56, of Houston, a pharmacist licensed in Texas and pharmacist-in-charge at Compounding Solutions LLC, was sentenced to five years in prison.
- Keith Hudson, 55, of Humble, Texas, a pharmacist licensed in Texas and pharmacist-in-charge at ACP, was sentenced to 3 years in prison.
- Audra Jones, 46, of Houston, was sentenced to two years and six months in prison.
- Terrance Aice, 50, of Carrollton, Texas, a patient recruiter, was sentenced to one year and six months in prison.
- Sherod Johnson, 44, of Las Vegas, a patient recruiter, was sentenced to one year and six months in prison.
The defendants submitted false and fraudulent claims to the OWCP and TRICARE for prescriptions for compounded and other drugs prescribed to injured federal workers and members of the armed forces. The defendants also paid kickbacks to patient recruiters and physicians to prescribe these drugs. The defendants chose the particular compounds and other drugs based not on the patients’ medical needs but in light of the amount of reimbursement for the drugs. The drugs were then mailed to patients, even though the patients often never requested, wanted, or needed them.
Four additional defendants (Dr. Jay Bender, Dr. Deepak Chavda, Donathan Kemp, and Naresh Jivanji) are scheduled to be sentenced on May 25.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas, Special Agent in Charge Jonathan Ulrich of the U.S. Postal Service Office of Inspector General (USPS-OIG), Special Agent in Charge Steve Grell of the Department of Labor Office of Inspector General (DOL-OIG), Special Agent in Charge Michael Mentavlos of the Department of Defense Office of Inspector General (DOD-OIG), and Special Agent in Charge Kris Raper of the Department of Veteran’s Affairs Office of Inspector General (DVAO-OIG) South Central Field Office made the announcement.
The USPS-OIG, DOD-OIG, and DOL-OIG investigated the case with assistance from the DVAO-OIG.
Trial Attorneys Catherine Wagner and Patrick J. Queenan of the Criminal Division’s Fraud Section prosecuted the case. Assistant Chief Scott Armstrong, Assistant Chief John “Fritz” Scanlon, Trial Attorney Michael McCarthy, and former Trial Attorneys Jay McCormack and Sarah Edwards of the Fraud Section previously prosecuted the case.
Nicaraguan National Pleads Guilty for Illegal Re-EntryRead the Press Release
NEW ORLEANS – ALEXANDER JOSUE REYES-RAMIREZ (“REYES-RAMIREZ”), age 37, pled guilty to a one-count indictment on April 13, 2023 for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans.
According to court documents, REYES-REMIREZ admitted to reentering the United States after being previously deported on July 24, 2019. REYES-RAMIREZ faces a maximum term of imprisonment of two years, a maximum fine of up to $250,000, a maximum term of supervised release of up to one year, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
New York Man Indicted in St. Louis, Accused of Selling Counterfeit Xanax on Dark WebRead the Press Release
ST. LOUIS – A man from New York state has been indicted in federal court in St. Louis and accused of selling counterfeit Xanax on the dark web.
John Cruz, 29, of Rochester, was indicted March 1 on one count of conspiracy to misbrand, introduce misbranded drugs and sell counterfeit drugs. He was arrested March 15 and appeared in U.S. District Court in St. Louis Friday by Zoom. He has pleaded not guilty to the charge.
The indictment alleges that using cryptocurrency, Cruz bought bulk quantities of counterfeit generic alprazolam, an anti-anxiety drug, from another person on the dark web who has sold millions of the pills. That person manufactured the pills using active drug ingredients from China, a pill press and stamps that would mimic the markings used on pills produced by manufacturers licensed and approved by the U.S. Food and Drug Administration. The pills were delivered to Cruz in Rochester, New York and he then redistributed the pills to various customers, the indictment alleges.
The charge is punishable by up to five years in prison, a $250,000 fine or both.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the FBI, the Drug Enforcement Administration, the U.S. Postal Inspection Service and U.S. Immigration and Customs Enforcement. Assistant U.S. Attorneys John Ware and Kyle Bateman are prosecuting the case.
New Orleans Man Sentenced After Conviction at Trial for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – GEORGE BENNETT, aka “G,” age 40, from the greater New Orleans area, was sentenced on April 13, 2023 by United States District Judge Eldon E. Fallon to one hundred twenty-one (121) months’ imprisonment followed by a term of ten (10) years’ supervised release and a mandatory $300.00 special assessment fee after his conviction at trial for violating the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
After a four-day trial in November 2022, the jury found BENNETT guilty of conspiracy to distribute and possess with the intent to distribute one-hundred (100) grams or more of heroin and a quantity of fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 846, distribution of a quantity of heroin and a quantity of fentanyl, and possession with intent to distribute a quantity of heroin and a quantity of fentanyl, both in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
The case was investigated by the Federal Bureau of Investigation New Orleans Gang Task Force and the Jefferson Parish Sheriff’s Office. It was prosecuted by Assistant United States Attorneys André Jones, Melissa Bücher, and Christopher D. Usher of the Narcotics Unit.
Nampa Man Pleads Guilty to Federal Felony for Selling over $4.4 Million in Unapproved Steroid-Like DrugsRead the Press Release
BOISE – Michael Terry Little, 51, of Nampa, pleaded guilty to introduction of unapproved new drugs in interstate commerce, U.S. Attorney Josh Hurwit announced today.
According to court records, Little ran a business selling Selective Androgen Receptor Modulators (SARMs). Little primarily sold SARMs products via a website, https://sarm.tech under the name SARMTECH. SARMs are synthetic chemicals designed to mimic the effects of testosterone and other anabolic steroids. SARMs are “new drugs” under the Food, Drug, and Cosmetic Act (FDCA) and therefore not approved for sale. Little knew the SARMs products were not FDA approved.
Little manufactured his SARMs products at a business in Nampa. There, he processed the bulk ingredients he imported from China—encapsulating, bottling, and preparing them for shipment. To avoid government seizures of SARMs shipped to other countries, Little offered a stealth shipping option for an additional fee that intentionally mispackaged and falsely declared SARMs shipments as vitamins and supplements. Law enforcement made multiple undercover purchases of SARMs products from SARMTECH, including products containing Ostarine (MK-2866), Ligandrol (LGD-4033), and other SARMs compounds. Between March 2018 and January 2022, little sold at least $4,499,197.46 of SARMs products.
Little is scheduled to be sentenced on July 11, 2023 and faces a maximum penalty of three years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“I am grateful to the team of attorneys and law enforcement agents who unraveled this illegal and dangerous scheme,” said U.S. Attorney Hurwit. “We are committed to protecting the public from those who sell unapproved drugs, especially when the ingredients used are imported from China without any way to verify their safety.”
“Unapproved drugs that are sold online present serious risks to consumers,” said Special Agent in Charge Robert M. Iwanicki, FDA Office of Criminal Investigations Los Angeles Field Office. “We will continue to investigate and bring to justice those whose actions threaten the public health.”
U.S. Attorney Hurwit credited the cooperative efforts of the Food and Drug Administration Office of Criminal Investigations, Homeland Security Investigations, and the U.S. Department of Commerce Bureau of Industry and Security Office of Export Enforcement, which led to the charges.
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Mexican Man Sentenced for Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA – MARIO MATEO TOMAS JOSE, a native of Mexico, was sentenced on April 13, 2020 for illegally using a social security number to qualify for employment, in violation of Title 42, United States Code, Section 408(a)(7)(B), announced United States Attorney Duane A. Evans.
United States District Court Judge Eldon E. Fallon sentenced JOSE to (1) one year of probation and a mandatory special assessment fee of $100.00.
According to court documents, on March 29, 2022, Homeland Security Investigations received information that certain individuals had used fraudulent Social Security cards in an initial application to obtain employment. Prior to finalizing employment with their prospective company, the individuals had to report to the Gulf Coast Safety Council, which provides safety courses to applicants applying to work with companies servicing petrochemical processing plants. On March 30, 2022, TOMAS JOSE arrived at the Gulf Coast Safety Council office in St. Rose, Louisiana to complete the safety course to finalize his employment with Company “A”. On that day, TOMAS JOSE presented a fraudulent United States Social Security card bearing the name and United States Social Security number of a United States citizen, which he represented to be his own, in order to obtain employment.
U.S. Attorney Evans praised the work of Homeland Security Investigations in investigating this matter. Assistant United States Attorney Jon M. Maestri is in charge of the prosecution.
Martin County Man Convicted of Producing and Receiving Child PornographyRead the Press Release
PIKEVILLE, Ky. - A Beauty, Ky., man was convicted on Wednesday. by a federal jury sitting in Pikeville. of six counts of child pornography-related offenses.
After two hours of deliberation, following a three-day trial, the jury convicted Donald York, 60, for four counts of the production of child pornography and two counts of receiving child pornography.
According to the evidence presented, York used a minor female victim to engage in sexually explicit conduct, for the purpose of producing images of that conduct. The United States further established that York uploaded some of the victim’s photos to a pornographic website.
York was indicted in June 2022.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI Louisville Field Office; Col. Phillip Burnett, Commissioner, Kentucky State Police; and Sheriff John Kirk, Martin County Sherriff’s Office, jointly announced the conviction.
The investigation was conducted by FBI, KSP, and the Martin County Sherriff’s Office. The United States was represented in the case by Assistant U.S. Attorneys Justin Blankenship and Jason Parman.
York will appear for sentencing on August 24, 2023. He faces a minimum of five years, up to 20 years in prison, on each count of conviction. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
This case was prosecuted 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.projectsafechildhood.gov.
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Man Convicted of Defrauding Elderly Widow of $1.2 MillionRead the Press Release
NASHVILLE – After a week-long trial, a federal jury this week, convicted Karl Hampton, 65, of Chattanooga, Tennessee, of twelve felony counts related to a scheme to defraud an elderly widow of over one million dollars, announced United States Attorney Henry C. Leventis.
Hampton and his wife were indicted in 2021 for conspiracy and money laundering and Hampton was also charged with wire and mail fraud.
At trial, the evidence showed that Hampton met the victim while he was working as an exterminator in her home. Between 2018 and 2020, Hampton tricked the victim into believing that he would care for her personally and financially. He held himself out as the victim’s “personal representative,” her “son” or her “godson,” and pretended that he was acting on her behalf.
In April 2019, Hampton convinced the victim to sign over her Power of Attorney and to name him in her Revocable Living Trust and in her will. He then methodically drained the victim’s bank accounts, took out a $500,000 line of credit in her name using her property as collateral, and amassed huge charges on her credit cards for his own personal expenses.
In total, Hampton defrauded the victim of approximately $1.2 million. He used her money to purchase luxury items and often spent over $1,000 per day on lottery tickets. The defendant’s lavish spending using the victim’s money included purchasing a Lexus GX460, a 4.3-karat diamond ring, and a $170,000 interest in a pest control business.
Sentencing is scheduled for August 11, 2023. The defendant’s wife pleaded guilty to one count of money laundering in February 2023 and will be sentenced on June 16, 2023.
This case was investigated by the FBI. Assistant U.S. Attorneys Kathryn Booth and Brent Hannafan prosecuted the case.
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Maine Man Charged in Connection with Portsmouth School ThreatRead the Press Release
CONCORD – A Maine man has been federally charged in connection with posting a video on SnapChat that threatened the Portsmouth High School on April 12, 2023, U.S. Attorney Jane E. Young announces.
Kyle Hendrickson, 25, was charged with transmitting in interstate commerce a threat to injure the person of another. A press release will be issued when an initial appearance in federal court is scheduled.
According to the charging documents, Hendrickson posted a video to his SnapChat account on Wednesday, April 12, 2023, in which he brandished a handgun while in a vehicle outside of the Portsmouth High School. The video includes a text overlay that reads “imma shoot up the school.” School surveillance footage placed Hendrickson’s vehicle outside the high school at the time of the video.
Hendrickson was arrested yesterday on state charges. A subsequent state search warrant of the vehicle yielded an AR-15 rifle, a shotgun, camouflage body armor, a handgun holster, a red-dot sight, and numerous rounds of ammunition. Investigators recovered another shotgun inside a residence associated with Hendrickson. Finally, a handgun that resembles the one used in the SnapChat video was recovered in a motel where Hendrickson had stayed on April 12, 2023.
