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24 May 2023
Colorado City Man and 10 Members of Polygamist Sect Charged with Illicit Sexual Conduct with Minors, and Related CrimesRead the Press Release
PHOENIX, Ariz. – Samuel Rappylee Bateman, 47, of Colorado City, Arizona, along with 10 of his followers, were indicted on May 18, 2023, by a federal grand jury on charges relating to a years-long conspiracy to travel across state lines in order to amass “wives” for Bateman, including minor girls. The grand jury returned a Second Superseding Indictment, which was unsealed today, in the case of United States of America v. Samuel Rappylee Bateman, et al.
The Second Superseding Indictment alleges that Bateman, the self-proclaimed leader of a polygamist sect in Colorado City, Arizona, began amassing “wives” from among his followers in several states. In order to claim these “wives”—10 of whom were under the age of 18—Bateman travelled extensively between Nebraska, Utah, Colorado, and Arizona. Throughout the conspiracy, Bateman had sex with the minor girls on a regular basis.
Bateman was previously charged federally by Indictment in September 2022 with destruction of records in an official proceeding, tampering with an official proceeding, and destruction of records in a federal investigation.
A First Superseding Indictment was returned by the federal grand jury in December 2022, adding charges against Bateman and adding three co-conspirators—Naomi Bistline, Donnae Barlow, and Moretta Rose Johnson—on charges of tampering with an official proceeding and conspiracy to tamper with an official proceeding, as well as kidnapping and conspiracy to commit kidnapping. Among other things, all of these defendants were charged with unlawfully removing minors from the custody of the Arizona Department of Child Safety and fleeing across state lines in order to evade law enforcement. The most serious of these charges, the kidnapping counts, are punishable by up to life in prison.
The Second Superseding Indictment unsealed today realleges these prior crimes and includes additional charges against Bateman. Among other things, Bateman is charged with conspiracy to transport a minor for criminal sexual activity, conspiracy to travel across state lines to engage in illicit sexual conduct with a minor, using a means of interstate commerce to persuade or coerce a minor to engage in sexual activity, and interstate travel with intent to engage in illicit sexual conduct with a minor. The Second Superseding Indictment further alleges that a number of Bateman’s followers participated in several of these alleged crimes as co-conspirators, including defendants Josephine Barlow Bistline, Leia Bistline, Torrance Bistline, LaDell Bistline, Jr., Leilani Bistline, and Brenda Barlow.
The Second Superseding Indictment also charges Bateman with production of child pornography. It alleges that in late November 2020, Bateman coordinated group sexual activity in a hotel room in Colorado Springs, Colorado, with some of his followers, including minor girls. Bateman is alleged to have then coordinated a video call to a follower in Colorado City, Arizona, in which the video participants, including a minor, were naked. Production of child pornography carries a maximum term of 30 years in prison, with a mandatory minimum term of 15 years in prison.
The Second Superseding Indictment also charges defendant LaDell Bistline, Jr. with receiving child pornography, while a number of the defendants, including Bateman, Josephine Barlow Bistline, LaDell Bistline, Jr., Brenda Barlow, and Marona Johnson are charged with distributing obscene material to a minor.
Finally, the Second Superseding Indictment includes charges for obstructive conduct lasting into at least March 2023. Bateman is charged with witness tampering, while Josephine Barlow Bistline is charged with attempted obstruction of a criminal prosecution, making interstate threats, and cyberstalking arising out of threatening conduct toward employees of the Arizona Department of Child Safety.
An indictment is merely an allegation of criminal conduct, not evidence. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The status of the co-conspirators/defendants charged in the Second Superseding Indictment is as follows:
- Bateman remains in federal custody pending trial. He, along with defendants Naomi Bistline, Donnae Barlow, and Moretta Rose Johnson, who are also in federal custody, will have initial appearances and be arraigned on Friday, May 26, at 11:45 a.m. in Phoenix, Arizona.
- Josephine Barlow Bistline had an initial appearance Monday in federal court in Phoenix, Arizona. She also is currently detained pending trial.
- Leilani (Bistline) Barlow had an initial appearance this morning in federal court in Flagstaff, Arizona, during which she clarified that she is a Barlow and not a Bistline. She is temporarily detained pending a detention hearing on May 30, which also will be in federal court in Flagstaff, Arizona.
- LaDell Bistline, Jr., Torrance Bistline, Brenda Barlow, Leia Bistline, and Marona Johnson, were all arrested earlier this week. They will have initial appearances tomorrow, May 25, in federal court in St. George, Utah.
The Phoenix Field Office of the Federal Bureau of Investigation (FBI) is handling the investigation. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution. The United States Attorney’s Office continues to extend special gratitude to the Arizona Department of Child Safety for its work protecting Arizona children impacted by this matter, as well as the Arizona Department of Public Safety, the United States Attorney’s Office for the District of Utah; the Colorado City Police Department; the Iron County (Utah) Sheriff’s Office; the Washington County (Utah) Attorney’s Office; the Washington County (Utah) Sheriff’s Office; the U.S. Department of Homeland Security, Homeland Security Investigations in St. George, Utah; the U.S. Marshals Service in St. George, Utah; and the St. George Resident Agency of the FBI’s Salt Lake City Field Office for their assistance in this matter.
CASE NUMBER: CR-22-08092-PCT-DGC (ESW)
RELEASE NUMBER: 2023-076_Bateman, et al.# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Cocaine Trafficker Sentenced to 222 Months in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that VICENTE ESTEVES, a/k/a “El Bori,” was sentenced to 222 months in prison for being a supervisor in a conspiracy to possess with intent to distribute at least 150 kilograms of cocaine, which ESTEVES and his coconspirators hoped to import from Puerto Rico. ESTEVES was convicted on August 4, 2022 following an eight-day jury trial. Codefendants Heiver Ruiz-Patozano, Luis Gonzalez-Maldonado, and Alexander Almonte-Macea were previously sentenced for participating in the conspiracy by U.S. District Judge John G. Koeltl, who also imposed today’s sentence.
U.S. Attorney Damian Williams said: “The business of cocaine ruins lives, destroys families, and foments violence. Vicente Esteves returned to that business barely a year removed from serving a sentence for trafficking thousands of kilograms of cocaine into our communities. Today’s sentence makes clear that this Office and our law enforcement partners will work tirelessly to ensure that the business of drug trafficking does not pay for anyone—least of all kingpins like Esteves.”
According to the Superseding Indictment and the evidence at trial:
Between at least in or about September 2020 and in or about December 2020, ESTEVES belonged to a New York/New Jersey-based drug trafficking organization (“DTO”) that attempted to purchase 150 kilograms of cocaine from purported Colombian suppliers, who were in fact undercover law enforcement agents. The DTO negotiated for the delivery of the cocaine in Puerto Rico, with the delivery of the purchase money in the Bronx, New York. On the day of the exchange, December 4, 2020, ESTEVES and coconspirators arrived in the Bronx to complete the transaction with two suitcases stuffed with more than $1.3 million cash, which was intended as a payment for part of the overall 150-kilogram transaction. A third suitcase, containing more than $644,000 in additional cash, was later recovered in a stash house that ESTEVES and coconspirators met at before the transaction. During the transaction, a coconspirator described ESTEVES as “El Jefe”—that is, “the boss.”
ESTEVES participated in this conspiracy less than a year after being released on parole from a prior sentence for drug trafficking offenses. Specifically, ESTEVES previously pled guilty to being the leader of a transnational drug enterprise that trafficked thousands of kilograms of cocaine—worth hundreds of millions of dollars—into the U.S.. In connection with that prior drug trafficking conduct, ESTEVES also admitted to conspiring with his then-defense attorney to kill potential witnesses.
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Mr. Williams praised the outstanding investigative work of the Drug Enforcement Task Force, the Drug Enforcement Administration, the New York City Police Department, the New York State Police, the Office of the Special Narcotics Prosecutor, Homeland Security Investigations, the Middlesex County Prosecutor’s Office, and the Edison Police Department.
The case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Jun Xiang, Ashley Nicolas, and Frank Balsamello are in charge of the prosecution.
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Charleston Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Dillon Shane Browning, 31, of Charleston, was sentenced today to five years in prison, to be followed by three years of supervised release, for possession with intent to distribute methamphetamine.
According to court documents and statements made in court, on February 22, 2021, Browning sold approximately 13.77 grams of methamphetamine to a confidential informant at his Charleston residence. Browning admitted to that transaction and to selling approximately one-half of an ounce of methamphetamine to the confidential informant at his Charleston residence on March 12, 2021.
After the second transaction, law enforcement officers executed a search warrant at Browning’s residence and found approximately 233 grams of methamphetamine in an outbuilding. Browning admitted to possessing the methamphetamine and further admitted that he intended to sell it in the Charleston area.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Metropolitan Drug Enforcement Network Team (MDENT).
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Joshua Hanks prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-6.
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California Man Sentenced to 10 Years in Federal Prison for Trafficking Methamphetamine in California and New HampshireRead the Press Release
CONCORD – A California man was sentenced today in federal court for trafficking methamphetamine in California and New Hampshire, U.S. Attorney Jane E. Young announces.
Robert Perez, Jr., 33, formerly of Perris, California was sentenced by U.S. District Court Judge Steven J. McAuliffe to 10 years in prison and three years of supervised release. On February 8, 2023, Perez plead guilty to conspiracy to distribute methamphetamine.
“This office continues to aggressively prosecute those who traffic large quantities of narcotics into New Hampshire,” said U.S. Attorney Young. “Like fentanyl, methamphetamine is an insidiously dangerous drug, and its use directly contributes to New Hampshire’s overdose death toll. Thanks to the coordinated efforts of federal, state, and local law enforcement, we were able to bring the defendant to justice and ensure his incarceration for a lengthy period.”
Beginning in late-2020 or early 2021, Perez conspired with individuals in California and New Hampshire to ship a total of approximately 30 pounds of methamphetamine through the U.S. Postal Service from California to several individuals in New Hampshire for distribution. In August 2022, United States Drug Enforcement agents from New Hampshire travelled to Riverside, California, and arrested Perez.
“DEA stands committed to keeping highly addictive drugs like methamphetamine off the streets of New Hampshire,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. Perez accountable for his crimes but serves as a warning to those traffickers who are contributing to the drug crisis in the Granite State. This investigation demonstrates the strength of collaborative law enforcement efforts and our strong partnership with the U.S. Attorney’s Office.”
“The U.S. Postal Inspection Service aims to identify and disrupt drug traffickers across the country, more importantly, here in our community” said Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “Postal Inspectors accomplish this by focusing on illicit drug mailers and by maintaining an aggressive drug parcel-detection program. We will continue to coordinate with our law enforcement partners to dismantle drug trafficking involving the U.S. Mail.”
The United States Drug Enforcement Administration and the United States Postal Inspection Service lead the investigation. Valuable assistance was provided by the New Hampshire State Police and the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney Jennifer C. Davis.
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Bronx Man Sentenced to More Than 14 Years in Federal Prison for Fentanyl and Cocaine Trafficking OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that LEONARDO HECTOR ROSADO, 52, of the Bronx, New York, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 170 months of imprisonment, followed by five years of supervised release, for trafficking fentanyl and cocaine.
According to court documents and statements made in court, in April 2021, members of the FBI’s Bridgeport Safe Streets Task Force and Bridgeport Police Department coordinated the acquisition of a kilogram of heroin from Rosado. On April 13, 2021, Rosado drove from the Bronx to a meeting location in Bridgeport where he provided a cooperating witness with nearly a kilogram of a substance containing fentanyl, heroin and cocaine, and another small bag containing more than four grams of fentanyl. Investigators arranged another narcotics transaction and, on May 16, 2021, arrested Rosado after he drove to a location in Bridgeport with nearly three kilograms of a substance containing fentanyl, heroin, and cocaine, and an additional 983 grams of cocaine.
Rosado had also delivered a kilogram of fentanyl to the cooperating witness in 2019.
Rosado has been detained since his arrest. On February 23, 2023, a jury found him guilty of two counts of possession with intent to distribute and distribution of 400 grams or more of fentanyl, and one count of possession with intent to distribute and distribution of 500 grams or more of cocaine.
Rosado has a prior narcotics trafficking conviction. In 2010, he was sentenced in the Middle District of North Carolina to 121 months of imprisonment for possession with intent to distribute 500 grams or more of cocaine. His sentence was later reduced to 97 months of imprisonment.
This matter was investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department. The case was prosecuted by Assistant U.S. Attorneys Tara E. Levens and Daniel E. 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.
Bridgeport Man Sentenced to More Than 10 Years in Federal Prison for Role in Heroin Trafficking RingRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JONATHAN BROWN, 46, of Bridgeport, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 125 months of imprisonment, followed by five years of supervised release, for his role in a large-scale heroin trafficking ring.
According to court documents and statements made in court, Brown was a close associate of Ivan Rosario, also known as “Ghost,” who headed a Bridgeport-based heroin trafficking organization that, between approximately April 2015 and March 2017, received at least 30 kilograms of heroin that had been transported from Mexico to Bridgeport hidden inside motorcycles equipped with secret compartments. The organization then distributed the drug in the Bridgeport area. Brown, with the help of his girlfriend, a Bridgeport real estate agent, assisted Rosario in securing “stash houses” that were used by the organization to store and process narcotics. At times, he also helped package and distribute narcotics.
In October 2015, law enforcement stopped a car Wilfredo Rosado-Rodriguez was driving and seized approximately $120,000 in suspected drug proceeds that he was couriering to New York. On February 14, 2017, Jose David Silva Pestano, a Mexican national, was arrested in Nogales, Arizona, after he crossed the border on a motorcycle carrying nearly 12 kilograms of heroin in a concealed compartment.
Brown was arrested on March 3, 2017. On March 16, 2017, a grand jury in Hartford returned an indictment charging Brown, Rosario, Rosado-Rodriguez, Silva Pestano, and three other individuals with heroin trafficking and related offenses.
Following his arrest, Brown was released on a $250,000 bond. He was scheduled to plead guilty on March 5, 2018, but failed to appear for his court proceeding. Brown was located and arrested in Mexico in September 2019, and has been detained since that time.
On December 22, 2022, Brown pleaded guilty to conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
Brown’s criminal history includes a federal conviction in November 2012 for possession of ammunition by a felon. He was sentenced to 34 months of imprisonment for that offense.
Rosario, Rosado-Rodriguez, and Silva Pestano were convicted of related charges. On July 18, 2019, Rosario was sentenced to 210 months of imprisonment, on April 19, 2023, Rosado-Rodriguez was sentenced to 60 months of imprisonment, and on June 27, 2018, Silva Pestano was sentenced to 87 months of imprisonment.
This matter was investigated by the FBI’s Bridgeport Safe Streets Task Force, DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, Bridgeport Police Department and Stratford Police Department. The case was prosecuted by Assistant U.S. Attorneys Robert S. Ruff and Natasha M. Freismuth 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.
