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28 April 2023
Brooklyn Man Sentenced to 21 Years for Sex TraffickingRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Joseph Harris, also known as “Luis Santana,” and “Joey Moscato,” was sentenced by United States District Judge LaShann DeArcy Hall to 21 years in prison for sex trafficking multiple victims by force, fraud, and coercion.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
Mr. Peace expressed his appreciation to the Kings County District Attorney’s Office for their assistance in the investigation.
From July 2017 until his arrest in May 2018, Harris used violence and threats of violence, along with abusive and coercive tactics, to compel multiple victims to engage in commercial sex acts for his financial benefit. The defendant’s crimes were uncovered when NYPD officers responded to several 911 calls about girls being held at his apartment in Brooklyn. Inside the apartment, the officers found two of the defendant’s adult victims along with a 16-year-old minor female, and recovered a loaded semi-automatic handgun, a birth certificate for a 17-year-old female, hotel receipts, hand-written instructions written by Harris for posting advertisements for commercial sex, and other items.
The investigation revealed that Harris used force and threats to compel his victims to work in prostitution and give him the money that they were paid. He also punished women who withheld money from him and, in at least on one dispute over money, dragged a victim through a pool of bleach he had poured on the floor. On another occasion, he menaced a victim at gunpoint and posted a photograph of it on his Instagram account. Harris had sexual intercourse with his victims, including underage girls as young as 14, and provided them with drugs including ecstasy, cocaine, marijuana, and pills. The defendant used Backpage.com and social media websites to facilitate his business.
The federal prosecution of the defendant was led by the U.S. Attorney’s Office for the Eastern District of New York and the FBI and NYPD’s Child Exploitation and Human Trafficking Task Force, with substantial assistance from the Kings County District Attorney’s Office.
The government’s case is being handled by the Office’s Civil Rights Unit. Assistant United States Attorneys Lauren Elbert and Erin Reid are in charge of the prosecution.
The Defendant:
JOSEPH HARRIS
Age: 41
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-616 (LDH)
Bristol Man Involved in Gun Trafficking Scheme Sentenced to PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JOSHUA BENTZ, 39, of Bristol, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 24 months of imprisonment, followed by two years of supervised release, for illegally trafficking firearms from South Carolina to Connecticut.
According to court documents and statements made in court, in 2020, ATF and Hartford Police recovered multiple firearms that had been purchased in South Carolina. In July 2020, one of the firearms was found in the possession of a convicted felon. In September and October 2020, additional firearms were recovered at the scenes of two separate homicides in Hartford. The investigation revealed that Alberto Vazquez, of Hartford, conspired with Bentz and others to purchase firearms from a licensed gun dealer in Columbia, South Carolina, transport them to Connecticut, and sell them to felons and other customers in the Hartford area.
Vazquez, Bentz, and their coconspirators purchased approximately 37 firearms through this scheme. Twenty-eight of these firearms were purchased by Bentz’s wife, Tywonda Bentz, in South Carolina between May and July 2020.
Bentz was arrested on April 21, 2021. On November 23, 2021, he pleaded guilty to conspiracy to deal in firearms without a license, to unlawfully transport firearms, and to make false statements to law enforcement.
Bentz, who is released on a $100,000 bond, is required to report to prison on August 24.
Vazquez, whose criminal history includes convictions for felony weapon possession, robbery, and larceny offenses, pleaded guilty to conspiracy to deal in firearms without a license and to unlawfully transport firearms, unlawful transportation of firearms, and unlawful possession of firearms by a felon. On October 11, 2022, he was sentenced to 120 months of imprisonment.
Tywonda Bentz pleaded guilty and await sentencing.
This investigation has been conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Hartford Police Department; the Columbia (S.C.) Police Department; and the Richland County (S.C.) Sheriff’s Department.
This case is being prosecuted by Assistant U.S. Attorney Tara E. Levens through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: Fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Brazilian National Pleads Guilty to Attempted Sex Trafficking of A ChildRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Mateus Fernandes Evangelista Da Silva (23, Brazil) has pleaded guilty to attempted sex trafficking of a child. Evangelista Da Silva faces a minimum mandatory term of 15 years, up to life, in federal prison. A sentencing date has not yet been set. As part of the plea agreement, Evangelista Da Silva will forfeit the electronic devices he used in committing the offense and make restitution to victims associated with this case who have been identified by the National Center for Missing and Exploited Children.
According to the plea agreement, on October 6, 2021, Evangelista Da Silva used his cellphone to communicate with an undercover agent who purported to have access to two minor children, ages 13 and 14. Evangelista Da Silva coordinated a meeting and travelled to a designated location in St. Petersburg, Florida to meet the fictitious children for the purposes of engaging in sex. Once Evangelista Da Silva arrived, he stated he wanted to engage in oral sex and vaginal intercourse with the 13-year-old and paid the undercover agent $200.
This case was investigated by Homeland Security Investigations (HSI) and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorney Lisa M. Thelwell.
This case was brought as part of the Tampa Bay Human Trafficking Task Force of the Middle District of Florida, which is one of 13 task forces in the country to receive grant funding from the Department of Justice’s Bureau of Justice Assistance. The Task Force is a collaboration of local, state, and federal law enforcement agents working together with organizations to detect, investigate, and prosecute human trafficking in the Tampa Bay area. This includes trafficking of minors, forced labor, transnational sex trafficking, and sex trafficking of adults by force, fraud, or coercion. More information about the Tampa Bay Human Trafficking Task Force can be found at www.justice.gov/usao-mdfl/humantrafficking. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Brainerd Felon Sentenced to 12.5 Years in Prison for Distribution of Controlled SubstancesRead the Press Release
ST. PAUL, Minn. – A Brainerd man has been sentenced to 150 months in prison, followed by five years of supervised release, for possession with intent to distribute controlled substances, announced U.S. Attorney Andrew M. Luger.
According to court documents, on April 26, 2022, a Minnesota State Patrol Trooper traffic stopped Kyle Vernon Elwell, 29, at a gas station in Motley, Minnesota. Elwell was arrested on an active warrant. Before his arrest, Elwell threw a pouch with approximately $7,995 onto the ground. The State Trooper also found a bag with 51 M-30 fentanyl pills on the ground. During a subsequent search of Elwell’s vehicle, law enforcement found approximately 834 grams of methamphetamine, a digital scale, and an unserialized “ghost” handgun.
Elwell pleaded guilty on September 2, 2022, to one count of possession with intent to distribute a controlled substance. He was sentenced yesterday before Senior U.S. District Judge Donovan W. Frank.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Minnesota State Patrol.
Assistant U.S. Attorney Bradley M. Endicott prosecuted the case.
Beverly Hills Plastic Surgeon Agrees to Pay Nearly $24 Million to Settle False Claims Act AllegationsRead the Press Release
A plastic surgeon in Beverly Hills, California, along with his son, medical practices, and billing company, have agreed to pay $23.9 million to resolve allegations that they violated the False Claims Act by submitting or causing the submission of false claims to both Medicare and Medicaid.
The settlement announced today resolves allegations that Dr. Joel Aronowitz; Daniel Aronowitz; Joel A. Aronowitz, M.D., a medical corporation; Tower Multi-Specialty Medical Group; Tower Wound Care Center of Santa Monica, Inc.; Tower Outpatient Surgery Center, Inc.; and Tower Medical Billing Solutions (the settling parties) falsified the place of service for skin grafts and billed multiple times for single-use skin substitute products. The United States contends that the Settling Parties manipulated the place of service code on claims for skin grafts to fraudulently maximize reimbursement from Medicare and Medicaid. The United States further contends that Dr. Aronowitz failed to properly dispose of unused portions of single-use skin graft materials and, instead, used them in later procedures involving other Medicare and Medicaid beneficiaries, resulting in thousands of instances of double billing.
“When health care providers violate federal health care program requirements, they undermine the integrity of these programs and waste taxpayer dollars,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement demonstrates the department’s commitment to preventing providers from misappropriating public funds for their own private gain.”
“Our investigation revealed a long-running practice to illegally maximize profits, ultimately costing public health programs millions of dollars,” said U.S. Attorney Martin Estrada for the Central District of California. “The Medicare and Medicaid programs are taxpayer-funded programs, and we are committed to wiping out abuses that line the pockets of unscrupulous providers.”
In connection with the settlement, the Department of Health and Human Services Office of Inspector General (HHS-OIG), negotiated the voluntary exclusion of Dr. Aronowitz and Tower Multi-Specialty Medical Group from Medicare, Medicaid, and all other federal health care programs, as defined in 42 U.S.C. § 1320a-7b(f), for a period of 15 years. Daniel Aronowitz will be excluded for three years.
“HHS-OIG, along with our law enforcement partners, is committed to holding providers accountable for defrauding federal health care programs,” said Special Agent in Charge Timothy B. DeFrancesca of HHS-OIG. “Those who egregiously exploit Medicare and Medicaid put their personal financial gain before patients’ needs and safety.”
Medicaid is funded jointly by the states and the federal government. The state of California paid for a portion of the Medicaid claims at issue and will receive a total of approximately $497,619 from the settlement.
The civil settlement includes the resolution of claims brought under the qui tam, or whistleblower, provisions of the False Claims Act by parties that worked for Dr. Aronowitz and his associated medical practices and businesses: TDP, a billing company, Dr. Jason Morris, a podiatrist, and Harold Bautista, a billing department employee. Under the qui tam provisions, a private party can file an action on behalf of the government and receive a portion of any recovery. The civil lawsuits are captioned as follows: United States ex rel. TDP RCM Servs., LLC v. Aronowitz, et al. (C.D. Cal.), United States ex rel. Morris, et al. v. Tower Wound Care Ctr. of Santa Monica, Inc., et al. (C.D. Cal.), and United States ex rel. Bautista et al. v. Tower Outpatient Surgery Center, Inc., et al. (C.D. Cal.). The amount to be recovered by the private parties has not been determined.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Central District of California and the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section. HHS-OIG assisted in the investigation.
The matter was handled by Assistant U.S. Attorney Aaron Ezroj for the Central District of California and Trial Attorney Lyle Gruby of the Civil Division. The exclusions of the individual and entity were negotiated by Senior Counsel Patrice Drew of the HHS-OIG.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Beverly Hills Plastic Surgeon Agrees to Pay Nearly $24 Million to Settle False Claims Act AllegationsRead the Press Release
LOS ANGELES – A plastic surgeon in Beverly Hills, along with his son, medical practices and billing company, have agreed to pay $23.9 million to resolve allegations that they violated the False Claims Act by submitting or causing the submission of false claims to both Medicare and Medicaid.
The settlement announced today resolves allegations that Dr. Joel Aronowitz; Daniel Aronowitz; Joel A. Aronowitz, M.D., a medical corporation; Tower Multi-Specialty Medical Group; Tower Wound Care Center of Santa Monica, Inc.; Tower Outpatient Surgery Center, Inc.; and Tower Medical Billing Solutions (the Settling Parties) falsified the place of service for skin grafts and billed multiple times for single-use skin substitute products.
The United States contends that the settling parties manipulated the place of service code on claims for skin grafts to fraudulently maximize reimbursement from Medicare and Medicaid. The United States further contends that Dr. Aronowitz failed to properly dispose of unused portions of single-use skin graft materials and, instead, used them in later procedures involving other Medicare and Medicaid beneficiaries, resulting in thousands of instances of double billing.
“Our investigation revealed a long-running practice to illegally maximize profits, ultimately costing public health programs millions of dollars,” said United States Attorney Martin Estrada. “The Medicare and Medicaid programs are taxpayer-funded programs, and we are committed to wiping out abuses that line the pockets of unscrupulous providers.”
“When health care providers violate federal health care program requirements, they undermine the integrity of these programs and waste taxpayer dollars,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement demonstrates the Department’s commitment to preventing providers from misappropriating public funds for their own private gain.”
