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Wednesday 29 March 2023
Pine Ridge Man Sentenced for Theft of Firearms and Assault on a Federal OfficerRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Pine Ridge, South Dakota, man convicted of Theft of Firearms and Assault on a Federal Officer. The sentencing took place on March 24, 2023.
David Gibbons, a/k/a DJ Gibbons, 28, was sentenced to five years and 10 months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $3,795 in restitution on the theft of firearms charge. Gibbons was also sentenced to five years and 10 months in federal prison on the assault of a federal officer case, of which two years were ordered to run consecutively with the theft of firearms charge, followed by three years of supervised release, and was ordered to pay a $100 special assessment.
Gibbons was indicted for Theft of Firearms by a federal grand jury February of 2021 and for Assault on a Federal Officer in January of 2022. He pleaded guilty on November 4, 2022.
In September of 2020, Gibbons stole ten firearms, including a Derya Arms, 12-gauge, semi-automatic shotgun, from the True Value Hardware Store in Martin, South Dakota. Gibbons later traded several of those firearms for methamphetamine. Gibbons was arrested on the theft of firearms charge and was then held in custody at the Pennington County Jail. In September of 2021, while being held at the Pennington County Jail, Gibbons assaulted a Pennington County Jail Sheriff’s Department Correctional Officer.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Rapid City Police Department, the Pennington County Sheriff’s Office, and the U.S. Marshals Service. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Gibbons was immediately remanded to the custody of the U.S. Marshals Service.
Philadelphia Man Convicted of Obtaining United States Citizenship by FraudRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Sumo Dukulah, 49, of Philadelphia, Pennsylvania was convicted today at trial of procurement of citizenship by a false statement and unlawfully arising from his failure to honestly answer questions during the naturalization process about his prior criminal activity, including his rape of a child under the age of thirteen.
The defendant was indicted by a grand jury on June 24, 2021 and charged with procuring citizenship through a false statement and with procuring citizenship unlawfully. The defendant, from September 27, 2011 to January 9, 2012, in submitting his application for citizenship and in his sworn affirmations at his interview at U.S. Citizenship and Immigration Services in Philadelphia, falsely declared that he had never committed a crime, when in fact, he had been raping a minor female.
“The guilty verdict for Sumo Dukulah sends a message that you will be held accountable for lying about your criminal background on federal immigration forms,” said U.S. Attorney Romero. “Those who would lie in order to secure the precious privilege of U.S. Citizenship put the integrity of our immigration system at risk.”
“Today’s conviction of Mr. Dukulah illustrates HSI’s commitment to ensuring that our immigration system is void of fraud and deception, particularly from those perpetrating such heinous criminal conduct,” said Special Agent in Charge of HSI Philadelphia William S. Walker. “HSI will continue to tirelessly work with our partners in the U.S. Attorney’s Office to prosecute and to revoke any fraudulently obtained citizenship from anyone that poses a threat to the most vulnerable amongst our communities.”
The case was investigated by Homeland Security Investigations, and is being prosecuted by Assistant United States Attorneys Josh A. Davison and Patrick Brown.
Palm Beach Gardens Attorney Arrested for Possession of Child PornographyRead the Press Release
MIAMI – A 53-year-old West Palm Beach licensed attorney has been arrested with possession of child pornography. Michael T. Dolce will appear in a West Palm Beach federal court tomorrow for his initial appearance.
According to the filed criminal complaint affidavit, on March 15, FBI agents executed a search warrant at Dolce’s West Palm Beach apartment. They discovered Dolce actively downloading child pornography using peer-2-peer software. Nearly 2000 images and videos of child pornography were recovered from his devices.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, announced the charges.
FBI Miami, West Palm Beach Resident Agency investigated the case. Assistant U.S. Attorney Gregory Schiller is prosecuting the case.
A complaint contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-mj-08161.
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Owner of Boston Pizzeria Chain Indicted on Additional Forced Labor ChargesRead the Press Release
BOSTON – The owner of Stash’s Pizza has been indicted by a federal grand jury in Boston with forced labor charges for allegedly targeting and employing at least seven victims who lacked immigration status and forcing them to work while subjecting them to verbal and physical abuse, including repeated threats of deportation.
Stavros Papantoniadis, a/k/a “Steve Papantoniadis,” 48, of Westwood, was indicted on four counts of forced labor and three counts of attempted forced labor. Papantoniadis has remained in federal custody since his arrest on March 16, 2023. He was previously charged with one count of forced labor.
According to court documents, Papantoniadis is the owner and operator of Stash’s Pizza, a chain of pizzerias with locations in Dorchester and Roslindale, and previous locations in Norwood, Norwell and Randolph (d/b/a Boston Pizza Company), Weymouth (d/b/a Pacini’s Italian Eatery) and Wareham, Mass. Over the course of several years, Papantoniadis allegedly targeted victims who lacked immigration status, employed them at depressed wages and demanded that they work, in most cases, six to seven days per week, at times for far more than eight hours per day and often without breaks or overtime compensation. Papantoniadis also allegedly withheld wages.
Papantoniadis allegedly forced or attempted to force at least seven victims to work for him and comply with excessive workplace demands by means of violent physical abuse; threats of violence or serious harm; and repeated threats to report victims to immigration authorities to have them deported. Specifically, it is alleged that Papantoniadis violently attacked one of the victims several times, including kicking him in the genitals, slapping and choking the victim and causing him to lose teeth. It is further alleged that, when three other victims separately expressed intentions to quit, Papantoniadis threatened one victim by telling the victim that he knew where he lived; he attacked another victim, forcing him to run to safety in the parking lot; and filed a false police report on another victim who wanted to leave Papantoniadis’ operation. According to court documents, at least four of the victims feared that if they did not continue working for Papantoniadis, he would hurt them and/or report them to immigration authorities.
It is alleged that Papantoniadis’ conduct enabled him to obtain a substantial financial benefit and an advantage over other businesses in the local pizza market. He could operate Stash’s Pizza with fewer and cheaper workers over whom he allegedly exercised significant control, all of which reduced his businesses’ labor and operating costs.
The charges of forced labor and attempted forced labor each provide for a sentence of up to 20 years in prison, up to five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Members of the public who have information or questions relevant to this case should call 888-221-6023, Option 5 or send an email with contact information to [email protected].
United States Attorney Rachael S. Rollins; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; and Jonathan Mellone, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Northeast Region made the announcement today. Assistant U.S. Attorneys Timothy E. Moran, Chief of Rollins’ Organized Crime & Gang Unit, and Brian A. Fogerty of Rollins’ Civil Rights & Human Trafficking Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Opelousas Man Sentenced for Distribution of FentanylRead the Press Release
OPELOUSAS, LA - Elijah Jones, 31 has been sentenced by United States District Court Judge David Joseph to 51 months in prison, followed by 3 years of supervised release, as a result of a conviction for violation of one (1) count of 21 U.S.C. §§ 841(a)(l) punishable by 21 U.S.C. §§ 841(b)(l)(C) – Distribution of Fentanyl, announced United States Attorney Brandon B. Brown.
On June 25, 2021, agents working in an undercover capacity negotiated a purchase suspected heroin from Elijah Jones. Agents contacted Jones via telephone to set up the transaction at the Cajun Fire Casino & Truck Stop in Breaux Bridge, Louisiana. Jones asked Agents to sit in his truck with him while they talked business and completed the heroin transaction. Jones agreed to selling a half-ounce of heroin and began to weigh and package the narcotics in a clear sandwich bag. Agents were able to purchase and executed three (3) different controlled buys of suspected heroin from Elijah Jones. Jones completed one transaction by placing the narcotics in Girard Park in Lafayette, Louisiana. The suspected heroin from all three purchases were sent to the Acadiana Crime Lab for analysis. Two reports indicate that the alleged heroin was in fact fentanyl. The third report indicate the substance is a mixture of fentanyl, methamphetamine, cocaine, and heroin. Elijah Jones was sentenced to 51 months custody followed by 3 years of supervised release and ordered to pay a fine of $10,000.00.
This case was investigated by FBI, ATF, St. Martin Sheriff’s Office, and the Lafayette Parish Sheriff’s Office and prosecuted by Assistant U.S. Attorney LaDonte A. Murphy.
Omaha Woman Sentenced to more than 11 Years’ Imprisonment for Methamphetamine ChargeRead the Press Release
United States Attorney Steven Russell announced that Karen Barba-Franco, 23, of Omaha, Nebraska, was sentenced today in federal court in Omaha for Conspiracy to Distribute and Possession with Intent to Distribute Methamphetamine. United States District Court Judge Brian C. Buescher sentenced Barba-Franco to 135 months’ imprisonment. After completing her term of imprisonment, Barba-Franco will be required to serve a three-year term of supervised release as there is no parole in the federal system.
On July 19, 2021, Omaha police officers conducted a traffic stop in South Omaha of a vehicle containing Barba-Franco and two co-defendants, Mauricio Canales-Santiago and Antonia Lopez-Tiznado. Consent to search the vehicle was granted and officers located approximately 2 pounds of methamphetamine. A subsequent search warrant was executed on their Omaha residence revealing an additional 19 pounds of methamphetamine. All three gave post-arrest statements admitting their involvement in distributing methamphetamine with one another during the prior two weeks.
Canales-Santiago has a trial date pending. Lopez-Tiznado pled guilty and was sentenced on February 8, 2023, to 135 months’ imprisonment.
This case was investigated by the Omaha Police Department and the Federal Bureau of Investigation.
Ohio Man Sentenced to 71 Months in PrisonRead the Press Release
FORT WAYNE –Bart Ely, 51 years old, of Ohio City, Ohio, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to bank robbery, announced United States Attorney Clifford D. Johnson.
Ely was sentenced to 71 months in prison to be followed by 3 years of supervised release and ordered to pay restitution in the amount of $401.00 to the victim bank.
According to documents in the case, on June 4, 2021, Ely entered a bank in Bluffton, Indiana. He wrote and presented a note directing the teller to not make a sound and give him money or he would shoot. After obtaining an amount of bank funds, Ely fled. He was arrested later in the day after being identified from photographs posted by law enforcement. Ely’s criminal history includes several prior robbery convictions in Ohio.
This case was investigated by the Federal Bureau of Investigation with the assistance of the Indiana State Police, the Bluffton Police Department, the Wells County Sheriff’s Office, and the Fort Wayne Police Department. Federal, state, and local authorities in Ohio also assisted in this investigation. The case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
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North Sioux City Man Sentenced for Tax Returns ChargesRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a North Sioux City, South Dakota, man convicted of one count of False Income Tax Return and three counts of Willful Failure to File Tax Returns. The sentencing took place on March 27, 2023.
James R. Winckler, age 60, was sentenced to three years of probation, a fine in the amount of $25,000, and a special assessment to the Federal Crime Victims Fund in the amount of $175.
Winckler was indicted by a federal grand jury in April of 2021. He pleaded guilty on October 3, 2022.
The conviction stemmed from Winckler’s actions while serving as the bookkeeper, daily operations manager, and president of a small cosmetics business known as Medco Lab, Inc.
In 2016, Winckler willfully made and filed his individual 2012 income tax return that understated his income by approximately $450,000. He received the funds from Medco Lab, Inc., to purchase his home in Dakota Dunes. As a result of his guilty plea, Winckler was required to pay $150,312 in taxes on his unreported income.
