Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
9 May 2023
Repeat Offender Sentenced to 16 Years in Prison for Receipt and Possession of Large Child Sexual Abuse Material CollectionRead the Press Release
LAS VEGAS – A Las Vegas resident was sentenced yesterday by United States District Judge Cristina D. Silva to 16 years in prison followed by a lifetime term of supervised release for receipt and possession of more than 118,000 images of child sexual abuse material.
After a bench trial in November 2022, Barry Ray Knight (75) was found guilty of receipt of child pornography and possession of child pornography.
According to court documents and evidence presented at trial, on April 8, 2021, investigators with the Internet Crimes Against Children task force executed a search warrant at Knight’s residence. During the search, investigators seized multiple electronic devices owned by Knight. A forensic examination of the devices revealed that Knight possessed 115,299 images and 3,135 videos depicting children who were as young as toddlers. He used the BitTorrent network to receive files online.
In 2003, Knight was convicted of possession of child pornography in the Eastern District of Missouri.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The FBI and the Las Vegas Metropolitan Police Department investigated the case. Assistant United States Attorneys Supriya Prasad and Kimberly Sokolich prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Department of Justice’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.justice.gov/psc.
###
Pomona Man Found Guilty of Abusive Sexual Contact on FlightRead the Press Release
LOS ANGELES – A federal jury today found a Pomona man guilty of a felony offense for intentionally touching the inner thigh of a sleeping woman seated next to him on a flight from Cleveland to Los Angeles in February 2020.
Mohammad Jawad Ansari, 49, was found guilty of one count of abusive sexual contact.
According to evidence presented at a four-day trial, on February 17, 2020, Ansari boarded a flight from Cleveland Hopkins International Airport to Los Angeles International Airport. Ansari occupied a 10th-row window seat while the victim occupied the middle seat next to him. The victim, who was wearing a dress, fell asleep shortly after takeoff and the armrest separating Ansari from the victim was down.
At some point during the flight to Los Angeles, Ansari placed his left hand on the victim’s right knee and knowingly, intentionally, and without the victim’s consent, moved his hand to her inner thigh. The person sitting in the 10th-row aisle seat next to the victim witnessed Ansari’s hand touching the victim’s inner thigh.
The victim woke up, pushed Ansari’s hand away, left her seat, and informed a flight attendant about what had happened. The flight’s attendants observed Ansari during the remainder of the flight and believed he was pretending to sleep.
United States District Judge Fernando L. Aenlle-Rocha scheduled a September 29 sentencing hearing, at which time Ansari will face a statutory maximum sentence of two years in federal prison.
The FBI and the Los Angeles Airport Police investigated this matter.
Assistant United States Attorneys Samuel J. Diaz and James A. Santiago of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.To mark Sexual Assault Prevention Month, the FBI’s Los Angeles Field Office on April 28 issued a public service announcement to bring awareness to the problem of sexual assault on airplanes. Victims of in-flight sexual misconduct – either verbal or physical – or their loved ones are encouraged to report the incident to a flight attendant and to your nearest FBI field office or to submit a tip online to the FBI at https://tips.fbi.gov/.
Pomona Man Found Guilty of Abusive Sexual Contact on FlightRead the Press Release
LOS ANGELES – A federal jury today found a Pomona man guilty of a felony offense for intentionally touching the inner thigh of a sleeping woman seated next to him on a flight from Cleveland to Los Angeles in February 2020.
Mohammad Jawad Ansari, 49, was found guilty of one count of abusive sexual contact.
According to evidence presented at a four-day trial, on February 17, 2020, Ansari boarded a flight from Cleveland Hopkins International Airport to Los Angeles International Airport. Ansari occupied a 10th-row window seat while the victim occupied the middle seat next to him. The victim, who was wearing a dress, fell asleep shortly after takeoff and the armrest separating Ansari from the victim was down.
At some point during the flight to Los Angeles, Ansari placed his left hand on the victim’s right knee and knowingly, intentionally, and without the victim’s consent, moved his hand to her inner thigh. The person sitting in the 10th-row aisle seat next to the victim witnessed Ansari’s hand touching the victim’s inner thigh.
The victim woke up, pushed Ansari’s hand away, left her seat, and informed a flight attendant about what had happened. The flight’s attendants observed Ansari during the remainder of the flight and believed he was pretending to sleep.
United States District Judge Fernando L. Aenlle-Rocha scheduled a September 29 sentencing hearing, at which time Ansari will face a statutory maximum sentence of two years in federal prison.
The FBI and the Los Angeles Airport Police investigated this matter.
Assistant United States Attorneys Samuel J. Diaz and James A. Santiago of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.
To mark Sexual Assault Prevention Month, the FBI’s Los Angeles Field Office on April 28 issued a public service announcement to bring awareness to the problem of sexual assault on airplanes. Victims of in-flight sexual misconduct – either verbal or physical – or their loved ones are encouraged to report the incident to a flight attendant and to your nearest FBI field office or to submit a tip online to the FBI at https://tips.fbi.gov/.
Pittsburgh Man Pleads Guilty in Drug Distribution ConspiracyRead the Press Release
PITTSBURGH, PENNSYLVANIA – Torlando Hopson pled guilty to conspiring to distribute crack cocaine, Acting United States Attorney Troy Rivetti announced today.
Hopson, age 34 of Sharon, Pennsylvania, pled guilty before United States District Judge Cathy Bissoon. Judge Bissoon scheduled sentencing to occur on August 31, 2023, at 11:00 a.m.
The law provides for a sentence of up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is to be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Attorney General’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania State Police, the Lawrence County Drug Task Force, the Mercer County Drug Task Force, the New Castle Police Department, the Sharon Police Department, the Hermitage Police Department, and the Farrell Police Department led the investigation resulting in the conviction in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Pittsburgh Man Indicted on Contempt of Court and Assault ChargesRead the Press Release
PITTSBURGH, PA. A resident of Pittsburgh, PA, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal contempt of court laws and assault, Acting United States Attorney Troy Rivetti announced today.
The three-count Indictment named James Taric Byrd, 46, of Pittsburgh, PA, as the sole defendant.
According to the Indictment, on or about July 18, 2022, Byrd is alleged to willfully and knowingly engaged in contempt of court by both engaging in misbehavior in the presence and so near there to the Court in order to obstruct the administration of justice, and by disobeying and resisting the lawful order and command of the Court by striking his own attorney in the court room. He is also charged with assault by striking, beating, or wounding.
The law provides no maximum sentence or fine for the contempt charges. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The United States Marshals conducted the investigation leading to the Indictment in this case.
Assistant United States Attorney DeMarr W. Moulton is prosecuting this case on behalf of the government.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Okmulgee County Resident Sentenced for Brutal MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Neil Shai Cameron Lewis, age 28, of Okmulgee County, Oklahoma, was sentenced to 223 months in prison for Murder in Indian Country—Second Degree.
The charges arose from investigations by the Muscogee (Creek) Nation Lighthorse Police and the Federal Bureau of Investigation.
Lewis pleaded guilty to Murder in Indian Country—Second Degree on September 30, 2021. The investigation of the case revealed Lewis beat the victim to death with a television and a coat rack after an evening of drinking at the victim’s apartment. Police investigating an Emergency Medical Services call discovered the victim lying on the floor of his apartment and Lewis covered in the victim’s blood.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted this case because the defendant is a member of a federally recognized Indian tribe and the crimes occurred in Okmulgee County, within the boundaries of the Muscogee (Creek) Nation Reservation and within the Eastern District of Oklahoma.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings in Muskogee. Lewis was remanded to the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve his sentence of incarceration.
Okmulgee County Resident Sentenced for Brutal MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Neil Shai Cameron Lewis, age 28, of Okmulgee County, Oklahoma, was sentenced to 223 months in prison for Murder in Indian Country—Second Degree.
The charges arose from investigations by the Muscogee (Creek) Nation Lighthorse Police and the Federal Bureau of Investigation.
Lewis pleaded guilty to Murder in Indian Country—Second Degree on September 30, 2021. The investigation of the case revealed Lewis beat the victim to death with a television and a coat rack after an evening of drinking at the victim’s apartment. Police investigating an Emergency Medical Services call discovered the victim lying on the floor of his apartment and Lewis covered in the victim’s blood.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted this case because the defendant is a member of a federally recognized Indian tribe and the crimes occurred in Okmulgee County, within the boundaries of the Muscogee (Creek) Nation Reservation and within the Eastern District of Oklahoma.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings in Muskogee. Lewis was remanded to the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve his sentence of incarceration.
Oklahoma Man Sentenced for Failure to Register as a Sex Offender and Possession of Contraband by InmateRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sapulpa, Oklahoma, man convicted of Failure to Register as a Sex Offender and Possession of Contraband by Inmate. The sentencing took place on May 8, 2023.
Charles Nathaniel Graves, age 37, was sentenced to 3.5 years in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Graves was indicted by a federal grand jury in July of 2021 for Failure to Register as a Sex Offender. Graves was also indicted in August of 2022 for Possession of Contraband by Inmate. He pleaded guilty on July 8, 2022, for the first charge and he pleaded guilty on March 31, 2023, on the second charge.
The conviction for the Failure to Register as a Sex Offender charge stems from Graves failing to register as a sex offender as required by federal law between September 1, 2019, and July 7, 2021. Graves had previously been convicted of a sex offense in State court which requires him to register for 25 years upon his release.
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.
The second conviction stems from an incident on March 25, 2022, when Graves, who was in federal custody at the Yankton County Jail in Yankton, South Dakota, was granted a furlough to attend a funeral. Upon his return, Graves was told he would be submitted to a full-body scan. Before the scan could occur, Graves removed a small package that he had inserted into his rectum that contained methamphetamine. He left the package in the room, but it was found by correctional officers and seized as evidence. The package was field-tested and was positive for approximately 5.26 grams of methamphetamine.
This case was investigated by the U.S. Marshals Service and the Yankton County Sheriff’s Office. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Graves was immediately remanded to the custody of the U.S. Marshals Service.
Ohkay Owingeh man pleads guilty to assault with a dangerous weapon in Indian CountryRead the Press Release
FOR IMMEDIATE RELEASE
May 8, 2023
Ohkay Owingeh man pleads guilty to assault with a dangerous weapon in Indian Country
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Jerry Segura, Jr. pleaded guilty to assault with a dangerous weapon and using and carrying a firearm during and in relation to a crime of violence, and brandishing a firearm in furtherance of such crime in Indian Country. Segura, 34, of Ohkay Owingeh, New Mexico, and an enrolled member of the Ohkay Owingeh Pueblo, will remain in custody pending sentencing, which has not been scheduled.
According to the plea agreement, Segura, Jr. admitted to brandishing a firearm without justification at Jane Doe, his former girlfriend’s adult daughter, which enabled Segura, Jr. to assault her. Segura, Jr. admitted to assaulting Jane Doe in Indian Country.
Segura, Jr. faces a minimum of seven years imprisonment at sentencing.
The Bureau of Indian Affairs investigated this case. Assistant United States Attorney Zachary Jones is prosecuting the case.
# # #
23-103
Nampa Man Sentenced to 30 Years in Federal Prison for Producing Child PornographyRead the Press Release
BOISE – Benjamin Morton, 39, of Nampa, was sentenced to 360 months in federal prison for sexual exploitation of a child, U.S. Attorney Josh Hurwit announced today.
According to court records, the investigation began when the Boise Police Department (BPD) received information that an adult male, pretending to be a juvenile online, had arranged to meet the 14-year-old victim. BPD later identified Morton as the suspect and determined that he had sexually abused the victim on two occasions and used his cellphone to record some of the abuse. BPD obtained a search warrant for one of Morton’s social media accounts and located a video that Morton had produced of himself engaging the victim in sexual contact. Within the account, BPD also located evidence that Morton had attempted to communicate with other juveniles. Morton was previously convicted in Canyon County of battery with intent to commit lewd conduct with a minor.
Chief U.S. District Judge David C. Nye also sentenced Morton to a lifetime of supervised release and entered an order forfeiting the cellphone he used to commit the offense. Morton will be required to register as a sex offender as a result of the conviction.
U.S. Attorney Hurwit commended the cooperative efforts of the Boise Police Department and the Nampa Police Department, which led to charges.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
###
Muskogee Resident Sentenced for Robbery in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Philip Lee Ramos a/k/a Phillip Lee Ramos, age 32, of Muskogee, Oklahoma, was sentenced to 60 months in prison for Robbery in Indian Country.
The charges arose from investigations by the Muskogee Police Department.
On April 18, 2023, Philip Lee Ramos pleaded guilty to Robbery in Indian Country. According to court documents, on December 2, 2020, Ramos robbed an individual at knifepoint at a Muskogee, Oklahoma hotel.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted this case because the defendant is a member of a federally recognized Indian tribe and the crimes occurred in Muskogee County, within the boundaries of the Muscogee (Creek) Nation Reservation and within the Eastern District of Oklahoma.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings in Muskogee. Ramos was remanded to the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Jordan Howanitz represented the United States at the sentencing.
Mason City Man Returned to Federal Prison for Violating His Supervised ReleaseRead the Press Release
A man who violated his supervised release by selling methamphetamine has been sentenced to more than three years in federal prison.
Adam James Rollins, age 43, from Mason City, Iowa, received the prison term after a May 8, 2023, revocation hearing where he was found to have violated his third term of supervised release which began May 6, 2022. Rollins violated the conditions of release by using, and eventually selling methamphetamine again.
