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Tuesday 14 March 2023
California Man Indicted for Meth TraffickingRead the Press Release
KANSAS CITY, Mo. – A Compton, California man was indicted by a federal grand jury today after law enforcement officers found more than 18 kilograms of methamphetamine in a suitcase he was smuggling through Kansas City, Mo., aboard a bus bound for Atlanta, Georgia.
Diego Ruiz-Bibian, 19, was charged with possessing methamphetamine with the intent to distribute in an indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Ruiz-Bibian on Feb. 14, 2023.
According to an affidavit filed in support of the original criminal complaint, detectives with the Kansas City, Mo., Police Department contacted Ruiz-Bibian at a local bus station on Feb. 13, 2023, when he arrived in Kansas City traveling aboard a bus from Denver, Colorado, on his way to Atlanta. Although one of the detectives had seen Ruiz-Bibian pick up a hard-sided suitcase from the luggage area of the bus, the affidavit says, he told the detectives it did not belong to him.
A detective searched the suitcase and found eight bundles in heat-sealed “Food Saver” style bags, which contained a total of 18.33 kilograms of methamphetamine.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Drug Enforcement Administration’s Missouri Western Interdiction Narcotics (MoWIN) Task Force.
Bryan County man convicted on federal drug charges for trafficking fentanylRead the Press Release
SAVANNAH, GA: A Bryan County man could face decades in federal prison for trafficking fentanyl.
Javarus McKinney, a/k/a “Jody,” 34, of Richmond Hill, Ga., was convicted after a four-day trial on charges of Conspiracy to Possess with Intent to Distribute, and to Distribute, Fentanyl; Possession with Intent to Distribute and Distribution of Fentanyl; and Possession with Intent to Distribute and Distribution of Fentanyl in or Near Schools, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. The charges carry a statutory penalty of up to 60 years in prison, followed by a substantial period of supervised release.
There is no parole in the federal system.
The jury acquitted McKinney on enhanced charges related to the death of an overdose victim.
“Fentanyl is addictive, pervasive, and deadly, and drug traffickers like McKinney help fuel this national crisis,” said U.S. Attorney Steinberg. “Now convicted, he will be held accountable.”
As described in court documents and testimony, Richmond Hill Police officers initiated an investigation Aug. 12, 2020, after a male victim was found dead in a residential pool. An autopsy indicated the man had a fatal dose of fentanyl in his system at the time of death. Additional investigation identified McKinney as a Richmond Hill-area distributor of counterfeit pills containing fentanyl, in addition to marijuana and THC products.
U.S. District Court Judge R. Stan Baker will schedule sentencing following the completion of a pre-sentence investigation by U.S. Probation Services.
“The poisonous fentanyl continues to flow into communities at the expense of too many lives,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “This trafficker must now face the consequences of his actions.”
The case was investigated by the U.S. Drug Enforcement Administration, the Chatham-Savannah Counter Narcotics Team, and the Richmond Hill Police Department, and prosecuted for the United States by Assistant U.S. Attorneys Darron J. Hubbard and Frank M. Pennington II.
British Nationals Sentenced for Interference with Flight Crew, Assault during Flight Diverted to BGRRead the Press Release
BANGOR, Maine: Two men from Manchester, England were sentenced in U.S. District Court in Bangor today to interference with a flight crew and assault. The charges stem from an incident on a January 2, 2023 TUI Airways flight that diverted to Bangor International Airport (BGR).
U.S. District Judge Lance E. Walker sentenced Anthony Joseph James Kirby, 36, and Damien Jake Murphy, 36, to time served. They had been in custody since their arrest on January 2. They were also ordered to pay $26,589.12 in restitution. They pleaded guilty on February 2.
According to court records, Kirby and Murphy were passengers aboard a TUI Airways flight traveling from Cancun, Mexico to Manchester, England. While the flight was in U.S. airspace, the FAA received a report that two passengers had repeatedly interfered with members of the flight crew and flight attendants. After repeated warnings from the captain, the flight diverted to BGR with agents and officers from the FBI, Federal Air Marshal Service, U.S. Customs and Border Protection, and Bangor Police Department responding.
The investigation revealed that Kirby and Murphy had become upset after being told they would not be served any more alcohol. The pair then retrieved a large bottle of alcohol from their carry-on luggage and continued to drink, becoming increasingly intoxicated. Despite repeated warnings, the two men continued to be belligerent, including using racial slurs. At one point Murphy assaulted a flight attendant, and Kirby assaulted a passenger. TUI Airways LTD incurred $26,589 in costs and expenses due to the unscheduled landing at BGR.
The FBI, Federal Air Marshal Service, U.S. Customs and Border Protection, and the Bangor Police Department investigated the case.
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Edited 03/15/23 to correct Bangor International Airport IATA code to BGR
Box Elder man sentenced to 14 years in prison for sexually abusing childRead the Press Release
GREAT FALLS — A Box Elder man who admitted to sexually abusing a child for approximately four years on the Rocky Boy’s Indian Reservation was sentenced today to 14 years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Isaiah Morsette, 32, pleaded guilty to abusive sexual contact in September 2022.
Chief U.S. District Judge Brian M. Morris presided.
In court documents, the government alleged that in June 2022, Morsette informed law enforcement that he had been having sexual contact with a child beginning in about 2016 or 2017. At the time the victim was under the age of 12 years. The victim confirmed the sexual abuse and alleged that Morsette had threatened to kill him on multiple occasions when he attempted to defend himself.
Assistant U.S. Attorneys Amanda L. Myers and Timothy J. Racicot prosecuted the case, which was investigated by the FBI and Chippewa Cree Law Enforcement.
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Bangor Woman Faces up to 20 Years for Role in Penobscot and Aroostook County Drug TraffickingRead the Press Release
BANGOR, Maine: A Bangor woman pleaded guilty in U.S. District Court in Bangor today to conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl.
According to court records, between January 2018 and December 2021, Carol Gordon, 52, along with others, trafficked methamphetamine and fentanyl in Penobscot and Aroostook counties. Her participation in the conspiracy involved allowing other members of the conspiracy to deal drugs from her residence and serving as a go-between for many of the transactions.
Gordon faces up to 20 years imprisonment. She will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Drug Enforcement Administration, Maine Drug Enforcement Agency, and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistance was provided by the Orono, Bangor, Brewer, Caribou, Presque Isle, and Houlton police departments. U.S. Attorney Darcie N. McElwee also recognized the cooperation and coordination provided by the Maine State Attorney General’s Office and the Aroostook County District Attorney’s Office.
Organized Crime Drug Enforcement Task Forces: This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Augusta Man Sentenced to 16 Months for Assaulting Federal Officer at Muskie Federal BuildingRead the Press Release
BANGOR, Maine: An Augusta man was sentenced in U.S. District Court in Bangor today for assaulting a federal officer at the Edmund S. Muskie Federal Building in Augusta in April 2022.
U.S. District Judge Lance E. Walker sentenced Derik Broox Wight, 41, to 16 months in prison and three years of supervised release. Wight pleaded guilty on September 27, 2022.
According to court records, on April 20, 2022, Wight entered the Muskie Federal Building and approached the security screening station, which was staffed by personnel contracted by the U.S. Department of Homeland Security, Federal Protective Service (FPS). Wight pressed a security officer against a wall and put a knife to the area of his throat. A second security officer drew his service weapon and ordered Wight to drop the knife. When Wight refused to comply, the officer fired a single shot, striking him. Wight was transported to an area hospital where he was subsequently charged.
“Everyone who enters a federal building in Maine should know that the Federal Protective Service and their partners are on scene to protect visitors and tenants. It can be a difficult and dangerous job, and I commend the quick actions of the FPS officers and thank them for preventing any innocent bystanders from being injured,” U.S. Attorney Darcie N. McElwee said.
“When this senseless attack took place, FPS-contracted Protective Security Officers acted professionally and swiftly to stop the attack and ensure the safety of all involved,” said Joseph Carriuolo, Acting Regional Director, Region 1, Federal Protective Service. “We’re grateful for their bravery, as well as the close collaboration with our federal, state, and local partners to protect those who work at and visit federal facilities in Maine and who maintain overall public safety.”
“As law enforcement officers, we all take an oath to protect the public from harm. When Derik Wight assaulted a protective security officer with a knife, another brave officer took immediate action to prevent others from being harmed. We are incredibly thankful for these officers’ courageous actions that day,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today’s sentence ensures that Mr. Wight is held accountable for his criminal conduct and also reinforces the fact that assaults on law enforcement officers undermine the rule of law and will not be tolerated.”
The FBI, FPS and Augusta Police Department investigated the case.
Arizona Licensed Insurance Agent Charged with Scheme to Defraud Elderly ClientsRead the Press Release
TUCSON, Ariz. –On March 2, 2023, a federal grand jury returned a six-count indictment against Victoria Totten, 71, of Green Valley, Arizona, for Mail Fraud.
The indictment alleges that Totten, while working as a licensed insurance agent, defrauded various elderly clients out of approximately $114,000. It asserts that Totten fraudulently represented and advised prospective clients to pay insurance premiums in advance and directly to her company instead of making payments to the insurance companies. Totten falsely represented the actual terms of the premium payment structure offered by the insurance companies, and claimed that payment should be made in advance to lock in a lower rate. After receiving the fraudulently obtained funds, instead of transmitting the victims’ premium payments directly to the insurance companies, Totten misused large portions of the victims’ funds for her own personal use and to pay insurance premiums for her other clients.
A conviction for Mail Fraud carries a maximum penalty of 20 years in prison, a $250,000 fine, or both. If convicted, a restitution judgment will be imposed against the defendant for any losses sustained by the victims.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Financial Crimes Auditor for the United States Attorney’s Office and the United States Secret Service conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR-23-00282-TUC-JGZ-LCK
RELEASE NUMBER: 2023-033_Totten# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Anchorage Man Charged with Approximately $25 Million Dollar Wire Fraud Scheme Involving over 130 VictimsRead the Press Release
ANCHORAGE, ALASKA – An information was filed yesterday charging Garrett Elder, owner of Tycoon Trading LLC, The Daily Bread Fund LLC, and other entities with executing an investment scheme that resulted in approximately $25 million in losses to over 130 victims.
According to the information, from about 2016 through October 2022, defendant Garrett Elder executed a scheme to raise between $30 and $34 million in investments from approximately 130 victims. The scheme began about early 2016 when defendant’s parents provided to defendant between $10,000 and $20,000 to invest in stocks and foreign currencies. Defendant deposited those funds into an entity he had created called Tycoon Trading, LLC (“Tycoon Trading”). Defendant lost all of those funds.
Despite the losses, defendant told his family and friends about his trading business, and some expressed an interest in investing. Defendant did not tell the potential investors that he had lost the money provided by his parents. Instead, defendant gave these victims the false impression that he was a successful trader.
Based on these omissions and false impressions, between 2016 and March 2018, investors transferred approximately $500,000 to Tycoon Trading for defendant to invest. Defendant again began losing money, but created false quarterly performance reports for his victim investors stating that the investments were earning positive returns. By March 2018, defendant had lost almost all the victims’ money while trading and only had approximately $10,000 to $15,000 left in his trading account. In March 2018, defendant disclosed to the victims that their investments had failed, but he did not disclose that he falsified the quarterly performance reports he had sent them.
Meanwhile, notwithstanding the near total losses, defendant continued to seek new investors, claiming to be a successful trader. By the end of 2018, defendant had approximately 30 new investors who were investing substantially more money than the original group of investors.
In 2019, defendant created an entity called The Daily Bread Fund, LLC.
From 2019 through 2022, defendant continued to solicit new investors through Tycoon Trading and the Daily Bread Fund by claiming to be a successful trader and paying a limited amount of distributions to select investors to provide the appearance of investment successes.
Defendant successfully solicited significant new investments; however, in reality, defendant continued to steadily lose money. Despite continued mounting losses, defendant again created and emailed to investors false reports indicating positive returns. Defendant also used some of the victims’ money on personal expenditures, including real estate investments, vehicles, a boat, a camper, bicycles, tools, and jewelry.
In total, the amount of funds transferred to defendant via Tycoon Trading, The Daily Bread Fund, and related entities is presently estimated to be approximately $30 million to $34 million from 138 victim investors.
By October 2022, although some money was distributed back to certain investors, defendant had lost the majority of investments while trading, resulting in approximately $25 million in losses to victims.
Garrett Elder agreed to the government filing an information charging him with wire fraud in violation of 18 U.S.C. § 1343. He faces a maximum penalty of 20 years in prison and a $250,000 fine. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The you believe you are a victim of Garrett Elder’s investment scheme, please contact the FBI at: (907) 276-4441.
The Federal Bureau of Investigation is investigating the case.
Assistant U.S. Attorneys Michael J. Heyman and Seth Beausang of the Alaska United States Attorney’s Office are prosecuting the case.
An information is merely an allegation and defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Alabama Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Bellamy, Alabama man pleaded guilty to possession of a firearm by a convicted felon, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Willie Roger Starks, Jr., 30, was found in possession of a firearm by a Lauderdale County Sheriff’s Deputy on October 27, 2019, during a traffic stop. Starks had a .40 caliber pistol in his car. Starks has a prior felony conviction for Burglary of a Dwelling and was under the supervision of the Mississippi Department of Corrections at the time. As a convicted felon it is contrary to federal law for Starks to possess any firearm.
Starks pleaded guilty to a violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) which criminalize the possession of firearms by convicted felons. He is scheduled to be sentenced on June 15, 2023 and faces a maximum penalty of 10 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Lauderdale County Sheriff’s Office and the ATF are investigating the case.
Assistant U.S. Attorneys Adam T. Stuart and Charles W. Kirkham are prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
2 Cincinnati-area men plead guilty to illegally flying drones over professional sporting eventsRead the Press Release
CINCINNATI – Two Cincinnati-area men have pleaded guilty to illegally flying drones over professional sporting events in Cincinnati.
“It is not worth risking federal criminal charges to illegally fly a drone over events like Reds and Bengals games. Even if there is no intent to harm, this conduct poses a direct risk to the players and the individuals in the stands,” said U.S. Attorney Kenneth L. Parker. “As we kickoff FC Cincinnati and Reds seasons this month, and look to summer concert season, we ask the public to refrain from using drones illegally over events.”
“Flying a drone over a stadium full of fans is dangerous and illegal without the proper FAA training, licensing, and approved flight plan," stated FBI Cincinnati Special Agent in Charge J. William Rivers. “We will continue to work with the FAA and local police to investigate these incidents when proper FAA protocols and procedures are not followed.”
It is illegal to fly drones over stadiums that are designated as a Temporary Flight Restriction zone during sporting events. The two defendants were indicted by a federal grand jury in September 2022 for separate incidents involving Cincinnati Bengals and Cincinnati Reds events.
NFL
The Cincinnati Bengals hosted an NFL playoff game at Paul Brown Stadium on Jan. 15, 2022. During the game, Dailon Dabney, 24, of Cincinnati, illegally flew his drone into the stadium and hovered over the players and portions of the stadium crowd. Dabney recorded his drone flight and posted the video to social media sites and YouTube.