Winckler also willfully failed to file tax returns for the years 2015, 2016, and 2017. Winckler received income from Medco Lab, Inc., but failed to file tax returns until after he learned the Internal Revue Service (IRS) was investigating him. Winckler knew he was required by law to make and file income tax returns to the IRS specifically stating his gross income.
This case was investigated by IRS Criminal Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
New Jersey Man Pleads Guilty to Conspiring with Someone Posing as DEA Agent to Defraud Victim of GoldRead the Press Release
BOSTON – A New Jersey man has pleaded guilty in federal court in Springfield to his role in a conspiracy which resulted in a Massachusetts victim converting her bank account funds into gold, because she was tricked into believing that her accounts had been compromised by purported drug traffickers.
Gaurang Contractor, 38, a citizen of India living in Jersey City, N.J., pleaded guilty on March 27, 2023 to one count of conspiracy to commit wire fraud. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for May 24, 2023. Contractor was previously arrested on state charges in August 2022 and later indicted by a federal grant jury in December 2022.
A man posing as an agent for the U.S. Drug Enforcement Administration (DEA) who referred to himself as “Oscar White,” contacted a victim in early August 2022 and told the victim that her bank accounts had been “compromised” by drug dealers. “Oscar White” directed the victim to convert her life savings to gold. “Oscar White” provided the victim with the name of a jewelry store in Hadley, Mass. where the victim could purchase gold. “Oscar White” then directed the victim to leave the gold in her unlocked vehicle and promised to send a “court officer” to pick up the gold for safekeeping by the DEA. The victim became suspicious and contacted law enforcement.
On Aug. 8, 2022, Contractor, unaware that the victim had contacted law enforcement, drove from New Jersey to Hadley, Mass, and conducted surveillance at the jewelry store. Unbeknownst to Contractor, a law enforcement officer, posing as the victim, entered the jewelry store and completed a sham transaction for two buckets worth of gold. Contractor followed the victim’s vehicle containing fake gold to a nearby parking lot. Upon arriving at the meeting location in the parking lot, Contractor removed the two buckets he believed to contain gold from the victim’s vehicle and placed them in his own car. He was subsequently arrested.
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to a $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Northwestern District Attorney David E. Sullivan; and Hadley Police Chief Michael A. Mason made the announcement today. Assistant U.S. Attorneys Danial Bennett and Kaitlin Brown of Rollins’ Worcester Branch Office are prosecuting the case.
Military Contractors Convicted for $7 Million Procurement Fraud SchemeRead the Press Release
A federal jury in the Northern District of Georgia convicted three military contractors today on one count of conspiring to defraud the United States and two counts of major fraud.
According to court documents and evidence presented at trial, former Envistacom LLC President and co-founder Alan Carson, former Envistacom Vice President Valerie Hayes, and the owner of another company, Philip Flores, conspired to defraud the United States at least from September 2014 through November 2016, by preparing and procuring sham quotes for government contracts totaling over $7.8 million. Carson, Hayes, and Flores also fraudulently prepared “independent” government cost estimates and other procurement documents for the award of these contracts and made false statements, representations, and material omissions to federal government contracting officials regarding these estimates being legitimate independent cost estimates and the sham quotes being “competitive.”
“Today, a jury returned a verdict to hold accountable these defendants who defrauded the federal government,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The Division and its law enforcement partners will continue to prosecute individuals who undermine the integrity of government procurement systems at American taxpayers’ expense.”
“Contractors are an integral part of our well-functioning government, and we expect them to be honest and forthright,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “The evidence at trial and the jury’s verdict show that these defendants placed their own benefit above honest dealing with the government.”
“The convictions of these individuals ensure the integrity of the contracting system that supports our nation’s warfighters,” said Special Agent in Charge Darrin K. Jones of the Southeast Field Office of the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS). “Companies that circumvent the contracting process for personal gain will be thoroughly investigated and held accountable for their fraudulent actions.”
“As this case demonstrates, those who attempt to defraud the government will be held accountable,” said Special Agent in Charge Scott Moreland of the Department of the Army Criminal Investigation Division (Army CID) Major Procurement Fraud Field Office. “Army CID and our law enforcement partners will vigorously enforce laws that protect our government from fraud.”
Carson, Hayes, and Flores were convicted of conspiracy to defraud the United States and major fraud. The individuals each face a maximum penalty of five years in prison and a fine of $250,000, or twice the pecuniary gain or loss, for conspiracy to defraud the United States. The maximum penalty for major fraud is 10 years in prison and a fine of $1 million, or, if the gross loss to the government or the gross gain to a defendant is $500,000 or greater, a fine of $5 million. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other relevant factors.
The Antitrust Division’s Washington Criminal II Section, the U.S. Attorney’s Office for the Northern District of Georgia, Army CID, and DCIS investigated the case.
Trial Attorney Brittany E. McClure of the Antitrust Division and Assistant U.S. Attorney Christopher J. Huber for the Northern District of Georgia prosecuted the case.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit www.justice.gov/atr/report-violations.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government – federal, state and local. For more information, visit https://www.justice.gov/procurement-collusion-strike-force.
Miami-Area Man Sentenced to 57 Months in Connection with Nationwide Gas Station Skimming SchemeRead the Press Release
ALBANY, NEW YORK – Yuny Hurtado Rodriguez, age 34, of Cutler Bay, Florida, was sentenced today to 57 months in prison for his role in an access device fraud conspiracy.
United States Attorney Carla B. Freedman, Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and Ketty Larco-Ward, Postal Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service (USPIS), made the announcement.
As part of his guilty plea on December 30, 2020, Rodriguez admitted that between April 2016 and July 2019, he conspired with others to commit access device fraud by building skimming devices designed to steal gas station customer information, installing those devices inside gas pumps in Albany, Broome, and Montgomery Counties, and elsewhere, and then using the information collected by those devices to create fraudulent credit and debit cards. The fraudulent cards were used to obtain money orders, gift cards, cash, and other things of value. As part of his plea agreement, Rodriguez agreed to be subject to a forfeiture money judgment in the amount of $606,000.
Senior United States District Judge Gary L. Sharpe also imposed a 3-year term of supervised release on Rodriguez to follow his term of incarceration.
This case was investigated by the FBI’s Albany Field Office and the USPIS Boston Division, with assistance from the FBI Field Offices in Miami and Pittsburgh, the USPIS Miami Division, and the United States Secret Service Miami Field Office. Assistant U.S. Attorney Rick Belliss prosecuted the case.
Mexican National Sentenced to 27 Years for Large-Scale Drug-Trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Mexican national residing in Raymore, Mo., was sentenced in federal court today for his role in a conspiracy to distribute large amounts of heroin, cocaine, and methamphetamine.
Abel Miranda-Diaz, 48, was sentenced by U.S. District Judge Roseann Ketchmark to 27 years in federal prison without parole.
On Sept. 21, 2022, Miranda-Diaz pleaded guilty to conspiracy to distribute one kilogram or more of heroin, five kilograms or more of cocaine, and 50 grams of more of methamphetamine from 2015 to March 18, 2020.
On March 18, 2020, federal agents saw co-defendant Christopher Aldana-Vergara, 33, a Mexican national residing in Independence, Mo., deliver two kilograms of heroin and two kilograms of methamphetamine to co-defendant Sergio Villegas-Sandoval, 44, a Mexican national residing in Kansas City, Kan. Agents arrested Villegas-Sandoval and seized the drugs. Agents also followed Aldana-Vergara to his residence; when he left his residence a short time later, agents conducted a traffic stop and arrested him. They searched his vehicle and found more than a kilogram of cocaine.
Miranda-Diaz was found hiding under Aldana-Vergara’s residence, a trailer with an attached garage. Agents searched the residence and found a large-scale methamphetamine conversion laboratory. Agents found seven one-gallon containers that contained a total of 31 kilograms of liquid methamphetamine, approximately 33 kilograms of crystal methamphetamine, approximately two kilograms of heroin, drug ledgers, and a Mossberg sawed-off shotgun.
Miranda-Diaz admitted to investigators that he maintained stash houses in the Kansas City area for the purpose of storing methamphetamine and was paid for this service by a Mexican drug cartel. Miranda-Diaz described how he would unload shipments of methamphetamine, which were often hidden in compartments of car tires, the drive shafts of trucks, gas tanks and car batteries.
According to court documents, Miranda-Diaz is in the country illegally after having been previously convicted and deported for illegally entering the United States.
Miranda-Diaz is the fourth and final defendant to be sentenced in this case after pleading guilty to participating in the drug-trafficking conspiracy. Aldana-Vergara was sentenced on Jan. 26, 2022, to 20 years in federal prison without parole. Yanez-Sotelo was sentenced on March 9, 2023, to 11 years in federal prison without parole. Villegas-Sandoval was sentenced on Oct. 18, 2022, to nine years in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorneys David Raskin and Patrick Edwards. It was investigated by the Drug Enforcement Administration and Homeland Security Investigations.
Massachusetts Man Pleads Guilty to Conspiracy to Steal FirearmsRead the Press Release
CONCORD – William Mejia, 19, of Lawrence, pleaded guilty in federal court to conspiring to steal firearms from federal firearms licensees, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, between August 29, 2021, and October 4, 2021, Mejia conspired with others to steal firearms from three New Hampshire Federal Firearms Licensees. During the course of the conspiracy, more than 40 firearms were stolen from Milford Firearms in Milford, Second Amendment Arms in Windham, and MacPhearson Firearms in Brentwood. Mejia’s fingerprints were found on one of the stolen firearms that was later recovered from a co-conspirator’s residence. Evidence recovered from a co-conspirator’s phone included pictures of Mejia holding stolen firearms as well admissions of his involvement in the conspiracy.
Mejia is scheduled to be sentenced on July 7, 2023.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Andover Police Department, the Brentwood Police Department, the Haverhill Police Department, the Lawrence Police Department, the Massachusetts State Police, the Rockingham County Sheriff’s Office, the Salem (NH) Police Department, the Somersworth Police Department, the Saugus Police Department, the Wellesley Police Department, and the Windham Police Department. The case is being prosecuted by Assistant U.S. Attorneys Anna Z. Krasinski, John J. Kennedy and Geoffrey W.R.Ward.
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Maryland Man Admits Fraudulently Obtaining more than $2 Million in COVID-19 Relief FundsRead the Press Release
NEWARK, N.J. – A Maryland man admitted that he illegally obtained more than $2 million in COVID-19 relief funds, U.S. Attorney Philip R. Sellinger announced today.
Mohamed Kamara, 42, of Greenbelt, Maryland, pleaded guilty by videoconference before U.S. District Judge Esther Salas to two counts of an indictment charging him with wire fraud and conspiracy to commit wire fraud.
According to documents filed in the case and statements made in court:
From March 2020 to October 2020, Kamara and others made fraudulent applications to the Small Business Administration (SBA) for Economic Injury Disaster Loans (EIDL). The SBA provided EIDLs collectively worth more than $750,000. Kamara received or attempted to receive funds in connection with the EIDLs.
From January 2020 to September 2020, fraudulent applications were submitted to the state of New Jersey for unemployment insurance benefits using the names, dates of birth, and/or Social Security numbers of other individuals. The state approved and transferred more than $1 million, including funds to an account Kamara controlled. Sentencing is scheduled for Oct. 10, 2023.
