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30 March 2023
Justice Department, Federal Trade Commission and European Commission Hold Third U.S.-EU Joint Technology Competition Policy DialogueRead the Press Release
DOJ Assistant Attorney General Kanter (left), European Commission Executive VP Vestager (middle), and FTC Chair Khan (right) meet for TCPD.The Justice Department’s Antitrust Division Assistant Attorney General Jonathan Kanter, Federal Trade Commission (FTC) Chair Lina M. Khan, and Executive Vice President Margrethe Vestager of the European Commission met today in Washington, D.C., for the third meeting of the U.S.-EU Joint Technology Competition Policy Dialogue (TCPD). The principals and senior staff met to continue work on cooperation in ensuring and promoting fair competition in the digital economy.
“Agencies around the world are adjusting their competition enforcement and regulatory regimes to account for new market realities and in particular the challenges of the digital economy,” said Assistant Attorney General Kanter. “Sharing best practices with the European Commission through the TCPD has been extraordinarily valuable to the U.S. agencies.”
“The Joint Dialogue continues to provide an invaluable forum for the U.S. agencies to engage with the European Commission on challenges in digital markets,” said FTC Chair Khan. “At this moment of unique risk and opportunity, it is especially critical that we deepen our cooperation with key enforcement partners.”
“Today’s meeting has proven once again how fruitful it is to keep engaging in a close cooperation between the European Commission and the U.S. competition authorities,” said European Commission Executive Vice President Vestager. “Exchanging our experiences and ideas on how best to anticipate and address the fast-moving trends in tech markets is vital for achieving the shared goal of a fair, inclusive and pro-competitive digital transformation, to the benefit of consumers and businesses in both the EU and U.S.”
The discussions centered on critical themes the agencies are facing, including the reasons mergers between digital players may lead to competition concerns. The agencies also shared policy reflections in the area of abuse of dominance and monopolization in the digital sector and presented recent policy initiatives in this field. They also exchanged views on the evolving business strategies of big tech companies as well as on their implications for enforcement.
The agencies also announced planned liaisons of agency experts from the Antitrust Division and the FTC in Brussels, with each agency sending an official to assist with implementation of the Digital Markets Act (DMA).
On Dec. 7, 2021, the Justice Department, the FTC, and the European Commission launched the TCPD to further boost transatlantic cooperation on competition policy and enforcement in the digital sector in light of the common challenges facing the three authorities. Upon its launch, the Commission and U.S. competition agencies issued a statement regarding the TCPD and reaffirming their longstanding tradition of close cooperation on competition matters.
On June 15, 2021, President Biden and the European Commission President Ursula von der Leyen launched the U.S.-EU Trade and Technology Council (TTC). The TTC serves as a forum for the United States and European Union to coordinate approaches to key global trade, economic and technology issues and to deepen transatlantic trade and economic relations based on shared democratic values.
The Justice Department, the FTC, and the European Commission have a longstanding tradition of close cooperation in antitrust enforcement and policy, beginning even before the formal 1991 cooperation agreement between the European Commission and the United States regarding the application of their competition laws.
Justice Department and EPA File Complaint Against Norfolk Southern for Unlawful Discharge of Pollutants and Hazardous Substances in East Palestine DerailmentRead the Press Release
WASHINGTON – Today, on behalf of the U.S. Environmental Protection Agency (EPA) and in coordination with the U.S. Attorney’s Office for the Northern District of Ohio, the Justice Department’s Environment and Natural Resources Division filed a complaint against Norfolk Southern Corporation and Norfolk Southern Railway Company (Norfolk Southern) related to the Feb. 3, derailment in East Palestine, Ohio. The complaint seeks penalties and injunctive relief for the unlawful discharge of pollutants, oil, and hazardous substances under the Clean Water Act, and declaratory judgment on liability for past and future costs under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).
This action follows EPA’s issuance on Feb. 21, 2023 of a Unilateral Administrative Order under CERCLA to Norfolk Southern Railway Company requiring the company to develop and implement plans to address contamination and pay EPA’s response costs associated with the order.
“When a Norfolk Southern train derailed last month in East Palestine, Ohio, it released toxins into the air, soil, and water, endangering the health and safety of people in surrounding communities,” said Attorney General Merrick B. Garland. “With this complaint, the Justice Department and the EPA are acting to pursue justice for the residents of East Palestine and ensure that Norfolk Southern carries the financial burden for the harm it has caused and continues to inflict on the community.”
“From the very beginning, I pledged to the people of East Palestine that EPA would hold Norfolk Southern fully accountable for jeopardizing the community’s health and safety,” said EPA Administrator Michael S. Regan. “No community should have to go through what East Palestine residents have faced. With today’s action, we are once more delivering on our commitment to ensure Norfolk Southern cleans up the mess they made and pays for the damage they have inflicted as we work to ensure this community can feel safe at home again.”
“Last month, the East Palestine community was upended by a horrific train derailment. By filing this complaint today, we are demanding accountability from Norfolk Southern for the harm this event has caused,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will tirelessly pursue justice for the people living in and near East Palestine, who like all Americans deserve clean air, clean water, and a safe community for their children.”
“The United States Attorney’s Office stands with our district’s residents in pursuing accountability and justice in both the immediate and distant future, as we work together to deal with the damage and destruction this disaster has caused,” said First Assistant U.S. Attorney Michelle Baeppler for the Northern District of Ohio.
On Feb. 3, 2023, a Norfolk Southern train carrying hazardous materials, including hazardous substances, pollutants, and oil derailed in East Palestine, Ohio. The derailment resulted in a pile of burning rail cars, and contamination of the community’s air, land, and water. Residents living near the derailment site were evacuated. Based on information Norfolk Southern provided, the hazardous materials contained in these cars included vinyl chloride, ethylene glycol monobutyl ether, ethylhexyl acrylate, butyl acrylate, isobutylene, and benzene residue. Within hours of the derailment, EPA and its federal and state partners began responding to the incident, including providing on-the-ground assistance to first responders and conducting robust testing in and around East Palestine.
The fire caused by the derailment burned for several days. On Feb. 5, monitoring indicated that the temperature in one of the rail cars containing vinyl chloride was rising. To prevent an explosion, Norfolk Southern vented and burned five rail cars containing vinyl chloride in a flare trench the following day, resulting in additional releases.
Since the EPA’s issuance of the Unilateral Administrative Order to Norfolk Southern Railway Company, the EPA has been overseeing that company’s work under the order. Approximately 9.2 million gallons of liquid wastewater, and an estimated 12,932 tons of contaminated soils and solids have been shipped off-site.
The EPA and other federal agencies continue to investigate the circumstances leading up to and following the derailment. The United States will pursue further actions as warranted in the future as its investigatory work proceeds.
Justice Department Seeks to Shut Down Florida Return PreparersRead the Press Release
The United States filed a complaint in the U.S. District Court for the Southern District of Florida against Javier Campos; David DePablo; Krystallee Gonzalez; Alvaro Jauregui; Katya Rojas; Patricia Vanegas; JBC Tax Services LLC; WK Tax Services Inc.; Cutler Bay Tax Services Inc.; N.L.T.S., Inc. doing business as Naranja Lakes Tax Services Inc.; and Tax Services Group Corp. The civil complaint seeks to enjoin the defendants from preparing federal income tax returns for others. The complaint also requests that the court require Campos and the businesses he controls to disgorge the fees they obtained by preparing federal tax returns that make grossly incompetent, negligent, reckless, and/or fraudulent claims.
The civil complaint alleges that, from 2019 through 2022, the defendants prepared at least 12,000 tax returns annually. The complaint further alleges that Campos and the other defendants, using a variety of schemes, prepared tax returns that understate their customers’ tax liability and overstate their claimed refunds. The complaint alleges that the defendants prepared customers’ returns that included various false or fabricated deductions and credits, including:
- fabricated residential energy credits;
- fictitious deductions and credits for education expenses, including tuition and fees;
- false COVID-19 sick and family leave credits; and,
- bogus uncommon deductions, including for rental of personal property, unlawful discrimination claims, and reforestation amortization and expenses.
According to the complaint, Campos and the other defendants’ pattern of conduct has resulted in the issuance of inflated refunds to taxpayers and the loss of significant federal tax revenue.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.
In the past decade, the Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury finds Cincinnati man guilty of gun crimes, dealing drugs from his Betts Avenue homeRead the Press Release
CINCINNATI – A federal jury has convicted a Cincinnati man of one drug and two firearms crimes. The defendant was found guilty on all counts as charged.
Ieben Ewing, 39, is convicted of possessing with the intent to distribute controlled substances, possessing a firearm in furtherance of a drug trafficking offense and illegally possessing firearms as a previously convicted felon. He will face a mandatory minimum of five years and up to 40 years in prison.
The verdict was announced on March 29 following a trial that began on March 27 before Senior U.S. District Judge Michael R. Barrett.
According to court documents and trial testimony, Ewing distributed bulk amounts of narcotics from his residence on Betts Avenue in Cincinnati.
While executing a search warrant at Ewing’s home in March 2022, investigators discovered 770 grams of powder cocaine, 100 grams of crack cocaine, $75,000 in cash and various firearms. The firearms included an AK-style gun with a 100 round “drum” style magazine attached.
“The residents of the North College Hill community should not have to tolerate the illegal activities of Ieben Ewing in their neighborhood. Now he is looking at a lengthy prison sentence,” said U.S. Attorney Kenneth L. Parker.
As a previously convicted felon, Ewing is prohibited from possessing firearms or ammunition.
Ewing was indicted by a federal grand jury in September 2022.
Congress sets the minimum and maximum statutory sentences. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors at a future sentencing hearing.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Hamilton County Charmaine McGuffey and members of the Hamilton County Sheriff’s Office Regional Narcotics Unit announced the guilty verdicts. Assistant United States Attorneys David P. Dornette and Timothy D. Oakley are representing the United States in this case.
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Judgment Entered Against Fourteen Defendants in Case Dismantling Nationwide Racketeering ConspiracyRead the Press Release
SAN FRANCISCO – On Thursday, March 23, 2023, and Friday, March 24, 2023, the federal court entered judgment against fourteen defendants, including cousins and ringleaders Mihran Stepanyan and Artur Stepanyan, who were sentenced for their respective roles in a variety of crimes stemming from a wide-ranging racketeering conspiracy involving diversion of prescription drugs, money laundering, mail and wire fraud, and additional crimes, announced United States Attorney Ismail J. Ramsey; Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp; and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Darren Lian. The sentences were handed down by the Hon. Charles R. Breyer, Senior United States District Judge, and leaves nine defendants remaining to be sentenced for crimes committed in connection with the case.
The fourteen defendants had been charged with various crimes as part of a Second Superseding Indictment filed on February 11, 2016. The Second Superseding indictment alleged that 38 defendants were involved with the activities of a nationwide conspiracy, referred to in court documents as the Karapedyan-Stepanyan Enterprise (Enterprise), that engaged in, among other crimes, a multi-million-dollar prescription drug diversion scheme, a tax fraud and Treasury check scheme, and several other criminal schemes. Information about charges brought earlier in the case can be found here and information about several defendants’ guilty pleas can be found here.
The Prescription Drug Diversion Scheme
Last week, seven defendants were sentenced for their respective roles in the prescription drug diversion scheme. Among them were four of the principal actors in the Enterprise: Mihran Stepanyan, 37, of Glendale, Calif., Artur Stepanyan, 45, both of Glendale, Calif., Yan German (a.k.a., Henrik Harutyunyan), 43, of Encino, and Arman Zargayan, 40, of Granada Hills, Calif. All four defendants pleaded guilty to racketeering conspiracy, in violation of 18 U.S.C. § 1962(d).
The prescription drug diversion scheme had nationwide reach; indeed, a separate investigation resulted in another indictment filed on May 6, 2015, in the Southern District of Ohio. That indictment charged the Stepanyans and others with various crimes arising from their sale of illicitly procured drugs and was transferred to the Northern District of California and consolidated with the instant case.
Court documents describe how the Enterprise took advantage of a “robust black market involving the wholesale distribution of prescription drugs.” According to the government’s filings, prescription drugs were procured illicitly at below market value and then were resold and re-introduced into the market as legitimate drugs at near-market prices. Illicit procurement can involve stealing drugs from manufacturers; buying drugs from patients with prescriptions at below-market prices (the patients’ costs are offset or reduced by insurance, including Medicare); buying drugs using false prescriptions and straw patients, usually with the aid of a corrupt doctor (again, with the costs offset or reduced by insurance); and purchasing drugs from a manufacturer at a discounted price through fraud, e.g., falsely claiming a charitable or similar discount. These “diverted” prescription drugs often are cleaned or repackaged to make them appear legitimate. Each of the defendants sentenced pleaded guilty to crimes in accordance with their participation in the crimes of the Enterprise. Each defendant’s plea agreement describes the role that the defendant played in the drug diversion scheme.
According to their plea agreements, Artur and Mirhan Stepanyan obtained illicit prescription drugs from a network of unlicensed drug suppliers and supplied the drugs to co-conspirators at deep discounts. The Stepanyans were responsible for nearly $200 million in sales to their co-defendants who sold the drugs to customers throughout the United States. The defendants used fraudulent documents to establish the pedigree of the drugs they sold. In addition, the Stepanyans sold prescription drugs to their co-defendants in California, although they were not licensed to do so. Starting as early as 2009, the Stepanyans sold tens of millions of dollars in diverted prescription drugs per year to their codefendants. The Stepanyans incorporated multiple entities in Nevada, including Panda Capital Group, Trans Atlantic Capital Group, and Red Rock Capital Group and in 2012, the Stepanyans began doing business as GC National Wholesale. The Stepanyans were paid more than $160 million for diverted drugs—typically at prices ranging from 15% to 25% off the Wholesale Acquisition Cost (“WAC”) established by manufacturers of prescription drugs. For their respective parts in the conspiracy, Mihran Stepanyan was sentenced to 60 months in prison and Artur Stepanyan, was sentenced to 54 months in prison.
German was sentenced to 23 months in prison for his role in the scheme. German admitted he was one of the suppliers of pharmaceutical drugs for the Stepanyans. According to his plea agreement, German admitted he engaged in a wire fraud and money laundering as part of the Enterprise and that he was involve in a separate prescription drug diversion and check cashing scheme with co-defendant Ara Karapedyan. German also acknowledged the loss amount for which he is responsible is between $9.5 and $25 million.
