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Monday 6 March 2023
Davenport Man Sentenced to Federal Prison for Firearm ChargesRead the Press Release
DAVENPORT, IA – A Davenport man was sentenced on February 28, 2023, to 106 months in prison for possessing a firearm during and in relation to a drug trafficking crime and possessing a firearm as a felon.
According to court documents, the investigation into Darron Javon Mayo, 25, began when law enforcement found a car with multiple guns in it while clearing a parking lot before a Lil Durk concert in Moline. Law enforcement reviewed surveillance footage and recognized Mayo as one of the people associated with the car. One of the pistols had Mayo’s fingerprint on it.
A search warrant was then executed on Mayo’s residence in Davenport. During the search of Mayo’s residence, law enforcement found cocaine, Clonazolam, and more than 700 grams of marijuana. Officers also located a loaded firearm. As part of his plea, Mayo admitted to possessing the marijuana with the intent to distribute it in the Quad Cities area. Furthermore, Mayo admitted to possessing the firearm in furtherance of distributing and protecting his marijuana. Mayo was convicted of a felony in Illinois and was therefore prohibited from possessing firearms. Following his prison term, Mayo was ordered to serve five years of supervised release.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Davenport Police Department investigated the case.
Court Finds Gross Negligence, Orders Oil Company to Pay United States and State of California $65 MillionRead the Press Release
On March 2, the U.S. District Court for the Central District of California entered final judgment against HVI Cat Canyon Inc., formerly known as Greka Oil & Gas Inc., in a civil suit brought jointly by the United States, on behalf of the U.S. Environmental Protection Agency (EPA) and the U.S. Coast Guard, and by the State of California on behalf of the California Department of Fish and Wildlife (CDFW) and the California Regional Water Quality Control Board, Central Coast Region.
The United States and California filed the suit alleging that HVI Cat Canyon, which previously owned and operated multiple oil and gas production facilities in Santa Barbara County, California, was liable for:
- 12 oil spills into waters of the United States in violation of the Clean Water Act;
- 17 oil spills into waters of the state in violation of state law;
- Reimbursement of the federal and state governments’ costs of cleaning up the oil spills;
- Natural resource damages under state law for harm to fish, plant, bird, or animal life and habitat; and
- Numerous violations of federal Oil Pollution Prevention Regulations identified in 16 EPA inspections across 11 facilities.
The court’s judgment follows an earlier 65-page opinion dated Feb. 25, in which the court awarded the United States and California the full amount of civil penalties, response costs, and damages that they sought at trial.
“We applaud the court’s decision to hold HVI Cat Canyon responsible for the full extent of the harm they caused,” said Assistant Attorney General Todd Kim of the Justice Department’s Environmental and Natural Resources Division. “This outcome is a prime example of strong federal and state partnership and persistence in pursuing justice against a company that long flouted its compliance obligations.”
“This final judgment reflects EPA’s continued commitment to ensuring companies that operate oil and gas production facilities comply with federal clean water laws and prevent unnecessary oil spills,” said Regional Administrator Martha Guzman of EPA Pacific Southwest. “Holding companies responsible for failing to meet their environmental obligations is key to protecting our waterways and surrounding communities.”
“The California Department of Fish and Wildlife is committed to protecting our state’s pristine natural resources,” said CDFW Director Charlton H. Bonham. “Staff from our Office of Spill Prevention and Response work daily to prevent, prepare for and respond to oil spill incidents statewide. The collective efforts of state and federal regulators to hold this company accountable for the significant impacts they have caused is evidence of our dedication to fighting every day for the resources we hold in trust for all Californians.”
“HVI Cat Canyon, formerly GREKA, is being held accountable in their long history of multiple violations and on-going non-compliance across many agencies,” said Regional Water Board Chair Jane Gray. “This judgment is a testament to the multi-year efforts of agencies and the legal system’s ability to provide justice for egregious actions perpetrated against the environment.”
The court found that the 12 spills into waters of the United States, which occurred from 2005 through 2010, resulted from HVI Cat Canyon’s gross negligence. “Based on the totality of the circumstances, the spills evinced a pattern of reckless disregard for good oilfield industry practices, and a series of negligent acts or omissions by HVI concerning oil spill prevention, and pipeline and facility inspection and maintenance,” the court wrote. In total, the court found that the spills had discharged approximately 26,584 barrels of crude oil and produced water, a briny waste by-product of oil production. The court also ruled that HVI Cat Canyon had committed a total of 60 violations of the federal regulations at 11 facilities for a total of 86,842 days of violation.
Ultimately the court held HVI Cat Canyon liable to the United States for $40 million in civil penalties for the spills, $15 million in civil penalties for the violations of federal regulations, and $2.5 million in cleanup costs. The court also held HVI Cat Canyon liable to California for $7.7 million in civil penalties and nearly $200,000 in natural resource damages and cleanup costs.
The case is styled United States, et al. v. HVI Cat Canyon, Inc., formerly known as Greka Oil & Gas Inc., No. 2:11-cv-05097-FMO-SS (C.D. Cal.). The court’s order is available through the court’s website, www.cacd.uscourts.gov.
Co-Founder and Leader of a Violent Drug and Sex Trafficking Gang called the “Sevens,” Sentenced to Life Plus a Consecutive Ten YearsRead the Press Release
PHILADELPHIA, PA – United States Attorney Jacqueline C. Romero and announced today that Alexander Malave, 31, of Reading, Pennsylvania, co-founder and Top General of a gang he named the Sevens, was sentenced to lifetime imprisonment followed by a consecutive mandatory 10 years’ imprisonment.
Malave was one of 14 defendants charged with various offenses involving the violent acts of the Sevens gang, whose members represented other gangs such as the Gangster Disciples, Bloods, and Crips. Ten offenders pled guilty. Malave was convicted, along with Karvarise Person, 33; James Goode, 47 and Shaquile Newson, 29, by a jury on June 2, 2022, of offenses including conspiracy to participate in a racketeering enterprise; conspiracy to commit sex trafficking by force, fraud, and coercion, and of a minor; violent crime in aid of racketeering, including kidnapping and assault with a dangerous weapon; sex trafficking by force, fraud, or coercion; and discharging a firearm in the course of committing a violent offense - all arising from his leadership in in the “Sevens” gang, which took control over and operated out of a 50-room boarding house on South 4th Street in the City of Reading.
One trial witness testified that when the Sevens gang took over the boarding house, it was “like Russia invading Ukraine.” Malave was one of the gang’s most violence members. In the course of committing his violent offenses, he kidnapped, maimed, assaulted, imprisoned, and otherwise wreaked havoc and harm to those he encountered. For example, during one vicious attack, Malave grabbed a man from behind and savagely used a knife to slice him from ear to ear, causing him excruciating pain and permanent disfigurement. After he was sliced and maimed, the man was kept locked naked in a closet for three days, provided no food or water, during which time the Sevens gang members kept watch and discussed who would kill him. During the course of the three days, the man was also subject to additional beatings. On another occasion, Malave shot another individual in an attempt to demonstrate the Sevens gang’s power and control over the boarding.
“Today’s sentencing ensures the permanent end of Malave’s reign of terror over the City of Reading and the demise of the Sevens gang,” said U.S. Attorney Romero. “We will continue to partner with our local counterparts to bring the resources necessary to investigate, prosecute and dismantle violent gangs.
The sentencing of the “Seven’s” leader, Alexander Malave, to a lifetime in federal prison should serve as a warning to criminal organizations that perpetuate violence and terrorize our communities,” said HSI Philadelphia Special Agent in Charge William S. Walker. “HSI’s resolve to disrupt the abhorrent acts and to dismantle the criminal enterprises of gangs in order to restore safety to our community’s streets is and always will be absolute.”
"This Gang and its members were responsible for despicable criminal acts in our community," said John T. Adams, Berks County District Attorney. "Again, I would like to thank our Federal Partners for the collaborative effort with local authorities to dismantle this Criminal enterprise and for seeking Justice for the victims in this case. Hopefully, today's sentencing sends a message that this type of criminal conduct will not be tolerated in our community, and those that violate our Laws will receive significant penalties for their actions. "
“The sentencing of Alexander Malave to life in prison for his role as a leader in the Sevens gang will ensure that he will never again terrorize and prey on innocent victims like he did in the City of Reading,” said Reading Police Chief Richard A. Tornielli. “The Reading Police Department, with our partner law enforcement agencies, will continue to prioritize the investigation and dismantling of criminal organizations that conduct acts of violence in our city. I want to thank Homeland Security Investigations and the US Attorney’s Office for their hard work and collaboration on this and other cases that will continue to make the City of Reading a safer place.”
The case was investigated by Homeland Security Investigations and the Reading Police Department and is being prosecuted by Assistant United States Attorneys Sherri A. Stephan and Justin Ashenfelter.
City of Gloucester Enters into Agreement to Resolve Clean Water Act Violations Related to Discharge of Undertreated Sewage into Massachusetts BayRead the Press Release
BOSTON – The announcement of a consent decree with the City of Gloucester, Mass. resolves violation of the federal and state Clean Water Acts regarding the City’s water pollution control facility that discharges undertreated waste into Massachusetts Bay.
The settlement requires the City of Gloucester (City) to undertake a construction project to add secondary treatment to its water pollution control facility. Secondary treatment is a combination of physical and biological processes that break down many harmful elements in municipal sewage. The City has operated without secondary controls on its treatment plant pursuant to a waiver issued in 2001. EPA and the Massachusetts Department of Environmental Protection (MassDEP) more recently determined that water pollution data indicated that the waiver should not be renewed and that upgrading the City’s treatment plant to provide secondary treatment is needed. In response, under the proposed settlement the City agreed to proceed with the upgrades, an expected cost in excess of $150 million.
In 2022, EPA and MassDEP issued a new National Pollution Discharge Elimination System (NPDES) Permit to the City of Gloucester that included pollution limits which the current treatment plant cannot meet because the plant only provides primary treatment (clarification/settling and disinfection). Complying with the proposed consent decree, if entered by the federal court, will help ensure that Gloucester comes into compliance with the Clean Water Act.
“Fiercely protecting our environment is a civil and human rights issue. Ensuring that bodies of water are not contaminated with harmful toxins and pollutants remains a vital part of this work. This Consent Decree requires Gloucester to take significant steps to improve the quality of the water it discharges into Massachusetts Bay,” said United States Attorney Rachael S. Rollins. “The successful implementation of the Consent Decree will ensure a healthier environment for the residents of Gloucester and all of us in the Commonwealth. My office remains committed to fighting for healthier, cleaner and safer communities.”
“This settlement is the result of many years of work between EPA and our state and local partners to address sewage pollution from this community entering Massachusetts Bay. The work required under the proposed settlement will help result in cleaner and healthier water for overburdened communities, and a better-protected environment in nearby areas. Notably, this means Gloucester will be the final major city in the eastern U.S. to install secondary treatment at their wastewater treatment facilities. The timing of this is fortunate, as it is a great time to make investments in water treatment infrastructure thanks to funding assistance available in the Bipartisan Infrastructure Law that may help defray costs borne by local ratepayers,” said EPA New England Regional Administrator David W. Cash.
“The Clean Water Act requires controls to limit the harmful impacts of sewage discharges,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The settlement will ensure significant, long-term investment into the City’s water treatment infrastructure to safeguard the health of Massachusetts Bay.”
“We are grateful to our federal and municipal partners for working with us to improve the water quality, and thus the overall health, of Gloucester’s residents,” said Attorney General Andrea Joy Campbell. “These are necessary measures as we continue to ensure that residents, especially those in our coastal communities, live in a healthy and safe environment.”
The City of Gloucester has already provided an aggressive schedule to EPA and MassDEP for design and construction of secondary treatment. The City has proposed to complete design and bidding of the project by the end of 2024; complete construction of secondary treatment by the end of 2027; and achieved compliance with all permit limits by March 30, 2028.
Undertreated sewage from the City’s existing water treatment facility results in a variety of unauthorized discharges into Massachusetts Bay, including disease causing organisms and toxic pollutants.
The proposed consent decree is subject to a 30-day public comment period and court approval after it is published in the Federal Register. It is available at https://www.justice.gov/enrd/consent-decrees
U.S. Attorney Rollins; EPA Administrator Cash; AAG Kim and AG Campbell made the announcement today. Assistant U.S. Attorney Annapurna Balakrishna of Rollins’ Civil Division; Henry Friedman, Assistant Section Chief for the Department of Justice’s Environment and National Resources Division (DOJ-ENRD); Brian Donohue, Senior Trial Attorney for DOJ-ENRD; and Jeffrey Kopf, Senior Enforcement Counsel for EPA handled the matter.
More Information:
How EPA works to protect water by ensuring compliance with environmental laws and regulations: https://www.epa.gov/enforcement/water-enforcement
How municipalities manage wastewater: https://www.epa.gov/npdes/municipal-wastewater
Final Permit for the City and 301(h) decision: https://www.epa.gov/system/files/documents/2025-06/finalma0100625permit2-2022.pdf
Charleston Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – Larry Wayne Legg, 55, of Charleston, pleaded guilty today to conspiracy to distribute methamphetamine.
According to court documents and statements made in court, Legg admitted to obtaining quantities of methamphetamine from co-defendant Justin Allen Bowen over several months prior to December 5, 2022. Legg further admitted to selling the methamphetamine with co-defendant Kimberly Dawn Legg out of their Lotus Drive residence in Charleston. Larry Wayne Legg would typically weigh the methamphetamine for individual sales and Kimberly Dawn Legg would handle the money. The two shared a cell phone to arrange obtaining additional quantities of methamphetamine from Bowen.
On December 5, 2022, law enforcement officers searched the Lotus Drive residence and found approximately 1 pound of methamphetamine. Larry Wayne Legg admitted to receiving the methamphetamine from Bowen and further admitted that he intended to sell the methamphetamine with Kimberly Dawn Legg.
Larry Wayne Legg is scheduled to be sentenced on June 27, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
Bowen pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine on February 23, 2023. Bowen and Larry Wayne Legg were indicted along with Kimberly Dawn Legg, Jasper Wemh, Richard Allen Bowen, McKenzie Bowen, Nicholas Bradford Confere, and Stanley Aaron Burkes. The remaining defendants are scheduled for trial on April 25, 2023. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the Metropolitan Drug Enforcement Network Team (MDENT), the Charleston Police Department, the West Virginia State Police, and the Kanawha County Sheriff’s Office.
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorneys Jeremy B. Wolfe and Nowles Heinrich are prosecuting the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-4.
