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Thursday 2 March 2023
CEO of Atlanta engineering firm pleads guilty to failing to pay payroll taxesRead the Press Release
ATLANTA - Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes.
“Payroll taxes critically fund social insurance programs, including Social Security and Medicare,” said U.S. Attorney Ryan K. Buchanan. “Johnson refused to pay payroll taxes while withholding those funds from his employee’s paychecks for years.”
“Johnson’s failure to pay over employment tax withheld from his employees is unlawful and ultimately impacts his employees future Social Security benefits,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Johnson pleading guilty today is evidence of IRS Criminal Investigation and its partners working hard to hold employers accountable when they steal from their employees and other honest tax paying citizens.”
“The U.S. Department of Labor will use all resources available to hold fiduciaries who fail to work in the interest of plans and participants accountable,” said Mark Seidel, Acting Regional Director of EBSA’s Atlanta Regional Office in Atlanta, Georgia. “Getting retirees and workers their contributions in a timely manner is vital to their livelihood. We will remain steadfast in continued work with our federal and state partners to ensure fiduciaries follow the laws or face consequences, including when necessary, debarment from serving as a fiduciary or trustees of any retirement plan. Fiduciaries who need assistance on proper management of employee benefit plans may contact the Employee Benefits Security Administration for compliance assistance.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Charles Johnson, Sr., was the President and CEO of Williams-Russell and Johnson, Inc., an engineering firm headquartered in Atlanta. While running the firm, Johnson failed to pay significant amounts of withheld income and employment taxes to the Internal Revenue Service; pension (401(k)) payments to the firm’s retirement plan; and health insurance premiums to the health insurer. These funds were collected and withheld from employee paychecks for multiple years, stretching from at least 2015 to 2019.
As president and CEO of the firm, Johnson held a fiduciary responsibility to withhold the required income and employment taxes and pay that amount to the IRS. He was also a plan fiduciary for the retirement and health plans, required to pay the withheld amounts.
As a result, Charles Johnson, Sr., 82, of Atlanta, Georgia, was charged via a two-count Criminal Information alleging failure to account for and pay employment taxes and theft from an employee benefit plan. The Information charges that Johnson failed to pay $1.4 million in employment taxes and failed to pay more than $480,000 to the firm’s 401(k) plan and its health insurer for premium payments. He has pleaded guilty to the offense of failure to pay taxes and agreed to pay $1.4 million in restitution to the United States and an additional $210,000 to the employees who participated in the employee benefit plans.
This case is being investigated by the Internal Revenue Service Criminal Investigation and the U.S. Department of Labor-Employee Benefits Security Administration.
Assistant U.S. Attorney Christopher J. Huber is prosecuting the case.
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.
Boston Woman Pleads Guilty to Role in Physical Therapy Clinic Fraud SchemeRead the Press Release
BOSTON – A Boston woman pleaded guilty yesterday in federal court in Boston in connection with a scheme to defraud an insurance provider for physical therapy services that were not provided to patients.
Raya Bagardi, 38, pleaded guilty to one count of conspiracy to commit mail fraud. U.S. District Court Judge Richard G. Stearns scheduled sentencing for July 11, 2023. Bagardi was indicted in February 2021 along with co-defendants Gyulnara Bayryshova, Anna Barenboym and Slava Pride.
Bagardi was a licensed physical therapy assistant at Brighton Physical Therapy (BPT), a Brighton-based physical therapy clinic owned by Bayryshova. According to the charging documents, from October 2018 through June 2020, Bayryshova, Bagardi and their co-defendants conspired to cause an insurance company to reimburse them for physical therapy services that were not actually provided and/or were not medically necessary and, in some cases, were provided by individuals not licensed to provide the services. Specifically, Bayryshova, Bagardi and allegedly their co-defendants falsely billed for services purportedly rendered to patients injured in automobile accidents when the services were not actually provided. It is further alleged that BPT paid patients for referrals and referred patients to attorneys to assist with patients’ insurance settlements.
Bagardi was one of three defendants to plead guilty in the case. Barenboym and Pride previously pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on May 10, 2023 and May 24, 2023, respectively.
The charge of conspiracy to commit mail fraud provides a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts; Boston Police Commissioner Michael Cox; and Quincy Police Chief Paul Keenan made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of Rollins’ Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Black-Market Medication Wholesaler, Pharmacy Owner, and Three Other Defendants Charged in $15 Million HIV Medication Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that BORIS AMINOV, CHRISTY CORVALAN, DAVID FERNANDEZ, DEZYRE BAEZ, and CRYSTAL MEDINA were charged with engaging in a years-long scheme to defraud Medicaid and other government insurance plans out of at least approximately $15 million and exploit at least hundreds of low-income individuals with HIV. The defendants were arrested this morning and are being presented today in Manhattan federal court before United States Magistrate Judge Gabriel W. Gorenstein. The case has been assigned to United States District Judge Mary Kay Vyskocil.
U.S. Attorney Damian Williams said: “As alleged, the defendants orchestrated a scheme to get rich by lying to Medicaid and other government insurance programs and depriving vulnerable HIV patients of legitimate and safe medications. The defendants allegedly made millions of dollars through submitting fraudulent insurance claims, paying illegal kickbacks, and buying and selling black-market HIV medications. Today’s arrests send a crystal-clear message to those that seek to line their pockets by lying to federal agencies tasked with providing healthcare for low-income individuals and preying on vulnerable members of society – you will not get away with it.”
FBI Assistant Director Michael J. Driscoll said: “The indictment today alleges the defendants operated a scheme designed not only to defraud Medicaid and other government insurance plans, but also take advantage of vulnerable low-income patients with HIV. This type of criminal activity abuses taxpayer funded healthcare programs and puts those who need help at further risk. The FBI will always do whatever is necessary to ensure the integrity of healthcare programs like Medicaid and hold those willing to exploit these programs accountable.”
According to the allegations contained in the Indictment:[1]
From at least in or about July 2020 through at least in or about February 2023, AMINOV, CORVALAN, FERNANDEZ, BAEZ, and MEDINA operated a scheme that defrauded Medicaid and other government insurance plans out of at least approximately $15 million and exploited at least hundreds of low-income individuals with HIV, jeopardizing the health and safety of those vulnerable patients. AMINOV was a distributor of black-market HIV medications to two pharmacies located in the Bronx, New York (the “Pharmacies”), through which the scheme was perpetrated. CORVALAN owned and operated the Pharmacies. She purchased black-market medications from AMINOV that were then dispensed to patients, funded illegal kickbacks to be paid to patients, and additionally paid patients to sell back their HIV medications to the Pharmacies, thereby inducing patients to forego using the medications they were prescribed to treat their HIV infections. FERNANDEZ, BAEZ, and MEDINA were employees of the Pharmacies who participated in the day-to-day operation of the scheme, including by paying illegal kickbacks to patients to obtain their HIV medications from the Pharmacies and buying-back medications from the patients.
The scheme had two sets of victims: government insurance programs and the patients of the Pharmacies.
First, Medicaid and other government insurance programs were defrauded out of at least approximately $15 million of payments that they made to the Pharmacies to purchase prescription HIV medications for patients through legitimate channels. CORVALAN, FERNANDEZ, BAEZ, and MEDINA, however, instead purchased HIV medications from black-market sources, including AMINOV. Over the duration of the scheme, CORVALAN, FERNANDEZ, BAEZ, and MEDINA used the Pharmacies to pay more than $6 million to purchase black-market HIV medications from AMINOV, which were then distributed to patients.
Second, the scheme exploited low-income HIV patients of the Pharmacies and, in the process, put those vulnerable patients’ health and safety at risk by both paying patients kickbacks to fill their medications at the pharmacies, albeit with black-market drugs, and by encouraging patients to sell back their medications instead of taking them as they were prescribed to control their HIV infections.
The defendants spent the proceeds of the scheme to purchase luxury cars, including a 2021 Mercedes-Benz Maybach with an estimated fair market value of approximately $245,000, millions of dollars in waterfront real-estate, designer clothes, and jewelry.
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AMINOV, 47, of Brooklyn, New York, is charged with one count of conspiracy to commit wire fraud and health care fraud, which carries a maximum potential sentence of 20 years in prison; and one count of conspiracy to commit money laundering, which carries a maximum potential sentence of 20 years in prison.
CORVALAN, 41, of the Bronx, New York, is charged with one count of conspiracy to commit wire fraud and health care fraud, which carries a maximum potential sentence of 20 years in prison; one count of conspiracy to commit money laundering, which carries a maximum potential sentence of 20 years in prison; one count of conspiracy to violate the anti-kickback statute, which carries a maximum potential sentence of five years in prison; and aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison.
FERNANDEZ, 24, BAEZ, 22, and MEDINA, 27, all of the Bronx, New York, are charged with one count of conspiracy to commit wire fraud and health care fraud, which carries a maximum potential sentence of 20 years in prison; one count of conspiracy to violate the anti-kickback statute, which carries a maximum potential sentence of five years in prison; and aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison.
The maximum potential sentences in this case 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 FBI.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jeffrey W. Coyle is in charge of the prosecution.
The charges contained in the Indictment 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 Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation.
15 Arrested in Law Enforcement Operation Targeting Fraudulent Withdrawal of Benefits Designated for Low-Income FamiliesRead the Press Release
LOS ANGELES – “Operation Urban Justice,” a large-scale law enforcement operation this week, has resulted in the arrest of 15 individuals who allegedly used information from “skimmed” electronic benefit transfer (EBT) cards to make unauthorized withdrawals of funds that had been disbursed to low-income individuals, the Justice Department announced today.
More than 300 law enforcement officers early Wednesday morning began monitoring about 20 ATM locations across the Los Angeles area and identified individuals who were making multiple cash withdrawals with cards encoded with information that had been stolen from cards used by the California Department of Social Services to provide CalFresh and CalWORKs benefits to qualified recipients.
Authorities made arrests after determining that the suspects at the ATMs were not entitled to access funds that had been deposited into beneficiary’s accounts. At this time, federal prosecutors have filed five criminal complaints charging defendants with the use of unauthorized access devices (the cards used to make the cash withdrawals) or possession of 15 or more unauthorized access devices, and they are expected to file additional cases later today and tomorrow. The defendants arrested, many of them Romanian nationals, are expected to begin making initial appearances this afternoon in United States District Court.
The Los Angeles Police Department started the investigation into the fraudulent withdrawal of benefits in August 2022, and the United States Secret Service soon after joined “Operation Urban Justice” as a joint partner.
A number of law enforcement agencies are providing significant support, which included participating in Wednesday’s takedown, including U.S. Customs and Border Protection, Homeland Security Investigations, U.S. Immigration and Customs Enforcement, the Glendale Police Department, the Los Angeles County Sheriff’s Department, the California Department of Social Services, the United States Department of Agriculture’s Office of Inspector General, and the Romanian Brigade for Combatting Criminal Organizations (which is part of the Romanian National Police).
Documents filed in federal court outline how the California Department of Social Services has identified more than $38.9 million in funds stolen from victims’ EBT cards. This fraud has targeted CalWORKs and CalFresh (previously known as “food stamps”), both of which are intended to help low-income beneficiaries purchase food and provide for basic needs.
The investigation has revealed that the fraudulent withdrawal of these benefits is done with “cloned” cards, which are debit cards, gift cards or other devices with magnetic strips that have been encoded with information from legitimate EBT cards. Court documents allege that at least some of those involved in the fraudulent withdrawals obtained stolen EBT card information from “skimming” devices that were installed on ATM machines.
“By stealing public benefits using counterfeit EBT cards, the defendant in these cases plundered the accounts of some of our community’s poorest residents—people who need these benefits to survive,” said United States Attorney Martin Estrada. “These actions are part of a larger assault on the EBT system, one which has caused tens of millions of dollars in losses. Working with our law enforcement partners who have devoted untold resources to combating this issue, my Office will continue to do everything in our power to stop criminals from victimizing people in our community, especially those who are most vulnerable.”
“Today’s successful operation demonstrates how a sophisticated and extensive criminal scheme can be disrupted and dismantled by a team of law enforcement professionals who approach their investigation with an even greater degree of cooperation,” said James Huse, Special Agent in Charge with the Los Angeles Field Office of the United States Secret Service. “The results of this investigation are a testament to strong partnerships across the law enforcement community. Our efforts today serve to protect the Electronic Benefits Transfer system and ensure that public funds reach those who need them without delay or distress.”
“On March 1, 2023, the Los Angeles Police Department's Commercial Crimes Division partnered with the United States Secret Service and other federal law enforcement agencies to conduct a collaborative enforcement operation targeting the State of California’s Electronic Benefits Transfer (EBT) fraud issue with losses in the tens of millions of dollars,” said Los Angeles Police Chief Michel Moore. “The operation involved numerous Los Angeles Police Department personnel and resulted in the recovery of 429 cloned state issued EBT cards, $129,000 in US currency unlawfully drawn from ATM machines at several Southern California banking institutions, as well as resulting in the arrests of 11 Romanian national individuals for EBT access card fraud with losses totaling over $1000-a federal felony. All of the individual cases will be filed by the United States Department of Justice (USDOJ), United States Attorney’s Office (USAO) for federal prosecution.”
