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Tuesday 21 March 2023
Georgia Man Pleads Guilty in Check Fraud ConspiracyRead the Press Release
PITTSBURGH, PA - A resident of McDonough, Georgia, pleaded guilty in federal court to a charge of check fraud, Acting United States Attorney Troy Rivetti announced today.
Adarius Scott, 26, pleaded guilty to one count before United States District Judge Robert J. Colville.
In connection with the guilty plea, the court was advised that from in and around May 2019 to July 2, 2019, Scott participated in a check fraud conspiracy where he traveled with other codefendants to various cities, including Pittsburgh, and stole mail from businesses. They searched the stolen mail for checks and created replicas of the checks with the “payee” section left blank. Then, the conspirators recruited individuals with valid identification to cash the checks in exchange for a small amount of money.
Judge Colville scheduled sentencing for July 21, 2023 The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Scott’s bond.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Secret Service, the United States Postal Inspection Service, and the Pennsylvania State Police conducted the investigation that led to the prosecution of Scott.
Former Nurse Sentenced to Federal Prison for Illegal Oxycodone Prescription SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Jacquelyn DeVito (40, Brandon) to 24 months in federal prison for unlawful drug distribution and for acquiring a controlled substance by misrepresentation. DeVito also relinquished her Nurse Practitioner and Advanced Registered Nurse Practitioner licenses to the State of Florida Board of Nursing and agreed never to reapply for a Drug Enforcement Administration registration number. DeVito had pleaded guilty on December 9, 2022.
According to court documents, between March 2020 and June 2022, DeVito worked as nurse at an urgent care medical office. During this employment, she offered patients separate home health services through her privately-owned company, Bee Home Medical LLC. DeVito used Bee Home Medical patients’ names and dates of birth to prescribe oxycodone, a Schedule II controlled substance, without their knowledge or consent and issued those prescriptions to local retail pharmacies. When the prescriptions were filled and ready to be picked up, DeVito went to the pharmacies and acquired the controlled substances by falsely stating that she was the victim patients’ caregiver and was picking up the controlled substances on their behalf. In this manner, DeVito prescribed and acquired more than 2,900 oxycodone pills. Many of the victim patients had no knowledge that DeVito had issued the prescriptions in their names and confirmed that there was no legitimate need for them to receive the medication.
This case was investigated by the Drug Enforcement Administration (Tampa District Office) and the Opioid Fraud and Abuse Detection Unit. The Opioid Fraud and Abuse Detection Unit was created by the Department of Justice to help combat the devastating opioid crisis. The Opioid Fraud and Abuse Detection Unit focuses specifically on opioid-related health care fraud, using data to identify and prosecute individuals contributing to the prescription opioid epidemic. The case was prosecuted by Assistant United States Attorney Greg Pizzo.
Former Lincoln Lawyer Sentenced to Two Years in Prison in Tax CaseRead the Press Release
United States Attorney Steven Russell announced that Craig Hoffman, 46, of Lincoln, Nebraska, was sentenced on March 20, 2023, in Lincoln by Senior United States District Judge John M. Gerrard for willful failure to collect or pay over employment taxes. Hoffman was sentenced to two years in prison. After his release from prison, Hoffman will begin a two-year term of supervise release. There is no parole in the federal system. Senior Judge Gerrard ordered Hoffman to pay $325,197.90 in restitution.
Between 2011 and 2017, Hoffman Law Office, P.C. LLO was a professional corporation doing business as a law firm in Lincoln. Hoffman was the owner, operator, and sole employee of Hoffman Law, and exercised control over the business affairs, including authorizing business expenses, authorizing payment of employee compensation, approval of payments made by the corporation, and approval of payment of “payroll taxes” to the Internal Revenue Service.
Hoffman Law, by and through Hoffman as the sole employee, was obligated to withhold taxes from his employee compensation, including federal income taxes, and Medicare and Social Security taxes, also known as FICA or payroll taxes. Hoffman Law was required to make deposits of “payroll taxes” to the Internal Revenue Service on a periodic basis. In addition, Hoffman Law was required to file quarterly tax forms showing employee wages subject to withholding, the total amount of income taxes withheld, the total amount of “payroll taxes” due, and the total tax deposits. As owner, operator, and sole employee of Hoffman Law, Hoffman had the authority required to exercise significant control over the corporate financial business affairs of Hoffman Law, and had the responsibility to collect, truthfully account for, and pay over “payroll taxes” of Hoffman Law to the Internal Revenue Service.
Between 2011 and 2016, Hoffman Law failed to pay over to the Internal Revenue Service payroll taxes which were due and owing to the United States of America. For example, as of October 31, 2015, Hoffman failed to pay over to the Internal Revenue Service $11,155.12 in payroll taxes he owed for the previous quarter ending September 30, 2015.
In October 2013, the IRS notified Hoffman of its intent to file levies to collect the taxes due for 2010 and 2011. Thereafter, several levy payments totaling more than $46,000 were received from the bank that held the Hoffman Law operating account. In 2014, Hoffman began the practice of transferring funds from the firm’s trust fund account to its operating account and then immediately writing checks to himself that he cashed or deposited into his personal bank account. Hoffman engaged in this conduct, at least in part, so that he could receive the funds before any levies on the account could be made by the IRS, which resulted in the account having a low balance from time to time in the event the IRS levied on the account. Between 2011 and 2016, Hoffman failed to pay $241,362.92 in employment taxes. Including interest and penalties, Hoffman’s outstanding tax debt grew to $325,197.90, which is the amount of restitution he was ordered to pay to the IRS as part of his sentence.
“As an Attorney, Mr. Hoffman was not above the law. Investigating and prosecuting any business owner who intentionally fails to pay their employment tax obligations is a priority for IRS-Criminal Investigation," stated Special Agent in Charge Thomas F. Murdock of the IRS-Criminal Investigation St. Louis Field Office. "Today's sentencing is a reflection of just how serious the courts view these crimes, and Mr. Hoffman is now a convicted felon with a prison term to serve.
This case was investigated by the Internal Revenue Service – Criminal Investigation.
Former Florida State Representative Pleads Guilty to Wire Fraud, Money Laundering, and Making False Statements in Connection with Covid-19 Relief FraudRead the Press Release
GAINESVILLE, FLORIDA –Joseph Harding, 35, of Williston, Florida, plead guilty today to wire fraud, money laundering, and making false statements in connection with COVID-19 relief fraud. Jason R. Coody, United States Attorney for the Northern District of Florida, announced the guilty plea.
Court documents reflect Harding devised a scheme to defraud the Small Business Administration (SBA) and obtained coronavirus-related small business loans by means of materially false and fraudulent pretenses, representations, and promises, and while executing such scheme, caused wire communications to be transmitted in interstate commerce. Harding also made a false and fraudulent SBA Economic Injury Disaster Loan (EIDL) application, in the name of one of his dormant business entities, that he submitted to the SBA. By this conduct, Harding fraudulently obtained $150,000 in COVID-19 relief funds from the SBA to which he was not entitled. After obtaining the EIDL proceeds, Harding conducted three monetary transactions each involving more than $10,000 in fraudulently obtained funds: a transfer to his joint bank account, a payment to his credit card, and a transfer into a bank account of a third-party business entity.
A sentencing hearing is scheduled for July 25, 2023, at 11:00 am, at the United States Courthouse in Gainesville, Florida, before the Honorable United States District Judge Allen Winsor.
Harding faces the following maximum terms of imprisonment for the offenses:
- 20 years: Wire Fraud
- 10 years: Money Laundering
- 5 years: Making False Statements
The investigation was jointly conducted by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General, and the Small Business Administration (SBA) Office of Inspector General. The case is being prosecuted by Assistant United States Attorneys Justin M. Keen and David P. Byron.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Florissant Woman Sentenced to a Year in Prison, Must Repay $101,000 for Pandemic Loan FraudRead the Press Release
ST. LOUIS –A woman from Florissant, Missouri was sentenced to a year in prison for fraudulently obtaining two pandemic-era loans totaling more than $101,000.
U.S. District Judge Ronnie L. White also ordered Lakenya M. Hobbs, 40, to repay $101,567 to the Small Business Administration.
Hobbs defrauded the Paycheck Protection Program, which provided forgivable loans to small businesses to help them save jobs during the pandemic. On March 12, 2021, she submitted a loan application containing false and fraudulent information that resulted in the issuance of a $81,223 loan. Hobbs did not use the money to save jobs but instead at electronic stores and restaurants and for airfare. She also took some out in cash. On Oct. 1, 2021, she successfully applied for loan forgiveness, falsely claiming she’d used the PPP money for payroll.
On May 27, 2021, Hobbs submitted a fraudulent loan application to a different banking institution and received a $20,344 loan. She was also granted forgiveness for this loan.
Hobbs pleaded guilty in November to one count of bank fraud and one count of wire fraud.
The case was investigated by the FBI. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.
Florida Resorts Agree to Pay $325,000 to Settle False Claims Act Allegations Relating to False Certifications on a Paycheck Protection Program Loan Forgiveness ApplicationRead the Press Release
Florida companies Kingwood Orlando Reunion Resort LLC (Orlando Reunion) and Kingwood Crystal River Resort Corp. (Crystal River) have agreed to settle allegations that they violated the False Claims Act (FCA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) by knowingly providing false information in support of a Paycheck Protection Program (PPP) loan forgiveness application submitted by Crystal River.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized these businesses to seek forgiveness of the loans if they spent the loan funds on eligible expenses, such as payroll. When applying for forgiveness of PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their applications. A PPP recipient seeking loan forgiveness based on the payment of wages was only entitled to forgiveness for the amount of wages actually paid to its employees during the designated period.
Here, Orlando Reunion and Crystal River, which are related but operate separate resorts, both received separate PPP loans. The United States alleged that Crystal River sought forgiveness of its PPP loan, in-part, by certifying that it used a portion of its PPP loan to pay wages of Crystal River employees, when in fact, some of the employees to whom it claimed to have paid wages were actually Orlando Reunion employees whom Crystal River did not employ or pay. As a part of the settlement announced today, Crystal River and Orlando Reunion agreed to pay $271,720 in damages and penalties under the FCA and $53,280 in civil penalties under FIRREA.
“PPP loans were intended to help small businesses retain employees and keep their doors open during the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to holding accountable those who knowingly and improperly sought PPP loans or forgiveness of those loans.”
“A primary mission of the United States Attorney’s Office is protecting government programs from fraud,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to hold accountable those who abuse the CARES Act and PPP Program at the expense of the taxpayers.”
“This settlement demonstrates that attempts to wrongfully obtain loan forgiveness will not go unnoticed, and violators will be identified,” said Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration Office of the Inspector General (SBA OIG) Eastern Region. “I want to thank the Department of Justice and our law enforcement partners for their support and dedication to pursuing justice in this case.”
The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit was filed by the former Director of Human Resources for Kingwood resorts and is captioned U.S. ex rel. Falzarano v. Kingwood International Resort, LLC, et al., Dkt. No. 6:20-cv-976-ORL-37EJK (M.D. Fla.). The whistleblower will receive a total of approximately $46,000 in connection with the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the SBA’s Office of General Counsel and the SBA OIG.
This matter was handled by Trial Attorney Jared S. Wiesner of the Civil Division and Assistant U.S. Attorney Jeremy R. Bloor for the Middle District of Florida.
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.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also 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.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Florida Resorts Agree to Pay $325,000 to Settle False Claims Act Allegations Relating to False Certifications on a Paycheck Protection Program Loan Forgiveness ApplicationRead the Press Release
Note: View a copy of the settlement agreement here.
Orlando, FL – Florida companies Kingwood Orlando Reunion Resort LLC (Orlando Reunion) and Kingwood Crystal River Resort Corp. (Crystal River) have agreed to settle allegations that they violated the False Claims Act (FCA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) by knowingly providing false information in support of a Paycheck Protection Program (PPP) loan forgiveness application submitted by Crystal River.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized these businesses to seek forgiveness of the loans if they spent the loan funds on eligible expenses, such as payroll. When applying for forgiveness of PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their applications. A PPP recipient seeking loan forgiveness based on the payment of wages was only entitled to forgiveness for the amount of wages actually paid to its employees during the designated period.
Here, Orlando Reunion and Crystal River, which are related but operate separate resorts, both received separate PPP loans. The United States alleged that Crystal River sought forgiveness of its PPP loan, in-part, by certifying that it used a portion of its PPP loan to pay wages of Crystal River employees, when in fact, some of the employees to whom it claimed to have paid wages were actually Orlando Reunion employees whom Crystal River did not employ or pay. As a part of the settlement announced today, Crystal River and Orlando Reunion agreed to pay $271,720 in damages and penalties under the FCA and $53,280 in civil penalties under FIRREA.