Berkeley Resident Sentenced to Prison for Employment Tax CrimesRead the Press Release
OAKLAND – Larry Kudsk was sentenced today to 12 months in prison for willfully failing to account for and pay over employment taxes announced U.S. Attorney Ismail J. Ramsey and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Darren Lian. The sentence was handed down by the Hon. Jeffrey S. White, U.S. District Judge.
Kudsk, who resides in Berkeley, pleaded guilty to the charge on August 2, 2022. According to court documents, Kudsk operated two construction businesses, Kudsk Construction Inc. and M. Gutierrez Inc. These companies served as general contractors or subcontractors on various construction projects, including some government projects. For both companies, Kudsk was responsible for filing quarterly employment tax returns and collecting and paying to the IRS employment taxes withheld from employees’ wages. Kudsk, however, did not timely file employment tax returns nor pay over tax withholdings to the IRS, for M. Gutierrez, Inc. for the four quarters of 2014 and the last three quarters of 2015, and for Kudsk Construction Inc. for all for quarters of 2016. In all, Kudsk caused a tax loss to the IRS of more than $250,000.
A federal grand jury indicted Kudsk on February 3, 2022, charging him with seven counts of willfully failing to pay over employment taxes, in violation of 26 U.S.C. § 7202. Kudsk pleaded guilty to one count.
In addition to the term of imprisonment, U.S. District Judge Jeffrey S. White ordered Kudsk to serve three years of supervised release and to pay and $244,973 in restitution to the United States. Judge White ordered Kudsk to self-surrender on August 15, 2023, to begin his prison term.
IRS-Criminal Investigation investigated the case.
Assistant U.S. Attorney Katherine Lloyd-Lovett of the U.S. Attorney’s Office for the Northern District of California and Trial Attorney Julia M. Rugg and Charles A. O’Reilly of the Justice Department’s Tax Division prosecuted the case.
Bayside State Prison Corrections Officer Sentenced to 30 Months in Prison for Violating Inmates’ Civil RightsRead the Press Release
CAMDEN, N.J. – A corrections officer at Bayside State Prison in Leesburg, New Jersey, was sentenced today to 30 months in prison for agreeing with others to physically assault inmates for actual, perceived and fabricated violations of the prison’s rules and customs in a manner that resulted in injury to the inmates.
John Makos, 42, of Millville, New Jersey, previously pleaded guilty before U.S. District Judge Karen M. Williams to conspiring with others to deprive inmates of their right not to be subjected to cruel and unusual punishment. Judge Williams imposed the sentence today in Camden federal court.
“Corrections officers are responsible for protecting the civil rights of the people in their custody,” U.S. Attorney Philip R. Sellinger of the District of New Jersey said. “Incarcerated persons may have broken the law, but equal treatment is one of our country’s founding principles, and civil rights do not cease to exist at a prison’s gates. This defendant allowed incarcerated persons under his care to be brutalized and abused his authority as a law enforcement officer. Today’s sentence is another reminder that civil rights violations by law enforcement officials will not be tolerated.”
“This jail official was complicit in a series of violent assaults on inmates, turning a blind eye as the assaults were carried out as punishment for alleged violations of prison rules,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentencing demonstrates that correctional officers who abuse their authority and violate the civil rights of inmates under their custody and control will be held accountable for their actions. The Justice Department is committed to protecting the civil rights of all people, including those held inside our jails and prisons.”
“Law enforcement officers may enforce the law, but no one is above the law,” FBI Special Agent in Charge James E. Dennehy said. “Makos failed to respect and protect the basic human dignity of the inmates in his care. Let today’s sentencing be a warning to others like Makos: the FBI protects the rights of all citizens, and your badge will not shield you from justice.”
According to documents filed in this case and statements made in court:
From at least April 2019 through December 2019, while working as a corrections officer, Makos and others at Bayside State Prison agreed to physically assault certain victim-inmates for actual and perceived violations of the prison’s rules and customs. The assaults caused physical injury and pain to the victim-inmates. These assaults took place while the victim-inmates were under Makos’ supervision and in areas of the prison’s kitchen that were out of sight of institutional surveillance cameras. For example, on Dec. 7, 2019, Makos watched and did not attempt to intervene when multiple inmates pinned a victim-inmate to the floor and, while the inmates restrained the victim-inmate, punched the victim-inmate approximately 25 times. Makos did not report this assault to his supervisors or medical personnel, despite knowing he was required to do so.
In addition to the prison term, Judge Williams sentenced Makos to three years of supervised release and fined him $10,000.
U.S. Attorney Sellinger credited special agents of the FBI Atlantic City Resident Agency, under the direction of Special Agent in Charge Dennehy in Newark, with the investigation leading to today’s sentencing. He also thanked the New Jersey Department of Corrections, under the direction of Commissioner Victoria Kuhn, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Ari B. Fontecchio and Sara Merin of the Special Prosecutions Division in Newark and Trial Attorney Shan Patel formerly of the U.S. Department of Justice’s Civil Rights Division.
Bay Area Woman Faces Federal Charges for Distributing FentanylRead the Press Release
OAKLAND – Jianna Coppedge appeared today in United States District Court to face a federal charge that she distributed fentanyl in the form of counterfeit “M30” pills, announced United States Attorney Ismail J. Ramsey and Drug Enforcement Administration (DEA) Special Agent in Charge Brian Clark. Coppedge made her initial appearance today in United States District Court in Oakland before United States Magistrate Kandis A. Westmore.
The basis for the charge was set out in a criminal complaint filed April 4, 2023, and unsealed in federal court today. The criminal complaint describes a transaction in which Coppedge, 19, of Alameda County, arranged the sale of, and then sold, “M30” pills containing fentanyl. The individual to whom the drugs were sold subsequently died of an overdose.
The complaint charges Coppedge with distribution of fentanyl, in violation of 21 U.S.C. § § 841(a)(1), (b)(1)(C). The statutory maximum for the charge is a maximum 20 years’ imprisonment, a maximum fine of $1,000,000 a maximum lifetime of supervised release, and a $100 special assessment. However, any sentence following a conviction would be imposed by a court only after considerations of the U.S. Sentencing Guidelines and the federal statue governing the imposition of a sentence, 18 U.S.C. § 3553.
The charges contained in the criminal complaint are only allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Assistant U.S. Attorney Kenneth Chambers of the Oakland Branch of the United States Attorney’s Office is prosecuting the case with the assistance of Leeya Kekona and Lance Macaraeg. The prosecution is the result of an investigation by DEA and the Dublin Police Department.
One Pill Can Kill: Beware of pills bought on the street: One Pill Can Kill. Fentanyl, a Schedule I controlled substance, is a highly potent opiate that can be diluted with cutting agents to create counterfeit pills that purport to mimic the effects of Oxycodone, Percocet, and other drugs, but can be obtained at a lower cost. However, very small variations in the amount or quality of fentanyl create huge effects on the potency of the counterfeit pills and can easily cause death. Fentanyl has now become the leading cause of drug overdose deaths in the United States. Counterfeit, fentanyl-laced pills are usually shaped and colored to resemble pills that are sold legitimately at pharmacies.
Baltimore Man Sentenced to 30 Years in Prison for Attempting to Kill A Federal WitnessRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Nicholas Preddy, age 32, Baltimore, Maryland, was sentenced yesterday by United States District Court Judge Christopher C. Conner to 30 years in federal prison for attempting to kill an individual who Preddy believed was cooperating with federal authorities.
According to United States Attorney Gerard M. Karam, Preddy’s sentencing was part of an almost seven-year investigation into murders of three individuals that occurred on June 25, 2016, on a property along Welsh Run Road in Mercersburg, Franklin County. When Pennsylvania State Police officers were called to the crime scene, they found the bodies of Wendy Ann Chaney, 39, Hagerstown, Md, Brandon Cole, 47, Fayetteville, PA, and Phillip Matthew Jackson, 36, Mercersburg, PA, in a barn on victim Jackson’s property. All were shot. The three victims had their hands zipped-tied behind their backs and had been set on fire. Jackson and Cole were shot once in the head. Chaney was shot twice, once in the back and once in the neck. Wendy Chaney and Brandon Cole were already dead when the police responded to the scene. Phillip Jackson was transported to York Hospital where he died shortly after arrival.
The evidence established that Wendy Chaney was in a relationship with Torey White and a coconspirator and had been previously assisting both with their drug distribution operations. White and co-coconspirator Kevin Coles learned that Chaney was cooperating with federal authorities and contracted for her to be murdered. Co-defendants Jerell Adgebesan and Kenyatta Corbett recruited members of a Baltimore based gang known as the Black Guerilla Family and others from Baltimore to travel to the Jackson property to kill Wendy Chaney. The killers were promised that they could take as payment $20,000 that was to be in a safe in the barn and any drugs and firearms that they could locate on the Jackson property. Once there, the killers encountered not only Wendy Chaney but also Brandon Cole and Phillip Jackson. Chaney was killed to protect the drug trafficking activities of Coles, and his co-conspirators. Jackson and Cole were murdered to prevent them from being witnesses to the crimes of violence that were committed at the Jackson property. The killers never found any money on the property but stole some drugs and firearms. Preddy went along with the killers to the Jackson property aware of the groups purpose but waited outside in a van and did not participate in the killings. In the Spring of 2017 when the investigation into the triple murders focused on all of the actors from Baltimore, Preddy and the other Baltimore defendants who participated in the killings believed that one of their co-conspirators was cooperating with federal authorities. Preddy and others attempted to kidnap and kill the individual they suspected of cooperating to protect themselves from prosecution for the triple murders. The intended victim escaped unharmed.
The following individuals were charged along with Preddy as a result of the investigation:
- Kevin Coles, age 37, of New York and Hagerstown, Maryland, was sentenced to three consecutive terms of life imprisonment for multiple crimes, including murder for hire, robbery, and drug trafficking;
- Jerell Adgebesan, age 35, of Baltimore and Hagerstown, Maryland, pled guilty in June 2022 to Hobbs Act robbery and to being an accomplice to the use of a firearm during Hobbs Act robbery. Judge Conner sentenced Adgebesan in February 2023 to life imprisonment and a consecutive 10-year term of imprisonment;
- Mark Johnson, 35, Baltimore, Maryland, pled guilty to obstructing the grand jury’s investigation and was sentenced to 110 months’ imprisonment;
- Terrance Lawson, age 31, Baltimore, sentenced to time served for attempting to intimidate a witness;
- Tyrone Armstrong, age 30, Baltimore, sentenced to time served for attempting to intimidate a witness;
- Torey White, age 32, of Waynesboro, Pennsylvania, was convicted on three counts of murdering three individuals and is awaiting sentencing;
- Devin Dickerson, age 31, Hagerstown, pleaded guilty to conspiracy to distribute heroin and crack cocaine and is awaiting sentencing;
- Kenyatta Corbett, age 38, Hagerstown, pleaded guilty to Hobbs Act robbery and to being an accomplice to the use of a firearm during Hobbs Act robbery and is awaiting sentencing;
- Michael Buck, age 30, Hagerstown, pleaded guilty to Hobbs Act robbery and to being an accomplice to the use of a firearm during Hobbs Act robbery and is awaiting sentencing;
- Johnnie Jenkins-Armstrong, age 22, Baltimore, pleaded guilty to Hobbs Act robbery and to being an accomplice to the use of a firearm during Hobbs Act robbery and is awaiting sentencing;
- Christopher Johnson, age 31, Baltimore, Maryland, pleaded guilty to multiple counts including murder for hire and is awaiting sentencing;
- Llesenia Woodard, 46, Hagerstown, Maryland, pled guilty to providing false testimony to the grand jury investigating the murders and is awaiting sentencing; and
- Yolanda Diaz, 31, Hagerstown, was indicted on multiple counts of perjury and obstruction of justice based upon her testimony at the Coles trial. Her trial is currently scheduled for May 2023.
Joshua Davis, age 30, previously pled guilty to participating in the conspiracy to locate and kill an individual believed to be cooperating with federal authorities in the investigation of the triple murders. Davis was sentenced to serve 100 months’ imprisonment.
The following federal, state and local law enforcement agencies participated in the investigation: Drug Enforcement Administration Harrisburg Resident Office; Pennsylvania State Police, Chambersburg; Pennsylvania State Police, Troop H; Franklin County Drug Task Force; Franklin County Adult Probation; Pennsylvania State Probation and Parole; Hagerstown Police Department, Criminal Investigation Division; Drug Enforcement Administration, Hagerstown Resident Office; Washington County Narcotics Task Force; Drug Enforcement Administration, Baltimore District Office, Strike Force Group 1; Maryland State Police Homicide Unit; Baltimore Police Department Narcotics, Fugitive And Homicide Units; Baltimore County Police Department Narcotics and Gang Unit; Federal Bureau of Investigation Evidence Management Unit, Quantico, VA; U.S. Marshal’s Service Harrisburg, PA and Phoenix, AZ; Franklin County District Attorney’s Office; United States Attorney’s Office, District Of Maryland; and the Washington County State’s Attorney’s Office.
Judy Fernandez, Manager of Analytic Services at LexisNexis Special Services, Inc., (LNSSI) provided expert assistance to investigators and the prosecutors in the areas of analysis, support, and the rendering of her expert opinion.
Assistant United States Attorney William A. Behe, Organized Crime Drug Enforcement Task Force, and Senior Litigation Counsel Michael Consiglio prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation identified as “Retribution for Welsh Run.” OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Armed Robber Sentenced to More Than 38 Years in Federal PrisonRead the Press Release
NEW BERN, N.C. – Frank Giles McCree, of Fairmont, was sentenced today to 457 months in prison after four armed robberies of Robeson County businesses while wearing a wig of fake dreadlocks, a Jamaican style beanie and a dark hooded sweatshirt. On August 5, 2021, McCree was found guilty following a federal trial.
McCree was convicted of 13 separate charges, including four counts of Hobbs Act Robbery, four counts of Use and Carry of a Firearm in Relation to a Crime of Violence and one count of Firearm by a Felon.
According to court documents and other information presented in court, McCree, 35, committed a series of robberies in Robeson County in June 2016. McCree robbed three different Family Dollar stores and one Dollar General store at gun point. McCree would pretend to make a purchase and would wait until the cash drawer was opened by a clerk and then would brandish a firearm. Threatening to shoot or kill the clerks, McCree would steal the entire drawer from the cash registers and demand that the clerks open the safes, from which he would also steal money. During two of the robberies, he also stole the store’s phone to make it more difficult to contact law enforcement and report the crimes.
On June 29, 2016, McCree was the passenger in a car that was pulled over for a traffic violation. The car also matched the description of the car leaving the scene of the first Family Dollar robbery. When law enforcement spoke to the driver and McCree, law enforcement noticed a dreadlock wig in the glove compartment. McCree and the driver were removed from the car. In the middle of the passenger floorboard, at McCree’s feet, was a loaded, .40 Hi-Point Firearm. Also located in the car was the distinct Jamaican style beanie identified as being worn by the robber. McCree was taken into custody following the traffic stop.