The charge provides for a sentence of up to five years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Federal Bureau of Investigation, Boston Division, and the Portsmouth Police Department led the investigation. The Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Somersworth Police Department, the Portland (Maine) Police Department, and the Berwick (Maine) Police Department provided valuable assistance. Assistant U.S. Attorney Charles L. Rombeau is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Leesburg Convicted Felon Sentenced to 15 Years in Federal Prison for Illegally Possessing A FirearmRead the Press Release
Ocala, Florida – Senior United States District Judge Gregory A. Presnell has sentenced Timothy Eric Evans (41, Leesburg) under the Armed Career Criminal Act to 15 years in federal prison for possessing a firearm as a convicted felon. The court also ordered the forfeiture of the handgun and ammunition used in the offense. Evans had pleaded guilty on June 8, 2022.
According to court documents, on May 21, 2021, officers from the Tavares Police Department discovered Evans in possession of a stolen vehicle. During a search of the vehicle, officers located MDMA and a loaded handgun in the center console. Evans admitted that the MDMA belonged to him but denied possessing the firearm. An analysis of Evans’s cellphone revealed a large volume of messages and images of illegal narcotics and firearms, including messages in which Evans tried to buy and sell firearms.
Evans has eight prior state felony convictions, including attempted strongarm robbery (1998), robbery with a firearm (1998), aggravated assault with a deadly weapon (1998), strongarm robbery (2003), attempted second-degree murder (2008), possession of a firearm by a convicted felon (2008), sale of cocaine (2008), and possession of cocaine (2020). Therefore, he is prohibited from possessing firearms or ammunition under federal law.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Tavares Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Hannah Nowalk.
Justice Department Announces Charges Against Sinaloa Cartel’s Global OperationRead the Press Release
The Justice Department today announced charges unsealed in the Southern District of New York, Northern District of Illinois, and District of Columbia, against several leaders of the Sinaloa Cartel, a transnational drug trafficking organization based in Sinaloa, Mexico, and its facilitators across the globe.
“Today, the Justice Department is announcing significant enforcement actions against the largest, most violent, and most prolific fentanyl trafficking operation in the world – run by the Sinaloa Cartel, and fueled by Chinese precursor chemical and pharmaceutical companies,” said Attorney General Merrick B. Garland. “Families and communities across our country are being devastated by the fentanyl epidemic. Today’s actions demonstrate the comprehensive approach the Justice Department is taking to disrupt fentanyl trafficking and save American lives.”
“The fentanyl crisis in America – fueled in large part by the Sinaloa cartel – threatens our public health, our public safety, and our national security,” said Deputy Attorney General Lisa O. Monaco. “Today’s indictments target every element of the Sinaloa Cartel's trafficking network and reflect the Justice Department's commitment to attacking every aspect of this threat: from the chemical companies in China that spawn fentanyl precursors, to the illicit labs that produce the poison, to the networks and money launderers and murderers that facilitate its distribution. Just as we have gone on offense against terrorists and cyber criminals around the globe, the Department is now waging a relentless campaign to disrupt the production and trafficking of fentanyl – before it can reach its victims.”
“Today’s indictments send a clear message to the Chapitos, the Sinaloa Cartel, and criminal drug networks around the world that the DEA will stop at nothing to protect the national security of the United States and the safety and health of the American people,” said DEA Administrator Anne Milgram. “The Chapitos pioneered the manufacture and trafficking of fentanyl – the deadliest drug threat our country has ever faced – flooded it into the United States for the past eight years and killed hundreds of thousands of Americans. Over the last year and a half, the DEA proactively infiltrated the Sinaloa Cartel and the Chapitos network, obtained unprecedented access to the organization’s highest levels, and followed them across the world. I am grateful to the men and women of the DEA for their exceptional work on this case, which is the beginning of our work as ‘One DEA’ to dismantle every part of the criminal cartels that are killing Americans at record rates.”
“Far too many Americans have become victims in the national fentanyl crisis. These cartels have shown us they will stop at nothing to manufacture, traffic, and push these dangerous drugs to every corner of our country,” said FBI Director Christopher Wray. “Today’s indictments show that the FBI and our law enforcement partners will never tire in our pursuit not only to shut down their criminal enterprises, but also to go after individuals in their network. I want to thank the FBI team continuing to work on these cases everyday as we join with our law enforcement partners to tackle this national epidemic.”
“This indictment is another example of how this administration is taking on the cartels and their transnational criminal networks, and sending a clear message that we are going to hold them accountable,” said Secretary of Homeland Security Alejandro N. Mayorkas. “I commend our workforce at Homeland Security Investigations and our federal partners who are relentless in their efforts to stop the scourge of fentanyl. Today’s announcement exemplifies a whole-of-government approach to protecting our homeland that is yielding results.”
The Sinaloa Cartel is one of the most powerful drug cartels in the world and is largely responsible for the manufacturing and importing of fentanyl for distribution in the United States. Fentanyl is a dangerous synthetic opioid that is more than 50 times more potent than heroin. Fentanyl is now the leading cause of death for Americans ages 18 to 49, and it has fueled the opioid epidemic that has been ravaging families and communities across the United States for approximately the past eight years. Between 2019 and 2021, fatal overdoses increased by approximately 94%, with an estimated 196 Americans dying each day from fentanyl.
The Sinaloa Cartel operated as an affiliation of drug traffickers and money launderers who obtain precursor chemicals – largely from China – for the manufacture of synthetic drugs, manufacture drugs in Mexico, move those drugs into the United States, and collect, launder, and transfer the proceeds of drug trafficking. Once led by Joaquin Guzman Loera, aka El Chapo, and Ismael Zambada Garcia, aka El Mayo, the Sinaloa Cartel’s members and associates – allegedly including the sons of Guzman Loera, collectively known as the Chapitos – smuggled significant quantities of drugs through Mexico and into the United States. The Chapitos are Ivan Guzman Salazar, 40, Alfredo Guzman Salazar, 37, Joaquin Guzman Lopez, 36, and Ovidio Guzman Lopez, 33.
Following Guzman Loera’s arrest in January 2016 and extradition to the United States in January 2017, the Chapitos allegedly assumed their father’s former role as leaders of the Sinaloa Cartel, along with Zambada Garcia and Damaso Lopez Nunez, aka Licenciado. The Chapitos subsequently amassed greater control over the Sinaloa Cartel by allegedly threatening and causing violence against Lopez Nunez, his family, and his associates and, as a result, became principal leaders and drug traffickers within the Sinaloa Cartel.
The indictments being unsealed today demonstrate that the Sinaloa Cartel has been engaged in drug trafficking activities into the United States, and violence, spanning over a decade and a half. The Chapitos are alleged to have repeatedly and consistently transported lethal amounts of cocaine, heroin, methamphetamine, and fentanyl.
The Chapitos allegedly used cargo aircraft, private aircraft, submarines and other submersible and semi-submersible vessels, container ships, supply vessels, go-fast boats, fishing vessels, buses, rail cars, tractor trailers, automobiles, and private and commercial interstate and foreign carriers to transport their drugs and precursor chemicals. They allegedly maintained a network of couriers, tunnels, and stash houses throughout Mexico and the United States to further their drug-trafficking activities. The Chapitos allegedly used these networks to import the drugs into the United States.
Southern District of New York
Fentanyl trafficking, weapons, and money laundering charges were unsealed today in the Southern District of New York against 28 defendants, including three of the Chapitos; top lieutenants and leadership of the Sinaloa Cartel; alleged manufacturers and distributors of the Sinaloa Cartel’s fentanyl; the managers of the violent armed security apparatus that protects the Sinaloa Cartel’s drug trafficking operations; the sophisticated money launderers who repatriate the Sinaloa Cartel’s drug proceeds back to Mexico; and multiple chemical precursor suppliers in China that fuel the Sinaloa Cartel’s fentanyl distribution operation.
According to court documents, Ivan Guzman Salazar, Alfredo Guzman Salazar, Ovidio Guzman Lopez, and their co-conspirators allegedly controlled extensive, multi-faceted, and international operations covering the fentanyl trade. Through these efforts, the Chapitos and the Sinaloa Cartel allegedly reaped hundreds of millions of dollars in profits by flooding the United States with fentanyl.
Seven defendants are in custody pending extradition proceedings.
Ovidio Guzman Lopez is charged in a separate indictment alleging the same offenses.
The DEA investigated the case with assistance from the Department of Treasury’s Office of Foreign Assets Control and the Department of State’s Rewards for Justice Program.
Assistant U.S. Attorneys Kyle A. Wirshba, Nicholas S. Bradley, Sarah L. Kushner, David J. Robles, and Alexander Li for the Southern District of New York are prosecuting the case. The Justice Department’s Office of International Affairs (OIA) provided substantial assistance.
Northern District of Illinois
Narcotics, money laundering, and firearms charges were unsealed today in the Northern District of Illinois against four of the Chapitos: Ivan Guzman Salazar, Alfredo Guzman Salazar, Joaquin Guzman Lopez, and Ovidio Guzman Lopez.
According to court documents, the charges stem from a decades-long, collaborative, multi-district effort between the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS), the Northern District of Illinois, the Southern District of California, and their law enforcement partners. The indictment alleges that between May 2008 and April 5, 2023, the Chapitos operated a drug trafficking Continuing Criminal Enterprise (CCE), along with additional drug, money laundering, and firearms charges.
Ovidio Guzman Lopez is charged in a separate indictment alleging the same offenses, dating from May 2008 until October 2021, when Mexican authorities arrested him on Jan. 5 in Culiacan, Sinaloa, Mexico. Ovidio Guzman Lopez remains detained in Mexico pending extradition proceedings.
The FBI Washington Field Office and San Diego Field Office, Homeland Security Investigations Nogales Office, DEA’s Chicago Division and San Diego Division, and IRS Criminal Investigations Chicago Office are investigating the case.
Acting Deputy Chief Katharine Wagner and Trial Attorney Kirk Handrich of NDDS, Assistant U.S. Attorneys Andrew Erskine and Erika Csicsila for the Northern District of Illinois, and Assistant U.S. Attorney Matthew Sutton for the Southern District of California are prosecuting the case. OIA provided substantial assistance.
This case is supported by the Organized Crime Drug Enforcement Task Forces (OCDETF).
District of Columbia
Narcotics, firearms, and witness retaliation charges were unsealed today in the District of Columbia against Nestor Isidro Perez Salas, aka Nini, 31, allegedly one of the Chapitos’ lead sicarios, or assassins.
According to court documents, Perez Salas is allegedly a leader and commander of the “Ninis,” a violent group charged with providing security for the Chapitos. From at least 2012 until February 2021, Perez Salas allegedly conspired to distribute and manufacture cocaine and methamphetamine for unlawful importation into the United States, used a firearm in furtherance of the alleged drug-trafficking offense, and killed, attempted to kill, threatened, and caused bodily injury to another to intimidate a government witness and informant.
The FBI Washington Field Office is investigating the case.
Trial Attorneys Kirk Handrich and Kate Naseef of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.
This case is supported by the OCDETF.
* * * * *
The U.S. Department of State, through its Narcotics Rewards Program, is offering rewards of up to $10 million for information leading to the arrest and/or conviction of Ivan Guzman Salazar, Alfredo Guzman Salazar, and Ovidio Guzman Lopez, and up to $5 million for information leading to the arrest and/or conviction of Joaquin Guzman Lopez.
Attorney General Merrick B. Garland, Deputy Attorney General Lisa O. Monaco, FBI Director Christopher A. Wray, DEA Administrator Anne Milgram, Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Damian Williams for the Southern District of New York, U.S. Attorney Randy Grossman of the Southern District for California, Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois, and Acting Deputy Director PJ Lechleitner of the U.S. Immigration and Customs Enforcement (ICE) made the announcement.
Photos of the fugitives can be obtained at www.dea.gov/fugitives.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on April 13 was:
Jesse Ray Blackman, 40, of Billings, on charges of interstate threats and cyberstalking. If convicted of the most serious crime, Blackman faces a maximum of five years in prison, a $250,000 fine and three years of supervised release. Blackman was detained pending further proceedings. The FBI and Blackfeet Law Enforcement Services, with assistance from the Yellowstone County Sheriff’s Office, investigated the case. PACER case reference. 23-123.
