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29 March 2023
Former construction company president sentenced for attempting to monopolize highway construction, repair contractsRead the Press Release
BILLINGS — The former president of a paving and asphalt contractor based in Billings was sentenced today to three years of probation, with six months of home detention, and fined $27,000 after he admitted to attempting to monopolize the market for highway crack-sealing services in Montana and Wyoming, U.S. Attorney Jesse Laslovich said.
Nathan Nephi Zito, 44, of Billings, pleaded guilty in October 2022 to an information charging him with one felony count of attempted monopolization in violation of the Sherman Act.
The government alleged in court documents that Zito attempted to cheat the competitive bidding process by monopolizing the markets for highway crack-sealing services in Montana and Wyoming by proposing that his company and its competitor allocate regional markets. As early as January 2020, Zito approached a competitor about a “strategic partnership” and proposed that the competitor stop competing with Zito’s company for highway crack-sealing projects administered by Montana and Wyoming. In return, Zito’s company would stop competing with the competitor for projects administered by South Dakota and Nebraska. Zito offered to pay his competitor $100,000 as additional compensation for lost business in Montana and Wyoming. Zito further proposed that he and his competitor enter into a sham transaction to disguise their collusion.
“If Zito had succeeded in his efforts to game the competitive bidding process, there would have been a dangerous probability he would have eliminated competition and been free to raise prices or limit production, which would have negatively impacted the American taxpayer. I am grateful to Assistant United States Attorney Bryan Dake and our valued partners at both the Antitrust Division within the Department of Justice and the Department of Transportation’s Office of Inspector General for their creative and hard work on this case,” U.S. Attorney Laslovich said.
“Defendant Zito’s sentence should serve as a deterrent for contractors tempted by greed when bidding on contracts funded with federal dollars,” said Cissy Tubbs, Special Agent-In-Charge, Department of Transportation (DOT) Office of Inspector General (OIG), Western Region. “We rely on DOT operating agencies such as the Federal Highway Administration to sound the alarm when circumstances in these complex bidding processes seem amiss, as occurred here. Consequently, OIG is committed to pursuing these multifaceted cases with our partners including the Justice Department’s Procurement Collusion Strike Force, the Antitrust Division, and the Montana United States Attorney’s Office.”
The case is the result of a joint investigation conducted by the Antitrust Division’s San Francisco Office, the U.S. Attorney’s Office for the District of Montana and the Department of Transportation Office of Inspector General as part of the Justice Department’s Procurement Collusion Strike Force (PCSF). In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending, go to https://www.justice.gov/procurement-collusion-strike-force.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
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Former State Correctional Officer Pleads Guilty to COVID-19 Relief FraudRead the Press Release
MIAMI – Alfredo Hudson, 36, a former correctional officer with the Florida Department of Corrections (FDC) has pled guilty to wire fraud in connection with two fraudulent loan applications under the Paycheck Protection Program (PPP) before U.S. Magistrate Judge Lisette M. Reid.
On June 12, 2020, Hudson submitted a false and fraudulent PPP loan application claiming to be a self-employed individual operating a recreation business under the name “Alfredo Enterprise.” The PPP loan application falsely represented Alfredo Enterprise’s monthly payroll and included a false and fraudulent IRS Form 1040, Schedule C for tax year 2019. As a result of the false and fraudulent application, Hudson obtained a $10,104 PPP loan from a Georgia-based lender.
On April 25, 2021, Hudson submitted a second false and fraudulent PPP loan application, this time claiming to be a sole proprietor operating a barbershop under the tradename of “Alfredo Enterprise.” The second draw PPP loan application also fraudulently represented Alfredo Enterprise’s 2019 gross income. In support of the application, Hudson submitted a different false and fraudulent IRS Form 1040, Schedule C, for tax year 2019. Once again, the fraudulent application was approved, and Hudson obtained approximately $11,251 in PPP loan proceeds from a Florida-based lender.
Subsequently, Hudson submitted a false and fraudulent PPP loan forgiveness application to the Small Business Administration (SBA) seeking repayment forgiveness for the PPP second draw loan he received from the Florida-based lender. As a result of this false and fraudulent forgiveness application, the SBA excused the defendant from any repayment obligation on the second draw PPP loan.
Hudson is scheduled for sentencing on May 24, at 2:00 p.m. before U.S. District Judge Roy K. Altman. He faces a possible maximum sentence of up to 20 years in prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, and Special Agent in Charge Amaleka McCall-Brathwaite, Small Business Administration, Investigations Division’s Eastern Region (SBA-OIG), announced the guilty plea.
FBI Miami and SBA-OIG investigated the case, with assistance from the Florida Department of Corrections’ (FDC) Office of Inspector General (OIG). Assistant U.S. Attorney Edward N. Stamm is prosecuting the case.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-20060.
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Former Health Care Worker Sentenced for Fentanyl TheftsRead the Press Release
KANSAS CITY, KAN. – A former nurse was sentenced to 12 months and a day in prison for stealing fentanyl from two hospitals where she worked.
Faith Naccarato, 42, of Kansas City, Missouri, pleaded guilty to two counts of tampering with a consumer product and two counts of possession of fentanyl by deception and subterfuge.
According to court documents, between January 2020 and April 2020, Naccarato, used her fingerprint to remove vials of fentanyl from an automated dispensing cabinet in the surgical specialty unit at Menorah Medical Center in Overland Park. She replaced the fentanyl with saline solution before placing the vials back in the cabinet.
Between February 2020 and April 2020, Naccarato took vials of fentanyl from an automated dispensing cabinet in the noninvasive cardiology unit at AdventHealth Shawnee Mission in Meriam. She replaced the fentanyl with saline solution and then placed the vials back in the cabinet.
Naccarato told investigators she stole the fentanyl for personal use.
“Our medical facilities are not immune from the effects of the growing fentanyl addiction crisis in our country, and as a result, the District of Kansas prosecutes a growing number of cases against health care providers accused of stealing medication intended to go to patients,” said Kate E. Brubacher,
U.S. Attorney. “The Justice Department believes stopping these abuses is paramount to guarding the public trust: people must have confidence in the integrity of their health care.”
The Drug Enforcement Administration (DEA) investigated the case.