Zargayan was sentenced to 35 months in prison for his role in the scheme. Zargayan operated a California-licensed drug wholesale company, Nuvo Pharmaceuticals, with an unindicted co-conspirator. Zargayan admitted that he used Nuvo Pharmaceuticals as a front for the drugs that a company called ME Wholesale sold to LLC Wholesale from May to August 2013. Nuvo Pharmaceuticals was licensed in California, but it did not actually supply the drugs that ME Wholesale sold. In addition, the pedigrees for ME Wholesale’s drugs falsely claimed that Nuvo Pharmaceuticals had received the drugs from McKesson.
Fraudulent Check Scheme
Also sentenced last week were seven defendants, all California residents, in connection with attempts to negotiate over 500 fraudulent checks issued to a variety of payees and totaling more than $5 million. A substantial number of the fraudulent checks were tax refund checks sent by mail by the United States Treasury and many of these tax refund checks had been issued based on fraudulent tax returns filed with the Internal Revenue Service. The defendants acquired and possessed identifying information for dozens of individuals, which was used to file fraudulent tax returns online. Associates of the Enterprise negotiated numerous fraudulent checks through a business owned by one of the co-conspirators—a service that was offered in exchange for a percentage of the proceeds.
In sum, of the 38 defendants charged in the February 2016 Superseding Indictment, 33 have been convicted and nine remain to be sentenced. The charges against five defendants have been dismissed. Judge Breyer scheduled two additional hearings for May 31, 2023, at which time co-defendants Asatour Magzanyan and Loui Artin are scheduled to be sentenced.
Assistant United States Attorneys Claudia Quiroz, Andrew Dawson, and Chris Kaltsas are prosecuting the case with the assistance of Kevin Costello. The prosecution is the result of an investigation by the FBI, the IRS, the FDA, and USPIS.
Jefferson County Felon Sentenced to over 24 Years in Federal Prison for Trafficking Methamphetamine and Multiple Firearms ChargesRead the Press Release
Jackson, Miss – A Jefferson County felon was sentenced to 295 months in federal prison for possession of methamphetamine with the intent to distribute, possession of a firearm by a previously convicted felon, and possessing firearms in furtherance of a drug trafficking crime.
According to court documents and evidence presented at trial, Boris Ward, 50, conducted two sold methamphetamine in Jefferson County on June 1st and June 13th, 2018. After the two sales, the Mississippi Bureau of Narcotics and other agencies executed a search warrant at Ward’s residence and recovered 10 firearms and over a half kilogram of 100% pure methamphetamine. Ward was previously convicted in Cook County, Illinois, of two counts of armed robbery, two counts of attempted murder and distribution of cocaine. He was previously convicted in Jefferson County, Mississippi, of escape from a correctional facility and possession of cocaine.
U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mississippi Bureau of Narcotics, and the Adams County Sheriff’s Office investigated the case.
Assistant U.S. Attorneys Bert Carraway and Andrew W. Eichner prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Jacksonville Tax Preparer Charged with Filing False ReturnsRead the Press Release
A federal grand jury in Jacksonville, Florida, returned an indictment today charging a Florida woman with aiding and assisting in the preparation of false tax returns, filing a false tax return and failing to file a tax return.
According to the indictment, between 2017 and 2019, Gloria Gray, who at times resided in Jacksonville, prepared false income tax returns, first while working at two Jacksonville tax preparation businesses, and then at her own business, Triple X Tax Services. The indictment alleges that Gray prepared individual income tax returns for multiple clients that collectively reported hundreds of thousands of dollars in fraudulent expenses and deductions, including false charitable deductions and unreimbursed employee business expenses.
In addition, Gray allegedly filed a false 2018 tax return that did not report all her income and she allegedly did not file a personal income tax return for 2019.
If convicted, Gray faces a maximum sentence of three years in prison for each false return count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Isaiah Boyd III and Richard (R.J.) Hagerman of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jacksonville Man Sentenced to More Than Two Years Additional Prison Term for Escape from Halfway HouseRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Keenan Hunter (32, Jacksonville) to two years and three months in federal prison for his escape from custody from a halfway house in Jacksonville. Hunter had pleaded guilty on December 29, 2022.
According to court documents, on October 29, 2018, Hunter was sentenced to five years’ imprisonment for being a felon in possession of a firearm. In August 2020, the Federal Bureau of Prisons placed Hunter in a halfway house, in Jacksonville, to complete his sentence. He had an estimated release date of February 5, 2021.
On December 9, 2020, at 9:45 a.m., Hunter walked out of the halfway house without authorization. He was therefore listed as an escapee. Paperwork from the halfway house confirms that Hunter was informed of the rules of the halfway house, including that a failure to remain there could result in prosecution for escape. He also electronically signed a written acknowledgment. Hunter never returned to the halfway house.
This case was investigated by the United States Marshals Service. It was prosecuted by Assistant United States Attorney Ashley Washington.
Jacksonville Convicted Felon Sentenced to Seven Years in Federal Prison for Firearm PossessionRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Frederick Lamont Sams (41, Jacksonville) to seven years in federal prison for possessing a firearm by a convicted felon. Sams had pleaded guilty in December 2022.
According to court documents, on February 16, 2022, Sams was seen by a Jacksonville Sheriff’s Officer driving a stolen vehicle. Officers followed Sams which led to a pursuit where Sams fled from the vehicle. As Sams was fleeing, he threw a Glock .45 caliber pistol loaded with 25 rounds of ammunition, which was recovered once Sams was arrested.
Sams is a multi-convicted felon and was recently released from prison after having been convicted of burglary and possession of a firearm by a convicted felon. He was out of prison less than six months before committing this offense. As a previously convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sherriff’s Office. The case was prosecuted by Assistant United States Attorney John Cannizzaro. The forfeiture will be handled by Assistant United States Attorney Mai Tran.
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.
Hazelwood Man Admits Series of Schemes Seeking $404,000Read the Press Release
ST. LOUIS – A man from Hazelwood, Missouri on Tuesday admitted involvement in a series of schemes that cost or intended to cost victims a total of $404,415.
Naquan Powers, 27, pleaded guilty to four felony counts of bank fraud and three felony counts of aggravated ID theft in front of U.S. District Judge Matthew T. Schelp.Powers admitted buying three vehicles from a Florissant dealership between June 24, 2019 and August 23, 2019 and using fraudulent Social Security cards and driver’s licenses to apply for loans. After buying an Chevrolet Impala with a $18,098 loan, a $42,086 Chevrolet Tahoe and a BMW 428 XI for $29,079, powers was arrested trying to buy a Dodge Challenger with a $38,191 loan. The total intended loss for the four vehicles is $127,454
In 2018 and 2019, Powers accessed multiple Discover Bank accounts belonging to other people and changed information in these accounts so he could receive debit cards and bank checks for the accounts. Powers’ intended loss for this scheme was $11,754.
After his arrest, Powers aided at least four others in making or attempting fraudulent purchases of vehicles at multiple vehicle dealerships throughout the St. Louis and southern Illinois areas, causing a total loss of $244,374.
Then, in 2020 and 2021, Powers applied for a Paycheck Protection Program loan and four Economic Injury and Disaster Loans pursuant to the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), claiming he was a sole proprietor in the general freight trucking industry. Powers submitted a fraudulent tax form and a bank statement and received $20,832 in PPP funds.
Five others involved with Powers’ schemes have also been charged.
Powers is scheduled to be sentenced June 30. The bank fraud charges carry a potential sentence of 30 years in prison, a $1 million fine, or both prison and a fine. The aggravated ID theft charges carry a mandatory minimum sentence of two years consecutive to all other sentences.
The Social Security Administration Office of Inspector General and the U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Diane Klocke is prosecuting the case.
Hartford Man Charged with Distributing FentanylRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Hartford Police Chief Jason Thody today announced that JOHNNY MILNER, also known as “Blaze” and “O.G.,” 45, of Hartford, was arrested yesterday on a criminal complaint charging him with possession with intent to distribute, and distribution of, 40 grams or more of fentanyl.
Following his arrest, Milner appeared before U.S. Magistrate Judge Thomas O. Farrish in Hartford and was ordered detained.
As alleged in court documents and statements made in court, law enforcement received information from various sources that Milner was distributing fentanyl to street-level narcotics dealers in the SANA apartment complex located on Main Street in Hartford, which is commonly referred to as the “Sands,” and that he was using locations on Prospect Avenue and Bellevue Street in Hartford to store and distribute narcotics. On February 21 and March 15, 2023, investigators made controlled purchases of 100 grams of fentanyl from Milner.
In association with Milner’s arrest, investigators conducted court-authorized searches of locations in Hartford and New Britain connected to him. A search of an apartment on Chestnut Street in New Britain that Milner uses revealed approximately 70 grams of fentanyl and $221,296 in cash.
The charge of possession with intent to distribute, and distribution of, 40 grams or more of fentanyl, carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI’s Northern Connecticut Gang Task Force and the Hartford Police Department, with the assistance of the Drug Enforcement Administration’s Hartford Task Force. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Robert S. Ruff.
Guatemalan Man Pleads Guilty to Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS –FIDADELFO ANTONIO CAMEY-ESPANA, age 36, pled guilty to a one-count indictment on March 30, 2023 for illegally using a social security number to enroll in a safety class to qualify for employment, in violation of Title 42, United States Code, Section 408(a)(7)(B), announced U.S. Attorney Duane A. Evans.
According to court documents, FIDADELFO ANTONIO CAMEY-ESPANA (“CAMEY-ESPANA”) admitted to illegally using a social security number to enroll in a safety class to gain employment eligibility. CAMEY-ESPANA faces a maximum term of imprisonment of five years, a maximum fine of up to $250,000, a maximum term of supervised release of up to three years, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Greene County Men Plead Guilty to Tax Evasion ConspiracyRead the Press Release
ALBANY, NEW YORK – Dennis Radcliffe, age 51, and Kenneth Radcliffe, age 49, each of Elka Park, New York, pled guilty today to conspiring to evade taxes on income earned from stock sales.
United States Attorney Carla B. Freedman and Thomas Fattorusso, Special Agent in Charge, New York Field Office, Internal Revenue Service-Criminal Investigation (IRS-CI), made the announcement.
Dennis Radcliffe and Kenneth Radcliffe, who are cousins, each pled guilty to two conspiracies. In the first conspiracy, they conspired with each other to avoid taxes on their personal income, by failing to report to the IRS several million dollars of income earned principally from sales of penny stocks, from 2014 through 2017. The stock sales occurred in brokerage accounts that Dennis Radcliffe and Kenneth Radcliffe controlled, and which stood in the names of their companies Crackerjack Classics LLC (“Crackerjack”) and Universal Consulting LLC (“Universal”).
In the second conspiracy, Dennis Radcliffe and Kenneth Radcliffe conspired with each other and with Joseph Radcliffe, Dennis’s father, to avoid taxes on approximately $500,000 in compensation that Crackerjack and Universal paid to Joseph, from 2013 through 2019.
When they are sentenced on August 10, 2023, Dennis Radcliffe and Kenneth Radcliffe each face up to 5 years in prison and a maximum $250,000 fine. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Dennis Radcliffe has agreed to pay $77,552 in restitution to the IRS, and Kenneth Radcliffe has agreed to pay an additional $152,274 in restitution.
Joseph Radcliffe, age 76, of Elka Park, was sentenced in August 2022 to three years of probation, to spend four consecutive weekends in jail as a condition of his probation, and to pay $109,106 in restitution to the IRS, following his guilty plea to tax evasion conspiracy.
IRS-CI investigated this case, and Assistant U.S. Attorney Michael Barnett is prosecuting this case.
Georgia man convicted of fraud in seeking millions of dollars in COVID-19 relief fundingRead the Press Release
BRUNSWICK, GA: A federal jury deliberated less than an hour before finding a Georgia man guilty on multiple charges for leading a conspiracy to fraudulently obtain more than $1 million in federal COVID-19 pandemic relief funding.
Bernard Okojie, 41, of McDonough, Ga., was found guilty after a three-day trial of Conspiracy to Commit Wire Fraud, Wire Fraud, and Money Laundering Conspiracy, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. The guilty verdict subjects Okojie to statutory penalties of up to 30 years in prison, along with up to $1 million in financial penalties and up to five years of supervised release after completion of any prison term. There is no parole in the federal system.
“Before the ink was dry on legislation creating the Coronavirus Aid, Relief and Economic Security (CARES) Act, Bernard Okojie was scheming to steal these vital small business safety net funds,” said U.S. Attorney Steinberg. “The guilty verdict slams the door on this fraud, and signals to others stealing from pandemic relief funds that they, too, will be held accountable.”
As described in trial and in court documents, Okojie used information for non-existent companies to file at least 24 fraudulent applications for Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program loans for himself and others from April 2020 through May of 2021, seeking millions of dollars in COVID-19 relief funds for himself and others. Okojie received the funding directly, or was paid by other recipients of the fraudulently obtained funding for his work in submitting the EIDL applications. Okojie then conspired to launder the fraudulent proceeds to hide the source of the funds.
Funds from the more than $1.4 million Okojie and others received through the schemes were used to purchase a home, vehicles, shopping trips to Versace, for personal investments, and a toy poodle. Okojie also was intercepted as he attempted to carry nearly $40,000 in undeclared cash on a plane from Atlanta to Nigeria.
Sentencing before U.S. District Court Judge Lisa Godbey Wood will be scheduled upon completion of a pre-sentence investigation by U.S. Probation Services.
“This verdict should serve notice that the FBI and our federal partners will investigate anyone who misdirects federal emergency assistance earmarked for businesses who need it to stay afloat,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “We won’t tolerate anyone driven by personal greed to pocket American tax payer money that should be going to those in need.”
