Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 30 March 2023
Swiss Executive Pleads Guilty to Conspiracy to Defraud the IRSRead the Press Release
An executive of the holding company that owns Privatbank IHAG pleaded guilty today to conspiring to conceal over $60 million of undeclared assets held by wealthy American clients of the Swiss private bank.
According to court documents and statements made in court, from approximately 2009 to 2014, Daniel Wälchli, a member of the bank holding company’s executive board, worked with others to help Privatbank IHAG conceal the accounts of American customers who did not want to disclose their Swiss bank accounts to the IRS. The scheme involved a number of steps designed to obscure these undeclared accounts by stripping them of any indicia of U.S. ownership. Known as the “Singapore Solution,” members of the conspiracy sent over $60 million dollars on “round trips” across the globe. The money was sent from Privatbank IHAG accounts in Switzerland to a bank in Hong Kong before returning to Privatbank IHAG in accounts held by a Singaporean asset manager owned and controlled by the Swiss bank’s holding company.
Pursuant to the terms of his plea agreement, Wälchli will not dispute that the tax loss was $531,524, and he agrees that a sentencing enhancement for “sophisticated means” is appropriate.
Wälchli faces a maximum penalty of five years in prison. He also faces a period of supervised release and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Damian Williams for the Southern District of New York made the announcement.
IRS-Criminal Investigation is investigating the case.
Senior Litigation Counsel Nanette Davis and Trial Attorney Christopher Magnani of the Justice Department’s Tax Division and Assistant U.S. Attorney Olga Zverovich of the Southern District of New York are prosecuting the case.
Swiss Executive Pleads Guilty to Tax Fraud ConspiracyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, and James C. Lee, Chief of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that DANIEL WÄLCHLI pled guilty today to conspiring to defraud the United States in connection with a scheme to help wealthy American clients conceal more than $60 million in income and assets held in undeclared offshore bank accounts and evade U.S. income taxes. WÄLCHLI was a member of the executive board of a Swiss holding company that owned, among other entities, a Zurich-based private bank called Privatbank IHAG Zurich AG (“IHAG”). WÄLCHLI pled guilty earlier today before U.S. District Judge Gregory H. Woods.
According to the allegations in the Indictment, court filings, and statements made in Court:
From in or about 2009 to in or about 2014, WÄLCHLI and his co-conspirators defrauded the IRS by concealing income and assets of three wealthy U.S. clients with undeclared bank accounts at IHAG. In order to assist the U.S. clients, WÄLCHLI and his co-conspirators devised and implemented a scheme dubbed the “Singapore Solution” to fraudulently conceal the bank accounts of the U.S. clients, their assets, and their income from U.S. authorities. In furtherance of the fraudulent scheme, WÄLCHLI and his co-conspirators agreed to transfer more than $60 million from undeclared IHAG bank accounts of the U.S. clients through a series of nominee bank accounts in Hong Kong and other locations before returning the funds to newly opened accounts at IHAG in the name of a Singapore-based asset-management firm that WÄLCHLI helped establish. The U.S. clients paid large fees to IHAG and others to help them conceal their assets and evade U.S. income taxes.
* * *
WÄLCHLI, 55, of Switzerland, pled guilty to one count of conspiracy to defraud the United States, which carries a maximum sentence of five years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as WÄLCHLI’s sentence will be determined by the judge.
Mr. Williams praised the outstanding work of IRS-CI. Mr. Williams thanked the Department of Justice’s Tax Division for their partnership on this case.
This prosecution is being handled by the Complex Frauds and Cybercrime Unit of the United States Attorney’s Office for the Southern District of New York and the Department of Justice’s Tax Division. Assistant U.S. Attorney Olga I. Zverovich of the United States Attorney’s Office for the Southern District of New York and Senior Litigation Counsel Nanette Davis and Trial Attorney Christopher Magnani of the Tax Division are in charge of the prosecution.
St. Louis Man Sentenced to 10+ Years in Prison for Fentanyl, GunsRead the Press Release
ST. LOUIS – A man caught twice in St. Louis, Missouri with guns and fentanyl after police chases that ended in crashes was sentenced Thursday to 10 years and 10 months in prison.
Geno Armstrong, 28, pleaded guilty Nov. 30, 2022 to two counts of possession with intent to distribute fentanyl and one count of possession of a firearm in furtherance of one or more drug trafficking crimes.He admitted that he and three others, Deondre Hill, Terryon McDonald and Phillip Robinson, were spotted on Oct. 12, 2021 in a stolen Audi A8 by members of the St. Louis Metropolitan Police Department Anti-Crime Task Force Using spike strips, task force officers flattened the two front tires but McDonald sped off. Hill threw a gun out of the front passenger seat window on Goodfellow Avenue during the chase. The Audi eventually crashed into a concrete planter and electrical signal at Goodfellow and Delmar avenues. McDonald, Hill and Robinson fled on foot. Armstrong was found in the rear of the Audi with a Kel-Tec 5.56 rifle with a large capacity magazine and a Coach man bag containing fentanyl. Cash totaling $6,779 and methamphetamine was also found in the car.
On Nov. 5, 2021, after another crash, St. Louis Metropolitan Police Department officers found a Glock .40-caliber pistol, marijuana and fentanyl in a Chevrolet Malibu that Armstrong had been driving.
Armstrong’s co-defendants have also pleaded guilty and have been sentenced.
Hill, 30, of Georgia, was sentenced January 5 to seven years in prison on charges of possession with intent to distribute fentanyl, possession with intent to distribute methamphetamine and possession of a firearm in furtherance of one or more drug trafficking crime.
McDonald, 20, of Florissant, was sentenced February 28 to three years in prison on charges of possession with intent to distribute fentanyl and possession with intent to distribute methamphetamine.
Robinson, 28, of St. Louis was sentenced February 28 to five years in prison on one count of possession with intent to distribute fentanyl.
The Drug Enforcement Administration and the St. Louis Metropolitan Police Department investigated the case. Assistant U.S. Attorney J. Christian Goeke is prosecuting the case.
Southern District of New York Court Employee and Practicing Attorney Charged with Bribery and Making False StatementsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the unsealing of charges against DIONISIO FIGUEROA, a/k/a “Dionicio,” an employee of the United States District Court for the Southern District of New York (“the SDNY District Court”), and TELESFORO DEL VALLE, JR., a/k/a “Ted,” a criminal defense attorney practicing in the SDNY District Court and elsewhere, for their participation in a scheme in which FIGUEROA referred criminal defendants to DEL VALLE and encouraged those defendants to retain DEL VALLE as counsel in exchange for cash payments from DEL VALLE to FIGUEROA. FIGUEROA was arrested, and DEL VALLE surrendered earlier today, and both will be presented before United States Magistrate Judge Andrew E. Krause in the SDNY District courthouse in White Plains, New York.
U.S. Attorney Damian Williams said: “The public, the Court, and the bar all rely on the integrity and honesty of the professionals who work for the Court and the lawyers who appear there. For years, Figueroa and Del Valle allegedly violated their duties and undermined the fair administration of justice, all for their personal gain. This Office will do its part to uphold the high standards of conduct expected of all those who play a role in the criminal justice process.”
According to the allegations in the Indictment:[1]
As a clerk in the SDNY Magistrate Clerk’s Office since in or about 2002, FIGUEROA was responsible for performing duties that included, among other things, making data entries regarding official case events in criminal cases; making summary entries of documents and proceedings on case dockets; and performing inquiries and furnishing information, either in person or by correspondence, regarding the status of cases. FIGUEROA also played a role with respect to the intake of criminal cases, including by preparing appearance bonds, advising defendants and their family members about the conditions of the bonds, and ensuring that appearance bonds were signed by all parties prior to a defendant’s release.
SDNY District Court personnel policies prohibited FIGUEROA from having outside employment that would pose a conflict of interest; receiving payments, gifts, or other benefits from persons having business before the SDNY District Court; and recommending particular attorneys to members of the public. FIGUEROA also was subject to the United States Courts’ Code of Conduct for Judicial Employees (the “Code of Conduct”), which cautioned judicial employees that “[a] number of criminal statutes of general applicability govern federal employees’ performance of official duties. These include: 18 U.S.C. § 201 (bribery of public officials and witnesses) ….” The Code of Conduct likewise admonished, among other things, that “[a] judicial employee should never influence or attempt to influence the assignment of cases, or perform any discretionary or ministerial function of the court in a manner that improperly favors any litigant or attorney, nor should a judicial employee imply that he or she is in a position to do so.”
DEL VALLE is a private attorney who has appeared in numerous federal criminal cases pending before the SDNY District Court.
Between at least 2011 and 2022, FIGUEROA and DEL VALLE engaged in a scheme whereby FIGUEROA used his position as an employee of the SDNY District Court to encourage criminal defendants to retain DEL VALLE to represent them in pending criminal cases. In return, DEL VALLE paid FIGUEROA a portion of the fees clients paid to DEL VALLE. Over the course of more than a decade, FIGUEROA referred at least 45 SDNY criminal defendants to DEL VALLE, and DEL VALLE paid FIGUEROA tens of thousands of dollars in referral fees. DEL VALLE paid FIGUEROA directly and through an intermediary, who would pick up envelopes of cash for FIGUEROA from DEL VALLE’s law office.
Many of the clients who ended up retaining and paying DEL VALLE were assigned free, court-appointed counsel. Nevertheless, FIGUEROA encouraged those individuals to change counsel, including by vouching for DEL VALLE’s abilities as a lawyer. For example, in July 2018, FIGUEROA told family members of one defendant (“Defendant-1”), in substance, that FIGUEROA knew a good attorney who was a specialist in similar cases and could get
Defendant-1 out of trouble. He then provided FIGUEROA’s contact information to
Defendant-1’s relative. Similarly, in February 2020, FIGUEROA told a family member of another defendant (“Defendant-2”), in substance, that if anyone could help Defendant-2 in Defendant-2’s case, it was DEL VALLE. At the time, Defendant-2 was represented by court-appointed counsel.FIGUEROA and DEL VALLE are also charged with making false statements to law enforcement during the investigation. In November 2022, federal law enforcement agents separately interviewed both FIGUEROA and DEL VALLE. After advising each that lying to federal law enforcement agents is a federal crime, FIGUEROA and DEL VALLE each made materially false, fictitious, and fraudulent statements and representations in response to the agents’ questions. In particular, FIGUEROA denied making any referrals to DEL VALLE, except on a small number of occasions concerning close relations or friends, and further denied ever having received payments from DEL VALLE for referrals. As to DEL VALLE, upon being served with a federal grand jury subpoena requiring the production of records from his law firm, DEL VALLE denied having any records reflecting client referrals from, or payments to, FIGUEROA or anyone else.
* * *
FIGUEROA, 66, of New York, New York, and DEL VALLE, 65, of Leonia, New Jersey, are each charged with one count of conspiracy to bribe a federal employee and pay illegal compensation to a judicial employee, which carries a maximum potential sentence of five years in prison; one count of bribery of a federal employee, which carries a maximum potential sentence of 15 years in prison; one count of illegal compensation to a judicial employee, which carries a maximum potential sentence of five years in prison; and one count of false statements, which carries a maximum potential sentence of five years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Special Agents from the U.S. Attorney’s Office for the Southern District of New York.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Frank Balsamello, Andrew Rohrbach, and Jarrod L. Schaeffer are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
South Texas tax fraud: preparer convicted of filing fraudulent returnsRead the Press Release
CORPUS CHRISTI, Texas – A local tax preparer has admitted to preparing false and fraudulent tax returns on behalf of Texas taxpayers, announced U.S. Attorney Alamdar S. Hamdani.
Berlinda Luikens was the owner and operator of a tax preparation business known as the Tax Company in Corpus Christi.
Luikens admitted that between 2016 and 2020, she filed false and fraudulent tax returns for taxpayers. In those fraudulent returns, Luikens knowingly reported false business and farming losses and false charitable deductions in amounts she knew the taxpayers were not entitled to claim.
The fraudulent tax returns resulted in a loss of at least $446,301 to the United States.
“Tax season ends on April 15, but there is no end to our efforts to bring tax criminals to justice,” said Special Agent-in-Charge Ramsey E. Covington of IRS Criminal Investigation’s (IRS-CI) Houston Field Office. “Our special agents are the best in the business when it comes to solving financial crimes, which is why more than 90 percent of our cases result in convictions.”
U.S. District Judge Ramos will impose sentencing June 28. At that time, Luikens faces up to three years in federal prison and a possible $250,000 maximum fine. She was permitted to remain on bond pending that hearing.