Rollins’ supervised release had previously been revoked in April of 2019 and September of 2021. He was originally sentenced in January of 2010, to 10 years in prison and 8 years of supervised release for conspiring to manufacture methamphetamine in the Mason City area. He also had a previous conviction for a felony drug offense in April of 2005.
Rollins was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Rollins was sentenced to 40 months’ imprisonment. There is no parole in the federal system.
Rollins 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 Jack Lammers and investigated by the Kossuth County Sheriff’s Office and the Algona Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 09-CR-3019.
Follow us on Twitter @USAO_NDIA.
Lexington Investment Advisor and Attorney Sentenced to 120 Months for Investment FraudRead the Press Release
LEXINGTON, Ky. - A Lexington investment advisor and attorney, Douglas Hawkins, was sentenced to 120 months in prison Tuesday, by U.S. District Judge Karen Caldwell, for investment advisor fraud, securities fraud, and two counts of mail fraud.
According to the evidence at trial, while operating as an investment advisor, Hawkins encouraged his clients to invest in securities that were properties in Jackson, Mississippi. Clients invested over $2 million in the properties. While encouraging these investments, Hawkins withheld vital information about the properties from his clients, including that many were uninhabitable, had burdensome rent collection, and were often subject to theft and vandalism. He also failed to inform his clients that their investment money would be used for purposes other than their properties, including paying other investors and buying a Harley Davidson for an employee.
Hawkins was convicted in February 2023.
In addition to his prison sentence, Hawkins was ordered to pay $1,588,048.50 in restitution. Under federal law, Hawkins must serve 85 percent of his prison sentences. Upon his release from prison, Hawkins will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Lesley Allison, Special Agent in Charge, United States Postal Inspection Service; and Justin Malcom Burse, Acting Commissioner, Kentucky Department of Financial Institutions, jointly announced the sentencing.
The investigation was conducted by the United States Postal Inspection Service and Kentucky Department of Financial Institutions. The United States was represented in the case by Assistant U.S. Attorneys Andrea Mattingly-Williams and Will Moynahan.
— END —
Level 1 Sex Offender Pleads Guilty to Child Pornography ChargeRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Zachary Feeterman, 28, of Tonawanda, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to possession of child pornography by an individual with a prior sex offense conviction, which carries a mandatory minimum penalty of 10 years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in March 2016, Feeterman was convicted of attempted possession of a sexual performance by a child less than 16 years of age in New York State Court. On August 8, 2019, Erie County Probation Officers conducted a home inspection at Feeterman’s residence and found an unauthorized cell phone in his possession. A forensic analysis recovered approximately 375 images of child pornography on the cell phone, and 4,670 images and videos of child pornography in a cloud storage account. Some images depicted prepubescent minors as well as violence against children.
The plea is the result of an investigation by members the Erie County Probation Department, under the direction of Commissioner Michelle Olszowy; the FBI's Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia; and the Town of Tonawanda Police Department, under the direction of Chief James P. Stauffiger.
Sentencing is scheduled for November 11, 2023, at 9:30 a.m. before Judge Vilardo.
Leominster Man and Woman Charged with Drug OffensesRead the Press Release
BOSTON – A Leominster man and woman have been arrested and charged for allegedly conspiring to distribute large quantities of counterfeit Adderall pills containing methamphetamine.
Chanhda Onesyvieng, 48, and Bonnie Bounkong Namsaly, 45, were charged with conspiracy to possess with intent to distribute, and to distribute, controlled substances. Following initial appearances in federal court in Worcester on May 1, 2023, Onesyvieng was ordered detained pending trial and Namsaly was released on conditions.
According to the charging documents, in early April 2023, federal law enforcement received information that Onesyvieng was distributing significant quantities of counterfeit Adderall pills containing methamphetamine in Rhode Island using a phone subscribed under Namsaly’s name. On April 28, 2023, during a traffic stop of Onesyvieng and Namsaly in Worcester, it is alleged that approximately two kilograms of counterfeit Adderall pills containing methamphetamine and approximately 135 grams of cocaine were seized. It is further alleged that, during a subsequent search of the defendants’ residence in Leominster, approximately one kilogram of counterfeit Adderall pills containing methamphetamine, approximately one kilogram of cocaine, and approximately $60,000 in cash were seized.
The charge of conspiracy to possess with intent to distribute, and to distribute, controlled substances provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and John. E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Danial E. Bennett of Rollins’ Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Leader of Queens-Based "Wood City" Gang Convicted of Revenge Killing over Stolen NecklaceRead the Press Release
A federal jury in Brooklyn returned a guilty verdict late yesterday afternoon against Christopher Acevedo, the leader of “Wood City,” a violent criminal enterprise which also used the names “Yellow Tape Boyz” and “YTB,” of murder in-aid-of racketeering and causing death through the use of a firearm in connection with the August 26, 2019 fatal shooting of a rival gang associate. The verdict followed a three-week trial before United States District Judge Diane Gujarati. When sentenced, Acevedo faces a mandatory term of life imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, announced the verdict.
“How senseless it was for Acevedo to callously take a human life to maintain and burnish his status as the leader of a violent street gang whose members felt insulted by the taking of a piece of jewelry,” stated United States Attorney Peace. “With today’s verdict, the defendant will spend the rest of his life in prison. Protecting our communities from gang and gun-related violence is a priority of my Office and I commend the attorneys, Special Agents, and detectives whose work brought the defendant to justice.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, and the New York City Police Department for their exemplary investigative work on the case. Mr. Peace also thanked the FBI Safe Streets Task Force for its assistance with the case.
The evidence at trial established that since at least 2010, the Wood City gang has been engaged in racketeering activity, including murder, drug trafficking, and various forms of fraud and identity theft. Acevedo was the founder and leader of the gang which was so named because many of its members lived around Woodhull Avenue in Jamaica, New York. Since at least 2011, Wood City has been involved in a war with rival “Snow Gang,” another violent gang based in Queens. During this period, members of Wood City and Snow Gang would regularly taunt and insult each other using social media platforms and phone calls. On August 26, 2019, members of Snow Gang, including one of its leaders, robbed a gold “YTB” chain from a high-ranking member of Wood City while he was at a recording studio in Queens. Shortly after the robbery, the Snow Gang leader posted a photo himself wearing the YTB chain on social media. As a leader of Wood City, Acevedo was expected to retaliate for the chain-snatching to protect his gang’s reputation. The defendant and other Wood City members drove to Snow Gang territory and spotted a vehicle with the Snow Gang leader who had robbed the chain and other members and associates of Snow Gang. After following that vehicle to the front of a deli in the vicinity of 140th Avenue and Springfield Boulevard, Acevedo pulled alongside the vehicle and fired a dozen shots, killing the driver David Hutchinson.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys James P. McDonald, Kayla C. Bensing, and Benjamin Weintraub are in charge of the prosecution with the assistance of Paralegal Specialist Brittany Wissel.
The Defendant:
CHRISTOPHER ACEVEDO
Age: 28
Jamaica, New YorkE.D.N.Y. Docket No. 21-CR-162 (DG)
Leader of Large-Scale Methamphetamine Distribution Conspiracy Sentenced to 490 Months in PrisonRead the Press Release
LEXINGTON, Ky. — A Lexington man, Craig Dupree Robertson, 34, was sentenced on Monday to 490 months in federal prison, by Chief U.S. District Judge Danny Reeves for his role in a large-scale methamphetamine and fentanyl trafficking conspiracy.
According to court documents, from October 2020 until September 2021, Robertson and his co-defendants conspired to distribute large quantities of methamphetamine and fentanyl in the Eastern District of Kentucky. The defendants maintained “stash” residences, throughout Lexington, to store and distribute the drugs. Law enforcement made multiple controlled buys of methamphetamine and fentanyl from the co-defendants, as well as seizing ounce and pound quantities of the drugs during traffic stops and through search warrants.
On September 23, 2021, law enforcement executed search warrants at several of the “stash” locations. At one such residence, law enforcement agents seized approximately 957 grams of fentanyl, 418 grams of methamphetamine, a money counting machine, two firearms, two digital scales, a metal press used to manufacture controlled substances, vacuum seal bags, and other items pertaining to the manufacturing and distribution of controlled substances. At a second “stash” location, a storage unit, agents seized 15 pounds of methamphetamine. On many of the occasions from October 2020 to August 2021, the defendants would deposit drug proceeds into bank accounts for transfer of those proceeds to other co-conspirators via mobile transfer applications, in order to continue to operate their drug trafficking activities.
Robertson’s co-defendants were sentenced to the following, for their roles in the conspiracy:
- Brenda Nicole Fugate received 165 months;
- Casey Ryan Creech received 180 months;
- Tony Christopher Fugate received 84 months;
- Houston Paul Johnson received 230 months;
- Pamela Smith Baker received 120 months;
- Angela Marie Halsey received 94 months;
- Michael Dustin Johnson received 115 months;
- Patricia Ann Morgan received 96 months;
- Curtis Dewayne Miller received 320 months; and
- Carl Hunt received 188 months.
Under federal law, Robertson and his co-defendants must serve 85 percent of their prison sentences. In addition to their prison sentences, each will be under the supervision of the U.S. Probation Office for five years – with the exception of Morgan, who will be under supervision for three years. Upon his release from prison, Robertson will be under the supervision of the U.S. Probation Office for life.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF Louisville Field Division; J. Todd Scott, Special Agent in Charge, DEA Louisville Field Division; Lesley Allison, Special Agent in Charge, United States Postal Inspection Service Pittsburgh Field Division; Commander Kalan Perdue, Gateway High Intensity Drug Trafficking Area (HIDTA); and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentences.
The investigation was conducted by ATF, DEA, USPIS, and Gateway AHITDA Task Force, with assistance from Lexington Police Department. The United States was represented by Assistant U.S. Attorneys Todd Bradbury and Cynthia Rieker.
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.
-END-
Las Vegas Man Pleads Guilty to Methamphetamine and Firearms Trafficking ConspiracyRead the Press Release
LAS VEGAS – A Las Vegas man pleaded guilty to conspiring with others to traffick methamphetamine and firearms — including a shotgun and machine guns.
According to court documents, between July 20, 2022 and September 13, 2022, Charles Sanders, also known as “Cheeze,” 37, conspired with others to distribute 50 grams or more of methamphetamine. Over the course of the conspiracy, he sold at least 500 grams, but less than 1.5 kilograms of methamphetamine. Additionally, during this same time period, Sanders sold 25 firearms, including a shotgun and three machine guns.
Sanders pleaded guilty on May 4, 2023, to one count of conspiracy to distribute a controlled substance and one count of trafficking firearms. United States District Judge Andrew P. Gordon scheduled sentencing for August 16, 2023.
Sanders faces the statutory minimum penalty of five years in prison and a maximum penalty of 40 years in prison for conspiracy to distribute a controlled substance; and a statutory maximum penalty of 15 years in prison for trafficking firearms. He also faces a term of supervised release, a fine, and a special assessment.
United States Attorney Jason M. Frierson for the District of Nevada, Acting Special Agent in Charge Joshua Jackson for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Acting Special Agent in Charge Christopher Miller for Homeland Security Investigations (HSI) made the announcement.
The ATF, HSI, and the Las Vegas Metropolitan Police Department investigated the case. Assistant United States Attorney Kimberly Sokolich prosecuted the case.
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.
###
La Crosse Man Sentenced to 29 Months for Unlawfully Possessing FirearmRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Anthony James, 39, La Crosse, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 29 months in federal prison for possessing a firearm after previously being convicted of a felony. James pleaded guilty to this charge on February 10, 2023.
On April 3, 2022, a Wisconsin State Patrol trooper stopped a vehicle driven by James in La Crosse County for suspended registration and illegal window tint. The trooper noticed an odor of marijuana coming from the car and conducted a search of the vehicle. During the search, the trooper recovered a .22 caliber Sterling handgun from a lockbox that was opened using a key from James’ keyring that was in the ignition of the car.
James’s prior felony convictions include a 2018 conviction in Sheboygan County for felony strangulation/suffocation and Illinois felony convictions for forgery and retail theft. James also was under state supervision for prior convictions in Kenosha and Ozaukee Counties at the time of his arrest.
At sentencing, Judge Peterson acknowledged that aggravating factors in determining a sentence were James’s voluminous criminal history and, specifically, his domestic abuse related strangulation conviction in 2018, which raised special concern about his unlawful possession of a firearm. However, the judge considered that the gun was not loaded, in a locked container, and was not used or possessed in connection with any other offense.
The charge against James was the result of an investigation conducted by the Wisconsin State Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Robert A. Anderson prosecuted this case.
Justice Department Secures Agreement with Union County, New Jersey, Under the Voting Rights ActRead the Press Release
The Justice Department announced today that it has entered into a proposed consent decree with Union County, New Jersey, and county elections officials to settle a voting rights lawsuit.
The proposed consent decree was filed in federal court in conjunction with a lawsuit brought by the Justice Department. The department’s lawsuit brings claims under Section 203 and 208 of the Voting Rights Act regarding the availability of election assistance and materials in Spanish for Spanish-speaking voters with limited English proficiency. Section 203 requires that certain jurisdictions provide election materials and assistance in other languages, in addition to English. These jurisdictions have been determined by the Census Bureau to have a substantial population of citizens who speak a language other than English and who have limited English proficiency. Under Section 203 of the Voting Rights Act, Union County is required to provide assistance and make materials available in Spanish. Section 208 provides a right for voters who need assistance with voting – due to inability to read or write, blindness or disability – to receive assistance from the person of their choice, so long as that person is not an agent of the voter’s employer or union. The consent decree would resolve the United States’ claims.
