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Monday 27 February 2023
Wake County Man Convicted of 1995 Bombing at BTI Building Resentenced to More Than 37 Years in PrisonRead the Press Release
NEW BERN, N.C. – Stephan Bullis, the man convicted in the July 1995 bombing at the then Business Telecom, Inc. (BTI) building located in North Raleigh, was resentenced on Friday to 450 months in prison followed by five years of supervised release. Today’s sentence will keep him in prison for an additional 10 years. Bullis, now 58, was originally convicted of six charges related to the incident following a jury trial in February 1996. At the time, he was sentenced to a mandatory life sentence, followed by consecutive terms of 30 years and 235 months. Due to changes in the law, two charges were vacated in September 2022, leaving only the 235-month sentence standing. At that time, the Court set the matter for resentencing.
“Stephan Bullis caused terror in the Raleigh community because the pipe bomb at BTI came only a few short months after the Oklahoma City bombing and at a time when the infamous ‘Unabomber’ was at large,” said U.S. Attorney Michael Easley. “At the original sentencing, the Judge noted the heinous nature of the crime, the number of victims and potential victims, as well as the defendant’s lack of remorse. The defendant knowingly risked harm to countless individuals and inflicted psychological trauma on numerous others. This new sentence holds Bullis accountable for his horrific actions and keeps him behind bars where he belongs.”
According to court documents and other information presented in court, Bullis mailed two pipe bombs on or around Friday, July 7, 1995. The first package, addressed to his then wife – an employee of BTI, detonated when she opened it on Monday, July 10, 1995. The explosion destroyed most of his wife’s left hand, a portion of her upper right arm and caused numerous cuts, burns and bruises across her body. The bomb also injured a nearby colleague. The second bomb was found in an out-of-service United States Postal Service Collection bin located at Crabtree Valley Mall on July 25, 1995. The second bomb was found 10 days after the arrest of Bullis, who did nothing to warn authorities of the second pipe bomb package even though it was in a public space where an explosion had the potential to injure numerous individuals.
Evidence presented at trial showed that Mr. Bullis had begun an affair with a clerk at a video rental store and had recently increased the payout on his wife’s life insurance policy. In the months before the bombing, he began purchasing books such as “The Poor Man’s James Bond” and “The Anarchist Cookbook,” which both include designs and instructions for making explosive devices. In the month immediately before the attack, Bullis learned that his wife’s company had increased her work-funded life insurance policy and included a double-indemnity clause in the event of an accidental death. Statements made by Bullis indicated that he believed the accidental death needed to occur while his wife was at work for the double indemnity clause to apply.
Several victims of the bombing incident, including the defendant’s former wife and co-workers who were present, spoke or provided statements at the resentencing recounting the physical and psychological impacts of the crime that they experience to this day. As one victim impact statement said, “He acted with total disregard for all the people that would forever be affected by this crime…”
Bullis was convicted of six counts including two counts of mailing a pipe bomb with intent to kill another, one count of arson resulting in injury to another person, one count of attempted arson and two counts of use of a destructive device during a crime of violence. Bullis’ conviction has been upheld by the Fourth Circuit Court of Appeals and the U.S. Supreme Court declined to review the case.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The United States Postal Inspection Service, the Bureau of Alcohol, Firearms, Tobacco and Explosives (ATF), the Federal Bureau of Investigation (FBI) and the Raleigh Police Department originally investigated the case and Assistant U.S. Attorney Dennis Duffy and Special Assistant U.S. Attorney Casey Peaden handled the resentencing.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:95-CR-00142-FL.
UPS employees charged with trafficking cocaineRead the Press Release
McALLEN, Texas – A total of five people have been arrested on charges of conspiracy to possess with intent to distribute cocaine and possession with intent to distribute cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Orlando Candelario Almanza, 49, Edinburg, and Fidencio Salinas Jr., 51, Pharr, are set to make their initial appearances before U.S. Magistrate Judge Nadia S. Medrano at 9:30 a.m. today.
Also arrested last week and who made their appearance already were Javier Enrique Mendoza, 48, Pharr, and Jose Felipe Lozano, 58, Edinburg. Enrique Bernardo Gamez, 45, Hidalgo, was previously in custody on related charges and will make his appearance in the near future.
The multi-count indictment was returned Feb. 21 and unsealed upon the arrests last week.
On multiple occasions between March 24 through Oct. 3, 2022, the indictment alleges the five individuals conspired to transport cocaine through UPS packages.
Salinas and Almanza are both allegedly UPS employees who knowingly transported the packages of cocaine. The charges allege Mendoza provided the packages of cocaine to UPS employees, while Lozano allegedly provided fraudulent labels for the packages. Gamez stored the cocaine at his residence prior to transport, according to the charges.
Law enforcement seized approximately 60 kilograms of cocaine these individuals allegedly trafficked.
If convicted, they all face up to life in prison and a possible $10 million fine.
The Drug Enforcement Administration, Hidalgo County High Intensity Drug Trafficking Area Task Force and FBI conducted the investigation. Assistant U.S. Attorney Laura Garcia 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.
U.S. Attorney Nick Brown leads DOJ delegation to commemorate “Bloody Sunday,” and passage of Voting Rights Act of 1965Read the Press Release
Seattle – U.S. Attorney Nick Brown will be joined by more than 30 other U.S. Attorneys from across the country as a delegation to commemorate the 58th Anniversary of “Bloody Sunday,” the March over Selma’s Edmund Pettus Bridge, and the passage of the Voting Rights Act of 1965. Over March 4-6, 2023, U.S. Attorneys from across the country will meet with community and civil rights leaders while exploring some of the significant and educational civil rights institutions in Alabama.
“As the leaders of the Department of Justice in our districts, we can never forget the historic events that shaped our history and inform our work today,” said U.S. Attorney Brown. “We will be meeting with distinguished Federal Judge Myron Thompson, learning about the important work of the Johnson institute, and exploring the Legacy Museum and National Memorial for Peace and Justice. As we grapple with hate crimes and civil rights abuses in our own states, these resources bring home what is at stake in our civil rights work.”
In addition to the Selma March scheduled for Sunday March 5, 2023, the U.S. Attorneys will meet with Assistant Attorney General Kristen Clarke of DOJ’s Civil Rights Division, as part of the subcommittee work supporting the Attorney General Advisory Committee (AGAC).
Other meetings and visits during the trip will focus on both historic civil rights conflicts and issues that are still fresh today.
- The group will meet with distinguished jurist Myron Thompson, the first Black Assistant Attorney General for Alabama and the second Black Federal Judge in the state. As the former Chief Judge in the Middle District of Alabama, Judge Thompson was instrumental in preserving the Montgomery bus station where the Freedom Riders were attacked in 1961 and the establishment of the Freedom Rides Museum. Judge Thompson is a recipient of the Thurgood Marshall award for his “personal contributions and extraordinary commitment to the advancement of civil rights.”
- The group will also meet with Bryan Stevenson, Founder and Executive Director of the Equal Justice Initiative, a nonprofit organization that provides legal representation to people who have been illegally convicted, unfairly sentenced, or abused in state jails and prisons.
- The attorneys will visit The Johnson Institute in the Montgomery federal courthouse where many key civil rights cases were decided. The Johnson Institute demonstrates through its programming the importance of the U.S. Constitution and the independent judiciary.
- They will go to The Legacy Museum, which provides a comprehensive history on the legacy of slavery. Lynching, codified racial segregation, and the emergence of over-incarceration in the 20th century, are examined in depth and brought to life through film, images, and first-person narratives at the museum.
- At the Memorial for Peace and Justice the group will reflect on America’s History of racial injustice. Set on a six-acre site, the memorial uses sculpture, art, and design to contextualize racial terror. The site includes a memorial square with 800 six-foot monuments to symbolize thousands of racial terror lynching victims in the United States.
The U.S. Attorneys from these districts are attending the Selma and Montgomery events: Massachusetts, Connecticut, New Jersey, South Carolina, Colorado, Nevada, Montana, Idaho, South Dakota, Western and Middle Districts of Louisiana, Eastern District of Wisconsin, Eastern and Western Districts of Michigan, Middle District of Florida, Northern and Eastern Districts of California, Eastern District of Pennsylvania, Western District of Virginia, Western District of North Carolina, Southern District of Ohio, Eastern District of New York, and the Southern District of West Virginia.
U.S. Attorney Brown and Civil Rights Subcommittee Vice-Chair Rachael Rollins are appreciative of the work done by the Middle District of Alabama to host the delegation.
Two North Shore Men Indicted for Drug Conspiracy Involving Tens of Thousands of Counterfeit PillsRead the Press Release
BOSTON – Two men from the North Shore have been indicted by a federal grand jury in Boston in connection with a drug conspiracy involving tens of thousands of counterfeit pills containing methamphetamine and fentanyl.
Charles Bates, 31, of Reading, and Aaron Lenardis, 36, of Saugus, were indicted on one count each of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine and 40 grams or more of fentanyl. Lenardis was also indicted on an additional count of possession with intent to distribute 500 grams or more of methamphetamine and 40 grams or more of fentanyl and one count of being a felon in possession of firearms and ammunition. Bates and Lenardis will appear in federal court in Boston tomorrow at 3:30 p.m. They were initially charged by complaint in October 2022.
According to the charging documents, in August 2022, an investigation began into Bates after he ordered 50 kilograms of an orange binding agent commonly used to make counterfeit Adderall pills, which he was allegedly observed picking up at a UPS store in Boston.
Court filings allege that Bates exchanged text messages with drug customers and associates in which he spoke about pills that are “made to order,” described being physically present at the place where the pills were made and “watching the guy work so no corners have been cut.” It is also alleged that Bates drafted recipes for counterfeit pills that he kept on his phone or sent to others. It is alleged that the offense involved at least 136,000 counterfeit pills containing methamphetamine, equivalent to approximately 40 kilograms of such pills.
It is further alleged that after the pill press broke, Bates traveled to Pawtucket, R.I., to obtain a replacement. Bates was allegedly observed transporting a large, heavy item that appeared to be a pill press to Lenardis’ residence in Saugus.
According to court documents, a search of Lenardis’ residence in Saugus on Oct. 25, 2022 resulted in the seizure of: an industrial pill press, 14 firearms including a Glock outfitted to operate as a machinegun, at least 1.85 kilograms of pills and powder containing methamphetamine, at least 87.6 grams of pills and powder containing fentanyl and “M30” stamps commonly used to manufacture counterfeit pills.
The charges of conspiracy to possess with intent to distribute and possession with intent to distribute 500 grams or more of methamphetamine each provide for a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charges of conspiracy to possess with intent to distribute and possession with intent to distribute 40 grams or more of fentanyl each provide for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $8 million. The charge of being a felon in possession of firearms and ammunition provides for a sentence of up to 10 years in prison, up to 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 and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorney Samuel R. Feldman of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Additional Municipal Employees Plead Guilty to Fraud ConspiracyRead the Press Release
Two Metropolitan Transportation Authority (MTA) employees pleaded guilty on Feb. 9 to conspiring with another individual to engage in fraud on MTA excess vehicle auctions.
According to two plea agreements filed on Feb. 13 in the U.S. District Court for the Southern District of New York in New York City, MTA employees Dzmitry Yaniuk and Marina Yaniuk engaged in a conspiracy with a third co-conspirator, Timour Abramov, to thwart the competitive bidding process on numerous excess vehicle auctions conducted by the MTA to ensure that a company controlled by the co-conspirators submitted the winning bid and would be awarded the contract. As part of the conspiracy, Marina Yaniuk, an MTA sales specialist, provided Dzmitry Yaniuk and Abramov confidential pricing information in violation of MTA rules. Abramov previously pleaded guilty to one count of fraud conspiracy on Jan. 30.
“The MTA’s riders and New York’s taxpayers trust government employees to put public service first,” said Director Daniel Glad of the Justice Department's Procurement Collusion Strike Force (PCSF). “When public servants abuse their positions and cheat for personal gain, the Antitrust Division and its PCSF partners will hold them accountable.”
“Our office remains grateful for the diligence and commitment from our law enforcement partners at the Department of Justice, who continue to work to ensure that individuals attempting to defraud the MTA are held fully responsible for their actions and whose behavior should not unfairly reflect on tens of thousands of honest, hardworking MTA employees,” said Acting MTA Inspector General Elizabeth Keating.
Dzmitry Yaniuk and Marina Yaniuk each pleaded guilty to one count of fraud conspiracy that carries a maximum penalty of 20 years in prison, three years of supervised release, and a $250,000 fine. The fines may be increased to twice the gain derived from the crime or twice the loss suffered by the victim of the crime, if either of those amounts is greater than the statutory maximum fine. A federal district court judge will determine the defendants’ sentences after considering the U.S. Sentencing Guidelines and other statutory factors.
The guilty pleas are the result of an investigation conducted by the Antitrust Division’s New York Office, the Office of the MTA Inspector General, and the FBI Newark's Atlantic City Resident Agency . Acting Assistant Chief Steven Tugander and Trial Attorneys Milosz Gudzowski, Dina Hoffer, and Richard Samboy are prosecuting the case.
In November 2019, the Department of Justice created the PCSF, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government – federal, state and local. For more information, visit https://www.justice.gov/procurement-collusion-strike-force.
Tuskegee Man Sentenced to Federal Prison for Drug and Gun Crimes Committed While on Supervised ReleaseRead the Press Release
Montgomery, Alabama – Today, United States Attorney Sandra J. Stewart announced that Shaheyne Phillip Thomas, 28, from Tuskegee, Alabama, received a 100-month prison sentence. Thomas had previously pleaded guilty to committing federal gun and drug offenses while on supervised release from a previous conviction. The judge also ordered that Thomas serve five years of supervised release following his prison sentence.
According to Thomas’s plea agreement and other court records, on March 30, 2021, officers from the Alexander City Police Department conducted a traffic stop on a vehicle Thomas was driving. When speaking with Thomas, the officers noticed the smell of alcohol. They also saw an open container inside the car. When the officers asked Thomas for a driver’s license and proof of insurance, he was unable to produce either. The officers then searched Thomas’s vehicle and found methamphetamine, $657 in cash, and a 9mm handgun, which was located under the floormat on the driver’s side of the vehicle. On November 18, 2022, Thomas pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm in relation to a drug trafficking crime. The 100-month sentence was ordered on February 23, 2023.
At the time of the March 2021 arrest, Thomas was on federal supervised release. He had previously served approximately three years in prison following a 2018 federal conviction for being a felon in possession of a firearm. Soon after the March 2021 arrest, in June of 2021, a judge revoked Thomas’s supervised release and sentenced him to 24 months in prison for violating the terms of his release. Thomas will serve the 100-month sentence imposed last week only after he finishes serving the 24-month sentence imposed in June of 2021.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Alexander City Police Department investigated the case, with assistance from the Alabama Department of Forensic Sciences. Assistant United States Attorney Russell T. Duraski prosecuted this case.