Appearing on April 11 was:
Camille Ann Rounds, 45, Deborah Lynn Renenger, 32, and Keegan Tait Roll, 28, all transients, on fentanyl trafficking charges. Rounds and Renenger are charged with conspiracy to possess with intent to distribute fentanyl, conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute fentanyl, possession with intent to distribute meth and possession of a firearm in furtherance of a drug trafficking crime. Roll is charged with conspiracy to possess with intent to distribute fentanyl and possession with intent to distribute fentanyl. If convicted of the most serious crime, Rounds and Renenger face a mandatory minimum of five years to 40 years in prison, a $5 million fine and at least four years of supervised release on the meth trafficking crime, and a mandatory minimum of five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release, on the firearm crime. Roll faces a maximum of 20 years in prison, a $1 million fine and at least three years of supervised release. All defendants were detained pending further proceedings. The Billings Police Department, Homeland Security Investigations, Yellowstone County Sheriff’s Office, Montana Highway Patrol and Drug Enforcement Administration investigated the case. PACER case reference. 23-40.
Cynthia Rae Pruett, 51, of Acton, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Pruett faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Pruett was detained pending further proceedings. The Drug Enforcement Administration, Billings Police Department, U.S. Border Patrol, Laurel Police Department, Yellowstone County Sheriff’s Office and Montana Highway Patrol investigated the case. PACER case reference. 23-39.
Appearing on April 10 was:
Paul Nomee III, 60, of Lodge Grass, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Nomee faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Nomee was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Bureau of Indian Affairs investigated the case. PACER case reference. 23-29.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on April 11 was:
Nikki Marie Snell, 38, of Wolf Point, on charges of possession with intent to distribute meth, possession of a firearm in furtherance of a drug trafficking crime and prohibited person in possession of a firearm. If convicted of the most serious crime, Snell faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release on the crime of prohibited person in possession of a firearm and a mandatory minimum five years to life in prison, consecutive to any other crime, a $250,000 fine and five years of supervised release on the crime of possessing a firearm in a drug trafficking crime. Snell was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations and Great Falls Police Department investigated the case. PACER case reference. 23-31.
Shacotta Keenan St. Onge, aka Shaq, 30, of Great Falls, on charges of possession with intent to distribute controlled substances and distribution of controlled substances. If convicted of the most serious crime, St. Onge faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. St. Onge was detained pending further proceedings. Homeland Security Investigations, the Great Falls Police Department and Drug Enforcement Administration investigated the case. PACER case reference. 23-33.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Illinois Man Sentenced to over 13 years in Prison for Distributing Heroin and Fentanyl Near a College and ParkRead the Press Release
A man who distributed heroin and fentanyl in Dubuque, Iowa, was sentenced April 13, 2023, to more than 13 years in prison in federal court in Cedar Rapids.
Menelaeus C. Watson, age 35, from Chicago, Illinois, was convicted of distribution of heroin and fentanyl within 1,000 feet of a protected location.
In a plea agreement, Watson admitted to engaging in two transactions to distribute heroin and fentanyl in Dubuque. The transactions took place within 1,000 feet of a local college and two parks. Watson was previously convicted for unlawfully delivering illegal controlled substances on two separate occasions in Illinois.
Sentencing was held before United States District Court Judge C.J. Williams.
Watson was sentenced to serve 164 months’ imprisonment and must serve a 6-year term of supervised release following his term of incarceration. There is no parole in the federal system. Watson remains in the custody of the United States Marshal until he can be transported to federal prison.
This case was investigated by the Dubuque Drug Task Force and was prosecuted by Assistant United States Attorney Jason D. Norwood.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 21-CR-1033-CJW.
Follow us on Twitter @USAO_NDIA.
Hazelwood Man Sentenced to 224 Months in Prison for St. Louis Carjacking, Other CrimesRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Friday sentenced a man to 18 years and eight months in prison for a carjacking and other crimes.
Joshua Thomas, 31, admitted being one of two men who stole a 2020 Jeep Cherokee from a woman outside a home in the 4100 block of Camellia Avenue in St. Louis on Oct. 19, 2019. Thomas, who was armed with an AR-15-style firearm, demanded entry to a nearby home and searched it before stealing the car.
Two days later, St. Louis Metropolitan Police Department detectives spotted Thomas and tried to stop him at a market located at the intersection of South Spring Avenue and Delor Street. Thomas sped off in a Kia Optima. Police used a spike strip to deflate the tires, but Thomas kept going, eventually crashing near the intersection of Walsh Avenue and South Grand Boulevard. Thomas discarded a Smith and Wesson 9mm pistol before running away. Police also found drugs, an AR-style pistol loaded with 59 rounds of ammunition and a stolen AK-style pistol loaded with 31 rounds in the car.
Thomas also admitted possessing ammunition on Sept. 30, 2019, the same day a man who was hiding in some bushes in the 3800 block of South Spring Avenue in St. Louis began firing shots at a group of people, hitting one person. Witnesses identified Thomas as the shooter, his plea agreement says.
Thomas pleaded guilty in January to six felonies: carjacking, possession and brandishing a firearm in furtherance of a crime of violence, possession with intent to distribute methamphetamine, possession of a stolen firearm and being a felon in possession of both a firearm and ammunition.
In August, Judge Pitlyk sentenced Thomas’ co-defendant, Jeremiah Couch, 32, to 15 years in prison. Couch pleaded guilty to two carjacking charges, a charge of possession of a stolen firearm and a charge of being a felon in possession of a firearm. He admitted involvement in the Jeep Cherokee carjacking, as well as carjacking a man’s 2007 Ford Edge and his money at gunpoint on October 21, 2019 in the 4700 block of South Spring Avenue in St. Louis. Couch also admitted stealing the AK-47-style pistol from the shooting victim on Oct. 17, 2019.
The case was investigated by the Saint Louis Metropolitan Police Department and the FBI. Assistant U.S. Attorney Jennifer Szczucinksi prosecuted the case.
Haverhill Pill Distributor Indicted for Trafficking Tens of Thousands of Pills Containing Fentanyl and MethamphetamineRead the Press Release
BOSTON – A Haverhill man has been indicted by a federal grand jury in Boston for allegedly distributing tens of thousands of pills containing fentanyl and methamphetamine.
Angel Joel Diaz, a/k/a “Guero,” 34, was indicted on one count of distribution of and possession with intent to distribute fentanyl, two counts of distribution of and possession with intent to distribute 400 grams or more of fentanyl, and one count of possession with intent to distribute 400 grams or more of fentanyl, 50 grams or more of methamphetamine, and methadone. Diaz was previously arrested and charged by criminal complaint on Feb. 15, 2023.
According to the charging documents, in January 2023, an investigation began into Diaz’s fentanyl pill manufacturing and distribution operation. On Jan. 10, 2023, an undercover officer contacted Diaz posing as a potential drug customer seeking to purchase counterfeit prescription pills containing fentanyl. It is alleged that after Diaz agreed to meet the following day, on Jan. 11, 2023, he then provided the undercover officer with 208 fentanyl pills weighing approximately 26 grams. Half of the pills allegedly contained methamphetamine in addition to fentanyl. During the meeting, it is alleged that Diaz told the officer that he manufactures his own fentanyl pills, which he distributes in Lawrence and Boston as well as in New York via mail shipments. Following the meeting, Diaz allegedly maintained communication with the undercover officer regarding additional fentanyl pill purchases. During the communications, it is alleged that Diaz sent several photos depicting his manufacturing process including images of a blue substance in tin pans, wrapped bricks of suspected fentanyl and blue pills with “M-30” stamps commonly used to manufacture counterfeit pills.
It is further alleged that on two subsequent occasions, Jan. 27, 2023 and Feb. 7, 2023, Diaz distributed thousands of counterfeit prescription pills containing suspected fentanyl to the undercover officer. On Feb. 14, 2023, Diaz allegedly sent a photo of suspected fentanyl pills to the undercover officer saying that, “even making it with a mask makes you want to vomit and everything.”
According to court documents on Feb. 15, 2023, Diaz was arrested while carrying a shopping bag containing tens of thousands of fentanyl pills separated into seven plastic bags. During a subsequent search of Diaz’s Haverhill residence two pill presses; thousands of pills; pill stamps; several masks; loose powder of various colors; and suspected fentanyl powder and chemicals used in manufacturing pills were recovered.
The charge of distribution of and possession with intent to distribute fentanyl and methamphetamine provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. The charges of distribution of and possession with intent to distribute 400 grams or more of fentanyl and 50 grams or more of methamphetamine and methadone provide for a sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 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.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorney Samuel R. Feldman of Rollins’ Narcotics & Money Laundering Unit 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.
Gary Man Sentenced to 2 Consecutive Terms of Life in PrisonRead the Press Release
HAMMOND- Hailey Gist-Holden, age 28, of Gary, Indiana, was sentenced by United States District Court Judge Philp P. Simon after a jury found him guilty of armed bank robbery, and using, carrying, brandishing, and discharging a firearm during that bank robbery. The jury specifically found that, as part of the bank robbery and the discharging of the firearm, Gist-Holden killed/murdered the bank security guard. This prosecution arose out of the June 11, 2021, armed robbery of a First Midwest Bank on Ridge Road in Gary, Indiana.
Gist-Holden received two consecutive life sentences in prison followed by 2 years of supervised release.
According to documents in the case, Gist-Holden and other individuals formulated a plan to rob the Bank on Ridge Road in Gary, Indiana. Before actually entering the Bank, Gist-Holden, at point blank range, shot the Bank’s security guard. Gist-Hilden then proceeded into the Bank to complete the robbery. While another member of the robbery crew entered the Bank building and stole approximately $9,000.00, Gist-Holden remained in the doorway of the building firing bullets that shattered windows. After the robbery, Gist-Holden and a co-defendant fled Indiana. Gist-Holden, was subsequently apprehended in Georgia by local law enforcement following a high-speed car chase.
Previously, co-defendants James Anthony King and Kenyon Hawkins pled guilty to armed bank robbery and murder resulting from the discharge of a firearm during the robbery. Both are awaiting sentencing. Another alleged participant in this bank robbery is set to be tried separately.
“First, I want to express by sincerest condolences to the victims in this case. I fully recognize that Gist-Holden’s prosecution does not diminish the anxiety you face or the sorrow that you are – and will continue—to experience because of this senseless act of violence,” said United States Attorney Clifford D. Johnson. “Second, as this case proves, my office, with the support and assistance of federal, state and local enforcement agencies, will prosecute vigorously persons who commit volent crimes that destroy the peace of Northern District of Indiana residents and businesses.”
“While this senseless act of violence will have a lifelong impact on the victims, I hope that knowing this defendant has been held accountable for his crimes helps their healing process,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “Violent acts such as this in our communities are intolerable and the FBI and our law enforcement partners will continue our efforts to remove dangerous individuals such as the defendant from our streets.”
“I commend the efforts of the numerous law enforcement agencies who participated in this investigation and the United States Attorney’s Office for their partnership in prosecuting those accountable for this tragedy,” commented Special Agent in Charge Christopher Amon. “ The men and women of ATF stand shoulder to shoulder with our law enforcement and prosecutorial partners to ensure our communities are safe.”
This investigation was led by the Federal Bureau of Investigation Gang Response Investigative Team with the assistance of the Lake County Sheriff’s Department; the Lake County Prosecutor’s Office; the Indiana State Police; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Gary Police Department. Additional investigative assistance was provided by the FBI Offices in Chicago, Miami, and Atlanta along with the Georgia State Police, the Atlanta Police Department, and the Lowndes County (GA) Sheriff’s Department. Additional investigative assistance was provided by the FBI Offices in Chicago, Miami, and Atlanta along with the Georgia State Police, the Atlanta Police Department, and the Lowndes County (GA) Sheriff’s Department. Additionally, the U.S. Attorney’s Offices in the Northern District of Georgia, Middle District of Georgia, and the Middle District of Florida were involved in this cooperative effort. This case was tried by Assistant United States Attorneys Caitlin M. Padula and Michal J. Toth, who are joined by the prosecution team which includes Assistant United States Attorneys David Nozick and Kimberly Schultz.
Four of Chapo’s Sons Indicted for Large-Scale Drug Trafficking, Money Laundering and Violent Crimes as Alleged Leaders of Sinaloa CartelRead the Press Release
NEWS RELEASE SUMMARY – April 14, 2023
SAN DIEGO – Four sons of Joaquín Guzmán Loera, the imprisoned former Sinaloa Cartel leader known as El Chapo, were indicted by a federal grand jury for large-scale drug trafficking, money laundering and violent crimes in connection with their assumption of cartel leadership following their father’s arrest and extradition to the United States.