IRS – CI conducted the investigation. Assistant U.S. Attorney John Marck is prosecuting the case.
# # #
South Sacramento Man Sentenced to 24 Years in Prison for Attempted Online Enticement of a Minor for Sexual PurposesRead the Press Release
SACRAMENTO, Calif. — Dilesh Sharma, 50, of Sacramento, was sentenced today to 24 years in prison, to be followed by a lifetime of supervised release, for attempted online enticement of a minor for sexual purposes, distribution of child pornography, and receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.
“Today’s sentence is a warning to other online predators,” said U.S. Attorney Talbert. “We are determined to use every legal avenue we have to identify and apprehend these criminals and protect children from harm.”
“The FBI is deeply committed to ensuring cases like these are conducted with extensive rigor to ensure the allegations are a clear statement of fact and accurately represent the behavior of the accused,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Mr. Sharma will now have decades in federal prison to consider the consequences of his actions and the threat he posed to minors.”
According to court documents, in November 2016, Sharma used the Craigslist email system and the Kik application to electronically message back and forth with a person who identified himself as an adult, but who Sharma did not know was an undercover law enforcement agent. Sharma expressed his interest in gaining access to a minor for sexual purposes, and the undercover agent told Sharma that his girlfriend had an 11-year-old daughter. Eventually, Sharma’s conversations with the undercover agent reached a point where Sharma suggested that the two meet. On March 30, 2017, they met to set up an in-person meeting where Sharma was supposed to meet the minor for a sexual purpose. The next day, Sharma arrived at the designated meeting place and was arrested. During a review of Sharma’s iPhone, seized from him at the time of arrest, law enforcement agents discovered that Sharma received and distributed child pornography on Kik with someone other than the undercover agent.
This case was the product of an investigation by the Federal Bureau of Investigation and the Internet Crimes Against Children Task Force. Assistant U.S. Attorneys Roger Yang and Rosanne Rust prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Snapchat Predator Is Sentenced to 17.5 Years in Prison for Distribution of Child PornographyRead the Press Release
CHARLOTTE, N.C. – A Charlotte man who used Snapchat to coerce a minor to share child pornography was sentenced to 17.5 years in prison today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Sean Matthew Burney, 28, was also ordered to serve a lifetime of supervised release and will be required to register as a sex offender after he is released from prison.
Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina, and Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s sentencing hearing, between February 21 and February 24, 2021, Burney used Snapchat to coerce a minor male victim to create and share videos and images that contained child pornography. The criminal investigation began once the minor victim’s mother contacted CMPD to report that her 14-year-old son was being blackmailed via Snapchat and was forced to send the blackmailer images and videos of the minor engaging in sexually explicit conduct.According to court records, Burney represented himself as a female via Snapchat and contacted the victim. When the victim sent the sexually explicit images to Burney, the victim was under the impression that he was communicating with a female. Court records show that from that point on, Burney demanded additional child pornography from the victim, and threatened to post the victim’s sexually explicit images and videos on social media if the victim did not comply. Burney continued to ask the victim for additional child pornography, knowing the victim was 14 years old.
According to court documents, when the victim didn’t respond to Burney, the defendant posted on Snapchat the victim’s account name and a caption to contact him if people wanted videos.
Over the course of the investigation, law enforcement determined that the suspect Snapchat account belonged to Burney. A search warrant for the minor victim’s and Burney’s Snapchat accounts was executed. During a forensic analysis of material seized pursuant to the search warrants, law enforcement located the child pornography.
On October 19, 2022, Burney pleaded guilty to distribution of child pornography. He is currently in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In announcing today’s sentence, U.S. District Judge Frank D. Whitney said that Burney’s predatory actions not only targeted a minor, but sought to take over his free will.
The FBI and CMPD handled the investigation.
Assistant United States Attorney Stephanie Spaugh, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Significant sentence imposed in multiple-man robbery crewRead the Press Release
HOUSTON – The 11th member of a 12-person robbery crew has been ordered to prison for his role in a string of armed robberies including one in which shots were fired, announced U.S. Attorney Alamdar S. Hamdani.
Denzell Devoe Lucious, 31, Houston, pleaded guilty in March 2022.
Today, U.S. District Judge Andrew Hanen imposed a total of 168 months in federal prison - 84 months for the robberies and a consecutive 84 months for aiding and abetting the use of a firearm during a crime of violence. The sentence will be to be immediately followed by three years of supervised release.
Others previously convicted and sentenced include Lontay Lavelle Young, 39, Deshaun Devon Waldrup, 27, Edward Ray Lavergne Jr., 39, Jesse Markise McQueen, 32, Kevin Craig Gray, 38, Louis Jerome Hines, 44, Terry Dwight Washington, 37, Tony Dontrel Young, 32, Barry Lloyd Jones, 30, Ross White-Leonard, 33, and Kenneth Dewayne Cooper, 34. All are from Houston.
Lontay Young, Tony Young, Waldrup, Lavergne, McQueen, White-Leonard and Jones received respective sentences of 209, 132, 125, 114, 180, 102 and 156 months, respectively. Gray and Washington both received 147-month-terms of imprisonment, while Hines was ordered to serve 171 months. Cooper is still pending sentencing.
This group conducted at least six robberies over the course of six months at various commercial establishments.
On Oct. 22, 2015, Lontay Young and Hines robbed the Family Dollar store on Wayside in Houston while wearing masks and carrying handguns.
Then, on Jan. 11, 2016, Jones, Cooper, Lucious and McQueen traveled outside of Houston to rob the Ben Bridge Jewelers at Barton Springs Mall in Austin. There, they stole a significant amount of Rolex watches and jewelry.
Less than two weeks later, this group, along with Tony Young, also robbed the Kay Jewelers located at the Houston Premium Outlet Mall. While Jones, Cooper and Young accosted the employees at gunpoint, Lucious sat outside acting as a lookout. McQueen distracted the security guard while the robbery occurred. They again stole numerous watches and jewelry.
On March 3, 2016, Lontay Young, Washington, Gray and Lavergne also held up the ANF Auto Finance on North Shepherd Drive. They entered the business acting as customers until Gray pulled out a gun. They then stole cash and property of the business, employees and customers.
Lontay Young later proceeded to commit two more robberies. Those included the March 9, 2016, robbery of Cash America Pawn on Jensen Drive with Waldrup and the Affordable Furniture store on the North Freeway on March 17, 2016, along with Jones and White-Leonard.
At the time of the furniture store robbery, authorities arrived on scene and shots were fired.
All have been and will remain in custody.
The Bureau of Alcohol, Tobacco and Firearms conducted the investigation in conjunction with police departments in Houston and Austin and Harris County Sheriff’s Office. Assistant U.S. Attorneys Richard Hanes and Heather Winter are prosecuting the case.
Schenectady Man Sentenced to 84 Months on Drug and Gun ConvictionsRead the Press Release
ALBANY, NEW YORK – Brandon Prawl, age 28, of Schenectady, New York, was sentenced today to 84 months in prison for distributing heroin, possessing heroin with the intent to distribute, and possessing a firearm in furtherance of a drug trafficking crime.
The announcement was made by 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 New York State Police Acting Superintendent Steven A. Nigrelli.
A jury voted to convict Prawl on November 9, 2022, following a 3-day jury trial. The trial evidence established that on four dates in September 2019, Prawl distributed heroin out of a residence in Schenectady. On October 4, 2019, Prawl was found in possession of a .45 caliber pistol and loaded magazine, more than 21 grams of heroin, and drug distribution paraphernalia at the same residence. The jury concluded that Prawl possessed the heroin for distribution, and the firearm in furtherance of his drug trafficking activities.
United States District Judge Glenn T. Suddaby also imposed a 3-year term of post-imprisonment supervised release.
ATF and New York State Police investigated the case, and Assistant United States Attorneys Ashlyn Miranda and Emmet O’Hanlon prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Salem Drug Trafficker Sentenced to Federal PrisonRead the Press Release
MEDFORD, Ore.—On March 29, 2023, a Salem, Oregon man was sentenced to more than 12 years in federal prison after he was caught transporting several dozen pounds of methamphetamine.
David Contreras, aka Jorge Castillo-Gomez, 51, was sentenced to 151 months in federal prison and five years’ supervised release.
According to court documents, on April 9, 2019, Contreras and an accomplice were traveling north on Interstate 5 near Central Point, Oregon when they were stopped by an Oregon State Police (OSP) trooper for speeding. As the trooper approached the vehicle, he observed a cardboard box inside containing a clear package with a substance resembling methamphetamine. While the trooper processed the traffic violation, he determined that the driver had a suspended Oregon driver’s license and Contreras, a passenger, did not possess a license.
After an OSP narcotics canine alerted on the vehicle, troopers conducted a search. Inside the cardboard box they found several packages containing more than 33 pounds of methamphetamine. In addition to the drugs, they located a firearm concealed on the driver’s person, more than $3,000 in cash on Contreras’ person, and an additional $6,000 in cash in a backpack. The driver explained that he reported to Contreras who provided the troopers with a false name and identification documents.
On May 1, 2019, a federal grand jury in Medford returned an indictment charging Contreras and his accomplice with possessing with intent to distribute methamphetamine. On November 8, 2021, Contreras pleaded guilty to the single charge.
This case was investigated by OSP with assistance from Homeland Security Investigations (HSI). It was prosecuted by Marco A. Boccato, Assistant U.S. Attorney for the District of Oregon.
St. Croix Man Sentenced to 12 Months on a Felon in Possession of a Firearm ConvictionRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Moises Figueroa, Jr., age 48, of St. Croix, was sentenced by District Court Judge Wilma A. Lewis to 12 months imprisonment on his conviction of a Felon in Possession of a Firearm. Judge Lewis also sentenced Figueroa to 2 years of supervised release, a fine of $2,000.00, and a special assessment of $100.
According to court documents, on May 26, 2021, federal law enforcement agents conducted a controlled delivery at the Frederiksted Post Office in St. Croix of two packages containing firearms. Figueroa was arrested after he collected both packages at which time federal agents seized a loaded Taurus semi-automatic pistol from Figueroa’s waistband. Figueroa was charged with illegally possessing the Taurus semi-automatic pistol knowing that he was convicted of a felony in 2007, namely Unauthorized Possession of a Firearm, in People of the Virgin Islands v. Moises Figueroa, SX-06-CR-504.
The United States Postal Inspection Service, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, and Firearms investigated the case, and Assistant United States Attorney Daniel H. Huston prosecuted the case. This case was part of the Department of Justice’s Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. For more information on the Department of Justice’s Project Safe Neighborhoods, please see: https://www.justice.gov/psn.
St. Croix Man Sentenced to 12 Months on a Felon in Possession of a Firearm ConvictionRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Moises Figueroa, Jr., age 48, of St. Croix, was sentenced by District Court Judge Wilma A. Lewis to 12 months imprisonment on his conviction of a Felon in Possession of a Firearm. Judge Lewis also sentenced Figueroa to 2 years of supervised release, a fine of $2,000.00, and a special assessment of $100.
According to court documents, on May 26, 2021, federal law enforcement agents conducted a controlled delivery at the Frederiksted Post Office in St. Croix of two packages containing firearms. Figueroa was arrested after he collected both packages at which time federal agents seized a loaded Taurus semi-automatic pistol from Figueroa’s waistband. Figueroa was charged with illegally possessing the Taurus semi-automatic pistol knowing that he was convicted of a felony in 2007, namely Unauthorized Possession of a Firearm, in People of the Virgin Islands v. Moises Figueroa, SX-06-CR-504.
The United States Postal Inspection Service, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, and Firearms investigated the case, and Assistant United States Attorney Daniel H. Huston prosecuted the case. This case was part of the Department of Justice’s Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. For more information on the Department of Justice’s Project Safe Neighborhoods, please see: https://www.justice.gov/psn.
Raleigh Man Sentenced for Healthcare Fraud, Wire Fraud, and Identity Theft from Elderly and Disabled Medicare BeneficiariesRead the Press Release
RALEIGH, N.C. – A Raleigh man was sentenced today to 204 months in prison for conspiracy to commit healthcare fraud, healthcare fraud, ten counts of wire fraud and ten counts of aggravated identity theft. On October 19, 2022, Furman Alexander Ford, 53, was convicted by jury trial of all of the charges.