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Central Florida Man Pleads Guilty to Committing Almost $20 Million in FraudRead the Press Release
Orlando, FL – United States Attorney Roger B. Handberg announces that Nikesh Ajay Patel (38, formerly of Windermere) has pleaded guilty to an indictment charging him with 13 counts related to almost $20 million in fraud that he perpetrated while on federal pretrial release. Patel has pleaded guilty to one count of conspiracy to commit wire fraud, three counts of wire fraud, one count of conspiracy to commit money laundering, and eight counts of money laundering. He faces a maximum penalty of 30 years in federal prison for each count of conspiracy and wire fraud, and up to 20 years’ imprisonment for each money laundering count. His sentencing date has not yet been scheduled.
According to court documents, Patel, a Central Florida resident, was charged in 2014 by the U.S. Attorney’s Office in the Northern District of Illinois for a $179 million fraud scheme. He was arrested and released on bond. For the next several years, Patel claimed that he was cooperating with authorities and using his business skills to get funds to repay some of what he owed. In fact, Patel had devised a new scheme that netted him almost $20 million.
Patel’s new fraud scheme involved three parts. First, Patel fabricated fraudulent loan documents that falsely represented that a bank in Miami had authorized loans to be made to convert hotels in rural areas into assisted living facilities. Although the bank in Miami exists, it had never made any of the loans. The person who was listed as signing the loans (“Ron Elias”) was a fictitious identity used by Patel to perpetrate his conspiracy and scheme. Second, Patel applied to the United States Department of Agriculture (USDA) to guarantee the fake loans pursuant to its Business and Industry Guaranteed Loan Program. Third, after the USDA agreed to guarantee the fake loans, Patel sold the guaranteed portion of the fake loans to the Federal Agricultural Mortgage Corporation, also known as Farmer Mac. Patel executed the scheme on three occasions, receiving almost $20 million in proceeds. Patel used a portion of the funds from that scheme to pay some of his restitution, but he was saving much of it to flee the United States.
Patel’s sentencing in the Northern District of Illinois was set for January 9, 2018. Three days before that, he was arrested at the airport in Kissimmee. Patel had chartered a flight to Ecuador, where he intended to request political asylum and live off the proceeds that he had obtained from his new scheme. Instead, Patel’s bond was revoked and the U.S. Marshals Service transported him to the Northern District of Illinois. On March 6, 2018, Patel was sentenced to 25 years in federal prison for his case in the Northern District of Illinois.
This case was investigated by the Federal Bureau of Investigation and the U.S. Department of Agriculture, Office of Inspector General. It is being prosecuted by Assistant United States Attorney Michael P. Felicetta and United States Attorney Roger B. Handberg.
Bookkeeper Pleads Guilty to Embezzling $304,903 from Labor UnionRead the Press Release
Orlando, FL – United States Attorney Roger B. Handberg announces that Denise E. Kovacs (60, Clermont) has pleaded guilty to embezzlement. Kovacs faces a maximum sentence of five years in federal prison. Her sentencing is scheduled for June 21, 2023, before U.S. District Judge Wendy W. Berger.
According to court documents, Kovacs was the bookkeeper at Plumbers AFL-CIO Local 803, a labor union that represents plumbers and pipefitters in central Florida. During a nearly five-year period of employment, Kovacs stole $43,777 in cash from union dues and charged $261,126 in expenses on the union’s credit card. To conceal her theft, Kovacs altered internal business records which kept union officials in the dark about her ongoing embezzlement of funds.
This case was investigated by the Department of Labor, Office of Labor Management Standards. It is being prosecuted by Assistant United States Attorney Michael P. Felicetta.
Beaumont Man Sentenced to Federal Prison for Convenience Store RobberyRead the Press Release
BEAUMONT, Texas – A Beaumont man has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Jamar Byars, also known as Jamar Limbrick, 21, pleaded guilty on April 25, 2022, to Hobbs Act robbery and brandishing a firearm during a crime of violence and was sentenced to 117 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to court documents, on Oct. 14, 2021, law enforcement officers responded to a call regarding an armed robbery at the Food Basket located on North 4th Street in Beaumont. An assailant, later identified as Byars, selected an item and brought it to the register. Byars then pulled out a firearm and pointed it at the clerk and demanded money. The clerk hesitated and Byars responded by striking the clerk in the head with the pistol twice. Byars then removed the money from the register and fled the scene. Byars was indicted by a federal grand jury on Jan. 5, 2022.
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 Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Russell James.
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Bakersfield Man Pleads Guilty to Possessing a Firearm in Furtherance of Drug Trafficking at a Bakersfield MotelRead the Press Release
FRESNO, Calif. — Derrick Dewayne Gage, 41, of Bakersfield, pleaded guilty today to possessing a firearm in furtherance of a drug trafficking crime, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 23, 2022, law enforcement officers were on patrol at the Plaza Motel on Union Avenue in Bakersfield when they saw Gage inside a room with a firearm and what appeared to be drugs. The officers searched the room and seized a loaded Sarsilmaz 9 mm semi-automatic handgun as well as cocaine. Gage is prohibited from possessing firearms because he has prior felony convictions for domestic violence, participation in a criminal street gang, and sales of cocaine.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bakersfield Police Department. Assistant U.S. Attorneys Justin J. Gilio, Kimberly A. Sanchez, and Laurel J. Montoya are prosecuting the case.
Gage is scheduled to be sentenced on July 10, 2023, by U.S. District Judge Jennifer L. Thurston. Gage faces five years to life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Aurora Man Indicted for Firearms ViolationsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Timothy Taconi, age 69, of Aurora, has been indicted for dealing firearms without a license and possession of an unregistered firearm.
According to the indictment, from August 2020, through February 5, 2023, the defendant, not being a licensed dealer of firearms, engaged in the business of dealing in firearms. The defendant knowingly received and possessed a silencer, which is not registered to him in the National Firearms Registration and Transfer Record.
The defendant made his initial appearance before Magistrate Judge Scott T. Varholak on February 24, 2023.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Denver Division handled the investigation. Assistant United States Attorneys Kelly Churnet and Rebecca Weber are handling the prosecution.
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.
CASE NUMBER: 23-cr-00058
Ashburn Woman Convicted of $2.5 Million Pandemic FraudRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted an Ashburn woman today on charges of conspiracy, bank fraud, and money laundering.
According to court records and evidence presented at trial, Rose-Marie Nsahlai, 47, and her husband fraudulently obtained two Paycheck Protection Program (PPP) loans. The PPP was a program instituted by the U.S. Congress to help businesses affected by the coronavirus pandemic continue to pay salaries or wages to their employees. Nsahlai carried out the scheme in connection with two of her husband’s businesses by creating fraudulent payroll documentation for each business, and then submitting that documentation in support of the PPP loan applications. The fraudulent documentation represented that her husband’s businesses had dozens of employees with over $17 million of annual payroll in 2019, when in fact they had few, if any, employees.
In total, Nsahlai and her husband fraudulently obtained approximately $2,501,753 in loan proceeds, and they then spent those funds on items unrelated to any legitimate PPP-related expense. Those items included the down-payment on a 7,000-square-foot home in Leesburg. Nsahlai’s husband pleaded guilty to this scheme in 2021.
Nsahlai faces a maximum penalty of 30 years in prison when sentenced on July 19. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Kareem Carter, IRS Criminal Investigation Acting Special Agent in Charge of the Washington D.C. Field Office; Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services (HHS); Michael Serra, Acting Special Agent in Charge of the Office of Inspector General for the Federal Deposit Insurance Corporation (FDIC); and Amaleka McCall-Brathwaite, Eastern Region Special Agent in Charge for the Small Business Administration, Office of Inspector General (SBA-OIG), made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the verdict.
Assistant U.S. Attorneys Jordan M. Harvey and David A. Peters are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-234.
Sunday 5 March 2023
Readout of Assistant Attorney General Kristen Clarke’s Trip to Selma, AlabamaRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division traveled to Selma, Alabama, over the weekend to commemorate the 58th anniversary of Bloody Sunday and meet with local organizations about the Justice Department’s commitment to civil rights and racial justice.
This morning, Assistant Attorney General Clarke spoke at the Martin and Coretta King Unity Breakfast at Wallace Community College in Selma, Alabama, reflecting on the painful history of Bloody Sunday and enumerating the Justice Department’s recent enforcement work to defend the civil rights of all people.
She said, “To quote Dr. King: ‘Selma, Alabama, became a shining moment in the conscience of man. If the worst in American life lurked in its dark streets, the best of American instincts arose passionately from across the nation to overcome it.’ The Civil Rights Division at the Justice Department is driven by that same belief. We are committed to defending the civil rights of all people in our country.” Read her full remarks here.
Later that morning, she spoke at a worship service hosted by the historic Brown Chapel African Methodist Episcopal Church. She said, “John Lewis may not be with us today, but … we all know that he fought the good fight. Today, our charge – indeed our sacred mission – is to pick up the baton that he has handed us and continue the fight for justice. The commemoration of Bloody Sunday is a moment to redouble our efforts to ensure that every American has voice in our democracy…” Read her full remarks here.
In the afternoon, Assistant Attorney General Clarke crossed the Edmund Pettus Bridge with a delegation of U.S Attorneys and hundreds of people, including civil rights leaders, distinguished clergy, elected officials and residents of Alabama.
On Monday, Assistant Attorney General Clarke will travel to Montgomery, Alabama, to meet with the U.S. Attorneys of the Attorney General’s Advisory Committee Civil Rights Subcommittee, the Equal Justice Initiative, and other civil rights stakeholders.
Assistant Attorney General Kristen Clarke speaks at the Martin and Coretta King Unity Breakfast. Assistant Attorney General Kristen Clarke speaks at the Sunday Morning Worship Service hosted by Brown Chapel African Methodist Episcopal Church.
Assistant Attorney General Kristen Clarke and U.S. Attorneys from across the country. Districts represented: Massachusetts, Connecticut, New Jersey, South Carolina, Colorado, Nevada, Montana, Idaho, South Dakota, 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 the Southern District of West Virginia.
Friday 3 March 2023
Wilkes-Barre Brothers Sentenced to 188 Months’ Imprisonment Each for Running A Fentanyl and Cocaine Trafficking Conspiracy That Resulted in DeathRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge Robert D. Mariani sentenced brothers Jose Raymer Tejeda, age 38, and Edwin Tejeda, age 32, to 188 months of imprisonment each, for running a fentanyl and cocaine trafficking conspiracy. Both men were residents of Wilkes-Barre, Pennsylvania, prior to being incarcerated on the instant offenses.
According to United States Attorney Gerard M. Karam, the Tejeda brothers previously pleaded guilty to conspiring to distribute cocaine and 400 grams and more of fentanyl, which resulted in death. The Tejeda brothers operated the conspiracy to distribute significant quantities of fentanyl and cocaine in the Wilkes-Barre region and elsewhere, between approximately January 2016 and February 2020. On September 19, 2019, James Garris, Jr., a drug dealer in the Tejeda brothers’ drug trafficking organization, distributed fentanyl to James Tindol, Jr., who subsequently distributed the fentanyl to an individual identified as A.V. Shortly after ingesting the fentanyl, A.V. overdosed and died.
In addition to Edwin Tejeda and Jose Raymer Tejeda, five other former Luzerne County men associated with their drug trafficking organization have been charged and convicted in the broader investigation, for various fentanyl, cocaine, and tramadol trafficking offenses, including fentanyl trafficking that resulted in death:
- Emilio Tejeda, age 33, a third brother, formerly of Wilkes-Barre, Pennsylvania, was sentenced to 57 months of imprisonment after pleading guilty to conspiring to distribute fentanyl;
- James Tindol, Jr., age 38, formerly of Nanticoke, Pennsylvania, was sentenced to 120 months of imprisonment after pleading guilty to distributing fentanyl that resulted in death;
- James Garris, Jr., age 52, formerly of Wilkes-Barre, Pennsylvania, was sentenced to 168 months of imprisonment after pleading guilty to distributing fentanyl that resulted in death;
- Kearon Brinson, age 41, formerly of West Nanticoke, Pennsylvania, was sentenced to 41 months of imprisonment after pleading guilty to conspiring to distribute fentanyl and marijuana; and
- Lamont Hubbard, age 50, formerly of Plymouth, Pennsylvania, was sentenced to a time served term of approximately 26 months after pleading guilty to conspiring to distribute fentanyl and marijuana.
As part of the sentencings, Judge Mariani ordered forfeiture of over $25,000, and various firearms, ammunition, and property seized during the investigation.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Luzerne Country Drug Task Force, and the Kingston Police Department. Assistant U.S. Attorney Phillip J. Caraballo prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Wichita Falls Fentanyl Trafficker Sentenced to 17 ½ Years Following Fatal OverdoseRead the Press Release
A Wichita Falls drug dealer who sold fentanyl to 27-year-old who suffered a fatal overdose was sentenced today to more than 17 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Lionel DeSaun Henderson, 33, and his former girlfriend, Shameka Tanee Mason, 29, were first charged in July. Mr. Henderson pleaded guilty in November 2022 to possession with intent to distribute a controlled substance and was sentenced Friday by U.S. District Judge Reed O’Connor to 210 months in federal prison. Ms. Mason pleaded guilty in August 2022 to conspiracy to possess with intent to distribute a controlled substance and was sentenced in December to 24 months in federal prison.
In court documents, the pair admitted they knowingly sold counterfeit oxycodone pills laced with fentanyl to an individual who later sold them to his 27-year-old cousin, J.D.K. J.D.K. split the drugs with his coworker. On June 12, 2020, both J.D.K. and his coworker overdosed; the coworker received medical attention and recovered, but J.D.K. died of drug toxicity.
During an interview at a Denton hospital, the coworker told investigators that he and J.D.K. split what appeared to be a 30mg oxycodone tablet. He said some of the remaining pills were stored at J.DK.’s home in Graham, Oklahoma. Agents searched the bedroom and recovered one round blue tablet marked M/30, three green rectangle tablets marked S/90/3, and one pink capsule with illegible markings. The blue M/30 – which appeared identical to brand name oxycodone – instead tested positive for butyryl fentanyl.
Agents then cultivated a confidential source who identified Lionel Henderson as the source of the blue M/30s. He went through Mr. Henderson’s girlfriend, Shameka Mason, to arrange a meeting with an undercover agent at Ms. Mason’s residence in Wichita Falls. On June 25, agents met with Mr. Henderson and Ms. Mason and purchased five M/30 tablets, which later tested positive for fentanyl and acetaminophen.
They then executed a search warrant of Mr. Henderson’s home, where they recovered 497 blue m/30s that later tested positive for fentanyl and acetaminophen, 1,035 multicolored tablets that later tested positive for ecstasy, and multiple firearms, including one that was stolen.
