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Thursday 23 March 2023
Orion Township Man Sentenced to 15 Years for Distributing Child PornographyRead the Press Release
DETROIT – An Orion Township man was sentenced to 15 years in federal prison for distributing images of child pornography over the internet for the purpose of trading such images with other child predators, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Arron Robert Muhlitner, 27, was sentenced by United States District Judge David M. Lawson. Muhlitner had pleaded guilty to sending images of minors engaged in sexual acts to another person in order to induce that person to send Muhlitner similar images. Muhlitner used the internet messaging application Kik to trade the child pornography.
Muhlitner’s offense was discovered when an individual he knew found a phone belonging to Muhlitner and reviewed it. That person discovered images of child pornography and a conversation in which Muhlitner bragged about sexually assaulting a child in a manner that was similar to a sexual assault that he had previously been accused of committing. Law enforcement later examined the phone, finding numerous images of child pornography and multiple instances in which Muhlitner bragged about sexually assaulting children or expressing a desire to engage in sex acts with children. In total, Muhlitner’s phone contained 212 images and 58 videos of child pornography.
“Child pornography victimizes the most vulnerable and innocent in our community and protecting children from predators remains a critical mission for our office,” stated U.S. Attorney Ison. “Our community is now safer with this defendant’s lengthy sentence.”
“The significance of this sentence underscores the importance of keeping innocent children safe from dangerous predators and serves as a warning to those individuals who prey upon the most vulnerable in our society,” said James A. Tarasca, Special Agent in Charge of the FBI Detroit Field Office. “I would like to thank our law enforcement partners for their critical support in this investigation. The FBI continues to dedicate resources to the investigation and prosecution of sexual predators who commit crimes against children.”
“This person and his disgusting and abhorrent criminal behavior with children has rightfully been held accountable for his actions,” Oakland County Sheriff Michael Bouchard said. “I greatly appreciate the teamwork with our federal partners and the U.S. Attorney’s Office in bringing this case to closure.”
This case was investigated by the Federal Bureau of Investigation and the Oakland County Sheriff’s Office and was prosecuted by Assistant United States Attorneys Jeremiah Smith and Christopher Rawsthorne.Orange County Felon Sentenced for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas– An Orange, Texas man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Michael Lawrence Geral, Jr., 35, pleaded guilty on Oct. 4, 2022, to being a felon in possession of a firearm and was sentenced to 50 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on Dec. 13, 2021, Geral was stopped for a traffic violation by officers with the Orange Police Department. As officers spoke with Geral, they smelled the odor of burnt marijuana coming from the vehicle. Officers searched the vehicle and found a firearm which Geral admitted was his. Geral is a previously convicted felon and prohibited from possessing firearms.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Orange Police Department and prosecuted by Assistant U.S. Attorney Russell James.
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Ophthalmology Practice Agrees to Pay over $2.9 Million to Settle Kickback AllegationsRead the Press Release
SHERMAN, Texas – Ophthalmology provider group, Arlington Ophthalmology Association, P.L.L.C. d/b/a Kleiman Evangelista Eye Centers (“K&E”), with offices located in Arlington, Dallas, Plano, Southlake, Mount Pleasant, and Gun Barrel City, Texas, has agreed to pay $2,902,505 to resolve False Claims Act allegations that it offered and paid kickbacks to optometrists to induce referrals of patients who were candidates for cataract surgery in in violation of the False Claims Act and Anti-Kickback Statute, announced Eastern District of Texas U.S. Attorney Brit Featherston.
“The Eastern District of Texas is committed to looking beyond labels and examining providers' actual conduct. Although co-management can be a legitimate practice, merely applying that label does not give providers carte blanche to remunerate referring providers in order to secure business,” said U.S. Attorney Brit Featherston. “We are committed to investigating any financial incentives offered to secure referrals, which cloud providers' medical judgement, and violate the Anti-Kickback Statute.”
“Paying kickbacks to providers incentivizes doctors to treat patients based on illegitimate financial gain, rather than the patient's needs and best interests,” said Korby Harshaw, acting Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will not tolerate kickback arrangements, which undermine medical responsibility, put patients at risk, and can waste taxpayer dollars.”
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
K&E routinely engaged in the practice of co-management of cataract surgery patients with optometrists who referred patients to K&E. Patients who undergo cataract surgery require post-operative monitoring and care. When post-operative care is rendered by another provider other than the surgeon, such as an optometrist outside the surgeon’s practice, this practice is generally referred to as co-management.
The settlement announced today resolves certain allegations that K&E’s remunerative arrangement with referring optometrists who co-managed patient care with K&E violated the Anti-Kickback Statute. The United States contends K&E provided remuneration to referring optometrists when it paid referring optometrists money untethered to actual non-Medicare and non-Medicaid covered services for referring cataract patients who received premium intraocular lenses (IOLs) or laser-assisted cataract surgery, guaranteed the automatic return of patients referred, provided optometrists free continuing education courses, rewarded top referring optometrists with expensive dinners, and invited referring optometrists, their family, and staff to Texas Rangers stadium games at the company suite. The fees paid to referring optometrists for patients who received premium lenses or laser-assisted cataract surgery were in addition to the reimbursement already received by the optometrists from Medicare and Medicaid for performing post-operative cataract care and were not tied to or commensurate with actual post-operative services specifically attributed to premium IOLs or laser-assisted cataract surgery rendered, and thus constituted unlawful remuneration under the Anti-Kickback Statute.
As part of the settlement, K&E has agreed to cooperate with the Department of Justice’s investigations of and litigation against other parties involved in the alleged violations of law.
This investigation originated from a civil lawsuit filed by a Relator, or whistleblower, under the qui tam provisions of the False Claims Act, which allows private parties to bring suit on behalf of the government for false claims and to share in any recovery. The whistleblower in this matter will receive a percentage of this civil settlement.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
This civil settlement was the result of a coordinated effort between the U.S. Attorney’s Office, Eastern District of Texas, and the United States Department of Health and Human Services, Office of Inspector General. This matter was handled by Assistant U.S. Attorneys James Gillingham, Adrian Garcia, and Betty Young, Investigator Ann Williams, and Paralegal Christina Cate.
The claims resolved by this settlement is allegations only, and there has been no determination of liability.
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Operator of Tax Return Preparer Business Sentenced to Prison for Filing False Income Tax ReturnsRead the Press Release
LAS VEGAS – A Las Vegas tax return preparer was sentenced today by U.S. District Judge Andrew P. Gordon to 15 months in prison followed by one year of supervised release for preparing false tax returns for clients and causing the returns to be filed with the IRS.
Brenda Eleana Reyna (38) pleaded guilty in September 2022 to one count of aiding and assisting in the preparation and filing of a false tax return and one count of making and subscribing a false tax return.
According to court documents and admissions made in court, Reyna — the operator of USA Tu Casa Tax Services, a tax return preparation business in Las Vegas — fraudulently claimed deductions and misrepresented to her clients the contents of their returns that she would file on their behalf. For tax years 2015 through 2019, Reyna caused at least $2,750,000 in tax loss to the IRS. In addition, when preparing her own tax returns, Reyna fraudulently filed returns that did not accurately report her income. For tax years 2015 through 2020, Reyna failed to report approximately $606,663 in net income, causing at least $169,866 in tax loss to the IRS.
“During the ongoing tax season, tax return preparers are entrusted by their clients to accurately prepare and file tax information,” said United States Attorney Jason M. Frierson for the District of Nevada. “Together with IRS Criminal Investigation, we are committed to investigating and charging those who act improperly and attempt to defraud the IRS.”
“Ms. Reyna not only cheated the IRS, but she victimized her clients as well,” said Albert Childress, Special Agent in Charge, IRS Criminal Investigation. “She claimed larger refunds on her client’s behalf so that she could steal some of the refund for herself. Tax preparers should take note that if they attempt to defraud the IRS and their clients, they will be caught and held accountable.”
IRS Criminal Investigation investigated the case. Assistant United States Attorney Tony Lopez prosecuted the case.
If you suspect tax fraud, you can report a tax return preparer for misconduct to the IRS at www.irs.gov/tax-professionals/make-a-complaint-about-a-tax-return-preparer.
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North Providence Man Sentenced to Thirty Years in Federal Prison for Sexual Exploitation of Minors, Possession of Child PornographyRead the Press Release
PROVIDENCE – A North Providence man who previously admitted to a federal judge that he coerced and sexually assaulted two minor females, assaults that he recorded and retained on his cell phone, was sentenced today to thirty years in federal prison, announced United States Attorney Zachary A. Cunha.
In pleading guilty to two counts of sexual exploitation of a minor and one count of possession of child pornography, Francis Scott, 42, admitted that on February 14, 2017, while falsely posing as a ride-share driver, he offered a ride to a 15-year-old girl who requested that she be brought to her Providence school. Rather than driving her to the school, Scott drove the girl to a secluded area behind some commercial buildings where, after taking her cell phone from her, he coerced and sexually assaulted her. Scott recorded the assault on his cell phone.
Additionally, Scott admitted to coercing and sexually assaulting a 17-year-old female months earlier. Scott admitted that after he offered the 17-year-old female a ride, he provided her with marijuana and sexually assaulted her. The victim told police that, in addition to providing her with marijuana, Scott provided her with alcohol, and that she felt drugged before passing out. Scott recorded the sexual assault on his cell phone.
“The degradation, exploitation, and depravity represented by this defendant’s abuse of his victims - and his recording of those acts for his own obscene enjoyment, are contemptible,” remarked U.S. Attorney Cunha. “Today’s sentence should serve notice that we will bring to bear every law enforcement resource to address this kind of appalling abuse of children.”
According to court documents, the Providence Police Major Crimes Unit, the Providence Police Special Victims Unit, and the FBI’s Child Exploitation Unit also discovered videos allegedly filmed by Scott of him engaging in sex acts with numerous unidentified women, some of whom appear in the videos to be unconscious or semi-conscious.
Scott was sentenced today by U.S. District Court Judge William E. Smith to 360 months of incarceration in federal prison to be followed by 20 years of federal supervised release. Additional charges against Scott are pending in Rhode Island state court.
The case in U.S. District Court was prosecuted by Assistant U.S. Attorney Denise M. Barton.
United States Attorney Cunha thanks the Rhode Island Attorney General’s Office for their assistance in preparing the case charged in federal court.
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New York Doctor Who Performed Unnecessary Back Surgeries as Part of Trip-And-Fall Fraud Scheme Sentenced to 36 Months in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that SADY RIBEIRO, a New York-licensed pain management doctor, was sentenced today to 36 months in prison for his participation in a scheme to obtain fraudulent insurance reimbursements and other compensation from fraudulent trip-and-fall accidents. U.S. District Judge Sidney H. Stein imposed today’s sentence.
U.S. Attorney Damian Williams said: “Sady Ribeiro abused his professional license and broke his vow to do no harm by performing scores of medically unnecessary, invasive surgeries to increase the value of fraudulent trip-and-fall lawsuits. In carrying out the scheme, Ribeiro and his co-conspirators preyed upon the most vulnerable members of society – many of whom were poor, drug addicts, or homeless – in order to enrich themselves. Ribeiro now faces serious penalties for his callous crime.”
According to the Indictment, the Superseding Information, evidence presented in court, and statements made in court:
RIBEIRO, among others, was involved in an extensive fraud scheme through which fraud scheme participants defrauded businesses and insurance companies by staging trip-and-fall accidents and filing fraudulent lawsuits arising from those staged trip-and-fall accidents.
The fraud scheme participants recruited individuals (the “Patients”) to stage or falsely claim to have suffered trip-and-fall accidents at particular locations throughout the New York City area (the “Accident Sites”). In the course of the fraud scheme, scheme participants recruited more than 400 Patients. Members of the fraud scheme often recruited individuals who were extremely poor as Patients. For example, it was common for Patients to ask for food when they would appear for their intake meetings with the lawyers. Many of the Patients did not have sufficient clothing to keep them warm during the wintertime and had poor-quality shoes. Members of the fraud scheme also recruited Patients who were drug addicts, and it was common for scheme participants to recruit Patients from homeless shelters in New York City.