“Manufacturing false information to wrongfully obtain funds from SBA programs intended for the nation’s small businesses is a theft from taxpayers,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “OIG and its law enforcement partners will relentlessly pursue fraudsters and bring them to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
The case was investigated by the FBI and the Small Business Administration Office of Inspector General, and prosecuted for the United States by Assistant U.S. Attorneys Matthew A. Josephson and Jennifer A. Stanley.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Georgia Man Sentenced to 20 Years in Prison for Possession of Meth with Intent to Distribute After Ordering Fabric Soaked in MethRead the Press Release
ALBANY, Ga. – A Southwest Georgia man guilty of drug distribution was sentenced to 240 months in prison today after federal agents discovered fabric soaked in methamphetamine and crystal meth in packages at the Atlanta airport addressed to him from Mexico.
Chad Williamson, 44, of Fitzgerald, Georgia, was sentenced to serve 240 months in prison to be followed by five years of supervised release by U.S. District Judge Leslie Abrams Gardner today after he pleaded guilty to possession of methamphetamine with intent to distribute on Sept. 8. There is no parole in the federal system.
“International drug cartels are using any means necessary to move deadly substances into this country, feeding addiction and increasing overdose deaths,” said U.S. Attorney Peter D. Leary. “Law enforcement at every level is committed to stopping and holding accountable those working with these groups to bring highly dangerous and illegal drugs into our communities.”
“DEA and its law enforcement partners will continue to use every available resource to dismantle, disrupt and destroy drug distribution networks,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “This case was successful because of the collaborative efforts between DEA and its committed law enforcement partners.”
According to court documents, two packages containing methamphetamine and addressed to Williamson were intercepted by Homeland Security Investigations (HSI) at the Hartsfield-Jackson Atlanta International Airport Parcel Center in March 2021. The packages were shipped from Naucalpan de Juarez, Mexico, and marked as religious image and/or Bible gift; one of the boxes contained a methamphetamine-soaked fabric, which can be chemically extracted for use. There was also approximately 450 grams of crystal methamphetamine in the packages.
DEA agents went to Williamson’s residence on March 11, 2021. Williamson had removed the SIM card from his phone in an attempt to hide its contents. Williamson’s probation officer administered a drug test, which Williamson failed. Williamson was placed under arrest and subsequently admitted to agents that an associate used Williamson’s address for drug deliveries. The SIM card was located, and a download of Williamson’s phone showed a number of messages he had exchanged with the source of supply, saved in his phone as “Costa Chris.” The messages revealed an on-going relationship between the two regarding illicit controlled substance deliveries requiring tracking and other drug deals.
The case was investigated DEA with assistance from HSI.
Criminal Chief Leah McEwen prosecuted the case.
Fraudster Sentenced to 13+ Years in $1.9 Million SchemeRead the Press Release
The mastermind behind a $1.9 million bank fraud was sentenced today to more than 13 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Nohmaan Malik, 30, pleaded guilty in November 2022 to conspiracy to commit bank fraud, passport fraud, and aggravated identity theft. He was sentenced Thursday by U.S. District Judge Mark Pittman. The Court ordered restitution in the amount of $1.9 million, the amount of loss the victims suffered.
According to plea papers, Mr. Malik admitted he and coconspirators defrauded Chase Bank customers.
They selected customers with sizeable balances at Chase and created counterfeit passport cards using the customers’ names and identifying information but with conspirators’ photographs. Using those counterfeit passport cards, conspirators imitating the bank customers opened fraudulent joint bank accounts with other conspirators acting as money mules.
The impersonator or the mule then transferred money from the customers’ actual account to the joint bank account, and then transferred the money from the joint account into a third bank account controlled solely by the conspirators.
His coconspirators include:
- Juan Cruz – pleaded guilty to conspiracy to commit bank fraud, passport fraud, and aggravated identity theft / sentenced to 10 years and nine months in federal prison
- Ronald Godbold – pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft / sentenced to five years and five months in federal prison
- Jeremy Pena – pleaded guilty to conspiracy to commit bank fraud, passport fraud, and aggravated identity theft / sentenced to five years and five months in federal prison
- Louie Walencik – charged with conspiracy to commit bank fraud, use of a false passport, and aggravated identity theft / fugitive
- Gregory Jesus Acevedo – pleaded guilty to conspiracy to commit bank fraud and passport fraud and aggravated identity theft / sentenced to three years and four months in federal prison
- Christian Martinez – pleaded guilty to conspiracy to commit bank fraud / slated to be sentenced on May 9 before Judge Reed O’Connor
The U.S. Department of State’s Diplomatic Security Service (DSS), Dallas Resident Office, conducted the investigation with the assistance from the DFW Airport Police Department, Dallas Police Department, Benbrook Police Department, and Flower Mound Police Department. Assistant U.S. Attorney Matthew Weybrecht prosecuted the case.
Former U.S. Postal Service mail carrier sentenced for scheme to deliver drugs through the mailRead the Press Release
ATLANTA – Former mail carrier Robert Elliot Sheppard was sentenced to three years of prison for recruiting fellow mail carriers, and teaching them how to deliver packages of cocaine and marijuana while he was on disability leave.
“Sheppard accepted bribes from a drug trafficker to hand-deliver packages of narcotics on his mail route and even found carriers to replace him in his absence to ensure that he continued to profit from these crimes,” said U.S. Attorney Ryan K. Buchanan. “His greed resulted in dangerous drugs going into our community and ensnared two of his coworkers in a scheme of drug trafficking and bribery.”
“Sheppard put not only his future at risk, but the safety of residents on his routes in danger by agreeing to work with drug dealers,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The vast majority of Postal workers are honest. The FBI wants to make it clear if anyone decides to violate the public trust, we will dedicate significant resources toward finding and prosecuting them for their crimes.”
“The vast majority of U.S. Postal Service employees would never violate the public trust in this manner. But for those who do, the USPS Office of Inspector General, along with our law enforcement partners, will aggressively investigate these federal crimes to protect the sanctity of the U.S. Mail,” said Special Agent in Charge Jonathan Ulrich. “This sentence is a testament to the dedication of the investigative and legal teams and should send a strong message to any employee who thinks of conspiring with drug traffickers.”
“Sheppard recklessly recruited two mail carriers to deliver packages of drugs and was paid for doing so. Through his actions, Sheppard endangered the communities he served and betrayed the trust bestowed upon him by the USPS,” said DeKalb County District Attorney Sherry Boston. “The DeKalb County District Attorney’s Office, with its law enforcement partners, will continue to seek out and prosecute those who use their official positions for personal gain.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: In 2015, Sheppard worked as a U.S Postal Service (USPS) mail carrier. In exchange for receiving bribes, Sheppard used his position to deliver five-pound packages of drugs through the U.S. mail to Dexter Frazier, a local drug trafficker who sold cocaine and marijuana.
In 2016, Frazier approached Sheppard about delivering additional drug packages. Sheppard was on disability leave from the USPS at that time and unable to intercept and deliver packages. But he offered to recruit other mail carriers to deliver drugs for Frazier in exchange for referral fees in the form of a mix of cash and marijuana. Frazier agreed to the arrangement.
Sheppard then contacted two coworkers, Tonie Harris and Clifton Lee. Sheppard explained to Harris and Lee that they could earn bribes for delivering packages of drugs along their mail routes, and taught them how to arrange the deliveries to avoid detection. Harris and Lee agreed to participate in the scheme, and Sheppard gave their phone numbers to Frazier. Frazier then coordinated the illegal deliveries with Harris and Lee. Harris and Lee each delivered three packages for Frazier believing they contained two kilograms of cocaine or 10 pounds of marijuana, per parcel.
U.S. District Judge Steve C. Jones sentenced Robert Elliott Sheppard, 61, of East Point, Ga., to three years in prison to be followed by three years of supervised release. He was also ordered to pay a fine in the amount of $30,000. Sheppard pleaded guilty to the offenses of conspiracy to possess with intent to distribute cocaine and marijuana, and unlawfully using the mail to commit that crime, on August 3, 2022.
Other participants in the scheme previously pleaded guilty and received the following sentences imposed by Judge Jones:
- Dexter Bernard Frazier, a/k/a “Dec,” 60, of Fairburn, Georgia, was sentenced on June 13, 2018, to nine years in prison to be followed by 10 years of supervised release. He was also ordered to pay restitution in the amount of $10,700. Frazier pleaded guilty to the offense of attempt to distribute cocaine and marijuana on March 6, 2018.
- Clifton Curtis Lee, a/k/a “Cliff,” 46, of Lithonia, Georgia, a letter carrier assigned to the Sandy Springs Post Office, was sentenced on June 18, 2018, to three years, 10 months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $1,800. Lee pleaded guilty to the offenses of attempt to distribute cocaine and bribery of public officials on February 28, 2018.
- Tonie Harris, 59, of Decatur, Georgia, a letter carrier assigned to the Sandy Springs Post Office, was sentenced on August 14, 2018, to three years, one month in prison to be followed by four years of supervised release. He was also ordered to pay restitution in the amount of $1,450. Harris pleaded guilty to the offenses of attempt to distribute cocaine and marijuana and bribery of public officials on March 20, 2018.
This was investigated by the Federal Bureau of Investigation, the U.S. Postal Service Office of Inspector General, and the DeKalb County District Attorney’s Office.
Assistant U.S. Attorney Garrett L. Bradford prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Partner at Broker-Dealer Firm Charged with $3.4 Million Insider Trading SchemeRead the Press Release
NEWARK, NJ. – A former partner at a New Jersey broker-dealer firm was arrested today and charged with engaging in an insider trading scheme that netted millions of dollars in illegal trading profits, U.S. Attorney Philip R. Sellinger announced today.
Christopher Matthaei, 44, of Brielle, New Jersey, is charged by complaint with one count of securities fraud conspiracy and one count of securities fraud. He appeared today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was released on $250,000 unsecured bond.
“As alleged, Christopher Matthaei illegally exploited his relationship with a close friend to gain access to confidential information about yet-to-be-announced mergers and acquisitions involving special purpose acquisition companies, or SPACs,” U.S. Attorney Sellinger said. Matthaei is alleged to have made trades on seven SPACs that netted him $3.4 million in illegal profits. SPACs may have been a hot trend on Wall Street, but the District of New Jersey will continue to be relentless in bringing inside traders to justice, no matter the market trends.”
“Federal laws targeting insider trading are designed to protect the general public from those who attempt to cash in on private information,” FBI Newark Special Agent in Charge James E. Dennehy said. “We allege Matthaei used his knowledge to make more than $3 million, disregarding the rules and policies everyone is required to follow. His position doesn't give him, or anyone else, the power to break the law.”
According to the complaint and statements made in court:
Matthaei was a partner and senior salesperson at a Charlotte, North Carolina-based broker-dealer with offices in Red Bank, New Jersey. From May 2020 through February 2021, Matthaei illegally traded on material, non-public information, or MNPI, that he received from a conspirator, a friend who worked at a large Canadian asset management firm. The MNPI pertained to SPACs that were engaged in confidential merger negotiations and shared information with the asset management firm as a potential investor in the SPAC deals. The conspirator received this MNPI every time a SPAC was placed on his firm’s confidential restricted list, meaning that the firm’s employees were prohibited from buying or selling the SPACs’ securities, either personally or via another person or third party. Despite knowing about these trading restrictions, the conspirator shared the MNPI with Matthaei, who then purchased securities in the SPACs using his personal brokerage accounts. In June 2020, Matthaei paid for a private plane and extended trip with the co-coconspirator and their families to a luxury resort on the island of St. Barth, where they continued to engage in the insider trading scheme.
Matthaei made more than $3.4 million in illegal trading profits from the insider trading scheme.
The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine, and the securities fraud conspiracy count carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross amount of gain or loss from the offense, whichever is greatest.
The U.S. Securities and Exchange Commission also filed a civil complaint against Matthaei today based on the same conduct.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorneys Jennifer Kozar and Marko Pesce of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
matthaei.complaint.pdfForeign National Pleads Guilty to Role in International Human Smuggling and Cocaine Distribution SchemeRead the Press Release
A Honduran national pleaded guilty today to his role in a scheme to illegally bring Honduran nationals to, and to distribute cocaine in, the United States.
According to court documents, beginning in as early as January 2021, Josue Flores-Villeda, 36, and six co-conspirators schemed to bring Honduran nationals and cocaine from Honduras to the United States. In February 2022, Villeda and his co-conspirators attempted to illegally bring 23 Honduran nationals and at least 24 kilograms of cocaine from Utila, Honduras, to Cocodrie, Louisiana, by boat. At some point, the vessel developed engine trouble in the Gulf of Mexico. Villeda and his co-conspirators then chartered a boat and attempted to bring fuel to the disabled vessel so that it could complete its journey to the United States. Shortly thereafter, the U.S. Coast Guard located the vessel adrift approximately 95 miles off the coast of Grand Isle, Louisiana, and towed it to shore.
Villeda pleaded guilty to conspiracy to unlawfully bring aliens to the United States for financial gain and conspiracy to distribute five kilograms or more of cocaine hydrochloride. He is scheduled to be sentenced on July 6 and faces a maximum penalty of life in prison. A federal district court judge will determine his sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr., of the Justice Department’s Criminal Division, U.S. Attorney Duane A. Evans for the Eastern District of Louisiana, and Special Agent in Charge David Denton of the Homeland Security Investigations (HSI) New Orleans Field Office made the announcement.
HSI Houma is investigating the case with assistance from HSI Pittsburgh, HSI Atlanta, and the Louisiana Bureau of Investigation. The U.S. Coast Guard Investigative Service, U.S. Customs and Border Protection (CBP) Air and Marine Operations, Louisiana State Police, Pennsylvania State Police, North Huntington Township Police, and Terrebonne Parish Sheriff’s Office also provided valuable assistance.
Assistant U.S. Attorneys Carter Guice and Ben Myers for the Eastern District of Louisiana and Acting Deputy Chief Rami Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) are prosecuting the case.
The investigation is being conducted under Joint Task Force Alpha (JTFA), which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras.
Since its creation, JTFA has successfully increased coordination and collaboration between the Justice Department, DHS, and other interagency law enforcement participants, and with foreign law enforcement partners, including El Salvador, Guatemala, Honduras, and Mexico; targeted those organizations who have the most impact on the United States; and coordinated significant smuggling indictments and extradition efforts in U.S. Attorneys’ Offices across the country. JTFA is comprised of detailees from southwest border U.S. Attorneys’ Offices, including the Southern District of Texas, the Western District of Texas, the District of New Mexico, the District of Arizona, and the Southern District of California, and dedicated support for the program is also provided by numerous components of the Criminal Division that are part of JTFA – led by the HRSP, and supported by the Office of Prosecutorial Development, Assistance, and Training (OPDAT), the Narcotic and Dangerous Drug Section (NDDS), the Money Laundering and Asset Recovery Section (MLARS), the Office of Enforcement Operations (OEO), the Justice Department’s Office of International Affairs (OIA), and the Organized Crime and Gang Section (OCGS). JTFA is made possible by substantial law enforcement investment from DHS, FBI, DEA, and other partners.