A month later, agents interviewed Ms. Mason, who admitted that she and Mr. Henderson had been dealing illicit substances in December 2018. They began with alprazolam, or “bars,” then escalated to ecstasy, and later to M/30s, which she called “percs,” in December 2019. She claimed she did not know where Mr. Henderson obtained the pills, but admitted they sold the pills for $25 apiece.
In plea papers, Mr. Henderson admitted that he had been selling fentanyl-laced counterfeit pills since March 2020.
The Drug Enforcement Administration’s Dallas Field Division, the Carter County Sheriff’s Office, the Oklahoma State Bureau of Investigation, and the Oklahoma City Medical Examiner’s Office conducted the investigation. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
United States Obtains Permanent Injunctions and Civil Penalties in Actions against California, Georgia, and Utah Distributors of Essential Oils and Nutritional SupplementsRead the Press Release
The Justice Department, together with the Federal Trade Commission (FTC), today announced the entry of stipulated orders for permanent injunction and civil penalty judgments against three distributors in relation to their allegedly deceptive COVID-19 claims made when marketing essential oils and nutritional supplements.
Tina Wong, a pediatrician based in California, Eliza Johnson Bacot, a nurse practitioner based in Georgia, and Lauren Busch, a former registered nurse based in Utah, each agreed to pay $15,000 in civil penalties and to permanent injunctive relief to resolve allegations involving deceptive COVID-19 claims made in connection with their marketing of essential oils and nutritional supplements. The stipulated orders resolve lawsuits the government filed in the U.S. District Courts for the Central District of California (Wong), Northern District of Georgia (Bacot), and District of Utah (Busch).
According to the court filings, the defendants are or were distributors for doTERRA International, LLC, a Utah-based multi-level marketing company that sells essential oils, supplements, and other products. The government alleged that, in public webinars that took place in January 2022, each defendant represented that products promoted and offered for sale prevent, reduce the risk or severity of, or cure COVID-19 and long-haul COVID-19 and counteract purported negative effects of COVID-19 vaccinations. Among the many deceptive claims that the government alleged that defendants made were: that the company’s chewable products help prevent children from contracting COVID-19 (Wong); that inhaling essential oils inhibit spike proteins (Busch) and viral replication (Bacot); that certain essential oils prevent the binding of the virus to human cells and help prevent one from contracting COVID-19 (Wong); that certain of the company’s products minimize inflammation from long-haul COVID-19 (Busch); and that the company’s supplements reduce purported negative health effects of COVID-19 vaccinations (Busch). The government alleged that no published report of any well-controlled human clinical study substantiates defendants’ COVID-19-related claims.
The COVID-19 Consumer Protection Act, enacted in December 2020, makes it unlawful, for the duration of the COVID-19 public health emergency, to engage in a deception in commerce associated with the treatment, cure, prevention, mitigation, or diagnosis of COVID 19. Persons who violate the COVID-19 Consumer Protection Act may be subject to civil penalties, injunctive relief, and other remedies available under the Federal Trade Commission Act.
The stipulated orders bar each defendant from making COVID-19 prevention, treatment, or cure claims for any product or service, except for claims specifically approved by the Food and Drug Administration. Further, the orders require that any disease treatment, mitigation, or cure claims that each defendant makes in connection with the marketing of any food, drug, or dietary supplement be supported by a randomized, double-blind, and placebo-controlled human clinical trial and that competent and reliable scientific evidence substantiate other health benefit and efficacy claims that each defendant makes when promoting or selling any food, drug, or dietary supplement. Each defendant also agreed to be enjoined from misrepresenting the results of any study regarding the efficacy of a food, drug, or dietary supplement.
“The Department of Justice remains vigilant in its efforts to stem the deceptive promotion of supposed COVID-19 treatments that have no proven benefits in combatting the disease,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue working with our law enforcement and agency partners to stop those who seek financial gain by peddling unproven cures for COVID-19.”
The Federal Trade Commission (FTC) referred these cases and the stipulated orders to the Department of Justice. The cases were handled by attorneys in the Civil Division’s Consumer Protection Branch, including Senior Litigation Counsel Christina Parascandola and Trial Attorney Zachary Dietert and Assistant Director Gabriel H. Scannapieco, in conjunction with attorneys at the FTC’s Bureau of Consumer Protection/Division of Advertising Practices.
The claims made in the complaints are allegations that the United States would have to prove if the cases had proceeded to trial.
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 actors and assists agencies tasked with administering relief programs to prevent fraud by, 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.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at https://www.ftc.gov.
United States Attorney’s Office Reaches Settlement with Lycoming County over Polling Place Access for VotersRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced a settlement with Lycoming County, Pennsylvania, under Title II of the Americans with Disabilities Act to improve physical accessibility at the county’s polling places for individuals who use wheelchairs and other mobility aids.
During the November 7, 2017, General Election, the United States Attorney’s Office, along with an architect from the Department of Justice, surveyed a portion of the county’s polling place locations. The survey resulted in a finding that many of the County’s polling locations contain barriers to vote for persons with disabilities. Title II of the ADA prohibits discrimination on the basis of disability by a state or local government in any of its programs or services, including its voting program.
Under the terms of the agreement, the county will use an evaluation form for each current and prospective polling place based on ADA architectural standards. The settlement requires the county to either relocate inaccessible polling places to new, accessible facilities, or to use temporary measures such as portable ramps, signs, traffic cones and doorbells, where appropriate to ensure accessibility on Election Day.
“Obstacles and barriers at polling locations for individuals with disabilities violate their fundamental right to vote,” said U.S. Attorney Gerard M. Karam. “This agreement demonstrates a working partnership between Lycoming County and the United States to ensure all disabled voters will be able to cast their ballots with their neighbors on Election Day.”
This investigation was handled by Assistant United States Attorney Michael J. Butler, the civil rights coordinator, with the assistant of the United States Department of Justice, Civil Rights Division (Disability Rights Section).
Those interested in finding out more about the ADA can access the ADA website at www.ada.gov. 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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United States and State of Wisconsin Secure False Claims Act Judgment of over $2.3 Million Against Substance Abuse Treatment ProviderRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that on March 2, 2023, United States District Judge Joseph P. Stadtmueller entered default judgment against Dr. Siamak Arassi and his clinic, Healing Corner, LLC, in the amount of $2,346,545.78 for violations of the False Claims Act.
As alleged in the United States and State of Wisconsin’s Joint Complaint in Intervention, Healing Corner and its sole practitioner, Dr. Arassi, caused the submission of false claims to the Wisconsin Medicaid Program by ordering excess Vivitrol, a medication used to treat alcohol dependance and prevent relapse to opioid dependance. Vivitrol is administered by a healthcare professional to patients monthly and reimbursed by Wisconsin Medicaid at approximately $1600 per injection. Despite prescribing, requesting refill, and receiving delivery of prescription Vivitrol from a specialty pharmacy, Healing Corner routinely did not administer the Vivitrol to the patient for whom it was prescribed, but instead, at the direction of Dr. Arassi, routinely ordered Vivitrol prescriptions in the name of former patients of Healing Corner, which were reimbursed by Wisconsin Medicaid. This practice generated a stockpile of excess Vivitrol, which Healing Corner administered to non-Medicaid patients for cash—often paying Healing Corner over $1000 out of pocket per month. Healing Corner also administered free samples of Vivitrol to Medicaid patients but still submitted claims to Medicaid for reimbursement.
“The U.S. Attorney’s Office prioritizes efforts to stop healthcare fraud and is committed to working with our federal, state, and local partners to protect health care program beneficiaries and the American taxpayers,” said U. S. Attorney Haanstad. “This judgment demonstrates our continuing efforts to combat violations of the False Claims Act.”
“Seeking reimbursement for medications that are not administered to the intended beneficiary for profit, undermines the integrity of medical professionals who we entrust to care for our most vulnerable populations,” said Mario M. Pinto, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General. “We will continue to work with our law enforcement partners to pursue medical professionals and others who defraud our Federal health care programs.”
“Those who cheat the Medicaid system must be held accountable,” said Attorney General Kaul. “Thank you to the investigators and prosecutors who have secured this significant judgment.”
The judgment includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Clarence Christiansen, the stepfather of a former Healing Corner patient. Healing Corner had ordered multiple Vivitrol prescriptions in the former patient’s name, which the former patient never requested and never received.
The resolution obtained in the matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Wisconsin, Office of Inspector General, U.S. Department of Health and Human Services and the Wisconsin Department of Justice. Assistant United States Attorneys Maura Flaherty and Michael Carter represented the United States in this matter.
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U.S. Attorney Rachael Rollins to Convene a Justice Department Delegation in Selma to Commemorate "Bloody Sunday" and the Passage of Voting Rights Act of 1965Read the Press Release
BOSTON – U.S. Attorney Rachael Rollins has announced that a Justice Department delegation of more than 30 U.S. Attorneys from across the country will travel to Selma and Montgomery, Alabama, in commemoration of the 58th Anniversary of “Bloody Sunday” and the passage of the Voting Rights Act of 1965. The delegation will meet with community and civil rights leaders while exploring some of the significant and historic civil rights institutions in Alabama from March 4-7, 2023. Rollins, who serves as Vice-Chair of the Attorney General Advisory Committee’s Civil Rights Subcommittee, along with Chair U.S. Attorney Nicholas Brown of the Western District of Washington, planned the trip and will lead the delegation.
“Walking the same steps as those who courageously marched across the Edmund Pettus Bridge in 1965 is a powerful and moving experience. I am incredibly honored to join my Justice Department colleagues in Selma,” said U.S. Attorney Rollins. “The beliefs that compelled those before us to march toward justice – that everyone should have equitable access to participatory democracy, fair and equal protection of the law, and the ability to live and thrive authentically and fully as themselves – are identical to what drives the work of my office and the Justice Department today.”
“As Vice-Chair of the Civil Rights Subcommittee, I have the privilege of furthering the Justice Department’s mission and priorities to uphold the rule of law and protect civil rights. I am proud of the exceptional work we have done in Massachusetts, including:
- Setting up a hotline (1-83-END-H8-NOW) to allow the public to report hate crimes or incidents in our Commonwealth;
- Being an inaugural District for United Against Hate – a Justice Department program that educates the public about their civil rights;
- Ensuring that every neighborhood and person in our Commonwealth has the benefit of constitutional, lawful, and effective policing; and
- Creating our District’s first Civil Rights and Human Trafficking Unit to investigate and prosecute hate crimes, including racially motivated church burnings in Springfield, multiple incidences of anti-Semitism and Islamophobia across our Commonwealth, race-directed violence and hatred in Quincy, and threats against Boston Children’s Hospital and other medical institutions for providing gender-affirming care.”
In addition to walking across the Edmund Pettus Bridge on Sunday, March 5th, the U.S. Attorneys will meet with Assistant Attorney General Kristen Clarke of Justice Department’s Civil Rights Division; distinguished jurist Myron Thompson, the first Black Assistant Attorney General for Alabama and the second Black federal judge in the state; and Bryan Stevenson, Founder and Executive Director of the Equal Justice Initiative, a nonprofit organization that provides legal representation to people who have been illegally convicted, unfairly sentenced, or abused in state jails and prisons. In addition, the U.S. Attorneys will visit The Johnson Institute in the Montgomery federal courthouse where many key civil rights cases were decided; The Legacy Museum, which provides a comprehensive history on the legacy of slavery; and The Memorial for Peace and Justice. These opportunities are some examples of the way U.S. Attorney Rollins has worked to bring learning out of the conference room and into the communities we have the privilege to protect and serve. She and U.S. Attorney Brown have also convened the Civil Rights Subcommittee for programs with the U.S. Holocaust Museum.
U.S. Attorneys from the following Districts have confirmed they will attend the Selma and Montgomery events: Massachusetts, Connecticut, New Jersey, South Carolina, Colorado, Nevada, Montana, Idaho, South Dakota, 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 the Southern District of West Virginia.
U.S. Attorney Rollins and U.S. Attorney Brown want to acknowledge the assistance of the Middle District of Alabama, who is hosting the delegation, as well as U.S. Attorney Breon Peace of the Eastern District of New York and former U.S. Attorney Cindy Chung of the Western District of Pennsylvania who provided valuable assistance.
U.S. Attorney Peter D. Leary Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
MACON, Ga. – United States Attorney Peter D. Leary announced that the U.S. Attorney’s Office for the Middle District of Georgia has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released this week.
The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022, memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
Two Men Charged with Carjacking, Illegal Possession of FirearmsRead the Press Release
MINNEAPOLIS – Two men have been indicted for carjacking and firearms violations, announced U.S. Attorney Andrew M. Luger.
According to court documents, on January 3, 2022, Jordan James Smith, 26, of Ramsey, used force, violence, and intimidation to steal a Nissan Juke. On February 3, 2022, Smith and his co-defendant Carson Thomas McCoy, 21, of Blaine, used force, violence, and intimidation to steal a Honda Accord. During the carjacking, Smith brandished a Glock 21, .45 caliber semi-automatic pistol with a red and black camouflage slide.
In November 2022, McCoy was charged in a federal criminal complaint after stealing a BMW sedan, breaking into a residence in Ham Lake, Minnesota, and stealing various items—including a firearm. McCoy was subsequently involved in a road rage incident and apprehended after fleeing law enforcement. A search of the vehicle revealed the firearm McCoy stole from the residential burglary and numerous other items of contraband.
Because Smith and McCoy both have prior felony convictions, they are prohibited under federal law from possessing firearms or ammunition at any time.
The indictment charges Smith with two counts of carjacking, one count of brandishing a firearm during a crime of violence, and one count of possessing a firearm as a felon. McCoy is charged with one count of carjacking and one count of possessing a firearm as a felon. Smith had his initial appearance today in U.S. District Court before Magistrate Judge Dulce J. Foster and was ordered to remain in detention pending further court proceedings. McCoy has been detained since the November 2022 federal complaint.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, the Blaine Police Department, the Hennepin County Violent Offender Task Force (VOTF), and the Anoka County Sheriff’s Office.
Assistant U.S. Attorney Jordan L. Sing is prosecuting the case.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Maui Men Sentenced for Racially Motivated Attack on White ManRead the Press Release
Two men from the Hawaiian island of Maui were sentenced in federal court for their racially motivated attack on C.K., a white man who was attempting to move into their neighborhood of Kahakuloa.
Kaulana Alo-Kaonohi, 33, was sentenced to 78 months in prison. Levi Aki Jr., 33, was sentenced to 50 months in prison.
“The defendants in this case nearly killed a man because they believed he did not belong in their neighborhood because of the color of his skin,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The law protects everyone in this country from racially motivated violence, and these sentences send a strong message that such violence will not be tolerated.”