Trussville Man Charged in Multi-Million-Dollar Kickback and Health Care Fraud CaseRead the Press Release
BIRMINGHAM, Ala. – Another individual has been charged in a series of related cases involving multi-million-dollar health care fraud conspiracies, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples, and U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Tamala E. Miles.
A federal grand jury yesterday week returned a five-count indictment against John Alan Robson, 40, of Trussville, on charges of health care fraud conspiracy, kickback conspiracy, and kickbacks. According to the indictment, Robson was a sales rep who marketed to doctors’ offices various health care products and services, including prescription drugs from specialty pharmacies, durable medical equipment (DME), and electro-diagnostic testing. Robson was paid fees for the prescriptions, DME, and tests he generated from doctors. From at least 2014 through 2018, Robson allegedly conspired with others to pay and receive kickbacks to induce medical providers to issue medically unnecessary prescriptions and order medically unnecessary goods and services, which were then billed to Medicare and other health insurers.
One of those services was electro-diagnostic testing provided by a Huntsville-based electro-diagnostic testing company called QBR, or Diagnostic Referral Community. Robson received per-patient payments from QBR for inducing medical providers to order tests from QBR. According to the indictment, medical providers received payments from QBR too; the payments were disguised as hourly payments for the ordering physician’s time and staff’s time, but in reality they were per-patient kickbacks.
The case against Robson is related to several other cases that have resulted in convictions in the last year. Dr. Eric Beck, 64, of Huntsville, pleaded guilty last year to health care fraud conspiracy for his role in the QBR scheme. John Hornbuckle, 53, of Huntsville, pleaded guilty to health care fraud and kickback conspiracy offenses for his role, as QBR’s CEO, in orchestrating the fraud. James Ewing Ray, 52, of Gadsden, pleaded guilty to health care fraud and kickback conspiracy for his role as a sales rep who marketed QBR’s scheme to medical practices and received kickbacks per test ordered.
Early last year, a jury convicted Dr. Mark Murphy, 65, and his wife Jennifer Murphy, 66, both of Lewisburg, Tennessee, of drug distribution, fraud, and kickback crimes. The Murphys operated North Alabama Pain Services, which closed its Decatur and Madison offices in early 2017. According to court documents and evidence presented at trial, the Murphys took kickbacks from QBR of more than a million dollars. In return, Dr. Murphy ordered electro-diagnostic tests from QBR for his patients, regardless of whether there was a medical need for those tests. Dr. Murphy also pre-signed prescriptions for expensive specialty topical creams, sprays, and patches, which patients then received whether they wanted the products or not. Before the Murphys went to trial, a co-defendant, Brian Bowman, 42, of Gadsden, pleaded guilty to health care fraud conspiracy. According to Bowman’s plea agreement, Bowman marketed QBR’s electro-diagnostic testing to medical providers, and was paid a fee for each test they ordered. Bowman received nearly a million dollars in fees from QBR. Bowman also marketed high-reimbursing specialty prescription drugs to the Murphys and other providers and received payments for the prescriptions he generated.
Beck, Hornbuckle, Ray, Mark Murphy, Jennifer Murphy, and Bowman are all awaiting sentencing. Other co-conspirators have already been sentenced.
The maximum penalty for conspiracy to commit health care fraud is ten years in prison; the maximum penalty for conspiracy to receive kickbacks is five years in prison; each kickback count also carries up to ten years.
The FBI and HHS-OIG investigated the case, and Assistant U.S. Attorneys J.B. Ward and Don Long are prosecuting it.
An indictment contains only charges. Each defendant is presumed innocent unless and until proven guilty.
Three Sentenced in “Grandparent Scam” Conspiracy that Defrauded Rhode Island SeniorsRead the Press Release
PROVIDENCE – Three men have been sentenced to federal prison for their roles in a “grandparent scam” conspiracy that defrauded more than a dozen Rhode Island seniors between the ages of seventy-nine and ninety-four out of more than $300,000, announced United States Attorney Zachary A. Cunha.
At least fourteen Rhode Island seniors were contacted by members of the conspiracy who impersonated family members or attorneys, claiming that a family member, often a grandchild, had been arrested and was in immediate need of cash for bail payments. The victims were directed to gather cash for these fake bail payments and to provide the money to a courier who would be sent to their home.
Bryan Valdez-Espinosa, 22, and Diego A. Alarcon, 22, of Union City, NJ; and Jason Hatcher, 40, of New York, NY, previously admitted to a federal judge that in June 2021, they traveled around Rhode Island posing as the couriers, collecting cash from victims of the scam. The elder victims were defrauded out of a total of $304,081.
In July 2022, Hatcher pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft; Alarcon and Valdez-Espinosa each pleaded guilty to conspiracy to commit wire fraud.
On Friday, Alarcon was sentenced by U.S. District Court Judge William E. Smith to 30 months of incarceration to be followed by 3 years of federal supervised release, and ordered to pay restitution totaling $304,081; Valdez-Espinosa was sentenced by Judge Smith on February 13, 2023, to 30 months of incarceration to be followed by 3 years of federal supervised release, and to pay restitution in the amount of $262,240; Jason Hatcher was sentenced on November 21, 2022, to 33 months in federal prison followed by three years of federal supervised release, and ordered to pay restitution totaling $304,081.
The cases were prosecuted by Assistant United States Attorneys Lee H. Vilker , G. Michael Seaman, and Christine D. Lowell.
The matter was investigated by Homeland Security Investigations.
United States Attorney Cunha thanks the Warwick, Cranston, East Providence, Johnston, Hopkinton, Cumberland, Coventry, North Kingstown, Barrington, and Smithfield Police Departments for their assistance with the investigation.
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Sturgis Man Indicted for Sexual Exploitation of a MinorRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Sturgis, South Dakota, man for Attempted Sexual Exploitation of a Minor, Attempted Enticement of a Minor Using the Internet, Attempted Receipt of Child Pornography, and Attempted Transfer of Obscene Material to a Minor.
Bobby Allan Aldinger, age 52, was indicted in November of 2022. He appeared before U.S. Magistrate Judge Daneta L. Wollmann on February 21, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of 15 years in custody and/or a $250,000 fine, mandatory minimum of five years of supervised release, and $100 to the Federal Crime Victims Fund for each count. Restitution may also be ordered.
The charges relate to Aldinger attempting to sexually exploit an undercover law enforcement agent posing as a 14-year-old female.
The charge is merely an accusation and Aldinger is presumed innocent until and unless proven guilty.
The investigation is being conducted by the South Dakota Division of Criminal Investigation, the South Dakota Internet Crimes Against Children Task Force, and Homeland Security Investigations. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Aldinger was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for May 2, 2023.
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St. Louis Man Accused of Producing Child Sexual Abuse Materials with Multiple VictimsRead the Press Release
ST. LOUIS – A man from St. Louis, Missouri has been charged by complaint in U.S. District Court with production of child pornography and accused of making and disseminating videos involving multiple victims.
Tracy Jenkins, 57, was charged Friday and appeared in court Monday. Charging documents say the local office of the FBI received information Thursday that FBI headquarters had potentially identified and located one of the victims in a series of videos containing child sexual abuse material that had been circulating online. Investigators verified the identity of that victim and conducted interviews that led to the identification of four other minors who were also subjected to years of sexual abuse by Jenkins that Jenkins recorded, the charging documents say.
A court-approved search of Jenkins’ home located a hard drive that contained well over 100 videos that matched those circulating online and containing recordings of the abuse of the identified minors as well as others who have not yet been identified, the charging documents say.
The complaint says Jenkins has a prior conviction for misdemeanor sexual misconduct in a 1997 case in St. Louis Circuit Court.
“The FBI has been continuously working to identify these victims since 2017 when we first became aware this child sexual abuse material,” said Special Agent in Charge Jay Greenberg of the FBI St. Louis Division. “In fact, the FBI initiative called 'Operation Rescue Me' has identified more than 600 child victims like these since 2008 using technology and painstaking investigative work.”
“The FBI worked tirelessly to identify and rescue the minors whose abuse was depicted in videos circulating online,” said U.S. Attorney Sayler A. Fleming.
The production of child pornography charge is punishable by 15 to 30 years in prison, a $250,000 or both.
Charges set forth in a criminal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the FBI. Assistant U.S. Attorney Jillian Anderson is prosecuting the case.
South Carolina Man Who Trafficked Guns into Connecticut Sentenced to 8 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MARQUIS JEROME POLLARD, 42, of Yemassee, South Carolina, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 96 months of imprisonment, followed by three years of supervised release, for firearm offenses related to an illegal gun trafficking operation.
According to court documents and statements made in court, in the spring of 2021, ATF Task Force officers learned that Pollard used straw purchasers to obtain firearms in South Carolina, and sold the firearms in Connecticut. On April 19, 2021, investigators made a controlled purchase of a 9mm Glock handgun and a drum magazine from Pollard and Quinn Mooring in New Haven in exchange for $1,500. The firearm was one of five 9mm handguns that had been purchased by an individual at a pawn shop in Port Royal, South Carolina, in the month prior to the transaction in Connecticut.
On May 3, 2021, investigators surveilled the firearm purchaser as he picked up two additional handguns from the Port Royal firearm dealer and traveled to a restaurant parking lot in Beaufort, South Carolina, where he transferred them to Pollard. When law enforcement attempted to arrest Pollard, he fled in his vehicle at a high rate of speed. Pollard drove on sidewalks and over curbs during the pursuit, and was eventually apprehended in a residential neighborhood after abandoning his car and attempting to flee on foot. Investigators recovered three firearms from his vehicle, including the two handguns that he received in the restaurant parking lot, and a loaded .40 caliber pistol with a 30-round magazine.
The investigation revealed that Pollard paid two separate straw purchasers to acquire at least 17 firearms for him. In addition to the two handguns that were seized from Pollard’s vehicle and the 9mm handgun that investigators purchased from Pollard in New Haven in April 2021, five additional firearms have been recovered by law enforcement. One was recovered from a felon in New Haven in June 2021; one was recovered from the scene of a shooting in Hamden; one was recovered after it was used in a shooting in New Haven; one was recovered from a juvenile in South Carolina after it had been used in multiple crimes; and one was recovered earlier this month in Hamden from an individual who was fleeing from law enforcement in possession of the firearm and a distribution quantity of crack cocaine. Nine firearms have not been recovered.
Pollard’s criminal history includes multiple felony convictions. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Pollard was charged by indictments in both the District of Connecticut and in the District of South Carolina. The South Carolina case was transferred to Connecticut for further prosecution.
Pollard has been detained since his arrest. On October 28, 2022, he pleaded guilty to two counts of unlawful possession of a firearm by a felon.
On January 13, 2022, Mooring, of New Haven, pleaded guilty of possession of a firearm by a felon. He awaits sentencing.
The individuals who purchased firearms for Pollard in South Carolina were charged and convicted in the District of South Carolina.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), West Haven Police Department, New Haven Police Department, Beaufort Police Department, and Beaufort County Sheriff’s Office. These cases are being prosecuted by Assistant U.S. Attorney Konstantin Lantsman. The South Carolina case is being prosecuted by Special Assistant U.S. Attorney Carra J. Henderson in the District of South Carolina.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
South Bend Man Sentenced to 78 Months in PrisonRead the Press Release
SOUTH BEND – Mustafaa Slim, 29 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Robert L. Miller, Jr. after pleading guilty to possessing with intent to distribute controlled substances and being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Slim was sentenced to 78 months in prison followed by 2 years of supervised release.
According to documents in the case, on two occasions in May 2022, Slim sold a heroin/fentanyl substance to an individual. A search warrant executed at Slim’s residence resulted in the recovery of 3 firearm, fentanyl/methamphetamine, cocaine, and over $8,000.00 in cash. This is Slim’s third conviction involving guns and his second involving drugs. Slim’s prior felony convictions preclude him from possessing the firearms.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the South Bend Police Department. This case was prosecuted by Assistant United States Attorney Jerome W. McKeever.
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.
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Seneca County Man Sentenced for Defrauding the U.S. Coast GuardRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Dennis Daniels, 73, of Romulus, NY, who was convicted of mail fraud and willful failure to file an income tax return, was sentenced to serve two years’ probation, and pay restitution, including $22,440 to the U.S. Coast Guard and students, and $115,757 to the Internal Revenue Service, by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorneys Aaron J. Mango and David J. Rudroff, who handled the case, stated that Daniels owned and operated Sea Tech Marine Training, which offered U.S. Coast Guard approved training courses to include operator uninspected passenger vessel (OUPV), one-hundred-ton masters license (Masters), assistance towing endorsement and auxiliary sail endorsement. Daniels also owned and operated Sea Test, a business that offered drug testing programs for United States Coast Guard license holders. Between 2014 and 2017, Daniels received gross income totaling approximately $665,327 but failed to file income tax returns with the Internal Revenue Service for those years. The tax owed on the unreported income was approximately $115,757.
In addition, in January and February 2019, Daniels taught 23 students the U.S. Coast Guard (USCG) approved OUPV course with a Masters upgrade. The course should have included 80 hours of classroom instruction time, however, Daniels only provided 51 hours of classroom instruction. In addition, Daniels provided the students with the answers to certain examination questions and instructed students to provide false information regarding prior sea service.
The sentencing is the result of an investigation by the U.S. Coast Guard Investigative Service, under the direction of Neal Marzloff, Special Agent-in-Charge, Central Region; the United States Postal Inspection Service, under the direction of Inspector-in-Charge Ketty Larco-Ward of the Boston Division; and the Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge, New York Field Office.
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Riverside County Tax Preparer Pleads Guilty to Knowingly Preparing False Tax Returns that Caused over $3 Million in Losses to IRSRead the Press Release
LOS ANGELES – A Riverside tax preparer pleaded guilty today to federal criminal charges for knowingly filing thousands of tax returns that falsely claimed deductions, such as fake medical expenses and bogus mortgage interest, and which caused more than $3 million in losses to the IRS.
Andrew Zepeda Hansack, 39, pleaded guilty to two counts of aiding and assisting in the preparation of a false tax return.
According to his plea agreement, starting in January 2015, Hansack prepared personal income tax returns at AJ Loyal Income Tax Service, a Riverside-based company. Hansack filed tax returns for some of his clients that included false itemized deductions. Specifically, Hansack filed tax returns for these clients that indicated they had paid mortgage interest for their homes, when in truth, as Hansack knew, his clients did not own a home. Hansack also claimed false medical expenses, sales tax, and gifts by cash or check on some tax returns he prepared that he knew to be false.
For the tax years 2015 through 2019, Hansack filed approximately 2,533 tax returns with false deductions on behalf of his clients. Because of Hansack’s criminal activity, the IRS was prevented from assessing and collecting the correct amount of taxes owed by the clients. This resulted in a loss in assessed and collected taxes to the IRS between approximately $3,369,886 and approximately $3,799,378.