The investigation is also supported by the Organized Crime and Drug Enforcement Task Force (OCDETF), as well as the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence, and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Foreign National Pleads Guilty to Role in International Human Smuggling and Cocaine Distribution SchemeRead the Press Release
A Honduran national pleaded guilty today to his role in a scheme to illegally bring Honduran nationals to, and to distribute cocaine in, the United States.
According to court documents, beginning in as early as January 2021, Josue Flores-Villeda, 36, and six co-conspirators schemed to bring Honduran nationals and cocaine from Honduras to the United States. In February 2022, Villeda and his co-conspirators attempted to illegally bring 23 Honduran nationals and at least 24 kilograms of cocaine from Utila, Honduras, to Cocodrie, Louisiana, by boat. At some point, the vessel developed engine trouble in the Gulf of Mexico. Villeda and his co-conspirators then chartered a boat and attempted to bring fuel to the disabled vessel so that it could complete its journey to the United States. Shortly thereafter, the U.S. Coast Guard located the vessel adrift approximately 95 miles off the coast of Grand Isle, Louisiana, and towed it to shore.
Villeda pleaded guilty to conspiracy to unlawfully bring aliens to the United States for financial gain and conspiracy to distribute five kilograms or more of cocaine hydrochloride. He is scheduled to be sentenced on July 6 and faces a maximum penalty of life in prison. A federal district court judge will determine his sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr., of the Justice Department’s Criminal Division, U.S. Attorney Duane A. Evans for the Eastern District of Louisiana, and Special Agent in Charge David Denton of the Homeland Security Investigations (HSI) New Orleans Field Office made the announcement.
HSI Houma is investigating the case with assistance from HSI Pittsburgh, HSI Atlanta, and the Louisiana Bureau of Investigation. The U.S. Coast Guard Investigative Service, U.S. Customs and Border Protection (CBP) Air and Marine Operations, Louisiana State Police, Pennsylvania State Police, North Huntington Township Police, and Terrebonne Parish Sheriff’s Office also provided valuable assistance.
Assistant U.S. Attorneys Carter Guice and Ben Myers for the Eastern District of Louisiana and Acting Deputy Chief Rami Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) are prosecuting the case.
The investigation is being conducted under Joint Task Force Alpha (JTFA), which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras.
Since its creation, JTFA has successfully increased coordination and collaboration between the Justice Department, DHS, and other interagency law enforcement participants, and with foreign law enforcement partners, including El Salvador, Guatemala, Honduras, and Mexico; targeted those organizations who have the most impact on the United States; and coordinated significant smuggling indictments and extradition efforts in U.S. Attorneys’ Offices across the country. JTFA is comprised of detailees from southwest border U.S. Attorneys’ Offices, including the Southern District of Texas, the Western District of Texas, the District of New Mexico, the District of Arizona, and the Southern District of California, and dedicated support for the program is also provided by numerous components of the Criminal Division that are part of JTFA – led by the HRSP, and supported by the Office of Prosecutorial Development, Assistance, and Training (OPDAT), the Narcotic and Dangerous Drug Section (NDDS), the Money Laundering and Asset Recovery Section (MLARS), the Office of Enforcement Operations (OEO), the Justice Department’s Office of International Affairs (OIA), and the Organized Crime and Gang Section (OCGS). JTFA is made possible by substantial law enforcement investment from DHS, FBI, DEA, and other partners.
The investigation is also supported by the Organized Crime and Drug Enforcement Task Force (OCDETF), as well as the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence, and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Florissant Man Indicted, Accused of Cool Valley MurderRead the Press Release
ST. LOUIS – A man from Florissant, Missouri was indicted Wednesday and accused of fatally shooting 18-year-old Devon Williams at a Cool Valley gas station in January.
Bryant Pirtle, 20, was indicted in U.S. District Court in St. Louis on three felonies: possession of a firearm in furtherance of a drug trafficking crime resulting in death, possession with intent to distribute marijuana and possession of one or more firearms in furtherance of a drug trafficking crime.
A motion seeking to keep Pirtle in jail until trial says two people shot Williams early on the morning of January 29, 2023 after he tried to buy marijuana from them at the BP gas station at 1790 South Florissant Road. They then ran Williams over while driving away.
Police arrested Pirtle on March 22, 2023, after he and others fled in a stolen car from the same gas station where Williams was murdered. The car contained $4,500 in cash, about one pound of marijuana, two digital scales, baggies and two AR-15-style rifles, one of which was stolen.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the FBI, the St. Louis County Police Department and the Normandy Police Department. Assistant U.S. Attorneys Nino Przulj and Jen Szczucinski are prosecuting the case.
Florida man sentenced to nine years in federal prison for his role in international health care fraud schemeRead the Press Release
ATLANTA – Nagaindra Srivastav has been sentenced on conspiracy and kickback charges for his role in selling fraudulent doctors’ orders to his co-conspirators who used the orders to obtain more than $48 million in fraudulent payments from Medicare.
“Srivastav knowingly sold fake doctors’ orders to conspirators around the United States,” said U.S. Attorney Ryan K. Buchanan. “These orders were used to cause massive losses to the Medicare program and to taxpayers. Health care and telemedicine fraud is a high priority for the Department and this office, and we will vigorously pursue those who exploit our health care system for personal gain.”
“This defendant left a number of victims in his wake, including American taxpayers,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Health care costs are driven up when doctors and staff bill for unnecessary services and the FBI and our partners will continue to use every resource in our power to stop it.”
"This individual exploited the Medicare program for personal financial gain. Not only does this behavior undermine the integrity of federal health care programs; it also wastes valuable taxpayer dollars," said Tamala Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). "As this case demonstrates, HHS-OIG and our law enforcement partners will not tolerate attempts to steal from federal health care programs and defraud the American taxpayer."
According to U.S. Attorney Buchanan, the charges and other information presented in court: Srivastav was the owner of B2B Apps Solutions (“B2B”), a Florida-based company. Through B2B, Srivastav and his co-conspirators created and operated an internet-based platform that individuals and businesses in the health care industry used for the purchase and sale of physician orders for Durable Medical Equipment (“DME”), such as ankle, back, knee, and leg braces.
Through B2B, Srivastav paid and received remuneration for the referral of federal health care business. To accomplish this scheme, Srivastav created a website, RepsHub, in which DME companies and others uploaded potential DME-patient information, called “leads,” which were generally obtained through telemarketing campaigns targeting beneficiaries for whom DME products could be billed. In addition, and in conjunction with his selling of physician orders, Srivastav also offered and sold leads, which he obtained through call centers controlled by himself and his co-conspirators.
Srivastav purchased the physicians’ orders that he sold to his customers from purported telemedicine companies based in the Philippines and Pakistan. These orders lacked medical necessity, and Srivastav was notified on numerous occasions that the purported authorizing physician had not actually spoken with the patient, signed the order, or prescribed the braces. The physicians’ orders that Srivastav sold were used to obtain more than $48 million in fraudulently obtained payments from Medicare.
Nagaindra Srivastav, 58, of Tampa, Florida, has been sentenced by U.S. District Judge Steve C. Jones to nine years in prison, to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $48,150,692.49. On October 19, 2022, Srivastav was convicted of conspiracy to pay and receive kickbacks, in violation of Title 18 United States Code, Section 371, and solicitation and receipt of kickbacks, in violation of Title 42, United States Code, Section 1320a-7b, after he pleaded guilty.
Judge Jones also sentenced Brian Tisdale, 46, of Amory, Mississippi. Tisdale was one of Srivastav’s customers who operated two DME companies in Mississippi and Georgia. Tisdale received a sentence of three years and six months in prison, to be followed by three years of supervised release. Tisdale was also ordered to pay restitution in the amount of $4,675,093.80. On December 16, 2022, Tisdale was convicted of conspiracy to commit health care fraud and to pay kickbacks, in violation of Title 18, United States Code, Section 371, after he pleaded guilty.
This case was investigated by the Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation.
Assistant U.S. Attorney David A. O'Neal prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Flint Convenience Store Operator Pleads Guilty to $1.1 Million Nutrition Benefits Fraud SchemeRead the Press Release
FLINT – A Flint convenience store operator pleaded guilty this week to engaging in more than $1.1 million in fraudulent transactions involving food and nutrition benefit programs, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Shantel R. Robinson, Special Agent-in-Charge of the U.S. Department of Agriculture, Office of Inspector General, Midwest Region.
Ranjit (“Nancy”) Ghotra, age 33, formerly of Swartz Creek, Michigan, pleaded guilty to wire fraud before United States District Judge F. Kay Behm. Ghotra assisted in the operation of Cheers Market, a convenience store in Flint, Michigan.
According to the information provided to the Court at the guilty plea hearing, Ghotra engaged in a fraud scheme involving the Supplemental Nutrition Assistance Program (SNAP) and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) program. These programs are funded by the U.S. Department of Agriculture and provide benefits to raise the level of nutrition of low-income households and children.
As part of the scheme, Ghotra permitted beneficiaries of the SNAP and WIC programs to use their benefits to buy ineligible items, such as alcohol and tobacco, or allowed them to obtain cash instead of food products, in violation of program regulations. In each case, Ghotra charged program beneficiaries approximately double the amount in benefits as the price of the ineligible items purchased or the cash provided. Between 2017 and 2020, Ghotra carried out more than $1.1 million in fraudulent SNAP and WIC transactions.
While the federal prosecution was pending, Ghotra purchased an international plane ticket and attempted to leave the country in violation of her bond conditions. She was arrested at the gate at Chicago O’Hare International Airport with the assistance of Homeland Security Investigations and Customs and Border Patrol agents, and returned to Michigan.
Ghotra faces a statutory maximum penalty of 20 years in prison for wire fraud. Judge Behm will ultimately determine the appropriate sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“Ranjit Ghotra spent years defrauding benefits programs that were intended to assist low-income households, and especially children,” U.S. Attorney Ison said. “This guilty plea reflects my office’s commitment to protecting the integrity of federal programs that help ensure that everyone can afford to provide their families with healthy, nutritious food.”
“This investigation and prosecution should serve as warning to all stores participating in the WIC and SNAP programs as vendors that fraud and trafficking—the purchase of WIC and SNAP benefits for cash—will be vigorously investigated and prosecuted by the USDA-OIG, the U.S. Attorney's Office, and its stakeholders. The USDA-OIG thanks the U.S. Attorney's Office, who prosecuted this case, Homeland Security Investigations, and Genesee County Sheriff’s office for their assistance with the investigation,” said Shantel R. Robinson, Special Agent-in-Charge of the U.S. Department of Agriculture, Office of Inspector General, Midwest Region.
This case was investigated by the U.S. Department of Agriculture, with assistance from Homeland Security Investigations and the Genesee County Sheriff’s office. The case is being prosecuted by Assistant U.S. Attorneys Ann Nee and Adriana Dydell.
Federal Search Warrants ExecutedRead the Press Release
DES MOINES, IA – On Thursday, March 30, 2023, federal search warrants were executed at the following locations in Des Moines:
• 2500 block of Maury Street, • 2500 block of East 23rd Street, • 3600 block of Amherst Street, • 1500 block of King Avenue, • 3400 block of Southwest 8th Street, • 4100 block of 11th Place, and
• 1600 block of Washington Avenue.
The searches at these locations were an official law enforcement action involving officers, agents, and investigators from the Drug Enforcement Administration (DEA), Mid-Iowa Narcotics Enforcement Task Force (MINE), United States Marshals Service, Des Moines Police Department, Iowa Division of Narcotics Enforcement (DNE), Iowa State Patrol (ISP), the Polk County Sheriff’s Office, Suburban Emergency Response Team (SERT), and Metro Special Tactics and Response (STAR).Federal Judge Sentences Florida Man to over 21 Years in Prison for Drug and Gun ChargesRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced Jorge Luis Perez, 36, of Wimauma, Florida, to 260 months in prison followed by five years of supervised release on drug and gun charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to court documents and court proceedings, between May and July 2020, Perez distributed methamphetamine, heroin and fentanyl in Jackson and Swain Counties. Law enforcement conducting an investigation into drug trafficking networks operating in Western North Carolina learned of Perez’s drug trafficking activities in the area. Court records show that Perez obtained his drugs from drug distributors in Mexico by way of Georgia. Perez then distributed the drugs in North Carolina, Georgia and Florida. According to court records, on May 21, 2020, law enforcement conducted a traffic stop of Perez’s vehicle in Sylva, North Carolina. Over the course of the stop, law enforcement recovered a distribution quantity of methamphetamine, a firearm, and $10,384 in U.S. currency. Perez falsely claimed that he won the money at Harrah’s Cherokee Casino.
According to court records, on July 13, 2020, law enforcement stopped Perez’s vehicle for a traffic violation. In the vehicle, law enforcement found a larger distribution quantity of methamphetamine and a set of digital scales. Later the same day, a search warrant was executed at Perez’s camper. Law enforcement seized from the camper two firearms, more methamphetamine, a money counter, and several AR-15 magazines and ammunition. Law enforcement also found several wire transfer receipts indicating that Perez was wiring money to Mexico, under false names and addresses. In the camper, Perez also had a shrine dedicated to Santa Muerte, who has been adopted by drug traffickers as a folk “patron saint.”
Perez was arrested in Florida on January 5, 2022, on charges arising from his criminal conduct in North Carolina. Perez was in possession of another distribution quantity of methamphetamine at the time. During the course of the trial, several more ounces of methamphetamine and a kilogram of heroin were attributed to Perez.
A federal jury convicted Perez on November 9, 2022, of possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession with intent to distribute at least 50 grams of “actual” methamphetamine.