In connection with the settlement, the United States Department of Health and Human Services, Office of Inspector General (HHS OIG), negotiated the voluntary exclusion of Dr. Aronowitz and Tower Multi-Specialty Medical Group from Medicare, Medicaid, and all other federal health care programs for a period of 15 years. Daniel Aronowitz will be excluded for three years.
“HHS-OIG, along with our law enforcement partners, is committed to holding providers accountable for defrauding federal health care programs,” said Special Agent in Charge Timothy B. DeFrancesca of HHS-OIG. “Those who egregiously exploit Medicare and Medicaid put their personal financial gain before patients’ needs and safety.”
Medicaid is funded jointly by the states and the federal government. The state of California paid for a portion of the Medicaid claims at issue and will receive a total of approximately $497,619 from the settlement.
The civil settlement includes the resolution of claims brought under the qui tam, or whistleblower, provisions of the False Claims Act by parties that worked for Dr. Aronowitz and his associated medical practices and businesses: TDP, a billing company; Dr. Jason Morris, a podiatrist; and Harold Bautista, a billing department employee. Under the qui tam provisions, a private party can file an action on behalf of the government and receive a portion of any recovery. The civil lawsuits, all of which were filed in federal court in Los Angeles, are captioned: United States ex rel. TDP RCM Servs., LLC v. Aronowitz, et al., United States ex rel. Morris, et al. v. Tower Wound Care Ctr. of Santa Monica, Inc., et al., and United States ex rel. Bautista et al. v. Tower Outpatient Surgery Center, Inc., et al.. The amount to be recovered by the private parties has not been determined.
The resolution obtained in this matter was the result of a coordinated effort between the United States Attorney’s Office in Los Angeles and the United States Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section. HHS OIG assisted in the investigation.
The matter was handled by Assistant United States Attorney Aaron Ezroj of the Civil Fraud Section and Trial Attorney Lyle Gruby of the Justice Department’s Civil Division. The exclusions of the individuals and entity were negotiated by Senior Counsel Patrice Drew for HHS OIG.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Bensalem Man Sentenced to 20 Years’ Imprisonment for Fentanyl TraffickingRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tarik Wilson, age 24, of Bensalem, Pennsylvania, was sentenced yesterday by U.S. District Court Judge Christopher C. Conner to 20 years’ imprisonment for conspiring to distribute fentanyl. The Court also ordered a five-year term of supervised release to follow the term of imprisonment.
According to United States Attorney Gerard M. Karam, Wilson previously pleaded guilty to conspiring to distribute fentanyl and a fentanyl analogue between March and May 2022 in Lebanon and Bucks Counties. As part of his plea, Wilson also admitted to distributing fentanyl in Lebanon County in April 2020, resulting in the deaths of two individuals.
The case was investigated by the U.S. Drug Enforcement Administration (DEA), the Lebanon County Drug Task Force, the Bucks County Drug Task Force, and the Pennsylvania State Police. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Arlington Doctor Charged with Illegally Distributing OxycodoneRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment this week charging an Arlington doctor with distributing tens of thousands of oxycodone pills for almost a decade for no legitimate medical reason.
According to allegations in the indictment, Kirsten Van Steenberg Ball, 68, was a primary care physician who operated a medical practice out of her home in Arlington. Ball allegedly conspired with her office manager to shield the fact that she was dispensing vast quantities of oxycodone to her patients—contrary to ordinary standards of medical care—from law enforcement and regulatory authorities.
The indictment alleges that Ball’s office manager, Candie Marie Calix, 40, of Front Royal, used an alias to disguise the fact that Calix was, herself, a patient of Ball. According to the indictment, Ball allegedly prescribed her office manager approximately 50,000 oxycodone pills over a period of approximately 10 years.
The indictment further alleges that the Virginia Department of Health Professions (DHP) investigated Ball twice: once in 2015 and once in 2021. Despite the two investigations, Ball did not change her prescribing practices. According to the indictment, examples of Ball’s prescriptions include the following:
- Prescribing a patient as many as 360 oxycodone 30-mg tablets per month;
- Prescribing similarly high quantities of oxycodone to close family members;
- Paying a patient to perform manual labor on Ball’s home while concurrently prescribing the patient oxycodone, ostensibly for long-term pain;
- Loaning a patient $40,000 while concurrently prescribing the patient oxycodone;
- Continuing to prescribe oxycodone to patients after they failed drug screens.
Ball is charged with one count of conspiracy to distribute oxycodone, and 21 counts of distribution of oxycodone. If convicted, she faces a maximum penalty of 20 years in prison on each count. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Calix was sentenced to seven years in prison on September 28, 2022, for conspiring to distribute oxycodone.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement.
Assistant U.S. Attorney Katherine E. Rumbaugh is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-CR-cr-80.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Alliance Woman Sentenced for Drug CrimeRead the Press Release
United States Attorney Steven Russell announced that Tiffany Davis, 40, of Alliance, Nebraska, was sentenced today in federal court in Lincoln for possession with intent to distribute methamphetamine. Senior United States District Judge John M. Gerrard sentenced Davis to 51 months of imprisonment. There is no parole in the federal system. After her release from prison, Davis will begin a four-year term of supervised release.
On November 5, 2021, officers pulled over Davis’s car in Alliance. Officers executed a search warrant on the car and located approximately 44 grams of actual methamphetamine in Davis’s purse. Davis was intending to distribute the methamphetamine.
This case was investigated by the Federal Bureau of Investigation and Box Butte County Sheriff’s Office.Alleged Member of La Oficina de Envigado Pleads Guilty to Role in Drug Trafficking Conspiracy Tied to Medellín CartelRead the Press Release
BOSTON – A Colombian man pleaded guilty yesterday in federal court in Boston to his role in a drug trafficking conspiracy connected with organized crime in the Republic of Colombia.
Mario Zapata Velez, 41, of Medellín, pleaded guilty to conspiracy to commit extortion, conspiracy to commit money laundering, conspiracy to make extortionate threats, interstate travel in aid of racketeering, collection of credit by extortionate means and conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for July 25, 2023. Zapata was indicted by a federal grand jury in May 2020 along with co-conspirators Fabio de Jesus Yepes Sanchez, Miguel Colindres and Juan Pablo Ariasgil.
Zapata and, allegedly, Yepes were members of La Oficina de Envigado (La Oficina), a criminal organization based in Medellín, Colombia. La Oficina originated in the 1980s when its members provided enforcement and collection services for the Medellín Cartel, including deceased Medellín Cartel leader Pablo Escobar. Today, La Oficina is allegedly involved in international narcotics trafficking, drug debt collection, money laundering, extortion and murder for hire.
Zapata and, allegedly, Yepes conspired to use threats to extort approximately $750,000 in drug debt from two cocaine traffickers based in Massachusetts. Zapata and, allegedly, Yepes also conspired with Colindres and Ariasgil to obtain five kilograms of cocaine from the Massachusetts traffickers, sell those kilograms, and then repatriate the drug proceeds to Colombia, in partial satisfaction of the outstanding drug debt.
On April 24, 2023, Colindres was sentenced to 51 months in prison and three years of supervised release after previously pleading guilty to his role in the cocaine conspiracy. In May 2022, Ariasgil was sentenced to four years in prison and four years of supervised release after previously pleading guilty to his role in the cocaine conspiracy. Yepes has not pleaded guilty and is pending trial.
The charge of conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine provides for a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Valuable assistance in the investigation was provided by the Criminal Division’s Office of International Affairs of the Justice Department; Internal Revenue Service’s Criminal Investigations in Boston; and the Government of Colombia. Assistant U.S. Attorneys Lauren A. Graber and Jared C. Dolan of Rollins’ Criminal Division prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Additional Arrests Made in Fentanyl Distribution Conspiracy Spanning from California to D.C.Read the Press Release
WASHINGTON – Federal law enforcement arrested an additional two members of a fentanyl distribution conspiracy responsible for bringing thousands of fake blue Oxycodone (M30) pills, containing fentanyl, from California to Washington D.C., announced U.S. Attorney Matthew M. Graves, and DEA Special Agent in Charge Jarod Forget, of the Washington Division, and Chief Robert J. Contee, III, of the Metropolitan Police Department.
Max Alexander Carias Torres, 25, and Raymond Nava, Jr., 19, each of Los Angeles, California, are charged in an indictment with conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl. Carias Torres is separately charged with international money laundering. Both men were arrested in Los Angeles, California, on April 26, 2023, and were ordered detained pending trial by United States District Judge Colleen Kollar-Kotelly on April 28, 2023. Three additional members of the conspiracy who were previously arrested, Hector David Valdez, Craig Eastman, and Charles Jeffrey Taylor, also remain detained without bond pending trial.
According to the indictment, from on or about January 2021 to April 2023, Carias Torres, Nava, Valdez, Taylor, and Eastman conspired together to distribute 400 grams or more of a mixture and substance containing fentanyl. Carias Torres is also alleged to have conspired to commit international promotional money laundering in connection with proceeds derived from the drug trafficking conspiracy.
Carias Torres was arrested inside his residence in Los Angeles, California on April 26, 2023. During a search of his residence, law enforcement recovered approximately a half-kilogram of suspected methamphetamine, numerous fake blue Oxycodone (M30) pills, and drug ledgers. Valdez was arrested on February 24, 2023, in the Central District of California. During a search of his residence, law enforcement recovered over 4.4 kilograms of blue M30 pills and a half-kilogram brick of powder, which tested positive for fentanyl. Valdez was ordered detained pending trial and is currently being transferred to the District of Columbia for prosecution. On March 22, 2023, law enforcement arrested Taylor and Eastman inside Taylor’s residence and seized seven firearms while executing a search warrant.
The drug trafficking conspiracy charge carries a mandatory minimum sentence of 10 years in prison up to life; the money laundering conspiracy charge carries a sentence of up to 20 years in prison. The sentencing will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The investigation of this case had the sponsorship and support of the federal Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF specializes in the investigation and prosecution of drug trafficking and money laundering organizations and related criminal enterprises.
The prosecutions followed a joint investigation by the DEA Washington Division in partnership with the Metropolitan Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the U.S. Postal Inspector, with additional support from the DEA Los Angeles and Riverside Field Offices. It is being prosecuted by Assistant U.S. Attorneys David T. Henek, Matthew W. Kinskey, and Andy Wang of the Violence Reduction and Trafficking Offenses (VRTO) Section.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
27 April 2023
“Pig meat” hauler sentenced for smuggling 71 people in trailerRead the Press Release
LAREDO, Texas – A 48-year-old Splendora resident has been order to federal prison for transporting undocumented aliens, announced U.S. Attorney Alamdar S. Hamdani.
Denny Fuentes pleaded guilty Sept. 15, 2022.
Today, U.S. District Judge Diana Saldaña ordered Fuentes to serve 15 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard the aliens, including five unaccompanied minors, were locked in the semi-trailer. In handing down the sentence, the court noted that Fuentes put everyone who was in the trailer in danger of harm.
On June 15, 2022, Fuentes drove a white semi-tractor pulling a white refrigerated utility trailer. He slowly approached the primary commercial lane at the Border Patrol (BP) checkpoint in Webb county, but authorities had to order him to stop.
At initial inspection, he displayed nervous behavior, and his lips were trembling. Fuentes told authorities he was “hauling pig meat.” He provided his passport and a manifest for products requiring transport at no higher than 45 degrees. However, the trailer temperature was set at 56 degrees.
Upon a secondary inspection, authorities discovered 71 undocumented aliens that included five minors.
The temperature inside the enclosed metal trailer was almost 80 degrees while the outside temperature was approximately 100 degrees.
Fuentes was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility no earlier than September 8, 2023.
Homeland Security Investigations conducted the investigation with the assistance of BP. Assistant U.S. Attorney Homero Ramirez prosecuted the case.