On February 2, as part of Operation Urban Justice, three additional defendants were arrested after they allegedly withdrew funds from ATM machines in Hollywood and Tarzana with cloned EBT cards. All three were subsequently named in federal indictments that charge them with bank fraud (which carries a statutory maximum penalty of 30 years in federal prison), aggravated identity theft, unlawful use of unauthorized access devices and possession of 15 or more unauthorized access devices.
Criminal complaints and indictments contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The United States Secret Service and the Los Angeles Police Department are investigating these matters.
Assistant United States Attorneys Nisha Chandran and Joshua O. Mausner of the General Crimes Section are prosecuting these cases. Substantial assistance was provided by the following Assistant United States Attorneys, all from the General Crimes Section: Laura A. Alexander, Jeremy K. Beecher, Haoxiaohan H. Cai, Declan T. Conroy, Alexander S. Gorin, David C. Lachman, Kelly L. Larocque, Jena A. MacCabe, Angela C. Makabali, Sonya A. Nevarez, Daniel H. Weiner, and David W. Williams.
Wednesday 1 March 2023
United States Attorney John R. Lausch, Jr., Announces ResignationRead the Press Release
CHICAGO — John R. Lausch, Jr., United States Attorney for the Northern District of Illinois since 2017, today announced his resignation, which will become effective on March 11, 2023. First Assistant U.S. Attorney Morris “Sonny” Pasqual will assume the position of United States Attorney on an acting basis.
Mr. Lausch was sworn in as United States Attorney on November 22, 2017, following his appointment by President Donald J. Trump. Under Mr. Lausch’s leadership, the U.S. Attorney’s Office achieved significant convictions in the areas of violent crime, public corruption, national security, financial fraud, drug trafficking, and many other areas of importance. Mr. Lausch also oversaw substantial achievements in civil cases, including procuring millions of dollars in settlements and judgments against individuals and companies for civil rights violations, health care fraud, and environmental harms.
“It has been the privilege of a lifetime to lead the U.S. Attorney’s Office in Chicago,” said Mr. Lausch. “I want to thank all of my talented colleagues in the office, as well as our federal, state, and local law enforcement partners, for their hard work and dedicated public service during my tenure. It was my honor each and every day to help carry out the office’s mission to uphold the rule of law, keep our country safe, and protect our civil rights.”
“John Lausch has served the citizens of the Northern District of Illinois and the United States with magnificent distinction,” said Mr. Pasqual. “I want to thank John for his tremendous stewardship of the office, and I wish him well in his future endeavors.”
During Mr. Lausch’s tenure, the office focused on battling the stubborn violent crime problem in Chicago and throughout the Northern District, overseeing multiple racketeering prosecutions of members of organized criminal street gangs and gang factions, as well as the prosecutions of illegal gun offenders in Chicago and throughout northern Illinois. Among other strategies, the office launched a Gun Crimes Prosecution Team to disrupt the cycle of violence in the Chicago neighborhoods most in need, as well as a Gun Trafficking Strike Force to address the illegal transfer of firearms to felons and other prohibited persons. Mr. Lausch in 2020 oversaw federal law enforcement’s collaboration with state and local law enforcement partners to respond to civil unrest and rising rates of violent crime in the Chicago area.
Mr. Lausch led the U.S. Attorney’s Office’s response to the Covid-19 pandemic. The office remained open during the pandemic, and Mr. Lausch oversaw criminal charges against numerous individuals for allegedly using the crisis to commit fraud during a vulnerable time in our nation’s history. In addition, the office maintained its strong tradition of prosecuting individuals for public corruption offenses during Mr. Lausch’s tenure.
From 2018 to 2020, Mr. Lausch served on the Attorney General’s Advisory Committee (AGAC), which consists of a select number of U.S. Attorneys who advise the Attorney General on policy, management, and operational issues impacting federal prosecutors’ offices across the country. Mr. Lausch also served on several AGAC subcommittees, including as Chair of the Violent and Organized Crime Subcommittee, and as a member of the White Collar Fraud, Controlled Substances, and Child Exploitation and Human Trafficking subcommittees. Mr. Lausch was also tasked by three Attorneys General to perform significant assignments related to sensitive matters of national importance.
Mr. Lausch earned his law degree in 1996 from Northwestern University School of Law, and his bachelor’s degree in 1992 from Harvard University. He previously served in the U.S. Attorney’s Office as an Assistant U.S. Attorney from 1999 to 2010.
Before taking over as First Assistant U.S. Attorney in 2022, Mr. Pasqual spent nearly 33 years in the office as an Assistant U.S. Attorney, including in several supervisory roles. Mr. Pasqual will assume the role of U.S. Attorney on an acting basis until a presidentially appointed candidate is confirmed by the U.S. Senate.
U.S. Attorney’s Office, ATF and Billings law enforcement address gun violence in the communityRead the Press Release
BILLINGS — U.S. Attorney Jesse Laslovich, along with federal and local law enforcement officials, today addressed gun violence in the Billings community saying they are committed to keeping citizens safe by investigating and prosecuting the most dangerous offenders who carry and use firearms in drug trafficking or violent crimes, persons who illegally possess guns and those who possess stolen or illegal guns.
During a news conference at the U.S. Attorney’s Office, U.S. Attorney Jesse Laslovich; Bureau of Alcohol, Tobacco, Firearms and Explosives Acting Special Agent in Charge Kirk Howard, of Denver; Billings Police Chief Rich St. John; and Yellowstone County Attorney Scott Twito, acknowledged the homicides, non-fatal shootings and other gun violence that have been occurring throughout the Billings area and discussed law enforcement’s strategy for combatting gun crimes.
“There is no doubt that the gun violence racking the Billings community is a serious problem, often leading to tragic results. All citizens have a right to feel safe in their home and their community, which is why our office has made combatting gun crimes a top priority. Through the investigative hard work of our law enforcement partners and the dedication our assistant U.S. attorneys, our federal firearms convictions are on the rise. This coordinated response is critical to reducing violent crime and to getting dangerous offenders off the street,” U.S. Attorney Jesse Laslovich said.
"ATF is committed to combating violent crime and illegal firearms trafficking. Crime guns, whether they are stolen, straw-purchased, or obtained through other illegal means, are too often found at the scenes of violent crimes, in the hands of violent offenders,” said Acting Special Agent in Charge Kirk Howard. “Our priority is to identify trigger pullers and disband criminal organizations using ATF technology and resources, in partnership with local law enforcement and prosecuting offices."
“Violent crime has dominated the headlines of late causing our citizens to question whether Billings is a safe place to live,” Billings Police Chief Rich St. John said. “The crime concerns are real and gun violence is at the forefront. The increase in gun violence among our youth brings urgency to resolving the problem. Ideally, we would like to stop the violence from occurring in the first place and much work is going into that effort. At the same time, the BPD along with our partners have re-doubled our efforts in enforcement and prosecution. We have made progress, but that is no solace to the families and friends who have lost loved ones. So, we will continue to partner and aggressively investigate and prosecute anyone who commits or aids these senseless acts,” he said.
“Yellowstone County has seen far too much gun violence over the past several years. This gun violence does not seem to be slowing and is a challenge that we must overcome by working together,” Yellowstone County Attorney Scott Twito said. “The YCAO is proud to work with local and federal law enforcement partners developing best and new strategies to target Yellowstone County’s most dangerous gun offenders. I appreciate U.S. Attorney Laslovich and his efforts to put a federal focus on our community and prosecute these dangerous offenders. These are the offenders in our community who use illegally obtained firearms to enforce their meth or fentanyl drug distributions or hurt or intimidate others,” he said.
Federal prosecutions for firearms crimes in Montana are increasing. In the past two years, the U.S. Attorney’s Office has obtained a record number of convictions on firearms offenses, with 153 convictions 2022 and 157 convictions in 2021. The third highest number of firearms convictions was in 2018, with 132 convictions.
The gun violence, officials said, is being driven mostly by drug trafficking activity involving methamphetamine and fentanyl and by armed robbers seeking to obtain money to buy drugs. The ATF has seized numerous firearms and illegal guns while investigating violent crimes. The agency identified several trends that are contributing to the gun violence in the Billings community:
- Firearms are usually stolen, often from vehicles, or are straw purchased, where a person illegally buys a gun for another person who is prohibited from possessing firearms.
- Almost all shootings are related to drugs.
- Most of the shooters have prior convictions and are on state or federal supervision or are known to the criminal justice system.
Law enforcement said they are working to reduce gun violence through coordinated, multi-agency investigations and prosecutions and through the federal initiative, Project Safe Neighborhoods, to ensure that persons who violate federal firearms laws are indicted in federal court and sentenced to federal prison, where there is no parole.
Under federal law, it is illegal to possess a firearm if a person falls into one of nine prohibited categories, including being a felon, an unlawful user of a controlled substance or an illegal alien. Federal statutes also make it illegal to purchase, or even attempt to illegally purchase, firearms if the buyer is a prohibited person or illegally buying a firearm on behalf of another. Lying on an ATF form used to lawfully purchase a firearm and possessing stolen or illegal guns also are federal crimes. In addition, drug dealers who carry firearms to further trafficking activity or persons who possess guns to commit violent crimes face mandatory minimum sentences.
Recent federal prosecutions in Montana include:
- Rodney Trimble, of Billings, was sentenced to 18 years in prison in February for possession with intent to distribute controlled substances and for prohibited person in possession of a firearm. Trimble, who had been recently released from a pre-release center, admitted to possessing meth, fentanyl pills and heroin found in his vehicle and told officers he also had been dealing the drugs from the pre-release center. Trimble further admitted to having two firearms he had obtained from “a couple of tweakers on the street” because someone had broken into his residence.
- Joel Zamora, of Billings, was sentenced to 15 years and eight months in prison in March 2022 for possession with intent to distribute meth. Law enforcement found in Zamora’s vehicle a loaded handgun under the driver’s seat, almost one pound of meth in a metal box and $3,500 cash.
- Anthony Ray Morgan, of Billings, was sentenced to nine years and nine months in prison in April 2022 for possession with intent to distribute meth. In two traffic stops, law enforcement found Morgan in possession of meth and firearms. In a search of his home, officers found a handgun that had a laser sight and loaded magazine, a rifle, U.S. currency concealed in a soft body armor carrier and approximately 3.75 pounds of meth.
Officials also encouraged the public to help law enforcement reduce gun violence by reporting stolen firearms so they can be returned to the owner if recovered, securing firearms in their homes, not leaving guns in vehicles and calling law enforcement when they see suspicious or criminal activity.
Removing violent criminals from the community is a key goal of the continuing work of Project Safe Neighborhoods (PSN) Yellowstone County. PSN is a U.S. Department of Justice initiative that brings together local, state, federal, and tribal agencies and stakeholders to address gun violence and other causes of violent crime in communities. PSN Yellowstone County has identified methamphetamine as the primary cause for violent crime in the community and is working diligently to arrest meth traffickers, armed robbers, and violent felons who possess firearms.
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U.S. Attorney, Vermont Attorney General, and Rutland Area NAACP to Co-Host Hate-Free Vermont Forum in St. AlbansRead the Press Release
Burlington, Vermont - The United States Attorney’s Office, the Vermont Attorney General’s Office, and the Rutland Area NAACP will be co-hosting a Hate-Free Vermont Forum in St. Albans on March 13, 2023, from 5:30pm to 7:30pm. This forum will be the third held in an ongoing series; last year, Hate-Free Vermont Forums took place in Rutland and Bennington.
“The Forum aims to bring policymakers, stakeholders, and community members together for productive and difficult conversations that will work to reduce animus, discord, and misunderstandings,” said co-facilitator Etan Nasreddin-Longo. “Many community members have told us they do not feel comfortable reporting bias incidents to the police or feel that is not an effective option. What additional options for reporting and addressing harm and conflict already exist in your community, and what new or improved options would you like to see?”
Participants are welcome to share what they want their government officials to know about their experiences, and to ask questions of their government officials about bias and discrimination.
When: Monday, March 13, 2023, 5:30pm-7:30pm
Where: The Forum will be hosted in person and remotely.
• Physical location: Bellows Free Academy - Cafeteria, 71 South Main Street, St. Albans, VT 05478
• Remote registration link: https://bit.ly/HateFreeFranklinCo
• In-person registration link (optional): https://forms.gle/ofP9yx5vpmN2dbqT7
Who: All are welcome.For physical attendance, masks are requested. Registration is required for remote attendance.
Two men sentenced for robberyRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Daniel Montano and Eligius Montano were sentenced to 8 years in prison each. Daniel, 44, of Albuquerque, and Eligius, 25, or Bernalillo, pleaded guilty on Sept. 14, 2022, to interference with interstate commerce by robbery.