For example, in February 2020, Hansack aided and assisted the preparation of a federal income tax return for a South Gate resident. This tax return falsely claimed $30,488 in itemized deductions, including deductions for mortgage interest. The false and fraudulent deductions caused the South Gate taxpayer to claim a refund from the IRS in the amount of $7,318 to which the taxpayer was not entitled.
Hansack has agreed to pay a criminal fine of at least $50,000 and also agreed to a permanent ban on him helping to prepare tax returns for anyone other than himself or his spouse.
United States District Judge Stephen V. Wilson scheduled a May 22 sentencing hearing, at which time Hansack will face a statutory maximum sentence of three years in federal prison for each count.
IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Jeff Mitchell of the Major Frauds Section is prosecuting this case.
Repeat Offender Charged with Possession of Child PornographyRead the Press Release
CAMDEN, N.J. – A Camden County man was arrested for possessing multiple images and videos of child sex abuse, U.S. Attorney Philip R. Sellinger announced today.
Matthew Knapp, 38, of Lindenwold, New Jersey, is charged by complaint with one count of possession of child pornography. He made his initial appearance on Feb. 23, 2023, before U.S. Magistrate Judge Sharon A. King in Camden federal court and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
In February 2022, an undercover law enforcement officer conducted an online session using a publicly available peer-to-peer program, which allows internet users to trade digital files. A user shared multiple files featuring images or videos of child sexual abuse from an internet address traced to Knapp’s residence. On May 10, 2022, law enforcement officers executed a search warrant at Knapp’s residence and seized, among other things, a computer, three hard drives, and a flash drive that contained depictions of child sex abuse, including images of prepubescent children.
Knapp was convicted of aggravated indecent assault of a person less than 16 years of age in Bucks County, Pennsylvania, in 2007. For a repeat offender, the charge of possession of child pornography carries a mandatory minimum term of 10 years in prison, a maximum of 20 years in prison, and a $250,000 fine.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel with the investigation leading to the arrest. U.S. Attorney Sellinger also thanked the Camden County Prosecutor’s Office, under the direction of Prosecutor Grace C. MacAulay; and the Lindenwold Police Department, under the direction of Chief of Police Michael McCarty Jr., for their assistance with the investigation leading to the arrest.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the Criminal Division in Camden.
The charge and allegations against the defendant are merely accusations, and he is presumed innocent unless and until proven guilty.
Osceola County Mortgage Loan Officer Charged with Bank Fraud and Aggravated Identity TheftRead the Press Release
Orlando, FL – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Omayra Ujaque (52, Saint Cloud) with three counts of bank fraud and one count of aggravated identity theft. If convicted, she faces up to 30 years in federal prison on each bank fraud count and a mandatory consecutive 2 years’ imprisonment for the aggravated identity theft count.
According to the indictment, Ujaque, in her capacity as a licensed mortgage loan officer, created and executed a mortgage fraud scheme targeting the financial institution where she worked. To ensure that otherwise unqualified borrowers were approved for mortgage loans, Ujaque falsified borrowers’ income through completely fabricated or inflated monthly child support payments on mortgage loan applications that she signed and certified to the financial institution’s underwriting department. In furtherance of her scheme, Ujaque created fictitious Final Judgments of Dissolution of Marriage and Final Orders Modifying Child Support showing the borrowers were entitled to receive non-existent monthly child support payments. Ujaque then used the names of judges from the Circuit Court of the Ninth District of Florida and forged their signatures on the fabricated Final Judgments of Dissolution of Marriage or Final Orders Modifying Child Support. Ujaque then created bogus Florida Department of Revenue Statements showing the party purportedly paying monthly child support payments to the borrowers and manufactured phony prepaid debit card statements showing the borrowers purportedly withdrawing the non-existent monthly child support payments.
In most cases, the children did not exist or the borrowers had never been married. Ujaque submitted bogus paperwork to the financial institution to support the false monthly income on the loan applications. Based on Ujaque’s misrepresentations, the financial institution approved and funded the mortgage loans.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General, U.S. Department of Housing and Urban Development – Office of Inspector General and the Florida Office of Financial Regulation. It will be prosecuted by Special Assistant United States Attorney Chris Poor.
North Carolina Woman Indicted for Making False StatementsRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Greensboro, North Carolina, woman on two counts of False Statement.
Erin Lynn Hower, M.D., age 38, was indicted in January of 2023. She appeared before U.S. Magistrate Judge Daneta Wollman on February 24, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to five years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
In July of 2020, at Pine Ridge, South Dakota, Hower knowingly made false statements in an employment application she submitted to Indian Health Services.
The charge is merely an accusation and Hower is presumed innocent until and unless proven guilty.
The investigation is being conducted by Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Hower was released on bond pending trial. A trial date has been scheduled for May 2, 2023.
Nigerian National Pleads Guilty to Multi-Million Dollar Fraud Schemes and Money LaunderingRead the Press Release
Earlier today, in federal court in Brooklyn, Joseph Modile, a Nigerian national, pleaded guilty to an indictment in the Eastern District of New York charging him with conspiracy to commit bank and wire fraud and aggravated identity theft, and an information filed in the Southern District of Texas and transferred to the Eastern District of New York, charging him with money laundering and wire fraud. The proceeding was held before United States Magistrate Judge Ramon E. Reyes, Jr. When sentenced, Modile faces up to 20 years’ imprisonment for each of the fraud counts and the money laundering count and a consecutive sentence of two years’ imprisonment for the aggravated identity theft count. Upon completion of his sentence, Modile faces deportation from the United States.
Breon Peace, United States Attorney for the Eastern District of New York, and Alamdar S. Hamdani, United States Attorney for the Southern District of Texas (SDTX), announced the guilty plea.
“With today’s guilty plea, Modile is revealed as a prolific fraudster and money launderer who has left a trail of fake documents, plundered bank accounts, and financial victims from Brooklyn all the way across the country,” stated United States Attorney Peace. “I commend all of the law enforcement agencies for pulling together the threads of the defendant’s complex schemes in order to hold him accountable for his multiple crimes.”
“A major figure in fraud has been taken out of the equation,” stated United States Attorney Hamdani. “Thanks to the partnerships in law enforcement and the sophisticated techniques used during the investigation, this prolific money launderer had no choice but admit his guilt and will be held accountable for his crimes.”
Mr. Peace expressed his thanks to the Federal Bureau of Investigation, U.S. Homeland Security Investigations, and the New York City Police Department, which conducted this investigation as part of an enterprise Priority Transnational Organized Crime (PTOC) of the Organized Crime Drug Enforcement Task Forces (OCDETF), the FBI’s Houston Field Office which led the OCDETF operation, the FBI’s Boston Field Office, U.S. Postal Inspection Service, Department of State, Diplomatic Security Service, New York County District Attorney’s Office, the Houston Police Department, and the Harris County District Attorney’s Office for their substantial assistance.
In a scheme that was charged in the Eastern District of New York, from January 2014 and September 2018, Modile and others defrauded victims, businesses, and financial institutions in the United States through a sophisticated home equity line of credit (HELOC) scheme involving a series of bank account takeovers. During this time, Modile and others also laundered proceeds from the bank account takeovers. In furtherance of the HELOC fraud scheme, Modile and others acquired personal identifying information (PII) of the actual holders of the targeted bank accounts at the financial institutions. The co-conspirators then used the PII to impersonate the actual holders of the targeted bank accounts, thereby gaining control of the accounts. In some cases, members of the conspiracy recruited “runners,” who impersonated the actual account holders inside bank branches using forged and fraudulent identification documents created at the direction of Modile and others. In most instances, the stolen funds were first deposited into fraudulent bank accounts set up and controlled by co-conspirators in the names of the actual victims from whom the money had been stolen. In other cases, the bank accounts into which the stolen funds were first deposited were in the names of sham corporations, which were opened using false and fraudulent identification. In total, Modile and others stole at least $5 million as part of the HELOC fraud scheme.
In a related scheme charged in the Eastern District of New York, in May 2018, Modile and others engaged in a separate Business Email Compromise scheme, using fraudulent emails and telephone calls to steal approximately $10.2 million from a victim company. The co-conspirators impersonated a contractor of an entity located in St. Paul, Minnesota, through a fraudulent email address and directed representatives of the entity to deposit the funds in an account controlled by members of the conspiracy. Modile and others then laundered those stolen funds through bank accounts controlled by members of the conspiracy.
Finally, as set forth in the information filed in the Southern District of Texas, from November 2017 until May 2018, Modile knowingly devised a scheme to defraud victims. Modile used his cellular phone to communicate with others about financial transactions for the purpose of executing his scheme to defraud. In particular, he directed an individual already convicted in Houston, Texas to withdraw cash from their bank account and provide to others. Modile also directed the individual in Houston to lie to their financial institution regarding the reason for withdrawing money from their account. In February 2018, Modile orchestrated and directed a substantial amount of money into an account of the individual in Houston. The money derived from wire fraud and Modile was aware the money came from unlawful activity.
This effort is part of an OCDETF operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney David Pitluck is in charge of the prosecution, with assistance from Paralegal Specialist William Daniels, along with Assistant United States Attorney Rodolfo Ramirez of the Southern District of Texas.
The Defendant:
JOSEPH MODILE
Age: 45
Los Angeles, CaliforniaE.D.N.Y. Docket Nos. 21-CR-108 and 23-CR-50 (DG)
Niagara Falls Woman Going to Prison for Stealing Hundreds of Thousands of Dollars from Investment Firm ClientsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Jennifer Campbell, 48, of Niagara Falls, NY, who was convicted of wire fraud, was sentenced to serve 36 months in prison and pay restitution totaling $371,332.11 by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Douglas A. C. Penrose, who handled the case, stated that Campbell was employed as the Office Manager and Chief Compliance Officer at an investment advisory firm based in Buffalo, with access to client accounts. Between November 2018, and May 2021, Campbell used this access to steal over $500,000 from several clients and from the firm itself, primarily by writing checks from client accounts, forging the signatures of either the client or a principal at the firm, and then depositing the checks into her own personal account.
Campbell took various steps to conceal her theft. In one instance, she sent a victim a falsified account statement that purported to show an account balance of approximately $148,000, when in fact the account at the time had a balance of only $93. In another instance, Campbell took funds from a client and transferred them to the bank account of one of her earlier victims. Finally, Campbell gained access to the email accounts of the firm’s principals and diverted emails that they received from anti-money laundering and financial crimes personnel at the firm’s broker-dealer, who had begun to raise questions about some of the transactions that Campbell had engaged in. In an effort to put off these inquiries, Campbell sent several emails using the email account of a firm principal. In these emails, Campbell made various false statements and submitted fake documentation in an effort to make the transactions appear legitimate.
The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Thomas Fattorusso, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
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New Orleans Man Pleads Guilty to Conspiracy, Carjacking, and Weapons ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on Monday, February 27, 2023, TYRESE HARRIS, age 19, a resident of Orleans Parish, pled guilty to a five-count superseding indictment for conspiracy, carjacking, and weapons violations. Count 1 charged HARRIS with conspiracy to commit carjackings beginning on August 19, 2021 through February 1, 2022 in violation of Title 18, United States Code, Section 371. Count 2 of the indictment charged HARRIS with a carjacking that occurred on August 19, 2021, on Washington Avenue in New Orleans, in violation of Title 18, United States Code, Section 2119(1). Count 3 charged HARRIS with using a firearm in furtherance of the carjacking, a crime of violence, in violation of Title 18, United States Code, Sections 924(c)(1)(A)(ii) and 2. In Count 4 of the indictment, HARRIS was charged with an attempted carjacking on Howard Avenue on January 18, 2022 in violation of Title 18, United States Code, Section 2119(1). Finally, in Count 5, HARRIS was charged with a carjacking resulting in serious bodily injury that occurred on February 1, 2022 on S. Carrollton Avenue in New Orleans, in violation of Title 18, United States Code, Sections 2119(2) and 2. HARRIS’ sentencing is set for May 30, 2023.
If convicted of Count 1 , HARRIS faces a maximum sentence of 5 years, a fine of up to $250,000.00, and a period of up to 3 years of supervised release. If convicted of these Counts 2 and 4, HARRIS faces a maximum sentence of 15 years of imprisonment, a fine of up to $250,000.00,and a period of up to 3 years of supervised release. If convicted of Count 3, HARRIS faces a mandatory minimum sentence of 7 years up to a maximum of life imprisonment, to be run consecutive to any other sentence imposed, a fine of up to $250,000.00, and a period of up to 5 years of supervised release. If convicted of Count 5, HARRIS faces a sentence of a maximum 25 years of imprisonment, a fine of up to $250,000.00, and a period of up to 3 years of supervised release. As to each count of the superseding indictment, HARRIS also faces payment of a mandatory special assessment fee of $100.00.
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 New Orleans Police Department. It is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
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New Orleans Man Pleads Guilty to Conspiracy, Carjacking, and Weapons ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on Monday, February 27, 2023, TYRESE HARRIS, age 19, a resident of Orleans Parish, pled guilty to a five-count superseding indictment for conspiracy, carjacking, and weapons violations. Count 1 charged HARRIS with conspiracy to commit carjackings beginning on August 19, 2021 through February 1, 2022 in violation of Title 18, United States Code, Section 371 . Count 2 of the indictment charged HARRIS with a carjacking that occurred on August 19, 2021, on Washington Avenue in New Orleans.in violation of Title 18, United States Code, Section 2119(1). Count 3 charged HARRIS with using a firearm in furtherance of the carjacking, a crime of violence, in violation of Title 18, United States Code, Sections 924(c)(1)(A)(ii) and 2 In Count 4 of the indictment, HARRIS was charged with an attempted carjacking on Howard Avenue on January 18, 2022 in violation of Title 18, United States Code, Section 2119(1). Finally, in Count 5, HARRIS was charged with a carjacking resulting in serious bodily injury that occurred on February 1, 2022 on S. Carrollton Avenue in New Orleans, in violation of Title 18, United States Code, Sections 2119(2) and 2. HARRIS’ sentencing is set for May 30, 2023.
If convicted of Count 1 , HARRIS faces a maximum sentence of 5 years, a fine of up to $250,000.00, and a period of up to 3 years of supervised release. If convicted of these Counts 2 and 4, HARRIS faces a maximum sentence of 15 years of imprisonment, a fine of up to $250,000.00,and a period of up to 3 years of supervised release. . If convicted of Count 3, HARRIS faces a mandatory minimum sentence of 7 years up to a maximum of life imprisonment, to be run consecutive to any other sentence imposed, a fine of up to $250,000.00, and a period of up to 5 years of supervised release. If convicted of Count 5, HARRIS faces a sentence of a maximum 25 years of imprisonment, a fine of up to $250,000.00, and a period of up to 3 years of supervised release. As to each count of the superseding indictment , HARRIS also faces payment of a mandatory special assessment fee of $100.00.