The defendants, known collectively as the “Chapitos,” are Ivan Guzman Salazar, Alfredo Guzman Salazar, Joaquin Guzman Lopez, and Ovidio Guzman Lopez. Three brothers remain at large; Ovidio Guzman Lopez was arrested Jan. 5, 2023, by Mexican authorities in Culiacan, Sinaloa, Mexico. He remains detained in Mexico pending extradition proceedings.
The charges, unsealed today, were announced by Attorney General Merrick Garland, U.S. Attorney Randy Grossman and others at a news conference this morning at the U.S. Department of Justice in Washington, D.C. The charges stem from a decades-long, multi-district investigation by the Southern District of California, the Department of Justice Criminal Division’s Narcotic and Dangerous Drug Section, the Northern District of Illinois, and their law enforcement partners. A related indictment charging three of the brothers was also unsealed by the Southern District of New York.
To view press conference, please see https://www.justice.gov/live. For related Department of Justice press release, indictments and link to DEA fugitive photos, please see https://www.justice.gov/opa/pr/justice-department-announces-charges-against-sinaloa-cartel-s-global-operation.
According to the indictment, filed in the Northern District of Illinois, the defendants are charged under the “Continuing Criminal Enterprise Statute,” which targets large-scale drug traffickers who are responsible for long-term and complex drug conspiracies. They are also charged with additional drug trafficking, money laundering, firearms and violent crimes.
The indictment offers the most comprehensive look yet at the operations of the Sinaloa Cartel dating back 15 years. The indictment describes the cartel’s alleged drug transportation and distribution networks; its financial infrastructure that has laundered hundreds of millions of dollars in illicit proceeds; and the extensive use of violence to maintain power, including an internal power struggle
The Chapitos are alleged to have repeatedly and consistently obtained and transported multi-ton quantities of cocaine from and through Central and South America, including Colombia, Ecuador, Venezuela, Peru, Panama, Costa Rica, Honduras, and Guatemala, into Mexico, stored that cocaine throughout Mexico, and transported it across the U.S.-Mexico border for further distribution throughout the United States. The Chapitos and members of the Sinaloa Cartel also allegedly obtained, manufactured, and transported other drugs, including marijuana, heroin, and methamphetamine, knowing and intending that such drugs would be imported into and distributed throughout the United States. The Chapitos also allegedly obtained precursor chemicals for the manufacture of synthetic drugs and operated laboratories to manufacture methamphetamine.
The indictment said the defendants and other members and associates of the Sinaloa Cartel used, and caused to be used, various means to evade and escape law enforcement and military personnel and to protect their drug distribution activities, including on October 17, 2019, at what is known as the “Battle of Culiacán,” when the Mexican National Guard captured and then released Ovidio Guzmán López during a gunfight in Sinaloa state.
The indictment said the defendants obtained guns and other weapons; bribed corrupt public officials; and incited, threatened and engaged in violence, including murder, kidnapping, assault, and battery against law enforcement, rival drug traffickers, and members of their own drug trafficking organization.
The Chapitos allegedly used cargo aircraft, private aircraft, submarines and other submersible and semi-submersible vessels, container ships, supply vessels, go-fast boats, fishing vessels, buses, rail cars, tractor trailers, automobiles, and private and commercial interstate and foreign carriers to transport their drugs and precursor chemicals. They allegedly maintained a network of couriers, tunnels, and stash houses throughout Mexico and the United States to further their drug-trafficking activities. The Chapitos allegedly used these networks to import the drugs into the United States.
“Today, the Justice Department is announcing significant enforcement actions against the largest, most violent, and most prolific fentanyl trafficking operation in the world – run by the Sinaloa Cartel, and fueled by Chinese precursor chemical and pharmaceutical companies,” said Attorney General Merrick B. Garland. “Families and communities across our country are being devastated by the fentanyl epidemic. Today’s actions demonstrate the comprehensive approach the Justice Department is taking to disrupt fentanyl trafficking and save American lives.”
“Today, we deliver the most crushing blow to the Sinaloa Cartel since the conviction of Chapo Guzman,” said U.S. Attorney Randy Grossman. “We have charged Chapo’s four sons with leading a criminal enterprise built on trafficking tons of deadly drugs into our nation, money laundering, and murder. This case and others we have brought out of the Southern District of California demonstrate our unwavering resolve to dismantle the Sinaloa Cartel by attacking it at every level.” Grossman thanked the prosecution team and dedicated law enforcement partners at the FBI, HSI, DEA and IRS for their extraordinary work on this case.
“These indictments have been a long time in the making and we wouldn’t be here without the collaboration of our local, state, federal, and international partners,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “While there will always be more work to be done, these indictments will continue the dismantlement of an extremely vicious criminal enterprise that has been a primary driver of violence in our communities. We will continue to leverage our law enforcement partnerships to keep pressure on transnational criminal organizations like Los Chapitos.”
“Dismantling this notorious criminal organization flooding the U.S. with deadly narcotics and brutal criminal activity takes the collaboration of a multitude of law enforcement agencies and we are seeing the results of our collective efforts in today’s indictment,” said Special Agent in Charge Chad A. Plantz, HSI’s San Diego Field Office. “HSI proudly stands with our local, state and federal partners as we disrupt and dismantle criminal organizations such as the Sinaloa Cartel to end the violence they fuel across the country.
“The indictment alleges that for years, Joaquín Guzmán Loera’s (El Chapo) sons have destroyed lives and communities through drug trafficking and violence: their time is up,” said DEA Special Agent in Charge Shelly Howe. “These indictments were made possible by our cooperation with local, state, and federal partners. These partnerships demonstrate our collective commitment to tracking down, apprehending, and dismantling one of the strongest drug trafficking cartels from the top down.”
“The indictment alleges that the Chapitos moved drugs and money on a grand scale, and secured and maintained power with intimidation and violence,” said IRS-CI Chief Jim Lee. “Today, we say, no more. For the special agents of IRS Criminal Investigation, the work of investigating dangerous criminals never stops. This indictment shows our commitment to aggressively go after those committing financial crimes who are profiting from their illegal activities no matter who they are or where they commit the crime.”
Once led by the Chapitos’ father, Joaquin Guzman Loera, aka El Chapo, and Ismael Zambada Garcia, aka El Mayo, the Sinaloa Cartel’s members and associates – allegedly including the Chapitos – smuggled significant quantities of drugs through Mexico and into the United States.
Following Guzman Loera’s arrest in January 2016 and extradition to the United States in January 2017, the Chapitos allegedly assumed their father’s former role as leaders of the Sinaloa Cartel, along with Zambada Garcia and Damaso Lopez Nunez, aka Licenciado. The Chapitos subsequently amassed greater control over the Sinaloa Cartel by allegedly threatening and causing violence against Damaso Lopez Nunez, his family, and his associates and, as a result, became principal leaders and drug traffickers within the Sinaloa Cartel.
The U.S. Department of State, through its Narcotics Rewards Program, is offering rewards of up to $10 million for information leading to the arrest and/or conviction of Ivan Guzman Salazar, Alfredo Guzman Salazar, and Ovidio Guzman Lopez and up to $5 million for information leading to the arrest and/or conviction of Joaquin Guzman Lopez.
Assistant U.S. Attorney Matthew J. Sutton for the Southern District of California and Acting Deputy Chief Katharine Wagner and Trial Attorney Kirk Handrich of the Criminal Division’s Narcotic and Dangerous Drug Section, and Assistant U.S. Attorneys Andrew Erskine and Erika Csicsila for the Northern District of Illinois, are prosecuting the case.
U.S. Attorney Grossman thanked federal, state and local law enforcement for the coordinated team effort in the culmination of this investigation. The FBI San Diego Field Office and Washington Field Office, Homeland Security Investigations San Diego and Nogales Office, DEA’s San Diego Division and Chicago Division, and IRS Criminal Investigation are investigating the case.
This prosecution is also 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.
DEFENDANTS Case Number 09-CR-383 (ND-IL)
*Ivan Guzman Salazar Age: 40 Sinaloa, MX
*Alfredo Guzman Salazar Age: 37 Sinaloa, MX
*Joaquin Guzman Lopez Age: 36 Sinaloa, MX
Ovidio Guzman Lopez Age: 33 Sinaloa, MX
*Fugitives
An indictment and or complaint is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances in violation of Title 21 U.S.C. §§ 841 and 846
Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine.
Continuing Criminal Enterprise, in violation of Title 21 U.S.C. §§ 848(a) and (b)
Term of custody including a mandatory minimum 20 years and up to life imprisonment, $2 million fine.
The defendants are charged as the principal administrators, organizers or leaders of the enterprise or is one of several such principal administrators, organizers, or leaders; and the violation involved 300 times the quantity of a substance described in subsection 841(b)(1)(B) (100 grams of heroin, 500 grams of cocaine, 100 kilograms of marijuana or 50 grams of Methamphetamine mixture), which is mandatory life imprisonment.
Conspiracy to Import Controlled Substances, in violation of Title 21 U.S.C. §§ 952, 960 and 963. Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine.
Conspiracy to Distribute Controlled Substances for Purpose of Unlawful Importation, in violation of Title 21 U.S.C. §§ 959, 960 and 963; Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine.
Distribution of a Controlled Substance, in violation of Title 21 U.S.C. § 841(a)(1); Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine.
Conspiracy to Commit Money Laundering, in violation of Title 18 U.S.C. §§ 1956 (a)(2)(A) and (h); Term of custody up to 20 years imprisonment, a fine of the greater of $500,000 or twice the value of the monetary instrument or funds involved.
Use and Possession of a Firearm During a Drug Trafficking Crime, in violation of 924(c)(1)(A), (c)(1)(B). Term of custody up to life imprisonment, and a mandatory consecutive sentence of 30 years imprisonment.
AGENCIES
Federal Bureau of Investigation
Homeland Security Investigations
Drug Enforcement Administration
Internal Revenue Service Criminal Investigation
United States Marshals Service
Customs and Border Protection Office of Field Operations
Customs and Border Protection Office of Border Patrol
Department of Justice, Organized Crime Drug Enforcement Task Forces
Department of Justice, Narcotics and Dangerous Drug Section
Department of Justice, Office of International Affairs
Department of Justice, Office of Enforcement Operations, Electronic Surveillance Unit
U.S. Attorney’s Office for the Northern District of Illinois
Department of Treasury, Office of Foreign Asset Control
San Diego County District Attorney’s Office
San Diego Law Enforcement Coordination Center
Interpol
Four Men Charged with Possessing Machineguns in Furtherance of Drug TraffickingRead the Press Release
Indictment Alleges the Assembly and Use of Fully Automatic “Ghost Guns”
WASHINGTON – Four men were arraigned this morning on federal charges, including conspiracy to distribution of marijuana and oxycodone, unlawful transfer and possession of a machinegun, and using, carrying, and possessing machineguns during, in relation to, or in furtherance of drug trafficking. The charges were announced by U.S. Attorney Matthew M. Graves, Special Agent in Charge Wayne A. Jacobs, of the FBI Washington Field Office Criminal and Cyber Division, Acting Special Agent in Charge Michael T. Weddel of the ATF Washington Field Division, and Chief Robert J. Contee, III, of the Metropolitan Police Department (“MPD”).
The indictment alleges that Eugene Tracy Hill, also known as “Geno” or “Cheese,” Diante Arik Wiley, also known as “Sleez” or “Taybino,” Broadus Jamal Daniels, also known as “Wardy,” and Andre Alonte Willis, also known as “Boogie,” were engaged in a years-long conspiracy to distribute marijuana and oxycodone. It is further alleged that Hill and Willis distributed, possessed with the intent to distribute, or conspired to distribute more than 100 kilograms of marijuana.
The indictment further alleges that, in furtherance of their drug trafficking conspiracy, and in order to protect the co-conspirators and their drugs, money, and drug-dealing territory, Wiley assembled AR-Pistol machineguns from parts that he bought through online retailers and sold those machineguns to Hill, Daniels, Willis, and others. Since the AR-Pistols that Wiley built were assembled from parts, they had no serial numbers and there was no way for law enforcement to track their possession or sale. Such firearms are defined as “Privately Made Firearm” by ATF but are also referred to as “ghost guns” on the street.