Dabney pleaded guilty today before U.S. District Judge Matthew W. McFarland.
MLB
April 12, 2022, was Opening Day for the Cincinnati Reds’ 2022 season and featured the first game of the season at Great American Ballpark. Travis Lenhoff, 38, of Northern Kentucky, flew a drone into the restricted flight area of Great American Ballpark during the Opening Day festivities.
Lenhoff pleaded guilty today before Senior U.S. District Judge Susan J. Dlott.
Both defendants pleaded guilty to one count of violating a Temporary Flight Restriction, a misdemeanor crime punishable by up to one year in prison, one year of supervised release and a $100,000 fine.
Any drone that weighs more than .55 pounds and less than 55 pounds must be registered with the Federal Aviation Administration (FAA). Dabney’s and Lenhoff’s drones were not registered with the FAA, and they do not have a remote pilot certification.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; the Federal Aviation Administration (FAA); Cincinnati Police Chief Teresa A. Theetge and Hamilton County Sheriff Charmaine McGuffey announced the guilty pleas entered today. Assistant United States Attorney Timothy S. Mangan is representing the United States in this case.
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Monday 13 March 2023
Wilkesboro Woman Sentenced to Prison for Conspiracy Drug Trafficking after Multi-State OperationRead the Press Release
GREENSBORO – A North Carolina woman was sentenced today to 15 years in prison, after pleading guilty to a one-count indictment which charged her and six codefendants with conspiracy to possess with intent to distribute quantities of methamphetamine. The case was part of a multi-state organized crime investigation, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
WHITNEY LEIGH ESTEP, age 32, of Wilkesboro, North Carolina, was sentenced to a 180-month term of imprisonment by the Honorable William L. Osteen, Jr., United States District Judge in the United States District Court for the Middle District of North Carolina. In addition to prison time, ESTEP was ordered to serve three years of supervised release. She pleaded guilty on August 26, 2022, to conspiracy to possess with intent to distribute methamphetamine, a violation of Title 21, United States Code, Section 846 and 841(b)(1)(C).
According to court records, ESTEP and six additional defendants were indicted in June 2022 after an investigation involving multiple law enforcement agencies revealed a multi-state organized crime conspiracy. Beginning in 2020, law enforcement agencies from several states began investigating a drug trafficking organization rooted in Mexico. During the investigation, it was revealed that ESTEP was sent by a member of the organization to obtain cocaine and deliver it to other individuals in the organization. In March of 2022, task force officers visited ESTEP’s home which was the location of multiple methamphetamine deals prosecuted in another case. ESTEP admitted to officers that she had been working with others for a year and a half, transporting money and providing marijuana in return. The money picked up and delivered by ESTEP was then sent to the Sinaloa drug cartel in Mexico, and ESTEP admitted to investigators that she knew the money was involved in the trafficking of drugs. ESTEP believed she had transferred tens of thousands of dollars, and investigators later confirmed that ESEP had wired funds to Mexico.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, Homeland Security Investigations, the North Carolina State Highway Patrol, and multiple sheriff’s offices and police departments across North Carolina. The case was prosecuted by Assistant United States Attorney Jake D. Pryor.
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United States Settles Claims of Genetics Testing FraudRead the Press Release
WILMINGTON, Del. – U.S. Attorney David C. Weiss announced today that Dr. Kathy Cornelius, a Delaware physician who now resides in Huntsville, Alabama, has agreed to pay $500,000 to resolve allegations that she violated the False Claims Act by ordering medically unnecessary genetic testing for Medicare beneficiaries residing in Delaware.
Between October 2020 and February 2022, Dr. Cornelius referred more than 250 Delaware residents for medically unnecessary genetic tests that were paid for by Medicare. The United States alleges that Dr. Cornelius had no medical relationship with these patients and that the referrals were based on brief telemedicine consultations – often two minutes or less in duration – during which Dr. Cornelius failed to establish any legitimate medical justification for the tests. The genetic tests Dr. Cornelius ordered often cost thousands of dollars per patient.
“Doctors who refer patients for medically unnecessary services such as genetic testing drain vital funds from Medicare and other government healthcare programs,” said U.S. Attorney Weiss. “This office will continue to use all available means to identify healthcare providers who increase costs through unnecessary procedures and to hold them accountable.”
“Accurately billing for services provided to Medicare beneficiaries is required of all health care providers,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General, Region III. “HHS-OIG and the U.S. Attorney’s Office will continue to evaluate and pursue allegations of medically unnecessary services”.
This matter was handled by Assistant U.S. Attorney Dylan J. Steinberg and Affirmative Civil Enforcement Auditor David Cheung.
The government’s pursuit of this matter illustrates its emphasis on combating health care 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware.
United States Files Complaint Alleging that Rite Aid Dispensed Controlled Substances in Violation of the False Claims Act and the Controlled Substances ActRead the Press Release
The Justice Department announced today that the United States has filed a complaint in intervention in a whistleblower lawsuit brought under the False Claims Act (FCA) against Rite Aid Corporation and various subsidiaries (collectively Rite Aid) alleging that Rite Aid knowingly filled unlawful prescriptions for controlled substances. In addition to alleging claims under the FCA, the government’s complaint also alleges violations of the Controlled Substances Act (CSA). Rite Aid is one of the country’s largest pharmacy chains, with over 2,200 pharmacies in 17 states.
“The Justice Department is using every tool at our disposal to confront the opioid epidemic that is killing Americans and shattering communities across the country,” said Attorney General Merrick B. Garland. “That includes holding corporations, like Rite Aid, accountable for knowingly filling unlawful prescriptions for controlled substances.”
“We allege that Rite Aid filled hundreds of thousands of prescriptions that did not meet legal requirements,” said Associate Attorney General Vanita Gupta. “According to our complaint, Rite Aid’s pharmacists repeatedly filled prescriptions for controlled substances with obvious red flags, and Rite Aid intentionally deleted internal notes about suspicious prescribers. These practices opened the floodgates for millions of opioid pills and other controlled substances to flow illegally out of Rite Aid’s stores.”
“The opioid crisis has exacted a heavy toll on communities across the United States,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s complaint is an important reminder that the Justice Department will hold accountable any individuals or entities, including pharmacies, that fueled this terrible crisis.”
“Pharmacies, physicians, corporations, and other health care entities that have contributed to the proliferation of opioids in our communities and the tragic loss of life from overdose deaths must answer for their role in the crisis we now face,” said First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio. “This complaint is a continuation of the Justice Department’s commitment to hold accountable those entities that aggravated and profited from the opioid crisis.”
The government’s complaint alleges that, from May 2014 through June 2019, Rite Aid knowingly filled at least hundreds of thousands of unlawful prescriptions for controlled substances that lacked a legitimate medical purpose, were not for a medically accepted indication, or were not issued in the usual course of professional practice. These unlawful prescriptions included, for example, prescriptions for the dangerous and highly abused combination of drugs known as “the trinity,” prescriptions for excessive quantities of opioids, such as oxycodone and fentanyl, and prescriptions issued by prescribers whom Rite Aid pharmacists had repeatedly identified internally as writing illegitimate prescriptions. The government alleges that Rite Aid pharmacists filled these prescriptions despite clear “red flags” that were highly indicative that the prescriptions were unlawful. The government further alleges that Rite Aid not only ignored substantial evidence from multiple sources that its stores were dispensing unlawful prescriptions, including from certain pharmacists, its distributor, and its own internal data, but compounded its failure to act by intentionally deleting internal notes about suspicious prescribers written by Rite Aid pharmacists and directing district managers to tell pharmacists “to be mindful of everything that is put in writing.” By knowingly filling unlawful prescriptions for controlled substances, the government alleges that Rite Aid violated the CSA and, where Rite Aid sought reimbursement from federal healthcare programs, also violated the FCA.
Along with Rite Aid Corporation, the government’s complaint names as defendants the following Rite Aid subsidiaries: Rite Aid Hdqtrs, Corp.; Rite Aid of Connecticut, Inc.; Rite Aid of Delaware, Inc.; Rite Aid of Maryland; Rite Aid of Michigan; Rite Aid of New Hampshire; Rite Aid of New Jersey; Rite Aid of Ohio; Rite Aid of Pennsylvania; and Rite Aid of Virginia.
“The action supported today by the Drug Enforcement Administration (DEA) should serve as a warning to those in the pharmacy industry who choose to put profit over customer safety,” said Special Agent in Charge Orville O. Greene of the DEA.
“Pharmacies are required to ensure prescription drugs are only dispensed based on valid prescriptions,” said Special Agent in Charge Maureen Dixon of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG). “Prescriptions which are not medically necessary, and not for a medically accepted indication, will not be paid for by Medicare and Medicaid. HHS-OIG will continue to work with our law enforcement partners and the Department of Justice’s Civil Division to recover improperly paid funds through the FCA.”
Whistleblowers Andrew White, Mark Rosenberg, and Ann Wegelin, who all previously worked for Rite Aid at various pharmacies, filed an action in October 2019 under the qui tam provisions of the FCA. Those provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over the lawsuit, as it has done here in part. Those who violate the Act are subject to treble damages and applicable penalties. The case is captioned United States ex rel. White et al. v. Rite Aid Corp., et al., No. 1:21-cv-1239 (N.D. Ohio).
The United States’ intervention in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Northern District of Ohio. The DEA Cleveland Field Division, FBI Cleveland Field Office, and HHS-OIG provided substantial assistance in the investigation.
The United States is represented in this matter by Senior Trial Counsel Christopher Wilson of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Patricia Fitzgerald and Elizabeth Berry for the Northern District of Ohio.
The Justice Department is committed to holding responsible those who have fueled the opioid crisis by violating the law. Last week, the Associate Attorney General announced the creation of the Opioid Epidemic Civil Litigation Task Force, which formalizes and enhances coordination of the Department’s existing work and will consider new initiatives. Because of the scope and duration of the crisis, the Task Force includes U.S. Attorneys’ Offices, the Civil Division’s Consumer Protection Branch and Commercial Litigation Branch (Fraud Section), the Drug Enforcement Administration, and other Department components. The Task Force will steer the Department’s civil litigation efforts involving actors alleged to have contributed to the opioid epidemic, including by diverting prescription opioids.
The claims asserted against defendants are allegations only and there has been no determination of liability.
USAO-KS Warns Public About Spoofing ScamsRead the Press Release
KANSAS CITY, KAN. – The U.S. Attorney’s Office – District of Kansas is warning the public about phone scams in which callers spoof or fraudulently display themselves as having numbers belonging to government agencies in attempt to defraud victims of money.
Anyone who receives a call from someone claiming to be from a government or law enforcement agency while demanding payment is encouraged to immediately hang up. Scammers will do everything they can to keep you from ending the call. Since spoofed phone numbers belong to a legitimate agency, please take the next step by directly calling the agency in question.
A legitimate caller will encourage you to take the time to verify the information.
“If the first time you hear about supposedly owing the government money that must be paid immediately is through a phone call, it’s more than likely a scam. That’s not how the government does business, so please take the time to find out if the number in your Caller ID actually belongs to the person with whom you are speaking,” said Duston Slinkard, First Assistant.
If you are a victim of a phone or an online scam, immediately contact the bank you used to try to recall the wire transfer. Then file an online complaint with the FBI’s Internet Crime Complaint Center (www.IC3.gov).
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U.S. Customs and Border Protection Officer Indicted for Using Excessive Force and Obstruction of JusticeRead the Press Release
A federal grand jury in the Western District of Texas returned a three-count indictment that was unsealed today, charging a U.S. Customs and Border Protection officer with deprivation of rights under color of law and the falsification of a document in a federal investigation.
According to the indictment, Miguel Delgado Jr. used excessive force in two separate incidents that occurred on or about June 15, 2020, and Oct. 20, 2019, while he was on duty at the Bridge of Americas Port of Entry in El Paso, Texas. As alleged in the indictment, both victims suffered bodily injury as a result of Delgado’s unlawful use of force. The indictment also charges Delgado with including false statements in a report about one of the incidents.
If convicted, Delgado faces a maximum sentence of 10 years in prison for each of the use of force incidents and a maximum of 20 years in prison for submitting a false report about one of the incidents.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney for the Western District of Texas Jaime Esparza, Special Agent in Charge Jaime Ordonez of the Department of Homeland Security Office of Inspector General and Special Agent in Charge Gilberto Carreon Jr. of the U.S. Customs and Border Protection’s Office of Professional Responsibility made the announcement.
Assistant U.S. Attorneys Patricia Aguayo for the Western District of Texas and Trial Attorney Olimpia Michel of the Civil Rights Division’s Criminal Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney’s Office Co-hosts Protecting Places of Worship ForumRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that the United States Attorney’s Office is co-hosting a forum on Protecting Places of Worship on March 14, 2023, at the Gateway Center at the Gibson Health Hub from 6 until 9 pm.
The forum will provide faith-based leaders and other community members with strategies to protect places of worship from hate crimes and other threats of violence. Topics will include an overview of religious hate crimes and laws, tools and resources from federal and local law enforcement to assess the safety of places of worship, an overview of active shooter training and situations, and best practices for the prevention of and response to hate crimes against places of worship.
“Terror and fear and hatred blossom in the dark,” said U.S. Attorney Uballez, “because in the dark, we think that we are alone. Only by shining the light do we see that we are never alone but are instead standing side-by-side facing the darkness. I’m proud to help shine the light of love on New Mexico.”
The event will be facilitated by the Community Relations Service of the Department of Justice and co-hosted by the City of Albuquerque’s Office of Equity and Inclusion. DOJ’s Community Relations Service was born in the Civil Rights era and is “America’s Peacemaker,” dedicated to facilitating, mediating, training, and consulting with communities to prevent and resolve conflict arising from actual or perceived race, color, national origin, gender, gender identity, sexual orientation, religion, or disability. The City of Albuquerque’s Office of Equity and Inclusion has led the effort to bring together the Department of Justice, law enforcement agencies and community for this ground-breaking forum.
The Protecting Places of Worship forum is part of United Against Hate, a nationwide Department of Justice initiative to combat unlawful acts of hate by building trust and community. The District of New Mexico was selected to participate in the second cohort of USAO’s to rollout the United Against Hate initiative.
Speakers for the event will include representatives from the U.S. Attorney’s Office, the New Mexico Office of the Attorney General, the Federal Bureau of Investigation, the US Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, the Albuquerque Police Department, and local Interfaith leaders.
The forum will be held at the Gateway Center at the Gibson Health Hub located on 5400 Gibson Boulevard Southeast, Room #1, Albuquerque, New Mexico 87108. Registration is open until March 14, 2023 at 12 noon and can be accessed through Eventbrite: https://www.eventbrite.com/e/protecting-places-of-worship-forum-tickets-532056143247. Food will be provided, and interpreters will be present.