While in custody, McCree made a phone to a family member asking them to get in touch with his girlfriend to get rid of something under her bed. When law enforcement went to her home, they found a Family Dollar bag with change in it, in bank rolls consistent with how the Family Dollar gets its coins from the bank.
In an interview, McCree admitted possession of the firearm and said he had borrowed it from a friend for protection.
McCree was previously convicted on state charges. In 2007, McCree was convicted of Robbery with a Dangerous Weapon. In 2009, McCree was convicted of Robbery with a Dangerous Weapon and Attempted Common Law Robbery also in 2009.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing was concluded. U.S. District Judge Louise W. Flanagan presided over the trial and sentencing. The Bureau of Alcohol, Tobacco and Firearms, Rowland Police Department, Maxton Police Department, Robeson County Sheriff’s Office, and St. Pauls Police Department investigated the case and Assistant U.S. Attorney Charity Wilson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:17-cr-00134-FL-1.
Angelina County Man Sentenced to Federal Prison for Drug TraffickingRead the Press Release
BEAUMONT, Texas – A Diboll man has been sentenced to over 13 years in federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Gonzalo Alonso Torres, 46, pleaded guilty on July 14, 2022, to possession with intent to distribute methamphetamine and was sentenced to 162 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, in 2019, local, state, and federal law enforcement began investigating Torres’ drug trafficking activities. On Sep. 18, 2019, law enforcement was able to set up a methamphetamine purchase between Torres and another person. Torres placed the methamphetamine in a mailbox for the customer to retrieve. Officers then confiscated the drugs. In October 2019 on two separate occasions law enforcement again arranged for the purchase of methamphetamine using another person. Torres was indicted by a federal grand jury on April 6, 2022 and charged with federal drug trafficking violations.
This case was investigated by the U.S. Drug Enforcement Administration, the Texas Department of Public Safety, the Diboll Police Department, and the Angelina County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Donald S. Carter.
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Alex Murdaugh Indicted on Federal Conspiracy, Wire Fraud, Bank Fraud, and Money Laundering ChargesRead the Press Release
CHARLESTON, SOUTH CAROLINA — A federal grand jury has returned a 22-count indictment against Richard Alexander “Alex” Murdaugh, 54, of Hampton, for conspiracy to commit wire fraud and bank fraud; bank fraud; wire fraud; and money laundering.
“Trust in our legal system begins with trust in its lawyers,” said U.S. Attorney Adair F. Boroughs. “South Carolinians turn to lawyers when they are at their most vulnerable, and in our state, those who abuse the public’s trust and enrich themselves by fraud, theft, and self-dealing will be prosecuted to the fullest extent of the law. We are grateful to the FBI for their tireless work on this case and to the South Carolina Attorney General’s Office and the South Carolina Law Enforcement Division for their work to hold Alex Murdaugh, and those who enabled him, accountable in our state system. We remain committed to doing our part to further that effort in the federal system.”
Murdaugh was a personal injury attorney at a law firm in Hampton, South Carolina. The indictment alleges that Murdaugh engaged in three different schemes to obtain money and property from his personal injury clients.
In one scheme, the indictment alleges that from at least September 2005 until at least September 2021, Murdaugh devised a scheme to defraud and to obtain money by means of false pretenses. The indictment alleges that, as part of the scheme, Murdaugh routed and redirected clients’ settlement funds to personally enrich himself, including by:
- Drafting, or directing law firm employees to draft, disbursement sheets to send settlement funds to Murdaugh’s accounts without proper disclosure or client or law firm approval;
- Claiming funds held in the law firm’s trust account as attorney’s fees and directing the disbursement of those funds for his benefit;
- Claiming and collecting attorney’s fees on fake or nonexistent annuities;
- Creating fraudulent “expenses” that were never incurred on client matters and directing the disbursement of settlement funds to pay the cited costs, including claimed medical expenses, construction expenses, and airline expenses;
- Directing other attorneys with whom he was associated on client matters to disburse attorney’s fees directly to him, rather than appropriately routing the fees through the law firm; and
- Intercepting insurance proceeds intended for beneficiaries and depositing them directly into his personal account.
In a second scheme, the indictment alleges that from in or around July 2011 until at least October 2021, Murdaugh conspired with his banker, Russell Laffitte, to commit wire fraud and bank fraud. The indictment alleges that Murdaugh and his law firm asked Laffitte to serve as personal representative or conservator for numerous personal injury clients. Laffitte collected over $350,000 in fees as personal representative or conservator for Murdaugh’s personal injury clients.
As part of the scheme, the indictment alleges Murdaugh directed law firm employees to make settlement checks payable to “Palmetto State Bank.” The checks were then delivered to Laffitte, whom Murdaugh directed to use the settlement funds for Murdaugh’s benefit. The funds were used to pay off Murdaugh’s personal loans and for personal expenses and cash withdrawals.
In November 2022, Laffitte was convicted on six federal charges, including conspiracy to commit wire and bank fraud, bank fraud, and wire fraud for his role in this scheme. He is currently awaiting sentencing.
In a third scheme, the indictment alleges that in September 2015, Murdaugh created a bank account in the name of “Forge,” presenting as a legitimate corporation for structuring insurance settlements. Murdaugh was the owner of and the only authorized signer on this “fake Forge” account. The indictment alleges that from in or around May 2017 through at least July 2021, Murdaugh funneled stolen personal injury settlements through the “fake Forge” account. Murdaugh is charged with 14 counts of money laundering for using the transactions in the “fake Forge” account to conceal the proceeds of his fraud.
The indictment further alleges that, from in or around February 2018 until at least October 2020, Murdaugh conspired with a personal injury attorney in Beaufort to defraud the estate of Murdaugh’s former housekeeper and Murdaugh’s homeowner’s insurance carriers. In February 2018, Murdaugh’s housekeeper passed away after a fall at Murdaugh’s home. Murdaugh recommended that the housekeeper’s estate hire the Beaufort attorney to represent them and file a claim against Murdaugh to collect from his homeowner’s insurance policies.
Murdaugh’s insurance companies settled the estate’s claim for $505,000 and $3,800,000. The indictment alleges that Murdaugh and the personal injury attorney conspired to siphon settlement funds, disguised as “prosecution expenses,” for their own personal enrichment. The indictment further alleges that Murdaugh directed the Beaufort attorney to draft checks totaling $3,483,431.95 made payable to “Forge.” Murdaugh then deposited the checks into his “fake Forge” account and used the funds for his own personal enrichment. The estate did not receive any of the settlement funds.
Murdaugh faces the following charges:
- One count of conspiracy to commit wire fraud and bank fraud, punishable by up to 30 years in prison and a fine of up to $1,000,000;
- One count of bank fraud, punishable by up to 30 years in prison and a fine of up to $1,000,000;
- Two counts of wire fraud, punishable by up to 30 years in prison and a fine of up to $1,000,000;
- Three counts of wire fraud, punishable by up to 20 years in prison and a fine of up to $250,000;
- One count of conspiracy to commit wire fraud, punishable by up to 20 years in prison and a fine of up to $1,000,000; and
- Fourteen counts of money laundering, punishable by up to 20 years in prison and a fine of up to $500,000.
All charges in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The case was investigated by the Federal Bureau of Investigation and the South Carolina Law Enforcement Division. Assistant U.S. Attorneys Emily Limehouse, Kathleen Stoughton, and Winston Holliday are prosecuting the case.
The case against Murdaugh is No. 9:23-cr-396 (D.S.C.). The case against Laffitte is No. 9:22-cr-658 (D.S.C.).
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Albuquerque man sentenced to 7 years for illegal firearms possessionRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Arthur Quintana was sentenced to 86 months in prison. Quintana, 45, of Albuquerque, pleaded guilty on Feb. 7, 2023, to being a felon in possession of firearm and ammunition.
According to the plea agreement and other court records, on June 6, 2021, a property owner discovered Quintana and others in a trailer in Bernalillo County, New Mexico. As the property owner called 911 to report the incident, Quintana fled in a Ford Explorer. Bernalillo County Sheriff Deputies responding to the call and conducted a traffic stop as Quintana was leaving the area. Quintana told the deputies that he had two firearms and consented to a search of the vehicle. The deputies found two loaded handguns under the front passenger seat. In his plea, Quintana admitted that he knew that as a previously convicted felon and that he could not legally possess firearms or ammunition.
Upon his release from prison, Quintana will be subject to 3 years of supervised release.
The Bernalillo County Sheriff’s Office investigated this case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Alexander F. Flores prosecuted the case.
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Worcester Man Sentenced for Distributing Fentanyl and MethamphetamineRead the Press Release
BOSTON – A Worcester man was sentenced on May 17, 2023 for distributing fentanyl and methamphetamine.
Johanny Torres-Rojas, 57, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 57 months in prison and three years of supervised release. In December 2022, Torres-Rojas pleaded guilty to two counts of distribution of and possession with intent to distribute fentanyl and one count of distribution of and possession with intent to distribute methamphetamine and fentanyl.
Between November 2019 and January 2020, Torres-Rojas distributed methamphetamine, fentanyl, heroin and cocaine to a confidential source in six controlled purchases, three of which formed the basis for the charges. On Nov. 20, 2019, and on Nov. 26, 2019, Torres-Rojas distributed pills containing fentanyl and heroin to a confidential source at a store in Worcester. Later, on Jan. 13, 2020, Torres-Rojas distributed pills containing fentanyl and methamphetamine to the confidential source outside of the same store. Across the three charged purchases, Torres-Rojas distributed approximately 835 grams of pills containing methamphetamine, 102 grams of pills containing fentanyl and 30 grams of pills containing heroin.
Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Valuable assistance was provided by the Worcester Police Department. Assistant U.S. Attorneys Lucy Sun, Samuel R. Feldman and Alathea Porter of Levy’s Criminal Division prosecuted the case.
Woman Accused of $104,000 Pandemic Loan FraudRead the Press Release
ST. LOUIS – A St. Louis County, Missouri woman has been indicted in federal court and accused of fraudulently seeking and receiving pandemic-era Paycheck Protection Program loans totaling $104,000.
Camille N. Foster, 31, was indicted May 17 on three counts of bank fraud and two counts of wire fraud. The indictment was unsealed Monday. Foster is scheduled to make her first appearance in U.S. District Court in St. Louis on May 30.
The indictment says Foster devised a scheme to defraud Paycheck Protection Program lenders by submitting a series of fraudulent loan applications for three companies, Humble Hearts Home Healthcare LLC, Embellished Jewels LLC and Muse Me Boutique LLC, from May 2020 to February 2021. Those applications contained false information about company payrolls and profits and the purpose of the loans, the indictment says, as well as Foster’s false claims that she didn’t own or have common management with any other business. Humble Hearts received two $20,832 loans and Embellished Jewels received two $20,833 loans. Muse Me Boutique received one $20,833 loan.
Foster, also listed in court records as Foster-Nunley, later sought loan forgiveness, falsely claiming that a portion of each loan had been used for payroll costs, the indictment says. Instead, Foster transferred the PPP loan money to other accounts she controlled, took some out in cash, transferred some to other people and spent some on retail and restaurant purchases and cosmetic surgery, the indictment says.
The bank fraud charges are punishable by up to 30 years in prison, a $1 million fine or both. Wire fraud is punishable by up to 20 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 FBI investigated the case. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.
Wise County Meth Distributor, Who Possessed Firearms, Sentenced to over 15 YearsRead the Press Release
ABINGDON, Va. – A Wise County, Virginia man, was sentenced last week to more than 15 years in federal prison for distributing methamphetamine and illegally possessing firearms.
Justine Kyle Elliott, 33, previously pleaded guilty to conspiring to distribute and possess with the intent to distribute 500 grams or more of methamphetamine, possessing with the intent to distribute 50 grams or more of methamphetamine, and possession of a firearm by a convicted felon. Last week he was sentenced to 188 months of federal incarceration.
According to court documents, Elliott’s conviction stems from an August 2021 arrest in Coeburn, Virginia, when police responded to a report that Elliot was asleep at the wheel of a vehicle parked in a bank drive-thru. When officers searched his vehicle, they discovered a large quantity of methamphetamine and several firearms. Elliott later admitted to being involved in the distribution of methamphetamine throughout Southwest Virginia. Elliott trafficked a large quantity of crystal ice methamphetamine and cocaine into Southwest Virginia over a sixteen-month period, including more than 30 kilograms of methamphetamine, some of which was 100% pure.
United States Attorney Christopher R. Kavanaugh, Virginia Attorney General Jason Miyares, and Special Agent in Charge Craig B. Kailimai of the ATF’s Washington Division made the announcement.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Coeburn Police Department investigated the case.
Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Senior Assistant Attorney General with the Virginia Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States.
Washington drug trafficker sentenced to 11 years in prison for 11 pounds of meth seized in Glendive traffic stopRead the Press Release
BILLINGS — A Washington man who admitted to trafficking methamphetamine after law enforcement seized 11 pounds of the drug from him in a traffic stop in Glendive was sentenced today to 11 years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Charles Antonio Gray, 47, pleaded guilty in November 2022 to possession with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that on June 16, 2021, a Montana Highway Patrol trooper conducted a traffic stop in Glendive of a vehicle in which Gray was a passenger, along with two other occupants. Gray was traveling from California to North Dakota. A search of the vehicle led the trooper finding a leather bag that contained five vacuum sealed packages in the trunk. Gray claimed ownership of the bag. The meth seized weighed approximately 11.4 pounds, which is the equivalent of 41,313 doses.
Assistant U.S. Attorney Julie R. Patten prosecuted the case. The Drug Enforcement Administration, with assistance from the Montana Highway Patrol, conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Village Home Care, CEO, and Two Doctors Pay $490,000 to Resolve False Claims Act Allegations for Paying and Receiving KickbacksRead the Press Release
Village Home Care LLC (VHC), located in Ocala, Florida, has agreed to pay $225,000 to resolve allegations that it violated the False Claims Act (FCA) by paying kickbacks to two physicians in the form of sham medical director or sublease agreements in exchange for patient referrals. Joy Rodak (Rodak), VHC’s CEO and majority owner, has agreed separately to pay $105,000. Both settlements are based on financial ability to pay. In addition, the United States has reached agreements with Dr. Vishnu Reddy and Dr. Kuchakulla Reddy to pay $100,000 and $61,943.44, respectively, to resolve allegations that each accepted kickbacks from VHC in exchange for patient referrals.