“We live in a generous nation, but some choose to feed their greed at the expense of those in need. This defendant stole the identities of Medicare beneficiaries to defraud a taxpayer-funded program intended to help elderly, poor and disabled citizens,” said U.S. Attorney Michael Easley. “This 17-year sentence is fitting for a defendant who stole from the most vulnerable in our society.”
According to court records and evidence presented at trial, Furman Alexander Ford, was the owner and operator of IAM Healthcare based in Raleigh, North Carolina. The investigation and trial evidence showed that Ford oversaw a scheme to trick group homes located in Wake, Durham and Johnston Counties into providing client Medicare information. Ford also targeted small community churches in Bladen County by offering food in exchange for Medicare information. Ford then used the information from these schemes to submit Medicare claims on behalf of these elderly and disabled beneficiaries who did not receive any services from IAM Healthcare. Specifically, Ford submitted fraudulent claims from December, 2018 to February, 2020, to Medicare for reimbursement. In total, Ford caused more than $500,000 to be billed to Medicare through IAM Healthcare. At least 74 beneficiaries whose information had been stolen had claims submitted to Medicare for services not rendered. Those claims alone totaled at least $251,508, of which $166,928 was paid to Ford.
In reflecting upon the need to deter Medicare providers from abusing the trust placed in them by taxpayers, the Court stated, “if they are caught, the consequences will be time in a penitentiary, and that’s fair and that’s just, and that what is going to happen today.”
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Department of Health cand Human Services – Office of Inspector General (HHS-OIG) and the Federal Bureau of Investigation (FBI) investigated the case, and Assistant U.S. Attorneys Ethan A. Ontjes and William Gilmore prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00351-FL-1.
Raleigh County Man Sentenced to More Than 12 Years in Prison for Fentanyl CrimeRead the Press Release
BECKLEY, W.Va. – Sean Hafesh, 34, of Daniels, Raleigh County, was sentenced today to 12 years and seven months in prison, to be followed by three years of supervised release, for distributing fentanyl.
According to court documents and statements made in court, on October 6, 2021, Hafesh sold approximately 3.7 grams of suspected heroin to a confidential informant at a residence in Daniels. Hafesh admitted to that transaction and further admitted to selling additional quantities of suspected heroin to confidential informants on two other occasions in October 2021
On October 13, 2021, law enforcement officers executed a search warrant at the Daniels residence and found 355 grams of suspected heroin, 24.5 grams of methamphetamine, a revolver, and a bolt-action rifle. The West Virginia State Police Forensic Laboratory confirmed the suspected heroin from the controlled buys and the search contained fentanyl.
On October 21, 2021, a law enforcement officer conducted a traffic stop of a vehicle driven by Hafesh, who admitted to possessing 36 grams of heroin and $1,460 found by the officer on Hafesh’s person and in the vehicle.
On April 7, 2022, law enforcement officers executed a search warrant at a residence in Beaver, Raleigh County, where Hafesh was present. Officers found 56 grams of suspected heroin, 33 grams of methamphetamine, 62 grams of cocaine base, also known as “crack,” several firearms and $1,042. The suspected heroin found during the search was later determined to contain fentanyl. Hafesh admitted to telling officers on the day of that search that he had been selling a significant amount of suspected heroin during the previous several months.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Beckley/Raleigh County Drug and Violent Crime Unit, and the West Virginia State Police.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Andrew D. Isabell and former Assistant United States Attorney Alex Hamner are prosecuting 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. 5:22-cr-68.
###
Operation Smoke and Mirrors Update: Charleston Man Pleads Guilty to Role in Methamphetamine Trafficking OrganizationRead the Press Release
CHARLESTON, W.Va. – Jasper Wemh, 38, of Charleston, pleaded guilty today to conspiracy to distribute 50 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, Wemh admitted to conspiring with several other people to distribute methamphetamine for several months prior to December 5, 2022. Wemh obtained methamphetamine from his supplier on consignment and often provided methamphetamine to his customers on consignment, knowing they were redistributing the methamphetamine he sold them.
Wemh further admitted to obtaining several pounds of methamphetamine from his supplier on December 3, 2022. Wemh distributed the methamphetamine to multiple customers and paid his supplier $250,000 over time from the proceeds from distributing the supplier’s methamphetamine.
Wemh also admitted to conspiring with other people to distribute cocaine base, also known as “crack,” that he received from his supplier on occasions prior to December 3, 2022. Wemh stored quantities of methamphetamine, crack and cocaine at a Greenbrier Street residence in Charleston. Wemh admitted that he frequently obtained these drugs from a safe in the residence, and that a pistol was kept in that safe as well.
Wemh is scheduled to be sentenced on July 20, 2023 and faces a mandatory minimum of 10 years to life in prison, five years and up to a lifetime of supervised release, and a $10 million fine.
Wemh 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 has seized of well over 200 pounds of methamphetamine as well as 28 pounds of cocaine, 20 pounds of fentanyl, 18 firearms and $747,000 in cash.
Co-defendant Larry Wayne Legg, 55, of Charleston, pleaded guilty to conspiracy to distribute methamphetamine on March 6, 2023. Another co-defendant, Justin Allen Bowen, 40, of Charleston, pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine on February 23, 2023. The remaining defendants are scheduled for trial. 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 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-4.
###
Omaha Man Sentenced to 51 Months for Being a Felon in Possession of a FirearmRead the Press Release
United States Attorney Steven Russell announced that MacAnthony Gordon, 37, of Omaha, Nebraska, was sentenced today in federal court in Omaha for being a felon in possession of a firearm. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Gordon to 51 months’ imprisonment. There is no parole in the federal system. After Gordon’s release from prison, he will begin a three-year term of supervised release.
On April 4, 2021, Omaha police were called to an apartment building for a report of shots fired. Arriving officers saw a man matching the suspect description sitting on the porch. The man stood up and entered the apartment building. A search of the area discovered a spent shotgun shell casing in the building’s parking lot near a vehicle with apparent fresh damage from a shotgun. Police secured the building and called out the occupants, one of which was Gordon. A search of one of the apartment units uncovered a Mossberg 12-gauge shotgun in Gordon’s bedroom along with shotgun ammunition that matched the shell casing from the parking lot. During a post-arrest interview, Gordon denied the shooting but admitted to possessing the shotgun. Gordon has felony convictions for possession of a controlled substance, possession of a defaced firearm, and domestic assault 2nd degree. As a result of the felony convictions, he is prohibited from possessing firearms.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: the Omaha Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. For more information about Project Guardian, please see www.justice.gov/archives/ag/about-project-guardian.
Omaha Man Sentenced to 130 Months for Distributing Child PornographyRead the Press Release
United States Attorney Steven Russell announced that Davonte Andrews, 27, of Omaha, Nebraska, was sentenced today in federal court in Omaha for distributing child pornography. United States District Judge Brian C. Buescher sentenced Andrews to 130 months of imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Andrews will begin a 5-year term of supervised release.
On July 18, 2020, Andrews distributed approximately 11 images of child pornography over the internet via his Discord account. The Discord account contained chat messages between Andrews and another user concerning child pornography. On January 21, 2021, agents searched Andrews’s Omaha residence and located child pornography on his digital devices. There was approximately 905 images and 52 videos of child pornography depicting children between the ages of three and five years old, and 196 images and 58 videos depicting children between the ages of six and eight years old. The child pornography depicted children as young as two years old.
This case was investigated by the Federal Bureau of Investigation and was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Omaha Man Found Asleep in Vehicle Illegally Possessing FirearmsRead the Press Release
United States Attorney Steven Russell announced that Cortez Davieon Grennell, 22, of Omaha, Nebraska, was sentenced on March 29, 2023, in federal court in Omaha, for Prohibited Person in Possession of Firearms. United States District Judge Brian C. Buescher sentenced Grennell to 46 months’ imprisonment. He was also ordered to serve three years of supervised release after his release from prison. There is no parole in the federal system.
On April 11, 2022, law enforcement was dispatched to North 34th Avenue and Larimore in Omaha regarding a vehicle that had been parked and running for two hours. Officers approached the vehicle and observed Grennell alone and asleep. When law enforcement opened the door, they observed in plain view a sawed-off shotgun and handgun. Grennell admitted he was addicted to methamphetamine and should not have been in possession of the firearms. It is a federal crime for someone that is an unlawful user of, or addicted to, a controlled substance to possess a firearm.
This case was investigated by the Omaha Police Department. 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.
Ohio Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Kentrell Dupri McKenzie, 22, of Akron, Ohio, pleaded guilty today to possession with intent to distribute methamphetamine.
According to court documents and statements made in court, on February 9, 2022, McKenzie was a passenger in a vehicle pulled over by a law enforcement officer on Interstate 77 in Jackson County. The officer detected the odor of marijuana, prompting a search of the vehicle. Officers found approximately 373 grams of methamphetamine in a sealed bag hidden inside the gear shift area. McKenzie admitted to possessing the methamphetamine.
McKenzie is scheduled to be sentenced on July 13, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the Ripley Police Department.
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Ryan A. Keefe is prosecuting 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-30.
###
Odessa Woman Sentenced for False Statements During Firearm PurchasesRead the Press Release
MIDLAND, Texas – An Odessa woman was sentenced in a federal court in Midland Wednesday to 18 months in prison for providing false statements during purchases of firearms.
According to court documents, Delma Vitela, 45, purchased at least six firearms between December 2020 and March 2022 from various gun stores in the Midland/Odessa area for her then-boyfriend, a Mexican national. Vitela's then-boyfriend was prohibited from possessing firearms based on his immigration status. By representing on the purchase forms that she was the intended buyer of the guns, Vitela knowingly made false or fictitious written declarations when purchasing the firearms.
In March 2022, an individual was stopped by law enforcement in Laredo, Texas while attempting to cross into Nuevo Laredo, Mexico. This individual had in his possession two firearms that Vitela had straw purchased, one of which she’d purchased less than two weeks prior.
Vitela was arrested by federal authorities on Oct. 21, 2022 and was released on bond on Oct. 26.
“This defendant’s conduct posed a serious threat to the safety and security of people in our communities on both sides of the U.S./Mexico border,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “I am thankful our law enforcement partners were able to locate and recover some of the firearms before they reached Mexico.”
“Straw purchasing is not an act of love; it is an act that fuels violence across our country and our neighbors,” said Special Agent in Charge Jeffrey C. Boshek II for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Dallas Field Division. “ATF and our partners in the Permian Basin are steadfast in our fight to keep firearms out of the hands of those that shouldn’t have them. Ms. Vitela thought she was being a good girlfriend when she was actually helping to arm vicious Mexican drug cartels. I hope that others don’t make this same mistake.”
ATF investigated the case.
Assistant U.S. Attorney Joe Mahoney prosecuted the case.
###
North Carolina Man Sentenced for Possessing a Firearm as a FelonRead the Press Release
ALBANY, NEW YORK – Cameron Robinson, age 25, of Grover, North Carolina, was sentenced today to 27 months in prison for possessing a firearm as a previously convicted felon.
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 Rotterdam Police Chief Michael S. Brown made the announcement.
As part of his guilty plea, Robinson admitted that on May 4, 2022, he possessed a Taurus Model G2C 9mm semi-automatic pistol. That morning, in Rotterdam, Robinson had been shot by another person using the Taurus pistol. Robinson was prohibited from possessing the firearm due to a previous North Carolina felony conviction for Assault with a Deadly Weapon Inflicting Serious Injury. Robinson was on parole for that crime when he committed this offense.
ATF and the Rotterdam Police Department investigated this case. Assistant United States Attorneys Rachel Williams and Allen J. Vickey prosecuted this case as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department 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.
Nine-Time Convicted Felon Federally Indicted for Possession of A FirearmRead the Press Release
Ocala, Florida –United States Attorney Roger B. Handberg announces the return of an indictment charging Brady Williams (27, Ocala) with possession of a firearm by a convicted felon. If convicted, Williams faces a maximum penalty of 15 years in federal prison.
According to the indictment, on January 13, 2023, Williams knowingly possessed a Heritage Arms firearm. Williams is a nine-time convicted felon, including offenses of fleeing or attempting to elude law enforcement, grand theft of a motor vehicle, and owning or operating a chop shop. As a convicted felon, he is prohibited from possessing firearms or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Lake County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
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.
Newport News Man Sentenced for Unlawful Purchase of a Firearm Used in Three Local ShootingsRead the Press Release
NEWPORT NEWS, Va. –A Newport News man was sentenced today to 5 years in prison for the unlawful purchase and possession of a firearm that was used in three community shootings.