In the beginning, scheme participants would instruct Patients to claim they had tripped and fallen at a particular location, when in fact, the Patients had suffered no such accidents. Eventually, at the direction of the lawyers who filed fraudulent lawsuits on behalf of the Patients, scheme participants began to instruct Patients to stage trip-and-fall accidents, i.e., to go to a location and deliberately fall. Common Accident Sites used during the fraud scheme included cellar doors, cracks in concrete sidewalks, and purported “potholes.”
After the staged trip-and-fall accidents, Patients were referred to specific attorneys who would file personal injury lawsuits (the “Fraudulent Lawsuits”) against the owners of the Accident Sites and/or insurance companies of the owners of the accident sites (the “Victims”). The Fraudulent Lawsuits did not disclose that the Patients had deliberately fallen at the accident sites or, in some cases, had not fallen at all. During the course of the fraud scheme, the defendants, together with others known and unknown, attempted to defraud the Victims of more than $31,000,000.
The Patients were also instructed to receive ongoing chiropractic and medical treatment from certain chiropractors and doctors, including RIBEIRO. The fraud scheme participants advised the Patients that if they intended to continue with their lawsuits, they were required to undergo surgery. As an incentive to getting surgery, the recruited Patients were offered a payment typically between $1,000 and $1,500 after they completed surgery (“Post-Surgery Payments”). Patients generally were told to undergo two surgeries.
Doctors in the fraud scheme, including RIBEIRO, were expected to, and in fact did, conduct these surgeries, such as discectomies, regardless of the legitimate medical needs of the Patients. RIBEIRO performed discectomies, among other medical procedures, on more than 200 Patients. To maximize his patient base, RIBEIRO paid participants cash kickbacks in exchange for patient referrals.
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In addition to the prison term, RIBEIRO, 72, of New York, New York, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Williams also thanked the National Insurance Crime Bureau for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Nicholas Chiuchiolo, Nicholas Folly, Danielle Kudla, and Alexandra Rothman are in charge of the prosecution.
New Orleans Man’s Failure to Pay Employment Taxes Results in Federal Conviction and SentenceRead the Press Release
NEW ORLEANS, LOUISIANA – JOEY J. STEVENSON, age 41, from New Orleans, was sentenced to 5 years probation for failing to pay employment taxes for his business, Community Care Solutions, Inc to the IRS, announced U.S. Attorney Duane A. Evans.
STEVENSON was indicted and pled guilty to failure to pay over employment taxes owed to the IRS, in violation of 26 U.S.C. § 7202. According to court documents, STEVENSON owned and operated Community Care Solutions, Inc. From 2015 through 2019, STEVENSON withheld over $500,000 in Medicare, Social Security, and income taxes from his employees’ paychecks, but failed to pay that money to the IRS. STEVENSON also failed to pay an additional $254,181.21 in taxes for the employer’s share of Medicare and Social Security taxes. In total, STEVENSON failed to pay $796,077.41 in taxes owed to IRS in connection with Community Care’s employees.
The Honorable Ivan L.R. Lemelle sentenced STEVENSON to 5 years probation, restitution in the amount of $796,077.41 to the IRS, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of IRS Criminal Investigations. Assistant United States Attorney Nicholas D. Moses of the Financial Crimes Unit is in charge of the prosecution.
New Jersey Man Sentenced to 14 Months of Imprisonment for Human Smuggling ConspiracyRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont stated that Jose Alvarez, 31, of Trenton, New Jersey, was sentenced to 14 months of imprisonment today in United States District Court by United States District Judge Christina Reiss. Alvarez previously pleaded guilty to conspiracy to transport foreign nationals in furtherance of their illegal entry into the United States. Judge Reiss also ordered that Alvarez serve three years of supervised release after he serves his term of imprisonment.
According to court records, at about 3:00 a.m. on September 25, 2022, Alvarez was arrested near East Berkshire, Vermont after he had picked up four Guatemalan citizens who had just entered the United States illegally. Three of the foreign nationals stated each expected to pay $2000 to $3000 to Alvarez or his associates as a fee to be smuggled into the United States. Alvarez admitted to soliciting others to engage in the transportation of foreign nationals and to coordinating payment and pick up logistics with other members of the conspiracy.
U.S. Attorney Nikolas P. Kerest credited the agents of the United States Border Patrol for their investigation and apprehension of Alvarez and their continued efforts to prevent the exploitation of foreign nationals by human-smuggling organizations.
This matter was investigated by the United States Border Patrol. Assistant U.S. Attorney Michael Drescher was the prosecutor. Alvarez was represented by Michael Straub, Esq., of Burlington.
New Castle Man Sentenced to over Five Years in Prison for Drug and Gun CrimesRead the Press Release
PITTSBURGH – Jgenus Steele was sentenced to 63 months in prison for committing fentanyl, heroin, and crack cocaine trafficking and firearm crimes, Acting United States Attorney Troy Rivetti announced today.
Steele, age 23 of New Castle, Pennsylvania, was sentenced by United States District Judge Robert J. Colville. Judge Colville ordered Steele to serve three years of supervised release following his prison sentence.
Steele’s sentence is a result of a Lawrence County Drug Task Force investigation in 2019 and 2020. Steele was on parole at that time as a result of a prior conviction for aggravated assault. The Task Force made a controlled purchase of 12.44 grams of crack directly from Steele in December 2019 in New Castle. The Task Force thereafter served a search warrant at Steele’s apartment in New Castle in February 2020. A mixture containing 2.68 grams of fentanyl and heroin was located inside the apartment along with, among other things, five loaded pistols and $1,255.00 in drug trafficking proceeds.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Lawrence County Drug Task Force and the Federal Bureau of Investigation conducted the investigation in this case. This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department of Justice 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.
Navajo man pleads guilty to sexual abuse of a minor in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Bryon Yazzie, Jr. pleaded guilty to sexual abuse of a minor, sexual abuse, and aggravated sexual abuse in Indian Country. Yazzie, 21, of Tohatchi, New Mexico, and an enrolled member of the Navajo Nation, will remain in custody pending sentencing, which has not been scheduled.
According to the plea agreement, between August 2020 and continuing to November 2020, Yazzie engaged in sexual acts with a minor who had attained the age of 12 but had not yet attained the age of sixteen. Yazzie was nineteen years old at the time.
Yazzie faces up to 15 years in prison for sexual abuse of a minor and any term of years up to life for sexual abuse and aggravated sexual abuse. Upon his release from prison, Yazzie must register as a sex offender.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case. Assistant United States Attorney Caitlin L. Dillon is prosecuting the case.
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Navajo man pleads guilty to second degree murderRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Evan Haceesa pleaded guilty to second degree murder. Haceesa, 29, of Nageezi, New Mexico, and an enrolled member of the Navajo Nation, will remain in custody pending sentencing, which has not been scheduled.
According to the plea agreement, on Aug. 28, Haceesa attacked Jane Doe at his residence in Nageezi on the Navajo Nation. Haceesa punched Jane Doe in the face until she lost consciousness and kicked her several times. Upon arriving at the home, a Navajo Police Department officer responding to a report of domestic violence found the victim unclothed and unresponsive, lying in a wheelbarrow outside the house. Jane Doe died as a result of her injuries.
Haceesa faces up to life in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department. Assistant United States Attorney Matthew McGinley is prosecuting the case.
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Multi-Convicted Violent Felon Pleads Guilty to Possessing FirearmsRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Shawn Lanier Lowman, Jr. (23, Tampa) today pleaded guilty to possessing a firearm as a convicted felon. Lowman faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been set.
According to court documents, at approximately 11:00 p.m. on November 1, 2022, Lowman was a passenger in a black BMW 328i sedan that fled after officers from the Tampa Police Department (TPD) had attempted to conduct a traffic stop near the intersection of East Sligh Avenue and North Central Avenue, in the Old Seminole Heights neighborhood of Tampa. A short time later, TPD officers located the same black sedan in the Sulphur Springs neighborhood of Tampa, near the intersection of North Klondyke Street and East Bird Street. The car was eventually parked on the side of the road, and three occupants, including Lowman, exited the vehicle.
Two TPD officers attempted to make contact with Lowman, but Lowman fled on foot through the neighborhood evading the officers. A TPD Air Service helicopter positioned above Sulphur Springs used a Forward Looking InfraRed (“FLIR”) camera to track Lowman as he fled through the neighborhood and into the backyard of a residence where he hid in a shed. The helicopter’s FLIR camera was able to see the thermal signature of Lowman inside the shed. TPD officers converged on the shed and arrested Lowman. Inside the shed, the officers located 10.9 grams of bagged cocaine. During a search of Lowman, officers recovered three pills which tested positive for oxycodone. The officers then retraced Lowman’s path and found a backpack containing two loaded firearms: (1) a Glock 9mm pistol; and (2) a Smith & Wesson Model 659 9mm pistol (loaded with 14 rounds of ammunition, including one in the chamber). The backpack also contained a digital scale, an extended magazine (11 rounds) and a black ski mask. Latent fingerprints belonging to Lowman were located on the slide of the Glock pistol and two of Lowman’s latent fingerprints were found on the magazine of the 9mm Smith & Wesson pistol. In an interview with officers following his arrest, Lowman admitted that the fingerprints found on the firearms belonged to him and that he had possessed the firearms.
Lowman had previously served approximately six years in state prison for armed carjacking with a deadly weapon and armed burglary in July 2017. As a convicted felon, he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Tampa Police Department, the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney David W.A. Chee.
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.
Moving assault weapons into Mexico lands former cartel leader’s son in prisonRead the Press Release
BROWNSVILLE, Texas – Osiel Cardenas-Salinas Jr. has been sent to federal prison following his conviction of smuggling goods from the United States into Mexico, announced U.S. Attorney Alamdar S. Hamdani.
Cardenas aka Osiel Cardenas Jr., 31, Brownsville, pleaded guilty Aug. 2, 2022, to attempting to purchase 10 assault rifles to export into Mexico. Cardenas is the son of former head of the Gulf Cartel Osiel Cardenas-Guillen who was convicted and previously sentenced to 25 years in federal prison.
Today, U.S. District Judge Fernando Rodriguez Jr. ordered Cardenas-Salinas to serve 109 months in federal prison to be immediately followed by three years of supervised release and to pay a $20,000 fine. At the hearing, the court heard additional evidence that described Cardenas-Salinas’s role as a supervisor/manager. In handing down the sentence, the court noted Cardenas-Salinas had two firearms related cases in his criminal history and continued to engage in additional criminal activity with the smuggling of weapons, repeatedly engaging in violations involving firearms. At the hearing, Cardenas-Salinas apologized to the court and asked for mercy.
On April 22, 2021, Cardenas and others attempted to purchase five AK-47 type rifles and five AR-15 type rifles.
The undercover operation took place in a Brownsville store parking lot. Cardenas had instructed another individual to cross into Mexico to pick up the $15,000 for the weapons and to inform him when the weapons transaction had been completed.
At the time of his plea, Cardenas admitted he committed the crime while on supervised release for a previous felony.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigation conducted the investigation. Assistant U.S. Attorney Elena Salinas prosecuted the case.
Michigan Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
BECKLEY, W.Va. – Kyle L. Thomas, also known as “Trip,” 23, of Detroit, Michigan, was sentenced today to one year and 10 months in prison, to be followed by three years of supervised release, for distribution of fentanyl.
According to court documents and statements made in court, on October 18, 2021, Thomas sold a quantity of fentanyl to a confidential informant in Amigo, Raleigh County. Thomas sold quantities of fentanyl on two other occasions in Raleigh County.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Beckley/Raleigh County Drug and Violent Crime Unit (BRCDVCU).