On Apr. 18, 2022, Daniel and Eligius, who are father and son, robbed a Metro PCS store in Belen. As the men entered the business, they yelled to “put your hands where we can see them.” When the clerks did not initially cooperate, Eligius put his hands inside of his hoodie as if he had a firearm. The Montanos then told the clerks to face the wall with their hands up before taking one to the back room of the business. The Montanos succeeded in taking nearly $8,000 in merchandise.
The Belen Police Department investigated this case with assistance from the FBI Albuquerque Field Office. Assistant U.S. Attorney Jaymie L. Roybal is prosecuting the case.
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Two Western Washington artists plead guilty to illegally misrepresenting their work as “Indian Produced”Read the Press Release
Seattle – In two separate criminal cases, Western Washington artists pleaded guilty today to violations of the Indian Arts and Crafts Act (IACA) by representing themselves as Native American artists, when they have no tribal enrollment or heritage, announced U.S. Attorney Nick Brown. The men, 52-year-old Lewis Anthony Rath, of Maple Falls, Washington, and 67-year-old Jerry Chris Van Dyke aka Jerry Witten, of Seattle, both pleaded guilty today and will be sentenced on May 17, 2023.
“When non-Native artists falsely claim Indian heritage, they can take sales away from true Indian artists working to support themselves with skills and techniques handed down for generations,” said U.S. Attorney Nick Brown. “Stores and galleries need to partner with artists to ensure those artisans and craftsmen advertised as Indian Artists truly have tribal status.”
The investigation of Jerry Van Dyke began in February 2019, when the Indian Arts and Crafts Board received a complaint that Van Dyke was representing himself as a Nez Perce Indian Artist, when in fact, he is not an enrolled tribal member. Investigators from the U.S. Fish and Wildlife Service made undercover purchases at a gallery in the Pike Place Market area of Seattle that advertised pendants Van Dyke had made as Native American
art. Van Dyke used the name Witten for these sales. When interviewed by agents, Van Dyke admitted knowing about the Indian Arts and Crafts Act, and admitted he was not a tribal member. Through the gallery Van Dyke had sold more than $1,000 worth of carved pendants represented as Native American artwork based on Aleut masks. According to the plea agreement, Van Dyke had worked with the gallery for more than ten years, with the gallery owner providing him with woolly mammoth ivory, antlers, animal bones and fossilized walrus ivory to make the pendants that it sold.
Van Dyke pleaded guilty to Misrepresentation of Indian Produced Goods and Products. The crime is punishable by up to one year in prison.
The investigation of Anthony Rath began in May 2019, after a complaint to the Indian Arts and Crafts Board. The investigation revealed that Rath falsely represented himself to be a member of the San Carlos Apache Tribe. Undercover agents purchased a carved totem pole and necklace from the same Pike Place Market gallery for more than $1,334. Agents noticed the gallery had other carvings by Rath that were represented as Native produced. At another shop on the Seattle waterfront agents purchased
another carved totem pole and a mask, again represented to be Indian produced. The biography of the artist at both shops falsely claimed that Rath was Native American. Internet sites Rath used to sell his artwork also falsely claim he is an enrolled member of the San Carlos Apache Tribe.
When agents executed a search warrant on Rath’s Whatcom County home and studio, they found he also possessed feathers from protected birds: golden eagles and other migratory birds such as hawks, jays, owls and more. Rath is forfeiting all those feathers to the government.
Rath pleaded guilty to Misrepresentation of Indian Produced Goods and Products, Unlawful Possession of Golden Eagle Parts and Unlawful Possession of Migratory Bird Parts. Misrepresentation of Indian Produced Goods and Products and Unlawful Possession of Golden Eagle Parts are punishable by up to one year in prison, while Unlawful Possession of Migratory Bird Parts is punishable by up to six months in prison.
“The Indian Arts and Crafts Board (IACB) is very pleased that Jerry Chris Van Dyke and Anthony Rath have been brought to justice for their roles in selling fake Indian artwork in violation of the Indian Arts and Crafts Act,” said U.S Department of the Interior IACB Director Meridith Stanton. The IACB is responsible by statute for administering the Indian Arts and Crafts Act, an anti-counterfeiting statute adopted by Congress aimed at ridding the Indian arts and crafts market of fakes like those being sold by defendants Van Dyke and Rath. “Cases like these are critical to preserving the integrity and viability of authentic Native American art and craftwork in general, as well as preserving the rich cultural heritage of the Nez Perce Tribe and the San Carlos Apache Tribe and the economic livelihoods of their artists and craftspeople,” Director Stanton added. “The IACB applauds the diligent work of the U.S. Attorney’s Office-Western District of Washington and the U.S. Fish and Wildlife Service IACA Enforcement Unit in investigating and prosecuting these important cases.”
“Protecting Native American culture and traditions is a critical part of the Indian Arts and Crafts Act,” said Edward Grace, Assistant Director of the U.S. Fish and Wildlife Service Office of Law Enforcement. “The U.S. Fish and Wildlife Service's dedicated team of special agents work on behalf of the U.S. Department of the Interior and the Indian Arts and Crafts Board to uphold the rule of law and ensure that those who choose to misrepresent the marketing of Indian arts and crafts products are brought to justice. Lewis Anthony Rath and Jerry Van Dyke took advantage of Native American artists and U.S. consumers for personal and financial gain and should be held accountable for their actions.”
Under the terms of the plea agreement Van Dyke and prosecutors will both recommend no prison term. However, the ultimate sentence is up to U.S. District Judge Tana Lin.
There is no agreed sentencing recommendation for Rath.
The cases are being investigated by the U.S. Fish and Wildlife Service. The cases are being prosecuted by Assistant United States Attorney and Tribal Liaison J. Tate London.
Two Sentenced for Roles in Drug Trafficking Organization That Imported 37 Kilos of Cocaine into Rhode IslandRead the Press Release
PROVIDENCE – A leader of a long-running drug trafficking organization (DTO) that used the U.S. Postal Service to import 37 kilograms of cocaine into Rhode Island from Puerto Rico, along with a co-conspirator who provided addresses for mailing and retrieved many of the packages of cocaine, were sentenced to federal prison today, announced United States Attorney Zachary A. Cunha.
Arcadio Torres, 41, of North Smithfield, sentenced today to eight years in federal prison, previously admitted to a federal judge that, as a leader of the DTO, he worked with family members and co-conspirators to have kilogram quantity parcels of cocaine regularly shipped to addresses in Rhode Island; that he tracked many of the shipments and watched as they were delivered and retrieved by other members of the DTO; and that he coordinated with co-conspirators to store the cocaine for him.
Nelson Carvalho, 48, of Cranston, sentenced today to more than seven years in federal prison, previously admitted to the court that he provided members of the DTO with residential and business addresses in Rhode Island as destinations for U.S. Priority mail parcels, each containing approximately one kilogram of cocaine. Carvalho also discussed arrival dates and retrieval of the parcels with co-conspirators; retrieved the packages from locations throughout Rhode Island, including his work address; transported the cocaine to co-conspirators in Rhode Island; and performed other functions as needed to facilitate the operations of the DTO.
At least eleven of the parcels were shipped to Women and Infants Hospital, where Carvalho was employed as a mail courier, addressed to names provided to the DTO by the defendant. Carvalho retrieved the packages from the Hospital mail and provided them to other co-conspirators.
Torres, who pleaded guilty on June 30, 2022, to conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine, was sentenced today by U.S. District Court Judge Mary S. McElroy to 96 months in federal prison to be followed by 4 years of federal supervised release.
Carvalho, who pleaded guilty on August 1, 2022, to conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine, was sentenced today by U.S. District Court Judge Mary S. McElroy to 90 months in federal prison to be followed by 4 years of federal supervised release.
Co-conspirators George Mojica, 42, and Angel Delgado, 25, of Central Falls, previously admitted to a federal judge that they participated in the conspiracy and performed various functions to assist the DTO. Mojica and Delgado were sentenced in May 2022 to serve seven years and five years in federal prison, respectively.
The cases were prosecuted by Assistant U.S. Attorney Denise M. Barton.
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Two Men Facing Federal Indictment in Maryland for an Arson Conspiracy Targeting Convenience StoresRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned an indictment charging Stephen Kennedy, age 33, of Temple Hills, Maryland, and Donnell Kelly, age 33, of Washington, D.C., for conspiracy to commit arson, arson affecting interstate commerce, commercial robbery, and use of a destructive device in furtherance of a crime of violence, in connection with a series of convenience store robberies. Kennedy and Kelly are also charged with being felons in possession of a firearm and an explosive device, respectively, and Kennedy is charged with carrying an explosive during the commission of a felony. The indictment was returned on February 22, 2023, and was unsealed today upon the arrests of the defendants.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Maryland State Fire Marshal Brian Geraci; St Mary’s County Sheriff Steven A. Hall; Chief Malik Aziz of the Prince George’s County Police Department; and Chief Tiffany D. Green of the Prince George’s County Fire/EMS Department.
According to the 10-count indictment, from at least January 2021 to January 2022, the defendants conspired to commit arsons at 7-Eleven convenience stores so that they could obtain cash contained in ATMs in the stores. Specifically, the indictment alleges that Kennedy and Kelly traveled to 7-Eleven locations while they were open for business and deployed explosive devices to set fire to the buildings, and on at least one occasion, demanded the contents of the cash register. The defendants allegedly burned the stores to force their closure and shut off power to the security cameras, which would enable them to return to the unguarded locations to burglarize the ATMs unhindered. The indictment alleges that this resulted in losses to the ATM company of at least $249,000. To conceal the evidence of their crimes, Kennedy and Kelly allegedly burned vehicles used in the arson attacks and/or burglaries and/or made false police reports regarding stolen license plates.
If convicted, Kennedy and Kelly each face a mandatory minimum sentence of five years and a maximum sentence of 20 years in federal prison for the arson conspiracy and each of four counts of arson affecting interstate commerce; a maximum of 20 years in prison for an armed commercial robbery; a mandatory minimum sentence of 30 years and up to life in federal prison for using a destructive device in furtherance of a crime of violence; and a maximum of 10 years in federal prison for being felons in possession of an explosive device and firearm. Finally, Kennedy faces a mandatory sentence of 10 years, consecutive to any other sentence imposed, for carrying an explosive during the commission of another federal felony. 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. The defendants each had an initial appearance today in U.S. District Court in Greenbelt before U.S. Magistrate Judge Ajmel A. Quereshi. Kelly and Kennedy agreed to remain detained pending detention hearings scheduled for Friday, March 3, 2023, at 1:00 p.m. and at 3:30 p.m., respectively.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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.
United States Attorney Erek L. Barron commended the ATF, the Office of the Maryland State Fire Marshal, the St. Mary’s County Sheriff’s Office, the Prince George’s County Fire/EMS Department, and the Prince George’s County Police Department for their work in the investigation and thanked the U.S. Attorney’s Office for the Eastern District of Virginia, the ATF Washington Field Division, the U.S. Marshals Service, and the Alexandria, Virginia Police Department for their assistance. Mr. Barron thanked Assistant U.S. Attorney Adam K. Ake and Special Assistant U.S. Attorney Joshua Rosenthal, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Twice Convicted Drug Trafficker Detained in Third Drug Trafficking InvestigationRead the Press Release
PROVIDENCE – A United Parcel Service employee twice convicted and incarcerated for trafficking kilos of heroin, and, who allegedly used his position at UPS to attempt to locate a package shipped from Columbia that contained multiple kilograms of cocaine, has been ordered detained in federal custody on drug trafficking charges, announced United States Attorney Zachary A. Cunha.
In November 2022, Custom and Border Protection intercepted a package sent from Colombia and it was discovered that it contained cocaine packed inside of two ball bearings. When the package failed to be delivered to one of several addresses associated with Levys Tovar, 43, of Central Falls and Pawtucket, Tovar allegedly inquired of a customer service supervisor where he worked as to the location of the package. Tovar allegedly claimed that he was attempting to locate the package “for his neighbor.”
Information obtained by Homeland Security Investigations determined that the intended delivery address was the home Tovar shared with his girlfriend and that the “neighbor” Tovar described did not exist.
Tovar, charged by way of a criminal complaint with conspiracy to distribute and possess with the intent to distribute over 500 grams of cocaine and unlawful use of a communication facility (including the mails) to facilitate the distribution of a controlled substance, was ordered detained following his arrest on Monday.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
According to court records, Tovar was convicted in federal court in 2004 of possession with intent to distribute one kilogram of heroin, and again in 2011on a charge of attempt to possess with intent to distribute one kilogram or more of heroin. Tovar is currently on supervised release for the 2011conviction, and is scheduled to return to court on March 7, 2023, for an initial appearance as an alleged violator of supervised release.
The case is being prosecuted by Assistant United States Attorney Stacey A. Erickson.
The matter was investigated by Homeland Security Investigations’ Northeast Corridor Border Enforcement Team; Custom and Border Protection; and the Central Falls, Pawtucket, Providence, and Warwick Police Departments.