Waterbury Man Sentenced to 2 Years in Federal Prison for Lying to Federal Agents Investigating Waterbury Gang ViolenceRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that SHAN THOMPSON, 25, of Waterbury, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 24 months of imprisonment, followed by three years of supervised release, for making false statements to federal law enforcement agents investigating gang-related violence in Waterbury.
According to court documents and statements made in court, the FBI, ATF, and Waterbury Police have been conducting a long-term investigation into drug trafficking and numerous acts of violence being committed by gang members in Waterbury. In November 2018 and September 2019, Thompson made false statements to FBI special agents about a shooting incident that occurred in the area of Wolcott Street in Waterbury on November 22, 2017, which resulted in the deaths of two individuals.
Thompson has been detained in state custody since February 2018. On February 2, 2023, he pleaded guilty in federal court to two counts of making a false statement to a government agent.
This investigation is being conducted by the FBI’s Northern Connecticut Gang Task Force, ATF and Waterbury Police Department, with the assistance of the Watertown Police Department, New Milford Police Department and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Geoffrey M. Stone, John T. Pierpont, Jr. and Natasha M. Freismuth, and Supervisory Assistant State’s Attorney Don E. Therkildesen and Deputy Assistant State’s Attorney Alexandra Arroyo of the Waterbury State’s Attorney’s Office, who have been cross-designated as Special Assistant U.S. Attorneys in this matter.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Waterbury Man Admits Role in Kidnapping and Murder of Massachusetts Man Whose Body was Found in HartfordRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that CALVIN ROBERSON, also known as “Cutty,” 40, of Waterbury, pleaded guilty today in New Haven federal court to offenses related to the kidnapping and murder of a Massachusetts man in 2020.
According to court documents and statements made in court, on December 24, 2020, Roberson and another individual kidnapped Francisco Roman, Jr., 28, at gunpoint from a residence in Chicopee, Massachusetts. Roberson and his associate threatened to harm Roman if he did not comply with their orders, handcuffed him, and stole cash, marijuana, and other items from Roman. Roberson and his associate forced Roman into the rear of Roman’s 2010 Acura ZDX, and transported Roman and the other stolen property to Connecticut. Roberson’s associate shot and killed Roman while the car was en route to Hartford. They then drove the car to Shultas Place in Hartford and left it parked on the street.
Shortly before 9 p.m. on December 26, 2020, Hartford police and fire personnel responded to Shultas Place and found the car engulfed in flames. After the fire was extinguished, investigators discovered Roman’s body with multiple gunshot wounds in the rear of the vehicle.
Roberson was arrested on February 11, 2021.
Roberson pleaded guilty to one count of conspiracy to commit kidnaping, and one count of causing the death of a person through the use of a firearm. At sentencing, Roberson faces a maximum term of imprisonment of life. He has been detained since his arrest.
As to Roberson’s associate, who is awaiting trial, U.S. Attorney Avery that charges are not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the FBI’s Northern Connecticut Gang Task Force, FBI’s Springfield Gang Task Force, Massachusetts State Police, Hampden County (Mass.) District Attorney’s Office, Hartford Police Department’s Major Crimes Division, Chicopee Police Department and Springfield Police Department, with the assistance of the Waterbury Police Department and the FBI’s Atlanta Field Office.
This case is being prosecuted by Assistant U.S. Attorneys Brian P. Leaming and Angel M. Krull.
U.S. Attorney Avery thanked the U.S. Attorney’s Office for the Middle District of Georgia and the U.S. Attorney’s Office for the District of Massachusetts for their assistance in this matter.
Washington County Man Admits to Stealing 32 Firearms from Hudson Falls Gun Store, and Using the Firearms in Relation to Drug TraffickingRead the Press Release
ALBANY, NEW YORK – Jonathon Combs, age 43, of Granville, New York, pled guilty today to two counts of theft of firearms from a licensed dealer, and to using firearms during and in relation to a drug trafficking crime.
United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); New York State Police (NYSP) Acting Superintendent Steven A. Nigrelli; and Washington County Sherriff Jeffrey J. Murphy made the announcement.
Combs admitted to stealing firearms from Calamity Jane’s Firearms and Fine Shoes, a federally licensed firearms dealer, in Hudson Falls, New York, on two separate dates in October 2022. On the second occasion, Combs and a co-conspirator used a sledgehammer to break into the store after hours and steal 31 semi-automatic pistols. Combs and the co-conspirator subsequently exchanged most of the stolen pistols to another individual in return for a supply of cocaine.
Combs faces at least 5 years and up to life in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 5 years when he is sentenced by United States District Judge Anne M. Nardacci. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The following defendants still face charges in this case, and face the following penalties:
Name
Age
Minimum
Maximum
Martin Taft
48
5 years
Life
Kwahpreme Mitchell
32
5 years
Life
These charges are merely accusations, and Taft and Mitchell are each presumed innocent unless and until proven guilty.
NYSP, ATF and the Washington County Sheriff’s Office investigated this case with assistance provided by the Washington County District Attorney’s Office. Assistant U.S. Attorneys Emmet O’Hanlon and Allen J. Vickey are prosecuting this case.
Vermonter Pleads Guilty to Attempted Enticement and Coercion of a MinorRead the Press Release
ALBANY, NEW YORK – Scarlet Shadows, a/k/a “Dragongurl69,” age 32, of West Rutland, Vermont, pled guilty today to one count of attempted enticement of a minor. United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Shadows, formerly known as Randy Emillion Goodreau, admitted that she attempted to entice and coerce an individual, whom Shadows believed to be an 11-year-old girl, to have sex. After weeks of exchanging sexually explicit text messages with this individual and another person Shadows believed was the child’s guardian, Shadows traveled in January 2022 from Vermont to Warren County, New York, with an engagement ring, condoms, and gifts for the child, intending to have sex with the child.
Shadows faces at least 10 years and up to life in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000 when she is sentenced on August 25, 2023 by United States District Judge Anne M. Nardacci. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Shadows will also be required to register as a sex offender upon her release from prison.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state, and local law enforcement agencies, including the Colonie Police Department and the New York State Police. Assistant United States Attorney Joshua R. Rosenthal is prosecuting the case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
U.S. Attorney's Office Joins in Recognizing 42nd Annual National Crime Victims' Rights Week, April 23-29, 2023Read the Press Release
PORTLAND, Ore.— Every April, the Justice Department’s Office for Victims of Crime (OVC) leads communities across the country in observing National Crime Victims’ Rights Week (NCVRW) to honor crime victims, promote their rights and recognize victim advocates. This year’s observance, the 42nd annual commemoration, takes place April 23-29, 2023, with the theme: Survivor Voices: Elevate. Engage. Effect Change.
The U.S. Attorney’s Office joins its federal, state, local and Tribal law enforcement partners in taking this opportunity to highlight the importance of providing necessary services at the earliest possible stage of victimization and litigation. Early intervention helps prevent further victimization and encourages victim involvement in the criminal justice system, mitigating the cycle of violence and restoring hope for the future.
“Giving victims information and choices about how they can participate fully in cases is not only their right, but also meaningful and helpful for their recovery from the trauma of their victimization. We are honored to be a part of this important process,” said Amanda Reichmuth, Victim-Witness Coordinator for the District of Oregon.
During National Crime Victims’ Rights Week, victim advocacy organizations, community groups and state, local, and tribal agencies host rallies, candlelight vigils, and other events to raise awareness of victims’ rights and services.
OVC and U.S. Attorney’s Offices encourage widespread participation in the week’s events and in other victim-related observances throughout the year. For additional information about this year’s National Crime Victims’ Rights Week and how to assist victims in your community, please visit OVC’s website at www.ovc.gov. For ongoing updates from OVC and ideas throughout the year on how you can support victims, please subscribe to OVC’s email notifications at https://ovc.ncjrs.gov/ncvrw/subscribe/.
If you or someone you know are in immediate danger, please call 911. If you believe you’ve been the target or victim of a crime, please contact your local law enforcement agency or your nearest FBI field office immediately. The FBI Portland Field Office can be reached at (503) 224-4181 or by submitting tips online at tips.fbi.gov.
Tifton Bartender Sentenced to Prison for Distributing Fentanyl and MethRead the Press Release
ALBANY, Ga. – A Mexican citizen who was brokering large amounts of fentanyl and methamphetamine while working as a bartender in Tifton, Georgia, was sentenced to federal prison for his crime.
Edgar Fernando Neri aka Colocho, 22, of Guadalajara, Mexico, was sentenced to serve 87 months in prison to be followed by three years of supervised release by U.S. Senior District Judge Hugh Lawson on April 26, after he previously pleaded guilty to one count of distribution of methamphetamine. There is no parole in the federal system.
“Fentanyl is a poison infecting our communities and attracts other dangerous criminal activities, as seen in this case,” said U.S. Attorney Peter D. Leary. “We are working with law enforcement at every level to push back against the threat of fentanyl and the international criminal networks supporting its distribution.”
“A large amount of illegal drugs was taken off the streets of South Central Georgia. We will continue to dedicate resources to investigating drug activity to make our communities safer. Thank you to our federal partners for being a force multiplier when it comes to successfully investigating and prosecuting these types of cases,” said GBI Director Michael Register.
“This defendant posed a clear and present danger to the Tifton community by dealing in dangerous drugs, including discussions of firearms trafficking,” said Robert J. Murphy, the Special Agent in Charge of the Atlanta Field Division. “Thanks to collaborative partnerships between the DEA and its law enforcement partners, this defendant no longer poses a threat to Tifton and elsewhere.”
According to court documents, GBI agents developed a confidential source in late August 2021 who had information regarding the distribution of methamphetamine in Tifton (Tift County). The confidential source had been purchasing drugs from a local bartender known as "Colocho.” During the investigation, Neri discussed moving pounds of methamphetamine, multiple kilos of cocaine, as well as the purchase of body armor, rifles, a rocket launcher and rockets with his supplier in Los Angeles, California.
Multiple controlled purchases of methamphetamine were made from Neri, and Neri arranged for shipments of more methamphetamine and fentanyl pills from his L.A. source. Packages containing three pounds of methamphetamine and 1,990 blue fentanyl pills were sent from Neri’s source in L.A. to Tifton in Oct. 2021; Neri was taken into custody on Oct. 19, 2021. Neri is being held responsible for distributing 1,290.93 grams of actual methamphetamine based on the high level of purity of the methamphetamine involved and 1,990 pills containing fentanyl and weighing 205.92 grams.
The case was investigated by DEA, GBI and the Tift County Sheriff’s Office, with assistance from the U.S. Postal Inspection Service.
Assistant U.S. Attorney Robert D. McCullers prosecuted the case.
Three Individuals Charged with Unlawfully Possessing U.S. Postal Service Key and Possession of Stolen MailRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury yesterday indicted three individuals with possession of stolen mail and the unlawful possession of postal service keys, announced U.S. Attorney Prim F. Escalona and U.S. Postal Inspection Service Inspector-in-Charge Scott D. Fix, Houston Division.
A nine-count indictment filed in U.S. District Court charges Derrell Allen Matthews, 25, of Birmingham and Keaundria Janae Gresham, 30, of Pleasant Grove, with conspiracy. Matthews was also charged with paying a bribe to a public official, possession of U.S. Postal Service Keys, stolen or reproduced, and possession of stolen mail. Gresham was also charged with public official accepting a bribe and possession of U.S. Postal Keys, stolen or reproduced. Steven Cornelius Hudson, Jr, 34, of Bessemer, was charged with possession of stolen mail.
According to the indictment, Gresham was employed by the United States Postal Service (USPS) as a letter carrier and was assigned to a U.S. Post Office in Birmingham. Between July 2022 and November 2022, Gresham used her position to provide unauthorized access to a USPS Arrow Keys to Matthews in exchange for money. In October 2022, Matthews was found in possession of a postal service key and stolen mail. In April 2023, Matthews, along with co-defendant Hudson, Jr., was found in possession of a postal service key and stolen mail.
