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3 May 2023
Former Executive Director of Miss Florida Scholarship Program Sentenced to Federal Prison for FraudRead the Press Release
MIAMI – A federal district judge in Miami has sentenced 77-year-old Mary Wickersham to 15 months in prison and ordered her to pay $243,000 in restitution for stealing money intended for the Miss Florida Scholarship Program over the course of seven years. Wickersham pleaded guilty earlier this year.
Since 2002, Wickersham served as the Executive Director of the Miss Florida Scholarship Program. The Miss Florida Scholarship Program offers educational and financial assistance to young women across the state. In 2011, Wickersham formed a Florida corporation named “Miss Florida LLC” and used it to open a bank account in the same name. She did so without the knowledge or consent of the Miss Florida Scholarship Program. Wickersham then redirected hundreds of thousands of dollars into the Miss Florida LLC bank account, which she controlled, by using her position as Executive Director to solicit donations from the program’s recurring business sponsors and donors, all while representing that those monies would be used to fund scholarships for the Miss Florida Program women. In fact, Wickersham used the money for her own personal use and gain.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Inspector in Charge Juan A. Vargas of the U.S. Postal Inspection Service (USPIS), Miami Division, announced the sentence imposed by U.S. District Judge Roy K. Altman.
USPIS Miami investigated this case. Assistant U.S. Attorneys Abbie Waxman and Eduardo Gardea Jr. prosecuted it. Assistant U.S. Attorney Sara Klco is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-20057.
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Former Bankruptcy Court Employee Pleads Guilty to Damaging a Protected Computer Without AuthorizationRead the Press Release
GREENSBORO, NC – Sandra J. Hairston, United States Attorney for the Middle District of North Carolina (MDNC), announced today that ROBERT MATTHEW BRITTAIN, of Lexington, pleaded guilty in federal court to one felony count of computer fraud.
According to publicly filed court documents, BRITTAIN was previously employed by the United States Bankruptcy Court for the MDNC as a court management analyst wherein he managed and configured computer products operated by the court’s employees. BRITTAIN resigned from this position in April 2022 after an internal investigation into his conduct. Before leaving his position, BRITTAIN allegedly established a VPN connection from his home to the court’s network which, after his termination, he illegally used to access another employee’s passwords and remotely wipe an iPad belonging to the Bankruptcy Court.
BRITTAIN pleaded guilty to a violation of Title 18, United States Code, Section 1030(a)(5)(A), which criminalizes the knowingly transmission of a program, information, code, or command, and as a result of such conduct, intentionally causing damage without authorization, to a protected computer. Because the computer at issue was used in the administration of justice, BRITTAIN is subject to heightened penalties under Title 18, United States Code, Section 1030(c)(4)(B)(i). Specifically, BRITTAIN faces a maximum term of 10 years of imprisonment, a term of supervised release of not more than 3 years, a fine not to exceed $250,000, and a mandatory special assessment of $100.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Tanner Kroeger.
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Former Alabama Deputy Sheriff Pleads Guilty to Sexually Assaulting Woman in His CustodyRead the Press Release
A former deputy sheriff with the Dallas County, Alabama, Sheriff’s Office pleaded guilty today in the Southern District of Alabama for sexually assaulting a woman while he was on duty.
According to the superseding information and plea documents, on Jan. 30, 2020, Joshua Davidson, 32, while on duty as a Dallas County Deputy Sheriff, placed the victim in custody and drove her down a dark road to a desolate location where the victim performed oral sex on him against her will. The victim, who reported the assault immediately, was in fear that Davidson would shoot her if she did not cooperate.
“Law enforcement officials who sexually assault women and those in their custody will and must be held accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to take allegations of sexual assault seriously, and vigorously prosecute those who violate the civil rights of people in their custody and prey on vulnerable victims.”
“The people of Dallas County and the Southern District of Alabama deserve better than to have their rights violated by someone sworn to protect them,” said U.S. Attorney Sean P. Costello for the Southern District of Alabama. “Working with our federal, state and local partners, we will continue to bring to justice law enforcement officers who become criminals themselves.”
“All law enforcement personnel who take an oath to protect and serve the American people must be held to a higher standard,” said Special Agent in Charge Paul Brown of the FBI Mobile Field Office. “FBI Mobile remains committed to holding those who do not meet this standard accountable for their actions, especially those who wear the badge.”
Sentencing is set for Aug. 25.
The FBI Mobile Field Office investigated the case.
Assistant U.S. Attorney Andrew Arrington for the Southern District of Alabama and Trial Attorneys Maura White and MarLa Duncan of the Civil Rights Division’s Criminal Section are prosecuting the case.
Former Alabama Deputy Sheriff Pleads Guilty to Sexually Assaulting Woman in His CustodyRead the Press Release
A former deputy sheriff with the Dallas County, Alabama, Sheriff’s Office pleaded guilty today in the Southern District of Alabama for sexually assaulting a woman while he was on duty.
According to the superseding information and plea documents, on Jan. 30, 2020, Joshua Davidson, 32, while on duty as a Dallas County Deputy Sheriff, placed the victim in custody and drove her down a dark road to a desolate location where the victim performed oral sex on him against her will. The victim, who reported the assault immediately, was in fear that Davidson would shoot her if she did not cooperate.
“Law enforcement officials who sexually assault women and those in their custody will and must be held accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to take allegations of sexual assault seriously, and vigorously prosecute those who violate the civil rights of people in their custody and prey on vulnerable victims.”
“The people of Dallas County and the Southern District of Alabama deserve better than to have their rights violated by someone sworn to protect them,” said U.S. Attorney Sean P. Costello for the Southern District of Alabama. “Working with our federal, state and local partners, we will continue to bring to justice law enforcement officers who become criminals themselves.”
“All law enforcement personnel who take an oath to protect and serve the American people must be held to a higher standard,” said Special Agent in Charge Paul Brown of the FBI Mobile Field Office. “FBI Mobile remains committed to holding those who do not meet this standard accountable for their actions, especially those who wear the badge.”
Sentencing is set for Aug. 25.
The FBI Mobile Field Office investigated the case.
Assistant U.S. Attorney Andrew Arrington for the Southern District of Alabama and Trial Attorneys Maura White and MarLa Duncan of the Civil Rights Division’s Criminal Section are prosecuting the case.
Federal Jury Convicts Pocatello Man of Sexual Exploitation of a Child and Receipt of Child PornographyRead the Press Release
POCATELLO – Yesterday, after a six-day trial, a federal jury convicted Trenton Powell, 43, of Pocatello, of eight counts of sexual exploitation of a child and three counts of receipt of child pornography, U.S. Attorney Josh Hurwit announced. Senior U.S. District Judge B. Lynn Winmill presided over the trial, which began on April 25, and concluded with guilty verdicts on May 2.
According to testimony and evidence presented at trial, Powell sexually abused the first victim for six years while living in Pocatello. Powell photographed the abuse with his iPhone. Years after the abuse ended, another of Powell’s victim reported the abuse to police. Police later seized Powell’s iPhone. After the phone was forensically examined, police recovered images of Powell sexually abusing the first victim. Both victims testified during the trial and confirmed that Powell was the man who molested them.
Powell is scheduled to be sentenced on August 15, 2023, before Judge Winmill at the federal courthouse in Pocatello. He faces a mandatory minimum of 15 years with a maximum of up to 300 years in federal prison. Judge Winmill will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Powell will be required to register as a sex offender as a result of the conviction.
“I am grateful that our office was able to prosecute this defendant for his heinous crimes and bring justice to the courageous victims,” said U.S. Attorney Hurwit. “We appreciate the jury’s service, which is especially difficult in a case like this. We stand ready to seek justice whenever our community and law enforcement partners uncover crimes against children.”
U.S. Attorney Hurwit credited the cooperative efforts of Homeland Security Investigations in Idaho Falls, the Idaho Falls Police Department, and the Pocatello Police Department, which led to the charges. The case was prosecuted by Assistant U.S. Attorneys John Shirts and Justin Paskett.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Derry Man Indicted for Passport Fraud and Aggravated Identity TheftRead the Press Release
CONCORD – A Derry man was indicted for using another person’s identity in his application for a U.S. passport, U.S. Attorney Jane E. Young announces.
Andrew Mahn, 28, was indicted on one count of making a false statement in a passport application, one count of false statements, and one count of aggravated identity theft. Mahn was arrested on May 2, 2023 and is being held pending a detention hearing on May 4, 2023.
According to the charging documents, on November 15, 2022, Mahn submitted a fraudulent passport application using the name and date of birth of his victim. Mahn was previously charged with hacking in the Northern District of Illinois, and he was on pretrial release when he applied for the passport.
The charge of making a false statement in a passport application provides for a sentence of up to 10 years in prison. The charge of making false statements provides for a sentence of up to 5 years in prison. The charge of aggravated identity theft carries a mandatory sentence of two years consecutive to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The U.S. State Department’s Diplomatic Security Service, Federal Bureau of Investigation, and U.S. Postal Inspection Service led the investigation. Assistant U.S. Attorneys Alexander S. Chen and John J. Kennedy are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Deputy Attorney General Recognizes Eastern District of New York Assistant U.S. Attorney at Director's Awards CeremonyRead the Press Release
Assistant United States Attorney Layaliza Soloveichik was among those recognized by Deputy Attorney General Lisa Monaco and Director Monty Wilkinson of the Executive Office for U.S. Attorneys (EOUSA), at the 38th Director’s Awards Ceremony today in Washington, D.C. The EDNY was one of the districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
Breon Peace, United States Attorney for the Eastern District of New York, said: “Congratulations to Layaliza for receiving a Director’s Award for Superior Performance as an Assistant U.S. Attorney. Layaliza’s vision, skill, and tenacity as a litigator and supervisor on behalf of the United States have enhanced the stature of the U.S. Attorney’s Office for the Eastern District of New York and furthered the mission of the Department of Justice.”
EOUSA Director Wilkinson said: “The recipients we honor today have shown remarkable resilience and commitment to justice through challenging times, rising to the occasion with unwavering dedication to their mission. They have worked tirelessly to protect the rights of Americans and exemplify the very best in federal service.”
Assistant United States Attorney (AUSA) Soloveichik was recognized for her exemplary performance in leading the district’s demanding civil immigration and programmatic practices, which consist of more than 1,500 cases. AUSA Soloveichik serves as Deputy Chief of the Civil Division in the Eastern District of New York and previously served as Chief of the Immigration Litigation Unit. She has also successfully managed a host of emergency litigation and programmatic challenges in cutting-edge cases of national significance. AUSA Soloveichik has also taken on leading roles in defending challenges to national policies related to the COVID-19 pandemic as well as long-standing vaccine policies.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao. For more information about the United States Attorney’s Office for the Eastern District of New York, visit www.justice.gov/usao/nye.
Defendants in International Drug Trafficking Conspiracy Found GuiltyRead the Press Release
CHICAGO — The last remaining defendants in an international drug trafficking investigation have been found guilty of multiple drug trafficking charges by a federal jury in Chicago.
Evidence at trial revealed that between May 2016 and August 2017 ANTONIO CARRAZCO-MARTINEZ, 42, of Fort Valley, Georgia, also known as “El B,” JUAN MANUEL BARENAS-REYNOSO, 47, of Chicago, also known as “Chingon,” and NICOLASA BENITEZ DENOVA, 30, of Paige, Texas, also known as “Lio,” conspired with others to traffic cocaine and heroin from Mexico to the Chicago area. Carrazco-Martinez, who was alleged to have been the leader of the group’s Chicago operations, was found guilty of conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin, as well as possession with intent to distribute a controlled substance. Barenas-Reynoso and Benitez-Denova, who were alleged to have courier-related roles, were found guilty of conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine, as well as possession with intent to distribute a controlled substance. Benitez-Denova was also found guilty of conspiracy to possess with intent to distribute and distribute 1 kilogram of heroin. Barenas-Reynoso was acquitted of an additional count of possession with intent to distribute a controlled substance.
Throughout the multi-year investigation, an additional ten defendants were charged:
- Pablo Anibal Vazquez-Duarte, also known as “Compa”, “Topo”, and “Troncan”, who is alleged to be the group’s leader in Mexico and remains a fugitive, was charged with conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin, possession with intent to distribute a controlled substance, and distribution of a controlled substance.
- Leonardo Alfaro-Sandoval, 35, of Michoacan, Mexico, who remains a fugitive, was charged with conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin, and possession with intent to distribute a controlled substance.
- Ricardo Diaz-Deleon, 34, of Nueva Leon, Mexico, also known as “Diablo”, who remains a fugitive, was charged with conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin, and possession with intent to distribute a controlled substance.
- Scott London Johnson, 36, of Taylor, Texas, pleaded guilty to conspiracy to possess with intent to distribute and distribute more than 500 grams of cocaine on July 12, 2022.
- Melchor Cardenas, 30, of San Jose, California, pleaded guilty to conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin.
- Fermin Campos, 41, of Bolingbrook, pleaded guilty to conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin. He was sentenced to 56 months’ imprisonment by U.S. District Judge Sharon Johnson Coleman on February 24, 2022.
- J’Anthony Lara, 25, of Austin, Texas, pleaded guilty to conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin. He is scheduled to be sentenced by U.S. District Judge Sharon Johnson Coleman on October 11, 2023.
- Oscar Martinez-Galvan, 25, of Austin Texas, was charged with conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin, and possession with intent to distribute a controlled substance. His charges were dismissed pursuant to a pretrial diversion agreement on July 29, 2021.
- Ignacio Cordova, 51, of Chicago, pleaded guilty to conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin. He was sentenced to 42 months’ imprisonment by U.S. District Judge Sharon Johnson Coleman on June 4, 2021.
- Clyde Ford, 61, of Ypsilanti, Michigan, pleaded guilty to conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine. He was sentenced to 30 months’ imprisonment by U.S. District Judge John R. Blakey on August 16, 2022.