The indictment alleges that Hill, Wiley, Daniels, and Willis used the machineguns for defense of their territory, and also as currency to trade for drugs or other firearms. All four men have been detained since their arrest, and law enforcement seized controlled substances and firearms from each of their residences after they were taken into custody.
If convicted of all charges, each defendant faces a minimum of 30 years in prison.
This indictment is part of a joint investigation which has resulted in the seizure of two vehicles, 13 handguns, five machineguns, and hundreds of rounds of ammunition, as well as almost 40 pounds of marijuana, dozens of oxycodone pills, and more than $300,000 in cash.
In announcing the charges, U.S. Attorney Graves, Special Agent in Charge Jacobs, Acting Special Agent in Charge Weddel, and Chief Contee commended the work of those who investigated the case, including FBI, ATF, and MPD. Finally, they cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney James B. Nelson and Paralegal Specialist Genevieve de Guzman.
The charges in an indictment are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Four Arrested after DEA-led Investigation into Waterbury Drug Trafficking RingRead the Press Release
United States Attorney Vanessa Roberts Avery, Special Agent in Charge Brian D. Boyle of the Drug Enforcement Administration for New England, and Waterbury Police Chief Fernando C. Spagnolo today announced that the following four individuals were arrested yesterday on federal criminal complaints charging each with conspiracy to distribute controlled substances, including fentanyl, heroin, cocaine, and cocaine base (“crack”):
GAWAYNE FISHER, a.k.a. “Fruit” and “Tank,” 47, of Waterbury
TERRY COLLINS, 29, of Bristol
DAVID HING, a.k.a. “LA,” 57, of Waterbury
DERRICK PRUDEN, a.k.a. “DP,” 53, of WaterburyAs alleged in court documents and statements made in court, for approximately nine months, the DEA New Haven Task Force, the DEA Tactical Diversion Squad, the Waterbury Police Department, and other law enforcement agencies have been conducting an investigation into drug trafficking in and around the city of Waterbury by Fisher and his associates. The investigation, which has included court-authorized wiretaps on multiple phones, physical surveillance, and controlled purchases of narcotics, revealed that Fisher received heroin/fentanyl from Collins, and fentanyl/heroin and cocaine from other suppliers. He then distributed the narcotics to other drug sellers, including Hing and Pruden.
It is also alleged that Fisher used an apartment at 1015 West Main Street in Waterbury to store narcotics, and that Collins used a residence at 109 Yale Street in Waterbury as a “heroin mill,” where he and others stored narcotics and processed and packaged narcotics for distribution.
On April 13, 2023, in association with the arrests of the four defendants, agents and officers from the DEA, FBI, Connecticut State Police, and Waterbury, Naugatuck, Bristol and East Haven police departments, executed multiple federal and state search warrants that resulted in the seizure of drugs and cash proceeds (photos attached). A search of the apartment at 1015 West Main Street revealed an estimated 16 kilograms of cocaine, three kilograms of fentanyl, and an estimated 125,000 individual glassine bags containing a substance that field tested positive as fentanyl. A search of 109 Yale Street in Waterbury revealed drug-processing equipment, an estimated three kilograms of loose fentanyl, and an estimated 75,000 individual glassine bags containing a substance that field tested positive as fentanyl. In addition, a search of Fisher’s residence on Beverly Avenue in Waterbury revealed approximately $150,000 in cash.
“As fentanyl addiction continues to cause so much misery in our state and around the country, we are determined to interrupt the flow of this deadly drug, seize drug proceeds, and prosecute those involved to the full extent of the law,” said U.S. Attorney Avery. “It is alleged that these defendants flooded the Waterbury area with fentanyl and other drugs, and yesterday’s seizures represent one of the largest we have seen in Connecticut to date. I thank the DEA, Waterbury Police and our many partner law enforcement agencies involved in this investigation for their tireless efforts in taking these drugs off the street. Their work is saving lives.”
“Illegal drug distribution ravages the very foundations of our families and communities here in Connecticut,” said DEA Special Agent in Charge Brian D. Boyle. “Let these arrests and seizures serve as an example and be a warning to those who distribute poisons like fentanyl, heroin and cocaine, that DEA will aggressively and actively pursue and hold you accountable. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners here in Connecticut and our solid relationship with the U.S. Attorney’s Office.”
“Our partnership with the DEA and the U.S. Attorney’s Office continues to thwart drug trafficking in Waterbury,” said Chief Spagnolo. “We look forward to continuing this important work with our federal partners to remove these drugs, and those involved in distributing it, from our community.”
Following their arrests, Fisher, Collins, Hing and Pruden appeared before U.S. Magistrate Judge Maria E. Garcia in New Haven. Fisher, Hing, and Pruden were ordered detained, and Collins was released on a $100,000 bond.
U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the DEA New Haven Task Force, the DEA Tactical Diversion Squad, and the Waterbury Police Department, with the assistance of the Federal Bureau of Investigation, U.S. Marshals Service, Connecticut State Police, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Naugatuck, Ansonia, West Haven, Meriden, East Haven, Branford, Shelton, and Bristol Police Departments.
The DEA New Haven Task Force includes participants from the DEA, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Waterbury, East Haven, Branford, West Haven, Ansonia, Meriden, Naugatuck, and Shelton Police Departments. The DEA Tactical Diversion Squad is composed of personnel from the DEA and the Manchester, Glastonbury, West Haven, Hamden, Newington, and Bristol Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys Patrick Caruso, Natasha Freismuth, and Daniel Cummings through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Fort Dodge Woman Sentenced to Federal Prison for Nearly 10 Years for Meth Conspiracy ConvictionRead the Press Release
A woman who conspired to distribute methamphetamine was sentenced on April 5, 2023, in federal court in Sioux City, to 117 months’ imprisonment.
Amber Miller, 35, from Fort Dodge, Iowa, pled guilty on November 2, 2022, to conspiracy to distribute methamphetamine.
At the plea and sentencing hearings, evidence showed Miller’s involvement in a conspiracy scheme that distributed more than 15 kilograms of methamphetamine from January 2020 through April 2022. On two separate occasions in January and March 2021, Miller distributed a total of 140 grams of methamphetamine to an individual cooperating with law enforcement, during controlled purchase operations. Miller also admitted conduct obstructing justice.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Miller was sentenced to 117 months’ imprisonment and must serve a four-year term of supervised release following the imprisonment. There is no parole in the federal system. Miller remains in custody of the United States Marshal until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Iowa Division of Narcotics Enforcement, Webster County Sheriff’s Office, and Hamilton County Sheriff’s Office, DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-3015. Follow us on Twitter @USAO_NDIA.
Fort Dodge Man Headed Back to Federal Prison for Violating Federal Supervised ReleaseRead the Press Release
A man who violated the terms of his federal supervised release was sentenced April 10, 2023, to three years in federal prison.
Jeremiah Preston, 40, from Fort Dodge, Iowa, received the prison term after a Judge found him guilty of violating the terms and conditions of his supervised release. Preston was previously convicted of being a felon in possession of a firearm and distribution of a controlled substance and was sentenced to 84 months’ imprisonment. Preston began his term of supervised release in October 2022.
Evidence at the hearings showed Preston began violating multiple conditions of his supervised release shortly after his release from prison. In January 2023, during a traffic stop, Preston was found with two ounces of methamphetamine which he intended to distribute to others.
Preston was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Preston was sentenced to 36 months’ imprisonment. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
Preston is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the U.S. Probation Office, the Iowa Division of Narcotics Enforcement, Webster County Sheriff’s Office, and the Fort Dodge Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 15-3048 and 16-3028. Follow us on Twitter @USAO_NDIA.
Former Postal Employee Pleads Guilty to Stealing Gift Cards and Money from the MailRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Shalika Williams, 30, of Buffalo, NY, pleaded guilty to officer or employee of the United States converting property of another, less than $1000, before U.S. Magistrate Judge Mark W. Pedersen. The charge carries a maximum penalty of one year in prison, and a $100,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that between September and November 4, 2022, Williams was employed by the United States Postal Service as a sales, service, and distribution associate at the Buffalo Processing and Distribution Center. During this time, Williams riffled through and opened sealed pieces of mail and stole approximately 10 to 15 gift cards valued at $360 and $300 in cash.
The plea is the result of an investigation by the United States Postal Service Office of Inspector General, under the direction of Special Agent-in-Charge Matthew Modafferi, Northeast Area Field Office.
Sentencing is scheduled for August 21, 2023, at 1:00 p.m. before Judge Pedersen.
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Former North Shore Resident Pleads Guilty to COVID-Relief FraudRead the Press Release
BOSTON – A former North Shore resident pleaded guilty yesterday in federal court to charges that he filed fraudulent applications for more than $660,000 in Paycheck Protection Program (PPP) loan funds and used those funds for personal expenses, including the purchase of an alpaca farm in Vermont.
Dana L. McIntyre, 59, of Grafton, Vt. and previously of Beverly and Essex, Mass., pleaded guilty to four counts of wire fraud and three counts of money laundering. U.S. District Court Judge Denise J. Casper scheduled sentencing for July 12, 2023. McIntyre was arrested and charged by criminal complaint and later indicted by a federal grand jury in May 2021.
McIntyre is the former owner of Rasta Pasta Pizzeria in Beverly. In March 2020, McIntyre used the names of his adult children to submit two fraudulent applications to the U.S. Small Business Administration (SBA) for Economic Injury Disaster Loans (EIDL) for fictitious businesses. Beginning in April 2020, McIntyre submitted an application and weekly certifications in order to receive Pandemic Unemployment Assistance (PUA) benefits. In these filings, McIntyre falsely claimed that he was not working or receiving income as a result of the pandemic, while McIntyre in fact was still operating the restaurant and paying himself income from the business. By September 2020, when McIntyre sold the restaurant, he had received over $17,000 in PUA and related benefits that he was not entitled to receive.
In April 2020, McIntyre submitted a fraudulent application for a PPP loan of over $660,000 through an SBA-approved lender. In the application, McIntyre inflated information about the pizzeria’s employees and payroll expenses and falsified an official tax form in an effort to qualify the business for a larger loan amount. After receiving a PPP loan of over $660,000, McIntyre sold the pizzeria and used nearly all the funds to purchase and improve an alpaca farm in Vermont and on other personal expenses, including two vehicles and air time for his crypto-currency themed radio show.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss from the scheme, whichever is greater. The charge of money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000, or twice the value of the criminally derived property. 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.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office made the announcement today. Assistant U.S. Attorneys David M. Holcomb and Mackenzie A. Queenin of Rollins’ Securities, Financial & Cyber Fraud Unit are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.Florida Woman Pleads Guilty to Defrauding Holocaust Survivor of $2.8 Million in Connection with Romance ScamRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that PEACHES STERGO pled guilty today before United States District Judge Edgardo Ramos in connection with her years-long scheme to defraud an 87-year-old Holocaust survivor of his life savings.
U.S. Attorney Damian Williams said: “Peaches Stergo stole the life savings from an 87-year-old Holocaust survivor who was just looking for companionship. This conduct is sick – and sad. Using the millions in fraud proceeds, Stergo lived a life of luxury, purchasing a home in a gated community and a Corvette, taking vacations at hotels like the Ritz Carlton, and buying thousands in designer clothing, while at the same time causing her elderly victim to lose his apartment. Thanks to the hard work of the FBI and this Office, Stergo is being held accountable for her fraud.”
As alleged in the Indictment:
From at least in or about May 2017, up to and including at least October 2021, STERGO engaged in a scheme to defraud an 87-year-old Holocaust survivor (the “Victim”) of over $2.8 million, which was his life savings.
STERGO met the Victim on a dating website approximately six or seven years ago. In or about early 2017, STERGO asked the Victim to borrow money to pay her lawyer, who she claimed was refusing to release funds from an injury settlement. After the Victim gave her the money, STERGO said the settlement funds had been deposited into her TD Bank account. In reality, bank records show STERGO never received any money from an injury settlement.
Over the next four and a half years, STERGO continued her lies. She repeatedly demanded that the Victim deposit money into her bank accounts. She claimed that if he did not, her accounts would be frozen and he would never be paid back. In total, the Victim wrote 62 checks — totaling over $2.8 million — that were deposited into one of two of STERGO’s bank accounts.
In furtherance of the fraud, STERGO created a fake email account, intended to appear as if it belonged to a TD Bank employee. She also created fake letters from a TD Bank employee and fake invoices.