If you like to report United States Postal Service mail theft or other crimes committed through or towards the United States Postal Service, please contact the United States Postal Inspection Service at 1-877-876-2455 or https://www.uspis.gov/report.
The maximum penalty for conspiracy is five years in prison. The maximum penalty for unlawful possession of a postal service key is 10 years in prison. The maximum penalty for paying a bribe to a public official and a public official accepting a bribe is 15 years in prison. The maximum penalty for possession of stolen mail is five years in prison.
U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Daniel McBrayer is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Texas Tax Preparer Sentenced for False ReturnsRead the Press Release
A Texas woman was sentenced today to 27 months in prison for willfully assisting clients in the preparation and filing of false tax returns with the IRS.
According to court documents, between 2014 and 2017, Adela Cruz operated a business in Uvalde County preparing tax returns. To inflate her clients’ refunds, Cruz claimed on those returns false education credits, dependents, and business profits or losses. Cruz did not sign these false returns as the preparer, but rather concealed her involvement by using fictitious taxpayer emails. Cruz also claimed false education credits on her own tax returns for 2015 and 2016.
In addition to the term of imprisonment, U.S. District Judge David Counts ordered Cruz to serve one year of supervised release and to pay a $1,500 fine and $129,239 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jaime E. Esparza for the Western District of Texas made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Robert A. Kemins and Nicholas J. Schilling, Jr., of the Justice Department’s Tax Division are prosecuted the case.
Tesoro to Pay $27.5 Million for Violating Previous Court Order Requiring it to Reduce Air Pollution at Its Martinez, Calif. RefineryRead the Press Release
The Department of Justice and the Environmental Protection Agency (EPA) today announced that Tesoro Refining and Marketing Company will pay a $27.5 million penalty for violating a 2016 consent decree ordering the company to reduce air pollution at its petroleum refinery in Martinez, California. In particular, according to today’s settlement, Tesoro failed to limit air emissions of nitrogen oxides (NOX), a pollutant that contributes to smog.
The settlement requires Tesoro to adhere to strict pollution controls at the facility. The facility is currently undergoing conversion into a renewable fuels plant, which will use renewable sources such as vegetable oils to produce fuels instead of crude oil. The settlement also sets up a framework for additional pollutant reductions, including significant climate co-benefits. Specifically, the settlement requires Tesoro to forego hundreds of annual emission credits that it could otherwise sell to area sources who could then increase their emissions.
“Today, we are holding Tesoro accountable for its failure to implement court-ordered pollution controls,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This settlement requires Tesoro to forfeit substantially more air emission credits than the excess emissions associated with its violations, resulting in cleaner air for those who live and work in the San Francisco area.”
“Tesoro did not meet the consent decree pollution limit because it did not install adequate pollution controls,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. “As this settlement shows, EPA will seek substantial penalties when companies delay installing appropriate pollution controls to meet environmental obligations.”
In May 2020, Tesoro suspended operations at the Martinez refinery and then announced its plan to convert the refinery to a renewable fuels plant. Today’s agreement includes requirements to limit air pollution from the future renewable fuels plant. The agreement does not prohibit Tesoro from resuming petroleum refining, but if it does so, Tesoro must install specific air pollution control technology, at an expected cost of $125 million, to ensure stringent NOX emission limits are met.
“Tesoro failed to meet its requirement to reduce air pollution at the Martinez refinery, and EPA is now taking firm action to hold Tesoro accountable,” said Regional Administrator Martha Guzman of the EPA Pacific Southwest. “This settlement ensures that Tesoro complies with stringent air pollution limits, to protect neighboring communities regardless of fuel type.”
To mitigate pollution resulting from its violation of the 2016 consent decree, Tesoro agreed to surrender most of its existing NOX emission trading credits. Tesoro also agreed to forego almost all trading credits from the shutdown of petroleum refining equipment should it convert to a renewable fuels plant. A company can receive emission credits by shutting down equipment and then apply such credits to offset emissions from new projects or trade such credits to other companies for their use. By requiring Tesoro to surrender existing credits and forego petroleum-related shutdown credits if it converts to a renewable fuels plant, the settlement prevents Tesoro and other local sources from using these credits. As a result, the settlement filed today will limit emissions in the San Francisco Bay area.
Specifically, if Tesoro resumes petroleum refining, the settlement requirements will reduce annual air emissions by about 261 metric tons of NOX. If Tesoro converts the facility to a renewable fuels plant, the settlement will result in annual air emissions reductions of about 440 tons of NOX, 327 tons of sulfur dioxide, 697 tons of carbon monoxide, 69 tons of volatile organic compounds, 301 tons of fine particulate matter and the equivalent of 1,342,025 tons of carbon dioxide.
The terms of a 2016 federal consent decree, which resolved Clean Air Act violations at the Martinez refinery and five other refineries nationwide, established emission limits for multiple pollutants including NOX. The settlement announced today, which will modify the 2016 settlement, includes new requirements that apply whether Tesoro chooses to reopen the Martinez facility as a petroleum refinery or a renewable fuels plant.
There will be a 30-day public comment period on the modification to the 2016 settlement. Information on how to comment on the modification will be available in the Federal Register and at www.justice.gov/enrd/consent-decrees.
For more information on the 2016 federal consent decree and today’s agreement, go to 2023 Tesoro Martinez Clean Air Act Settlement Information Sheet | US EPA.
Summerset Man Sentenced for Child Pornography and Assault on a Federal OfficerRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Summerset, South Dakota, man convicted of Receipt of Child Pornography and Assault on a Federal Officer. The sentencings took place on April 21, 2023.
As to the charge of Receipt of Child Pornography, Caleb Wayne Cook, 24, was sentenced to five years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
For the Assault on a Federal Officer, Cook was sentenced to 18 months in federal prison, to be served consecutively to the other five-year sentence, followed by three years of supervised release, and ordered to pay another $100 special assessment to the Federal Crime Victims Fund.
Cook was indicted for Receipt of Child Pornography and Possession of Child Pornography by a federal grand jury in March of 2022. He was indicted for Assault on a Federal Officer in May of 2022. He pleaded guilty on January 18, 2023.
Between September 2016 and December 2021, Cook used the Internet to download images of child pornography and videos depicting child pornography into his Dropbox account and other devices. This conduct was brought to the attention of law enforcement through a Cybertip sent by Dropbox to the National Center for Missing and Exploited Children. When the Dakota Territory Fugitive Taskforce executed the arrest warrant on Cook at his workplace, Deputy U.S. Marshals attempted to place Cook into custody. Cook pulled a handgun out of his waistband, racked the slide, and barricaded himself in a restroom. The Rapid City Special Response Team and their negotiators were called in and were able to talk Cook out of the restroom. Cook was placed under arrest for the child pornography charges and an additional charge for the assault on the Deputy U.S. Marshals.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006, by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the South Dakota Division of Criminal Investigation Internet Crimes Against Children Task Force, Pennington County Sheriff’s Office, Rapid City Police Department, and the U.S. Marshals Service. Assistant U.S. Attorney Heather Knox Sazama prosecuted the case.
Cook was immediately remanded to the custody of the U.S. Marshals Service.
Suburban Chicago High School Coach Charged with Possession of Child PornographyRead the Press Release
CHICAGO — A suburban Chicago high school track and field coach has been charged with possessing child pornography.
Per the complaint, beginning in the summer of 2022 and continuing until September of 2022, GLEN CLIFFORD MESSMER, 46, of Darien, an assistant track coach at High School A, interacted with at least two minors, Minor A and Minor B, in another State via the social media platforms Snapchat and Telegram. Messmer convinced the two minors to produce child sexual abuse material, in at least one instance providing specific instructions as to how to produce the material he wanted. The complaint alleges that Messmer paid Minor A and Minor B for the child sexual abuse material via CashApp.
On April 25, 2023 law enforcement executed a search warrant at Messmer’s home and identified multiple image and video files that contained child pornography on a computer in the residence. Messmer was arrested and had an initial appearance before United States Magistrate Judge Jeffrey Cummings on April 26, 2023. Messmer is currently detained in federal custody pending a detention hearing before Judge Cummings.
The charge was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; and Sean Fitzgerald, Special Agent-in-Charge of the Chicago Office of Homeland Security Investigations. The government is represented by Assistant U.S. Attorney Adam Rosenbloom.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charges are punishable by a maximum of 10 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Stratford Doctor Sentenced to 4 Years in Federal Prison for Health Care Fraud and Illegal Kickback OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ANANTHAKUMAR THILLAINATHAN, MD, 45, of Stratford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 48 months of imprisonment, followed by three years of supervised release, for health care fraud and illegal kickback offenses.
According to court documents and statements made in court, Thillainathan is a medical doctor and the owner and president of MDCareNow LLC, a medical practice with offices in Stratford and Milford. MDCareNow has been a participating provider enrolled as both an internal medicine group and as a behavioral health clinician group in the Connecticut Medicaid program. Between approximately June 2019 and May 2022, Thillainathan submitted or caused to be submitted to Connecticut Medicaid approximately $839,724 in fraudulent claims for psychotherapy services that he knew patients did not receive from his employees. Thillainathan knew that the billed psychotherapy Current Procedural Terminology (CPT) codes, which identify the nature and complexity of the services provided, were not supported by medical records provided by his employees, and that the services were not provided. The investigation revealed that Thillainathan submitted fraudulent claims to Medicaid for reimbursement that falsely represented his employees had rendered 60-minute psychotherapy sessions when, in fact, his employees only had very brief conversations with patients, had only left a voicemail for patients, or had no contact with patients at all.
In addition, in violation of his Connecticut Medical Assistance Program (CTMAP) provider agreement, Thillainathan paid a third-party “patient recruiting” company for each Connecticut Medicaid patient the company recruited and provided with transportation to MDCareNow for medical services. Thillainathan paid the patient recruiting company approximately $100 per patient for an initial visit to MDCareNow and approximately $40 per patient for any subsequent visit. Between approximately November 2019 and May 2021, Thillainathan paid the patient recruiting company for the recruitment of approximately 1,018 Connecticut Medicaid patients, and Connecticut Medicaid reimbursed MDCareNow a total of approximately $1,071,328 for services provided to these patients.
Judge Underhill ordered Thillainathan to pay $1,674,880 in restitution, with $500,000 due within 60 days.
On November 3, 2022, Thillainathan pleaded guilty to one count of health care fraud and one count of kickbacks involving federal health care programs.
While he was released on bond and awaiting sentencing, Thillainathan surrendered his Connecticut Controlled Substance Certificate of Registration. Despite no longer holding a valid controlled substance license, Thillainathan wrote at least 34 prescriptions for controlled substances, including 14 prescriptions for oxycodone. Thillainathan’s bond was revoked, and he has been detained since January 13, 2023.
Thillainathan, a citizen of Sri Lanka and a lawful permanent resident of the U.S., faces immigration proceedings when he completes his prison term.
This investigation was conducted by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), the Medicaid Fraud Control Unit of the Connecticut Chief State’s Attorney’s Office, the Connecticut Attorney General’s Office and the Connecticut Department of Social Services. The case was prosecuted by Assistant U.S. Attorneys Heather L. Cherry and Elena L. Coronado.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Sioux City Woman Sentenced to Federal Prison for Lying on Firearm Purchase FormRead the Press Release
Christen Williams, 35, from Sioux City, Iowa, was sentenced today to 10 months in federal prison for making false statements during the purchase of a firearm. Williams received the prison term after a December 5, 2022, guilty plea.
Evidence at the hearing established that between August 23 and 24, 2021, Williams purchased three firearms from Fleet Farm in Sioux City. Williams falsely indicated on the purchase forms that she was the intended recipient when she was purchasing the firearms on the behalf of another. These firearms were later recovered at three separate crime scenes over the next 46 days, one of which was a drive-by shooting.