“PPP loans were intended to help small businesses retain employees and keep their doors open during the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to holding accountable those who knowingly and improperly sought PPP loans or forgiveness of those loans.”
“A primary mission of the United States Attorney’s Office is protecting government programs from fraud,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to hold accountable those who abuse the CARES Act and PPP Program at the expense of the taxpayers.”
“This settlement demonstrates that attempts to wrongfully obtain loan forgiveness will not go unnoticed, and violators will be identified,” said Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration Office of the Inspector General (SBA OIG) Eastern Region. “I want to thank the Department of Justice and our law enforcement partners for their support and dedication to pursuing justice in this case.”
The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit was filed by the former Director of Human Resources for Kingwood resorts and is captioned U.S. ex rel. Falzarano v. Kingwood International Resort, LLC, et al., Dkt. No. 6:20-cv-976-ORL-37EJK (M.D. Fla.). The whistleblower will receive a total of approximately $46,000 in connection with the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the SBA’s Office of General Counsel and the SBA OIG.
This matter was handled by Trial Attorney Jared S. Wiesner of the Civil Division and Assistant U.S. Attorney Jeremy R. Bloor for the Middle District of Florida.
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.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also 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.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Felon with Firearm and Extended Magazine Sentenced to Federal PrisonRead the Press Release
An Onawa, Iowa man, was sentenced March 14, to more than 4 years in federal prison.
Antonio Palmer, age 44, from Onawa, Iowa, received the prison term after a September 20, 2022, guilty plea to one count of felon in possession of a firearm.
Evidence in the case showed Palmer was stopped by Sioux City Police for traffic infractions. When the officer approached Palmer’s vehicle, there was a strong odor of marijuana, and the officer observed a handgun in the driver’s side door. When the officer requested assistance, Palmer opened his door and told the officer to take the firearm. Palmer also had 19-round magazine for the firearm. During the encounter, Palmer admitted to smoking marijuana in the vehicle and that he had just purchased the firearm via a private sale.
Palmer was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 57 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
The case was investigated by the Sioux City Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-04037.
Follow us on Twitter @USAO_NDIA.
Eight Men Charged with Fentanyl TraffickingRead the Press Release
NEWARK, N.J. – Eight men were charged today for their roles in a drug trafficking organization operating in and around Union County, New Jersey, U.S. Attorney Philip R. Sellinger announced today.
Lance Baker, 54, of Perth Amboy, New Jersey; Rooks Crawford, 57, of Linden, New Jersey; Derrick Gilliam, 48, of Alburtis, Pennsylvania; Abinader Liriano-Balbuena, 37, of Bronx, New York; Michael Williams, 54, of Roselle, New Jersey; and Tyrone Gilliam, 60, Lewis Martinez-Berroa, 38, and Earl Riley, 58, all of Elizabeth, New Jersey, are each charged by superseding complaint with one count of conspiracy to distributed controlled substances.
According to documents filed in this case and statements made in court:
Baker, Crawford, Derrick Gilliam, Tyrone Gilliam, Martinez-Berroa, Riley, and Williams were part of a drug trafficking organization operating in and around Union County. Law enforcement officers observed and documented dozens of narcotics transactions during the investigation. From July 2022 to March 2023, law enforcement officers seized more than 9,000 individual doses of fentanyl sold by the organization. Martinez-Berroa, Tyrone Gilliam, and Derrick Gilliam were the primary suppliers of fentanyl to the drug trafficking organization.
On March 21, 2023, law enforcement executed a series of judicially authorized searches at several locations used by the members of the conspiracy. At a location in the Bronx, New York, law enforcement officials located a “mill” used to manufacture and package narcotics and recovered approximately 10 kilograms of a substance believed to be fentanyl.
The count of conspiracy to distribute controlled substances with which each of the defendants is charged carries a maximum potential penalty of 20 years in prison and a fine of up to $1 million.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Bryan Miller in Newark; special agents of the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge Daniel J. Kafafian in Newark; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Patrick J. Freaney; the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel and Chief Harvey Barnwell; the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone; the Summit Police Department, under the direction of Chief Steven Zagorski; the Elizabeth Police Department, under the direction of Police Director Earl Graves and Chief Giacommo Sacca; the Perth Amboy Police Department, under the direction of Chief Lawrence Cattano; the Union County Police Department, under the direction of Capt. Martin Mogensen; the Union County Sheriff’s Office, under the direction of Sheriff Peter Corvelli; the Scotch Plains Police Department, under the direction of Chief Jeffrey Briel; and the Linden Police Department, under the direction of Chief David Hart, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys John Mezzanotte and Robert Frazer of the Organized Crime and Gangs Unit in Newark and Christopher Fell of the General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
bakeretalscomplaint.pdfEdinboro Man Admits receiving Child Sexual Abuse MaterialsRead the Press Release
ERIE, Pa. - A former resident of Edinboro, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Troy Rivetti announced today.
James Paredes Andrada, 25, pleaded guilty to one count before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that from November 2019 to February 2020, Andrada received computer and cell phone images depicting minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Baster scheduled sentencing for July 25, 2023, at 1:30 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.Pending sentencing, the court continued Andrada on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police, and the Edinboro Police Department conducted the investigation that led to the prosecution of Andrada.
District Teen Sentenced to 30 Months in Prison for Repeatedly Threatening to Kill his Ex-GirlfriendRead the Press Release
WASHINGTON –A 19-year-old D.C. resident was sentenced yesterday to 30 months in prison for threatening to kill his ex-girlfriend. He pleaded guilty on December 12, 2022, in front of the Honorable Judge Tonya S.Chutkan.
According to court documents, the defendant was in a relationship with a fellow high-school student which ended in March 2022. Following the end of the relationship, from March 2022 until June 2022, the defendant sent his ex-girlfriend, who was 17-years old at the time, a series of text messages threatening her life. The defendant threatened to kill his ex-girlfriend before killing himself, telling her that if he could not have her, no one would. The defendant also sent sexually explicit videos depicting his ex-girlfriend to her mother, one of her co-workers, and to one of her friends. As a result of the defendant’s threats, the 17-year old’s family obtained a civil protection order against the defendant. Despite this protection order, the defendant continued to attempt to contact the minor victim.
The defendant was arrested in June of 2022, and he has remained in custody ever since. In addition to the prison term, Judge Chutkan ordered three years of supervised release and ordered the defendant to stay away from the victim.
Healthy relationships are important for everyone, especially for teenagers. Healthy relationships are ones where adolescents can safely feel and express respect for themselves and others. More information is available at https://opa.hhs.gov/adolescent-health/healthy-relationships-adolescence. Anyone seeking help can call the National Domestic Violence Hotline at 1-800-799-7283.
In announcing the sentence, U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge Wayne A. Jacobs, of the Washington Field Office’s Criminal and Cyber Division, and Chief Robert J. Contee, III, of the Metropolitan Police Department commended the work of the FBI agents and MPD detectives. They also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including paralegal specialist Alexis Spencer-Anderson. Finally, they commended the work of Assistant U.S. Attorney Janani Iyengar, who investigated and prosecuted the case.
Coordinator Pleads Guilty in Fatal Imperial County Smuggling Incident Resulting in Thirteen DeathsRead the Press Release
SAN DIEGO – Jose Cruz Noguez pleaded guilty in federal court today to charges stemming from a March 2, 2021, smuggling incident in which thirteen people died when the vehicle in which they were concealed collided with a tractor trailer near Holtville, California.
In a hearing in United States District Court, the defendant admitted that he and his co-conspirators sought to smuggle a large number of undocumented migrants into the United States by loading them into modified SUVs and breaching an area of the international boundary fence between Mexico and the United States near Calexico, California. In the days leading up to March 2, 2021, the defendant committed various acts for the purpose of carrying out the conspiracy, such as attempting to recruit at least one criminal associate to drive a load vehicle containing as many as 20 undocumented migrants. And during the early morning hours of March 2, 2021, before the smuggling event, Cruz Noguez used his vehicle to scout the area that the load vehicles would be traveling. After confirming there was no law enforcement in the area, defendant’s co-conspirators loaded dozens of undocumented migrants – including at least one minor who was unaccompanied by a parent or guardian – into two modified SUVs and drove them into the United States through a breach they had cut in the international boundary fence. Once successfully in the United States, the two load vehicles traveled west along Interstate 8, and as has been reported in the media, one of the vehicles – a GMC Yukon – caught fire on Interstate 8 near Highway 115. Shortly thereafter, the other vehicle – a Ford Expedition – collided with a tractor-trailer on Highway 115 near Holtville, California. Thirteen individuals in the Ford Expedition died tragically as a result of the accident. In his plea agreement, Cruz Noguez admitted that he and his co-conspirators were smuggling the undocumented migrants into the United States for financial consideration and with the intent to violate the immigration laws of the United States.
The United States Attorney’s Office (USAO) initially indicted Cruz Noguez on April 27, 2021. Following further investigation, the USAO charged him and another individual (who remains a fugitive) in a Third Superseding Indictment on July 15, 2022. Cruz Noguez’s trial had been scheduled to begin on May 15, 2023. Instead, he entered into a plea agreement and pleaded guilty to a Superseding Information charging him with one count of Conspiracy to Bring in Undocumented Migrants and three counts of Bringing In Undocumented Migrants for Financial Gain (which carry a five-year mandatory minimum sentence).
Cruz Noguez is scheduled to be sentenced on June 9, 2023 at 9:00 a.m. before U.S. District Judge Cathy Ann Bencivengo.
This case was supported by Joint Task Force Alpha (JTFA). JTFA was created by the Attorney General in June 2021 in partnership with the Department of Homeland Security (DHS), to strengthen the Department’s overall efforts to combat these crimes based on the rise in prolific and dangerous smuggling from and through Central America and impacting our border communities. JTFA’s goal is to disrupt and dismantle those human smuggling and trafficking networks operating in El Salvador, Guatemala, Honduras, and Mexico, with a focus on networks that endanger, abuse or exploit migrants, present national security risks, or engage in other types of transnational organized crime.
The U.S. Attorney’s Office for the Southern District of California helps lead JTFA, which is comprised of detailees from southwest border U.S. Attorney’s Offices, including the Southern District of Texas, the Western District of Texas, the District of New Mexico, the District of Arizona, and the Southern District of California, and dedicated support for the program is also provided by numerous components of the Criminal Division that are part of JTFA – led by the Human Rights and Special Prosecutions Section (HRSP), and supported by the Office of Prosecutorial Development, Assistance, and Training (OPDAT), the Narcotic and Dangerous Drug Section (NDDS), the Money Laundering and Asset Recovery Section (MLARS), the Office of Enforcement Operations (OEO), the Justice Department’s Office of International Affairs (OIA), and the Organized Crime and Gang Section (OCGS). JTFA is made possible by substantial law enforcement commitment from DHS, FBI, Drug Enforcement Administration (DEA), and other partners.
DEFENDANTS Case Number 21CR1277-CAB
Jose Cruz Noguez Age: 49 Mexicali, Mexico
Froylan Cortez Avalos (fugitive) Age: 49 Mexicali, MexicoSUMMARY OF CHARGES
Conspiracy to Bring In Undocumented Migrants
Title 8, U.S.C., Section 1324(a)(1)(A)(i) and (v)(I)
Maximum penalty: 10 years in prison and $250,000 fineBringing In Undocumented Migrants for Financial Gain and Aiding and Abetting
Title 8, U.S.C., Section 1324(a)(2)(B)(ii) and Title 18, U.S.C., Section 2
Maximum penalty: 15 years in prison and $250,000 fineAGENCIES
Homeland Security Investigations
United States Border Patrol
California Highway Patrol
Imperial County Sheriff’s OfficeColorado High School Activities Association Agrees to Improve Access for Student Athletes with DisabilitiesRead the Press Release
DENVER—The U.S. Attorney’s Office for the District of Colorado announced today that the United States has resolved a discrimination complaint under the Americans with Disabilities Act (ADA) against the Colorado High School Activities Association (CHSAA) related to a student athlete with diabetes who was disqualified from participating in an event at a state championship swim meet.
The Department of Justice received a complaint from the family of a high school swimmer, who has Type 1 diabetes, after the student was disqualified from swimming in an event at the 2021 state meet for having adhesive tape covering a continuous glucose monitor that he wears to monitor his blood sugar. Minutes before the start of the event, the head referee saw the piece of 2x2-inch adhesive tape covering the student’s continuous glucose monitor and disqualified him from the race.
CHSAA is the primary governing body for high school athletic activities throughout Colorado. It has 368 member schools across the state. It hosts the state championships and other competitions and events for boys’ and girls’ sports and other activities. The 2021 state swim meet was covered by CHSAA’s constitution, bylaws, and swimming-specific rules.
Under the ADA and its implementing regulations, entities like CHSAA are required to make reasonable modifications in policies, practices, or procedures when necessary to avoid discrimination on the basis of disability unless the modification would fundamentally alter the nature of the goods, services, facilities, privileges, advantages, or accommodations.