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Texas Oil and Gas Company Pays over $240,000 to Settle Trespass Allegations Arising from the Unauthorized Drilling, Extraction, and Sale of Federal MineralsRead the Press Release
OKLAHOMA CITY – EOG Resources, Inc. ("EOG"), a Texas based oil and gas company, paid $243,604 to settle claims related to its alleged unauthorized drilling, extraction and sale of federal minerals, announced United States Attorney Robert J. Troester.
EOG is headquartered in Houston, Texas, and owns the Spitfire 0817 1H Well ("Spitfire"). Spitfire is located on non-federal land in McClain County, Oklahoma. The United States owns a twenty-five percent interest in the mineral rights below the surface of the Spitfire. On or about January 7, 2019, EOG commenced drilling the Spitfire well and, on or about March 1, 2019, began to extract and sell federal minerals. The United States alleges EOG drilled the well and extracted and sold the federal minerals without approval from the United States. The United States further alleges that EOG is liable for trespass and conversion damages and was unjustly enriched by the unauthorized sale of the federal minerals. To resolve the claims, EOG paid the United States $243,604.
In reaching this settlement, EOG did not admit liability, and the government did not make any concessions about the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the U.S. Department of the Interior, Office of Inspector General. Assistant U.S. Attorneys Rebecca A. Frazier and Ronald R. Gallegos prosecuted the case.
Tewksbury Woman Pleads Guilty to Embezzlement, Unemployment Fraud and Tax CrimesRead the Press Release
BOSTON – A Tewksbury woman pleaded guilty today in federal court in Boston to embezzling more than $1.8 million from her employer, collecting unemployment assistance while employed fulltime and related tax charges.
Joanne Dinoto a/k/a Joanne Mara, 48, pleaded guilty to one count of bank fraud, three counts of wire fraud, one count of aggravated identity theft and one count of filing a false tax return. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for June 29, 2023. Dinoto was indicted by a federal grand jury in November 2021 and subsequently charged in a superseding indictment in March 2022.
Between April 2008 and April 2020, Dinoto stole more than $1.8 million from her employer, a flooring company based in Acton, by falsely inflating her compensation, using her employer’s corporate credit card for personal expenses, and forging at least two checks to herself drawn on her employer’s checking account. To hide her scheme, Dinoto modified her employer’s accounting records. Dinoto later collected unemployment benefits from the Massachusetts Department of Unemployment Assistance under her true Social Security number, despite the fact that she was then working full time for a different employer, a lighting company based in Wilmington, under a fake Social Security number. Between 2015 and 2020, Dinoto did not report the more than $1 million that she embezzled from the Acton company or received from the Wilmington company on her federal income tax returns.
The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million or twice the gross gain or loss. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss. The charge of filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of up to $250,000. The charge of aggravated identity theft provides a mandatory sentence of two years in prison, up to one year of supervised release and a fine of up to $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations made the announcement today. The Acton Police Department and the Middlesex District Attorney’s Office also provided valuable assistance. Assistant U.S. Attorney Kristen A. Kearney of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Teres Tinnin Sentenced to 15 Years in Federal Prison for Stalking ConvictionsRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Teres Tinnin, age 39, was sentenced today to a total of 15 years in prison, 5 years for conspiracy to stalk and 10 years for stalking. U.S. District Judge Joshua D. Wolson pronounced the sentence.
According to court documents, Tinnin worked with at least five co-conspirators—Ryan Bacon, Donte Sykes, Dion Oliver, Maurice Cooper, and Michael Pritchett—to search for a man, listed in the Indictment as M.S., in an attempt to kill him. After M.S. and an associate robbed Tinnin and Pritchett on May 10, 2017, Tinnin and others discussed increasing the amount of money they would pay to have M.S. found and killed.
On June 6, 2017, in furtherance of their continuing pursuit of M.S., Tinnin’s co-conspirators kidnapped M.S.’s girlfriend, Keyonna Perkins, and used her to find M.S. Perkins was held at gunpoint and forced into the trunk of her car. A short while later, Tinnin alerted his co-conspirators that he had just seen M.S. walking alongside Route 896 and directed them to his location.
After locating M.S. along Route 896, Tinnin’s co-conspirators fired multiple shots at M.S., but failed to hit him. Following the shooting, Perkins was forced into the trunk of a second car and driven by two of Tinnin’s co-conspirators to Elkton, Maryland where she was murdered.
Following the first failed shooting, Tinnin’s co-conspirators continued their pursuit of M.S. They located M.S. at Probation & Parole Offices in New Castle, and followed him into Wilmington, waiting until M.S. got out of a car around the area of 6th and Spruce Streets, where one of Tinnin’s co-conspirators again opened fire on M.S. The gunfire missed M.S., but one of the bullets ripped through a passing SUV and struck a six-year-old boy in the head, causing the child severe and permanent injuries.
Tinnin remained in close contact with his co-conspirators via FaceTime while their violent crime spree unfolded.
Commenting on the case, U.S. Attorney Weiss stated, “The defendant and his confederates agreed on a plan to hunt down and kill a perceived enemy with complete disregard for the lives of innocent people who stood in their way. The defendant may not have pulled a trigger on June 6, 2017, but he bears no less responsibility for the violence he helped set into action. My office and our law enforcement partners will vigorously pursue all those who bear responsibility for violent crime.”
“The FBI remains focused on protecting our neighborhoods and communities from violence,” said Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office. “While no sentence will undo his crimes, we thank our partners for their coordination in ensuring that Mr. Tinnin is behind bars where he belongs.”
This case was investigated by FBI's Delaware Violent Crime and Safe Streets Taskforce, with assistance from the Wilmington Police Department, New Castle County Police Department, Delaware State Police, and the Elkton Police Department. Assistant U.S. Attorneys Jesse S. Wenger and Eli H. Klein prosecuted the case along with former Assistant U.S. Attorney Christopher L. de Barrena-Sarobe.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:18-cr-75.
St. Louis County Realty Company Employee Admits $487,000 FraudRead the Press Release
ST. LOUIS – An employee of a St. Louis County realty company on Tuesday admitted embezzling $487,000 from her employer.
Crystal Hendrix, 49, of Festus, pleaded guilty in front of U.S. District Judge Audrey G. Fleissig to three counts of wire fraud. Hendrix admitted to hatching a scheme to defraud her former employer, a real estate company.
Hendrix handled payroll as part of her duties and had access to the company bank accounts. From about Jan. 8, 2018 to Dec. 9, 2020, Hendrix sent over 140 payments from the company bank account to her own bank account, totaling approximately $483,037. Hendrix used the money at restaurants and to buy a vehicle, her plea agreement says.
As part of her guilty plea, Hendrix agreed to forfeit money and property equal to the amount of her fraud. At her sentencing, set for June 1, she will be ordered to repay the money.
The U.S. Secret Service investigated the case. Assistant U.S. Attorney Edward Dowd III is prosecuting the case.
San Jose, Illinois Man Sentenced to 60 Months in Prison for Distribution and Receipt of Child PornographyRead the Press Release
SPRINGFIELD, Ill. – A San Jose, Illinois man, Joshua Skelton, 42, of the 100 block of Furlane Drive in San Jose, Illinois has been sentenced to 60 months imprisonment followed by ten years of supervised release for distribution and receipt of child pornography.
Skelton was arrested and indicted in November of 2021 and pleaded guilty in September of 2022. He has remained in the custody of the United States Marshal since his arrest.
At the sentencing hearing, the government presented evidence that between January of 2021 and November of 2021 the defendant engaged in the receipt, distribution, and trading of child pornography of prepubescent children. According to the defendant’s own statements, he had traded between 100 and 200 images using online chatting applications.
During the hearing, Senior U.S. District Judge Sue E. Myerscough found that the defendant’s conduct included distributing and receiving over six hundred images or videos of child pornography, and that at least one of the images included sexually explicit conduct involving a toddler or portrayed sadistic or masochistic conduct.
The statutory penalties for distribution of child pornography are not less than five years but not more than 20 years in prison, up to life of supervised release, and a $250,000 fine. The statutory penalties for receipt of child pornography are not less than five years but not more than 20 years in prison, up to life of supervised release, and a $250,000 fine.
The Federal Bureau of Investigation, Springfield Field Office investigated the case, with assistance from the Illinois State Police and the Logan County Sheriff’s Office. Assistant United States Attorney Tanner K. Jacobs represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
San Antonio Woman Sentenced to 8 years in Prison for Trafficking MethRead the Press Release
SAN ANTONIO – A San Antonio woman was sentenced Tuesday in federal court in San Antonio to 100 months in prison for possession with the intent to distribute 500 grams or more of methamphetamine.
According to court documents, Karen Lastiri, 32, consented to a vehicle search during a 2021 traffic stop. During the search, Bexar County Sheriff’s Office deputies found 52.38 kilograms of methamphetamine hydrochloride. Lastiri, traveling from Houston to San Antonio with two children in the vehicle, was arrested by agents with the Drug Enforcement Administration. She was later released on a $50,000 unsecured bond.
“Lastiri worked as a driver for a Drug Trafficking Organization and put her children’s lives at risk by bringing them on this job,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “I appreciate the cooperation between BCSO and the DEA, leading to this successful prosecution and the disruption of drug trafficking operations.”
"Drug Trafficking Organizations will stop at nothing. This case demonstrates the length these organizations go to disguise illicit drug activities by putting children in harm's way," said Special Agent in Charge Daniel C. Comeaux of the DEA Houston Division. "Lastiri was transporting a significant amount of methamphetamine hydrochloride from Houston to San Antonio with two children in the vehicle. DEA will continue to relentlessly pursue anyone using our communities to traffic drugs while attempting to harm the innocent along the way."
The DEA investigated the case.
Assistant U.S. Attorney Sarah Spears prosecuted the case.
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Repeat Sex Offender Convicted of Second Federal Child Pornography OffenseRead the Press Release
DETROIT – A federal jury today convicted the former resident of a Detroit residential reentry center of receiving child pornography, United States Attorney Dawn N. Ison announced today.
Joining Ison in the announcement was James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation. The trial, which began on Wednesday, February 22, 2023, was conducted before United States District Judge Terrence G. Berg.
According to the evidence presented at trial, in June 2009, United States District Judge Robert H. Cleland sentenced Matthew Mercer-Kinser, now 36, to serve 151 months in custody for transporting child pornography. In July 2019, the Bureau of Prisons designated Mercer-Kinser to serve the final months of this sentence in a Detroit residential reentry center (RRC). While at the RRC, Mercer-Kinser sent numerous sexually explicit text messages to a minor relative. A concerned adult learned of these communications and reported Mercer-Kinser to the FBI. Execution of a search warrant for Mercer-Kinser’s smartphone revealed several images of child pornography and numerous disturbing communications demonstrating Mercer-Kinser’s continued, prolific sexual interest in children. When Mercer-Kinser testified in his own defense during trial, he admitted his sexual fetish for children.
Mercer-Kinser faces a mandatory minimum sentence of 15 years in prison. A sentencing date has been set for June 29, 2023, at 9 am.
“Protecting children from dangerous predators is a top priority for our office,” U.S. Attorney Ison said. “The actions of a concerned adult were crucial in bringing the crime in this case to the attention of law enforcement, and parents and other relatives need to be vigilant in watching out for signs of abuse or the exploitation of our kids.”
“This defendant’s repeat sexual offenses make him an extreme danger to our youth. Today’s guilty verdict is a step closer to ensuring Mercer-Kinser no longer has access to children in any way,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “The combined efforts of the member agencies in the FBI’s Southeast Michigan Trafficking and Exploitation Task Force continue to form a formidable barrier between predators and our children.”
The case was investigated by special agents of the FBI. The case is being prosecuted by Assistant United States Attorneys Erin Shaw and Maggie Smith.
Real Estate Investor Pleads Guilty to $3 Million Wire and Bankruptcy Fraud SchemeRead the Press Release
DETROIT- A real estate investor pleaded guilty yesterday to stealing over $3 million in a wire and bankruptcy fraud scheme, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge, Federal Bureau of Investigation, Detroit Division.
Sean Tissue, also known as “Sean Ryan,” age 37, of Social Circle, Georgia, and formerly of Rochester, Michigan, pleaded guilty to Wire Fraud and Bankruptcy Fraud before United States District Judge Mark A. Goldsmith. Tissue was the owner of numerous companies, including The Centureon Companies LLC, Greystone Home Builders LLC, Sycamore Homes LLC, Lenovo Homes LLC, NROL Holdings LLC, Phillip Ryan LLC, Boardwalk Heights B2R LLC, NROL Property and Investment LLC.
According to the information provided to the Court at the guilty plea hearing, Tissue engaged in a real estate investment fraud scheme from 2015 through 2021. During that period, Tissue made, or caused others to make, false and fraudulent representations to induce potential investors from Israel, India, South Africa, and other countries to invest in real estate in Michigan, Texas, and other locations. Tissue, either directly or through agents, provided false and fraudulent material information to investors to induce them to invest and send him money through interstate or international wire transactions. To further the scheme, Tissue caused various false documents to be provided to investors, including fake deeds, fake wiring instructions, fake bank statements, fake leases, and fake inspection reports. Tissue also provided a fake name to investors (“Sean Ryan”). Tissue operated the scheme in the Eastern District of Michigan, and fraudulently obtained over $3 million.