On Jan. 15, 2021, the United States filed complaints in intervention in two whistleblower lawsuits brought under the FCA against VHC and Rodak alleging that they knowingly billed Medicare for home health services for patients referred to VHC by Dr. Vishnu Reddy from Nov. 15, 2012, through Nov. 14, 2014, while paying Dr. V. Reddy under sham medical director agreements. Although Dr. V. Reddy performed no services, VHC paid him $50,000 to induce him to refer patients to VHC. The United States further alleged that VHC and Rodak knowingly billed Medicare for home health services for patients referred to VHC by Dr. Kuchakulla Reddy from Dec. 1, 2012, through March 5, 2014, while paying Dr. K. Reddy, through his medical practice, under sham sublease agreements. Although VHC did not use the space, VHC paid Dr. K. Reddy $30,971.72 to induce him to refer patients to VHC.
“Paying doctors to refer patients for services paid for by federal health care programs can distort medical decision-making and result in medically unnecessary care,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The settlements in this matter demonstrate our commitment to protecting the integrity of these programs and the taxpayer dollars that support them.”
“Medicare funds should be used to provide care for our seniors, not to induce physicians to refer business,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “This office will take action against individuals who make unlawful payment to physicians in exchange for patient referrals.”
The civil settlements include the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Kasey Jacobs, James Hanes, Katherine Brooks, Karen Swain, and Barbara Mellot-Yezman, all former employees of VHC. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned U.S. ex rel. Jacobs, et al. v. Village Home Care, LLC, et al., No. 5:21-cv-00073-CEM-PRL (M.D. Fla.), and U.S. ex rel. Brooks, et al. v. Village Home Care, LLC, et al., No. 5:21-cv-00072-CEM-PRL (M.D. Fla.). The relators’ share of the settlements has not yet been determined.
The resolutions obtained in this matter were the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Middle District of Florida, and the Department of Health and Human Services Office of the Inspector General.
The matter was investigated by Senior Trial Counsel Sarah Arni and Trial Attorney Breanna Peterson of the Civil Division's Fraud Section and Assistant U.S. Attorney Sean Keefe for the Middle District of Florida.
The investigation and resolutions in this matter illustrate the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only and there has been no determination of liability.
United States Files Forfeiture Action to Recover Crypto Proceeds Traceable to Cyber Fraud SchemeRead the Press Release
BOSTON – The United States Attorney’s Office filed a civil forfeiture action to recover cryptocurrency alleged to be proceeds of a business email compromise (BEC) fraud scheme targeting a Massachusetts business.
The government seeks to forfeit cryptocurrency seized from seven accounts located at Binance, a cryptocurrency exchange and custodian. The seized cryptocurrency included bitcoin (BTC), Tether (USDT), APE (APEcoin), JASMY (an Ethereum token), OGN (Origin Protocol), SHIB (Shiba Inu), XEC (eCash), TLM and BNB (Binance coin).
In March 2022, a federal investigation began into a BEC scheme targeting a Massachusetts business that was allegedly tricked, through a fraudulent email, into wiring $898,342 from its Massachusetts bank account to a bank account opened in California. From that transfer, proceeds were traced to another bank account and then to a cryptocurrency exchange where the funds were converted to bitcoin. From there, the funds, in the form of cryptocurrency, were transferred through a series of intermediary cryptocurrency addresses, in a manner consistent with tactics employed in money laundering transactions. Ultimately, some of the funds were traced to accounts located at Binance, where they, or things of equivalent value, were seized in August and September 2022.
It is a violation of federal law to use wire communications as part of a scheme to defraud or to obtain money or property by means of false or fraudulent pretenses. The complaint alleges that the seized currency was both proceeds of the wire fraud and/or property involved in money laundering.
A civil forfeiture action allows third parties to assert claims to property, which must be resolved before the property can be forfeited to the United States and returned to victims.
Members of the public who believe they are victims of a cybercrime – including cryptocurrency scams, romance scams, investment scams, and BEC fraud scams – should contact [email protected].
Acting United States Attorney Joshua S. Levy and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The civil forfeiture action is being prosecuted by Assistant U.S. Attorney Carol E. Head, Chief of Levy’s Asset Recovery Unit.
The details contained in the civil forfeiture complaint are allegations. The United States Attorney’s Office has not filed a corresponding criminal action on the matter.
United States Attorney’s Office in the District of New Hampshire Allocated 2 Additional Federal Prosecutors in FY23 BudgetRead the Press Release
CONCORD – The U.S. Attorney’s Office was allocated 2 new attorney positions in the federal budget to address civil rights, domestic terrorism, and violent crime in New Hampshire, U.S. Attorney Jane E. Young announces.
“These new positions will allow us to focus added resources on enforcing federal laws aimed at curbing violence, domestic terrorism and civil rights violations,” said U.S. Attorney Jane E. Young. “Furthermore, it has been a priority of our office to enhance our civil rights work in various communities throughout the state, and this dedicated position is a step forward in achieving that goal.”
One attorney will be the first Assistant U.S. Attorney dedicated to promoting civil rights in the State of New Hampshire, handling both criminal and civil cases. The second hire will address domestic terrorism and other violent crimes throughout the state.
Job solicitations for the two new positions will be posted on www.usajobs.gov, expected early summer 2023.
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U.S. Attorney's Office Partners with Charlotte-Mecklenburg Schools to Host Summit for High School Students as Part of “United Against Hate” InitiativeRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that her Office partnered with Charlotte-Mecklenburg Schools (CMS) to host a youth engagement summit for high school students, as part of the U.S. Attorney’s Office “United Against Hate” (UAH) initiative.
Approximately 150 students selected from Charlotte-Mecklenburg high schools attended the summit, which was held at Queens University Sports Complex and Conference Center. The goal of the summit was to provide instruction and information to students on identifying, reporting, and preventing hate crimes and other civil rights violations; encourage students to share their experiences and exchange ideas on how to promote a positive environment within their schools; and help students develop solutions for building inclusive and equitable schools for everyone.
Dena J. King, United States Attorney“Today, we empowered our students to think as future leaders in our communities. We challenged them to understand their role as agents for change. And we dared them to dream of building a society where hate has no place. I call upon all students to find their voice and speak out against hate wherever they see it – even when it’s not directed at them. I also urge students to reject hate and to join me in making inclusion and equality our common goal and our shared responsibility.”
Over the course of the program, students were presented information by Alex Pyun, with Mecklenburg County Community Support Services; Haeley Robinson with Time Out Youth; John Coucelman with CMS; and Daniel Cervantes with the U.S. Attorney’s Office.
During the program’s interactive group sessions, students discussed their concerns about their schools’ current culture and brainstormed on ways to help support each other and their classmates in creating a better school experience. Students were also challenged to think about how they can best utilize the information they acquired to develop action plans to address the needs of their schools.
Today’s summit was part of a series of planned outreach and educational events conducted by the U.S. Attorney’s Office as part of the Justice Department’s UAH initiative, a nationwide program created to combat the rise in unlawful acts of hate.
On May 27, 2021, U.S. Attorney General Merrick B. Garland issued a memorandum on improving the Justice Department’s efforts to combat unlawful acts of hate, and emphasized the need to actively engage in outreach and educational efforts centered around hate crimes.
In the Western District of North Carolina, the UAH initiative comprises a series of events focusing on community groups at risk of being targeted in hate crimes and incidents of hate. The goal is to give participants an opportunity to directly connect with federal prosecutors and law enforcement to increase community understanding of hate crimes and hate incidents; provide a mechanism for reporting potential hate crimes and civil rights violations; build trust between law enforcement and communities; and create and strengthen alliances with government partners and community groups to combat unlawful acts of hate.
In making today’s announcement, U.S. Attorney King thanked Queens University for hosting the summit and giving the students an opportunity to gather, and Pivotal Health Solutions for providing mental health resources for the students. U.S. Attorney King also thanked Charlotte-Mecklenburg Schools, Time Out Youth, and Mecklenburg County Community Support Services for their participation and support of this important initiative.
In the coming months, the U.S. Attorney’s Office will hold additional UAH events to engage with more communities throughout the Western District of North Carolina.
Troy Man Indicted for Stealing Six Firearms from Federally Licensed DealerRead the Press Release
ALBANY, NEW YORK – Michael C. McDermott, age 30, of Troy, New York, was arraigned today on an indictment charging him with theft of six firearms from a federally licensed dealer. United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Chief Gina F. Cocchiara of the Bethlehem Police Department made the announcement.
The indictment alleges that on May 10, 2022, McDermott stole five shotguns and one rifle from the Walmart in Glenmont, New York.
The charge in the indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
Earlier today, United States Magistrate Judge Christian F. Hummel ordered McDermott detained pending a trial scheduled for July 24, 2023 before United States District Judge Anne M. Nardacci.
The charge filed against McDermott carries a maximum term of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The ATF and the Bethlehem Police Department are investigating the case. Assistant U.S. Attorney Jonathan S. Reiner is prosecuting the case.
Trafficker admits to smuggling $1.5M worth cocaine in produce boxesRead the Press Release
McALLEN, Texas – A 50-year-old Mexican resident has pleaded guilty to possession with intent to distribute 88.5 kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.
On Nov. 13, 2022, Faustino Perez Luna was driving a tractor trailer loaded with cocaine. The drugs were the priority load of a known drug trafficking organization.
Luna approached the Falfurrias checkpoint and claimed to be headed to Atlanta to drop a load of produce. However, a K-9 soon alerted to the presence of narcotics within the vehicle. Authorities referred him to secondary inspection where they discovered the cocaine concealed between produce boxes on the tractor trailer.
The drugs weighed approximately 88.5 kilograms with an estimated street value of $1.5 million.
From March 2022 to Nov. 13, 2022, law enforcement arrested several others in connection with this drug trafficking organization. It operated in the lower Rio Grande Valley transporting either narcotics, guns or money.
The investigation led to the discovery of the priority load – the 88.5 kilograms Luna had transported. It was intended for Atlanta, Georgia.
U.S. District Judge Randy Crane will impose sentencing for Luna Aug. 10. At that time, Luna faces up to life in federal prison and a possible $10 million maximum fine.
Luna has been and will remain in custody pending sentencing.
Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Eric D. Flores is prosecuting the case.
Tishomingo Resident Sentenced for Murder in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Cory Dean Boykin, age 35, of Tishomingo, Oklahoma, was sentenced to 262 months in prison for Murder in Indian Country, Second Degree.
The charges arose from investigations by the Johnston County Sheriff’s Department, the Tishomingo Police Department, and the Federal Bureau of Investigation.
On November 21, 2020, Boykin beat and choked a female victim at a residence in Tishomingo, Oklahoma. Upon arrival at the crime scene, law enforcement discovered the victim unconscious. Emergency medical responders transported the victim to a local hospital where she died the following day. Boykin was later arrested and admitted to assaulting and strangling the victim.
On March 9, 2021, Boykin pleaded guilty to Murder in Indian Country, Second Degree.
“A senseless and brutal act of violence claimed the life of a vibrant young woman, and while the sentence imposed today represents justice under the law, the harm can never be undone,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “I am grateful for the efforts of the investigators and prosecutors in this case to ensure the defendant will remain safely away from the public for many years to come.”
“The defendant’s callous and egregious acts warranted the lengthy prison term recommended by the United States and imposed by the Court,” said United States Attorney Christopher J. Wilson. “Although the sentence will never fully bring justice to the family, hopefully they can begin the healing process knowing the defendant is being held accountable for his crimes.”
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted this case because the defendant is a member of a federally recognized Indian tribe and the crimes occurred in Johnston County, within the boundaries of the Chickasaw Nation Reservation and the Eastern District of Oklahoma.
The Honorable Ronald White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing in Muskogee. Boykin will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Jason Poe represented the United States.
Sudbury Man Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A Sudbury man pleaded guilty on May 17, 2023 to child pornography charges.
Tyson Tu, 50, pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography. U.S. District Court Judge Denise J. Casper scheduled sentencing for Aug. 9, 2023. Tu was indicted by a federal grand jury in October 2021.
In May 2020, Tu was identified as the subscriber of an IP address downloading child pornography from a peer-to-peer file sharing network. During a search of Tu’s residence on April 13, 2021, multiple electronic devices were seized – one of which was actively downloading and sharing child pornographic files at the time. Three of the seized devices were found to contain child pornography files. It was determined that between approximately Feb. 20, 2021 through April 13, 2021, Tu received child pornography.
The charge of receipt of child pornography provides for a sentence of at least five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England; and Sudbury Police Chief Scott Nix made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Levy’s Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Statement from U.S. Attorney Shier Regarding Monday’s IncidentsRead the Press Release
The U.S. Attorney’s Office for the Eastern District of Kentucky is aware of the Scott County shooting incident involving law enforcement and the related incidents in Fayette County that occurred yesterday afternoon. As the investigation of these incidents progresses, we stand with our local and state law enforcement partners. We are offering our support and federal resources to assist in the investigation. Our thoughts are with everyone impacted by these tragic events, especially the family members, friends, and colleagues of Deputy Caleb Conley and those injured during the incidents.
Springfield Man Pleads Guilty to Charges Related to Catalytic Converter Thefts and Money LaunderingRead the Press Release
BOSTON – A Springfield man pleaded guilty on May 17, 2023 in federal court in Boston to charges related to the theft and transportation of stolen catalytic converters and the sale of stolen catalytic converters to core buyers in other states.
Jose Torres, a/k/a “Goldy,” a/k/a “Goldy Tech,” 37, pleaded guilty to an indictment charging him with conspiracy transport stolen property in interstate commerce, interstate transportation of stolen property, and conspiracy commit money laundering. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Sept. 6, 2023.
Torres and six other men were arrested on April 12, 2023, and charged with offenses related to the theft, transportation, and sale of stolen catalytic converters taken from over 470 vehicles during 2022 and 2023.
Catalytic converters are a component of a vehicle’s exhaust device that reduce the toxic gas and pollutants from a vehicle's internal combustion engine into safe emissions by catalyzing a redox reaction process. They are required components on all combustion engine automobiles in the United States as regulated by the Environmental Protection Agency (EPA). Catalytic converters use precious metals in their center or “core” and are regularly targeted for theft due to the high value of these metals – including palladium, platinum, and rhodium. Some of these precious metals are more valuable per ounce than gold and their value has been increasing in recent years, with black-market prices being more than $1,000 each.
Catalytic converter theft has become a nationwide problem across a multitude of state, local, and federal jurisdictions. Catalytic converters thieves, sometimes referred to as “cutters,” conduct searches in residential neighborhoods, parking lots, and other locations to steal the most high-value catalytic converters. Located in a vehicle’s undercarriage, the theft of a vehicle's catalytic converter results in damage that renders the vehicle inoperable – both mechanically and legally under EPA regulations – until properly replaced.