“Language barriers should never prevent an eligible voter from being able to freely participate in the democratic process,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Equal access to the ballot in a modern democracy means ensuring the availability of bilingual materials for those who are limited English proficient and guaranteeing the right to receive assistance by a person of your choice. We will continue using our voting rights laws to confront the barriers that stand between voters and the ballot box.”
“The right to vote is a cornerstone of our democracy,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “We will work tirelessly to ensure that every eligible American is able to vote free of unlawful barriers. Through the agreement entered today, we ensure that no one is denied this sacred right simply because they are a Spanish speaker.”
The proposed consent decree, which must be approved by the court, requires the implementation of a comprehensive Spanish-language elections program under Section 203. The Union County Clerk and Board of Elections will provide all election-related information in both English and Spanish, including information in the polling places and online. The Union County Board of Elections will also ensure that in-person language assistance is available at all early voting sites and at each election district with at least 100 Spanish-surnamed registered voters. Spanish-language assistance will continue to be available to all voters by telephone during elections. In addition, the consent decree provides that any voter covered by Section 208 who needs assistance to vote may be assisted by the person of that voter’s choice, other than an agent of the voter’s employer or union, during any stage of the voting process. The consent decree also provides that federal observers may monitor election day activities in polling places in Union County.
Individuals may file voting rights complaints with the Civil Rights Division either online here, or may call (800) 253-3931. Individuals may also contact the U.S. Attorney’s Office for the District of New Jersey either online here or may call (855) 281-3339.
More information about the Voting Rights Act and other federal voting rights laws are available on the Justice Department’s website at www.justice.gov/crt/voting-section.
Justice Department Reaches Agreement to Protect Rights of Spanish-Speaking Voters in Union CountyRead the Press Release
NEWARK, N.J. – The Justice Department announced today that it has entered into a proposed consent decree with Union County, New Jersey, and county elections officials to settle a voting rights lawsuit.
The proposed consent decree was filed in federal court in conjunction with a lawsuit brought by the Justice Department. The Department’s lawsuit brings claims under Section 203 and 208 of the Voting Rights Act regarding the availability of election assistance and materials in Spanish for Spanish-speaking voters with limited English proficiency. Section 203 requires that certain jurisdictions provide election materials and assistance in other languages, in addition to English. These jurisdictions have been determined by the Census Bureau to have a substantial population of citizens who speak a language other than English and who have limited English proficiency. Under Section 203 of the Voting Rights Act, Union County is required to provide assistance and make materials available in Spanish. Section 208 provides a right for voters who need assistance with voting – due to inability to read or write, blindness, or disability – to receive assistance from the person of their choice, so long as that person is not an agent of the voter’s employer or union. The consent decree would resolve the United States’ claims.
“The right to vote is a cornerstone of our democracy,” U.S. Attorney Philip R. Sellinger said. “We will work tirelessly to ensure that every eligible American is able to vote free of unlawful barriers. Through the agreement entered today, we ensure that no one is denied this sacred right simply because they are a Spanish speaker.”
“Language barriers should never prevent an eligible voter from being able to freely participate in the democratic process,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said. “Equal access to the ballot in a modern democracy means ensuring the availability of bilingual materials for those who are limited English proficient and guaranteeing the right to receive assistance by a person of your choice. We will continue using our voting rights laws to confront the barriers that stand between voters and the ballot box.”
The proposed consent decree, which must be approved by the court, requires the implementation of a comprehensive Spanish-language elections program under Section 203. The Union County Clerk and Board of Elections will provide all election-related information in both English and Spanish, including information in the polling places and online. The Union County Board of Elections will also ensure that in-person language assistance is available at all early voting sites and at each election district with at least 100 Spanish-surnamed registered voters. Spanish-language assistance will continue to be available to all voters by telephone during elections. In addition, the consent decree provides that any voter covered by Section 208 who needs assistance to vote may be assisted by the person of that voter’s choice, other than an agent of the voter’s employer or union, during any stage of the voting process. The consent decree also provides that federal observers may monitor election day activities in polling places in Union County.
Individuals may file voting rights complaints with the Civil Rights Division either online here, or may call (800) 253-3931. Individuals may also contact the U.S. Attorney’s Office for the District of New Jersey either online here or may call (855) 281-3339.
More information about the Voting Rights Act and other federal voting rights laws are available on the Justice Department’s website at www.justice.gov/crt/about/vot.
The government is represented by Michael E. Campion, Chief of the U.S. Attorney’s Office’s Civil Rights Division; Assistant U.S. Attorney Susan Millenky of the U.S. Attorney’s Civil Rights Division; Bert Russ, Deputy Chief of the Voting Section in the Justice Department’s Civil Rights Division; Bruce Gear, Trial Attorney, Voting Section; and Michelle Rupp, Trial Attorney, Voting Section.
unioncounty.consentdecree.pdf unioncounty.complaint.pdf union_county_spanish.pdfJustice Department Announces Court-Authorized Disruption of the Snake Malware Network Controlled by Russia's Federal Security ServiceRead the Press Release
The Justice Department today announced the completion of a court-authorized operation, codenamed MEDUSA, to disrupt a global peer-to-peer network of computers compromised by sophisticated malware, called “Snake,” that the United States Government attributes to a unit within Center 16 of the Federal Security Service of the Russian Federation (FSB). For nearly 20 years, this unit, referred to in court documents as “Turla,” has used versions of the Snake malware to steal sensitive documents from hundreds of computer systems in at least 50 countries, which have belonged to North Atlantic Treaty Organization (NATO) member governments, journalists, and other targets of interest to the Russian Federation. After stealing these documents, Turla exfiltrated them through a covert network of unwitting Snake-compromised computers in the United States and around the world.
Operation MEDUSA disabled Turla’s Snake malware on compromised computers through the use of an FBI-created tool named PERSEUS, which issued commands that caused the Snake malware to overwrite its own vital components. Within the United States, the operation was executed by the FBI pursuant to a search warrant issued by United States Magistrate Judge Cheryl L. Pollak of the Eastern District of New York, which authorized remote access to the compromised computers. This morning, the Court unsealed redacted versions of the affidavit submitted in support of the application for the search warrant, and of the search warrant issued by the Court. For victims outside the United States, the FBI is engaging with local authorities to provide both notice of Snake infections within those authorities’ countries and remediation guidance.
Merrick B. Garland, United States Attorney General; Breon Peace, United States Attorney for the Eastern District of New York; Lisa O. Monaco, Deputy Attorney General of the Justice Department; and Michael J. Driscoll, Assistant Director-in-Charge, FBI, New York Field Office, announced the operation.
“The Justice Department, together with our international partners, has dismantled a global network of malware-infected computers that the Russian government has used for nearly two decades to conduct cyber-espionage, including against our NATO allies,” stated Attorney General Garland. “We will continue to strengthen our collective defenses against the Russian regime’s destabilizing efforts to undermine the security of the United States and our allies.”
“Russia used sophisticated malware to steal sensitive information from our allies, laundering it through a network of infected computers in the United States in a cynical attempt to conceal their crimes. Meeting the challenge of cyberespionage requires creativity and a willingness to use all lawful means to protect our nation and our allies,” stated United States Attorney Peace. “The court-authorized remote search and remediation announced today demonstrates my Office and our partners’ commitment to using all of the tools at our disposal to protect the American people.”
“Through a high-tech operation that turned Russian malware against itself, U.S. law enforcement has neutralized one of Russia’s most sophisticated cyber-espionage tools, used for two decades to advance Russia’s authoritarian objectives,” stated Deputy Attorney General Monaco. “By combining this action with the release of the information victims need to protect themselves, the Justice Department continues to put victims at the center of our cybercrime work and take the fight to malicious cyber actors.”
“The operation we announced today successfully disrupted the foremost cyber espionage tool of the Russian government. For two decades, the malware allowed Russian Intelligence to compromise computer systems and steal sensitive information - harming not only the United States Government and our allies but also private sector organizations. This action should serve as a reminder to Russia and any other hostile nation willing to steal information, the FBI and our partners are united in our efforts to protect our countries,” stated FBI Assistant Director-in-Charge Driscoll.
“For 20 years, the FSB has relied on the Snake malware to conduct cyberespionage against the United States and our allies – that ends today,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department will use every weapon in our arsenal to combat Russia’s malicious cyber activity, including neutralizing malware through high-tech operations, making innovative use of legal authorities, and working with international allies and private sector partners to amplify our collective impact.”
As detailed in court documents, the U.S. government has been investigating Snake and Snake-related malware tools for nearly 20 years. The U.S. government has monitored FSB officers assigned to Turla conducting daily operations using Snake from a known FSB facility in Ryazan, Russia.
Although Snake has been the subject to several cybersecurity industry reports throughout its existence, Turla has applied numerous upgrades and revisions, and selectively deployed it, all to ensure that Snake remains the FSB’s most sophisticated long-term cyberespionage malware implant. Unless disrupted, the Snake implant persists on a compromised computer’s system indefinitely, typically undetected by the machine’s owner or authorized users. The FBI has observed Snake persist on particular computers despite a victim’s efforts to remediate the compromise.
Snake provides its Turla operators the ability to remotely deploy selected malware tools to extend Snake’s functionality to identify and steal sensitive information and documents stored on a particular machine. Most importantly, the worldwide collection of Snake-compromised computers acts as a covert peer-to-peer network, which utilizes customized communication protocols designed to hamper detection, monitoring, and collection efforts by Western and other signals intelligence services.
Turla uses the Snake network to route data exfiltrated from target systems through numerous relay nodes scattered around the world back to Turla operators in Russia. For example, the FBI, its partners in the U.S. Intelligence Community, together with allied foreign governments, have monitored the FSB’s use of the Snake network to exfiltrate data from sensitive computer systems, including those operated by NATO member governments, by routing the transmission of these stolen data through unwitting Snake-compromised computers in the United States.
As described in court documents, through analysis of the Snake malware and the Snake network, the FBI developed the capability to decrypt and decode Snake communications. With information gleaned from monitoring the Snake network and analyzing Snake malware, the FBI developed a tool, named PERSEUS, that establishes communication sessions with the Snake malware implant on a particular computer, and issues commands that causes the Snake implant to disable itself without affecting the host computer or legitimate applications on the computer.
Today, to empower network defenders worldwide, the FBI, the National Security Agency, the Cybersecurity and Infrastructure Security Agency, the U.S. Cyber Command Cyber National Mission Force, and six other intelligence and cybersecurity agencies from each of the Five Eyes member nations, issued a joint cybersecurity advisory (the “Joint Advisory”) with detailed technical information about the Snake malware that will allow cybersecurity professionals to detect and remediate Snake malware infections on their networks. The Joint Advisory is available here. The FBI and U.S. Department of State are also providing additional information to local authorities in countries where computers that have been targeted by the Snake malware have been located.
Although Operation MEDUSA disabled the Snake malware on compromised computers, victims should take additional steps to protect themselves from further harm. The operation to disable Snake did not patch any vulnerabilities or search for or remove any additional malware or hacking tools that hacking groups may have placed on victim networks. The Department of Justice strongly encourages network defenders to review the Joint Advisory for further guidance on detection and patching. Moreover, as noted in court documents, Turla frequently deploys a “keylogger” with Snake that Turla can use to steal account authentication credentials, such as usernames and passwords, from legitimate users. Victims should be aware that Turla could use these stolen credentials to fraudulently re-access compromised computers and other accounts.
The FBI is providing notice of the court-authorized operation to all owners or operators of the computers remotely accessed pursuant to the search warrant.
The criminal investigation into the FSB’s use of the Snake malware is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Ian C. Richardson is in charge of the investigation, with assistance from the National Security Division’s Counterintelligence and Export Control Section.
The efforts to disrupt the Snake malware network were led by the FBI’s New York Field Office, FBI’s Cyber Division, the U.S. Attorney’s Office for the Eastern District of New York, and the National Security Division’s Counterintelligence and Export Control Section. Assistance was also provided by the Criminal Division’s Computer Crime and Intellectual Property Section.
Those efforts would not have been successful without the partnership of numerous private-sector entities, including those victims who allowed the FBI to monitor Snake communications on their systems.
The Search Warrant:
In the Matter of the Search of Information Associated with Computers Constituting the Snake Malware Network
Eastern District of New York Docket No. 23-MJ-0428 (CLP)
Justice Department Announces Court-Authorized Disruption of Snake Malware Network Controlled by Russia’s Federal Security ServiceRead the Press Release
The Justice Department today announced the completion of a court-authorized operation, code-named MEDUSA, to disrupt a global peer-to-peer network of computers compromised by sophisticated malware, called “Snake”, that the U.S. Government attributes to a unit within Center 16 of the Federal Security Service of the Russian Federation (FSB). For nearly 20 years, this unit, referred to in court documents as “Turla,” has used versions of the Snake malware to steal sensitive documents from hundreds of computer systems in at least 50 countries, which have belonged to North Atlantic Treaty Organization (NATO) member governments, journalists, and other targets of interest to the Russian Federation. After stealing these documents, Turla exfiltrated them through a covert network of unwitting Snake-compromised computers in the United States and around the world.