To resolve the complaint, CHSAA agreed to take several steps to address how it will respond when student participants with disabilities who are participating in CHSAA-sponsored activities, or their coaches, seek modifications of the rules for those activities:
- Clarify in its activity-specific rules that students with disabilities may participate in CHSAA-sponsored activities while using adhesive tape on medical devices if they provide medical documentation;
- Adopt an internal procedure for evaluating requests from students with disabilities for reasonable modifications of CHSAA’s bylaws or the activity-specific rules, with such requests promptly evaluated by CHSAA Assistant Commissioners;
- Amend CHSAA’s bylaws to make clear that a student with a disability, or their coach, can seek an on-the-spot reasonable modification from a referee at games, meets, competitions, or other CHSAA-sponsored activities, and that the referee can grant such a request if it is readily apparent that the medical device is intended to address a disability;
- Make reasonable efforts to notify schools, coaches, students, and referees of these policy changes to CHSAA’s bylaws and activity-specific rules; and
- Provide training for CHSAA employees, contractors, agents, and volunteers on the requirements of the ADA.
The agreement covers all activities subject to CHSAA’s rules and bylaws.
“All students with disabilities deserve the same opportunities to participate in high school sports and activities as students without disabilities,” said U.S. Attorney Cole Finegan, “We are pleased that CHSAA has agreed to adopt policies that comply with the Americans with Disabilities Act.”
The agreement is not an admission of any violation or liability by CHSAA.
This case was handled by Assistant U.S. Attorneys Julia Prochazka and Zeyen Wu.
Video: https://www.youtube.com/watch?v=Q82cYisLbLs&t=2s
Central Illinois Employee Pleads Guilty to Defrauding Maui JimRead the Press Release
PEORIA, Ill. – A Bradford, Illinois, woman, Erica Hornof, 36, of the 300 block of Enterprise Drive, pleaded guilty on March 20, 2023, to three counts of mail fraud and three counts of wire fraud in connection with a scheme to defraud Maui Jim, a sunglasses manufacturer. Sentencing for Hornof has been scheduled for June 15, 2023, at the U.S. Courthouse in Peoria, Illinois before U.S. District Judge James E. Shadid.
In court before U.S. Magistrate Judge Jonathan E. Hawley, Hornof admitted guilt to all six charges. During the hearing, the government stated that Hornof, a long-term employee of Maui Jim, was a Lead Repair Technician, responsible for fixing sunglasses. As such, she had access to the parts to construct sunglasses. Maui Jim conducted an internal investigation that revealed Hornof had, in fact, been stealing sunglasses parts. She used the stolen parts to assemble sunglasses and sold them to two individuals who then sold them on eBay. The mail fraud charges result from her use of the U.S. Mail Service to send the stolen goods. The wire fraud charges stem from her use of a PayPal account to transfer payments to her Princeville State Bank account. As alleged in the indictment, Hornof defrauded Maui Jim of more than $100,000.
Hornof remains free on bond, pending sentencing.
Hornof faces statutory penalties of up to 20 years’ imprisonment, followed by up to a three-year term of supervised release, and up to a $250,000 fine on each of the six counts.
The case investigation was conducted by the Federal Bureau of Investigation, Springfield Field Office. Criminal Chief Darilynn J. Knauss is representing the government in the prosecution.
Center Line Resident Sentenced in Unemployment Fraud SchemeRead the Press Release
DETROIT – A Center Line woman was sentenced to 18 months in prison today based on her conviction for stealing over $300,000 as part of a wire fraud scheme targeting pandemic unemployment assistance benefits, announced United States Attorney Dawn N. Ison.
Joining Ison in the announcement were James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Irene Lindow, Special Agent in Charge of the Chicago Region of the Department of Labor-Office of the Inspector General.
April Rienstra, 52, was sentenced by United States District Judge Bernard A. Friedman following her November 2022 guilty plea to one count of wire fraud arising from a scheme to defraud the Michigan Unemployment Insurance Agency (MUIA).
According to Court documents, between April 2020 and May 2021, Rienstra defrauded the MUIA by submitting false applications for pandemic unemployment benefits on behalf of herself and others (who paid her a fee). Ultimately, her scheme involved dozens of fraudulent claims and resulted in over $300,000 in losses to the MUIA.
In addition to the 18 months of imprisonment, Rienstra was ordered to pay $318,760 in restitution.
United States Attorney Ison stated, “Enhanced assistance for unemployed workers was a key lifeline for many of our district’s citizens during the pandemic. Unfortunately, those enhanced benefits attracted criminals seeking to exploit the system and enrich themselves at the public’s expense. Our office will remain vigilant in our pursuit of those who cheat the government and their fellow citizens.”
“Ms. Rienstra defrauded a system designed to provide much needed support to individuals who were unemployed because of the pandemic. Her actions potentially prevented those who legitimately needed financial support during difficult times from receiving vital assistance,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “The FBI and our partners are committed to holding those who defraud the government accountable for their crimes.”
“April Rienstra defrauded the State of Michigan Unemployment Insurance Agency of more than $300,000 by filing multiple fraudulent unemployment insurance claims that she was not entitled to. We will continue to work with our law enforcement partners and state workforce agencies to protect the integrity of unemployment insurance benefit programs," said Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.
The case was prosecuted by Assistant United States Attorney Alyse Wu. The investigation was conducted jointly by the FBI and the Department of Labor, Office of Inspector General.Cass County Felon Pleads Guilty to Illegal Possession of an Unregistered FirearmRead the Press Release
MINNEAPOLIS – A Cass County man has pleaded guilty to illegal possession of a short-barreled shotgun, announced U.S. Attorney Andrew M. Luger.
According to court documents, on July 8, 2021, John Jarrod Jones, 44, illegally possessed a 12-gauge short-barreled shotgun. Jones took the firearm into a restroom at the Cedar Lakes Casino and Hotel on the Leech Lake Indian Reservation and hid it behind a garbage can along with a plastic bag containing shotgun shells and a knife. Jones left the restroom and was later arrested in the Casino on unrelated charges.
Because Jones has several prior felony convictions in Hennepin and Cass County, he is prohibited from lawfully possessing any firearms or ammunition. Jones pleaded guilty today in U.S. District Court before Senior Judge Eric C. Tostrud to one count of possession of an unregistered firearm. A sentencing hearing has yet to be scheduled.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Leech Lake Police Department.
Assistant U.S. Attorneys Emily A. Polachek and LeeAnn K. Bell are prosecuting the case.
California Man Charged with Conspiring to Make Death Threats Against Brooklyn-Based JournalistRead the Press Release
Nicholas Welker, also known as “King ov Wrath,” was arrested today in San Jose, California based on a complaint filed in Brooklyn federal court charging him with conspiring to make threatening statements. The complaint charges that Welker, the one-time leader of Feuerkrieg Division (FKD), an international racially or ethnically motivated violent extremist group, posted death threats against a Brooklyn-based journalist (the “Journalist”) in a public online forum and his co-conspirators tweeted the death threats at the Journalist for reporting on the extremist group. Welker is expected to appear in federal district court in the Northern District of California in San Jose this afternoon.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the charges.
“As alleged, Nicholas Welker used threats of violence in an effort to stop a journalist from reporting on the white supremacist hate group that he led. He sought to quell freedom of expression and to intimidate and instill fear in a journalist and the journalist’s employer—a well-known news media organization,” stated United States Attorney Peace. “We will not hesitate to prosecute those who threaten the core values on which our society was founded, including freedom of the press.”
Mr. Peace praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the New York City Police Department, and over 50 other federal, state, and local agencies, and the FBI’s San Francisco Field Office. Mr. Peace also thanked the U.S. Attorney’s Office for the Northern District of California for its assistance, as well as the Estonian Internal Security Service and the Prosecutor’s Office for their valuable support.
“As alleged, Mr. Welker and those he encouraged attempted to silence a journalist with threats of violence. Freedom of both speech and the press are integral to our nation, and we will not allow it to be restricted through violence or intimidation. Today’s action serves as a reminder to anyone willing to attack these rights - the FBI will do everything in our power to fulfill our mission of protecting the American people and upholding the Constitution,” stated FBI Assistant Director-in-Charge Driscoll.
Welker’s threat included an image that featured a gun aimed at the Journalist’s head with the words “Race Traitor” over the Journalist’s eyes and stated, “JOURNALIST F[***] OFF! YOU HAVE BEEN WARNED.” The threat highlighted that the Journalist “Works as a Reporter” at a news media company and is “Responsible for Stalking our Boys for Information.” After Welker posted the threat to an online forum, Welker’s two minor-aged co-conspirators (who were also members of the white supremacist group) tweeted the threat directly at the Journalist’s twitter handle, in the hope that the Journalist would see the death threat and stop reporting.
As alleged in the complaint, Welker was the leader of an extremist group whose members share a common goal of challenging laws, social order, and the government via terrorism and other violent acts. The organization encourages attacks on racial minorities, the Jewish community, the LGBTQ+ community, the U.S. Government, journalists, and critical infrastructure. FKD has members in the United States and abroad.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Welker faces a maximum sentence of five years’ imprisonment.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Ellen H. Sise is in charge of the prosecution with assistance from Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section and EDNY Litigation Analyst Ben Richmond.
The Defendant:
NiCHOLAS WELKER (also known as “King ov Wrath”)
Age: 31San Jose, California
E.D.N.Y. Docket No. 23-MJ-230
Caldwell Woman Sentenced for Conspiring to Distribute Bath Salts and Conspiring to Commit Money LaunderingRead the Press Release
BOISE – Angela Marie Klinkhamer, 44, of Caldwell, was sentenced to 70 months in federal prison for conspiring to distribute controlled substances and conspiring to commit money laundering, U.S. Attorney Josh Hurwit announced today.
According to court records, Klinkhamer and her coconspirators engaged in a lengthy conspiracy to distribute drugs, including bath salts (alpha-PHP or synthetic cathinone). Klinkhamer’s role in the conspiracy involved renting a mailbox where the drugs were shipped from overseas. After the drugs arrived at the mailbox, Klinkhamer distributed the drugs to others. She also collected over $10,000 in drug proceeds for the organization, which she provided to codefendants through bank transactions and crypto currency exchanges. When conducting the financial transactions involving drug proceeds, Klinkhamer took steps to conceal the nature and source of the drug proceeds.
Chief U.S. District Judge David C. Nye also sentenced Klinkhamer to serve three years of supervised release following her prison sentence. Klinkhamer pleaded guilty to the crime on November 28, 2022. Codefendant Laura Denise Russell, 65, of Boise, is scheduled to enter a guilty plea on April 4, 2023. Codefendants Troy Thomas Wheeler, 48, of Meridian, and Michael Robert Osborn, 39, of Boise, are scheduled for trial to begin June 20, 2023.
“Drug trafficking organizations are constantly evolving in how they traffic drugs and launder money, including by using crypto currencies” said U.S. Attorney Hurwit. “This case shows that, despite their best efforts, these criminals cannot outrun law enforcement.”
“Drug trafficking organizations have a devastating impact on our communities, and we are committed to doing everything in our power to disrupt their illegal activities. Our ongoing efforts to dismantle these organizations and bring their members to justice can make a significant impact in reducing their prevalence and keeping our communities safe,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “I commend the agents at both HSI and the IRS for their tireless work and dedication to this important mission.”
“IRS Special Agents are experts in unraveling complex financial transactions and money laundering schemes involving crypto currencies,” said Andy Tsui, Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “This sentencing should send a clear message to drug traffickers that CI and our law enforcement partners are relentless in our mission to dismantle drug trafficking organizations and bring these criminals to justice.”
U.S. Attorney Hurwit credited the cooperative efforts of Homeland Security Investigations, IRS – Criminal Investigation, and the U.S. Postal Inspection Service, which led to the charges.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Bulgarian Woman Charged for Role in Multi-Billion-Dollar Cryptocurrency Pyramid Scheme “OneCoin” and Extradited from Bulgaria to the United StatesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Thomas Fattorusso, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, New York Field Office (“IRS-CI”), announced today the unsealing of charges against IRINA DILKINSKA in connection with her participation in the massive OneCoin fraud scheme. OneCoin, which began operations in 2014 and was based in Sofia, Bulgaria, marketed and sold a fraudulent cryptocurrency by the same name through a global multi-level-marketing (“MLM”) network. As a result of misrepresentations made about OneCoin, victims invested over $4 billion worldwide in the fraudulent cryptocurrency. DILKINSKA was extradited from Bulgaria yesterday and will be presented before United States Magistrate Judge Sarah Netburn later today.