The verdicts were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration. Substantial assistance was provided by the Chicago Police Department, Illinois State Police, Waukegan Police Department, Homeland Security Investigations Chicago, Internal Revenue Service Criminal Investigations Chicago. The government was represented by Assistant U.S. Attorneys Andrew Erskine, Alejandro Ortega, and Kirsten Moran.
The investigation was conducted under the Organized Crime Drug Enforcement Task Force (OCDETF) program, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations.
Cybercriminal Network Fueling the Global Stolen Credit Card Trade is DismantledRead the Press Release
A four-count indictment was unsealed today in the United States District Court for the Eastern District of New York charging Denis Gennadievich Kulkov with access device fraud, computer intrusion and money laundering in connection with his operation of Try2Check, the primary service offering “card-checking” to cybercriminals in the stolen credit card trade.
The Try2Check platform catered to cybercriminals who purchased and sold stolen credit card numbers in bulk on the internet, offering criminals the ability to quickly determine what percentage of the cards were valid and active. As such, Try2Check was a primary enabler of the trade in stolen credit card information, processing at minimum tens of millions of card numbers every year. Today, the U.S. government worked with partners in Germany and Austria to take offline Try2Check’s websites, thus dismantling the defendant’s criminal network. Along with the indictment and global website domain takedown, the State Department has announced a $10 million reward for information leading to the capture of Kulkov, who resides in Russia.
Breon Peace, United States Attorney for the Eastern District of New York and Patrick Freaney, Special Agent-in-Charge, United States Secret Service (USSS), New York Field Office, announced the charges.
“Today is a bad day for criminals who relied on the defendant’s platform as the gold standard to verify that the credit cards they stole from hard working individuals living in the Eastern District of New York and across the world had value,” stated United States Attorney Peace. “Today’s indictment and global takedown of the Try2Check website demonstrates that the Office, together with our partners, will disrupt cybercrime operations no matter where they are based.”
“The individual named in today’s indictment is accused of operating a criminal service with immeasurable reach to fund further illicit activity with global impact,” said U.S. Secret Service Special Agent in Charge Patrick J. Freaney. “Our exceptional partnerships know no borders, and thanks to the cooperation and dedication of our global law enforcement community, Try2Check can no longer serve as a vehicle for continued criminal activity or illicit profits.”
As alleged in the indictment and other court filings, Kulkov created Try2Check in 2005, building it into a primary tool of the illicit credit card trade. Cybercriminals who acquired large batches of stolen credit cards (for example, by hacking into credit card readers at stores) ran the cards through Try2Check to determine what percentage of the stolen credit card numbers remained active. These cybercriminals then used the resulting data to show prospective buyers of the stolen credit card numbers what percentage of the cards retained their value. Try2Check victimized not only credit card issuers and holders, but also a major U.S.-based payment processing company whose systems Try2Check misused to perform the card checks.
Try2Check ran tens of millions of credit card checks per year and supported the operations of major card shops that made hundreds of millions in bitcoin in profits. Over a nine-month period in 2018, the site performed at least 16 million checks, and over a 13-month period beginning in September 2021, the site performed at least 17 million checks. Through the illegal operation of his websites, the defendant made at least $18 million in bitcoin (as well as an unknown amount through other payment systems), which he used to purchase a Ferrari, among other luxury items.
In coordination with the unsealing of the charging documents in this case, Try2Check’s websites were taken offline and the State Department issued a $10 million reward for information leading to the defendant’s capture. If convicted, Kulkov faces 20 years’ imprisonment. The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The Office extends particular thanks to the Justice Department’s Computer Crime and Intellectual Property Section (CCIPS) and to CCIPS Assistant Deputy Chief James Yoon, for his and the Section’s extensive contributions to this case. The U.S. Secret Service New York Field Office investigated this case with crucial assistance from the following Secret Service offices: the Global Investigative Operations Center (GIOC), the Cyber Investigative Section (CIS), Frankfurt, Paris, Madrid, and the Hague. Crucial assistance was also provided by the FBI’s New York Field Office and Cyber Initiative and Resource Fusion Unit (CIRFU) and by Europol and the National Cyber-Forensics Training Alliance (NCFTA). The Department of Justice’s Office of International Affairs is assisting with foreign evidence requests. The Office extends its appreciation to the German Federal Criminal Police Office (BKA), the German Federal Office for Information Security (BSI), the Austrian Criminal Intelligence Service – Cybercrime Competence Center (C4), and the French Central Directorate of the Judicial Police (DCPJ) and the governments of Austria, Germany and France for their assistance on this case, as well as to the Shadowserver Foundation for crucial technical assistance in addressing Try2Check’s technical infrastructure.
If you have information regarding this individual, please contact the U.S. Secret Service at [email protected].
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander Mindlin and Sara K. Winik are in charge of the prosecution, with assistance from Assistant United States Attorney Brian Morris.
The Defendant:
DENIS GENNADIEVICH KULKOV, (also known as “Kreenjo,” “Nordex” and “Nordexin”)
Samara, RussiaE.D.N.Y. Docket No. 23-CR-171
Convicted Sex Offender Sentenced to More Than 19 Years for Distributing Child Sexual Abuse VideosRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Joel Michael Phelan (48, Jacksonville) to 19 years and 7 months in federal prison, followed by a life term of supervised release, for distributing videos depicting the sexual abuse of children. The court also ordered Phelan to forfeit a cellphone and computers, which were used in the commission of the offense. Phelan had pleaded guilty on January 13, 2023.
According to court documents, the case began with an investigation by the Jacksonville Sheriff’s Office (JSO), which had executed a search warrant at Phelan’s residence in 2017, after receiving reports of the upload of files of child sexual abuse material from the residence. JSO seized multiple devices for further forensic examination. Phelan was arrested on the day the warrant was executed for unlawfully possessing a firearm and for two sex offender registration offenses. Phelan was sentenced to five years in prison for the state offenses.
During a forensic review of the devices, law enforcement found Phelan had hundreds of files of child sexual abuse material and had communicated with others over chat messages about his desire to engage in sexual activity with children.
Phelan was previously convicted in Polk County in 2008 of using a computer to seduce a child after he had traveled to a location for the purpose of engaging in sexual activity with whom he believed to be a 14-year-old girl. Phelan was sentenced to sex offender probation but violated his probation by possessing an illegal image of the sexual exploitation of two young girls.
“This significant sentence is proof that not everyone learns their lesson the first time. Every time this previously convicted child predator feeds his perversion by receiving and distributing illicit images of children, he revictimizes those innocent victims,” said Homeland Security Investigations (HSI) Special Agent in Charge John Condon. “This sentence is proof that the Northeast Florida INTERCEPT Task Force, HSI Jacksonville, and our partners at the Jacksonville Sheriff’s Office, will stop at nothing to identify and prosecute those who exploit the vulnerability of our children.”
This case was investigated by the Jacksonville Sheriff’s Office, Homeland Security Investigations (HSI), and the Northeast Florida INTERCEPT Task Force. It was prosecuted by Assistant United States Attorney Kelly S. Karase. The forfeiture was handled by Assistant United States Attorney Mai Tran.
This case is brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Clarksville Psychiatrist Pleads Guilty to Making False Statements to Medicare & TricareRead the Press Release
NASHVILLE – A Clarksville, Tennessee psychiatrist pleaded guilty today in U.S. District Court to two counts of making false statements relating to health care matters, announced U.S. Attorney Henry C. Leventis.
Dr. James Maures Dodson, 57, pleaded guilty to making false statements to Medicare and TRICARE in connection with two types of criminal activity. First, he caused his practice, Clarksville Behavioral Health (CBH), to submit claims for services he did not provide. On several dates between August 16, 2016, and December 10, 2018, he caused CBH to submit claims for more than 24 hours of services per day.
Second, between May 2018 and October 2020, Dodson caused CBH to falsely represent to TRICARE that other CBH providers were certified by TRICARE when they were not. For TRICARE to pay a claim for the services of a provider, TRICARE regulations required that the provider be certified by TRICARE. In May 2018, CBH offered to repay approximately $135,412.16 to TRICARE due to prior claims that had been rendered by non-TRICARE-certified providers. Notwithstanding this agreement, Dodson caused CBH to continue submitting claims to TRICARE, falsely representing that providers at his practice were TRICARE-certified when they were not.Dodson’s sentencing has been set for September 27, 2023. He faces up to 5 years in prison and a fine of up to $250,000 on each count.
This case was investigated by the Department of Health and Human Services, Office of Inspector General and the Department of Defense, Office of Inspector General. Assistant U.S. Attorney Taylor J. Phillips is prosecuting the case.
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Cheyenne Man Sentenced for Being a Felon in Possession of an Illegal FirearmRead the Press Release
Michael Langley, age 26, of Cheyenne, Wyoming, was sentenced to 51 months in prison for being a felon in possession of a firearm. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence, which also included three years of supervised release and a $100 special assessment, on May 2, 2023.
According to court documents, on October 10, 2022, Langley was a passenger in a vehicle and fired several shots from a semiautomatic pistol at another vehicle while traveling through Cheyenne. At the time, Langley was a convicted felon who was prohibited from possessing a firearm. Langley pled guilty to unlawfully possessing the pistol, which had an obliterated serial number.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cheyenne Police Department investigated the crime. Assistant U.S. Attorney Jonathan C. Coppom prosecuted the case.
Case No. 22-CR-00133-SWS
Carnegie Resident Sentenced to 11 Years of Imprisonment for Violating Federal Narcotics LawsRead the Press Release
PITTSBURGH, PA – A resident of Carnegie, Pennsylvania has been sentenced in federal court to 11 years of imprisonment followed by five years of supervised release on his conviction for violating federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, Acting United States Attorney Troy Rivetti announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Terrence Dougherty, age 30.
According to information presented to the court, Dougherty ordered at least sixty pounds of methamphetamine from George Charlan, a methamphetamine supplier residing on the West Coast, and approximately 4.5 kilograms of pure methamphetamine was interdicted while en route to the defendant. A search warrant was executed at the defendant’s residence, and investigators seized approximately half of a pound of methamphetamine, 17 kilograms of marijuana, $18,840 in United States currency, and a loaded firearm.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball prosecuted this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
California Man Pleads Guilty to Trafficking Fentanyl into TexasRead the Press Release
PECOS, Texas – A California man pleaded guilty Tuesday in a federal court in Pecos to possession with intent to distribute 400 grams or more of a mixture or substance containing a detectable amount of fentanyl.
According to court documents, the Texas Department of Public Safety’s (DPS) Criminal Investigations Division (CID) intercepted a known drug conspiracy occurring in the Pecos area. DPS CID requested U.S. Border Patrol’s assistance to seize suspected fentanyl in a controlled environment. On Feb. 23 at the USBP checkpoint in Sierra Blanca, a USBP canine alerted agents to search the vehicle driven by Edgar Jesus Castillo, 26, of Palmdale, California. During an inspection, agents located an unmarked envelope in the trunk of the vehicle containing a vacuum-sealed bag full of a compressed white powder. The powder tested positive for fentanyl. Castillo had obtained the 1.005 kilograms of fentanyl in California and was transporting it to Pecos, where he intended to rent a hotel room and meet with a customer traveling from Houston.
Castillo faces a penalty of 10 years to life in prison with a maximum fine of $10 million. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
The Texas Department of Public Safety, USBP and Homeland Security Investigations are investigating the case.
Assistant U.S. Attorney Matthew Ellis is prosecuting the case.
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California Man & Companies Charged with Defrauding Central Illinois InvestorsRead the Press Release
URBANA, Ill. – A federal grand jury returned an indictment on May 2, 2023, charging Brett Michael Bartlett, 37, of the 9000 block of Grackle Ave., Fountain Valley, California, and his companies, Dynasty Toys, Inc., and 7M E-group Corporation, with wire fraud, mail fraud, securities fraud, and money laundering.
The indictment alleges that Bartlett and his California-based companies, Dynasty Toys, and 7M E-group, devised a scheme to defraud investors and obtain their money by making materially false and fraudulent pretenses, representations, and promises. According to the indictment, Bartlett, thorough Dynasty Toys and 7M E-group, purchased items at liquidation sales and resold those items online, especially through Amazon. Bartlett solicited and accepted money from Central Illinois investors, first to purchase inventory to be resold by 7M E-group at promised annual returns of 20% to 40% and later to purchase Dynasty Toys’ preferred stock shares, which Bartlett claimed were expected to double in value.
According to the indictment, Bartlett induced investors to invest by dramatically overstating the success of the companies and the returns that the companies generated for investors, lying about the companies’ assets, failing to disclose the companies’ struggles even while continuing to solicit investments, and using investors’ funds for Bartlett’s own benefit. For example, Bartlett falsely told investors their existing shares were worth approximately $30 million in total, that Dynasty Toys owned hundreds of millions of dollars of gold assets, and that another company was going to purchase Dynasty Toys for $120 million. As a result, approximately 1,000 individuals, including over 50 investors from Central Illinois, invested over $20 million with Bartlett, 7M E-group, and Dynasty Toys.
According to the indictment, in May of 2020, Bartlett mailed to Central Illinois investors checks totaling millions of dollars, but the checks bounced. The indictment alleges that investors lost approximately $22.5 million as a result of Bartlett’s and his companies’ fraud.
Bartlett, Dynasty Toys, and 7M E-group are scheduled to appear before United States Magistrate Judge Eric I. Long in Urbana, Illinois on June 1, 2023, at 2 p.m. for arraignment on the charges. A trial date will be set at that time.
If convicted, Bartlett faces a penalty of up to twenty years in prison on each fraud charge and a penalty of up to ten years in prison on the money laundering charge. Bartlett also faces a penalty of up to three years of supervised release on each charge. The charges also carry maximum fines of up to $6.25 million for Bartlett and up to $27.5 million for the corporations.
The charges are the result of an investigation by the Federal Bureau of Investigation, Springfield Field Office, and the Federal Deposit Insurance Corporation – Office of Inspector General. Supervisory Assistant U.S. Attorney Eugene L. Miller is representing the government in the prosecution.