At today’s sentencing hearing, the Court enhanced Perez’s sentence, after the Court found that Perez obstructed justice on a number of occasions. First, Perez filed a petition falsely claiming that the $10,384 seized by law enforcement was the result of several days of winnings at the Casino. Then again during his federal trial, Perez lied under oath that he was a tomato farmer and had never been involved in drug trafficking activities. Perez also lied about owning the camper and claimed that he had not lived in the camper for over a year. Over the course of the trial, Perez lied again about the source of the $10,384 seized by law enforcement.
Perez is currently in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
U.S. Attorney King credited today’s sentence to the investigative efforts of the Asheville, North Carolina and Tampa, Florida Offices of the Drug Enforcement Administration; the Jackson County, Swain County, and Transylvania County Sheriff’s Offices in North Carolina; and the Hillsborough County Sheriff’s Office in Florida.
Assistant United States Attorney Thomas Kent, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Federal Inmate Pleads Guilty to Murdering Fellow InmateRead the Press Release
DETROIT – A federal inmate pleaded guilty today to murdering a fellow inmate at the Milan Correctional Institution in Milan, Michigan, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Jonathan Hemingway, Warden, Milan Federal Correctional Institution.
Alex Albert Castro, 42, a former resident of Fontana, California, pleaded guilty today to second degree murder before United States District Court Judge Jonathan J.C. Grey.
According to court records, on January 2, 2019, Castro, along with co-defendants Jason Kechego, 41, and Adam Taylor Wright, 42, killed fellow inmate Christian Maire. Castro repeatedly stabbed Maire while Kechego and Wright kicked and stomped him in the head. Castro, along with his two co-defendants, then threw Maire’s body down a flight of stairs. Maire died from multiple stab wounds (28 total) and blunt force trauma to the head from being thrown down the stairs.
Castro’s plea agreement calls for a possible sentence of up to life in prison, which could be imposed concurrently, partially concurrently, or consecutively to the 42-year sentence Castro is already serving for his underlying 2017 federal drug trafficking conviction.
In 2022, Wright pleaded guilty to second degree murder and was sentenced to just over 24 years of imprisonment. Kechego was convicted at trial of second degree murder and sentenced to 28 years of imprisonment. At that same trial, the jury was unable to agree on a verdict for Castro and a mistrial was declared.
“This savage crime deserves the most serious of consequences. My office is committed to preventing violence wherever it occurs. These convictions show that we will not turn a blind eye to this type of conduct and will aggressively prosecute violence within our prisons,” said U.S. Attorney Ison.
“The senseless murder committed by Mr. Wright and his codefendants jeopardized the safety of corrections officers, staff, and inmates,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “The FBI will continue to work with the Bureau of Prisons to hold violent offenders accountable for the crimes they commit while behind bars.”
Sentencing has been set for July 28, 2023 at 10am.
This case was investigated by special agents of the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Frances Lee Carlson and Andrew R. Picek.
Federal Agent Pleads Guilty to Making False Statements in Connection with a Sexual Relationship with a Victim WitnessRead the Press Release
SACRAMENTO, Calif. — Melissa Saurwein, 44, of Martinez, pleaded guilty Wednesday to one count of making a false statement in connection with a sexual relationship she had with a victim witness in a separate federal criminal case, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Saurwein was formerly a Special Agent with Homeland Security Investigations in Northern California. While working in that capacity on the human trafficking case United States v. Job Torres Hernandez, 4:17-cr-462-JSW, Saurwein developed a romantic sexual relationship with a victim witness in the case. In preparation for Saurwein’s testimony at trial, prosecutors asked Saurwein if she had a personal relationship with any witness or victim in the case. Saurwein lied in response to the questioning in order to conceal her sexual relationship with the victim witness. The human trafficking case then went to trial and both Saurwein and the victim witness testified. The relationship between Saurwein and the victim witness did not come to light until after the trial and sentencing of the defendant in the human trafficking case were complete. Due to Saurwein’s conduct, the judgement in the human trafficking case was later vacated on the motion of the government, with the defendant having only served three years of his 103-month sentence.
This case is the product of an investigation by the Department of Homeland Security Office of Inspector General and the Immigration and Customs Enforcement Office of Professional Responsibility. The U.S. Attorney’s office for the Northern District was recused from this case, which is proceeding in the U.S. District Court in San Francisco. Special Attorney to the Attorney General Audrey B. Hemesath is prosecuting the case.
Sentencing is scheduled for June 28, 2023, before U.S. District Judge Vince Chhabria. Saurwein faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Ecuadorian Woman Sentenced to Prison of Participating in Tax Refund Fraud SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut; announced that OLGA AUCAPINA, also known as Olga Aucapina Paredes, 53, a citizen of Ecuador residing in Woodbridge, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to five months of imprisonment, followed by three years of supervised release, for participating in a tax refund fraud scheme.
According to court documents and statements made in court, from approximately May 2013 to April 2017, Aucapina and several other Ecuadoran nationals participated in a scheme to illegally obtain tax refunds from the IRS. In order to obtain the refunds, Aucapina and others filed fraudulent federal tax returns, in the names of other foreign nationals (“claimants”), with the IRS. The fraudulent tax returns stated that the claimants resided in the U.S., earned wages from companies in the U.S., and had federal income tax withheld from the claimants’ wages. In truth, the claimants never worked for or earned income from those companies. In addition, U.S. Customs and Border Protection have no records of the claimants even being present in the U.S. during the tax years for which the returns were filed. Based on these false tax returns, the IRS issued tax refunds, which were then deposited into bank accounts that were controlled by Aucapina and her associates
Through this scheme, Aucapina and her associates obtained 142 tax refunds, totaling approximately $435,500. Aucapina personally deposited 59 of those refunds, totaling approximately $177,589, into her own bank accounts. Aucapina and her associates spent some of the proceeds for their personal use, and they wired some of the proceeds to relatives in Ecuador.
Judge Arterton ordered Aucapina to pay restitution of $177,589.
Aucapina, who is released on bond, is required to report to prison on May 30.
On July 16, 2021, Aucapina and three others with were arrested on an indictment charging them with various offenses stemming from this scheme. On February 14, 2022, Aucapina pleaded guilty to theft of public money. Her co-defendants pleaded guilty to related charges.
This matter has been investigated by the Internal Revenue Service – Criminal Investigation Division, Homeland Security Investigations (HSI) and the U.S. Postal Inspection Service, with the assistance of U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
District Man Sentenced to 44 Months for Sexually Assaulting Three Women and Physically Assaulting a FourthRead the Press Release
WASHINGTON – Elvin Cruz (“Cruz”), 22, of Washington, D.C., was sentenced today to 44 months in prison for aggravated assault, third degree sexual abuse, two counts of misdemeanor sexual abuse, and assault, announced United States Attorney Matthew M. Graves and Chief Robert J. Contee, III, of the Metropolitan Police Department. Cruz pleaded guilty on September 1, 2022.
According to court documents, on July 10, 2021, Cruz followed his first victim as she was walking to the store. He approached the victim from behind and put his hand in between her legs touching her vagina, without her consent. On July 24, 2021, Cruz followed his second victim as she was walking home from a friend’s house. When she arrived at the front steps of her residence, Cruz shoved her to the ground. Cruz then placed himself on top of the victim and started touching her private area through her shorts while also lifting up her dress. The victim tried to fend Cruz off and defend herself by pushing him away. Cruz continued the assault and began to strangle the victim around the neck area, until the victim blacked out and lost consciousness.
On August 7, 2021, Cruz approached a third victim by following her and a companion as they were walking home. Cruz followed them for multiple blocks and, after being noticed by the companion, ran up to the victim and grabbed her private area without her consent. Cruz then continued to try to grab the victim while her companion tried to fend him off. Less than an hour following this assault, Cruz approached a fourth victim, whom he followed while she was walking home. Upon observing Cruz following her, the victim sped up but the defendant started running and caught up to her. He wrapped his arms around her from behind. The victim managed to break free and eventually run away and call 911.
In addition to the prison term, the Honorable Judge Milton Lee ordered six years of supervised release and ordered Cruz to register as a sex offender for 10 years. Over the government’s objection, Judge Lee sentenced Cruz pursuant to the Youth Rehabilitation Act.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of the detectives and patrol officers of the Metropolitan Police Department. They also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Lezlie Richardson and Tracey Hawkins the Victim/Witness Specialist assigned to this matter, and paralegal Tiffany Jones. Finally, they commended the work of Assistant U.S. Attorney Marco Crocetti, who investigated and prosecuted the case.
Diabetes Blood Test Distributor GlycoMark Agrees to Pay $195,000 to Settle False Claims Act AllegationsRead the Press Release
PHILADELPHIA—United States Attorney Jacqueline C. Romero announced that GlycoMark, Inc., a joint-venture subsidiary owned by Toyota Tsusho Corporation, Toyota Tsusho America, Inc., and Nippon Kayaku Co., Ltd., has agreed to pay $195,000 to resolve allegations that it violated the False Claims Act by encouraging its customers to submit claims for the GlycoMark test after the test was no longer approved for reimbursement to Medicare and Medicaid.
Between approximately 2016 and 2018, GlycoMark distributed the GlycoMark test, which was used to detect hyperglycemia and hyperglycemic excursions. According to GlycoMark, the GlycoMark test is used for a “more complete assessment of glycemic control to identify patients that may benefit from closer diabetes management.”
Prior to September 1, 2016, the GlycoMark test was eligible for reimbursement under Medicare’s Current Procedural Terminology (CPT) code 84378, providing coverage for a variety of tests related to blood sugars. In September 2016, a Medicare Administrative Contractor (MAC) issued Local Coverage Determination (LCD) L36761, specifically prohibiting Medicare reimbursement for the GlycoMark test, stating that the GlycoMark test was not reasonable or necessary for the management of diabetes, and is not covered. The non-coverage policy went into effect on October 17, 2016.
Despite knowing of the prohibition of Medicare reimbursement and being aware of the billing oversight for the GlycoMark test, the United States alleges that GlycoMark, from November 1, 2016 to May 30, 2019, knowingly caused to be submitted claims for GlycoMark tests that it knew were not covered by the Federal health care programs. The United States further contends that GlycoMark encouraged its customers to submit GlycoMark tests for Medicare reimbursement in two ways: (1) by encouraging labs to continue billing for the GlycoMark test using CPT code 84378; and (2) by printing and distributing marketing materials that stated “reimbursed by Medicare” and by displaying CPT code 84378 with no disclaimer that Medicare reimbursement is prohibited.
“We are committed to ensuring that testing manufacturing companies appropriately bill Medicare,” said U.S. Attorney Romero. “GlycoMark allegedly encouraged labs to charge the government for quantities of tests after it was aware that federal programs would not reimburse for this testing. Those who engage in these deceptive practices in the name of profits will be held accountable.”
“Testing manufacturing companies have a responsibility to follow Medicare regulations,” stated Maureen R. Dixon, Special Agent in Charge with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG is committed to working with the United States Attorney’s Office to investigate allegations of inappropriate insurance claims and to safeguard the integrity of our federal health care programs.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Jeffery Johnston v. GlycoMark, Inc., et al., No. 2:18 -cv-5033 (E.D. Pa.) and was filed by Thomas W. Sheridan of Sheridan & Murray LLC in Philadelphia, PA.
The investigation was conducted by the U.S. Department of Health and Human Services Office of Inspector General. The investigation and resolution obtained in this action were handled by United States Attorney Jacqueline C. Romero and Auditor George Niedzwicki.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Craven County Gang Member Receives 15 Years in Federal Prison for Role in Drug Trafficking OrganizationRead the Press Release
RALEIGH, N.C. – Eric Best, also known as “Slime,” 24, of New Bern was sentenced today to 180 months in prison for trafficking methamphetamine and fentanyl. The investigation revealed that from March 2019, until December 2022, Best was involved in the distribution of more than two kilograms of methamphetamine and more than 500 grams of fentanyl. Best pled guilty to the charges on October 4, 2022.
According to court documents, evidence presented in court, and other evidence, on April 26, 2019, law enforcement conducted a traffic stop on a car in Craven County. Law enforcement found four guns including an assault rifle and $8,000. Best was one of three people in the car. It was later determined that they were going to New Jersey to sell the guns.
On December 22, 2020, the New Bern Police conducted a traffic stop on a car being driven by Best. An officer noticed the odor of marijuana. During a search, officers located 74 grams of fentanyl and 27 grams of methamphetamine inside of the car and on a passenger. The investigation uncovered that Best had instructed the passenger to hide the drugs. According to law enforcement, Best is a validated gang member and held a position of leadership in the Pretty Tony Blood gang.
This is part of operation “Jersey South” which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, 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.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Marshal’s Fugitive Task Force, the Drug Enforcement Administration, the Craven and Granville County Sheriffs’ Offices, and the New Bern Police Department investigated the case. Additionally, the Craven County District Attorney’s Office and the District Attorney Scott Thomas assisted with the case. Assistant U.S. Attorney Timothy Severo prosecuted the case.
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. 4:21-CR-0053-D-4.
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Coon Rapids Man Sentenced to Prison for Threatening a U.S. SenatorRead the Press Release
ST. PAUL, Minn. – A Coon Rapids man has been sentenced to one year and one day for making interstate threats against a U.S. Senator, announced U.S. Attorney Andrew M. Luger.
According to court documents, on June 11, 2022, Brendon Michael Daugherty, 35, left two voicemail messages on the field office telephone of a U.S. Senator located outside the state of Minnesota. Both messages contained threats of violence directed at the U.S. Senator. In his first message, Daugherty stated, “You and the Republican Party should be proud that you’re pushing me to become a domestic terrorist. Have a nice [expletive] day; can’t wait to kill ya.” In his second message, Daugherty stated, “I also just wanted to note, thank God the Republican Party is against gun control laws because it would keep guns out of the hands of a person that was disabled and volatile like I am, but you guys are totally against that. So, I may actually get to carry out my nefarious goals.” Field office staff retrieved and recorded the messages and reported them to U.S. Capitol Police.
Daugherty pleaded guilty on November 1, 2022, to one count of interstate transmission of a threat to injure the person of another. Daugherty was sentenced yesterday in U.S. District Court before Judge Eric C. Tostrud. In handing down the sentence, Judge Tostrud emphasized that threats directed at elected officials pose a “pernicious threat to our democratic institutions.”