U.S. Attorney Damian Williams said: “Irina Dilkinska, the supposed Head of Legal and Compliance for the OneCoin cryptocurrency pyramid scheme, accomplished the exact opposite of her job title and allegedly enabled OneCoin to launder millions of dollars of illegal proceeds through shell companies. Dilkinska helped perpetuate a wide-ranging scheme with millions of victims and billions of dollars in losses, and she will now face justice for her alleged crimes.”
FBI Assistant Director Michael J. Driscoll said: “As alleged in the charges unsealed today, Dilkinska helped her co-conspirator, Mark Scott, launder approximately $400 million in OneCoin proceeds while she was purportedly OneCoin’s Head of Legal and Compliance. Further, when she learned of Scott’s arrest, she destroyed incriminating documents and sent another co-conspirator incriminating messages. As the actions announced today should demonstrate, the FBI will continue its determination to bring alleged fraudsters like Dilkinska to justice.”
IRS-CI Special Agent in Charge Thomas Fattorusso said: “The charges against Irina Dilkinska are the outcome of the exceptional investigative work of our federal and international law enforcement partners. Those who commit fraud are put on notice today that IRS Criminal Investigation is committed to holding them accountable no matter where they are located.”
According to the allegations in the Superseding Indictment and other filings and statements made in court:[1]
In 2014, RUJA IGNATOVA, a/k/a “the Cryptoqueen,” and KARL SEBASTIAN GREENWOOD co-founded OneCoin,[2] a company based in Sofia, Bulgaria, that marketed a purported cryptocurrency by the same name, which was in fact a fraudulent pyramid scheme. OneCoin operated as a MLM network through which members received commissions for recruiting others to purchase cryptocurrency packages. This MLM structure influenced rapid growth of the OneCoin member network. Indeed, according to OneCoin’s promotional materials, over three million people invested in fraudulent cryptocurrency packages. OneCoin records show that, between the fourth quarter of 2014 and the fourth quarter of 2016 alone, OneCoin generated €4.037 billion in sales revenue and earned “profits” of €2.735 billion.
DILKINSKA was the purported Head of Legal and Compliance for OneCoin, but rather than ensuring that OneCoin complied with the law, DILKINKSA assisted in the creation and management of shell companies in order to launder OneCoin proceeds and to hold property belonging to IGNATOVA. For example, in 2016 and 2017, DILKINSKA helped co-conspirator MARK SCOTT, a former equity partner at a prominent international law firm, launder approximately $400 million in OneCoin proceeds through a series of fake Cayman Islands investment funds operated by SCOTT. Among other things, DILKINSKA used a company named B&N Consult EEOD, which was falsely described as offering “proprietary consulting services, support and software solutions” to its clients and as generating €200 million in 2015 through 2016, to disguise the transfer of millions of dollars as purported “investments” into SCOTT’s funds. In reality, B&N was a shell company that did not generate legitimate income and was used by DILKINSKA to launder OneCoin proceeds. In or around September 2018, DILKINSKA learned of SCOTT’s arrest in connection with his laundering of OneCoin proceeds. Shortly thereafter, DILKINSKA burned incriminating documents, sent co-conspirator KONSTANTIN IGNATOV a text message with a link to a newspaper article about the arrest, and then wrote a series of texts, including, “See this!!!!!”; “Something is going on!!!!!”; and “If this is true I need the mega lawyers for whom [co-conspirator FRANK SCHNEIDER] was talking!!!”
On October 12, 2017, IGNATOVA was charged with OneCoin-related fraud and money laundering charges in the United States District Court for the Southern District of New York, and a federal warrant was issued for her arrest. On October 25, 2017, IGNATOVA traveled on a commercial flight from Sofia, Bulgaria, to Athens, Greece, and has not been seen publicly since. IGNATOVA was added to the FBI’s Top Ten Most Wanted List in June 2022. The FBI is offering a $100,000 reward for information leading to IGNATOVA’s arrest.
* * *
DILKINKSA, 41, of Sofia, Bulgaria, has been charged with one count of conspiracy to commit wire fraud, which carries a maximum potential sentence of 20 years in prison, and one count of conspiracy to commit money laundering, which carries a maximum potential sentence of 20 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the IRS-CI and the FBI, which jointly conducted this investigation with Special Agents from the U.S. Attorney’s Office. Mr. Williams also thanked the United States Marshals Service, the Justice Department’s Office of International Affairs, and Bulgarian authorities.
If you have any information about IGNATOVA’s whereabouts, please contact your local FBI office or the nearest American Embassy or Consulate. Tips can be reported anonymously and can also be reported online at tips.fbi.gov.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Christopher J. DiMase, Nicholas Folly, Juliana N. Murray, and Kevin Mead are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
[2] OneCoin has operated using several corporate entities and d/b/a names, including “OneCoin Ltd.,” “OnePayments Ltd.,” “OneNetwork Services Ltd.,” “OneAcademy,” and “OneLife.” These entities and d/b/a names are referred to collectively here as “OneCoin.”
Buffalo Couple Arrested, Charged with Making, Passing Counterfeit MoneyRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Eric M. Butson, 36, and Catalina Hernandez, 41, both of Buffalo, NY, were arrested and charged by criminal complaint with conspiracy to manufacture and pass counterfeit United States currency. The charges carry a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that between December 2022, and March 2023, Butson and Hernandez are accused of conspiring to manufacture and pass counterfeit money in stores, restaurants, and shops. According to the complaint, on January 10, 2023, Butson and Hernandez used a counterfeit $100 bill to make a purchase at Watson's Chocolates on Elmwood Avenue in Buffalo. Watson's Chocolates reported this incident and provided surveillance video to the United States Secret Service. Subsequent investigation determined that Butson and Hernandez, wearing Covid masks, successfully passed or attempted to pass counterfeit $100 bills, bearing the same serial number of the bill used at Watson’s Chocolates, at multiple businesses including:
- Salsaritas
- Sunshine and Bluebirds
- Elmwood Pet Supplies
- Walgreens Drug Store
- Hydraulic Hearth
- Left Bank Restaurant
- Jim’s Steakout
- Cheesy Chick Café
- Humbert House Restaurant
On February 6, 2023, investigators pulled the trash from the defendants Orlando Street residence, recovering an ink cartridge, a partial counterfeit bill, printer paper with the outlines of bills used to align printing of counterfeit bills, receipts, and bags from businesses on Elmwood Avenue where counterfeit bills were passed, and handwritten addresses of businesses where counterfeit bills were passed. To date, Butson and Hernandez have attempted to pass counterfeit bills at more than 50 businesses in the greater Buffalo area. They are also currently charged in the Towns of Amherst and West Seneca with passing counterfeit bills.
The defendants made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and are being held pending a detention hearing on March, 24, 2023.
The criminal complaint is the result of an investigation by the United States Secret Service, under the direction of Special Agent-in-Charge Jeffrey Burr, Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, and the New York State Police, under the direction of Major Eugene Staniszewski.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Beaufort County Man Sentenced for Tax Evasion and Ordered to Pay $3,097,582 in RestitutionRead the Press Release
CHARLESTON, SOUTH CAROLINA — Michael Sturms, 78, of Bluffton, was sentenced to five years of probation and ordered to pay restitution to the Internal Revenue Service (IRS) after pleading guilty to tax evasion.
Evidence presented to the Court showed that Sturms failed to timely file individual income tax returns with the IRS for tax years 2007 through 2012, and he only filed these delinquent returns in 2014 as part of divorce proceedings from his then-wife. Sturms signed each of these late filed returns, admitting to a significant tax deficiency.
In 2015, the IRS filed a number of federal tax liens in South Carolina and Florida against Sturms and his business entities for taxes owed. On March 9, 2015, the IRS sent Sturms a Final Notice of Intent to Levy in the amount of $2,368,409.94, which included the total taxes, penalties, and interest then due and owing.
Knowing that he had taxes due and owing, Sturms attempted to evade and defeat the payment of income tax by engaging in a series of financial transactions that were designed to hide funds that Sturms received from a large breach-of-contract settlement. These efforts to evade the payment of taxes included Sturms’ creation of a new business checking account in the name of Worldwide Financials, LLC, to deposit $1,181,321.64 of settlement money, a failed attempt to withdraw $1 million in cash from this newly created account, and the transfer of $550,000 of these settlement proceeds to his new wife, which then was used to purchase a residence lien-free in his new wife’s name.
As part of his sentence, United States District Judge Richard M. Gergel ordered defendant to pay $3,097,582 in restitution, which represents the accrued unpaid taxes, interest, and fees owed to the United States.
This case was investigated by the Internal Revenue Service, Criminal Investigation Division. Assistant U.S. Attorney Allessandra Stewart is prosecuting the case.
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Another indicted in connection to armed robbery of AR-rifleRead the Press Release
McALLEN, Texas – Three men have now been charged in connection of a hotel robbery of an AR-variant rifle, announced U.S. Attorney Alamdar S. Hamdani.
A federal grand jury returned a superseding indictment adding Nathan Garza aka Goofy, 27, McAllen, to the robbery charge as well as being a felon in possession of a firearm. He is in custody on related charges and expected to make his initial appearance on the federal indictment before a U.S. magistrate judge in the near future.
Oscar Joel Frias aka OJ, 20, Edinburg, was previously indicted for the robbery and possession of a stolen firearm. Also implicated in connection to the crime was Jahiro Sarmiento Martinez, 29, Edinburg, and charged for illegally possession a firearm as a felon. Frias and Garza are also charged with brandishing firearms during a crime of violence.
On Oct. 13, 2022, Frias and Garza allegedly stole a DPMS Panther Arms AR-Variant rifle at gunpoint from a victim at a motel in Edinburg. The charges allege Frias used a 9mm pistol to commit the robbery. While conducting surveillance the following day, law enforcement observed Martinez loading the stolen AR into a vehicle, according to the allegations. Upon their arrests, law enforcement allegedly discovered multiple firearms within the vehicle.
As convicted felons, Martinez and Garza are prohibited per federal law of possessing firearms or ammunition.
If convicted, Frias and Garza face up to 20 years for the robbery, while Garza and Martinez could receive up to 15 years for the firearms charge. Upon conviction of brandishing a firearm, Frias and Garza would receive a mandatory seven-year-sentence which must be served consecutively to any other prison term imposed. Each conviction also carries a possible fine of up to $250,000.
All three men remain in custody pending further proceedings.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of police departments in Edinburg and Palmview, Texas Department of Public Safety and the Hidalgo County District Attorney’s Office. Assistant U.S. Attorneys Devin V. Walker and Lee A. Fry are prosecuting the case.
This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Allahjuan Calhoun Sentenced for Failure to AppearRead the Press Release
The United States Attorney for the District of Vermont announced that Allahjuan Calhoun, 32, of Yonkers, New York, was sentenced today in United States District Court in Burlington to one year and one day of imprisonment following his guilty plea to a charge that he failed to appear for a final supervised release revocation hearing. United States District Judge Christina Reiss also ordered that Calhoun’s sentence run consecutively to any undischarged term of imprisonment that Calhoun is serving.
According to court records, in 2020 Calhoun pleaded guilty in Vermont to being a felon in possession of a firearm. Judge Reiss sentenced Calhoun to 26 months of imprisonment, to be followed by a two-year period of supervised release. Calhoun completed his prison term in 2021. Soon after, the U.S. Probation Office filed a petition to revoke Calhoun’s supervised release because, among other things, he repeatedly smoked marijuana in violation of his conditions.The court scheduled a final hearing on the motion to revoke Calhoun’s supervised release for March 22, 2022. Although he was aware of the court date, Calhoun failed to appear as required and the court issued a bench warrant for his arrest. Calhoun was arrested on the warrant in late June 2022. On October 27, a grand jury returned a one-count indictment charging Calhoun with failure to appear.
Calhoun is represented by Assistant Federal Defender Mary Nerino. The prosecutor is Assistant U.S. Attorney Gregory Waples.
ADA Settlement Improves Accessibility at West Hartford Acupuncture PracticeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that West Hartford Acupuncture, located at 173 Oakwood Avenue in West Hartford, has entered into a settlement agreement with the United States under the Americans with Disabilities Act. In the agreement, West Hartford Acupuncture has agreed to make its business more accessible to persons with disabilities.
The settlement resolves a complaint filed with the U.S. Department of Justice that claims that West Hartford Acupuncture is not physically accessible to persons with mobility disabilities. Under the terms of the settlement, West Hartford Acupuncture must make numerous changes to its West Hartford building, including making the building’s entrance accessible to persons with mobility disabilities, making its parking ADA-compliant, improving signage, and increasing accessibility inside the building. West Hartford Acupuncture has also agreed to provide ADA training for its staff.
Under federal law, private entities that own or operate places of “public accommodation,” including professional offices of health care providers, hospitals, and other service establishments, are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
“It is critically important that health care services are accessible to all in our community,” said U.S. Attorney Avery. “I applaud the operators of West Hartford Acupuncture for agreeing to make their services more accessible to persons with disabilities, without litigation.”