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 New Orleans Police Department. It is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
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New Hampshire Man Indicted for Allegedly Robbing Five Massachusetts BanksRead the Press Release
BOSTON – A New Hampshire man has been indicted by a federal grand jury in Boston for the allegedly committing a string of five bank robberies across Northern Massachusetts.
Reinaldo Ortiz, 45, of Manchester, N.H., was indicted on five counts of bank robbery. Ortiz was previously arrested and charged by criminal complaint on Jan. 12, 2023.
According to the charging documents, between March 9 and March 24, 2022, Ortiz drove from New Hampshire to Massachusetts and robbed a string of banks in Fitchburg, Lowell, Chelmsford, Wilmington and Lexington. It is alleged that Ortiz entered each of the banks disguised in a mask and demanded cash from the teller’s drawer. When the tellers complied, Ortiz allegedly made off with several thousand dollars in cash and fled the scene of the robbery in a gray 2006 Honda Accord. A subsequent investigation allegedly found Ortiz’s fingerprints on a glove discarded outside one of the robbed banks and that his cellphone movement was consistent with the robbery route.
The charge of bank robbery provides for a sentence of up to 10 years in prison, three years 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 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 Manchester (N.H.) Police Department. Assistant U.S. Attorney Benjamin A. Tolkoff of Rollins’ Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Nashville Acupuncture Clinic Agrees to Pay $300,000 to Resolve False Claims Act AllegationsRead the Press Release
NASHVILLE – U.S. Attorney Henry C. Leventis announced today that the United States has reached an agreement with Nashville Acupuncture Clinic, PLLC (NAC) to settle allegations of violating the False Claims Act (FCA). Under the terms of the agreement, NAC will pay $300,000 to resolve the allegations.
“Health care fraud is a top priority of this office,” said U.S. Attorney Leventis. “We will continue to aggressively pursue anyone involved in fraud against government programs. Whether it be a corporate entity, a clinic, or an individual provider, those who seek to exploit federal health care programs for financial gain can expect to be the focus of our civil and criminal enforcement efforts.”
The United States contends that the NAC violated the FCA by submitting false claims to the U.S. Department of Veterans Affairs (VA) for non-reimbursable acupuncture for which the claims were not authorized, not allowed as coded, or lacked supporting documentation. The settlement covers conduct from the period of January 1, 2017, through December 31, 2020, during which the VA reimbursed NAC for claims arising from false statements.
These allegations follow an internal audit by the VA - Office of Inspector General and in its published report issued in December 2021. The audit team estimated that improper payments for acupuncture amounted to about $137 million nationwide during FY 2018 and FY 2019.
“The VA OIG is committed to using all available resources, including proactive data reviews of medical provider billing to identify any billing practices that are statistical outliers. Today’s settlement is a result of those efforts,” said Special Agent in Charge Kim Lampkins of the Department of Veterans Affairs Office of Inspector General’s Mid-Atlantic Field Office. “This civil settlement is a testament to the VA OIG’s commitment to safeguarding the integrity of VA’s healthcare programs and preserving taxpayer funds."
The civil claims resolved by settlement are allegations. There has been no determination or admission of liability in this matter.
This case was investigated by the VA-Office of Inspector General. Assistant U.S. Attorney Kara F. Sweet represented the United States.
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Money Launderer for $5 Million Vehicle Sale Scam Extradited from SpainRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that ION VIOREL IONITOIU, a Romanian national who resided in Spain, was extradited to the United States on bank fraud and money laundering offenses arising from a scheme to launder money derived from an online vehicle sale scam that took in at least $5 million from defrauded consumers.
U.S. Attorney Damian Williams said: “Ionitoiu is the seventh member of an operation that laundered fraud proceeds for online swindlers who preyed on U.S. consumers who has been charged, and he will now face justice for his actions. This Office is committed to rooting out both those who commit the underlying fraud and their enablers, regardless of where they reside.”
As alleged in the Indictment, and based on other documents filed in court and statements made in court: [1]
From at least March 2019 through at least April 2021, ION VIOREL IONITOIU was an intermediary between co-conspirators who defrauded consumers who were trying to buy vehicles online and a money laundering crew that operated in Brooklyn, New York. Other members of the conspiracy, pretending to represent car dealerships, advertised vehicles that they did not own and were not authorized to sell on fake websites with domain names that sounded like legitimate car dealerships or through online marketplaces like Craigslist and eBay. Victims who responded to those advertisements and negotiated a purchase price were instructed by the purported sellers to wire payment to bank accounts in New York. Unbeknownst to the victims, the accounts were opened at IONITOIU’s direction by co-conspirators who operated in Brooklyn, including KAROL KAMINSKI, STANISLAV TUNKEVIC, ARTURAS GILYS, and SVETLANA VAIDOTIENE. Once the payments cleared, the account owners quickly withdrew the funds before the victims realized they had been defrauded. The victims never received the vehicles they thought they had bought or any refunds from the fake sellers. In total, dozens of victims were defrauded of a total of at least $5 million.
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ION VIOREL IONITOIU, 34, a Romanian national and Spanish resident, was extradited to the United States on February 24, 2023. IONITOIU is charged with one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison and a maximum fine of $1,000,000, and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison and a maximum fine of $500,000 or twice the value of the property involved in the transaction.
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.
KAROL KAMINSKI, 33, STANISLAV TUNKEVIC, 48, and ARTURAS GILYS, 41, all of Lithuania, pled guilty to one count of conspiracy to commit bank fraud. They are scheduled to be sentenced on March 28, 2023, by U.S. District Judge Analisa Torres.
SVETLANA VAIDOTIENE, 55, of Lithuania, was sentenced to time-served (10 months and eight days) on January 17, 2023. She was also ordered to forfeit and to make restitution in the amount of $271,000 and has been removed from the United States.
Mr. Williams praised the outstanding investigative work of Homeland Security Investigations. He also thanked the U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division, the United States Marshals Service, the Prosecutor General’s Office of the Republic of Lithuania, and the Lithuanian Criminal Police Bureau for their assistance in this investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Sarah Lai is in charge of the prosecution.
The charges contained in the Indictment 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 Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation as to the charged defendant.
Mexican National Sentenced to Federal Prison for Drug TraffickingRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Jesus Ruiz Velasco-Ochoa, age 38, of Guadalajara, Mexico, was sentenced to 8 years in federal prison after earlier pleading guilty to conspiracy to distribute and possession with intent to distribute more than 50 grams of methamphetamine.
According to the plea agreement, co-defendant Candelaria Vallejo-Gallo, based in Aurora and Denver, organized the interstate transportation and local distribution of large quantities of illegal drugs. Co-conspirators worked with Mexico-based sources of supply to arrange pickups of illegal drugs from California-based intermediaries working with and for those Mexico-based sources of supply. During the course of the FBI's investigation into her activities, Vallejo-Gallo arranged for the transport of large quantities of methamphetamine, heroin, cocaine, and fentanyl. To effectuate her scheme of drug distribution, Vallejo-Gallo employed a network of co-conspirators, including interstate load runners, local runners, local multi-pound drug customers (who would, in turn, distribute to lower-level drug distributors), and lieutenants to coordinate the activities of the aforementioned coconspirators.
The defendant served as one of the primary interstate load runners for the conspiracy, which lasted from at least March 19, 2019, until February 12, 2020. On July 31, 2019, for example, intercepted calls indicated the delivery of 46 pounds of methamphetamine in a load carried by the defendant. On October 21, 2019, two co-defendants started a load run to California at Candelaria Vallejo-Gallo’s direction, where they coordinated with the defendant and others to pay for drugs and transport drugs back to Colorado. On their way back to Colorado on October 23, 2019, Utah State Patrol stopped them and refused to allow the defendant, who was driving the load vehicle, to drive any further because he was unlicensed. Another co-defendant took over driving. The defendant transferred the methamphetamine he was carrying to the co-defendant so that she could complete the run. The Colorado State Patrol (CSP) conducted a traffic stop on the vehicle. A narcotics K-9 on scene alerted to the presence of narcotics in the vehicle. Based on the positive dog sniff, CSP searched the vehicle, discovering approximately 53 pounds of methamphetamine in a large suitcase inside the trunk of the sedan.
“Today’s announcement is the result of a lengthy investigation and prosecution of several defendants, which would not have been possible without the diligent work of our many law enforcement partners,” said United States Attorney Cole Finegan. “This combined effort took a significant drug trafficking organization off the streets of Denver and Aurora.”
“This individual was a member of a drug-trafficking organization (DTO) that distributed significant amounts of methamphetamine, fentanyl, heroin and cocaine onto the streets of metro Denver. As a result of this multi-agency investigation, this DTO is no longer operational in Denver and Aurora,” said Acting Special Agent in Charge Leonard Carollo. “FBI Denver is committed to working with federal, state and local partners in operations like this to dismantle DTOs, mitigate the distribution of illegal drugs and make our communities safer.”
“This multi-agency investigation and subsequent lengthy sentencing sends the strong message that HSI will use every resource and authority necessary to hold those accountable that jeopardize the safety of our communities for profit,” said Ryan L. Spradlin, Special Agent in Charge, HSI Denver. “This investigation that stretched across multiple states and crossed international borders can only be accomplished by dedicated law enforcement professionals that adopt a “One Badge” philosophy.”
“Targeting the profits generated by drug traffickers is a key step in the investigative process, and vital to disrupting and dismantling their organization,” said Andy Tsui, Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “IRS-CI, our law enforcement partners, and the United States Attorney’s Office will continue to work together to eliminate this threat to our communities.”
United States District Court Judge Raymond Moore sentenced Velasco-Ochoa on February 24, 2023.
Agents and deputies assigned to the Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force from the FBI, HSI, ICE ERO, IRS-CI, and the Douglas County Sheriff’s Office conducted the investigation and were assisted by officers and deputies from the DEA, the Colorado State Patrol, the Aurora Police Department, and the Arapahoe County Sheriff’s Office. Assistant United States Attorney Cyrus Y. Chung handled the prosecution of the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Case number: 20-cr-0028
Member of Violent North Shore Drug Enterprise Sentenced for Possessing Firearm in Fentanyl Distribution ConspiracyRead the Press Release
BOSTON – A member of a prolific and violent North Shore-based drug trafficking organization that manufactured and supplied over 30 kilograms of fentanyl pills was sentenced today in federal court in Boston for possessing firearms, including an automatic weapon.
Ernest Johnson, 34, a/k/a “Yo Pesci,” a/k/a “Mr. Live Mr. Drive,” of Salem, was sentenced by U.S. District Court Judge Leo T. Sorokin to 90 months in prison and three years of supervised release. In May 2022, Johnson pleaded guilty to one count of being a felon in possession of firearm and ammunition.
“We can only hope that the ‘Yo Pesci’ show has reached its final episode. Mr. Johnson was an active participant in a violent drug enterprise that coordinated armed robberies, engaged in violent shootings and pumped more than 500,000 deadly fentanyl pills onto our streets. He not only unlawfully possessed a stockpile of dangerous firearms, including a machine gun and large capacity magazines, but Mr. Johnson brazenly flaunted his arsenal through livestream videos,” said First Assistant United States Attorney Joshua S. Levy. “His behavior, both on and off social media, promoted violence and a complete disregard for the rule of law. His days as social media influencer for criminal enterprises have ended. Our office will continue to work with our law enforcement partners to put down violent criminal organizations and do everything in our power to keep our communities safe.”
“Today, convicted felon Ernest Johnson learned his fate for brandishing numerous firearms he wasn’t allowed to possess in support of an extremely violent drug trafficking enterprise that dealt deadly fentanyl and orchestrated numerous shootings and armed robberies, using an arsenal of firearms, including machine guns,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The FBI’s North Shore Gang Task Force will continue to work with our law enforcement partners to identify, investigate, and eliminate violent criminal organizations like the one Johnson belonged to that are responsible for inflicting serious harm on our communities.”
“Armed violent drug dealers are wreaking havoc in our communities, and using fentanyl in counterfeit prescriptions is a deadly combination. ATF will continue to work alongside our OCDETF partners to become a force multiplier in stopping these organizations from devastating our neighborhoods,” said James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division.
Johnson was arrested and charged in June 2021 along with co-conspirators Vincent Caruso, Laurie Caruso and Nicole Benton – all of whom pleaded guilty to their roles in the conspiracy. On Dec. 15, 2022, Benton was sentenced to two years in prison and three years of supervised. On June 30, 2022, Vincent Caruso was sentenced to 250 months (more than 20 years) in prison and five years of supervised release. On June 29, 2022, Laurie Caruso was sentenced to nine years in prison and four years of supervised release.
Johnson was a member of a large drug trafficking organization (DTO) operated by Vincent Caruso, a self-admitted Crip gang member, that included Benton and Vincent Caruso’s mother, Laurie Caruso, among others. The DTO specialized in the manufacture and sale of pressed counterfeit prescription pills containing fentanyl designed to imitate Percocet tablets. The DTO produced the pills using multiple large pill presses and distributed the illicit drugs to dealers throughout the North Shore. According to court papers, Caruso boasted about utilizing a pill press that weighed 1,000 pounds and was capable of producing 15,000 counterfeit fentanyl pills per hour – with pill retailing for between $10-$20, thereby generating millions of dollars in retails sales. In total, the Caruso DTO trafficked more than 30 kilograms of fentanyl, equating to 500,000 pills per year.
Johnson served in a security role as Vincent Caruso’s driver and personal assistant. As a member of the DTO, Johnson possessed and used a variety of firearms (including an AR-15; a fully automatic Glock 17; multiple large caliber revolvers; and a number of pistols equipped with large-capacity magazines) to threaten rival drug dealers and cultivate the DTO’s violent reputation in furtherance of its drug trafficking activities. The investigation determined Johnson was involved in multiple violent offenses committed on behalf of the DTO, including an attempted armed robbery in May 2021. Additionally, Johnson used social media to post and message photos and videos that showcased the DTO’s arsenal of firearms, fentanyl pills, cash and high-end jewelry. In a number of videos, Johnson boasted about his involvement in shootings, beatings and drug trafficking, promoted the DTO’s reputation for violence and gunplay, as well as identified and threatened people he believed to be a “rat” or a “snitch.” Based on multiple prior felony convictions, Johnson was prohibited from lawfully possessing firearms.
FAUSA Levy; FBI SAC Bonavolonta; ATF SAC Ferguson; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Assistance was provided by the Essex, Middlesex and Suffolk County District Attorneys’ Offices; Essex, Middlesex, Suffolk and Hancock (Maine) County Sheriffs’ Departments; U.S. Attorney’s Office for the District of Maine; Maine Drug Enforcement Agency; and the Boston, Cambridge, Chelsea, Danvers, Everett, Lynn, Malden, Salem, Saugus, Somerville, Revere, Bolton (Maine), Bangor (Maine), Portland (Maine) and Westbrook (Maine) Police Departments. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit prosecuted the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Mason County Man Sentenced to Prison for Child Pornography CrimeRead the Press Release
HUNTINGTON, W.Va. – Matthew Ryan Harper, 22, of Point Pleasant, was sentenced today to six years in prison, to be followed by 15 years of supervised release, for distribution of child pornography. Harper must also register as a sex offender.