This case is the result of an investigation conducted by the FBI and the U.S. Capitol Police.
Assistant U.S. Attorney Kimberly A. Svendsen prosecuted the case.
Convicted Sex Offender Sentenced to Eighty Years in Prison on Child Exploitation ChargesRead the Press Release
HUNTSVILLE, Ala. – A federal judge this week sentenced a Madison County man on child sexual exploitation charges, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples, and U.S. Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge Katrina W. Berger.
U.S. District Judge Liles C. Burke sentenced Kevin Alexander Guerrero-Beltran, 32, to 960 months in prison followed by lifetime of supervised release. Guerrero-Beltran was also ordered to pay $11,000 in restitution to the victims. In January 2023, Guerrero-Beltran pleaded guilty to transportation and distribution of child pornography.
“This defendant has proven that he will continue to abuse and sexually exploit children,” said U.S. Attorney Escalona. “It took a collaborative effort to remove the danger presented by Guerrero-Beltran to the children in our communities. We thank our local, state, and federal partners in protecting our most vulnerable victims. The sentence imposed ensures that Guerrero-Beltran will spend the rest of his life in prison.”
“Mr. Guerrero-Beltran is a serial offender who has repeatedly targeted the most vulnerable of our population and, with today’s sentence, I am grateful that he will never be in a position to harm another child again,” said FBI Special Agent in Charge Peeples. “While no amount of prison time or restitution will ever give his victims back the innocence he stole from them, I hope they know that the FBI and our partners will never tire in our efforts to find those who seek to harm our children.”
“While we know the young victims and families of this egregious child predator will have a lifetime of recovery, we hope this significant sentence brings them the relief of knowing he will never harm another child,” said HSI Atlanta Special Agent in Charge Berger. “This case sends a resounding message to those who would target our youth - we will find you and hold you accountable for your heinous crimes.”
According to court documents, Guerrero-Beltran has a history of committing sex crimes against children and was previously convicted of traveling to meet a child for a sex act in Marshall County. He was on state probation at the time he committed these federal offenses. Guerrero-Beltran was released from state prison on May 28, 2020, and a mere three months after his release from prison, the National Center for Missing and Exploited Children (NCMEC) issued a cyber tip involving the defendant sending an image of child sexual abuse material (CSAM) on Snapchat. Separate from that, between October 17, 2020, and October 23, 2020, the defendant was involved in and became the administrator of a specific online group where individuals exchanged CSAM. There was also a second cyber tip issued from NCMEC involving the defendant uploading CSAM on a social media application between November 6, 2020, and November 17, 2020. Furthermore, between May 28, 2021, and June 4, 2021, the defendant was in communication with another individual inquiring about having sex with an eight-year-old girl.
FBI Birmingham’s Child Exploitation and Human Trafficking Task Force (CEHTTF), FBI Phoenix Division, U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI), Alabama Law Enforcement Agency (ALEA), Huntsville Police Department, Madison County Sheriff’s Office, and Georgia Bureau of Investigation participated in this investigation. Assistant U.S. Attorney R. Leann White is prosecuting the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Carnegie Man Sentenced to 6½ Years for $3.8 Million Paycheck Protection Program FraudRead the Press Release
PITTSBURGH - A Pittsburgh resident has been sentenced in federal court to 78 months in prison, to be followed by five years of supervised release, plus restitution of $3,885,082 on his conviction for bank fraud and money laundering, Acting United States Attorney Troy Rivetti announced today.
United States District Judge W. Scott Hardy imposed the sentence on Randy Frasinelli, 66, of Carnegie, PA 15106.
According to information presented to the court, Frasinelli filed six fraudulent applications for loans from the Paycheck Protection Program, falsely asserting that he had businesses with dozens of employees and hundreds of thousands of dollars in monthly payroll. After receiving more than $3.8 million as a result of those loans, Frasinelli spent the money on luxury items including vehicles, a villa in Mexico, an African safari, firearms, works of art, precious metals, watches, and personal investments. Then, prior to sentencing, Frasinelli submitted at least 13 forged character letters, purportedly from prominent individuals in politics, finance, business, technology, and charitable organizations, in an attempt to receive a more lenient sentence.
Prior to imposing sentence, Judge Hardy stated that Frasinelli had committed a very serious crime involving funds that were intended to help small businesses maintain payroll during the pandemic. Judge Hardy also emphasized that Frasinelli’s submission of the forged character letters had eroded the Court’s trust in him at sentencing. Frasinelli was taken into the custody of the United States Marshals at the conclusion of the hearing.
“The scope and magnitude of this defendant’s ongoing fraud and deception is enormous. He lied in an effort to obtain pandemic relief funds while already facing charges of illegally taking federal money meant for businesses on the verge of collapse,” said Acting U.S. Attorney Rivetti. “Mr. Frasinelli viewed the Payroll Protection Program as an opportunity to enrich himself at the expense of taxpayers. His continuing deceit—right up to the time of sentencing when he targeted the Court by submitting fraudulent character letters in support of his request for leniency—demonstrates a complete lack of respect for the law. A sentence of six and a half years appropriately holds him accountable and is just punishment for his $3.8 million scheme.”
“Mr. Frasinelli spent millions of dollars he stole from the Paycheck Protection Program to take lavish trips and buy expensive gifts he felt he was entitled to,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “He then tried to undermine the justice system by submitting false character letters attesting to his generosity. The sentence handed down today demonstrates that those who defraud government programs will be held accountable for their actions.”
“Randy Frasinelli’s greed caused him to repeatedly abuse the Payroll Protection Program, and today he is paying the price for doing so,” said Yury Kruty, Special Agent in Charge of IRS-Criminal Investigation. “While Mr. Frasinelli’s actions were a crime against the government, they also negatively impacted people and businesses who legitimately needed the money but couldn’t get it because the program had been drained. IRS-CI and our law enforcement partners remain committed to bringing fraudsters like Mr. Frasinelli to justice.”
Assistant United States Attorney Jeffrey R. Bengel prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended the Federal Bureau of Investigation and Internal Revenue Service - Criminal Investigation for the investigation leading to the successful prosecution of Frasinelli.
California Pharmacist Agrees to Settle Allegations of FraudRead the Press Release
Gisele Nguyen, a pharmacist residing in Huntington Beach, California, has agreed to pay $3,933,993 to resolve allegations that she fraudulently billed the Medicare Program for medications that were never dispensed.
The United States alleged that, from at least Jan. 1, 2014, through Dec. 31, 2018, Nguyen, by and through the operation of Gisele Nguyen, Inc., doing business as Natico Pharmacy, which was located in Garden Grove, California, fraudulently submitted claims to Part D of the Medicare Program for prescription medications that were never dispensed to beneficiaries. According to the United States, inventory records showed that Natico Pharmacy did not purchase enough of these medications from wholesaler distributors to fill all of the prescriptions billed to Medicare.
“Federal health care programs provide critical health care services to millions of Americans,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable those who seek to defraud these programs, including by billing for goods or services that they did not provide.”
The resolution obtained in this matter was handled by the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, with assistance from the U.S. Attorney’s Office for the Central District of California.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was investigated by Senior Trial Counsel Jennifer Cihon, with assistance from Assistant U.S Attorney Zoran J. Segina for the Central District of California.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
California Man Pleads Guilty to Nationwide Marijuana Trafficking ConspiracyRead the Press Release
ALBANY, NEW YORK – Sammy Olague, age 36, of Clovis, California, pled guilty today to conspiring to distribute marijuana.
United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division; Troy Police Chief Daniel DeWolf; and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
Olague admitted that he was a member of a marijuana-trafficking organization that shipped marijuana from Fresno, California, to locations through the United States, including the Capital Region, between 2016 and February 2020. The marijuana was shipped through UPS and FedEx from a shipping store, Fast Pack & Ship, in Fresno. The defendant owned and operated Fast Pack & Ship from 2016 through June 2018, when he sold the business to Nehemiah Fane, aka “Neil.” A portion of the purchase money was paid in cash by Dwight A. Singletary II, aka “Nutt” and “Mike Jones,” whom the defendant called “New York.”
Before selling Fast Pack & Ship, Olague shipped approximately 86 kilograms (189 pounds) of marijuana from Fast Pack & Ship to Ruskin, Florida. He also shipped marijuana to, among other locations, the Capital Region and New York City for Singletary.
Between April 2016 and May 2018, Olague shipped at least 104 packages—55 of which contained over 340 kilograms (750 pounds) of marijuana—from Fast Pack & Ship to the Capital Region. In the same period, he received money transfers from and cash, cashier’s checks, and money order deposits into his bank accounts in the Capital Region. As payment for marijuana from Singletary, in May 2018, McKenzie Merrialice Coles, aka “Kenzie,” sent a $1,650 money transfer from the Capital Region to Olague in Fresno; in July and August 2018, three $5,000 cashier’s checks purchased by Isiah Ti-Quan Clements, aka “Zay,” were deposited into Olague’s bank account at a bank in the Capital Region.
After selling Fast Pack & Ship to Fane, between July 2018 and February 2020, Olague shipped at least 30 packages containing approximately 56 kilograms (123 pounds) of marijuana from Fast Pack & Ship to Ruskin.
Olague was charged in an indictment with Singletary, Coles, Fane, Clements, and 19 other people charging marijuana distribution and money laundering conspiracies, firearms offenses, and other crimes. Singletary, Coles, Fane, and Clements have pled not guilty, and are presumed innocent unless and until proven guilty. The charges in the indictment are merely accusations.
Olague faces at least 5 years and up to 40 years in prison and a maximum fine of $5 million at sentencing. He will also be required to serve at least 4 years and up to a lifetime term of supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The ATF, DEA, Troy Police Department and HSI are investigating the case. Assistant U.S. Attorneys Cyrus P.W. Rieck and Dustin C. Segovia are prosecuting the case.
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.
Burtonsville Man Sentenced to 17 Years in Federal Prison for the Armed Robberies of an Armored Truck, Two Banks and a Convenience StoreRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang has sentenced Israel Ramirez, age 29, of Burtonsville, Maryland, to 17 years in federal prison, followed by five years of supervised release, for an armed robbery of an armored truck, two armed bank robberies and the armed robbery of a convenience store. In each of the armed robberies, Ramirez discharged his weapon. Ramirez discharged his handgun multiple times in the bank robberies.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Chief Marcus Jones of the Montgomery County Police Department; Chief Malik Aziz of the Prince George’s County Police Department; and Chief Russell E. Hamill III of the Laurel Police Department.
According to his guilty plea, on July 4, 2021 Ramirez committed the armed robbery of convenience store in Laurel, Maryland. During the robbery, Ramirez brandished a firearm, which he fired into a cigarette display behind the register when the employees had trouble opening the register. Ultimately, the employees were able to open the register and provided Ramirez with cash. On July 12th, Ramirez robbed the same store. An employee recognized Ramirez as the person that had robbed the store and discharged his weapon the week before. Ramirez kept his hand in his pocket and demanded that the employee open the register. The employee provided Ramirez with cash from the register and Ramirez left the store.
Later on July 12, 2021, Ramirez began following an armored truck that had recently conducted a cash drop/pickup at a nearby bank. The armored truck pulled into a shopping center and parked in front of a bank. The driver of the armored truck went into the bank for a pickup/drop off. Shortly thereafter, Ramirez pulled into the parking lot and parked near the armored truck. Ramirez got out of his car and adjusted the front and rear license plates, so they were folded up onto themselves, then watched as the driver left the bank with deposit bags and got into the armored truck. Ramirez followed as the armored truck driver pulled into another parking lot to conduct another pickup. Ramirez, brandishing a gun, approached the driver as he was leaving a business with the deposit bag. Ramirez demanded the bag, which the driver gave him. Ramirez demanded that the driver give him the earlier deposit bags, but the driver said he could not get back into the armored truck. As Ramirez returned to his car, the driver attempted to get into the driver’s side of the armored truck and Ramirez aimed his gun in the direction of the driver and the armored truck and fired one shot. Ramirez then fled with the cash he stole from the driver.
On November 4, 2021 and December 3, 2021, Ramirez robbed two banks in Silver Spring, Maryland. In each robbery, Ramirez brandished a gun, which he fired after entering the bank, and demanded that the bank employees give him $10,000. In the first robbery, after receiving money from an employee, Ramirez walked toward the exit and fired his gun into a wall as he left the bank. In the second bank robbery, Ramirez fired multiple shots into the ceiling of the bank before demanding cash.
During the second robbery, a bank employee saw Ramirez pull down his mask and recognized him as a frequent customer of the bank. A search warrant was executed at Ramirez’s residence that same day. Law enforcement recovered a black 9mm handgun that matched the description of the gun used by Ramirez during the robberies. Shell casings recovered from each of the robberies were also identified as coming from that gun, which was registered to Ramirez.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (“ATF”) National Integrated Ballistic Information Network (“NIBIN”). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Attorney Erek L. Barron commended the FBI, the Prince George’s Police Department, the Montgomery County Police Department, and the Laurel Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Joel Crespo and Caitlin Cottingham, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Brooklyn Park Felon Sentenced to 87 Months in Prison for Illegal Possession of a FirearmRead the Press Release
ST. PAUL, Minn. – A Brooklyn Park man was sentenced to 87 months in prison, followed by three years of supervised release, for possessing a firearm as a felon, announced U.S. Attorney Andrew M. Luger.
According to court documents, on September 19, 2021, Marlin Lavar White, 27, possessed a Springfield Armory, model XDM-9, 9mm caliber, semiautomatic pistol while in downtown Minneapolis. When White saw police officers he ran and placed the firearm into a planter near a hotel. The firearm was later recovered from the planter.
Because White has several prior felony convictions in Hennepin County, he is prohibited from lawfully possessing any firearms or ammunition. White pleaded guilty on December 1, 2022, to one count of felon in possession of a firearm. He was sentenced yesterday by Senior Judge Ann D. Montgomery.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department.
Assistant U.S. Attorneys David P. Steinkamp, Justin A. Wesley, and Craig R. Baune prosecuted the case.