West Hartford Acupuncture has three years to make the changes required by the agreement and must submit certifications concerning compliance to the U.S. Attorney’s Office every six months until it has fully complied with the agreement.
A copy of the settlement agreement will be found on www.ada.gov.
This matter was handled by Assistant U.S. Attorney Stewart C. Dearing.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Department of Justice Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Monday 20 March 2023
“Suicide Squad” sentenced for trafficking drugs worth over $1.6MRead the Press Release
McALLEN, Texas – Three individuals have been sent to prison for conspiracy to import heroin and fentanyl into the United States from Mexico, announced U.S. Attorney Alamdar S. Hamdani.
Elias Herrera, 31, Liz Jomayra Diaz-Colon, 23, and Jonathan Guemez, 30, all previously pleaded guilty and admitted they admitted they had conspired together to import the drugs into the United States. All are from Nashville, Tennessee.
Today, U.S. District Judge Randy Crane imposed a 87-month term of imprisonment for Herrera to be immediately followed by three years of supervised release. At the hearing, the court heard Herrera had recruited his co-defendants and smuggled heroin and fentanyl for a period of eight months prior to his arrest. In handing down the prison terms, Judge Crane noted Herrera’s extensive involvement in drug smuggling as a recruiter and organizer.
Diaz-Colon and Guemez were previously sentenced to 36 and 87 months in federal prison, respectively, and must serve four years on supervised release.
In 2021, Diaz-Colon, Herrera and Guemez began working with Mexican drug traffickers to coordinate transportation of multiple drug loads into the United States.
On Aug. 20, 2021, Diaz-Colon attempted to pass through a Border Patrol (BP) checkpoint. A K-9 alerted to her vehicle which resulted in the discovery of 4.66 kilograms of heroin concealed in the battery of her Jeep Cherokee.
The following day, Herrera attempted to enter the United States. Authorities also discovered narcotics in his vehicle - 4.76 kilograms of fentanyl in the car’s battery.
Guemez also attempted to bring drugs into the country. Law enforcement was able to seize 3.94 kilograms of heroin from his vehicle.
The investigation connected all three people. It revealed they had been communicating with each other through WhatsApp, referring to themselves as the “Suicide Squad.”
At the time of their pleas, they admitted they had conspired together to import a total of 8.6 kilograms of heroin and 4.76 kilograms of fentanyl into the United States. The drugs have an estimated street value of approximately $1,622,880.
Herrera will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Eliza Carmen Rodriguez prosecuted the case.
Walker Man Pleads Guilty to Federal Charges in Connection with Interstate Transmission of a Threat to Injure Florida CongresswomanRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that Charles T. Germany, age 52, of Walker, Louisiana, pled guilty before Chief Judge Shelly D. Dick to interstate transmission of a threat to injure another.
According to admissions made during his plea, on or about May 27, 2022, in the Middle District of Louisiana, Germany knowingly placed a telephone call from his home in Walker, Louisiana, to a member of the House of Representatives in Florida containing a true threat to injure said member. During the call, he left a recorded voice message which was viewed by the member and their staff as a true threat.
This matter was investigated by the United States Capitol Police, the Federal Bureau of Investigation, and the Livingston Parish Sheriff’s Office and prosecuted by Assistant United States Attorney Jennifer M. Kleinpeter with the assistance of Trial Attorney Kevin Nunnally of the Department of Justice’s Counterterrorism Section.
United States Seeks Preliminary Injunction Against Denka Performance Elastomer to Immediately Reduce Chloroprene EmissionsRead the Press Release
Today, the Department of Justice, on behalf of the Environmental Protection Agency (EPA), filed a motion for preliminary injunction under the Clean Air Act (CAA) requesting that the court order Denka Performance Elastomer LLC (Denka) to require significant pollution controls to reduce chloroprene emissions, a pollutant that EPA has determined to be a likely carcinogen. The request for immediate relief by EPA and the Justice Department follows the United States’ complaint filed on Feb. 28, alleging an imminent and substantial endangerment to the communities surrounding the facility as a result of Denka’s manufacturing operations.
The Clean Air Act section 303 imminent and substantial endangerment lawsuit is currently pending in the U.S. District Court for the Eastern District of Louisiana.
“Today’s motion asks the court to require Denka to take strong action to protect neighboring communities from the urgent dangers caused by its harmful emissions,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This action shows our determination to address environmental justice concerns of overburdened communities and to protect children living and studying today near this facility.”
“All communities deserve to breathe fresh, clean air; it is one of EPA’s top priorities as we work to protect human health and the environment,” said EPA Administrator Michael S. Regan. “This is another action that sends a clear message that the Biden-Harris Administration is committed to the health and safety of St. John the Baptist Parish, and I will continue to pledge that EPA will use all legal remedies available to reduce harmful air pollution in this community.”
“As Regional Administrator, I am committed to reducing exposure to chloroprene in St. John the Baptist Parish,” said Administrator Dr. Earthea Nance of EPA Region 6. “Transparent engagement with the community is a top priority because people who live near Denka deserve to understand the purpose of the motion filed today and what EPA hopes to achieve by bringing this Clean Air Act Imminent and Substantial Endangerment case.”
Denka’s facility, located in St. John the Baptist Parish, Louisiana, manufactures neoprene, a flexible, synthetic rubber used to produce common goods like wetsuits, beverage cozies, laptop sleeves, orthopedic braces, and automotive belts and hoses. Chloroprene is a liquid raw material used to produce neoprene that is emitted into the air from various areas at the facility.
In 2010, EPA published its peer-reviewed assessment of chloroprene that concluded it is “likely to be carcinogenic to humans.” Approximately 20% of the total population living within two-and-a-half miles of Denka are children under the age of 18, and between 800-1,000 are children under the age of five. Children under the age of 16 are particularly vulnerable to mutagenic carcinogens like chloroprene. Denka’s chloroprene’s emissions reach more than 300 young children who attend the 5th Ward Elementary School, located within approximately 450 feet of Denka’s facility. Additionally, 1,200 children who attend East St. John High School, located about a mile-and-a-half north of Denka, are also exposed to the facility’s chloroprene emissions.
For more information on EPA’s actions to reduce chloroprene emissions from the Denka facility: www.epa.gov/la/laplace-st-john-baptist-parish-louisiana.
United States Files Complaint Alleging that Rite Aid Dispensed Controlled Substances in Violation of the False Claims Act and the Controlled Substances ActRead the Press Release
WASHINGTON – The Justice Department announced on March 13, 2023, that the United States filed a complaint in intervention in a whistleblower lawsuit brought under the False Claims Act (FCA) against Rite Aid Corporation and various subsidiaries (collectively Rite Aid) alleging that Rite Aid knowingly filled unlawful prescriptions for controlled substances. In addition to alleging claims under the FCA, the government’s complaint also alleges violations of the Controlled Substances Act (CSA). Rite Aid is one of the country’s largest pharmacy chains, with over 2,200 pharmacies in 17 states.
“The Justice Department is using every tool at our disposal to confront the opioid epidemic that is killing Americans and shattering communities across the country,” said Attorney General Merrick B. Garland. “That includes holding corporations, like Rite Aid, accountable for knowingly filling unlawful prescriptions for controlled substances.”
“We allege that Rite Aid filled hundreds of thousands of prescriptions that did not meet legal requirements,” said Associate Attorney General Vanita Gupta. “According to our complaint, Rite Aid’s pharmacists repeatedly filled prescriptions for controlled substances with obvious red flags, and Rite Aid intentionally deleted internal notes about suspicious prescribers. These practices opened the floodgates for millions of opioid pills and other controlled substances to flow illegally out of Rite Aid’s stores.”
“The opioid crisis has exacted a heavy toll on communities across the United States,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s complaint is an important reminder that the Justice Department will hold accountable any individuals or entities, including pharmacies, that fueled this terrible crisis.”
“Pharmacies, physicians, corporations, and other health care entities that have contributed to the proliferation of opioids in our communities and the tragic loss of life from overdose deaths must answer for their role in the crisis we now face,” said First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio. “This complaint is a continuation of the Justice Department’s commitment to hold accountable those entities that aggravated and profited from the opioid crisis.”
The government’s complaint alleges that, from May 2014 through June 2019, Rite Aid knowingly filled at least hundreds of thousands of unlawful prescriptions for controlled substances that lacked a legitimate medical purpose, were not for a medically accepted indication, or were not issued in the usual course of professional practice. These unlawful prescriptions included, for example, prescriptions for the dangerous and highly abused combination of drugs known as “the trinity,” prescriptions for excessive quantities of opioids, such as oxycodone and fentanyl, and prescriptions issued by prescribers whom Rite Aid
pharmacists had repeatedly identified internally as writing illegitimate prescriptions.The government alleges that Rite Aid pharmacists filled these prescriptions despite clear “red flags” that were highly indicative that the prescriptions were unlawful. The government further alleges that Rite Aid not only ignored substantial evidence from multiple sources that its stores were dispensing unlawful prescriptions, including from certain pharmacists, its distributor, and its own internal data, but compounded its failure to act by intentionally deleting internal notes about suspicious prescribers written by Rite Aid pharmacists and directing district managers to tell pharmacists “to be mindful of everything that is put in writing.” By knowingly filling unlawful prescriptions for controlled substances, the government alleges that Rite Aid violated the CSA and, where Rite Aid sought reimbursement from federal healthcare programs, also violated the FCA.
Along with Rite Aid Corporation, the government’s complaint names as defendants the following Rite Aid subsidiaries: Rite Aid Hdqtrs, Corp.; Rite Aid of Connecticut, Inc.; Rite Aid of Delaware, Inc.; Rite Aid of Maryland; Rite Aid of Michigan; Rite Aid of New Hampshire; Rite Aid of New Jersey; Rite Aid of Ohio; Rite Aid of Pennsylvania; and Rite Aid of Virginia.
“The action supported today by the Drug Enforcement Administration (DEA) should serve as a warning to those in the pharmacy industry who choose to put profit over customer safety,” said Special Agent in Charge Orville O. Greene of the DEA.
“Pharmacies are required to ensure prescription drugs are only dispensed based on valid prescriptions,” said Special Agent in Charge Maureen Dixon of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG). “Prescriptions which are not medically necessary, and not for a medically accepted indication, will not be paid for by Medicare and Medicaid. HHS-OIG will continue to work with our law enforcement partners and the Department of Justice’s Civil Division to recover improperly paid funds through the FCA.”
Whistleblowers Andrew White, Mark Rosenberg, and Ann Wegelin, who all previously worked for Rite Aid at various pharmacies, filed an action in October 2019 under the qui tam provisions of the FCA. Those provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over the lawsuit, as it has done here in part. Those who violate the Act are subject to treble damages and applicable penalties.
The case is captioned United States ex rel. White et al. v. Rite Aid Corp., et al., No. 1:21-cv-1239 (N.D. Ohio).
The United States’ intervention in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Northern District of Ohio. The DEA Cleveland Field Division, FBI Cleveland Field Office, and HHS-OIG provided substantial assistance in the investigation.
The United States is represented in this matter by Senior Trial Counsel Christopher Wilson of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Patricia Fitzgerald and Elizabeth Berry for the Northern District of Ohio.
The Justice Department is committed to holding responsible those who have fueled the opioid crisis by violating the law.
Last week, the Associate Attorney General announced the creation of the Opioid Epidemic Civil Litigation Task Force, which formalizes and enhances coordination of the Department’s existing work and will consider new initiatives. Because of the scope and duration of the crisis, the Task Force includes U.S. Attorneys’ Offices, the Civil Division’s Consumer Protection Branch and Commercial Litigation Branch (Fraud Section), the Drug Enforcement Administration, and other Department components.
The Task Force will steer the Department’s civil litigation efforts involving actors alleged to have contributed to the opioid epidemic, including by diverting prescription opioids.
The claims asserted against defendants are allegations only and there has been no determination
of liability.U.S. Attorney’s Office Files Lawsuit Against Roosevelt Care Centers to Enforce Employment Rights Under the ADARead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office today filed a lawsuit in U.S. District Court for the District of New Jersey charging Roosevelt Care Centers for violating Title I of the Americans with Disabilities Act (ADA), U.S. Attorney Philip R. Sellinger announced.
The lawsuit alleges that Roosevelt Care Centers, a long-term care facility operated by the Middlesex County Improvement Authority, unlawfully terminated a dietary worker whose disability inhibited her ability to lift objects heavier than 20 pounds.
“No one should be denied their right to work because of a disability,” U.S. Attorney Philip R. Sellinger said. “The Americans with Disabilities Act was enacted to prohibit employers from denying employment to people with disabilities without making a reasonable accommodation. The U.S. Attorney’s Office is committed to protecting the civil rights and ensuring equal employment opportunities for all individuals with disabilities.”