According to the charging documents, law enforcement throughout Massachusetts and New Hampshire identified a large number of catalytic converter thefts for which a Maroon Acura was identified as having been involved. These incidents involved at least two suspects wearing dark clothing, who would target residential and commercial vehicles. The suspects were skilled and able to locate and cut away the catalytic converter from a vehicle within a minute in most instances, using battery operated power-tools, specifically a fast-cutting reciprocating saw. Some vehicles needed to be jacked up in order to access the catalytic converters and the suspects would promptly place the jack under the vehicle, raise it, cut the catalytic converter, stow it in the rear of the Maroon Acura and move on.According to the charging documents, the investigation revealed that the Maroon Acura belonged to Rafael Davila, allegedly the theft crew leader who planned and participated in each of the thefts. It is further alleged that Rafael Davila engaged in catalytic converter thefts and burglaries on a full-time basis, committing these multiple nights per week for upwards of eight hours a night. Additionally, cell phone data allegedly revealed that Rafael Davila maintained meticulous notes accounting for the locations that he and his co-conspirators had targeted and the number of catalytic converters that had been stolen, including the makes and models, and when they were dropped off.
It is alleged that Rafael Davila would undertake the thefts with a group of individuals, including his brother Nicolas Davila, Fonseca, Feliberty and Marshall. As leader of the crew, Rafael Davila was allegedly responsible for the planning of and transportation to each targeted theft – utilizing his vehicle, determining price values for stolen converters and purchasing needed materials. Specifically, it is alleged that Rafael Davila regularly purchased large quantities of bi-metal saw blades designed to be used with a reciprocating power saw as well as cut resistant gloves which, according to surveillance footage, appear identical to those worn by the thieves
Surveillance footage, communications and location monitoring data obtained from the defendants’ cell phones and Davila’s vehicle identified that the defendants were allegedly involved in the theft of catalytic converters from at least 471 vehicles across Massachusetts and New Hampshire in 2022 and 2023 alone. It is believed that a significant number of additional thefts have not been identified or were not ever reported to law enforcement. It is alleged that, on numerous occasions, the defendants targeted more than 10 vehicles in a single night, with one night reporting thefts from 26 vehicles.
Once in possession of the stolen catalytic converters, the crew would then allegedly sell them to Torres. It is alleged that Torres who would accumulate stolen catalytic converters from multiple theft crews and then in turn sell them to scrap dealers in the Northeast. In particular, Torres sold stolen catalytic converters to scrap dealers who have since been charged federally for interstate transportation of stolen property and money laundering, including Alexander Kolitsas and Downpipe Depot charged in the District of Connecticut, as well as DG Auto, a New Jersey based company charged in the Eastern District of California and Northern District of Oklahoma. Torres transacted approximately $30,000 to $80,000 in stolen catalytic converters per week to these entities.
Through use of digital pricing applications, and communication with the core buyers, Torres allegedly provided prices to Davila and other theft crews based of the make and model of the vehicle and by the code on the catalytic converter. Knowing the prices of the most valuable converters, Davila and his crew would seek out those makes and models to target. Torres then negotiated with the core buyer and delivered the catalytic converters to their facility. Torres is known to have sold and transported thousands of stolen catalytic converters to scrap dealers in Connecticut, Rhode Island, New York and New Jersey areas.
The charge of conspiracy to transport stolen property in interstate commerce 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. The charge of interstate transportation of stolen property provides for a sentence of up to 10 years, up to three years of supervised release and a fine of up to $250,000. The charge of conspiracy to commit bank theft 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. The charge of bank theft provides for a sentence of up to 10 years, up to three years of supervised release and a fine of up to $250,000. The charge of conspiracy to commit money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $500,000 or twice the value of the proceeds, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; John E. Mawn, Interim Colonel of the Massachusetts State Police; and Kevin Gallagher, Director of Operations for the National Insurance Crime Bureau, Northeast Region made the announcement today. Valuable assistance was also provided by the United States Attorney’s Offices for the District of Connecticut, the Northern District of Oklahoma and the Eastern District of California; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the New England State Police Information Network (NESPIN). Assistant U.S. Attorney Philip A. Mallard of Levy’s Organized Crime & Gang Unit is prosecuting the case.
Over 70 local police departments in Massachusetts, New Hampshire and Connecticut contributed to this investigation through the submission of their investigations of catalytic converter thefts in their jurisdiction. The Massachusetts Police Departments contributing to the investigation were Abington, Acton, Andover, Auburn, Bedford, Bellingham, Beverly, Billerica, Burlington, Bridgewater, Canton, Carver, Chelmsford, Concord, Cranston, East Hampton, Easton, Fitchburg, Framingham, Franklin, Gardner, Hampton, Hanover, Haverhill, Hingham, Holliston, Holyoke, Hudson, Ipswich, Lawrence, Leominster, Lynn, Malden, Mansfield, Medford, Marlborough, Methuen, Middleton, Milford, Millbury, Needham, Newton, Northborough, Norwell, Norwood, Peabody, Pembroke, Plymouth, Randolph, Rockland, Sharon, Shrewsbury, Springfield, Sterling, Sturbridge, Sudbury, Tyngsborough, Walpole, Waltham, Watertown, West Bridgewater, Weymouth, Wilmington, Woburn and Worcester. The New Hampshire Police Departments contributing to the investigation were Bow, Concord, Derry, Hooksett, Hudson, Londonderry, Manchester, Salem and Windham. The South Windsor and Windsor Connecticut Police Departments also contributed to the investigation.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
South Carolina Return Preparer Pleads Guilty to Tax FraudRead the Press Release
A Columbia, South Carolina, return preparer and regional manager of multiple tax preparation business locations pleaded guilty today to conspiracy to defraud the United States by preparing and filing false tax returns.
According to court documents and statements made in court, Georgina Gonzalez, formerly of Miami, Florida, worked as a tax return preparer since at least 2013. For the 2016 and 2017 tax filing seasons, Gonzalez temporarily relocated from Florida to South Carolina to prepare tax returns and manage multiple locations of a tax preparation business located in Columbia, South Carolina. At these offices, Gonzalez conspired with others to inflate client refunds by preparing returns that falsely claimed, among other things, business losses, household help income, and American Opportunity and education tax credits. Gonzalez and her co-conspirators charged clients up to $999 for preparing each return. In total, Gonzalez caused a tax loss to the IRS of more than $420,000.
Gonzalez is scheduled to be sentenced at a later date and faces a maximum sentence of five years in prison, as well as a period of supervised release, restitution, and other monetary penalties. U.S. District Judge Mary Geiger Lewis will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Adair F. Boroughs for the District of South Carolina made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Ashley Stein, Francesca Bartolomey, and Jessica Kraft of the Justice Department’s Tax Division and Assistant U.S. Attorney Winston Holliday of the District of South Carolina are prosecuting the case.
Six Individuals Indicted and Arrested for Pandemic Unemployment Assistance (PUA) Fraud and the Misuse of Social Security NumbersRead the Press Release
SAN JUAN, P.R. – On May 17, 2023, a Federal Grand Jury in the District of Puerto Rico returned six separate indictments charging six individuals with engaging in fraud to obtainPandemic Unemployment Assistance (PUA) benefits totaling $350,616, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. Various federal agencies were involved in the investigations, including the United States Postal Inspection Service (USPIS), the Social Security Administration Office of the Inspector General (SSA OIG), and the Federal Bureau of Investigation (FBI), with the assistance of the United States Department of Labor Office of Inspector General (USDOL-OIG), the Puerto Rico Department of Labor and Human Resources, and the Puerto Rico Police Bureau.
According to the indictments, the defendants engaged in schemes to defraud the Puerto Rico Department of Labor and Human Resources (Departamento del Trabajo y Recursos Humanos, “DTRH”) by submitting fraudulent applications to obtain unemployment insurance benefits which contained PUA funds.
The defendants charged are: (1) Roberto J. Hernández Rivera, who fraudulently obtained $103,422; (2) Jeremy Sánchez Rivera, who fraudulently obtained $87,972; (3) Axel J. Pagán Rodríguez, who fraudulently obtained $86,772; (4) Ednier Torres-Burgos, who fraudulently obtained $34,956; (5) Eli Eteniel Correa Fernández, who fraudulently obtained $19,380; and (6) Nomar J. Mimbs Machiavelo, who fraudulently obtained $18,114.
“As our COVID-19 fraud prosecutions demonstrate, we continue to investigate these cases. Those who seek to make “easy” money by stealing federal funds from the government should take heed that there are consequences to your actions,” said U.S. Attorney Muldrow.
“Operation Chango emphasizes the importance of collaborative efforts between the U.S. Postal Inspection Service and our federal and state partners, reinforcing the U.S. Postal Inspection Service’s mission of protecting the public and preventing the criminal misuse of our mail system.” said Miami Division Postal Inspector in Charge Juan A. Vargas.
“This violation is not new. At this point, it is common knowledge that many thought they could take advantage of a global crisis and make additional income by breaking the law. This was never the case, it isn’t the case now and it will never be the case,” said Special Agent in Charge of the FBI San Juan Field Office, Joseph González. “No matter how long it takes, the FBI and our state and federal partners, will continue to investigate these cases to bring these criminals to Justice. So if you, or anyone you know has been a witness to this crime, you should report it by calling (787) 987-6500 or leaving a tip online by visiting tips.FBI.gov. To those who know they’ve broken the law, it’s best you reach out to us before we reach out to you.”
Under the provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, persons who were business owners, self-employed workers, independent contractors, or gig workers qualified for federal benefits administered by the DTRH if they previously performed such work in Puerto Rico and were unemployed, partially unemployed, unable to work, or unavailable to work due to a COVID-19 related reason. To obtain these federal benefits, individuals could apply online through the DTRH’s web site—www.trabajo.pr.gov. Claimants answered various questions to establish their eligibility and were required to provide personal identifying information, which included their name, mailing address, gender, email, phone number, social security number, and date of birth. Moreover, claimants had to identify a qualifying occupational status and COVID-19 related reason for being out of work. In their application, claimants could also submit several documents as evidence of their income.
If the DTRH approved a claimant’s application, the DTRH would send a check to the claimant via the United States Postal Service for qualified benefits which could contain regular unemployment insurance benefits and federal funds in the form of PUA, Federal Pandemic Unemployment Compensation, and Pandemic Emergency Unemployment Compensation benefits.
The indictments charge the six individuals with theft of government money in PUA benefits, mail fraud and the misuse of Social Security numbers. The defendants engaged in deceptive conduct designed to fraudulently obtain multiple unemployment checks via mail from the DTRH by using false social security numbers.
Special Assistant U.S. Attorneys Vanessa D. Bonano Rodríguez and R. Vance Eaton are in charge of the prosecution of these cases. If convicted, the defendants are facing the following sentences: 20 years of imprisonment for mail fraud and 10 years of imprisonment for theft of government money; a fine of up to $250,000; and three years of supervised release.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
The indictments contain only charges and are not evidence of guilt. The defendants are presumed to be innocent unless and until proven guilty.
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Shreveport Man Sentenced to Federal Prison for Illegal Possession of FirearmsRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that Fredarius D. Jackson, 25, of Shreveport, Louisiana, was sentenced today by United States District Judge Elizabeth E. Foote for being a convicted felon in possession of firearms. Jackson was sentenced to 60 months in prison, followed by 3 years of supervised release.
On May 29, 2021, Jackson was arrested outside of a residence on Dove Street in Shreveport by officers with the Shreveport Police Department. During his arrest, officers found Jackson to be in possession of a Taurus 9mm pistol, a TNW Firearms ASR rifle with a 50-round drum magazine and other ammunition. At the time of Jackson’s arrest, he was serving a period of state probation for a felony offense and knew he was prohibited from possessing any firearm or ammunition. Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) examined and tested the firearms and found them to be operational.
The case was investigated by the ATF and Shreveport Police Department and prosecuted by Assistant U.S. Attorney Michael T. Shannon.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Serial Bank Robber Sentenced to 10 Years in PrisonRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston for the April 2020 robbery of a Santander Bank branch in Boston.
Dennis C. Taylor, 49, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 10 years in prison and three years of supervised release. On March 11, 2022 Taylor pleaded guilty to one count of bank robbery.
On April 29, 2020, an individual – later determined to be Taylor – dressed in a dark hooded jacket, blue latex gloves and a facemask entered a Santander Bank branch on Massachusetts Avenue in Boston where he approached a teller and demanded money. The teller handed Taylor cash from her drawer, which he placed in a white plastic bag before exiting the bank. Included within the cash was a red dye pack. Surveillance cameras on Massachusetts Avenue captured video of Taylor exiting the area and running towards a local parking garage as the red dye pack exploded into a plume of red smoke. During a subsequent search of the parking garage, law enforcement recovered a white plastic bag containing red dye-stained money and a pair of blue latex gloves. The gloves were found to match Taylor’s DNA profile.Taylor was previously convicted of federal bank robbery in 2004 and again in 2010. In 2010, Taylor was sentenced to 10 years in prison and three years of supervised release for the December 2009 robberies of a Rockland Trust bank and a TD Bank in Yarmouth.
Acting United States Attorney Joshua S. Levy; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Commissioner Michael Cox made the announcement today. Assistant U.S. Attorney Luke A. Goldworm of Levy’s Major Crimes Unit prosecuted the case.Seattle man who defrauded relief programs of more than $1 million sentenced to 8+ years in prisonRead the Press Release
Seattle – A former Seattle resident who defrauded federal COVID-19 benefit programs of more than $1 million was sentenced today to 100 months in prison for wire fraud and aggravated identity theft, announced U.S. Attorney Nick Brown. Bryan Alan Sparks, 42, was indicted for the fraud scheme in November 2021 and pleaded guilty January 20,2023. At the sentencing hearing, U.S. District Judge James L. Robart said, Sparks was “a serial thief and a fraudster – one of the more successful ones…. I am appalled by the damage Mr. Sparks has done.”
“People such as Mr. Sparks took advantage of the public and our government at the height of a crisis, and I’m glad to see him held accountable for the damage he caused,” said U.S. Attorney Nick Brown. “The harm goes beyond depleting government funds – his use of other people’s identities has damaged the victims and will continue to cause problems for them into the future.”
According to records filed in the case, from March 2020 until at least January 2021, Sparks and a coconspirator used stolen personal information of more than 50 Washington residents and businesses to apply for Economic Injury Disaster Loans (EIDL) from the Small Business Administration (SBA) and unemployment benefits from the Washington Employment Security Department (ESD). Sparks and his coconspirator obtained approximately $521,900 from SBA and $519,700 from ESD. Sparks opened fraudulent bank accounts to receive the benefits and had unemployment benefit debit cards mailed to a variety of addresses in the Seattle area where he could retrieve them. In all, Sparks attempted to obtain at least $1.98 million in federally funded payments.
Sparks used the identities of real people and, in some instances, actual small businesses to open bank and credit accounts. The victims suffered significant harm. One person saw his credit score drop 200 points because of the seven credit and bank accounts opened in his name. The victim’s impact statement stated that the financial toll of Sparks’ crimes included being unable to execute his plan to start a business and invest in real estate. He believes that these consequences will be lasting for “years to come.”