According to court documents, Khalil Rashad Armstrong, 22, asked his older cousin to purchase a handgun for Armstrong. Only 20 years old at the time, Armstrong was not old enough to purchase a handgun himself. Armstrong gave his cousin the money to purchase the firearm and selected the make and model. Around February 21, 2021, Armstrong’s cousin made false oral and written statements to a local licensed firearm dealer in order to straw-purchase the firearm for Armstrong. The firearm was recovered by police on July 27, 2021, at the crime scene of a local rival gang shootout approximately 125 days after it was purchased. Forensic ballistics confirmed the firearm had been used in two other shootings, once on May 2, 2021, resulting in property damage, and once on February 21, 2021, the same day it was purchased.
On May 12, Armstrong’s cousin and co-defendant, Destiny Na’iymah Davis, 23, of Newport News, pleaded guilty to a felony for her role in the unlawful straw-purchase of the firearm. According to court documents, the United States recommended a non-custodial sentence for Davis due to mitigating circumstances and her swift acceptance of responsibility for her role in the offense. Davis was sentenced to 18 months’ probation on December 5, 2022.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, Mike Weddel, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by U.S. District Judge Elizabeth Wilson Hanes.
Assistant U.S. Attorney Peter Osyf prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:22-cr-12.
New Haven Woman Sentenced to Prison for Lying to Federal Grand Jury about Knowledge of Kidnapping and MurdersRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that LAQUASIA SAMMS, also known as “Quasia,” 28, of New Haven, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 90 days of imprisonment, followed by two years of supervised release, for making false statements before a federal grand jury in connection with an investigation into the kidnapping and murder of two individuals, and the related murder of a third individual, in November 2015.
According to court documents and statements made in court, on November 16, 2015, Edward Michael Parks was in Samms’ apartment on Shelton Avenue in New Haven to conduct an illegal sale of firearms. Samms, Damian Connor, and Tamar Lawrence were also present in the apartment. When another individual left the apartment with firearms that he had not paid for, Parks, who was armed, held Connor and Lawrence against their will. Parks collected money and valuables from Connor and Lawrence, and then forced them to travel in Connor’s car to Hamden where Connor said he could get more money. They were followed in another vehicle by Devante Williams and another individual. After the vehicles arrived at 676 Mix Avenue in Hamden, Parks shot and killed Connor and Lawrence. Parks then left the scene with Williams and others in the second vehicle and returned to New Haven.
When Parks appeared to believe that Williams was anxious about the murders of Connor and Lawrence, Parks shot and killed Williams in the area of Sherman Court in New Haven.
During the kidnapping, and after the three victims were murdered, Samms sent several text messages to another individual about what was happening and her reaction to the events.
On March 19, 2019, Samms appeared before a grand jury in New Haven. During her testimony, Samms repeatedly claimed that she did not remember sending any text messages related to the gun transaction, the kidnapping, or the murder of the three individuals.
On October 1, 2020, Samms pleaded guilty, admitting that she sent the text messages, and that she withheld other information that was sought by the federal grand jury.
Samms, who is released on bond, is required to report to prison on May 11.
On January 19, 2023, a jury found Parks, also known as “Lee” and “Trouble,” of Raleigh, North Carolina, guilty of two counts of kidnapping resulting in death, and one count of witness tampering by killing. At sentencing, he faces a mandatory term of imprisonment of life.
This investigation has been conducted by the Federal Bureau of Investigation, the Hamden Police Department and New Haven Police Department.
The case is being prosecuted by Assistant U.S. Attorneys Nathaniel J. Gentile and A. Reed Durham, and Assistant State’s Attorney Seth Garbarsky, who has been cross-designated as a Special Assistant U.S. Attorney in this matter.
Muskogee Resident Sentenced to Life for Sexually Abusing Child in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced that Joseph Stanley Harjo, age 40, of Muskogee, Oklahoma, was sentenced to life in federal prison for Aggravated Sexual Abuse in Indian Country. Harjo was found guilty of the offense by a federal jury in November 2021.
At trial, the United States presented evidence that in June 2016, Harjo sexually abused a six-year-old child. Days later, the child disclosed the abuse and provided further details during a forensic interview. Five additional witnesses testified at trial that Harjo sexually assaulted each of them when they were between the ages of four and twelve.
The case was investigated by the Muskogee Police Department and the Federal Bureau of Investigation.
“The defendant is clearly a sexual predator, and the life sentence imposed by the Court ensures he will never be able to victimize another child,” said United States Attorney Christopher J. Wilson. “I am thankful for the cooperative efforts of our law enforcement partners in this case. Their investigative work enabled my Assistant United States Attorneys to pursue the prosecution of the defendant and deliver justice to those he victimized.”
“Our children are our most vulnerable citizens, and we will do everything in our power to protect them by getting predators like Harjo off the street,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “His life sentence stands as a testament to the dedication and collaboration of the FBI, the Muskogee Police Department, the Oklahoma Department of Human Services, and the U.S. Attorney’s Office to ensure justice is served for victims of the most serious crimes in Indian Country.”
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the defendant is a member of a federally recognized Indian tribe and the crime occurred in Muskogee County, within the boundaries of the Muscogee (Creek) Nation Reservation, and within the Eastern District of Oklahoma.
The Honorable Ronald A. White, U.S. District Judge of the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the sentencing hearing. Harjo was remanded to the custody of the United States Marshal to await transportation to a United States Bureau of Prisons facility to serve his non-paroleable sentence.
Assistant United States Attorneys Anthony Marek and Morgan Muzljakovich represented the United States.
Morristown Man Faces Federal Drug Charge for Violation of the Controlled Substances ActRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont stated that on March 23, 2023, Michael Ulrich, 32, of Morristown, Vermont, was charged in an indictment with knowingly allowing his residence to be a drug-involved premises at which controlled substances were stored and distributed. The defendant was arraigned on the indictment on March 30, 2023, before U.S. Magistrate Judge Kevin J. Doyle, and is being held in the custody of the U.S. Marshals Service pending further proceedings.
According to court records, on February 28, 2023, law enforcement executed a state search warrant at Ulrich’s residence in Morristown, Vermont. Inside of the house, investigators found glassine bags intended for the packaging of controlled substances, a digital scale used to weigh quantities of controlled substances, more than 50 grams of cocaine, and a firearm.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Morristown Police Department, the Stowe Police Department, the Lamoille County Sheriff’s Department, and the Vermont State Police.
If convicted, Ulrich faces up to twenty years of imprisonment. The actual sentence, however, would be determined with reference to the advisory Federal Sentencing Guidelines. The United States Attorney emphasizes that the charges contained in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty.
The United States is represented in this matter by Assistant U.S. Attorney Zachary B. Stendig. Michael Ulrich is represented by Mary Nerino, Esq. of the Office of the Federal Public Defender.
Milpitas Car Exporter Pleads Guilty to Crime in Scheme to Avoid Income Taxes on Multi-Million Dollar IncomeRead the Press Release
OAKLAND –Jie Suo, owner of a South Bay luxury car exporting business, pleaded guilty today to interfering with the administration of internal revenue laws stemming from statements she made to IRS investigators to corruptly impede their investigation into her multi-million dollar business she failed to disclose in her tax filings to avoiding paying several years’ income taxes for the business, announced United States Attorney Ismail J. Ramsey and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Darren Lian. The guilty plea was accepted by the Hon. Haywood S. Gilliam, Jr., United States District Judge.
Suo, 56, of Milpitas, Calif., is a sole proprietor who owned and operated Golden Source Trading and Agneau Mobility—two companies that exported luxury vehicles to China. According to the plea agreement, Suo admitted that the business earned over $18 million in gross receipts from 2011-2017; however, rather than pay applicable taxes on the business income, Suo embarked on a scheme to avoid paying applicable income taxes and then made statements to federal agents to impede and hinder their investigation into her earnings.
Suo admitted that she did not disclose the existence of the businesses on four tax returns that she signed and filed with the IRS; indeed, Suo acknowledged that she paid nothing in federal income tax for the calendar years 2013 through 2016.
The plea agreement describes how Suo spoke with federal investigators by telephone on May 16, 2019, and in person on May 23, 2019, and made statements to hinder the IRS investigation with the intent of avoiding criminal prosecution from the pending IRS investigation. Specifically, after agreeing to speak with the IRS investigators voluntarily and after repeatedly being reminded of her obligation to be truthful, Suo denied that her business was profitable and made numerous corrupt statements to minimize her conduct and portray herself as a victim of loan sharks, poor investments, and poor advice. For example, Suo stated that she did not employ her son for his export car business; that she operated the businesses at a loss; that she reported her business sales to her tax preparer; and that the money used to purchase a home in Pittsburg was provided by a loan. Suo acknowledged in her plea agreement the truth of the facts she denied and her corrupt intent in hindering the investigation. Suo further acknowledged that, in contrast to the statements she made to the IRS investigators, her business was sufficiently profitable that she owed nearly $1 million, $997,673, in taxes to the federal government.
On March 27, 2023, Suo was charged by Superseding Information with four counts of making and subscribing a false tax return, in violation of 26 U.S.C. § 7206(1), and one count of corrupt endeavor to obstruct or impede the administration of Internal Revenue laws, in violation of 26, U.S.C. § 7212(a). Pursuant to today’s plea agreement, Suo pleaded guilty to the obstruction charge. If Suo complies with the plea agreement, the remaining counts will be dismissed at sentencing.
Suo faces a maximum statutory sentence of up to three years in prison. In addition, as part of sentencing, the court also may order Suo to pay a fine of up to $250,000, to pay restitution of at least $997,673, and to serve an additional period of supervised release of up to a year to begin after her prison term. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Judge Gilliam scheduled Suo sentencing hearing for July 12, 2023.
Assistant United States Attorneys Thomas Green and Maya Karwande are prosecuting the case with the assistance of Jasmine Sanders and Kay Konopaske. The prosecution is the result of an investigation by the IRS-CI.Methamphetamine Wholesaler Is Sentenced to More Than 15 Years in PrisonRead the Press Release
ASHEVILLE, N.C. – Arthur Shane Douville, 33, of Canton, N.C., was sentenced to 188 months in prison today followed by three years of supervised release for distributing methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to documents filed with the court and today’s sentencing hearing, law enforcement investigating methamphetamine trafficking rings operating in Haywood, Jackson and Buncombe Counties identified Douville as a wholesale methamphetamine trafficker who supplied local drug distributors. Court records show that in May 2020, Douville was driving through Haywood County, after he had travelled to Georgia to buy methamphetamine. Law enforcement stopped Douville’s vehicle, and over the course of the traffic stop they seized nearly two ounces of methamphetamine hidden in a false vehicle compartment. Court records show that the methamphetamine seized was part of a larger eight-ounce quantity obtained in Georgia, some of which Douville had already distributed. Douville had made a similar trip one week earlier, obtaining four ounces of methamphetamine at that time.
At today’s sentencing hearing, U.S. District Judge Martin Reidinger enhanced Douville’s sentence after he found that the defendant had attempted to obstruct justice and derail his prosecution by producing forged letters and fake messages supposedly written and sent by a co-defendant, in which the co-defendant allegedly admitted that the seized methamphetamine belonged to him and not Douville.
On October 26, 2022, Douville pleaded guilty to possession with intent to distribute methamphetamine. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
U.S. Attorney King credited today’s sentence to an investigation led by the Western District’s Organized Crime Drug Enforcement Task Force (OCDETF) and thanked the Drug Enforcement Administration and the Haywood County Sheriff’s Office for their investigative efforts.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Assistant United States Attorney Thomas Kent, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Media Advisory – Press ConferenceRead the Press Release
RALEIGH, N.C. – United States Attorney Michael Easley, along with representatives from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Rocky Mount Police Department, and the Nash and Edgecombe Sheriffs’ Offices will hold a press conference TOMORROW, Friday, March 31 at 2:00 p.m. to announce the sentence of Tyrone Foreman, a Rocky Mount leader of the G-Shine Blood gang, who was convicted of drug trafficking fentanyl and COVID-19 pandemic relief fraud. Officials will also provide an update on the violent crime initiative launched last year in the Rocky Mount area.
WHERE: Terry Sanford Federal Building, Room 158, 310 New Bern Avenue, Raleigh, NC 27601
WHEN: Friday, March 31 at 2:00 p.m.
Media: Please arrive at the courthouse by 1:30 for set up.
Credentialed members of the media are invited to attend. For additional information, please e-mail Don Connelly at [email protected].
Please RSVP your intentions to attend the event.