Williams was sentenced in federal court in Sioux City, Iowa, by United States District Court Chief Judge Leonard T. Strand to 10 months’ imprisonment. She must also serve a 1-year term of supervised released following 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.
The case was prosecuted by Assistant United States Attorney Kraig R. Hamit and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4079. Follow us on Twitter @USAO_NDIA.
Sioux City Man Pleads Guilty to Illegal Possession of FirearmsRead the Press Release
Felipe Martin, 26, from Sioux City, Iowa, pled guilty on April 27, 2023, to being a prohibited person in possession of firearms.
Evidence at the plea hearing showed that on August 29, 2022, law enforcement conducted a traffic stop in Lemars, Iowa, of a vehicle that defendant was driving and noted the odor of marijuana coming from inside the vehicle. During a search of the vehicle, a Glock 9mm Luger, a .45 ACP pistol, ammunition, and a marijuana roach were found. Law enforcement later executed a search warrant at defendant’s residence and recovered drug paraphernalia, baggies, cocaine, and marijuana. Defendant further admitted he was an unlawful user of marijuana and cocaine, which by federal law prohibits a person from possessing any firearm or ammunition.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Martin was allowed to remain on release pending sentencing. He faces a possible maximum sentence of 15 years’ imprisonment, a $250,000 fine, and not more than three years of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Plymouth County Sheriff’s Office, Le Mars Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4078. Follow us on Twitter @USAO_NDIA.
Silicon Valley Start-Up Founder Pleads Guilty to Securities Fraud for Overstating Revenue to InvestorsRead the Press Release
SAN FRANCISCO – Manish Lachwani pleaded guilty in federal court in San Francisco today to wire fraud and securities fraud charges in connection with his scheme to dupe potential investors into supporting the technology start-up he founded and led, announced United States Attorney Ismail J. Ramsey and FBI Special Agent in Charge Robert K. Tripp. The guilty pleas were accepted by U.S. District Judge Charles R. Breyer.
Lachwani, 47, of Los Altos, Calif., founded Silicon Valley-based HeadSpin, a company that provided clients with software tools and access to devices to test mobile applications. Lachwani founded the company in 2015 and served as its Chief Executive Officer until May 2020. Between April 2017 and April 2020, HeadSpin raised more than $100 million from investors over multiple rounds of fundraising, leading to a valuation of approximately $1.1 billion. According to his plea agreement, Lachwani admitted that he disseminated false and overstated revenue metrics to potential investors to lure investments into his company.
The plea agreement provides several details of the fraud. Lachwani acknowledged that while HeadSpin was raising money, he provided to prospective investors information about the company’s business, customers, revenue, and finances. Further, because HeadSpin was a software-as-a-service company, Lachwani knew that annual recurring revenue, known as “ARR,” was significant to investors and their decisions whether to invest in HeadSpin. According to the plea agreement, Lachwani admitted that he provided prospective investors with inflated ARR numbers and overstated revenue numbers. With respect to these metrics, Lachwani included amounts from potential customers that had not agreed to pay subscription fees to HeadSpin, amounts that were more than real customers had agreed to pay, and amounts from customers that had stopped using and paying for HeadSpin’s services. Lachwani maintained and controlled an ARR spreadsheet that contained this false information and which he shared with potential investors. In 2018, in connection with a round of fundraising, Lachwani sent a slide deck to investors that stated HeadSpin’s ARR was more than $33 million as of the second quarter of 2018, though Lachwani knew the company’s ARR was far less. In 2019, during another round of fundraising, Lachwani again provided information to investors that overstated ARR, this time stating that HeadSpin’s ARR was $54 million when, in fact, it was far less.
Similarly, with respect to revenues, Lachwani sent invoices to HeadSpin’s accountant that Lachwani knew were altered to show amounts not actually invoiced to clients. HeadSpin investors received financial statements that were impacted by the altered invoices.
On August 4, 2022, a federal grand jury handed down a superseding indictment that charged Lachwani with 11 counts of wire fraud in violation of 18 U.S.C. § 1343, one count of money laundering in violation of 18 U.S.C. § 1957, and four counts of securities fraud in violation of 15 U.S.C. § 78j(b) and 78ff and 17 C.F.R. § 240.10b-5. Pursuant to the plea agreement, Lachwani pleaded guilty to two counts of wire fraud and one count of securities fraud. If Lachwani complies with the plea agreement, the remaining counts will be dismissed at sentencing.
Lachwani is currently released on bond.
U.S. District Judge Breyer scheduled Lachwani’s sentencing hearing for September 27, 2023, at 10:00 a.m. The maximum statutory penalty for each count of wire fraud is 20 years in prison and a fine of $250,000. The maximum statutory penalty for securities fraud is 20 years in prison and a fine of $5 million, plus restitution if appropriate. In addition, as part of the sentence Lachwani may be ordered to pay additional fines and to serve an additional term of supervised release after any prison sentence. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California. Assistant U.S. Attorneys Lloyd Farnham, Noah Stern, and Ross Weingarten are prosecuting the case with the assistance of Elizabeth Kim and Pat Mahoney. The prosecution is the result of an investigation by the FBI. The U.S. Attorney’s Office and the FBI thank the San Francisco Regional Office of the Securities and Exchange Commission (SEC). An SEC civil enforcement action is currently pending against Lachwani in the Northern District of California.
Shiprock Woman Charged with Involuntary Manslaughter and AssaultRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Courtney Frank was arraigned on an indictment charging her with involuntary manslaughter and assault resulting in serious bodily injury. Frank, 19, of Shiprock, and an enrolled member of Navajo Nation, will remain on conditions of release pending trial, which has not been scheduled.
According to the indictment, on Sept. 28, 2022, Frank operated a motor vehicle without due caution and circumspection and with a wanton and reckless disregard for human life when she knew and should have known that her conduct imperiled the lives of others. Frank, who was driving drunk, crashed her car head-on into a car driven by a mother and son, killing the mother and injuring the son.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Frank faces up to 10 years in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department and the New Mexico State Police. Assistant United States Attorney Zachary C. Jones is prosecuting the case.
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Savage Life Gang Members Sentenced to Racketeering ChargesRead the Press Release
DAVENPORT, IA – Two Davenport men were sentenced on Tuesday, April 25, 2023, in relation to a racketeering prosecution. Austin Zachary Ruiz, 28, was sentenced to 202 months in federal prison for assault with a dangerous weapon in aid of racketeering and use and carry a firearm during and in relation to a crime of violence. Olajuwan Hakeem Culbreath, 27, was sentenced to 152 months in federal prison for aiding and abetting the same charges.
In 2016 and 2017, as members of Savage Life Boys (SLB), a Davenport-based street gang, Ruiz and Culbreath were involved in multiple shootings. In December 2016, Ruiz and other SLB members robbed and physically assaulted another male, including pistol-whipping him, at a dice game at an apartment in Davenport. The male escaped from the apartment, but Ruiz chased him, firing numerous rounds at the vehicle in which he fled. The male sustained wounds from the assault and the driver of the vehicle sustained a gunshot wound.
In January 2017, Ruiz, Culbreath, and co-defendant Dimetri Smith were at the NorthPark Mall when they saw a rival gang member. Culbreath, Ruiz, and Smith went to their car, where they had firearms. Culbreath drove to the mall entrance where they expected the rival gang member to exit. When they saw the rival gang member, Ruiz and Smith chased him through the mall parking lot, shooting at him.
In February 2017, Culbreath and co-defendants Smith, Darion Gardner, Najawaun Quinn, and other SLB members started an altercation at a concert at the Hotel Davenport due to perceived disrespect for their gang. During the altercation, Gardner shot and killed one male and injured another. To create a diversion and escape from the hotel, Culbreath fired one round, which did not strike anyone.
In April 2017, Ruiz and Smith were at Centennial Park in Davenport when they saw a male who recently robbed another SLB member’s dice game. Ruiz, armed with a firearm, got out of their vehicle to confront the male. The men struggled over the firearm, which discharged, striking the male in the foot. Smith then joined the altercation, choking the male to unconsciousness to assist them in their flight.
Ruiz and Culbreath committed these acts with the intent to maintain or increase position in the gang.
Following their prison terms, both Ruiz and Culbreath must each serve five years of supervised release. There is no parole in the federal system.
Co-defendants Quinn and Smith are scheduled to be sentenced on August 8, 2023, after a federal jury convicted them of racketeering-related charges following a 7-day trial in February 2023.
In December 2022, Gardner was sentenced to 450 months in prison.
“The hard work and dedication of our officers, investigators, and federal prosecutors delivered justice for those impacted by these violent crimes,” said Davenport Police Assistant Chief Major Jamie Brown. “These cases demonstrate the collaboration and commitment to keeping our community safe.”
United States Attorney Richard D. Westphal the Southern District of Iowa made the announcement. The Davenport Police Department investigated the case.
Savage Life Boys Gang Member Sentenced to Federal Prison for Firearms ChargeRead the Press Release
DAVENPORT, IA – A Davenport man was sentenced on Monday, April 24, 2023, to 60 months in federal prison for being a felon in possession of firearms.
In December 2021, law enforcement identified Milton Lee Howard, Jr., 21, after conducting surveillance at a residence in Davenport. Howard had an active arrest warrant for escape. Howard, a Savage Life Boys gang member, and four additional Savage Life Boys members left that residence in a vehicle, which law enforcement followed to a gas station. Law enforcement blocked the vehicle in, detained the occupants, searched the vehicle, and arrested Howard. Four firearms, an extended magazine, marijuana, and four cell phones were located inside the vehicle. A forensic examination was performed on the seized phones, as well as on the vehicle occupants’ social media accounts. The examination revealed photographs and videos of Howard and other gang members displaying firearms, including two firearms seized from the vehicle. At the time of his arrest, Howard knew he was prohibited from possessing firearms due to his status as a felon.
Following his prison term, Howard must also serve a three-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Davenport Police Department investigated the case.
Rio Rancho Man Charged with Possession of Destructive DevicesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Francisco B. Burrola, Special Agent in Charge of Homeland Security Investigations El Paso, announced today that Peter Ryan Lynch was charged with receipt or possession of a destructive device. Lynch, 46, of Rio Rancho, appeared in federal court today for a detention hearing and will remain on conditions of release pending trial, which has not been scheduled.
According to a criminal complaint, on April 20, 2023, agents from Homeland Security Investigations (HSI) executed a warrant authorizing the search of the residence of Lynch for receiving firearms silencers mailed from China. While clearing the residence, HSI agents located four “pipe bombs,” materials for building pipe bombs, a shotgun, corresponding ammunition, a ballistics vest and several inert grenades.
Inert grenades are often sold as collectors’ items with a hole drilled into the end and the internal components removed. At least one of the grenades recovered at the residence appeared ready to load with a propellant. At the time the warrant was executed, agents determined that one of the pipe bombs was functional and capable of detonation. The other three pipe bombs consisted of two smaller PVC pipes with end caps, and one larger metal pipe fitted with end caps and a fuse.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Lynch faces up to 10 years in prison.
Homeland Security Investigations investigated this case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and New Mexico State Police. Assistant United States Attorney Jon K. Stanford is prosecuting the case.
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Rio Rancho Man Charged with Possession of Destructive DevicesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Francisco B. Burrola, Special Agent in Charge of Homeland Security Investigations El Paso, announced today that Peter Ryan Lynch was charged with receipt or possession of a destructive device. Lynch, 46, of Rio Rancho, appeared in federal court for a detention hearing and will remain on conditions of release pending trial, which has not been scheduled.
According to a criminal complaint, on April 20, 2023, agents from Homeland Security Investigations (HSI) executed a warrant authorizing the search of the residence of Lynch for receiving firearms silencers mailed from China. While clearing the residence, HSI agents located four “pipe bombs,” materials for building pipe bombs, a shotgun, corresponding ammunition, a ballistics vest and several inert grenades.