The charges of wire fraud and conspiracy to commit wire fraud are each punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross profits or gross loss suffered by the victims of his offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Jonathan Mellone in New York, with the investigation leading to the guilty plea. He also thanked the FBI Baltimore Field Office; the Small Business Administration, and the New Jersey Department of Labor & Workforce Development for their assistance.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
kamara.indictment.pdfManchester Man Pleads Guilty to Fentanyl Distribution and Gun Possession OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that EDUARDO COLON, 34, of Manchester, pleaded guilty today before U.S. District Judge Omar A. Williams in Hartford to fentanyl distribution and firearm possession offenses.
According to court documents and statements made in court, on June 3, 2022, the FBI’s Northern Connecticut Gang Task Force made a controlled purchase of 1,000 wax sleeves of fentanyl from Colon in front of his Manchester residence on Buckland Hills Road. Later that day, a court-authorized search of Colon’s residence revealed approximately 2,100 sleeves of fentanyl, approximately 250 grams of unpackaged fentanyl, and a loaded 9mm semiautomatic handgun.
Colon’s criminal history includes state felony convictions for narcotics offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Colon pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years, and one count of unlawful possession of a firearm by a felon, an offense that carries a maximum term of imprisonment of 10 years. A sentencing date is not scheduled.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, Manchester Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. This case is being prosecuted by Assistant U.S. Attorney A. Reed Durham.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: Fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Man Convicted of Alexandria and Monroe Bombings Gets SentencedRead the Press Release
ALEXANDRIA, LA – Daniel Aikens, 40, of Alexandria, Louisiana, was sentenced March 28, 2023, to 16 years in prison for 8 counts of illegal explosive related charges by United States Senior District Judge Dee D. Drell announced United States Attorney Brandon B. Brown. On November 18, 2022, the jury found Aikens guilty of 3 counts of Making a Destructive Device, 3 counts of Possession of a Destructive Device in violation of the NFA, 1 count of Use of an Explosive to Commit a Federal Felony and 1 count of Conveying Malicious False Information.
The government presented evidence at trial that on September 12, 2019, an explosion occurred at Cloyd’s Beauty School in Monroe, Louisiana. The victim was placing boxes inside a commercial garbage can when the explosion occurred and sustained burns on his hands and face. Remnants of the device were collected by agents for analysis by the ATF laboratory and found to contain a rocket motor commonly sold at hobby stores and a pressure cooker. Law enforcement was unable to identify a suspect at the time but obtained video footage from Hobby Lobby in West Monroe, LA showing a black male purchasing a rocket motor two days before the explosion. Agents also collected numerous items for DNA analysis, including a piece of tape located on the device. Further, on December 20, 2019, officers responded to reports of an explosion at a Texaco gas station located in Alexandria, Louisiana. 911 dispatch operators received a call from an unknown male caller advising that an explosion had occurred.
On the morning of January 2, 2020, an employee at the Payday Today located on MacArthur Drive, Alexandria, Louisiana received a phone call from cell phone number 716-563-4031. The caller initially spoke with an employee about a set of lost keys. While the employee was in the parking lot looking for the keys, an explosive device detonated in a trash can near the building. The caller advised that he caused the explosion and demanded $10,000 in cash. The caller further advised that there was second device on the scene, and he would cause it to detonate if the employee did not comply. The caller then recited the employee’s home address and explained that he knew that she had three children. He then threatened to kill her and her family if she did not comply. The caller then asked why the employee was going there instead of the bank. This led the employee to believe that the caller was nearby and observing her actions. The employee advised the caller that she needed a bottle of water, but once inside the store, she panicked, and the call was disconnected. The employee ultimately did not provide any money to the bomber. Among the blast debris collected from the scene, investigators located metal pipe fragments, which is indicative of a pipe bomb detonation.
During the investigation, law enforcement contacted employees at a nearby gas station. The gas station is within approximately 400 feet of Payday Today and was determined to be an ideal overwatch location to observe any activity at PayDay Today. Surveillance footage retrieved from the gas station showed a white Jeep Cherokee at the location. A tall unidentified black male entered the store and made a small purchase, shortly before the explosion and call at PayDay Today. Surveillance footage even showed the male looking in the direction of PayDay Today while inside the store on the telephone. A BOLO alert was provided to Alexandria area law enforcement, with screen captures of a white Jeep Cherokee taken from the gas station and other businesses near the Payday Today bombing. 4 days later, the Rapides Parish Sheriff’s Office located the Jeep Cherokee and initiated a traffic stop. The driver was identified as Daniel Aikens and matched the description of the subject that was present at the gas station shortly before the explosion. Investigators also secured a search warrant for Aikens’ home and pursuant to the search, observed damage in the kitchen area consistent with a blast and located what appeared to be fragments of galvanized pipe and blast debris indicative of a pipe bomb detonation.
When arresting Aikens, agents secured his cellular telephone and discovered that he had been communicating with a friend via text message concerning the Monroe bombing. Agents later interviewed this friend and the friend stated that Aikens communicated with him after the Monroe and Texaco bombings. He even stated that Aikens called him on the morning of the explosion from his personal cell phone and allowed him to listen in as he called Payday Today from the “bomb phone.” Forensic examination of Aikens’ personal cell phone revealed Google Street View images of the Ferrand Street area near Cloyd’s Beauty School in Monroe, Louisiana. The phone’s web history showed a search for “how to build a pressure cooker bomb” and included a possible pdf download. A piece of black electrical tape was recovered from the pressure cooker device and found to contain a mixture of a known DNA profile found to be 1 trillion times more likely to have originated from Aikens. Cell phone and 911 records confirmed that the “bomb phone” was also used to call emergency services during the Texaco explosion on December 20, 2019. The 911 recording depicts a male caller (who law enforcement identified as Aikens) advising that he was passing by, there was an explosion, and requests law enforcement. Location data from Aikens’ personal phone showed that he frequented several stores in Lafayette, LA, the day before the Texaco explosion. Specifically, it showed Aikens making stops near Home Depot, Academy Sporting Goods and Hobby Lobby. Surveillance video from Home Depot showed Aikens’ entering the store at 12:33pm. Twenty-three minutes later, he purchased a drill bit, two metal pipe caps, a steel pipe and adhesive.
Aikens’ cell phone was then located near Academy Sporting Goods a short time later. Agents reviewed sales receipts around the time that Aikens was in the store. They located a sales receipt at 1:39pm for 2lbs. of Hodgdon H335, Rifle Powder. Included in that same purchase were two children’s fishing rod and reel combos and a lady’s rod and reel combo. All three fishing combos were later collected from Aikens’ girlfriend who advised that she and her two children had received the fishing equipment as Christmas gifts from Aikens. Aikens then traveled to the nearby Hobby Lobby. A review of the December 19, 2019, surveillance video showed Aikens purchasing what appears to be rocket motor starters. Aikens returned to the store on December 21, 2019, and made another purchase identical to the one on December 19.
“Simply put, Daniel Aikens is a domestic terrorist. The citizens of the Western District of Louisiana should be able to move about their respective communities freely on a day-to-day basis without fear of hurt, harm or danger and this defendant deserves every single day of the sentence handed down by the court. The sentencing hearing showed that the victims involved still are healing emotionally and I hope we brought them some manner of justice. The prosecution team and state, local and federal investigators are to be commended for a job well done in collaborating to ensure that this defendant is held accountable. Given the investigator’s swift action, no other individuals were harmed. I pray that the conviction and sentence will serve as a deterrent for anyone thinking of committing such a selfish and inhumane crime,” stated United States Attorney Brown.
“ATF will continue to prioritize and aggressively investigate crimes involving the criminal use of explosives. Explosives can lead to serious injury, damage, and create fear in communities like happened to the citizens of Alexandria and Monroe,” said ATF New Orleans Special Agent in Charge Kurt Thielhorn. “ATF remains vigilant working with its partners to keep the public safe by investigating and perfecting charges against those who use explosives with criminal intent.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), FBI, Rapides Parish Sheriff’s Office, Alexandria Police Department, U.S. Marshal’s Service, Louisiana State Police, and the Alexandria Fire Department investigated the case, with the assistance of the Alexandria Public Safety Commissioner and the City of Alexandria Mayor’s Office. Assistant United States Attorneys Jamilla A. Bynog, LaDonte A. Murphy and Daniel J. McCoy prosecuted the case.
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Madison Man Sentenced to 60 Months for Methamphetamine TraffickingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Mario Johnson, 38, Madison, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 60 months in federal prison for distributing 50 grams or more of methamphetamine. Johnson pleaded guilty to this charge on September 14, 2022.
From May 2021 to August 2021, law enforcement agents conducted four controlled buys of methamphetamine from Johnson. The combined amount of methamphetamine from these controlled buys totaled over one pound.
During the sentencing hearing, Judge Conley stated that Johnson had become involved in “serious drug dealing” for financial reasons and took note of Johnson’s prior criminal history, which included domestic abuse offenses. Ultimately, Judge Conley imposed a 60-month prison term followed by a four-year term of supervised release. He urged Johnson to use his time in prison to seek programming for his mental health, substance abuse, and anger management issues.
The charge against Johnson was the result of an investigation conducted by the Drug Enforcement Administration, Dane County Narcotics Task Force, Wisconsin Department of Justice Division of Criminal Investigation, U.S. Postal Inspection Service, Federal Bureau of Investigation, and Sun Prairie Police Department. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. Assistant U.S. Attorneys Aaron Wegner and Anita Marie Boor prosecuted this case.
Madison County Couple Indicted on COVID-19 Program Fraud ChargesRead the Press Release
BIRMINGHAM, Ala. – A Madison County couple were indicted today for defrauding the Small Business Administration’s (SBA) Paycheck Protection Program (PPP), announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.
A five-count indictment filed in U.S. District Court charges John D. Scoggins, 43, and Jennifer C. Scoggins, 37, husband and wife, both of Huntsville, with conspiracy to commit wire fraud.
According to the indictment, between February and June 2021, the Scoggins conspired to defraud the SBA and the United States Government by applying for and/or receiving approximately $1.7 million in fraudulent PPP loans on behalf of four purportedly operational businesses. The Scoggins submitted loan application containing material misrepresentations and supported by falsified and fraudulent documentation. The Scoggins used the PPP loan funds for a series of unauthorized purposes, including purchasing a home, taking a family vacation, and plastic surgery.
FBI investigated the case. Assistant U.S. Attorney Jonathan “Jack” Harrington is prosecuting the case.
Throughout the country, federal, state, and local law enforcement are on high alert to investigate reports of individuals and businesses engaging in a wide range of fraudulent and criminal behavior. For more information about these scams visit
https://www.justice.gov/coronavirus/combatingfraud.
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.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Leader of $8 Million Medicaid Fraud Scheme Sentenced to 95 Months in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JULIO ALVARADO was sentenced to 95 months in prison for leading a sprawling scheme to defraud Medicaid of millions of dollars through the billing of fraudulent transportation claims. ALVARADO previously pled guilty to one count of healthcare fraud. U.S. District Judge Kimba M. Wood imposed today’s sentence.
U.S. Attorney Damian Williams said: “Julio Alvarado was the leader of a multi-million-dollar scheme to defraud Medicaid by filing false claims for medical transportation services that were never provided. He brazenly lined his own pockets with Medicaid funds meant to help the neediest New Yorkers. Today’s sentence makes clear that this type of criminal conduct will be prosecuted and punished to the full extent of the law.”