Before sustaining an injury that caused the permanent lifting impairment, the employee had been successfully working at Roosevelt Care Centers for approximately 18 years and remained able to perform the essential functions of her position. Nonetheless, Roosevelt Care Centers terminated the dietary worker’s employment due to her disability without engaging in an interactive process to provide her with a reasonable accommodation.
Title I of the ADA prohibits employers from discriminating against a qualified individual on the basis of disability in regard to the hiring, advancement or discharge of employees; employee compensation; and other terms, conditions, or privileges of employment. An employer may not demote, terminate, or deny employment opportunities to an employee who is otherwise qualified if the demotion or termination is based on the need to make reasonable accommodations for the employee.
This matter was handled by the U.S. Attorney’s Civil Rights Division based on a referral from the Newark Area Office of the Equal Employment Opportunity Commission. U.S. Attorney Sellinger created a Civil Rights Division last year with the goal of protecting and upholding the civil rights of those in our community.
Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD).
The government is represented by Assistant U.S. Attorney Thandiwe Boylan of the Civil Rights Division in Newark.
The complaint is an allegation of unlawful conduct. The allegation must still be proven in federal court.
roosevelt.complaint.pdfU.S. Attorney’s Office Collects More Than $36 Million Dollars in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
BUFFALO, NY - U.S. Attorney Trini E. Ross announced today that the Western District of New York collected $36,265,598.00 in criminal, civil and forfeiture actions in Fiscal Year 2022. Of this amount, $7,484,121.00 was collected in criminal actions and $28,781,477.00 was collected in civil actions. As a result, over $7,000,000 was given to victims of crime in the past year, while $964,621.00 was provided as aid to state and local law enforcement agency partners who worked hand in hand with the office on criminal cases.
Additionally, the Western District of New York worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $10,527,064.89 in cases pursued jointly by these offices.
I making the announcement, U.S. Attorney Ross specifically credited the work done by the Asset Recovery Division, under the leadership of Chief Kevin D. Robinson and Deputy Chief Grace Carducci. “This Office is focused on combating all crime, in particular those crimes involving violence, racism and bigotry, use of firearms, exploitation of women and children, and fraud,” stated U.S. Attorney Ross. “At the same time, we are focused on making sure that justice is fair and even handed. Everyone deserves to live and work in an environment that is safe, and your rights guaranteed under the law are afforded to you. In addition to combating crime, we seek to deprive criminals of those proceeds generated through their illegal activity, and to collect on behave of the victims of crime. Our goal is to make all victims of crime whole.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
In addition to recovering funds, more than 50 dangerous firearms and 1,800 rounds of ammunition were forfeited in FY 2021 as instrumentalities of criminal conduct in drug and violent gang cases. Forty Computers and electronic media devices—most related to child exploitation cases—were also forfeited.
The following cases are examples of successful forfeiture and affirmative civil enforcement cases concluded this past year in the Western District of New York:
- In April 2022, the district recovered $ $16.27 million as part of a civil forfeiture settlement in the United States v. 7405 Morgan Road, et al. case.
- In March 2022, the district recovered approximately $3.3 million as part of a criminal forfeiture settlement and $102,952.77 in court ordered restitution in the United States v. Christopher Parris case. Christopher Parris solicited and caused others to solicit various medical supply companies and governmental entities for orders of scarce PPE. Parris knowingly misrepresented his access to, and ability to obtain and deliver on time, vast quantities PPE.
- In December 2022, the district recovered approximately $277,500 in criminal forfeiture as a result of a jury trial in the United States v. Michael Rech case. Michael Rech submitted a fraudulent PPP loan application and received funds that he was not otherwise entitled to receive.
- In June 2022, the district recovered $600,000 from James A. Sakr, M.D., an ear, nose, and throat doctor based in Dansville, NY, to resolve allegations that Dr. Sakr fraudulently billed Medicare and Medicaid for procedures that were not medically necessary or that he did not perform.
- In August 2022, the district entered into a settlement for $950,000 with Elderwood, a Buffalo-based senior care company, to resolve allegations that Elderwood submitted false claims for payment from Medicare and Medicaid. Between August 1, 2013, and December 31, 2018, Elderwood submitted, or caused to be submitted, claims for payment to Medicare for physical therapy, occupational therapy, and speech therapy services that it knew were medically unnecessary. The submission of these medically unnecessary claims also resulted in Elderwood receiving artificially inflated payments from Medicaid.
- In February 2022, the district recovered $970,000 from Nightingale Corporation to resolve allegations under the False Claims Act. Nightingale is a manufacturer of office seating and furniture, which sells its products to various federal government agencies. In December 2019, Nightingale was awarded a General Services Administration (GSA) contract to supply office chairs to various federal agencies, including the Department of Defense. The contract required that Nightingale produce the chairs in the United States. The Government alleged that during the bidding process, Nightingale falsely represented to the GSA that it would produce the chairs at its Tonawanda, NY, location. Based on that representation, Nightingale was awarded the contract. However, between February 2020 and April 2021, Nightingale did not produce the chairs in Tonawanda or elsewhere in the United States, but rather the chairs were produced in Canada.
Two of Four Defendants Sentenced in Fentanyl ConspiracyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a Dumont, Minnesota, man and a Sisseton, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on March 14, 2023.
Jevon Joseph Mcleod, a/k/a “Buddy Traffick”, 32, was sentenced to 40 years in federal prison, followed by four years of supervised release. Tiarah Grace Bissonette, 25, was sentenced to four years and nine months in federal prison, followed by four years of supervised release. They were also both ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Mcleod and Bissonette were indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in July of 2022. Mcleod pleaded guilty on December 5, 2022, and Bissonette pleaded guilty on March 14, 2023, directly preceding the sentencing hearing.
McLeod was the leader of a conspiracy in South Dakota to obtain pills containing fentanyl from out of state and distribute them in the Northeastern area of the state. McLeod recruited Bissonette and others to assist him in selling thousands of pills during the conspiracy. Bissonette obtained pills weighing a total of over 40 grams from McLeod and sold them to others.
The other two defendants are scheduled for trial on June 6, 2023.
This case was investigated by the U.S. Department of Interior - Bureau of Indian Affairs, South Dakota Department of Criminal Investigation, and the Roberts County Sheriff’s Office. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Mcleod was immediately remanded to the custody of the U.S. Marshals Service, while Bissonette was given one day to self-report to the U.S. Marshal Service.
Two Men Sentenced for Role in Aggravated AssaultRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced two South Dakota men convicted of Assault Resulting in Serious Bodily Injury. The sentencing took place on March 14, 2023, in Aberdeen, South Dakota.
Cody Nicolas Gill, age 33, from Waubay, South Dakota, and Jesse Burton Robert Hopkins, Sr., a/k/a JJ, age 36, from Sioux Falls, South Dakota, were each sentenced to three years and nine months in federal prison, followed by three years of supervised release. Hopkins was ordered to pay a $1,000 fine. They were each ordered to pay $100 as a statutorily required special assessment to the Federal Crime Victims Fund.
Gill and Hopkins were indicted for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury by a federal grand jury in October of 2022. Gill and Hopkins pleaded guilty to Assault Resulting in Serious Bodily Injury on December 12, 2022.
According to court documents, in late July of 2022, in Day County, South Dakota, Gill and Hopkins committed an aggravated assault against the victim. Gill and Hopkins jumped the victim for no reason, punching and kicking the victim while on the ground. The victim sustained serious injuries to his jaw, among other injuries, as a result of the assault.
This case was investigated by the FBI and the Sisseton-Wahpeton Oyate Sioux Tribe’s Law Enforcement. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Gill and Hopkins were remanded to the custody of the U.S. Marshals Service to continue serving their sentences.
Two Fresno Women Indicted for Fentanyl Distribution ConspiracyRead the Press Release
FRESNO, Calif. — On March 17, 2023, a three-count indictment was unsealed charging Genevra Winton, 51, and Shannon Bargas, 51, both of Fresno, with charges related to a conspiracy to distribute fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on March 20, 2023, law enforcement officers executed search warrants at Winton’s residence and elsewhere. After the searches, Winton and Bargas were charged with conspiring to distribute fentanyl, Bargas was charged with distributing fentanyl pills, and Winton was charged with being a felon in possession of a firearm. Winton was convicted of a felony in 2010 and is prohibited from possessing a firearm.
This case is the product of an investigation by FORT, a team focused on investigating fentanyl overdose cases and composed of officers from Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Winton and Bargas face up to 20 years in prison and a fine of up to $1 million for the fentanyl distribution conspiracy. Bargas faces up to 20 years in prison and a fine of up to $1 million for fentanyl distribution. Winton faces a maximum statutory penalty of 15 years in prison and a fine up to $250,000 for the felon in possession of a firearm charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Two Colorado Men Arrested and Facing Federal Drug Trafficking and Firearm Charges in Southern UtahRead the Press Release
Salt Lake City, Utah – A federal grand jury in Utah returned an indictment charging two Colorado men for possession of illicit drugs with the intent to distribute and carrying a firearm in relation to the crime.
According to court documents, Dylan Kelly, 19, of Grand Junction, Colorado, and Navin Daryan Wright, 20, also a Colorado resident, are each charged with possession of fentanyl with intent to distribute and carrying a firearm during and in relation to a drug trafficking crime in January. On March 15, 2023, Wright was arrested in Grand Junction and had his initial appearance before a U.S. Magistrate Judge. Kelly had his initial court appearance March 20, 2023, before a U.S. Magistrate Judge for the District of Utah in St. George.
U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
The case is being investigated by the Utah Department of Public Safety (DPS); Utah Highway Patrol (UHP) and State Bureau of Investigation (SBI).
Assistant U.S. Attorney, Brady Wilson, of the District of Utah, Southern Region is prosecuting 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.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.Timber Lake Woman Sentenced for Voluntary ManslaughterRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Timber Lake, South Dakota, woman convicted of Voluntary Manslaughter. The sentencing took place on March 13, 2023.
Brenna Low Dog, age 37, was sentenced to eight years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Low Dog was indicted for Second Degree Murder by a federal grand jury in February of 2022. She pleaded guilty on December 8, 2022.
On January 14, 2022, Low Dog and her boyfriend got into a verbal argument. Low Dog reported to law enforcement that her boyfriend pushed her down, struck her three times in the arms with his fists, and pulled her hair. Low Dog stabbed her boyfriend once in the chest with a knife that had a five-inch serrated blade, and he died as a result.
This case was investigated by the Dewey County Sheriff’s Office, the Cheyenne River Sioux Tribe Law Enforcement Services, and the FBI. Assistant U.S. Attorney Jay Miller prosecuted the case.
Low Dog was immediately remanded to the custody of the U.S. Marshals Service.
Three Consecutive Life Sentences for Man Who Participated in the Murder of Three People Including A Federal WitnessRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Kevin Coles, age 37, of New York and Hagerstown, Maryland, was sentenced to three consecutive terms of life imprisonment for his role in the June 25, 2016, murders of three individuals in Mercersburg, Franklin County, one of whom was cooperating with state and federal drug investigators. The consecutive sentences were imposed by United States District Court Judge Christopher C. Conner, who also sentenced Coles to multiple additional consecutive terms of imprisonment amounting to 35 additional years for various firearms convictions.
According to United States Attorney Gerard M. Karam, Coles’ conviction was the result of a six-year investigation into murders of three individuals that occurred on June 25, 2016, on a property along Welsh Run Road in Mercersburg, Franklin County. When Pennsylvania State Police officers were called to the crime scene, they found the bodies of Wendy Ann Chaney, 39, Hagerstown, Md, Brandon Cole, 47, Fayetteville, PA, and Phillip Matthew Jackson, 36, Mercersburg, PA, in a barn on victim Jackson’s property. All were shot. The three victims had their hands zipped-tied behind their backs and had been set on fire. Jackson and Cole were shot once in the head. Chaney was shot twice, once in the back and once in the neck. Wendy Chaney and Brandon Cole were already dead when the police responded to the scene. Phillip Jackson was transported to York Hospital where he died shortly after arrival.
Coles was tried by a jury in Harrisburg in April 2022, and convicted on all 16 counts of the indictment, to include interstate travel to commit murder, murder of a witness, and drug trafficking offenses. The evidence established that Wendy Chaney was in a relationship with Kevin Coles and a coconspirator and had been previously assisting both with their drug distribution operation. Coles, the coconspirator, and co-defendant Devin Dickerson learned that Chaney was cooperating with federal authorities and contracted for her to be murdered. Co-defendants Jerell Adgebesan and Kenyatta Corbett recruited members of a Baltimore based gang known as the Black Guerilla Family and others from Baltimore to travel to the Jackson property to kill Wendy Chaney. The killers were promised that they could take as payment $20,000 that was to be in a safe in the barn and any drugs and firearms that they could locate on the Jackson property. Once there, the killers encountered not only Wendy Chaney but also Brandon Cole and Phillip Jackson. Chaney was killed to protect the drug trafficking activities of Coles, and his co-conspirators. Jackson and Cole were murdered to prevent them from being witnesses to the crimes of violence that were committed at the Jackson property. The killers never found any money on the property but stole some drugs and firearms.