“No one should suffer the violence, cover up and injustice the defendants wrought in this case,” said U.S. Attorney Clare E. Connors for the District of Hawaii. “All persons have a right to freedom from violence motivated by racial hatred, and the Department is committed to ensuring that right is protected in a court of law.”
“This horrific violence was motived by nothing other than hate,” said Special Agent in Charge Steven Merrill of the FBI Honolulu Field Office. “The FBI is committed to ensuring those who perpetrate such injustices are held accountable and that civil rights are respected and protected for all.”
At trial, the evidence showed that the victim, C.K., purchased a house in Kahakuloa and decided to move there with his wife and three daughters after his wife was diagnosed with multiple sclerosis and forced to retire. When C.K. arrived in Kahakuloa, he was harassed and threatened by various Kahakuloa residents who told him things like, “This is a Hawaiian village. The only thing coming from the outside is the electricity,” and “You don’t even belong in Hawaii.”
On Feb. 13, 2014, when C.K. was unpacking his belongings with his elderly uncle, the defendants, who had never met C.K. before, stormed onto his property and demanded that he pack his things and leave, threatening to “tie [him] up and drag [him]” and make him “go missing” if he did not comply. When C.K. replied that he owned the house, Alo-Kaonohi dragged his index finger along C.K.’s jaw and told him, “Your skin is the wrong f****** color.” Aki then picked up a roofing shovel and handed it to Alo-Kaonohi, who struck C.K. in the head with it, opening up a bloody wound on the back of C.K.’s head. Later on, after C.K. had already begun packing up his possessions, the defendants attacked him a second time. During that attack, Aki head butted C.K. and struck him in the face with the shovel a second time, giving C.K. a concussion and causing him to lose consciousness. When he came to, the defendants were kicking him in the side and broke two of his ribs. During the second attack, one of the defendants said, “no white man is ever going to live here.”
At the sentencing hearing, the government introduced evidence that just months after his unprovoked attack on C.K., Alo-Kaonohi committed a similar unprovoked attacked on a white-skinned man at the Steel Horse Saloon, a bar in Wailuku, Maui. In that attack, Alo-Kaonohi approached the victim from behind, tapped him on the shoulder and then punched him repeatedly in the head until he was unconscious. The victim sustained a large gash on his head that required seven staples to close and suffered permanent brain damage.
Assistant Attorney General Clarke, U.S. Attorney Connors and Special Agent in Charge Merrill made the announcement.
The FBI Honolulu Field Office conducted the investigation.
Assistant U.S. Attorney Chris Thomas for the District of Hawaii and Special Litigation Counsel Christopher J. Perras and Trial Attorney Tara Allison of the Civil Rights Division’s Criminal Section prosecuted the case.
Two Maui Men Sentenced for Racially Motivated Attack on White ManRead the Press Release
WASHINGTON – Two men from the Hawaiian island of Maui were sentenced in federal court for their racially motivated attack on C.K., a white man who was attempting to move into their neighborhood of Kahakuloa.
Kaulana Alo-Kaonohi, 33, was sentenced to 78 months in prison. Levi Aki Jr., 33, was sentenced to 50 months in prison.
“The defendants in this case nearly killed a man because they believed he did not belong in their neighborhood because of the color of his skin,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The law protects everyone in this country from racially motivated violence, and these sentences send a strong message that such violence will not be tolerated.”
“No one should suffer the violence, cover up and injustice the defendants wrought in this case,” said U.S. Attorney Clare E. Connors for the District of Hawaii. “All persons have a right to freedom from violence motivated by racial hatred, and the Department is committed to ensuring that right is protected in a court of law.”
“This horrific violence was motived by nothing other than hate,” said Special Agent in Charge Steven Merrill of the FBI Honolulu Field Office. “The FBI is committed to ensuring those who perpetrate such injustices are held accountable and that civil rights are respected and protected for all.”
At trial, the evidence showed that the victim, C.K., purchased a house in Kahakuloa and decided to move there with his wife and three daughters after his wife was diagnosed with multiple sclerosis and forced to retire. When C.K. arrived in Kahakuloa, he was harassed and threatened by various Kahakuloa residents who told him things like, “This is a Hawaiian village. The only thing coming from the outside is the electricity,” and “You don’t even belong in Hawaii.”
On Feb. 13, 2014, when C.K. was unpacking his belongings with his elderly uncle, the defendants, who had never met C.K. before, stormed onto his property and demanded that he pack his things and leave, threatening to “tie [him] up and drag [him]” and make him “go missing” if he did not comply. When C.K. replied that he owned the house, Alo-Kaonohi dragged his index finger along C.K.’s jaw and told him, “Your skin is the wrong f****** color.” Aki then picked up a roofing shovel and handed it to Alo-Kaonohi, who struck C.K. in the head with it, opening up a bloody wound on the back of C.K.’s head. Later on, after C.K. had already begun packing up his possessions, the defendants attacked him a second time. During that attack, Aki head butted C.K. and struck him in the face with the shovel a second time, giving C.K. a concussion and causing him to lose consciousness. When he came to, the defendants were kicking him in the side and broke two of his ribs. During the second attack, one of the defendants said, “no white man is ever going to live here.”
At the sentencing hearing, the government introduced evidence that just months after his unprovoked attack on C.K., Alo-Kaonohi committed a similar unprovoked attacked on a whiteskinned man at the Steel Horse Saloon, a bar in Wailuku, Maui. In that attack, Alo-Kaonohi approached the victim from behind, tapped him on the shoulder and then punched him repeatedly in the head until he was unconscious. The victim sustained a large gash on his head that required seven staples to close and suffered permanent brain damage.
Assistant Attorney General Clarke, U.S. Attorney Connors and Special Agent in Charge Merrill made the announcement.
The FBI Honolulu Field Office conducted the investigation.
Assistant U.S. Attorney Chris Thomas for the District of Hawaii and Special Litigation Counsel Christopher J. Perras and Trial Attorney Tara Allison of the Civil Rights Division’s Criminal Section prosecuted the case.
Two Individuals Sentenced for Kidnapping Resulting in DeathRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced two individuals, in separate but related cases, for kidnapping and conspiracy to kidnap a minor victim, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.
U.S. District Court Judge L. Scott Coogler sentenced Patrick Devone Stallworth, 42, and Derick Irisha Brown, 32, both of Birmingham, to life in prison. Stallworth and Brown were convicted in 2022 of one count of kidnapping and one count of conspiracy to kidnap a minor victim. The jury further found that the minor victim’s death resulted from the kidnapping.
According to court documents, on October 12, 2019, Birmingham Police Department responded to a report that a three-year-old girl was missing near the Tom Brown Village Housing Development in Birmingham, Alabama. Stallworth and Brown traveled in a Toyota Sequoia to the Tom Brown Village Housing Development on that day and kidnapped 3-year-old Kamille “Cupcake” McKinney. Her body was found on October 22, 2019.
“There is no greater responsibility for federal law enforcement than to investigate and prosecute those who commit senseless and horrendous acts of violence against young children.” U.S. Attorney Escalona said. “I want to personally thank the dozens of law enforcement members and community volunteers who assisted in both big and small ways in the investigation and bringing justice to the victim and her family.”
"While today’s sentencing can’t take away the pain or fill the void of loss for Kamille’s family, I sincerely hope there is some comfort in knowing those who committed this heinous crime have been brought to justice,” SAC Peeples said. “The FBI and its’ law enforcement partners are committed to bringing to justice those who seek to prey on our children, the most vulnerable members of our society”.
The Federal Bureau of Investigation and the Birmingham Police Department investigated the case, with assistance from the United States Marshals Service. Chief of the Criminal Division Lloyd C. Peeples and Assistant U.S. Attorneys Blake Milner and Brittany Byrd prosecuted the case.
Two Defendants Arrested for Stealing over $1 Million from ATMs Throughout the BronxRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Keechant L. Sewell, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a two-count Complaint today charging RAMDEO BALLIRAM and LEONARDO ORTIZ with bank theft and conspiracy to commit bank theft in connection with a years-long scheme in which they stole more than $1 million from Automated Teller Machines (“ATMs”) located in commercial establishments throughout the Bronx. BALLIRAM and ORTIZ were arrested today and will be presented before U.S. Magistrate Judge James L. Cott.
U.S. Attorney Damian Williams said: “As alleged, the defendants carried out a calculated scheme for years, stealing over a million dollars from ATMs in businesses throughout the Bronx. The relentless efforts of this Office and our law enforcement partners have finally put an end to the burglaries and thefts allegedly perpetrated by the defendants, and we will continue to be diligent in seeking justice for those affected by these crimes.”
NYPD Commissioner Keechant L. Sewell said: “For nearly two years, these defendants allegedly targeted multiple small businesses in the Bronx – burglarizing, ransacking, and stealing more than $1 million. Their brazen scheme undermined public safety throughout an entire borough, and today’s complaint is the next step toward holding them accountable for their crimes. Thank you to the U.S. Attorney’s Office for the Southern District of New York and all the NYPD investigators who worked together to bring charges in this case.”
According to the allegations contained in the Complaint:[1]
From at least in or about March 2021 through in or about January 2023, BALLIRAM, ORTIZ, and another individual (“CC-1”) engaged in a series of at least 23 burglaries of commercial establishments throughout the Bronx, in which they stole over $1 million from ATMs.
The burglaries followed a simple pattern: on each occasion, BALLIRAM, ORTIZ, and at least one other individual broke into Bronx small businesses — often bodegas or restaurants — in the middle of the night in order to steal all the cash from the ATM inside the store. In the course of stealing all the cash from the ATMs, BALLIRAM and ORTIZ also ransacked each store, stealing all the cash from the register, cigarettes, lottery tickets, alcohol, and digital video recording systems. BALLIRAM and ORTIZ stole tens of thousands of dollars in cash and valuables each time.
BALLIRAM and ORTIZ serially followed an armored car (“Bank Van-1”) as it refilled ATMs throughout the Bronx on behalf of a particular bank in order to determine which ATMs to target. Once BALLIRAM and ORTIZ learned which ATMs had been refilled, they then traveled to that location to break into the store and steal the cash. BALLIRAM and ORTIZ often used sophisticated tools to break into both the commercial establishments and the ATMs, as pictured below. On the occasion pictured below, BALLIRAM and ORTIZ stole more than $77,000 from the ATM:
On a few occasions, when they were unable to break into the ATM to steal the cash, BALLIRAM and ORTIZ stole the entire ATM. On at least one occasion, BALLIRAM and ORTIZ also used a stolen vehicle to carry out the scheme.
* * *
BALLIRAM, 44, of Queens, New York, and Ortiz, 52, of Queens, New York, are each charged with one count of conspiracy to commit bank theft, which carries a maximum potential sentence of five years in prison, and one count of bank theft, which carries a maximum potential sentence of 10 years in prison.
The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the NYPD, particularly Detectives of the Bronx Grand Larceny Squad, and the Special Agents and Investigative Analysts of the United States Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jackie Delligatti is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint constitutes only allegations, and every fact described herein should be treated as an allegation.
Tompkins County Medical Practice Pays $70,377 to Resolve False Claims Act and Controlled Substance Act Allegations Relating to Opioid and Benzodiazepine PrescriptionsRead the Press Release
SYRACUSE, NEW YORK – Dr. Howard Silcoff, and his medical practice, Dryden Family Medical Practice, PLLC agreed to pay $70,377 to resolve the United States’ allegations that they prescribed controlled substances for non-legitimate medical purposes, outside the usual course of a professional practice, thereby causing false claims to be submitted to the Medicare program.
The announcement was made by United States Attorney Carla B. Freedman, Naomi Gruchacz, Acting Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (HHS-OIG), and Special Agent in Charge Frank A. Tarentino III, U.S. Drug Enforcement Administration (DEA), New York Division.
Under the Controlled Substances Act and analogous New York State law, controlled substances may only be issued for a legitimate medical purpose by an individual practitioner acting in the usual course of a professional practice. Prescribers must regulate the dosage to that which is ordinarily recognized by the medical profession as sufficient for treatment. For the cost of a prescription to be reimbursable by Medicare, the prescription must be medically necessary, and comply with federal and state law. Dr. Silcoff admitted that for more than a decade, he prescribed an average of 35 morphine pills per day to a single patient. He also simultaneously prescribed to the same patient diazepam, also known as valium, which belongs to class of drugs known as benzodiazepines. Dr. Silcoff had been advised by the patient’s Medicare prescription drug carrier, that these medications were potentially contraindicated and that physicians should use caution when concurrently prescribing opioids, such as morphine, with benzodiazepines. Beginning in October 2017, Dr. Silcoff ordered drug urinalysis screens for this patient, which revealed that the patient was using cocaine and unprescribed oxycodone and was inconsistently taking the diazepam. Dr. Silcoff made no changes to the prescription regimen for 17 months, before ultimately initiating the patient on buprenorphine for opioid dependence, pain, and withdrawal symptoms.
This settlement resolves the United States’ allegations that the morphine prescriptions were excessive and dangerous to both the patient and the general public, especially in light of concurrent use of diazepam, un-prescribed oxycodone, and cocaine. Because multiple drug screens were negative for benzodiazepines, the United States further contends that a portion of the diazepam prescriptions had no legitimate medical purpose.
The $70,377 payment constitutes damages sustained by Medicare when it reimbursed for the prescriptions, and civil penalties under the Controlled Substances Act.
This case was investigated by HHS-OIG and DEA Syracuse District Office’s Diversion Group.
Assistant U.S. Attorney Christopher Moran represented the United States in this matter.
Three men admit to fatal smuggling event in MissionRead the Press Release
McALLEN, Texas - Two Mexican men and a U.S. citizen have admitted to their roles in an alien smuggling conspiracy which resulted in death, announced U.S. Attorney Alamdar S. Hamdani.
Francisco Javier Quintanilla-Alcocer, a 38-year old Mexican citizen, pleaded guilty today. Brandon Cibriano-Gonzalez, a 21-year-old Mexican citizen, and Orlando Andres Garcia, 23, Mission, had previously admitted their guilt in relation to the scheme.
On Oct. 22, 2021, Cibriano-Gonzalez acted as a brush guide to smuggle a group of 10 non-U.S. citizens from Mexico into the United States. He guided them to a pick-up location in Palmview. There, Quintanilla-Alcocer and Garcia arrived and were driving a Chevrolet Impala and Chevrolet Malibu, respectively. The aliens and Cibriano-Gonzalez loaded into the vehicles and left the scene. Shortly thereafter, law enforcement attempted to conduct a traffic stop, but both vehicles failed to yield and a high-speed chase ensued.