According to court filings and statements made in court proceedings:
From August 2017 to February 2020, KJ Transportation C Services Inc. (“KJ”) was paid more than $20 million for providing transportation services for Medicaid enrollees in the New York City area. A large volume of those claims were fraudulent. In some instances, the Medicaid recipient was deceased or out of the country when KJ claimed it was transporting that person to medical appointments. In other instances, the company used stolen identities, whereby the Medicaid recipient had never heard of KJ and had never taken any rides with the company. In other instances, the Medicaid recipients had received unlawful kickbacks from defendants in exchange for either providing KJ their Medicaid information or for fraudulently scheduling trips they did not take.
ALVARADO, who supervised more than a dozen other participants in the scheme, was responsible for billing more than $8 million in fraudulent trip claims.
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In addition to the prison term, ALVARADO, 63, of Yonkers, New York, was sentenced to three years of supervised release and ordered to pay $8,507,115 in restitution and to forfeit $8,507,115.
Mr. Williams praised the outstanding work of Homeland Security Investigations and the United States Department of Health and Human Services’ Office of Inspector General. He also thanked the Office of the Medicaid Inspector General for its assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Kedar S. Bhatia and Brandon D. Harper are in charge of the prosecution.
Las Vegas Felon Sentenced to Prison for Unlawful Possession of Short-Barrel Rifle with Obliterated Serial NumberRead the Press Release
LAS VEGAS – A prior convicted felon and Las Vegas resident was sentenced yesterday by U.S. District Judge Kent J. Dawson to 46 months in prison followed by three years of supervised release for unlawful possession of a short-barrel AR-15 pattern rifle with an obliterated serial number.
Martel Deavon Nelson, 38, pleaded guilty in November 2022 to felon in possession of a firearm.
According to court documents, on July 5, 2020, Nelson left his car running at the curb in the valet parking area outside a Las Vegas casino’s entrance. He entered the casino and walked bare-footed to the bar and said to the cashier “Give me my money.” He refused to leave the casino and he became belligerent, lunging at one of the security officers. While Nelson scuffled with security personnel inside the casino, a security officer outside the casino looked into Nelson’s car and observed an AR-15 pattern firearm between the driver seat and center console. Las Vegas Metropolitan Police Department officers responded and during the execution of a search warrant of Nelson’s vehicle recovered the short-barreled rifle with an obliterated serial number, a vertical fore-grip, and a large-capacity magazine inserted.
Nelson has a prior felony conviction in San Bernardino County, Calif., for attempted murder, and by law he is prohibited to possess a firearm.
United States Attorney Jason M. Frierson for the District of Nevada and Acting Special Agent in Charge Joshua Jackson for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
The ATF investigated the case. Assistant United States Attorney Dan Cowhig prosecuted the case.
The case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
If you have information pertaining to illegal firearms activity such as a straw purchase, please contact the ATF at 1-800-ATF-GUNS (1-800-283-4867). Anonymous tips may also be submitted to ATF through the ReportIt mobile app.
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Lake City Man Sentenced to Nine Years in Federal Prison for Firearm and Drug OffensesRead the Press Release
Jacksonville, Florida – Chief U.S. District Judge Timothy J. Corrigan today sentenced John Nathan Hemingway (52, Lake City) to nine years in federal prison for possession with the intent to distribute methamphetamine, cocaine, and cocaine base – also known as “crack” cocaine – and possession of a firearm in furtherance of a drug trafficking crime. Hemingway had pleaded guilty on October 4, 2022. As part of his plea, Hemingway agreed to forfeit the cash, firearm, and ammunition found in his home.
According to court documents, on multiple occasions, a confidential informant purchased crack cocaine that had been supplied by Hemingway at his home in Lake City. Following these controlled purchases, a Special Agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives obtained a federal search warrant authorizing the search of Hemingway’s home. On February 15, 2022, law enforcement searched the home and located a digital scale, plastic baggies, more than $11,000 in cash, a loaded semi-automatic pistol, methamphetamine, powder cocaine, and crack cocaine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Columbia County Sheriff’s Office, the Lake City Police Department, the Drug Enforcement Administration, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Michael J. Coolican. Assistant United States Attorney Mai Tran is handling the forfeiture of assets.
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.
Kaplan Man Pleads Guilty to Conspiracy to Commit Wire Fraud and Money LaunderingRead the Press Release
NEW ORLEANS –GRANT C. MENARD, age 36 and a resident of Kaplan, Louisiana, pleaded guilty today to one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering before U.S. District Court Judge Jane Triche-Milazzo, announced U.S. Attorney Duane A. Evans of the Eastern District of Louisiana.
As according to court documents, MENARD conspired with RYAN MULLEN, DUANE DUFRENE, DILLON ARCENEAUX, LANCE VALLO, and ZEB SARTIN to use a number of shell Louisiana companies with no assets to defraud a merchant cash advance company based in Georgia. MULLEN and DUFRENE helped establish ARCENEAUX, VALLO, MENARD, and SARTIN as the owners of existing corporations. MULLEN and DUFRENE then created fake vendor accounts for the corporations, and MULLEN, with the aid of another person, created falsified bank records for the companies. MULLEN then used an alias, claiming to be a broker for the companies he helped create.
Through the aid of another broker, MULLEN supplied the victim merchant cash advance company with the fake vendor accounts and false bank records in order to obtain funding. The victim cash advance company approved the advances and began to electronically wire ARCENEAUX, VALLO, MENARD, and SARTIN millions of dollars in advances. ARCENEAUX, VALLO, MENARD, and SARTIN laundered a portion of the funds by paying MULLEN and DUFRENE percentages of the funds. ARCENEAUX, VALLO, MENARD, and SARTIN then closed their non-existent businesses before fully repaying the victim merchant cash advance company, resulting in overall losses of approximately $6.4 million. MENARD was responsible for approximately $649,990 in losses to the victim.
MENARD is to be sentenced on July 5, 2023 and faces a maximum sentence of five years on the wire fraud conspiracy, and a maximum sentence of up to twenty years on the money laundering conspiracy. After imprisonment, the defendant faces up to three years of supervised release, and up to a $250,000 fine on the wire fraud count, and up to three years of supervised release, and up to a $500,000 fine on the money laundering count. Each count also carries a mandatory special assessment fee of $100.
U.S. Attorney Evans commended the special agents of the Federal Bureau of Investigation and IRS-Criminal Investigation for their handling of the matter. The case is being prosecuted by Assistant United States Attorneys Edward J. Rivera and Andre Lagarde.
Jury Finds Oklahoma Man Guilty of Smuggling Firearm into MexicoRead the Press Release
ALPINE, Texas – A federal jury in Pecos convicted an Oklahoma City man last week for illegal smuggling of goods from the United States.
According to court documents and evidence presented at the two-day trial, Jesus Soto-Parra, 31, drove into Mexico in December 2022 and was turned back by Mexican authorities due to vehicle registration issues. As Soto-Parra returned through the Presidio, Texas Port of Entry, Customs and Border Protection (CBP) Officers discovered a firearm, body armor and ammunition in his vehicle.
U.S. Attorney Jaime Esparza for the Western District of Texas and Special Agent in Charge Francisco B. Burrola for the Homeland Security Investigations El Paso Division made the announcement.
CBP and HSI are investigating the case.
Assistant U.S. Attorneys Kevin Cayton and Matthew Ellis are prosecuting the case.
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Jury Convicts Ionia Man of Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – An Ionia, Mo., man was convicted at trial today for his role in a conspiracy to distribute methamphetamine in Pettis County, Mo.
Thomas W. Pitts, 35, was found guilty of one count of conspiracy to distribute methamphetamine and two counts of distributing methamphetamine.
Evidence introduced during the trial indicated that Pitts participated in the drug-trafficking conspiracy from Feb. 18 to Nov. 16, 2021.
On Oct. 6, 2021, a confidential informant purchased approximately 28.8 grams of methamphetamine from Pitts for $700. An undercover federal agent was also present at Pitts’s residence during the transaction. On Oct. 28, 2021, the confidential informant and the undercover federal agent went to Pitts’s residence again. The confidential informant purchased approximately 57.6 grams of methamphetamine from Pitts for $900. Both of the transactions were recorded.
On Nov. 16, 2021, law enforcement officers executed a search warrant at Pitts’s residence and seized ammunition, a small amount of methamphetamine, and items associated with drug distribution.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for one hour and 10 minutes before returning guilty verdicts to U.S. District Judge Stephen R. Bough, ending a trial that began Monday, March 27.
Under federal statutes, Pitts is subject to a mandatory minimum sentence of 25 years in federal prison without parole due to his prior drug-trafficking convictions, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Byron H. Black and Gregg R. Coonrod. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Clair County, Mo., Sheriff’s Office, the Henry County, Mo., Sheriff’s Department, and the Mid-Missouri Drug Task Force.
Jefferson County Man Sentenced for Mailing Threatening LettersRead the Press Release
ALBANY, NEW YORK – Jesse Bartlett a/k/a the “Chinese Zodiac Killer,” age 46, of LaFargeville, New York, was sentenced today to 16 months in prison for mailing threatening letters.
United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
From about April 2021 to May 2022, and while using the alias “Chinese Zodiac Killer,” Bartlett mailed threatening communications to media outlets, government offices, houses of worship, and private businesses throughout New York, as well as in New Jersey, Connecticut, Pennsylvania, New Hampshire, Vermont, and the District of Columbia. In the letters, which he signed as the “Chinese Zodiac Killer,” Bartlett wrote that he killed people, ate their flesh, and that he intended to kill more people, including an unnamed bus driver.
Chief United States District Judge Brenda K. Sannes also imposed a 3-year term of supervised release to follow Bartlett’s term of incarceration.
The FBI’s Joint Terrorism Task Force (JTTF), with assistance from the New York State Police and the United States Postal Inspection Service, investigated this case. Assistant U.S. Attorney Alexander Wentworth-Ping prosecuted the case.
INTERPOL Washington Hosts International Cybersecurity WorkshopRead the Press Release
Today, INTERPOL Washington Director Michael A. Hughes hosted INTERPOL’s Cybercrime Director Craig Jones for a cybersecurity workshop with law enforcement leaders from across the U.S. government. Participants in the workshop represented multiple agencies, each critical to our cybersecurity infrastructure.
"Cybercrime is a global problem that requires a global law enforcement response,” said Director Hughes. “With this workshop, we held some of t
Canvahe most important, timely, and relevant discussions in policing today. By strengthening our collaboration through workshops with international partners like INTERPOL, we can bolster our ability to take on new and emerging threats as a global community and work together to create a safer world.”
“We cannot underestimate the importance of partnerships,” said Director Jones. “This workshop was an excellent opportunity to understand how INTERPOL and our member countries can together counter and combat cybercrime nationally, regionally, and globally.”
Throughout the workshop, the law enforcement leaders discussed the role of police agencies in preventing cybercrime, the challenges of investigating cyber criminals, and the latest trends in the cyber landscape. U.S. leaders also discussed their plans to implement the U.S. National Cybersecurity Strategy 2023, while Director Jones discussed INTERPOL’s Global Cybercrime Strategy 2022-2025. The workshop was instrumental in developing collaborative partnerships through INTERPOL that can help achieve a safer and more secure digital ecosystem for all Americans.