Mark Ridley-Thomas Found Guilty of Bribery and Fraud Involving Benefits for Son in Exchange for Lucrative County ContractsRead the Press Release
LOS ANGELES – Long-time politician Mark Ridley-Thomas was found guilty by a jury today of bribery in a scheme in which his son received substantial benefits from the University of Southern California in exchange for Ridley-Thomas’ political support for lucrative county contracts and contract amendments with the university while he served on the Los Angeles County Board of Supervisors.
Ridley-Thomas, 68, of Los Angeles, was found guilty of seven felonies: one count of conspiracy, one count of bribery, one count of honest services mail fraud, and four counts of honest services wire fraud.
Ridley-Thomas’ political career spans several decades, including in the California State Legislature and, most recently, in the Los Angeles City Council. He was suspended in October 2021 from the Los Angeles City Council after being indicted in this case.
“When elected leaders engage in acts of corruption, our community suffers immense damage. Ridley-Thomas engaged in a corrupt conspiracy with a university dean to steer taxpayer-funded contracts to the school in exchange for benefits for his son,” said United States Attorney Martin Estrada. “Today’s verdict sends a clear message to public officials that my office will vigorously investigate and prosecute those who abuse their power and thereby breach the public trust.”
“Public officials are elected to be a voice and a vote for the people they're paid to represent, not for their own personal gain,” said Donald Alway, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “Allegations of public malfeasance must and will be addressed by the FBI before further corrupt actions erode confidence in our public institutions.”
According to evidence presented at a 16-day trial, from May 2017 to August 2018, Ridley-Thomas engaged in a criminal conspiracy with Marilyn Louise Flynn, 84, of Los Feliz, formerly a tenured professor and the dean of USC’s School of Social Work.
In December 2017, citing health issues, Ridley-Thomas’ son abruptly resigned from the California State Assembly. At the time of his resignation, Ridley-Thomas’ son was the subject of a sexual harassment investigation in the Assembly, a fact not known by either USC or the public. Emails and testimony at trial, prosecutors argued, showed that the reason given for the resignation was pretextual. Behind the scenes, Ridley-Thomas was orchestrating a public relations campaign to convince the public his son was ill, and a legal team was put in place to stall the Assembly’s investigation indefinitely. Prosecutors argued that the evidence at trial demonstrated that part of Ridley-Thomas’ public relations plan included finding his son prestigious degrees, titles, and paying jobs.
During the conspiracy’s course, Flynn ultimately provided Ridley-Thomas and his son benefits, including graduate school admission to pursue a dual master’s degree, a full-tuition scholarship, a paid professorship, and a mechanism for Ridley-Thomas to funnel $100,000 of his campaign funds through the university to a non-profit to be operated by the son – Policy, Research & Practice Initiative (PRPI).
In exchange, Ridley-Thomas supported contracts involving the Social Work School, including contracts to provide services to the Department of Children and Family Services (DCFS) and the Probation Department, as well as an amendment to a contract with the Department of Mental Health (DMH) that could help bring the school potentially millions of dollars in new revenue.
By funneling the payment through USC, Ridley-Thomas and Flynn attempted to disguise the true source of a $100,000 payment to make it appear as though USC, not Ridley-Thomas, was the generous benefactor supporting Ridley-Thomas’ son and PRPI. Had it known this fact, USC would not have approved the $100,000 payment.
For his part, Ridley-Thomas delivered on his end of the corrupt bargain. He voted on three county proposals that Flynn had sought to shore up her school’s shoddy financial situation – it faced a multimillion-dollar budget deficit – including a vote approving an amended Telehealth agreement with more lucrative terms for the Social Work School. He also sought to influence key county decisionmakers associated with these approvals and made sure Flynn knew of his efforts.
United States District Judge Dale S. Fischer scheduled an August 14 sentencing hearing, at which time Ridley-Thomas will face a statutory maximum sentence of five years in federal prison on the conspiracy count, up to 10 years in federal prison for the bribery count, and up to 20 years in federal prison for each honest services fraud count.
Ridley-Thomas was found not guilty of one count of honest services mail fraud and 11 counts of honest services wire fraud.
Flynn pleaded guilty in September 2022 to one count of bribery. Her sentencing hearing is scheduled for June 26. Flynn faces a statutory maximum sentence of 10 years in federal prison. Prosecutors have agreed to recommend she satisfy her custodial term by way of home confinement and have agreed to seek a fine against her of no more than $150,000.
The FBI investigated this matter.
Assistant United States Attorney Lindsey Greer Dotson, Chief of the Public Corruption and Civil Rights Section, and Assistant United States Attorneys Thomas F. Rybarczyk and Michael J. Morse, also of the Public Corruption and Civil Rights Section, are prosecuting this case.
Man Who Ran Twitter, Reddit and Telegram Accounts Selling Intimate Photos Hacked from Female Victims’ Accounts Charged with Possession, Distribution and Sale of Child Pornography; Cyberstalking; and Conspiracy to Hack ComputersRead the Press Release
SAN JUAN, Puerto Rico – On March 29, 2023, a grand jury charged Brian Luis Valentín-Ramos with five counts related to the possession, distribution and sale of child pornography; conspiring to illegally obtain information from protected computers; and cyberstalking, all in violation of 18 U.S.C. §§ 1030(a)(2), 2252(a)(4)(B), 2252A(a)(2), 2252A(a)(4)(B), and 2261A(2)(B), announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
According to the Government’s allegations, since at least 2020 through 2023, Valentín-Ramos conspired with others to gain unauthorized access to social media accounts, including SnapChat, of female victims primarily in Puerto Rico. These included victims at the University of Puerto Rico. The conspirators would then steal intimate pictures of the victims from those accounts, which Valentín-Ramos would publicize and sell using Twitter, Reddit and Telegram. Valentín-Ramos would claim that “I sell my content because it was obtained via hacking making it exclusive.”
Valentín-Ramos is further charged with cyberstalking one of his adult victims.
Valentín-Ramos also possessed, distributed, and sold sexually explicit photos of two female minors, including one who was fifteen years old.
U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico; and Joseph González, Special Agent in Charge of the FBI San Juan Field Office made the announcement.
The sale and distribution of child pornography charges carry a mandatory minimum of five years in prison and a maximum of twenty years. Cyberstalking carries maximum sentence of five years of imprisonment. Possession of child pornography carries a maximum of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The defendant was arrested on Friday, March 24, and ordered detained pending trial due to an adjudication that he is a danger to the community.
Assistant U.S. Attorney Jeanette Collazo is in charge of the prosecution of the case. FBI Special Agent Christian Nieves of the San Juan Cyber Division is in charge of the investigation.
# # #
Kentuckiana Physician and Nurse Practitioner Sentenced for Conspiracy to Distribute Controlled Substances, Conspiracy to Commit Health Care Fraud, Health Care Fraud, and Conspiracy to Commit Money LaunderingRead the Press Release
Louisville, KY – A local physician and an advanced practice registered nurse were sentenced yesterday on conspiracy to unlawfully distribute and dispense controlled substances, conspiracy to commit health care fraud, health care fraud, and conspiracy to commit money laundering charges. The physician’s medical practice was also sentenced for conspiracy to unlawfully distribute and dispense controlled substances and conspiracy to commit health care fraud.
On March 29, 2023, physician Jeffrey Campbell, age 64, was sentenced in the U.S. District Court for the Western District of Kentucky to 105 months in prison, followed by a 3-year term of supervised release, for conspiracy to unlawfully distribute and dispense controlled substances, conspiracy to commit health care fraud, health care fraud, and conspiracy to commit money laundering. Advanced practice registered nurse Mark Dyer, age 54, was sentenced to 60 months in prison, followed by a 3-year term of supervised release, for conspiracy to unlawfully distribute and dispense controlled substances, conspiracy to commit health care fraud, health care fraud, and conspiracy to commit money laundering. There is no parole in the federal system.
Additionally, Campbell’s medical practice, Physicians Primary Care, PLLC (PPC) was ordered to pay a fine of $1,000,000 for conspiracy to unlawfully distribute and dispense controlled substances and conspiracy to commit health care fraud.
According to court documents and evidence presented during the jury trial in May and June of 2021, Campbell, Dyer, and PPC conspired to unlawfully distribute and dispense controlled substances between January 1, 2009, and December 1, 2016. Campbell, Dyer, and PPC also conspired to commit health care fraud for falsely and fraudulently billing Kentucky Medicaid (Passport), Indiana Medicaid, Tricare, Medicare, and other health care benefit programs by submitting claims for physical therapy, counseling and exercise services using evaluation and management codes to obtain higher reimbursement. Campbell and Dyer also conspired to commit money laundering for paying and/or receiving bonuses to incentivize the ordering of physical therapy, counseling, and exercise. Finally, Campbell and Dyer fraudulently billed for physical therapy services using evaluation and management codes as if a physician performed a service on the patients, but, a non-physician and non-physical therapist performed the service on the patients.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky; Kentucky Attorney General Daniel Cameron; Indiana Attorney General Todd Rokita; Special Agent in Charge Mario Pinto of the United States Department for Health and Human Services (HHS), Office of Inspector General, Office of Investigations, Chicago Regional Office; Special Agent in Charge Darrin K. Jones of the Defense Criminal Investigative Services (DCIS) Southeast Field Office; Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office; Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division; and Special Agent in Charge Bryant Jackson of the Internal Revenue Service, Criminal Investigation (IRS-CI), Cincinnati Field Office made the announcement.
The case was investigated by the HHS, DCIS, IRS-CI, FBI, DEA, the Kentucky Attorney General Office’s Medicaid Fraud Control Unit, and the Indiana Attorney General’s Office.
Assistant United States Attorneys Joseph Ansari and Christopher Tieke prosecuted the case with assistance from health care fraud investigator Bob Masterson of the U.S. Attorney’s Office.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
###
Justice Department, Federal Trade Commission and European Commission Hold Third U.S.-EU Joint Technology Competition Policy DialogueRead the Press Release
DOJ Assistant Attorney General Kanter (left), European Commission Executive VP Vestager (middle), and FTC Chair Khan (right) meet for TCPD.The Justice Department’s Antitrust Division Assistant Attorney General Jonathan Kanter, Federal Trade Commission (FTC) Chair Lina M. Khan, and Executive Vice President Margrethe Vestager of the European Commission met today in Washington, D.C., for the third meeting of the U.S.-EU Joint Technology Competition Policy Dialogue (TCPD). The principals and senior staff met to continue work on cooperation in ensuring and promoting fair competition in the digital economy.
“Agencies around the world are adjusting their competition enforcement and regulatory regimes to account for new market realities and in particular the challenges of the digital economy,” said Assistant Attorney General Kanter. “Sharing best practices with the European Commission through the TCPD has been extraordinarily valuable to the U.S. agencies.”
“The Joint Dialogue continues to provide an invaluable forum for the U.S. agencies to engage with the European Commission on challenges in digital markets,” said FTC Chair Khan. “At this moment of unique risk and opportunity, it is especially critical that we deepen our cooperation with key enforcement partners.”
“Today’s meeting has proven once again how fruitful it is to keep engaging in a close cooperation between the European Commission and the U.S. competition authorities,” said European Commission Executive Vice President Vestager. “Exchanging our experiences and ideas on how best to anticipate and address the fast-moving trends in tech markets is vital for achieving the shared goal of a fair, inclusive and pro-competitive digital transformation, to the benefit of consumers and businesses in both the EU and U.S.”
The discussions centered on critical themes the agencies are facing, including the reasons mergers between digital players may lead to competition concerns. The agencies also shared policy reflections in the area of abuse of dominance and monopolization in the digital sector and presented recent policy initiatives in this field. They also exchanged views on the evolving business strategies of big tech companies as well as on their implications for enforcement.
The agencies also announced planned liaisons of agency experts from the Antitrust Division and the FTC in Brussels, with each agency sending an official to assist with implementation of the Digital Markets Act (DMA).
On Dec. 7, 2021, the Justice Department, the FTC, and the European Commission launched the TCPD to further boost transatlantic cooperation on competition policy and enforcement in the digital sector in light of the common challenges facing the three authorities. Upon its launch, the Commission and U.S. competition agencies issued a statement regarding the TCPD and reaffirming their longstanding tradition of close cooperation on competition matters.
On June 15, 2021, President Biden and the European Commission President Ursula von der Leyen launched the U.S.-EU Trade and Technology Council (TTC). The TTC serves as a forum for the United States and European Union to coordinate approaches to key global trade, economic and technology issues and to deepen transatlantic trade and economic relations based on shared democratic values.