In a parallel investigation, the Securities and Exchange Commission filed on the same date as the indictment a civil complaint against Bartlett, 7M E-group Corp., Dynasty Toys, Inc., and other defendants in the United States District Court in the Central District of California seeking a civil judgment against them.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
Brownsville Man Pleads Guilty to Possessing Material Depicting Sexual Exploitation of a MinorRead the Press Release
PITTSBURGH, PA – A resident of Brownsville, Pennsylvania, has pleaded guilty to possessing material depicting the sexual exploitation of a minor.
Karl Lutes, age 52, pleaded guilty to one count before United States District Judge Cathy Bissoon.
According to information presented to the court during the guilty plea hearing, on or about February 11, 2020, agents of Homeland Security Investigations executed a search warrant at Lutes’s residence and found him in possession of videos and still images in computer graphics files depicting the sexual exploitation of minors, some of whom had not yet attained the age of 12 years.
Judge Bissoon scheduled sentencing for August 21, 2023. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Lutes will remain on bond pending sentencing.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
Homeland Security Investigations conducted the investigation leading to the Indictment in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Bath Man Pleads Guilty to Meth ChargeRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Gerald Barclay, 25, of Bath, NY, pleaded guilty to possession with intent to distribute five grams or more of methamphetamine before U.S. District Judge Frank P. Geraci, Jr. The charge carries a minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that on August 22, 2022, the New York State Police executed a search warrant at Barclay’s residence in Bath, seizing drug packaging materials, digital scales, and approximately $1,866 in United States currency inside the residence. Outside the residence, near a stack of tires next to the garage, investigators found approximately 195 grams of pure methamphetamine.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division and the New York State Police, under the direction of Major Brian Ratajczak.
Sentencing is scheduled for July 27, 2023, at 11:00 a.m. before Judge Geraci.
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Baltimore Man Sentenced to Almost Five Years in Federal Prison in Relation to a Counterfeit Card Encoding SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Leroy Holmes, age 62, of Baltimore, Maryland, to 57 months in federal prison, followed by three years of supervised release, for bank fraud in connection with a scheme to re-encode credit cards, debit cards and gift cards with the stolen financial information of multiple victims to make fraudulent purchases in the victims’ names and without their knowledge or permission. Holmes used the cards to purchase fuel for truckers at half price, in exchange for cash. Judge Russell also ordered that Holmes must pay restitution in the full amount of the victims’ losses, which is at least $212,000 and must forfeit electronic equipment including several cell phones, laptop computers and hard drives, as well as pay a money judgment of $106,032. The sentence was imposed on May 1, 2023.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Ross Luciano of the United States Secret Service - Baltimore Field Office; Acting Special Agent in Charge Troy W. Springer of the National Capital Region of the U.S. Department of Labor’s Office of Inspector General (“DOL-OIG”); Chief Robert McCullough of the Baltimore County Police Department; and Anne Arundel County Police Chief Amal E. Awad.
According to his plea agreement, from October 2019 to March 2022, Holmes defrauded financial institutions by creating and using counterfeit credit and debit cards by making unauthorized copies of the cards and reprogramming them, using the real banking information of victims, to fraudulently register as the victims’ credit or debit cards when used. Holmes then used the re-encoded cards to make fraudulent purchases without authority from cardholders or financial institutions, specifically to purchase gas for truckers at a discount at gas stations in Maryland and Pennsylvania in exchange for cash, typically half the total price of the fuel.
Some of the counterfeited credit and debit cards created and used by Holmes contained unemployment insurance benefits provided to victims from the state of California and were used without each victim’s knowledge or permission. Holmes created or used at least 594 counterfeit credit and debit cards, resulting in a loss of at least $212,000 to financial institutions, businesses and cardholders.
United States Attorney Erek L. Barron commended HSI, USPIS, the Secret Service, the DOL-OIG, the Baltimore County Police Department, and the Anne Arundel County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Evelyn L. Cusson and Joyce K. McDonald, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach. For more information about resources available to report fraud, please visit https://www.justice.gov/usao-md/report-fraud.
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Baltimore Cocaine Dealer Sentenced to 11 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher today sentenced Thomas Jones, age 53, of Baltimore, Maryland, to 11 years in federal prison, followed by 11 years of supervised release for conspiracy and for possession with intent to distribute five kilograms of more of cocaine.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration (DEA), Washington Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, in April 2020, DEA investigators with the Baltimore OCDETF Strike Force began an investigation of drug trafficking in West and Northwest Baltimore. During the investigation, Jones was identified as one of the conspirators who agreed to acquire and distribute controlled substances, including cocaine and crack cocaine.
As detailed in his plea agreement, law enforcement overheard calls between Jones and other conspirators discussing the distribution of cocaine and crack cocaine. Jones also met with customers and co-conspirators at his home in the 1600 block of Edmondson Avenue to engage in drug transactions and other drug trafficking activities. On April 29, 2021, law enforcement executed a search warrant at Jones’ home and seized 143 grams of cocaine, 62 grams of crack cocaine, drug packaging material and scales, and $19,965 in cash. Investigators also recovered a .45-caliber pistol, two standard .45-caliber magazines and one extended magazine clip, and 170 rounds of .45-caliber ammunition from Jones’ home. Jones admitted that he planned to distribute the cocaine and that the cash represented proceeds of drug trafficking.
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 prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through relationships forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
United States Attorney Erek L. Barron commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys LaRai N. Everett and James T. Wallner, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Alaska Couple Charged in $700,000 Investment Fraud Scheme Based on Fictitious Alaska Marijuana “Bud and Breakfast”Read the Press Release
FAIRBANKS – A federal grand jury in Alaska returned an indictment charging a husband and wife from Delta Junction, Alaska, with conspiracy and wire fraud for perpetrating a years’ long scheme that defrauded nearly two-dozen investors out of over $700,000 dollars.
According to court documents, from 2017 until 2020, Brian Keith Corty, 52, and his wife Candy Corty, 47, used false and fraudulent claims to solicit investors to buy shares of stock in Ice Fog Holdings, LLC, a company purportedly established to grow, extract, develop, manufacture, and sell products in the medical and recreational marijuana markets in Alaska and other future markets. The defendants purchased the Midway Lodge along the Richardson Highway near Delta Junction, Alaska, and represented to investors that their money would be used to turn it into a “Bud and Breakfast” that would be a “marijuana theme park” and include glass ceilings so Ice Fog’s customers could lie in bed and watch the northern lights. Defendants also represented that they would grow, cultivate, and sell marijuana from the location.
The defendants and their co-conspirators made numerous material misrepresentations to Ice Fog investors, including that Ice Fog was already generating income via contracts for security services, that Ice Fog would make over $3.85 million in annual sales by year one; over $13.05 million in annual sales by year two; and over $23.24 million by year three with an expected return to investors of 30 times their initial investment. The defendants also represented that inspectors from the Alaska Marijuana Control Office had performed inspections on the Midway Lodge to create the impression that their application to become a licensed marijuana grow and dispensary was in the final stages of approval. Defendants made these representations while knowing that Ice Fog had no meaningful current or prospective revenue stream and little to no prospect to obtain a license from the Alaska Marijuana Control Office.
Over the course of the scheme, the defendants caused at least 22 individuals to invest in Ice Fog, and raised approximately $722,000 dollars through the sale of “shares” in Ice Fog Holdings, the majority of which the defendants misappropriated for their own personal use.
U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
The Federal Bureau of Investigation is investigating this case with assistance from investigators at the Alaska Department of Law. Assistant U.S. Attorneys Ryan Tansey and Tom Bradley for the District of Alaska are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
45 Minneapolis Gang Members and Associates Indicted on Federal ChargesRead the Press Release
MINNEAPOLIS – Two indictments were unsealed today in the District of Minnesota charging 30 members and associates of two Minneapolis-based street gangs – the Highs and the Bloods – with racketeering (RICO) conspiracy involving alleged murder, attempted murder, robbery, obstruction of justice, and drug trafficking. Additional charges include the use of a firearm to commit murder and drug trafficking. In addition to these indictments, separate charging documents have been brought against an additional 15 Highs or Bloods members on drug and gun charges.
“Today’s announcement marks a fundamental change for federal law enforcement. We are now addressing gang violence for what it is: organized criminal activity,” said U.S. Attorney Andrew Luger. “As alleged, these defendants engaged in an unrelenting trail of violence, resulting in today’s federal RICO charges and related charges. The aggregate nature of a RICO prosecution has a deeper impact and carries a stronger deterrence message, with the ultimate goal of reducing violence and returning peace to our communities.”
“Violent gangs wreak havoc on local residents, engaging in bloody street wars and peddling dangerous drugs that devastate communities and families,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As today’s announcement demonstrates, the Criminal Division is deploying its resources and expertise in close coordination with our partners to target the specific drivers of violent crime and hold gang members and associates accountable for their offenses.”
“When rival gangs declare war on each other in the streets in any city, it is the innocent bystanders that suffer the greatest consequences,” said Director Steven Dettelbach of the ATF. “I want to thank the U.S. Attorney’s Office, the Justice Department’s Criminal Division, the Minneapolis Police Department, the Hennepin County Sheriff’s Office, and all of our law enforcement partners involved in bringing this case.”
“Today's indictment of numerous Highs and Bloods gang members is the result of an exhaustive investigation conducted with our local, state, and federal partners,” Special Agent in Charge Alvin M. Winston Sr. of the FBI Minneapolis Field Office. “No American should be forced to live in perpetual fear of being a victim of violent crime. These arrests demonstrate our efforts are turning the tide against organized crime in the Twin Cities and the upper Midwest.”
“For too long, criminal gangs have wreaked havoc on our streets, leaving in their wake tragedy and trauma that threatens to destroy families, neighborhoods, and communities. When we refrain from utilizing the full force of laws available to hold these bad actors accountable, we allow for this horrific behavior, and its impact on residents, to continue to be normalized. The behavior of these bad actors is outrageous and entirely unacceptable,” said Chief Brian O’Hara of the Minneapolis Police Department. “The most vulnerable in our communities are often those most impacted by gun violence and criminal gang activity. Our most vulnerable residents are entitled to the same protections and safety as everyone else in society. These arrests are just the beginning. For the first time ever, we have embedded Minneapolis police officers in the U.S. Attorney’s Office, and we will continue to develop future cases. Today we are standing shoulder to shoulder with all of law enforcement and making clear that this behavior will not be tolerated. If you intend to engage in violent crimes in our city, we will find you, we will track you down, and we will bring you to justice.”
Highs Enterprise Indictments
Twenty members and associates of the Highs Enterprise are charged in a 12-count indictment with RICO conspiracy involving five separate murders, over 10 attempted murders, robbery, and drug trafficking. Five additional defendants are charged in this indictment with separate drug and gun charges.
As alleged in this indictment, the Highs have been operating primarily in the north side of Minneapolis since approximately 2008. The Highs congregated at specific businesses and residences located at or near the West Broadway Avenue and Lyndale Avenue North intersection. Prospective Highs members proved their loyalty to the gang by “putting in work,” i.e., committing acts of violence for the benefit of the gang or offering other benefits such as introducing a source for drugs or firearms. Highs members were expelled from the gang and physically assaulted for failing to “put in work.” The Highs leaders, or “shot callers,” determined the quantity of drugs bought and sold and the locations where members were permitted to sell the drugs. The shot callers sometimes took the lead in obtaining and distributing firearms to other Highs members.
The indictment alleges a years-long pattern of violence including murders, numerous shootings and acts of retaliation against rival gang members, dealing in fentanyl, and robberies. Between April and September 2021, Highs members are alleged to have committed five murders.
Minneapolis Bloods Enterprise Indictments
Five members and associates of the Minneapolis Bloods charged in a separate indictment, including two who are charged with RICO conspiracy involving two separate murders, over 10 attempted murders, robbery, and drug trafficking. The remaining three defendants are charged with separate drug and gun charges, including using a firearm in a killing for two separate murders.
As alleged in this indictment, the Minneapolis Bloods chapter has been in existence for several decades, controlling and operating territory on the south side of Minneapolis. The hierarchy of the Bloods includes a head or leader of the gang, senior leaders, street-level leaders, and other members or associates. New recruits (called “YGs” or young gangsters) must fight, shoot, or make money to gain respect and increase their position in the gang. The next level in the gang is “OG” (original gangsters), who are well-respected members of the gang, and the highest level is “double OG.” All OGs are equal in rank and can direct “shots” or orders. “Enforcers” carry out the OG’s “shots” or orders by beating or assaulting the offender. Members of the Bloods often wear red clothing, display gang signs, and obtain tattoos that identify the Bloods, its members, or territory.
This indictment alleges a pattern of violence, including a 2020 shootout and murder at the 200 Club in north Minneapolis. In April 2022, Bloods members physically attacked, shot at, and murdered an individual outside of William’s Pub in Uptown. The indictment also alleges other criminal acts, including numerous instances of narcotics trafficking.
The following defendants are charged in the Highs indictment, with all defendants being from Minneapolis, unless otherwise noted below.
- Montez Brown, aka Tez Blood, 31, is charged with RICO conspiracy, conspiracy to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime, possession with intent to distribute fentanyl, and possession of a machinegun in furtherance of a drug trafficking crime.
- Dantrell Johnson, aka Trell Moe, 30, is charged with RICO conspiracy and with using and carrying a firearm in furtherance of murder.
- Gregory Hamilton, aka Lil’ Lord, 27, is charged with RICO conspiracy and using and carrying a firearm in furtherance of murder.
- Keon Pruitt, aka KenKen, 20, is charged with RICO conspiracy and using and carrying a firearm in furtherance of murder.
- Jovan Knight, aka 23, aka JoJo, 23, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Tyreese Giles, aka Reese, 22, is charged with RICO conspiracy.
- Josiah Taylor, aka Joker, 29, is charged with RICO conspiracy, conspiracy to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime.
- Douglas Mobley, aka Nut, 35, of St. Paul, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Jarrett Robinson, aka Gator, 25, is charged with RICO conspiracy.