INTERPOL Washington Deputy Director Marc Zimmermann, INTERPOL Cybercrime Director Craig Jones, and INTERPOL Washington Director Michael A. Hughes pose together during today's international cybersecurity workshop.A component of the U.S. Department of Justice co-managed by the U.S. Department of Homeland Security, INTERPOL Washington—the U.S. National Central Bureau (USNCB)—is the designated U.S. representative to INTERPOL. It serves as the national point of contact and coordination for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, tribal, and territorial law enforcement agencies.
Hong Kong Company, CEO, Agree to Permanent Injunction, Abandon Funds Fraudulently Obtained from Iowa CompanyRead the Press Release
Gold Wings (HK) Limited (“Gold Wings”), a Hong Kong company, and its CEO, Min Zheng, have agreed to enter a consent decree to resolve allegations made by the United States that they participated in and furthered a fraud scheme against an Iowa company. In the consent decree, United States District Court Chief Judge Leonard T. Strand prohibited Gold Wings and Zheng from continued fraudulent activity, exercising control over fraudulently obtained funds, and contesting ownership over certain fraud proceeds.
The United States alleged in a court filing that Gold Wings and Zheng participated in a scheme that defrauded an Iowa company of over $8 million by knowingly receiving and laundering $2.3 million sent to them for purposes of purchasing a chemical used to manufacture fertilizer. The United States alleged the victim company never received the promised chemicals, yet Gold Wings and Zheng almost immediately dissipated the victim’s funds, leaving only slightly more than $575,000 in the recipient bank account.
Under the parties’ consent decree, Gold Wings and Zheng disclaimed all property interests in the $2.3 million received from the victim company and agreed not to contest ownership of those funds in any future proceeding, which will allow for the return of fraudulently obtained funds to victims. They further are permanently enjoined from engaging in certain related financial transactions and engaging in future fraudulent or unlawful activity.
“Every day, individuals and entities around the country fall victim to bad actors committing scams both at home and abroad,” said United States Attorney Timothy T. Duax. “We take these schemes seriously and will use all tools at our disposal to prevent and remedy the damages stemming from such fraudulent schemes. In this case, we are pleased fraud victims will have the opportunity to recoup their funds.”
The case was handled by Assistant United States Attorneys Matthew Gillespie and Ron Timmons and was investigated by the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CV-3015-LTS-KEM.
Follow us on Twitter @USAO_NDIA.
Honduran National Sentenced to Prison for Illegally Reentering the U.S.Read the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MARLON AMAYA-LOPEZ, also known as Elder Figueroa, 34, a citizen of Honduras last residing in Bridgeport, was sentenced today by U.S. District Judge Janet Bond Arteron in New Haven to 12 months of imprisonment for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, Amaya-Lopez was previously deported and removed from the U.S. to Honduras following a felony conviction in 2007 in Connecticut Superior Court for attempted robbery in the second degree, and again in 2015 following a misdemeanor conviction for theft of property. He illegally reentered the U.S. in 2016. In February 2020 and again in January 2021, Amaya-Lopez was arrested in Bridgeport for motor vehicle violations.
Amaya-Lopez has been detained since his federal arrest on November 30, 2022. He pleaded guilty to the offense on January 3, 2023.
This matter was investigated by U.S. Immigration and Customs Enforcement and was prosecuted by Assistant U.S. Attorneys and Stephanie T. Levick and Neeraj N. Patel.
Home health care owner sent to prisonRead the Press Release
HOUSTON – A 63-year-old Sugar Land resident has been ordered to prison for conspiracy to pay and receive kickbacks, announced U.S. Attorney Alamdar S. Hamdani.
Joyce Agu pleaded guilty Oct. 17, 2022.
Today, U.S. District Judge Randy Crane ordered her to prison for a total of 60 months to be immediately followed by three years of supervised release. At the hearing, the court heard additional regarding Agu’s family and her charitable contributions. However, Judge Crane considered how extensive the fraudulent scheme was and the millions that were siphoned from the Medicare program. In handing down the sentence, the court noted the amount of fraud.
At the time of her plea, Agu admitted she paid others to certify her clients for home health services in order to bill Medicare. These beneficiaries did not qualify for the services and, in some cases, did not receive them.
Medicare paid Agu’s companies over $3 million based on the fraudulent claims.
Agu was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Department of Health and Human Services - Office of Inspector General, FBI and Texas Attorney General’s - Office Medicaid Fraud Control Unit conducted the joint investigation. Assistant U.S. Attorneys Rodolfo Ramirez and Grace Murphy prosecuted the case.
Haverhill Man Pleads Guilty to Drug ConspiracyRead the Press Release
BOSTON – A Haverhill man pleaded guilty yesterday to distributing cocaine, methamphetamine and fentanyl and to conspiring to distribute fentanyl and cocaine.
Elijah Declet, 26, pleaded guilty to the charge before U.S. District Court Judge Indira Talwani, who scheduled sentencing for June 16, 2023.
Declet was charged in November 2021 along with 12 others in connection with a large drug conspiracy centering around the Gangster Disciples in Lawrence, Haverhill and Methuen. The investigation, which began in August 2020, intercepted communications between Gangster Disciples’ leaders, members and drug suppliers pertaining to their alleged distribution of fentanyl, cocaine, methamphetamine and Suboxone in Massachusetts, Maine and southern New Hampshire as well as into the Essex County Jail. Calls were intercepted between Declet and other gang members, who conspired to distribute cocaine and fentanyl pills, and on several occasions, Declet distributed cocaine and methamphetamine pills to a cooperating witness.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation; and John E. Mawn, Interim Colonel of the Massachusetts State Police made the announcement. Assistant U.S. Attorney Philip C. Cheng of Rollins’ Organized Crime & Gang Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is also a part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Hampton Man Sentenced to 15 Years for Defrauding Elderly Victims and Tax EvasionRead the Press Release
NEWPORT NEWS, Va. – A Hampton man was sentenced today to 15 years in prison for defrauding victims in the Hampton Roads area out of more than $630,000 and evading the assessment of more than $50,000 in income taxes.
According to court documents, between 2013 and 2019, Clarence M. Rice Jr., 56, falsely represented to victims that he was going to receive a sizeable inheritance from his father’s death, under the condition that Rice paid off all his existing debts. He tricked victims into giving him large sums of money using the false representations that he needed the funds to obtain his inheritance.
As a result of his fraud scheme, Rice stole more than $350,000 from a 75-year-old retired bricklayer and more than $140,000 from an elderly blind man. In total, Rice obtained at least $632,017.44 in fraudulent proceeds from the scheme. As part of the plea, Rice agreed that his victims were of limited financial means and suffered substantial hardship from his fraud.
Despite earning income from his fraud scheme, Rice has not filed taxes since 2011. Between 2015 and 2019, he defrauded the IRS by living a cash lifestyle, negotiating checks from victims for U.S. currency instead of depositing them in bank accounts, hiding assets on prepaid cards, and lying to law enforcement about his income and assets. The approximate tax due and owing resulting from Rice’s failure to pay his personal income tax is $52,064.18.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Kareem Carter, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen.
Norfolk Police Department and Hampton Police Department provided significant assistance in this case.
Assistant U.S. Attorney D. Mack Coleman and Managing Assistant U.S. Attorney Brian J. Samuels prosecuted the case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
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. 4:21-cr-60.
Fort Wayne Man Sentenced to 120 Months in PrisonRead the Press Release
FORT WAYNE –Marcel Toussaint, 37 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to distributing more than 50 grams of methamphetamine, announced United States Attorney Clifford D. Johnson.
Toussaint was sentenced to 120 months in prison to be followed by 5 years of supervised release.
According to documents in the case, between June 25, 2020, and August 24, 2020, Toussaint distributed various quantities of methamphetamine.
This case was investigated by the Drug Enforcement Administration with the assistance of the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
Former construction company president sentenced for attempting to monopolize highway construction, repair contractsRead the Press Release
BILLINGS — The former president of a paving and asphalt contractor based in Billings was sentenced today to three years of probation, with six months of home detention, and fined $27,000 after he admitted to attempting to monopolize the market for highway crack-sealing services in Montana and Wyoming, U.S. Attorney Jesse Laslovich said.
Nathan Nephi Zito, 44, of Billings, pleaded guilty in October 2022 to an information charging him with one felony count of attempted monopolization in violation of the Sherman Act.
The government alleged in court documents that Zito attempted to cheat the competitive bidding process by monopolizing the markets for highway crack-sealing services in Montana and Wyoming by proposing that his company and its competitor allocate regional markets. As early as January 2020, Zito approached a competitor about a “strategic partnership” and proposed that the competitor stop competing with Zito’s company for highway crack-sealing projects administered by Montana and Wyoming. In return, Zito’s company would stop competing with the competitor for projects administered by South Dakota and Nebraska. Zito offered to pay his competitor $100,000 as additional compensation for lost business in Montana and Wyoming. Zito further proposed that he and his competitor enter into a sham transaction to disguise their collusion.
“If Zito had succeeded in his efforts to game the competitive bidding process, there would have been a dangerous probability he would have eliminated competition and been free to raise prices or limit production, which would have negatively impacted the American taxpayer. I am grateful to Assistant United States Attorney Bryan Dake and our valued partners at both the Antitrust Division within the Department of Justice and the Department of Transportation’s Office of Inspector General for their creative and hard work on this case,” U.S. Attorney Laslovich said.
“Defendant Zito’s sentence should serve as a deterrent for contractors tempted by greed when bidding on contracts funded with federal dollars,” said Cissy Tubbs, Special Agent-In-Charge, Department of Transportation (DOT) Office of Inspector General (OIG), Western Region. “We rely on DOT operating agencies such as the Federal Highway Administration to sound the alarm when circumstances in these complex bidding processes seem amiss, as occurred here. Consequently, OIG is committed to pursuing these multifaceted cases with our partners including the Justice Department’s Procurement Collusion Strike Force, the Antitrust Division, and the Montana United States Attorney’s Office.”
The case is the result of a joint investigation conducted by the Antitrust Division’s San Francisco Office, the U.S. Attorney’s Office for the District of Montana and the Department of Transportation Office of Inspector General as part of the Justice Department’s Procurement Collusion Strike Force (PCSF). In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending, go to https://www.justice.gov/procurement-collusion-strike-force.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
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Former State Correctional Officer Pleads Guilty to COVID-19 Relief FraudRead the Press Release
MIAMI – Alfredo Hudson, 36, a former correctional officer with the Florida Department of Corrections (FDC) has pled guilty to wire fraud in connection with two fraudulent loan applications under the Paycheck Protection Program (PPP) before U.S. Magistrate Judge Lisette M. Reid.
On June 12, 2020, Hudson submitted a false and fraudulent PPP loan application claiming to be a self-employed individual operating a recreation business under the name “Alfredo Enterprise.” The PPP loan application falsely represented Alfredo Enterprise’s monthly payroll and included a false and fraudulent IRS Form 1040, Schedule C for tax year 2019. As a result of the false and fraudulent application, Hudson obtained a $10,104 PPP loan from a Georgia-based lender.
On April 25, 2021, Hudson submitted a second false and fraudulent PPP loan application, this time claiming to be a sole proprietor operating a barbershop under the tradename of “Alfredo Enterprise.” The second draw PPP loan application also fraudulently represented Alfredo Enterprise’s 2019 gross income. In support of the application, Hudson submitted a different false and fraudulent IRS Form 1040, Schedule C, for tax year 2019. Once again, the fraudulent application was approved, and Hudson obtained approximately $11,251 in PPP loan proceeds from a Florida-based lender.