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U.S. Attorney Karam Continues to Promote the United Against Hate InitiativeRead the Press Release
SCRANTON - United States Attorney Gerard M. Karam announced that the U.S. Attorney’s Office continues to promote the Department of Justice’s new initiative to better counter hate crimes and hate incidents in the Middle District of Pennsylvania.
As part of the initiative, U.S Attorney Karam hosted a meeting with Scranton High School students, the Mayor of Scranton, law enforcement agencies, and community leaders from across Northeastern Pennsylvania. This meeting was designed to educate students and community leaders on identifying, reporting, and preventing hate crimes.
At this event, subject matter experts from the United States Attorney’s Office, the Pennsylvania Attorney General’s Office; the Federal Bureau of Investigations, the Pennsylvania State Police, City of Scranton, the Lackawanna and Luzerne County District Attorney’s Offices, and other local law enforcement identified federal and state criminal hate crime statutes. The audience was made up of Scranton High School students, groups of community leaders, civil rights advocates and organizations, and religious leaders of various faiths. Presenters highlighted differences between hate crimes versus hate incidents and provided options for responding to hate incidents when situations do not constitute a federal or state crime. Presenters also distinguished unlawful conduct from protected First Amendment activity, including identifying protected speech versus speech that advocates violence or encourages people to commit hate crimes.
The Middle District of Pennsylvania was one of the first of 16 U.S. Attorney Offices to launch the United Against Hate program. U.S. Attorney Karam previously hosted a meeting on November 17, 2023, in the Harrisburg area with an audience of various law enforcement agencies and community leaders from across the mid-state. The United Against Hate initiative seeks to strengthen collaborative relationships of federal, state, and local law enforcement agencies with communities in order to build trust and encourage the reporting of hate crimes and hate incidents.
“Building upon our partnership with our community leaders and our state and local law enforcement, we are reaching out to school leaders and our future leaders, the youth of this District, to play an important role in identifying, reporting, and preventing crimes of hate, ” said U.S. Attorney Karam. “The number of hate crimes and incidents continue to rise, including in schools, and we want to take every opportunity to educate, listen, and collaborate to combat these acts that violate the fundamental principal of democracy. We will hold all those accountable who commit crimes because of someone’s skin color, the faith they practice, who they love, or because they have a disability.”
As part of its United Against Hate programming, the U.S. Attorney’s Office will continue to partner with communities across the Middle District of Pennsylvania to expand connections with those communities, further hate crimes prevention efforts, and encourage more people to report hate crimes and hate incidents.
Those who believe they are subject to hate crimes or incidents should contact local law enforcement and the FBI. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/. Anyone in the Middle District of Pennsylvania may also report civil rights violations to the Civil Rights coordinator of the U.S. Attorney’s Office for the Middle District of Pennsylvania by calling 717-614-4911 or emailing [email protected].
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U.S. Attorney Announces Federal Charges Against 10 Additional Defendants in $250 Million Feeding Our Future Fraud SchemeRead the Press Release
MINNEAPOLIS – The U.S. Attorney’s Office for the District of Minnesota today announced federal criminal charges against 10 additional defendants for their alleged roles in the fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic.
The 10 defendants are charged across four separate indictments and two criminal informations with charges of conspiracy, wire fraud, money laundering, and bribery.
As outlined in the charging documents, the defendants participated in a massive scheme to defraud the Federal Child Nutrition Program by obtaining, misappropriating, and laundering millions of dollars in program funds that were intended as reimbursements for the cost of serving meals to children. The defendants exploited changes in the program intended to ensure underserved children received adequate nutrition during the COVID-19 pandemic. Rather than feed children, the defendants enriched themselves by fraudulently misappropriating millions of dollars in Federal Child Nutrition Program funds.
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The following defendants are named in the four indictments:
- Kawsar Jama, 41, of Eagan, was the principal of Gedo Community Services and Ahlan Childcare Center, Inc., both of which Jama enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. As alleged, between September 2020 through February 2022, Jama falsely claimed to have served approximately 1.46 million meals to needy children at sites in Pelican Rapids, Burnsville, and Minneapolis. In total, Jama submitted $3.7 million in fraudulent claims for Federal Child Nutrition Program funds, some of which she spent on living expenses, real estate, and vehicles, including a Tesla Model X and an Infiniti QX56 SUV. Jama is charged with five counts of wire fraud and four counts of money laundering. 22-CR-226 (NEB/TNL)
- Abdikadir Kadiye, 51, of Minneapolis, was the president of Hobyo Health Care Foundation, which he enrolled in the Federal Child Nutrition Program under the sponsorship of Sponsor A. As alleged, throughout 2021, Kadiye falsely claimed to have served at least 445,000 meals to needy children at his sites in Minnetonka, Eden Prairie, and Minneapolis. In total, Kadiye submitted more than $1.1 million in fraudulent claims for Federal Child Nutrition Program funds, some of which he spent on vehicles (including a $105,000 2022 BMW sport utility vehicle), airline tickets, real estate, and $20,000 towards the purchase of a laundromat. Kadiye is charged with conspiracy to commit money laundering and three counts of wire fraud. 22-CR-226 (NEB/TNL)
- Abdulkadir Awale, 50, of Bloomington, was the principal of Karmel Coffee, LLC and Sambusa King, Inc., and the CEO of Nawal Restaurant. All three of Awale’s businesses were enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. As alleged, between April 2020 through January 2022, Awale falsely claimed that through his businesses he provided food for more than 3.6 million meals to various sites in Minnesota, totaling approximately $11.8 million in fraudulent Federal Child Nutrition Program funds. As part of the scheme, Awale also paid at least $83,000 in kickbacks to a Feeding Our Future employee. Awale used some of funds to make mortgage payments, cash withdrawals, and purchase vehicles, including a Freightliner Cascadia truck. Awale is charged with conspiracy to commit money laundering, five counts of money laundering, three counts of wire fraud, and four counts of federal programs bribery. 22-CR-226 (NEB/TNL)
- Khadra Abdi, 41, of Minneapolis, was the principal of Shafi’I Tutoring & Homework Help Center, which she enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. As alleged, between April 2020 through December 2021, Abdi falsely claimed to serve 1.1 million meals to needy children at her site in Hopkins. In total, Abdi submitted more than $3.4 million in fraudulent claims for Federal Child Nutrition Program funds. As part of the scheme, Abdi also paid at least $17,000 in kickbacks to a Feeding Our Future employee. Abdi used some of funds to make credit card payments, cash withdrawals, and purchase clothing. Abdi is charged with two counts of wire fraud and three counts of federal programs bribery. 22-CR-226 (NEB/TNL)
- Ayan Farah Abukar, 41, of Savage, was the founder and executive director of Action for East African People, a non-profit which she enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. As alleged, between October 2020 through 2022, Abukar falsely claimed to be serving as many as 5,000 children a day at her various sites in Bloomington, Minneapolis, Savage, and St. Paul. In total, Abukar fraudulently received approximately $5.7 million in fraudulent Federal Child Nutrition Program funds. As part of the scheme, Abukar also paid more than $330,000 in kickbacks to a Feeding Our Future employee. Abukar spent millions on real estate, including a 37-acre commercial property in Lakeville and spent hundreds of thousands of dollars towards the purchase of an aircraft to be delivered to Nairobi, Kenya. Abukar is charged with conspiracy to commit wire fraud, conspiracy to commit federal programs bribery, three counts of federal programs bribery, and three counts of money laundering. 23-CR-80
- Sade Osman Hashi, 45, of Minneapolis, was the principal of Great Lakes Inc. and Safari Express, entities which he enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. As alleged, between September 2020 through 2022, Hashi falsely claimed to be serving as many as 2,500 meals each day to needy children at his site in the Midtown Global Market in Minneapolis. In total, Hashi fraudulently received approximately $5.7 million in fraudulent Federal Child Nutrition Program funds. As part of the scheme, Hashi also paid more than $150,000 in kickbacks to a Feeding Our Future employee. Hashi used some of the funds to make cash withdrawals and converted approximately $133,000 to cryptocurrency. Hashi is charged with four counts of wire fraud, conspiracy to commit federal programs bribery, three counts of federal programs bribery, and one count of money laundering. 23-CR-81
- Sharon Denise Ross, 52, of Big Lake, was the executive director of House of Refuge Twin Cities, a non-profit which she enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. As alleged, between October 2021 and January 2022, Ross falsely claimed to be serving thousands of children each day at her House of Refuge sites. In total, Ross fraudulently received approximately $2.8 million in fraudulent Federal Child Nutrition Program funds, some of which she spent on real estate, vehicles, and payments to family members. Ross is charged with ten counts of wire fraud and two counts of money laundering. 23-CR-82
Criminal informations:
- Mohamed Ali Hussein, 53, and Lul Bashir Ali, 57, both of Faribault, enrolled their entities Somali American Faribault Education (SAFE) and Lido Restaurant in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. As alleged, Hussein falsely claimed that the SAFE site in Faribault was serving as many as 2,500 children a day, seven days a week. Lul Ali falsely claimed that the Lido Restaurant site in Faribault was serving as many as 1,600 children a day, seven days a week. In total, Hussein and Lul Ali received more than $5 million in fraudulent Federal Child Nutrition Program funds. As part of the scheme, Hussein also paid more than $100,000 in kickbacks to a Feeding Our Future employee. Hussein and Lul Ali are charged with conspiracy to commit wire fraud. 23-CR-91
- Mulata Yusuf Ali, 38, of Minneapolis, is charged with theft of government funds involving the Federal Child Nutrition Program from December 2020 through January 2022. 23-CR-92
United States Attorney Andrew Luger thanks the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service for their collaboration and skilled investigative work in bringing these indictments.
Assistant U.S. Attorneys for the District of Minnesota Matthew S. Ebert, Harry M. Jacobs, Chelsea A. Walcker, and Joseph H. Thompson are prosecuting the cases. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Alison J. Ramsdell Joins DOJ Delegation to Alabama to Commemorate “Bloody Sunday” and Passage of Voting Rights Act of 1965Read the Press Release
SIOUX FALLS - Earlier this week, Alison J. Ramsdell, U.S. Attorney for the District of South Dakota, joined more than two dozen other U.S. Attorneys from across the country as a delegation to commemorate the 58th Anniversary of “Bloody Sunday,” the March over Selma’s Edmund Pettus Bridge and the passage of the Voting Rights Act of 1965. Ramsdell has served as a member of the Attorney General Advisory Committee’s (AGAC) Civil Rights Subcommittee since her appointment in April 2022.
“It was an honor to join colleagues from across the United States to commemorate a turning point in the civil rights movement that gave rise to the passage of the Voting Rights Act of 1965,” said U.S. Attorney Ramsdell. “The Department of Justice was founded to ensure the protection of civil rights, including the right to vote, and that objective remains one of our sacred missions here in the District of South Dakota and across the country.”
In addition to participating in the March over the Edmund Pettus Bridge on Sunday, March 5th, the delegation met with Assistant Attorney General Kristen Clarke of DOJ’s Civil Rights Division and held other meetings with community and civil rights leaders.
- The group met with distinguished jurist Myron Thompson. As former Chief Judge in the Middle District of Alabama, Judge Thompson was instrumental in preserving the Montgomery bus station where the Freedom Riders were attacked in 1961.
- The group met with Bryan Stevenson, Founder and Executive Director of the Equal Justice Initiative, a nonprofit that provides legal representation to people who have been wrongly convicted, unfairly sentenced, or abused in state jails and prisons.
- The attorneys heard from The Johnson Institute in the federal courthouse where many key civil rights cases were decided. Through its programming, The Johnson Institute demonstrates the importance of the U.S. Constitution and an independent judiciary.
- The U.S. Attorneys visited The Legacy Museum and the Memorial for Peace and Justice, which provide a comprehensive history of racial injustice.
The U.S. Attorneys from the following districts also attended the Selma and Montgomery events: Massachusetts, Connecticut, New Jersey, South Carolina, Colorado, Nevada, Idaho, Montana, Western and Middle Districts of Louisiana, Eastern District of Wisconsin, Eastern and Western Districts of Michigan, Middle District of Florida, Northern and Eastern Districts of California, Eastern District of Pennsylvania, Western District of Virginia, Western District of North Carolina, Southern District of Ohio, Eastern District of New York, and Southern District of West Virginia. The delegation was hosted by the U.S. Attorney for the Middle District of Alabama, and organized by U.S. Attorneys Nick Brown and Rachael Rollins.
The Attorney General’s Advisory Committee was established nearly 50 years ago by Attorney General Elliott Richardson. The Committee’s purpose is to give U.S. Attorneys a voice in Department policies and to advise the Attorney General of the United States.
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Troy Resident Sentenced to Prison for Role in Nationwide “Felony Lane Gang” ConspiracyRead the Press Release
ALBANY, NEW YORK – Terrell McDonald, age 32, of Troy, New York, was sentenced today to 65 months in prison after previously pleading guilty to conspiracy to commit bank fraud and aggravated identity theft. United States Attorney Carla B. Freedman; Michael J. Driscoll, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI); and Putnam County Sheriff Kevin J. McConville made the announcement.
In previously pleading guilty, McDonald admitted that he was involved in a fraud scheme known as “Felony Lane Gang” between 2018 and 2020. McDonald and his co-conspirators traveled across the country breaking into cars, often targeting those parked by women at locations such as health and fitness centers, daycares, outdoor recreational parks, and dog parks. McDonald and other members of the conspiracy stole debit cards, credit cards, checkbooks, and photo identifications in these “smash-and-grab” vehicle thefts, and they used these stolen items to commit bank fraud by recruiting women to impersonate the smash-and-grab victims and cash checks in drive-through bank lanes. The recruited check cashers were almost always suffering from an addiction to controlled substances and were provided payment at least partially in narcotics.
As part of his sentence, McDonald was ordered to pay restitution in the amount of $133,190, and to pay a forfeiture money judgment of $17,648.28. McDonald will serve a 3-year term of supervised release after completing his term of imprisonment.
McDonald was one of nine men charged in a 13-count indictment for their roles in the scheme. Tyrone Parker, age 41, of Fort Lauderdale, Florida, previously pled guilty to his role in the indictment and was sentenced to 57 months in prison. Keyshawn Arnold, age 25, of Schenectady, New York; Gary Grier, age 37, of Fort Lauderdale; and Joshua Mallory, age 37, of Fort Lauderdale, previously pled guilty for their roles in the indictment and are awaiting sentencing. The remaining co-defendants are:
- TYRONE PARKER, JR. a/k/a “Ty,” a/k/a “Cheese,” a/k/a “Little Thigh,” age 22, of Fort Lauderdale, Florida;
- CEDRIC LYNCH, a/k/a “City,” a/k/a “C,” age 37, of Orlando, Florida;
- ROBERT NATSON, a/k/a “Big Rob,” age 36, of Fort Lauderdale; and
- RANDALL TAYLOR , a/k/a “Gucci,” a/k/a “Guwop,” age 37, of Fort Lauderdale.