The following individuals were charged along with Coles as a result of the investigation:
- Devin Dickerson, age 31, Hagerstown, pleaded guilty to conspiracy to distribute heroin and crack cocaine and is awaiting sentencing;
- Kenyatta Corbett, age 38, Hagerstown, pleaded guilty to Hobbs Act robbery and to being an accomplice to the use of a firearm during Hobbs Act robbery and is awaiting sentencing;
- Michael Buck, age 30, Hagerstown, pleaded guilty to Hobbs Act robbery and to being an accomplice to the use of a firearm during Hobbs Act robbery and is awaiting sentencing;
- Nicholas Preddy, age 29, Baltimore, pleaded guilty to attempting to kill a witness and is awaiting sentencing;
- Johnnie Jenkins-Armstrong, age 22, Baltimore, pleaded guilty to Hobbs Act robbery and to being an accomplice to the use of a firearm during Hobbs Act robbery and is awaiting sentencing;
- Terrance Lawson, age 31, Baltimore, sentenced to time served for attempting to intimidate a witness;
- Tyrone Armstrong, age 30, Baltimore, sentenced to time served for attempting to intimidate a witness; and
- Christopher Johnson, age 31, Baltimore, Maryland, pleaded guilty to multiple counts including murder for hire and is awaiting sentencing;
- Mark Johnson, 35, Baltimore, Maryland, pled guilty to obstructing the grand jury’s investigation and was sentenced to 110 months’ imprisonment;
- Llesenia Woodard, 46, Hagerstown, Maryland, pled guilty to providing false testimony to the grand jury investigating the murders and is awaiting sentencing
- Jerell Adgebesan, age 35, of Baltimore and Hagerstown, Maryland, pled guilty in June 2022 to Hobbs Act robbery and to being an accomplice to the use of a firearm during Hobbs Act robbery. Judge Conner sentenced Adgebesan in February 2023 to life imprisonment and a consecutive 10-year term of imprisonment;
- Torey White, 32, Waynesboro, PA, and Florida, was indicted on multiple counts to include murder of a witness, conspiracy to commit murder, robbery, and firearms offenses. His trial is currently scheduled to commence in May 2023.
- Yolanda Diaz, 31, Hagerstown, was indicted on multiple counts of perjury and obstruction of justice based upon her testimony at the Coles trial. Her trial is currently scheduled for May 2023.
Joshua Davis, age 30, previously pled guilty to participating in the conspiracy to locate and kill an individual believed to be cooperating with federal authorities in the investigation of the triple murders. Davis was sentenced to serve 100 months’ imprisonment.
The following federal, state and local law enforcement agencies participated in the investigation: Drug Enforcement Administration Harrisburg Resident Office; Pennsylvania State Police, Chambersburg; Pennsylvania State Police, Troop H; Franklin County Drug Task Force; Franklin County Adult Probation; Pennsylvania State Probation and Parole; Hagerstown Police Department, Criminal Investigation Division; Drug Enforcement Administration, Hagerstown Resident Office; Washington County Narcotics Task Force; Drug Enforcement Administration, Baltimore District Office, Strike Force Group 1; Maryland State Police Homicide Unit; Baltimore Police Department Narcotics, Fugitive And Homicide Units; Baltimore County Police Department Narcotics and Gang Unit; Federal Bureau of Investigation Evidence Management Unit, Quantico, VA; US Marshal’s Service Harrisburg, PA and Phoenix, AZ; Franklin County District Attorney’s Office; United States Attorney’s Office, District Of Maryland; and the Washington County State’s Attorney’s Office.
Judy Fernandez, Manager of Analytic Services at LexisNexis Special Services, Inc., (LNSSI) provided expert assistance to investigators and the prosecutors in the areas of analysis, support, and the rendering of her expert opinion.
Assistant United States Attorney William A. Behe, Organized Crime Drug Enforcement Task Force, and Senior Litigation Counsel Michael Consiglio are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This prosecution is also part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) identified as “Retribution for Welsh Run.” OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, 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.
All persons charged are presumed to be innocent unless and until found guilty in court.
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Suburban Man Found Guilty of Robbing Three Banks and Additional Firearms ChargesRead the Press Release
CHICAGO — A federal jury has found a suburban Chicago man guilty of three counts of bank robbery, three counts of using a firearm during a crime of violence, conspiracy to commit bank robbery, possessing a firearm as a convicted felon, and conspiracy to transfer a firearm to a felon.
As revealed at trial, between May 11 and May 31, 2018, JAMES D. WILLIAMS, 46, of Bartlett, along with a co-conspirator, robbed three banks: Second National Bank located at 323 East Norris Drive, Ottawa on May 11, Norstates Bank located at 5384 Grand Avenue, Gurnee on May 21, and Aurora Bank and Trust located at 2287 West Galena Boulevard, Aurora, on May 31. Prior to the first robbery, Williams obtained an AK-47-style firearm, which he used in each of the three robberies. A day after the second robbery, Williams’ wife, Jessica Sweeney Williams, purchased a handgun. Williams used that handgun, as well as the rifle, in the third robbery. During the third robbery, Williams discharged one of the firearms but did not cause any injuries. Williams and his co-conspirator used disguises during each robbery and traveled in vehicles that were either rented or borrowed.
Sentencing has not yet been set before U.S. District Court Judge John Robert Blakey. Williams faces a sentence of at least 24 years, up to life, in federal prison. Williams’ co-conspirator, Alexis T. Handelman, 25, of Bartlett pled guilty to committing the bank robberies and is awaiting sentencing. Williams’ wife, Jessica Sweeney Williams, pled guilty to providing a firearm to Williams and was sentenced to 24 months in prison by Judge Blakey.
The verdict is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois and Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the Federal Bureau of Investigation. Valuable assistance was provided by Ottawa Police Department, Gurnee Police Department, Aurora Police Department, and Palatine Police Department. The government was represented by Assistant U.S. Attorneys Scott Edenfield and Jasmina Vajzovic.
Stakeholders of the China Super Buffett in Mobile sentenced and forfeit over $1.5 Million in Assets for Harboring AliensRead the Press Release
MOBILE, AL – Former stakeholders of the China Super Buffet in Mobile, Alabama, were sentenced for harboring aliens who were illegally employed at their restaurant and subjected to hefty forfeiture orders.
Zheng Kong Zheng, 57, of Mobile, was sentenced on the charge of harboring aliens to two years’ probation, with the first six months on home confinement with electronic monitoring. Zheng was also ordered to forfeit over $500,000 and five separate residential properties, all obtained with illegal proceeds from harboring aliens.
De Yun Wang, 54, a Chinese national, was sentenced to one year probation on the charge of harboring aliens. She was also ordered to forfeit over $500,000 and five residential properties obtained with illegal proceeds from harboring aliens.
Kong Mei Zheng, 55, a Chinese national, sentenced for harboring aliens to one year probation, ordered to forfeit over $200,000 and a residential property obtained with illegal proceeds from harboring aliens.
According to court documents, Zheng Kong Zheng, and his sister, Kong Mei Zheng, owned and operated the China Super Buffet in Mobile until late 2019. Since at least 2014, the restaurant unlawfully employed aliens and housed them at a harboring residence owned by Zheng Kong Zheng and De Yun Wang near the restaurant in Mobile. The utilities and taxes were paid from restaurant bank accounts and the illegal workers resided there free of charge while they worked at the restaurant.
The restaurant operated for several years by transporting illegal workers in a passenger van between the harboring residence and the restaurant. The restaurant concealed the illegal employment practice and the presence of the illegal workers by paying them in cash. Their earnings were not reported to the Alabama Department of Labor while lawful workers’ wages were reported.
In September 2019, Kong Mei Zheng transferred her interest in the restaurant to her brother, Zheng Guo Zheng, who became the sole owner. Despite the ownership change, the unlawful harboring and employment of aliens continued. Zheng Guo Zheng’s wife, Yan Jiao Zhuo, helped manage the restaurant after her husband became the new owner and operator. While Zheng Guo Zheng was the owner, the restaurant applied for funding under Small Business Administration programs designed to assist businesses weather the COVID-19 pandemic. The restaurant’s applications contained misrepresentations, including the omission of its illegal employees. The restaurant received a total of $445,307 in SBA loans based on the false information it had provided in its applications.
Co-defendants Zheng Guo Zheng and Yan Jiao Zhuo were previously sentenced in November 2022. Zheng Guo Zheng, a 67-year-old Chinese national, was sentenced to 5 years’ probation for illegal harboring of aliens, ordered to forfeit over $15,000 in illegal proceeds, the passenger van used to transport workers, fined $40,000, and ordered to pay full restitution of $445,307 to the Small Business Administration. In July 2022, Yan Jiao Zhuo, a 58-year-old Chinese national was sentenced to time-served for unlawful employment of aliens.
In total, the defendants entered into plea agreements with the United States in which they agreed to forfeit over $1.5 million in assets, including cash and the estimated value of the residences constituting illegal proceeds stemming from their convictions for harboring and the restaurant’s illegal labor practices.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
Homeland Security Investigations, U.S. Customs and Border Protection - Office of Field Operations, the U.S. Small Business Administration - Office of Inspector General, Internal Revenue Service – Criminal Investigation, and the U.S. Department of Labor - Office of Inspector General investigated the case.
Assistant U.S. Attorneys Sinan Kalayoglu, Kasee S. Heisterhagen, and Justin D. Kopf prosecuted the case on behalf of the United States.
St. Louis County Woman Sentenced to a Year in Prison for Check Scheme that Used Bank Information from Stolen MailRead the Press Release
ST. LOUIS – A woman from Hillsdale, in St. Louis County, Missouri was sentenced Monday to a year in federal prison for engaging in a scheme to deposit tens of thousands of dollars’ worth of counterfeit checks created with information from stolen U.S. mail.
U.S. District Judge Audrey G. Fleissig also ordered Tyra G. Robinson, 21, of Hillsdale, to repay victims $10,859. Robinson will be on supervised release for five years after her release from prison.
In her guilty plea in November to four felony counts of bank fraud, Robinson admitted depositing or attempting to deposit counterfeit checks totaling more than $40,000. She received at least $22,000 via the scheme from at least ten financial institutions. She also admitted possessing counterfeit checks belonging to at least ten victims.
Robinson would deposit counterfeit checks typically ranging from $4,0000 to $10,000 into bank accounts. The information Robinson used on the counterfeit checks came from checks stolen from the U.S. mail. She then withdrew the proceeds before the banks realized the checks were bogus. Robinson recruited bank account holders on Facebook and Instagram with promises of kickbacks if they let Robinson deposit the checks into their accounts. Co-conspirators also recruited account holders for Robinson.
On March 10, 2022, St. Louis Metropolitan Police Department officers attempted to pull over a vehicle that Robinson was driving because it was wanted in connection with a burglary. Robinson refused to pull over and fled at a high rate of speed. While trying to get on the highway, she struck another vehicle, causing significant damage to that vehicle. After the crash, officers found a purse with about $11,527 in cash, a gun and multiple bank cards and checks in names other than Robinson's inside her vehicle. Police turned over the evidence to the U.S. Postal Inspection Service who conducted a financial investigation of Robinson’s activity.
“Through her mail theft scheme, the defendant was able to steal thousands of dollars from hard-working postal customers, some of whom continue to deal with the financial repercussions caused by her actions,” said Ruth M. Mendonça, Inspector in Charge of the U.S. Postal Inspection Service’s Chicago Division. “The swift joint investigation by the U.S. Postal Inspection Service and the St. Louis Metropolitan Police Department put an end to her illegal activity. Our agencies will continue to work together to bring justice to victimized citizens of St. Louis.”
The case was investigated by the U.S. Postal Inspection Service and the St. Louis Metropolitan Police Department. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.
Southern California Man Pleads Guilty to Trafficking Fentanyl and Heroin in Bakersfield and FresnoRead the Press Release
FRESNO, Calif. — Luis Noe Hernandez Rojo, 34, of Orange, California, pleaded guilty today to conspiracy to distribute and possess with intent to distribute fentanyl and heroin, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 7, 2019, Hernandez Rojo sold approximately 2,000 counterfeit oxycodone pills laced with fentanyl to an undercover agent in Bakersfield. On Dec. 13, 2019, Hernandez Rojo was arrested while driving to Fresno with more than 7 kilograms of counterfeit oxycodone pills laced with fentanyl, nearly 2 kilograms of fentanyl powder, and 7 kilograms of heroin, which were slated for delivery to the same undercover agent.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Jessica A. Massey is prosecuting the case.