In November 2017 through May 9, 2019, Tissue also engaged in bankruptcy fraud scheme by fraudulently withholding recorded information pertaining to his assets and financial affairs from the Bankruptcy Trustee after filing for Chapter 7 bankruptcy. Tissue was initially arrested on a complaint charging him with wire fraud and has been in custody ever since.
Tissue faces statutory maximum penalties of 20 years in prison for wire fraud and 5 years in prison for bankruptcy fraud. Judge Goldsmith will ultimately determine the appropriate sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“Sean Tissue orchestrated an elaborate scheme to defraud individual investors. He tried to avoid repaying those investors by declaring bankruptcy, and his lies and deceits continued in the bankruptcy proceeding,” said U.S. Attorney Ison. “This guilty plea is an important step towards holding Mr. Tissue accountable for his actions and reflects my office’s commitment to prosecuting financial crime and protecting the integrity of the bankruptcy system.”
“This defendant defrauded his real estate clients and then attempted to escape the consequences by declaring bankruptcy. His actions not only harmed individual clients, but also impacted potential investments in the City of Detroit,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division. “The FBI will continue to work with the U.S. Attorney’s Office and Bankruptcy Trustee to ensure the public’s continued trust in the bankruptcy process and to hold accountable those who would use our bankruptcy courts as a means of committing fraud.”
The investigation of this case was conducted by the Federal Bureau of Investigation. Both the United States Attorney’s Office and the Federal Bureau of Investigation wish to acknowledge and thank the United States Trustee’s Office for its assistance. The case is being prosecuted by Assistant United States Attorney Craig A. Weier and Special Assistant United States Attorney Richard Roble.
Omaha Man Sentenced to 7 Years for Felon in Possession of AmmunitionRead the Press Release
United States Attorney Steven Russell announced that Austin Galvan, 41, of Omaha, Nebraska, was sentenced today in federal court in Omaha for felon in possession of ammunition. United States District Judge Brian C. Buescher sentenced Galvan to 84 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a three-year term of supervised release.
On November 7, 2021, Ralston police responded to a call for a domestic assault. Galvan was eventually arrested and transported to the Douglas County Jail along with two bags he had in his possession. Inside one of the bags, corrections staff found the lower receiver to an AR-15 style rifle, a gun magazine, and two rounds of .22 caliber ammunition. Galvan is a convicted felon prohibited from possessing ammunition under federal law.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ralston Police Department. For more information about Project Guardian, please see www.justice.gov/archives/ag/about-project-guardian.
Omaha Man Sentenced for Possessing with Intent to Distribute FentanylRead the Press Release
United States Attorney Steven Russell announced that Derrick Lloyd, 29, of Omaha, Nebraska, was sentenced today in federal court in Omaha for possession with intent to distribute 10 grams or more of fentanyl analogue. United States District Judge Brian C. Buescher sentenced Lloyd to 84 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 4-year term of supervised release.
On July 20, 2021, Omaha Police conducted a traffic stop for going through a red light at 42nd Street and Fontenelle Boulevard. Officers made contact with the driver, who was Lloyd, who indicated he had personal use marijuana in the vehicle. Officers searched the vehicle, and underneath the center console armrest, located a plastic bag with 821 fentanyl pills.
This case was investigated by the Omaha Police Department.
Okaloosa County Man Sentenced to 5 Years in Federal Prison for Firearm OffenseRead the Press Release
PENSACOLA, FLORIDA – Sean Lee Coy, 28, of Okaloosa County, Florida, was sentenced to five years in federal prison after pleading guilty to possession of a firearm by a convicted felon. The sentence was announced by Jason R. Coody, Unites States Attorney for the Northern District of Florida.
“Our law enforcement partnerships play such a vital role in fighting violent crime and protecting the public,” said U.S. Attorney Coody. “This sentencing is another example that working jointly with our partners is making our communities safer.”
On January 3, 2022, Okaloosa County Sheriff’s Office deputies stopped Coy for driving with an expired tag. After observing a glass smoking pipe in the vehicle and smelling marijuana, the deputies searched Coy and the vehicle, finding several small baggies of methamphetamine, marijuana, and a Ruger LCP .380 caliber pistol loaded with 13 rounds in an extended magazine. Coy attempted to flee the scene but was quickly apprehended. In 2016, Coy was convicted by the state of Florida of Aggravated Battery with a Deadly Weapon, stemming from a shooting in which he and two other individuals fired into a car with multiple passengers at close range, injuring four people. Coy was sentenced to 5 years for that crime and released in September of 2020.
“Successes like this, connected to the Project Safe Neighborhoods program, are a perfect example of how a dedicated strategy to combat violence will pay-off both short-term and long-term.” “We are committed to being a steadfast partner in this mission, which benefits our area’s quality of life on multiple levels,” said Okaloosa County Sheriff Eric Aden.
This case resulted from a joint investigation by the Okaloosa County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Walter Narramore 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.
As part of its PSN strategy, the United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
New York Man Pleads Guilty to Violating the Freedom of Access to Clinic Entrances (FACE) ActRead the Press Release
Jay Smith, 32, of Freeport, New York, pleaded guilty today to a criminal information charging him with a felony violation of the Freedom of Access to Clinic Entrances (FACE) Act in connection with the Oct. 22, 2020, invasion of a reproductive health care clinic in Washington, D.C.
Smith was indicted with nine others (Lauren Handy, Jonathan Darnel, Paulette Harlow, Jean Marshall, John Hinshaw, Heather Idoni, William Goodman, Herb Geraghty and Joan Bell), all of whom were charged with conspiracy against rights and FACE Act offenses in creating a blockade at a reproductive health care clinic to prevent it from providing, and patients from receiving, reproductive health services. Smith pleaded guilty to a charge that he used force and physical obstruction to intentionally injure, intimidate, and interfere with a nurse and other employees of the reproductive health clinic because of the services being offered. The charge further alleges that Smith’s conduct resulted in bodily injury to the clinic nurse.
A felony violation of the FACE Act carries a statutory maximum sentence of 10 years in prison, a fine of up to $250,000, and up to three years of supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. District Court Judge Colleen Kollar-Kotelly scheduled a sentencing hearing for Aug. 7.
The FBI Washington Field Office investigated the case. The FBI Pittsburgh Field Office provided valuable assistance.
The Civil Rights Division's Criminal Section and U.S. Attorney’s Office for the District of Columbia’s Fraud, Public Corruption and Civil Rights Section are prosecuting the case. The U.S. Attorneys’ Offices for the District of New Jersey, District of Massachusetts, Eastern District of Michigan, Eastern District of New York and Southern District of New York; and FBI Field Offices in Newark, New York City, Boston and Detroit provided valuable assistance.
New York Man Pleads Guilty to Violating the Freedom of Access to Clinic Entrances (FACE) ActRead the Press Release
WASHINGTON – Jay Smith 32, of Freeport, New York, pleaded guilty today to a felony charge of violating the Freedom of Access to Clinic Entrances (FACE) Act in connection with the October 22, 2020 invasion of a reproductive health care clinic in Washington, D.C. U.S. District Court Judge Colleen Kollar-Kotelly scheduled a sentencing hearing for August 7, 2023.
Smith was indicted with nine others (Lauren Handy, Jonathan Darnel, Paulette Harlow, Jean Marshall, John Hinshaw, Heather Idoni, William Goodman, Herb Geraghty and Joan Bell), all of whom were charged with conspiracy against rights and FACE Act offenses in creating a blockade at a reproductive health care clinic to prevent it from providing, and patients from receiving, reproductive health services. Smith pleaded guilty to a charge that he used force and physical obstruction to intentionally injure, intimidate, and interfere with a nurse and other employees of the reproductive health clinic because of the services being offered. The charge further alleges that Smith’s conduct resulted in bodily injury to the clinic nurse.
Violation of the FACE Act carries a statutory maximum sentence of 10 years in prison, a fine of up to $250,000, and up to three years of supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the FBI’s Washington Field Office. The case is being prosecuted by the Justice Department’s Civil Rights Division and the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia. The U.S. Attorneys’ Offices for the District of New Jersey, District of Massachusetts, Eastern District of Michigan, Eastern District of New York, and Southern District of New York; and FBI Field Offices in Newark, New York City, Boston, Detroit and Pittsburgh provided valuable assistance.
New Jersey Woman Sentenced for Conspiring to Steal Government PropertyRead the Press Release
ALBANY, NEW YORK – Pamela Febo, age 38, of Keansburg, New Jersey, was sentenced today to three years of probation for fraudulently applying for unemployment benefits on behalf of a state prisoner.
United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Anthony J. Annucci, Acting Commissioner of the New York State Department of Corrections and Community Supervision (NYSDOCCS); and New York State Department of Labor (NYSDOL) Commissioner Roberta Reardon made the announcement.
Febo agreed with her boyfriend, Irvis Jorge, to submit a fraudulent unemployment insurance claim to NYSDOL using Jorge’s personal identifying information, at a time when Jorge was an inmate in NYSDOCCS custody. Febo submitted the application in October 2020 and continued to re-certify Jorge’s benefits eligibility each week for approximately four months. Each weekly certification Febo submitted indicated that Jorge was “able and available to start work immediately” even though she knew Jorge remained incarcerated and could not work. NYSDOL paid the defendants $27,348 based on the repeated false certifications.
Senior United States District Judge Gary L. Sharpe also ordered restitution in the amount of $27,348 and forfeiture in the amount of $12,444. In December, Judge Sharpe sentenced Jorge to 364 days in jail, to run consecutively to the state term of imprisonment he was serving at the time of this offense.
The FBI, the NYSDOCCS Office of Special Investigations, and the NYSDOL Office of Special Investigations conducted the investigation. Assistant U.S. Attorney Jonathan S. Reiner prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Navajo man charged with aggravated sexual abuse of a child in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Pedro Lee Benally made an initial appearance in federal court facing two charges of aggravated sexual abuse in Indian Country. Benally, 29, of Montezuma Creek, Utah, and an enrolled member of the Navajo Nation, will remain in custody pending a detention and preliminary hearing held on March 2, 2023.
A federal grand jury indicted Benally on February 23. According to the indictment and other court records, Benally allegedly engaged in a sexual act with a child, identified as Jane Doe. The alleged assault occurred in San Juan County, New Mexico, on the Navajo Nation.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Benally may face up to life in in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Department of Investigation. Assistant United States Attorney Caitlin L. Dillon is prosecuting the case.
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Mexican Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to more than two months in federal prison.
Raymundo Gutierrez-Lagunas, age 35, a citizen of Mexico illegally present in the United States and residing in Linn County, Iowa, received the prison term after a January 12, 2023 guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Gutierrez-Lagunas admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Gutierrez-Lagunas was previously deported in November 2013. On December 3, 2022, immigration officials learned Gutierrez-Lagunas had illegally returned to the United States and found Gutierrez-Lagunas at the Linn County Jail following his arrest on state charges.
Gutierrez-Lagunas was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Gutierrez-Lagunas was sentenced to 80 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system. Gutierrez-Lagunas is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-98.
Medical Equipment Company Pays $7 Million to Resolve False Claims Act AllegationsRead the Press Release
LEXINGTON, Ky.— United Seating and Mobility, LLC, d/b/a Numotion (Numotion) has paid $7 million to resolve civil allegations that it made false statements in connection with claims for reimbursement it submitted to Kentucky Medicaid, two of Kentucky Medicaid’s Managed Care Organization contractors (MCOs), MO HealthNet (Missouri Medicaid), and D.C. Medicaid.
Numotion is a national supplier of durable medical equipment (DME), such as hospital beds, manual wheelchairs, power wheelchairs and accessories, and gait trainers. The investigation involved DME that was “manually priced” by Medicaid payors in Kentucky, Missouri, and D.C. Those Medicaid programs reimbursed manually priced DME based on the cost Numotion actually paid the manufacturer for the equipment. Specifically, in Kentucky, reimbursement is based on “a manufacturer’s actual charges” billed to Numotion, or the “invoice price;” in Missouri, reimbursement is based on the “actual invoice of cost;” and in D.C., reimbursement is based on “original documentation reflecting all discounts.”
In the Settlement Agreement, the United States alleged that Numotion did not disclose all discounts Numotion received from, or the cost Numotion actually paid to, DME manufacturers when submitting claims for manually priced DME to Kentucky Medicaid, two Kentucky Medicaid MCOs (Aetna Better Health of Kentucky and WellCare of Kentucky), MO HealthNet, and D.C. Medicaid. Numotion’s failure to disclose all discounts, or the actual cost paid, resulted in these Medicaid programs paying Numotion higher reimbursements than it was entitled to receive. The United States contended that the conduct violated the False Claims Act, 31 U.S.C. § 3729(a)(1)(B), a federal law that prohibits knowingly making or using a false statement material to a false claim for reimbursement.