Assistant U.S. Attorneys Faiza Alhambra and Trent Krug prosecuted the case.
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Former Financial Advisor and Tax Preparer Sentenced to 21 Months in Prison for Mulitiple Counts of Preparing False Tax ReturnRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 21 months in prison, one year of supervised release, and fined $12,000, for preparing a false tax return. Terrence LeGall, 69, of Linden, New Jersey, pleaded guilty on Nov. 2, 2022, before U.S. District Court Judge John M. Vazquez in Newark federal court to a superseding indictment charging him with 12 counts of aiding and abetting the preparation of a false tax return.
Former Celina Physician Found Guilty of Health Care Fraud, Violations of the Controlled Substances Act, and Obstruction of JusticeRead the Press Release
NASHVILLE – A former Clay County, Tennessee physician was found guilty yesterday of 45 counts of violations relating to the Controlled Substances Act (CSA), health care fraud, and obstruction of justice, announced acting U.S. Attorney Thomas J. Jaworski.
A federal jury began deliberating Friday and returned the verdict yesterday against Gilbert Ross Ghearing 69, of Crossville, Tennessee, following a five-week trial in U.S. District Court. The jury found Ghearing guilty of 21 counts of health care fraud, 22 counts of prescribing controlled substances without legitimate medical purpose outside the usual course of professional practice, and two counts of obstruction of justice. The jury acquitted Ghearing of 18 counts of health care fraud and CSA violations.
“Doctors serve as the gatekeepers to our healthcare system and the system bestows a great deal of trust in physicians to make it work,” said Acting U.S. Attorney Jaworski. “I commend our law enforcement partners and our trial team for their unparalleled dedication and commitment to ensure that justice was served in a long and protracted investigation and prosecution.”
According to the evidence presented at trial, Gilbert Ghearing, owned and operated a medical clinic in Celina, Tenn., located in direct proximity to four pharmacies. He also provided medical services at another location in Fentress County, Tenn. Between 2016 and 2019, Ghearing repeatedly violated the CSA by prescribing Schedule II and Schedule IV drugs, including benzodiazepines and opioids, outside the usual course of professional practice without legitimate medical purposes to people suffering from active substance use disorders, who abused the substances in combination with illicit drugs and alcohol, repeatedly overdosed, and were hospitalized. The majority of Ghearing’s patients had Medicare or TennCare insurance, Tennessee’s Medicaid program. Ghearing caused pharmacies to submit fraudulent claims to these insurance programs for controlled substance prescriptions written by him that were not medically necessary.
After Ghearing was indicted in June 2019, he altered the medical records of the patients identified in the indictment. A superseding indictment in October 2022 charged Ghearing with obstruction of justice based on the alterations.
Ghearing faces a maximum penalty of 20 years in prison on the CSA convictions, 20 years on the obstruction of justice, and 10 years on health care fraud convictions. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the Drug Enforcement Administration; the U.S. Department of Health & Human Services-Office of Inspector General; and the Tennessee Bureau of Investigation. The DOJ Fraud Section Appalachian Regional Prescription Opioid (ARPO) Strike Force provided valuable investigative resource assistance. Assistant U.S. Attorneys Sarah K. Bogni, Juliet Aldridge, and Amanda J. Klopf prosecuted the case.
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Five Arrested in San Antonio for Alleged Drug Trafficking Organization InvolvementRead the Press Release
SAN ANTONIO – Five San Antonio men were arrested in San Antonio today on criminal charges related to their alleged roles in a drug trafficking organization.
According to court documents, Cesar Martinez aka Viejito, 66; Bruce Charles Morales, 51; Kelvin Sauls, 41; Juan Alberto Coronado aka Cacheton, 49; and Julio Rodriguez III, 39, were named in a six-count indictment issued by a grand jury earlier this month.
Martinez is charged with all six counts in the indictment, to include conspiracy to possess with intent to distribute cocaine; conspiracy to possess with intent to distribute methamphetamine; conspiracy to commit money laundering; possession with intent to distribute methamphetamine; and two separate counts of possession with intent to distribute cocaine. If convicted, Martinez faces punishments of at least 15 years in prison up to life imprisonment.
Morales is charged with one count of conspiracy to possess with intent to distribute cocaine, one count of conspiracy to commit money laundering, and one count of possession with intent to distribute cocaine. If convicted, Morales faces punishments of at least 10 years in prison up to life imprisonment.
Sauls is charged with five counts, to include conspiracy to possess with intent to distribute cocaine; conspiracy to possess with intent to distribute methamphetamine; conspiracy to commit money laundering; possession with intent to distribute methamphetamine; and one count of possession with intent to distribute cocaine. If convicted, Sauls faces punishments of at least 10 years in prison up to life imprisonment.
Coronado is charged with conspiracy to possess with intent to distribute more than 500 grams of cocaine and conspiracy to commit money laundering. If convicted, he faces punishment of at least five years up to 60 years in prison.
Rodriguez is charged with conspiracy to possess with intent to distribute detectable quantities of cocaine and conspiracy to commit money laundering. If convicted, he faces punishment up to 40 years in prison.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza for the Western District of Texas and Special Agent in Charge Daniel Comeaux for the Drug Enforcement Administration’s Houston Field Office made the announcement.
The DEA is investigating the case.
Assistant U.S. Attorney Brian Nowinski is prosecuting the case.
This operation 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.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Fentanyl-Related Overdose Death Leads to 20-Year Sentence for Drug DealerRead the Press Release
CHARLOTTESVILLE, Va. – A South Hill, Virginia man, who continued dealing heroin, methamphetamine, and fentanyl from a regional jail, was sentenced this week to 20 years in federal prison.
Michael Watkins Hayer, 41, waived his right to be indicted and pleaded guilty in October 2022 to a two-count Information charging him with distribution of fentanyl resulting in death and possession of a firearm by a convicted felon.
According to court documents, Hayer began selling fentanyl, heroin, and methamphetamine throughout Greene and Albemarle counties in 2019, as well as routinely traveling to North Carolina to purchase drugs by the “brick” for resale in Virginia. Hayer used the term “brick” to refer to a package of 50 individual doses of fentanyl.
After a customer overdosed in front of him, Hayer began carrying Narcan, an opioid overdose treatment, when he sold drugs.