The Justice Department, the FTC, and the European Commission have a longstanding tradition of close cooperation in antitrust enforcement and policy, beginning even before the formal 1991 cooperation agreement between the European Commission and the United States regarding the application of their competition laws.
Justice Department and EPA File Complaint Against Norfolk Southern for Unlawful Discharge of Pollutants and Hazardous Substances in East Palestine DerailmentRead the Press Release
WASHINGTON – Today, on behalf of the U.S. Environmental Protection Agency (EPA) and in coordination with the U.S. Attorney’s Office for the Northern District of Ohio, the Justice Department’s Environment and Natural Resources Division filed a complaint against Norfolk Southern Corporation and Norfolk Southern Railway Company (Norfolk Southern) related to the Feb. 3, derailment in East Palestine, Ohio. The complaint seeks penalties and injunctive relief for the unlawful discharge of pollutants, oil, and hazardous substances under the Clean Water Act, and declaratory judgment on liability for past and future costs under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).
This action follows EPA’s issuance on Feb. 21, 2023 of a Unilateral Administrative Order under CERCLA to Norfolk Southern Railway Company requiring the company to develop and implement plans to address contamination and pay EPA’s response costs associated with the order.
“When a Norfolk Southern train derailed last month in East Palestine, Ohio, it released toxins into the air, soil, and water, endangering the health and safety of people in surrounding communities,” said Attorney General Merrick B. Garland. “With this complaint, the Justice Department and the EPA are acting to pursue justice for the residents of East Palestine and ensure that Norfolk Southern carries the financial burden for the harm it has caused and continues to inflict on the community.”
“From the very beginning, I pledged to the people of East Palestine that EPA would hold Norfolk Southern fully accountable for jeopardizing the community’s health and safety,” said EPA Administrator Michael S. Regan. “No community should have to go through what East Palestine residents have faced. With today’s action, we are once more delivering on our commitment to ensure Norfolk Southern cleans up the mess they made and pays for the damage they have inflicted as we work to ensure this community can feel safe at home again.”
“Last month, the East Palestine community was upended by a horrific train derailment. By filing this complaint today, we are demanding accountability from Norfolk Southern for the harm this event has caused,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will tirelessly pursue justice for the people living in and near East Palestine, who like all Americans deserve clean air, clean water, and a safe community for their children.”
“The United States Attorney’s Office stands with our district’s residents in pursuing accountability and justice in both the immediate and distant future, as we work together to deal with the damage and destruction this disaster has caused,” said First Assistant U.S. Attorney Michelle Baeppler for the Northern District of Ohio.
On Feb. 3, 2023, a Norfolk Southern train carrying hazardous materials, including hazardous substances, pollutants, and oil derailed in East Palestine, Ohio. The derailment resulted in a pile of burning rail cars, and contamination of the community’s air, land, and water. Residents living near the derailment site were evacuated. Based on information Norfolk Southern provided, the hazardous materials contained in these cars included vinyl chloride, ethylene glycol monobutyl ether, ethylhexyl acrylate, butyl acrylate, isobutylene, and benzene residue. Within hours of the derailment, EPA and its federal and state partners began responding to the incident, including providing on-the-ground assistance to first responders and conducting robust testing in and around East Palestine.
The fire caused by the derailment burned for several days. On Feb. 5, monitoring indicated that the temperature in one of the rail cars containing vinyl chloride was rising. To prevent an explosion, Norfolk Southern vented and burned five rail cars containing vinyl chloride in a flare trench the following day, resulting in additional releases.
Since the EPA’s issuance of the Unilateral Administrative Order to Norfolk Southern Railway Company, the EPA has been overseeing that company’s work under the order. Approximately 9.2 million gallons of liquid wastewater, and an estimated 12,932 tons of contaminated soils and solids have been shipped off-site.
The EPA and other federal agencies continue to investigate the circumstances leading up to and following the derailment. The United States will pursue further actions as warranted in the future as its investigatory work proceeds.
Justice Department Seeks to Shut Down Florida Return PreparersRead the Press Release
The United States filed a complaint in the U.S. District Court for the Southern District of Florida against Javier Campos; David DePablo; Krystallee Gonzalez; Alvaro Jauregui; Katya Rojas; Patricia Vanegas; JBC Tax Services LLC; WK Tax Services Inc.; Cutler Bay Tax Services Inc.; N.L.T.S., Inc. doing business as Naranja Lakes Tax Services Inc.; and Tax Services Group Corp. The civil complaint seeks to enjoin the defendants from preparing federal income tax returns for others. The complaint also requests that the court require Campos and the businesses he controls to disgorge the fees they obtained by preparing federal tax returns that make grossly incompetent, negligent, reckless, and/or fraudulent claims.
The civil complaint alleges that, from 2019 through 2022, the defendants prepared at least 12,000 tax returns annually. The complaint further alleges that Campos and the other defendants, using a variety of schemes, prepared tax returns that understate their customers’ tax liability and overstate their claimed refunds. The complaint alleges that the defendants prepared customers’ returns that included various false or fabricated deductions and credits, including:
- fabricated residential energy credits;
- fictitious deductions and credits for education expenses, including tuition and fees;
- false COVID-19 sick and family leave credits; and,
- bogus uncommon deductions, including for rental of personal property, unlawful discrimination claims, and reforestation amortization and expenses.
According to the complaint, Campos and the other defendants’ pattern of conduct has resulted in the issuance of inflated refunds to taxpayers and the loss of significant federal tax revenue.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.
In the past decade, the Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury finds Cincinnati man guilty of gun crimes, dealing drugs from his Betts Avenue homeRead the Press Release
CINCINNATI – A federal jury has convicted a Cincinnati man of one drug and two firearms crimes. The defendant was found guilty on all counts as charged.
Ieben Ewing, 39, is convicted of possessing with the intent to distribute controlled substances, possessing a firearm in furtherance of a drug trafficking offense and illegally possessing firearms as a previously convicted felon. He will face a mandatory minimum of five years and up to 40 years in prison.
The verdict was announced on March 29 following a trial that began on March 27 before Senior U.S. District Judge Michael R. Barrett.
According to court documents and trial testimony, Ewing distributed bulk amounts of narcotics from his residence on Betts Avenue in Cincinnati.
While executing a search warrant at Ewing’s home in March 2022, investigators discovered 770 grams of powder cocaine, 100 grams of crack cocaine, $75,000 in cash and various firearms. The firearms included an AK-style gun with a 100 round “drum” style magazine attached.
“The residents of the North College Hill community should not have to tolerate the illegal activities of Ieben Ewing in their neighborhood. Now he is looking at a lengthy prison sentence,” said U.S. Attorney Kenneth L. Parker.
As a previously convicted felon, Ewing is prohibited from possessing firearms or ammunition.
Ewing was indicted by a federal grand jury in September 2022.
Congress sets the minimum and maximum statutory sentences. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors at a future sentencing hearing.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Hamilton County Charmaine McGuffey and members of the Hamilton County Sheriff’s Office Regional Narcotics Unit announced the guilty verdicts. Assistant United States Attorneys David P. Dornette and Timothy D. Oakley are representing the United States in this case.
# # #
Judgment Entered Against Fourteen Defendants in Case Dismantling Nationwide Racketeering ConspiracyRead the Press Release
SAN FRANCISCO – On Thursday, March 23, 2023, and Friday, March 24, 2023, the federal court entered judgment against fourteen defendants, including cousins and ringleaders Mihran Stepanyan and Artur Stepanyan, who were sentenced for their respective roles in a variety of crimes stemming from a wide-ranging racketeering conspiracy involving diversion of prescription drugs, money laundering, mail and wire fraud, and additional crimes, announced United States Attorney Ismail J. Ramsey; Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp; and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Darren Lian. The sentences were handed down by the Hon. Charles R. Breyer, Senior United States District Judge, and leaves nine defendants remaining to be sentenced for crimes committed in connection with the case.
The fourteen defendants had been charged with various crimes as part of a Second Superseding Indictment filed on February 11, 2016. The Second Superseding indictment alleged that 38 defendants were involved with the activities of a nationwide conspiracy, referred to in court documents as the Karapedyan-Stepanyan Enterprise (Enterprise), that engaged in, among other crimes, a multi-million-dollar prescription drug diversion scheme, a tax fraud and Treasury check scheme, and several other criminal schemes. Information about charges brought earlier in the case can be found here and information about several defendants’ guilty pleas can be found here.
The Prescription Drug Diversion Scheme
Last week, seven defendants were sentenced for their respective roles in the prescription drug diversion scheme. Among them were four of the principal actors in the Enterprise: Mihran Stepanyan, 37, of Glendale, Calif., Artur Stepanyan, 45, both of Glendale, Calif., Yan German (a.k.a., Henrik Harutyunyan), 43, of Encino, and Arman Zargayan, 40, of Granada Hills, Calif. All four defendants pleaded guilty to racketeering conspiracy, in violation of 18 U.S.C. § 1962(d).
The prescription drug diversion scheme had nationwide reach; indeed, a separate investigation resulted in another indictment filed on May 6, 2015, in the Southern District of Ohio. That indictment charged the Stepanyans and others with various crimes arising from their sale of illicitly procured drugs and was transferred to the Northern District of California and consolidated with the instant case.
Court documents describe how the Enterprise took advantage of a “robust black market involving the wholesale distribution of prescription drugs.” According to the government’s filings, prescription drugs were procured illicitly at below market value and then were resold and re-introduced into the market as legitimate drugs at near-market prices. Illicit procurement can involve stealing drugs from manufacturers; buying drugs from patients with prescriptions at below-market prices (the patients’ costs are offset or reduced by insurance, including Medicare); buying drugs using false prescriptions and straw patients, usually with the aid of a corrupt doctor (again, with the costs offset or reduced by insurance); and purchasing drugs from a manufacturer at a discounted price through fraud, e.g., falsely claiming a charitable or similar discount. These “diverted” prescription drugs often are cleaned or repackaged to make them appear legitimate. Each of the defendants sentenced pleaded guilty to crimes in accordance with their participation in the crimes of the Enterprise. Each defendant’s plea agreement describes the role that the defendant played in the drug diversion scheme.
According to their plea agreements, Artur and Mirhan Stepanyan obtained illicit prescription drugs from a network of unlicensed drug suppliers and supplied the drugs to co-conspirators at deep discounts. The Stepanyans were responsible for nearly $200 million in sales to their co-defendants who sold the drugs to customers throughout the United States. The defendants used fraudulent documents to establish the pedigree of the drugs they sold. In addition, the Stepanyans sold prescription drugs to their co-defendants in California, although they were not licensed to do so. Starting as early as 2009, the Stepanyans sold tens of millions of dollars in diverted prescription drugs per year to their codefendants. The Stepanyans incorporated multiple entities in Nevada, including Panda Capital Group, Trans Atlantic Capital Group, and Red Rock Capital Group and in 2012, the Stepanyans began doing business as GC National Wholesale. The Stepanyans were paid more than $160 million for diverted drugs—typically at prices ranging from 15% to 25% off the Wholesale Acquisition Cost (“WAC”) established by manufacturers of prescription drugs. For their respective parts in the conspiracy, Mihran Stepanyan was sentenced to 60 months in prison and Artur Stepanyan, was sentenced to 54 months in prison.
German was sentenced to 23 months in prison for his role in the scheme. German admitted he was one of the suppliers of pharmaceutical drugs for the Stepanyans. According to his plea agreement, German admitted he engaged in a wire fraud and money laundering as part of the Enterprise and that he was involve in a separate prescription drug diversion and check cashing scheme with co-defendant Ara Karapedyan. German also acknowledged the loss amount for which he is responsible is between $9.5 and $25 million.
Zargayan was sentenced to 35 months in prison for his role in the scheme. Zargayan operated a California-licensed drug wholesale company, Nuvo Pharmaceuticals, with an unindicted co-conspirator. Zargayan admitted that he used Nuvo Pharmaceuticals as a front for the drugs that a company called ME Wholesale sold to LLC Wholesale from May to August 2013. Nuvo Pharmaceuticals was licensed in California, but it did not actually supply the drugs that ME Wholesale sold. In addition, the pedigrees for ME Wholesale’s drugs falsely claimed that Nuvo Pharmaceuticals had received the drugs from McKesson.