While the Victim lost his life savings and was forced to give up his apartment, STERGO lived a life of luxury with the millions she received from the fraud: she bought a home in a gated community, a condominium, a boat, and numerous cars, including a Corvette and a Suburban. During the course of the fraud, STERGO also took expensive trips, staying at places like the Ritz Carlton, and spent many tens of thousands of dollars on expensive meals, gold coins and bars, jewelry, Rolex watches, and designer clothing from stores like Tiffany, Ralph Lauren, Neiman Marcus, Louis Vuitton, and Hermes.
* * *
STERGO, 36, of Champions Gate, Florida, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. In connection with the guilty plea, STERGO agreed to pay $2,830,775 in restitution and to forfeit the same amount, along with over 100 luxury items she purchased with fraud proceeds, including Rolex watches, designer purses and clothing, and large amounts of gold and jewelry.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Sentencing has been scheduled for July 27, 2023, at 11:00 a.m.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Adam Sowlati is in charge of the prosecution.
Film Producer Sentenced to 10 Years for Bank RobberyRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Nacoe Ray Brown (55, Baltimore, Maryland) to 10 years in federal prison for bank robbery and violating the terms of his supervised release. The penalties included 8 years for the robbery offense and 2 years consecutive for violating the terms of his supervised release related to his previous convictions for bank robbery in the District of Maryland. Brown had pleaded guilty on January 4, 2023.
According to the plea agreement and other court documents, Brown was previously convicted of robbing three banks in the Baltimore area in 2001. After a federal jury convicted him of the robberies, he was sentenced to 25 years in federal prison. In 2020, Brown was released early on compassionate release grounds based upon concerns over the pandemic. Brown then began serving his term of supervised release under the supervision of the U.S. Probation Office in Baltimore.
On June 28, 2022, while visiting Florida, Brown robbed the McCoy Federal Credit Union in Belle Isle. Wearing a baseball cap, sunglasses, a surgical style facemask, and plastic gloves, Brown passed a note to the teller threatening that he had a gun and demanding money. He fled the bank with $4,296 in stolen cash. Surveillance cameras captured Brown as he appeared to the teller during the robbery:
A witness watched Brown flee the bank and enter a nearby gas station where he had staged a change of clothes. The witness reported this to the Belle Isle Police Department, who quickly responded and located Brown at the hotel where he was staying. Police recovered the demand note and the stolen cash from Brown’s bag. They also recovered the disguise he had discarded in the restroom of the gas station.
After he was arrested, Brown told authorities that he committed the bank robbery because he was filming a movie in Florida and had run out of money to pay for the production.
This case was investigated by Federal Bureau of Investigation and the Belle Isle Police Department. It was prosecuted by Assistant United States Attorney Michael P. Felicetta.
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.
Federal Court Permanently Shuts Down Detroit Tax Preparation BusinessRead the Press Release
On March 13, 2022, a federal court in Detroit entered a permanent injunction against Jeanisia Saquise Allen and First Choice Tax Solutions, LLC, The Tax Experts, Inc., The Tax Experts, LLC, and Top Notch Taxes, Inc., prohibiting them from preparing federal tax returns for others and owning, operating, or franchising a tax return preparation business. Following a payment by Allen to the government pursuant to a settlement agreement, the court, with the government’s consent, today dismissed claims against Allen and her businesses seeking the disgorgement of ill-gotten gains that they received for the preparation of tax returns.
In addition, in related cases also filed in the same Detroit federal court, the court previously entered permanent injunctions against Jennifer Sherman and Erica McGowan, and their respective related businesses, Sherman Management Co., LLC and America Enterprise, LLC. The government complaints in those cases alleged that Sherman and McGowan entered into agreements with Allen and her entity, The Tax Experts LLC, to use the name “The Tax Experts” to conduct business preparing tax returns. The complaints in the cases against Sherman and McGown alleged that their companies falsely claimed the Earned Income Tax Credit and education credits, fabricated business income and expenses, and claimed improper filing status for customers.
A third lawsuit against Annetta Powell and Jasmine Powell, who the government also alleges entered into agreements to use the name “The Tax Experts” to conduct a tax preparation business, is ongoing in federal court in Detroit. Annetta Powell agreed to the entry of a preliminary injunction barring her and her businesses from preparing federal tax returns for others until the date on which trial on whether a permanent injunction is warranted occurs.
In the case against Allen, the complaint alleges that The Tax Experts has operated as many as 32 tax preparation stores during a single year, primarily in metro-Detroit, but also in Chicago and Los Angeles. Over the course of three years (2017, 2018, and 2019), businesses operating as “The Tax Experts” allegedly prepared more than 17,000 federal tax returns claiming over $82 million in tax refunds. The complaint alleges that Allen and The Tax Experts failed to train, oversee, and control businesses that operate under an agreement to use that name. The complaint against Allen further alleges the Tax Experts prepare false or fraudulent tax returns exhibiting common and widespread false income, expenses, claims, credits, and deductions. According to the complaint against Allen, the IRS examined 716 federal tax returns prepared by The Tax Experts, resulting in a total additional tax owed to the United States of $3,552,114, or an average of $5,349.57 for each adjusted return.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Shady tax return preparers remain a concern of the IRS, which recently warned taxpayers about unscrupulous tax return preparers as part of the IRS’s Dirty Dozen series. As the 2023 tax season continues, taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS offers tips on how to accurately file returns and how to choose a tax return preparer, as well as steps taxpayers can take to get a jumpstart on filing. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.
Taxpayers seeking assistance can access the IRS’s free directory of federal tax preparers. The IRS also has programs offering free basic return preparation for qualifying seniors and individuals with low to moderate income). In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $73,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Everett Man Pleads Guilty to Securities FraudRead the Press Release
BOSTON – An Everett man pleaded guilty on April 12, 2023 to exerting secret control over a Massachusetts-based company, Cannabiz Mobile, Inc., as part of a pump-and-dump securities fraud scheme.
Christopher R. Esposito, 56, pleaded guilty to one count of securities fraud before U.S. District Court Judge Patti B. Saris who scheduled sentencing for July 26, 2023. Esposito was charged in August 2022.
Esposito and a co-conspirator, Anthony Jay Pignatello, worked together between 2012 and 2015 to conceal their control over Cannabiz Mobile, Inc. and to use backdated promissory notes to fraudulently obtain free-trading shares in the company. Among other steps taken to conceal their control, Esposito caused another individual to be installed as the company’s chairman, president, and CEO. In reality, the executive reported to Esposito. Esposito and Pignatello then arranged for a promotional campaign in October 2014 to artificially inflate the value and trading volume of Cannabiz Mobile’s stock so that they could secretly sell their shares. In total, between September 2014 and February 2015, Esposito personally sold over 1.3 million shares fraudulently obtained as part of the scheme.
Pignatello separately pleaded guilty in March 2021 to conspiracy to commit securities fraud for his role in the scheme. He is scheduled to be sentenced on Sept. 12, 2023 before U.S. District Court Judge George A. O’Toole Jr.
The charging statute for securities fraud provides a sentence of up to 20 years in prison, three years of supervised release and a fine of $5 million. The charging statute for conspiracy to commit securities fraud provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss from the offense. 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.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney James R. Drabick of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Essex County Man Convicted of Conspiracy to Commit Wire Fraud and Wire Fraud in Connection with Romance ScamRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was convicted of conspiring to commit wire fraud and wire fraud in connection with an online romance scam, U.S. Attorney Philip R. Sellinger announced today.
Mahmoud Bowler, 40, of Newark, was convicted on April 13, 2023, of one count of conspiracy to commit wire fraud and four counts of wire fraud following a four-day trial before U.S. Circuit Court Judge Joseph A. Greenaway Jr., sitting by designation to hold a District Court within the Circuit.
According to documents filed in this case and the evidence presented at trial:
From February 2015 through June 2019, Bowler and a conspirator participated in an online romance scheme. Bowler’s conspirator created a fraudulent profile on an online dating site and then pretended to strike up a romantic relationship with a woman living in Florida. In the online profile, Bowler’s conspirator falsely represented that he, and a company he owned, had been awarded multimillion-dollar oil contract. After establishing a virtual romantic relationship with the victim, the conspirator repeatedly solicited alleged loans from the victim, claiming that he could not access his own accounts because a foreign government had frozen his assets.
From April 2018 to September 2018, the victim was directed to wire money to Bowler’s bank account on four separate occasions. After receiving the funds, Bowler withdrew a portion of the funds in cash, sent money to other individuals in Ghana through a money remitter, and wired some of the money to family members in Ghana.
The conspiracy to commit wire fraud and the wire fraud counts each carry a maximum penalty of 20 years in prison. The maximum fine for each count is $250,000. Sentencing is scheduled for Aug. 15, 2023.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, under the direction of Special Agent in Charge James E. Dennehy; detectives from the New York City Police Department Intelligence and Counterterrorism Unit, under the direction of Chief Thomas Galati; detectives from the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens; and detectives from the Port Authority Police Department, under the direction of Superintendent of Police, Edward Cetnar, with the investigation leading to the conviction.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the Special Prosecutions Division and Assistant U.S. Attorney Dong Joo Lee of the Criminal Division.
Daycare CEO Sentenced to Prison, Ordered to Pay $1.3 Million Restitution for Check Kiting Scheme and Unpaid TaxesRead the Press Release
MACON, Ga. – The CEO of a Georgia-based daycare business was sentenced to prison and ordered to pay more than $1.3 million in restitution this week for conducting a check kiting and tax scheme.
Ilene Farley, 62, of Stone Mountain, Georgia, was sentenced to serve 37 months in prison to be followed by three years of supervised release and ordered to pay $514,240.89 in restitution to Bank of America and $844,091.77 in restitution to the IRS by U.S. District Marc T. Treadwell on April 12 after she previously pleaded guilty to bank fraud and failure to pay over trust fund taxes on Nov. 16. 2022. There is no parole in the federal system.
“These type of criminal schemes—whether the harm is directed to individuals or businesses—will not be ignored by this office or our law enforcement partners,” said U.S. Attorney Peter D. Leary. “We will unravel the fraud and hold wrongdoers accountable for their crimes.”
“Ilene Farley believed she had found a shortcut to put money in her pocket, and now she will pay for her criminal behavior,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Today’s guilty plea reflects the FBI’s commitment to work with our partners to bring fraudsters who steal from banks to justice.”
“Employers have a lawful duty and responsibility to withhold income taxes from their employees’ payroll check; failure to do so negatively impacts the U.S. Government and the employees,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS-Criminal Investigation is committed to finding and holding those employers engaging in employment tax evasion accountable so that American taxpayers who are entitled can enjoy the benefits of Medicare and social security.”
According to court documents, Farley was the President and Chief Executive Officer (CEO) of Tender Years Learning Corporation (TYLC). TYLC operated several daycare centers within the Middle District of Georgia and elsewhere in the state of Georgia and had a registered office at 1010 N. Houston Road, Warner Robins, Georgia. Farley handled its financial affairs. The business had several bank accounts, including with Bank of America and Citizens Trust Bank.
When a customer presents a check for deposit into an account, it can take anywhere from 24 hours to seven days for the check to clear. The time between presentment and clearing of a check is called the “float.” The term “check kiting” refers to a form of check fraud which involves taking advantage of the float—the time between presentment of a check and the actual receipt of funds—to make use of non-existent funds in a checking or other bank account. The purpose of check kiting is to falsely inflate the balance of a checking account to allow written checks that would otherwise bounce to clear.
From April 2018 until July 2019, Farley executed a check kiting scheme using the TYLC bank accounts with Bank of America and Citizens Trust Bank, sending more than $75,000,000 to banks which were unfunded amounts and were the equivalent of obtaining money from banks without secured loans. All told, 19 checks bounced during the scheme in the amount of $2,202,162.41. Bank of America ended up with a loss of $514,240.89.
In addition, Farley was required to collect, account for and pay so-called “trust fund taxes” for TYLC’s employees, which includes Social Security, Medicare and federal income taxes. Employers are required to remit these withheld trust fund taxes to the IRS on a quarterly basis. Between 2015 and 2019, Farley failed to pay the IRS $844,091.77 of the TYLC employees’ trust fund taxes which had been withheld from the employees’ paychecks. Through her guilty plea, Farley admitted that she knowingly carried out a scheme to defraud Bank of America and Citizens Trust Bank; in addition, she admitted that she did not pay her employee trust fund taxes.