According to court documents and statements made in court, on June 9, 2021, Harper used the Snapchat social media platform to distribute a video of a prepubescent minor female subjected to sexually explicit conduct. Harper admitted to distributing videos containing child pornography on three additional occasions in June 2021. Harper communicated with others on Snapchat and the Omegle online chat website about obtaining and trading child pornography during this time.
Harper further admitted to possessing 100 images and 38 videos of child pornography on January 25, 2022. Some of the images depicted toddlers.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Department of Homeland Security, Homeland Security Investigations (HSI).
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Julie White prosecuted 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 U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-60.
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Man Sentenced to Four Years for Committing COVID-19 Relief Fraud While on Home Confinement for Similar Financial CrimesRead the Press Release
CHICAGO — A suburban Chicago businessman has been sentenced to four years in federal prison for re-offending while still serving a federal sentence stemming from an earlier financial fraud conviction.
Shortly after being released from prison and while on home confinement near the end of his 60-month sentence for theft of government funds and aggravated identity theft, CARLOS SMITH, 58, of Park Forest began submitting fraudulent applications for government-backed loans intended to support businesses suffering economic effects from the Covid-19 pandemic. Smith first submitted a fraudulent application for the Economic Injury Disaster Loan (“EIDL”) Program, run by the Small Business Administration (SBA), in April 2020, while he was on home confinement. Shortly after obtaining the EIDL funds, and while serving the supervised release portion of this prior sentence, he fraudulently sought and obtained a second loan, this time through the Paycheck Protection Program (“PPP”). In both applications, Smith lied about the condition and performance of his purported business, CLS Financial Services, Inc., which did not operate during the year prior to the pandemic, when defendant was incarcerated. In the PPP application, Smith also lied about his criminal history and submitted fake tax documents. Between the two loans, Smith received approximately $421,900. Smith pleaded guilty to one count of wire fraud and one count of money laundering on June 22, 2022.
The sentence was imposed by U.S. District Court Judge Manish S. Shah on February 23, 2023.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Hannibal Ware, Inspector General of the U.S. Small Business Administration. The government is represented by Assistant U.S. Attorney Heidi Manschreck.
Anyone with information about attempted fraud involving COVID-19 can report it to the Department of Justice by calling the National Center for Disaster Fraud Hotline at 866-720-5721, or filing an online complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Man Sentenced to 37 Months for Burglarizing Missouri Ranger Station and Stealing National Park Service TruckRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Matthew T. Schelp on Monday sentenced a man who broke into a Shannon County, Missouri ranger station in 2021 and stole a National Park Service pickup to 37 months in prison, which will run consecutive to a probation violation in a state gun case.
Marvin R. “Mark” Remster, 40, was also ordered to pay more than $17,000 in restitution.
Remster admitted in a November guilty plea that he broke into the Round Spring Ranger Station in the Ozark National Scenic Riverways national park. Remster also admitted stealing a Chevrolet Silverado pickup owned by the National Park Service.
The burglary and theft were discovered on the night of Dec. 26, 2021, when law enforcement officials were notified that the ranger station was on fire.
Remster, who was being sought on unrelated warrants, was spotted near a truck outside a home in Crawford County on Jan. 4, 2022. He was arrested after a brief foot chase, and admitted possessing a 20-gauge shotgun that had been found in the truck. He also admitted breaking into the ranger station through a window and looking for items to steal. Remster found the truck keys, stole the truck and then drove it to an acquaintance’s garage.
Remster, of Crawford County, pleaded guilty in U.S. District Court in Cape Girardeau November 21, 2022 to charges of burglary, theft of government property and being a felon in possession of a firearm.
The National Park Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Crawford County Sheriff’s Office and the Missouri State Fire Marshal’s Office investigated the case. Assistant U.S. Attorney Jack Koester is prosecuting the case.
Louisville Man Sentenced to over 29 Years in Federal Prison for Fentanyl Distribution, Drug Conspiracy and Firearms Offenses, and for Assaulting Federal OfficerRead the Press Release
Louisville, KY – A local man, Terrell Trammell, age 28, was sentenced on February 24, 2023 to 29 years and four months years in prison, followed by a 5-year term of supervised release, for conspiracy to possess with the intent to distribute fentanyl and heroin, distribution of fentanyl, possession with the intent to distribute fentanyl, possession of a firearm in furtherance of drug trafficking, possession of a firearm by a convicted felon, and assaulting, impeding, or interfering with a federal officer. Trammell was convicted by a federal jury following a four-day trial in November 2022.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office, Acting Special Agent in Charge Robert Maynard of the ATF Louisville Field Division, and Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department made the announcement.
According to court documents and evidence presented at the trial, between July 2020, and November 5, 2020, Trammell conspired with others to distribute fentanyl and heroin in the Louisville area. On October 9, 2020, Trammell sold fentanyl to an undercover informant in southern Jefferson County. Trammell, who was a multi-time convicted felon, utilized juveniles to assist in possessing and distributing fentanyl and heroin, as well as in possessing and handling firearms in furtherance of drug trafficking.
On November 5, 2020, agents and detectives with the FBI, ATF, HSI, and LMPD attempted to execute a search warrant at an apartment in the Valley Station area of Louisville, which Trammell and other conspirators were using to store fentanyl, heroin, and firearms. Prior to execution of the warrant, Trammell and a 16-year-old crashed their vehicle into an FBI agent, injuring and pinning the agent between two vehicles. Agents ultimately seized an AR-style pistol, a Glock 9-millimeter pistol, and an extended magazine. The FBI laboratory found Trammell’s DNA on the AR-style pistol. From the apartment, agents seized approximately 41 grams of fentanyl and two firearms, one of which had been traded to Trammell in exchange for drugs.
“The significant sentence imposed by the Court is a result of the serious nature of the crimes committed by Mr. Trammell as well as his criminal past,” stated U.S. Attorney Bennett. “Individuals involved in drug dealing, illegal possession of firearms, and the assault of agents in the Western District should know they will face a lengthy term in federal prison for such conduct. I commend the work of our federal law enforcement partners, LMPD, and the prosecutors in this case.”
“Stopping violent criminals, who pedal deadly narcotics, prey upon our youth, and assault those protecting our community, is one of the most important things law enforcement does,” stated FBI Special Agent in Charge Cohen. “The increase in assaults on federal law enforcement officers—and law enforcement in general is disturbing. It will not be tolerated. Hopefully, Trammell’s sentence sends the message that prosecution and prison are the end result of engaging in such conduct.”
“ATF is pleased to have assisted Louisville Metro Police Department and the FBI in this investigation into a violent individual who placed our youth in danger by involving them in drug trafficking,” said ATF Acting Special Agent in Charge Maynard. “This sentence also demonstrates that violence against law enforcement will not be tolerated as we continue to work together to keep our communities safe.”
This case was investigated by the FBI, ATF, and LMPD, with assistance from the DEA and the U.S. Department of Homeland Security, HSI.
Assistant U.S. Attorneys Frank Dahl and Erin McKenzie represented the United States during the trial of the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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Live Oak Man Pleads Guilty to Conspiring to Possess and Transfer Unregistered Firearm SilencersRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Gregory Austin Eward (25, Live Oak) today pleaded guilty to conspiracy to possess and transfer unregistered firearm silencers. Eward faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Eward and his father and co-defendant, Dustin Eward, operated Eward Research Inc., a company that marketed and sold firearm silencers (also known as suppressors) over the internet. In lightly coded language, their website, ewardresearch.com, advertised the sale of combinations of parts designed and intended for use in assembling firearm silencers – never using the term “silencer,” but referring to individual components as “toobz,” threaded “end caps,” “spacers,” and “spools.” Sales could be completed with either cash or cryptocurrency. The website included photographs of the items for sale, which were identifiable as components of firearms silencers.
In 2018, Dustin Eward was interviewed by two FBI Special Agents. He told the agents that he lived with his son and that they operated a business out of their home. According to Dustin Eward, they produced and sold “solvent traps” and adaptors for firearms. It is common for sellers of illicit firearms silencers to falsely claim that their products are not actually silencers, but instead are “solvent traps,” that is, devices supposedly designed to catch or “trap” dirty cleaning solvent pushed through the barrel of a firearm from the chamber end and out through the muzzle.
In January and again in February 2022, an undercover ATF Special Agent ordered three silencers from the Ewards, paying for them with cryptocurrency. Surveillance video from a post office showed Gregory Eward mailing one of the parcels containing silencers that the agent eventually received.
The devices were examined by an ATF Firearms Enforcement Officer and firearms expert who concluded that the devices were consistent in design and construction with firearms silencers that he had examined in the past and he recognized the devices to be firearms silencers. The officer noted that to make the silencers functional, an end-user would need to drill center holes through the silencers’ baffles and end cap; the officer estimated, however, that this task only would require five to ten minutes to complete. Notably, also included in the parcels that the Ewards had mailed were 3D-printed tools, including a tool designed to act as a “jig” to accurately guide the drilling of center holes through the silencers. These silencers were not registered in the National Firearms Registration and Transfer Record, as required by federal law.
At the time of his arrest, on May 9, 2022, Gregory Eward had a Glock-type handgun on the back seat of the car. The pistol had no serial number and was loaded. Agents also located three rifle bump-stocks in the car’s open trunk. These devices also had no serial numbers.
During an interview after his arrest, Gregory Eward acknowledged that he was the CEO of Eward Research and that he and his father worked for the company. He volunteered that his products look like silencers, but he denied that he was selling these products as silencers or silencer kits. He later acknowledged that their products were similar to silencers, and they would operate as silencers if a hole was drilled through them. Eward claimed that these products were intended to store small items, such as fishing line, a syringe, or a towel.
On May 10, 2022, FBI and ATF Special Agents executed a search warrant at the Ewards’ home. They located approximately 105 firearms, over 12,000 rounds of ammunition, and 35 assembled firearms silencers. There was also a sufficient quantity of parts (including metallic tubes, baffles, and threaded endcaps), which were designed or redesigned, and intended for use in assembling or fabricating more than 300 additional firearm silencers.
Gregory Eward’s co-defendant, Dustin Eward, is scheduled to proceed to trial in June 2023. He is charged by indictment with conspiracy to possess and distribute unregistered silencers, possession of unregistered silencers, transfer of unregistered silencers, and threatening to assault and murder a federal law enforcement officer. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
“This outcome reflects the tireless efforts of investigators from several federal, state and local agencies,” said ATF Tampa Field Division’s Acting Special Agent in Charge Richard Coes. “Northeast Florida is much safer today, thanks to their teamwork.”
“Although law enforcement continues to fight violent crime, it remains a threat in too many of our communities,” said Sherri E. Onks, Special Agent in Charge of the FBI Jacksonville Division. “The FBI and our local, state and federal law enforcement partners remain focused on identifying and investigating those who commit violent crime, including those who traffic in illegal firearms. Let this case be a warning that we will not rest while Americans live in fear of violence in their neighborhoods.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Naval Criminal Investigative Service, the Suwannee County Sheriff’s Office, the Live Oak Police Department, the Florida Department of Law Enforcement, the Columbia County Sheriff’s Office, and the Lake City Police Department. It is being prosecuted by Assistant United States Attorneys Kirwinn Mike, Michael J. Coolican, and Cherie Krigsman.
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.
Download Plea AgreementLandlord and Former Operators of Upstate New York Nursing Home Pay $7,168,000 to Resolve False Claims Act Allegations of Worthless Services Provided to ResidentsRead the Press Release
The Justice Department, together with the New York State Office of the Attorney General, announced today that the United States and New York State have entered into settlement agreements with the landlord and several individuals and entities involved in the operation of Saratoga Center for Rehabilitation and Skilled Nursing Care (Saratoga Center), a nursing facility in Ballston Spa, New York. Leon Melohn; Alan “Ari” Schwartz; Jeffrey Vegh; Jack Jaffa; 149 Ballston Ave., LLC; Ballston Two, LLC; Saratoga Center for Care, LLC; and Saratoga Care and Rehabilitation Center, LLC (the Settling Parties) collectively agreed to pay $7,168,000 to resolve allegations that they violated the False Claims Act by causing the submission of false claims to the Medicaid program for worthless services provided to residents. Saratoga Center closed in February 2021, after this investigation was initiated.
“This settlement demonstrates the Department of Justice’s ongoing commitment to ensuring that nursing home residents receive the quality of care to which they are entitled,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When individuals or entities put the welfare of these vulnerable residents in jeopardy, they will be held accountable.”
Before issuing a license to operate a nursing home, the New York State Department of Health (NYSDOH) thoroughly reviews, among other things, an applicant’s character and competence to ensure that the operator will provide a consistently high level of care to residents. After a months-long vetting process, in 2014, NYSDOH approved Schwartz and Vegh to operate Saratoga Center with Leon Melohn, through entities he managed and controlled, acting as its landlord (Melohn and his entities are hereinafter referred to as the Landlord). This license vested in Schwartz and Vegh the nondelegable duty to oversee the operations of the home. But in or around early 2017, due to a financial dispute, the Landlord required the legally licensed operators to surrender control of Saratoga Center. The Landlord replaced them with Jaffa and a business associate of his, along with various corporate entities, even though none of them had – and they never obtained – the necessary license from the NYSDOH. Jaffa and his associate undertook all the nondelegable duties that remained the responsibility of Schwartz and Vegh.
These unlicensed individuals operated Saratoga Center from February 2017 until it closed in February 2021. During that period, the United States contends that Saratoga Center delivered worthless services to residents, and its physical conditions deteriorated to such a degree that it violated federal and state regulations. Specifically, the operators failed to adequately staff the home, and residents suffered medication errors, unnecessary falls, and the development of pressure ulcers. Additionally, Saratoga Center did not consistently maintain hot water throughout the facility, have an adequate linen inventory, and dispose of solid waste. In 2019, Saratoga Center was placed on the Centers for Medicare and Medicaid Services Special Focus Facility list – a list of the worst-performing nursing homes in the United States. Saratoga Center remained on the list until its closure.
The United States contends that, between February 2017 and February 2021, the Settling Parties knowingly submitted or caused the submission of false claims for payment to Medicaid for worthless nursing services. This settlement resolves those allegations.
“Nursing homes should protect the health and well-being of every resident,” said U.S. Attorney Carla Freedman for the Northern District of New York. “That did not happen at Saratoga Center. Instead, a business dispute between the operators and landlord led to dangerous conditions for residents and staff, and caused the submission of false claims to Medicaid for worthless services. This case demonstrates that we will hold responsible people accountable when they pocket federal funds while providing substandard care. Thank you to Attorney General James and her office for collaborating on this case.”