Hernandez Rojo is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on July 17, 2023. Hernandez Rojo faces a mandatory minimum sentence of 10 years and a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Sioux Falls Woman Sentenced to 10 Years in Meth ConspiracyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on March 13, 2023.
Roberta Diane Dempsey, 58, was sentenced to ten years in federal prison, followed by five years of supervised release. She was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Dempsey was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in December of 2021. She pleaded guilty on November 28, 2022.
During her involvement, Dempsey allowed her co-conspirators to use her home to store and repackage multi-pound quantities of methamphetamine. Additionally, she obtained small quantities of methamphetamine from her co-conspirator to distribute to others. Dempsey was personally involved in the distribution of over 500 grams of methamphetamine.
This case was investigated by the Drug Enforcement Administration, U.S. Postal Inspection Service, IRS Criminal Investigation, Sioux Falls Police Department, Minnehaha County Sheriff’s Office, Moody County Sheriff’s Office, and the South Dakota Highway Patrol. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Dempsey was immediately remanded to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced to over 10 Years in Prison for Meth ConspiracyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on March 13, 2023.
Ryan Garner Gillis, 51, was sentenced to 10 years and 10 months in federal prison, followed by five years of supervised release. He was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Gillis was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in January of 2022. He pleaded guilty on December 14, 2022.
On August 21, 2021, Gillis was in a vehicle with his co-conspirators and was legally stopped and searched by law enforcement. Inside, law enforcement found 137.68 grams of methamphetamine. On that same day, law enforcement conducted a search of his residence and seized another 150.63 grams of methamphetamine. Additionally, law enforcement searched another residence where Gillis was storing items and seized yet another 212 grams of methamphetamine, along with approximately $46,374 in cash, which was the proceeds of previous methamphetamine sales. Gillis obtained all this methamphetamine with the intent of distributing it to others throughout the Sioux Falls area.
This case was prosecuted by Special Assistant U.S. Attorney Paige Petersen, who also serves as a prosecutor with the South Dakota Attorney General’s Office.
Gillis was immediately remanded to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced for Attempted Enticement of a Minor Using the InternetRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, man convicted of Attempted Enticement of a Minor Using the Internet. The sentencing took place on March 15, 2023.
Kent Mews, age 56, was sentenced to 10 years in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $5,100.
Mews was indicted by a federal grand jury in March of 2022. He pleaded guilty on January 20, 2023.
The conviction stemmed from an incident on March 6, 2022, when Mews attempted to use his cell phone to knowingly persuade and coerce an undercover agent, posing as a 15-year-old male, to engage in sexual activity.
This case was investigated by Homeland Security Investigations, with the assistance of the Internet Crimes Against Children Task Force, South Dakota Division of Criminal Investigation, Sioux Falls Police Department, Minnehaha County Sheriff’s Office, South Dakota Highway Patrol, Air Force Office of Special Investigations, and the FBI. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Mews was immediately remanded to the custody of the U.S. Marshals Service.
Sioux Falls Man Charged with Failure to RegisterRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Sioux Falls, South Dakota, man for Failure to Register: International Travel Reporting Violation.
Scott Richard Semrad, age 49, was indicted in March of 2023. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 17, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between February 5, 2022, and February 22, 2022, Semrad, a sex offender by reason of a conviction under state law, unlawfully and knowingly failed to provide information required by the Sex Offender Registration and Notification Act relating to intended travel to a foreign country.
The charge is merely an accusation and Semrad is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Semrad was released on bond pending trial. A trial date has not been set.
Sikeston Man Sentenced to Serve 125 Months in Federal Prison on Gun and Drug ChargesRead the Press Release
CAPE GIRARDEAU – The U.S. Attorney's Office announced that Cameron Melton Malone, 30, of Sikeston, Missouri, was sentenced Monday to serve a total aggregate sentence of 125 months in federal prison for the offenses of felon in possession of a firearm and possession with intent to distribute marijuana. Malone appeared for his sentencing hearing before U.S. District Judge John A. Ross at the federal courthouse in Cape Girardeau, Missouri.
At a guilty plea hearing in December, Malone admitted that on June 12, 2022, he attempted to flee from law enforcement officers in the City of Sikeston after an officer attempted a traffic stop. During a high-speed pursuit, Malone left the roadway and traveled through a parking lot where numerous people had gathered for a party, causing the crowd to run and scatter to avoid being hit. After the vehicle came to rest, Malone fled on foot and was later apprehended hiding in some bushes. He was taken into custody but struggled with officers when being placed in the patrol vehicle. Malone’s vehicle was searched, and a quantity of marijuana, packaged for sale, and a loaded Diamondback AR-15 semi-automatic rifle was seized from the vehicle. The firearm was loaded and ready to fire, with 35 rounds in the magazine and a round in the chamber. Malone is prohibited from possessing firearms under federal law because of his status as a convicted felon, including a prior firearms offense for carrying a concealed weapon in 2012 and an assault conviction in 2019.
After serving the 125-month sentence, Malone will be placed on supervised release for a period of three years.
This case was investigated by the Sikeston Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant U.S. Attorney Julie Hunter handled the prosecution for the government.
Rip Crew Co-Conspirator Sentenced to 117 Months for Robbery, Drug Trafficking, and Firearms OffensesRead the Press Release
TUCSON, Ariz. – Abelardo Rodriguez-Arvizu, 38, of Mexico, was sentenced on March 3, 2023, by United States District Court Judge Jennifer G. Zipps to 117 months in prison. Rodriguez-Arvizu was found guilty following a bench trial of one count each of Conspiracy to Commit Robbery, Conspiracy to Possess with Intent to Distribute Marijuana, and Possession of a Firearm During a Drug Trafficking Offense.
On October 24, 2015, United States Border Patrol (USBP) agents encountered Rodriguez-Arvizu and several other individuals in the desert south of Tucson. Rodriguez-Arvizu and his co-conspirators were part of a drug “rip crew” whose goal was to rob marijuana backpackers of their drug loads. When Border Patrol agents arrived, Rodriguez-Arvizu fled, but forensic testing later revealed his DNA on a water jug and jacket left behind. Rodriguez-Arvizu and his co-conspirators were armed with at least five semi-automatic firearms, body armor, and other items indicative of a rip crew.
USBP agents arrested Rodriguez-Arvizu on November 18, 2019, for his role in the crimes. Co-conspirators Francisco Javier Caballero-Bustamante and Jose Carlos Lemus-Veliz were arrested by USBP and sentenced, prior to Rodriguez-Arvizu’s arrest, by Judge Zipps to 98 months and 144 months, respectively, for their roles in the rip crew.
The Federal Bureau of Investigation conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-15-1390-003-TUC-JGZ-EJM
RELEASE NUMBER: 2023-039_Rodriguez-Arvizu# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Othello Woman Sentenced to 46 Months in Federal Prison for Firearm OffenseRead the Press Release
Spokane, Washington – United States District Judge Thomas O. Rice sentenced Alondra Yanez, age 25, of Othello, Washington, to 46 months in federal prison after Yanez had pleaded guilty on December 14, 2022 to being a Felon in Possession of Firearms. Judge Rice ordered that Yanez’s 46 month federal sentence be served consecutively to a 12 month sentence for theft in the second degree imposed by the Adams County, Washington, Superior Court. Yanez will also serve three years of supervised release after her release from confinement.
According to court documents, on February 24, 2021, a co-defendant, Guillermo Valdez, participated in a residential burglary in Spokane County, Washington, during which Valdez stole eleven firearms. Yanez helped Valdez traffic the stolen firearms by advertising the firearms for sale using Facebook Messenger. One of the stolen firearms sold by Yanez was used during the homicide of a four-year-old child in Othello, Washington, during a domestic dispute on February 27, 2021.
United States Attorney Vanessa R. Waldref, who is the Chief Law Enforcement Officer in the Eastern District of Washington, stated, “Ms. Yanez endangered our community by trafficking in stolen firearms. Her conduct directly led to the tragic homicide of a four-year-old child. I’m grateful for the joint efforts of federal, state, and local law enforcement, who helped bring Ms. Yanez to justice and who work tirelessly to keep our communities safe and our neighborhoods strong.”
“Ms. Yanez’s brazen conduct clearly warranted this significant sentence,” said ATF Resident Agent in Charge Sterling Nixon. “ATF is committed to keeping members of our communities safe from individuals who provide firearms to dangerous criminals.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Othello Police Department, the Moses Lake Police Department, the Spokane County Sheriff’s Office, and the Washington State Patrol. This case was prosecuted by Michael J. Ellis, Assistant United States Attorney for the Eastern District of Washington.
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Oklahoma Helicopter Charter Company Pays $155,000 to Settle Civil Penalty Claims Stemming from Alleged Unauthorized Charter Operations Involving Fixed-Wing AircraftRead the Press Release
Oklahoma City, Oklahoma – Interstate Helicopters, Inc. ("Interstate"), an Oklahoma corporation based in Bethany, Oklahoma, paid $155,000 to the United States to settle civil penalty claims arising from allegations that Interstate conducted unauthorized charter operations involving fixed-wing aircraft, announced United States Attorney Robert J. Troester.
Interstate is the holder of an air carrier certificate which authorizes Interstate to conduct flights in helicopters, but not fixed-wing aircraft. The United States alleges that from December 8, 2016, through April 17, 2017, Interstate conducted eleven fixed-wing charter operations ("Charter Flights") in violation of 49 U.S.C. § 40101, et seq. ("Act"), and the regulations promulgated under the Act. More specifically, the United States contends Interstate conducted the Charter Flights in violation of its operations specifications, and when none of the pilots had, within the previous 12 months, passed required knowledge, competency and flights tests, and had not completed required training. The United States also alleges that the Charter Flights were conducted in a careless or reckless manner which endangered the life or property of another. To resolve these allegations, Interstate agreed to pay $155,000 to the United States.
In reaching this settlement, Interstate did not admit liability, and the government did not make any concessions about the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the U.S. Department of Transportation, Office of Inspector General and the Federal Aviation Administration. It was referred for prosecution by the Enforcement Division of the Federal Aviation Administration. Assistant U.S. Attorney Ronald R. Gallegos prosecuted the case.
New Orleans Man Pleads Guilty to Drug and Weapons ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – BRIAN TARDY, age 31, resident of Orleans Parish, pled guilty on Thursday, March 16, 2023 to all counts of a three-count superseding bill of information for drug and weapons violations, announced U.S. Attorney Duane A. Evans. TARDY’s sentencing is set for June 22, 2023.
In Count 1 of the superseding bill of information, TARDY is charged with possession with the intent to distribute marijuana in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(D) for which he faces a maximum sentence of 5 years of imprisonment, a fine of up to $250,000, and a period of at least 2 years of supervised release. Additionally, in Count 1, TARDY is charged with possession with the intent to distribute cocaine in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C) for which he faces a maximum sentence of 20 years of imprisonment, a fine of up to $1,000,000, and a period of at least 3 years of supervised release. In Count 2, TARDY is charged with possessing a firearm in furtherance of a drug trafficking offense, in violation of Title 18, United States Code, Section 924(c)(1) for which he faces a mandatory minimum sentence of 5 years to life imprisonment, to be run consecutive to any other sentence imposed, a fine of up to $250,000.00, and a period of up to 5 years supervised release. Finally, Count 3 charges TARDY with being a felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g) and 924(a)(2) for which he faces a maximum sentence of 10 years imprisonment, a fine of up to $250,000 and a period of up to 3 years of supervised release. For each count, TARDY also faces payment of $100 mandatory special assessment fee.
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.
U.S. Attorney Evans praised the work of the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the New Orleans Police Department, and the Louisiana State Police. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit.
New Jersey Man Pleads Guilty to Cocaine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kelvin Vazquez-Pagan, age 25, of Passaic, New Jersey, pleaded guilty on March 16, 2023, before U.S. District Court Judge Malachy E. Mannion, to the charge of possession with intent to distribute cocaine.
According to United States Attorney Gerard M. Karam, Vazquez-Pagan admitted to possessing four kilograms of cocaine for further distribution. The charge stems from an incident on March 23, 2022, in which members of the Pennsylvania State Police made a traffic stop of a vehicle in Lackawanna County in which Vazquez-Pagan and another individual, Carlos Perez-Rivera, age 37, of West New York, New Jersey, were traveling. A subsequent search of the vehicle resulted in the seizure of approximately four kilograms of cocaine found hidden inside the vehicle.
Co-conspirator Perez-Rivera previously entered a guilty plea before Judge Mannion on March 3, 2023 and is awaiting sentencing.
The investigation was conducted by the Pennsylvania State Police and the Drug Enforcement Administration. Assistant United States Attorneys Robert J. O’Hara and Brian J. Gallagher are prosecuting the case.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The charge carries a maximum penalty under federal law of up to twenty years in prison, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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