On February 18, 2022, Hayer sold a half-brick of fentanyl to an individual who ingested the drug and later died of an overdose. Although he left Greene County to avoid suspicion after this death occurred, Hayer was stopped by the Virginia State Police while speeding in Greene County in April 2022. During the traffic stop, Virginia State Police searched Hayer’s vehicle where they discovered 95 grams of methamphetamine, 50 grams of fentanyl, three firearms, and multiple rounds of ammunition. Hayer is prohibited from possessing a firearm due to a previous felony conviction.
While incarcerated at the Central Virginia Regional Jail from April 2022 through June 2022, Hayer continued to sell drugs by recruiting both a male relative as well as an ex-girlfriend and instructing them in how to engage in drug trafficking.
Specifically, Hayer told them where to go in North Carolina to meet his drug suppliers, as well as where and who to sell drugs to in Greene County.
In addition, Hayer warned both individuals of the dangerous nature of fentanyl by telling them to not touch the drug without wearing gloves and to never use fentanyl themselves.
United States Attorney Christopher R. Kavanaugh and Stanley M. Meador, Special Agent in Charge of the FBI Richmond Division made the announcement today.
The Greene County Sheriff’s Office and the Federal Bureau of Investigation investigated the case with assistance from the Virginia State Police.
Assistant U.S. Attorneys Melanie Smith and Sean Welsh prosecuted the case.
Fentanyl Trafficking Kingpin Sentenced to 22 Years in Federal Prison for Overseeing a Sprawling Drug and Money Laundering ConspiracyRead the Press Release
DETROIT – A previously convicted drug trafficker was sentenced to 22 years in federal prison for leading a drug organization with international ties that trafficked fentanyl, heroin, and cocaine across the country, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Orville O. Greene, Special Agent in Charge of Drug Enforcement Administration, Detroit Division, and Charles E. Miller, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigations, Detroit Division.
Maurice Montain McCoy, Jr., 41, of Moreno Valley, California, led a drug and money laundering conspiracy that had distribution hubs in multiple cities across the United States, including Novi, Michigan. The DEA seized more than 30 kilograms of fentanyl and over half a million dollars in cash from the organization’s stash house in Novi. At the time, the DEA’s seizure was the largest fentanyl seizure in Michigan and one of the largest in the United States. The seizure was the result of creative investigative work by federal agents. They traced a UPC code off a Sony PlayStation box that was used to deliver heroin to a drug customer. That UPC code led to the Novi condominium where the PlayStation was active. Agents identified couriers who crisscrossed the United States delivering kilograms, transporting bulk currency, or laundering money, leading to multiple arrests and additional seizures in Indianapolis, Indiana, and Baltimore, Maryland, where the organization also operated. All identified couriers and large-scale drug customers who were indicted have pleaded guilty. McCoy directed the organization’s activity and lived lavishly off the proceeds, purchasing a Porsche Panamera, expensive jewelry, including diamond and gold pendants for some members of his drug organization, and a half million-dollar home in the greater Los Angeles area.
McCoy, who previously served ten years in federal prison for a drug conviction in California, faced a mandatory minimum sentence of 15 years in prison with a maximum possible sentence of life in prison. McCoy was sentenced by United States District Judge Terrence G. Berg.
“Fentanyl is now the leading cause of overdose deaths. The number of lives saved by this seizure is inestimable. Our office will hold drug traffickers accountable for exposing our community to dangerous drugs,” stated United States Attorney Dawn Ison.
“The sentencing of Mr. McCoy should serve as a reminder to those who choose to traffic poison in our communities, that they will be held accountable,” stated Orville O. Greene, Special Agent in Charge of Drug Enforcement Administration, Detroit Division. “Mr. McCoy, having served a prior term in federal prison, was well aware of the potential consequences of his actions. The DEA will continue to work with our federal, state and local partners to target the sources of supply and their drug trafficking networks throughout the state of Michigan and elsewhere.”
“The role of IRS Criminal Investigation in narcotics investigations is to follow the money so we can financially disrupt and dismantle international drug trafficking organizations,” said Charles Miller, IRS Criminal Investigation, Acting Special Agent in Charge, Detroit Field Office. “We are proud to work hand-in-hand with our law enforcement partners to bring these criminals to justice.”
The case was investigated by agents of Drug Enforcement Administration and Internal Revenue Service as part of the Organized Crime Drug Enforcement (OCDETF) Southeast Regional Strike Force. Assistant United States Attorneys Andrea Hutting, Craig Wininger, and Gjon Juncaj prosecuted the case for the United States.
Felon who Fired Rounds in Residential Neighborhood Sentenced to over Nine Years in Federal PrisonRead the Press Release
A man who fired a .40 caliber semiautomatic handgun in a residential neighborhood in the middle of the day was sentenced today to more than 9 years in federal prison.
Deshaun Jackson, age 24, from Waterloo, Iowa, received the prison term after an October 13, 2022 guilty plea to being a felon in possession of a firearm.
At the guilty plea, Jackson admitted he possessed an Intratech Tech .22 semi-automatic handgun and a Smith and Wesson .40 caliber semi-automatic handgun while he was prohibited due to being previously convicted of burglary and robbery in Black Hawk County. Jackson also possessed a 110 round drum-style magazine. At sentencing, the Judge stated Jackson created a “firefight in a residential neighborhood,” and that his conduct was “extremely dangerous and unjustified in any sense.” The Judge further stated that Jackson did not have any business possessing a 110 round drum magazine.
Jackson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Jackson was sentenced to 114 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
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.
Jackson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Liz Dupuich and investigated by the Waterloo Police Department and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-2045.
Follow us on Twitter @USAO_NDIA.
Federal Jury Finds Convicted Felon Guilty of Illegally Possessing a Gun and Distributing MethamphetamineRead the Press Release
OXFORD, MS – A federal jury convicted a Greenville, Mississippi man on Tuesday of illegally possessing a firearm after having been convicted of a felony and four counts of distributing methamphetamine.