Operation MEDUSA disabled Turla’s Snake malware on compromised computers through the use of an FBI-created tool named PERSEUS, which issued commands that caused the Snake malware to overwrite its own vital components. Within the United States, the operation was executed by the FBI pursuant to a search warrant issued by U.S. Magistrate Judge Cheryl L. Pollak for the Eastern District of New York, which authorized remote access to the compromised computers. This morning, the court unsealed redacted versions of the affidavit submitted in support of the application for the search warrant, and of the search warrant issued by the court. For victims outside the United States, the FBI is engaging with local authorities to provide both notice of Snake infections within those authorities’ countries and remediation guidance.
“The Justice Department, together with our international partners, has dismantled a global network of malware-infected computers that the Russian government has used for nearly two decades to conduct cyber-espionage, including against our NATO allies,” said Attorney General Merrick B. Garland. “We will continue to strengthen our collective defenses against the Russian regime’s destabilizing efforts to undermine the security of the United States and our allies.”
“Through a high-tech operation that turned Russian malware against itself, U.S. law enforcement has neutralized one of Russia’s most sophisticated cyber-espionage tools, used for two decades to advance Russia’s authoritarian objectives,” said Deputy Attorney General Lisa O. Monaco. “By combining this action with the release of the information victims need to protect themselves, the Justice Department continues to put victims at the center of our cybercrime work and take the fight to malicious cyber actors.”
“For 20 years, the FSB has relied on the Snake malware to conduct cyberespionage against the United States and our allies – that ends today,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department will use every weapon in our arsenal to combat Russia’s malicious cyber activity, including neutralizing malware through high-tech operations, making innovative use of legal authorities, and working with international allies and private sector partners to amplify our collective impact.”
“Russia used sophisticated malware to steal sensitive information from our allies, laundering it through a network of infected computers in the United States in a cynical attempt to conceal their crimes. Meeting the challenge of cyberespionage requires creativity and a willingness to use all lawful means to protect our nation and our allies,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The court-authorized remote search and remediation announced today demonstrates my office and our partners’ commitment to using all of the tools at our disposal to protect the American people.”
“Today’s announcement demonstrates the FBI’s willingness and ability to pair our authorities and technical capabilities with those of our global partners to disrupt malicious cyber actors,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “When it comes to combating Russia’s attempts to target the United States and our allies using complex cyber tools, we will not waver in our work to dismantle those efforts. When it comes to any nation state engaged in cyber intrusions which put our national security at risk, the FBI will leverage all tools available to impose cost on those actors and to protect the American people.”
As detailed in court documents, the U.S. Government has been investigating Snake and Snake-related malware tools for nearly 20 years. The U.S. government has monitored FSB officers assigned to Turla conducting daily operations using Snake from a known FSB facility in Ryazan, Russia.
Although Snake has been the subject to several cybersecurity industry reports throughout its existence, Turla has applied numerous upgrades and revisions, and selectively deployed it, all to ensure that Snake remains Turla’s most sophisticated long-term cyberespionage malware implant. Unless disrupted, the Snake implant persists on a compromised computer’s system indefinitely, typically undetected by the machine’s owner or authorized users. The FBI has observed Snake persist on particular computers despite a victim’s efforts to remediate the compromise.
Snake provides its Turla operators the ability to remotely deploy selected malware tools to extend Snake’s functionality to identify and steal sensitive information and documents stored on a particular machine. Most importantly, the worldwide collection of Snake-compromised computers acts as a covert peer-to-peer network, which utilizes customized communication protocols designed to hamper detection, monitoring, and collection efforts by Western and other signals intelligence services.
Turla uses the Snake network to route data exfiltrated from target systems through numerous relay nodes scattered around the world back to Turla operators in Russia. For example, the FBI, its partners in the U.S. Intelligence Community, together with allied foreign governments, have monitored the FSB’s use of the Snake network to exfiltrate data from sensitive computer systems, including those operated by NATO member governments, by routing the transmission of these stolen data through unwitting Snake-compromised computers in the United States.
As described in court documents, through analysis of the Snake malware and the Snake network, the FBI developed the capability to decrypt and decode Snake communications. With information gleaned from monitoring the Snake network and analyzing Snake malware, the FBI developed a tool named PERSEUS which establishes communication sessions with the Snake malware implant on a particular computer, and issues commands that causes the Snake implant to disable itself without affecting the host computer or legitimate applications on the computer.
Today, to empower network defenders worldwide, the FBI, the National Security Agency, the Cybersecurity and Infrastructure Security Agency, the U.S. Cyber Command Cyber National Mission Force, and six other intelligence and cybersecurity agencies from each of the Five Eyes member nations issued a joint cybersecurity advisory (the Joint Advisory) with detailed technical information about the Snake malware that will allow cybersecurity professionals to detect and remediate Snake malware infections on their networks. The FBI and U.S. Department of State are also providing additional information to local authorities in countries where computers that have been targeted by the Snake malware have been located.
Although Operation MEDUSA disabled the Snake malware on compromised computers, victims should take additional steps to protect themselves from further harm. The operation to disable Snake did not patch any vulnerabilities or search for or remove any additional malware or hacking tools that hacking groups may have placed on victim. The Department of Justice strongly encourages network defenders to review the Joint Advisory for further guidance on detection and patching. Moreover, as noted in court documents, Turla frequently deploys a “keylogger” with Snake that Turla can use to steal account authentication credentials, such as usernames and passwords, from legitimate users. Victims should be aware that Turla could use these stolen credentials to fraudulently re-access compromised computers and other accounts.
The FBI has provided notice of the court-authorized operation to all owners or operators of the computers remotely accessed pursuant to the search warrant.
Assistant U.S. Attorney Ian C. Richardson for the Eastern District of New York is prosecuting the case, with valuable assistance provided by the National Security Division’s Counterintelligence and Export Control Section.
The efforts to disrupt the Snake malware network were led by the FBI New York Field Office, FBI’s Cyber Division, the U.S. Attorney’s Office for the Eastern District of New York, and the National Security Division’s Counterintelligence and Export Control Section. The Criminal Division’s Computer Crime and Intellectual Property Section provided valuable assistance. Those efforts would not have been successful without the partnership of numerous private-sector entities, including those victims who allowed the FBI to monitor Snake communications on their systems.
Jefferson City Tax Preparer Sentenced for Filing False Tax ReturnsRead the Press Release
JEFFERSON CITY, Mo. – A Jefferson City, Mo., tax preparer was sentenced in federal court today for filing false tax returns for himself and others.
Josiah Mator, Jr., 41, was sentenced by U.S. District Judge Roseann Ketchmark to two years and nine months in federal prison without parole. The court also ordered Mator to pay a fine of $1,000 and $200,292 in restitution to the federal government and the state of Missouri.
On June 23, 2022, Mator was convicted at trial of two counts of filing false federal income tax returns.
Mator, a citizen of the United States who moved to this country from Liberia in 2001, prepared and electronically filed tax returns for individuals in the Liberian community and other friends and acquaintances for tax years 2010 through 2015. Mator did not have a registered tax preparation business, but used Express 1040 software to prepare his clients’ tax returns from his home.
According to court documents, individuals received substantial refunds they were not legally eligible to receive in 53 fraudulent claims related to the scheme. Matro’s criminal conduct resulted in a federal and state tax loss of $200,292.
Mator was found guilty of filing a false federal income tax return for his own 2015 income. Mator claimed that his adjusted gross income in 2015 was $16,552, and his taxable income was $0, knowing that he did not include the business income from his tax preparation service.
Mator also was found guilty of filing a false federal income tax return for individuals identified as “I.A.” and L.A.” The fraudulent return reported $16,000 in unreimbursed employee business expenses in 2015, although Mator knew I.A. and L.A. did not have any expenses related to their employment. As a result, I.A. and L.A. received a refund they were not legally eligible to receive.
This case was prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by IRS-Criminal Investigation.
Iowa Felon Sentenced to Almost Four Years in Prison for Illegally Possessing a FirearmRead the Press Release
A man who illegally possessed a firearm was sentenced on May 8, 2023, in federal court in Cedar Rapids, Iowa.
Lavell Andre Barnes, Jr., age 27, from Iowa City, Iowa, was convicted of possession of a firearm by a felon.
At the sentencing, information showed that Barnes traveled from Chicago with a firearm, illegal controlled substances, and a large amount of United States Currency with children in the vehicle. Barnes admitted that he illegally possessed a firearm after being previously convicted of two felony convictions in Cook County, Illinois. Barnes was also previously convicted of a controlled substance offense involving heroin.
Sentencing was held before United States District Court Judge C.J. Williams. Barnes was sentenced to serve 46 months’ imprisonment and must serve a three‑year term of supervised release following his term of incarceration. There is no parole in the federal system. Barnes remains in the custody of the United States Marshal until he is transported to federal prison.
The case was prosecuted by Assistant United States Attorney Jason Dorval Norwood and was investigated by the Iowa City Police Department’s Street Crimes Action Team.
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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-84.
Follow us on Twitter @USAO_NDIA.
Husband and Wife Found Guilty in Meth and Money Laundering ConspiracyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a jury has convicted Salvador Madrigal Jr. (age 41) and Anahi Plascencia Cardona (age 33), both of Sioux Falls, South Dakota, following a four-day long jury trial in federal district court in Sioux Falls. Both defendants were convicted of one count of Conspiracy to Distribute a Controlled Substance and one count of Conspiracy to Launder Monetary Instruments. The verdicts were returned on May 5, 2023.
The charge of Conspiracy to Distribute a Controlled Substance carries a mandatory minimum sentence of 10 years in prison and a maximum penalty of life in custody and/or a $10,000,000 fine, five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. The charge of Conspiracy to Launder Monetary Instruments carries a maximum penalty of twenty years in custody and/or a $500,000 fine, three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Madrigal Jr. and Plascencia Cardona were indicted by a federal grand jury in July of 2021.
Salvador Madrigal Jr., and his wife Anahi Plascencia Cardona, were leaders of a South Dakota drug cell that was responsible for trafficking hundreds of pounds of methamphetamine into South Dakota from California and Mexico. The husband-and-wife team worked with other members of the conspiracy, including some of their family members, who have previously been charged and convicted, to aid in the transportation and distribution of well over one hundred pounds of methamphetamine and hundreds of thousands of dollars.
Madrigal Jr. recruited his aunt, Maria Magana Zavala, and her husband William Hartwick, to make multiple trips to and from California to transport methamphetamine, marijuana, and money, promising them that this endeavor would be prosperous. Magana Zavala and Hartwick were instead sentenced to 70 months in custody for their involvement in the conspiracy. Madrigal Jr. also recruited his younger brother, Oscar Madrigal, to aid in the organization’s activities. Oscar Madrigal was sentenced to 120 months in custody for Conspiracy to Distribute a Controlled Substance in July of 2022. Madrigal Jr. also involved his mother, Rosa Madrigal, in the money laundering conspiracy by arranging to have her make multiple deposits of cash into multiple institutions, to launder the proceeds of his drug trafficking organization. Rosa Madrigal was sentenced to 60 months in custody for Conspiracy to Launder Monetary Instruments in August of 2022. Multiple other co-conspirators who were responsible for the sub-distribution of these drugs have also been charged and sentenced in federal court.
This case was investigated by the Drug Enforcement Administration, Internal Revenue Service Criminal Investigations, and the Sioux Falls Area Drug Task Force. Assistant U.S. Attorney Mark Hodges prosecuted the case alongside Special Assistant U.S. Attorney Elizabeth Ebert, who also serves as a prosecutor with the South Dakota Attorney General’s Office.
Presentence investigations were ordered, and sentencing dates for each defendant will be set in the future. The defendants were both remanded to the custody of the U.S. Marshals Service.
Hospital Owner and Hospitalist Group Agree to Pay $560K to Settle False Claims Act AllegationsRead the Press Release
The United States Attorney for the District of Connecticut and the Connecticut Office of the Attorney General today announced that YALE NEW HAVEN HEALTH SERVICES CORP. and NORTHEAST MEDICAL GROUP, INC. have entered into a civil settlement agreement with the federal and state governments and have paid $560,718.48 to resolve allegations that they violated the federal and state False Claims Acts for submitting false claims to Medicare and Medicaid for services billed by physicians when, in fact, the services should have been billed by mid-level providers at a lower reimbursement rate.
Yale New Haven Health Services Corp. (“Yale”) is a nonprofit health system that owns several acute-care hospitals, including Bridgeport Hospital. Northeast Medical Group, Inc. (“Northeast Medical”) employs internal medicine hospitalist physicians and mid-level providers (i.e., advanced practice nurse practitioners and physician assistants) at Bridgeport Hospital. Northeast Medical is an affiliate of Yale, and outsources its billing, coding, and compliance to Yale.
The federal and state governments allege that, between July 2014 and June 2020, Yale and Northeast Medical violated the federal and state False Claims Acts by submitting false claims to Medicare and Medicaid for evaluation and management services billed by Northeast Medical hospitalist physicians to Bridgeport Hospital patients that did not satisfy certain billing requirements and, instead, should have been billed by mid-level providers. As a result, Yale and Northeast Medical improperly received 10 to 15 percent higher in Medicare and Medicaid reimbursements for the allegedly falsely billed hospitalist physician services. To resolve their liability, Yale and Northeast Medical have paid $560,718.48.
The False Claims Act allegations resolved by the settlement were originally brought in a lawsuit filed by a whistleblower under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The relator (whistleblower), a former employee of Northeast Medical, will receive $106,536.51 as her share of the recovery. The case resolved by this settlement was captioned U.S. ex rel. Cadariu v. Northeast Medical Group et al. (Docket No. 19-cv-904).