“We trust nursing homes to protect New Yorkers during their most vulnerable days, but the owners, unlicensed operator and landlord of Saratoga Center repeatedly violated the law for their own benefit,” said New York Attorney General Letitia James. “Instead of providing the quality care and compassion that residents deserved, the owners of Saratoga Center deceived regulators and left residents to suffer deplorable conditions and neglect. I am grateful to U.S. Attorney Freedman and team for their partnership in holding Saratoga Center accountable for putting New Yorkers in harm’s way. My office will continue to ensure nursing home residents are protected, and I encourage anyone who has witnessed alarming conditions, resident neglect, or abuse at a nursing home to contact my office.”
In connection with the settlement, the United States Department of Health and Human Services, Office of Inspector General (HHS OIG), negotiated voluntary exclusions of the individuals and entities. Schwartz; Saratoga Center for Care, LLC; 149 Ballston Ave, LLC; and Ballston Two, LLC will be excluded from Medicare, Medicaid, and all other Federal health care programs, as defined in 42 U.S.C. § 1320a-7b(f), for a period of ten years. Vegh will be excluded for eleven years. Jaffa and Saratoga Care and Rehabilitation Center, LLC, will be excluded for twenty years.
“Ensuring safety and quality of care for nursing home residents is a top priority,” said Inspector General Christi A. Grimm of the HHS OIG. “When nursing home owners, operators, and landlords are responsible for substandard care in their facilities, HHS OIG will not hesitate to pursue their exclusion and bar them from future participation in federal health care programs.”
The resolution obtained in this matter was the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, the Justice Department’s Civil Division Commercial Litigation Branch, Fraud Section, the New York State Office of the Attorney General’s Medicaid Fraud Control Unit, and the United States Department of Health and Human Services, Office of Inspector General.
Assistant U.S. Attorney Christopher R. Moran for the Northern District of New York and Attorneys Carol Wallack and Lyle Gruby of the Justice Department’s Civil Division handled this matter for the United States. Special Assistant Attorneys General Emily Auletta and Hillary Gray Chapman handled this matter for the Office of the New York Attorney General’s Medicaid Fraud Control Unit. The exclusions of the individuals and entities were negotiated by Senior Counsel Felicia Heimer for HHS OIG.
The United States’ investigation was part of its Elder Justice Initiative, which supports the efforts of state and local prosecutors, law enforcement, and other elder justice professionals to combat elder abuse, neglect, and financial exploitation, with the development of training, resources and information. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Landlord and Former Operators of Upstate New York Nursing Home Pay $7,168,000 to Resolve False Claims Act Allegations of Worthless Services Provided to ResidentsRead the Press Release
ALBANY, NEW YORK – The Justice Department, together with the New York State Office of the Attorney General, announced today that the United States and New York State have entered into settlement agreements with the landlord and several individuals and entities involved in the operation of Saratoga Center for Rehabilitation and Skilled Nursing Care (Saratoga Center), a nursing facility in Ballston Spa, New York. Leon Melohn; Alan “Ari” Schwartz; Jeffrey Vegh; Jack Jaffa; 149 Ballston Ave., LLC; Ballston Two, LLC; Saratoga Center for Care, LLC; and Saratoga Care and Rehabilitation Center, LLC (the Settling Parties) collectively agreed to pay $7,168,000 to resolve allegations that they violated the False Claims Act by causing the submission of false claims to the Medicaid program for worthless services provided to residents. Saratoga Center closed in February 2021, after this investigation was initiated.
“This settlement demonstrates the Department of Justice’s ongoing commitment to ensuring that nursing home residents receive the quality of care to which they are entitled,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When individuals or entities put the welfare of these vulnerable residents in jeopardy, they will be held accountable.”
Before issuing a license to operate a nursing home, the New York State Department of Health (NYSDOH) thoroughly reviews, among other things, an applicant’s character and competence to ensure that the operator will provide a consistently high level of care to residents. After a months-long vetting process, in 2014, NYSDOH approved Schwartz and Vegh to operate Saratoga Center with Leon Melohn, through entities he managed and controlled, acting as its landlord (Melohn and his entities are hereinafter referred to as the Landlord). This license vested in Schwartz and Vegh the nondelegable duty to oversee the operations of the home. But in or around early 2017, due to a financial dispute, the Landlord required the legally licensed operators to surrender control of Saratoga Center. The Landlord replaced them with Jaffa and a business associate of his, along with various corporate entities, even though none of them had – and they never obtained – the necessary license from the NYSDOH. Jaffa and his associate undertook all the nondelegable duties that remained the responsibility of Schwartz and Vegh.
These unlicensed individuals operated Saratoga Center from February 2017 until it closed in February 2021. During that period, the United States contends that Saratoga Center delivered worthless services to residents, and its physical conditions deteriorated to such a degree that it violated federal and state regulations. Specifically, the operators failed to adequately staff the home, and residents suffered medication errors, unnecessary falls, and the development of pressure ulcers. Additionally, Saratoga Center did not consistently maintain hot water throughout the facility, have an adequate linen inventory, and dispose of solid waste. In 2019, Saratoga Center was placed on the Centers for Medicare and Medicaid Services Special Focus Facility list – a list of the worst-performing nursing homes in the United States. Saratoga Center remained on the list until its closure.
The United States contends that, between February 2017 and February 2021, the Settling Parties knowingly submitted or caused the submission of false claims for payment to Medicaid for worthless nursing services. This settlement resolves those allegations.
“Nursing homes should protect the health and well-being of every resident,” said U.S. Attorney Carla Freedman for the Northern District of New York. “That did not happen at Saratoga Center. Instead, a business dispute between the operators and landlord led to dangerous conditions for residents and staff, and caused the submission of false claims to Medicaid for worthless services. This case demonstrates that we will hold responsible people accountable when they pocket federal funds while providing substandard care. Thank you to Attorney General James and her office for collaborating on this case.”
“We trust nursing homes to protect New Yorkers during their most vulnerable days, but the owners, unlicensed operator and landlord of Saratoga Center repeatedly violated the law for their own benefit,” said Attorney General Letitia James. “Instead of providing the quality care and compassion that residents deserved, the owners of Saratoga Center deceived regulators and left residents to suffer deplorable conditions and neglect. I am grateful to U.S. Attorney Freedman and team for their partnership in holding Saratoga Center accountable for putting New Yorkers in harm’s way. My office will continue to ensure nursing home residents are protected, and I encourage anyone who has witnessed alarming conditions, resident neglect, or abuse at a nursing home to contact my office.”
In connection with the settlement, the United States Department of Health and Human Services, Office of Inspector General (HHS OIG), negotiated voluntary exclusions of the individuals and entities. Schwartz; Saratoga Center for Care, LLC; 149 Ballston Ave, LLC; and Ballston Two, LLC will be excluded from Medicare, Medicaid, and all other Federal health care programs, as defined in 42 U.S.C. § 1320a-7b(f), for a period of ten years. Vegh will be excluded for eleven years. Jaffa and Saratoga Care and Rehabilitation Center, LLC, will be excluded for twenty years.
“Ensuring safety and quality of care for nursing home residents is a top priority,” said Inspector General Christi A. Grimm of the HHS OIG. “When nursing home owners, operators, and landlords are responsible for substandard care in their facilities, HHS OIG will not hesitate to pursue their exclusion and bar them from future participation in federal health care programs.”
The resolution obtained in this matter was the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, the Justice Department’s Civil Division Commercial Litigation Branch, Fraud Section, the New York State Office of the Attorney General’s Medicaid Fraud Control Unit, and the United States Department of Health and Human Services, Office of Inspector General.
Assistant U.S. Attorney Christopher R. Moran and Civil Division Attorneys Carol Wallack and Lyle Gruby handled this matter for the United States. Special Assistant Attorneys General Emily Auletta and Hillary Gray Chapman handled this matter for the Office of the New York Attorney General’s Medicaid Fraud Control Unit. The exclusions of the individuals and entities were negotiated by Senior Counsel Felicia Heimer for HHS OIG.
The United States’ investigation was part of its Elder Justice Initiative, which supports the efforts of state and local prosecutors, law enforcement, and other elder justice professionals to combat elder abuse, neglect, and financial exploitation, with the development of training, resources and information. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice.
Attachments:
- 149 Ballston Ave Ballston Two Settlement Agreement (2-27-2023).pdf
- Jack Jaffa Settlement Agreement (2-27-2023).pdf
- Jeffrey Vegh Settlement Agreement (2-27-2023).pdf
- Ari Schwartz and Saratoga Center Settlement Agreement (2-27-2023).pdf
Kanawha County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – George Michael Thayer, 52, of St. Albans, pleaded guilty today to possession with intent to distribute a quantity of oxycodone.
According to court documents and statements made in court, on January 24, 2022, a law enforcement officer conducted a traffic stop of a vehicle driven by Thayer. The officer searched the vehicle and found approximately 12 oxycodone pills, multiple empty sandwich bags and a set of digital scales. Thayer admitted that he possessed the oxycodone found during the vehicle search and further admitted that he intended to distribute it.
Thayer is scheduled to be sentenced on June 20, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police and the assistance provided by the Drug Enforcement Administration (DEA) Mid-Atlantic Laboratory.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Courtney L. Cremeans is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-70.
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KC Man Sentenced to 19 Years for Forcibly Resisting an Officer, Meth Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for ramming into two law enforcement vehicles while attempting to flee while in possession of methamphetamine and firearms.
Anthony M. Quinones, also known as “Droopy,” 50, was sentenced by U.S. District Judge Stephen R. Bough to 19 years in federal prison without parole. The court sentenced Quinones to 17 years in prison for the charges on which he was convicted, plus an additional two years in prison for violating the terms of his supervised release in an earlier, unrelated federal case.
On Feb. 3, 2022, Quinones pleaded guilty to one count of forcibly resisting a federal law enforcement officer, one count of possessing methamphetamine to distribute, and one count of possessing a firearm in furtherance of a drug-trafficking crime.
U.S. Marshals Service deputies tracked Quinones, who was being sought for absconding from federal supervision, to a Quality Inn on Nov. 13, 2018. Quinones left the hotel with two females. As he approached his vehicle, deputies used their vehicles to attempt to pin in Quinones’s vehicle. Quinones hopped in the driver’s seat of the vehicle and attempted to flee from the parking lot. Quinones accelerated his vehicle and crashed into the two vehicles occupied by deputies, causing significant damage. Quinones fled and eventually crashed through a gas meter and into a light pole. He got out of the vehicle and attempted to flee on foot. As he fled, he pulled a loaded Smith and Wesson .40-caliber pistol from his waistband just before he was tackled to the ground. Quinones continued to struggle with the deputies but was successfully taken into custody.
Deputies found approximately one ounce of methamphetamine and $3,500 in Quinones’s jacket pockets. Deputies searched Quinones’s vehicle and found 10 ounces of methamphetamine hidden in a stereo box on the front passenger floorboard of the vehicle. Deputies interviewed the two women who left the hotel with Quinones, who told them he was up in a hotel room using methamphetamine with them. They also said Quinones left a gun in the hotel room. The gun, a Taurus 9mm pistol, was recovered by law enforcement officers.
At the time of his arrest, Quinones was on federal supervised release following his 2004 conviction and incarceration for conspiracy to distribute methamphetamine. According to court documents, Quinones is a longtime gang member and drug trafficker with violent tendencies. While in custody in this case, he participated in fights and was caught with homemade weapons.
This case was prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the U.S. Marshals Service, the Kansas City, Mo., Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jury Convicts Warren County Man of Receiving, Transporting and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Wesley Guard, age 34, of Queensbury, New York, was convicted Friday, after a four-day jury trial, of receiving, transporting and possessing child pornography using the online social networking application Kik. United States Attorney Carla B. Freedman; Matthew Scarpino, Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office; and New York State Police (NYSP) Acting Superintendent Steven A. Nigrelli made the announcement.
The trial evidence established that between September 2020 and April 2021, Guard, a registered sex offender, used the Kik Messenger application to receive child pornography from other Kik users. Guard then sent that child pornography to another Kik account under his control as a means of collecting the material. The child pornography the defendant received from other Kik users and transported between his various Kik accounts included numerous videos depicting the sexual exploitation of young children. The trial evidence also established that, at the time of his arrest by law enforcement on April 29, 2021, Guard still possessed the child pornography he had received on Kik.
Sentencing, which will be scheduled at a later date, will be held in Albany, before United States District Judge Mae A. D’Agostino. Guard faces a mandatory minimum term of imprisonment of at least 5 years, a maximum term of imprisonment of 20 years, a fine of up to $250,000, and a term of supervised release of between 5 years and life. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The jury voted to acquit Guard of distributing child pornography to other Kik users.
This case was investigated by HSI, the NYSP Internet Crimes Against Children Task Force, and the NYSP Troop G Computer Crime Unit. Assistant U.S. Attorneys Katherine Kopita, Carling Dunham and Adrian LaRochelle prosecuted this case as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
James L. Luketich, M.D., University of Pittsburgh Medical Center, and University of Pittsburgh Physicians Agree to Pay $8.5 Million and Implement Monitoring Actions to Resolve False Claims AllegationsRead the Press Release
PITTSBURGH – Acting United States Attorney Troy Rivetti announced today that the United States has finalized a Settlement Agreement with James L. Luketich, M.D., University of Pittsburgh Medical Center (“UPMC”), and University of Pittsburgh Physicians (“UPP”), to resolve the lawsuit the United States filed against those Defendants in September 2021.
As part of that Settlement Agreement, Dr. Luketich, UPMC, and UPP agreed to pay $8.5 million to the United States to resolve the claims against them. The Defendants also agreed to create and effectuate a Corrective Action Plan for Dr. Luketich, and to submit to a year-long, third-party audit of Dr. Luketich’s physician fee services billings to Medicare. Pursuant to the Settlement Agreement, UPMC, in turn, has the ability to request information, guidance, assurance and/or an advisory opinion from the Centers for Medicare and Medicaid Services of the Department of Health and Human Services regarding certain Medicare regulations pertaining to the types of surgeries at issue in the case.
The United States’ lawsuit was filed under the False Claims Act, 31 U.S.C. 3729, et seq., and was based on a two-year investigation into allegations originally brought by Jonathan D’Cunha, M.D., a former UPMC surgeon. In its Complaint, the United States alleged that Dr. Luketich – the longtime chair of UPMC’s Department of Cardiothoracic Surgery – regularly performed as many as three, complex surgical procedures at the same time, failed to participate in all of the “key and critical” portions of his surgeries, and forced his patients to endure hours of medically unnecessary anesthesia time, as he moved between operating rooms and attended to other patients or matters. According to the United States’ Complaint, those practices amounted to violations of the statutes and regulations which prohibit “teaching physicians” (like Dr. Luketich) from billing the United States for “concurrent surgeries,” were well known to UPMC leadership, and increased the risk of surgical complications to patients.