Inert grenades are often sold as collectors’ items with a hole drilled into the end and the internal components removed. At least one of the grenades recovered at the residence appeared ready to load with a propellant. At the time the warrant was executed, agents determined that one of the pipe bombs was functional and capable of detonation. The other three pipe bombs consisted of two smaller PVC pipes with end caps, and one larger metal pipe fitted with end caps and a fuse.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Lynch faces up to 10 years in prison.
Homeland Security Investigations investigated this case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and New Mexico State Police. Assistant United States Attorney Jon K. Stanford is prosecuting the case.
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Rensselaer County Officials Indicted for Civil Rights ConspiracyRead the Press Release
ALBANY, NEW YORK – Richard W. Crist, age 55, of Nassau, New York; James R. Gordon, age 42, of North Greenbush, New York; and Leslie A. Wallace, age 35, of Troy, New York, were arrested and arraigned today on an indictment charging them with conspiring to violate the rights of Rensselaer County voters in connection with elections held in 2021.
United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Crist is the Director of Operations for Rensselaer County, Gordon is the Director of the Bureau for Central Services of Rensselaer County, and Wallace works for the Rensselaer County Executive’s Office.
The indictment (copy attached) alleges that during local elections held in 2021, Crist, Gordon and Wallace conspired to use their official positions, and actual and apparent authority over Rensselaer County employees, to obtain absentee ballots in voters’ names through fraud and intimidation; these voters did not intend to request absentee ballots, nor did they seek voting assistance from Crist, Gordon or Wallace.
Crist, Gordon and Wallace then conspired to cast false and illegal votes in these voters’ names in primary and general elections held in Rensselaer County in 2021. Their conduct violated the constitutional rights of Rensselaer County voters to have their votes counted equally as compared to votes cast by other voters, and made it more likely that the defendants’ preferred candidates would win the elections.
Gordon is also charged with one count of witness tampering, and Wallace is also charged with one count of making false statements.
The charges in the indictment are merely accusations. Each defendant is presumed innocent unless and until proven guilty.
Crist, Gordon and Wallace were each arraigned today before Chief United States Magistrate Judge Andrew T. Baxter, and ordered released with conditions pending a trial before United States District Judge Mae A. D’Agostino.
If convicted of conspiracy to violate constitutional rights, each defendant faces up to 10 years in prison. If convicted of witness tampering, Gordon faces up to 20 years in prison. If convicted of making false statements, Wallace faces up to 5 years in prison. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The FBI is investigating this case, and Assistant U.S. Attorneys Michael Barnett and Steven D. Clymer are prosecuting this case.
Real Estate Investor Convicted of Defrauding Government Rental Assistance and Medicaid ProgramsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today’s conviction in federal court of PAUL FISHBEIN of multiple counts of fraud and aggravated identity theft. FISHBEIN stole hundreds of thousands of dollars from rental assistance programs administered by New York City’s Human Resources Administration (“HRA”) and New York City’s Housing Preservation & Development (“HPD,” and with HRA, the “Agencies”) by renting out properties throughout the City that he falsely claimed to own and by collecting made-up broker fees. FISHBEIN was also convicted of Medicaid fraud. The jury convicted FISHBEIN today following a nearly two-week trial before U.S. District Judge Paul A. Crotty.
U.S. Attorney Damian Williams said: “New York City assists millions of low-income and vulnerable New Yorkers through different types of programs, including rental assistance programs and Medicaid. These programs were designed to help New Yorkers in need. But, as a jury has now found, for years, Fishbein abused those programs to enrich himself. To do that, he told lie after lie after lie. He stole money, including federal funds, from the City’s rental assistance programs by lying about being the landlord of homes he didn’t actually own. He stole the identity of a real estate broker to get the City to pay him made-up broker fees. And he stole Medicaid benefits by lying to the City about how much money he made. Today, a unanimous jury has held Fishbein accountable for his yearslong fraudulent schemes.”
According to the Indictment, documents previously filed in the case, and the evidence introduced at trial:
From in or about 2013 through May 4, 2021, FISHBEIN rented out properties in New York City to low-income New Yorkers through the Agencies’ rental assistance programs, collecting rent payments from the Agencies as the purported owner of the properties. In fact, FISHBEIN was never the owner of those properties and lied to the Agencies to collect the rent payments. In addition, FISHBEIN lied to HRA that he used the services of a real estate broker to rent out certain properties in order to collect broker fee payments from HRA, also through its rental assistance program. FISHBEIN used an actual real estate broker’s license and name without her authority to collect these made-up broker fees from the City. In-need New Yorkers were placed in these properties, which FISHBEIN, because he was not actually the owner of the properties, failed to maintain. In one instance, the ceiling completely collapsed while a tenant and her family were living in a property FISHBEIN claimed to own. Through these two schemes, FISHBEIN fraudulently obtained hundreds of thousands of dollars from HRA and HPD, including more than $90,000 in federal funds.
FISHBEIN was also convicted of healthcare fraud because, from 2014 through May 4, 2021, he lied to New York City’s Medicaid program about how much money he made in order to collect Medicaid benefits. Medicaid is meant for low-income New Yorkers. FISHBEIN, each year, told the City that he made only $150 a week, or $7,200 a year, when in reality, he was raking in hundreds of thousands of dollars each year from his rental assistance and broker fee schemes described above. By lying about his income and assets, the defendant received at least approximately $49,524.80 in Medicaid benefits to which he was not entitled.
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FISHBEIN, 49, of Queens, New York, was convicted of one count of wire fraud, one count of mail fraud, one count of theft of government funds, one count of aggravated identity theft, and one count of healthcare fraud. The wire fraud and mail fraud charges each carry a maximum sentence of 20 years in prison; the theft of government funds and healthcare fraud charges each carry a maximum sentence of 10 years in prison; and the aggravated identity theft charge carries a mandatory two-year sentence, which must run consecutive to any other prison term imposed.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge. FISHBEIN is scheduled to be sentenced by Judge Crotty on July 31, 2023.
Mr. Williams praised the outstanding investigative work of the New York City Department of Investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Sarah L. Kushner, Christy Slavik, and Jared Lenow are in charge of the prosecution and were assisted at trial by Paralegal Specialist Joseph Magliocco.
Readout of Attorney General Merrick B. Garland’s Visit to the United States Attorney’s Office for the District of MaineRead the Press Release
PORTLAND, Maine: U.S. Attorney Darcie N. McElwee today hosted Attorney General Merrick B. Garland at the U.S. Attorney’s Office in Portland. The Attorney General met with the staff of U.S. Attorney’s Office as well as representatives from federal, state and local law enforcement.
After separate sessions with federal agents and state/local law enforcement officials from throughout Maine to hear their needs and concerns, the Attorney General met with the full staff of the U.S. Attorney’s Office. He praised the cooperation between the Office, federal, state and local law enforcement, saying that the way to solve problems is through communication and integration of law enforcement.
The Attorney General also discussed the Department’s priorities and thanked the staff for their commitment to public service, reiterating that protecting communities and upholding the rule of law is at the core of what U.S. Attorney’s offices do.
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Readout of Assistant Attorney General Kristen Clarke’s Trip to Little Rock and Pine Bluff, ArkansasRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division traveled to Little Rock and Pine Bluff, Arkansas, on April 24 and 25 to continue the Civil Rights Division’s tour to engage with stakeholders in underserved communities and reaffirm the department’s commitment to protecting the civil rights of all Americans. U.S. Attorney Jonathan Ross for the Eastern District of Arkansas joined her for the meetings and events on both days.
On Monday, Assistant Attorney General Clarke visited the historic Little Rock Central High School, where she met with Principal Nancy Rousseau and students to discuss careers in civil rights and the Civil Rights Division’s efforts to enforce federal civil rights laws. This school year marks 65 years since the desegregation of the school. After her visit at the high school, she took a tour of the Little Rock Central High School National Historic Site.
In the afternoon, Assistant Attorney General Clarke participated in a fireside chat with President Roderick L. Smothers Sr., school leadership and students at Philander Smith College, an HBCU founded in 1877. She discussed her career as a civil rights attorney and the department’s efforts to address economic justice issues, including housing discrimination. She also encouraged the students to continue to use their voices to advance racial justice and racial equity.
After her visit to Philander, Assistant Attorney General Clarke met with the U.S. Attorney’s Office for the Eastern District of Arkansas. She thanked the office’s leadership and staff for their service and commitment to protecting civil rights.
She ended the day at the Willie Hinton Community Center for a community conversation with Little Rock Mayor Frank Scott Jr., Police Chief Heath Helton and local stakeholders to hear about local civil rights and racial equity concerns, including modern-day redlining, fair housing and issues impacting small businesses.
On Tuesday, Assistant Attorney General Clarke traveled to Pine Bluff to meet with Mayor Shirley Washington and Police Chief Denise Richardson. She reiterated the Justice Department’s commitment to work with local leaders to address civil rights and racial equity issues.
In the afternoon, she met with University of Arkansas at Pine Bluff Chancellor Laurence B. Alexander and participated in a fireside chat with students as the school marked its 150th anniversary. She encouraged the students to pursue careers in government and public service, and discussed the division’s broad civil rights enforcement efforts, including work to address law enforcement misconduct, and ongoing work to protect voting rights in Arkansas.
Assistant Attorney General Clarke ended her trip by joining Mayor Washington at a community listening session with dozens of local leaders, faith leaders and long-time residents, where she discussed the department’s broad efforts to combat hate crimes, ensure educational opportunity and address modern-day redlining.
In the upcoming weeks, Assistant Attorney General Clarke will travel to Mississippi and South Carolina to continue meeting with stakeholders in underserved communities.
Assistant Attorney General Clarke with U.S. Attorney Ross speaking to a teacher at Little Rock Central High School. Assistant Attorney General Clarke touring the Little Rock Central High School National Historic Site. Assistant Attorney General Clarke speaking at fireside chat at Philander Smith College. Assistant Attorney General Clarke speaking at fireside chat at University of Arkansas Pine Bluff. Assistant Attorney General Clarke, U.S. Jonathan Ross and Mayor Shirley Washington at community meeting in Pine Bluff. Assistant Attorney General Clarke, U.S. Jonathan Ross and staff from the U.S. Attorney’s Office for the Eastern District of Arkansas.Rapid City Man Sentenced to 10 Years in Prison for Receipt and Possession of Child PornographyRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Rapid City, South Dakota, man convicted of Receipt of Child Pornography and Possession of Child Pornography. The sentencing took place on April 24, 2023.
Matthew Shawn Buchko, 40, was sentenced to two 10-year terms in federal prison, to run concurrently, followed by five years of supervised release, to run concurrently. Buchko was also ordered to pay a $200 special assessment to the Federal Crime Victims Fund and will be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Buchko was indicted by a federal grand jury in February of 2021. He was found guilty at trial on January 20, 2023.
Buchko was federally indicted following a Cybertip from the National Center of Missing and Exploited Children in relation to an upload of child pornography using the application Discord. The Internet Crimes Against Children Taskforce executed a search warrant on Buchko’s home and located multiple devices. A forensic examination of those devices found hundreds of images and videos of child pornography, as well as images and videos of child erotica and computer-generated child pornography.
This case was investigated by the Internet Crimes Against Children Taskforce, South Dakota Division of Criminal Investigation, Homeland Security Investigations, Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorneys Sarah B. Collins and Heather Sazama prosecuted the case.
Buchko was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Possession of a Firearm by a Prohibited PersonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on April 24, 2023.
Kyle Mackay, 33, was sentenced to four years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Kyle Mackay was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in May of 2021. He pleaded guilty on January 20, 2023.