As part of the settlement, Numotion also entered into a 5-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General. The CIA requires, among other things, that Numotion implement a centralized risk assessment program, as part of its compliance program, and hire an Independent Review Organization to complete annual reviews of some of its Medicare and Medicaid claims.
“By hiding or failing to disclose discounts, to receive higher reimbursement from Medicaid programs across the country, Numotion prioritized its financial incentives, to the detriment of these Medicaid programs,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Whenever the valuable resources of government health care programs are improperly dissipated to those who are not entitled, it diminishes the ability of these programs to meet the needs of their beneficiaries. We remain committed to doing our part to protect these programs from fraud, waste, and abuse and to preserve the taxpayer money that supports them.”
“When health care companies do not follow federal health care billing requirements, the integrity of those safety net programs can be undermined,” said Special Agent in Charge Tamala E. Miles of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our law enforcement partners, the dedicated work of OIG’s investigators and attorneys has again resulted in the recovery of taxpayer dollars and better protection against improper billing in the future.”
The settlement resolves a lawsuit originally brought by L. Richard Parkey, a former Numotion employee, under the qui tam, or whistleblower, provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of this resolution, Parkey will receive approximately $1.05 million of the settlement amount.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General. Assistant United States Attorney Jennifer A. Williams handled the matter for the United States.
The case is United States ex rel. L. Richard Parkey v. United Seating and Mobility, LLC d/b/a Numotion, Case No. 3:17-cv-53-GFVT. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Massachusetts Man Sentenced for Illegal Wildlife Trafficking, Fined $10,000Read the Press Release
PORTLAND, Maine: A Massachusetts man was sentenced today in U.S. District Court in Portland for illegally transporting wild snowshoe hares from Maine to Massachusetts.
U.S. District Judge Nancy Torresen sentenced Jon Rioux, 36, of Attleboro, Massachusetts to one year of probation and imposed a fine of $10,000. Judge Torresen also ordered Rioux to pay $1,843 in restitution to the Maine Department of Inland Fisheries and Wildlife.
According to court records, in January 2021, an investigator received information that Rioux was soliciting Maine residents to live trap snowshoe hares. On four occasions Rioux illegally purchased snowshoe hares in Maine and then transported them to Massachusetts to use for beagle training and field trials. On March 16, 2022, Rioux was arrested by Maine Game Wardens and U.S. Fish and Wildlife Service Special Agents at the Kennebunk service plaza on the Maine Turnpike after his fifth purchase.
“Illegally trafficking wildlife across state lines not only exploits public resources it threatens wild populations by creating the potential for disease transmission,” said Edward Grace, Assistant Director for the U.S. Fish and Wildlife Service Office of Law Enforcement. “We’re grateful for our close collaboration with state partners in Maine to help us enforce laws that protect wildlife resources on behalf of the American public."
The Maine Warden Service and U.S. Fish and Wildlife Service investigated the case with assistance from the Massachusetts Environmental Police.
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Edited 03/02/23 for clarity
Maplewood Man Sentenced to 30 Months in Prison for Illegal Possession of an Unregistered Pipe BombRead the Press Release
MINNEAPOLIS – A Maplewood man has been sentenced to 30 months in federal prison followed by three years supervised release for illegal possession of a pipe bomb, announced U.S. Attorney Andrew M. Luger.
According to the plea agreement and other court documents, on April 28, 2022, law enforcement executed a search warrant at the Maplewood residence of Dylan Raymond Orr, 27, after discovering photos of two pipe bombs sent from Orr’s phone to a third-party. The images showed small BBs affixed to the exterior casing of the pipe bombs. During the execution of the search warrant, law enforcement discovered two six-inch pipes —one with BBs affixed, four end caps, and explosive powder, components which could be readily converted to a destructive device. Orr did not have a registration to possess these devices from the National Firearms Registration and Transfer Record as required by law.
Orr pleaded guilty on November 9, 2022, to one count of possession of an unregistered destructive device. Orr was sentenced today in U.S. District Court before Judge Nancy E. Brasel.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Savage Police Department.
Assistant U.S. Attorney LeeAnn K. Bell prosecuted the case.
Man Who Robbed and Murdered Stamford Jeweler Sentenced to 40 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ROBERT RALLO, 59, of New York, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 480 months of imprisonment, followed by five years of supervised release, for offenses stemming from the robbery of Marco Jewelers in Stamford in March 2020, during which Rallo shot and killed the owner of the store.
“This sentence will protect society from a dangerous individual who brutally killed a much loved and respected man and small business owner,” said U.S. Attorney Avery. “I thank the FBI and the Stamford, Greenwich, Yonkers, New York and New Rochelle Police Departments for thoroughly investigating this crime and helping to bring these defendants to justice.”
“The system of justice in which the FBI and all of our law enforcement partners work within everyday has just spoken,” said FBI Special Agent in Charge Robert Fuller. “The joint efforts of the investigators and prosecutors has been recognized and justice has been served.”
“We are very pleased to see these three career criminals held accountable for this senseless murder, and we want to commend the tireless, cutting edge police work that led to this outcome, said Assistant Chief Richard Conklin of the Stamford Police Department. “While nothing we do can restore what the Vuono family has lost, we hope that this conviction and sentence can offer some solace. We are grateful for the expertise of our officers, as well as the collaboration with the FBI and our other law enforcement partners, that contributed to bringing this painful case to a positive conclusion.”
According to court documents and statements made in court, on March 28, 2020, at approximately 2:48 p.m., Stamford Police Officers responded to Marco Jewelers, located at 16 Sixth Street in Stamford. When officers arrived, they found evidence of a robbery and encountered the storeowner, Mark Vuono, lying on the ground in front of an open safe. Emergency medical personnel arrived and pronounced Vuono deceased.
Investigators collected and analyzed surveillance video from Marco Jewelers, surrounding businesses and Stamford city cameras. Video obtained from Marco Jewelers revealed that, on March 28, Paul Prosano drove Robert Rallo and Thomas Liberatore in a black Jaguar to Marco Jewelers. Rallo and Liberatore then entered the store. Rallo, armed with a handgun, engaged in a physical altercation with Vuono, while Liberatore stole items from the display cases. Vuono, who also possessed a firearm, and Rallo struggled next to a large open safe. During the more than three-minute struggle, Rallo reached into the safe and pulled out a third firearm, a .357 Magnum revolver. Rallo subsequently shot and killed Vuono with the .357 revolver.
Following the robbery, law enforcement located the black Jaguar in Staten Island and maintained surveillance on the vehicle. On March 31, at approximately 5:30 p.m., a black BMW X3, driven by Prosano, pulled up beside the black Jaguar. Rallo exited the rear door of the BMW and entered the driver’s door of a black Jaguar. The two vehicles then left the area and rapidly accelerated. The Jaguar crashed on Tompkins Street. Rallo attempted to flee on foot, but was quickly apprehended. The BMW crashed into a tree and parked car at the intersection of Daniel Low Terrace and Corson Avenue. Prosano also attempted to flee and was apprehended.
A search of the BMW revealed 63 rings, eight bracelets, two tie pins, an earring and a cufflink, and a search of Prosano’s residence revealed 23 pairs of earrings and three rings. These items were stolen from Marco Jewelers on March 28.
Liberatore was arrested on April 1.
Rallo’s criminal history, which includes two prior murder convictions, spans approximately 40 years. He met Liberatore and Prosano while incarcerated within the New York State Department of Corrections, and had been released from prison in March 2019.
Rallo has been detained since his arrest. On April 5, 2022, he pleaded guilty to one count of interference with commerce by robbery (Hobbs Act robbery), one count of interstate transportation of stolen property, and one count of using a firearm to cause a death during a robbery.
On December 19, 2022, a jury found Liberatore and Prosano guilty of Hobbs Act robbery and interstate transportation of stolen property. Liberatore was also found guilty of aiding and abetting the use of a firearm to cause a death during a robbery. They are detained while awaiting sentencing.
This investigation has been conducted by the Federal Bureau of Investigation, Stamford Police Department and Greenwich Police Department, with the assistance of the New York Police Department, Yonkers (N.Y.) Police Department and New Rochelle (N.Y.) Police Department. The case is being prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis, Rahul Kale and Margaret Donovan.
“This sentence will protect society from a dangerous individual who brutally killed a much loved and respected man and small business owner,” said U.S. Attorney Avery. “I thank the FBI and the Stamford, Greenwich, Yonkers, New York and New Rochelle Police Departments for thoroughly investigating this crime and helping to bring these defendants to justice.”
“The system of justice in which the FBI and all of our law enforcement partners work within everyday has just spoken,” said FBI Special Agent in Charge Robert Fuller. “The joint efforts of the investigators and prosecutors has been recognized and justice has been served.”
“We are very pleased to see these three career criminals held accountable for this senseless murder, and we want to commend the tireless, cutting edge police work that led to this outcome, said Assistant Chief Richard Conklin of the Stamford Police Department. “While nothing we do can restore what the Vuono family has lost, we hope that this conviction and sentence can offer some solace. We are grateful for the expertise of our officers, as well as the collaboration with the FBI and our other law enforcement partners, that contributed to bringing this painful case to a positive conclusion.”
According to court documents and statements made in court, on March 28, 2020, at approximately 2:48 p.m., Stamford Police Officers responded to Marco Jewelers, located at 16 Sixth Street in Stamford. When officers arrived, they found evidence of a robbery and encountered the storeowner, Mark Vuono, lying on the ground in front of an open safe. Emergency medical personnel arrived and pronounced Vuono deceased.
Investigators collected and analyzed surveillance video from Marco Jewelers, surrounding businesses and Stamford city cameras. Video obtained from Marco Jewelers revealed that, on March 28, Paul Prosano drove Robert Rallo and Thomas Liberatore in a black Jaguar to Marco Jewelers. Rallo and Liberatore then entered the store. Rallo, armed with a handgun, engaged in a physical altercation with Vuono, while Liberatore stole items from the display cases. Vuono, who also possessed a firearm, and Rallo struggled next to a large open safe. During the more than three-minute struggle, Rallo reached into the safe and pulled out a third firearm, a .357 Magnum revolver. Rallo subsequently shot and killed Vuono with the .357 revolver.
Following the robbery, law enforcement located the black Jaguar in Staten Island and maintained surveillance on the vehicle. On March 31, at approximately 5:30 p.m., a black BMW X3, driven by Prosano, pulled up beside the black Jaguar. Rallo exited the rear door of the BMW and entered the driver’s door of a black Jaguar. The two vehicles then left the area and rapidly accelerated. The Jaguar crashed on Tompkins Street. Rallo attempted to flee on foot, but was quickly apprehended. The BMW crashed into a tree and parked car at the intersection of Daniel Low Terrace and Corson Avenue. Prosano also attempted to flee and was apprehended.
A search of the BMW revealed 63 rings, eight bracelets, two tie pins, an earring and a cufflink, and a search of Prosano’s residence revealed 23 pairs of earrings and three rings. These items were stolen from Marco Jewelers on March 28.
Liberatore was arrested on April 1.
Rallo’s criminal history, which includes two prior murder convictions, spans approximately 40 years. He met Liberatore and Prosano while incarcerated within the New York State Department of Corrections, and had been released from prison in March 2019.
Rallo has been detained since his arrest. On April 5, 2022, he pleaded guilty to one count of interference with commerce by robbery (Hobbs Act robbery), one count of interstate transportation of stolen property, and one count of using a firearm to cause a death during a robbery.
On December 19, 2022, a jury found Liberatore and Prosano guilty of Hobbs Act robbery and interstate transportation of stolen property. Liberatore was also found guilty of aiding and abetting the use of a firearm to cause a death during a robbery. They are detained while awaiting sentencing.
This investigation has been conducted by the Federal Bureau of Investigation, Stamford Police Department and Greenwich Police Department, with the assistance of the New York Police Department, Yonkers (N.Y.) Police Department and New Rochelle (N.Y.) Police Department. The case is being prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis, Rahul Kale and Margaret Donovan.
Local couple admits to benefitting from forced laborRead the Press Release
McALLEN, Texas – Two Edinburg residents have pleaded guilty to benefitting from forced labor, announced U.S. Attorney Alamdar S. Hamdani.
From June 24, 2021 until July 8, 2021, Eduardo Javier Gomez, 32, and his former partner Margarita Alvarez, 40, benefitted from a victim’s free labor which allowed the couple to have gainful employment. In addition, Gomez additionally earned money from a fireworks stand where the victim provided free labor.
“Labor traffickers care about only one thing - money,” said Hamdani. “Those subjected to domestic servitude are robbed of their dignity and freedom. Thankfully, this victim was rescued quickly thanks to the efforts of law enforcement. Now, this couple will pay the price for their despicable crimes and we can begin to bring some closure to the victim.”