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Sarah Gruber, and by Assistant Attorney General Rick Porter of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
High-Ranking Member of G-Shine Bloods Sentenced for Drug ConspiracyRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced today to 15 years in prison for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug-trafficking crime.
According to court documents, from May 2021 to April 2022, Torian Nemow, 30, purchased, manufactured, distributed, and possessed with intent to distribute at least 500 grams of a mixture and substance containing a detectable amount of methamphetamine and a quantity of marijuana in Hampton Roads.
On April 29, 2022, members of the Norfolk and Virginia Beach Police Departments executed a search warrant on Nemow’s residence. In Nemow’s residence, they found 2,321 pills containing methamphetamine, 27 pounds of marijuana, 56 bottles containing promethazine, 3 digital scales, packaging material, $60,000 in United States currency, 145 rounds of ammunition, and two firearms, one of which had been reported stolen. Officers also found numerous photographs of Nemow with other known members of the G-Shine/Gangster Killer Bloods, a criminal street gang and subset of the United Blood Nation. During the course of their investigation, law enforcement obtained information that showed that Nemow was a high-ranking member of the gang.
Nemow had set up his own security cameras within the residence. One of the cameras was pointed at drugs sitting on a countertop in the kitchen. Footage from this security camera showed Nemow and others manipulating drugs at the kitchen counter on different occasions.
Officers searched Nemow’s cell phones and social media accounts, where they found additional photographs of Nemow with other members of the G-Shine Bloods, conversations where Nemow talked about trafficking in narcotics, and photographs of firearms and narcotics.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Ramin Fatehi, Norfolk Commonwealth’s Attorney; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Elizabeth Wilson Hanes.
Assistant U.S. Attorney Amanda Cheney and Special Assistant U.S. Attorney Graham M. Stolle prosecuted the case. Stolle also serves as an Assistant Norfolk Commonwealth’s Attorney.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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. 2:22-cr-118.
Hartford Man Sentenced to 50 Months in Prison for Gun Possession Offense, Violating Supervised ReleaseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JOSEPH STEELE, 36, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 50 months of imprisonment, followed by one year of supervised release, for unlawfully possessing a firearm and for violating the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, in June 2017, Steele was arrested by Hartford Police after a search of his vehicle revealed a stolen .40 caliber semiautomatic pistol, 50 wax folds of fentanyl, and two knotted plastic bags containing approximately 6.5 grams of crack cocaine. On April 16, 2018, a federal jury found Steele guilty of drug distribution and firearm possession offenses. On July 9, 2018, Judge Shea sentenced him to 36 months of imprisonment and three years of supervised release.
Steele was released from federal prison in February 2020. On January 28, 2022, while on federal supervised release, he was arrested by Hartford Police after they found him in possession of a loaded 9mm handgun.
Steele’s criminal history also includes a 2016 state conviction for possession of a firearm without a permit. 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.
Steele has been detained since January 28, 2022. On February 10, 2023, he pleaded guilty to possession of a firearm by a felon.
Judge Shea sentenced Steele to 37 months of imprisonment for unlawfully possessing a firearm, and a consecutive 13 months of imprisonment for violating the conditions of his supervised release.
This investigation was conducted by the Hartford Police Department and the FBI’s Northern Connecticut Gang Task Force. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
The case was prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins through the Project Safe Neighborhoods (PSN) initiative. PSN is 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.
Gloucester County Man Admits Filing False Tax ReturnsRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man today admitted filing false claims against the IRS, U.S. Attorney Philip R. Sellinger announced.
Christian L. Whittaker, 42, of Williamstown, New Jersey, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to one count of an indictment charging him with making false claims against the IRS.
According to documents filed in this case and statements made in court:
Whittaker knowingly and willfully prepared, electronically signed, and filed with the IRS false U.S. Individual Income Tax Returns (Forms 1040) for the tax years 2016 to 2019. Whittaker claimed that a business paid him significant wages and incurred substantial losses, when in fact the business was fictitious. Based on the false claims, the IRS paid more than $300,000 in refunds to Whittaker. More than $80,000 was paid by the IRS and garnished to pay debts that Whittaker had previously incurred.
The charge that Whittaker pleaded guilty to is punishable by up to five years in prison and a fine $250,000, or twice the gross profits or gross loss, whichever is greatest. Sentencing is scheduled for Seopt. 13, 2023.
U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
whittaker.indictment.pdfFormer Coinbase Insider Sentenced in First Ever Cryptocurrency Insider Trading CaseRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that ISHAN WAHI, a former product manager at Coinbase Global, Inc. (“Coinbase”), was sentenced by U.S. District Judge Loretta A. Preska to two years in prison for providing Coinbase’s confidential business information about upcoming Coinbase crypto asset listings to his brother and his friend so that they could place profitable trades in advance of Coinbase’s listing announcements. WAHI previously pled guilty to two counts of conspiracy to commit wire fraud.
U.S. Attorney Damian Williams said: “Ishan Wahi – a former Coinbase product manager – violated the trust placed in him by his employer by tipping others with valuable confidential information regarding Coinbase’s planned token listings. Today’s sentence should send a strong signal to all participants in the cryptocurrency markets that the laws decidedly do apply to them. The Southern District of New York will hold those who engage in insider trading to full account, regardless of whether their illegal conduct occurs in the equity markets or in the market for crypto assets.”
According to the allegations in the Indictment and statements made in public court proceedings:
At all relevant times, Coinbase was one of the largest cryptocurrency exchanges in the world. Coinbase users could acquire, exchange, and sell various crypto assets through online user accounts with Coinbase. Periodically, Coinbase added new crypto assets to those that could be traded through its exchange, and the market value of crypto assets typically significantly increased after Coinbase announced that it would be listing a particular crypto asset. Accordingly, Coinbase kept such information strictly confidential and prohibited its employees from sharing that information with others, including by providing a “tip” to any person who might trade based on that information.
Beginning in approximately October 2020, ISHAN WAHI worked at Coinbase as a product manager assigned to a Coinbase asset listing team. In that role, WAHI was involved in the highly confidential process of listing crypto assets on Coinbase’s exchanges and had detailed and advanced knowledge of which crypto assets Coinbase was planning to list and the timing of public announcements about those crypto asset listings.
On multiple occasions between June 2021 and April 2022, WAHI violated his duties of trust and confidence to Coinbase by providing confidential business information that he learned in connection with his employment at Coinbase to Nikhil Wahi and Sameer Ramani so that they could secretly engage in profitable trades around public announcements by Coinbase that it would be listing certain crypto assets on Coinbase’s exchanges. Following Coinbase’s public listing announcements, on multiple occasions, Nikhil Wahi and Ramani sold the crypto assets for a profit.
On April 12, 2022, a Twitter account that is well known in the crypto community tweeted regarding an Ethereum blockchain wallet “that bought hundreds of thousands of dollars of tokens exclusively featured in the Coinbase Asset Listing post about 24 hours before it was published.” The trading activity referenced in the April 12 tweet was trading previously conducted by Ramani based on tips provided by WAHI. Coinbase thereafter publicly replied on Twitter, noting that it had already begun investigating the matter and, a few weeks later, stated in a public blog post that any Coinbase employee who leaked confidential company information would be “immediately terminated and referred to relevant authorities (potentially for criminal prosecution).” On May 11, 2022, Coinbase’s director of security operations emailed WAHI to inform him that he should appear for an in-person meeting relating to Coinbase’s asset listing process at Coinbase’s Seattle, Washington, office on May 16, 2022. WAHI confirmed he would attend the meeting.
On the evening of May 15, 2022, WAHI purchased a one-way flight to India that was scheduled to depart the next day shortly before WAHI was supposed to be interviewed by Coinbase. In the hours between booking the flight and his scheduled departure, WAHI called and texted Nikhil Wahi and Ramani about Coinbase’s investigation and sent both of them a photograph of the messages he had received on May 11, 2022, from Coinbase’s director of security operations. Prior to boarding the May 16, 2022, flight to India, WAHI was stopped by law enforcement and prevented from leaving the country.
* * *
In addition to the prison sentence, ISHAN WAHI, 32, of Seattle, Washington, was ordered to forfeit various crypto assets that he received in connection with the scheme.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation. He also acknowledged the assistance of the Justice Department’s National Cryptocurrency Enforcement Team, as well as that of the Securities and Exchange Commission, which separately initiated civil proceedings against WAHI.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Noah Solowiejczyk and Nicolas Roos are in charge of the prosecution.
Final Member of Drug Trafficking Conspiracy Pleads Guilty to Fentanyl and Methamphetamine TraffickingRead the Press Release
PHOENIX, Ariz. – Carlos Alberto Castro-Ruiz, 26, of Phoenix, Arizona, pleaded guilty yesterday to Conspiracy to Distribute Fentanyl and Methamphetamine before United States District Judge Steven P. Logan. A sentencing hearing is set for July 18, 2023.
Castro-Ruiz’s co-conspirators also pleaded guilty to Conspiracy to Distribute Fentanyl and Methamphetamine. On April 13, 2023, Alexander Ortega-Islas, 22, of Phoenix, Arizona, pleaded guilty before Judge Logan. Keivin Crosswell-Cervantes, 27, of Mexico, pleaded guilty on May 2, 2023, before Judge Logan. Sentencing hearings are scheduled for July 10 and July 17, 2023, respectively.
The three co-conspirators all admitted that they delivered approximately 400,000 blue fentanyl pills, approximately 20,000 multi-colored fentanyl pills (“skittles”), and approximately 25 pounds of methamphetamine to undercover officers on September 22, 2022. Law enforcement officers also seized an AK-47-style pistol, a .45 caliber Kimber 1911 semi-automatic pistol with two magazines, and a .45 caliber FN semi-automatic pistol.
A conviction for Conspiracy to Distribute Fentanyl and Methamphetamine carries a mandatory minimum sentence of 10 years in prison, with a maximum penalty of life imprisonment, a fine up to $10,000,000, or both.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Homeland Security Investigations, Nogales, and the Drug Enforcement Administration, Nogales conducted the investigation in this case. Assistant United States Attorney Matthew G. Eltringham, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR 22-01295-PHX-SPL
RELEASE NUMBER: 2023-068_Castro-Ruiz, et al.# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Federal Investigation into “Straw Purchasing” of Handguns in Wisconsin Results in Charges Against Chicago-Area Woman and Convicted FelonRead the Press Release
CHICAGO — A Chicago-area woman has been charged in federal court with conspiring to “straw purchase” 19 handguns in Wisconsin on behalf of a convicted felon. The felon was charged as part of the investigation with illegal firearm possession.
SONYA BROWN purchased the guns from licensed dealers at stores and gun shows in Wisconsin and falsely certified on federal forms that she was both a Wisconsin resident and the actual buyer of the firearms, according to a complaint filed in U.S. District Court in Chicago. In reality, Brown purchased the guns on behalf of a convicted felon with whom she resided in the Chicago area, the complaint states. The felon – SIMONE DUNN – had previously been convicted of murder and other felonies and was not lawfully allowed to possess a firearm. Dunn was on parole from the murder conviction when Brown purchased the guns for him earlier this year, the complaint states.
Brown, 49, of Oak Park, Ill., is charged with conspiracy to violate federal firearm laws. Dunn, 49, of Oak Park, Ill., is charged with illegal firearm possession. Both defendants were arrested Monday. U.S. Magistrate Judge Gabriel A. Fuentes scheduled Brown’s detention hearing for Wednesday at 11:00 a.m., while a detention hearing for Dunn was set for Thursday at 1:00 p.m. The U.S. Attorney’s Office will seek to have both defendants remain detained pending trial.
The charges were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; and Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Substantial assistance was provided by the ATF Milwaukee Field Office. The government is represented by Assistant U.S. Attorney Irene Hickey Sullivan.
“Straw purchasers enable the unlawful possession of firearms and the violence that too often follows,” said Acting U.S. Attorney Pasqual. “Our office is committed to stopping the flow of guns to individuals who cannot legally possess them.”
“When firearms are diverted from the legal market to the illegal market via trafficking schemes such as straw purchasing, it threatens the safety of our communities,” said ATF SAC Amon. “ATF will continue to investigate these important cases in coordination with our law enforcement and prosecutorial partners throughout Chicagoland to ensure prohibited persons do not possess firearms.”
Disrupting illegal firearms trafficking is a centerpiece of the Chicago Firearms Trafficking Strike Force, the Department of Justice’s cross-jurisdictional strike force aimed at reducing gun violence. As part of the Chicago Strike Force, the U.S. Attorney’s Office collaborates with ATF and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.
Holding illegal firearm possessors accountable through federal prosecution is also a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, the U.S. Attorney’s Office has deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The conspiracy charge against Brown is punishable by a maximum sentence of five years in federal prison, while the unlawful possession charge against Dunn is punishable by up to ten years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Elkins man admits to having large amount of methamphetamineRead the Press Release
ELKINS, WEST VIRGINIA – An Elkins, West Virginia, man has admitted to having more than 300 grams of crystal methamphetamine and a firearm.
Joshua Ervin Cave, 43, pled guilty today to possession and firearms charges. According to court documents, Cave had 338 grams of methamphetamine, also known as “ice,” and a hunting rifle found during search warrants executed at his home and a storage unit. Cave is prohibited from having firearms because of two prior domestic assault convictions in Randolph County Magistrate Court.