- Trevaun Robinson, aka Tricky Tre, 27, is charged with RICO conspiracy, conspiracy to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime.
- Isaac Hodge, aka Ike, 46, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Christopher Finch, aka Twin, 22, is charged with RICO conspiracy, conspiracy to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime.
- Tony Jelks, aka BD, 29, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Cortez Blakemore, aka Tez, 33, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Randy Tate, aka “Randy,” aka 32, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Trevoneia Felton, aka Tre, 21, of St. Paul, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Chase Robertson, aka Chase Loco, 25, of St. Paul, is charged with RICO conspiracy, conspiracy to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime.
- Malcolm Samuels, aka Reggie, 24, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- William Banks, aka Bear, 33, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Ronald Washington, aka Black, 36, is charged with RICO conspiracy.
- William Johnson, aka Lil’ Will, 32, is charged with using and carrying a firearm in furtherance of murder.
- Dashaun Morris, aka Mush, 21, is charged with conspiracy to distribute controlled substances.
- Ernest Boyd, aka Shaky Shawn, 42, is charged with conspiracy to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime.
- Maron Bailey, aka Boonie, 25, is charged with conspiracy to distribute controlled substances.
- Isaiah Bell, 20, of St. Paul, is charged with conspiracy to distribute controlled substances.
Additionally, the following defendants are Highs members or associates who were charged in individual indictments:
- Montrell Shief, 23, is charged with being a felon in possession of a firearm and unlawful possession of a machinegun.
- Deon Williams, aka Ghost, 28, is charged with being a felon in possession of a firearm.
- Dennis Mobley, aka Diddy, 34, is charged with being a felon in possession of a firearm.
The following defendants are named in the Bloods indictment:
- Desean James Solomon, aka Black, 33, is charged with RICO conspiracy and two counts of using and carrying a firearm in furtherance of murder.
- Michael Allen Burrell, aka Skitz, 42, is charged with using and carrying a firearm in furtherance of murder.
- Leontawan Lentez Holt, aka Leon, aka Shotta, aka Shot Dog, 25, is charged with using and carrying a firearm in furtherance of murder.
Additionally, the following defendants are Bloods members or associates who were charged separately:
- Theodore Harold Bobo Jr., aka Boo, 37 of St. Paul, is charged with possession with intent to distribute cocaine, being a felon of possession of a firearm and ammunition, and possession of a firearm in furtherance of a drug trafficking crime.
- Jordan Kenneth Edwards, aka J-Bird, 34, is charged with possession with intent to distribute cocaine, being a felon of possession of a firearm and ammunition, and possession of a firearm in furtherance of a drug trafficking crime.
- Isaiah Lamuel Elisha Ferguson, 26, is charged with firearm conspiracy and being a felon in possession of a firearm.
- Josiah Ferguson, 24, is charged with firearm conspiracy and being a felon in possession of a firearm.
- Demarcus Cortez Garner, 24, is charged with being a felon in possession of a firearm and ammunition.
- Andrew Dayjon Griffin, 32, is charged with being a felon in possession of a firearm.
- Obuatawan Holt, aka Bone, 47, is charged with being a felon in possession of a firearm.
- Latoya Bea Smith, 47, is charged with knowingly transferring firearms to a felon.
- John Eric Solomon, aka Eastside, 33 of Minneapolis, is charged with being a felon in possession of a firearm.
- Traigh Sean Tillman, 29, is charged with being a felon in possession of a firearm.
- Nathan Walz, aka Fat Nate, aka Fat Blood, aka Fat Boy, aka White Boy Nate, 34, of Prior Lake, is charged with possession with intent to distribute methamphetamine, being a felon in possession of a firearm, and possession of a firearm in furtherance of a drug trafficking crime.
If convicted, the defendants face a range of penalties, including up to life in prison for racketeering conspiracy involving acts of murder, using a firearm to commit murder, and conspiracy to distribute controlled substances.
The ATF, FBI, Minneapolis Police Department, IRS Criminal Investigation, U.S. Postal Inspection Service, Hennepin County Sheriff’s Office, Minnesota Bureau of Criminal Apprehension, and Minnesota Department of Corrections are investigating the cases, with assistance from the U.S. Marshals Service, DEA, Homeland Security Investigations, and the Hennepin County Attorney’s Office. The Ramsey County Sheriff’s Office, Dakota County Sheriff’s Office, St. Paul Police Department, and numerous other law enforcement agencies contributed to this investigation through reports or evidence control.
Assistant U.S. Attorneys Samantha H. Bates, Justin A. Wesley, Esther Soria Mignanelli, and Joseph S. Teirab for the District of Minnesota and Trial Attorneys Brian W. Lynch and S. Benjamin Tonkin of the Criminal Division’s Organized Crime and Gang Section are prosecuting the cases.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
45 Minneapolis Gang Members and Associates Indicted on Federal ChargesRead the Press Release
Two indictments were unsealed today in the District of Minnesota charging 30 members and associates of two Minneapolis-based street gangs – the Highs and the Bloods – with racketeering (RICO) conspiracy involving alleged murder, attempted murder, robbery, obstruction of justice, and drug trafficking. Additional charges include the use of a firearm to commit murder and drug trafficking. In addition to these indictments, separate charging documents have been brought against an additional 15 Highs or Bloods members on drug and gun charges.
“Violent gangs wreak havoc on local residents, engaging in bloody street wars and peddling dangerous drugs that devastate communities and families,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As today’s announcement demonstrates, the Criminal Division is deploying its resources and expertise in close coordination with our partners to target the specific drivers of violent crime and hold gang members and associates accountable for their offenses.”
“Today’s announcement marks a fundamental change for federal law enforcement. We are now addressing gang violence for what it is: organized criminal activity,” said U.S. Attorney Andrew Luger for the District of Minnesota. “As alleged, these defendants engaged in an unrelenting trail of violence, resulting in today’s federal RICO charges and related charges. The aggregate nature of a RICO prosecution has a deeper impact and carries a stronger deterrence message, with the ultimate goal of reducing violence and returning peace to our communities.”
“When rival gangs declare war on each other in the streets in any city, it is the innocent bystanders that suffer the greatest consequences,” said ATF Director Steven Dettelbach. “I want to thank the U.S. Attorney’s Office, the Justice Department’s Criminal Division, the Minneapolis Police Department, the Hennepin County Sheriff’s Office, and all of our law enforcement partners involved in bringing this case.”
“Today's indictment of numerous Highs and Bloods gang members is the result of an exhaustive investigation conducted with our local, state, and federal partners,” Special Agent in Charge Alvin M. Winston Sr. of the FBI Minneapolis Field Office. “No American should be forced to live in perpetual fear of being a victim of violent crime. These arrests demonstrate our efforts are turning the tide against organized crime in the Twin Cities and the upper Midwest.”
“For too long, criminal gangs have wreaked havoc on our streets, leaving in their wake tragedy and trauma that threatens to destroy families, neighborhoods, and communities. When we refrain from utilizing the full force of laws available to hold these bad actors accountable, we allow for this horrific behavior, and its impact on residents, to continue to be normalized. The behaviors of these bad actors is outrageous and entirely unacceptable,” said Chief Brian O’Hara of the Minneapolis Police Department. “The most vulnerable in our communities are often those most impacted by gun violence and criminal gang activity. Our most vulnerable residents are entitled to the same protections and safety as everyone else in society. These arrests are just the beginning. For the first time ever, we have embedded Minneapolis police officers in the U.S. Attorney’s Office, and we will continue to develop future cases. Today we are standing shoulder to shoulder with all of law enforcement, and making clear that this behavior will not be tolerated. If you intend to engage in violent crimes in our city, we will find you, we will track you down, and we will bring you to justice.”
Highs Enterprise Indictments
Twenty members and associates of the Highs Enterprise are charged in a 12-count indictment with RICO conspiracy involving five separate murders, over 10 attempted murders, robbery, and drug trafficking. Five additional defendants are charged in this indictment with separate drug and gun charges.
As alleged in this indictment, the Highs have been operating primarily in the north side of Minneapolis since approximately 2008. The Highs congregated at specific businesses and residences located at or near the West Broadway Avenue and Lyndale Avenue North intersection. Prospective Highs members proved their loyalty to the gang by “putting in work,” i.e., committing acts of violence for the benefit of the gang or offering other benefits such as introducing a source for drugs or firearms. Highs members were expelled from the gang and physically assaulted for failing to “put in work.” The Highs’ leaders, or “shot callers,” determined the quantity of drugs bought and sold and the locations where members were permitted to sell the drugs. The shot callers sometimes took the lead in obtaining and distributing firearms to other Highs members.
The indictment alleges a years-long pattern of violence including murders, numerous shootings and acts of retaliation against rival gang members, dealing in fentanyl, and robberies. Between April and September 2021, Highs members are alleged to have committed five murders.
Minneapolis Bloods Enterprise Indictments
Five members and associates of the Minneapolis Bloods charged in a separate indictment, including two who are charged with RICO conspiracy involving two separate murders, over 10 attempted murders, robbery, and drug trafficking. The remaining three defendants are charged with separate drug and gun charges, including using a firearm in a killing for two separate murders.
As alleged in this indictment, the Minneapolis Bloods chapter has been in existence for several decades, controlling and operating territory on the south side of Minneapolis. The hierarchy of the Bloods includes a head or leader of the gang, senior leaders, street-level leaders, and other members or associates. New recruits (called “YGs” or young gangsters) must fight, shoot, or make money to gain respect and increase their position in the gang. The next level in the gang is “OG” (original gangsters), who are well-respected members of the gang, and the highest level is “double OG.” All OGs are equal in rank and can direct “shots” or orders. “Enforcers” carry out the OG’s “shots” or orders by beating or assaulting the offender. Members of the Bloods often wear red clothing, display gang signs, and obtain tattoos that identify the Bloods, its members, or territory.
This indictment alleges a pattern of violence, including a 2020 shootout and murder at the 200 Club in north Minneapolis. In April 2022, Bloods members physically attacked, shot at, and murdered an individual outside of William’s Pub in Uptown. The indictment also alleges other criminal acts, including numerous instances of narcotics trafficking.
The following defendants are charged in the Highs indictment, with all defendants being from Minneapolis, unless otherwise noted below.
- Montez Brown, aka Tez Blood, 31, is charged with RICO conspiracy, conspiracy to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime, possession with intent to distribute fentanyl, and possession of a machinegun in furtherance of a drug trafficking crime.
- Dantrell Johnson, aka Trell Moe, 30, is charged with RICO conspiracy and with using and carrying a firearm in furtherance of murder.
- Gregory Hamilton, aka Lil’ Lord, 27, is charged with RICO conspiracy and using and carrying a firearm in furtherance of murder.
- Keon Pruitt, aka KenKen, 20, is charged with RICO conspiracy and using and carrying a firearm in furtherance of murder.
- Jovan Knight, aka JoJo, 23, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Tyreese Giles, aka Reese, 22, is charged with RICO conspiracy.
- Josiah Taylor, aka Joker, 29, is charged with RICO conspiracy, conspiracy to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime.
- Douglas Mobley, aka Nut, 35, of St. Paul, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Jarrett Robinson, aka Gator, 25, is charged with RICO conspiracy.
- Trevaun Robinson, aka Tricky Tre, 27, is charged with RICO conspiracy, conspiracy to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime.
- Isaac Hodge, aka Ike, 46, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Christopher Finch, aka Twin, 22, is charged with RICO conspiracy, conspiracy to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime.
- Tony Jelks, aka BD, 29, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Cortez Blakemore, aka Tez, 33, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Randy Tate, aka Randy, 32, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Trevoneia Felton, aka Tre, 21, of St. Paul, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Chase Robertson, aka Chase Loco, 25, of St. Paul, is charged with RICO conspiracy, conspiracy to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime.
- Malcolm Samuels, aka Reggie, 24, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- William Banks, aka Bear, 33, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
- Ronald Washington, aka Black, 36, is charged with RICO conspiracy.
- William Johnson, aka Lil’ Will, 32, is charged with using and carrying a firearm in furtherance of murder.
- Dashaun Morris, aka Mush, 21, is charged with conspiracy to distribute controlled substances.
- Ernest Boyd, aka Shaky Shawn, 42, is charged with conspiracy to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime.
- Maron Bailey, aka Boonie, 25, is charged with conspiracy to distribute controlled substances.
- Isaiah Bell, 20, of St. Paul, is charged with conspiracy to distribute controlled substances.
Additionally, the following defendants are Highs members or associates who were charged in individual indictments:
- Montrell Shief, 23, is charged with being a felon in possession of a firearm and unlawful possession of a machinegun.
- Deon Williams, aka Ghost, 28, is charged with being a felon in possession of a firearm.
- Dennis Mobley, aka Diddy, 34, is charged with being a felon in possession of a firearm.
The following defendants are named in the Bloods indictment:
- Desean James Solomon, aka Black, 33, is charged with RICO conspiracy and two counts of using and carrying a firearm in furtherance of murder.
- Michael Allen Burrell, aka Skitz, 42, is charged with using and carrying a firearm in furtherance of murder.
- Leontawan Lentez Holt, aka Leon, aka Shotta, aka Shot Dog, 25, is charged with using and carrying a firearm in furtherance of murder.
Additionally, the following defendants are Bloods members or associates who were charged separately:
- Theodore Harold Bobo Jr., aka Boo, 37 of St. Paul, is charged with possession with intent to distribute cocaine, being a felon of possession of a firearm and ammunition, and possession of a firearm in furtherance of a drug trafficking crime.
- Jordan Kenneth Edwards, aka J-Bird, 34, is charged with possession with intent to distribute cocaine, being a felon of possession of a firearm and ammunition, and possession of a firearm in furtherance of a drug trafficking crime.
- Isaiah Lamuel Elisha Ferguson, 26, is charged with firearm conspiracy and being a felon in possession of a firearm.
- Josiah Ferguson, 24, is charged with firearm conspiracy and being a felon in possession of a firearm.