Subsequently, Hudson submitted a false and fraudulent PPP loan forgiveness application to the Small Business Administration (SBA) seeking repayment forgiveness for the PPP second draw loan he received from the Florida-based lender. As a result of this false and fraudulent forgiveness application, the SBA excused the defendant from any repayment obligation on the second draw PPP loan.
Hudson is scheduled for sentencing on May 24, at 2:00 p.m. before U.S. District Judge Roy K. Altman. He faces a possible maximum sentence of up to 20 years in prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, and Special Agent in Charge Amaleka McCall-Brathwaite, Small Business Administration, Investigations Division’s Eastern Region (SBA-OIG), announced the guilty plea.
FBI Miami and SBA-OIG investigated the case, with assistance from the Florida Department of Corrections’ (FDC) Office of Inspector General (OIG). Assistant U.S. Attorney Edward N. Stamm is prosecuting the case.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-20060.
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Former Health Care Worker Sentenced for Fentanyl TheftsRead the Press Release
KANSAS CITY, KAN. – A former nurse was sentenced to 12 months and a day in prison for stealing fentanyl from two hospitals where she worked.
Faith Naccarato, 42, of Kansas City, Missouri, pleaded guilty to two counts of tampering with a consumer product and two counts of possession of fentanyl by deception and subterfuge.
According to court documents, between January 2020 and April 2020, Naccarato, used her fingerprint to remove vials of fentanyl from an automated dispensing cabinet in the surgical specialty unit at Menorah Medical Center in Overland Park. She replaced the fentanyl with saline solution before placing the vials back in the cabinet.
Between February 2020 and April 2020, Naccarato took vials of fentanyl from an automated dispensing cabinet in the noninvasive cardiology unit at AdventHealth Shawnee Mission in Meriam. She replaced the fentanyl with saline solution and then placed the vials back in the cabinet.
Naccarato told investigators she stole the fentanyl for personal use.
“Our medical facilities are not immune from the effects of the growing fentanyl addiction crisis in our country, and as a result, the District of Kansas prosecutes a growing number of cases against health care providers accused of stealing medication intended to go to patients,” said Kate E. Brubacher,
U.S. Attorney. “The Justice Department believes stopping these abuses is paramount to guarding the public trust: people must have confidence in the integrity of their health care.”
The Drug Enforcement Administration (DEA) investigated the case.
Assistant U.S. Attorneys Faiza Alhambra and Trent Krug prosecuted the case.
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Former Financial Advisor and Tax Preparer Sentenced to 21 Months in Prison for Mulitiple Counts of Preparing False Tax ReturnRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 21 months in prison, one year of supervised release, and fined $12,000, for preparing a false tax return. Terrence LeGall, 69, of Linden, New Jersey, pleaded guilty on Nov. 2, 2022, before U.S. District Court Judge John M. Vazquez in Newark federal court to a superseding indictment charging him with 12 counts of aiding and abetting the preparation of a false tax return.
Former Celina Physician Found Guilty of Health Care Fraud, Violations of the Controlled Substances Act, and Obstruction of JusticeRead the Press Release
NASHVILLE – A former Clay County, Tennessee physician was found guilty yesterday of 45 counts of violations relating to the Controlled Substances Act (CSA), health care fraud, and obstruction of justice, announced acting U.S. Attorney Thomas J. Jaworski.
A federal jury began deliberating Friday and returned the verdict yesterday against Gilbert Ross Ghearing 69, of Crossville, Tennessee, following a five-week trial in U.S. District Court. The jury found Ghearing guilty of 21 counts of health care fraud, 22 counts of prescribing controlled substances without legitimate medical purpose outside the usual course of professional practice, and two counts of obstruction of justice. The jury acquitted Ghearing of 18 counts of health care fraud and CSA violations.
“Doctors serve as the gatekeepers to our healthcare system and the system bestows a great deal of trust in physicians to make it work,” said Acting U.S. Attorney Jaworski. “I commend our law enforcement partners and our trial team for their unparalleled dedication and commitment to ensure that justice was served in a long and protracted investigation and prosecution.”
According to the evidence presented at trial, Gilbert Ghearing, owned and operated a medical clinic in Celina, Tenn., located in direct proximity to four pharmacies. He also provided medical services at another location in Fentress County, Tenn. Between 2016 and 2019, Ghearing repeatedly violated the CSA by prescribing Schedule II and Schedule IV drugs, including benzodiazepines and opioids, outside the usual course of professional practice without legitimate medical purposes to people suffering from active substance use disorders, who abused the substances in combination with illicit drugs and alcohol, repeatedly overdosed, and were hospitalized. The majority of Ghearing’s patients had Medicare or TennCare insurance, Tennessee’s Medicaid program. Ghearing caused pharmacies to submit fraudulent claims to these insurance programs for controlled substance prescriptions written by him that were not medically necessary.
After Ghearing was indicted in June 2019, he altered the medical records of the patients identified in the indictment. A superseding indictment in October 2022 charged Ghearing with obstruction of justice based on the alterations.
Ghearing faces a maximum penalty of 20 years in prison on the CSA convictions, 20 years on the obstruction of justice, and 10 years on health care fraud convictions. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the Drug Enforcement Administration; the U.S. Department of Health & Human Services-Office of Inspector General; and the Tennessee Bureau of Investigation. The DOJ Fraud Section Appalachian Regional Prescription Opioid (ARPO) Strike Force provided valuable investigative resource assistance. Assistant U.S. Attorneys Sarah K. Bogni, Juliet Aldridge, and Amanda J. Klopf prosecuted the case.
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Five Arrested in San Antonio for Alleged Drug Trafficking Organization InvolvementRead the Press Release
SAN ANTONIO – Five San Antonio men were arrested in San Antonio today on criminal charges related to their alleged roles in a drug trafficking organization.
According to court documents, Cesar Martinez aka Viejito, 66; Bruce Charles Morales, 51; Kelvin Sauls, 41; Juan Alberto Coronado aka Cacheton, 49; and Julio Rodriguez III, 39, were named in a six-count indictment issued by a grand jury earlier this month.
Martinez is charged with all six counts in the indictment, to include conspiracy to possess with intent to distribute cocaine; conspiracy to possess with intent to distribute methamphetamine; conspiracy to commit money laundering; possession with intent to distribute methamphetamine; and two separate counts of possession with intent to distribute cocaine. If convicted, Martinez faces punishments of at least 15 years in prison up to life imprisonment.
Morales is charged with one count of conspiracy to possess with intent to distribute cocaine, one count of conspiracy to commit money laundering, and one count of possession with intent to distribute cocaine. If convicted, Morales faces punishments of at least 10 years in prison up to life imprisonment.
Sauls is charged with five counts, to include conspiracy to possess with intent to distribute cocaine; conspiracy to possess with intent to distribute methamphetamine; conspiracy to commit money laundering; possession with intent to distribute methamphetamine; and one count of possession with intent to distribute cocaine. If convicted, Sauls faces punishments of at least 10 years in prison up to life imprisonment.
Coronado is charged with conspiracy to possess with intent to distribute more than 500 grams of cocaine and conspiracy to commit money laundering. If convicted, he faces punishment of at least five years up to 60 years in prison.
Rodriguez is charged with conspiracy to possess with intent to distribute detectable quantities of cocaine and conspiracy to commit money laundering. If convicted, he faces punishment up to 40 years in prison.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza for the Western District of Texas and Special Agent in Charge Daniel Comeaux for the Drug Enforcement Administration’s Houston Field Office made the announcement.
The DEA is investigating the case.
Assistant U.S. Attorney Brian Nowinski is prosecuting the case.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Fentanyl-Related Overdose Death Leads to 20-Year Sentence for Drug DealerRead the Press Release
CHARLOTTESVILLE, Va. – A South Hill, Virginia man, who continued dealing heroin, methamphetamine, and fentanyl from a regional jail, was sentenced this week to 20 years in federal prison.
Michael Watkins Hayer, 41, waived his right to be indicted and pleaded guilty in October 2022 to a two-count Information charging him with distribution of fentanyl resulting in death and possession of a firearm by a convicted felon.
According to court documents, Hayer began selling fentanyl, heroin, and methamphetamine throughout Greene and Albemarle counties in 2019, as well as routinely traveling to North Carolina to purchase drugs by the “brick” for resale in Virginia. Hayer used the term “brick” to refer to a package of 50 individual doses of fentanyl.
After a customer overdosed in front of him, Hayer began carrying Narcan, an opioid overdose treatment, when he sold drugs.
On February 18, 2022, Hayer sold a half-brick of fentanyl to an individual who ingested the drug and later died of an overdose. Although he left Greene County to avoid suspicion after this death occurred, Hayer was stopped by the Virginia State Police while speeding in Greene County in April 2022. During the traffic stop, Virginia State Police searched Hayer’s vehicle where they discovered 95 grams of methamphetamine, 50 grams of fentanyl, three firearms, and multiple rounds of ammunition. Hayer is prohibited from possessing a firearm due to a previous felony conviction.
While incarcerated at the Central Virginia Regional Jail from April 2022 through June 2022, Hayer continued to sell drugs by recruiting both a male relative as well as an ex-girlfriend and instructing them in how to engage in drug trafficking.
Specifically, Hayer told them where to go in North Carolina to meet his drug suppliers, as well as where and who to sell drugs to in Greene County.
In addition, Hayer warned both individuals of the dangerous nature of fentanyl by telling them to not touch the drug without wearing gloves and to never use fentanyl themselves.
United States Attorney Christopher R. Kavanaugh and Stanley M. Meador, Special Agent in Charge of the FBI Richmond Division made the announcement today.
The Greene County Sheriff’s Office and the Federal Bureau of Investigation investigated the case with assistance from the Virginia State Police.
Assistant U.S. Attorneys Melanie Smith and Sean Welsh prosecuted the case.
Fentanyl Trafficking Kingpin Sentenced to 22 Years in Federal Prison for Overseeing a Sprawling Drug and Money Laundering ConspiracyRead the Press Release
DETROIT – A previously convicted drug trafficker was sentenced to 22 years in federal prison for leading a drug organization with international ties that trafficked fentanyl, heroin, and cocaine across the country, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Orville O. Greene, Special Agent in Charge of Drug Enforcement Administration, Detroit Division, and Charles E. Miller, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigations, Detroit Division.
Maurice Montain McCoy, Jr., 41, of Moreno Valley, California, led a drug and money laundering conspiracy that had distribution hubs in multiple cities across the United States, including Novi, Michigan. The DEA seized more than 30 kilograms of fentanyl and over half a million dollars in cash from the organization’s stash house in Novi. At the time, the DEA’s seizure was the largest fentanyl seizure in Michigan and one of the largest in the United States. The seizure was the result of creative investigative work by federal agents. They traced a UPC code off a Sony PlayStation box that was used to deliver heroin to a drug customer. That UPC code led to the Novi condominium where the PlayStation was active. Agents identified couriers who crisscrossed the United States delivering kilograms, transporting bulk currency, or laundering money, leading to multiple arrests and additional seizures in Indianapolis, Indiana, and Baltimore, Maryland, where the organization also operated. All identified couriers and large-scale drug customers who were indicted have pleaded guilty. McCoy directed the organization’s activity and lived lavishly off the proceeds, purchasing a Porsche Panamera, expensive jewelry, including diamond and gold pendants for some members of his drug organization, and a half million-dollar home in the greater Los Angeles area.