Cave is facing up to 20 years in prison for the drug charge and up to 10 years for the firearms charge. He is currently being held at the Tygart Valley Regional Jail. He will be sentenced at a later date. 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 Mountain Region Drug Task Force.
Assistant U.S. Attorney Stephen Warner is prosecuting the case on behalf of the government.
U.S. Magistrate Judge Michael John Aloi presided.
El Departamento de Justicia llega a un decreto por consentimiento con Union County, New Jersey, bajo la Ley de Derechos ElectoralesRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un decreto por consentimiento propuesto con Union County, New Jersey, y los oficiales electorales del condado para resolver una demanda de derechos electorales.
El decreto por consentimiento propuesto fue radicado junto con la demanda del departamento en el Tribunal Federal de Distrito. La demanda alega violaciones bajo las secciones 203 y 208 de la Ley de Derechos Electorales sobre la disponibilidad de asistencia electoral y materiales en español para votantes hispanos con conocimientos limitados del idioma inglés. La sección 203 requiere que ciertas jurisdicciones provean materiales electorales y asistencia en otros idiomas, así como en inglés. Estas jurisdicciones son aquellas que el Buró de Censos ha determinado que tienen una población sustancial de ciudadanos quienes hablan un idioma que no es inglés y tienen conocimentos limitados del idioma inglés. Bajo la sección 203, Union County tiene la obligación de proveer asistencia y materiales en español. La sección 208 le brinda el derecho a los votantes que necesiten asistencia al votar – debido a inhabilidad de leer o escribir, ceguera o discapacidad – a conseguir la ayuda de una persona que ellos mismos elijan, siempre y cuando esa persona no sea un agente del empleador del votante ni tampoco un funcionario de su sindicato laboral. El decreto por consentimiento resolvería las alegaciones del departamento.
“Las barreras idiomáticas jamás deben privar a un votante elegible de participar plenamente en el proceso democrático,” dijo Kristen Clarke, Secretaria de Justicia Auxiliar a cargo de la División de Derechos Civiles del Departamento de Justicia. “La igualdad de acceso a las urnas en la democracia moderna significa asegurar la disponibilidad de materiales bilingües para aquellos con conocimientos limitados del idioma inglés y garantizar el derecho de recibir ayuda de una persona que el votante mismo elija. Nosotros seguiremos utilizando las leyes de derechos electorales para enfrentar las barreras que se interponen entre los votantes y las urnas.”
“El derecho al voto es un pilar de nuestra democracia,” dijo el Fiscal Federal Philip S. Sellinger. “Trabajaremos sin cesar para asegurar que cada americano elegible pueda votar libre de barreras ilegales. Mediante el acuerdo al que llegamos hoy, nos aseguramos de que a nadie se le deniegue este sagrado derecho simplemente por hablar español.”
El decreto por consentimiento, que aún requiere la aprobación del Tribunal de Distrito, exige el establecimiento de un programa de asistencia idiomática integral en español bajo la sección 203. El Secretario del Condado y la Junta de Elecciones proveerá toda la información electoral tanto en inglés como en español, incluyendo en los lugares de votación y en línea. La Junta de Elecciones de Union County también asegurará la presencia de oficiales electorales bilingües en los lugares de votación temprana y en los lugares de votación con al menos 100 votantes registrados con apellidos de origen hispano. La asistencia en español seguirá disponible por teléfono para todos los votantes durante las elecciones. Además, el decreto por consentimiento provee que cualquier votante cubierto bajo la sección 208 quien necesite asistencia para votar podrá recibir ayuda de una persona que el votante mismo elija, siempre y cuando no sea un agente de su empleador ni tampoco un funcionario de su sindicato laboral, durante cualquier etapa del proceso electoral. El decreto por consentimiento también dispone que observadores federales pueden monitorear las actividades el Día de Elecciones en los lugares de votación en Union County.
Para denunciar una possible vulneración de las leyes federales de derecho al voto a la División de Derechos Civiles puede hacerlo en línea o llamar al (800) 253-3931. Puede también llamar a la Oficina del Fiscal Federal del Distrito de New Jersey en línea o llamar al (855) 281-3339.
Para obtener más información sobre la Ley de Derechos Electorales y otras leyes federales electorales, visite el portal del Departamento de Justicia en www.justice.gov/crt/voting/.
Eastern Shore Man Pleads Guilty to Conspiring to Steal More Than $1.8 Million from a Salisbury BusinessRead the Press Release
Baltimore, Maryland – Stephen Franklin, age 54, of Salisbury, Maryland, pleaded guilty today to a wire fraud conspiracy and to aggravated identity theft in connection with the theft of more than $1.8 million from Shore Appliance Connection.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, Franklin was the chief operating officer of Accurate Optical, a chain of optometric shops on the Eastern Shore of Maryland and with the owners of Accurate Optical he also purchased East Coast Optometric, a chain of South Carolina optical shops. Franklin and co-defendant Duane G. Larmore met through the Salisbury Chamber of Commerce and became friendly.
As detailed in the plea agreement, Larmore was an employee at Shore Appliance Connection (“Shore Appliance”), located in Salisbury, Maryland, whose duties included maintaining the books and records for the company. The company was owned and operated by Owner #1 and Owner #2. From mid-September 2016 through about March 2020, Franklin conspired with others, including Larmore, to steal more than $1.8 million from Shore Appliance.
Specifically, Franklin and Larmore stole over $1 million from Shore Appliance to use for their own purposes, including to make investments and to pay business expenses for Franklin’s businesses, without the knowledge and consent of the owners of Shore Appliance. For example, Franklin introduced Larmore to an individual who offered an opportunity to invest in an oil deal that promised quick and substantial returns, for an initial investment of $100,000. Franklin did not have $100,000 but knew that Larmore could obtain the investment funds from Shore Appliance. Larmore wire transferred $100,000 of Shore Appliance’s money to an account controlled by Franklin, who wire transferred the funds to an individual in the United Kingdom to invest in the oil deal. Those funds were ultimately returned to Shore Appliance because the name on the bank account did not match the named beneficiary on the wire transfer form completed by Franklin. Prior to the funds being returned and at Franklin’s urging, Larmore transferred another $100,000 to T.H., purportedly an attorney for the oil deal. Franklin also convinced Larmore to invest in other deals, including: in 2016, a $95,000 investment with GenFinance II, PLC, London, U.K., which then required an additional $300,000, and then additional funds for additional expenses and travel abroad; in 2018, an investment through W.S. of $35,000 and an investment through Gateway Capital of $50,000; and in 2019 - 2020, investments and expenses through I.P. and E. P.-S. to recover assets in the custody of U.S. Customs, part of the Department of Homeland Security. No investment paid any return to the schemers.
To conceal how much money had been removed from Shore Appliance and to obtain cash to invest, Franklin suggested that Larmore enter into factoring contracts. Franklin had experience with borrowing operating funds for his optical companies from factors and provided Larmore with the names and contact information for factoring companies. Factoring is a means by which businesses, can obtain cash quickly by leveraging accounts receivable. With Franklin’s encouragement, Larmore applied for a factoring contract for Shore Appliance without the knowledge or approval of the owners, corporate directors, or officers of Shore Appliance. As detailed in the plea agreement, the factoring contracts provided cash deposits to Shore Appliance’s bank accounts but encumbered the accounts receivable of Shore Appliance and required payments and interest of more than $725,000.
To obtain contracts with factoring companies for Shore Appliance and to conceal the fact that the Shore Appliance owners were not aware of and had not approved the factoring contracts, the signatures of the owners were forged, and the fraudulent signatures were witnessed or notarized by Franklin. Further, Larmore and a female employee of Franklin’s posed as the owners in telephone conversations with representatives of the factoring companies to confirm their approval of the factoring contracts. In addition, to conceal Larmore’s embezzlements and the factoring agreements, Larmore caused Shore Appliance to draw on Shore Appliance’s lines of credit with two separate financial institutions to obtain another $200,000 in cash. As of March 2020, Shore Appliance still owed $208,394.92 in principal and interest on these lines of credit.
Finally, when Franklin’s business began having financial difficulties, Franklin requested that Larmore provide funds from Shore Appliance for Franklin’s companies. Larmore provided funds to Franklin for his businesses, including to pay rent and employee salaries, as well as paying to rent a storage facility and hire trucks to move equipment and office furniture when Accurate Optical was evicted from its Salisbury, Maryland office in July 2019. All the while, Franklin continued to suggest that Larmore put money into other investment schemes, which Larmore did.
In all, Larmore paid $739,295.28 of Shore Appliance’s funds, without the officers and owners’ knowledge or consent, to invest in fraudulent schemes that never paid any money back. Of that amount, $395,000 was moved through bank accounts controlled by Franklin. Franklin caused an additional loss of $171,548.67 by having Larmore transfer funds to Franklin or to Franklin’s companies. As a result of the conspiracy and efforts to conceal the losses, Shore Appliance lost an additional $731,250.07 in fees and other payments to factors and to factoring brokers. Shore appliance also paid extra interest in the amount of $208,395 from Larmore drawing on its bank lines of credit. Thus, the factoring arrangements and advances on Shore Appliance’s lines of credit in total caused Shore Appliance to lose in actual funds $939,645. However, Shore Appliance as of March 2020 still owed the factors almost $270,000. For all of Franklin’s and Larmore’s conduct, actual cash losses to Shore Appliance totaled $1,850,488.94 and intended losses totaled $2,137,674.74.
Franklin faces a maximum sentence of 20 years in federal prison for a wire fraud conspiracy and a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for September 7, 2023, at 9:30 a.m. As stated in his plea agreement, Franklin will be required to pay restitution in the full amount of the victims’ losses, which the parties stipulate is $1,850,488.94. Franklin’s liability is joint with co-defendant Duane G. Larmore. Duane G. Larmore, age 48, of Salisbury, previously pleaded guilty to his role in the conspiracy and is awaiting sentencing.
United States Attorney Erek L. Barron commended the FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Evelyn L. Cusson, Joyce K. McDonald, and Leo J. Wise, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach. For more information about resources available to report fraud, please visit https://www.justice.gov/usao-md/report-fraud.
# # #
East Windsor Man Sentenced to Prison for Oxycodone Prescription Fraud SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JAYSON KEMP, 46, of East Windsor, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 12 months and one day of imprisonment, followed by three years of supervised release, for operating a scheme to acquire and distribute oxycodone obtained through fraudulent prescriptions.
According to court documents and statements made in court, Kemp obtained blank prescription paper from employees of various Connecticut medical practices. He kept some of the prescription paper for himself and also sold some of the prescription paper, for thousands of dollars, to other individuals. Kemp and his co-conspirators recruited “runners,” who typically were individuals who received Medicaid and Medicare benefits, to fill fraudulent prescriptions at various pharmacies. Kemp and his co-conspirators filled out each prescription with the runner’s identifying information and forged a doctor’s signature on the prescription. The runner then filled the fraudulent prescription at a pharmacy, generally using their Medicaid or Medicare benefits, and provided the pills to Kemp and his co-conspirators in exchange for approximately $50 per prescription. Kemp and his co-coconspirators then sold the pills to individuals suffering from opioid addictions.
Kemp and his co-conspirators were responsible for filling at least 150 fraudulent prescriptions for oxycodone, almost all of which were for 150 30-mg oxycodone pills.
Judge Bolden ordered Kemp to pay $48,836.14 in restitution.
Kemp was arrested on August 2, 2019. On July 5, 2022, he pleaded guilty before U.S. District Judge Victor A. Bolden in Bridgeport to one count of conspiracy to possess with intent to distribute, and to distribute, oxycodone.
Kemp, who is released on a $150,000 bond, is required to report to prison on July 5.
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, the U.S. Department of Health and Human Services Office of the Inspector General, and the Vernon Police Department. The case was prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Durham Man Sentenced for Firearms Charges after Fleeing from Highway PatrolRead the Press Release
GREENSBORO – A Durham man was sentenced today to 5 years in prison, after pleading guilty to firearms charges stemming from two incidents in 2022, announced United States Attorney Sandra J. Hairston.
According to court documents, JHAMAR ORATAVIO DAWSON, also known as “Smoke”, age 22, fled from a North Carolina State Highway Patrol trooper on June 21, 2022, after nearly colliding with the trooper’s car at a traffic light in Durham. As he fled, DAWSON reached a speed of 75mph in a 45mph zone and drove toward oncoming traffic. At the intersection of E. Club Blvd. and Dearborn Dr., DAWSON’s car skidded into a ditch, went airborne, and burst into flames.
DAWSON and an unidentified passenger fled on foot. The trooper pursued them and caught DAWSON. Law enforcement officers found a handgun on the driver’s seat of the car driven by DAWSON. DAWSON was arrested on state charges.
DAWSON was previously convicted of felony flee to elude arrest in a motor vehicle in December 2021 in Durham County Superior Court and was therefore prohibited from possessing a firearm.
In October 2022, the Federal Bureau of Investigation (FBI) Safe Streets Task Force arrested DAWSON at an apartment in Wake County, NC for possessing a firearm in June. During DAWSON’s arrest, FBI agents discovered a stolen firearm, a large amount of cash, and small bags of suspected controlled substances.
DAWSON was charged both in the Middle District of North Carolina and the Eastern District of North Carolina with a violation of Title 18, United States Code, Section 922(g)(1), felon in possession of a firearm. DAWSON pleaded guilty to both counts in the Middle District of North Carolina on January 17, 2023.
DAWSON is facing additional charges in Wayne County, NC stemming from a July 2020 incident, including felony flee to elude arrest in a motor vehicle, possession of a stolen firearm, and assault with a deadly weapon on a government official.