Garcia turned his vehicle in an attempt to divert law enforcement, while Quintanilla-Alcocer continued to accelerate. Quintanilla-Alcocer eventually turned onto a dirt road in Mission where the Chevrolet Impala rolled and crashed into a homeowner’s fence. Authorities located a total of seven individuals on scene. Three had been ejected, two of whom died at the scene.
Quintanilla-Alcocer was not located at that time. However, evidence in the vehicle led law enforcement to him. Phone records also indicated that Quintanilla-Alcocer and Garcia had been consistently communicating throughout the high-speed pursuit. During these conversations, Garcia instructed Quintanilla to go faster.
Chief U.S. District Judge Randy Crane accepted the pleas and set Quintanilla-Alcocer’s sentencing for May 25, while Cibriano-Gonzalez and Garcia are set for April 18. At those times, all three men face up to life in federal prison. They each have been and will remain in custody pending their hearings.
Homeland Security Investigations conducted the investigation with assistance from the Palmview Police Department and Texas Department of Public Safety. Assistant U.S. Attorneys Lee Fry and Devin Walker are prosecuting the case.
Three Women Indicted for Alleged Scheme that Used Prison Inmates’ Identities to Fraudulently Obtain Federal Student LoansRead the Press Release
LOS ANGELES – Three women were arrested this week on a federal grand jury indictment alleging they ran a federal student aid fraud scheme that used the identities of California prison inmates and other victims to fraudulently enroll in an Orange County-based community college and obtain federal student loans totaling nearly $1 million, the Justice Department announced today.
The six-count indictment charges the following defendants with one count of conspiracy to commit wire fraud affecting a financial institution and bank fraud:
- Nyisha Ramsey, 43, of Lancaster;
- Dionne Ramsey, 36, of Las Vegas, who is Nyisha Ramsey’s sister; and
- Sharyn Barney, 62, of Lancaster, who is Nyisha Ramsey’s mother-in-law.
Dionne Ramsey faces four additional counts of wire fraud affecting a financial institution. Dionne Ramsey and Barney also have been charged with one count of bank fraud.
According to the indictment returned in December 2022 and unsealed this week, from January 2012 to August 2017, the defendants allegedly obtained personally identifying information, including names and Social Security numbers, of state prison inmates and other victims, and used this information to fraudulently enroll in community colleges.
The defendants allegedly then posed as the straw students to apply for federal student aid using the Free Application for Federal Student Aid (FAFSA) and directed those funds to bank accounts they controlled. Those funds, according to the indictment, were used for personal expenses and were not used for permitted educational costs at a community college in Orange County as they were supposed to be.
As a result of their alleged scheme, the defendants fraudulently caused the United States Treasury to disburse approximately $980,000 in FSA funds on behalf of straw students.
The United States Department of Education oversees the administration of Title IV Federal Student Assistance. This includes the administration of Direct Loan Programs for low-interest loans to eligible students to help cover the cost of higher education, and the Pell Grant Program to assist eligible needy students in meeting the costs of post-secondary education. According to federal regulations, federal student-loan funds can only be used to pay the cost of attending an institution of higher education. Incarcerated individuals are not eligible to receive such funds.
All three defendants were arrested this week and were ordered released on bond. Nyisha Ramsey and Barney were arraigned and have pleaded not guilty to the charges against them. An April 25 trial date has been scheduled for them. Dionne Ramsey, who made her initial court appearance on Thursday in the District of Nevada, is expected to be arraigned in Los Angeles in the coming weeks.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, each defendant would face a statutory maximum sentence of 30 years in federal prison for each count.
The United States Department of Education and Department of Housing and Urban Development investigated the matter.
Assistant United States Attorneys Daniel H. Weiner of the General Crimes Section and Maxwell K. Coll of the Asset Forfeiture and Recovery Section are prosecuting this case.
Three Plead Guilty to Conspiracy to Commit Armed Robberies and Shootings in Hillsborough, Polk, Pasco, and Lee Counties While Dressed as Police OfficersRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Reginald Roberts (22, Lakeland), a/k/a/ “Rudy,” Nathaniel Keith Carr (28, Riverdale), a/k/a “Nate,” and Chrishawn De’Earl Butler (22, Brooksville), a/k/a “Baby,” have each pleaded guilty to conspiracy to commit robbery, Hobbs Act robbery, and brandishing and discharging firearms in the commission of crimes of violence. Each faces a minimum mandatory sentence ranging from 14 to 21 years, up to life, in federal prison. Sentencing dates have not yet been set.
According to the plea agreements, and as depicted in the attached photographs introduced at the initial appearance hearing on May 12, 2021, between December 2020 and April 2021, Roberts, Carr, Butler and others engaged in a conspiracy to rob individuals they suspected of distributing narcotics. During that time, the conspirators engaged in numerous armed robberies in Hillsborough, Pasco, Polk, and Lee counties, some of which resulted in shootings. While committing these offenses, the conspirators impersonated law enforcement officers by wearing black clothing, gloves, and masks, often with law enforcement insignia, or vests with “Sheriff” affixed. In addition, during certain robberies, the conspirators drove a black Dodge Durango and white Chevrolet Malibu equipped with blue lights and sirens.
Co-conspirator Jasmine Weber (28, Tampa) has also pleaded guilty, and is pending sentencing. Indicted co-conspirators Daniel Jackson and Darius Hudson are pending trial. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the FBI, with assistance from the Hillsborough County Sheriff’s Office, the Bartow Police Department, the Lakeland Police Department, the Dade City Police Department, the Cape Coral Police Department, the Pasco Sheriff’s Office, the Hernando County Sheriff’s Office, the Arcadia Police Department, and the Florida Highway Patrol. It is being prosecuted by Assistant United States Attorney Diego F. Novaes.
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.
Three More Sentenced in Staged Automobile Collision SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that BERNELL GALE (“GALE”), age 46 of Raceland, Louisiana, TANYA GIVENS (“GIVENS”), age 45, of Gibson, Louisiana; and DAKOTA DIGGS (“D. DIGGS”), age 27, of Ft. Smith, Arkansas, were each sentenced on March 1, 2023 in United States District Court. Each defendant had previously pled to one count of Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans.
According to court records, on March 27, 2017, GIVENS conspired with passengers Lois Russell (“Russell”), John Diggs (“J. Diggs”), and James “Curtis” Williams (“Williams”) to stage an accident with a tractor-trailer at the intersection of Chef Menteur Highway and Downman Road. Damien Labeaud (“Labeaud”) and Roderick Hickman (“Hickman”) also participated in this accident. Hickman, while driving Russell’s car, intentionally struck the 18-wheeler and then fled the scene in a getaway vehicle driven by Labeaud. Russell advised NOPD that she was the driver and she, along with GIVENS and J. Diggs, made claims for personal injuries. In total, the victim trucking and insurance companies paid out approximately $272,500.00 for these fraudulent claims.
According to court records, on May 17, 2017, D. DIGGS, Henry Randle (“H. Randle”), and Ryan Wheaten (“Wheaten”) served as passengers in an automobile collision staged by Labeaud in the vicinity of U.S. Highway 90 East and Calliope Street in New Orleans. Labeaud fled the scene in a getaway car driven by Mario Solomon. H. Randle falsely reported to the NOPD that he had been driving and that the tractor-trailer had struck his vehicle. Shortly thereafter, Labeaud and Solomon went on to stage a second accident in the vicinity of Louisa Street and Chickasaw Street in New Orleans with GALE, Troy Smith (“Smith”), Marvel Francois (“Francois”), and another passenger. After these collisions, D. DIGGS, H. Randle, Wheaten, GALE, Smith, and Francois made fraudulent claims for personal injuries. The victim trucking and insurance companies paid out approximately $10,000.00 for these phony claims.
U.S. District Judge Lance M. Africk sentenced DIGGS to 60 months of probation, restitution in the amount of $11,000 and a $100 mandatory special assessment fee. GIVENS was sentenced to 60 months of probation, restitution in the amount of $363,970.63 and a $100 mandatory special assessment fee. GALE was sentenced to 36 months of probation and a $100 mandatory special assessment fee. The court set a restitution hearing for GALE for May 31, 2023 at 2 p.m.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Edward J. Rivera, Assistant U.S. Attorney Maria Carboni, both of the Financial Crimes Unit and Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Three Individuals Plead Guilty to Laundering Money from Massage Parlor ProstitutionRead the Press Release
NORFOLK, Va. – A Norfolk woman pleaded guilty today to conspiracy to engage in money laundering. Two Norfolk defendants pleaded guilty last week to the same charges.
According to court documents, Si Liu, 36, and her codefendants, Yang Gao, 33, and Ye Wang, 32, conspired to move and conceal proceeds obtained through prostitution. During the conspiracy, Gao, Wang and Liu worked as operators or managers of illicit, unregistered massage parlors located in Virginia Beach and Williamsburg, which derived revenues from the prostitution of female employees for money. Women were recruited online to work for the defendants. Female employees within the massage parlors performed sex acts for customers in exchange for cash payments.
Gao managed the day-to-day operations of the parlors, including collecting money obtained via commercial sex. Gao also provided transportation to women engaged in commercial sex and maintained the facilities, unlicensed massage parlors, utilized for commercial sex. Wang assisted Gao in the operation of the illicit commercial sex business. Liu helped facilitate the exploitation of women engaged in commercial sex, collected proceeds from the illegal activity, managed the web-based advertising of the illicit massage parlors, and encouraged women to perform sex acts by providing condoms and offering financial incentives.
Gao, Wang, and Liu split the prostitution proceeds with the women engaged in prostitution. Gao, Wang and Liu traveled to the massage parlors located in Virginia Beach and Williamsburg to collect prostitution proceeds, and then deposited a percentage of profits into various bank accounts. Money was then transferred to other members of the larger enterprise through cash deliveries and via mobile banking.
Pursuant to the plea agreements the defendants agreed to forfeit four vehicles, over $130,000 in US Currency, numerous items of jewelry, a gold bar; as well as three personal residences.
Gao and Wang previously pleaded guilty to conspiracy to engage in money laundering. Gao and Wang are scheduled to be sentenced on August 4. Liu is scheduled to be sentenced on August 11. Each defendant faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Derek W. Gordon, Acting Special Agent in Charge of U.S. Homeland Security Investigations (HSI) Washington, D.C.; Paul Neudigate, Chief of Virginia Beach Police; and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after U.S. District Judge Arenda Wright Allen accepted the plea.
Assistant U.S. Attorneys Megan Montoya and Matthew Heck are prosecuting the case.
This case was investigated by the Hampton Roads Human Trafficking Task Force, a collaboration between federal, state and local law enforcement and prosecutors, as well as nongovernmental organizations, working together to combat human trafficking in the Hampton Roads, Virginia region.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-108.
Terrebonne Parish Man Pleads Guilty to Violations of the Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that yesterday, TATUM DARDAR, 26, from Terrebonne Parish, pled guilty to conspiracy to distribute and possess with the intent to distribute a quantity of methamphetamine, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(C) and possession with the intent to distribute a quantity of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
DARDAR took part in a conspiracy to distribute methamphetamine throughout Terrebonne Parish and the surrounding areas for over a year.
At sentencing and for each charge, DARDAR faces up to a maximum term of twenty (20) years imprisonment, a maximum fine of up to $1,000,000.00, at least four (4) years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
This case was investigated by the U.S. Drug Enforcement Administration, the Terrebonne Parish Sheriff’s Office, the Louisiana State Police, and the Houma Police Department. The prosecution is being handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
Tampa Man Sentenced to More Than Five Years for Conspiracy to Commit COVID-Related Unemployment Insurance Fraud and Identity TheftRead the Press Release
Tampa, FL – U.S. District Judge William Jung has sentenced Steve Aloysius Moodie, Jr. (35, Tampa) to 5 years and 10 months in federal prison for conspiracy to commit wire fraud and aggravated identity theft, wire fraud, and aggravated identity theft. As part of his sentence, the court also ordered Moodie to pay $1,070,647 in restitution, jointly with co-defendant Melinda Sue Hernandez (33, Ruskin), to the various state workforce agencies they defrauded. Moodie had pleaded guilty on September 19, 2022.
Hernandez was previously sentenced to 42 months in federal prison for her role in the conspiracy.
According to court documents, from approximately June 2020 through April 2021, Moodie and Hernandez obtained personal identifying information (PII) of others without their knowledge. Hernandez was employed as a medical assistant at a Tampa Bay area hospital and gained access to patient PII, which she used to further the scheme. Moodie used that PII and that of others to submit, and cause to be submitted, false and fraudulent unemployment insurance (UI) claims to various state workforce agencies to obtain UI benefits. These UI benefits were then transferred to bank accounts or loaded onto debit cards issued in the names of others. Moodie and Hernandez then used, and attempted to use, the fraudulently obtained debit cards to withdraw money from ATMs. Law enforcement calculated the total intended loss caused by the fraudulent UI claims to be between $1.5 million and $3.5 million.
This case was investigated by the United States Postal Inspection Service and Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Greg Pizzo.
In March 2020, the President signed the Families First Coronavirus Response Act and the Coronavirus Aid, Relief, and Economic Security Act, which expanded states’ ability to provide UI for many workers impacted by COVID-19, including for workers who were not ordinarily eligible for benefits.
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.
Tampa Man Pleads Guilty to Illegally Possessing A FirearmRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Meccos Donta Allen (38, Tampa) has pleaded guilty to unlawfully possessing a firearm. Allen faces a minimum mandatory penalty of 15 years, up to life, in federal prison. Allen has also agreed to forfeit the Glock pistol traceable to the offense. A sentencing date has not yet been set.
According to court documents, officers from the Tampa Police Department approached Allen after receiving a complaint that someone fitting Allen’s description had assaulted a couple after following them from Tampa’s Downtown Riverwalk. Allen fled from the police, dropping a loaded Glock pistol in the process. At the time of his arrest, Allen had multiple felony convictions, including for felony battery and the delivery of cocaine. As a convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Tampa Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney David P. Sullivan. The forfeiture is being handled by Assistant United States Attorney Suzanne C. Nebesky.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Sutton Man Pleads Guilty to Possessing Child PornographyRead the Press Release
BOSTON – A Sutton man has pleaded guilty in federal court in Worcester to possessing child sexual abuse material (CSAM).
Oliver Smith, 47, pleaded guilty on March 1, 2023 to one count of possession of child pornography. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Aug. 11, 2023. Smith was arrested and charged by criminal complaint in November 2020 and subsequently indicted by a federal grand jury in January 2021.