McCoy, who previously served ten years in federal prison for a drug conviction in California, faced a mandatory minimum sentence of 15 years in prison with a maximum possible sentence of life in prison. McCoy was sentenced by United States District Judge Terrence G. Berg.
“Fentanyl is now the leading cause of overdose deaths. The number of lives saved by this seizure is inestimable. Our office will hold drug traffickers accountable for exposing our community to dangerous drugs,” stated United States Attorney Dawn Ison.
“The sentencing of Mr. McCoy should serve as a reminder to those who choose to traffic poison in our communities, that they will be held accountable,” stated Orville O. Greene, Special Agent in Charge of Drug Enforcement Administration, Detroit Division. “Mr. McCoy, having served a prior term in federal prison, was well aware of the potential consequences of his actions. The DEA will continue to work with our federal, state and local partners to target the sources of supply and their drug trafficking networks throughout the state of Michigan and elsewhere.”
“The role of IRS Criminal Investigation in narcotics investigations is to follow the money so we can financially disrupt and dismantle international drug trafficking organizations,” said Charles Miller, IRS Criminal Investigation, Acting Special Agent in Charge, Detroit Field Office. “We are proud to work hand-in-hand with our law enforcement partners to bring these criminals to justice.”
The case was investigated by agents of Drug Enforcement Administration and Internal Revenue Service as part of the Organized Crime Drug Enforcement (OCDETF) Southeast Regional Strike Force. Assistant United States Attorneys Andrea Hutting, Craig Wininger, and Gjon Juncaj prosecuted the case for the United States.
Felon who Fired Rounds in Residential Neighborhood Sentenced to over Nine Years in Federal PrisonRead the Press Release
A man who fired a .40 caliber semiautomatic handgun in a residential neighborhood in the middle of the day was sentenced today to more than 9 years in federal prison.
Deshaun Jackson, age 24, from Waterloo, Iowa, received the prison term after an October 13, 2022 guilty plea to being a felon in possession of a firearm.
At the guilty plea, Jackson admitted he possessed an Intratech Tech .22 semi-automatic handgun and a Smith and Wesson .40 caliber semi-automatic handgun while he was prohibited due to being previously convicted of burglary and robbery in Black Hawk County. Jackson also possessed a 110 round drum-style magazine. At sentencing, the Judge stated Jackson created a “firefight in a residential neighborhood,” and that his conduct was “extremely dangerous and unjustified in any sense.” The Judge further stated that Jackson did not have any business possessing a 110 round drum magazine.
Jackson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Jackson was sentenced to 114 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
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.
Jackson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Liz Dupuich and investigated by the Waterloo Police Department and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-2045.
Follow us on Twitter @USAO_NDIA.
Federal Jury Finds Convicted Felon Guilty of Illegally Possessing a Gun and Distributing MethamphetamineRead the Press Release
OXFORD, MS – A federal jury convicted a Greenville, Mississippi man on Tuesday of illegally possessing a firearm after having been convicted of a felony and four counts of distributing methamphetamine.
According to court documents and evidence presented at a two-day trial, Clarence Lamar Buck, 51, distributed methamphetamine on four separate occasions out of the Express Inn in Greenville in January of 2021. Approximately a year later, the United States Marshals Service, along with the Greenville Police Department, served an arrest warrant on Buck for bond violations. During a search of Buck’s room, officers found a Ruger .22 caliber handgun. Records reflect that at the time Buck possessed the gun, he had multiple prior felony convictions, including a conviction for sale of a controlled substance.
“The defendant is a repeat felon who injected poison into his community in the form of methamphetamine,” stated U.S. Attorney Clay Joyner. “The Greenville Police Department and the U.S. Marshals Service are to be commended for their hard work on this case, and we are proud to stand with them to stem the flow of illegal narcotics and to get firearms out of the hands of criminals.”
“Making sure that those who break the law are apprehended, and convicted, is our priority,” remarked Greenville Police Chief Marcus Turner. “We appreciate the partnership that we have with the U.S. Attorney’s Office and look forward to working together to ensure the safety of our community.”
The Greenville Police Department investigated the case, with assistance from the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorneys Julie Addison and Sam Stringfellow.
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.
Fall River Woman Sentenced to 25 Years in Prison for Sexually Exploiting ChildrenRead the Press Release
BOSTON – A Fall River woman was sentenced today in federal court in Boston for sexually exploiting children she babysat on multiple occasions.
Nichole Cyr, 27, was sentenced by U.S. District Court Judge Leo T. Sorokin to 25 years in prison and five years of supervised release. In September 2022, Cyr pleaded guilty to two counts of sexual exploitation of children.
“The crimes committed by Ms. Cyr are unconscionable and every parent’s nightmare. While a trusted babysitter, she sexually exploited two defenseless children who were two and seven years old at the time. Specifically, she sexually abused the toddler on multiple occasions, documented it, and distributed that documentation. Today’s sentence ensures that this dangerous predator is exactly where she belongs – removed from our community and behind bars,” said United States Attorney Rachael S. Rollins. “Our children are among the most vulnerable, precious members of our communities. As the chief federal law enforcement officer in Massachusetts, ensuring their safety and wellbeing will always be my top priority. We will spare no expense or resource to keep our children safe from dangers like Ms. Cyr.”
“Nicole Cyr was trusted to care for a child and betrayed that trust in the most egregious manner. The sexual abuse and exploitation of a child has long-term and far-reaching impacts on the life of the child and their family. We at Homeland Security Investigations hope that this sentencing offers some peace and a measure of justice as they move forward,” said Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England.
In July 2020, Cyr was arrested for child exploitation offenses after child sexual abuse material (CSAM), including images and videos, were located on her cell phones. Forensic analysis of Cyr’s phones revealed CSAM involving a two-year-old victim and a seven-year-old victim, including videos and photographs that showed Cyr sexually abusing the two-year-old victim on various dates. Forensic analysis also revealed that Cyr had shared the CSAM with another individual. Subsequent investigation determined that the Cyr produced the CSAM of the two minor victims, who she had babysat on multiple occasions.
U.S. Attorney Rollins, HSI Acting SAC Krol, Bristol County District Attorney Thomas M. Quinn III, Fall River Police Chief Paul Gauvin and New Bedford Police Chief Paul Oliveira made the announcement today. Assistant U.S. Attorney Anne Paruti, Chief of Rollins’ Major Crimes Unit 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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Essex County Woman Admits Role in $25 Million Securities Fraud Scheme Involving Blockchain Technology CompanyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, woman today admitted her role in fraudulently inducing victims to invest over $25 million in cash and cryptocurrency, U.S. Attorney Philip R. Sellinger announced.
Edith Pardo, 70, of Bloomfield, New Jersey, pleaded guilty before U.S. District Judge Stanley R. Chesler, to an indictment charging her with one count of conspiring to commit wire fraud, three counts of wire fraud, and one count of securities fraud in connection with a blockchain technology company.
According to documents filed in this case and statements made in court:
Through CG Blockchain Inc. and BCT Inc., Pardo and her co-defendant, Boaz Manor, touted a product called ComplianceGuard, which purportedly provided hedge funds with a blockchain-based auditing tool. Before starting these entities, Manor was convicted and served a prison sentence in Canada for crimes stemming from his previous role as a hedge fund manager. While raising money for these new entities, Pardo helped Manor – who changed his appearance and used aliases – hide his true identity and criminal past from investors.
Pardo acted as the face of the entities and, with Manor, told prospective investors that Pardo was independently wealthy and provided millions of dollars in seed money, when in fact, she was neither wealthy nor an investor. Pardo and Manor also falsely claimed that: Pardo was the sole owner of the entities; “Shaun MacDonald” (one of Manor’s aliases) was merely a consultant; a team of well-credentialed executives ran the entities; and multiple hedge funds were paying millions of dollars in fees to use ComplianceGuard. In reality, the entities had no real executives, collected no fees, and ComplianceGuard was barely distributed or used.
In 2017, Pardo and Manor relied on many of the same misrepresentations to raise over $25 million through an initial coin offering, or ICO, for a new product called Blockchain Terminal that purportedly allowed hedge funds and financial institutions to trade and manage cryptocurrency. But after investors began to learn about Manor’s true identity and criminal past, Manor admitted to hiding this information to avoid destroying his new companies.
Manor is currently a fugitive.
The conspiracy and wire fraud counts in the indictment carry a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The securities fraud count carries a potential penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for Aug. 1, 2023.
U.S. Attorney Philip R. 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 plea.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment pertaining to Manor are merely accusations, and he is presumed innocent unless and until proven guilty.
pardo.indictment.pdfErie, PA Man Pleads Guilty to Child Pornography Charge After Having Sex with 15 Y/ORead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Tristan Pearson, 26, Erie, PA, pleaded guilty to possession of child pornography before U.S. Magistrate Judge Michael J. Roemer. The charge carries a maximum penalty of 10 years in prison and a $250,000.
Assistant U.S. Attorneys Jonathan P. Cantil and Raymond J. Fadel, who are handling the case, stated that between January and May 2018, Pearson knowingly engaged in a sexual relationship with a 15-year-old female (Victim) in the Western District of New York. On two separate occasions, Pearson filmed himself having sexual relations with the Victim using his cellular telephone. Pearson then distributed those videos to others via text message.
The plea is the result of an investigation by the Federal Bureau of Investigation Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia.
Sentencing will be scheduled at a later date.
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Eagle River Man Sentenced for Receipt of Child PornographyRead the Press Release
ANCHORAGE – An Eagle River man was sentenced to a high-end guideline sentence of 78 months imprisonment followed by lifetime supervised release by Judge Timothy M. Burgess on Tuesday, March 28. John Daniel Brooks had previously pleaded guilty to one count of Distribution and Receipt of Child Pornography.
In September of 2021, the State of Alaska contacted the Federal Bureau of Investigation in Anchorage to report that a state employee was suspected of possessing images depicting child sexual exploitation. Two days later, the FBI conducted a search warrant at Brooks’ residence, where he worked for the state of Alaska remotely as an analyst programmer.
The FBI discovered that Brooks had installed an internal hard drive in his State of Alaska computer that was found to contain over 1.2 million images of suspected child exploitation. Those images included depictions of infants and toddlers being tortured and sexually assaulted by adults. All told, Brooks’ collection of child exploitation materials was one of the largest encountered to date by the FBI in Alaska.
“Large scale consumers of child sexual abuse materials like Mr. Brooks directly contribute to the exploitation of children worldwide,” said U.S. Attorney S. Lane Tucker, District of Alaska. “The sentence imposed by the court reflects the seriousness of this type of abhorrent behavior and we will continue to prosecute these cases to the fullest extent of the law. Thanks to the hard work of the FBI and APD, in coordination with our State partners, Mr. Brooks has been brought to justice.”
“Our investigation revealed Mr. Brooks acquired and possessed one of the largest collections of child sexual abuse materials found in Alaska,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “Possession of this material is not a victimless crime, and the FBI will use every legal authority we have to root out predators to protect children from these unconscionable offenses.”
The United States Attorney’s Office thanks the State of Alaska. The FBI Anchorage Field Office and the Anchorage Police Department investigated this case as part of the FBI’s Crimes Against Children and Human Trafficking Task Force.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Assistant U.S. Attorney Adam Alexander is prosecuting the case.