Each of the remaining defendants is charged with conspiracy to commit bank fraud and/or aggravated identity theft, and they are scheduled for trial in federal court in Albany on July 10, 2023. The charges in the indictment are merely accusations, and the defendants whose cases remain pending are presumed innocent unless and until proven guilty.
This case is being investigated by the FBI Westchester Resident Agency of the New York Field Office and the Putnam County Sheriff’s Department, with assistance from the FBI Field Offices in Albany, Miami, and Salt Lake City, and Resident Agencies in Savannah, Georgia, and Portland, Maine, and from the U.S. Attorney’s Office for the District of Maine, the Saratoga County District Attorney’s Office, and the Ulster County District Attorney’s Office. Additional assistance was provided by numerous law enforcement agencies, including, within New York, the New York State Police; Columbia County Sheriff's Office; Genesee County Sheriff’s Office; Monroe County Sheriff’s Office; Saratoga County Sheriff’s Office; Warren County Sheriff’s Office; and the police departments of the Town of Bethlehem; Glens Falls; Gloversville; Greenburgh; Greece; and Watervliet; and elsewhere, Connecticut State Police; Florida Department of Law Enforcement; Georgia State Patrol; Illinois State Police; Massachusetts State Police; Broward County, FL Sheriff’s Office; Northern York County, PA Regional Police; Southern Chester County, PA Regional Police; Utah County, UT Sheriff's Office; and the police departments of Auburn, MA; Bath, ME; Biddeford, ME; Bozeman, MT; Brunswick, ME; Caernarvon Township, PA; Chester Township, PA; Cinnaminson, NJ; Darien, CT; East Norriton Township, PA; Easthampton, MA; Greenwich, CT; Lower Moreland Township, PA; Manheim Township, PA; Portland, ME; Portsmouth, NH; Saco, ME; Salisbury, MA; Sanford, ME; Scarborough, ME; Somersworth, NH; South Portland, ME; St. George, UT; Syracuse, UT; Tinicum, PA; Towamencin, PA; Tewksbury, MA; Wakefield, MA; Yarmouth, ME; and York, ME.
Assistant United States Attorneys Matthew J. McCrobie, Michael F. Perry, and Paul Tuck are prosecuting the case.
Suburban Chicago Man Indicted for COVID-19 Testing Fraud SchemeRead the Press Release
CHICAGO — A suburban Chicago man has been indicted by a federal grand jury on ten counts of wire fraud and one count of theft of government funds for purportedly submitting fraudulent claims for reimbursement on tests which were never performed, were performed improperly, or were already paid for by the client.
ZISHAN ALVI, 44, of Inverness co-owned and operated Laboratory A, a laboratory located in Chicago, Illinois. Laboratory A purported to perform testing to detect for SARS-CoV-2 and offered two types of COVID-19 testing: PCR tests and antigen tests that delivered results within approximately 15 minutes (“rapid tests”). Laboratory A also offered a service where individuals and companies could pay a fee to receive COVID-19 PCR test results in an expedited fashion.
The Health Resources and Services Administration (“HRSA”) was an agency of the U.S. Department of Health and Human Services that oversaw and administered the funds appropriated through federal legislation to cover the costs of COVID-19 testing for individuals without health insurance coverage (“the HRSA Uninsured Program”). As indicated in the indictment, Laboratory A enrolled in the HRSA Uninsured Program in or around December 2020.
From approximately February 2021 through February 2022, Alvi along with others, are alleged to have knowingly devised, intended to devise, and participated in a scheme to defraud the government by causing Laboratory A to submit fraudulent claims and delivering inaccurate and unreliable test results to the public. The fraudulent claims sought reimbursement for purported tests when Alvi knew that (a) Laboratory A had not performed a test for COVID-19; (b) Laboratory A had modified a test for COVID-19 such that the results were unreliable; and (c) Laboratory A already had collected payment from the individuals who purportedly had been tested.
The indictment further alleges that Alvi caused Laboratory A to provide negative test results to be released to individuals who had provided a specimen for testing, but for whom a COVID-19 test had not been performed. It is alleged that Alvi directed Laboratory A employees to falsely indicate in Laboratory A’s records that COVID-19 tests had been performed for these individuals, when Alvi knew that the test specimens had been discarded at his own direction and had not been tested. It is further part of the scheme that, in order to conceal the fact that tests were not performed, Laboratory A did not release positive COVID-19 results on specimens where tests were eventually performed, because a purported negative result had already been released.
It was further part of the scheme that, to reduce costs and increase Laboratory A’s profits, Alvi directed Laboratory A employees to alter Laboratory A’s PCR testing method by using less of the materials necessary to process the PCR test, including the reagents, knowing that this made the test results unreliable.
During its operation, Laboratory A obtained over $83 million from the HRSA Uninsured Program as payment for COVID-19 tests purportedly performed by Laboratory A. Alvi is alleged to have transferred some of the fraudulently obtained HRSA funds from Laboratory A’s accounts to a personal account, and to have used the funds for personal expenditures, including for vehicle purchases and investments in stocks and cryptocurrency. The indictment seeks forfeiture from the defendant of at least $6.8 million in alleged ill-gotten gains, in addition to five luxury vehicles and funds from other trade and investment accounts.
The indictment is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Mario Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; and Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. Substantial assistance was provided by the Illinois Attorney General’s Office. The government is represented by Assistant U.S. Attorneys Jared Hasten, Misty Wright, and Trial Attorney Claire Sobczak from the Department of Justice’s Health Care Fraud Unit.
“The charges in this case allege that the defendant disregarded public health concerns in favor of personal financial gain. Doing so by compromising taxpayer-funded programs intended to fight the spread of coronavirus was particularly reprehensible” said Acting U.S. Attorney Pasqual. “I commend the work of our law enforcement partners who investigated this complex fraud scheme. Our office will relentlessly continue to bring to justice those who defrauded the government’s pandemic relief initiatives.”
"The defendant defrauded the American people at a time when we were most vulnerable, in the midst of a global pandemic. This indictment shows that the FBI along with our law enforcement partners is continually working to keep Americans safe and uphold the Constitution as our mission demands of us," said Special Agent in Charge Wheeler.
“The defendant’s alleged conduct resulted in money unjustly obtained from Federal programs established during the COVID-19 pandemic to keep Americans safe, and also placed patients at risk through his role in the release of false COVID-19 test results,” said Special Agent-in-Charge Pinto. “Our agency is committed to working with our law enforcement partners to ensure that those who defraud our federal health care programs and place patients at risk of harm are held accountable.”
“It is absolutely reprehensible that the defendant would use a public health crisis to allegedly defraud taxpayers and further put public health at risk by providing fraudulent COVID-19 test results,” Attorney General Kwame Raoul said. “I want to thank the United States Attorney for the Northern District of Illinois, the Chicago Office of the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of the Inspector General, and all of the law enforcement partners working to hold those who perpetrated this scheme accountable.”
The public is reminded that an indictment contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison, and the count of theft of government funds is punishable by up to 10 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Statement of U.S. Attorney Damian Williams on the Conviction of Former Congressman Stephen Buyer for Insider TradingRead the Press Release
Former Congressman Stephen Buyer leveraged his privileged position as a corporate advisor to twice use his clients’ material nonpublic information to commit insider trading. Buyer’s conviction underscores this Office’s commitment to detect and hold accountable those who break our insider trading laws just to make a buck.
St. Louis Man Admits Assaulting Deputy U.S. Marshals, Selling MethamphetamineRead the Press Release
ST. LOUIS – A man from St. Louis, Missouri on Monday admitted assaulting two deputy U.S. marshals in 2021 and selling methamphetamine.
Emilio Justin Sandoval, 34, pleaded guilty in front of U.S. District Judge Matthew T. Schelp to one count of possession with the intent to distribute methamphetamine and two counts of assaulting an officer of the United States.
The Drug Enforcement Administration began investigating Sandoval’s drug sales in December 2019 and learned that he was storing and selling methamphetamine by the ounce out of his home in the 4400 block of Dewey Avenue in St. Louis. Sandoval sold two ounces of methamphetamine on Oct. 20, 2020 for $1,000, which led to a consensual search of his home and the discovery of five baggies containing a total of 545 grams of methamphetamine as well as three guns and $11,234 in a safe.
After Sandoval was indicted in U.S. District Court in St. Louis on Aug. 25, 2021, the U.S. Marshals were tasked with arresting him. On Nov. 10, 2021, they found him at his home. While the marshals were watching, Sandoval and his significant other ran to a vehicle and tried to escape, ramming marshals’ vehicles multiple times and injuring two of the deputy marshals. One suffered serious injuries to his left knee, left elbow and left hand. The other was struck by the open passenger door, knocked down and dragged by Sandoval’s vehicle. She suffered serious, permanent and life-threatening injuries to her head, neck and spine.
As part of the plea, both sides have agreed to recommend a sentence of 27 years in federal prison. Sandoval is scheduled to be sentenced June 27.
The Drug Enforcement Administration and the U.S. Marshals Service investigated this case.
St. Cloud, MN, Woman Pleads Guilty to Leading a Major Dangerous Drug Distribution Enterprise from MexicoRead the Press Release
FARGO – United States Attorney Mac Schneider, District of North Dakota, announced that on March 13, 2023, Macalla Lee Knott a/k/a Kayla, age 30, from St. Cloud, MN, pled guilty in Federal Court in Fargo, ND, before Chief Judge Peter W. Welte, to the offenses of Conspiracy to Distribute Controlled Substances, Money Laundering Conspiracy and Continuing Criminal Enterprise (CCE). Sentencing is scheduled for August 7, 2023.
At the plea hearing, Knott admitted to supervising, managing, and leading more than five people in the enterprise. Knott, who had been living in Mexico since March of 2020, directed shipments of methamphetamine, cocaine, and fentanyl to various distributors across the upper Midwest and arranged payments to sources of supply in Mexico.
This case is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of methamphetamine, cocaine, and fentanyl and was aided by coordination with the U.S. Attorney’s Office, District of Minnesota.
This investigation has led to eighteen (18) defendants charged in North Dakota. The investigation has been tied to seizures of over 100 pounds of methamphetamine, 9 pounds of fentanyl powder and 120,000 fentanyl pills. The investigation remains very active.
Sentenced in this case so far are:
Mary Thompson, 29, Moorhead, Minnesota – 100 months (8.3 years) imprisonment and 3 years supervised release.
Melanie Quick, 28, St. Cloud, Minnesota – 108 months (9 years) imprisonment and 3 years supervised release.
This case is being investigated by the Central Minnesota Violent Offenders Task Force (CMVOTF), Federal Bureau of Investigation, St. Cloud Police Department, Stearns County Sheriff’s Office, Sartell Police Department, Benton County Sheriff’s Office, Sherburne County Sheriff’s Office, Morrison County Sheriff’s Office, Internal Revenue Service – CID, Fargo Police Department, West Fargo Police Department, Minnesota Bureau of Criminal Apprehension and the Drug Enforcement Administration.
The cases are being prosecuted by Assistant U.S. Attorneys Christopher C. Myers and Alex Stock, District of North Dakota, with the assistance from the U.S. Attorney’s Office for the District of Minnesota and the Stearns County Attorney’s Office.
# # #Seven Charged in Sophisticated Stolen Identity Tax Refund Fraud Scheme that Sought over $100 Million from the IRSRead the Press Release
On March 7, a federal grand jury in Austin returned an indictment, unsealed today, charging seven individuals with conspiracy to commit mail and wire fraud and other crimes arising out of their scheme to defraud the IRS using stolen identities.
According to the indictment, from 2018 through 2021, Abraham Yusuff, of Round Rock, Meghan Inyang, of San Antonio, Christopher Eduardo, of Round Rock, Christian Mathurin, of Nashville, Tennessee, Dillon Anozie, of San Antonio, Babajide Ogunbanjo, of Austin, and Aydin Mammadov, of Houston, engaged in a conspiracy to claim fraudulent tax refunds using the stolen identities of accountants and taxpayers by filing at least 371 false tax returns claiming over $111 million in refunds from the IRS.
Yusuff allegedly recruited and directed Eduardo, Mathurin, Anozie, Ogunbanjo and Mammadov to provide addresses to him that could be used in the scheme. Yusuff and others then allegedly registered with the IRS, posing as authorized agents of multiple taxpayers using stolen information relating to the taxpayers and their real tax preparers. The conspirators then allegedly directed the IRS to change the addresses on file for the taxpayers and to send their tax information, including account transcripts and wage records, to the addresses controlled by the conspirators. The conspirators then allegedly used this information to electronically file tax returns claiming fraudulent refunds and directed the refunds the IRS to split the refunds among several prepaid debit cards. Prior to issuing tax refunds to some taxpayers, the IRS allegedly sent verification letters to the addresses controlled by the defendants, and the defendants and others, pretending to be the taxpayers, instructed the IRS to release the refunds.
The indictment also charges that Yusuff, Inyang, Eduardo, Anozie, Ogunbanjo and Mammadov obtained the prepaid debit cards that were to be used to receive the fraudulent refunds and that once the refunds were deposited onto the prepaid debit cards, they laundered the funds by purchasing, among other things, money orders from local stores in amounts low enough to avoid reporting thresholds. Yusuff and others also allegedly used the prepaid debit cards and money orders to purchase designer clothing, home renovation materials and used cars at auction. The indictment alleges that all defendants kept or received money orders purchased with the fraudulent refunds as their share of the illegal proceeds.
The indictment charges each defendant with varying crimes, including mail and wire fraud, conspiracy to commit mail and wire fraud, aggravated identity theft, money laundering and access device fraud. If convicted, they face a maximum sentence of 20 years in prison for the mail and wire fraud and the conspiracy of said fraud, 20 years for money laundering, 10 years for access device fraud, and a mandatory sentence of two years for aggravated identity theft. In addition to any term of imprisonment, each of the defendants also faces a period of supervised release, monetary penalties, restitution and forfeiture. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
The IRS–Criminal Investigation and the Treasury Inspector General for Tax Administration are investigating the case.
Assistant Chief Michael Boteler and Trial Attorneys Mitchell T. Galloway and Mary Frances Richardson of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sayfullo Saipov to Be Sentenced to Life in Prison for 2017 Truck Attack for ISISRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that a jury was unable to reach a unanimous decision as to whether to authorize the death penalty for SAYFULLO SAIPOV. U.S. District Judge Vernon S. Broderick will sentence SAIPOV to the statutorily mandated sentence of life in prison for carrying out a terrorist attack on October 31, 2017, in the name of the Islamic State of Iraq and al-Sham (“ISIS”), in which SAIPOV used a truck to murder eight victims and injure many more on a bike path in lower Manhattan.
On January 26, 2023, the same jury convicted SAIPOV of all 28 counts in the Indictment, which charged SAIPOV with murder for the purpose of gaining entrance to a racketeering enterprise (ISIS); assault with a dangerous weapon and attempted murder for the purpose of gaining entrance to a racketeering enterprise (ISIS); providing material support to a designated foreign terrorist organization (ISIS) resulting in death; and damage and destruction to a motor vehicle resulting in death.