Fraudulent Check Scheme
Also sentenced last week were seven defendants, all California residents, in connection with attempts to negotiate over 500 fraudulent checks issued to a variety of payees and totaling more than $5 million. A substantial number of the fraudulent checks were tax refund checks sent by mail by the United States Treasury and many of these tax refund checks had been issued based on fraudulent tax returns filed with the Internal Revenue Service. The defendants acquired and possessed identifying information for dozens of individuals, which was used to file fraudulent tax returns online. Associates of the Enterprise negotiated numerous fraudulent checks through a business owned by one of the co-conspirators—a service that was offered in exchange for a percentage of the proceeds.
In sum, of the 38 defendants charged in the February 2016 Superseding Indictment, 33 have been convicted and nine remain to be sentenced. The charges against five defendants have been dismissed. Judge Breyer scheduled two additional hearings for May 31, 2023, at which time co-defendants Asatour Magzanyan and Loui Artin are scheduled to be sentenced.
Assistant United States Attorneys Claudia Quiroz, Andrew Dawson, and Chris Kaltsas are prosecuting the case with the assistance of Kevin Costello. The prosecution is the result of an investigation by the FBI, the IRS, the FDA, and USPIS.
Jefferson County Felon Sentenced to over 24 Years in Federal Prison for Trafficking Methamphetamine and Multiple Firearms ChargesRead the Press Release
Jackson, Miss – A Jefferson County felon was sentenced to 295 months in federal prison for possession of methamphetamine with the intent to distribute, possession of a firearm by a previously convicted felon, and possessing firearms in furtherance of a drug trafficking crime.
According to court documents and evidence presented at trial, Boris Ward, 50, conducted two sold methamphetamine in Jefferson County on June 1st and June 13th, 2018. After the two sales, the Mississippi Bureau of Narcotics and other agencies executed a search warrant at Ward’s residence and recovered 10 firearms and over a half kilogram of 100% pure methamphetamine. Ward was previously convicted in Cook County, Illinois, of two counts of armed robbery, two counts of attempted murder and distribution of cocaine. He was previously convicted in Jefferson County, Mississippi, of escape from a correctional facility and possession of cocaine.
U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mississippi Bureau of Narcotics, and the Adams County Sheriff’s Office investigated the case.
Assistant U.S. Attorneys Bert Carraway and Andrew W. Eichner 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.
Jacksonville Tax Preparer Charged with Filing False ReturnsRead the Press Release
A federal grand jury in Jacksonville, Florida, returned an indictment today charging a Florida woman with aiding and assisting in the preparation of false tax returns, filing a false tax return and failing to file a tax return.
According to the indictment, between 2017 and 2019, Gloria Gray, who at times resided in Jacksonville, prepared false income tax returns, first while working at two Jacksonville tax preparation businesses, and then at her own business, Triple X Tax Services. The indictment alleges that Gray prepared individual income tax returns for multiple clients that collectively reported hundreds of thousands of dollars in fraudulent expenses and deductions, including false charitable deductions and unreimbursed employee business expenses.
In addition, Gray allegedly filed a false 2018 tax return that did not report all her income and she allegedly did not file a personal income tax return for 2019.
If convicted, Gray faces a maximum sentence of three years in prison for each false return count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Isaiah Boyd III and Richard (R.J.) Hagerman of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jacksonville Man Sentenced to More Than Two Years Additional Prison Term for Escape from Halfway HouseRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Keenan Hunter (32, Jacksonville) to two years and three months in federal prison for his escape from custody from a halfway house in Jacksonville. Hunter had pleaded guilty on December 29, 2022.
According to court documents, on October 29, 2018, Hunter was sentenced to five years’ imprisonment for being a felon in possession of a firearm. In August 2020, the Federal Bureau of Prisons placed Hunter in a halfway house, in Jacksonville, to complete his sentence. He had an estimated release date of February 5, 2021.
On December 9, 2020, at 9:45 a.m., Hunter walked out of the halfway house without authorization. He was therefore listed as an escapee. Paperwork from the halfway house confirms that Hunter was informed of the rules of the halfway house, including that a failure to remain there could result in prosecution for escape. He also electronically signed a written acknowledgment. Hunter never returned to the halfway house.
This case was investigated by the United States Marshals Service. It was prosecuted by Assistant United States Attorney Ashley Washington.
Jacksonville Convicted Felon Sentenced to Seven Years in Federal Prison for Firearm PossessionRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Frederick Lamont Sams (41, Jacksonville) to seven years in federal prison for possessing a firearm by a convicted felon. Sams had pleaded guilty in December 2022.
According to court documents, on February 16, 2022, Sams was seen by a Jacksonville Sheriff’s Officer driving a stolen vehicle. Officers followed Sams which led to a pursuit where Sams fled from the vehicle. As Sams was fleeing, he threw a Glock .45 caliber pistol loaded with 25 rounds of ammunition, which was recovered once Sams was arrested.
Sams is a multi-convicted felon and was recently released from prison after having been convicted of burglary and possession of a firearm by a convicted felon. He was out of prison less than six months before committing this offense. As a previously convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sherriff’s Office. The case was prosecuted by Assistant United States Attorney John Cannizzaro. The forfeiture will be handled by Assistant United States Attorney Mai Tran.
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.
Hazelwood Man Admits Series of Schemes Seeking $404,000Read the Press Release
ST. LOUIS – A man from Hazelwood, Missouri on Tuesday admitted involvement in a series of schemes that cost or intended to cost victims a total of $404,415.
Naquan Powers, 27, pleaded guilty to four felony counts of bank fraud and three felony counts of aggravated ID theft in front of U.S. District Judge Matthew T. Schelp.Powers admitted buying three vehicles from a Florissant dealership between June 24, 2019 and August 23, 2019 and using fraudulent Social Security cards and driver’s licenses to apply for loans. After buying an Chevrolet Impala with a $18,098 loan, a $42,086 Chevrolet Tahoe and a BMW 428 XI for $29,079, powers was arrested trying to buy a Dodge Challenger with a $38,191 loan. The total intended loss for the four vehicles is $127,454
In 2018 and 2019, Powers accessed multiple Discover Bank accounts belonging to other people and changed information in these accounts so he could receive debit cards and bank checks for the accounts. Powers’ intended loss for this scheme was $11,754.
After his arrest, Powers aided at least four others in making or attempting fraudulent purchases of vehicles at multiple vehicle dealerships throughout the St. Louis and southern Illinois areas, causing a total loss of $244,374.
Then, in 2020 and 2021, Powers applied for a Paycheck Protection Program loan and four Economic Injury and Disaster Loans pursuant to the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), claiming he was a sole proprietor in the general freight trucking industry. Powers submitted a fraudulent tax form and a bank statement and received $20,832 in PPP funds.
Five others involved with Powers’ schemes have also been charged.
Powers is scheduled to be sentenced June 30. The bank fraud charges carry a potential sentence of 30 years in prison, a $1 million fine, or both prison and a fine. The aggravated ID theft charges carry a mandatory minimum sentence of two years consecutive to all other sentences.
The Social Security Administration Office of Inspector General and the U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Diane Klocke is prosecuting the case.
Hartford Man Charged with Distributing FentanylRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Hartford Police Chief Jason Thody today announced that JOHNNY MILNER, also known as “Blaze” and “O.G.,” 45, of Hartford, was arrested yesterday on a criminal complaint charging him with possession with intent to distribute, and distribution of, 40 grams or more of fentanyl.
Following his arrest, Milner appeared before U.S. Magistrate Judge Thomas O. Farrish in Hartford and was ordered detained.
As alleged in court documents and statements made in court, law enforcement received information from various sources that Milner was distributing fentanyl to street-level narcotics dealers in the SANA apartment complex located on Main Street in Hartford, which is commonly referred to as the “Sands,” and that he was using locations on Prospect Avenue and Bellevue Street in Hartford to store and distribute narcotics. On February 21 and March 15, 2023, investigators made controlled purchases of 100 grams of fentanyl from Milner.
In association with Milner’s arrest, investigators conducted court-authorized searches of locations in Hartford and New Britain connected to him. A search of an apartment on Chestnut Street in New Britain that Milner uses revealed approximately 70 grams of fentanyl and $221,296 in cash.
The charge of possession with intent to distribute, and distribution of, 40 grams or more of fentanyl, carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI’s Northern Connecticut Gang Task Force and the Hartford Police Department, with the assistance of the Drug Enforcement Administration’s Hartford Task Force. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Robert S. Ruff.
Guatemalan Man Pleads Guilty to Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS –FIDADELFO ANTONIO CAMEY-ESPANA, age 36, pled guilty to a one-count indictment on March 30, 2023 for illegally using a social security number to enroll in a safety class to qualify for employment, in violation of Title 42, United States Code, Section 408(a)(7)(B), announced U.S. Attorney Duane A. Evans.
According to court documents, FIDADELFO ANTONIO CAMEY-ESPANA (“CAMEY-ESPANA”) admitted to illegally using a social security number to enroll in a safety class to gain employment eligibility. CAMEY-ESPANA faces a maximum term of imprisonment of five years, a maximum fine of up to $250,000, a maximum term of supervised release of up to three years, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Greene County Men Plead Guilty to Tax Evasion ConspiracyRead the Press Release
ALBANY, NEW YORK – Dennis Radcliffe, age 51, and Kenneth Radcliffe, age 49, each of Elka Park, New York, pled guilty today to conspiring to evade taxes on income earned from stock sales.
United States Attorney Carla B. Freedman and Thomas Fattorusso, Special Agent in Charge, New York Field Office, Internal Revenue Service-Criminal Investigation (IRS-CI), made the announcement.
Dennis Radcliffe and Kenneth Radcliffe, who are cousins, each pled guilty to two conspiracies. In the first conspiracy, they conspired with each other to avoid taxes on their personal income, by failing to report to the IRS several million dollars of income earned principally from sales of penny stocks, from 2014 through 2017. The stock sales occurred in brokerage accounts that Dennis Radcliffe and Kenneth Radcliffe controlled, and which stood in the names of their companies Crackerjack Classics LLC (“Crackerjack”) and Universal Consulting LLC (“Universal”).
In the second conspiracy, Dennis Radcliffe and Kenneth Radcliffe conspired with each other and with Joseph Radcliffe, Dennis’s father, to avoid taxes on approximately $500,000 in compensation that Crackerjack and Universal paid to Joseph, from 2013 through 2019.
When they are sentenced on August 10, 2023, Dennis Radcliffe and Kenneth Radcliffe each face up to 5 years in prison and a maximum $250,000 fine. 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. Dennis Radcliffe has agreed to pay $77,552 in restitution to the IRS, and Kenneth Radcliffe has agreed to pay an additional $152,274 in restitution.
Joseph Radcliffe, age 76, of Elka Park, was sentenced in August 2022 to three years of probation, to spend four consecutive weekends in jail as a condition of his probation, and to pay $109,106 in restitution to the IRS, following his guilty plea to tax evasion conspiracy.
IRS-CI investigated this case, and Assistant U.S. Attorney Michael Barnett is prosecuting this case.
Georgia man convicted of fraud in seeking millions of dollars in COVID-19 relief fundingRead the Press Release
BRUNSWICK, GA: A federal jury deliberated less than an hour before finding a Georgia man guilty on multiple charges for leading a conspiracy to fraudulently obtain more than $1 million in federal COVID-19 pandemic relief funding.
Bernard Okojie, 41, of McDonough, Ga., was found guilty after a three-day trial of Conspiracy to Commit Wire Fraud, Wire Fraud, and Money Laundering Conspiracy, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. The guilty verdict subjects Okojie to statutory penalties of up to 30 years in prison, along with up to $1 million in financial penalties and up to five years of supervised release after completion of any prison term. There is no parole in the federal system.
“Before the ink was dry on legislation creating the Coronavirus Aid, Relief and Economic Security (CARES) Act, Bernard Okojie was scheming to steal these vital small business safety net funds,” said U.S. Attorney Steinberg. “The guilty verdict slams the door on this fraud, and signals to others stealing from pandemic relief funds that they, too, will be held accountable.”
As described in trial and in court documents, Okojie used information for non-existent companies to file at least 24 fraudulent applications for Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program loans for himself and others from April 2020 through May of 2021, seeking millions of dollars in COVID-19 relief funds for himself and others. Okojie received the funding directly, or was paid by other recipients of the fraudulently obtained funding for his work in submitting the EIDL applications. Okojie then conspired to launder the fraudulent proceeds to hide the source of the funds.
Funds from the more than $1.4 million Okojie and others received through the schemes were used to purchase a home, vehicles, shopping trips to Versace, for personal investments, and a toy poodle. Okojie also was intercepted as he attempted to carry nearly $40,000 in undeclared cash on a plane from Atlanta to Nigeria.