In June 2022, the Court denied the Defendants’ attempt to dismiss the Government’s Complaint. The Settlement Agreement provides that it is neither an admission of liability by the Defendants nor a concession by the United States that its claims are not well founded. Instead, in order to avoid delay and the expense of protracted litigation, and in consideration of the promises and obligations of the Settlement Agreement, the parties agreed to resolve the case.
“This is an important settlement and a just conclusion to the United States’ investigation into Dr. Luketich’s surgical and billing practices, and UPMC and UPP’s acceptance of those practices,” said Acting U.S. Attorney Rivetti. “This Office is committed to safeguarding the Medicare and Medicaid programs, and to protecting those programs’ beneficiaries. No medical provider – however renowned – is excepted from scrutiny or above the law.”
“The Complaint alleged that Dr. Luketich used his position as a trusted doctor to defraud the health care system,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “Health are fraud costs our country billions of dollars each year. This money is not just absorbed. It is passed down to the consumer. The Settlement Agreement provides that UPMC will implement a Corrective Action Plan for Dr. Luketich, and he will now have to undergo close scrutiny of his work.”
“Ensuring physicians and other health care entities provide honest and accurate information to their patients and government health care programs, is of the upmost importance,” said Special Agent in Charge Maureen R. Dixon of the HHS-OIG Philadelphia Regional Office. “HHS-OIG will continue to work closely with our law enforcement partners to thoroughly investigate health care fraud allegations to protect the safety of patients and the integrity of taxpayer-supported health care programs.”
The False Claims Act is one of the most powerful tools in the United States’ continued efforts to combat health care fraud. The Act’s whistleblower (or “qui tam”) provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery, and permit the United States to intervene and take over the lawsuit, either in its entirety, or in part (as it did here). Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800 HHS TIPS (800-447-8477).
Assistant United States Attorneys Lee Karl and Adam Fischer litigated this case on behalf of the United States. Prior to the filing of the Government’s Complaint, this matter was investigated by U.S. Attorney’s Office for the Western District of Pennsylvania, the U.S. Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation, in conjunction with the Internal Revenue Service – Criminal Investigation, the Department of Defense Office of Inspector General, the Drug Enforcement Administration, Department of Veterans Affairs Office of Inspector General, and the Pennsylvania’s Office of the Attorney General.
The case is captioned United States of America ex rel. Jonathan D’Cunha, M.D. v. James Luketich. et al., No. 19-cv-495 (W.D. Pa.).
Jacksonville Man Sentenced to More Than 8 Years for Downloading Thousands of Videos and Images of Children Being Sexually AbusedRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Michael Ray King (42, Jacksonville) to eight years and one month in federal prison for using the internet to download and receive videos and images showing children being sexually abused. King was also ordered to serve a 15-year term of supervised release, register as a sex offender, and pay child victims a total of $50,500 in restitution. King was arrested by FBI agents at his home on November 18, 2021, and he has been detained since June 1, 2022, when his bond was revoked because he accessed the internet in violation of his release conditions. King had pleaded guilty in September 2022.
According to court documents, in 2021, the FBI was investigating individuals who were using online networks to receive and share child sexual abuse materials. This investigation revealed that in July, August, and September 2021, King used a computer connected to the internet at his Jacksonville residence to access videos depicting young children being sexually abused.
On November 18, 2021, the FBI executed a federal search warrant at King’s house and seized, among other things, an external computer hard drive that was connected by a cable to a gaming computer. A forensic examination of these devices ultimately revealed that King had collected at least 5,000 videos and at least 2,000 images depicting child sexual abuse, including young children being sexually assaulted, bestiality, and bondage. The forensic evidence further showed that King had downloaded these child sexual abuse materials from the internet using a particular file-sharing program.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney D. Rodney Brown. Assistant United States Attorney Mai Tran handled the forfeiture of assets, including the two computer devices used by King to receive and store child sexual abuse materials.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the epidemic of online child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to investigate, locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
HSI San Juan Arrests 2 Men on Child Exploitation ChargesRead the Press Release
SAN JUAN, Puerto Rico – Homeland Security Investigations (HSI) special agents with the support of the Puerto Rico Police Bureau, arrested two men charged with Transportation of Child Pornography, Possession of Child Pornography, Production of Child Pornography and Coercion and Enticement of minors, in two separate and unrelated cases.
According to court documents, in or about December 2020 through in or about January 2021, Nathan Gallarza Chaparro, 22, of Aguadilla, did knowingly transport one or more images and videos, which contained images of child pornography. Also, Gallarza Chaparro was charged with possession of child pornography. Assistant United States Attorney Ginette Milanes, from the Child Exploitation and Immigration Unit, is prosecuting this case.
In a separate case, HSI special agents arrested Eduardo Luis Marrero Casanova, 52, a religious leader in Cayey. According to the indictment, in or about December 2022, through on or about January 25, 2023, the defendant used a cellular phone, as well as internet instant messaging services, to knowingly persuade, induce, entice, and coerce two fifteen-year-old male minors to engage in sexual activity for which any person can be charged with a criminal offense, which includes the production of child pornography as defined in Title 18, United States Code (U.S.C.). Also, Marrero Casanova did knowingly employ, use, persuade, induce, entice, and coerce a minor, and attempted to engage in sexually explicit conduct for the purpose of producing any visual depiction of such conduct.
Defendant Marrero-Casanova is facing two (2) counts of coercion and enticement of a minor in violation of 18 U.S.C. § 2422(b), and two (2) counts of production of child pornography in violation of 18 U.S.C. § 2251(a). Assistant U.S. Attorney Daynelle Álvarez-Lora, of the Child Exploitation and Immigration Unit, is prosecuting the case.
“The United States Attorney’s Office and the federal and local law enforcement agencies in Puerto Rico remain steadfast in our commitment to protect our children from sexual predators,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “We remind and encourage the public to report all inappropriate behavior with children to their local authorities and together local and federal law enforcement agencies will seek justice for the victims of these crimes.”
“It is time for us as a community to stand together and protect our minors from these predators,” said Acting Special Agent in Charge Rebecca C. González-Ramos. “We have the services, the help, and the expertise. Please reach out so we can take these individuals out of our society. There will be zero tolerance for those who intend to harm our children.”
On Friday, the defendants had their initial hearings before U.S. Magistrate Judge Giselle López-Soler. The defendants were transferred to the Guaynabo Metropolitan Detention Center to await further judicial proceedings.
If convicted, Nathan Gallarza Chaparro faces a statutory minimum sentence of 5 years up to 20 years of imprisonment followed by a term of supervise release of 5 years up to life for the possession of child pornography. Eduardo Luis Marrero Casanova is facing a minimum mandatory term of imprisonment of 10 years and a maximum of life for each count of coercion and enticement; and a minimum term of imprisonment of 15 years and a maximum of 30 years for each count of production of child pornography. A federal district court judge will determine any sentence after considering the United States Sentencing Guidelines and other statutory factors.
HSI is the principal investigative arm of U.S. Department of Homeland Security and a vital U.S. asset in combatting transnational crime and threats. One of HSI’s top priorities is to protect the public from crimes of victimization, and HSI’s child exploitation investigations program is a central component of this mission. HSI is recognized as a global leader in this investigative discipline. HSI utilizes its vast authorities, international footprint, and strong interagency and public-private partnerships to identify and rescue child victims, identify, and apprehend offenders, prevent transnational child sexual abuse, and help make the internet a safer place for children.
For more information about HSI’s efforts to protect children from online sexual abuse, visit https://www.ice.gov/topics/iGuardians.
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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Grand Rapids Pain Management Practice Pays $215,000 to Resolve Allegations of Falsified Medical RecordsRead the Press Release
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten announced that Javery Pain Institute, PC, located in Grand Rapids, has agreed to pay $215,000 to resolve allegations that it violated the False Claims Act by submitting claims to Medicare for medically unnecessary moderate sedation services and falsifying medical records to support those claims.
“Truthful and accurate medical records are the bedrock of our Medicare system,” said U.S. Attorney Mark Totten. “This settlement reflects the commitment of my office in working with our law enforcement partners to protect the Medicare population and maintain the system of trust and accountability necessary between the patient, physician, and federal healthcare programs.”
The United States alleged that Javery Pain Institute billed Medicare for moderate sedation services in conjunction with certain pain injection procedures when those sedation services did not meet Medicare’s medical necessity requirements. After a Medicaid audit discovered this issue, the practice created template language in its electronic medical records to support medical necessity for these services. The practice then used this templated language for some Medicare beneficiaries receiving moderate sedation services to create medical records that contained statements that were not true. Javery Pain Institute used these statements to justify billing Medicare for moderate sedation services. Additionally, on some occasions, the practice billed Medicare for moderate sedation services when the intraservice time for those procedures was less than the ten minutes required to bill for the service.
“The alleged submission of false claims for medically unnecessary services and falsifying of documentation to justify those services, undermines our federal health care programs and potentially places patients at risk,” said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services Office of Inspector General (“HHS-OIG”). “Our agency, working with our law enforcement partners, is committed to working to hold those who seek to defraud federally funded health care programs accountable.”
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Michigan and HHS-OIG. Assistant U.S. Attorney Andrew J. Hull investigated the matter.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Former Oglala Sioux Tribe President Indicted for Wire Fraud and EmbezzlementRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Pine Ridge, South Dakota, man on six counts of Wire Fraud, one count of Larceny, and one count of Embezzlement and Theft from an Indian Tribal Organization.
Julian Bear Runner, age 37, was indicted in September of 2022. He appeared before U.S. Magistrate Judge Daneta Wollman on February 24, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Between 2019 and 2020, at Pine Ridge, Bear Runner, while acting in his capacity as President of the Oglala Sioux Tribe, fraudulently submitted travel vouchers for official business travel and received payment for travel that he did not take.
The charges are merely accusations and Bear Runner is presumed innocent until and unless proven guilty.
The investigation is being conducted by Health and Human Services, Office of Inspector General, and the FBI. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Bear Runner was remanded to the custody of the US Marshals Service pending trial. A trial date has been scheduled for May 2, 2023.
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Former FBI Special Agent Sentenced to 6 Years in Prison for Accepting Bribes Paid by Attorney Linked to Organized Crime FigureRead the Press Release
LOS ANGELES – A former FBI special agent was sentenced today to 72 months in federal prison for conspiring to accept at least $150,000 in cash bribes and other items of value in exchange for providing sensitive law enforcement information to a corrupt attorney with ties to Armenian organized crime.
Babak Broumand, 56, of Lafayette, California, was sentenced by United States District Judge R. Gary Klausner. In addition to the prison sentence, Judge Klausner ordered Broumand to pay a $30,000 fine and to forfeit $132,309 linked to his criminal activity.
“Mr. Broumand took an oath of office, swearing to defend the laws of the United States and to uphold the high standards of the FBI. He violated this solemn promise and now he will face the consequences of his choice,” said United States Attorney Martin Estrada. “Not only did this one-time special agent put his self-interest above all else, but he also did so while providing support to other criminals who compromise public safety. I am grateful for our hard-working law enforcement partners, including the FBI, who worked to uncover this misconduct and brought this corrupt agent to justice.”
“Today's sentencing of Mr. Broumand, a former FBI agent who abandoned his pledge to serve the American people in exchange for a lavish lifestyle, is gratifying and reaffirms the FBI’s commitment to weeding out corruption of public officials, including those from within.” said Donald Alway, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “I'm proud of the agents and prosecutors who devoted years to this sensitive investigation and trial which resulted in today's outcome and a restoration of trust by the people we serve.”
A federal jury in October 2022 found Broumand guilty of one count of conspiracy, two counts of bribery of a public official, and one count of monetary transactions in property derived from specified unlawful activity. The jury found Broumand not guilty of one count of bribery of a public official and one count of monetary transactions in property derived from specified unlawful activity.
Broumand has been in federal custody since the jury returned the guilty verdict against him at the conclusion of an 11-day trial.
“Broumand conspired with the very types of criminals he was trusted to investigate, taking bribes in exchange for information. Today’s sentencing should send a clear message that no one is above the law, and that the Department of Justice Office of the Inspector General is committed to rooting out this kind of corruption,” said Zachary Shroyer, Special Agent in Charge of the Department of Justice Office of the Inspector General Los Angeles Field Office.
“Every law enforcement officer took an oath to never betray their integrity and to enforce the law with fairness and justice when they enter this profession. Unfortunately, Babak Broumand betrayed that oath and violated the trust bestowed on him by the American people when he released sensitive law enforcement information in exchange for money, gifts, and other personal benefits,” said Darren Lian, Special Agent in Charge of the IRS Criminal Investigation’s Oakland Field Office. “Today’s sentence shows that no one is above the law, and those who dare to cross the line will be held responsible for their unlawful actions. IRS Criminal Investigation, along with its law enforcement partners, are fully committed to purse those who undermine the integrity of our justice system.”
Broumand was a Bay Area resident and served as an FBI special agent from January 1999 until shortly after search warrants were served on his home and businesses in 2018. He was responsible for national security investigations and was assigned to the FBI Field Office in San Francisco.
From January 2015 to December 2018, Broumand accepted cash, checks, private jet flights, a Ducati motorcycle, hotel stays, escorts, meals, and other items of value from an organized crime-linked attorney – identified in court papers as “E.S.,” and each man acted to conceal the true nature of their corrupt relationship.
In return for the bribe payments and other items of value, Broumand conducted law enforcement database inquiries and used those inquiries to help E.S. and his associates avoid prosecution and law enforcement monitoring. Specifically, Broumand informed E.S. whether a particular person or entity was under criminal investigation by stating that E.S. should “stay away” from that person or that they were “OK.”
To conceal the nature of their corrupt relationship, Broumand made it falsely appear that E.S. was working as an FBI source. Broumand wrote false reports after the fact to make it appear that he conducted legitimate law enforcement database inquiries.
In exchange for the illegal inquiries, E.S. paid Broumand at least $150,000 in cash and check bribes, including a Ducati motorcycle and accessories valued at more than $36,000. The bribes were deposited into the accounts for Love Bugs LLC, a Lafayette-based lice-removal hair salon business that Broumand and his wife started in 2007.
Soon after the bribery scheme began, E.S. asked Broumand to query the FBI database for Levon Termendzhyan, an Armenian organized crime figure for whom E.S. had worked. The database search “rang all the bells” and revealed an FBI investigation in Los Angeles, according to court documents, which note that Broumand accessed the FBI case file on Termendzhyan repeatedly in January 2015. Broumand also allegedly accessed the Termendzhyan FBI case file in May 2016.
Termendzhyan, a.k.a. “Lev Aslan Dermen,” was found guilty in March 2020 in federal court in Utah on criminal charges related to a $1 billion renewable fuel tax credit fraud scheme. His sentencing hearing in the District of Utah is scheduled for April 6.