Law enforcement discovered that the victim had been illegally smuggled to the Rio Grande Valley. Gomez was holding her against her will. Gomez was requesting further payment from family members in exchange for the victim being moved further north. When the family was unable to pay, the victim’s phone was taken and she was forced to work as a nanny and housekeeper in the home Gomez and Alvarez shared. The victim also was forced to work in a fireworks stand Gomez managed.
The victim was never paid.
Two days after learning of the victim, authorities were able to locate and rescue her.
U.S. District Judge Ricardo H. Hinojosa accepted the pleas and has set sentencing for May 9. At that time, the former couple faces up to 20 years in federal prison.
Eduardo Javier Gomez has been and will remain in custody pending sentencing, while Margarita Alvarez was permitted to remain on bond.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Eliza Carmen Rodriguez, Sherri Zack and Kim Leo are prosecuting the case.
Lenox Man Arrested for Child Exploitation OffensesRead the Press Release
BOSTON – A Lenox man has been arrested and charged in connection with attempting to transfer obscene material to a minor.
Paul J. Bruzzi, 35, was charged with attempt to transfer obscene material to a minor. Bruzzi will make an initial appearance in federal court in Springfield today.
According to the charging documents, starting in September 2022, Bruzzi used social media applications to communicate with an individual he believed to be a 14-year-old girl, but who was actually an undercover federal investigator. During these conversations, it is alleged that Bruzzi sent the purported minor nine photographs and videos of himself displaying his genitalia and attempted to pressure her into sending him photos of herself.
The charge of attempt to transfer obscene matter to a minor provides for a sentence of at least 10 years in prison, three years supervised release and a fine of up to $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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Salisbury and Winchester Police Departments. Assistant U.S. Attorney Neil L. Desroches of Rollins’ Springfield Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Las Vegas Resident Sentenced to Prison for COVID Relief FraudRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced yesterday by U.S. District Judge Gloria M. Navarro to 30 months in prison followed by one year of supervised release for submitting fraudulent Paycheck Protection Program (PPP) and Economic Injury Disaster Relief Loan (EIDL) loan applications seeking more than $1 million under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, from May 2020 to June 2020, Jeremy Lee Attebery (42) submitted two false PPP loan applications and one false EIDL application. Attebery provided false information on his loan applications, such as number of employees, amount of monthly payroll, and gross revenues. In total, he applied for approximately $1,043,000 in fraudulent loans. Furthermore, he falsely stated on each application that he had not been convicted of a felony within the past five years.
Attebery pleaded guilty in August 2022 to three counts of wire fraud.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The FBI investigated the case; and Assistant U.S. Attorney Jessica Oliva prosecuted the case.
In May 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 augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Kouts Woman Convicted of Tax OffensesRead the Press Release
HAMMOND- Kathy Lynch, age 64, of Kouts, Indiana, was found guilty following a 3-day jury trial presided over by United States District Court Judge Philip P Simon, announced United States Attorney Clifford D. Johnson.
The jury found Lynch guilty of nine (9) counts of willful failure to pay over to the IRS, federal payroll taxes withheld from Kouts Health Care, Inc employees, between June 2013 and September 2015, in violation of Title 26, United States Code, Section 7202.
Lynch will be scheduled for sentencing by separate order of the Court. Any specific sentence to be imposed will be determined by the District Court Judge after consideration of federal statutes and the United States Sentencing Guidelines.
The case was investigated by the Internal Revenue Service-Criminal Investigation Division. This case was prosecuted by Assistant United States Attorneys Abizer Zanzi and Kevin Wolff.
KC Man Sentenced for Joplin Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – A Kansas City, Mo., man was sentenced in federal court today for robbing a Joplin, Mo., bank with what appeared to be a handgun after he had just robbed a bank in Kansas earlier the same day.
Leland Scott Graham, 59, was sentenced by U.S. District Judge Brian C. Wimes to eight years in federal prison without parole.
On Aug. 2, 2022, Graham pleaded guilty to one count of bank robbery. Graham admitted he stole $24,478 from Great Southern Bank in Joplin on July 19, 2021. Graham displayed what appeared to be a handgun and told one of the tellers, “This is a gun, do you want me to shoot you?” He then turned to another employee and said, “Hurry up or I will shoot you.” Graham later told investigators he put a black-handled screwdriver in his waistband so that the tellers would think it was a firearm.
As he left the bank, Graham dropped more than $5,000 on the floor, which was recovered by law enforcement.
Several hours before he robbed the bank in Joplin, Graham had robbed Landmark National Bank in Louisburg, Kansas. Surveillance images from the banks indicated the same suspect was involved in both robberies. When the Joplin Police Department released surveillance images to the media and requested the public’s assistance to identify the bank robbery suspect, investigators received a tip identifying Graham. Investigators used Graham’s cell phone to trace his location to Kansas City, Mo.
On July 20, 2021, Kansas City, Mo., police officers attempted to conduct a traffic stop, but Graham fled from officers in a Dodge van, leading them on a pursuit at speeds up to 95 miles per hour through residential neighborhoods. Graham stopped the van he was driving and, while trying to run from the police, tripped and fell, breaking his arm. Graham had almost $2,000 in his pocket. Officers searched the van and recovered almost $9,000.
After he was arrested, Graham told officers he had been on a five-day meth binge and had just taken $50 worth of crack cocaine. Graham told investigators he used some of the money stolen from Great Southern Bank to purchase the van that he was driving when officers attempted to stop him in Kansas City.
Graham has two prior felony convictions for bank robbery. He was convicted in 2004 of robbing Great Southern Bank in Joplin and First State Bank of Joplin and sentenced to 20 years in state prison. He was paroled on Jan. 6, 2020, and less than a year later stole a truck. He was sentenced for felony theft on Jan. 20, 2021, and while on probation seven months later committed the two bank robberies in Joplin and Louisburg on July 19, 2021. State charges remain pending in the Louisburg bank robbery.
This case was prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the FBI, the Joplin, Mo., Police Department, the Miami County, Kan., Sheriff’s Department, the Kansas City, Mo., Police Department and the Kansas City, Kan., Police Department.
KC Man Charged with Drug Trafficking, Illegal Firearm After Arrest During Police StandoffRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man who was arrested last night during the police standoff in the 2300 block of Blue Ridge Boulevard has been charged in federal court for offenses unrelated to the standoff.
Jimmie R. Lewis, Jr., 50, was charged in a three-count criminal complaint filed in the U.S. District Court in Kansas City, Mo. Lewis remains in federal custody pending a detention hearing pending a detention hearing on Monday, March 6.
Today’s federal criminal complaint charges Lewis with one count of possessing methamphetamine with the intent to distribute, one count of possessing a firearm in furtherance of a drug-trafficking crime, and one count of being a felon in possession of a firearm. These offenses allegedly occurred on Nov. 7, 2021.
According to an affidavit filed in support of the federal criminal complaint, Lewis was driving a Ford F-150 pickup truck eastbound on 23rd Street in Independence, Mo., on Nov. 7, 2021. Due to the truck matching the description of a stolen vehicle, an Independence police officer attempted to conduct a vehicle check. Lewis, however, led officers in a high-speed pursuit that reached speeds up to 100 miles per hour, passing other vehicles and running stop signs. Lewis’s vehicle struck a curb near Norledge and Evanston in Independence, flattening a tire. Lewis fled on foot but was apprehended.
Lewis, who had $2,084 in his pocket, was carrying a backpack while running from police officers. Inside the backpack, officers found a loaded Taurus 9mm handgun and nine plastic bags that contained a total of 395.64 grams of methamphetamine. Officers also found 19.17 grams of methamphetamine under the passenger’s seat of the Ford F-150.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Lewis has multiple prior felony convictions, the most recent being two counts of assault and one count of resisting/fleeing arrest in a Jackson County, Mo., case.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Megan Baker. It was investigated by the Independence, Mo., Police Department.
Jury Convicts Ohio Man of Unlawfully Carrying Rifle and Ammunition into Washington, D.C.Read the Press Release
WASHINGTON – Brian Carruth, 45, currently of Rockport, Texas, was found guilty after a three-day jury trial on charges stemming from an incident in which he unlawfully carried an unregistered rifle and ammunition into the District of Columbia.
The announcement was made by U.S. Attorney Matthew M. Graves and Chief Alfonso Dyson, U.S. Secret Service Uniformed Division.
According to the government’s evidence at trial, on December 5, 2021, U.S. Secret Service officers stopped Mr. Carruth, who was then a resident of Burbank, Ohio, in his vehicle near the corner of 18th St. and G St. NW, roughly one block from the White House. Officers first took note of Mr. Carruth’s pickup truck because it had what appeared to be a rifle case mounted to the bed portion of the vehicle. After being stopped, Mr. Carruth told officers that he was in Washington, D.C., on a matter of national security with the Department of the Interior and had plans to visit the White House. He later informed officers that there was a hunting rifle in the backseat area of his truck. Upon searching Mr. Carruth’s vehicle, officers found a bolt-action rifle equipped with a scope and 38 rounds of live ammunition, as well as two spent shell casings. The rifle was not registered in Washington, D.C. In addition, officers discovered documents in Mr. Carruth’s truck that appeared to discuss fundamentally restructuring and resetting the U.S. federal government.
Mr. Carruth was found guilty of one count of Carrying a Rifle or Shotgun Outside Home or Place of Business, one count of Possession of an Unregistered Firearm, and one count of Unlawful Possession of Ammunition. The guilty verdict followed a three-day trial before the Honorable Michael O’Keefe in the Superior Court of the District of Columbia. The Honorable Andrea Hertzfeld scheduled sentencing for April 28, 2023.
In announcing the conviction, U.S. Attorney Graves and Chief Dyson commended the work of those who investigated the case from the U.S. Secret Service. They also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialist Lashaune Briggs.
Finally, they commended the efforts of Assistant U.S. Attorney Thomas Derbish and Assistant U.S. Attorney Julian Ginos, who prosecuted the case, and Assistant U.S. Attorney Callie Hyde, who investigated the case.
Illinois Woman Admits Stealing $439,000 from BankRead the Press Release
ST. LOUIS – A former bank branch manager from Morrisonville, Illinois admitted on Wednesday that she’d embezzled about $439,000 from her employer.
Samantha J. Cherry, 35, pleaded guilty in front of U.S. District Judge Ronnie L. White to one felony count of theft or embezzlement by a bank officer.
Cherry admitted that between Jan. 1, 2021 and March 18, 2022, while a manager at a UMB Bank branch in St. Louis, she took cash directly from the vault and moved currency from other cash supplies into her cash drawer totals.
On March 18, 2022, Cherry told co-workers that she stole the money and gave it to her boyfriend, who she said had recently passed away.
Cherry is scheduled to be sentenced June 6. The charge carries a potential penalty of up to 30 years in prison, a $1 million fine or both, and she will be ordered to repay the money.
The FBI investigated the case. Assistant U.S. Attorney Jennifer Roy is prosecuting the case.
Hogansburg Man Sentenced for Alien Smuggling that Resulted in River Rescue OperationRead the Press Release
SYRACUSE, NEW YORK – Brian Lazore, age 45, of Hogansburg, New York, was sentenced today to 60 months in prison for conspiracy to commit alien smuggling and three counts of alien smuggling.
United States Attorney Carla B. Freedman and Chief Patrol Agent Robert N. Garcia, United States Border Patrol, Swanton Sector, made the announcement.
As part of his previous guilty plea, Lazore admitted to smuggling six Indian citizens from Cornwall, Ontario, into the United States using the St. Lawrence and St. Regis Rivers. During the smuggling event on April 28, 2022, Lazore’s boat sank in the St. Regis River, and Lazore and the Indian nationals were ultimately picked up by the St. Regis Mohawk Rescue Vessel. Lazore admitted to smuggling the aliens for his own financial gain.
Chief United States District Judge Brenda K. Sannes also imposed a 2-year term of supervised release to follow Lazore’s term of incarceration.
The United States Border Patrol and Homeland Security Investigations investigated this case. Assistant U.S. Attorney Jeffrey Stitt prosecuted the case.
Hartford Man Sentenced to 9 Years in Federal Prison for Role in Violent Robberies of AT&T StoresRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DESHAWN BAUGH, 20, of Hartford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 108 months of imprisonment, followed by three years of supervised release, for committing violent robberies of AT&T stores in Connecticut and western Massachusetts.
According to court documents and statements made in court, in 2021, Baugh, Alex Josephs, Ronaldo Smith and Shaquille Raymond committed several violent armed robberies of AT&T stores in Connecticut and western Massachusetts. The perpetrators typically entered the stores shortly before closing, pointed weapons at employees, and, at times, pistol-whipped, dragged and shoved employees toward the back inventory room. They then held the employees at gunpoint while loading large bags with cell phones and other electronics. The group stole hundreds of thousands of dollars in merchandise. A fifth co-conspirator, Saviana Bourne, helped plan the robberies, served as a getaway driver, and coordinated the sale of the stolen merchandise.