Another victim wrote about spending hours on the phone with law enforcement reporting the identity theft. “This fraud has changed me and will always cause me to have concern for my safety and for my family’s safety . . . This is something that I would never want anyone else to have to deal with. It is not a good feeling, and this is how it will be.”
In September 2020, law enforcement linked Sparks to lock boxes seized in Portland, Oregon. When the safes were searched, officers seized more than $65,000 in cash and a number of debit cards.
Assistant United States Attorney Cindy Chang wrote in her sentencing memo, “During a nine-month period, despite multiple encounters and seizures by law enforcement in multiple states, Sparks possessed at least 46 cell phones, 14 laptops, multiple credit card skimmers, countless bank and identification cards in identities other than Sparks…, and various other sophisticated devices used for identity theft.”
In all, Sparks was ordered to pay $1,041,661 in restitution to the government programs. He will be on supervised release for five years following the prison term.
“Bryan Sparks caused substantial harm to individuals by stealing their identities and misusing Social Security numbers,” said Gail Ennis, Inspector General for the Social Security Administration. “This sentence of 100 months holds Sparks accountable for his actions. I thank our law enforcement partners for their invaluable work on this case and the U.S. Attorney’s Office for prosecuting this case.”
The investigation of this case is led by the Social Security Administration, Office of the Inspector General (SSA-OIG) and U.S. Postal Inspection Service, with partners: Colusa County Sheriff’s Office (CA); Washington State Employment Security Department; Small Business Administration, Office of the Inspector General; Amtrak Police Department (D.C.); FBI (Sacramento, CA office); FBI Cyber Task Force (D.C.); Washington State Department of Licensing, Driver and Vehicle Investigations; and the Department of Labor, Office of the Inspector General.
The case is being prosecuted by Assistant United States Attorneys Cindy Chang and Seth Wilkinson.
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.
Schenectady Felon Sentenced for Firearms PossessionRead the Press Release
ALBANY, NEW YORK – Larry Peterkin, age 46, of Schenectady, New York, was sentenced yesterday to 46 months in prison for the unlawful possession of a firearm. United States Attorney Carla B. Freedman and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement.
Peterkin admitted that on November 14, 2021, he possessed a 9mm Springfield Armory pistol and a .25 caliber Raven Arms MP25 pistol with a partially obliterated serial number, while driving in Rotterdam, New York. At the time, Peterkin had several prior felony convictions, including for second-degree manslaughter; third-degree criminal possession of a weapon; and assault and battery of a high and aggravated nature. Under federal law, those convictions prevented Peterkin from lawfully possessing the firearms.
Chief United States District Judge Brenda K. Sannes also ordered Peterkin to serve a 3-year term of supervised release when he is released from prison.
ATF and the Rotterdam Police Department investigated this case, and Assistant U.S. Attorney Dustin Segovia prosecuted this case.
San Pedro Woman Sentenced to Prison for Orchestrating Scheme that Defrauded Union’s Health Plan by Providing Sexual ServicesRead the Press Release
LOS ANGELES – A San Pedro woman was sentenced today to more than two years in prison for her role in a $2.1 health care fraud scheme that submitted bills to a labor union’s health insurance plan for physical therapy, when in fact the patients received sexual services that she arranged.
Sara Victoria, 46, was sentenced by United States District Judge Stanley Blumenfeld Jr. to 27 months in federal prison and ordered to pay $551,810 in restitution.
At the sentencing hearing, Judge Blumenfeld described Victoria as the “mastermind” of a “sophisticated” and “unique” fraudulent scheme.
Victoria pleaded guilty in December to federal charges of conspiracy and aggravated identity theft. According to her plea agreement, from January 2017 to April 2021, Victoria owned and operated businesses in San Pedro and Wilmington that offered patients chiropractic services and acupuncture treatments, in addition to sexual services.
Victoria knew that dock workers and others involved in the shipping industry in Long Beach had health insurance under the International Longshore and Warehouse Union – Pacific Maritime Association (ILWU-PMA) benefit plan. This plan generally covered all chiropractic services with no deductible and without requiring plan members to contribute any copay amount or out-of-pocket services.
Victoria hired women to provide sexual services to dock workers at her companies and recruited them through referrals and from strip clubs in the Long Beach area. In exchange for obtaining sexual services for themselves and their friends, ILWU-PMA plan members authorized Victoria to submit false claims for reimbursement for services such as chiropractic treatments and physical therapy – services not actually rendered – using their names or the names of their family members. Victoria also agreed to pay ILWU-PMA plan members cash kickbacks in exchange for authorization to submit false claims for reimbursement for services not actually rendered.
Victoria also admitted to using someone else’s identity without the person’s consent during the commission of the health care fraud scheme.
In total, Victoria submitted approximately $2,110,920 in claims to the ILWU-PMA plan, and the plan paid approximately $551,810.
The FBI and the United States Department of Labor – Employee Benefits Security Administration investigated this matter.
Assistant United States Attorney Jason C. Pang of the Major Frauds Section prosecuted this case.
San Antonio Veterinarian to Pay $85,000 in Civil Penalties for Alleged Violations of the Controlled Substances ActRead the Press Release
SAN ANTONIO – Tracy S. Tommack, DVM, a veterinarian located in San Antonio, has agreed to pay $85,000 to settle a lawsuit filed by the United States in October 2022.
The United States’ complaint alleges that Tommack failed to comply with the prescription-writing and recordkeeping requirements of the Controlled Substances Act (CSA). These requirements are intended to prevent the diversion of controlled substances for illegal purposes.
During a November 2020 inspection of Tommack’s clinic, Traveling Tails Veterinary Clinic, Drug Enforcement Administration diversion investigators identified at least 30 controlled substance prescriptions Tommack issued to fictitious patients between November 2017 and May 2019. Tommack issued the fabricated controlled substance prescriptions for the purpose of obtaining a stock supply of controlled substances for general dispensing to her patients, a practice explicitly prohibited by the CSA and its corresponding regulations. DEA investigators also uncovered numerous recordkeeping violations, including significant discrepancies in Tommack’s inventory of controlled substances and failure to provide written notification to the DEA regarding an incident in which Tommack’s practice experienced a significant loss of controlled substances.
“Compliance with the CSA’s prescription-writing and recordkeeping requirements is essential in ensuring that opioids and other addictive drugs are not diverted and abused,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “With the help of our partners, my office will continue to prioritize enforcement of this vital statute using all available tools at our disposal.”
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Texas and the Drug Enforcement Administration’s Diversion Control Unit.
Assistant U.S. Attorney Samuel M. Shapiro filed the lawsuit and negotiated the settlement on behalf of the government.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Rome Man Pleads Guilty to Possessing with the Intent to Distribute FentanylRead the Press Release
SYRACUSE, NEW YORK –Harry Rodriguez, Jr., age 43, of Rome, New York, pled guilty today to possessing with intent to distribute fentanyl, announced United States Attorney Carla Freedman; Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division and Thomas Fattorusso, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office.
In pleading guilty, Rodriguez, Jr. admitted that on July 21, 2021, he purchased approximately 36 grams of fentanyl for redistribution. He also admitted that on September 14, 2021, he purchased approximately 50 grams of fentanyl for redistribution.
Sentencing is scheduled for October 11, 2023, before United States District Judge David N. Hurd. Rodriguez faces a maximum term of imprisonment of 20 years, a fine of up to $1 million, and a term of supervised release of at least 3 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the U.S. Drug Enforcement Administration (DEA), the Internal Revenue Service-Criminal Investigations (IRS-CI), the New York State Police, the Oneida County Sheriff’s Office, the Oneida County District Attorney’s Office, the Utica Police Department, the Syracuse Police Department, the Rome Police Department, U.S. Homeland Security Investigations (HSI), United States Immigration and Customs Enforcement and Removal Operations (ICE-ERO), the Onondaga County Sheriff’s Office, the Onondaga County District Attorney’s Office, the New York Army National Guard Counter Drug Program, the Yorkville Police Department, the Whitesboro Police Department, and is being prosecuted by Assistant U.S. Attorney Tamara Thomson.
Rhode Island Man Sentenced on Felony Charge for Actions During Jan. 6 Capitol BreachRead the Press Release
Press release issued by the United States Attorney's Office for the District of Columbia
WASHINGTON - A Rhode Island man was sentenced today on a felony charge for his actions during the breach of the U.S. Capitol on Jan. 6, 2021. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.
Bernard Joseph Sirr, 47, of North Kingstown, Rhode Island, was sentenced to two months in prison, followed by 12 months of probation with six months of home confinement, and restitution of $2,000 for assaulting resisting, or impeding law enforcement officers and obstruction of an official proceeding. He pleaded guilty on January 27, 2023 in the District of Columbia.
According to court documents, on Jan. 6, Sirr was among rioters who illegally entered the Capitol grounds. He joined a line of rioters that was engaged in a confrontation with law enforcement officers in the tunnel area of the Lower West Terrace. At approximately 3:08 p.m., Sirr entering the tunnel area of the Lower West Terrace and joined rioters in assaulting officers at the front of the police line that law enforcement was using to push against the rioters who were assaulting them. Video showed Sirr pushing against the police line with his hand pressed against a police shield and participating in a struggle with a group of rioters as they moved together as a team against law enforcement. At 3:14 p.m., Sirr exited the tunnel and reappeared an hour later, at the Lower West Terrace doorway, joining with other rioters who were pushing against police officers before being ejected from the tunnel area.
Sirr was arrested on June 29, 2022 in North Kingstown, RI.
The U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section prosecuted the case with valuable assistance provided by the U.S. Attorney’s Office for the District of Rhode Island.
The case was investigated by the FBI’s Boston Division and its Providence Resident Agency. Valuable assistance was provided by the FBI’s Washington Field Office, the Rhode Island State Police and North Kingstown Police Department along with the U.S. Capitol Police, and the Metropolitan Police Department.
In the 28 months since Jan. 6, 2021, more than 1,000 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 320 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
Representative Fred Plump Charged with Conspiracy and Obstruction of Justice Charges and Agrees to Resign from the Alabama House of RepresentativesRead the Press Release
BIRMINGHAM, Ala. – Representative Fred L Plump, Jr. has been charged with conspiracy and obstruction of justice and has agreed to resign from the Alabama House of Representatives, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples, and Internal Revenue Service, Criminal Investigation Special Agent in Charge James Dorsey.
A charging document filed today in United States District Court charges Fred L. Plump, Jr., 76, of Fairfield, with one count of conspiracy to commit wire fraud and one count of obstruction of justice. These charges arise from an investigation of wrongdoing in connection with the Jefferson County Community Service Fund.
According to the charging document, in 2015 the Alabama Legislature passed Alabama Act No. 2015-226 (the “Act”) and authorized the Jefferson County Commission to levy and distribute a one percent sales tax and a one percent use tax to benefit the public welfare and enhance the education of the children of Jefferson County. Jefferson County began levying the new taxes in or about August 2017. The Act required the County to distribute the tax revenue according to certain specified priorities, including paying debt incurred during school construction, increasing the County’s general fund, giving funds to each board of education serving students in the County, and for certain other purposes set forth in the Act.
The Act created the Jefferson County Community Service Fund (the “Fund”), which was subsidized by approximately $3.6 million annually from the new taxes. The Act also created the Jefferson County Community Service Committee (the “Committee”), the four members of which were elected by members of the Jefferson County House and Senate delegations. The Committee was responsible for ensuring that the Fund was used only for the purposes set forth in the Act, which included to support public entities and projects such as schools, libraries, museums, parks, zoos, neighborhood associations, athletic facilities, youth sports associations, road construction, the performing arts, police departments, the sheriff’s office, fire departments, and certain nonprofit entities. Each Representative and Senator representing Jefferson County could make recommendations to the Committee of expenditures from their allotted amount of the Fund. These recommendations were made on a form created by the Committee that required certain certifications by the legislator. The organization receiving the funds was required to submit information about the organization and confirm that it intended to use the money for a public purpose. During each fiscal year from 2018 to 2022, each Representative was allocated approximately $100,000 and each Senator was allocated approximately $240,000 from the Fund.
The charging instrument identifies certain relevant parties. Legislator #1 was a long-serving member of the Alabama House of Representatives. Defendant Plump served as the Executive Director of the Piper Davis Youth Baseball League (“Piper Davis”), a nonprofit organization that claimed to provide a positive sporting experience for inner-city youth in Jefferson County. Individual #1 was Legislator #1’s assistant.
Between fiscal year 2018 and fiscal year 2022, Legislator #1 was allocated approximately $500,000 by the Fund. Legislator #1 directed approximately $400,000 of those discretionary funds to Piper Davis. In turn, Plump gave approximately $200,000 to Individual #1.
The charging instrument alleges that from in or about March 2019, and continuing through April 2023, Plump conspired with others to defraud and obtain money from the Fund. It is alleged that it was part of the conspiracy that Legislator #1 recommended during each fiscal year that most of his allotment of Fund money be paid to Piper Davis. In turn, Plump agreed to pay kickbacks to Individual #1. Plump submitted false and fraudulent information to the Committee about Piper Davis’s intended use of Fund money. Upon receipt and deposit of Fund checks, Plump gave checks to Individual #1 for approximately one-half of the amount of Fund money received by Piper Davis.
The charging document alleges further that Plump, after being interviewed by agents and served with a grand jury subpoena, corruptly attempted to obstruct the investigation by sending Individual #1 a text stating “Red Alert” and meeting with Individual #1 to warn her about the investigation.
According to the plea agreement, also filed today, Plump agreed to plead guilty to the charges, pay restitution of at least $200,000 to the Fund, and resign from office immediately upon entering his guilty plea. The Court will set a date for Plump to enter his guilty plea.
Each charge carries a maximum penalty of twenty years in prison and a $250,000 fine.
The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation investigated the case. Assistant United States Attorneys George Martin and Catherine Crosby are prosecuting the case.
An information contains only charges. A defendant is presumed innocent unless and until proven guilty.
Prisoner Caught Hiding Homemade Knives Pleads GuiltyRead the Press Release
ATHENS, Ga. – An Athens resident with a lengthy and violent criminal history entered guilty pleas in two separate cases recently, admitting he hid homemade knives while in prison on a federal firearms charge.
Michael Anthony Randall, 32, of Athens, pleaded guilty to one count of possession of a firearm by a convicted felon in Case No. 3:22-cr-00023 and one count of possession of contraband while in jail in Case No. 3:22-cr-28 on May 16. Randall faces a maximum sentence of ten years in prison and a $250,000 fine for illegally possessing a firearm and five years in prison and a $250,000 for possessing contraband. Randall was on supervised release at the time of the offense for possession of a firearm by a convicted felon in Case No. 3:18-cr30. Sentencing is scheduled for July 9. There is no parole in the federal system.