On January 28, 2021, law enforcement had contact with Mackay after he was reported as an unwanted subject at the gas station on East Highway 44 in Rapid City. Once he was identified, law enforcement discovered Mackay had an active arrest warrant. When he was searched, Mackay had a firearm on his person, as well as approximately a half ounce of methamphetamine. A check of the firearm showed it had been reported as stolen. Because of a previous felony conviction, Mackay is prohibited from being in possession of firearms.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Rapid City Police Department, Dakota Territory Fugitive Task Force, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Mackay was immediately remanded to the custody of the U.S. Marshals Service.
RGV carjacker sent to prisonRead the Press Release
McALLEN, Texas – A 35-year-old McAllen resident has been ordered to federal prison following his conviction for robbery of a motor vehicle with intent to cause serious harm or death, announced U.S. Attorney Alamdar S. Hamdani.
Fidel Garza Jr. pleaded guilty Feb. 15.
Today, U.S. District Judge Micaela Alvarez handed Garza a 85-month term of imprisonment to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence regarding Garza’s criminal history, including prior felony convictions for discharging a firearm in 2016 and being a felon in possession of a firearm in 2021.
On Nov. 25, 2021, Garza was on the 1200 block of 28th street riding in the passenger seat of a truck which pulled in front of an SUV and stopped. A 67-year-old man was driving that vehicle. Garza exited the passenger side of the truck and approached the SUV. He then pointed a handgun at the driver and demanded he and his three minor passengers get out of the vehicle. Fearing for their lives, they complied. Garza then entered the SUV and fled the scene.
Law enforcement tracked him to a rural location in Edinburg. They arrested him in December 2021, at which time he admitted his role in the robbery.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The McAllen Police Department and Texas Department of Criminal Justice conducted the investigation with the assistance of the FBI and the Edinburg Police Department as part of the Rio Grande Valley Safe Streets Task Force. Assistant U.S. Attorneys Anthony J. Evans and James Sturgis prosecuted the case.
RGV carjacker sent to prisonRead the Press Release
McALLEN, Texas – A 35-year-old McAllen resident has been ordered to federal prison following his conviction for robbery of a motor vehicle with intent to cause serious harm or death, announced U.S. Attorney Alamdar S. Hamdani.
Fidel Garza Jr. pleaded guilty Feb. 15.
Today, U.S. District Judge Micaela Alvarez handed Garza a 85-month term of imprisonment to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence regarding Garza’s criminal history, including prior felony convictions for discharging a firearm in 2016 and being a felon in possession of a firearm in 2021.
On Nov. 25, 2021, Garza was on the 1200 block of 28th street riding in the passenger seat of a truck which pulled in front of an SUV and stopped. A 67-year-old man was driving that vehicle. Garza exited the passenger side of the truck and approached the SUV. He then pointed a handgun at the driver and demanded he and his three minor passengers get out of the vehicle. Fearing for their lives, they complied. Garza then entered the SUV and fled the scene.
Law enforcement tracked him to a rural location in Edinburg. They arrested him in December 2021, at which time he admitted his role in the robbery.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The McAllen Police Department and Texas Department of Criminal Justice conducted the investigation with the assistance of the FBI and the Edinburg Police Department as part of the Rio Grande Valley Safe Streets Task Force. Assistant U.S. Attorneys Anthony J. Evans and James Sturgis prosecuted the case.
Pine Ridge Man Sentenced for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Pine Ridge, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on April 24, 2023.
Isaac Mathews, 41, was sentenced to five years in federal prison, followed by four years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Isaac Mathews was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in October of 2022. He pleaded guilty on January 25, 2023.
On May 10, 2022, law enforcement had contact with Mathews and recovered a firearm, along with a distributable amount of methamphetamine. Between 50 grams and 200 grams of methamphetamine were distributed during the course of the conspiracy.
This case was investigated by the Badlands Safe Trails Drug Enforcement Task Force, which is comprised of agents from the FBI, South Dakota Division of Criminal Investigation, Bureau of Indian Affairs Division of Drug Enforcement, Martin Police Department, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Mathews was immediately remanded to the custody of the U.S. Marshals Service.
Peoria Man Sentenced to 200 Months in Prison for Trafficking in MethamphetamineRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, Demetrice L. Sharp, 39, of the 1500 block of West Candletree Drive, was sentenced on April 26, 2023, to 200 months in prison for each of four counts related to trafficking methamphetamine: one count of conspiracy to distribute 50 grams or more of methamphetamine, two counts of distribution of 50 grams or more of methamphetamine, and one count of possession with intent to distribute 450 grams or more of methamphetamine. The sentences will be served concurrently and will be followed by an eight-year term of supervised release.
At the sentencing hearing before U.S. District Judge James E. Shadid, the United States presented evidence that Sharp and Lashonda Patterson conspired to distribute methamphetamine during the spring of 2022. As a part of the conspiracy, they sold methamphetamine on two occasions in April 2022. For the first sale, Sharp provided 55.85 grams of methamphetamine. For the second, Patterson provided 112.7 grams of methamphetamine. Both deliveries were 100% pure methamphetamine.
In June 2022, Federal Bureau of Investigation agents obtained a search warrant for the apartment that Sharp and Patterson shared. When agents searched the apartment, they found a bag containing 298.6 grams of methamphetamine in the master bathroom. The substance was 97% pure methamphetamine. The distribution from the sales and search warrant totaled 467.15 grams of methamphetamine.
A complaint was issued that same month, and Sharp and Patterson were arrested on federal warrants. They were indicted later in June, and Sharp pleaded guilty in October 2022. He has remained in the custody of the U.S. Marshals Service since his arrest. Patterson also pleaded guilty to conspiracy to distribute and to possess with intent to distribute 50 grams or more of methamphetamine, and she will be sentenced at a later date.
The statutory penalties for each of the four counts are 10 years to life imprisonment, followed by five-year to life term of supervised release.
The Federal Bureau of Investigation, Springfield Field Office, and Western Illinois Transnational Organized Crime Task Force investigated the case, with assistance from the Peoria Police Department, Monmouth Police Department, Knox County Sheriff’s Office, Galesburg Police Department, East Moline Police Department, Illinois State Police, and U.S. Department of Justice Drug Enforcement Administration. Assistant U.S. Attorney Keith Hollingshead-Cook represented the United States in the prosecution.
Omaha Woman Sentenced to 168 Months for Conspiring to Distribute Methamphetamine within 1,000 Feet of a City ParkRead the Press Release
United States Attorney Steven Russell announced that Gianetta Lynn Middleton, 51, of Omaha, Nebraska, was sentenced in federal court in Omaha on April 25, 2023, for Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine within 1,000 feet of a Protected Location. United States District Brian C. Buescher sentenced Middleton to 168 months’ imprisonment. She was also ordered to serve 10 years of supervised release after her release from prison. There is no parole in the federal system.
Between September 1, 2021, and November 23, 2021, Middleton and others conspired to distribute 168 grams of methamphetamine from her apartment in Fremont, Nebraska. During this time period, Middleton sold methamphetamine multiple times from her apartment, which is located across the street from a city park.
This case was investigated by the Fremont Police Department and the Drug Enforcement Administration.
Omaha Man Sentenced to 293 Months for Role in Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Gilberto Aguilar-Beltran, 46, of Omaha, Nebraska, was sentenced today for conspiring to distribute and possess with intent to distribute methamphetamine, and of possession with intent to distribute methamphetamine. A federal jury found Aguilar-Beltran guilty of both counts of the Superseding Indictment on January 27, 2023. United States District Judge Brian C. Buescher sentenced Aguilar-Beltran to imprisonment for a term of 293 months as to each count, to be served concurrently. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release. Aguilar-Beltran may later face removal (deportation) from the United States to Mexico by immigration authorities.
On May 12, 2021, Omaha Police observed Aguilar-Beltran, driving a Jeep Grand Cherokee, meet up with two people driving a black SUV at a Taco Bell on South 42nd Street. A male from the black SUV got into Aguilar-Beltran’s Jeep and they briefly drove around before returning to the Taco Bell. The male returned to the black SUV and departed at the same time as the Jeep. Omaha Police stopped the black SUV, and after completing a canine sniff of the exterior, they searched it. Officers recovered approximately one pound of meth and arrested the driver and passenger.
Following this apparent drug transaction, OPD detectives gathered additional evidence of Aguilar-Beltran’s involvement in methamphetamine distribution. Ultimately, on July 15, 2021, officers executed a search warrant at Aguilar-Beltran’s home, locating distribution quantities of methamphetamine, cash, a digital scale, and packaging materials consistent with drug trafficking.
Investigators further determined through deconfliction and cooperation with federal investigative agencies that Aguilar-Beltran’s activities in furtherance of drug trafficking extended beyond methamphetamine distribution. A cooperating witness testified at trial that Aguilar-Beltran collected thousands of dollars in proceeds from methamphetamine sales for the organization. Additional witnesses testified that Aguilar-Beltran allowed the detached garage at his residence to be used over a period of several years for the regular off-loading of dozens of pounds of methamphetamine from a “trap” car that had been driven repeatedly to Omaha from the southwest border. The methamphetamine from the trap car was intended for distribution in Nebraska.
This case was investigated by the Omaha Police Department, the Drug Enforcement Administration, Homeland Security Investigations, and the Federal Bureau of Investigation.
Omaha Man Sentenced for Sex Trafficking of a Minor by ForceRead the Press Release
United States Attorney Steven Russell announced that James Ferman Chatman, 43, of Omaha, Nebraska, was sentenced today in federal court in Omaha for sex trafficking of a minor by force. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Chatman to 324 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Chatman will serve 10 years of supervised release. Chatman was also ordered to pay $1,300 in restitution. Chatman will also be required to register as a sex offender.
Law enforcement began investigating in September 2021 after receiving information from FBI Innocence Lost that a missing 17-year-old female was actively being advertised online for commercial sex in Omaha. Investigators located and contacted the minor female who advised that she was being forced to engage in commercial sex sales by a person known to her as “James Cooper.” The minor stated that “James” kept all of the money received from sex buyers. The minor reported that she had been sexually assaulted by “James” and that “James” had been providing her with cocaine. Evidence uncovered by law enforcement showed James Ferman Chatman had created online commercial sex ads depicting the minor female in addition to ads depicting other females. After the minor was recovered, Chatman continued to post commercial sex ads in various states across the county. In November 2021, investigators learned that Chatman had returned to a hotel in Omaha. Investigators arrested Chatman at the hotel. Also staying in the hotel room was an adult female who advised that she was being sold for sex by Chatman and that Chatman used violence and threats of violence to keep her engaging in commercial sex sales.
In 2019, Chatman was convicted of Unlawful Sexual Acts with a 16–17 Year Old in Leon County, Florida. Chatman had not registered as a sex offender in Nebraska after leaving Florida.
"The FBI remains resolute in our commitment to protecting the most vulnerable members of our community and bringing child predators to justice. We value and recognize the critical work of our law enforcement partners. As with many crimes we investigate, we cannot do it without collaboration from the law enforcement community and the public," said Special Agent in Charge Eugene Kowel of the Omaha Field Office.
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 United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Ohio Man Sentenced for Stealing over 712 Bitcoin Subjected to ForfeitureRead the Press Release
WASHINGTON – An Ohio man was sentenced today to 51 months in prison for stealing over 712 bitcoin that were the proceeds of the darknet bitcoin mixer Helix and subject to forfeiture in a then-pending criminal case.
The sentence was announced by U.S. Attorney Matthew M. Graves, Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, FBI Special Agent in Charge Wayne A. Jacobs of the Washington Field Office’s Criminal and Cyber Division, and IRS Special Agent in Charge Darrell J. Waldon of the IRS Criminal Investigation (IRS-CI).
In addition to the prison term, U.S. District Court Judge Beryl A. Howell ordered 36 months of supervised release and ordered a forfeiture money judgment of $4,881,532.40, and forfeiture of specific properties including cryptocurrencies that are now valued in excess of $20 million due to the increase in market prices.