The investigation revealed that Baugh’s associates robbed AT&T stores in Newington on January 29, 2021, and Enfield on February 24, 2021. Baugh then joined the conspiracy and he and his associates robbed an AT&T store in Canton on April 15, 2021, and attempted to rob stores in Torrington and Glastonbury in May 2021, but were locked out of the stores.
On June 6, 2021, Baugh and his associates, armed with a semiautomatic pistol, two revolvers, and a semiautomatic rifle, robbed an AT&T store in West Springfield, Massachusetts. After the robbery, they fled in a vehicle driven by Bourne, who led police on a high-speed chase that ended when their vehicle collided with a Massachusetts State Police cruiser. Baugh, Josephs, Smith, Raymond and Bourne were arrested, and a search of the vehicle revealed more than $150,000 in stolen merchandise, as well as the firearms used during the robbery.
Baugh has been detained since his arrest. On November 29, 2022, he pleaded guilty to one count of Hobbs Act robbery and one count of brandishing a firearm during and in relation to a crime of violence.
Josephs, Smith, Raymond and Bourne have pleaded guilty and await sentencing.
Judge Underhill ordered Baugh to pay restitution of $124,842.45, which reflects the loss from the Canton robbery.
This matter has been investigated by the FBI's Connecticut Violent Crimes Task Force with the assistance of the Massachusetts State Police and the Newington, Enfield, Canton, Torrington, Glastonbury, and West Springfield Police Departments. The case is being prosecuted by Assistant U.S. Attorney Robert S. Ruff.
Four co-conspirators charged with bank fraudRead the Press Release
HOUSTON – The final of four charged in connection with the theft of $200,000 from a bank in Houston and allegedly transferred to New York has turned herself in to authorities, announced U.S. Attorney Alamdar S. Hamdani.
Janem Gibbs, 50, Missouri City, is expected to make her initial appearance before U.S. Magistrate Judge Andrew M. Edison at 2 p.m. today.
Arrested Friday, Feb. 24, were Munson P. Hunter III aka Paul Hunter, 48, Rosedale, New York, Gregory Thurman, 52, Richmond, and Travis Deon Wright, 51, Missouri City.
Hunter was arrested in New York where he made his appearance, while Thurman and Wright appeared in Houston.
Hunter, Thurman, Wright and Gibbs are charged with the theft of $200,000. The charges allege Gibbs was a former assistant branch manager at Capital One N.A. in Houston. She allegedly wire transferred money from a customer’s account at Capital One without his knowledge to an account at a New York City bank.
Hunter, Thurman and Wright were also charged with wire fraud for moving the stolen money through a series of other accounts at banks in New York, Virginia and Texas. The accounts were opened using fictitious names, according to the charges.
All four are charged with bank fraud. All but Gibbs are also charged with two counts of wire fraud. If convicted, each faces up to 30 years in prison and a possible $1 million maximum fine on each count.
The FBI conducted the investigation. Assistant U.S. Attorney John R. Lewis 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.
Former Executive Director of Ardmore Charitable Foundation Pleads Guilty to Fraud ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Roslyn Melodie Haile, age 64, of Ardmore, Oklahoma entered a guilty plea to an Information charging her with one count of Bank Fraud in violation of Title 18, United States Code, Section 1344(2) and one count of Tax Fraud, in violation of Title 26, United States Code, Section 7206(1). Bank Fraud is punishable by up to 30 years of imprisonment, a fine up to $1,000,000.00, or both. Tax Fraud is punishable by up to 3 years of imprisonment, a fine up to $250,000.00, or both.
The Information alleged that on or about June 27, 2018, in the Eastern District of Oklahoma, the defendant, Roslyn Melodie Haile, for the purpose of executing or attempting to execute a scheme or artifice to obtain money, funds, credits, assets, securities, or other property under the custody and control of BancFirst, the defendant knowingly embezzled funds from the More Foundation’s BancFirst account by means of false or fraudulent pretenses, representation or promises. The Information further alleged that on September 9, 2019, in the Eastern District of Oklahoma and elsewhere, the defendant willfully made and subscribed a false 2018 Form 1040, U.S. Individual Tax Return, which contained and was verified by a written declaration that it was made under the penalties of perjury and which the defendant did not believe to be true and correct as to every material matter, in that she knowingly failed to report $63,490.54 of income.
As part of the plea hearing, the defendant acknowledged that beginning prior to 2017 and continuing through in and around June 2021, she served as the Executive Director of the More Foundation, a charitable foundation based in Ardmore, Oklahoma. The defendant admitted that between in and around 2017 and in and around May 2021, she embezzled funds from the More Foundation and that her actions resulted in a total loss of $428,271.26 to the More Foundation. The defendant further acknowledged that her failure to report her true income on her taxes resulted in loss to the U.S. Treasury of $120,777.02.
The charges arose from an investigation by the Federal Bureau of Investigation and IRS-Criminal Investigations.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Kara Traster represented the United States.
Former Employee Federally Charged with Embezzling $150,000 from Jasper Healthcare Nonprofit over Nearly a DecadeRead the Press Release
EVANSVILLE- A federal grand jury indicted Michele Rose, 61, of Jasper, Indiana, on twelve counts of wire fraud and twelve counts of forging checks related to an alleged near-decade-long scheme to embezzle over $150,000 from a nonprofit healthcare organization headquartered in Jasper. The indictment was unsealed on February 28, 2023, following Rose’s arrest and initial appearance.
According to court documents, Rose served as the Medical Staff Coordinator for a nonprofit for many years. During her employment, Rose would occasionally make business-related purchases with her personal funds, for which she would be reimbursed by the business upon proof of receipt. From March 2011 to December 2020, Rose allegedly used her position to embezzle $153,769.00 by writing 165 fraudulent checks to herself for reimbursement of purchases that she never made. Rose made numerous false representations to organization leadership to obtain signed, blank checks to reimburse herself for nonexistent expenses. Once the blank checks were signed, Rose wrote them to herself for various amounts and deposed the funds into her personal account. Rose then fraudulently concealed the fake reimbursements by omitting them from financial reports to organization leadership.
If convicted, Rose faces up to 30 years’ imprisonment. A federal district court judge will determine the actual sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Jeffrey R. Adams, Special Agent in Charge of the USSS Indianapolis Field Office, and Nathan Schmitt, Chief of Police for the Jasper Police Department made the announcement.
U.S. Attorney Myers thanked Assistant United States Attorney Matthew B. Miller, who is prosecuting this case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former Bank Employee Charged with Million-Dollar Fraud and Embezzlement SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of KEVIN CHIU, a former business relationship manager at a financial institution headquartered in Manhattan, for a years-long bank fraud and embezzlement scheme to steal over $2 million from his former clients’ accounts. CHIU was arrested this morning in Brooklyn and will be presented today before U.S. Magistrate Judge James L. Cott.
U.S. Attorney Damian Williams said: “As alleged, for years, Chiu abused his position as a business relationship manager at a financial institution to steal millions from his clients, including elderly clients. Today’s arrest is yet another example of this Office’s commitment to holding accountable those who commit financial frauds, especially those who are in positions of trust within financial institutions.”
FBI Assistant Director Michael J. Driscoll said: “The complaint today alleges that Chiu exploited his access to facilitate a years-long scheme to embezzle more than two million dollars from his clients. Financial crimes like this ultimately undermine the public’s confidence in the financial system. Today’s arrest should serve as reminder to anyone willing to take advantage of their employment to steal funds - the FBI will ensure you are held accountable in the criminal justice system.”
As alleged in the Complaint:[1]
From at least on or about October 28, 2020, through on or about June 29, 2022, CHIU engaged in a scheme to steal from his clients’ accounts by using fraudulent transaction forms to transfer funds out of their accounts. He asked at least one elderly client to sign blank transaction forms when she was meeting with CHIU in person and provided that client with fake account statements so she would not know the true balance of her account, which CHIU had largely drained.
In addition, CHIU transferred stolen funds from some client accounts to others from which he already had stolen to conceal the fraud. In total, CHIU stole over $2 million from his former clients, several of whom were elderly individual clients.
CHIU used the money he stole to purchase securities and trade in the market. He also used the funds for personal expenses.
* * *
CHIU, 32, of Brooklyn, New York, is charged with one count of bank fraud, which carries a maximum sentence of 30 years in prison; one count of embezzlement by a bank employee, which carries a maximum sentence of 30 years in prison; one count of money laundering, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Lisa Daniels is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Florida Man Sentenced to Federal Prison for Possession with Intent to Distribute a Quantity of MethamphetamineRead the Press Release
NEW ORLEANS, LOUISIANA – DANTE BOWMAN, age 23, a resident of Florida, was sentenced today to 108 months imprisonment, 3 years of supervised release, and a mandatory $100 special assessment fee by U.S. District Judge Jane Triche Milazzo, after pleading guilty to a one-count indictment which charged him with possession with the intent to distribute five hundred grams or more of a mixture or substance containing a detectable amount of methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), announced U.S. Attorney Duane A. Evans.
According to court documents, following a traffic stop on Interstate-10, law enforcement officers located approximately 3.1 pounds of methamphetamine within locked canvas bags hidden in the spare tire area of a vehicle rented by BOWMAN.
This case was investigated by Homeland Security Investigations and the Louisiana State Police. The prosecution was handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
Felon Sentenced to 65 Months for Federal Gun ChargeRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that SHAWN RABATHALY, age 23, of New Orleans, Louisiana, pleaded guilty on February 28, 2023 to a violation of the Federal Gun Control Act, Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The single count indictment charged RABATHALY with being a convicted felon in possession of a firearm. Court documents reveal that RABATHALY was under surveillance by investigators, who saw him place an Anderson Model AM-15, 5.56 caliber assault rifle into a vehicle he occupied. RABATHALY is prohibited from possessing a firearm due to his criminal history. He was previously convicted of a felony offense in Orleans Parish for illegal possession of a controlled substance.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Jefferson Parish Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorney Charles Dustin Strauss of the Violent Crimes Unit.
Federal Jury Convicts West Monroe Man of Drug TraffickingRead the Press Release
MONROE, La. – A federal jury in Monroe returned a guilty verdict late yesterday afternoon convicting Paul Anthony Lewis, 50, of West Monroe, on numerous drug trafficking charges, announced United States Attorney Brandon B. Brown. United States District Judge David C. Joseph presided over the trial.
According to evidence presented at trial, agents with the U.S. Drug Enforcement Administration (DEA) and Metro Narcotics Unit of Ouachita Parish began an investigation into the suspected drug trafficking activities of Lewis. While conducting surveillance of Lewis’ stash house, agents observed large packages that were delivered by the U.S. Postal Service to that address. A subsequent search of the house revealed large quantities of methamphetamine, fentanyl, cocaine, cocaine base also known as crack cocaine, and promethazine in the house. Testimony at trial revealed that Lewis used his telephone to negotiate drug trafficking transactions with unindicted co-conspirators in Texas and in the Western District of Louisiana.
“This defendant was a trafficker of almost any type of illicit substance he could get his hands on, with ‘was’ being the operative word here,” said U.S. Attorney Brandon B. Brown. “This jury verdict ensures that the citizens of Ouachita Parish will not have to worry about Mr. Lewis’ drug dealing for many years. Lastly, it is a priority in this district that there will be zero tolerance here for the trafficking of fentanyl.”
Lewis faces a sentence ranging from 10 years to life in prison, three years of supervised release, and a fine of up to $250,000. His sentencing will be set by the court at a later date.
The case was investigated by the DEA, Metro Narcotics Unit of Ouachita Parish, U.S. Postal Inspection Service, and prosecuted by Assistant U.S. Attorney William Gaskins and Alexander C. Van Hook, Special Counsel to the U.S. Attorney.
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Dominican Man Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Dominican man pleaded guilty yesterday to illegally reentering the United States following a prior removal.
Juan Nova-Nivar, 35, pleaded guilty to one count of illegal reentry before U.S. District Court Judge Denise J. Casper, who scheduled sentencing for April 5, 2023. Nova-Nivar was indicted by a federal grand jury in March 2017 after being arrested on unrelated state charges in Essex County. He remains in state custody.
In 2012, Nova-Nivar was encountered by immigration officials in Texas, determined to be illegally present in the United States and placed into removal proceedings. He was deported to the Dominican Republic on June 6, 2012.
Sometime after his 2012 removal, Nova-Nivar illegally reentered the United States. In 2015, Nova-Nivar was arrested in Lawrence under an alias on drug distribution charges. Nova-Nivar failed to appear for a number of scheduled pre-trial hearings and a warrant was issued for his arrest.
Fingerprints obtained at the time of Nova-Nivar’s arrest provided a positive match with those from his 2012 removal and Nova-Nivar, leading to his March 2017 indictment for illegal reentry in this case.
In May 2022, Novar Nivar — while still in warrant status for the state drug distribution charges — was arrested in Lawrence again using the same alias. He was later transferred into federal custody.The charge of unlawful reentry of a deported alien provides for a sentence of up to two years in prison, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England; and Todd M. Lyons, Field Office Director of U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations in Boston made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Rollins’ Major Crimes Unit is prosecuting the case.