DAWSON was sentenced today to a 60-month term of imprisonment by the Honorable William L. Osteen, Jr., United States District Judge in the United States District Court for the Middle District of North Carolina. In addition to prison time, DAWSON was ordered to serve a three-year term of supervised release and to pay a special assessment of $200.00.
The cases were investigated by the Federal Bureau of Investigation Safe Streets Task Force, the North Carolina State Highway Patrol, and the Durham Police Department, and are being prosecuted by Middle District of North Carolina Assistant United States Attorney Eric Iverson with assistance from the Eastern District of North Carolina.
###
Drug Testing Companies Agree to Collectively Pay $1.7 Million to Resolve False Claims Act AllegationsRead the Press Release
LEXINGTON, Ky. — Two Kentucky-based businesses involved in performing urine drug tests for the family court system have agreed to collectively pay $1,740,620 to resolve civil allegations that they improperly billed those tests to Medicare and Kentucky Medicaid.
Blue Waters Assessment and Testing Services, LLC (“BATS”) is a Lexington-based business that provides services relating to urine drug testing, including the collection of specimens from individuals who were ordered by the Fayette County family courts to receive such testing as part of their court cases. BATS sent the specimens to VerraLab JA, LLC, a clinical laboratory based in Louisville that does business under the name BioTap Medical (“BioTap”). BioTap performed the urine drug tests and billed them to Kentucky Medicaid and Medicare.
Billing these tests to Kentucky Medicaid and Medicare violated the False Claims Act, a federal law that prohibits the submission of false or fraudulent claims for payment to the federal government, because Medicaid and Medicare only pay for laboratory tests used for purposes of medical diagnosis or treatment. Medicare and Medicaid – as federally-funded health insurance programs – do not pay for tests performed for non-medical reasons, such as those that are performed only to satisfy a court order. In fact, Medicaid’s regulations explicitly prohibit reimbursement for laboratory tests, such as urine drug tests, that were ordered by a court.
The Government alleged that BioTap knew that the urine drug tests at issue were court-ordered, and not used for medical diagnosis or treatment, but billed those tests to Medicare and Medicaid anyway. As a result, BioTap received reimbursements from Medicare and Medicaid to which it was not entitled. Under the terms of the Settlement Agreements, BioTap agreed to pay $1,490,620 to resolve allegations it submitted false claims. BATS and its owner, David Waters, agreed to pay $250,000 for their alleged roles in causing the submission of false claims; the settlement with BATS and Waters was pursuant to the Department of Justice’s inability-to-pay policy.
“The federal Medicaid and Medicare programs are designed – and funded – to provide health care benefits to eligible individuals with a medical necessity,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “These lab tests were not medically necessary and were improperly billed to these programs. It is important to all of us that steps are taken to return such misapplied funds to their appropriate purpose – providing medical care.”
“Submitting false claims to Medicare or Medicaid wastes taxpayer dollars and undermines the integrity of those programs," said Tamala E. Miles, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG remains committed to ensuring that those who attempt to take valuable resources away from their intended recipients are held accountable.”
The settlements resolve a lawsuit brought by two private citizens under the qui tam provisions of the False Claims Act. Under those provisions, a private party can file a civil action on behalf of the United States, thereby bringing allegations of fraud to the Government’s attention, and share in any financial recovery. As part of this resolution, the individuals who filed the qui tam complaint will receive approximately $295,000 from the settlements.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the Affirmative Civil Enforcement section of the U.S. Attorney’s Office. Assistant United States Attorney Christine Corndorf represented the United States.
This case is captioned United States ex rel. Nam Nguyen & Misty Nall v. Blue Waters Assessment & Testing Services, LLC; Crossroads Counseling Services, Inc.; David Waters; and VerraLab JA, LLC, Case No. 5:21-CV-00297-DCR. The claims resolved by the settlements are allegations only, and there has been no determination of liability.
– END –
Doctor Admits Telemedicine Fraud in St. LouisRead the Press Release
ST. LOUIS – A doctor from Kansas pleaded guilty in U.S. District Court in St. Louis Tuesday and admitted ordering millions of dollars’ worth of unnecessary and expensive genetic tests and orthotic braces for thousands of patients as part of a telemedicine fraud scheme.
Dr. Gautam Jayaswal, 64, of Overland Park, pleaded guilty in front of U.S. District Judge Henry E. Autrey to one count of conspiracy to commit health care fraud.
Dr. Jayaswal has been a licensed medical doctor since 1986, working primarily as an emergency room physician. From 2017 to 2021, he contracted with multiple companies to work as a telemedicine doctor, including Barton & Associates, DialCare Co, Doctegrity, Doctorology LLC, USA Management Resources LLC, Rossiter and Cummaro Enterprises LLC, RAS/Sunshine Medical, Fix Ur Rx, Rocky Mountain Health, LSW Management Solutions, Physician Acquisition Pas and MP Network, his plea agreement says.
During that period, Dr. Jayaswal fraudulently ordered one or more orthotic braces for 1,433 patients. The companies used those fraudulent orders to defraud Medicare out of approximately $1.36 million. Between June 2018 and September 2021, Dr. Jayaswal signed orders for medically unnecessary genetic tests. Medicare Part B paid about $14.7 million for the 2,061 patients for whom Dr. Jayaswal was listed as the ordering physician.
Dr. Jayaswal faces up to five years in prison, a fine of up to $250,000 or both. He will also be ordered to repay the money.
The case was investigated by the U.S. Department of Health and Human Services Office of Inspector General and the FBI. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.
District Man Sentenced to 18 Months’ Imprisonment for Assault on a Member of the LGBTQ+ CommunityRead the Press Release
WASHINGTON – Anthony Duncan, 42, of Washington, D.C., was sentenced to 18 months’ imprisonment and 3 years of supervised release today for assaulting a pedestrian in May 2022, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
On February 27, 2023, Duncan was found guilty of Assault with Significant Bodily Injury at a trial in the Superior Court of the District of Columbia. The Honorable Lynn Leibovitz presided over the trial.
According to the government’s evidence presented at trial, on May 21, 2022, the victim was walking home on 15th Street in Northwest, Washington, D.C. from a Bocce Ball game when he was confronted by Duncan. Duncan, who was a stranger to the victim, accused the victim of directing a sexually suggestive act towards him and took offense. The victim vehemently denied making any such advance. As Duncan confronted the victim for this perceived advanced, he pulled out his cell phone, and recorded himself physically attacking the victim. Duncan broke the victim’s nose and teeth, and the victim required numerous stitches to stop the bleeding. Duncan called the victim a derogatory gay slur numerous times as he attacked the victim.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the work of those who handled the cases at the U.S. Attorney’s Office, including Assistant U.S. Attorneys Jared English and Randle Wilson, who investigated and prosecuted the case.
District Man Sentenced to 102 Months in Prison for Illegally Possessing Firearms and Operating an Unlicensed Marijuana DispensaryRead the Press Release
WASHINGTON – Terron Demise Barnes, also known as “Ali Vegaz,” 41, of Washington, D.C., was sentenced today to 102 months in prison for unlawful possession of a firearm by a convicted felon, and possession with the intent to distribute marijuana. The sentence was announced by U.S. Attorney Matthew M. Graves, Special Agent in Charge Wayne A. Jacobs, of the FBI Washington Field Office’s Criminal and Cyber Division, Acting Special Agent in Charge Michael T. Weddel, of the ATF Washington Field Division, and Chief Robert J. Contee, III, of the Metropolitan Police Department (“MPD”).
Barnes pleaded guilty on January 27, 2023. As part of the plea agreement, Barnes admitted to operating “Pak Religious, LLC” from his apartment in Northeast Washington, D.C., from approximately June 2019 through his arrest on July 2, 2020. Barnes advertised “Pak Religious” on the Instagram social media application, where he recruited buyers, in part, by falsely advertising himself as a “licensed D.C. marijuana dispensary.”
In addition to the prison term, U.S. District Court Judge Timothy J. Kelly ordered 48 months of supervised release.
According to the government’s evidence, federal agents and MPD officers executed a search warrant at Barnes’ apartment on July 2, 2020. During the search, agents found and seized the following items, which Barnes agreed to forfeit as part of his plea agreement:
- A Spikes Tactical AR-Style Pistol with an extended magazine;
- A Glock, Model 23, .40 caliber semi-automatic handgun fitted with an extended magazine and laser sight;
- 100 total rounds of ammunition, including ammunition for 9mm and .45 caliber firearms;
- Approximately twenty-four pounds, or 11.328.5 grams, of marijuana and THC-infused products;
- 52 Oxycodone pills not prescribed to Barnes;
- Six bottles of Promethazine with Codeine syrup not prescribed to Barnes;
- Three ledger books;
- $18,377 in United States Currency; and
- A Range Rover Sports Utility Vehicle which had been reported stolen in Prince George’s County, Maryland in May 2020.
In announcing the sentence, U.S. Attorney Graves, Special Agent in Charge Jacobs, Acting Special Agent in Charge Weddel, and Chief Contee commended the work of those who investigated the case, including FBI, ATF, and MPD. Finally, they cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney James B. Nelson, who investigated and prosecuted the case.
Detroit Street Gang Leader Sent to Prison for 25 Years for Murdering Two People as Part of a Racketeering ConspiracyRead the Press Release
DETROIT – A leader of a Detroit street gang was sentenced today to 25 years in prison for murdering two people, one of them an innocent 13-year-old bystander, as part of a racketeering conspiracy, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Special Agent in Charge James A. Tarasca, Federal Bureau of Investigation, Detroit Division.
Edwin Mills, aka “Edboy,” age 33, of Detroit, was sentenced by United States District Judge Mark A. Goldsmith. Mills had pleaded guilty to his crimes before Judge Goldsmith in October 2022.
Mills and ten other members of the “6 Mile Chedda Grove” gang were indicted in 2016 for racketeering offenses. According to court records, Mills admitted to being a member of the street gang, which operated on the eastside of Detroit. 6 Mile Chedda Grove was a violent organization responsible for murders, assaults, robberies, and narcotics trafficking in the Detroit metropolitan area and in other states. All eleven charged members of the gang have now been convicted and sentenced.
As a part of his guilty plea, Mills admitted to participating in the 2015 murder of two people. According to plea documents, Mills was with another gang member, Carlo Wilson, when they saw an individual with whom they had been feuding in a car outside of a market on the eastside of Detroit. Mills and Wilson then shot into the car, killing the individual and a 13-year-old passenger. Mills and Wilson also seriously injured two children who had been sitting on the hood of the car. Wilson pled guilty to the murders, and he was previously sentenced by Judge Goldsmith to 25 years in prison.
“Today’s sentence closes the book on a violent gang that terrorized an entire neighborhood,” U.S. Attorney Ison said. “The community is safer with these men off the streets.”
“Guns and drugs take the lives of far too many people in our communities, and Edwin Mills - as a leader of the ‘6 Mile Chedda Grove’ gang - contributed to the devastating impact of both on Detroit’s Eastside,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. "The FBI is committed to working with our law enforcement partners to address the threat of gang violence in our neighborhoods. The lengthy sentence Mills received today sends a strong message that we will not tolerate criminal enterprises using violence to further their agendas.”
The case was investigated by special agents of the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Robert Moran and Andrew R. Picek.
Derry Man Pleads Guilty to Unlawful Possession of a Molotov CocktailRead the Press Release
CONCORD – A Derry man pleaded guilty today in federal court to unlawfully possessing a destructive device known as a “Molotov cocktail,” U.S. Attorney Jane E. Young announces.
Zachary Tringali, 28, pleaded guilty to an indictment charging him with receipt and possession of an unregistered destructive device. U.S. District Court Judge Steven McAuliffe scheduled sentencing for August 22, 2023. Tringali was charged on April 11, 2022.
On August 6, 2021, Derry Police Department officers were investigating a reported burglary from Tringali’s commercial storage unit. The officers uncovered 12 assembled Molotov cocktails in the storage unit. A Molotov cocktail is an incendiary weapon consisting of a flammable liquid with a wick in a breakable container. Tringali admitted to knowingly possessing these weapons and failing to register them in the National Firearms Registration and Transfer Record, as required by federal law.
The charging statute provides a sentence of no greater than 10 years in prison, 3 years of supervised release, and a fine of $10,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Federal Bureau of Investigation, Boston Division, led the investigation. Valuable assistance was provided by the Derry Police Department. Assistant U.S. Attorney Jarad E. Hodes is prosecuting the case.
###
DOJ Recognizes National Fentanyl Awareness DayRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that today, May 9, is National Fentanyl Awareness Day.
One year ago, on the first National Fentanyl Awareness Day, the Drug Enforcement Administration (DEA) opened the Faces of Fentanyl exhibit at DEA Headquarters—a wall that displays the photos of those who have lost their lives to fentanyl poisoning. The memorial started with 100 photos; over the past year, Americans from across the country have sent DEA more than 5,000 photos. It reflects the reality that fentanyl is killing Americans from all walks of life, in every state and community in this country. The youngest person on the wall is 17-months old. The oldest is 70 years old.