Brooklyn High School Teacher Sentenced to 20 Years' Imprisonment for Production of Child PornographyRead the Press Release
Jonathan Deutsch was sentenced today in federal court in Brooklyn by United States District Judge Frederic Block to 20 years in prison for four counts of sexual exploitation of a minor and six counts of attempted sexual exploitation of a minor. Deutsch is employed as a teacher by the New York City Department of Education, and immediately prior to his arrest, he was teaching at Leon M. Goldstein High School for the Sciences in Brooklyn. The defendant was convicted in June 2022 following a one-week trial.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
“The defendant will be incarcerated for many years and deservedly so because he is the most dangerous type of predator, a teacher who enjoys victimizing children. Instead of using his training and skills as a teacher to enrich children, he used those skills to gain the trust of minors in order to sexually exploit them,” stated United States Attorney Peace. “We will continue to do all that we can to protect our children from sexual exploitation.”
“Deutsch was convicted at trial of sexually exploiting children as young as 10-years old, and with today’s sentence, he learned the consequences of his depraved actions. He will rightfully serve a lengthy term in federal prison, where he will no longer pose a threat to our society’s most vulnerable members,” stated FBI Assistant Director-in-Charge Driscoll.
“Mr. Deutsch violated, in a truly reprehensible way, the sacred trust that exists between teachers and young people,” stated NYPD Commissioner Sewell. “Today’s sentencing sends an unequivocal message that the NYPD and our law enforcement partners will never tolerate the appalling acts of such criminal predators. I commend and thank all of the involved investigators at the city, state, and federal levels, and everyone at the office of the U.S. Attorney for the Eastern District and the Department of Justice Child Exploitation and Obscenity Section, for their critical efforts on this important case.”
As set forth in the government’s sentencing memorandum and related court proceedings, in 2016 and 2017, Deutsch used multiple Facebook accounts to meet minors online. In one of his Facebook accounts, Deutsch posed as a 33-year-old teacher from New York, and in another account, he posed as a 14-year-old boy. Deutsch joined Facebook groups frequented by LGBTQ+ minors who were struggling with their sexuality and gender identity. After meeting in groups, Deutsch directly messaged children to develop relationships with them. When chatting with children, the defendant flattered them to gain their trust, and he offered support, comfort and affirmation when they expressed sadness, insecurity or pain. Then, Deutsch engaged the children in hyper-sexual conversation and enticed them to engage in sexually explicit conduct so that he could get videos and photos of that conduct. He also sent minors sexual photos that he represented to be of himself. Ultimately, Deutsch requested and received sexually explicit images or videos from at least four children, ranging in age from 10 to 16 years old.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Department of Justice Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Megan E. Farrell and Rachel A. Bennek are in charge of the prosecution with the assistance of Paralegal Specialist Adam Bernard.
The Defendant:
JONATHAN DEUTSCH
Age: 39
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-502 (S-1) (FB)
Bremerton, Washington man indicted for three-month ‘swatting’ campaign that threatened victims across the USA and in CanadaRead the Press Release
Seattle – A 20-year-old Bremerton, Washington, man was arrested early today on an indictment charging him with ten federal felonies related to his illegal harassing activity – also known as “swatting.” Ashton Connor Garcia will make his initial appearance today in U.S. District Court in Tacoma.
“Every time Mr. Garcia is alleged to have made one of his false reports to law enforcement, he triggered a potentially deadly event – sending heavily armed police officers to an address where they mistakenly believed they would confront someone who was armed and dangerous,” said U.S. Attorney Nick Brown. “Fortunately, no one was hurt, but the unpredictable and terrifying dynamic these calls created for Mr. Garcia’s alleged victims cannot be overstated. There is nothing funny about abusing emergency resources and intentionally placing people in harm’s way.”
“Fortunately, no one was hurt as law enforcement responded to Mr. Garcia’s swatting calls,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “However, it is impossible to quantify the significant harm caused by his actions, which affected communities across the nation. Mr. Garcia will be held accountable for his actions, and we hope this also serves as an example of how serious the FBI, the US Attorney’s Office, state, and local law enforcement take these threats.”
According to the indictment, between June 2022 and early September 2022, Garcia made more than 20 swatting calls to law enforcement, targeting victims in California, Georgia, Illinois, Kentucky, Michigan, Minnesota, New Jersey, Ohio, Pennsylvania, Tennessee, Washington, and Edmonton, Alberta, Canada. According to the indictment, Garcia gathered personal information about his victims, and then threatened his victims with harm, including placing swatting calls to send an armed police presence to their home. In some instances, he made swatting calls at the request of friends. Garcia demanded money, virtual currency, credit card information, or sexually explicit photos from some of the people he threatened.
Garcia used voice over internet technology to hide his identity. Using false identities, he made fake reports to non-emergency police numbers claiming things such as that he and others had planted explosive devices in particular locations. He falsely accused other individuals of committing crimes, such as murder, rape, and kidnapping, and he falsely claimed that these individuals possessed dangerous weapons, such as knives, firearms, and explosive devices. Frequently he used the same scripts claiming that his father was holding him hostage, false claims that he shot his parents, false claims that his father stabbed his mother, and false claims that his father had raped female members of the family.
The false reports tied up law enforcement resources that could have been used for actual emergencies. In some instances, law enforcement entered the victim residence with weapons drawn and detained people at the residence.
Garcia allegedly treated the swatting calls like entertainment. He broadcast his swatting calls via the internet platform Discord. Garcia allegedly told other Discord users that he considered himself a “cyber terrorist.”
Specifically, the indictment charges Garcia with these crimes:
- Extortion – Ohio: On July 17, 2022, allegedly demanded credit card information or would injure the reputation of the victim, their family, would leak nude photos, and “swat them.”
- Threats and Hoaxes -Ohio: On July 22, 2022, allegedly made a swatting call to the Shaker Heights Police Department falsely alleging his father was holding the family hostage with firearms and a hand grenade.
- Threats and Hoaxes – Ohio: On July 28, 2022, allegedly called the Cleveland Police Department falsely claiming he had planted a bomb at the Fox News station in Cleveland.
- Hoaxes regarding firearms – California: On July 29, 2022, allegedly called the Los Angeles Police Department falsely claiming his father was raping his sister, that his father had lots of guns and was both mentally ill and a drug addict.
- Interstate threats – Kentucky: on July 30, 2022, allegedly called the Kentucky State Police threatening to kill named hostages.
- Hoaxes regarding aircraft – California: on August 23, 2022, allegedly called the Los Angeles Police and claimed his daughter told him there was a bomb on her flight from Honolulu to LAX.
- Extortion – New jersey: on August 24, 2022, allegedly attempted to obtain photographs and videos of a minor female’s body by threatening to accuse a family member of a crime and “swat” them.
- Threats and hoaxes regarding explosives – Michigan: allegedly reported to the Milan Michigan Police Department that his father was holding him hostage with a gun and bomb.
- Threats and hoaxes – Tennessee: on September 2, 2022, allegedly called the Milan, Tennessee Police Department alleging he was being held hostage by his father who had a gun and bomb.
- Threats and hoaxes regarding explosives – California: allegedly called Los Angeles Police Department alleging he had stashed four pounds of C4 explosives at an airport in Los Angeles and would detonate it unless he was paid $200,000 in bitcoin.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Threats and hoaxes involving explosives are punishable by up to 10 years in prison. Other charged threats and hoaxes are punishable by up to five years in prison. Extortion is punishable by up to two years in prison.
The case is being investigated by the FBI, with substantial assistance from numerous local law enforcement agencies throughout the United States and in Canada.
The case is being prosecuted by Assistant United States Attorney Jessica Manca.
garcia_indictment_court_stamped.pdfBinghamton Man Sentenced for Drug CrimeRead the Press Release
SYRACUSE, NEW YORK – Adam Baldwin, age 42, of Binghamton, New York, was sentenced today to 30 months’ imprisonment for attempted possession with intent to distribute methamphetamine.
United States Attorney Carla B. Freedman and Special Agent in Charge Matthew Scarpino of the Buffalo Field Office of Homeland Security Investigations (HSI) made the announcement.
As part of his prior guilty plea, Baldwin admitted that in September 2021, he agreed to receive shipments of methamphetamine, which he provided to another individual in exchange for payment. Baldwin had the shipments delivered to a UPS Store in Alexandria Bay, New York, where he picked them up. In October 2021, law enforcement intercepted two of the packages addressed to Baldwin, which contained a total of approximately 1,070 grams of pure methamphetamine.
United States District Judge David N. Hurd also ordered Baldwin to serve a three-year term of supervision following his release from prison.
This case was investigated by U.S. Homeland Security Investigations (HSI), the Metro-Jefferson Drug Task Force (comprised of detectives from the Jefferson County Sheriff’s Office, the Watertown Police Department, the Jefferson County District Attorney’s Office), and the Santa Ana Police Department in California. Assistant U.S. Attorney Matthew J. McCrobie prosecuted the case.
29 March 2023
Yakima Man Sentenced to 48 Months in Federal Prison for Firearm OffenseRead the Press Release
Yakima, Washington – United States District Judge Mary K. Dimke sentenced James Duane Deckard, age 25, of Yakima, Washington, to 48 months in federal prison after Deckard had pleaded guilty on November 15, 2022 to being an Unlawful User of Controlled Substances and Person Convicted of Domestic Violence in Possession of a Firearm and Ammunition. Deckard will also serve three years of supervised release after his release from confinement.
According to court documents, on December 16, 2021, Deckard was involved in a domestic dispute where Deckard pointed a firearm at his intimate partner. On December 18, 2021, officers with the Yakima Police Department attempted to stop Deckard’s vehicle. Deckard accelerated and attempted to elude law enforcement through Yakima, eventually colliding with a fire engine. Deckard then ran from the vehicle and was apprehended. Deckard’s intimate partner – who had been inside the vehicle – alerted officers that Deckard had thrown an item out of the car while driving by a park. Officers responded to Raymond Park where they located a firearm, which was later found to have Deckard’s DNA. Various rounds of ammunition were recovered from Deckard’s vehicle as well as a substantial amount of marijuana. When detained, Deckard made statements indicating that Deckard was a user of methamphetamine. Deckard had previously been convicted of a domestic violence assault against his intimate partner.
After Deckard was sentenced, United States Attorney Vanessa R. Waldref stated, “Through our Safe Homes, Safe Community Initiative, we are protecting families and preventing firearm homicides perpetrated by those who have a history of domestic violence and unlawfully possess firearms. When there is a gun in a house that has a domestic abuser, the risk of violence increases significantly. Indeed, Offenders with a history of domestic violence that possess firearms are five times more likely to kill their partners. Abusers also use firearms to inflict fear, intimidation, and coercive control. By keeping guns out of the hands of domestic abusers, our communities are safer and stronger.”
“The combination of domestic violence, drugs and firearms is not a good strategy for success,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “Once he completes his sentence, Mr. Deckard will still be relatively young. We are hopeful that as a result of the prosecution in this case, Mr. Deckard can make the necessary changes in his life to become a positive member of the community on his release.”
Chief Matthew Murray, Chief of Police for the Yakima Police Department commended the corroborative work of law enforcement to bring justice in this case. Chief Murray stated, "I applaud the work of both the ATF and U.S. Attorney in this case. They are strong partners in Yakima’s effort to combat domestic violence in our community. These prosecutions were the proactive concept of the U.S. Attorney’s Office, and I believe send a strong message that acts of domestic violence will not be tolerated.
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Yakima Police Department, and the Washington State Patrol. This case was prosecuted by Michael J. Ellis, Assistant United States Attorney for the Eastern District of Washington.
1:22-cr-02066-MKD
United States Inspector Generals Commit to Fighting Waste, Fraud and Abuse of Federal Funds in the Virgin IslandsRead the Press Release
St. Thomas, VI – Dozens of federal Inspector General officials gathered in St. Thomas on March 22-23, 2023, for the first Virgin Islands Office of Inspector General Spring Symposium. The federal oversight and law enforcement officials spent two days collaborating and sharing information as part of their ongoing commitment to protect federal funds awarded to the Virgin Islands.
“As a result of Hurricanes Irma and Maria and the COVID-19 pandemic, the Territory received tens of billions of federal funds,” United States Attorney Delia L. Smith said. “We are committed to ensuring that these funds are properly utilized to improve the lives of the people of the Virgin Islands.” Sponsored by the United States Attorney Office and the Virgin Islands OIG Council, the symposium focused on identifying strategies to combat waste, fraud and abuse, and to improve efficiency in the federally funded programs in the Virgin Islands.
“The symposium was an excellent opportunity to do what the Inspector General community does best: work together to combat fraud, waste and abuse across federal government programs,” said Mark Lee Greenblatt, Inspector General of the U.S. Department of the Interior and Chairperson of the Council of the Inspectors General on Integrity and Efficiency. Greenblatt thanked United States Attorney Smith for bringing together such a diverse array of federal law enforcement organizations. “Collaboration with our on-island partners – including the U.S. Attorney’s Office, the Virgin Islands OIG and local law enforcement – is critical to the DOI OIG’s success here. I look forward to bolstering those partnerships as we work together to identify and address misconduct in DOI programs in the U.S. Virgin Islands”, Greenblatt said.
Inspector General of the U.S. Small Business Administration (SBA), Hannibal “Mike” Ware, added that “the inaugural symposium showcased the unwavering commitment of the Inspector General community to combatting waste, fraud and abuse. With potential fraud on the rise, the IG community has implemented a whole-of-government approach by investing in partnerships to bring wrongdoers to justice and reclaim stolen taxpayer dollars.”
“This symposium represents the unprecedented commitment of the IG community and federal and local law enforcement partners to interagency collaboration in the U.S. Virgin Islands. Thank you to U.S. Attorney Delia Smith for hosting this historical symposium. We look forward to continued partnership with our local partners in the Virgin Islands to combat fraud, waste and abuse and to protect the integrity of HUD programs", said Rae Oliver Davis, Inspector General of the U.S. Department of Housing and Urban Development (HUD).
Representatives from 16 Inspector General Offices and federal oversight agencies, including Small Business Administration, Interior, Health and Human Services, Housing and
Urban Development, Education, Treasury, Transportation Security Administration, General Services Administration, Environmental Protection Agency, Internal Revenue Service, Transportation, U.S. Postal Service, Energy, Labor, Department of Justice and Commerce, attended the symposium. Federal law enforcement agents and analysts stationed in the Virgin Islands also attended the symposium, as well as representatives from the Virgin Islands Office of the Inspector General. The symposium was held at the U.S. Citizenship and Immigration Services office in Smith Bay, St. Thomas.U.S. Attorney Hurwit Announces Sentences in Two Cases Involving Fentanyl and Stolen FirearmsRead the Press Release
BOISE – Two men from southern Idaho were sentenced to federal prison in separate drug and firearms cases this week, announced U.S. Attorney Josh Hurwit.