Eagle Butte Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced an Eagle Butte, South Dakota, man convicted of Failure to Register as a Sex Offender. The sentencing took place on March 29, 2023.
Daniel Red Horse, Jr. age 52, was sentenced to 33 months in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Red Horse was indicted for Failure to Register as a Sex Offender by a federal grand jury in August of 2022. He pleaded guilty on December 28, 2022.
Red Horse has two prior federal sex offense convictions. As a result, Red Horse is required to register as a sex offender under the Sex Offender Registration and Notification Act. Between May 2, 2022, and June 3, 2022, Red Horse did knowingly fail to register and update his registration. This is his eighth conviction for failing to register.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
Red Horse was immediately remanded to the custody of the U.S. Marshals Service.
District’s First Fentanyl Conspiracy Case Ends in 85 Months Sentence of St. Thomas ManRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Elijah Hakim, 35, of St. Thomas, was sentenced to 85 months of imprisonment in the District’s first prosecution of fentanyl possession. Fentanyl is a synthetic opioid that is 50 times more potent than heroin. Just two milligrams of fentanyl, or the amount that could fit on the tip of a pencil, is considered a potentially lethal dose.
According to court documents and evidence presented at trial, from April 2021 to May 2021, Hakim mailed two packages containing fentanyl from Georgia to St. Thomas. The first package, mailed on April 22, 2021, contained 150 fentanyl pills weighing approximately 17.5 grams which were concealed in a vitamin bottle. The package was filled with spray foam and mailed from an Atlanta, GA, post office to St. Thomas. The second package, mailed on May 18, 2021, contained 200 fentanyl pills weighing approximately 25 grams which were concealed inside a Gucci gift box. Like the first package, the second package was filled with spray foam to further conceal the pills and mailed from an Atlanta, GA, post office. Both packages were seized by U.S. Customs and Border Protections officers in San Juan, PR and St. Thomas. Court documents further revealed that during this period, a victim on St. Thomas overdosed from consuming pills suspected of containing fentanyl.
At trial, the United States introduced fingerprints found on the May package which matched Hakim’s fingerprints. Also admitted at trial was packaging material found in Hakim’s Atlanta apartment, including a spray foam cannister, bubble wrap, vacuum sealed bags and fiber tape consistent with the packaging used to conceal the fentanyl in the April and May packages. At sentencing, the Judge Robert A. Molloy noted that the comprehensive investigation and evidence admitted a trial were more than sufficient for a jury to find Hakim guilty beyond a reasonable doubt. During his allocution, Hakim stated that he did not believe that he could be found guilty by just fingerprints. Judge Molloy responded, however, that it was not just the fingerprints, but all of the other evidence pointing to Hakim as the culprit; the fingerprints simply sealed the deal.
“Across the United States, opioids, primarily fentanyl, killed over 80,000 people in 2021 alone,” stated United States Attorney Delia Smith. “Here in the Virgin Islands, we have thus far been spared the worst of the opioid epidemic, but the two shipments of fentanyl involved in this case show that we are not immune. Fortunately, the vigilance and dedication of our law enforcement partners led to the interception of these deadly drugs, and we were able to convict those responsible. We will continue to do everything in our power to keep the Virgin Islands safe from this lethal scourge.”
“The defendant’s lawless misuse of the U.S. Mail has finally come to a halt,” said Juan A. Vargas, Acting Inspector in Charge of the Miami Division. “Postal Inspectors will continue to work collaboratively with our law enforcement partners to combine our resources and expertise to combat the perils of illegal and dangerous drug distribution.”
“Our extraordinary enforcement partnerships allow us to work in unison and combat drug trafficking and the violence this brings,” said DEA Special Agent in Charge Denise Foster. “It’s the DEA’s mission to dismantle and destroy drug trafficking organizations no matter where they originate. We will continue to work diligently with our Federal, state, and local counterparts and to bring to justice those who seek to poison our communities.”
The investigation was conducted by the United States Postal Inspection Service, the Drug Enforcement Administration, U.S. Customs and Border Protection and Homeland Security Investigations, and the case was prosecuted by Assistant United States Attorneys Kyle Payne and Meredith Edwards. This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Covenant Healthcare System and Physicians Pay over $69 Million to Resolve False Claims Act Allegations Related to Improper Financial RelationshipsRead the Press Release
DETROIT – A regional hospital system and two physicians have paid over $69 million in three related civil settlements to resolve possible False Claims Act violations, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Special Agent in Charge Mario M. Pinto of the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Chicago Regional Office, Special Agent in Charge Scott Pierce, United States Postal Service Office of Inspector General, Central Area Field Office and Special Agent in Charge Patrick J. Hegarty, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Northeast Field Office.
Covenant Healthcare System, a regional hospital system based in the Saginaw, Michigan area, paid $69 million to resolve allegations under the False Claims Act of improper financial relationships with eight referring physicians and a physician-owned investment group, resulting in the submission of false claims to the Medicare, Medicaid, TRICARE, and FECA programs. Two of these physicians, neurosurgeon Dr. Mark Adams and electrophysiologist Dr. Asim Yunus will pay the United States $406,551.15 and $345,987.54, respectively, to resolve allegations related to their relationships with Covenant.
The Anti-Kickback Statute (“AKS”) prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally-funded programs. The Physician Self-Referral Law, commonly known as the Stark Law, prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has an improper financial arrangement, including the payment of compensation that exceeds the fair market value of the services actually provided by the physician and the provision of free or below-market rent. Both the Anti-Kickback Statute and the Stark Law are intended to ensure that physicians’ medical judgments are not compromised by improper financial incentives and instead are based on the best interests of their patients.
The settlement with Covenant resolves the following allegations:
- At various points between 2006 to 2016, Covenant had contracts with Asim Yunus, M.D., Kimiko Sugimoto, M.D., Sujal Patel, M.D., Sussan Bays, M.D., Guy Boike, M.D., and Thomas Damuth, M.D. to serve as medical directors, and none of these arrangements satisfied any exceptions to the Stark Law or the AKS, such that referrals these physicians made to Covenant violated the False Claims Act.
- From June 1, 2006, to December 14, 2009, Covenant employed Mark Adams, M.D., and this financial relationship did not satisfy any exception to the Stark Law, such that referrals for designated healthcare services by Adams to Covenant were prohibited and violated the False Claims Act.
- From January 21, 2009, through July 31, 2013, Covenant rented office space to Ernie Balcueva, M.D. Covenant forgave Balcueva’s rent payments, constituting remuneration that Covenant paid in exchange for referrals from Balcueva in violation of the AKS and the False Claims Act, and creating a financial relationship that did not meet any exception to the Stark Law, also violating the False Claims Act.
- Covenant permitted Covenant Physician Investment Group (“CPIG”), a group owned by Covenant-employed physicians for the purpose of purchasing large medical equipment that CPIG would lease to Covenant, to secure an equipment lease through non-arm’s-length negotiations, in order to induce referrals of patients from these physicians, in violation of the AKS and the False Claims Act.
As a result of this settlement, which was finalized in 2021, Covenant paid the United States $67,191,436.39 and the State of Michigan $1,808,563.61. This settlement remained under seal while the United States continued its investigation into Adams and Yunus, which led to the settlements with Adams and Yunus. Consistent with the terms of their respective settlement agreements with the United States, Adams paid the United States $406,551.15, and Yunus will pay the United States $345,987.54.
“Improper financial relationships and kickbacks undermine the integrity of federally-funded healthcare programs by influencing physician decision making,” said U.S. Attorney Ison. “This outcome emphasizes our Office’s commitment to pursuing justice against parties on both sides of those relationships—the hospital seeking to influence the physician via certain compensation schemes and the physician accepting the compensation.” U.S. Attorney Ison added, “I would like to commend the new leadership at Covenant for making things right once its past wrongdoing was brought to its attention by federal investigators.”
“Financial relationships that are based solely on monetary gain undermine the trust that we place in our nation’s medical providers and can result in costly reductions to our Federal health care programs,” said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services Office of Inspector General. “We will continue to work together with our law enforcement partners to ensure the appropriate use of taxpayer dollars.
“These settlements send a clear message to healthcare providers that the government is vigilantly protecting federal benefit programs,” said Special Agent in Charge Scott Pierce of United States Postal Service Office of Inspector General, Central Area Field Office. “The USPS OIG appreciates our law enforcement partners for their commitment and efforts in this investigation. The USPS OIG will continue to vigorously investigate those who engage in activities that harm federal benefit programs and the U.S. Postal Service.”
"Protecting TRICARE, the healthcare system for military members and their dependents, is a top priority for the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General," stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. "The settlements announced today demonstrate our ongoing commitment to work with the Department of Justice and our law enforcement partners to investigate allegations of improper financial relationships that place unnecessary financial pressure on the TRICARE system."
The civil settlements resolve the claims brought by Stacy Goldsholl, M.D., under the qui tam or whistleblower provisions of the False Claims Act. Under these provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Goldsholl v. Covenant Healthcare System, et al., No. 12-15422 (E.D. Mich.). The whistleblower will receive a combined $12,384,927.36 from the three settlements. The claims resolved by the settlements are allegations only; there has been no determination or admission of liability.
The matter was investigated by Assistant U.S. Attorney Jonny Zajac of the U.S. Attorney’s Office for the Eastern District of Michigan, with assistance from HHS-OIG, the Defense Criminal Investigative Service, and the United States Postal Service-OIG.
Coordinator and Money Middleman Indicted for Conspiracy to Transport and Harbor Undocumented Non-CitizensRead the Press Release
TUCSON, Ariz. – A federal grand jury returned an indictment last week against Juan Manuel Soto-Guzman, 41, of Mexico, and Adulfo Soto-Guzman, 45, of Mexico, for conspiracy to transport and harbor illegal aliens for profit.
The complaint alleges, in part, that an investigation identified Juan Manuel Soto-Guzman, as a person involved in a conspiracy to transport undocumented non-citizens (UNCs) for profit. J. Soto-Guzman was identified as a UNC smuggling coordinator, responsible for coordinating the transportation and harboring of UNCs and housing them in Phoenix, Arizona, before coordinating their transportation to their final destinations within the United States.
Adulfo Soto-Guzman also was identified as a member of the conspiracy. The complaint alleges that he was responsible for delivering money to other co-conspirators to pay load drivers and finance human smuggling activities within this organization. Many of the UNCs had crossed the border from Mexico, and were transported through Southern Arizona to stash houses in Phoenix, Arizona, as they waited for further transportation within the United States.
During the course of the investigation, agents seized over 20 notebooks containing ledgers detailing human smuggling, cash payments due, and cellphones previously identified as being used by this organization.
A conviction for conspiracy to transport and harbor illegal aliens carries a maximum penalty of 10 years in prison, a $250,000 fine, or both.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
This prosecution resulted from the coordinated efforts of Joint Task Force Alpha (JTFA). The U.S. Attorney’s Office for the District of Arizona is part of JTFA, which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime.
The investigation in this case was conducted by Homeland Security Investigations (HSI)–Douglas Office, with the assistance of HSI-Phoenix, Enforcement and Removal Operations-Phoenix and United States Border Patrol-Sonoita. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR 23-0386-TUC-RM
RELEASE NUMBER: 2023- 045_Soto-Guzman# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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