“Fentanyl is the greatest threat to Americans today. It kills more Americans between the ages of 18 to 45 than terrorism, than car accidents, than cancer, than COVID. It kills nearly 200 Americans every day. And the number of children under 14 dying from fentanyl poisoning has increased at an alarming rate,” said DEA Administrator Anne Milgram. “The two drug cartels responsible for bringing fentanyl into the United States—the Sinaloa and Jalisco cartels—are intentionally driving addiction by selling fake pills and hiding fentanyl in other drugs, and they are reaching our kids through using social media platforms. I encourage you to use this day to talk to your families about the dangers of fentanyl and have an important conversation with your kids about who they are communicating with on social media.”
DEA urges the public to be vigilant about fentanyl and the deadly threat it poses:
- Fentanyl is a synthetic opioid that is approximately 50 times more potent than heroin and 100 times more potent than morphine. Just two milligrams—the equivalent of a few grains of salt—can kill a person.
- Fentanyl comes in two forms: pills and powder. The Sinaloa and Jalisco cartels are hiding fentanyl in fake pills that look like oxycodone, Xanax, and Percocet. The cartels are also mixing fentanyl powder in with cocaine, heroin, and methamphetamine. This is why many of the people poisoned by fentanyl had no idea they were even taking it.
- The cartels and their members and associates are using social media applications—including Facebook, Instagram, TikTok, and Snapchat—and encrypted platforms—including WhatsApp, Telegram, Signal, Wire, and Wickr—to sell pills and powders that are advertised as something else but actually have fentanyl inside.
The U.S. Attorney’s Office for the District of South Dakota works in conjunction with its state, local, tribal, and federal law enforcement partners to investigate and prosecute drug offenses, including distribution resulting in overdose or serious bodily injury. We are committed to identifying the sources of these life-threatening drugs and aggressively pursuing charges that carry a mandatory minimum sentence of twenty years in federal prison.
For additional facts about fentanyl, visit One Pill Can Kill.
Convicted Felon Sentenced to 20 Years in Prison for Armed Meth DistributionRead the Press Release
ALBANY, Ga. – A South Georgia resident with a lengthy criminal history who led law enforcement on a high-speed motorcycle chase while in possession of a large quantity of methamphetamine and an illegally possessed firearm was sentenced to prison for his crime.
Uriah Wade Hall, 46, of Adel, Georgia, was sentenced to serve 240 months in prison to be followed by five years of supervised release by U.S. District Court Judge Louis Sands on May 5. Hall previously pleaded guilty to possession with intent to distribute methamphetamine. There is no parole in the federal system.
“This defendant endangered himself, law enforcement and many other motorists during his reckless attempt to evade justice for armed methamphetamine trafficking,” said U.S. Attorney Peter D. Leary. “I appreciate the brave efforts of our law enforcement partners who run towards danger to keep our community safe.”
“Hall put not only himself but countless others at risk by his escape attempt as he carried a large amount of meth and illegally carried a weapon. I would like to thank our law enforcement partners who brought his dangerous actions to an end,” said Keri Farley, Special Agent in Charge of FBI Atlanta “The FBI will not stop in finding and bringing to justice those who repeatedly break the law.”
According to court documents, a Lowndes County Sheriff’s Office (LCSO) deputy observed Hall riding his silver Suzuki Busa motorcycle with a skull decal at speeds more than 20 miles above the posted limit on Nov. 6, 2021, on Shiloh Road in Hahira, Georgia. Hall increased his speed when the deputy attempted to pull him over, then slowed down near the interstate ramp. Hall made a motion with two fingers indicating he was continuing to flee, and entered the southbound ramp onto I-75, increasing his speed up to 145 mph for more than 20 miles.
Two Georgia State Patrol (GSP) units joined the pursuit and attempted to execute a rolling roadblock. Hall was able to accelerate and evade the first attempt; the second attempt was successful. Hall lost control of the motorcycle, coming to rest on the ground in the far-left lane of travel. EMS was called and deputies rendered medical aid to Hall.
Hall was in possession of a loaded 9mm caliber semiautomatic pistol, 829 grams of methamphetamine, a small quantity of heroin, digital scales with white powder residue and $1,610 cash. Hall had previously been convicted of several felony offenses, including burglary, possession with intent to distribute controlled substances and giving a false name to law enforcement. It is illegal for a convicted felon to possess a firearm.
The case was investigated by FBI and the Lowndes County Sheriff’s Office with assistance from the Georgia State Patrol.
Assistant U.S. Attorney Sonja Profit prosecuted the case for the Government.
Construction Business Operator Sentenced to Two Years in Prison for Failing to Pay More Than $4.4 Million of Payroll TaxesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that CHRISTIAN VARELA, a former owner of a construction firm, was sentenced yesterday by U.S. District Judge Philip M. Halpern to two years in prison for failing to pay to the Internal Revenue Service (“IRS”) more than $4.4 million of payroll taxes he collected from his employees. VARELA pled guilty to one count of failure to pay payroll taxes in September 2022.
According to the Information to which VARELA pled guilty and statements made in court:
VARELA owned and operated Gibraltar Contracting, Inc. (“Gibraltar”), a contracting firm with more than 55 employees that handled federal and state government construction contracts. VARELA was responsible under federal law for collecting, truthfully accounting for, and paying to the IRS federal income tax and contributions to Social Security and Medicare withheld from Gibraltar’s employees’ pay. In 10 different quarters from 2015 through 2018, VARELA failed to pay to the IRS a total of more than $4.4 million of these payroll taxes.
* * *
In addition to his prison term, VARELA, 48, of Staten Island, New York, was sentenced to three years of supervised release and 12 months of home confinement. The Court also imposed restitution to the IRS of $4,404,564.60.
Mr. Williams praised the outstanding investigative work of the IRS-Criminal Investigation in this case.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Jeffrey C. Coffman and James McMahon are in charge of the prosecution.
California man who allegedly trafficked women through multiple states using force, fraud, and coercion arrested and indicted in SeattleRead the Press Release
Seattle – A 30-year-old California man who allegedly forced women into prostitution using assaults, threats, and manipulation was arrested in Seattle last week on a grand jury indictment, announced U.S. Attorney Nick Brown. Brandon Denzel Washington appeared today, in U.S. District Court in Seattle, and was ordered detained pending trial. Washington is charged with four federal felonies related to human trafficking. He has pleaded “Not Guilty,” and trial is currently scheduled for July 2023.
According to the indictment, Washington is charged with two counts of Sex Trafficking through Force, Fraud, and Coercion. Count One charges the forced trafficking of an adult female in Seattle from 2014 to 2020. Count Three charges Sex Trafficking through Force, Fraud, and Coercion for a second victim in Seattle from 2017 to 2019. In each case, Washington transported the victims to engage in prostitution. The transportation is charged in Counts Two and Four. One victim was transported from California to Washington State and elsewhere to engage in commercial sex acts. The second victim was transported from Washington to Hawaii and elsewhere to engage in commercial sex acts.
The sex trafficking scheme was first uncovered when a retired Bellevue Police Officer working security noticed a high number of men visiting a Bellevue luxury apartment building over a period of just a few weeks. The investigation took off from there with law enforcement investigators analyzing financial records, travel records, ads for commercial sex posted in online forums, and social media posts to identify victims of Washington’s sex trafficking activities and to gather evidence of the offenses. Washington uses the name “Bentley” online and allegedly had women under his control tattoo the emblem of the luxury car company on their bodies to show his ownership.
According to records filed in the case, two different women have provided law enforcement with detailed accounts of the brutal assaults Washington used to keep the victims in his control and earning money for him through commercial sex acts. Washington is alleged to have trafficked multiple women through California, Washington, Nevada, Hawaii, Florida, New York, and other states. Evidence in the case reveals Washington allegedly forced one victim to sign a “contract” in blood spelling out that she had to earn $200,000 per year for him and “submit completely to him” – even asking permission to leave the house.
Washington’s social media posts indicate he remains active in human trafficking bragging about his luxury residences, vehicles, and wealth.
Sex trafficking through force, fraud and coercion is punishable by a mandatory minimum 15 years in prison. Transporting a victim for prostitution is punishable by up to 20 years in prison.
The case is being investigated by Homeland Security Investigations (HSI).
The case is being prosecuted by Assistant United States Attorney Erin H. Becker.
California Man Convicted of Health Care Kickback ConspiracyRead the Press Release
TEXARKANA, Texas – A Temecula, California, man has been found guilty of federal violations related to a health care kickback scheme in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Steven Donofrio, 49, was found guilty by a jury on May 5, 2023, following a two-week trial before U.S. District Judge Robert W. Schroeder, III.
“This is the last of many defendants in this case who abused our healthcare system for the sake of stealing taxpayer dollars and in the process caused unnecessary medical procedures,” said U.S. Attorney Damien M. Diggs. “Protecting citizens from physical and financial harm is always a top priority for law enforcement and parasites like Donofrio, who prey on vulnerable citizens, will be brought to justice.”
“The reach of HHS/OIG is far and wide. Our agents and law enforcement partners will not be deterred by the scope of a healthcare fraud investigation or the location of its defendants,” said Jason E. Meadows, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Dallas Region. “Donofrio and others stole millions from American taxpayers for medically unnecessary services and all to line the pockets of greedy individuals across the country. HHS/OIG and our partners remain laser-focused in our pursuit of those who use the Medicare trust fund as their own personal piggy bank.”
“Illegal kickback schemes corrupt the healthcare system by causing billions of dollars in losses each year. They also directly affect patients who expect to receive quality care and to be billed for legitimate services from their health care providers,” said FBI Dallas Special Agent in Charge Chad Yarbrough. “We will continue to work tirelessly with our law enforcement partners to hold those who commit healthcare fraud accountable and seek justice for the patients that are harmed as a result of these schemes.”
According to information presented in court, Donofrio conspired with others to pay and receive kickbacks in exchange for the referral of, and arranging for, health care business, specifically pharmacogenetic (PGx) tests. Pharmacogenetic testing, also known as pharmacogenomic testing, is a type of genetic testing that identifies genetic variations that affect how an individual patient metabolizes certain drugs. The illegal arrangement concerned the referral of PGx tests to clinical laboratories in Fountain Valley, California; Irvine, California; and San Diego, California. More than $28 million in illegal kickback payments were exchanged by those involved in the conspiracy.
In December 2019, twelve individuals from three states were charged for their roles in the kickback conspiracy. A federal grand jury in the Eastern District of Texas returned an indictment against Philip Lamb, 48, of Eagle, Colorado; Nicolas Arroyo, 41, of Tempe, Arizona; Vincent Marchetti, Jr., 58, of Coronado, California; William Flowers, 58, of Houston, Texas; Steven Donofrio; James J. Walker, Jr. a/k/a Jimmy Walker, 49, of Frisco, Texas; Timothy Armstrong, deceased, formerly of Frisco, Texas; Virginia Blake Herrin, 57, of Frisco, Texas; Patrick Ridgeway, 53, of Jackson, Mississippi; Chismere Mallard, 42, of McAllen, Texas; Dr. Ray W. Ng, 65, of Dallas, Texas; and Ashley Kretzschmar, 37, of Aledo, Texas; for conspiring to commit illegal remunerations in violation of the Anti-Kickback Statute.
Philip Lamb, Nicolas Arroyo, Jimmy Walker, Timothy Armstrong, Virginia Blake Herrin, Patrick Ridgeway, Chismere Mallard, and Ashley Kretzschmar pleaded guilty prior to trial. Kimberly Willette, 61, of Friendswood, Texas, and Edwin Chad Isbell, 50, of Atascocita, Texas also pleaded guilty to related charges.
Vincent Marchetti, Jr., was found guilty by a jury on December 16, 2021, following a month-long trial. He was sentenced to 48 months in federal prison on August 30, 2022.
On April 25, 2022, Nicolas Arroyo was sentenced to 21 months in federal prison. On August 23, 2022, Kimberly Willette was sentenced to one year and one day in federal prison, and Patrick Ridgeway was sentenced to a three-year term of probation and ordered to pay a $100,000 fine.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remunerations in exchange for the referral of or arranging for or recommending the ordering of items or services payable under federal health care programs. Under federal statutes, violations of the Anti-Kickback statute are punishable by up to five years in federal prison.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, and the FBI Dallas – Frisco Resident Agency. It was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld, Lucas Machicek, and Adrian Garcia, with assistance from Assistant U.S. Attorneys Stephan E. Oestreicher, Jr., Brent Andrus, and L. Frank Coan, Jr., and Special Assistant U.S. Attorney Laurel E.P. Simmons.
###
Brooklyn, New York Drug Trafficker Sentenced to Five Years in Federal PrisonRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont stated that Jazzmeek Johnson, 31, of Brooklyn, New York was sentenced today to serve 60 months in prison after he pleaded guilty to distributing controlled substances, specifically cocaine base and fentanyl. United States District Judge Christina Reiss ordered that after Mr. Johnson’s release from custody, he must serve a 3-year term of supervised release. Mr. Johnson has been detained since his arrest in July 2022.
According to court records, law enforcement began investigating Jazzmeek Johnson in August 2021. During the course of the investigation, Mr. Johnson sold controlled substances to a confidential informant on five separate occasions. On one of those occasions, May 31, 2022, Mr. Johnson sold cocaine base and fentanyl to a confidential informant in Rutland, Vermont. Mr. Johnson was arrested on July 17, 2022, during a traffic stop. Following his arrest, Mr. Johnson confessed to selling drugs out of the Highlander Motel in Rutland.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of Homeland Security Investigations, Rutland City Police Department, and the Vermont State Police.
Assistant United States Attorneys Jonathan Ophardt, Corinne Smith, and Zachary Stendig handled the prosecution. Heather Ross, Esq. represented Jazzmeek Johnson.