- Demarcus Cortez Garner, 24, is charged with being a felon in possession of a firearm and ammunition.
- Andrew Dayjon Griffin, 32, is charged with being a felon in possession of a firearm.
- Obuatawan Holt, aka Bone, 47, is charged with being a felon in possession of a firearm.
- Latoya Bea Smith, 47, is charged with knowingly transferring firearms to a felon.
- John Eric Solomon, aka Eastside, 33 of Minneapolis, is charged with being a felon in possession of a firearm.
- Traigh Sean Tillman, 29, is charged with being a felon in possession of a firearm.
- Nathan Walz, aka Fat Nate, aka Fat Blood, aka Fat Boy, aka White Boy Nate, 34, of Prior Lake, is charged with possession with intent to distribute methamphetamine, being a felon in possession of a firearm, and possession of a firearm in furtherance of a drug trafficking crime.
If convicted, the defendants face a range of penalties, including up to life in prison for racketeering conspiracy involving acts of murder, using a firearm to commit murder, and conspiracy to distribute controlled substances.
The ATF, FBI, Minneapolis Police Department, IRS Criminal Investigation, U.S. Postal Inspection Service, Hennepin County Sheriff’s Office, Minnesota Bureau of Criminal Apprehension, and Minnesota Department of Corrections are investigating the cases, with assistance from the U.S. Marshals Service, DEA, Homeland Security Investigations, and the Hennepin County Attorney’s Office. The Ramsey County Sheriff’s Office, Dakota County Sheriff’s Office, St. Paul Police Department, and numerous other law enforcement agencies contributed to this investigation through reports or evidence control.
Trial Attorneys Brian W. Lynch and S. Benjamin Tonkin of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Samantha H. Bates, Justin A. Wesley, Esther Soria Mignanelli, and Joseph S. Teirab for the District of Minnesota are prosecuting the cases.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
2 May 2023
Young man admits to transporting automatic weapon parts into MexicoRead the Press Release
McALLEN, Texas – A 19-year-old Edinburg resident has pleaded guilty to smuggling goods from the United States, announced U.S. Attorney Alamdar S. Hamdani.
Peter Deshaewn Maldonado-Guillen admitted to attempting to export five AK-47 rifle barrels without a license or written approval.
On Feb. 14, Maldonado-Guillen crossed through the Hidalgo Port of Entry (POE). However, Mexican authorities selected his vehicle for inspection and denied entry into Mexico. He was not in possession of the appropriate documentation for the vehicle and had to return to the United States.
Once back at the Hidalgo POE, he denied having any firearms, but U.S. authorities referred him and his vehicle for secondary inspection.
During a search of the vehicle, law enforcement discovered five AK-47 barrels in the quarter panel area of the vehicle. Maldonado-Guillen admitted to taking possession of the weapon parts in the United States, loading them into his vehicle and transporting the weapon parts into Mexico.
AK-47 barrels are designated as defense articles on the U.S. Munitions List. Maldonado-Guillen did not obtain consent or a license to export the weapon parts into Mexico.
U.S. Chief District Judge Randy Crane will impose sentencing July 13. At that time, Maldonado-Guillen faces up to 10 years in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Jose A. Garcia is prosecuting the case.
Washington man charged for International District drive-by shooting and possession of drugsRead the Press Release
Seattle – A 48-year-old man with ties to Seattle was charged federally with unlawful possession of a firearm and other offenses after he was arrested for a drive-by shooting in Seattle’s International District, announced US Attorney Nick Brown. Phuong Nguyen Le, appeared today on the indictment. In February 2023 Le was allegedly found with fentanyl, heroin, and cocaine base. Le has been in custody in King County and today was brought over for arraignment on the federal charges.
On February 24, 2023, Seattle Police officers responded to reports of shots fired at the intersection of 10th Avenue South and South King Street in Seattle. Witnesses at the scene reported a man in a white Mercedes fired a handgun in the air multiple times at the intersection. SPD officers then located the vehicle nearby and found Phuong Nguyen Le driving, with his girlfriend in the passenger seat. Le was the owner of the vehicle. Le ultimately gave consent to search the vehicle. SPD officers seized the following items:
- a Springfield Armory XD-9 9mm caliber pistol, bearing serial number BY348001, with a round of ammunition in the chamber and a partially loaded magazine;
- an additional Springfield Armory 9mm caliber magazine loaded with ammunition;
- two spent bullet shell casings;
- approximately 83 grams of heroin;
- approximately 135 grams of cocaine;
- approximately 194 grams of suspected fentanyl powder;
- approximately 350 pills suspected to contain fentanyl;
- multiple cloth zipper bags containing approximately $4,400 in mixed denominations;
- various baggies;
- large amounts of handwritten names and phone numbers written on
- various documents;
- A notebook containing names.
In April of 2012, Le was convicted of distribution of cocaine base in U.S. District Court for the Western District of Washington. In September of 2020, Le was sentenced to two years in prison for illegal possession of a firearm and illegal possession of drugs.
Unlawful possession of a firearm is punishable by up to 15 years imprisonment. Possession of a controlled substance with intent to distribute is punishable by up to 40 years imprisonment. Carrying a firearm during and in relation to a drug trafficking crime is punishable by up to life in imprisonment.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Seattle Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is being prosecuted by Assistant United States Attorney Brian Wynne.
Violent Felon Sentenced to 15 Years in Federal Prison for Attempted RobberyRead the Press Release
A Cedar Rapids man who attempted to rob a marijuana dealer and later shot at least twenty‑four times at an apartment building was sentenced on May 1, 2023, to 15 years in federal prison.
Lucas Frank Floyd, age 28, from Cedar Rapids, Iowa, received the prison term after a December 29, 2022 guilty plea to one count of conspiracy to interfere with commerce by robbery.
In a plea agreement, Floyd admitted that, on March 1, 2021, he agreed with others to rob a Cedar Rapids marijuana dealer. Floyd and two others, all carrying firearms, broke into the marijuana dealer’s home and demanded marijuana and money from the dealer. When the dealer told Floyd that he did not have any marijuana or money, Floyd pistol‑whipped the dealer, causing bodily injury to the dealer. Floyd and the two other individuals then left the dealer’s home without taking anything. On March 8, 2021, law enforcement officers conducted a traffic stop on a car in which Floyd was seated in the front‑passenger seat. During the traffic stop, Floyd provided false names and dates of births to officers. During a search of the car, officers recovered three firearms, extended magazines, marijuana, and a black ski mask. The next day, on March 9, 2021, law enforcement officers searched Floyd’s residence and recovered another firearm.
Floyd had previously been convicted of felony offenses in September 2011, May 2012, and December 2012, and he was forbidden from possessing firearms.
Floyd also admitted that, on June 5, 2022, he fired at least twenty‑four shots at an occupied apartment building, striking the apartments in the apartment building at least twenty‑three times, with seventeen bullet holes found inside one of the apartments. The next day, law enforcement officers attempted to arrest Floyd when he jumped out of an apartment window and attempted to flee. Officers eventually arrested Floyd and they recovered the firearm Floyd used to shoot at the apartment building the night before.
Floyd was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Floyd was sentenced to 180 months’ imprisonment, and he was ordered to make $2,500 in restitution to the owner of the apartment building he shot. He must also serve a three‑year term of supervised release after the prison term. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Floyd is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-00050.
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United States Files Lawsuit Against Radnor, PA Radiologist Alleging Unnecessary Peripheral Artery ProceduresRead the Press Release
United States Attorney for the Eastern District of Pennsylvania, Jacqueline C. Romero, announced today that the United States has filed a complaint in U.S. District Court under the False Claims Act against Dr. James McGuckin of Radnor, PA, an interventional radiologist, and his affiliated practices and management entities. In its complaint, the United States alleges that McGuckin and his entities billed Medicare and the Federal Employees Health Benefits Program for medically unnecessary invasive peripheral artery procedures in patients’ legs between at least January 1, 2016 and December 31, 2019, and for which McGuckin and his entities were reimbursed at least $6.5 million for over 500 claims. The practice-entity defendants are: (1) Peripheral Vascular Institute of Philadelphia, LLC; (2) Main Line Vascular Institute LLC, of King of Prussia, PA; (3) Lehigh Valley Vascular Institute, LLC, of Bethlehem, PA; and (4) PA Vascular Institute, LLC, of East Stroudsburg, PA. The management-company defendants are Philadelphia Vascular Institute, LLC, and Pennsylvania Vascular Institute, P.C.
“Performing medically unnecessary procedures puts patients at risk and contributes to the soaring costs of health care, especially the invasive vascular procedures alleged in this case,” said U.S. Attorney Romero. “As this litigation demonstrates, we are committed to safeguarding federal health care program beneficiaries and protecting public funds.”
“Medicare rules are designed to protect beneficiaries and taxpayer dollars,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Inspector General, Department of Health and Human Services. “HHS-OIG and the U.S. Attorney's Office will continue to work together to fight health care fraud and investigate allegations of co-pay and kickback violations.” SAC Dixon added: “Anyone with information about health care fraud in this or other cases should contact the HHS-OIG hotline at 1-800-HHS-TIPS (1-800-447-8477) or online at https://oig.hhs.gov/fraud/report-fraud.”
The allegations regarding unnecessary vascular procedures are described in detail in the complaint and include unnecessary angioplasty, atherectomy, and the placement of stents, as well as the indiscriminate use of intravenous ultrasound. Each procedure requires puncturing the skin and inserting devices into and through the arteries in patients’ legs. As the relevant standards of care indicate, unnecessary invasive vascular procedures may cause harm to patients’ health, including increasing their likelihood of needing future procedures, and putting them at greater risk of leg amputations.
As alleged, Dr. McGuckin and Defendants knew from prior administrative sanctioning that unnecessary procedures are contrary to standards of care and federal law. First, in 2015, pursuant to a Consent Decree, McGuckin was sanctioned by the Washington [State] Medical Quality Insurance Commission—and subsequently several other states’ medical boards and Medicaid programs, including Pennsylvania—for improperly performing unnecessary, experimental vascular procedures, including angioplasty and stenting, on hundreds of patients for the purported treatment of Multiple Sclerosis—a non-vascular disease.
Second, in 2018, McGuckin signed a False Claims Act settlement as manager/owner of Vascular Access Centers, L.P. (“VAC”) and related entities, which resolved multi-million dollar qui tam lawsuits in the Southern District of New York and Eastern District of Louisiana. In the settlement, McGuckin, on behalf of his entities, admitted that his entities regularly scheduled, performed, and billed for vascular procedures “even though the patients presented without any documented evidence that they exhibited a need for therapies.” More information on those prior settlements is available here: https://www.justice.gov/usao-sdny/pr/manhattan-us-attorney-announces-settlement-fraudulent-billing-claims-against-vascular; https://www.justice.gov/usao-edla/pr/vascular-access-centers-pay-least-3825-million-resolve-false-claims-act-allegations.
Additionally, in 2019, McGuckin caused VAC to file for bankruptcy in this District—a filing that Bankruptcy Judge Ashely M. Chan found was orchestrated in bad faith. Judge Chan found that McGuckin’s misconduct in connection with the VAC bankruptcy, including making false statements to the Court on behalf of Philadelphia Vascular Institute, LLC, subjected him to sanctions by the Court. See, e.g., In re Vascular Access Centers, L.P., 611 B.R. 742 (Bankr. E.D. Pa 2000), appeal pending.
The current False Claims Act case is captioned United States of America ex rel. Aaron Shiloh, M.D., FSIR v. Philadelphia Vascular Institute and James McGuckin, M.D., Case No. 18-5458 (E.D. Pa.). This lawsuit was originally filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties (called relators) to sue on behalf of the government when they discover evidence that defendants have submitted false claims for government funds and to receive a share of any recovery. If the United States proves that a defendant has knowingly submitted false claims, it is entitled to recover three times the damage that resulted plus a penalty of $13,508 to $27,018 per claim. The False Claims Act also permits the government to intervene in such lawsuits, as it did when it filed a notice of intervention in this case on February 28, 2023.
The relator, Dr. Aaron Shiloh, is an interventional radiologist who worked for and with Defendants. “We sincerely thank the relator in this case. Without people like Dr. Shiloh being willing to shed light on allegations of fraud, preserving government program funds would be far more challenging,” said U.S. Attorney Romero.
The case has been investigated by the U.S. Department of Health and Human Services Office of the Inspector General. The case is being handled by Assistant U.S. Attorneys Lauren DeBruicker and Matthew E. K. Howatt, as well as Auditor Dawn Wiggins and Investigator Frank O’Connor.
All civil claims are allegations only. There has been no determination of civil liability.
U.S. Attorney’s Office Settles Disability Discrimination Lawsuit Against Three Michigan State AgenciesRead the Press Release
Detroit, MI – The United States Attorney’s Office for the Eastern District of Michigan has reached a settlement with the Michigan Department of Treasury, the Michigan Civil Service Commission, and the State of Michigan’s Office of State Employer to resolve a disability discrimination lawsuit.
The lawsuit is based on a disability discrimination claim made by an employee of the Michigan Department of Treasury. In the lawsuit, the U.S. Attorney’s Office describes how the employee needed to complete a medical treatment during work hours and submitted a reasonable accommodation request to use an empty office space for a short time each day. After initially allowing the employee to do so, the Michigan Department of Treasury revoked the accommodation, denying her subsequent requests and requiring the employee to travel back and forth from home during the workday to complete the procedure, until she filed a charge with the U.S. Equal Employment Opportunity Commission. The lawsuit also describes the roles that the Michigan Civil Service Commission and the Office of State Employer play in the reasonable accommodation process for numerous other state agencies.
Under the terms of the settlement agreement, the Michigan Department of Treasury will pay $40,000 in damages to the employee’s estate. As noted in the settlement agreement, the Michigan Civil Service Commission recently revised statewide rules and regulations for employees’ reasonable accommodations. Additionally, the settlement agreement requires the Michigan Department of Treasury, the Michigan Civil Service Commission, and the Office of State Employer to review and revise their respective ADA policies, practices, procedures, and documents. Supervisors at the Michigan Department of Treasury must receive periodic training on the ADA and these revised policies. Staff at the Michigan Civil Service Commission and the Office of State Employer who are involved in reviewing, evaluating, or making decisions on reasonable accommodation requests must attend the same training programs.