“In fairly quick succession—including shortly before a federal hearing for his second offense for illegally possessing a firearm—Michael Randall was caught with a weapon, putting himself and others in danger,” said U.S. Attorney Peter D. Leary. “This case illustrates the unceasing effort put forth by law enforcement to keep inmates and the community as a safe as possible from repeat and dangerous offenders.”
“Michael Randall is the definition of a repeat offender,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI will continue to work with our law enforcement partners to keep dangerous criminals like Randall off Georgia streets.”
“These incidents illustrate the importance of our professional partnerships. The Butts County staff did an excellent job in supervising this inmate and identifying his illegal acts. USMS investigators presented a case to the U.S. Attorney which yielded a successful prosecution. We work hard to ensure the safety of those that we are charged with safeguarding,” said U.S. Marshal Stephen D. Lynn.
“We have a duty to ensure the inmates’ rights are protected and they are in a safe environment,” said Butts County Sheriff Gary Long. “We are thankful for our strong working relationship with the U.S. Attorney’s Office and the U.S. Marshals Service to help us hold accountable those inmates who put the safety of others at risk.”
According to court documents, Randall was indicted for possession of a firearm by a convicted felon on Oct. 11, 2022, in the Middle District of Georgia, after he was arrested for illegally possessing a .380 pistol in Athens, on Jan. 12, 2021. Randall has multiple prior state felony convictions in North Carolina and Georgia, including assault with serious bodily injury and drug convictions. Randall was also previously convicted in the Middle District of Georgia for possession of a firearm by a convicted felon. It is illegal for a convicted felon to possess a firearm.
On Nov. 8, 2022, while in custody awaiting his initial appearance in federal court, Butts County Jail officers found a shank—a handmade knife—hidden on Randall’s person. Officers found another shank on Randall on Nov. 10, prior to his federal court appearance. On Dec. 16, Randall was found with another shank inside the Butts County Jail.
The case was investigated by FBI, the U.S. Marshals Service and the Butts County Sheriff’s Department.
Assistant U.S. Attorney Tamara Jarrett is prosecuting the case for the Government.
Poplar woman admits to trafficking meth; customer died after taking the drugRead the Press Release
GREAT FALLS — A Poplar woman today admitted to a methamphetamine trafficking crime after a customer died shortly after taking the drug, U.S. Attorney Jesse Laslovich said.
Danyell Rose Black Dog, 22, pleaded guilty to possession with intent to distribute meth. Black Dog faces a maximum of 20 years in prison, a $1 million fine and at least three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Oct. 18. Black Dog was detained pending further proceedings.
The government alleged in court documents that on Aug. 27, 2021, Fort Peck Tribes law enforcement officers responded to a 911 medical call regarding a woman identified as Jane Doe. Doe was unresponsive and officers began CPR. Family members told officers at the scene that Doe had used meth prior to the 911 call. Emergency medical responders arrived and transported Doe to the hospital, where she was pronounced dead.
The government further alleged the investigation determined that Doe would buy $5 or $10 worth of meth from Black Dog on a regular basis, and that Black Dog had sold to Doe two to three times a week. Black Dog sent text information to another individual in which she said she was on her way to sell Doe meth approximately 30 minutes before the incident and how she sold and delivered it to Doe. An autopsy of Doe conducted by the Montana state medical examiner listed the cause of death as methamphetamine toxicity.
The U.S. Attorney’s Office is prosecuting the case. The FBI and Fort Peck Tribes Department of Law and Justice conducted the investigation.
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Passaic County Man Charged with Transportation and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was arrested for transporting and possessing videos and images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.
Edward M. O’Hagan, 49, of Hawthorne, New Jersey, is charged by complaint with one count of transportation of child pornography and one count of possession of child pornography. He appeared this May 22, 2023, before U.S. Magistrate Judge José R. Almonte in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
On Jan. 19, 2023, O’Hagan used one of his email accounts to send video files containing images of child sexual abuse to himself. He also used two email addresses to create accounts on an encrypted file storage platform that was used to upload or create files containing images of child sexual abuse. The email accounts he used to access the platform were associated with an IP address that traced to O’Hagan’s address.
The count of transportation of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000. The count of possession of child pornography carries a maximum penalty of 10 years in prison and a fine of $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the arrest. He also thanked the Hawthorne Police Department, under the direction of Chief James Knepper, and the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik.
The government is represented by Assistant U.S. Attorney Farhana C. Melo of the Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
ohagan.complaint.pdfOwners of Freight Forwarding Company Sentenced to Prison for Exporting Stolen Outboard Engines to MexicoRead the Press Release
MIAMI – Today, two Miami residents, Carlos Orlando Ledesma, 57, and Nadia Esperanza Ledesma, 46, were sentenced to federal prison for conspiring to export nearly 600 stolen outboard engines to Mexico through a Miami-based freight forwarding company. Carlos Ledesma was sentenced to 36 months in prison and Nadia Ledesma was sentenced to 18 months in prison.
On May 19, co-defendants Roberto Marrero-Cisneros, 66, from Miami, and Osmani Valdivia Perez, 56, from Lehigh Acres, were each sentenced to 60 months incarceration for their roles in the conspiracy.
The sentencing hearings were held before U.S. District Judge Robert N. Scola, Jr. Judge Scola also ordered the defendants to forfeit the proceeds they each received from the scheme, and to pay $420,668.47 in restitution to the identifiable victims.
Nadia Ledesma is the President of Netcycle Trading Corp., a freight forwarding company in Miami, and Carlos Ledesma is the warehouse manager. From 2015 to 2018, Carlos and Nadia Ledesma received almost 600 stolen outboard engines for export to Mexico. The replacement cost of the stolen engines was over $11 million.
Dozens of individuals delivered the stolen engines to Netcycle. The engines had visible damage from the thefts, and cables and lines had been cut rather than properly detached. The individuals delivered the stolen engines in non-commercial vehicles without bills of sale or any other documentation for the engines.
Marrero-Cisneros created false serial number stickers to place on most of the stolen outboard engines. Nadia and Carlos Ledesma, and their co-conspirators, created false bills of sale and submitted false export information to the United States.
Many of the stolen engines were directed to Tomas Vale Valdivia, a co-conspirator who was then in Mexico. Later, on January 28, 2020, Vale Valdivia was sentenced to 57 months for alien smuggling, in a separate case before U.S. District Judge Kathleen M. Williams.
Vale Valdivia is the nephew of defendant Osmani Valdivia Perez. Valdivia Perez made many cash payments to co-conspirators in this case, on behalf of Vale Valdivia. The cash payments included payments to Netcycle for the fees for exporting the stolen outboard engines, payments to Marrero-Cisneros for the false serial numbers, and payments to the individuals who stole the outboard engines.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Anthony Salisbury, Homeland Security Investigations (HSI), Miami, and Special Agent in Charge Zinnia P. James, U.S. Coast Guard Investigative Service (CGIS), Southeast Region, announced the sentences.
HSI Miami and CGIS investigated the case, with assistance from the U.S. Customs and Border Protection (CBP), and the Florida Department of Law Enforcement (FDLE). Assistant U.S. Attorney Ana Maria Martinez is prosecuting the case. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-20269.
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Operator of Sober Homes and Associate Arrested for Fraud Schemes Involving Sober Home Client, Mass Save Program and COVID-19 Business LoansRead the Press Release
BOSTON – An operator of numerous sober homes in Massachusetts, who also operated insulation companies receiving funds through the Mass Save Program, was indicted along with a sober home manager, for their alleged involvement in numerous fraud schemes involving sober homes in the Greater Boston area, the Mass Save Program and a federal loan program to assist businesses during the COVID-19 Pandemic.
Daniel Cleggett, 37, of Kingston and Nicholas Espinosa, 37, of Randolph, were charged in a 37-count indictment with two counts of wire fraud conspiracy; one count of conspiracy to make false statements to a mortgage lending business (mortgage fraud conspiracy); 21 counts of wire fraud; six counts of unlawful monetary transactions (money laundering); and one count of making false statements to a mortgage lending business. In addition, Cleggett was separately charged with four counts of wire fraud and two counts of making false statements to a mortgage lending business. The defendants were arrested this morning and released following an initial appearance in federal court in Boston today before U.S. District Court Magistrate Judge Paul G. Levenson.
According to the charging documents, Cleggett was the founder of the sober home business A Vision From God LLC (AVFG). Established in November 2016, AVFG owns and operates sober homes in Boston, Wakefield, Quincy and Weymouth under trade names including Brady’s Place, Lakeshore Retreat and Lambert House. Espinosa managed the day-to-day affairs of Cleggett’s sober home business.
It is alleged that Cleggett, Espinosa and a sober home client entered into a conspiracy to defraud a New York-based family trust that was paying for the client’s room and board at Brady’s Place, located in Quincy. Specifically, Cleggett and Espinosa allegedly overcharged the family trust for room and board by up to $12,500 per month by submitting false and fraudulent invoices to the family trust. Cleggett and Espinosa would allegedly then issue “refund” checks to the client in furtherance of the fraud scheme.
According to the charging documents, from approximately October 2019 to December 2021, Cleggett personally, and through straw purchasers including Espinosa, purchased the three residential properties in Weymouth and Boston to use as sober homes. It is alleged that Cleggett, Espinosa and others submitted false information and fraudulent documentation including falsely representing that the three properties were intended to be purchased as primary residences when, in reality, each was intended to be a sober homes.
In addition to the sober home business, Cleggett operated numerous insulation contracting companies that participated in the Mass Save Program: Green Save Energy Corporation; Environmental Construction Objective Inc. (ECO); Green Giants, LLC; and Insulation Situation, LLC. Mass Save is a Massachusetts public/private partnership sponsored by gas and electric utility companies that funds energy conservation projects and improvements via energy efficiency funds charged to Massachusetts residents’ utility bills. Specifically, Green Save and ECO received millions of dollars for residential insulation work from a lead vendor company under the Mass Save program. It is alleged that, from 2018 through mid-2021, Green Save and ECO fraudulently billed the vendor company for required permits that were not actually obtained. Green Save and ECO were ultimately terminated from participating in the company’s program in June 2021, and Cleggett was banned from participating in the Mass Save program. In response to this, Cleggett, Espinosa and other co-conspirators allegedly formed Insulation Situation and Green Giants to enter as new lead vendors with the same company under straw owners. As a result, Cleggett allegedly obtained a total of $954,443 in payments from the company to Green Giants and Insulation Situation, despite him being banned from participating in the Mass Save program.
Additionally, it is alleged that on April 1, 2020, Cleggett submitted three Economic Injury Disaster Loan (EIDL) applications to the Small Business Administration for AVFG, the Daniel Cleggett Sole Proprietorship and Green Save. Cleggett obtained a total of $794,900 in EIDL loans and advances. In the applications, it is alleged that Cleggett falsely denied involvement in illegal activity despite his alleged involvement in the sober home wire fraud scheme and the mortgage fraud scheme involving one of his Weymouth sober homes. It is also alleged that Cleggett’s Sole Proprietorship EIDL application was false because the Daniel Cleggett Sole Proprietorship did not exist. Despite certifying that EIDL proceeds would only be used for “working capital” for the entity seeking the loan, Cleggett allegedly used tens of thousands of dollars from the funds to pay for personal expenses including EZ-Pass bills, gym membership fees, pet expenses, airline tickets, car rentals, vacation trips to Yellowstone, Montana and Aruba, and thousands of dollars in hotel resort stays for Cleggett and his girlfriend – which included spa fees as well as a wine and caviar dinner, among other expenses. Cleggett also allegedly used Green Save EIDL funds for $37,997 in wedding expenses.
The charges of wire fraud and wire fraud conspiracy provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of making false statements to a mortgage lending business provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million. The charge of unlawful monetary transactions provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Joleen D. Simpson, Special Agent in Charge of Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Valuable assistance was provided by the Kingston, Randolph and Quincy Police Departments. Assistant U.S. Attorneys and John T. Mulcahy of Levy’s Criminal Division and Dustin Chao, Chief of Levy’s Public Corruption Unit, are 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.
Operation Smoke and Mirrors Update: Virginia Man Pleads Guilty to Role in Methamphetamine Trafficking OrganizationRead the Press Release
CHARLESTON, W.Va. – Todd Tyler Snead, 57, of Waynesboro, Virginia, pleaded guilty today to conspiracy to distribute 500 grams or more of methamphetamine, admitting to a role in a drug trafficking organization (DTO) that operated in the Charleston area.
According to court documents and statements made in court, Snead admitted to traveling to St. Albans on March 14, 2023 to obtain approximately 4 pounds of methamphetamine from a co-defendant. Law enforcement officers followed Snead back to a hotel in Cross Lanes, where they searched the trunk of his vehicle, found the methamphetamine and arrested him. Snead had obtained pound-level quantities of methamphetamine from the co-defendant for several months leading up to his arrest.
Snead is scheduled to be sentenced on September 6, 2023, and faces a mandatory minimum of 10 years in prison, five years and up to a lifetime of supervised release, and a $10 million fine.
Snead is among 30 individuals indicted as a result of Operation Smoke and Mirrors, a major drug trafficking investigation that has yielded the largest methamphetamine seizure in West Virginia history. Law enforcement seized well over 200 pounds of methamphetamine as well as 28 pounds of cocaine, 20 pounds of fentanyl, 18 firearms and $747,000 in cash.
Seven other co-defendants have pleaded guilty. Indictments against the other defendants are pending. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Postal Inspection Service, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the West Virginia National Guard Counter Drug program, the Kanawha County Sheriff’s Office, the Charleston Police Department, the Putnam County Sheriff’s Office and the Raleigh County Sheriff's Office. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is prosecuting the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-31.
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Niles Physician Sentenced to 6 Years in Prison for Illegally Prescribing Controlled Substances and Healthcare FraudRead the Press Release
CLEVELAND – Jeffrey Sutton, 65, of Niles, Ohio, was sentenced today to 72 months in prison by U.S. District Judge Christopher A. Boyko, after he pleaded guilty to illegally prescribing patients opioids and other controlled substances, illegally distributing controlled substances and healthcare fraud. Sutton was also sentenced to 3 years of supervised release, a $5,200 special assessment, a $20,000 fine, and restitution of $148,870.79.
According to court documents, from January 2015 through January 2022, Sutton knowingly prescribed medically unnecessary controlled substances to patients outside of the usual course of professional practice and without legitimate medical purpose. In doing so, Sutton fraudulently billed health care benefit programs for office visits and the controlled substances illegally dispensed.
Sutton also admitted to engaging in sexual acts with patients to whom he directly prescribed controlled substances, including during office visits. He also admitted to delivering dozens of oxycodone pills to the home of one of his patients with whom he was engaged in a relationship, outside the course of treatment and without a valid prescription.
The investigation was conducted by the Cleveland offices of the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), and the Department of Health and Human Services - Office of the Inspector General (HHS-OIG), and by the State of Ohio Board of Pharmacy. This case was prosecuted by Assistant U.S. Attorney Elliot Morrison.