According to court documents and evidence presented at a two-day trial, Clarence Lamar Buck, 51, distributed methamphetamine on four separate occasions out of the Express Inn in Greenville in January of 2021. Approximately a year later, the United States Marshals Service, along with the Greenville Police Department, served an arrest warrant on Buck for bond violations. During a search of Buck’s room, officers found a Ruger .22 caliber handgun. Records reflect that at the time Buck possessed the gun, he had multiple prior felony convictions, including a conviction for sale of a controlled substance.
“The defendant is a repeat felon who injected poison into his community in the form of methamphetamine,” stated U.S. Attorney Clay Joyner. “The Greenville Police Department and the U.S. Marshals Service are to be commended for their hard work on this case, and we are proud to stand with them to stem the flow of illegal narcotics and to get firearms out of the hands of criminals.”
“Making sure that those who break the law are apprehended, and convicted, is our priority,” remarked Greenville Police Chief Marcus Turner. “We appreciate the partnership that we have with the U.S. Attorney’s Office and look forward to working together to ensure the safety of our community.”
The Greenville Police Department investigated the case, with assistance from the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorneys Julie Addison and Sam Stringfellow.
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.
Fall River Woman Sentenced to 25 Years in Prison for Sexually Exploiting ChildrenRead the Press Release
BOSTON – A Fall River woman was sentenced today in federal court in Boston for sexually exploiting children she babysat on multiple occasions.
Nichole Cyr, 27, was sentenced by U.S. District Court Judge Leo T. Sorokin to 25 years in prison and five years of supervised release. In September 2022, Cyr pleaded guilty to two counts of sexual exploitation of children.
“The crimes committed by Ms. Cyr are unconscionable and every parent’s nightmare. While a trusted babysitter, she sexually exploited two defenseless children who were two and seven years old at the time. Specifically, she sexually abused the toddler on multiple occasions, documented it, and distributed that documentation. Today’s sentence ensures that this dangerous predator is exactly where she belongs – removed from our community and behind bars,” said United States Attorney Rachael S. Rollins. “Our children are among the most vulnerable, precious members of our communities. As the chief federal law enforcement officer in Massachusetts, ensuring their safety and wellbeing will always be my top priority. We will spare no expense or resource to keep our children safe from dangers like Ms. Cyr.”
“Nicole Cyr was trusted to care for a child and betrayed that trust in the most egregious manner. The sexual abuse and exploitation of a child has long-term and far-reaching impacts on the life of the child and their family. We at Homeland Security Investigations hope that this sentencing offers some peace and a measure of justice as they move forward,” said Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England.
In July 2020, Cyr was arrested for child exploitation offenses after child sexual abuse material (CSAM), including images and videos, were located on her cell phones. Forensic analysis of Cyr’s phones revealed CSAM involving a two-year-old victim and a seven-year-old victim, including videos and photographs that showed Cyr sexually abusing the two-year-old victim on various dates. Forensic analysis also revealed that Cyr had shared the CSAM with another individual. Subsequent investigation determined that the Cyr produced the CSAM of the two minor victims, who she had babysat on multiple occasions.
U.S. Attorney Rollins, HSI Acting SAC Krol, Bristol County District Attorney Thomas M. Quinn III, Fall River Police Chief Paul Gauvin and New Bedford Police Chief Paul Oliveira made the announcement today. Assistant U.S. Attorney Anne Paruti, Chief of Rollins’ Major Crimes Unit prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Essex County Woman Admits Role in $25 Million Securities Fraud Scheme Involving Blockchain Technology CompanyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, woman today admitted her role in fraudulently inducing victims to invest over $25 million in cash and cryptocurrency, U.S. Attorney Philip R. Sellinger announced.
Edith Pardo, 70, of Bloomfield, New Jersey, pleaded guilty before U.S. District Judge Stanley R. Chesler, to an indictment charging her with one count of conspiring to commit wire fraud, three counts of wire fraud, and one count of securities fraud in connection with a blockchain technology company.
According to documents filed in this case and statements made in court:
Through CG Blockchain Inc. and BCT Inc., Pardo and her co-defendant, Boaz Manor, touted a product called ComplianceGuard, which purportedly provided hedge funds with a blockchain-based auditing tool. Before starting these entities, Manor was convicted and served a prison sentence in Canada for crimes stemming from his previous role as a hedge fund manager. While raising money for these new entities, Pardo helped Manor – who changed his appearance and used aliases – hide his true identity and criminal past from investors.
Pardo acted as the face of the entities and, with Manor, told prospective investors that Pardo was independently wealthy and provided millions of dollars in seed money, when in fact, she was neither wealthy nor an investor. Pardo and Manor also falsely claimed that: Pardo was the sole owner of the entities; “Shaun MacDonald” (one of Manor’s aliases) was merely a consultant; a team of well-credentialed executives ran the entities; and multiple hedge funds were paying millions of dollars in fees to use ComplianceGuard. In reality, the entities had no real executives, collected no fees, and ComplianceGuard was barely distributed or used.
In 2017, Pardo and Manor relied on many of the same misrepresentations to raise over $25 million through an initial coin offering, or ICO, for a new product called Blockchain Terminal that purportedly allowed hedge funds and financial institutions to trade and manage cryptocurrency. But after investors began to learn about Manor’s true identity and criminal past, Manor admitted to hiding this information to avoid destroying his new companies.
Manor is currently a fugitive.
The conspiracy and wire fraud counts in the indictment carry a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The securities fraud count carries a potential penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for Aug. 1, 2023.
U.S. Attorney Philip R. 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 plea.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment pertaining to Manor are merely accusations, and he is presumed innocent unless and until proven guilty.
pardo.indictment.pdfErie, PA Man Pleads Guilty to Child Pornography Charge After Having Sex with 15 Y/ORead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Tristan Pearson, 26, Erie, PA, pleaded guilty to possession of child pornography before U.S. Magistrate Judge Michael J. Roemer. The charge carries a maximum penalty of 10 years in prison and a $250,000.
Assistant U.S. Attorneys Jonathan P. Cantil and Raymond J. Fadel, who are handling the case, stated that between January and May 2018, Pearson knowingly engaged in a sexual relationship with a 15-year-old female (Victim) in the Western District of New York. On two separate occasions, Pearson filmed himself having sexual relations with the Victim using his cellular telephone. Pearson then distributed those videos to others via text message.
The plea is the result of an investigation by the Federal Bureau of Investigation Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia.