The case was investigated by FBI and IRS.
Assistant U.S. Attorney Elizabeth Howard prosecuted the case for the government.
Construction Firm Owner Sentenced for Employment Tax EvasionRead the Press Release
An Iowa man was sentenced today to two years in prison for evading payment of employment taxes owed by his company.
According to court documents and statements made in court, Kevin Alexander of Sioux City owned K&L Construction, Inc. (K&L), a landscaping and construction company. Alexander was responsible for filing quarterly employment tax returns and collecting and paying to the IRS taxes withheld from employees’ wages. Between 2014 and 2017, K&L paid approximately $3.8 million in wages to its employees, of which approximately $1 million in income and Social Security and Medicare taxes was withheld. Alexander did not pay those withholdings over to the IRS. When the IRS attempted to collect K&L’s unpaid employment taxes, Alexander sought to conceal his income by submitting a form to the IRS concealing the full amount of K&L’s available assets.
In addition to the term of imprisonment, U.S. District Chief Judge Leonard T. Strand ordered Alexander to serve two years of supervised release and to pay approximately $1.7 million in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Timothy T. Duax for the Northern District of Iowa made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Meredith Havekost of the Justice Department’s Tax Division and Assistant U.S. Attorney Ron Timmons for the Northern District of Iowa prosecuted the case.
Columbia Man Who Threatened the Use of a Firearm During a Social Media Livestream Sentenced to 51 Months in Federal PrisonRead the Press Release
Columbia, SOUTH CAROLINA — Paul Burton, 27, of Columbia, was sentenced to 51 months in federal prison for Possession of a Firearm by a Felon.
Evidence obtained in the investigation revealed that on February 15, 2022, around 12:30am, Burton posted a livestream video on social media at a Columbia gas station. In the video, Burton bragged about successfully robbing a rival gang member of a gold chain, which he displayed. Additional portions of the livestream show Burton going into the gas station and threatening the rival gang member a second time by displaying the firearm and spitting in his direction in the presence of the store clerk.
Later that same day, the City of Columbia Police Department conducted a traffic stop on a car driven by Burton. Because the car smelled of marijuana, police officers conducted a search and found a loaded pistol. On February 16, 2022, members of the Midlands Gang Task Force interviewed Burton, and he admitted the same pistol in his car was the one he used during the robbery at the gas station.
Federal law prohibits Burton from possessing a firearm or ammunition based on prior convictions for Assault and Battery of a High and Aggravated Nature, Possession of a Weapon During the Commission of a Violent Crime, and Possession with Intent to Distribute Marijuana.
United States District Judge Mary Geiger Lewis sentenced Burton to 51 months in prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the City of Columbia Police Department, the Richland County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Lamar J. Fyall is prosecuting the case.
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Columbia County man sentenced to federal prison for possession of child sexual exploitation materialRead the Press Release
AUGUSTA, GA: A Columbia County man has been sentenced to nearly eight years in prison after pleading guilty to possession of child pornography.
Robert James Thompson, 35, of Grovetown, was sentenced to 90 months in prison after previously pleading guilty to Possession of Child Pornography, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also ordered Thompson to pay $8,000 in restitution to victims, to register as a sex offender, and to serve 15 years of supervised release upon completion of his prison term. There is no parole in the federal system.
“The safety of our community demands that predators like Thompson be identified and taken off the streets,” said U.S. Attorney Steinberg. “With our law enforcement partners, we will be diligent in protecting our most vulnerable citizens.”
As described in court documents and testimony, the National Center for Missing and Exploited Children shared a cybertip with the FBI indicating the online presence of multiple electronic images depicting sexual exploitation of children.
FBI agents conducted a search of Thompson’s electronic devices in July 2022 and found dozens of images of child pornography. Thompson was on felony probation for a state burglary conviction at the time of his arrest.
“Child pornography is abuse of society’s most vulnerable population. It is also a second victimization for a child who has already been traumatized,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI remains committed to protecting our children and is thankful for the law enforcement partnerships that make it possible to stop people like Thompson from victimizing anyone else.”
The case was investigated by the FBI, and prosecuted for the United States by Assistant U.S. Attorney Jeremiah L. Johnson.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
Colorado Woman and Arizona Man Plead Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – JOANNA MANZANO, age 33, a resident of Colorado, and KABIEN CORTES, age 34, a resident of Phoenix, Arizona, pled guilty on April 12, 2023 to superseding bills of information charging them each with one count of conspiracy to distribute and possess with intent to distribute a quantity of a mixture or substance containing a detectable amount of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), 841 (b)(1)(C), and 846, announced U.S. Attorney Duane A. Evans.
According to court documents, on March 16, 2020 during a DEA investigation, a drug supplier arranged the delivery of methamphetamine to the New Orleans area. On March 19, 2020, the DEA determined that a driver (MANZANO) was travelling from Phoenix, Arizona to New Orleans with the methamphetamine and would need money for expenses. The DEA also determined that the methamphetamine was in liquid form and that another individual would arrive in New Orleans at a later date to convert the liquid methamphetamine into solid form.
The investigation disclosed that MANZANO, accompanied by CORTES, traveled to New Orleans. After MANZANO and CORTES arrived in Louisiana, law enforcement officers identified their vehicle and maintained surveillance on them until they arrived in Metairie. On March 20, 2020, at approximately 11:50 p.m., Louisiana State Troopers conducted a traffic stop of MANZANO and CORTES. After obtaining consent to search the vehicle, troopers noticed that the bed-liner of the truck had been removed and was being held in place by a rubber cord. A continued search of the vehicle resulted in the discovery of approximately 4,576 grams of liquid methamphetamine in the gas tank of the vehicle.
MANZANO and CORTES each face a maximum term of imprisonment of twenty (20) years, a fine of up to $1,000,000.00, a term of supervised release of at least three (3) years, and a mandatory special assessment fee of $100.00.
This case was investigated by the Drug Enforcement Administration and the Louisiana State Police. The prosecution was handled by Assistant United States Attorney André Jones of the Narcotics Unit .
Clinton business owner admits COVID-19 relief loan fraudRead the Press Release
MISSOULA — A Clinton roofing company owner today admitted to allegations that he used a federal business loan of more than $400,000 intended for economic relief caused by the COVID-19 pandemic to instead buy personal items, including an ATV, a Harley-Davidson motorcycle and a camper, U.S. Attorney Jesse Laslovich said.
Damon Alexander Wahl, 46, pleaded guilty to wire fraud and to money laundering. Wahl faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release. Wahl also admitted to a forfeiture count and agreed to forfeit a 2021 Harley-Davidson motorcycle, a 2018 Hideout camper trailer and a 2013 Polaris RZR all-terrain vehicle.
U.S. District Judge Donald W. Molloy presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for July 26. Wahl was released pending further proceedings.
The government alleged in court documents that in July 2021, Wahl, who operates Wahls Roofing LLC in Clinton, received a $405,400 loan from the Small Business Administration’s Economic Injury Disaster Loan program (EIDL), which was authorized by the Coronavirus Aid, Relief and Economic Security Act. EIDL loans were intended to provide economic relief to small businesses and nonprofit organizations that experienced a temporary loss of revenue during the pandemic. Business owners seeking EIDL loans were required to certify under penalty of perjury that they would use the money solely for business operating expenses, such as payroll, rent and mortgage payments, utilities and business debt.
The government further alleged that in his loan application, Wahl wrote that he intended to use the money to finish his shop, buy equipment for the roofing business and pay a second crew. Instead, Wahl used at least $160,000 for personal expenses, including $13,900 for an ATV, more than $21,000 for a new Harley-Davidson motorcycle and $14,700 for a camper. When interviewed about the loan, Wahl said he knew he needed to spend the loan on his business and admitted he did not.
U.S. Attorney Jesse Laslovich and Assistant U.S. Attorney Timothy J. Racicot are prosecuting the case, which was investigated by the FBI and IRS.
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Chelmsford Dentist Pleads Guilty to Medicaid Fraud SchemeRead the Press Release
BOSTON – A Chelmsford dentist pleaded guilty yesterday to engaging in a Medicaid Fraud Scheme.
Scott Cale, 68, pleaded guilty to one count of conspiring to commit health care fraud and one count of health care fraud. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for July 20, 2023. Cale was indicted by a grand jury and arrested in January 2020 along with co-conspirator Anthony DiStefano. Charges against the DiStefano were dismissed.
DiStefano was barred from participating in the MassHealth insurance program because of significant concerns concerning the quality of dental care DiStefano delivered to patients. In order to circumvent his exclusion from the MassHealth provider network, DiStefano recruited Cale to join his practice.
From 2014 to 2018, dental services that DiStefano personally delivered were billed to MassHealth using Cale’s provider identification credentials. Cale then paid DiStefano a share of the money that MassHealth had paid Cale. The purpose of this arrangement was to deceive MassHealth into paying for dental services that were not reimbursable (because MassHealth had terminated DiStefano from the MassHealth program). As a result of this scheme, multiple MassHealth patients were harmed and received dangerously poor care from DiStefano.
The charges of health care fraud and conspiracy to commit health care fraud each provide for a sentence of up to 10 years in prison, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Andrea Joy Campbell, Attorney General for the Commonwealth of Massachusetts; and Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations made the announcement. Assistant U.S. Attorneys Evan Panich and Chris Looney of Rollins’ Healthcare Fraud Unit and Special Assistant U.S. Attorney Kevin Lownds, detailed from Campbell’s office, are prosecuting the case.
Caribou Man Faces up to 10 Years Following Guilty Plea for Illegal Possession of a FirearmRead the Press Release
BANGOR, Maine: A Caribou man pleaded guilty in U.S. District Court in Bangor today to being a felon in possession of a firearm.
According to court records, in May 2021, John Sam, 34, knowingly possessed a firearm during a traffic stop in Caribou. A 2017 Maine conviction for robbery precluded Sam from possessing firearms.
Sam faces up to 10 years in prison and a fine of up to $250,000. He also faces up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Caribou Police Department investigated the case.
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Career Offender Who Led Authorities on a High-Speed Chase on I-95 Found Guilty of Firearm and Narcotic ChargesRead the Press Release
RALEIGH, N.C. – A federal jury convicted a Wilson-based United Blood Nation gang member on charges of possession of a firearm by a felon, possess with intent to distribute cocaine and cocaine base, and possession of a firearm in furtherance of drug trafficking.
“Vick recklessly led police on a high-speed chase on a busy interstate across multiple counties in Eastern North Carolina,” said U.S. Attorney Michael Easley. “He endangered the lives of law enforcement and other drivers in his efforts to elude capture and continue his criminal activity. Now, he is facing time in a federal prison.”
According to court records and evidence presented at trial, Nazeer Vick, 32, was found in possession of a firearm and marijuana during a traffic stop in Wilson after a K9 unit detected the odor of marijuana. Vick was arrested but quickly bonded out of custody. Nearly six months later, on October 7, 2020, Nash County deputies encountered a car being driven by Vick that was driving erratically on Interstate 95, weaving in and out of traffic and reaching speeds in excess of 130 miles per hour. Vick fled from Nash County, into Wilson County and then into Johnston County where he crashed on I-95 after colliding with a transfer truck. Vick then crawled out of a window of the mangled car with a black bookbag and fled on foot to a nearby motel. Vick was captured by hotel security cameras running around the hotel attempting to open hotel room doors. He threw the bookbag into a trashcan and then hid in an electrical closet where he was later found by law enforcement. Officers recovered the discarded bookbag which contained cocaine, cocaine base, marijuana, various pills, a digital scale, a loaded firearm, and documents associated with Vick. Vick is a validated member of the United Blood Nation street gang and has a lengthy criminal history including voluntary manslaughter, selling heroin, possession with intent to sell or deliver heroin, and possession of a firearm by a felon.
He will face a mandatory minimum of five years and up to life imprisonment when sentenced during the July 24, 2023, term of court.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge James C. Dever III accepted the verdict. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Wilson Police Department, Nash County Sheriff’s Office, Johnston County Sheriff’s Office, Rocky Mount Police Department, and North Carolina State Bureau of Investigation (SBI). investigated the case and Assistant U.S. Attorneys Ashley Foxx and Robert Dodson 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. 5:20-cr-00485-D.
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Canton Man Sentenced for Online Fraud Conspiracy and Obstruction of JusticeRead the Press Release
BOSTON – A Canton man was sentenced yesterday in federal court in Boston for his involvement in romance scams and other online fraud schemes targeting individuals in the United States.