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Andrew D. Isabell prosecuted the case.
The case is a result of a months-long investigation, dubbed “Operation Wolverine Carousel,” into the widespread distribution of heroin and fentanyl in Raleigh and Fayette counties.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-29.
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Man Sentenced to 10 Years After Being Caught with Fentanyl, MethamphetamineRead the Press Release
ST. LOUIS – U.S. District Judge Rodney W. Sippel on Thursday sentenced a man caught with methamphetamine and fentanyl to 10 years in prison.
Antoine Demetrius Meeks, 31, was caught by the O’Fallon Police Department with 208 grams of methamphetamine and 26 grams of fentanyl during an August 19, 2022 traffic stop.
Meeks pleaded guilty in U.S. District Court in St. Louis in December to possession with intent to distribute controlled substances. He was on federal supervised release at the time of the drug offense after a conviction in a 2015 case for being a felon in possession of a firearm.
The case was investigated by the O’Fallon Police Department, the St. Ann Police Department and the Drug Enforcement Administration.
Man Gets Prison Time for Meth TraffickingRead the Press Release
KANSAS CIY, KAN. – A Kansas man who led police on a high-speed chase was sentenced to 195 months in prison for drug trafficking.
According to court documents, in October 2022, Russell Loomis, 50, of Kansas City, Kansas, pleaded guilty to one count of possession with intent to distribute more than 50 grams of methamphetamine.
In September 2019, Loomis went to a home in Kansas City, Kansas, to deliver approximately 86 grams of methamphetamine in what was a controlled buy set up by the Drug Enforcement Administration (DEA). Loomis drove away from the residence, and a short time later the Kansas City, Missouri police attempted to pull him over. Loomis refused to stop and initiated a chase in which multiple law enforcement agencies and an aerial unit joined in the pursuit. Loomis struck two DEA vehicles, a Kansas Highway Patrol vehicle, and a Kansas Department of Transportation dump truck before eventually losing control and crashing. He was then taken into custody. Law enforcement officers found 150.6 grams of methamphetamine and guns in his vehicle.
The Drug Enforcement Administration (DEA), the Kansas City, Kansas Police Department, the Kansas Highway Patrol, and the Olathe Police Department investigated the case.
Assistant U.S. Attorneys Faiza Alhambra, Trent Krug, and Michelle McFarlane prosecuted the case.
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Long-Time Sex Trafficker Sentenced to More than 15 Years in PrisonRead the Press Release
NEWS RELEASE SUMMARY – March 23, 2023
SAN DIEGO – Kevin Lamont Beal of San Diego was sentenced in federal court today to 188 months in prison for knowingly coercing and enticing a teenage girl to engage in commercial sex acts.
According to court records, Beal has a long criminal past involving state convictions for pimping and pandering from 2012 through 2019.
A complaint was filed against Beal in April 2021, charging him with sex trafficking of underage girls and adult females. Beal pleaded guilty to federal charges in January 2022. In his plea agreement, Beal admitted that he transported underage girls and women and provided them to customers for commercial sex acts, which took place in California and elsewhere from December 2016 through August 2018. During this time, Beal used his cellular telephone to entice and coerce an underage girl (while she was 16 and 17 years old) for the purpose of having her engage in commercial sex acts and prostitution in San Diego County and elsewhere. As part of his efforts to entice and coerce this underage girl, Beal continued to communicate with her by text message and through social media for almost two years.
As part of his guilty plea, Beal also admitted that he recruited, transported, and provided another underage girl (while she was 16 and 17 years old) for the purpose of her to engage in commercial sex acts and prostitution from December 2016 through March 2017. As part of his human trafficking activities, Beal instructed this underage girl to meet with customers, commonly referred to as “johns,” by walking the street, commonly referred to as the “blade” (an area known for prostitution activities). Beal also caused online advertisements of the underage girl to be posted on various websites for customers solicit her for commercial sex acts.
Lastly, Beal admitted he recruited, enticed, transported, and provided an adult female for the purpose of her to engage in commercial sex acts and prostitution from April 2018 through May 2018. As part of his human trafficking activities, Beal also instructed the adult female to meet customers by walking the “blade” and by posting online advertisements offering her to customers for commercial sex acts. During this time, Beal used force against the adult female by striking her multiple times in the face causing serious bodily injuries. Beal admitted he used a combination of force and coercion to cause the adult female to engage in commercial sex acts.
“No city is immune from traffickers seeking to entice and coerce underage and adult victims to engage in sex trafficking,” said U.S. Attorney Randy Grossman. “Today’s sentence sends a strong message that we will continue to work together with our local, state, and federal partners to protect our community’s most vulnerable victims from these heinous crimes by prosecuting their traffickers.” Grossman thanked the prosecution team and members of the San Diego Human Trafficking Task Force for their excellent work on this case.
“Sex trafficking is an abhorrent crime with long-lasting consequences,” said San Diego FBI Special Agent in Charge Stacey Moy. “The FBI is committed to the unceasing pursuit of sex traffickers and to the rescue and recovery of the children and adults they victimize. These criminals can only be stopped with the collaboration of our law enforcement partners and the public."
Beal has been detained in custody since his arrest in April 2021.
At the sentencing hearing today, U.S. District Todd W. Robinson not only imposed the 15-year prison sentence, but also ordered Beal to serve a 10-year term of supervised release and to pay a $5,000 mandatory penalty assessment pursuant to the Justice for Victims of Trafficking Act. Beal will also be required to register as a sex offender under the Sex Offender Registration and Notification Act. Judge Robinson also ordered the criminal forfeiture of a blue, 2015 Maserati Ghibli, $2,420 in U.S. currency, and other personal luxury items by Gucci and Versace. These personal luxury items were previously ordered as restitution to one of Beal’s trafficking victims in May 2022.
DEFENDANT Case Numbers: 21CR1565-TWR
Kevin Lamont Beal Age: 29 San Diego, CA
SUMMARY OF CHARGES
Coercion and Enticement of a Minor, in violation of Title 18, United States Code, Section 2422(b)
Maximum Penalties: Life in prison; mandatory Sex Offender Registration; a maximum term of supervised release of life; a $5,000 mandatory penalty assessment pursuant to the Justice for Victims of Trafficking Act; mandatory restitution to the victims.
INVESTIGATING AGENCIES
San Diego Human Trafficking Task Force, which consists of:
- Federal Bureau of Investigation
- California Department of Justice
- California Department of Corrections & Rehabilitation – Parole
- California Highway Patrol
- ICE/Homeland Security Investigations
- National City Police Department
- San Diego City Attorney’s Office
- San Diego County District Attorney’s Office
- San Diego County Probation Department
- San Diego County Sheriff’s Department
- San Diego Police Department
- The United States Attorney’s Office, Southern District of California
Lincoln Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Dillen Lynn Marzolf, 30, of Lincoln, Nebraska was sentenced on March 23, 2023, by Senior United States District Judge John M. Gerrard to 15 years in federal prison for possession with the intent to distribute 50 grams or more of actual methamphetamine with a prior serious felony drug conviction. Following the prison term, Marzolf will serve 10 years on supervised release. There is no parole in the federal system.
In late September of 2021, a confidential informant, working with the Lincoln/Lancaster County Narcotics Task Force, bought a total of approximately 19 grams of methamphetamine from Marzolf at his apartment in Lincoln. On October 1, 2021, investigators obtained a search warrant for his apartment. Marzolf was stopped after leaving the apartment prior to the execution of the warrant and was found in possession of a baggie containing 99 blue pills marked “M30.” He also a had total of about 1 ¼ ounces of marijuana, more than $1,000 in cash and a digital scale. Marzolf was wearing an ankle monitor and said he was on parole. During the search of his apartment, four baggies of methamphetamine and numerous items of drug paraphernalia were found. Testing at the Nebraska State Patrol Crime Lab showed a total of approximately one pound of methamphetamine mixture. Two of the baggies were tested for purity and were found to contain at least 200 grams, (approximately seven ounces) of actual methamphetamine. Marzolf admitted the methamphetamine belonged to him. Marzolf said he had about five customers and had last sold methamphetamine earlier that day. He said the pills were fentanyl which he also intended to sell, and some of the cash came from drug sales.
At the time of his arrest, Marzolf was on parole from an Adams County conviction for distribution of marijuana. He was sentenced to 10 to 15 years in 2012 for that crime. His state parole was revoked following his arrest in the federal case. Marzolf’s federal sentence will run consecutive to (after) the remainder of his state sentence.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Key Deer Killer Sentenced in Federal CourtRead the Press Release
MIAMI – Wendy C. Kilheffer, 77, of Big Pine, Florida was sentenced today in Key West federal district court for violating the Endangered Species Act by shooting and killing a Key deer.
On November 16, 2022, several Florida Keys residents discovered a Key deer lying on the ground with its antlers entangled in rope. Kilheffer arrived on the scene and -- despite having zero veterinary training or related experience -- decided that the deer was in distress and would not survive. Kilheffer went to her vehicle, secured a high caliber handgun, shot the deer in the head at close range, and killed it. According to witnesses, the deer’s death was not immediate.
When law enforcement later questioned Kilheffer, she denied even being at the scene. Video surveillance and eyewitness statements refuted her lie.
Kilheffer pled guilty and now has a federal conviction. She must serve one year of probation, pay a $4,000 criminal fine, complete 100 hours of community service, and strictly abide by all laws and regulations involving human interaction with the Key deer.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and acting Resident Agent in Charge Robert Register of the U.S. Fish & Wildlife Service (USFWS), Office of Law Enforcement, Miami Field Office, made the announcement.
Congress enacted the Endangered Species Act (“ESA”) to conserve endangered and threatened species and the ecosystems upon which they depend. The term “endangered species” means any species, or part thereof, which is in danger of extinction throughout all or a significant portion of its range. Title 16, United States Code, Section 1532(6). The Florida Key deer is included within the list of designated endangered species, set forth in Title 50, Code of Federal Regulations, Section 17.21(c)(1).
U.S. Fish & Wildlife Service Miami investigated this case, with assistance from Florida Fish & Wildlife Conservation Commission (FWC) and the National Fish & Wildlife Service Forensics Laboratory in Ashland, Oregon. Assistant U.S. Attorney Thomas Watts-FitzGerald prosecuted this case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-10023.
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Kentucky Man Sentenced to Federal Prison for Attempted Sexual Exploitation of A MinorRead the Press Release
NASHVILLE – A Walton, Kentucky man was sentenced yesterday in U.S. District Court in Nashville to 15 years in federal prison for attempting to coerce and entice a 13-year-old girl to engage in unlawful sexual activity, announced U.S. Attorney Henry C. Leventis.
Thomas Niemeyer, 43, was also ordered to serve 10 years of supervised release at the conclusion of his prison sentence.
Niemeyer was arrested in July 2021 in Covington, Kentucky, after initiating conversations with who he believed to be a 13-year-old female through online dating applications. Niemeyer was actually communicating with an undercover FBI agent who was conducting online proactive child exploitation investigations on apps known to be used by minors and individuals such as Niemeyer, who have a sexual interest in children.
During the conversations, Niemeyer inquired about the 13-year-old’s sexual experiences, discussed engaging in sexual activity with her, requested nude photographs, sent sexually explicit photographs and videos, and mailed the undercover agent a sexual device.
A federal grand jury in Nashville indicted Niemeyer in August 2021 and he pleaded guilty in October 2022.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Monica R. Morrison.
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Kentucky Man Pleads Guilty to Sex Offense Against A MinorRead the Press Release
BECKLEY, W.Va. – Richard L. Barksdale, 69, of Goshen, Kentucky, pleaded guilty today to traveling in interstate commerce to engage in illicit sexual conduct with a minor.