Sentencing will be scheduled at a later date.
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Eagle River Man Sentenced for Receipt of Child PornographyRead the Press Release
ANCHORAGE – An Eagle River man was sentenced to a high-end guideline sentence of 78 months imprisonment followed by lifetime supervised release by Judge Timothy M. Burgess on Tuesday, March 28. John Daniel Brooks had previously pleaded guilty to one count of Distribution and Receipt of Child Pornography.
In September of 2021, the State of Alaska contacted the Federal Bureau of Investigation in Anchorage to report that a state employee was suspected of possessing images depicting child sexual exploitation. Two days later, the FBI conducted a search warrant at Brooks’ residence, where he worked for the state of Alaska remotely as an analyst programmer.
The FBI discovered that Brooks had installed an internal hard drive in his State of Alaska computer that was found to contain over 1.2 million images of suspected child exploitation. Those images included depictions of infants and toddlers being tortured and sexually assaulted by adults. All told, Brooks’ collection of child exploitation materials was one of the largest encountered to date by the FBI in Alaska.
“Large scale consumers of child sexual abuse materials like Mr. Brooks directly contribute to the exploitation of children worldwide,” said U.S. Attorney S. Lane Tucker, District of Alaska. “The sentence imposed by the court reflects the seriousness of this type of abhorrent behavior and we will continue to prosecute these cases to the fullest extent of the law. Thanks to the hard work of the FBI and APD, in coordination with our State partners, Mr. Brooks has been brought to justice.”
“Our investigation revealed Mr. Brooks acquired and possessed one of the largest collections of child sexual abuse materials found in Alaska,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “Possession of this material is not a victimless crime, and the FBI will use every legal authority we have to root out predators to protect children from these unconscionable offenses.”
The United States Attorney’s Office thanks the State of Alaska. The FBI Anchorage Field Office and the Anchorage Police Department investigated this case as part of the FBI’s Crimes Against Children and Human Trafficking Task Force.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Assistant U.S. Attorney Adam Alexander is prosecuting the case.
Eagle Butte Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced an Eagle Butte, South Dakota, man convicted of Failure to Register as a Sex Offender. The sentencing took place on March 29, 2023.
Daniel Red Horse, Jr. age 52, was sentenced to 33 months in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Red Horse was indicted for Failure to Register as a Sex Offender by a federal grand jury in August of 2022. He pleaded guilty on December 28, 2022.
Red Horse has two prior federal sex offense convictions. As a result, Red Horse is required to register as a sex offender under the Sex Offender Registration and Notification Act. Between May 2, 2022, and June 3, 2022, Red Horse did knowingly fail to register and update his registration. This is his eighth conviction for failing to register.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
Red Horse was immediately remanded to the custody of the U.S. Marshals Service.
District’s First Fentanyl Conspiracy Case Ends in 85 Months Sentence of St. Thomas ManRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Elijah Hakim, 35, of St. Thomas, was sentenced to 85 months of imprisonment in the District’s first prosecution of fentanyl possession. Fentanyl is a synthetic opioid that is 50 times more potent than heroin. Just two milligrams of fentanyl, or the amount that could fit on the tip of a pencil, is considered a potentially lethal dose.
According to court documents and evidence presented at trial, from April 2021 to May 2021, Hakim mailed two packages containing fentanyl from Georgia to St. Thomas. The first package, mailed on April 22, 2021, contained 150 fentanyl pills weighing approximately 17.5 grams which were concealed in a vitamin bottle. The package was filled with spray foam and mailed from an Atlanta, GA, post office to St. Thomas. The second package, mailed on May 18, 2021, contained 200 fentanyl pills weighing approximately 25 grams which were concealed inside a Gucci gift box. Like the first package, the second package was filled with spray foam to further conceal the pills and mailed from an Atlanta, GA, post office. Both packages were seized by U.S. Customs and Border Protections officers in San Juan, PR and St. Thomas. Court documents further revealed that during this period, a victim on St. Thomas overdosed from consuming pills suspected of containing fentanyl.
At trial, the United States introduced fingerprints found on the May package which matched Hakim’s fingerprints. Also admitted at trial was packaging material found in Hakim’s Atlanta apartment, including a spray foam cannister, bubble wrap, vacuum sealed bags and fiber tape consistent with the packaging used to conceal the fentanyl in the April and May packages. At sentencing, the Judge Robert A. Molloy noted that the comprehensive investigation and evidence admitted a trial were more than sufficient for a jury to find Hakim guilty beyond a reasonable doubt. During his allocution, Hakim stated that he did not believe that he could be found guilty by just fingerprints. Judge Molloy responded, however, that it was not just the fingerprints, but all of the other evidence pointing to Hakim as the culprit; the fingerprints simply sealed the deal.
“Across the United States, opioids, primarily fentanyl, killed over 80,000 people in 2021 alone,” stated United States Attorney Delia Smith. “Here in the Virgin Islands, we have thus far been spared the worst of the opioid epidemic, but the two shipments of fentanyl involved in this case show that we are not immune. Fortunately, the vigilance and dedication of our law enforcement partners led to the interception of these deadly drugs, and we were able to convict those responsible. We will continue to do everything in our power to keep the Virgin Islands safe from this lethal scourge.”
“The defendant’s lawless misuse of the U.S. Mail has finally come to a halt,” said Juan A. Vargas, Acting Inspector in Charge of the Miami Division. “Postal Inspectors will continue to work collaboratively with our law enforcement partners to combine our resources and expertise to combat the perils of illegal and dangerous drug distribution.”
“Our extraordinary enforcement partnerships allow us to work in unison and combat drug trafficking and the violence this brings,” said DEA Special Agent in Charge Denise Foster. “It’s the DEA’s mission to dismantle and destroy drug trafficking organizations no matter where they originate. We will continue to work diligently with our Federal, state, and local counterparts and to bring to justice those who seek to poison our communities.”