In November 2020, after receiving information from the National Center for Missing and Exploited Children and Swedish law enforcement authorities, a search warrant was executed at Smith’s Sutton residence and several devices were seized. A forensic review of devices seized revealed images and videos depicting CSAM found on a memory card stored in Smith’s backpack. In addition to the images saved to the memory card, Smith had access to an email account which contained images of CSAM. Additionally, in July 2019, while Smith resided in Sweden, he had emailed CSAM from his email account to a separate account he also controlled.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The charge of possession of child pornography provides for a sentence of up to 20 years in prison, a mandatory minimum of five years and up to life 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; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England; and Sutton Police Chief Dennis J. Towle made the announcement. Assistant U.S. Attorney Kristen Noto of Rollins’ Worcester Branch Office and William Clayman of the Justice Department’s Child Exploitation and Obscenity Section are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Summit Hospice to Pay over $1M to Settle False Claims LiabilityRead the Press Release
Salt Lake City, Utah – A Salt Lake County, Utah health care company has agreed to pay $1,045,944.42 to resolve allegations they violated the False Claims Act by submitting claims to Medicare and Medicaid for non-covered hospice services.
The settlement resolves allegations that Summit Hospice knowingly submitted false claims for payment to Medicare and Medicaid between October 1, 2018, and September 7, 2021, in violation of the False Claims Act. The United States alleged that during this period of time, Summit Hospice was billing for services that were not medically necessary, because the patients’ records lacked documentation of a terminal illness to qualify for services. Summit Hospice denies the allegations.
Hospice care is special, end-of-life care intended to comfort terminally ill patients. To be eligible for the Medicare paid hospice benefit, patients must be “terminally ill,” meaning that the patients have a medical prognosis that their life expectancy is six months or less if the illness runs its normal course.
U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
The case was investigated jointly by the Office of Inspector General of the United States Department of Health and Human Services (HHS-OIG) and the Utah Attorney General’s Office, Medicaid Fraud Control Unit.
"Hospice care is an important service that should provide patients with comfort. Providers who focus on personal financial gain rather than providing medically necessary, high-quality care to their patients undermine the integrity of these services," said Curt L. Muller, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). "HHS-OIG will continue to work with our federal and state partners to ensure that hospice providers are giving their patients the care and comfort they need."
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Staten Island Man Sentenced to 18 Months in Prison for Conspiracy to Commit Antisemitic Hate CrimesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that SAADAH MASOUD was sentenced today to 18 months in prison for his participation in a conspiracy to commit hate crimes in connection with MASOUD’s repeated physical attacks of Jewish victims in New York City between 2021 and 2022. The sentence was imposed by U.S. District Judge Denise L. Cote.
U.S. Attorney Damian Williams said: “Saadah Masoud repeatedly attacked New Yorkers based on their religion and national origin. The prosecution of this case and the sentence imposed today make clear that hate-fueled violence will not be tolerated in our community and that this Office will be unrelenting in our efforts to hold accountable those who perpetrate senseless crimes of hate.”
According to the Indictment, other public filings, and statements made in court:
From at least in or about May 2021 through at least in or about April 2022, MASOUD and others conspired to commit hate crime acts in the Southern District of New York and elsewhere. In furtherance of the conspiracy, MASOUD assaulted at least three victims based upon the victims’ actual and perceived religion and national origin. Specifically, the defendant admitted to committing the following acts of violence that were motivated by the victims’ Jewish or Israeli identity or perceived identity:
- On or about April 20, 2022, in Manhattan, MASOUD assaulted a victim who was wearing an Israeli flag;
- On or about June 2, 2021, in Brooklyn, MASOUD and a co-conspirator assaulted a victim who was wearing clothing traditionally associated with the Jewish religion, including a yarmulke, while the victim was sitting outside the victim’s own home; and
- On or about May 20, 2021, in Manhattan, MASOUD assaulted a victim who was wearing a Star of David necklace.
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In addition to his prison term, SAADAH MASOUD, 29, of Staten Island, New York, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the New York City Police Department’s Hate Crime Task Force and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The prosecution of this case is being handled by the Office’s Civil Rights Unit in the Criminal Division. Assistant U.S. Attorneys Lindsey Keenan and Mitzi Steiner are charge of the prosecution.
St. Louis County Man Sentenced to 5+ Years for $777,000 Pandemic FraudRead the Press Release
ST. LOUIS –U.S. District Judge John A. Ross on Friday sentenced a man from St. Louis County, Missouri who submitted nearly $980,000 in fraudulent applications to a pandemic relief loan program to five years and 5 months in prison.
Terrell Alexander, 46, received $777,400 in loans, but more than $200,000 has been recovered. Judge Ross ordered Alexander to repay the $511,600 remaining.
Alexander admitted submitting 10 fraudulent applications to obtain Economic Injury Disaster Loans and advances from the Small Business Administration. The applications contained fraudulent information about the size and ownership of the businesses, the number of employees and revenue. Some of the businesses existed but others were fictional or inactive. Alexander used Social Security numbers belonging to others on applications, including one belonging to a child. He also used a fake name and fraudulent driver’s license on other applications and real people’s names and information, sometimes with their knowledge.
The money was supposed to go businesses that had been negatively affected by the coronavirus pandemic.
“You weren’t just stealing from the government,” Ross told Alexander in court Friday. “You were stealing from people who needed this money and didn’t get it because there wasn’t enough.”
Alexander pleaded guilty in November to ten counts of wire fraud, five counts of aggravated identity theft, two counts of unlawful transfer of an identification document and one count of theft of government property.
“Terrell Alexander misused and fabricated Social Security numbers to defraud CARES Act benefit programs,” said Gail S. Ennis, Inspector General for the Social Security Administration. “He fraudulently obtained over $770,000 from programs intended to assist businesses and individuals facing economic disadvantages due to the pandemic. This sentence holds him accountable for these egregious acts. My office will continue our work with our law enforcement partners to pursue justice. I want to thank the FBI, SBA-OIG for their work in this joint investigation, and the U.S. Attorney’s Office and Special Assistant U.S. Attorney Diane Klocke for prosecuting the case.”
The case was investigated by the Social Security Administration Office of Inspector General, the Small Business Administration Office of the Inspector General and the FBI. Assistant U.S. Attorney Diane Klocke is prosecuting the case.
St. Charles County Man Accused of Defrauding Vehicle BuyersRead the Press Release
ST. LOUIS – A man from St. Peters, Missouri has been indicted and accused of selling the same vehicle multiple times online and defrauding other vehicle owners in a scheme that allegedly cost victims at least $300,000.
Ronald Johnson, 55, was indicted February 15 on two felony counts of wire fraud and one count of bank fraud. He pleaded not guilty February 24 and appeared in U.S. District Court in St. Louis Friday at a hearing that could determine if he is jailed until trial.
The indictment says Johnson owned a car restoration business known as Full Out Customs LLC, and from December 2021 to December 2022 sold a 2002 Ford Excursion to multiple people via social media, including Facebook. He also received payment from people who were seeking repairs on vehicles, but never did the work, the indictment says.
Johnson ordered equipment to repair vehicles but never paid, or post-dated checks drawn on closed accounts or accounts with insufficient funds, the indictment says. He also falsified car titles, emails and other documents to further his scheme, it says.
The indictment says Johnson used victims’ money to take vacations with his girlfriend and to fuel a gambling habit.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Charles Police Department. Assistant U.S. Attorney Edward Dowd III is prosecuting the case.
Shiprock man pleads guilty to illegal possession of firearmsRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Kendale Johnson pled guilty to being a felon in possession of a firearm and ammunition. Johnson, 34, of Shiprock, New Mexico, and an enrolled member of the Navajo Nation, will remain in custody pending sentencing, which has not been scheduled.
In the plea agreement, Johnson admitted to being a passenger of a vehicle and getting into a dispute with the driver of another vehicle. The dispute resulted in Johnson’s arrest, and he was found to have a 9mm rifle and two bullets in his pocket at that time. Johnson also admitted to possessing a stock rifle, night vision scope, and 9mm ammunition magazine which were in the car.
At the time of the offense, Johnson had a prior conviction for assault with a dangerous weapon. As a convicted felon, Johnson could not legally possess a firearm or ammunition.
At sentencing, Johnson faces up to 10 years in prison followed by up to 3 years of supervised release.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Department of Criminal Investigations. Assistant U.S. Attorney Novaline D. Wilson is prosecuting the case.
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Seven indicted in Seattle in connection with coast-to-coast drug trafficking conspiracyRead the Press Release
Seattle – Seven people have been indicted in the Western District of Washington in an investigation that began with a drug trafficking ring in Pittsburgh, Pennsylvania, announced U.S. Attorney Nick Brown. Over the past 36 hours, law enforcement has taken all of the defendants into custody, with three arrested in Arizona and four arrested in Seattle. In addition, two people named in indictments in Pittsburgh were arrested in the Seattle area. Those arrested in Seattle are being detained at the Federal Detention Center at SeaTac, Washington pending future hearings.
“This investigation shows how drug trafficking rings interact across the country – drugs coming into Arizona are then transferred to distributors as geographically distinct as Seattle and Pittsburgh,” said U.S. Attorney Nick Brown. “Prosecutors and law enforcement here have worked cooperatively to arrest and prosecute the key players responsible for hundreds of thousands of potentially deadly doses.”
“Cartel activity of this nature is of particular concern to HSI, and we continue to prioritize investigations into individuals and organizations that illicitly introduce deadly fentanyl and firearms into our communities,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “This national operation has brought 90 individuals to justice, taken a large amount of guns off of our streets, and serves as a message to other fentanyl trafficking organizations that we will not stop; for the safety and security of the communities that we serve, we can’t stop as innocent lives are at risk.”
According to records filed in the case, a key member of the drug conspiracy was arrested in Seattle on January 11, 2023. Bryce Hill is charged in the Western District of Pennsylvania with conspiracy to distribute fentanyl, cocaine, and methamphetamine. The Pittsburgh investigation began in 2018 and became a wiretap investigation in the spring of 2022. The investigation identified Bryce aka “Benji” Hill as a key distributor of drugs in the Seattle area. Hill traveled, or had his associates travel, between Arizona and Seattle, bringing in drugs and taking drug proceeds back to conspirators in Phoenix.
When investigators served search warrants on residences in Seattle associated with Hill, they seized five firearms – including assault style weapons and those with extended magazines.
One firearm had been modified to fire fully automatic. Hill is prohibited from possessing firearms due to previous convictions. At Hill’s apartment in Seattle, where he was arrested, law enforcement seized about 27 kilos of fentanyl pills. The drugs were still in the suitcases they had traveled in from Arizona. Law enforcement also seized more than $387,000 in cash.
In all, some 60 people have been charged in the Western District of Pennsylvania. Over the past ten months, investigators in the Pennsylvania-based case have seized more than 673 pounds of fentanyl-laced fake prescription pills, over 400 pounds of methamphetamine, and more than 16 pounds each of fentanyl powder and cocaine, over $600,000 in cash, nine vehicles, and 47 firearms.
Yesterday alone, in connection with the arrests in the Seattle area, law enforcement seized:
- Seven additional firearms for a total of 21 associated with this case
- Approximately $500,000 cash
- A half kilo of cocaine
- Smaller amounts of crack cocaine and fentanyl pills
The seven people indicted in Seattle allegedly conspired with Bryce ‘Benji’ Hill in the drug distribution scheme. Those indicted include:
Cierra Ward, 21, of Kent, Washington
David Theodore Carr, 43, of Phoenix, Arizona
Jaren Christopher Tran, 43, of Seattle
Shaunyae Allen, 37, of Oak Harbor, Washington
Jose Cortes 34, of Marysville, Washington
Aliana Lyla Khan, 34 of Scottsdale, Arizona
Kayla Vigil, 28, of Tempe, Arizona
Additionally, two defendants from Western Washington were arrested on an indictment from the Western District of Pennsylvania:
Alicia Parks, 25, of Kent, Washington
Mohamed Kariye, 34 of Kent, Washington
“This organization sold their illicit narcotics throughout the U.S., from the Southwest border to the Pacific Northwest and all the way to the East Coast,” said Jacob D. Galvan, Acting Special Agent in Charge of the DEA Seattle Field Division. “Our federal partnerships once again have proven invaluable in defeating these organizations and holding their members accountable. According to DEA labs, 6 out of 10 fake pills contain a potentially lethal dose of fentanyl. With the seizure in one Seattle apartment, our partnerships saved 162,000 lives.”
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
In the Western District of Washington, the investigation was led by Homeland Security Investigation (HSI) with assistance from the FBI, DEA, and ATF. In Pennsylvania the investigation is being led by HSI and the FBI.
The case in the Western District of Washington is being prosecuted by Assistant United States Attorneys Vince Lombardi and Michelle Jensen.
Seattle woman convicted of multiple child sexual abuse offensesRead the Press Release
Seattle – A 39-year-old woman from Seattle was convicted late yesterday of five federal felonies related to the sexual abuse of children, announced U.S. Attorney Nick Brown. Shabnam Dawn Pilisuk was convicted following a four-day jury trial. Pilisuk is scheduled to be sentenced by U.S. District Judge Tana Lin on May 31, 2023.
According to records filed in the case, a Seattle Police detective uncovered information about a website that included discussion of incest and child abuse. The investigation revealed that Pilisuk was the founder and operator of the website. The investigation further revealed that Pilisuk had traveled with an 11-year-old and sexually molested the child. The website is no longer functioning.
In March 2019, Seattle Police and Homeland Security Investigations (HSI) served a judicially authorized search warrant on Pilisuk’s West Seattle Home. They seized her electronic devices. The devices were forensically examined and determined to have images of child sexual abuse. In November 2021, a victim disclosed the sexual abuse that began when the child was 11 years old.
The jury convicted Pilisuk of: Aggravated Sexual Abuse of a Minor under 12, punishable by a mandatory minimum 30 years to life in prison; Production of Child Pornography punishable by a mandatory minimum 15 years in prison to 30 years in prison; two counts of Transportation of a Minor with Intent to Engage in Criminal Sexual Activity punishable by a mandatory minimum ten years to life in prison; and Possession of Child Pornography, punishable by up to 20 years in prison.
The actual sentence will be determined by U.S. District Judge Tana Lin after considering the sentencing guidelines and other statutory factors. Pilisuk remains detained at the Federal Detention Center at SeaTac.
The case was investigated by the Seattle Police Department and Homeland Security Investigations (HSI).
The case is being prosecuted by Assistant United States Attorney Matt Hampton and Special Assistant United States Attorney Laura Harmon. Ms. Harmon is a Senior King County Deputy Prosecutor specially designated to prosecute child exploitation cases in federal court.