According to court documents and statements made in court, on July 18, 2022, Barksdale contacted an individual he found on a fetish website he believed to be the single mother of two girls, ages 11 and 13, in Beckley, West Virginia. Barksdale admitted that he began communicating with the woman in phone calls and text messages, telling the woman that he wanted to engage in sexual activity with both of her daughters. Barksdale further admitted that he discussed methods to avoid the minor children getting pregnant, such as by putting them on birth control pills.
Barksdale arranged to rent a hotel room in Beckley where he would meet the two minor females to engage in sexual activity with both of them. He also arranged to bring gift cards and candy to make the minors more comfortable with him. On September 11, 2022, Barksdale traveled from his Kentucky residence to the Beckley hotel, where he was arrested.
Barksdale is scheduled to be sentenced on July 7, 2023, and faces a maximum penalty of 30 years in prison, five years and up to a lifetime of supervised release, and a $250,000 fine. Barksdale must also register as a sex offender.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) Violent Crimes Against Children Task Force.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Jennifer Rada Herrald is prosecuting the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-207.
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Justice Department Recognizes One-Year Anniversary of the PAVE Task ForceRead the Press Release
The Justice Department today is joining interagency partners across the Biden-Harris Administration in highlighting the progress made to ensure that every American who buys a home has the same opportunities to build generational wealth through homeownership. The White House released a roundup of highlights of what the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) accomplished over the last year.
The Department of Justice is an engaged member of the Task Force, working to reduce barriers to homeownership and erode the influence of bias on the entire U.S. economy.
“The Department of Justice celebrates PAVE’s many significant accomplishments over the past year to identify and address illegal discrimination in appraisals,” said Associate Attorney General Vanita Gupta. “For too long, appraisal bias has created yet another obstacle to homeownership and all the benefits homeownership offers, including financial stability and a path to developing intergenerational wealth. The department remains steadfast in its commitment to combat appraisal discrimination and to promote fair and accurate appraisals for all families, regardless of their race or ethnicity.”
One year ago today, the PAVE – led by U.S. Department of Housing and Urban Development (HUD) Secretary Marcia L. Fudge and White House Domestic Policy Advisor Ambassador Susan Rice – released the PAVE Action Plan, the most wide-ranging set of commitments ever announced to advance equity in the home appraisal process.
More information on the PAVE Task Force’s progress and work can be found in this fact sheet.
Jury Convicts Former Harrisonville Man of Social Security Fraud in Second TrialRead the Press Release
KANSAS CITY, Mo. – A former Harrisonville, Mo., man was convicted at trial today after his testimony in a previous trial for Social Security fraud resulted in an additional charge of perjury being filed against him.
Michael Sylvara, 37, who currently lives in Ozark, Mo., but lived in Harrisonville at the time of the offense, was found guilty of one count of Social Security fraud and one count of perjury.
Sylvara was originally indicted for Social Security fraud. Sylvara, who oversaw his disabled father’s Social Security benefits from 2016 to 2019, converted $42,369 of his father’s benefits to his own use. Sylvara testified in his own defense during a trial in October 2022, which resulted in a hung jury.
Sylvara was subsequently charged in a superseding indictment on Nov. 17, 2022. The superseding indictment contains the original charge of Social Security fraud and adds the perjury charge.
Sylvara was designated as the representative payee for his father, who is now deceased. As the representative payee, Sylvara was legally obligated to use all of the benefit payments to meet his father’s needs. Evidence introduced during the trial indicated that Sylvara instead converted some of his father’s benefit payments for his personal use to pay his utility, insurance and student loan bills, as well as his realtor association fees.
Sylvara also presented testimony that he knew was false while under oath during his first trial in October 2022. Sylvara attempted to justify multiple cash withdrawals (totaling over $23,000) he made from the representative payee account. He claimed under oath he had an agreement with Social Security that he could be paid $14 an hour for taking care of his father. Subsequent investigation showed there is no such agreement and there never has been.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for an hour and a half before returning guilty verdicts to U.S. District Judge Roseann Ketchmark, ending a trial that began Tuesday, March 21.
Under federal statutes, Sylvara is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Courtney R. Pratten and Special Assistant U.S. Attorney Bradley Cooper. It was investigated by the Social Security Administration.
Jackson Man Pleads Guilty to Assaulting a U.S. Postal Service EmployeeRead the Press Release
Jackson, Miss. – A Jackson man pled guilty to assaulting a federal employee, announced U.S. Attorney Darren J. LaMarca.
According to court documents and statements made in open court, Rodrick Jeems, 37, punched a U.S. Postal Service employee after asking the employee for five dollars. At the time, the employee was collecting mail from bins located outside of the Medgar Wiley Evers U.S. Post Office in Jackson. Jeems was apprehended by a Capitol Police Officer as he attempted to flee on foot.
Jeems is scheduled to be sentenced on June 30, 2023; he faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The United States Postal Inspection Service investigated the case.
Assistant U.S. Attorneys Bert Carraway and Adam Stuart prosecuted the case.
Illinois Man Sentenced to 188 Months in PrisonRead the Press Release
FORT WAYNE – Adam Henry, 33 years old, of Naperville, Illinois, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to possession with intent to distribute a controlled substance, announced United States Attorney Clifford D. Johnson.
Henry was sentenced to 188 months in prison to be followed by 6 years of supervised release.
According to documents in the case, on September 28, 2019, an Allen County Airport Authority police officer observed Henry driving erratically through the parking lot of the Fort Wayne International Airport. He was stopped as he left the airport and officers discovered that Henry was driving an airport rental car but had no driver’s license. A subsequent search of car Henry had rented revealed a handgun under the driver’s seat and several baggies of different pills/drugs to include Xanax and 53.9 grams of cocaine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with the assistance of the Fort Wayne Police Department, the Fort Wayne Allen County Airport Authority – Public Safety Department, and the Indiana State Police. The case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
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Idaho Springs Man Pleads Guilty to Executing Million Dollar PPP Fraud SchemeRead the Press Release
Denver - The United States Attorney’s Office for the District of Colorado announces Edward Baker Harrington, age 59, of Idaho Springs, pleaded guilty today to wire fraud and money laundering.
According to the plea agreement, from April 2020 through September 2021, the defendant submitted a number of fraudulent Paycheck Protection Program (PPP) applications to seven banks and one lender on behalf of business entities that he purportedly controlled. These PPP applications contained a number of false and fraudulent certifications and representations. The defendant obtained more than $1,000,000 in PPP loans as a result of the scheme. He falsely represented that all PPP funds would be used to pay eligible business expenses, when, in fact, the proceeds were used for his personal benefit to purchase goods and property, including real estate and vehicles. The defendant also sought loan forgiveness for PPP loans by submitting loan forgiveness applications in which he made false representations and certifications regarding his businesses and his compliance with the PPP program rules, including rules related to the eligible uses of PPP loan proceeds.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted in March 2020 and was designed to provide emergency financial assistance to Americans dealing with the economic impact of the COVID-19 pandemic. The CARES Act created PPP, a program administered by the Small Business Administration that provided loans to small businesses to retain workers, maintain payroll, and certain other expenses consistent with PPP rules.
A wire fraud conviction carries with it a prison term of up to 20 years and a fine of not more than $250,000. A money laundering conviction carries with it a prison term of up to 10 years and a fine of not more than $250,000.
This case is being investigated by Internal Revenue Service – Criminal Investigation. This case is being prosecuted by Assistant United States Attorneys Nicole Cassidy and Martha Paluch.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Case Number: 22-cr-00324
Houston resident sent to prison for soliciting sexually-explicit videos of minorsRead the Press Release
HOUSTON - A 25-year-old Houston resident has been ordered to federal prison after his convictions of production and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Austin Gray Roberson pleaded guilty Jan. 27, 2022, to three counts of sexual exploitation of a minor and one count of possession of child pornography.
Today, U.S. District Judge Kenneth M. Hoyt sentenced him to 180 months on each of the sexual exploitation of a minor counts and 120 months for possessing child pornography. They will run concurrently for a total 180-month-term of imprisonment. The court heard additional evidence as to how Roberson had reached out to 18 different minor males requesting them to send naked photos and videos of themselves to him. In imposing the sentence, Judge Hoyt also considered how Roberson’s conduct affected one of those minors through his victim impact statement.
Roberson was furthered ordered to pay restitution to the victims and will serve 15 years on supervised release following the completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to the internet. He will also be required to register as a sex offender.
“As a parent myself, it scares me to know how easy it is for sexual predators to misrepresent themselves and target children,” said Hamdani. “In today’s online world, we must remember to remain vigilant to help protect our kids. I hope this sentence makes these criminals think twice before trying to solicit our most vulnerable for their sick desires.”
In June 2018, authorities in California had executed a search warrant at a residence as a result of a child pornography investigation, at which time they seized several electronic devices. Forensic analysis revealed that individual had been communicating with others on the social media application Kik for the purpose of obtaining and trading child pornography. The investigation revealed Roberson was one of those individuals.
Roberson ultimately admitted he would portray himself on Kik as a minor female named “Kayla” that he would use to target minor males between 12 and 17 years of age. Roberson sent nude selfies and videos of a suspected minor female masturbating in an attempt to get those minor males to reciprocate.
Authorities ultimately discovered 18 minor victims from whom Roberson solicited child pornography.
Law enforcement also conducted a forensic exam on Roberson’s cellphone and found 3,765 images and 746 videos of young children engaged in sexually explicit conduct. The images and videos include children under the age of 12, bondage, bestiality and acts of violence such as the penetration of the victims.
Roberson was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI conducted the investigation.
Assistant U.S. Attorney Kimberly Ann Leo is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Greenville Man Sentenced to Prison for Illegal Possession of a GunRead the Press Release
Oxford, Mississippi – A Greenville man was sentenced yesterday to 40 months in prison for possession of a firearm by a convicted felon.
According to court documents, Justin Simmons, 23, of Greenville, Mississippi, previously pled guilty to possession of a firearm by a convicted felon. He was sentenced by Chief U.S. District Judge Debra Brown on Wednesday to serve 40 months in prison, followed by 3 years of supervised release.
U.S. Attorney Clay Joyner of the Northern District of Mississippi and Greenville Police Chief Marcus Turner made the announcement.
This case was investigated by the Greenville Police Department. Assistant U.S. Attorney Robert Mims prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Grand Island Man Sentenced for Firearm and Drug Trafficking CrimesRead the Press Release
United States Attorney Steven Russell announced that Mark A. Barraza Saenz, 22, of Grand Island, Nebraska, was sentenced today in federal court in Lincoln, Nebraska, for possessing with intent to distribute 50 grams or more of methamphetamine and possessing a firearm in furtherance of that drug trafficking crime. Senior United States District Judge John M. Gerrard sentenced Barraza Saenz to 72 months’ imprisonment on the drug charge and a consecutive 60 months’ imprisonment on the firearm charge, for a total sentence of 132 months. There is no parole in the federal system. After his release from prison, he will begin a five-year term of supervised release.
On October 12, 2021, in the early morning hours, a Merrick County Sheriff’s Office deputy observed a silver sedan heading east bound in Central City, Nebraska. Based on driving infractions, the deputy initiated a traffic stop. Two males were in the sedan, including Barraza Saenz in the front passenger seat. Barraza Saenz admitted to smoking marijuana approximately an hour earlier and consented to the deputy searching him. While searching Barraza Saenz, the deputy found two bundles of methamphetamine. The deputy then searched the trunk of the sedan and found a bag containing methamphetamine. Under the bag was an American Tactical M1911 Military .45 caliber semi-automatic pistol with the magazine containing one bullet next to it. The methamphetamine from Barraza Saenz’s person and the vehicle was laboratory tested and confirmed to be approximately 209 grams of methamphetamine.
This case was investigated by the Federal Bureau of Investigation and Merrick County Sheriff’s Office.