In December 2015, at E.S.’s request, Broumand searched a confidential FBI database for information about Sam Sarkis Solakyan, a medical imaging company CEO, and later warned E.S. to “stay away” from Solakyan, who was “trouble,” meaning that Solakyan was under law enforcement investigation. Solakyan eventually was charged in San Diego federal court, tried, convicted and sentenced to five years in federal prison for running a scheme that submitted more than $250 million fraudulent claims through California’s workers compensation system.
In May 2016, Broumand interfered with an FBI investigation into Felix Cisneros Jr., a corrupt special agent with Homeland Security Investigations who also had ties to Termendzhyan. Cisneros was convicted at trial in two different cases. The first trial, in 2018, resulted from Cisneros’s corrupt acts for Termendzhyan. The second trial, in April 2022, resulted from Cisneros’s corrupt acts for E.S. Cisneros was sentenced to 10 years in federal prison.
The FBI, the United States Department of Justice’s Office of the Inspector General, and IRS Criminal Investigation investigated this matter. The United States Department of Homeland Security’s Office of the Inspector General provided assistance at Broumand’s trial.
Assistant United States Attorneys Michael J. Morse of the Public Corruption and Civil Rights Section, Juan M. Rodriguez of the Environmental and Community Safety Crimes Section, and Tara B. Vavere of the Asset Forfeiture and Recovery Section prosecuted this case.
Former Erie Coke Employee Pleads Guilty to Violating the Clean Air ActRead the Press Release
ERIE, PA - A resident of Fairview, Pennsylvania pleaded guilty in federal court on Feb. 24, 2023, to conspiracy to violate the Clean Air Act, Acting United States Attorney Troy Rivetti announced today.
David Stablein, 54, pleaded guilty to one count before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, Stablein admitted the facts set forth in the Information filed in the case; that is, from October 2015 to September 2018, Stablein conspired with his supervisor Anthony Nearhoof and others to violate the Clean Air Act while employed at the Erie Coke Corporation. The conspiracy involved employees opening heating flues on top of the coke oven batteries by removing their caps to allow combustion gases to vent directly into the air to avoid the plant’s environmental monitoring system. Stablein and Nearhoof, who is pending trial, personally removed flue caps, and directed others to do so, in order to vent coke oven gas directly into the atmosphere to reduce opacity levels being read by the monitoring system through the smokestack. The improper venting of coke oven gas to bypass the monitoring system and minimize opacity readings resulted in the spread of air pollutants outside the facility’s boundaries to adjoining residential and commercial areas, which presented potential dangers to the public’s health and safety.
Judge Baxter scheduled sentencing for June 30, 2023. The law provides for a total sentence of not more than five years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Nicole Vasquez Schmitt and Michael L. Ivory, and Special Assistant United States Attorneys Perry D. McDaniel and Martin Harrell are prosecuting this case on behalf of the government.
The Environmental Protection Agency conducted the investigation that led to the prosecution of Stablein.
Former Bank Employee Convicted After Trial for Fraudulently Opening Bank AccountsRead the Press Release
Greenbelt, Maryland – A federal jury in Maryland has convicted Diape Seck, age 29, of Rockville, Maryland for his role in a bank fraud scheme in which he and his co-conspirators obtained or attempted to obtain almost $2 million by fraud, including by stealing checks from the mail of churches and religious institutions. The guilty verdict was returned late on February 24, 2023.
The guilty verdict was announced by Erek L. Barron, United States Attorney for the District of Maryland; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Acting Special Agent in Charge Mike Serra of the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG); Chief Marcus Jones of the Montgomery County Police Department; Chief Terry Sult of the Cary, North Carolina, Police Department; and Sheriff Dusty Rhoades of the Williamson County, Tennessee, Sheriff’s Office.
According to the evidence presented at his eight-day trial, from at least January 2019 to January 2020, Seck, a customer service representative with Bank A, conspired with Mateus Vaduva, Marius Vaduva, Vlad Baceanu, Nicolae Gindac, Florin Vaduva, Marian Unguru, Daniel Velcu, Vali Unguru and others to commit bank fraud. Specifically, the evidence showed that Seck fraudulently opened bank accounts in fake identities in exchange for cash bribes. Co-conspirators engaged in fraud that included fraud involving rental cars and the deposit of checks stolen from the incoming and outgoing mail of churches and other religious institutions, into the fraudulently opened bank accounts. The co-conspirators then withdrew the funds and spent the fraudulently obtained proceeds.
As detailed in the trial evidence, Diape Seck facilitated the opening of hundreds of bank accounts at Bank A for his co-conspirators, who used purported foreign identity documents, often but not universally Romanian, to fraudulently open bank accounts with him at Bank A, as well as bank accounts at other victim financial institutions. Seck opened accounts for co-conspirators without their presence in the bank, without verifying identity information, and opened accounts for co-conspirators who opened multiple accounts at a time under different identities. To conceal his improper activities, Seck opened accounts for the co-conspirators at the same time he conducted legitimate bank activities. The co-conspirators paid Seck cash in exchange for him opening the fraudulent bank accounts.
According to court documents and witness testimony, Seck violated numerous bank policies in opening approximately 412 checking accounts in a one-year period from approximately January 2, 2019 through January 3, 2020, relying predominantly on purported Romanian passports and driver's license information. Checks payable to and written from churches and other religious institutions from around the country were deposited into many of the 412 checking accounts which were not opened in the names of the churches.
The co-conspirators fraudulently negotiated the stolen checks by depositing them into the victim bank accounts, including the fraudulent accounts opened by Seck at Bank A, often by way of automated teller machine (ATM) transactions. After depositing the stolen checks into the bank accounts, the conspirators made cash withdrawals from ATMs and purchases using debit cards associated with the bank accounts.
Co-conspirators Vlad Baceanu, age 38; Daniel Velcu, age 43; Marian Unguru, age 36; and Vali Unguru, age 20, all of Baltimore, Maryland, previously pled guilty to conspiracy to commit bank fraud and wire fraud. Nicolae Gindac, age 52, of Dania Beach, Florida was sentenced to 54 months in federal prison and ordered to pay restitution of $1,096,660.11; Mateus Vaduva, age 29, of Baltimore was sentenced to five years in federal prison and ordered to pay restitution of $1,320,885.84; Florin Vaduva, age 31, of Dania Beach, Florida was sentenced to 51 months in federal prison and ordered to pay restitution of $1,096,660.11; and Marius Vaduva, age 28, of Baltimore was sentenced to 42 months in federal prison and ordered to pay restitution of $1,334,230.84, after they previously pled guilty to conspiracy to commit bank and wire fraud.
Seck faces a maximum sentence of 30 years in federal prison for each of conspiracy to commit bank fraud; bank fraud; making false entries in bank records; and receipt of a bribe or reward by a bank employee. U.S. District Judge Theodore D. Chuang has scheduled sentencing for Seck on June 2, 2023, at 2:30 p.m.
United States Attorney Erek L. Barron commended the U.S. Postal Inspection Service, HSI, the FDIC Office of Inspector General, the Montgomery County Police Department, the Cary (North Carolina) Police Department, and the Williamson County (Tennessee) Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Elizabeth Wright and Darren Gardner, 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 www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Former Aroostook County Man Faces up to 20 Years for Role in Penobscot & Aroostook County Drug TraffickingRead the Press Release
BANGOR, Maine: A former Aroostook County resident pleaded guilty in U.S. District Court in Bangor today to conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl.
According to court records, between January 2018 and December 2021, Andrew Adams, 31, along with others, trafficked methamphetamine and fentanyl in Penobscot and Aroostook counties. His participation in the conspiracy resulted in contacts with local law enforcement that led to the seizure of drugs, firearms, drug paraphernalia and other items.
Adams faces up to 20 years imprisonment. He will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Drug Enforcement Administration, Maine Drug Enforcement Agency, and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistance was provided by the Orono, Bangor, Brewer, Caribou, Presque Isle, and Houlton police departments. U.S. Attorney Darcie N. McElwee also recognized the cooperation and coordination provided by the Maine State Attorney General’s Office and the Aroostook County District Attorney’s Office.
Organized Crime Drug Enforcement Task Forces: This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Felon Convicted of Possessing a Firearm and AmmunitionRead the Press Release
RICHMOND, Va. – A federal jury convicted a Richmond man last week on charges of possessing a firearm and ammunition as a convicted felon.
According to court records and evidence presented at trial, Rashon Torrence, 26, a convicted felon, threw a firearm during a foot pursuit with a Richmond Police Department officer. Around midnight on January 3, 2022, officers saw a truck speeding in a residential area. The driver, later identified as Torrence, was wearing a black ski mask. The officers attempted to conduct a traffic stop of Torrence, and a brief vehicle pursuit ensued. Torrence then stopped the truck and ran, with an officer in pursuit. When Torrence got to a patch of trees, he made a throwing motion, and the officer saw a black object leave Torrence’s hand. After detaining Torrence, the officer went back to the trees and found a Ruger 9mm semi-automatic pistol.
Officers also recovered from Torrence 10 pills of methamphetamine and 44 pills of Clonazolam, a Schedule I controlled substance in Virginia. Torrence also had $352 in his pocket. The officers also recovered an additional 122 Clonazolam pills from a bottle near to where Torrence was arrested.
Torrence has a prior conviction for possessing a firearm as a convicted felon.
Torrence faces a maximum penalty of 10 years in prison when sentenced on June 27. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Michael Weddel, Acting Special Agent in Charge of the ATF’s Washington Field Division; and Rick Edwards, Acting Chief of Richmond Police, made the announcement after U.S. District Judge David J. Novak accepted the verdict.
Assistant U.S. Attorneys Jessica Wright and Stephen Miller are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-113.
Dominican Citizen Pleads Guilty to Selling Cocaine while Illegally in the United StatesRead the Press Release
SYRACUSE, NEW YORK – Jose Campusano, age 38, a citizen of the Dominican Republic residing in Utica, New York, pled guilty to selling cocaine and illegally reentering the United States.
The announcement was made by United States Attorney Carla B. Freedman; Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division; and Thomas Brophy, Field Office Director of the U.S. Immigration and Customs Enforcement-Enforcement and Removal Operations (ICE-ERO), Buffalo Field Office.
As part of his plea, Campusano admitted that, at some point after being deported from the United States in 2009, he returned without permission. While he was living in the Utica area illegally, Campusano sold cocaine to another individual on six separate dates. The charges to which Campusano pled guilty carry a maximum sentence of 20 years in prison, a fine of up to $1,000,000, and a term of supervised release of at least 3 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The U.S. Drug Enforcement Administration (DEA) and U.S. Immigration and Customs Enforcement-Enforcement and Removal Operations (ICE-ERO) are investigating the case with assistance from the New York State Police, Oneida County Sheriff’s Department, Onondaga County District Attorney’s Office, Syracuse Police Department, and Utica Police Department. Assistant U.S. Attorney Jessica N. Carbone is prosecuting the case.
District Man Convicted by Jury for Assault on a Member of the LGBTQ+ CommunityRead the Press Release
Defendant Assaulted Man as He Walked Home
WASHINGTON – Anthony Duncan, 42, of Washington, D.C., was found guilty by a jury today for assaulting a pedestrian in May 2022, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Duncan was found guilty of assault with significant bodily injury and faces up to three years in prison. The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Lynn Leibovitz scheduled sentencing for April 28, 2023.
According to the government’s evidence presented at trial, on May 21, 2022, the victim was walking home on 15th Street in Northwest, Washington, D.C. from a Bocce Ball game when he was confronted by Duncan. Duncan, who was a stranger to the victim, accused the victim of directing a sexually suggestive act towards him and took offense. The victim vehemently denied making any such advance. As Duncan confronted the victim for this perceived advanced, he pulled out his cell phone, and recorded himself physically attacking the victim. Duncan broke the victim’s nose and teeth, and the victim required numerous stitches to stop the bleeding. Duncan called the victim a derogatory gay slur numerous times as he attacked the victim.
In announcing the conviction, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the work of those who handled the cases at the U.S. Attorney’s Office, including Assistant U.S. Attorneys Jared English and Randle Wilson, who investigated and prosecuted the case.
Des Moines Woman Sentenced to 45 Years in Prison for Child Exploitation ChargesRead the Press Release
Des Moines, IA – A Des Moines woman was sentenced Friday, February 24, 2023, to a total of 45 years in prison for conspiring to produce child pornography and child exploitation.
According to court documents, Ashley Marie Butler, age 33, produced child pornography on at least three occasions in 2021 when she videorecorded her co-defendant and husband, Shane William Butler, sexually abusing a minor victim. Videos of the sexual abuse of the minor victim and child pornography were located on Shane Butler and Ashley Butler’s cell phones.
Chief United States District Court Judge Stephanie Marie Rose imposed a 30-year sentence on the conspiracy count and a 15-year sentence on the production count, to be served consecutively, for a total sentence of 45 years. After her prison term, Butler was also ordered to serve a total of 10 years of supervised release. In addition, Butler was ordered to pay $3,000 in restitution as well as a $200 fine to the Crime Victim’s Assistance Fund.
Co-defendant Shane Butler also received a 45-year sentence in December 2022.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Des Moines Police Department, the Polk County Attorney’s Office, the Iowa Internet Crimes Against Children Task Force, and the Federal Bureau of Investigation Human Trafficking and Child Exploitation Task Force investigated the case. The United States Attorney’s Office for the Southern District of Iowa prosecuted the case.
David Apps Pleads Guilty to Defrauding Broad Street United Methodist ChurchRead the Press Release
CHATTANOOGA, Tenn. - On February 27, 2023, David Michael Apps, 50 of Chattanooga, Tennessee, pleaded guilty to an information charging him with wire fraud in violation of 18 U.S.C. 1343. Apps is scheduled to be sentenced on July 27, 2023 at 2:00 p.m., before the Honorable Charles E. Atchley, Jr., in the United States District Court for the Eastern District of Tennessee at Chattanooga.
According to court documents filed by the United States, from 2014 through 2021, Apps, the business manager of Broad Street United Methodist Church in Cleveland, Tennessee, devised a scheme in which he used an official church credit card to pay for personal expenses in excess of $1.5 million dollars. Some of these expenses included payment for personal travel, automobiles, medical bills for family members, boat/watercraft and marina fees, and firearms, none of which was related to church business. Apps also wrote checks to himself under the guise of church member donations to support supposed medical bills relating to his false claim that he had brain cancer. The specific count of conviction involves the use of the church credit card to buy a luxury watch from an expensive retailer in California for $3,711.
Apps faces a possible sentence of up to 20 years’ imprisonment on the wire fraud count, along with significant fines, restitution, and forfeiture of property.
Assistant United States Attorney Steven Neff represents the United States.
The investigation was conducted by the FBI as part of the Smoky Mountains Financial Crimes Task Force.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
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