Keith McClary, 38, of Nampa, was sentenced to 96 months in federal prison for theft of firearms from a federal firearms licensee. Chief U.S. District Judge David C. Nye also ordered McClary to serve three years of supervised release following his prison sentence.
According to court records, in October 2021, McClary broke into a gun store in Nampa and stole twenty-four firearms. McClary then distributed the firearms, trading some of the firearms for a large quantity of fentanyl pills. McClary has an extensive criminal history, including convictions for burglary, domestic violence, and possession of a controlled substance.
In a separate case, Jase Anderson, 35, of Mountain Home, was sentenced to 110 months in federal prison for possession with the intent to distribute fentanyl. Chief U.S. District Judge David C. Nye also ordered Anderson to serve four years of supervised release following his prison sentence.
According to court records, over the course of a two-day investigation in July 2022, law enforcement seized six ounces of fentanyl powder, $9,440 in drug proceeds, three firearms—one of which was stolen, and numerous rounds and calibers of ammunition from Anderson.
Anderson also has an extensive criminal history, including convictions for attempted malicious injury to property, possession of a controlled substance, and domestic battery.
“The successful prosecution of these dangerous offenders demonstrates our commitment to making our communities safer,” said U.S. Attorney Hurwit. “The success of our Project Safe Neighborhoods program is the result of our close partnerships with local law enforcement agencies who help us identify and prosecute violent offenders across the state.”
U.S. Attorney Hurwit credited the Bureau of Alcohol, Tobacco, Firearms, and Explosives and Nampa Police Department for their collaboration on the McClary case and commended Boise Police Department and the Boise Area Narcotic Drug Interdiction Team (BANDIT) for their work on the Anderson case.
These cases were prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Two Orlando Women Sentenced for Preparing Fraudulent Tax Returns for Three YearsRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Erotida Natasha Harden Ortiz to eight years in federal prison and Aida Cortes to four years and six months in federal prison. A federal jury had found Harden and Cortes guilty in October 2022. Harden was convicted of conspiracy to defraud the United States and six counts of aiding in fraudulent and false statements related to IRS tax returns. Cortes was convicted of one count conspiracy to defraud the United States.
According to evidence admitted during the trial and sentencing hearing, Ortiz owned Certified Taxes, LLC and Cortes was her office manager. Prior to opening Certified Taxes, Harden and Cortes both worked for two other tax businesses that had been closed down by the IRS. From 2016 through 2018, Ortiz and Cortes orchestrated a scheme to file taxes for unsuspecting taxpayers by filling out fraudulent Schedule C forms, which showed a business loss and enabled the taxpayers to obtain the Earned Income Tax credit. By obtaining the Earned Income Tax credit, the taxpayers were able to receive refunds to which the taxpayers were not entitled. As a result, the taxpayers continued to come back to Certified Taxes every year. The evidence revealed that Certified Taxes did not provide the tax returns to the taxpayers to review or review the tax returns with the taxpayers prior to filing them with the IRS.
During the conspiracy, Certified Taxes filed more than 3,600 tax returns with the IRS, with only 1 tax return resulting in a taxpayer owing money to the IRS. For each tax return Certified Taxes charged the taxpayer approximately $400, resulting in Certified Taxes receiving more than $1.2 million in tax preparation fees. In addition, in the last year of operation, Harden claimed income from Certified Taxes of approximately $394,000 but due to a fraudulent Schedule C, which claimed expenses of $379,000 on her tax return, she was able to qualify for the Earned Income Tax Credit and receive a refund of $6,375.
At sentencing, Harden and Cortes were ordered to repay the IRS $3.796 million in restitution for the fraudulent tax returns that generated tax refunds to which taxpayers were not entitled.
“Knowingly submitting false documents to the IRS is a crime,” said Ronald A. Loecker, IRS-CI Acting Special Agent in Charge. “The defendants personally benefitted from filing false tax returns for clients and yesterday’s sentence demonstrates that willfully interfering with the integrity of our nation’s tax system will result in fraudsters spending time in prison.”
This case was investigated by the Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
Two Additional Defendants Charged with Civil Rights Conspiracy Targeting Pregnancy Resource CentersRead the Press Release
A federal grand jury in the Middle District of Florida returned a superseding indictment charging two additional Florida residents with federal crimes arising out of a series of targeted attacks on pregnancy resource facilities in the state. Caleb Freestone, 27, and Amber Smith-Stewart, 23, were previously charged with the same offenses in March.
According to the superseding indictment, Gabriella Oropesa and Annarella Rivera, along with Freestone and Smith-Stewart, engaged in a conspiracy to prevent employees of reproductive health services facilities from providing those services. As part of the conspiracy, the defendants allegedly targeted pregnancy resource facilities and vandalized those facilities with spray-painted threats. Some of the co-conspirators are alleged to have spray painted threats, including “If abortions aren’t safe than niether [sic] are you,” “YOUR TIME IS UP!!,” “WE’RE COMING for U,” and “We are everywhere,” on a reproductive health services facility in Winter Haven, Florida. Facilities in Hollywood, Florida, and Hialeah, Florida, were also allegedly targeted.
The superseding indictment also alleges that Rivera, along with Freestone and Smith-Stewart, violated the FACE Act by using threats of force to intimidate and interfere with the employees of a reproductive health services facility in Winter Haven because those employees were providing or seeking to provide reproductive health services. The superseding indictment further alleges that Rivera, along with Freestone and Smith-Stewart, violated the FACE Act by intentionally damaging and destroying the facility’s property because the facility provides reproductive health services.
If convicted of the offenses, Rivera, Freestone and Smith-Stewart each face up to a maximum of 12 years in prison, three years of supervised release and fines of up to $350,000. Oropesa faces up to a maximum of 10 years in prison, three years of supervised release and a fine of up to $250,000.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Roger B. Handberg for the Middle District of Florida and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI Tampa Field Office investigated the case, with assistance from the FBI Miami Field Office, the Miami Police Department, the Hialeah Police Department and the Hollywood Police Department.
Assistant U.S. Attorney Lisa Thelwell for the Middle District of Florida and Trial Attorney Laura-Kate Bernstein of the Civil Rights Division’s Criminal Section are prosecuting the case.
Anyone who has information about incidents of violence, threats, and obstruction that target a patient or provider of reproductive health services or damage and destruction of reproductive health care facilities, should report that information to the FBI at www.tips.fbi.gov.
For more information about clinic violence, and the Department of Justice’s efforts to enforce FACE Act violations, please visit www.justice.gov/crt/national-task-force-violence-against-reproductive-health-care-providers.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Additional Defendants Charged with Civil Rights Conspiracy Targeting Pregnancy Resource CentersRead the Press Release
Tampa, FL – A federal grand jury in the Middle District of Florida returned a superseding indictment charging two additional Florida residents with federal crimes arising out of a series of targeted attacks on pregnancy resource facilities in the state. Caleb Freestone, 27, and Amber Smith-Stewart, 23, were previously charged with the same offenses in March.
According to the superseding indictment, Gabriella Oropesa and Annarella Rivera, along with Freestone and Smith-Stewart, engaged in a conspiracy to prevent employees of reproductive health services facilities from providing those services. As part of the conspiracy, the defendants allegedly targeted pregnancy resource facilities and vandalized those facilities with spray-painted threats. Some of the co-conspirators are alleged to have spray painted threats, including “If abortions aren’t safe than niether [sic] are you,” “YOUR TIME IS UP!!,” “WE’RE COMING for U,” and “We are everywhere,” on a reproductive health services facility in Winter Haven, Florida. Facilities in Hollywood, Florida, and Hialeah, Florida, were also allegedly targeted.
The superseding indictment also alleges that Rivera, along with Freestone and Smith-Stewart, violated the FACE Act by using threats of force to intimidate and interfere with the employees of a reproductive health services facility in Winter Haven because those employees were providing or seeking to provide reproductive health services. The superseding indictment further alleges that Rivera, along with Freestone and Smith-Stewart, violated the FACE Act by intentionally damaging and destroying the facility’s property because the facility provides reproductive health services.
If convicted of the offenses, Rivera, Freestone and Smith-Stewart each face up to a maximum of 12 years in prison, three years of supervised release and fines of up to $350,000. Oropesa faces up to a maximum of 10 years in prison, three years of supervised release and a fine of up to $250,000.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Roger B. Handberg for the Middle District of Florida and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI Tampa Field Office investigated the case, with assistance from the FBI Miami Field Office, the Miami Police Department, the Hialeah Police Department and the Hollywood Police Department.
Assistant U.S. Attorney Lisa Thelwell for the Middle District of Florida and Trial Attorney Laura-Kate Bernstein of the Civil Rights Division’s Criminal Section are prosecuting the case.
Anyone who has information about incidents of violence, threats, and obstruction that target a patient or provider of reproductive health services or damage and destruction of reproductive health care facilities, should report that information to the FBI at www.tips.fbi.gov.
For more information about clinic violence, and the Department of Justice’s efforts to enforce FACE Act violations, please visit www.justice.gov/crt/national-task-force-violence-against-reproductive-health-care-providers.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trafficker ordered to prison for putting meth on Greyhound busRead the Press Release
CORPUS CHRISTI, Texas – A 47-year-old Donna man has received a significant sentence following his conviction of conspiracy to traffic meth, announced U.S. Attorney Alamdar S. Hamdani.
Cesar Rocha pleaded guilty March 30, 2022.
Today, U.S. District Judge David S. Morales ordered Rocha to serve 228 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence that the meth had been smuggled in from Mexico before Rocha took possession and moved it further north. In handing down the sentence, the court noted Rocha’s prior convictions for similar offenses, possession with intent to distribute and delivery of controlled substances in Tennessee and Alabama, respectively.
On Nov. 28, 2021, a K-9 alerted law enforcement to specific luggage on a Greyhound bus that was traveling from Harlingen to Corpus Christi. Upon opening the bag, they found a wrapped bundle containing nearly one kilogram of meth.
Surveillance footage revealed Rocha had carried the bag in from the bus station in Harlingen. He also purchased a ticket for another individual and put that person on the bus with the bag containing the drugs. Authorities discovered 12 other bus trips matching the same pattern that occurred from December 2020 to November of 2021.
Rocha will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Ashley Martin prosecuted the case.
Texas Man Sentenced to Federal Prison for Conspiring to Break into Businesses in Maryland and Illinois to Steal from ATMsRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Robert Reeves III, age 37 of Dallas, Texas, to two years in federal prison, followed by three years of supervised release, for a conspiracy to commit interstate transportation of stolen goods where the defendant and his co-conspirators broke into businesses and stole cash from Bitcoin-related ATMs. Judge Hollander also ordered Reeves to pay restitution in the full amount of the victims’ losses, which is $55,316. The sentence was imposed on March 27, 2023.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (“HSI”) Baltimore; and Interim Chief Dennis J. Delp of the Baltimore County Police Department.
According to his guilty plea, from August 2018 through at least September 13, 2018, Reeves, co-defendants Meleech Neugent and Brandon Davis, and other individuals conspired to travel from the Dallas, Texas area to other parts of the United States, including the Washington, D.C. metropolitan area, break into businesses after they closed and steal cash from Bitcoin-related automated teller machines (“ATMs”). Specifically, on August 29, 2018, Reeves, his co-defendants and others traveled from Dallas, Texas to Dulles International Airport and rented a vehicle. In the early morning hours of August 31, 2018 and September 1, 2018, they used that vehicle to drive to locations in Rockville, Columbia and Baltimore, Maryland, where they broke into four separate businesses. Once inside the business, the conspirators stole cash from the ATM machines.
As stated in is plea agreement, video surveillance from the burglary locations showed three individuals committed the acts, arriving and departing in a black Jeep Patriot with New Jersey license plates. Records revealed that the vehicle was owned by a car rental company and had been rented at Dulles Airport by Reeves and his co-conspirators. Records associated with Reeves’ internet and cell phone accounts showed that he searched for each victim business while the group was in Maryland. Later on September 1, Reeves and other co-conspirators visited a shopping center in Tysons Corner, Virginia. A video posted to co-defendant Neugent’s social media showed Neugent counting bundles of cash while purchasing shoes at a high-end designer retail store. Reeves and some co-conspirators returned to Texas, flying from Philadelphia, Pennsylvania. Before leaving, the Jeep Patriot that was rented by Reeves was reported as being in a car accident with Reeves and Neugent listed as the occupants of the vehicle.
Reeves admitted that on August 23, 2018, he participated in a similar burglary in Illinois. Specifically, Reeves and another man approached a business in Elgin, Illinois, while carrying prying tools. One man pried open the door and the men then pried open the ATM inside the business, removing approximately $3,000 from the ATM.
Meleesh Neugent, age 40, and Brandon Davis, age 35, both of Dallas, Texas, previously pleaded guilty to their roles in the conspiracy. Neugent was sentenced to time served and Davis is scheduled to be sentenced on May 31, 2023.
United States Attorney Erek L. Barron commended HSI Baltimore and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
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Tampa Felon Charged with Possessing A FirearmRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Leonon Ricky Davis (37, Tampa) with being a felon in possession of a firearm. If convicted, Davis faces a maximum penalty of 15 years in federal prison.
According to statements made in open court, on December 1, 2022, Davis crashed into a parked vehicle while driving drunk on 26th Street in Tampa. Eyewitnesses reported that Davis was waving a black pistol when he exited the vehicle. Davis fled from the scene of the crash on foot, abandoning the pistol, a bag of crack cocaine, and cash along the way. Officers from the Tampa Police Department responded to the scene and apprehended Davis minutes after the crash.
Davis has multiple prior felony convictions, including for possession of cocaine, felony battery, and possession of a firearm by a convicted felon. As such, federal law prohibits him from possessing firearms and ammunition.
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 Tampa Police Department and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney David P. Sullivan.
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 out 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 first place, setting focused and strategic enforcement priorities, and measuring the results.