Government Contractor Pays $742,500 to Settle False Claims Act Allegations in Obtaining Contracts Reserved for Eligible Small BusinessesRead the Press Release
ALEXANDRIA, Va. – Advanced Systems Technology & Management, Inc. (AdSTM), a government contractor specializing in science and technology-based engineering and consulting located in McLean, and AdSTM’s former CEO, Bing Ran, also of McLean, agreed to pay $742,500 to settle allegations that AdSTM used alter ego companies to allow AdSTM to obtain contracts “set aside” for contractors participating in the Small Business Administration’s (SBA’s) 8(a) Program, after AdSTM was no longer eligible under the 8(a) Program.
“It is vital to the purpose of the SBA’s programs that government contracts set aside for disadvantaged small businesses are issued only to those companies that are eligible. EDVA encourages anyone to come forward with information about instances where the small business set aside program has been victimized,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia.
The settlement arises in connection with a lawsuit filed by a former AdSTM employee under the whistleblower provision of the False Claims Act. United States ex rel. Guan v. AdSTM, et al. The settlement resolves allegations that AdSTM and Ran conspired to fraudulently induce federal agencies to award multiple small business set-aside contracts to Qi Tech and Foredata for which they were not eligible because they were controlled by AdSTM and Ran after AdSTM was no longer eligible under the 8(a) program because of its size. Among other criteria, to be eligible to participate in the SBA’s 8(a) Program, a company must be (1) a small business, (2) at least 51% owned by U.S. citizens who are socially and economically disadvantaged, and (3) the management and daily operations of the company must be controlled by one or more individuals that are both socially and economically disadvantaged.
“We are very pleased with today’s announcement,” said Special Agent in Charge L. Scott Moreland of the Department of the Army Criminal Investigation Division’s Major Procurement Fraud Field Office. “This settlement, which is the result of great cooperative efforts among our law enforcement partners, is yet another example that misuse of the government contracting process will not go unchecked.”
A whistleblower suit, or qui tam action under the False Claims Act, is commenced by an individual, known as a “relator,” filing a complaint under seal in the U.S. District Court, and providing a copy of the complaint and other evidence to the U.S. Attorney’s Office. The United States then has an opportunity to investigate the claims. The False Claims Act provides whistleblowers with a share of the government’s recovery. The relator here, a former AdSTM employee, will receive a share of the False Claims Act settlement.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the Department of Defense Office of Inspector General, Defense Criminal Investigative Service’s Mid-Atlantic Field Office, the Nuclear Regulatory Commission Office of the Inspector General, U.S. Army Criminal Investigation Division Major Procurement Fraud Field Office, and the Defense Contract Audit Agency.
The matter was handled by Assistant U.S. Attorney Kristin Starr.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information from the civil lawsuit can be accessed on PACER by searching for No. 1:18-cv-795 (E.D. Va., Alexandria Div.).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Ghanaian National Sentenced to Prison for Role in Romance Fraud SchemeRead the Press Release
HUNTINGTON, W.Va. – Abdul Inusah, 32, of Ghana, was sentenced today to two years in prison, to be followed by three years of supervised release, for his role in a Huntington-based scheme that defrauded individuals in multiple states through the use of false online personas. Inusah was also ordered to pay $128,000 in restitution.
After three days of trial, a federal jury found that Inusah was part of a conspiracy that targeted victims using false personas via email, text messaging, online dating websites and social media platforms. From at least January 2018 through at least December 2019, the scheme participants sought to induce victims into believing they were in a romantic relationship, friendship, or business relationship with the various false personas. The victims were persuaded to send money for a variety of false and fraudulent reasons for the benefit of the false personas.
One false persona, “Miarama,” was used to induce an Alabama resident into providing $106,000 via wire transfers and cashier’s checks. The amount included $48,000 to pay overdue taxes on a nonexistent gold inheritance in Ghana and $21,000 wired to Bitsav Supply LLC, a shell company set up by Inusah. Another false persona, “Grace,” persuaded a Washington resident to wire funds so “Grace” could maintain her South African cocoa plantation and move to the United States to marry the victim. Other victims of the false personas included residents of Ohio and Florida.
The federal jury found Inusah guilty of receipt of stolen money, conspiracy to commit money laundering, and two counts of wire fraud on August 12, 2022.
“Perhaps more than others involved, Abdul Inusah understood the scope of the criminal conspiracy and that it was exploiting innocent and often vulnerable victims,” said United States Attorney Will Thompson. “The defendant even recruited others to help commit this fraud, while taking steps to conceal his own involvement.”
U.S. Attorney Thompson made the announcement and commended the investigative work of the United States Secret Service, the United States Postal Inspection Service, the Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG), the West Virginia State Police and the South Charleston Police Department.
“I also commend Assistant United States Attorney Kathleen Robeson and former Assistant United States Attorney R. Gregory McVey and the trial team for prosecuting the case and securing the guilty verdicts,” Thompson said.
United States District Judge Robert C. Chambers imposed the sentence.
The public is encouraged to report potential online fraud activity or scams at https://www.ic3.gov.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10 a.m. to 6 p.m. Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-70.
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Former owner of Savannah restaurant sentenced to prison, ordered to pay more than $400,000 restitution in tax caseRead the Press Release
SAVANNAH, GA: The former owner of a Savannah pizza franchise has been sentenced to federal prison and ordered to pay restitution for failing to remit more than $400,000 in payroll taxes.
Melissa Metts Johnson, 48, of Statesboro, Ga., was sentenced to 18 months in prison after pleading guilty to Failure to Account for and Pay Over Employment Taxes, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker ordered Johnson to pay restitution of $428,203.48 and to serve one year of supervised release upon completion of her prison term.
There is no parole in the federal system.
“For several years, Melissa Johnson withheld taxes from her employees’ paychecks and kept that money for her own enrichment rather than remit it to the IRS,” said U.S. Attorney Steinberg. “She’s now being held accountable for stealing from the U.S. Treasury at the expense of other law-abiding taxpayers.”
As described in court documents and testimony, Johnson was the sole owner of LHMS Inc., which operated a franchise of the Mellow Mushroom pizza restaurant in Savannah. In her guilty plea, Johnson acknowledged that her company withheld payments for federal income taxes, Medicare, and Social Security from employees’ paychecks from 2015 through 2019, but then failed to pay all of those taxes to the IRS.
“Altogether,” the plea agreement says, the “LHMS, Inc. to failed to account for and pay over $428,203.48 in payroll taxes.”
“Melissa Johnson’s employees were dedicated over the years, keeping her business running, and she repaid them by stealing their employment taxes,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Employers have a responsibility to their employees to pay over federal income taxes withheld from their payroll checks to the IRS. IRS Criminal Investigation will continue to investigate dishonest employers who evade their responsibilities and abuse their employees’ trust.”
The case is being investigated by IRS-Criminal Investigation, and prosecuted for the United States by Assistant U.S. Attorney Jennifer J. Kirkland.
Former Puerto Rico Mayor Convicted of Accepting BribesRead the Press Release
SAN JUAN, Puerto Rico –A federal jury convicted a former mayor of Guaynabo, Puerto Rico, yesterday for engaging in a bribery scheme.
According to court documents and evidence presented at trial, Ángel Pérez-Otero, 52, was involved in a bribery conspiracy in which, from approximately late 2019 through May 2021, he accepted thousands of dollars in cash bribes on a regular basis from the owner of a construction company. In exchange for these payments, Pérez-Otero agreed to obtain and retain contracts for the company and ensured that its invoices were promptly paid.
Pérez-Otero was convicted of conspiracy, federal program bribery, and extortion. He is scheduled to be sentenced on Aug. 8 and faces a maximum penalty of 20 years in prison on the extortion charge and 10 years in prison on the bribery charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and Special Agent in Charge Joseph González of the FBI San Juan Field Office made the announcement.
The FBI San Juan Field Office investigated the case.
Trial Attorney Nicholas Cannon of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Myriam Fernández-González for the District of Puerto Rico are prosecuting the case. Trial Attorney Ryan R. Crosswell of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Scott H. Anderson for the District of Puerto Rico assisted in the investigation.
This case is part of the Justice Department’s ongoing efforts to combat public corruption by municipal officials in Puerto Rico. In addition to the above matter, the Public Integrity Section and the U.S. Attorney’s Office for the District of Puerto Rico have recently obtained convictions against other former public officials and contractors in the District of Puerto Rico for soliciting and accepting bribes related to municipal contracts.
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Former Puerto Rico Mayor Convicted of Accepting BribesRead the Press Release
A federal jury convicted a former mayor of Guaynabo, Puerto Rico, yesterday for engaging in a bribery scheme.
According to court documents and evidence presented at trial, Ángel Pérez-Otero, 52, was involved in a bribery conspiracy in which, from approximately late 2019 through May 2021, he accepted thousands of dollars in cash bribes on a regular basis from the owner of a construction company. In exchange for these payments, Pérez-Otero agreed to obtain and retain contracts for the company and ensured that its invoices were promptly paid.
Pérez-Otero was convicted of conspiracy, federal program bribery, and extortion. He is scheduled to be sentenced on Aug. 8 and faces a maximum penalty of 20 years in prison on the extortion charge and 10 years in prison on the bribery charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and Special Agent in Charge Joseph González of the FBI San Juan Field Office made the announcement.
The FBI San Juan Field Office investigated the case.
Trial Attorney Nicholas Cannon of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Myriam Fernández-González for the District of Puerto Rico are prosecuting the case. Trial Attorney Ryan R. Crosswell of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Scott H. Anderson for the District of Puerto Rico assisted in the investigation.
This case is part of the Justice Department’s ongoing efforts to combat public corruption by municipal officials in Puerto Rico. In addition to the above matter, the Public Integrity Section and the U.S. Attorney’s Office for the District of Puerto Rico have recently obtained convictions against other former public officials and contractors in the District of Puerto Rico for soliciting and accepting bribes related to municipal contracts.
Former Oklahoma Jail Officer Pleads Guilty to Civil Rights ViolationRead the Press Release
A former detention officer with the McClain County Jail in Purcell, Oklahoma, pleaded guilty to being deliberately indifferent to a substantial risk of serious harm to a pretrial detainee’s physical safety, thereby violating the pretrial detainee’s constitutional civil rights.
According to court documents and admissions, on April 21, 2019, Kyle Tecumseh, 25, was involved with moving a pretrial detainee, B.B., into a jail cell with a senior United Aryan Brotherhood (UAB) gang member whom Tecumseh knew was angry at and posed a danger to B.B. Thereafter, Tecumseh allowed another detention officer to move several more UAB gang members into the cell with B.B. and the senior UAB gang member. The UAB gang members then physically attacked B.B., as Tecumseh knew was likely to occur.
“As a detention officer, this defendant had a duty to ensure that the civil rights of pretrial detainees under his care and custody were protected,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Instead, the defendant abused his power and authority by allowing a pretrial detainee to be put in a situation where he faced a substantial risk of physical harm. The defendant is now being held accountable for his actions, and the Justice Department will continue to ensure that corrections officials are held responsible when they violate the civil rights of detainees and inmates under their care, custody and control.”
“Criminal conduct by any detention staff member erodes public trust and unfairly compromises the reputation of all corrections officials who honorably serve,” said U.S. Attorney Robert J. Troester for the Western District of Oklahoma. “Today’s guilty plea demonstrates our continuing commitment to protect all Oklahomans, including those in custody. I commend the prosecutors and law enforcement officials for their efforts here.”
“There is never a reason for a detention officer to resort to violating an inmate’s civil rights. The FBI understands that working in a correctional institution is stressful and dangerous work, and the vast majority of the men and women working in these institutions do their jobs honorably on a daily basis,” said Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office. “When an officer violates the rights of detainees in their care, it erodes public trust in these important positions and damages the reputation of the hard-working officers who continue to serve.”
Tecumseh faces a maximum sentence of 12 months imprisonment and a $100,000 fine. In addition, according to court documents, Tecumseh agreed to never again seek employment in any law enforcement capacity and to pay the victim any owed restitution. A sentencing date will be set by the court in approximately 90 days.