The investigation was conducted by the United States Postal Inspection Service, the Drug Enforcement Administration, U.S. Customs and Border Protection and Homeland Security Investigations, and the case was prosecuted by Assistant United States Attorneys Kyle Payne and Meredith Edwards. This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Covenant Healthcare System and Physicians Pay over $69 Million to Resolve False Claims Act Allegations Related to Improper Financial RelationshipsRead the Press Release
DETROIT – A regional hospital system and two physicians have paid over $69 million in three related civil settlements to resolve possible False Claims Act violations, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Special Agent in Charge Mario M. Pinto of the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Chicago Regional Office, Special Agent in Charge Scott Pierce, United States Postal Service Office of Inspector General, Central Area Field Office and Special Agent in Charge Patrick J. Hegarty, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Northeast Field Office.
Covenant Healthcare System, a regional hospital system based in the Saginaw, Michigan area, paid $69 million to resolve allegations under the False Claims Act of improper financial relationships with eight referring physicians and a physician-owned investment group, resulting in the submission of false claims to the Medicare, Medicaid, TRICARE, and FECA programs. Two of these physicians, neurosurgeon Dr. Mark Adams and electrophysiologist Dr. Asim Yunus will pay the United States $406,551.15 and $345,987.54, respectively, to resolve allegations related to their relationships with Covenant.
The Anti-Kickback Statute (“AKS”) prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally-funded programs. The Physician Self-Referral Law, commonly known as the Stark Law, prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has an improper financial arrangement, including the payment of compensation that exceeds the fair market value of the services actually provided by the physician and the provision of free or below-market rent. Both the Anti-Kickback Statute and the Stark Law are intended to ensure that physicians’ medical judgments are not compromised by improper financial incentives and instead are based on the best interests of their patients.
The settlement with Covenant resolves the following allegations:
- At various points between 2006 to 2016, Covenant had contracts with Asim Yunus, M.D., Kimiko Sugimoto, M.D., Sujal Patel, M.D., Sussan Bays, M.D., Guy Boike, M.D., and Thomas Damuth, M.D. to serve as medical directors, and none of these arrangements satisfied any exceptions to the Stark Law or the AKS, such that referrals these physicians made to Covenant violated the False Claims Act.
- From June 1, 2006, to December 14, 2009, Covenant employed Mark Adams, M.D., and this financial relationship did not satisfy any exception to the Stark Law, such that referrals for designated healthcare services by Adams to Covenant were prohibited and violated the False Claims Act.
- From January 21, 2009, through July 31, 2013, Covenant rented office space to Ernie Balcueva, M.D. Covenant forgave Balcueva’s rent payments, constituting remuneration that Covenant paid in exchange for referrals from Balcueva in violation of the AKS and the False Claims Act, and creating a financial relationship that did not meet any exception to the Stark Law, also violating the False Claims Act.
- Covenant permitted Covenant Physician Investment Group (“CPIG”), a group owned by Covenant-employed physicians for the purpose of purchasing large medical equipment that CPIG would lease to Covenant, to secure an equipment lease through non-arm’s-length negotiations, in order to induce referrals of patients from these physicians, in violation of the AKS and the False Claims Act.
As a result of this settlement, which was finalized in 2021, Covenant paid the United States $67,191,436.39 and the State of Michigan $1,808,563.61. This settlement remained under seal while the United States continued its investigation into Adams and Yunus, which led to the settlements with Adams and Yunus. Consistent with the terms of their respective settlement agreements with the United States, Adams paid the United States $406,551.15, and Yunus will pay the United States $345,987.54.
“Improper financial relationships and kickbacks undermine the integrity of federally-funded healthcare programs by influencing physician decision making,” said U.S. Attorney Ison. “This outcome emphasizes our Office’s commitment to pursuing justice against parties on both sides of those relationships—the hospital seeking to influence the physician via certain compensation schemes and the physician accepting the compensation.” U.S. Attorney Ison added, “I would like to commend the new leadership at Covenant for making things right once its past wrongdoing was brought to its attention by federal investigators.”
“Financial relationships that are based solely on monetary gain undermine the trust that we place in our nation’s medical providers and can result in costly reductions to our Federal health care programs,” said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services Office of Inspector General. “We will continue to work together with our law enforcement partners to ensure the appropriate use of taxpayer dollars.
“These settlements send a clear message to healthcare providers that the government is vigilantly protecting federal benefit programs,” said Special Agent in Charge Scott Pierce of United States Postal Service Office of Inspector General, Central Area Field Office. “The USPS OIG appreciates our law enforcement partners for their commitment and efforts in this investigation. The USPS OIG will continue to vigorously investigate those who engage in activities that harm federal benefit programs and the U.S. Postal Service.”
"Protecting TRICARE, the healthcare system for military members and their dependents, is a top priority for the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General," stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. "The settlements announced today demonstrate our ongoing commitment to work with the Department of Justice and our law enforcement partners to investigate allegations of improper financial relationships that place unnecessary financial pressure on the TRICARE system."
The civil settlements resolve the claims brought by Stacy Goldsholl, M.D., under the qui tam or whistleblower provisions of the False Claims Act. Under these provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Goldsholl v. Covenant Healthcare System, et al., No. 12-15422 (E.D. Mich.). The whistleblower will receive a combined $12,384,927.36 from the three settlements. The claims resolved by the settlements are allegations only; there has been no determination or admission of liability.
The matter was investigated by Assistant U.S. Attorney Jonny Zajac of the U.S. Attorney’s Office for the Eastern District of Michigan, with assistance from HHS-OIG, the Defense Criminal Investigative Service, and the United States Postal Service-OIG.
Coordinator and Money Middleman Indicted for Conspiracy to Transport and Harbor Undocumented Non-CitizensRead the Press Release
TUCSON, Ariz. – A federal grand jury returned an indictment last week against Juan Manuel Soto-Guzman, 41, of Mexico, and Adulfo Soto-Guzman, 45, of Mexico, for conspiracy to transport and harbor illegal aliens for profit.
The complaint alleges, in part, that an investigation identified Juan Manuel Soto-Guzman, as a person involved in a conspiracy to transport undocumented non-citizens (UNCs) for profit. J. Soto-Guzman was identified as a UNC smuggling coordinator, responsible for coordinating the transportation and harboring of UNCs and housing them in Phoenix, Arizona, before coordinating their transportation to their final destinations within the United States.