Santa Rosa Man Sentenced to 10 Years for Possession of Child Pornography and Manufacturing Methamphetamine on Tohono O’odham NationRead the Press Release
TUCSON, Ariz. – Stephen Folson, 37, of Santa Rosa, Arizona, was sentenced on Tuesday by United States District Judge Cindy K. Jorgenson to 10 years’ incarceration. Folson, an enrolled member of the Tohono O’odham Nation, pleaded guilty to one count of Possession of Child Pornography and one count of Endangering Human Life While Illegally Manufacturing Methamphetamine.
Folson was arrested on March 2, 2021, after an investigation revealed that he was purchasing precursor chemicals from Canada and China to manufacture methamphetamine at his residence. Law enforcement agents served a search warrant at the residence, on the Tohono O’odham Nation Reservation, and discovered a substantial amount of laboratory equipment and precursor chemical that was used to manufacture methamphetamine. Folson shared the residence with another adult and two minor children. Agents also searched Folson’s cellular phone and an external hard drive located in the residence and determined that the devices contained over 1,000 images and several videos of child pornography.
Upon release from prison, Folson will be placed on lifetime supervised release with conditions of supervision. He will be required to register as a sex offender and to complete a sex offender treatment program. He also was ordered to pay restitution to victims depicted in the child sex abuse images he possessed.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Agents from the NATIVE (Native American Targeted Investigations of Violent Enterprises) Task Force, including from Homeland Security Investigations, the Drug Enforcement Administration, United States Border Patrol, and the Tohono O’odham Police Department participated in the investigation. Assistant United States Attorneys Carin C. Duryee and Ryan P. DeJoe, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR 21-00545-TUC-CKJ
CR 21-02664-TUC-CKJRELEASE NUMBER: 2023-028_Folson
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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.
San Juan woman indicted after weapons cache exportation attemptRead the Press Release
McALLEN, Texas – A 31-year-old San Juan resident is set to appear in federal court on charges of firearms and drug trafficking, announced U.S. Attorney Alamdar S. Hamdani.
Jessica Alvarado is expected to appear on the charges in the indictment at 1:30 p.m. today before U.S. Magistrate Judge Nadia S. Medrano.
Originally charged by criminal complaint, a federal grand jury returned the two-count indictment Feb. 21 against Alvarado on charges of smuggling goods from the United States as well as possessing approximately 499 grams of cocaine with the intent to distribute.
On Jan. 31, Alvarado attempted to depart the United States via the Hidalgo Port of Entry driving a Ford F-150, according to the complaint. She allegedly denied having firearms. However, the charges allege authorities noticed the bed of the pickup truck was abnormally elevated and referred her to secondary inspection. A search of the truck allegedly resulted in the discovery of 33 AK-47 variant rifles, three AR-15 rifles, a .22 caliber Long rifle, two .45 caliber handguns and 39 ammunition magazines.
According to the complaint, Alvarado does not possess a license to export firearms from the United States.
The investigation led to a search at her residence in San Juan, according to the charges. There, law enforcement also allegedly found approximately 499 grams of a packaged white powdery substance that field tested positive for the characteristics of cocaine and more than $13,000 in bulk U.S. currency.
If convicted, Alvarado faces up to 20 years in prison for trafficking cocaine charge as well as a maximum of 10 years for illegal exportation of firearms.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Peter I. Brostowin is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Representative of Chicago Area Red-Light Camera Company Sentenced to Five Years in Federal PrisonRead the Press Release
CHICAGO —A sales agent for a Chicago-area red-light camera company, Company A, has been sentenced to more than five years in federal prison for conspiring to pay bribes to a public official and for filing a false tax return.
In July 2022, PATRICK J. DOHERTY, 67, of Palos Heights, pleaded guilty to one count of corruptly offering something of value to influence and reward a public official (Count Five), and one count of filing a false tax return (Count Eight). Earlier this week, U.S. District Judge Ronald A. Guzman sentenced Doherty to 64 months’ imprisonment on the bribery charge, and 34 months on the false tax return charge, which sentences are to run concurrently.
According to his plea agreement, Doherty offered and agreed to give things of value, namely money, with the intent to influence State Senator A, an agent of the State of Illinois. As Chairman of the Senate Transportation Committee, State Senator A was in a position to assist Company A by opposing legislation adverse to the interests of the red-light-camera industry and obtaining Illinois Department of Transportation (“IDOT”) approvals for Company A’s red-light cameras. Doherty also admitted other acts of bribery in the plea agreement, including acts that involved abusing his position as Chief of Staff for Public Official A, a Cook County Commissioner, in efforts to benefit individuals who paid money to Doherty and his associates. In total, Doherty participated in corrupt activities that involved offering and obtaining bribes totaling approximately $148,000.
In addition, in 2016, Doherty caused an accountant to file his tax return with the Internal Revenue Service, knowing that this tax return contained false information. The false return caused losses to the IRS of at least $14,732 and losses to the Illinois Department of Revenue of at least $1,268. Doherty also acknowledged that his tax returns for tax years 2012 through 2015 and 2017 through 2018 underreported his income, and thereby caused additional losses to (1) the IRS of at least $58,430; and (2) the Illinois Department of Revenue of at least $6,512.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr, Special Agent-in-Charge of the Chicago office of the FBI; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government was represented by Assistant U.S. Attorney Tiffany A. Ardam.
Repeat sex offender sentenced to twenty-two yearsRead the Press Release
ATLANTA - Justin Levi Marino has been sentenced for the possession and distribution of child pornography and for violating the conditions of his supervised release for a prior child exploitation federal conviction.
“Child pornography is an especially heinous crime involving those who exploit and abuse children and infants to produce these disturbing and horrific images, and the individuals who create the demand for this vile material by possessing and distributing it,” said U.S. Attorney Ryan K. Buchanan. “The collaborative efforts of the FBI, U.S. Probation Office, and the U.S. Marshals Service made it possible to stop this predator from continuing to victimize more children and their families.”
“Each time Marino viewed or distributed the unconscionable images of innocent young children, they were re-victimized,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The fact he is a repeat sex offender only underscores why we strive every day to protect our children and will continue to use every law enforcement resource available to identify and prosecute individuals who exploit them in such a manner.”
“Due to the hard work of multiple components of the Department of Justice, Justin Levi Marino is no longer able to menace society and will never again victimize children with his deviant behavior. Child predators are a scourge on our community, and the U.S. Marshals Services considers it amongst our highest priorities to remove these offenders from our communities,” said Thomas E. Brown, U.S. Marshal for the Northern District of Georgia.
According to U.S. Attorney Buchanan, the charges and other information presented in court: In 2007, the U.S. District Court for the Northern District of Georgia sentenced Justin Levi Marino to 12 years and six months for using a computer to entice a minor to engage in sexual activity.
A little more than one year after completing this sentence, in June 2020, during the initial lockdown stages of the global COVID-19 pandemic, a concerned citizen contacted the Atlanta Police Department on the suspicion that a 16-year-old child, who had been reported missing in another state, was living with Marino in his apartment in the Atlanta area. The U.S. Probation Office for the Northern District of Georgia was notified and immediately obtained an arrest warrant based on Marino’s suspected violation of his supervised release condition prohibiting contact with a child under the age of 18 years old. The U.S. Probation Office and the U.S. Marshals Service for the Northern District of Georgia recovered the minor and arrested Marino at his apartment.
Following Marino’s arrest, the FBI recovered hundreds of images of child pornography and chats on various social media applications from his cell phone. Investigators also established that Marino distributed images of child pornography to other users.
Justin Levi Marino, 45, of Poland, Ohio, was sentenced to 22 years in prison to be followed by a lifetime term of supervised release. Marino pleaded guilty to the charges of possession and distribution of child pornography on August 26, 2022.
This case was investigated by the Federal Bureau of Investigation, and the U.S. Marshals Service.
Assistant U.S. Attorney Sekret T. Sneed prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Readout of Deputy Attorney General Lisa Monaco’s Trip to FloridaRead the Press Release
Yesterday, Deputy Attorney General (Deputy AG) Lisa Monaco traveled to Florida to highlight the Department of Justice’s wide-ranging efforts to pursue equal justice under the rule of law, including by combatting corporate crime and by ensuring the right to counsel for all criminal defendants.
The Deputy AG delivered the annual E. Lawrence Barcella Jr. Memorial Address at the American Bar Association's 38th Annual National Institute on White Collar Crime. In her speech, she discussed the progress the Justice Department has made in implementing the corporate criminal enforcement policy changes that she directed last September. She also announced the Justice Department’s first-ever pilot program on compensation incentives and clawbacks, to align executives and all employees’ financial incentives with corporate compliance.
The Deputy AG also announced that the Justice Department will be surging resources to respond to the increasing intersection of corporate crime and national security threats by adding over 25 new prosecutors to investigate and prosecute these violations. You can read her full remarks here.
While in Miami, the Deputy Attorney General and the department’s Director of the Office for Access to Justice (ATJ), Rachel Rossi, as well as U.S. Attorney for the Southern District of Florida, Markenzy Lapointe, met with leaders of the federal and state public defenders offices and indigent defense advocates to launch the Justice Department’s cross-country National Public Defense Day Tour in honor of the 60th anniversary of Gideon v. Wainwright, guaranteeing the right to counsel to anyone accused of a crime. The meeting in Miami kicked off ATJ’s “six stops for the Sixth Amendment” to elevate the importance of and appreciation for public defense services.
In highlighting the significance of launching this tour in Florida, the Deputy AG recalled her experience working for Attorney General Janet Reno, a former Miami-Dade State Attorney, who as Attorney General convened a historic National Symposium on Indigent Defense in 1998 on the 36th anniversary of Gideon to highlight the role of the Justice Department in strengthening indigent defense services. To carry that commitment forward, the Deputy Attorney General announced the launch of a comprehensive, 100-day review of current practices and policies to improve access to counsel at BOP pretrial facilities.
On her trip, the Deputy AG visited the U.S. Attorney’s Office for the Southern District of Florida, where she met with U.S. Attorney Markenzy Lapointe and his leadership team, as well as the prosecutors and professional staff of the office. She thanked them for their hard work and dedication. She also met with state, local and federal law enforcement leaders to emphasize the importance of the ongoing partnerships in tackling violent crime and other public safety challenges.
Finally, the Deputy AG visited Federal Correctional Institute Miami to meet the Warden and staff, review their operations, and ensure implementation of BOP’s dual mission of providing safe, humane custody while also preparing individuals for a return to society.
Deputy Attorney General Lisa Monaco with Leslie CaldwellReadout of Attorney General Merrick B. Garland’s Trip to UkraineRead the Press Release
On Friday, March 3, the Attorney General made an unannounced trip to Lviv, Ukraine, at the invitation of Ukrainian Prosecutor General to join international partners at the “United for Justice Conference.” The Attorney General reaffirmed our determination to hold Russia accountable for crimes committed in its unjust and unprovoked invasion of Ukraine. The conference provided a forum to discuss specific initiatives and measures that the international community, alongside Ukraine, is taking to comprehensively seek justice and accountability for all those responsible for war crimes and atrocities in Ukraine.
At the Opening Session of the conference, the Attorney General provided remarks in which he discussed, among other things, the Justice Department’s role in collaborating with the Ukrainian Prosecutor General and the moral and personal responsibility he feels in pursuing accountability.
“Just over twelve months ago, invading Russian forces began committing atrocities at the largest scale in any armed conflict since the Second World War. We are here today in Ukraine to speak clearly, and with one voice: the perpetrators of those crimes will not get away with them,” said Attorney General Garland. “In addition to our work in partnership with Ukraine and the international community, the United States has also opened criminal investigations into war crimes in Ukraine that may violate U.S. law. Although we are still building our cases, interviewing witnesses, and collecting evidence, we have already identified specific suspects. Our prosecutors are working day and night to bring them to justice as quickly as possible.”
This trip is an important part of the Department of Justice’s unwavering commitment to the freedom of Ukraine.
That commitment takes two forms:
- A determination to hold Russia accountable for war crimes committed in its unjust invasion, through the investigations and other work of the Department of Justice’s War Crimes Accountability Team; and
- Our ongoing work to seize illicit Russian assets for the benefit of the people of Ukraine, and to prosecute those who facilitate the evasion of sanctions imposed on Russia, through Task Force KleptoCapture.
The Attorney General’s presence in Ukraine is thus not only symbolic, but strategic as well — since it serves the purpose of driving forward the operational work of the War Crimes Accountability Team and Task Force KleptoCapture.
In addition, the United States became the first country to sign a memorandum of understanding (MOU) with the seven-member Joint Investigative Team (JIT) that is investigating Russian atrocities in Ukraine. The MOU, signed by the Attorney General, will facilitate the United States’ cooperation and coordination with the JIT members as we collect evidence and investigate Russia’s atrocity crimes. It also signals our resolve that Russia’s invasion will not undermine our collective commitment to uphold human rights and preserve a free and democratic society.
At the conference, the Attorney General also met with Ukrainian President Zelenskyy, U.S. Ambassador to Ukraine Brink, Ukrainian Prosecutor General Kostin, EU Commissioner Reynders, Polish Minister of Justice General Ziobro, and Polish National Public Prosecutor Barski, regarding operational cooperation on Russian war crimes and illicit finance and to further discussions about how the U.S. can partner internationally on these issues.
In sum, this conference both signals our joint resolve that Russia’s invasion will not undermine our collective commitment to preserving a free and democratic world and charts the way forward for our practical work to achieve that goal.
Photo Credit: U.S. Embassy in Ukraine Attorney General Merrick B. Garland shakes hands with Ukrainian President Zelenskyy Photo Credit: U.S. Embassy in Ukraine Attorney General Merrick B. Garland meets with Ukrainian President Zelenskyy. Photo Credit: U.S. Embassy in Ukraine Attorney General Merrick B. Garland and Ukrainian Prosecutor General Andriy Kostin sign a Memorandum of Understanding with the with the seven-member Joint Investigative Team. Photo Credit: President Zelenskyy's OfficePsychiatrist settles claims for unnecessary brain stimulation treatmentsRead the Press Release
HOUSTON – A 61-year-old doctor and companies he owned and operated have agreed to pay the United States $3 million to resolve claims they improperly billed Medicare, announced U.S. Attorney Alamdar S. Hamdani.
Dr. Ashok Jain and companies known as Psychiatric Solutions P.C., Longview Psychiatric Center PLLC and Longview Psychiatric Center LP knowingly and willfully submitted, or caused the submission of, false claims to Medicare. The allegations included intentionally pressuring patients to accept unnecessary medical treatments and billing for those treatments, falsifying treatment records and billing Medicare for worthless services and services they did not provide.