The Oklahoma City FBI Field Office investigated the case.
Assistant U.S. Attorney Julia E. Barry for the Western District of Oklahoma and Trial Attorney Laura Gilson of the Civil Rights Division’s Criminal Section are prosecuting the case.
Former Oklahoma Jail Officer Pleads Guilty to Civil Rights ViolationRead the Press Release
OKLAHOMA CITY – A former detention officer with the McClain County Jail in Purcell, Oklahoma, pleaded guilty to being deliberately indifferent to a substantial risk of serious harm to a pretrial detainee’s physical safety, thereby violating the pretrial detainee’s constitutional civil rights.
According to court documents and admissions, on April 21, 2019, Kyle Tecumseh, 25, was involved with moving a pretrial detainee, B.B., into a jail cell with a senior United Aryan Brotherhood (UAB) gang member whom Tecumseh knew was angry at and posed a danger to B.B. Thereafter, Tecumseh allowed another detention officer to move several more UAB gang members into the cell with B.B. and the senior UAB gang member. The UAB gang members then physically attacked B.B., as Tecumseh knew was likely to occur.
"As a detention officer, this defendant had a duty to ensure that the civil rights of pretrial detainees under his care and custody were protected," said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. "Instead, the defendant abused his power and authority by allowing a pre-trial detainee to be put in a situation where he faced a substantial risk of physical harm. The defendant is now being held accountable for his actions, and the Justice Department will continue to ensure that corrections officials are held responsible when they violate the civil rights of detainees and inmates under their care, custody and control."
"Criminal conduct by any detention staff member erodes public trust and unfairly compromises the reputation of all corrections officials who honorably serve," said U.S. Attorney Robert J. Troester for the Western District of Oklahoma. "Today’s guilty plea demonstrates our continuing commitment to protect all Oklahomans, including those in custody. I commend the prosecutors and law enforcement officials for their efforts here."
"There is never a reason for a detention officer to resort to violating an inmate’s civil rights. The FBI understands that working in a correctional institution is stressful and dangerous work, and the vast majority of the men and women working in these institutions do their jobs honorably on a daily basis," said Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office. "When an officer violates the rights of detainees in their care, it erodes public trust in these important positions and damages the reputation of the hard-working officers who continue to serve."
Tecumseh faces a maximum sentence of 12 months imprisonment and a $100,000 fine. In addition, according to court documents, Tecumseh agreed to never again seek employment in any law enforcement capacity and to pay the victim any owed restitution. A sentencing will be set by the court in approximately 90 days.
The Oklahoma City FBI Field Office investigated the case. Assistant U.S. Attorney Julia E. Barry for the Western District of Oklahoma and Trial Attorney Laura Gilson of the Civil Rights Division’s Criminal Section are prosecuting the case.
Reference is made to public filings for additional information.
Former Florida Resident Charged in $101 Million Health Care Kickback SchemeRead the Press Release
NEWARK, N.J. – A former Florida resident living in Puerto Rico has been charged for his role in a $101 million durable medical equipment kickback scheme, Attorney for the United States Vikas Khanna announced today.
Raheel Naviwala, 34, of San Juan, Puerto Rico, is charged by complaint with conspiracy to violate the federal Anti-Kickback Statute. Naviwala had his initial appearance today before U.S. Magistrate Judge Patrick Hunt in Ft. Lauderdale, Florida, federal court and was released on $150,000 bond.
According to documents filed in the case and statements made in court:
Naviwala and his conspirators owned and operated multiple call centers through which they obtained doctors’ orders for durable medical equipment (DME), namely orthotic braces, for Medicare beneficiaries, without regard to medical necessity. Naviwala and his conspirators obtained the DME orders through the use of marketing call centers and telemedicine companies. Naviwala and his conspirators provided these orders in exchange for bribes from certain companies that provided the braces to Medicare beneficiaries. Naviwala and his conspirators caused losses to Medicare of $101 million.
The charge of conspiracy to violate the federal Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark and Acting Special Agent in Charge is Maged Behnam in Miami, Florida; the Department of Health and Human Services-Office of Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorneys Sean M. Sherman and Ray Mateo of the Opioid Abuse Prevention & Enforcement Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
naviwala.complaint.pdfFormer Financial Representative Is Sentenced to Seven Years in Prison for $1.1 Million Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Sampson Pearson, 45, of Charlotte, was sentenced today to seven years in prison followed by two years of supervised release for defrauding his clients of more than a million dollars, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. A federal jury previously convicted Pearson of wire fraud, tax fraud, and aggravated identity theft.
Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, and Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), join U.S. Attorney King in making today’s announcement.
According to filed court documents, trial evidence, and witness testimony, from 2004 to 2016, Pearson was a representative for a financial services firm identified in court documents as Company A. In that capacity, Pearson offered and sold life insurance products and annuities as an independent contractor for Company A in Charlotte. As trial evidence established, Pearson used his position to defraud at least 10 victims and Company A of more than $1.1 million through a fraudulent loan and disbursement scheme. Pearson executed the scheme by submitting falsified loan applications and requests for disbursements in the victims’ names without their knowledge and approval. Company A authorized the loans and disbursements based on the fraudulent documents submitted by Pearson. Pearson also directed Company A to deposit the fraudulently-obtained funds into an account controlled by the defendant. Pearson used the funds to pay for personal expenses and to fund his lifestyle. Evidence at trial showed that more than half of all the money the defendant had deposited into his bank account between 2011 and 2016 was money he stole from his victims. Evidence also established that Pearson made Ponzi-type payments to some of his victims to further perpetuate his fraud.
According to court records, Pearson also committed tax fraud for tax years 2013 through 2016, by filing fraudulent tax returns with the IRS that did not reflect the additional personal income.
At today’s sentencing hearing, U.S. District Judge Max O. Cogburn Jr. noted that “deterrence is very important in financial cases.”
In making today’s announcement U.S. Attorney King thanked USPIS and IRS-CI for their investigation of the case.
Assistant U.S. Attorneys Cassye Cole, Graham Billings and Maria Vento handled the prosecution.
Former City Honors Teacher Sentenced to Serve 14 Years in Prison on Child Pornography ChargesRead the Press Release
BUFFALO, N.Y. — U.S. Attorney Trini E. Ross announced today that Peter Hingston, 63, of Amherst, NY, who was convicted of two counts of possession of child pornography, was sentenced to serve 168 months in prison and 15 years supervised release by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that on June 17, 2019, Buffalo Police Officers were called to City Honors School, where Hingston worked as a middle school technology teacher, based on allegations that Hingston was taking inappropriate photographs of female students with a GoPro camera. Officers secured the GoPro digital camera from Hingston. A subsequent search of the camera resulted in the recovery of child pornography videos produced by Hingston, involving minor victims who were under his custody, care, and supervisory control when the sexually explicit images were produced. Investigators also searched an external hard drive possessed by Hingston, which contained additional videos of child pornography produced by Hingston, involving different minor victims, who were also was under his custody, care, and supervisory control.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Buffalo Office, under the direction of Special Agent-in-Charge Matthew Miraglia, the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia, and the Town of Tonawanda Police Department, under the direction of Chief James P. Stauffiger.
Florida Man Sentenced to Six Years for Transporting Narcotics on a Memphis Bound AirplaneRead the Press Release
Memphis, TN – Rashid James-Wooten, 29, formerly of Florida, has been sentenced to 72 months in
federal prison for possession with intent to distribute fentanyl. United States Attorney Kevin R.
Ritz announced the sentence today.According to United States Attorney Ritz and information presented in court, on September 8, 2021,
detectives with the Memphis Police Department’s Organized Crime Unit received information that
narcotics were possibly on a flight from Los Angeles to Memphis. Investigators used a drug-sniffing
dog, which gave a positive alert on a suitcase that was owned by Rashid James-Wooten.A search of the suitcase revealed 996 grams of fentanyl, 4,472 grams of
methamphetamine, and 1,220 grams of marijuana. James-Wooten was placed into custody after
inquiring at baggage claim about his lost luggage.James-Wooten pled guilty to the offense.
United States District Judge John T. Fowlkes Jr., sentenced James-Wooten to six years’
imprisonment, to be followed by three years of supervised release. There is no parole in the
federal system.This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task
Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug
trafficking organizations and organized criminal enterprises, targeting national and regional level
drug trafficking organizations, and coordinating the necessary law enforcement entities and
resources to disrupt or dismantle the targeted criminal organization and seize their assets.This case was investigated by the Memphis Police Department Organized Crime Unit, the Drug
Enforcement Administration, Memphis Airport Police, and United States Customs
and Border Protection.United States Attorney Kevin Ritz thanked Assistant United States Attorney Michelle Kimbril-Parks,
who prosecuted this case, as well as the law enforcement partners who investigated the case.###
For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @WDTNNews on Twitter for office news and updates.Financial Advisor, Financial Planner, NBA Agent, and Previously Convicted Fraudster Charged with Schemes to Defraud Professional Basketball PlayersRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a six-count Indictment charging DARRYL COHEN, BRIAN GILDER, CHARLES BRISCOE, and CALVIN DARDEN, JR. in connection with two schemes to defraud professional basketball players. COHEN and GILDER were arrested this morning in, respectively, Chatsworth, California, and North Ridge, California, and will be presented later today in the United States District Court for the Central District of California. BRISCOE was arrested this morning in Katy, Texas, and will be presented later today in the United States District Court for the Southern District of Texas. DARDEN, JR. was arrested this morning in Atlanta, Georgia, and will be presented later today in the United States District Court for the Northern District of Georgia.
U.S. Attorney Damian Williams said: “As alleged in the indictment, these defendants believed that defrauding their professional athlete clients of millions of dollars would be a layup. That was a huge mistake, and they now face serious criminal charges for their alleged crimes.”
FBI Assistant Director Michael J. Driscoll said: “As alleged, the defendants engaged in schemes to defraud four professional basketball players of more than $13 million. Today’s actions should serve as an example to others who engage in criminal activity to serve their own greedy financial desires at the expense of others – the FBI is committed to bringing you to justice.”
As alleged in the Indictment:[1]
COHEN and GILDER
From at least in or about 2017 through in or about 2020, COHEN, a registered investment adviser, orchestrated a scheme to defraud three different professional basketball player clients (“Athlete-1,” “Athlete-2,” and “Athlete-3,” respectively) of a total of over $5 million by taking advantage of his advisory and fiduciary relationships with those clients. COHEN conspired with BRIAN GILDER, an independent financial planner whom COHEN encouraged his clients to work with and who assisted in tax preparation for Athletes-1, -2, and -3.
First, COHEN and GILDER fraudulently induced Athletes-1, -2, and -3 to purchase viatical life insurance policies at massive markups. COHEN and GILDER did not disclose that GILDER had arranged for a purported law firm (“Law Firm-1”) that he controlled to purchase the polices and then to sell them to the athletes at markups of 222%, 310%, and 244%, respectively. Indeed, Law Firm-1 made approximately $4.5 million in profit from the sale of the policies to COHEN and GILDER’s athlete clients. COHEN and GILDER used a substantial portion of these illicit proceeds to pay their own personal expenses. In particular: (i) GILDER used approximately $257,479 of the funds to pay off a mortgage he owed; (ii) COHEN used approximately $178,462 of the funds to renovate his home and to perform work on his pool; (iii) COHEN used approximately $67,500 of the funds to pay off his personal credit card bill; and (iv) COHEN transferred approximately $200,000 of the funds to an individual with whom he was in a romantic relationship.