“At the heart of this case are the experiences of one employee, who found herself struggling with both a serious health condition and her employer,” said Dawn N. Ison, United States Attorney for the Eastern District of Michigan. “Unfortunately, the employee passed away before the case resolved, but we commend the state agencies involved for taking steps to address her individual case and their commitment to revising broader policies and procedures that will help protect the rights of other state employees who have disabilities.”
The case was brought by Assistant U.S. Attorney Shannon Ackenhausen, Acting Chief of the Civil Rights Unit. The full and fair enforcement of the ADA is a priority of the U.S. Attorney’s Office for the Eastern District of Michigan and the Disability Rights Section of the Justice Department’s Civil Rights Division. The Civil Rights Unit of the U.S. Attorney’s Office was established in 2010 with the mission of prioritizing federal civil rights enforcement. For more information on the Office’s civil rights efforts, including a copy of the court’s opinion and order, please visit https://www.justice.gov/usao-edmi/programs/civil-rights.
Individuals who believe they have been subjected to discrimination or experienced a civil rights violation can submit a complaint with the U.S. Attorney’s Office by email at [email protected] or by phone at (313) 226-9151. Complaints can also be submitted to the Civil Rights Division through its complaint portal.
U.S. Attorney Will Thompson Announces Digital Ad Campaign Targeting Romance Fraud ScamsRead the Press Release
CHARLESTON, W.Va. – A convicted participant in a multimillion-dollar romance fraud scam is helping the Southern District of West Virginia sound the alarm about these schemes, said United States Attorney Will Thompson.
Thompson’s office has launched a digital awareness campaign that features 15- and 30-second public service announcements as well as a long-form video alerting West Virginians to online fraud scams. The campaign focuses on how the elderly population is particularly at risk.
The long-form video includes warnings from Kenneth Emeni, 30, a citizen of Nigeria who admitted to participating in a Huntington-based scheme that defrauded at least 200 victims, many of whom are elderly, of at least $2.5 million. In the video, Emeni explains how false personas were created to establish romantic, friendship or business relationships with unwitting individuals via email, text messaging, online dating websites and social media platforms. Emeni also offers examples of how victims were persuaded to send money for a variety of false and fraudulent reasons for the benefit of the false personas.
“As part of his acceptance of responsibility for his crime, Mr. Emeni agreed to provide a firsthand account of how these scams identify, target and exploit their victims,” Thompson said. “We hope this awareness campaign will help West Virginians safeguard themselves and their loved ones against fraudulent schemes.”
Emeni pleaded guilty to conspiracy to commit money laundering, and was sentenced on December 19, 2022, to one year and one day in prison.
The awareness videos also provide the number for the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed Monday through Friday, 10 a.m. to 6 p.m. Eastern Time. English, Spanish, and other languages are available.
The public is also encouraged to report potential online fraud activity or scams at https://www.ic3.gov.
All three awareness campaign videos are available on the YouTube Channel for the U.S. Attorney’s Office: https://www.youtube.com/@USAOSDWV. The PSA videos will appear over the next two months on YouTube and various social media platforms, apps and websites.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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Two corrections officers charged with violating a prisoner’s civil rightsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two correctional officers from United States Penitentiary Hazelton have been charged with civil rights violations involving the assault of a prisoner.
Robert David Sims, 40, of Bruceton Mills, West Virginia, and Joshua David Sines, 38, of Friendsville, Maryland, were each charged with one count of deprivation of rights and one count of assault with serious bodily injury. According to the indictment, Sims and Sines, while employed by USP Hazelton in Preston County, struck an inmate in the face, head, arms, and torso, causing significant injuries.
If convicted, Sims and Sines each face up to 20 years in prison for the civil rights charge and up to 10 years for the assault charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Department of Justice Office of Inspector General investigated the case.
Assistant U.S. Attorney Brandon Flower is prosecuting the case on behalf of the government.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Pharmacy Owners Charged with $29M Health Care Fraud SchemeRead the Press Release
An indictment was unsealed today in Brooklyn charging two New York men for their alleged participation in a scheme to submit false and fraudulent claims to Medicare and Medicaid for medically unnecessary prescriptions and over-the-counter products that were not actually dispensed, to pay illegal kickbacks and bribes, and to launder the proceeds of their scheme.
According to court documents, Taesung “Terry” Kim, 58, of Purchase, and Dacheng “Bruce” Lu, 44, of Great Neck, partly owned and operated four pharmacies: 888 Pharmacy Inc. and Huikang Pharmacy Inc., located in Brooklyn, and Elmcare Pharmacy Inc. and NY Elm Pharmacy Inc., located in Flushing. Between January 2015 and December 2022, Kim and Lu allegedly conspired with others to submit false and fraudulent claims to Medicare and Medicaid for dispensing pharmaceutical and over-the-counter products that were medically unnecessary, procured by the payment of kickbacks and bribes, or not provided. Further, Kim and Lu allegedly conspired with others who paid illegal kickbacks and bribes, in the form of cash and supermarket gift certificates, to Medicare beneficiaries and Medicaid recipients who filled their prescriptions at their pharmacies. Kim and Lu also conspired with others to pay and paid illegal kickbacks and bribes, in the form of rent and office staff, to the doctors who prescribed the medically unnecessary medications filled at their pharmacies.
Kim and Lu also are alleged to have laundered the proceeds of their fraud through shell entities to generate cash that they could disperse as unrecorded profits to themselves and the pharmacies’ other owners and to pay kickbacks to pharmacy customers. As part of the scheme, Kim and Lu’s pharmacies submitted approximately $29 million in fraudulent claims to Medicare and Medicaid.
Kim and Lu are charged with conspiracy to commit health care fraud, conspiracy to commit money laundering, and conspiracy to pay illegal health care kickbacks and bribes. If convicted, they each face a maximum penalty of 10 years in prison for conspiracy to commit health care fraud, 20 years in prison for conspiracy to commit money laundering, and five years in prison for conspiracy to pay illegal health care kickbacks and bribes.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Breon Peace for the Eastern District of New York, Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office, and Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI and HHS-OIG are investigating the case.
Trial Attorney Patrick J. Campbell and Acting Assistant Chief Miriam Glaser Dauermann of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Men, Including Buffalo Police Detective, Charged for Purchases Made on Illicit Online MarketplaceRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney Trini E. Ross announced today that Terrance Michael Ciszek a/k/a DrMonster, 33, and Corey Robert Dodge a/k/a Cakesbaylor, 41, both of Buffalo, NY, were charged in separate complaints with possessing 15 or more unauthorized access devices. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Charles M. Kruly, who is handling the cases, stated that since August 2018, the FBI has been investigating an illicit online marketplace known as Genesis Market, whose operators compile stolen data, such as computer and mobile device identifiers, email addresses, usernames, and passwords, from malware-infected computers around the globe and package it for sale on the market. Purchases made through Genesis Market are conducted using virtual currency, such as bitcoin.
According to the complaint against defendant Ciszek, a Buffalo Police Detective, between March 16 and July 29, 2020, he purchased 11 packages on Genesis Market that included 194 stolen account credentials. Investigators also determined that Ciszek had bitcoin wallet addresses associated with UniCC, a dark web carding website. Carding websites are illicit marketplaces and/or forums used to share stolen credit card data and discuss techniques for obtaining credit card data, validating it, and using it for criminal activity.
According to the complaint against Dodge, between March 26, 2020, and May 30, 2021, he purchased 14 packages on Genesis Market, that included approximately 8,586 stolen account credentials. The stolen credentials included accounts for Paypal, Tracfone, eBay, Amazon, FedEx, Etsy, Walmart, Chase, Venmo, and eTrade.
Ciszek and Dodge made an initial appearance this afternoon before U.S. Magistrate Judge Michael J. Roemer and were released on conditions. Defendant Ciszek has been suspended with pay by the Buffalo Police Department pending further internal investigation.
The complaints are the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
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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Tampa Area Siblings Sentenced to 15 Years for Series of Convenience Store RobberiesRead the Press Release
Tampa, FL – U.S. District Judge Mary Scriven has sentenced Christopher Alvarez (19, Tampa) and Dyonnie Alvarez (22, Tampa) to 15 years in federal prison for four Hobbs Act robberies, conspiracy to commit those robberies, and two counts of brandishing a firearm during a crime of violence during the commission of the robberies. Dyonnie Alvarez was also sentenced for an additional attempted Hobbs Act robbery. Both had previously pleaded guilty.
According to court documents, on May 5, 2022, Christopher and Dyonnie Alvarez and their codefendant, Enrique Marquez, robbed two convenience stores in the Tampa area. During the robberies, Marquez brandished a firearm. The next morning, the three individuals robbed two more Tampa area convenience stores in the same manner. Also, on May 1, 2022, Marquez and Dyonnie Alvarez attempted to rob an individual in an attempt to obtain narcotics.
Marquez previously pleaded guilty and was sentenced on March 28, 2023, to 17 years and 11 months in federal prison.
This case was investigated by the Hillsborough County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Samantha Newman. The forfeiture was handled by Assistant United States Attorney Suzanne Nebesky.
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.
St. Louis County Man Admits Smuggling WildlifeRead the Press Release
ST. LOUIS – A man from St. Louis County, Missouri on Tuesday admitted smuggling regulated wildlife into the United States.
Michael Amato, 68, pleaded guilty in U.S. District Court in St. Louis to a felony charge of fraudulently importing protected wildlife. He also agreed to forfeit more than six dozen taxidermy bird mounts that were seized from his home on Sept. 1, 2021 as well as bird mounts still in his possession, including owls, buzzards, hawks, eagles, harriers and cranes.
Amato admitted as part of his plea that he and unnamed associates smuggled wildlife into the United States from Malta, England, Germany and other countries without declaring that wildlife and without obtaining the permits required by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). From February 2018 through September 2020, Amato smuggled in 67 different birds.
Some are listed as threatened with extinction, others could become so if their trade is not regulated.
Amato told his international associates how to fill out export/import forms and list the wildlife to avoid law enforcement detection, his plea says.
Amato is scheduled to be sentenced August 8. Both sides have agreed to recommend three years of probation and a $5,000 donation to the World Bird Sanctuary to represent a portion of the market value of the protected wildlife seized from his home.
The case was investigated by the U.S. Fish and Wildlife Service. Assistant U.S. Attorney Dianna Collins is prosecuting the case.
Solano County Hells Angels Member Sentenced to 3 Years in Prison for Firearms OffensesRead the Press Release
SACRAMENTO, Calif. — Michael Mahoney, 30, of Fairfield, was sentenced today to three years and one month in prison for possessing a firearm with an obliterated or altered serial number and possessing an unregistered short-barreled shotgun, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 8, 2021, law enforcement officers executed a search warrant at Mahoney’s home as part of an investigation into a brutal beating at the clubhouse for the Vallejo chapter of the Hells Angels Motorcycle Club. In October 2021, two different victims—both of whom were members of a different motorcycle club that is considered a “puppet” (or subordinate) club of the Hells Angels—were beaten by Mahoney and other club members based on perceived infractions of the Hells Angels’ rules.
During the December 2021 search of Mahoney’s Fairfield home, law enforcement found several firearms, including a Smith & Wesson .38-caliber revolver with a serial number that had been scratched off, as well as a Sears & Roebuck 12-gauge shotgun with a barrel that had been sawn off to approximately 12.75 inches in length. Mahoney had not registered his ownership of this short-barreled shotgun with the National Firearms Registration and Transfer Record, as required by federal law.
This case was the product of an investigation by the Solano County District Attorney’s Office, the Solano County Sheriff’s Office, the Vacaville Police Department, the Vallejo Police Department, the Fairfield Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Aaron D. Pennekamp and Jason Hitt prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Shoreline, Washington, man sentenced to 51 months in prison for illegal possession of ammunitionRead the Press Release
Seattle – A 45-year-old Shoreline, Washington man was sentenced today in U.S. District Court in Seattle to 51 months in prison for unlawful possession of ammunition, announced U.S. Attorney Nick Brown. Rustam Yusupov pleaded guilty in February 2023, following his arrest in March of 2022. At today’s sentencing hearing U.S. District Judge John C. Coughenour said the prevalence of guns on the streets is leading “to a bloodbath in this country.”
“Washington State is a pioneer in Red Flag laws designed to keep firearms out of the hands of those who pose a danger,” said U.S. Attorney Nick Brown. “We will never know what motivated Mr. Yusupov to bring high powered firearms and sniper rifles to a downtown hotel. This prosecution means his arsenal has been surrendered to police, and he remains prohibited from purchasing more firearms in the future.”
According to records filed in the case, Seattle Police Officers were called to a downtown Seattle hotel room on March 10, 2022, with reports of a distraught man asking the hotel staff for assistance. When the officers went to the hotel room, they noted that furnishings had been over-tuned, with the mattress moved to block the door. Police found two firearms in the room – including a “ghost gun,” -- a firearm without a serial number.
Due to his agitated state, Yusupov was transported for medical attention. As officers were preparing to leave the hotel, a staff member working in the garage alerted them to weapons he had seen in Yusupov’s car. In the car were multiple firearms – including two additional “ghost guns.” In all, police recovered:
- FMK Firearms Model AR-1 Extreme 5.56 NATO caliber rifle.
- Aero Precision Model X15 5.56 caliber pistol.
- Ruger Model 5.7 5.7x28mm caliber pistol.
- Ruger Model 18029 Precision 6.5mm Creedmoor/.308 Winchester Caliber rifle.
- Kel-Tec Model Sub 2000 9x19mm caliber rifle.
- A North American Arms Corp. Derringer .22 revolver.
- Two Polymer80 9mm caliber pistols with no serial number.
- A skeletonized AR-15 5.56 NATO caliber pistol with no serial number.