U.S. Attorney Damian Williams said: “On October 31, 2017, Sayfullo Saipov stole eight innocent lives – and devastated the lives of many more – in a horrendous terrorist attack. This evil act was fueled by Saipov’s allegiance to ISIS, an allegiance which Saipov proudly maintained after the attack and up through his trial. Today a jury has declined to authorize the death penalty for Saipov, and accordingly the defendant will be subject to a mandatory sentence of life imprisonment without the possibility of parole.”
Saipov’s crimes were predicated on ISIS’s commitment to murder innocent civilians and its disdain for rule of law. But, in the end, Saipov’s actions have highlighted one of the pillars of the rule of law in this country: the right to a full and fair public trial before a jury drawn from the community. We thank the jurors for their careful consideration of the evidence and the law during this long trial, and for their willingness to serve. We also thank the families of the murdered victims, and the surviving victims, for their patience and understanding as the legal process played out. Even though the trial has ended, we know that their pain and grief endures. We stand with them in honoring the lives of their loved ones, and all who were affected by this senseless attack.”
As set forth in public documents in the case and statements made during court proceedings:
On Halloween afternoon in 2017, SAYFULLO SAIPOV used a 6,000-pound truck to strike more than 20 innocent people on the Hudson River Bike Path in lower Manhattan. SAIPOV killed eight of his victims and critically injured many others, including a 14-year-old child. SAIPOV’s surviving victims suffered amputations, serious brain injuries, life-altering physical injuries, and significant psychological trauma. SAIPOV committed his attack after years of devotion to the brutal terrorist organization ISIS and after months of careful planning. In the weeks before his attack, for example, SAIPOV rented a truck to practice maneuvering it so that he could hit as many people as possible. SAIPOV brought a note to the attack with the ISIS flag and rallying cry written on it. After his attack, while in custody at a hospital, SAIPOV told the FBI that he committed the attack in response to calls from the leader of ISIS and that he was proud of what he had done. SAIPOV smiled when describing his attack and sought to hang the ISIS flag in his hospital room. After the attack, ISIS praised SAIPOV as an Islamic State soldier and called his attack one of the most prominent attacks in the United States. In the years since his attack, SAIPOV continued to demonstrate his devotion to ISIS, including though statements in court, recorded telephone calls, and writings seized from his prison cell. In prison, SAIPOV also made statements confirming his continued belief that enemies of ISIS should be eliminated and threatening to cut the heads off of corrections officers. At the liability and sentencing phases of trial, many of SAIPOV’s victims and their family members bravely described the terror he caused and the pain and suffering they continue to endure.
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SAIPOV, 34, of Uzbekistan, will be sentenced to life in prison on all nine capital counts in the Indictment.
Mr. Williams praised the outstanding investigative efforts of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies. Mr. Williams also thanked the FBI Legal Attaché Office for Central Asia and the FBI’s Counterterrorism Division, Laboratory Division, Victim Services Division, and Language Services Section, Homeland Security Investigations, New York, and the Department of Justice’s National Security Division, Capital Case Section, Organized Crime and Gang Section, Office of Enforcement Operations, and Office of International Affairs for their assistance.
The case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Amanda L. Houle, Jason A. Richman, Alexander Li, and Andrew Dember, with the assistance of Paralegal Specialist Daniel Sitko, are in charge of the prosecution, with assistance from Trial Attorney John Cella of the National Security Division’s Counterterrorism Section and Trial Attorney Michael Warbel of the Capital Case Section. Mr. Williams also thanked Wendy Olsen and the Office’s Victim and Witness Section for their outstanding efforts in assisting the victims of this crime and their families.
Rowan County Man Sentenced to 45 Years for Production and Distribution of Child Sexual Abuse MaterialRead the Press Release
ASHLAND, Ky.— A Morehead, Ky., man, Johnathan Clay Davenport, 31, was sentenced to 540 months in federal prison on Wednesday, by U.S. District David Bunning, for production of child pornography and distribution of child pornography.
According to his plea agreement, law enforcement received information that a subject had distributed child abuse material on Kik Messenger, along with messages that indicated that he had been sexually abusing three minor children. Law enforcement located Davenport, and Davenport admitted he was responsible for distributing the image of child sexual abuse material and he also admitted that he was part of a group related to the sexual exploitation of children. Upon search, law enforcement found that Davenport had produced additional sexually explicit images of three minor children and attempted to produce images of a fourth minor victim, and he admitted to taking the explicit images in his home.
Davenport pleaded guilty in November 2022.
Under federal law, Davenport must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 15 years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge of Homeland Security Investigations (HSI); and Col. Phillip Burnett, Commissioner, Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the DHS-HSI and KSP. The United States was represented by Assistant U.S. Attorney Erin Roth.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Rochester Man Arrested, Charged with Multiple Child Pornography ChargesRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Leonard Ortiz, Jr., 20, of Rochester, NY, was arrested and charged by criminal complaint with receipt, distribution, and possession of child pornography. The charges carry a minimum penalty of five years in prison, a maximum of 20 years and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that according to the complaint, the New York State Police executed a search warrant at Ortiz’s residence after receiving a report from the National Center for Missing and Exploited Children that Ortiz traded child pornography on a social media application with other users. Multiple digital devices were seized and turned over to Homeland Security Investigations for forensic analysis. The review uncovered at least 625 images and 117 videos of child pornography on Ortiz’s cell phone, some of which depicted the rape of prepubescent children. Investigators also executed search warrants on Ortiz’s social media accounts and discovered additional child pornography that he distributed to and received from others. In addition, investigators found multiple message threads during which Ortiz and other users openly discussed child pornography and the sexual abuse of children.
Ortiz made an initial appearance before U.S. Magistrate Judge Marian W. Payson and was released on conditions, including no contact with minors, unsupervised use of computers and GPS location monitoring.
The criminal complaint is the result of an investigation by the New York State Police, under the direction of major Brian Ratajczak and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Ring-Leader of Conspiracy that Used Stolen Identities to Purchase Vehicles Pleads GuiltyRead the Press Release
BOSTON – A Haverhill man pleaded guilty today to orchestrating schemes to use the stolen identities of United States citizens from Puerto Rico to fraudulently purchase vehicles and other merchandise and apply for and utilize bank accounts and credit cards.
Alvin Rivera, 39, pleaded guilty to conspiracy to commit wire fraud, wire fraud, aggravated identity theft and false representation of a Social Security number. Rivera pleaded guilty to similar schemes in two cases, one originating in the District of Massachusetts and another originating in the District of New Jersey that was transferred to the District of Massachusetts for resolution. U.S. District Court Judge Patti B. Saris scheduled sentencing in both cases for June 15, 2023.
Rivera and multiple co-defendants were charged by criminal complaint in September 2020 and subsequently indicted by a federal grand jury in October 2020 in the District of Massachusetts. In a coordinated multi-jurisdictional effort, the defendant was also charged in the District of New Jersey, and others involved in the scheme were also charged there, in the state of New Jersey, the Northern District of Ohio and the Eastern District of Pennsylvania.According to charging documents, between October 2017 and September 2020, Rivera was the leader of a conspiracy in Massachusetts that used stolen identity information of United States citizens to obtain credit and goods. Under Rivera’s direction, and with stolen identity information that he provided, co-conspirators visited Massachusetts car dealerships to purchase late-model vehicles and applied for 100% financing. In support of the applications, the co-conspirators provided stolen biographical information from real United States citizens, fraudulent Puerto Rico driver’s licenses and Social Security cards in those identities, as proof of identification. The co-conspirators used the stolen identities to illegally open bank accounts and credit cards and purchase vehicles, many of which were exported out of the United States.
According to charging documents, between October 2017 and February 2018, Rivera also personally used stolen identity information of United States citizens to apply for credit and fraudulently purchase vehicles in a similar scheme in New Jersey.
The charges of wire fraud and conspiracy to commit wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence imposed, up to one year of supervised release and a fine of up to $250,000. The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Acting Special Agent in Charge of Homeland Security Investigations in New England; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Brockton Police Chief Brenda Perez made the announcement today. Assistance was provided by the Lowell, Lawrence, Methuen, Haverhill, Woburn and Dartmouth Police Departments. Assistant U.S. Attorneys Elianna J. Nuzum and Adam W. Deitch of Rollins’ Criminal Division are prosecuting the case.
The District of Massachusetts investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
The District of New Jersey investigation was conducted by the Social Security Administration, Office of Inspector General, Office of InvestigationsThe details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
President of Oklahoma Steel Pole Manufacturer Pleads Guilty to Tax EvasionRead the Press Release
An Oklahoma man pleaded guilty, on Friday, March 10, to evading over $1 million in income taxes.
According to court documents, from 2014 to 2019, Phillip Barry Albert of Tulsa was President of Pelco Structural LLC and directed its outside payroll service company to pay him over $2.6 million. Albert instructed that the payments be classified as reimbursements rather than income, so that federal income taxes would not be withheld, and the payments would not be reported on his Forms W-2 as wages.
Albert filed individual income tax returns for 2014 through 2019 that did not report the payments, totaling $2,615,750, thus causing a tax loss to the IRS of $1,000,232.
Albert faces a maximum penalty of 5 years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Clinton J. Johnson for the Northern District of Oklahoma made the announcement.
IRS-Criminal Investigation and the FBI are investigating the case.
Trial Attorney Meredith Havekost of the Justice Department’s Tax Division and Assistant U.S. Attorneys Richard Cella and Thomas Duncombe of the Northern District of Oklahoma are prosecuting the case.
President of Oklahoma Steel Pole Manufacturer Pleads Guilty to Tax EvasionRead the Press Release
An Oklahoma man pleaded guilty, on Friday, March 10, to evading over $1 million in income taxes.
According to court documents, from 2014 to 2019, Phillip Barry Albert of Tulsa was President of Pelco Structural LLC and directed its outside payroll service company to pay him over $2.6 million. Albert instructed that the payments be classified as reimbursements rather than income, so that federal income taxes would not be withheld, and the payments would not be reported on his Forms W-2 as wages.
Albert filed individual income tax returns for 2014 through 2019 that did not report the payments, totaling $2,615,750, thus causing a tax loss to the IRS of $1,000,232.
Albert faces a maximum penalty of 5 years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Clinton J. Johnson for the Northern District of Oklahoma made the announcement.
IRS-Criminal Investigation and the FBI are investigating the case.
Trial Attorney Meredith Havekost of the Justice Department’s Tax Division and Assistant U.S. Attorneys Richard Cella and Thomas Duncombe of the Northern District of Oklahoma are prosecuting the case.
Pennsylvania Owners of Landscape and Excavation Firm Charged with Conspiring to Defraud the IRS and Employment Tax CrimesRead the Press Release
A federal grand jury in Philadelphia returned an indictment charging a Pennsylvania man and woman with conspiring to defraud the IRS and other tax crimes, including failing to pay employment taxes to the IRS.
According to the indictment, which was unsealed today, from approximately October 2013 through December 2021, Theodore Shearba and Jennifer Cemini, both of Perkiomenville, owned and operated a landscaping and excavation business and attempted to defraud the IRS by (1) not reporting the income they received from the business, (2) using business funds to pay for personal expenditures, (3) not paying employment taxes, including the income tax withheld from employees’ paychecks and Social Security and Medicare taxes and (4) changing business names and concealing business income to thwart IRS efforts to collect the unpaid employment taxes. It is also alleged that Shearba did not file individual income tax returns for years 2019 through 2021.
If convicted, Shearba and Cemini each face a maximum penalty of five years in prison for the conspiracy count and each employment tax count. Shearba also faces a maximum penalty of one year in prison for each count of failing to file a tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Assistant Chief Thomas F. Koelbl and Trial Attorney George Meggali of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Passenger accused of gun crime after attempted traffic stop led to shooting of Great Falls police officerRead the Press Release
GREAT FALLS — A woman passenger appeared in federal court today on a firearm charge after the driver allegedly shot and wounded a Great Falls Police Department officer during an attempted a traffic stop of their car on March 7, U.S. Attorney Jesse Laslovich said.
Nikki Marie Snell, 38, of Harlem, had an initial appearance on a criminal complaint accusing her of prohibited person in possession of a firearm. If convicted of the most serious crime, Snell faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge John T. Johnston presided. Snell was detained pending further proceedings.
The government alleged in court documents that on March 7, Great Falls Police Department officers attempted to conduct a traffic stop of a car. The driver, a man, ran from the car with a large brown purse and is suspected of subsequently shooting an officer. Investigators identified Snell as the only passenger in the car and detained her. Officers also recovered the large brown purse that had been in the man’s possession. The court documents further alleged the purse belonged to Snell and that it contained a loaded 9mm, semi-automatic pistol, along with a syringe, an empty baggie with suspected methamphetamine and a digital scale. The government alleged that Snell is prohibited from possessing a firearm, ammunition, destructive device or any other dangerous weapon because of a prior federal felony conviction.
A criminal complaint is only an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorney Jessica A. Betley is prosecuting the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, Montana Division of Criminal Investigation and Great Falls Police Department.
PACER case reference. 23-mj-32.
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Owners of Freight Forwarding Company Plead Guilty to Exporting Stolen Outboard Engines to MexicoRead the Press Release
MIAMI – Two Miami residents, Carlos Orlando Ledesma, 57, and Nadia Esperanza Ledesma, 46, have pled guilty to conspiring to export nearly 600 stolen outboard engines to Mexico through a Miami-based freight forwarding company.
Previously, on February 22, co-defendants Roberto Marrero-Cisneros, 65, from Miami, and Osmani Valdivia Perez, 55, from Lehigh Acres, also pled guilty to the same conspiracy charge.
Nadia Ledesma is the President of Netcycle Trading Corp., a freight forwarding company in Miami, and Carlos Ledesma is the warehouse manager. According to court documents, from 2015 to 2018, Carlos and Nadia Ledesma received almost 600 stolen outboard engines for export to Mexico. Dozens of individuals delivered the stolen engines. The engines had visible damage from the thefts, and cables and lines had been cut rather than properly detached. The individuals delivered the stolen engines in non-commercial vehicles without bills of sale or any other documentation for the engines.
According to court documents, Marrero-Cisneros created false serial number stickers to place on the stolen outboard engines. Nadia and Carlos Ledesma, and their co-conspirators, created false bills of sale and submitted false export information to the United States.
Many of the stolen engines were directed to Tomas Vale Valdivia, a co-conspirator who was then in Mexico. Later, on January 28, 2020, Vale Valdivia was sentenced to 57 months for alien smuggling, in a separate case before U.S. District Judge Kathleen M. Williams.
Vale Valdivia is the nephew of defendant Osmani Valdivia Perez. Valdivia Perez made many cash payments to co-conspirators in this case, on behalf of Vale Valdivia. The cash payments included payments to Netcycle for the fees for exporting the stolen outboard engines, payments to Marrero-Cisneros for the false serial numbers, and payments to the individuals who stole the outboard engines.