Second, COHEN directed that $500,000 be transferred from the accounts of Athletes-2 and -3 as purported donations to a non-profit organization. COHEN then used approximately $238,000 of the funds purportedly donated to the non-profit to build athletic training facilities in the backyard of his home. Athletes-2 and -3 never, in fact, authorized any transfers of their funds to the non-profit organization. When Athlete-2 confronted COHEN about the donations, COHEN told Athlete-2 in a text message, in substance and in part, that Athlete-2’s money had “[h]elped a lot of future prospects and a lot of underprivileged kids.” COHEN did not disclose to Athlete-2 that a substantial portion of Athlete-2’s donations had, in fact, been used to build an athletic training facility in COHEN’s backyard.
Third, COHEN and GILDER used a sports agency and another law firm to channel approximately $328,125 of Athlete-2’s money to repay a former professional baseball player (“Athlete-4”), who was a disgruntled client of COHEN’s. Athlete-4 had expressed concern to COHEN about investments and loans that COHEN made on Athlete‑4’s behalf and demanded to be repaid. On or about February 19, 2020, in the midst of making the payments of Athlete-2’s money to Athlete-4, COHEN messaged GILDER, “We gotta send [Athlete-4] more to get rid of him.” Athlete-2 did not authorize the use of funds from his account to repay debts owed by COHEN to Athlete-4.
BRISCOE and DARDEN, JR.
BRISCOE and DARDEN, JR. also defrauded professional basketball players. BRISCOE was an NBA agent, and DARDEN, JR. had previously pled guilty to wire fraud in the Southern District of New York.
BRISCOE served as the sports agent of a professional basketball player (“Athlete-5”). Athlete-5 began discussing the possibility of purchasing a professional women’s basketball team (“Team-1”), and BRISCOE introduced Athlete-5 to DARDEN, JR. Because Athlete-5 was not permitted to purchase Team-1 as an active professional basketball league player, BRISCOE, DARDEN, JR., and a relative of DARDEN, JR., who serves or has served on the boards of multiple public companies (“Relative-1”), discussed with Athlete-5 an arrangement in which Athlete-5 would indirectly purchase Team-1 through a company (“Company-1”) purportedly controlled by Relative-1. BRISCOE provided Athlete-5 with a slide deck outlining a “vision plan” for the purchase of Team-1 by Company-1. The “vision plan” claimed, among other things, that Company-1 was led by Relative-1 and was advised by a board including several prominent individuals in sports, entertainment, and corporate America. In truth and in fact, and as BRISCOE and DARDEN, JR. well knew, at least two of those individuals never served as advisors to Company-1.
Between in or about November 2020 and in or about December 2020, Athlete‑5 caused $7 million to be transferred to a bank account controlled by DARDEN, JR. Athlete-5 understood that these payments were in order for Athlete-5 to purchase and become full owner of Team-1. In truth and in fact, none of the money Athlete-5 sent went toward the purchase of Team-1, and Athete-5 did not become an owner of Team-1. Instead, from approximately November 2020 until approximately December 2021, DARDEN, JR. transferred more than $1 million of the funds to BRISCOE. In addition, DARDEN, JR. retained a substantial portion of the funds for himself and his relatives, sending more than $500,000 to a relative and more than $400,000 to a cryptocurrency exchange for his benefit. DARDEN, JR. also used some of the funds to pay for luxury goods for himself, including approximately $880,000 to luxury car companies, more than $300,000 to art galleries, and more than $100,000 to purchase a piano, among other things. DARDEN, JR. also spent in excess of approximately $1 million in connection with purchasing and making improvements to a residence, including, among other things, the addition of a koi pond.
BRISCOE and DARDEN, JR. also worked together to defraud Athlete-2. BRISCOE, in consultation with COHEN and GILDER, was purportedly building a new sports agency (“Agency-1”) funded by Athlete-2. BRISCOE convinced Athlete-2 that BRISCOE had signed, through Agency-1, a highly touted athlete preparing for a professional basketball draft (“Athlete-6”). In fact, Athlete-6 had not signed with BRISCOE or Agency-1. Rather, BRISCOE forged the signature of Athlete-6 and Athlete-6’s mother on a player-agent contract and sent that forged contract to Athlete-2. BRISCOE then directed Athlete-2 to transfer $1 million to BRISCOE as a “loan” to Athlete-6 while Athlete-6 prepared for the draft. In fact, Athlete-6 never had any conversations with BRISCOE or DARDEN, JR. about signing with BRISCOE or about receiving a $1 million loan, and Athlete-6 never received any part of the $1 million loan. Instead, BRISCOE used approximately $306,642 of the funds transferred by Athlete-2 to pay off a debt that BRISCOE had personally incurred and also transferred approximately $544,000 to a bank account controlled by DARDEN, JR.
* * *
COHEN, 49, of Chatsworth, California, and Las Vegas, Nevada, GILDER, 49, of North Ridge, California, BRISCOE, 35, of Katy, Texas, and DARDEN, JR. 49, of Atlanta, Georgia, are each charged with one count of conspiracy to commit wire fraud and one count of wire fraud. Each count carries a maximum sentence of 20 years in prison. COHEN is also charged with one count of investment advisor fraud, which carries a maximum sentence of five years in prison, and BRISCOE is also charged with one count of aggravated identity theft, which carries a mandatory prison term of two years.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding work of the FBI. Mr. Williams also thanked the United States Attorney’s Offices for the Central District of California, the Northern District of Georgia, and the Southern District of Texas for their assistance in the investigation. Mr. Williams further thanked the U.S. Securities and Exchange Commission, which today filed a parallel civil action against COHEN, for its assistance and cooperation in this investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Katherine Reilly and Kevin Mead are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described therein should be treated as an allegation.
Federal Jury Convicts Charleston Man of Fentanyl and Gun CrimesRead the Press Release
CHARLESTON, W.Va. – After three days of trial, a federal jury convicted Andre Dewayne Williamson, also known as “A3,” 35, of Charleston, of five counts of distribution of fentanyl and one count of possession of a firearm in furtherance of a drug trafficking crime.
Evidence at trial proved that Williamson sold quantities of fentanyl to a confidential informant on five occasions in Charleston between July 5, 2022, and July 25, 2022. Williamson possessed a pistol in furtherance of the July 5, 2022, drug transaction.
Williamson is scheduled to be sentenced on June 28, 2023, and faces a mandatory minimum of five years and up to life in prison.
“This defendant has a troubling criminal history involving violence and drugs, and the crimes in this case show that he continued to pose a threat to the community,” said United States Attorney Will Thompson. “I commend the law enforcement agencies that investigated and assisted in this case. I also commend Assistant United States Attorneys Julie White and Joshua Hanks and the trial team for securing guilty verdicts on all six counts against the defendant.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Metropolitan Drug Enforcement Network Team (MDENT) and the Charleston Police Department conducted the investigation, with assistance provided by the Drug Enforcement Administration (DEA) Mid-Atlantic Laboratory.
Senior United States District Judge John T. Copenhaver, Jr. presided over the jury trial.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-154.
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Federal Grand Jury B Indictments Announced- March 2023Read the Press Release
United States Attorney Clint Johnson today announced the results of the March 2023 Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Tyuane Lamontco Barnes. First Degree Felony Murder in Indian Country; Robbery in Indian Country; Conspiracy; Causing Death by Using and Discharging a Firearm During and in Relation to a Crime of Violence. Barnes, 22, of Tulsa, allegedly conspired with others to rob the minor victim of his firearm, resulting in the victim’s murder on Jan 24, 2023. The FBI and Broken Arrow Police Department are the investigative agencies. Assistant U.S. Attorneys Nathan E. Michel and Aaron M. Jolly are prosecuting the case.
Finnegan Roarke Cutter. Bank Robbery (Charged by Information). Cutter, 21, of Tulsa, is charged with using force and intimidation to rob Truity Credit Union in Bartlesville on Feb. 24, 2023. The FBI and Bartlesville Police Department are the investigative agencies. Assistant U.S. Attorney Ryan M. Roberts is prosecuting the case.
Osvaldo Bravo-Roblero. Unlawful Reentry of a Removed Alien. Bravo-Roblero, 34, a Mexican national, is charged with unlawfully reentering the United States after having been removed on Nov. 28, 2018, at or near Hidalgo, Texas. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney William Rubens is prosecuting the case.
Ty Warren Copeland. First Degree Burglary in Indian Country. Copeland, 30, of Tulsa, is charged with breaking into a residence while it was occupied on Feb. 28, 2023. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Chantelle D. Dial is prosecuting the case.
Ismael Borrayo Esparza; Jesus Ricardo Ornelas Virgen. Drug Conspiracy; Possession of Fentanyl with Intent to Distribute; Possession of Methamphetamine with Intent to Distribute; Possession of Heroin with Intent to Distribute; Maintaining a Drug-Involved Premises. Borrayo, 34, and Ornelas, 33, both of Tulsa, are alleged to have conspired together to distribute and to possess with intent to distribute 400 grams or more of fentanyl; 500 grams or more of methamphetamine; and 100 grams or more of heroin. The two are also charged with maintaining a residence to store and distribute the methamphetamine. The Drug Enforcement Administration, Tulsa Police Department and Oklahoma Highway Patrol are the investigative agencies. Assistant U.S. Attorney Shakema M. Onias is prosecuting the case.
Ethan Cord Melson. Assault of an Intimate/Dating Partner by Strangling and Attempting to Strangle in Indian Country. Melson, 26, of Stroud, is charged with assaulting an intimate partner by strangling her on Jan. 20, 2020. The FBI is the investigative agency. Assistant U.S. Attorney Chantelle D. Dial is prosecuting the case.
Josue Ramirez-Yanez. Unlawful Reentry of a Removed Alien. Ramirez-Yanez, 37, a Mexican national, is charged with unlawfully reentering the United States after having been removed on Nov. 22, 2011, at or near Laredo, Texas. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney William Rubens is prosecuting the case.
Joel Alberto Rodriguez-Garcia. Unlawful Reentry of a Removed Alien. Rodriguez-Garcia, 30, a Mexican national, is charged with unlawfully reentering the United States after having been removed on Aug. 6, 2020, at or near Laredo, Texas. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney William Rubens is prosecuting the case.
Ramon Silva-Rodriguez. Possession of Fentanyl with Intent to Distribute. Silva-Rodriguez, 25, a Mexican national, is charged with possessing with intent to distribute 40 grams or more of fentanyl. The Drug Enforcement Administration, Oklahoma Bureau of Narcotics, and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Aaron M. Jolly is prosecuting the case.
Ray Alexander Villalba; Elijah Paul Titone. Conspiracy (Count 1); Kidnapping (Count 2); Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence (Counts 3, 5, 7, 9, 11); Carjacking (Count 4); Obstructing, Delaying, and Affecting Commerce by Robbery (Counts 6, 10); Obstruction of Justice by Threatening Physical Force Against a Witness (Count 8). Villalba, 21, of Goodyear, Arizona, Titone, 24, of Muskogee, and others allegedly devised a plan where they would use dating apps and cell phones to lure potential victims to discrete locations under the guise of romantic encounters then threaten and kidnap victims in order to take their vehicle and property. Specifically, in early December 2022, the two men allegedly used Grindr to lure one man to a remote location then restrained and kidnapped him. They tied the victim up and forced him into the back seat of his car. Villalba drove the victim’s vehicle while Titone allegedly sat in the back with the victim while pointing a firearm at him. Titone showed the victim decapitation videos and Villalba told him that Titone was a member of a cartel that would kill the man if he did not comply. The two then drove the man to an ATM machine and forced him to provide his pin number to obtain money. They also forced him to unlock his phone so they could download Cashapp and transfer money. They once again threatened to kill the man if he called the police then left him on the side of the rode, driving off with his vehicle and wallet. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Tulsa Police Department and Broken Arrow Police Department are the investigative agencies. Assistant U.S. Attorneys Kenneth Elmore and John E. Brasher are prosecuting the case.