New Jersey Man Sentenced to 12 Years in Prison for Receiving Military-Type Training from Hezbollah, Marriage Fraud and Making False StatementsRead the Press Release
The Justice Department today announced that Alexei Saab, aka Ali Hassan Saab, aka Alex Saab, aka Rachid, 46, was sentenced to 12 years in prison followed by three years of supervised release for receiving military-type training from Hezbollah, marriage fraud, and making false statements.
According to court documents, Saab was convicted by a jury in May 2022 after a two-week trial. The sentence was imposed by the Honorable Paul G. Gardephe, who also presided over the trial.
According to court documents and evidence presented at trial, Hezbollah is a Lebanon-based Shia Islamic organization with political, social and terrorist components. Hezbollah was founded in the 1980s with support from Iran after the 1982 Israeli invasion of Lebanon, and its mission includes establishing a fundamentalist Islamic state in Lebanon. Since Hezbollah’s formation, the organization has been responsible for numerous terrorist attacks that have killed hundreds, including U.S. citizens and military personnel. In 1997, the U.S. Department of State designated Hezbollah a Foreign Terrorist Organization, pursuant to Section 219 of the Immigration and Nationality Act, and it remains so designated today. In 2001, pursuant to Executive Order 13224, the U.S. Department of Treasury designated Hezbollah a Specially Designated Global Terrorist entity. In 2010, State Department officials described Hezbollah as the most technically capable terrorist group in the world and a continued security threat to the United States.
The Islamic Jihad Organization (IJO), which is also known as the External Security Organization and “910,” is a component of Hezbollah responsible for the planning and coordination of intelligence, counterintelligence, and terrorist activities on behalf of Hezbollah outside of Lebanon. In July 2012, an IJO operative detonated explosives on a bus transporting Israeli tourists in the vicinity of an airport in Burgas, Bulgaria. The detonation killed six people and injured 32 others. Law enforcement authorities have disrupted several other IJO attack-planning operations around the world, including the arrest of an IJO operative surveilling Israeli targets in Cyprus in 2012, the seizure of bomb-making precursor chemicals in Thailand in 2012, and a seizure of similar chemicals in May 2015 in connection with the arrest of another IJO operative. In June 2017, two IJO operatives were arrested in the U.S and charged with terrorism-related offenses in the Southern District of New York. In May 2019, a jury convicted one of those two IJO operatives on all counts, and in December 2019, he was sentenced principally to 40 years in prison.
Saab joined Hezbollah in 1996. Saab’s first Hezbollah operations occurred in Lebanon, where he was tasked with observing and reporting on the movements of Israeli and Southern Lebanese Army soldiers in Yaroun, Lebanon. Among other things, Saab reported on patrol schedules and formations, procedures at security checkpoints, and the vehicles used by soldiers. Saab also, alongside his brother, planted an improvised explosive device that detonated and hit Israeli soldiers, seriously injuring at least one.
In approximately 1999, Saab attended his first Hezbollah training. The training was focused on the use of firearms, and Saab handled and fired an AK-47, an M16 rifle, and a pistol, and threw grenades. In 2000, Saab transitioned to membership in Hezbollah’s unit responsible for external operations, the IJO, and he then received extensive training in IJO tradecraft, weapons, and military tactics, including how to construct and detonate bombs and other explosive devices and how to best use these devices in attacks. Specifically, Saab received detailed instruction in, among other things, triggering mechanisms, explosive substances, detonators, and the assembly of circuits. In pre-arrest interviews with the FBI, Saab was able to diagram multiple improvised explosive devices that would have been viable if constructed as diagrammed.
In 2000, Saab entered the United States. While living in the United States, Saab remained an IJO operative, continued to receive military training in Lebanon, and conducted numerous operations for the IJO. For example, Saab surveilled dozens of locations in New York City — including the United Nations headquarters, the Statue of Liberty, Rockefeller Center, Times Square, the Empire State Building, and local airports, tunnels, and bridges — and provided detailed information on these locations, including photographs, to the IJO. In particular, Saab focused on the structural weaknesses of locations he surveilled in order to determine how a future attack could cause the most destruction. Saab’s reporting to the IJO included the materials used to construct a particular target, how close in proximity one could get to a target, and site weaknesses or “soft spots” that the IJO could exploit if it attacked a target in the future. Saab conducted similar intelligence gathering in a variety of large American cities, including Boston and Washington, D.C., Saab admitted that his surveillance was designed to best position the IJO to attack the U.S. in the future. Saab also was tasked by Hezbollah with opening a front company that he could use to obtain fertilizer in the United States for use as an explosives precursor.
In addition to his attack-planning activities in the United States, Saab conducted operations abroad. For example, in or about 2003, Saab attempted to murder a man he later understood to be a suspected Israeli spy. Saab pointed a firearm at the individual at close range and pulled the trigger twice, but the firearm did not fire. Saab also conducted surveillance in Istanbul, Turkey, and elsewhere.
Finally, in or about 2012, Saab entered into a fraudulent marriage in exchange for $20,000. The purpose of the marriage was for Saab’s purported wife to apply for her citizenship. Saab later falsely affirmed, under penalty of perjury, and in connection with his purported wife’s efforts to obtain status in the U.S., that the marriage was not for any immigration-related purposes.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Damian Williams for the Southern District of New York, and Assistant Director Robert R. Wells of the FBI Counterterrorism Division made the announcement.
The FBI and its New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department, investigated the case.
Assistant U.S. Attorneys Sam Adelsberg and Jason A. Richman for the Southern District of New York are prosecuting the case, with assistance from Trial Attorneys Jessica Fender and Alexandra Hughes of the National Security Division’s Counterterrorism Section.
New Jersey Man Sentenced to 12 Years for Receiving Military-Type Training from Hizballah, Marriage Fraud, and Making False StatementsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ALEXEI SAAB, a/k/a “Ali Hassan Saab,” a/k/a “Alex Saab,” a/k/a “Rachid,” was sentenced today to 12 years in prison for receiving military-type training from Hizballah, marriage fraud, and making false statements. A jury convicted SAAB of those offenses in May 2022 after a two-week trial. The sentence was imposed by the Honorable Paul G. Gardephe, who also presided over the trial.
U.S. Attorney Damian Williams said: “Alexei Saab’s actions as a Hizballah operative, both domestically and internationally, were deeply disturbing. Saab trained extensively on military tactics and weapons use, he specialized in how to construct and detonate explosives, and he surveilled major American landmarks to identify potential attack sites. But his apprehension by law enforcement before an attack could be carried out is a testament to the importance of our counterterrorism efforts. We will continue to protect the American people by thwarting terrorist organizations’ pursuits of murder and mass destruction. Thanks to the hard work of the career prosecutors of this Office and our law enforcement partners, Saab will now spend the coming 12 years in federal prison.”
According to court documents and evidence presented at trial:
Hizballah is a Lebanon-based Shia Islamic organization with political, social, and terrorist components. Hizballah was founded in the 1980s with support from Iran after the 1982 Israeli invasion of Lebanon, and its mission includes establishing a fundamentalist Islamic state in Lebanon. Since Hizballah’s formation, the organization has been responsible for numerous terrorist attacks that have killed hundreds, including U.S. citizens and military personnel. In 1997, the U.S. Department of State designated Hizballah a Foreign Terrorist Organization, pursuant to Section 219 of the Immigration and Nationality Act, and it remains so designated today. In 2001, pursuant to Executive Order 13224, the U.S. Department of Treasury designated Hizballah a Specially Designated Global Terrorist entity. In 2010, State Department officials described Hizballah as the most technically capable terrorist group in the world and a continued security threat to the U.S.
The Islamic Jihad Organization (“IJO”), which is also known as the External Security Organization and “910,” is a component of Hizballah responsible for the planning and coordination of intelligence, counterintelligence, and terrorist activities on behalf of Hizballah outside of Lebanon. In July 2012, an IJO operative detonated explosives on a bus transporting Israeli tourists in the vicinity of an airport in Burgas, Bulgaria. The detonation killed six people and injured 32 others. Law enforcement authorities have disrupted several other IJO attack-planning operations around the world, including the arrest of an IJO operative surveilling Israeli targets in Cyprus in 2012, the seizure of bomb-making precursor chemicals in Thailand in 2012, and a seizure of similar chemicals in May 2015 in connection with the arrest of another IJO operative. In June 2017, two IJO operatives were arrested in the U.S and charged with terrorism-related offenses in the Southern District of New York. In May 2019, a jury convicted one of those two IJO operatives on all counts, and in December 2019, he was sentenced principally to 40-years in prison.
SAAB joined Hizballah in 1996. SAAB’s first Hizballah operations occurred in Lebanon, where he was tasked with observing and reporting on the movements of Israeli and Southern Lebanese Army soldiers in Yaroun, Lebanon. Among other things, SAAB reported on patrol schedules and formations, procedures at security checkpoints, and the vehicles used by soldiers. SAAB also, alongside his brother, planted an improvised explosive device that detonated and hit Israeli soldiers, seriously injuring at least one.
In approximately 1999, SAAB attended his first Hizballah training. The training was focused on the use of firearms, and SAAB handled and fired an AK-47, an M16 rifle, and a pistol, and threw grenades. In 2000, SAAB transitioned to membership in Hizballah’s unit responsible for external operations, the IJO, and he then received extensive training in IJO tradecraft, weapons, and military tactics, including how to construct and detonate bombs and other explosive devices and how to best use these devices in attacks. Specifically, SAAB received detailed instruction in, among other things, triggering mechanisms, explosive substances, detonators, and the assembly of circuits. In pre-arrest interviews with the Federal Bureau of Investigation (“FBI”), SAAB was able to diagram multiple improvised explosive devices that would have been viable if constructed as diagrammed.
In 2000, SAAB entered the U.S. While living in the U.S., SAAB remained an IJO operative, continued to receive military training in Lebanon, and conducted numerous operations for the IJO. For example, SAAB surveilled dozens of locations in New York City — including the United Nations headquarters, the Statue of Liberty, Rockefeller Center, Times Square, the Empire State Building, and local airports, tunnels, and bridges — and provided detailed information on these locations, including photographs, to the IJO. In particular, SAAB focused on the structural weaknesses of locations he surveilled in order to determine how a future attack could cause the most destruction. SAAB’s reporting to the IJO included the materials used to construct a particular target, how close in proximity one could get to a target, and site weaknesses or “soft spots” that the IJO could exploit if it attacked a target in the future. SAAB conducted similar intelligence gathering in a variety of large American cities, including Boston and Washington, D.C. SAAB admitted that his surveillance was designed to best position the IJO to attack the U.S. in the future. SAAB also was tasked by Hizballah with opening a front company that he could use to obtain fertilizer in the United States for use as an explosives precursor.
In addition to his attack-planning activities in the United States, SAAB conducted operations abroad. For example, in or about 2003, SAAB attempted to murder a man he later understood to be a suspected Israeli spy. SAAB pointed a firearm at the individual at close range and pulled the trigger twice, but the firearm did not fire. SAAB also conducted surveillance in Istanbul, Turkey, and elsewhere.
Finally, in or about 2012, SAAB entered into a fraudulent marriage in exchange for $20,000. The purpose of the marriage was for SAAB’s purported wife to apply for her citizenship. SAAB later falsely affirmed, under penalty of perjury, and in connection with his purported wife’s efforts to obtain status in the U.S., that the marriage was not for any immigration-related purposes.
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In addition to the prison term, SAAB, 46, was sentenced to 3 years of supervised release.
Mr. Williams praised the outstanding efforts of the Federal Bureau of Investigation’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department. Mr. Williams also thanked the Counterterrorism Section of the Department of Justice’s National Security Division.
This prosecution is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Sam Adelsberg and Jason A. Richman are in charge of the prosecution, with assistance from Trial Attorneys Jessica Fender and Alexandra Hughes of the Counterterrorism Section.
New Haven Man Sentenced to More than 7 Years in Federal Prison for Firearm OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JACKIE BROWN, 43, of New Haven, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 92 months of imprisonment, followed by three years of supervised release, for unlawfully possessing ammunition.
According to court documents and statements made in court, on October 7, 2021, Brown was involved in a car accident in New Haven. After a responding officer observed Brown attempting to hide an extended firearm magazine by sitting on top of it, Brown ran from the car, up the street, and through the backyard of a residence. Another officer apprehended Brown minutes later. A search of Brown’s path of travel revealed a .40 caliber handgun, a loaded gun magazine, and two loose rounds of ammunition.
In an interview with officers, Brown admitted that he had discarded a firearm with a loaded magazine during the chase. Analysis of the extended magazine that was found in the car revealed that it contained 25 rounds of ammunition.
Brown has an extensive criminal history that includes seven drug-related felony convictions, and a conviction for attempted assault in the first degree. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Brown has been detained since his arrest. On August 12, 2022, he pleaded guilty to possession of a firearm by a felon.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorney A. Reed Durham through the Justice’s Department’s Project Safe Neighborhoods (PSN) program.
PSN, the centerpiece of the Department of Justice’s violent crime reduction efforts, 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.
Nebraska U.S. Attorney’s Office Allocated Additional ProsecutorsRead the Press Release
United States Attorney Steven Russell announced today that the United States Attorney’s Office for the District of Nebraska has been allocated three additional federal prosecutors and two additional support staff by the United States Department of Justice. One of these full-time Assistant United States Attorneys (AUSAs) and support staff will be dedicated to addressing public safety needs to combat violent crime in the state.
“For decades, the United States Attorney’s Office in Nebraska has been a strong federal partner in promoting public safety across the state, including the prosecution of violent crime and government fraud,” Russell said. “With this significant investment of additional resources from the Department of Justice, we will be able to continue to effectively coordinate with state, local and tribal law enforcement to ensure that Nebraska is a safe place to work and live.”
In addition to the “violent crime” prosecutor, the office will hire an additional AUSA charged with spearheading the office’s eLitigation program, enhancing the process of identifying, assessing, producing and presentation of discoverable information for all manner of criminal prosecutions and civil matters. A term AUSA will be charged with prosecuting COVID fraud, false statements, and money laundering related to the CARES Act passed by Congress in the wake of the COVID-19 pandemic. This includes fraud involving the Paycheck Protection Program (PPP), Economic Injury Disaster Loans (EIDL), and unemployment insurance (UI) programs committed during the pandemic. Finally, the Office has also been allocated two support staff positions to assist in Indian country prosecutions and e-litigation support.
The United States Attorney’s Office for the District of Nebraska currently has 30 AUSAs working in its Criminal and Civil Divisions out of Omaha and Lincoln. The office is currently in the process of onboarding two criminal AUSAs to fill existing vacancies. When the additional prosecutors are in place, a process expected to take several months, the office will have a total of 34 AUSAs representing the United States serving the citizens of Nebraska.