Adulfo Soto-Guzman also was identified as a member of the conspiracy. The complaint alleges that he was responsible for delivering money to other co-conspirators to pay load drivers and finance human smuggling activities within this organization. Many of the UNCs had crossed the border from Mexico, and were transported through Southern Arizona to stash houses in Phoenix, Arizona, as they waited for further transportation within the United States.
During the course of the investigation, agents seized over 20 notebooks containing ledgers detailing human smuggling, cash payments due, and cellphones previously identified as being used by this organization.
A conviction for conspiracy to transport and harbor illegal aliens carries a maximum penalty of 10 years in prison, a $250,000 fine, or both.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
This prosecution resulted from the coordinated efforts of Joint Task Force Alpha (JTFA). The U.S. Attorney’s Office for the District of Arizona is part of 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. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime.
The investigation in this case was conducted by Homeland Security Investigations (HSI)–Douglas Office, with the assistance of HSI-Phoenix, Enforcement and Removal Operations-Phoenix and United States Border Patrol-Sonoita. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR 23-0386-TUC-RM
RELEASE NUMBER: 2023- 045_Soto-Guzman# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Connecticut Man Sentenced to 16 Years in Prison for Role in Murder for HireRead the Press Release
NEWARK, N.J. – A Connecticut man was sentenced today to 192 months in prison for his role in a murder for hire scheme in which a New Jersey-based political consultant paid him and another man to kill a longtime associate, U.S. Attorney Philip R. Sellinger announced.
George Bratsenis, 74, of Monroe, Connecticut, previously pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit murder for hire. Bratsenis’ conspirators, Sean Caddle and Bomani Africa, previously pleaded guilty to their roles in the murder scheme. Africa was sentenced on Feb. 23, 2023, to 20 years in prison. Caddle is scheduled to be sentenced on June 29, 2023.
According to documents filed in this case and statements made in court:
In April of 2014, Caddle solicited Bratsenis to commit a murder on Caddle’s behalf in exchange for thousands of dollars. Bratsenis recruited Africa, a longtime accomplice from Philadelphia, to join the plot. After Bratsenis confirmed his and Africa’s interest in the job, Caddle told Bratsenis that the target was a longtime associate who had worked for Caddle on various political campaigns.
On May 22, 2014, Bratsenis and Africa traveled from out of state to the victim’s apartment in Jersey City. After entering the apartment, Bratsenis and Africa stabbed the victim to death and then set fire to the victim’s apartment. After Caddle learned that the victim had been murdered, the following day, he met Bratsenis in the parking lot of a diner in Elizabeth, New Jersey. Caddle paid Bratsenis thousands of dollars in exchange for the murder, and Bratsenis shared a portion of those proceeds with Africa.
In addition to the prison term, Judge Vazquez sentenced Bratsenis to five years of supervised release.
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 sentencing. He also thanked the Hudson County Prosecutor’s Office for its assistance.
The government is represented by Executive Assistant U.S. Attorney Lee M. Cortes Jr. and Assistant U.S. Attorney Sean Farrell, Chief of the U.S. Attorney’s Office Cybercrime Unit.
Clay County Man Indicted for Fraud Scheme Using Stolen Identities to Obtain Paycheck Protection Program Loans, Filing A False Tax Return, and Stolen PropertyRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Christopher Leo Daragjati (33, Middleburg) with seven counts of wire fraud, ten counts of aggravated identity theft, one count of theft of government property over $1,000, and two counts of false representation of a Social Security number (SSN). If convicted, Daragjati faces up to 20 years in federal prison on each wire fraud count, a consecutive minimum mandatory penalty of 2 years’ imprisonment for each aggravated identity theft count, up to 5 years on each false SSN representation count, up to 10 years in prison on the charge of theft of government property, and payment of restitution to the victims he defrauded. Daragjati appeared in federal court yesterday. The court ordered him temporarily detained and set a detention hearing for April 3, 2023. No trial date has been set.
According to the indictment, Daragjati obtained the personal identifiable information (PII), including the SSNs of multiple victims. Using the victims’ PII, Daragjati went to the Lake County Tax Collector and the Orange County Tax Collector and obtained Florida Identification cards in the identity of two victims. Using the two Florida Identification cards, he then applied for three different Paycheck Protection Program (PPP) loans in the identity of the two victims. When applying for the three PPP loans Daragjati allegedly submitted numerous fraudulent tax related documents and repeatedly made false statements when completing the Small Business Administration loan application for each of the loans. In reliance on this false information, lenders approved the loan applications and Daragjati received approximately $150,000 in PPP loan proceeds for the three approved loans. As part of the scheme, he also set up bank accounts in the identities of the victims in order to receive the PPP loan proceeds.
In another fraud scheme Daragjati opened four commercial lines of credit with Sunbelt Rentals, using the PII of four victims. After being approved for the lines of commercial credit under the victims’ identities, he rented thousands of dollars of equipment. Rather than return the rented equipment, Daragjati pawned some of the items using the identities of various victims or otherwise disposed of the stolen equipment. In at least one incident, this resulted in a felony arrest warrant being issued and entered into the National Crime Information Center for a victim of identity theft.
In another scheme, in January 2022, Daragjati filed a false tax return, using the identity of a victim. In reliance on the false documents and use of the stolen identity by Daragjati, the Internal Revenue Service (IRS) approved a tax refund in which he received a tax refund of more than $1,000 in under the assumed victim’s identity. Daragjati arranged to have the fraudulently obtained tax refund deposited directly into a bank account that was in the name of the victim but controlled by Daragjati.
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 Homeland Security Investigations (HSI), the Internal Revenue Service – Criminal Investigation, and the Clay County Sheriff’s Office, with assistance from the Florida Department of Law Enforcement, the Florida Highway Patrol – Bureau of Criminal Investigations and Intelligence, the Jacksonville Sheriff’s Office, and the United States Secret Service - Jacksonville Field Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Download IndictmentCivil Forfeiture Complaint Filed Against World War I-Era Documents Stolen from an American UniversityRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the filing of a civil complaint seeking forfeiture of various World War I-era documents, letters, and photographs relating to Russian military personnel, including the diary of a Russian general, for the purpose of returning the antiquities to the American university from which they were stolen.