U.S. District Judge Robert N. Scola, Jr. set the sentencing hearings for Marrero-Cisneros and Valdivia Perez for May 8, and the sentencing hearings for Carlos and Nadia Ledesma for May 23.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, acting Special Agent in Charge Michael E. Buckley, Homeland Security Investigations (HSI), Miami, and Special Agent in Charge Zinnia P. James, U.S. Coast Guard Investigative Service (CGIS), Southeast Region, announced the guilty pleas.
HSI Miami and CGIS investigated the case, with assistance from the U.S. Customs and Border Protection (CBP), and the Florida Department of Law Enforcement (FDLE). Assistant U.S. Attorney Ana Maria Martinez is prosecuting the case. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20269.
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Ongoing Jungle Life Mafia Street Gang Prosecution Results in Multiple Guilty Pleas and Sentencings for Nine Tangipahoa Parish ResidentsRead the Press Release
NEW ORLEANS, LOUISIANA – MICHAEL ALEXANDER, SR., a/k/a “Monsta,” a/k/a “Jamond,” age 40, ATRELL ANDERSON, a/k/a “Trey,” a/k/a “Trel,” a/k/a “Da Boi,” age 31, TERRELL HAYNES, a/k/a "Redman," age 44, MICHAEL ALEXANDER, JR., a/k/a "Mike Mike," age 22, BRANDON BAKER, age 37, LOUIS BELLS, JR., age 22, JERALD ALEXANDER, age 37, STAR ROBICHAUX, age 43, and JOSHUA PRINE, age 42, residents of Tangipahoa Parish, Louisiana, have now all pled guilty before U.S. District Judge Jay C. Zainey, announced U.S. Attorney Duane A. Evans.
According to court documents, Drug Enforcement Administration (“DEA”) agents began investigating the drug trafficking activities of the Jungle Life Mafia street gang in Tangipahoa Parish, Louisiana in 2019. The investigation spanned two years which led to the seizure of drugs, drug proceeds, and guns. In total, DEA agents seized $590,602 in U.S. currency and 10 illegal guns.
On March 9, 2023, ALEXANDER, SR. pled guilty to conspiracy to distribute 400 grams or more of fentanyl, 100 grams or more of heroin, and a quantity of cocaine, possession with intent to distribute fentanyl, heroin, and cocaine, possession of firearms in furtherance of drug trafficking crimes, and being a felon in possession of firearms.
For the conspiracy charge, ALEXANDER, SR. faces a statutory mandatory minimum sentence of 10 years, up to life imprisonment, a fine of up to $10,000,000, and at least 5 years of supervised release following any term of imprisonment. For possession with intent to distribute heroin and fentanyl, he faces a statutory mandatory minimum sentence of 5 years, up to 40 years imprisonment, a fine of up to $5,000,000, and at least 4 years of supervised release following any term of imprisonment. For possessing firearms in furtherance of a drug trafficking offense, ALEXANDER, SR. faces a mandatory minimum sentence of 5 years, up to life imprisonment, to run consecutive with any other sentence, a fine of up to $250,000, and up to 5 years of supervised release. If convicted of being a felon in possession of firearms, ALEXANDER, SR. faces up to 10 years imprisonment, a fine of up to $250,000, and up to 3 years supervised release. For each of the four (4) charges against him, ALEXANDER, SR. must also pay a $100 mandatory special assessment fee. Sentencing for ALEXANDER, SR. is scheduled for June 13, 2023.
On October 6, 2022, ANDERSON pled guilty to conspiring to distribute 400 grams or more of fentanyl, 50 grams or more of methamphetamine, and 100 grams or more of heroin. He also pled guilty to distribution of methamphetamine and use of a communication facility in furtherance of a drug trafficking crime. On March 9, 2023, ANDERSON was sentenced to 188 months imprisonment, 5 years of supervised release, and a $600 mandatory special assessment fee.
On September 19, 2022, HAYNES pled guilty to conspiring to distribute 400 grams or more of fentanyl, 50 grams or more of methamphetamine, and 1 kilogram or more of heroin. He also pled guilty to distribution of methamphetamine and possessing a firearm as a convicted felon. For the conspiracy count, he faces a statutory mandatory minimum sentence of 10 years, up to life imprisonment, a fine of up to $10,000,000, and at least 5 years of supervised release following any term of imprisonment. For distribution, HAYNES faces a statutory mandatory minimum sentence of 5 years, up to 40 years imprisonment, a fine of up to $5,000,000, and at least 4 years of supervised release following any term of imprisonment. For being a felon in possession of a firearm, HAYNES faces up to 10 years imprisonment, a fine of up to $250,000, and up to 3 years supervised release. For each of the three (3) charges against him , HAYNES must also pay a $100 mandatory special assessment fee. Sentencing for HAYNES is scheduled for April 18, 2023.
On October 19, 2022, ALEXANDER, JR. pled guilty to conspiring to distribute quantities of heroin and methamphetamine, possession with intent to distribute heroin and methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and use of a communication facility in furtherance of drug trafficking. On February 14, 2023, ALEXANDER, JR. was sentenced to 7 years imprisonment, 5 years of supervised release, and a $500 mandatory special assessment fee.
On January 18, 2023, JERALD ALEXANDER pled guilty to conspiracy to distribute marijuana, possession with intent to distribute marijuana, possession of a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm. For the marijuana offenses, he faces up to 5 years imprisonment, up to a $250,000 fine, and at least 2 years of supervised release. For possessing a firearm in furtherance of drug trafficking, ALEXANDER faces a mandatory minimum sentence of 5 years up to life imprisonment, to run consecutive to any other sentence, up to a $250,000 fine, and up to 5 years of supervised release. For being a felon in possession of a firearm, he faces a maximum of ten years imprisonment, up to a $250,000 fine, and up to 3 years of supervised release. For each of the four (4) charges against him, ALEXANDER must also pay a $100 mandatory special assessment fee. Sentencing for ALEXANDER is scheduled for April 18, 2023.
On August 2, 2022, BELLS pled guilty to being a felon in possession of a firearm. On October 25, 2022, BELLS was sentenced to 71 months imprisonment, 3 years of supervised release, and a $100 mandatory special assessment fee.
On October 4, 2022, BAKER pled guilty to conspiracy to distribute quantities of heroin and methamphetamine. On February 28, 2023, he was sentenced to 27 months imprisonment, 3 years of supervised release, and a $100 mandatory special assessment fee.
On September 14, 2022, ROBICHAUX pled guilty to conspiracy to distribute 400 grams or more of fentanyl and 1 kilogram or more of heroin. On October 18, 2022, PRINE pled guilty to conspiracy to distribute 400 grams or more of fentanyl and 1 kilogram or more of heroin. Both ROBICHAUX and PRINE face a statutory mandatory minimum sentence of 10 years, up to life imprisonment, a fine of up to $10,000,000, and at least 5 years of supervised release following any term of imprisonment. Sentencing for ROBICHAUX is scheduled for April 25, 2023 and sentencing for PRINE is scheduled for June 13, 2023.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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 federal Drug Enforcement Administration, Hammond Police Department, Tangipahoa Parish Sheriff’s Office, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, 21st Judicial District Attorney’s Office, St. Tammany Parish District Attorney’s Office, Jefferson Parish Sheriff’s Office, and the U.S. Marshals Service. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
Ongoing Jungle Life Mafia Street Gang Prosecution Results in Multiple Guilty Pleas and Sentencings for Nine Tangipahoa Parish ResidentsRead the Press Release
NEW ORLEANS, LOUISIANA – MICHAEL ALEXANDER, SR., a/k/a “Monsta,” a/k/a “Jamond,” age 40, ATRELL ANDERSON, a/k/a “Trey,” a/k/a “Trel,” a/k/a “Da Boi,” age 31, TERRELL HAYNES, a/k/a “Redman,” age 44, MICHAEL ALEXANDER, JR., a/k/a “Mike Mike,” age 22, BRANDON BAKER, age 37, LOUIS BELLS, JR., age 22, JERALD ALEXANDER, age 37, STAR ROBICHAUX, age 43, and JOSHUA PRINE, age 42, residents of Tangipahoa Parish, Louisiana, have now all pled guilty before U.S. District Judge Jay C. Zainey, announced U.S. Attorney Duane A. Evans.
According to court documents, Drug Enforcement Administration (“DEA”) agents began investigating the drug trafficking activities of the Jungle Life Mafia street gang in Tangipahoa Parish, Louisiana in 2019. The investigation spanned two years which led to the seizure of drugs, drug proceeds, and guns. In total, DEA agents seized $590,602 in U.S. currency and 10 illegal guns.
On March 9, 2023, ALEXANDER, SR. pled guilty to conspiracy to distribute 400 grams or more of fentanyl, 100 grams or more of heroin, and a quantity of cocaine, possession with intent to distribute fentanyl, heroin, and cocaine, possession of firearms in furtherance of drug trafficking crimes, and being a felon in possession of firearms.
For the conspiracy charge, ALEXANDER, SR. faces a statutory mandatory minimum sentence of 10 years, up to life imprisonment, a fine of up to $10,000,000, and at least 5 years of supervised release following any term of imprisonment. For possession with intent to distribute heroin and fentanyl, he faces a statutory mandatory minimum sentence of 5 years, up to 40 years imprisonment, a fine of up to $5,000,000, and at least 4 years of supervised release following any term of imprisonment. For possessing firearms in furtherance of a drug trafficking offense, ALEXANDER, SR. faces a mandatory minimum sentence of 5 years, up to life imprisonment, to run consecutive with any other sentence, a fine of up to $250,000, and up to 5 years of supervised release. If convicted of being a felon in possession of firearms, ALEXANDER, SR. faces up to 10 years imprisonment, a fine of up to $250,000, and up to 3 years supervised release. For each of the four (4) charges against him , ALEXANDER, SR. must also pay a $100 mandatory special assessment fee. Sentencing for ALEXANDER, SR. is scheduled for June 13, 2023.
On October 6, 2022, ANDERSON pled guilty to conspiring to distribute 400 grams or more of fentanyl, 50 grams or more of methamphetamine, and 100 grams or more of heroin. He also pled guilty to distribution of methamphetamine and use of a communication facility in furtherance of a drug trafficking crime. On March 9, 2023, ANDERSON was sentenced to 188 months imprisonment, 5 years of supervised release, and a $600 mandatory special assessment fee.
On September 19, 2022, HAYNES pled guilty to conspiring to distribute 400 grams or more of fentanyl, 50 grams or more of methamphetamine, and 1 kilogram or more of heroin. He also pled guilty to distribution of methamphetamine and possessing a firearm as a convicted felon. For the conspiracy count, he faces a statutory mandatory minimum sentence of 10 years, up to life imprisonment, a fine of up to $10,000,000, and at least 5 years of supervised release following any term of imprisonment. For distribution, HAYNES faces a statutory mandatory minimum sentence of 5 years, up to 40 years imprisonment, a fine of up to $5,000,000, and at least 4 years of supervised release following any term of imprisonment. For being a felon in possession of a firearm, HAYNES faces up to 10 years imprisonment, a fine of up to $250,000, and up to 3 years supervised release. For each of the three (3) charges against him , HAYNES must also pay a $100 mandatory special assessment fee. Sentencing for HAYNES is scheduled for April 18, 2023.
On October 19, 2022, ALEXANDER, JR. pled guilty to conspiring to distribute quantities of heroin and methamphetamine, possession with intent to distribute heroin and methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and use of a communication facility in furtherance of drug trafficking. On February 14, 2023, ALEXANDER, JR. was sentenced to 7 years imprisonment, 5 years of supervised release, and a $500 mandatory special assessment fee.
On January 18, 2023, JERALD ALEXANDER pled guilty to conspiracy to distribute marijuana, possession with intent to distribute marijuana, possession of a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm. For the marijuana offenses, he faces up to 5 years imprisonment, up to a $250,000 fine, and at least 2 years of supervised release. For possessing a firearm in furtherance of drug trafficking, ALEXANDER faces a mandatory minimum sentence of 5 years up to life imprisonment, to run consecutive to any other sentence, up to a $250,000 fine, and up to 5 years of supervised release. For being a felon in possession of a firearm, he faces a maximum of ten years imprisonment, up to a $250,000 fine, and up to 3 years of supervised release. For each of the four (4) charges against him, ALEXANDER must also pay a $100 mandatory special assessment fee. Sentencing for ALEXANDER is scheduled for April 18, 2023.
On August 2, 2022, BELLS pled guilty to being a felon in possession of a firearm. On October 25, 2022, BELLS was sentenced to 71 months imprisonment, 3 years of supervised release, and a $100 mandatory special assessment fee.
On October 4, 2022, BAKER pled guilty to conspiracy to distribute quantities of heroin and methamphetamine. On February 28, 2023, he was sentenced to 27 months imprisonment, 3 years of supervised release, and a $100 mandatory special assessment fee.
On September 14, 2022, ROBICHAUX pled guilty to conspiracy to distribute 400 grams or more of fentanyl and 1 kilogram or more of heroin. On October 18, 2022, PRINE pled guilty to conspiracy to distribute 400 grams or more of fentanyl and 1 kilogram or more of heroin. Both ROBICHAUX and PRINE face a statutory mandatory minimum sentence of 10 years, up to life imprisonment, a fine of up to $10,000,000, and at least 5 years of supervised release following any term of imprisonment. Sentencing for ROBICHAUX is scheduled for April 25, 2023 and sentencing for PRINE is scheduled for June 13, 2023.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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 federal Drug Enforcement Administration, Hammond Police Department, Tangipahoa Parish Sheriff’s Office, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, 21st Judicial District Attorney’s Office, St. Tammany Parish District Attorney’s Office, Jefferson Parish Sheriff’s Office, and the U.S. Marshals Service. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
Omaha Man Sentenced to 60 Months for Distribution of MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Eric D. Waller, 54, of Omaha, Nebraska, was sentenced on March 10, 2023, in federal court in Omaha for distribution of methamphetamine. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Waller to 60 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a four-year term of supervised release.
On May 16, 2022, Waller sold methamphetamine to a cooperating witness working with law enforcement. Laboratory testing confirmed a net weight of 13.967 grams and purity of 94.3 percent.
This case was investigated by the Omaha Police Department.
Oklahoma City Man Sentenced to Serve 188 Months in Federal Prison for Drug and Firearms OffensesRead the Press Release
OKLAHOMA CITY – Earlier this week, MARCUS KELLY SMITH, 38, of Oklahoma City, was sentenced to serve more than 15 years in federal prison for conspiracy to possess with intent to distribute fentanyl and possession of a firearm after a felony conviction, announced United States Attorney Robert J. Troester.
On July 5, 2022, a federal grand jury returned a two-count Indictment against Smith. Count 1 charged Smith with drug conspiracy and Count 2 charged him with felon in possession of a firearm. On August 2, 2022, a Superseding Information charged Smith with one count of drug conspiracy and one count of felon in possession of a firearm. On November 1, 2022, Smith pleaded guilty to both counts of the Superseding Information.