In his plea agreement Yusupov admits that he is the subject of a domestic violence protection order. He had been ordered by King County Superior Court to surrender all his weapons. In March 2020 and again in May 2021, Yusupov was ordered to surrender his firearms and had signed paperwork and informed law enforcement that he no longer possessed any firearms.
When law enforcement went to search Yusupov’s home, they found the walls smeared with blood. Testing revealed that it was the blood of a dog. A dog was also found in the home in a kennel, badly malnourished. It was taken to a shelter for care.
The search of the home resulted in the recovery of two inert grenades; a container for 120mm rocket projectiles; hundreds of rounds of assorted ammunition (both handgun and rifle caliber), including 600 rounds of Israel Military Industries 5.56mm caliber ammunition; multiple handguns and rifle magazines (some loaded); assorted pistol slides; a ballistic vest with rifle plates; a bolt-action rifle; and assorted firearms accessories and firearms parts.
Yusupov is forfeiting multiple firearms and ammunition to the government.
The case was investigated by the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF).
The case was prosecuted by Assistant United States Attorney Todd Greenberg.
Roommates of Three-Time Convicted Sex Offender Sentenced to Prison on Child Exploitation OffensesRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody has sentenced Donald Ray Shadowens (30, Clearwater) to 6 years in federal prison for receiving child sex abuse material. On April 19, 2023, Judge Moody sentenced related defendant Craigan Joyner (20, Clearwater) to 5 years and 10 months in federal prison for receiving child sex abuse material. Both Shadowens and Joyner will be required to register as sex offenders and pay restitution to their victims. Shadowens had pleaded guilty on February 8, 2023, and Joyner pleaded guilty on January 11, 2023.
According to court documents, Joshua Tripp, Joyner, and Shadowens all lived together at a residence in Clearwater. On August 18, 2022, investigators executed a search warrant at the residence and discovered more than 1,000 images and videos of child sexual abuse material on the three defendants’ electronic devices. This material included children less than 12 years old and children in sado-masochistic images. Additionally, certain conversations between Tripp and Joyner indicated their desire to drug and rape children.
Tripp pleaded guilty to one count of distributing child sex abuse material and one count of receiving child sex abuse material on March 28, 2023. He is scheduled for sentencing on November 8, 2023.
“These predators openly discussed their desires to drug and rape children and possessed a vast collection of explicit images and videos of children,” said Homeland Security Investigations (HSI) Tampa Assistant Special Agent in Charge Kristopher Pagitt. “HSI, alongside our partners in the Dickson County (Tennessee) Sheriff’s Office, the Clearwater Police Department, and the Pinellas County Sheriff’s Office, are fully committed to making our streets safe from those who sexually exploit children.”
This case was investigated by Homeland Security Investigations (HSI), with substantial assistance from the Dickson County (Tennessee) Sheriff’s Office, the Clearwater Police Department, and the Pinellas County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Erin Claire Favorit.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Registered Nurse Sentenced to 4 Years in Prison for Tampering with and Stealing Painkillers from Detroit HospitalRead the Press Release
DETROIT - A registered nurse was sentenced today to four years in prison after having pleaded guilty to tampering with vials and syringes of a liquid painkiller at the Detroit hospital where she worked, announced United States Attorney Dawn N. Ison.
Joining Ison in the announcement was Ronne Malham, Special Agent in Charge of the Food and Drug Administration (FDA), Office of Criminal Investigations, Chicago Field Office.
Mary Cheatham, 42, of Ypsilanti, Michigan, was sentenced by United States District Judge Mark Goldsmith.
According to court records, in 2020, Cheatham was employed as a licensed registered nurse at a local hospital in Detroit. Cheatham admitted she tampered with vials and syringes containing the painkiller hydromorphone, which she knew were intended to be administered to patients for the purpose of pain relief in the critical care unit of the hospital. She removed the hydromorphone from the vials and syringes, replaced the hydromorphone with saline solution, and returned the adulterated containers knowing they could be administered to patients at the hospital. In total, Cheatham stole 116 vials and syringes of hydromorphone, which she then used on herself.
“Patients in a hospital should be able to rely on receiving their needed medications,” said U.S. Attorney Ison. “We will not hesitate to prosecute health care workers who steal drugs and put patients at serious risk of harm.”
The investigation was conducted by the Food and Drug Administration, Office of Criminal Investigations.
The case was prosecuted by Assistant United States Attorney Regina R. McCullough.
Plaquemine Woman Sentenced to 44 Months for Pandemic Benefits Fraud SchemeRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Brian A. Jackson sentenced Lestreonia Renee Rodrigue, age 28, of Plaquemine, Louisiana, to 44 months in federal prison following her conviction for mail fraud. The Court further sentenced Rodrigue to serve three years of supervised release following her term of imprisonment and ordered her to pay $663,259 in restitution.
Between July 2020 and September 2021, Rodrigue submitted fraudulent claims for unemployment insurance benefits in California in her name and in the names of other individuals. Rodrigue also submitted fraudulent claims for Paycheck Protection Program (“PPP”) benefits in the names of fictitious businesses and based on fictitious business profits and losses.
Through her unemployment insurance scheme, Rodrigue falsely claimed that she and others were working in California prior to the coronavirus pandemic and that they lost their employment due to the pandemic. Rodrigue obtained names, birth dates, and Social Security numbers of others and submitted fraudulent claims for unemployment insurance benefits in their names, with and without their knowledge. Rodrigue captured people’s identifying information through social media. Upon submitting the claims and receiving the funds, she either gave a portion of the funds to others or kept all the funds for herself. Through her scheme, Rodrigue fraudulently obtained hundreds of thousands of dollars in unemployment insurance debit cards in the mail.
Rodrigue also devised a scheme to defraud lenders and the United States, through the Small Business Administration, by filing false and fraudulent applications for PPP funds. In furtherance of the scheme, Rodrigue submitted, or had others submit, forged bank statements, false tax documents, and made misrepresentations in her PPP applications.
Rodrigue also falsely reported bank cards stolen or lost so that she would receive new cards with additional pandemic benefit funds. Throughout the course of the fraudulent schemes, Rodrigue caused over $500,000 in unemployment insurance debit cards to be mailed to her addresses, to which she and others were not entitled. Additionally, Rodrigue caused $20,833 to be deposited into her bank account to which she was not entitled.
This matter was investigated by the Federal Bureau of Investigation and the U.S. Department of Labor-OIG and was prosecuted by Assistant United States Attorney Edward H. Warner.
Pittsburgh Man Sentenced to 130 Months for Committing Heroin and Fentanyl Trafficking and Firearm CrimesRead the Press Release
PITTSBURGH, PA – Michael Ginyard was sentenced to 130 months in prison for committing heroin and fentanyl trafficking and firearm crimes, Acting United States Attorney Troy Rivetti announced today.
Ginyard, age 36 of Pittsburgh, Pennsylvania, was sentenced by United States District Judge Joy Flowers Conti. Judge Conti ordered Ginyard to serve six years of supervised release following his prison sentence.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Pittsburgh Police Department, the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Penn Hills Police Department conducted the investigation in this case. This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Pharmacy Owners Charged with $26 Million Health Care Fraud SchemeRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Taesung “Terry” Kim and Dacheng “Bruce” Lu with perpetrating a health care fraud scheme to submit false and fraudulent claims to Medicare and Medicaid for medically unnecessary prescriptions and over-the-counter products that were not actually dispensed, to pay illegal kickbacks and bribes, and to launder the proceeds of their scheme. The defendants were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Cheryl L. Pollak.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Naomi Gruchacz, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced the arrests and charges.
As set forth in court filings, the defendants owned and operated four pharmacies: 888 Pharmacy Inc. and Huikang Pharmacy Inc., located in Brooklyn, and Elmcare Pharmacy Inc. and NY Elm Pharmacy Inc., located in Queens. Between January 2015 and December 2022, Kim and Lu allegedly conspired with others to submit false and fraudulent claims to Medicare and Medicaid for the dispensing of pharmaceutical and over-the-counter products that were medically unnecessary, procured by the payment of kickbacks and bribes, or not provided. Further, Kim and Lu allegedly conspired with others who paid illegal kickbacks and bribes, in the form of cash and supermarket gift certificates, to Medicare beneficiaries and Medicaid recipients who filled their prescriptions at their pharmacies. Kim and Lu also conspired with others to pay and paid illegal kickbacks and bribes, in the form of rent and office staff, to the doctors who prescribed the medically unnecessary medications filled at their pharmacies.
Kim and Lu allegedly laundered the proceeds of their fraud through shell entities to generate cash that they could disperse as profits to themselves and the pharmacies’ other owners, and to pay pharmacy customers as kickbacks. As part of the scheme, Kim and Lu’s pharmacies submitted approximately $26 million in fraudulent claims to Medicare and Medicaid.
The charges in the indictment are allegations, and the defendants are presumed to be innocent unless and until proven guilty. The defendants each face a maximum penalty of 10 years in prison for conspiracy to commit health care fraud, 20 years in prison for conspiracy to commit money laundering, and five years in prison for conspiracy to pay illegal health care kickbacks and bribes.
Trial Attorney Patrick J. Campbell and Acting Assistant Chief Miriam Glaser Dauermann of the Criminal Division’s Fraud Section are prosecuting the case.
The Defendants:
TAESUNG KIM (also known as “Terry”)
Age: 58
Great Neck, New YorkDACHENG LU (also known as “Bruce”)
Age: 44
Flushing, New YorkE.D.N.Y. Docket Number: 23-CR-191 (ARR)
Owner of Tukwila, Washington Thai restaurant sentenced to 18 months in prison for tax fraud totaling nearly $1 millionRead the Press Release
Seattle – The owner of ‘Simply Thai’ restaurant in Tukwila, Washington, was sentenced today in U.S. District Court in Seattle to 18 months in prison for willful failure to pay over taxes, announced U.S. Attorney Nick Brown. Keovilayvanh Rinthalukay, 62, pleaded guilty in February 2023, admitting that between 2015 and 2019 he withheld Medicare, Social Security, and federal income taxes from his employees’ paychecks, but instead of paying the taxes to the government, he pocketed the money for his own benefit. At the sentencing hearing, U.S. District Judge James L. Robart said the amount withheld “is not a small number – it’s a lot of money. And the defendant didn’t find it necessary to pay his taxes for a number of years – it shows no respect for the law.”
“The failure to turn over payroll taxes is simply theft from employees who trust their employer to make those payments for their future well-being,” said U.S. Attorney Nick Brown. “In this case, Mr. Rinthalukay has committed to aggressively pay back more than $926,000 in tax debt. The prison sentence brings home the need to do right by workers and their future Social Security, Medicare, and federal unemployment benefits.”
According to records filed in the case, between 2015 and 2019, the Tukwila restaurant employed dozens of people. Over that same period the restaurant failed to pay over the taxes withheld from paychecks, as well as the employer’s share of the payroll and federal unemployment taxes. In all, Rinthalukay failed to pay at least $926,092. Instead, he used the money for his personal expenses including buying property, paying private school tuition for his children, and buying a motorcycle. Judge Robart noted at today’s hearing that Rinthalukay currently owns two homes in Western Washington that together are valued at well over $2 million.
As relevant conduct, the government noted that Rinthalukay has not paid his personal federal income taxes since 1998. The IRS is still reviewing that matter.
Prosecutors described Rinthalukay’s history of misconduct in their sentencing memo. “Rinthalukay has a long history of disregard for his tax obligations, both personally and as a business owner. The criminal conduct here is not some momentary aberration but rather part of a decades-long pattern. And his conduct harmed not only the United States Treasury, but also the employees at his restaurant. Employees risk losing credit with the Social Security system when their payroll taxes are not turned over to the IRS,” Assistant U.S. Attorney Philip Kopczynski wrote in the sentencing memo.
“Restaurant employees deal with a lot: long hours, irate customers, and exhausting work. One thing they shouldn’t have to worry about – their employer stealing from them,” said Acting Special Agent in Charge Adam Jobes, IRS Criminal Investigation (IRS:CI), Seattle Field Office. “Mr. Rinthalukay has owned and operated a restaurant for a long time and knows how important it is for his staff to provide good customer service. Today’s sentence is a strong reminder that business owners must play by their own rules and provide good service to their employees. Remitting tax withholdings and not stealing from their workers is a solid start.”
As of today, Rinthalukay has paid $550,000 of the taxes owed. The judgment imposed by Judge Robart will require prompt repayment of the remainder, including having Rinthalukay liquidate assets if needed.
The case was investigated by the Internal Revenue Service Criminal Investigation.
The case was prosecuted by Assistant United States Attorney Philip Kopczynski.
Ohio Man Admits Role in $24 Million Health Care Fraud and Kickback SchemeRead the Press Release
NEWARK, N.J. – An Ohio man and owner of several marketing companies today admitted his role in conspiracies to commit health care fraud and to pay and receive illegal kickbacks, Attorney for the United States Vikas Khanna announced.
Mark Belter, 49, of North Ridgeville, Ohio, pleaded guilty via videoconference before U.S. District Judge Esther Salas to an information charging him with conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
From June 2017 through September 2020, Belter participated in a scheme with pharmacies, telemedicine companies, and doctors to submit false claims to health care benefit programs, including Medicare and TRICARE, based on a circular scheme of kickbacks and bribes. Belter controlled several marketing companies through which he and his conspirators identified Medicare and TRICARE beneficiaries to target for expensive drugs. The marketing companies called beneficiaries to pressure them to agree to try expensive medications, regardless of medical necessity. Belter and others would deliberately conceal the name of the prescribing doctor – whom the beneficiary had never met before – to increase the likelihood that the beneficiary would agree to accept the medications. Portions of the telephone calls were recorded.
Belter and his companies then paid kickbacks to telemedicine companies, which in turn paid kickbacks to doctors, to obtain prescriptions for the medications. Belter transmitted to the telemedicine companies the beneficiaries’ medical information, the telephone call recording, and pre-marked prescription pads for particular drugs that would yield exorbitant reimbursements. Belter, the marketing companies, and the pharmacies with which they had relationships chose particular drugs for the prescriptions largely based on reimbursement amount and not medical need. The doctors paid by the telemedicine companies signed the prescriptions regardless of medical necessity, often without ever speaking to the patient.