Sentencing before U.S. District Court Judge Lisa Godbey Wood will be scheduled upon completion of a pre-sentence investigation by U.S. Probation Services.
“This verdict should serve notice that the FBI and our federal partners will investigate anyone who misdirects federal emergency assistance earmarked for businesses who need it to stay afloat,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “We won’t tolerate anyone driven by personal greed to pocket American tax payer money that should be going to those in need.”
“Manufacturing false information to wrongfully obtain funds from SBA programs intended for the nation’s small businesses is a theft from taxpayers,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “OIG and its law enforcement partners will relentlessly pursue fraudsters and bring them to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
The case was investigated by the FBI and the Small Business Administration Office of Inspector General, and prosecuted for the United States by Assistant U.S. Attorneys Matthew A. Josephson and Jennifer A. Stanley.
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.
Georgia Man Sentenced to 20 Years in Prison for Possession of Meth with Intent to Distribute After Ordering Fabric Soaked in MethRead the Press Release
ALBANY, Ga. – A Southwest Georgia man guilty of drug distribution was sentenced to 240 months in prison today after federal agents discovered fabric soaked in methamphetamine and crystal meth in packages at the Atlanta airport addressed to him from Mexico.
Chad Williamson, 44, of Fitzgerald, Georgia, was sentenced to serve 240 months in prison to be followed by five years of supervised release by U.S. District Judge Leslie Abrams Gardner today after he pleaded guilty to possession of methamphetamine with intent to distribute on Sept. 8. There is no parole in the federal system.
“International drug cartels are using any means necessary to move deadly substances into this country, feeding addiction and increasing overdose deaths,” said U.S. Attorney Peter D. Leary. “Law enforcement at every level is committed to stopping and holding accountable those working with these groups to bring highly dangerous and illegal drugs into our communities.”
“DEA and its law enforcement partners will continue to use every available resource to dismantle, disrupt and destroy drug distribution networks,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “This case was successful because of the collaborative efforts between DEA and its committed law enforcement partners.”
According to court documents, two packages containing methamphetamine and addressed to Williamson were intercepted by Homeland Security Investigations (HSI) at the Hartsfield-Jackson Atlanta International Airport Parcel Center in March 2021. The packages were shipped from Naucalpan de Juarez, Mexico, and marked as religious image and/or Bible gift; one of the boxes contained a methamphetamine-soaked fabric, which can be chemically extracted for use. There was also approximately 450 grams of crystal methamphetamine in the packages.
DEA agents went to Williamson’s residence on March 11, 2021. Williamson had removed the SIM card from his phone in an attempt to hide its contents. Williamson’s probation officer administered a drug test, which Williamson failed. Williamson was placed under arrest and subsequently admitted to agents that an associate used Williamson’s address for drug deliveries. The SIM card was located, and a download of Williamson’s phone showed a number of messages he had exchanged with the source of supply, saved in his phone as “Costa Chris.” The messages revealed an on-going relationship between the two regarding illicit controlled substance deliveries requiring tracking and other drug deals.
The case was investigated DEA with assistance from HSI.
Criminal Chief Leah McEwen prosecuted the case.
Fraudster Sentenced to 13+ Years in $1.9 Million SchemeRead the Press Release
The mastermind behind a $1.9 million bank fraud was sentenced today to more than 13 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Nohmaan Malik, 30, pleaded guilty in November 2022 to conspiracy to commit bank fraud, passport fraud, and aggravated identity theft. He was sentenced Thursday by U.S. District Judge Mark Pittman. The Court ordered restitution in the amount of $1.9 million, the amount of loss the victims suffered.
According to plea papers, Mr. Malik admitted he and coconspirators defrauded Chase Bank customers.
They selected customers with sizeable balances at Chase and created counterfeit passport cards using the customers’ names and identifying information but with conspirators’ photographs. Using those counterfeit passport cards, conspirators imitating the bank customers opened fraudulent joint bank accounts with other conspirators acting as money mules.
The impersonator or the mule then transferred money from the customers’ actual account to the joint bank account, and then transferred the money from the joint account into a third bank account controlled solely by the conspirators.
His coconspirators include:
- Juan Cruz – pleaded guilty to conspiracy to commit bank fraud, passport fraud, and aggravated identity theft / sentenced to 10 years and nine months in federal prison
- Ronald Godbold – pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft / sentenced to five years and five months in federal prison
- Jeremy Pena – pleaded guilty to conspiracy to commit bank fraud, passport fraud, and aggravated identity theft / sentenced to five years and five months in federal prison
- Louie Walencik – charged with conspiracy to commit bank fraud, use of a false passport, and aggravated identity theft / fugitive
- Gregory Jesus Acevedo – pleaded guilty to conspiracy to commit bank fraud and passport fraud and aggravated identity theft / sentenced to three years and four months in federal prison
- Christian Martinez – pleaded guilty to conspiracy to commit bank fraud / slated to be sentenced on May 9 before Judge Reed O’Connor
The U.S. Department of State’s Diplomatic Security Service (DSS), Dallas Resident Office, conducted the investigation with the assistance from the DFW Airport Police Department, Dallas Police Department, Benbrook Police Department, and Flower Mound Police Department. Assistant U.S. Attorney Matthew Weybrecht prosecuted the case.
Former U.S. Postal Service mail carrier sentenced for scheme to deliver drugs through the mailRead the Press Release
ATLANTA – Former mail carrier Robert Elliot Sheppard was sentenced to three years of prison for recruiting fellow mail carriers, and teaching them how to deliver packages of cocaine and marijuana while he was on disability leave.
“Sheppard accepted bribes from a drug trafficker to hand-deliver packages of narcotics on his mail route and even found carriers to replace him in his absence to ensure that he continued to profit from these crimes,” said U.S. Attorney Ryan K. Buchanan. “His greed resulted in dangerous drugs going into our community and ensnared two of his coworkers in a scheme of drug trafficking and bribery.”
“Sheppard put not only his future at risk, but the safety of residents on his routes in danger by agreeing to work with drug dealers,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The vast majority of Postal workers are honest. The FBI wants to make it clear if anyone decides to violate the public trust, we will dedicate significant resources toward finding and prosecuting them for their crimes.”
“The vast majority of U.S. Postal Service employees would never violate the public trust in this manner. But for those who do, the USPS Office of Inspector General, along with our law enforcement partners, will aggressively investigate these federal crimes to protect the sanctity of the U.S. Mail,” said Special Agent in Charge Jonathan Ulrich. “This sentence is a testament to the dedication of the investigative and legal teams and should send a strong message to any employee who thinks of conspiring with drug traffickers.”
“Sheppard recklessly recruited two mail carriers to deliver packages of drugs and was paid for doing so. Through his actions, Sheppard endangered the communities he served and betrayed the trust bestowed upon him by the USPS,” said DeKalb County District Attorney Sherry Boston. “The DeKalb County District Attorney’s Office, with its law enforcement partners, will continue to seek out and prosecute those who use their official positions for personal gain.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: In 2015, Sheppard worked as a U.S Postal Service (USPS) mail carrier. In exchange for receiving bribes, Sheppard used his position to deliver five-pound packages of drugs through the U.S. mail to Dexter Frazier, a local drug trafficker who sold cocaine and marijuana.
In 2016, Frazier approached Sheppard about delivering additional drug packages. Sheppard was on disability leave from the USPS at that time and unable to intercept and deliver packages. But he offered to recruit other mail carriers to deliver drugs for Frazier in exchange for referral fees in the form of a mix of cash and marijuana. Frazier agreed to the arrangement.
Sheppard then contacted two coworkers, Tonie Harris and Clifton Lee. Sheppard explained to Harris and Lee that they could earn bribes for delivering packages of drugs along their mail routes, and taught them how to arrange the deliveries to avoid detection. Harris and Lee agreed to participate in the scheme, and Sheppard gave their phone numbers to Frazier. Frazier then coordinated the illegal deliveries with Harris and Lee. Harris and Lee each delivered three packages for Frazier believing they contained two kilograms of cocaine or 10 pounds of marijuana, per parcel.
U.S. District Judge Steve C. Jones sentenced Robert Elliott Sheppard, 61, of East Point, Ga., to three years in prison to be followed by three years of supervised release. He was also ordered to pay a fine in the amount of $30,000. Sheppard pleaded guilty to the offenses of conspiracy to possess with intent to distribute cocaine and marijuana, and unlawfully using the mail to commit that crime, on August 3, 2022.
Other participants in the scheme previously pleaded guilty and received the following sentences imposed by Judge Jones:
- Dexter Bernard Frazier, a/k/a “Dec,” 60, of Fairburn, Georgia, was sentenced on June 13, 2018, to nine years in prison to be followed by 10 years of supervised release. He was also ordered to pay restitution in the amount of $10,700. Frazier pleaded guilty to the offense of attempt to distribute cocaine and marijuana on March 6, 2018.
- Clifton Curtis Lee, a/k/a “Cliff,” 46, of Lithonia, Georgia, a letter carrier assigned to the Sandy Springs Post Office, was sentenced on June 18, 2018, to three years, 10 months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $1,800. Lee pleaded guilty to the offenses of attempt to distribute cocaine and bribery of public officials on February 28, 2018.
- Tonie Harris, 59, of Decatur, Georgia, a letter carrier assigned to the Sandy Springs Post Office, was sentenced on August 14, 2018, to three years, one month in prison to be followed by four years of supervised release. He was also ordered to pay restitution in the amount of $1,450. Harris pleaded guilty to the offenses of attempt to distribute cocaine and marijuana and bribery of public officials on March 20, 2018.
This was investigated by the Federal Bureau of Investigation, the U.S. Postal Service Office of Inspector General, and the DeKalb County District Attorney’s Office.
Assistant U.S. Attorney Garrett L. Bradford prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Partner at Broker-Dealer Firm Charged with $3.4 Million Insider Trading SchemeRead the Press Release
NEWARK, NJ. – A former partner at a New Jersey broker-dealer firm was arrested today and charged with engaging in an insider trading scheme that netted millions of dollars in illegal trading profits, U.S. Attorney Philip R. Sellinger announced today.
Christopher Matthaei, 44, of Brielle, New Jersey, is charged by complaint with one count of securities fraud conspiracy and one count of securities fraud. He appeared today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was released on $250,000 unsecured bond.
“As alleged, Christopher Matthaei illegally exploited his relationship with a close friend to gain access to confidential information about yet-to-be-announced mergers and acquisitions involving special purpose acquisition companies, or SPACs,” U.S. Attorney Sellinger said. Matthaei is alleged to have made trades on seven SPACs that netted him $3.4 million in illegal profits. SPACs may have been a hot trend on Wall Street, but the District of New Jersey will continue to be relentless in bringing inside traders to justice, no matter the market trends.”
“Federal laws targeting insider trading are designed to protect the general public from those who attempt to cash in on private information,” FBI Newark Special Agent in Charge James E. Dennehy said. “We allege Matthaei used his knowledge to make more than $3 million, disregarding the rules and policies everyone is required to follow. His position doesn't give him, or anyone else, the power to break the law.”
According to the complaint and statements made in court:
Matthaei was a partner and senior salesperson at a Charlotte, North Carolina-based broker-dealer with offices in Red Bank, New Jersey. From May 2020 through February 2021, Matthaei illegally traded on material, non-public information, or MNPI, that he received from a conspirator, a friend who worked at a large Canadian asset management firm. The MNPI pertained to SPACs that were engaged in confidential merger negotiations and shared information with the asset management firm as a potential investor in the SPAC deals. The conspirator received this MNPI every time a SPAC was placed on his firm’s confidential restricted list, meaning that the firm’s employees were prohibited from buying or selling the SPACs’ securities, either personally or via another person or third party. Despite knowing about these trading restrictions, the conspirator shared the MNPI with Matthaei, who then purchased securities in the SPACs using his personal brokerage accounts. In June 2020, Matthaei paid for a private plane and extended trip with the co-coconspirator and their families to a luxury resort on the island of St. Barth, where they continued to engage in the insider trading scheme.
Matthaei made more than $3.4 million in illegal trading profits from the insider trading scheme.
The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine, and the securities fraud conspiracy count carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross amount of gain or loss from the offense, whichever is greatest.
The U.S. Securities and Exchange Commission also filed a civil complaint against Matthaei today based on the same conduct.
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 today’s arrest.
The government is represented by Assistant U.S. Attorneys Jennifer Kozar and Marko Pesce of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
matthaei.complaint.pdf