At a sentencing hearing on March 8, 2023, U.S. District Court Judge Joe Heaton sentenced Smith to serve 188 months in federal prison. In support of his sentence, Judge Heaton cited, among other things, the serious nature of the offense and Smith’s criminal history. Judge Heaton also ordered that upon release from prison, Smith must serve four years of supervised release. Smith has been in federal custody since his arrest on June 28, 2022.
Public records reflect that Smith had a lengthy criminal history. His criminal convictions include: Oklahoma County District Court cases CF-2012-5752 – aggravated assault and battery; CF-2012-297 – possession of a firearm after felony, possession with intent to distribute, and pointing a firearm; CF-2011-4239 – possession of controlled dangerous substance and assault and battery; CF-2011-4023 – possession of controlled dangerous substance; CF-2004-6983 – possession of a firearm after felony and possession of controlled dangerous substance; CF-2004-4415 – possession of a firearm after felony and pointing a firearm; CF-2004-1115 – possession of controlled dangerous substance with intent to distribute and acquiring drug proceeds; CF-2003-4500 – possession of controlled dangerous substance with intent to distribute; and Pottawattamie County District Court case CF-2000-67 – robbery with a dangerous weapon.
This case was the result of an investigation by the FBI Oklahoma City Field Office and the Oklahoma City Police Department, with assistance from the Oklahoma County District Attorney’s Office. Prosecuted by Assistant U.S. Attorneys Wilson D. McGarry and D.H. Dilbeck, the case is part of Project Safe Neighborhoods, a Department of Justice program to reduce violent crime. In October 2017, the Department announced the reinvigoration of Project Safe Neighborhoods and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001.
This case is also part of “Operation 922.” Operation 922 is the Western District of Oklahoma’s implementation of Project Safe Neighborhoods, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. “Operation 922” prioritizes prosecution of federal crimes connected to domestic violence.
For more information about Project Safe Neighborhoods, please visit https://justice.gov/psn and https://justice.gov/usao-wdok.
Reference is made to court filings for further information.
New Orleans Woman Charged for Theft of More Than $88,000 in Government FundsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that ALINE JAMES, a/k/a “Aline Foster” (“JAMES”), age 50, of New Orleans, Louisiana, was indicted on March 10, 2023 for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to the indictment, beginning in or around September 2012, and continuing until in or around December 2020, JAMES collected approximately $88,298.00 in Social Security Administration and Coronavirus Aid, Relief, and Economic Security Act (“CARES ACT”) funds to which she was not entitled.
If convicted, JAMES faces a maximum penalty of ten (10) years of imprisonment, up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Social Security Administration, Office of the Inspector General. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni of the Financial Crimes Unit.
New Hope Man Sentenced for His Role in Multi-Million-Dollar Kickback and Health Care Fraud CasesRead the Press Release
HUNTSVILLE, Ala. – A federal judge has sentenced another individual charged in a series of related cases involving multi-million-dollar health care fraud conspiracies, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples, and U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Tamala E. Miles.
Last Friday, Chief United States District Court Judge L. Scott Coogler sentenced John Hornbuckle, 53, of New Hope, to 80 months in prison. In November 2022, Hornbuckle pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to receive kickbacks. Between 2012 and 2018, Hornbuckle owned QBR. According to the plea agreement in Hornbuckle’s case, QBR billed insurers millions of dollars for electro-diagnostic testing that its technicians performed, regardless of whether there was a medical need for them. Hornbuckle caused QBR to pay medical providers a per-patient fee for the tests they ordered from QBR that were reimbursed by insurers, including Medicare and other government health care programs. The payments were disguised as hourly payments for the provider’s time and the time of the provider’s staff, but the provider was actually paid a fee per patient who received a test. Insurance programs paid more than nine million dollars for the medically unnecessary tests that QBR paid doctors to order.
Hornbuckle was also ordered to pay $9,192,005.20 in restitution, a fine of $250,000, and forfeiture of $176,449.19.
The case against Hornbuckle is related to several other cases that have resulted in convictions in the last year. Dr. Mark Murphy, 66, and his wife Jennifer Murphy, 66, both of Lewisburg, Tennessee, were sentenced last week. Brian Bowman, 41, of Gadsden, has pleaded guilty to health care fraud conspiracy. According to Bowman’s plea agreement, Bowman marketed QBR’s electro-diagnostic testing to medical providers, and was paid a fee for each test they ordered. Bowman received nearly a million dollars in fees from QBR. James Ewing Ray, 52, of Gadsden, has pleaded guilty to health care fraud and kickback conspiracy for his role as a sales rep who marketed QBR’s scheme to medical practices and received kickbacks per test ordered. John Alan Robson, 40, of Trussville, was indicted last month on charges of health care fraud conspiracy, kickback conspiracy, and kickbacks. According to his indictment, Robson was a sales rep who marketed to doctors’ offices various health care products and services, including prescription drugs from specialty pharmacies, durable medical equipment (DME), and electro-diagnostic testing. Robson was paid fees for the prescriptions, DME, and tests he generated from doctors.
Brian Bowman and James Ray are awaiting sentencing.
The FBI and HHS-OIG investigated the cases. Assistant U.S. Attorneys J.B. Ward and Don Long prosecuted the cases.
Nebraska Woman Charged with Assaulting, Resisting, and Impeding a Federal OfficerRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Winnebago, Nebraska, woman for two counts of Assaulting, Resisting, and Impeding Federal Officers.
Trista Whitewater, age 33, was indicted in November of 2022. She appeared before U.S. Magistrate Judge Veronica L. Duffy on March 10, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 20 years in federal prison and/or a $250,000 fine, three years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 8, 2022, Whitewater, who was booked at the Bureau of Indian Affairs (BIA) Yankton Sioux Correctional Facility in Wagner, South Dakota, for several tribal charges, assaulted a Lead Correctional Officer and a Correctional Officer.
The charges are merely accusations and Whitewater is presumed innocent until and unless proven guilty.
The investigation is being conducted by the BIA. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Whitewater was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for May 16, 2023.
Middle School Students Take Field Trip to U.S. Attorney’s Office to Learn Importance of Choosing WiselyRead the Press Release
MIAMI – Students from BridgePrep Academy of North Miami Beach took a field trip to the U.S. Attorney’s Office for the Southern District of Florida to learn how to make better choices and participate in a courtroom mock trial.
The seventh graders gathered in the media room where Law Enforcement Coordination and Community Outreach Section Chief J.D. Smith took them through presentations focused on the value of making smarter choices and having a plan for success.
“You should know every step you need to take to reach your goals,” said Smith. “Don’t be afraid to fail big. Think outside of the box and remember that a goal without a plan is just a wish.”
To drive home the point of making smarter choices Smith played prisoner testimonials which focused mostly on regret.
“I ruined my life,” said one prisoner. “I ruined it.”
Another testimonial showed a prisoner pleading for people to take his message seriously.
“I killed someone’s father,” he said. “This is my now moment but I took away that man’s now.”
The messages seemed to hit home with the students, especially when they were told where the Federal Detention Center was located.
“There are about 600 male inmates and 100 female inmates in the building next door,” said Smith. “You have a choice to be a good person or a bad person. Every day it starts all over again. Don’t let bad things determine your path in life.”
From there the students filled a federal judges empty courtroom where they played the roles of prosecutor, defense attorney, and bailiff, among others. Assistant U.S. Attorney Michael Gilfarb played the role of judge as students argued a case involving the wrongful death of a university student who died during flag football practice.
Both the prosecutors and defense team made great cases, but in the end the evidence was too strong. The defendant was found guilty of negligent homicide.
Students said they enjoyed seeing what it was like to be on trial while others said it was a life changing experience. Many said they’d like to do it again. That’s what Smith likes to hear as he loves interacting with young people, trying to put them on the right path.
“These activities can be fun—and many times are—but I’m always focused on trying to help these students be the best citizens they can be,” he said. “As a former Detroit Police Supervisor, I’ve seen how tempting it can be to get in with the wrong crowd. One mistake can alter a life for good. If I can help change one person’s outlook then it’s worth it.”
Law Enforcement Coordination and Community Outreach Section Chief J.D. Smith talks to BridgePrep Academy of North Miami Beach students about the importance of making good decisions. Students also participated in a mock trial during this field trip.
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Michigan Nonprofit Organizations Agree to Pay $225,887 to Settle False Claims Act Allegations Relating to Improper Receipt of Paycheck Protection Program LoansRead the Press Release
Two Michigan nonprofit organizations, the Michigan Education Association (MEA) and the Michigan Education Special Services Association (MESSA), have agreed to settle allegations that the organizations violated the False Claims Act (FCA) by applying for and obtaining loans under the Paycheck Protection Program (PPP) for which they knew or should have known they were ineligible.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to certain small businesses and other entities struggling to pay employees and other business expenses. Under the rules applicable at the time of the loans covered by today’s settlement, certain nonprofit organizations were not eligible to receive a PPP loan.
In 2020, MEA, a 501(c)(5) nonprofit labor union organization, and MESSA, a 501(c)(9) voluntary employees’ beneficiary association, each applied for and obtained a PPP loan. The United States contended that these organizations knew or should have known they were ineligible to receive their PPP loans, and that they caused the Small Business Administration (SBA) to pay lender fees to the bank that processed the loans. In connection with the settlements announced today, MEA will pay $115,265 and MESSA will pay $110,622 to the United States resolve these allegations. MEA and MESSA repaid their loan proceeds in full in December 2020.
“The PPP was intended to provide critical economic relief to eligible small businesses and other entities,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement reflects the department’s commitment to ensuring the integrity of the PPP loan process.”
“Those who violate the False Claims Act by fraudulently receiving SBA pandemic program funds meant for eligible small businesses will be held accountable,” said Special Agent in Charge Sharon Johnson of SBA OIG’s Central Region. “Today’s settlements send a strong message that those responsible will be held accountable. I want to thank the Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the FCA, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit was filed by the Mackinac Center for Public Policy and is captioned U.S. ex rel. Mackinac Center for Public Policy v. Michigan Education Association, et al., Dkt. No. 1:22-cv-00028-HYJ-PJG (W.D. Mich.). Under the False Claims Act, private citizens can sue on behalf of the government and share in any recovery. The Mackinac Center for Public Policy’s share of the settlement has not been determined.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Western District of Michigan, with assistance from the SBA’s Office of General Counsel and the SBA Office of the Inspector General.
This matter was handled by Trial Attorney Evan J. Ballan of the Civil Division and Assistant U.S. Attorney Andrew J. Hull of the Western District of Michigan.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
Miami Art Dealer Sentenced to 51 Months in Prison for Smuggling IvoryRead the Press Release
MIAMI – A federal judge in Miami has sentenced Eduardo Ulises Martinez (“Martinez”), a local art dealer, to 51 months in prison for illegally smuggling sculptures containing ivory, and for obstructing justice.
Ivory is a form of wildlife that comes from various mammals, including elephants, walruses, hippopotamuses, warthogs, narwals, and whales. Ivory must be declared to the United States Fish and Wildlife Service (USFWS) and made available for inspection prior to its importation and exportation from the United States.
After a seven-day trial, a federal jury found Martinez guilty on 9 counts of smuggling items containing ivory in and out of the United States without declaring it or making the ivory available for inspection by the USFWS, and one count of obstruction of justice for soliciting false evidence, documents, and testimony from a witness during the ongoing investigation.
Martinez purchased numerous sculptures containing ivory from auction houses located in Spain, England, Canada, and Australia, later importing the sculptures into the United States for commercial purposes using various methods of concealment. On some occasions, Martinez dismantled the sculptures into their ivory, bronze, and marble components and later shipped the individual components in different boxes to evade detection from law enforcement. Martinez also shipped the components to various addresses that were not associated with his business or his home. On other occasions, Martinez used third parties located in Spain and England to collect or receive the sculptures from auctions houses in Europe, creating the appearance that the sculptures would stay within the European Union, and thereafter directed the third parties to ship the ivory-containing sculptures to the United States. On another occasion, Martinez concealed the entry of ivory into the United States by packing the ivory components in his luggage. In every instance, Martinez, or others at Martinez’s direction, would fraudulently and falsely declare the contents of the shipping paperwork as bronze and marble, porcelain, bronze, or other false descriptions of the contents to evade inspection and declaration requirements.
Once the sculptures arrived in the United States, Martinez would fix any imperfections in them prior to offering them for sale at a significant mark up. In several instances, Martinez had new ivory parts carved for the illegally imported sculptures before offering them for resale.
Martinez sold sculptures containing ivory to buyers in other countries and facilitated the transportation of those sculptures, knowing that they were intended to be exported from the United States. Throughout the trial, the jury heard evidence via emails, messages, and audio files demonstrating that Martinez knew his actions were illegal, but he continued to engage in those actions for personal financial gain.
After Martinez was stopped at the Miami International Airport on September 8, 2021, and was caught with ivory in his luggage, Martinez removed illegally imported ivory sculptures from his showroom and obstructed law enforcement’s investigation by approaching a witness on various occasions, asking the witness to provide false evidence and testimony.
It was undisputed at trial that Martinez had never made a declaration of wildlife, including ivory, to the USFWS. In addition to the 51-month sentence, the federal district court ordered Martinez to pay a $20,000 fine, serve three years of supervised release following his prison term, and entered a criminal forfeiture order of various sculptures containing ivory.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Stephen Clark of the U.S. Fish & Wildlife Service (USFWS), Southeast Region, and acting Special Agent in Charge Michael E. Buckley, Homeland Security Investigations (HSI), Miami, announced the sentence.
USFWS and HSI Miami investigated this case. Assistant United States Attorneys Marty Fulgueira Elfenbein and Lindsey Lazapoulos Friedman prosecuted the case. Assistant United States Attorney Joshua Paster is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20137.
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Methamphetamine Traffickers Sentenced to Federal PrisonRead the Press Release
Saipan, MP – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that the United States District Court for the Northern Mariana Islands imposed the following sentences against defendants for Conspiracy to Possess Methamphetamine with the intent to Distribute, in violation of 21 U.S.C. §§ 846 and 841(a)(1), and Conspiracy to Maintain a Drug-Involved Premises, in violation of 21 U.S.C. §§ 846 and 856.
HUAISHU WANG (age 40) – convicted of Conspiracy to Possess Methamphetamine with the intent to Distribute, in violation of 21 U.S.C. §§ 846 and 841(a)(1), and sentenced to 188 months imprisonment, three years supervised release, 100 hours community service, and a $100 mandatory assessment.
HONGJIE LI (age 48) – convicted of Conspiracy to Possess Methamphetamine with the intent to Distribute, in violation of 21 U.S.C. §§ 846 and 841(a)(1), and sentenced to 57 months imprisonment, three years supervised release, 50 hours community service, and a $100 mandatory assessment.
YONGBING NI – (age 54), convicted of Conspiracy to Maintain a Drug-Involved Premises, in violation of 21 U.S.C. §§ 846 and 856, and sentenced to 10 months imprisonment, three years supervised release, and a $100 mandatory assessment.