Belter and his conspirators then directed the prescriptions to pharmacies with which Belter had additional kickback arrangements. The pharmacies submitted claims for reimbursement to health care benefit programs including Medicare and TRICARE, and thereafter sent a portion of the proceeds to Belter and his companies as payment for the prescriptions generated through the conspiracy. In total, Belter and his conspirators caused the submission of false and fraudulent claims to health care benefit programs totaling in excess of $24 million of prescription drugs. Belter and his companies received kickbacks and bribes totaling more than $6 million in exchange for prescription referrals to a pharmacy located in New Jersey.
The conspiracy charges are each punishable by a maximum of five years in prison, along with fines, restitution, and penalties as to both counts. Both charges are punishable by a fine of $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for Sept. 27, 2023.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Katherine M. Romano of the Health Care Fraud Unit and Barbara Ward, Senior Trial Counsel of the Asset Recovery and Money Laundering Unit, in Newark.
belter.information.pdfOcean County Man Admits Money LaunderingRead the Press Release
NEWARK, N.J. – An Ocean County, New Jersey, man today admitted that he illegally laundered the proceeds of a wire fraud scheme, U.S. Attorney Philip R. Sellinger announced.
Eli Schamovic, 41, of Lakewood, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with money laundering.
According to documents filed in the case and statements made in court:
Schamovic made or caused others to make numerous fraudulent financial transactions through at least two entities that Schamovic formed and established as merchants that used multiple credit card processing companies. These transactions resulted in more than $1 million in losses to a multinational financial services corporation that specialized in payment cards. Schamovic laundered portions of the proceeds of this scheme, including through an approximately $500,000 wire transfer from a bank account under his control.
The charge of money laundering is punishable by a maximum potential penalty of 10 years in prison and a fine $250,000, or twice the gross profits or gross loss suffered by the victims, whichever is greatest. Sentencing is scheduled for Sept. 8, 2023.
U.S. Attorney Sellinger credited postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
schamovic.information.pdfNew Jersey Accountant Pleads Guilty to Tax Fraud SchemeRead the Press Release
A New Jersey certified public accountant (“CPA”) pleaded guilty today to conspiring to defraud the United States by promoting fraudulent tax shelters to high-income clients.
According to court documents and statements made in court, James H. Benkoil of Avon-by-the-Sea, New Jersey, promoted fraudulent syndicated conservation easements in which several investors form a partnership or company to purchase or invest in land, then donate the property for a charitable deduction. The scheme facilitated false claims of inflated charitable contribution tax deductions in connection with the “donation” of the conservation easement over land, allowing Benkoil’s high-income clients to buy deductions to illegally shelter their income from taxation.
Between 2009 and 2020, while working as a CPA, Benkoil and others, promoted such fraudulent syndicated conservation easement tax shelters by obtaining falsely inflated land appraisals to achieve the desired amount of tax deductions. As a part of his guilty plea, Benkoil admitted his conduct resulted in a tax loss to the IRS of nearly $2.5 million and has agreed to pay full restitution.
Benkoil faces a maximum penalty of five years in prison, as well as a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Christopher Magnani and Richard Rolwing of the Justice Department’s Tax Division are prosecuting the case.
Monroe Man Sentenced for $1.1 Million COVID-19 Fraud SchemeRead the Press Release
MONROE, La. - Michael Ansezell Tolliver, 57, of Monroe, Louisiana, has been sentenced by United States District Judge Terry A. Doughty for money laundering in connection with a fraudulent scheme to obtain more than $1.1 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) Program loans. Tolliver was sentenced to 120 months in prison, followed by 3 years of supervised release. In addition, Tolliver was ordered to pay $1,114,724 in restitution.
“The significant sentence handed down today demonstrates that those who steal from COVID-19 relief programs for personal gain will be prosecuted to the fullest extent of the law,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “We remain committed to rooting out bad actors who took advantage of federal programs meant to help those small businesses truly in need.”
“This defendant stole over $1 million through fraudulent means and used those funds to support his own personal lifestyle, taking from those whose legitimate businesses were suffering from losses due to the COVID-19 pandemic,” said U.S. Attorney Brandon B. Brown. “Federal programs such as these are set up to help those in need, not to benefit those who do not. It is a priority for our office to prosecute those who obtain these benefits illegally. We look forward to continued collaboration with the DOJ’s fraud section in aggressively investigating similar crimes related to the COVID-19 pandemic.”
In December 2022, Tolliver pled guilty to one count of money laundering. According to court documents, Tolliver submitted nine fraudulent PPP and EIDL Program loan applications on behalf of several purported companies that Tolliver owned, including Tolliver Oil & Gas Corporation of Louisiana, Inc. and Tolliver Petroleum Corporation of Louisiana. Tolliver falsified information in the loan applications and supporting documents, including falsely claiming that some of his businesses had over 100 employees. He also submitted falsified federal tax returns.
“Mr. Tolliver chose greed over compassion by fraudulently obtaining funds from the PPP and EIDL programs established to assist employers severely impacted by the pandemic,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Tolliver’s sentence today should stand as a warning to those who fraudulently received or may have attempted to fraudulently receive funds intended to help businesses during the COVID epidemic.”
“This result reveals the excellence achieved through the combined efforts of the Small Business Administration (SBA) and the U.S. Attorney’s Office to uncover and forcefully respond to PPP and EIDL fraud,” said Special Counsel Peggy Delinois Hamilton of the SBA. “SBA is strongly committed to identifying and aggressively pursuing instances of fraud perpetrated by those who took advantage of small business emergency relief programs. We applaud the work that our law enforcement partners have done to ensure fraudsters are held accountable.”
In total, Tolliver sought more than $7.6 million in PPP and EIDL Program loans and obtained more than $1.1 million. Tolliver then laundered and misused the loan proceeds, including by transferring the funds to personal bank accounts and purchasing luxury goods. Authorities seized approximately $128,500 from bank accounts, as well as a 2020 Cadillac CT5 sedan, a 2021 GMC Sierra 1500 truck, two Tissot watches, two Tag Heuer watches, and three Honda all-terrain vehicles.
The case was investigated by the IRS-CI and SBA and prosecuted by Assistant Chief Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Seth D. Reeg of the U.S. Attorney’s Office for the Western District of Louisiana.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. Since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Massachusetts Man Charged with Possession and Intent to Distribute over Two Pounds of Fentanyl in New HampshireRead the Press Release
CONCORD – A Massachusetts man has been charged in connection with his possession and intent to distribute over two pounds of suspected fentanyl in New Hampshire, U.S. Attorney Jane E. Young announces.
Eddy Antonio Perdomo, 29, appeared before Magistrate Judge Daniel J. Lynch for an initial appearance in federal court on May 1, 2023. Perdomo’s detention hearing is scheduled for May 3, 2023.
According to the charging documents, Perdomo arranged to sell a kilogram of fentanyl to a confidential source in Ashland, New Hampshire on April 29, 2023. The car traveling from Massachusetts, in which Perdomo was a passenger, was stopped in a parking lot in Ashland. Investigators found suspected fentanyl on the floor of the passenger seat, between Perdomo’s feet.
The charge of possession with the intent to distribute fentanyl provides for a sentence of up to 20 years in prison, at least three years of supervised release, and a maximum fine of $1,000,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The U.S. Drug Enforcement Administration led the investigation. Assistant U.S. Attorney Heather A. Cherniske is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Maryland Resident Charged with Preparing and Submitting Numerous Fraudulent Applications for Federal Cares Act Financial AssistanceRead the Press Release
NEW ORLEANS – SIEDAH ELEY, age 30, a former resident of Columbia, Maryland, was charged on May 1, 2023 in a one-count bill of information with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 371 and 1343, for her role in preparing and filing false applications for loans related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), announced U.S. Attorney Duane A. Evans.
According to the bill of information, ELEY recruited friends and family members, primarily via word of mouth and text message, to participate in a scheme to fraudulently obtain money from Paycheck Protection Program (PPP) loans with her assistance. She then electronically created and submitted loan applications, falsely stating that the applicant had a sole proprietorship in the beauty industry that generated substantial income. ELEY charged some applicants up to approximately $5,000.00 once the PPP loan was funded.
ELEY faces a maximum term of imprisonment of five (5) years in prison, up to three years of supervised release, up to a $250,000 fine, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt
For more information on the Department of Justice’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Evans praised the work of the United States Secret Service in investigating this matter. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Integrity Unit, is in charge of the prosecution.
Marijuana Vending Machine Owner Pleads Guilty to Unlawfully Possessing FirearmRead the Press Release
DETROIT – A man who owned and operated a marijuana vending machine in Detroit has pleaded guilty to being a felon in possession of a firearm, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by James M. Deir, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Detroit Division.
Marcellus Cornwell, 44, of Detroit, entered his guilty plea in front of United States District Judge Stephen J. Murphy, III.
An anonymous tip alerted ATF agents to Cornwell’s marijuana vending machine last spring. Cornwell had been operating the marijuana vending machine for about four years. After an investigation, ATF agents executed a search warrant at Cornwell’s then-residence and discovered ammunition, marijuana, and 18 firearms in a basement gun safe. Cornwell had been previously convicted of identity theft, felony firearm, being a felon in possession of a firearm, and armed robbery, which are all felonies. Three of the guns that Cornwell possessed had had been reported as stolen.
Cornwell faces a maximum sentence of 10 years in prison and/or a fine of $250,000.
“Firearms pose a danger to our community. These weapons should not be in the hands of convicted felons. The number of weapons this defendant possessed despite being a prohibited person combined with his drug dealing makes his conduct even more egregious,” U.S. Attorney Ison said.
“Today’s guilty plea demonstrates ATF’s steadfast commitment to ensuring public safety in Michigan by identifying and holding anyone accountable who illegally acquires and/or possesses a firearm.” ATF Detroit Special Agent in Charge James Deir “Our highly experienced Special Agents, utilized unique information and intelligence programs working side by side our local law enforcement, and U.S. Attorney partners which was critical to the success of today’s case.”
Sentencing is scheduled for September 14, 2023.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Tara Hindelang and Catherine Morris.
Man Sentenced in Methamphetamine ConspiracyRead the Press Release
United States Attorney Steven Russell announced that Taylor Brown, 34, formerly of McCook, Nebraska, and Omaha, Nebraska, was sentenced today in federal court in Lincoln, Nebraska, for conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine. Senior United States District Judge John M. Gerrard sentenced Brown to 63 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a five-year term of supervised release.
From February 2019, through May 2019, law enforcement utilized a confidential informant to purchase methamphetamine from Tina Smith and Taylor Brown for a total of 28 grams. In addition, cooperating witnesses indicated that they purchased four to five ounces from Brown.
Smith was sentenced to 57 months’ imprisonment followed by a three-year term of supervised release.
This case was investigated by the Federal Bureau of Investigation and the McCook Police Department.
Man Sentenced for $1.1M COVID-19 Fraud SchemeRead the Press Release
A Louisiana man was sentenced today to 10 years in prison for money laundering in connection with a fraudulent scheme to obtain more than $1.1 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) Program loans.
“The significant sentence handed down today demonstrates that those who steal from COVID-19 relief programs for personal gain will be prosecuted to the fullest extent of the law,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “We remain committed to rooting out bad actors who took advantage of federal programs meant to help those small businesses truly in need.”
“This defendant stole over $1 million through fraudulent means and used those funds to support his own personal lifestyle, taking from those whose legitimate businesses were suffering from losses due to the COVID-19 pandemic,” said U.S. Attorney Brandon B. Brown for the Western District of Louisiana. “Federal programs such as these are set up to help those in need, not to benefit fraudsters. It is a priority for our office to prosecute those who obtain these benefits illegally. We look forward to continued collaboration with the Criminal Division’s Fraud Section in aggressively investigating similar crimes related to the COVID-19 pandemic.”
According to court documents, Michael Ansezell Tolliver, 57, of Monroe, submitted nine fraudulent PPP and EIDL Program loan applications on behalf of several purported companies that Tolliver owned, including Tolliver Oil & Gas Corporation of Louisiana Inc. and Tolliver Petroleum Corporation of Louisiana. Tolliver falsified information in the loan applications and supporting documents, including falsely claiming that some of his businesses had over 100 employees. He also submitted falsified federal tax returns.
“Mr. Tolliver chose greed over compassion by fraudulently obtaining funds from the PPP and EIDL programs established to assist employers severely impacted by the pandemic,” said Special Agent in Charge James E. Dorsey of the IRS Criminal Investigation (IRS-CI) Atlanta Field Office. “Tolliver’s sentence today should stand as a warning to those who fraudulently received or may have attempted to fraudulently receive funds intended to help businesses during the COVID epidemic.”
“This result reveals the excellence achieved through the combined efforts of the Small Business Administration (SBA) and the U.S. Attorney’s Office to uncover and forcefully respond to PPP and EIDL fraud,” said Special Counsel Peggy Delinois Hamilton of the SBA. “SBA is strongly committed to identifying and aggressively pursuing instances of fraud perpetrated by those who took advantage of small business emergency relief programs. We applaud the work that our law enforcement partners have done to ensure fraudsters are held accountable.”
In total, Tolliver sought more than $7.6 million in PPP and EIDL Program loans and obtained more than $1.1 million. Tolliver then laundered and misused the loan proceeds, including by transferring the funds to personal bank accounts and purchasing luxury goods. Authorities seized approximately $128,500 from bank accounts, as well as a 2020 Cadillac CT5 sedan, a 2021 GMC Sierra 1500 truck, two Tissot watches, two Tag Heuer watches, and three Honda all-terrain vehicles.
The IRS-CI and SBA investigated the case.
Assistant Chief Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Seth D. Reeg for the Western District of Louisiana prosecuted the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at www.justice.gov/criminal-fraud/ppp-fraud.
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 www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.