According to court documents, Gary James Harmon, 31, of Cleveland, Ohio, perpetrated a scheme to steal cryptocurrency that was the subject of pending criminal forfeiture proceedings in the case of Larry Dean Harmon, Gary Harmon’s brother. In February 2020, Larry Harmon was arrested for his operation of Helix, a darknet-based cryptocurrency money laundering service, known as a “mixer” or “tumbler.” Helix laundered over 350,000 bitcoin – valued at over $300 million at the time of the transactions – on behalf of customers, with the largest volume coming from Darknet markets. Law enforcement seized various assets, including a cryptocurrency storage device containing Larry Harmon’s illegal proceeds generated through the operation of Helix, which were subject to forfeiture in the criminal case. However, law enforcement was initially unable to recover bitcoin stored on the device due to the device’s additional security features.
Knowing that the government was seeking to recover the bitcoin stored on the seized device for forfeiture in Larry Harmon’s criminal case, Gary Harmon used his brother’s credentials to recreate the bitcoin wallets stored on the device and covertly transfer more than 712 bitcoin, valued at approximately $4.8 million at the time, to his own wallets – stealing those funds and obstructing the pending criminal forfeiture proceeding. Gary Harmon further laundered the proceeds through two online bitcoin mixer services before using the laundered bitcoins to finance large purchases and other expenditures.
Gary Harmon agreed to the forfeiture of cryptocurrencies and other properties derived from the fraudulently taken proceeds, including more than 647.41 Bitcoin (BTC), 2.14 Ethereum (ETH), and 17,404,400.64 Dogecoin (DOGE). Due to the increase in market prices, the total value of these forfeitable properties exceeds $12 million.
In August 2021, Larry Harmon pleaded guilty to money laundering conspiracy in connection with his case.
The FBI and the IRS-CI District of Columbia Cyber Crime Unit investigated the case.
Assistant U.S. Attorney Christopher B. Brown for the District of Columbia and Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), both now also members of the National Cryptocurrency Enforcement Team, prosecuted the case, with assistance from Paralegal Specialists Michon Tart, Angela De Falco, and Brian Rickers, and former Paralegal Specialist Chad Byron. Additional assistance was provided by Assistant U.S. Attorneys Segev Phillips and Daniel Riedl for the Northern District of Ohio and CCIPS Trial Attorney S. Riane Harper.
Nine Individuals Charged and Arrested on Various Firearms, Drug, and Fraud ChargesRead the Press Release
CHICAGO — Nine individuals have been charged in Chicago, including eight alleged members of the Black P Stone Nation (“BPSN”) street gang, eight Chicagoans, and one suburban resident. The nine defendants have been charged in federal court on an array of charges including possession of a weapon by a convicted felon, firearms trafficking, and trafficking, distribution, and conspiracy to distribute drugs, including fentanyl, heroin, fentanyl-laced heroin, cocaine, and crack cocaine.
- Steven Nash, also known as “Redd”, 56, is charged with firearms trafficking (counts 1 and 4), possession with intent to distribute a controlled substance, namely 40 grams or more of a mixture and substance containing a detectable amount of fentanyl (count 2), and possession with intent to distribute a controlled substance, namely 100 grams or more of a mixture and substance containing a detectable amount of heroin (count 3).
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Marcus Taylor, 38, of Hinsdale, is charged with distribution of a controlled substance, namely, 500 grams or more of a mixture and substance containing a detectable amount of cocaine.
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Josephus Turner, also known as “Jamo”, 35, is charged with distribution of a controlled substance, namely a mixture and substance containing heroin (count 1), distribution of a controlled substance, namely a mixture and substance containing cocaine base (counts 2 and 4), firearms trafficking (count 3), and conspiracy to distribute a controlled substance, namely 40 grams or more of mixtures and substances containing fentanyl (count 5).
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Calvin Bunting, also known as “White Boy”, 39, is charged with conspiracy to distribute a controlled substance, namely 40 grams or more of mixtures and substances containing fentanyl (count 5).
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Antonio Washington, also known as “Itch” and “Britney”, 45, is charged with distribution of crack cocaine.
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Fernando Ramirez, also known as “Enterprise”, 67, is charged with distribution of a controlled substance, namely, 500 grams or more of a mixture and substance containing a detectable amount of cocaine.
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Alix Aurel, 47, is charged with distribution of a controlled substance, namely, a mixture and substance containing a detectable amount of cocaine.
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Andre Howard Jr., also known as “Baby Stone”, 35, is charged with possession of a weapon as a convicted felon.
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Joshua Broughton, ”Twiggz”, 33, is charged with possession of a weapon as a convicted felon.
Defendants Turner, Bunting, Aurel, Howard, Nash, and Broughton are alleged to be members of the Rack City faction of BPSN, which controls territory in the vicinity of W. 93rd St. and S. Halsted St. on the South Side of Chicago. Washington and Taylor are alleged associates of the Rack City faction belonging to another faction of the PBSN. All men have been charged via complaint with the exception of Howard, who was been charged via indictment. During the course of the multi-year investigation, law enforcement seized approximately 62 firearms, approximately 6 kilograms of cocaine, approximately 500 grams of heroin/fentanyl, and approximately 250 grams of crack cocaine.
All nine defendants are in law enforcement custody. Arraignments will be scheduled in U.S. District Court in Chicago.
The charges are announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the Federal Bureau of Investigation; and Eric Carter, Interim Superintendent of the Chicago Police Department. Substantial assistance was provided by the Illinois State Police, the Cook County Sheriff’s Office Intelligence Unit, the Internal Revenue Service, and Rosemont Police Department. The government is represented by Assistant U.S. Attorneys Jimmy L. Arce and Patrick Mott.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The maximum terms of imprisonment for the charges range from 5 to 40 years in federal prison. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
New Orleans Woman Sentenced for Theft of More than $86,000 in Social Security FundsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that DANIELLE COLEMAN, age 39, of New Orleans, Louisiana, was sentenced on April 27, 2023 after previously pleading guilty to Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to court documents, COLEMAN’s grandmother was authorized to receive Social Security Administration (“SSA”) Title II – Retirement Survivor Insurance (RSI) benefits up until her death on September 8, 2009. An investigation by special agents with the SSA, Office of Inspector General and United States Department of Treasury, Inspector General for Tax Administration, revealed COLEMAN possessed her late grandmother’s ATM card and began withdrawing money from her account after her death. COLEMAN used her late grandmother’s ATM card to pay for her own personal expenses knowing she was not entitled to those Social Security benefits. COLEMAN failed to notify the SSA of her grandmother’s death and took approximately $86,280.00 in SSI benefits from her account. An additional $1,200.00 of COVID-19 stimulus funds were erroneously deposited into COLEMAN’s grandmother’s account, and COLEMAN also used these funds on personal expenses.
United States District Judge Carl J. Barbier sentenced COLEMAN to five (5) years of probation, restitution, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the Social Security Administration, Office of the Inspector General and the United States Department of Treasury, Inspector General for Tax Administration. The prosecution of this case is being handled by Assistant U.S. Attorneys Rachal Cassagne and Spiro Latsis.
New Orleans Man Sentenced for Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – JAMAL SMITH, age 34, a resident of New Orleans, was sentenced by U.S. District Judge Carl J. Barbier to 131 months incarceration for violations of the Federal Gun Control and Controlled Substances Acts. Judge Barbier ordered that SMITH be placed on supervised release for three (3) years following his release from imprisonment. SMITH was also ordered to pay a mandatory $100 special assessment fee for each count.
SMITH previously pled guilty pursuant to a plea agreement to Counts 1, 3, 5 and 6 of the indictment. Count 1 charged SMITH with possession with intent to distribute a quantity of marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(D), for which he received 60 months imprisonment. Counts 3 and 6 charged SMITH with being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1), for which he received 71 months imprisonment. The sentences for Counts 1, 5 and 6 are to run concurrently with each other. Count 5 charged SMITH with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A), for which he received 60 months imprisonment. The sentence for Count 5 must run consecutively to the sentences for Counts 1, 3 and 6. Therefore, SMITH was sentenced to a total of 131 months imprisonment.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of New Orleans Police Department and the Federal Bureau of Investigation. The case was prosecuted by Elizabeth Privitera, Unit Chief and Assistant United States Attorneys Inga Petrovich and David Haller, all of the Violent Crime Unit.
New Orleans Man Pleads Guilty to Multiple Federal Firearm and Drug Trafficking ChargesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that DEVONTE SMITH, age 22, of New Orleans, pled guilty to seven counts of an eight-count indictment, that charged him with multiple federal firearms and drug trafficking violations stemming from a March 30, 2022 shootout, on the corner of Orleans and Rocheblave Street that was captured on NOPD crime cameras, and the subsequent search of a Touro Street residence. Although no one was killed or injured in the shootout, several houses and automobiles sustained damage. The indictment charged SMITH as follows:
Count 1: Charge: Possession, brandishing, and discharging of a firearm in furtherance of a drug trafficking crime in violation of Title 18 USC 924(c)(1)(A); Statutory Sentence: 10 years to life. Any sentence imposed must be served consecutive to any other sentence; a fine of up to$250,000 and not more than 5 years of supervised release.
Count 2: Charge: Possession of a machinegun in furtherance of a drug trafficking crime in violation of Title 18 USC § 924(c)(1)(B)(ii); Statutory Sentence: 30 years to life. Any sentence imposed must be served consecutive to any other sentence; a fine of up to $250,000 and not more than 5 years of supervised release.
Count 3: Charge: Illegal Possession of a machinegun in violation of Title 18 USC § 922(o); Statutory Sentence: 0-10 years; a fine of up to $250,000 and not more than 3 years supervised release.
Count 4: Charge: Possession of a firearm by a felon in violation of Title 18 USC § 922(g); Statutory Sentence: 0-10 years; a fine of up to $250,000 and not more than 3 years supervised release.
Count 5: Charge: Conspiracy to distribute and to possess with the intent to distribute a quantity of a mixture or substance containing a detectible amount of marijuana, cocaine, and fentanyl, in violation of Title 21 USC §§841(a)(1) and 841(b)(1)(C) and (D); Statutory Sentence: cocaine/fentanyl: 0-20 years; not more than $1,000,000.00 in fines and at least 3 years of supervised release; Marijuana: 0-5 years; a fine of up to $250,000 and at least 2 years supervised release.
Count 6: Charge: Possession with the intent to distribute a quantity of mixture or substance containing a detectible amount of marijuana, in violation of Title 21 USC§§841(a)(1) and 841(b)(1)(D); Statutory Sentence: 0-5 years; a fine of $250,000, and at least 2 years supervised release.
Count 7: Charge: Maintaining a drug involved premises, in violation of Title 21 USC § 856; Statutory Sentence: 0-20 years; a fine of $250,000, and at 3 years of supervised release.
Count 8: Charge: Possession with the intent to distribute a quantity of mixture or substance containing a detectible amount of cocaine and fentanyl, in violation of Title 21 USC §§ 841(a)(1) and 841(b)(1)(C); Statutory Sentence: 0-20 years; a fine of $250,000, and at least 3 years of supervised release.
As to each count, SMITH faces payment of a mandatory $100 special assessment fee.
Today, SMITH pled guilty to Counts 1, 3, 4, 5, 6, 7, and 8 of the indictment and the Government agreed to dismiss Count 2.
As part of this guilty plea, the SMITH will be sentenced to not less than 20 years in prison and not more than life. He will face a fine of not more than $1,000,000.00 and be placed on supervised release for not more than five years. He will also have to pay a mandatory $700.00 special assessment fee
This matter is still under investigation by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (A.T.F.) and the New Orleans Police Department.
The prosecution is being handled by Assistant United States Attorney Maurice E. Landrieu, Jr. of the Narcotics Unit.