These defendants were also ordered to report to a U.S. Immigration Officer for deportation proceedings as a condition of supervised release.
On May 3, 2022, HONGJIE LI claimed a package mailed from Canada to a private mail facility in Saipan. The package contained 858 grams of methamphetamine. LI transported the package to a residence, where she lived with HUAISHI WANG and YONGBING NI. After the package was delivered to the residence, federal and local law enforcement agents executed a search warrant and discovered the three co-defendants were working together to distribute methamphetamine across the island.
Inside the residence, agents discovered 214 grams of methamphetamine packaged in 46 baggies, an additional 15 grams of methamphetamine, digital scales, three BB-guns similar in appearance to semiautomatic 9mm and .45 caliber handguns, an Airsoft rifle similar in appearance to a 5.56mm rifle, and $68,408 in United States currency. The street value of the drugs was at least $540,000.
U.S. Attorney Anderson stated, “Our office is committed to aggressively prosecuting drug offenses in the CNMI. Substantial penalties apply to many of these crimes. Considering the effects of methamphetamine on our communities, we must make every effort toward deterrence and accountability.”
“Synthetic drugs, such as methamphetamine, are easy to manufacture, highly addictive, and responsible for the growing number of deaths in our communities,” said DEA Honolulu District Office Assistant Special Agent in Charge Victor Vazquez. “Individuals who seek to profit on these dangerous drugs and distribute them will be targeted and held accountable.”
This investigation was led by the Drug Enforcement Administration Los Angeles Field Division, Guam Resident Office, Saipan Post of Duty. The case was prosecuted by Albert Flores, Jr., and Garth Backe, Assistant United States Attorneys in the District of the Northern Mariana Islands
McKeesport Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
PITTSBURGH, PA - A former resident of McKeesport, Pennsylvania pleaded guilty in federal court to charges of violating federal narcotics and firearm laws, Acting United States Attorney Troy Rivetti announced today.
Raymar McKenzie pleaded guilty to two counts before United States District Judge J. Nicholas Ranjan. Specifically, McKenzie pled guilty to possession with intent to distribute fentanyl and crack, in addition to possession of a firearm in furtherance of that drug trafficking crime.
In connection with the guilty plea, the Court was advised that between August and September 2020, the Allegheny County Police Department (ACPD) conducted three controlled buy operations from defendant Raymar McKenzie. During each controlled buy, a third party called McKenzie from his known cellular phone number and purchased cocaine base. Following each controlled buy, McKenzie returned to a McKeesport residence in his black pickup truck. As a result, law enforcement applied for and obtained search warrants for the residence, McKenzie, and his vehicle.
On Sept. 18, 2020, law enforcement executed the search warrants. Law enforcement detained McKenzie during the search, and he was found in possession of $1,680.00. From an upstairs bedroom, officers located a cellular phone on a bed. Upon calling the number used to contact McKenzie during the controlled buy operations, the phone rang. A sweatshirt on the floor of that bedroom contained packaged cocaine base and a pair of keys that opened the black pickup truck operated by the defendant during the controlled buy operations. Next to the sweatshirt, officers observed a safe. While opening the safe, McKenzie notified officers that the safe contained fentanyl.
Following a waiver of his rights, McKenzie admitted that everything in the house was his and described the contents of the safe as including crack, fentanyl, and a black Ruger. In addition to the packaged drugs and firearm, the safe held a loaded .40 caliber extended magazine and $3,000.00.
Judge Ranjan scheduled sentencing for June 26, 2023, at 2:00 p.m. The law provides for a total sentence of life imprisonment, a fine of $2,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court remanded McKenzie to the custody of the US Marshals Service.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Allegheny County Police Department and the McKeesport Police Department conducted the investigation that led to the prosecution of McKenzie.
Maryland U.S. Attorney’s Office, Justice Department’s Civil Rights Division and the Consumer Financial Protection Bureau File Statement of Interest in Case Alleging Unlawful Appraisal DiscriminationRead the Press Release
Baltimore, Maryland – United States Attorney for the District of Maryland Erek L. Barron and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, along with the Consumer Financial Protection Bureau (CFPB) announced today that they filed a statement of interest to explain the application of the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA) to lenders relying on discriminatory home appraisals. The statement of interest was filed in Connolly, et al. v. Lanham, et al., a lawsuit currently pending in the U.S. District Court for the District of Maryland alleging that an appraiser and a lender violated the FHA and ECOA by lowering the valuation of a home because the owners were Black and by denying a mortgage refinancing application based on that appraisal.
“The requirement that applicants and homeowners be treated equally is not new,” said U.S. Attorney for the District of Maryland Erek L. Barron. “Appraisal bias is a serious and ongoing issue in this country, and it is critical that the United States ensures the proper construction and application of the Fair Housing Act and the Equal Credit Opportunity Act to hold appraisers and lenders accountable.”
“Discriminatory home appraisals are unlawful, perpetuate the racial wealth gap, and deny communities of color the benefits of homeownership,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When appraisers or lenders treat homebuyers or homeowners differently because of race, they violate federal law. The Justice Department is working to ensure an open and fair housing market by taking on appraisal bias, modern-day redlining, discriminatory loan pricing practices, and other forms of discrimination that may rear their ugly head at any stage of the home-buying process.”
“Lenders that discriminate against people seeking homeownership perpetuate inequities that prevent communities from thriving,” said CFPB Deputy Director Zixta Martinez. “CFPB's Statement of Interest filing with the Justice Department is one piece of our broader efforts to ensure fair and accurate appraisals in our residential mortgage markets.”
The Connolly lawsuit was filed by plaintiffs Nathan Connolly and Shani Mott, who sought a refinance loan for their home in Baltimore, Maryland. The plaintiffs allege that the appraiser, Shane Lanham, significantly undervalued their home at $472,000 because they are Black. They also allege that they told the lender, loanDepot.com, LLC (loanDepot), that the appraisal was discriminatory, but that loanDepot still denied the loan and retaliated against them. When their home was later evaluated by a different appraiser, the plaintiffs replaced their family photos with photos borrowed from white friends and colleagues and enlisted a white colleague to pose as the homeowner. This appraisal resulted in a valuation of $750,000 – an increase of almost 60%.
The defendants have moved to dismiss the case, and the plaintiffs have opposed the defendants’ motions. Through the statement of interest, the department and the CFPBaddress three legal principles incorrectly represented in loanDepot’s motion to dismiss. First, the statement sets out the appropriate pleading standard for disparate treatment claims under the FHA and ECOA. Second, the statement clarifies that it is illegal for a lender to rely on an appraisal that it knows or should know to be discriminatory. Third, the statement explains that a violation of § 3617 of the FHA does not require an underlying violation of another provision of the FHA. The motions to dismiss are currently pending before the court.
The FHA prohibits discrimination in housing on the basis of race, color, religion, sex, familial status (having one or more children under 18), nation origin and disability. ECOA prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection Act.
U.S. Attorney Erek L. Barron and Assistant Attorney General Kristen Clarke thanked Assistant U.S. Attorney Kimberly S. Phillips of the District of Maryland and Trial Attorney Nathan Shulock of the Justice Department’s Civil Rights Division, who handled the Government’s Statement of Interest.
More information about the Civil Rights Division and the laws it enforces is available at justice.gov/crt. More information about the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) is available at pave.hud.gov/.
Individuals may report housing discrimination to the Justice Department by calling 1-833-591-0291, emailing [email protected], or submitting a report online. Individuals also may report housing discrimination to Department of Housing and Urban Development by calling 1-800-669-9777 or filing a complaint online. In addition, individuals may report credit discrimination to the Consumer Financial Protection Bureau at 1-855-411-2372 or online.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and information on civil rights laws and resources, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/civil-rights.
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Leader of Waycross-area drug trafficking conspiracy sentenced to decades in federal prisonRead the Press Release
WAYCROSS, GA: The leader of a south Georgia fentanyl- and heroin-trafficking operation linked to drug overdose deaths has been sentenced to more than 20 years in federal prison.
Eric Lashawn Hayes, a/k/a “Pee Wee,” 39, of Blackshear, Ga., was sentenced to 262 months in prison after previously pleading guilty to Possession of a Firearm in Furtherance of a Drug Trafficking Crime, and Possession of Fentanyl with Intent to Distribute, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Lisa Godbey Wood also ordered Hayes to serve eight years of supervised release upon completion of his prison term.
There is no parole in the federal system.
“The investigation of Eric Hayes and his co-conspirators – including his three brothers – exposes the horrors of the growing fentanyl menace in the United States,” said U.S. Attorney Steinberg “An alarming number of overdoses and deaths drew attention to these drug dealers, and they are being held accountable for distributing poison throughout the Waycross area.”
Hayes was one of six defendants named in February 2021 in U.S.A. v. Hayes, et. al, an indictment targeting a drug distribution network in the greater Waycross area. The Pierce and Ware County Sheriff’s Offices initiated the investigation in July 2020 after multiple drug overdoses attributed to heroin and fentanyl, including three deaths. The Savannah Office of the U.S. Drug Enforcement Administration joined the investigation, which identified Hayes as a source of supply for the illegal drugs.
The investigation culminated in the indictments of the six defendants, all of whom have been sentenced after pleading guilty to felony charges. They include:
- Cyrlus LaShawn Hayes, a/k/a “Dubo,” 45, of Waycross, Ga., a brother of Eric Hayes, serving 120 months in federal prison after pleading guilty to Conspiracy to Possess with Intent to Distribute, and to Distribute, Fentanyl and Heroin;
- Davey Green, a/k/a “Little Dave,” 35, of Waycross, Ga., half-brother of Eric Hayes, sentenced to 58 months in prison after pleading guilty to Distribution of Fentanyl;
- Renalba Jamar Green, a/k/a “Reno,” 35, of Waycross, Ga., another half-brother, sentenced to 24 months in prison for using a cell phone to conduct illegal drug trafficking activity;
- Crystal Champagne, 34, of Waycross, Ga., serving 30 months in prison after pleading guilty to Distribution of Fentanyl; and,
- Preston Connor Luke, 27, of Blackshear, Ga., sentenced to three years’ probation for Distribution of Fentanyl.
“Fentanyl is 50 to 100 times more potent than morphine and 30 to 50 times more potent than heroin – the combination of these deadly substances has claimed many lives,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Because of the efforts of federal, state and local law enforcement, these defendants can no longer distribute these dangerous and potentially deadly substances.”
The case was investigated by the Savannah Office of the U.S. Drug Enforcement Administration, the Ware County Sheriff’s Office, the Pierce County Sheriff’s Office, and the Blackshear Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Marshals Service, and prosecuted for the United States by Assistant U.S. Attorney Frank M. Pennington II.
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Kenai Woman Sentenced to 10 Years for Drug Trafficking and Firearms PossessionRead the Press Release
ANCHORAGE – Cristina Lynn Rifredi was sentenced on March 9, 2023, was sentenced to 10 years in prison for federal drug trafficking and firearms charges.
According to court documents, Cristina Lynn Rifredi, 42, of Kenai, Alaska, sold over 60 grams of methamphetamine, 1 gram of heroin, and a 12-gauge shotgun to another person between November 21, 2019, and December 8, 2020. When law enforcement executed a search warrant on Rifredi’s vehicle and residence, they found she possessed 27 firearms, a silencer, and additional quantities of methamphetamine and heroin. Rifredi was charged with drug trafficking and firearms crimes by a federal grand jury in November 2021 and pleaded guilty in December 2022.
U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Alaska State Troopers (AST), and the Kenai Police Department (KPD) investigated the case.
Assistant U.S. Attorney Seth Brickey prosecuted the case.
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usao/ak/23-018
Justice Department and Consumer Financial Protection Bureau File Statement of Interest in Appraisal Discrimination CaseRead the Press Release
The Justice Department and the Consumer Financial Protection Bureau (CFPB) announced today that they filed a statement of interest to explain the application of the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA) to lenders relying on discriminatory home appraisals. The statement of interest was filed in Connolly, et al. v. Lanham, et al., a lawsuit currently pending in the U.S. District Court for the District of Maryland alleging that an appraiser and a lender violated the FHA and ECOA by lowering the valuation of a home because the owners were Black and by denying a mortgage refinancing application based on that appraisal.
“Discriminatory home appraisals are unlawful, perpetuate the racial wealth gap, and deny communities of color the benefits of homeownership,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When appraisers or lenders treat homebuyers or homeowners differently because of race, they violate federal law. The Justice Department is working to ensure an open and fair housing market by taking on appraisal bias, modern-day redlining, discriminatory loan pricing practices, and other forms of discrimination that may rear their ugly head at any stage of the home-buying process.”
“The requirement that applicants and homeowners be treated equally is not new,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Appraisal bias is a serious and ongoing issue in this country, and it is critical that the United States ensures the proper construction and application of the Fair Housing Act and the Equal Credit Opportunity Act to hold appraisers and lenders accountable.”
“Lenders that discriminate against people seeking homeownership perpetuate inequities that prevent communities from thriving,” said CFPB Deputy Director Zixta Martinez. “CFPB's Statement of Interest filing with the Justice Department is one piece of our broader efforts to ensure fair and accurate appraisals in our residential mortgage markets.”
The Connolly lawsuit was filed by plaintiffs Nathan Connolly and Shani Mott, who sought a refinance loan for their home in Baltimore. The plaintiffs allege that the appraiser, Shane Lanham, significantly undervalued their home at $472,000 because they are Black. They also allege that they told the lender, loanDepot.com LLC (loanDepot), that the appraisal was discriminatory, but that loanDepot still denied the loan and retaliated against them. When their home was later evaluated by a different appraiser, the plaintiffs replaced their family photos with photos borrowed from white friends and colleagues and enlisted a white colleague to pose as the homeowner. This appraisal resulted in a valuation of $750,000 – an increase of almost 60%.
The defendants have moved to dismiss the case, and the plaintiffs have opposed the defendants’ motions. Through the statement of interest, the department and the CFPB address three legal principles incorrectly represented in loanDepot’s motion to dismiss. First, the statement sets out the appropriate pleading standard for disparate treatment claims under the FHA and ECOA. Second, the statement clarifies that it is illegal for a lender to rely on an appraisal that it knows or should know to be discriminatory. Third, the statement explains that a violation of Section 3617 of the FHA does not require an underlying violation of another provision of the FHA. The motions to dismiss are currently pending before the court.
The FHA prohibits discrimination in housing on the basis of race, color, religion, sex, familial status (having one or more children under 18), national origin and disability. ECOA prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program or because an applicant has in good faith exercised any right under the Consumer Credit Protection Act.
More information about the Civil Rights Division and the laws it enforces is available at justice.gov/crt. More information about the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) is available at pave.hud.gov.
Individuals may report housing discrimination to the Justice Department by calling 1-833-591-0291, emailing [email protected], or submitting a report online. Individuals also may report housing discrimination to Department of Housing and Urban Development by calling 1-800-669-9777 or filing a complaint online. In addition, individuals may report credit discrimination to the Consumer Financial Protection Bureau at 1-855-411-2372 or online.