Edwar Rosario Villalobos-Quintanilla. Distribution of Fentanyl; Conspiracy to Distribute and Possess with Intent to Distribute Fentanyl. Villalobos-Quintanilla, 28, is charged with distributing fentanyl and with conspiring with others to distribute and possess with intent to distribute fentanyl. The Drug Enforcement Administration and Oklahoma Bureau of Narcotics are the investigative agencies. Assistant U.S. Attorney Brandon A. Skates is prosecuting the case.
Ecuadorian National Sentenced to Prison for Participating in Tax Refund Fraud SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut; announced that EDWIN F. GUTIERREZ, 45, a citizen of Ecuador residing in East Haven, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to six months of imprisonment, followed by two years of supervised release, for participating in a tax refund fraud scheme.
According to court documents and statements made in court, from approximately May 2013 to April 2017, Gutierrez and several other Ecuadoran nationals participated in a scheme to illegally obtain tax refunds from the IRS. In order to obtain the refunds, some of Gutierrez’s co-defendants filed fraudulent federal tax returns, in the names of other foreign nationals (“claimants”), with the IRS. The fraudulent tax returns stated that the claimants resided in the U.S., earned wages from companies in the U.S., and had federal income tax withheld from the claimants’ wages. In truth, the claimants never worked for or earned income from those companies. In addition, U.S. Customs and Border Protection have no records of the claimants even being present in the U.S. during the tax years for which the returns were filed. Based on these false tax returns, the IRS issued tax refunds, which were then deposited into bank accounts that were controlled by Gutierrez and some of his co-defendants.
Through this scheme, Gutierrez and his associates obtained 142 tax refunds, totaling approximately $435,500. Gutierrez personally deposited 69 of those refunds, totaling approximately $215,460, into his own bank accounts. Gutierrez and his associates spent some of the proceeds for their personal use, and they wired some of the proceeds to relatives in Ecuador.
Judge Arterton ordered Gutierrez to pay restitution of $215,460.
Gutierrez, who is released on bond, is required to report to prison on May 10.
On July 16, 2021, Gutierrez and three others with were arrested on an indictment charging them with various offenses stemming from this scheme. On October 12, 2022, Gutierrez pleaded guilty to theft of public money. Gutierrez’s co-defendants pleaded guilty to related charges.
This matter has been investigated by the Internal Revenue Service – Criminal Investigation Division, Homeland Security Investigations (HSI) and the U.S. Postal Inspection Service, with the assistance of U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations.
The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Dunmore Business Owner Sentenced to Three Months in Prison for Failure to Pay Employment TaxesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that John Worobey, age 53, of Abington Township, Pennsylvania, was sentenced to three months in prison to be followed by two years of supervised release by United States District Court Judge Robert D. Mariani for failure to pay employment taxes.
Worobey owned and operated Prime Electric, Inc., an electrical contracting business in Dunmore, Pennsylvania. Between 2016 and 2019, Worobey collected $264,644 of federal employment taxes from his employees as he was required to by law but did not turn those employment taxes over to the IRS.
In June 2022, Worobey pleaded guilty to failing to pay employment taxes. At his guilty plea, he agreed to pay the IRS $244,644 in restitution owed. Before sentencing, Worobey paid all of the restitution to the government.
The case was investigated by the U.S. Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Michael A. Consiglio prosecuted the case.
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Dripping Springs Woman Sentenced for Defrauding VA, SSA of more than $500KRead the Press Release
SAN ANTONIO – A Dripping Springs woman was sentenced in a federal court in San Antonio today to 46 months in prison and ordered to pay $501,709.54 in restitution for defrauding the Department of Veterans Affairs (VA) and the Social Security Administration (SSA) of more than $500,000.
According to court documents, Josephine Casandra Perez-Gorda, 40, defrauded the VA and SSA by overstating the severity and extent of her spouse’s disability from October 2011 through August 2017. Mr. Perez-Gorda, now deceased, was an Army veteran who participated in the fraud. The couple claimed Mr. Perez-Gorda was paralyzed from the waist down from an injury he suffered while on active duty. The ruse included applying for and receiving a specially equipped vehicle, a specially adapted home and additional compensation based on his disability rating.
The investigation began after San Antonio news station, KENS5, aired a story titled, “Homes for Our Troops Questions Veteran’s Paralysis after Video.” The story involved a specially adapted house in Dripping Springs that was gifted to the Perez-Gordas in December 2013 by the non-profit foundation Homes for Our Troops. Although Mrs. Perez-Gorda claimed her husband was “paralyzed from the belly button down,” Mr. Perez-Gorda was seen walking around the neighborhood and playing basketball. VA Office of Inspector General (OIG) agents videotaped Mr. Perez-Gorda walking around without assistance. Mrs. Perez-Gorda furthered the scheme by completing all the VA and SSA paperwork claiming Mr. Perez-Gorda was paralyzed in both legs.
On Sept. 27, 2022, Mrs. Perez-Gorda was found guilty of 11 counts of wire fraud; one count of mail fraud; one count of health care fraud; three counts of false statements related to a health care matter; one count of conspiracy to commit health care fraud; and one count of theft of government funds. In addition to the imprisonment and restitution, Perez-Gorda is responsible for a $100 special assessment on each of the 18 counts and $100,000 for trial expenses.
“As the U.S. Attorney’s Office, we will pursue individuals that defraud and steal from integral benefit programs like those designed by the Veteran’s Administration and the Social Security Administration,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “These programs are crucial to our disabled veterans and other disabled Americans who truly depend on their assistance, and they must be protected.”
“Fraudulently obtaining benefits from VA diverts valuable resources intended for the care of deserving veterans,” said Deputy Assistant Inspector General for Investigations Carl Scott of the Department of Veterans Affairs Office of Inspector General’s Office of Investigations. “The VA OIG is grateful to the U.S. Attorney’s Office and the Social Security Administration OIG for their efforts in this joint investigation.”
“A jury found Josephine Perez-Gorda guilty as a co-conspirator in a scheme that defrauded the Social Security Administration and the U.S. Veterans Administration of more than $500,000 and services intended to assist persons with disabilities. This sentence now holds her accountable for her criminal actions,” said Gail S. Ennis, Inspector General for the SSA. “I appreciate the VA Office of the Inspector General for their work in this joint investigation and the U.S. Attorney’s Office for prosecuting this case.”
The VA-OIG and SSA-OIG investigated the case.
Assistant U.S. Attorney Greg Surovic and Special Assistant U.S. Attorney Tiffany Miller prosecuted the case.
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Cruise Ship Employee Sentenced to 188 Months in Prison for Distribution of Child Sexual Abuse MaterialRead the Press Release
MIAMI – Angelo Victor Fernandes, a 34-year-old cruise ship employee from Goa, India, was sentenced in federal district court to 188 months in prison for distributing child sexual abuse material.
Between January 16 and April 30, 2022, Fernandes sent 13 child pornography videos through an instant messaging application to Daniel Scott Crow. Fernandes also communicated with Crow about arranging for Crow to travel to engage in sexual activity with minor children. During a separate communication with an unidentified person, Fernandes talked about sexual abuse of minor children and his ability to obtain children for sex.
Crow pled guilty to one count of enticement of a minor and one count of production of child pornography in case number 22-cr-14035. He was sentenced on December 12, 2022, to 30 years in prison.
United States Attorney Markenzy Lapointe for the Southern District of Florida and acting Special Agent in Charge Michael E. Buckley, Homeland Security Investigations (HSI), Miami, announced the sentence.
HSI Fort Pierce Office investigated the case. Assistant United States Attorney Christopher Hudock prosecuted it.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If you have information regarding this case, or you believe you or a family member may have been a victim, please contact the HSI tip line at 1-866-347-2423.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-14046.
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Couple Sentenced for Failure to Pay Withheld Payroll TaxesRead the Press Release
United States Attorney Steven Russell announced that William H. White, 55, and Sarah A. White, 40, husband and wife, formerly of Roca, Nebraska, were sentenced on March 21, 2023, by the Senior United States District Judge John M. Gerrard for Failure to Pay Over Employment Tax that had been withheld from employees’ paychecks. William White was sentenced to one year and one day imprisonment, to be followed by three years of supervised release. Sarah White was sentenced to three years of probation and a fine of $10,000. Each was ordered to pay $426,047.75 restitution but was credited for payments they had made previously totaling that same amount.
William and Sarah White owned two businesses that operated in tandem -- B&B Midwest Trucking (B&B) and 419, LLC (419). During portions of 2015 to 2018, B&B and 419 withheld federal income taxes and FICA taxes (Social Security and Medicare) from employees’ paychecks but failed to account for those taxes on time and to pay them over to the Internal Revenue Service. The withheld employee payroll taxes totaled $144,220.31 for B&B, and $281,827.44 for 419. Each business had sufficient funds available to pay the payroll taxes when due. William and Sarah White were aware of the obligation to account for and pay the payroll taxes and were responsible to pay them, but instead used the funds withheld from employees’ paychecks to pay other business creditors and to pay for personal expenses. The businesses had further failed to pay over the employer’s share of payroll taxes to the IRS, but the Whites paid those amounts as well prior to sentencing.
“Business owners have a significant duty to collect and turn over all IRS withholding taxes,” said Thomas F. Murdock, Special Agent in Charge, IRS Criminal Investigation, St. Louis Field Office. “Those who fail to do so gain an unfair competitive advantage. The failure to abide by IRS laws will not be tolerated, and those criminals will be prosecuted to the fullest extent of the law.”
This case was investigated by the Internal Revenue Service.Corpus Christi man arrested for selling fentanyl-laced pills causing deathRead the Press Release
CORPUS CHRISTI, Texas – A 21-year-old Corpus Christi man has been charged with delivery of fentanyl resulting in death and possession of fentanyl with the intent to distribute, announced U.S. Attorney Alamdar S. Hamdani.
Authorities arrested Ricardo Julyan Kross Rios aka Kross, 21, Corpus Christi, this morning. He is expected to make his initial appearance before U.S. Magistrate Judge Mitchel Neurock tomorrow at 9:45 a.m.
A federal grand jury in Corpus Christi returned the tw0-count indictment March 22, 2023. It alleges that on Dec. 9, 2022, Rios possessed and delivered a substance containing a detectable amount of fentanyl, the use of which resulted in the death of a person. Rios was also charged with one count of possessing fentanyl for the purpose of distribution on Jan. 17.
If convicted of distributing fentanyl causing death, Rios faces up to life in prison. He could also be fined up to $1 million. The possession of fentanyl with the intention to distribute carries a 20-year maximum sentence.
The Drug Enforcement Administration led the cooperative law enforcement effort targeting fentanyl with the assistance of Homeland Security Investigations, Jim Wells County Sheriff’s Office and police departments in Corpus Christi, Aransas Pass and Mathis. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting this case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Convicted Child Molester Sentenced for Immigration Fraud and Judicially Ordered Removed from the United StatesRead the Press Release
RALEIGH, N.C. – Manuel Alejandro Vitela-Romero, age 36, a citizen of Mexico residing in Johnston County, was sentenced today by Chief United States District Judge Richard E. Myers II to time served plus one year of supervised release following a guilty plea to immigration fraud. Moreover, Vitela was judicially ordered removed from the United States.
According to court records, on March 23, 2019, Vitela knowingly made a materially false statement on an application for an immigration benefit. In response to the question “Have you ever…engaged in [a]ny kind of sexual contact or relations with any person who was being forced or threatened?” he answered “No.”
Contrary to Vitela’s statement, he had taken indecent liberties with a minor, a 13-year-old girl, on August 8, 2018, and he was convicted on November 8, 2022, in the Superior Court of North Carolina in Johnston County. He was sentenced to a term of imprisonment of between 16 and 29 months and ordered to register as a sex offender.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement. Agents with ICE’s Enforcement and Removal Operations and Homeland Security Investigations, assigned to the Document Benefit Fraud Task Force, investigated the case. Assistant U.S. Attorney Sebastian Kielmanovich prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-cr-008-1M-BM.