Mark Arome Okuo, 43, was sentenced by District Court Judge Leo T. Sorokin to 55 months in prison and three years of supervised release. Okuo was also ordered to pay restitution of nearly $ 1.1 million. On Jan. 27, 2023, Okuo pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud. Okuo was arrested and charged by criminal complaint in March 2021 and subsequently indicted by a federal grand jury in October 2021.
Okuo participated in a conspiracy involving romance scams and other online frauds designed to deceive victims into sending money to accounts he controlled. Criminals perpetrating romance scams create fictitious profiles on online dating or social media websites, gain the trust of potential victims and then direct those victims to transfer money under false pretenses. To further the conspiracy, Okuo used fake passports in the names of four aliases to open more than a dozen bank accounts in and around Boston to receive the proceeds of the romance scams.
Okuo received approximately $1.1 million of victims’ money in the bank accounts he controlled. He then executed large cash withdrawals from these accounts, generally structured in amounts less than $10,000, in an effort to evade detection. In text messages, Okuo called his victims “mugu,” which is a Nigerian slang word for “fools.”
As the court found at sentencing, Okuo obstructed justice after his arrest in several different ways, including by instructing a potential cooperating witness to lie to law enforcement agents.
United States Attorney Rachael S. Rollins and Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England, made the announcement today. Special assistance was provided by the Federal Bureau of Investigation, the United States Marshals Service, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Ian J. Stearns of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
California Man Sentenced for Threatening Merriam-Webster with Anti-LGBTQ ViolenceRead the Press Release
BOSTON – A California man was sentenced yesterday in federal court in Springfield, Mass. for making threats to commit anti-LGBTQ violence against Springfield-based dictionary company Merriam-Webster, Inc. and others.
Jeremy David Hanson, 34, of Rossmoor, Calif., was sentenced by U.S. District Court Judge Mark G. Mastroianni to one year and one day in prison and three years of supervised release. In September 2022, Hanson pleaded guilty to one count of interstate communication of threatening communications to commit violence against the employees of Merriam-Webster, and to another count charging the same offense, initially filed in the Eastern District of Texas, targeting the President of the University of North Texas.
As part of his plea agreement, Hanson also admitted to sending threatening communications to various corporations, politicians, and others, including the Walt Disney Co., the Governor of California, the Mayor of New York City, a New York rabbi and professors at Loyola Marymount University. Many of these threatening communications specified the race, gender, gender identity and/or sexual orientation of various persons. Hanson persisted in his communications in spite of repeated interactions with law enforcement officers.
“Hate has no place in Massachusetts. Every person has a right to live their life authentically and without fear. I hope today’s sentence will demonstrate to members of the LGBTQ+ community that this office will hold those who engage in threatening, hateful acts accountable. Mr. Hanson made numerous, anonymous hate-fueled threats of violence to intimidate and instill fear. Hateful and bigoted acts, even if only spoken like those committed by Mr. Hanson, terrorize communities and are destructive to our society,” said United States Attorney Rachael S. Rollins. “Hate motivated acts of any kind will never be tolerated in our Commonwealth and perpetrators – including those who think they can hide behind a keyboard need to know we will find you and prosecute you. Members of the public are strongly encouraged to call the 1-83-END-H8-NOW (1-833-634-8669) line if they have information about concerning or troubling incidents of hate, potential hate crimes or threats.”
“Despite repeated interactions with law enforcement directing Jeremy Hanson to stop his hateful tirades threatening violence, he continued to make them. In doing so, his bias against the LGBTQ+ community instilled real fear and safety concerns, causing Merriam-Webster to close its offices in Springfield and New York City for almost five days,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s sentence cannot undo the damage Hanson did, but it can provide some comfort in knowing that threats to life are not protected free speech but criminal acts, and the FBI and our partners will vigorously pursue those who commit them. If you are a victim or witness to similar conduct, we’d ask you to report it to us by calling 1-800-CALL-FBI or submitting a tip online at tips.fbi.gov.”
Between Oct. 2 and Oct. 8, 2021, Springfield-based Merriam-Webster, Inc. received various threatening messages and comments demonstrating bias against specific gender identities submitted through its website’s “Contact Us” page and in the comments section on its webpages that corresponded to the word entries for “Girl” and “Woman.” Authorities later identified the user as Hanson.
Specifically, on Oct. 2, 2021, Hanson used the handle “@anonYmous” to post the following comment on the dictionary’s website definition of “female.” “It is absolutely sickening that Merriam-Webster now tells blatant lies and promotes anti-science propaganda. There is no such thing as ‘gender identity.’ The imbecile who wrote this entry should be hunted down and shot.” That same day, Hanson also sent threatening messages via the website’s “Contact Us” page.
On Oct. 8, 2021, Hanson posted another threatening comment on the dictionary’s website and a threatening message via the “Contact Us” page that read: “I am going to shoot up and bomb your offices for lying and creating fake definitions in order to pander to the tranny mafia. Boys aren’t girls, and girls aren’t boys. The only good Marxist is a dead Marxist. I will assassinate your top editor. You sickening, vile tranny freaks.” As a result of the threats, Merriam-Webster temporarily closed its offices in Springfield, Mass. and New York City.
In addition, on March 3, 2022, Hanson sent a threatening email to the President of the University of North Texas. The title of the email read: “You ought to be shot in the head and have your offices set on fire for supporting child genital mutilation and transgenderism.” The body of the email read: “YOU LEFTIST FREAKS are the intolerant ones. Trannies are disgusting PERVERTS. Every single tranny freak should be gassed, along with their supporters. I will personally go to your university and start executing tyrannical leftist students and faculty who oppress conservatives. The only good Democrat is a dead Democrat.”
In August 2022, U.S. Attorney Rollins announced the creation of the “End Hate Now” hotline - 1-83-END-H8-NOW (1-833-634-8669) - for reporting hate-based incidents or potential criminal activity. Massachusetts residents and visitors are encouraged to call the hotline to report concerning or troubling incidents of hate, potential hate crimes, or concerns regarding individuals believed to be espousing the hate-filled views or actions we learn of far too often in the wake of mass shootings and/or acts of hate-based violent extremism. Callers are encouraged to leave their contact information but may remain anonymous. At this time, the hotline is available in English, Spanish, Cantonese and French.
U.S. Attorney Rollins and FBI SAC Bonavolonta made the announcement. Assistant U.S. Attorney Steven H. Breslow of Rollins’ Springfield Branch Office prosecuted the case.
Butler County man charged with distributing child porn via encrypted instant message applicationRead the Press Release
CINCINNATI – A criminal complaint charging David John Frahm, 62, of Trenton, Ohio, with distribution of child pornography alleges that he used an encrypted instant message application to pursue adults with access to minor children for the purposes of engaging in sexual acts and shared sexually explicit images of children.
Court documents allege that Frahm used the app to gain access to chat rooms where people discussed child sexual abuse and shared photos and videos depicting child sexual abuse material. During one of those visits, Frahm allegedly shared three images with an undercover Homeland Security investigator who was in the chat room.
Agents arrested Frahm on April 7. Frahm had his initial appearance before U.S. Magistrate Judge Karen L. Litkovitz on April 10 and was ordered to remain in custody pending trial. Frahm’s case was unsealed today.
Distribution of child pornography is punishable by a range of five years up to 20 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Angie Salazar, Special Agent in Charge for Homeland Security Investigations (HSI) Detroit Field Office; and the Lebanon Police Department announced the charge and the arrest. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Businessman Charged in Fraud Scheme to Conceal $38M from the IRSRead the Press Release
A federal grand jury in Salt Lake City returned an indictment, unsealed today, charging a California businessman with conspiracy to defraud the IRS, conspiracy to commit money laundering, and money laundering.
According to the indictment, from 2013 to 2020, Grigor Termendjian of Los Angeles conspired to defraud the IRS by concealing $38 million of taxable fraud proceeds, which he and others laundered through international and domestic bank accounts. The funds involved in the money laundering transactions were allegedly proceeds from a scheme orchestrated in Utah by Termendjian’s brother, Levon Termendzhyan, aka Lev Aslan Dermen; Jacob Kingston; and others.
Termendjian allegedly sought with his co-conspirators to disguise control of the $38 million by engaging in financial transactions that had no legitimate business purpose. The indictment charges that they created bogus loan agreements, falsely characterized the transfer of fraud proceeds as share purchases or investments and used shell accounts to conceal and disguise the nature, location, source, ownership, and control of the money. Some of the transactions allegedly involved withdrawing funds to purchase cashier’s checks. On one occasion, Termendjian allegedly withdrew over $41 million to purchase two cashier’s checks that he held for several months outside of the U.S. financial system.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
IRS Criminal Investigation and the Environmental Protection Agency Criminal Investigation Division are investigating the case.
Senior Litigation Counsel John E. Sullivan and Trial Attorneys Richard M. Rolwing and Erika V. Suhr of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Brothers Charged for Stealing Millions of Dollars in COVID-19 Relief FundsRead the Press Release
An indictment was unsealed today charging two Florida men for fraudulently obtaining millions of dollars in COVID-19 pandemic relief loans and advances from the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) program.
According to court documents, from March 2020 through December 2021, Carl Charles, 43, of Miramar, and his brother, Patrick Charles, 41, of Lake Worth, together with their accomplices, submitted applications to the SBA for nearly $5 million in EIDL loans, making false statements regarding the businesses’ revenues, creation dates, and number of employees. As a result of the false and fraudulent applications, the SBA disbursed over $2.5 million in loan proceeds and advances to the defendants and others.
Carl Charles is charged with four counts of wire fraud and Patrick Charles is charged with three counts of wire fraud. If convicted, they face a maximum penalty of 20 years in prison on each count.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office, Special Agent in Charge Mark H. Morini Jr. of the U.S. Treasury Inspector General for Tax Administration (TIGTA) Southern Field Division, and Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration Office of the Inspector General (SBA-OIG) Investigations Division’s Eastern Region made the announcement.
The FBI, TIGTA, and SBA-OIG are investigating the case.
Trial Attorneys Ariel Glasner and Samad Pardesi of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David Snider for the Southern District of Florida are prosecuting the case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
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 via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Bowling Green Bank Robber Sentenced to 7-Plus Years in Federal PrisonRead the Press Release
Bowling Green, KY – A Bowling Green man was sentenced yesterday to 87 months in prison followed by a 3-year term of supervised release for committing three bank robberies in the Bowling Green area.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office, and Chief Michael Delaney of the Bowling Green Police Department made the announcement.
According to court documents, Manuel G. Quiros, 60, committed three bank robberies in 2021. Quiros used a fake bomb during one robbery, brandished a handgun during another robbery, and threatened to use a gun during the third robbery. No one was injured during the robberies.
In addition to the 87-month prison sentence, the Court ordered Quiros to pay $88,810 in restitution to the banks. There is no parole in the federal system.
The case was investigated by the FBI’s Bowling Green Resident Agency and the Bowling Green Police Department.
Assistant U.S. Attorney Mark J. Yurchisin II, of the U.S. Attorney’s Bowling Green Branch Office, prosecuted the case.
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Andrew Stephen Couch Sentencing to 60 Years for Production of Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On April 13, 2023, Andrew Stephen Couch, 37, currently of Knoxville, Tennessee, was sentenced to 720 months’ imprisonment by the Honorable Katherine A. Crytzer, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the plea agreement filed with the court, Couch agreed to plead guilty to an indictment charging him with two counts of production of child pornography in violation of 18 U.S.C. § 2251(a). After his release from imprisonment, he will be on lifetime supervised release. Couch will be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release.
According to the filed plea agreement, in December 2019, after receiving a report that Couch was distributing child pornography, a search warrant was conducted at Couch’s home. Couch’s cellular phone was seized and forensically examined. Located on the cellular phone were multiple videos of child pornography produced by Couch wherein he was engaged in sexually explicit acts with a four-and-a-half-year-old female who was visiting Couch’s home. Also on the cellular phone were thousands of other images and videos of child pornography of unidentified children.
The criminal indictment was the result of an investigation by the Knoxville Police Department, Internet Crimes Against Children Unit and the U.S. Department of Homeland Security, Homeland Security Investigations.
Assistant United States Attorney Jennifer Kolman represented the United States.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit www.justice.gov/psc.
For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.”
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