“This office will actively pursue and prosecute those who take advantage of our aged population and those who seek psychiatric care and counseling,” said Hamdani. “It is particularly egregious when those citizens who seek care are given unnecessary treatment and not the treatment that would benefit them. Providers who participate in federally funded programs like Medicare have a responsibility to the public to provide legitimate, safe care and treatment.”
The investigation began when two individuals who worked at the Psychiatric Solutions Longview clinic filed a qui tam, aka whistleblower, lawsuit under seal July 15, 2021.
During their terms of employment, they allegedly witnessed patients being pressured to accept unnecessary medical treatments as well as the falsification of treatment records and billing Medicare for worthless services or services the clinic did not provide.
Jain and the clinics had allegedly submitted claims for payment to Medicare for Transcranial Magnetic Stimulation (TMS) procedures that were not performed, routinely administered TMS treatments unnecessarily and absent a valid medical purpose and improperly billed Medicare for reimbursement of those treatments. They also billed Medicare for physician assessments when the physician did not see the patient or supervise the TMS session.
The complaint indicated the fraudulent conduct continued until the business was sold in April 2022.
“At the least, health care practitioners are expected to furnish services that are appropriate for their patients and to bill accurately. Providers believed to violate those basic requirements are principal targets of our investigative efforts,” stated Acting Special Agent in Charge Korby Harshaw with the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Coordinating with our law enforcement partners, HHS-OIG proudly carries out our mission to protect federal health care patients and programs from exploitation.”
“Billions upon billions of taxpayer dollars are stolen by healthcare fraudsters each year,” said FBI Houston Special Agent in Charge James Smith. “FBI Houston’s dedicated team of healthcare investigators, analysts and forensic accountants work alongside our valued law enforcement partners every day to identify these criminals, hold them accountable and protect our nation from pervasive fraud schemes which enrich criminals at the expense of hardworking, honest Americans.”
Under the False Claims Act, a private party known as a relator can file an action on behalf of the United States and receive a portion of the recovery. In this case, the relators will receive a total of $300,000.
DHHS-OIG and FBI conducted the investigation. Assistant U.S. Attorney Jill Venezia handled the matter.
Prolific Drug Trafficking Organization DismantledRead the Press Release
JOHNSTOWN – Fifty-seven defendants have been charged in two separate, but related Indictments, and by Criminal Complaint, with violating federal narcotics and firearms laws, Acting United States Attorney Troy Rivetti announced today.
Agents from the Federal Bureau of Investigation and Department of Homeland Security – Homeland Security Investigations in the Western District of Pennsylvania initially began investigating a violent street gang operating in western Pennsylvania beginning in 2018. Agents received information from confidential sources, conducted more than 50 controlled buys from members of the organization, and used other investigative techniques over the course of this lengthy investigation. In May 2022, agents commenced court-authorized Title III interception of telephones used by members of the drug trafficking organization. The wiretaps revealed that the DTO was conducting drug trafficking operations in the following areas: Indiana, Westmoreland, and Armstrong counties in the Western District of Pennsylvania; Cleveland, Ohio; Phoenix, Arizona; Seattle, Washington; Minneapolis, Minnesota; Wichita, Kansas; and in Mexico. These interceptions revealed that Arizona-sourced drugs, which consisted of fentanyl (in both pill and powdered form), heroin, cocaine, crack cocaine, and methamphetamine, were being distributed in our communities by the western Pennsylvania members of the DTO. Over the past ten months, investigators have seized more than 673 pounds of fentanyl-laced fake prescription pills, over 400 pounds of methamphetamine, and more than 16 pounds each of fentanyl powder and cocaine, over $600,000 in cash, nine vehicles, and 47 firearms.
“The Department of Justice is working tirelessly to remove deadly fentanyl from our communities and to dismantle and hold accountable the violent cartels and drug-trafficking organizations responsible for distributing it,” said Acting U.S. Attorney Rivetti. “We are committed to using every tool at our disposal to save lives. Operation Lake Effect exemplifies that commitment.”
“These defendants exploited our neighborhoods as they dealt deadly fentanyl and other drugs without a second thought to the harm being inflicted on the community,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “This multi-state state operation is an outstanding example of what federal, state and local law enforcement can accomplish when we work together to target the individuals who threaten the safety and stability of our neighborhoods. The FBI is committed to working with our partners to rid the streets of this type of criminal activity and the violence that so often accompanies it.”
“The sheer quantity of narcotics seized and the magnitude of defendants charged in this investigation is staggering,” said Special Agent in Charge of HSI Philadelphia William S. Walker. “But even more impactful is how this investigation disrupted nearly every distribution apparatus of a prolific drug trafficking organization peddling addictive opioids and narcotics in communities all over the United States. These are the types of far-reaching investigations that bring about real and positive change in our communities, and these successes could not have been achieved without the selfless dedication and seamless cooperation of the many investigators and prosecutors who took part. This investigation will cause ripples within drug trafficking markets throughout the country, underscoring HSI’s worldwide strategy to counter threats posed by opioids and dangerous narcotics. Most importantly, cases like this one save lives.”
The 25 residents of Pennsylvania and Ohio named in a four-count indictment returned on Feb. 14, 2023, and unsealed today are:
Robert Hurst, 44, of North Royalton, OH;
Barry Baker, 44, of Indiana, PA;
Michael Brown, 41, of Indiana, PA;
Kayda Burek, 23, of New Kensington, PA;
Joseph Busch, 43, of New Kensington, PA;
Christine Cafazzo, 53, of New Kensington, PA;
Ernest Clinton, 40, of Leechburg, PA;
Misti Durante, 38, of Indiana, PA;
Travis Ezekiel, 34, of Cleveland, OH;
Melissa Frain, 34, of Indiana, PA;
Frank Gardner, 38, of Indiana, PA;
Keith Hurst, 45, of Tarentum, PA;
Kasmin James, 38, of New Kensington, PA;
Lamar Johnson, 40, of Indiana, PA;
Thomas King, Jr., 55, of New Kensington, PA;
Torrence Lyde, 33, of Cleveland, OH;
Lonnie McCann, 48, of Pittsburgh, PA;
Kareem Middlebrook, 41, Creekside, PA;
Devan Nicholson, 29, of New Kensington, PA;
Milton Paschal, 43, of Arnold, PA;
Cathie Payson, 52, of Indiana, PA;
Kevin Thomas, 46, of Vandergrift, PA;
DeAngelo Ward, 33, of Cleveland, OH;
Ashley Weston, 38, of Muncy, PA; and
David Williams, 60, of Creekside, PA.The Indictment charges all defendants with conspiring to distribute and possess with intent to distribute Schedule I and Schedule II controlled substances, from August 2018 to February 2023, in the Western District of Pennsylvania. All defendants are facing a mandatory minimum sentence of ten years of incarceration.
Kareem Middlebrook is charged at Count Two with possession with intent to distribute a quantify of fentanyl, on or about May 2, 2022. The statute calls for a maximum sentence of 20 years of incarceration.
Kareem Middlebrook is charged at Count Three with possession of a firearm and ammunition by a convicted felon, on or about May 2, 2022. The statute calls for a maximum sentence of ten years of incarceration.
Kareem Middlebrook is charged at Count Four with possession of a firearm in furtherance of a drug trafficking crime, on or about May 2, 2022. The statute calls for a mandatory minimum sentence of five years of incarceration.
A one-count Superseding indictment, returned on Feb. 14, 2023, and unsealed today named the following 29 individuals as defendants: Marcos Monarrez-Mendoza, 53, of Phoenix, AZ;
Samuel Aguirre, 21, of Phoenix, AZ;
Marcos Armenta, 22, of Phoenix, AZ;
Mark Camacho, 24, of Phoenix, AZ;
Robert Foster, 25, of Buckeye, AZ;
Donald Garwood, 40, of Glendale, AZ;
Erivan Guerrero, 22, of Phoenix, AZ;
Bryce Hill, 25, Seattle, WA;
Emmanuel Lopez, 27, of Glendale, AZ;
Cesar Monarrez, 25, of Maricopa, AZ;
Marcos Monarrez, Jr., 23, of Phoenix, AZ;
Jairo Morales, 21, of Phoenix, AZ;
Stephanie Ortiz, 24, of Avondale, AZ;
Valerie Sanchez, 35, of Phoenix, AZ;
Heaven West, 21, of Phoenix, AZ;
Carlos Zamora, 27, of Peoria, AZ;
Humberto Arredondo-Soto, 23, of Phoenix, AZ;
Colby Barrow, 29, of Peoria, AZ;
Luis Chavez-Ortega, 26, of Glendale, AZ;
Donnell Collins, 27, of Cleveland, OH;
Mohamed Kariye, 34, of Kent, WA;
Jesus Lopez, 21, of Phoenix, AZ;
Diego Monarrez, 21, of Phoenix, AZ;
Avante Nix, 20, of Saint Paul, MN;
Alicia Parks, 24, of Kent, WA;
James Pinkston, 32, of Pittsburgh, PA;
Jesus Ramirez, 25, of Phoenix, AZ;
Sahal Sahal, 36, of SeaTac, WA; and
Diamond Williams-Dorsey, 29, of Cleveland, OH.The Superseding Indictment charges all defendants with conspiring to distribute and possess with intent to distribute five kilograms or more of a mixture and substance containing a detectable amount of cocaine, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, from April 2022 to January 2023, in the Western District of Pennsylvania.
The statute calls for a mandatory minimum sentence of ten years of incarceration.
Three additional defendants are charged by Criminal Complaint. Raheem Hurst, 25, of Garfield Heights, OH; Leah Jackson, 37, of New Kensington, PA; and Samantha Jones. 40. of Arnold, PA, are charged with conspiracy to distribute and to possess with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine. The statute calls for a mandatory minimum sentence of five years of incarceration.
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Arnold P. Bernard, Jr. is prosecuting these cases for the government.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The Federal Bureau of Investigation, Laurel Highlands Resident Agency, Homeland Security Investigations, and FBI Pittsburgh’s Southwest Pennsylvania Safe Streets Task Force conducted the investigation leading to the charges in this case. Additional federal agencies participating in this investigation include HSI and FBI in Phoenix and Seattle, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the United States Marshals Service, and the Federal Air Marshals Service. Other participating agencies include the Pennsylvania State Police, Pennsylvania Attorney General's Office, New Kensington Police Department, Westmoreland County Detectives, Indiana Borough Police Department, Phoenix (Arizona) Police Department, Scottsdale (Arizona) Police Department, and the Arizona Department of Public Safety. Valuable assistance was provided by the Indiana County District Attorney’s Office, the Westmoreland County District Attorney’s Office, the Cambria County District Attorney’s Office, and the Beaver County District Attorney’s Office.
An indictment or a superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of New York Commercial Drum Company Sentenced to Federal Prison for Fraudulent Billing SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge Lydia Kay Griggsby sentenced Robert A. DiNoto, age 48, of Huntington, New York, late yesterday to one year of incarceration to be served as six months in federal prison and six months of home detention, followed by three years of supervised release, for conspiracy to commit wire fraud, in connection with a fraudulent billing scheme involving a manufacturing company with facilities in Harford County, Maryland. Judge Griggsby also ordered DiNoto to pay restitution and to forfeit a total of $514,352.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Acting Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to his guilty plea, Robert A. DiNoto, is the owner and President of American Pride Distributors (“American Pride”), located in, Woodbury, New York. American Pride sold commercial drum containers used by manufacturers to store and transport products. Robert DiNoto is the brother of Eugene DiNoto (E. DiNoto), a former longtime employee of Company 1, a family-owned global business headquartered in New York, but with manufacturing facilities in Belcamp and Abingdon, Maryland, both in Harford County.
As detailed in his plea agreement, beginning no later than 2014, Robert and E. DiNoto agreed to execute a fraudulent billing scheme to defraud Company 1, through the submission of false invoices for undelivered drums. As the facility manager for Company 1, E. DiNoto oversaw the purchasing and storing of drums for use at the Harford County manufacturing facilities and had the authority to review drum invoices and authorize payments to the drum vendors. Robert DiNoto approached E. DiNoto about how he could start his own drum vending company. E. DiNoto subsequently told Robert DiNoto about other drum vendors that were defrauding Company 1 using a fraudulent billing scheme. Robert DiNoto, who was in the real estate business at the time, decided to use a company he owned, called Sandpiper Properties, Inc., trading as American Pride Distributors, to facilitate the scheme to defraud Company 1.
Once American Pride Distributors was formed, Robert DiNoto began receiving drum purchase orders from E. DiNoto for Company 1 to establish a legitimate pattern of drum sales between American Pride and Company 1. However, because Robert DiNoto was never in the business of manufacturing or reconditioning drums, he filled Company 1’s orders by buying the requisite number of drums from an actual drum manufacturer and arranging to ship them to Company 1’s facilities in Harford County, Maryland. Robert DiNoto billed Company 1 for the drums using American Pride invoices, which E. DiNoto approved for payment via emails to Company 1’s accounting department in New York.
Soon thereafter, Robert DiNoto began fraudulently invoicing Company 1 for drums that he and American Pride never delivered to the company. To conceal the fraudulent invoices, he would intermittently send the bogus invoices before and after sending legitimate ones. For example, in 2017, Robert DiNoto sent legitimate invoices #1555 through #1558 between February 15 and April 12 in the amounts of $19,223, $19,419, $18,038, and $20,908, respectively. He then submitted a fraudulent invoice, #1559, and received a payment from Company 1 for $19,448 for a shipment of 358 “NEW 55 GALLON STEEL DRUMS” that were never delivered.
Between December 2016 and August 2019, Robert DiNoto used American Pride’s invoices to bill and receive a total of approximately $257,181 from Company 1 for nonexistent drum deliveries. Robert DiNoto used the proceeds from the fraudulent billings for personal expenses, including to pay his credit card bills.
To avoid scrutiny throughout the conspiracy, the DiNotos kept their familial relationship with American Pride a secret from Company 1 employees. Despite their best efforts, third-party vendors used by American Pride would sometimes inadvertently forward an email or invoice intended for Robert DiNoto to Company 1. E. DiNoto would criticize Robert DiNoto for the mistake and ask him to remind his third-party vendors never to send correspondence to Company 1’s address. On at least one occasion, Robert DiNoto used an alias to conceal his identity when communicating with Company 1 employees.
Eugene Andrew DiNoto, age 51, of Bel Air, Maryland, previously pleaded guilty to conspiracy to commit wire fraud, engaging in an illegal monetary transaction, and filing a false tax return, in connection with schemes that defrauded his employer of more than $29 million. He is awaiting sentencing.
United States Attorney Erek L. Barron commended the FBI and IRS-CI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Martin J. Clarke and Harry M. Gruber, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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