U.S. Attorney Damian Williams said: “Antiquities allow us to see and study pieces of history from, in this case, more than one hundred years ago. The University’s important historical research was undercut by the alleged theft and illegal smuggling of these antiquities abroad. Thanks to the hard work and dedication of the FBI’s Art Crime Team, these records have been recovered and will be returned to their rightful owner.”
According to the allegations in the Complaint filed in Manhattan federal court today:[1]
The United States seeks the forfeiture of documentary materials, relating primarily to the 1917 Russian Revolution and World War I Russian military personnel, that were stolen from a university located in New York, New York (the “University”). The stolen materials included the 1919 diary of General Nikolai Iudenitch, a commander of the Russian Imperial Army during World War I, along with other documents, correspondence, and photographs that had been sent to an auction house located in Paris, France, (the “Auction House”) for inclusion in an April 2018 auction of Russian documents and books. The Auction House was not provided with any certificate of authenticity or proof as to the provenance of the materials. After a curator employed by the University recognized the items in a catalog published by the Auction House, the stolen materials were seized by law enforcement.
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Mr. Williams praised the investigative work of the Federal Bureau of Investigation/New York City Police Department Joint Major Theft Task Force/Art Crime Team. In addition, Mr. Williams thanked authorities in France for their assistance.
This matter is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Emily Deininger and Benet Kearney are in charge of the case.
The allegations contained in the Complaint are merely accusations.
[1] As the introductory phrase signifies, the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Cedar Rapids Woman Sentenced for Harboring EscapeeRead the Press Release
A Cedar Rapids woman who harbored and concealed a felon who had escaped from a local halfway house was sentenced on March 28, 2023, to approximately 5 months in custody. Rachel Louise Monthie, formerly known as Rachel Louise Chronister, age 45, from Cedar Rapids, Iowa, received the term of incarceration after a February 3, 2023 guilty plea to one count of harboring and concealing an escapee, Ricky Joe Vaughn.
In Monthie’s plea agreement, as well as at prior hearings in the Monthie and Vaughn cases, the evidence showed that Vaughn was sentenced in June 2015 to serve 96 months in federal prison for possessing firearms and ammunition illegally. Vaughn has an extensive criminal history extending back to 2001. In addition to his prior federal firearms conviction, Vaughn’s criminal history in state court includes felony convictions for theft and conspiracy to manufacture methamphetamine.
Vaughn was scheduled to be released from a federal prison in Michigan in February 2022. In December 2021, however, the United States Bureau of Prisons permitted Vaughn to reside in a Cedar Rapids halfway house with work release privileges. On January 10, 2022, Monthie drove to Vaughn’s workplace. In Monthie’s presence, Vaughn cut off his ankle monitor and threw it into a nearby ditch. Monthie drove Vaughn to a Cedar Falls hotel, where she provided food and lodging for three nights.
On January 13, 2022, Monthie drove Vaughn to her apartment in Marion, Iowa. Monthie allowed Vaughn to use her shower and placed a loaded, chambered firearm on an ottoman next to the front door. Monthie conducted countersurveillance against law enforcement, going in and out of the apartment on the false pretense that she was taking things from her vehicle. Deputies of the United States Marshals Service (USMS) approached the apartment and knocked twice but received no response. Eventually, Monthie allowed the deputies inside the apartment and told them about the firearm. Vaughn was arrested without incident.
Monthie has a misdemeanor criminal history, including three drunk driving offenses, that extends over two decades. Before the sentencing hearing, Monthie’s pretrial release was revoked after she used methamphetamine and possessed a compressed air BB pistol. Monthie was later released to a halfway house but failed to comply with its rules concerning alcohol use and re-ordered by a federal judge into USMS custody.
Monthie was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Vaughn was sentenced to a time-served sentence of 154 days of jail. She must also serve a one-year term of supervised release. There is no parole in the federal system. In August 2022, Vaughn was sentenced to 21 months’ imprisonment for his escape from custody.
Monthie is being held in the United States Marshal’s custody until April 20, 2023, when she is ordered to report to a local halfway house for up to 180 days.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the USMS.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 22-CR-80 (Monthie) and 22-CR-12 (Vaughn).
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Catawba Woman Pleads Guilty to Federal Firearm and Drug Charges Following Fatal Fentanyl OverdoseRead the Press Release
ROANOKE, Va. – A Catawba, Virginia woman, who sold a fatal dose of fentanyl in October 2021, pleaded guilty last week to a series of federal charges.
Ashley Blankenship, 38, pleaded guilty last week to one count of possession with the intent to distribute 50 grams or more of methamphetamine, one count of possession with the intent to distribute fentanyl, and one count of possession of one or more firearms in furtherance of a drug trafficking crime.
“While we have seen some progress in the fight against drug overdose deaths, fentanyl and other opioid poisoning-related injuries continue to be an issue in the Western District of Virginia,” United States Attorney Christopher R. Kavanaugh said today. “There are multiple tools to fight these issues, and my Office will continue utilizing all of them, including prosecution, support for recovery programs, community outreach, and other results-oriented solutions to these difficult community problems.”
“Combating violent crime, illegal firearm possession and narcotics distribution within our communities is challenging, but we are prepared to face each of them head on,” ATF Acting Special Agent in Charge Michael Weddel said. “ATF will continue leveraging our expertise as we coordinate and combine efforts with our local, state and federal partners to ensure that more illegal firearms and deadly narcotics are removed from our streets.”
According to court documents, in the early morning hours of October 19, 2021, a regular user of opioids was found unresponsive by law enforcement. Following the user’s death from a fentanyl overdose, further investigation by law enforcement revealed Blankenship to be the deceased user’s source of supply.
Officers made a series of controlled drug purchases from Blankenship in October and November of 2021, culminating in the execution of a search warrant at Blankenship’s residence. During that search, authorities recovered a large quantity of methamphetamine and fentanyl, as well as six firearms, including two rifles. A subsequent search of her home was conducted at the time of her arrest, and additional narcotics and firearms were found.
Blankenship faces a potential sentence of fifteen to seventeen years in prison pursuant to a written plea agreement with the United States. A United States District Court Judge will determine the final sentence after consideration of the federal sentencing guidelines and the sentencing factors set forth by Congress.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case, with assistance from the Roanoke Valley Regional Drug Unit, the Roanoke County Police Department, the Craig County Sheriff’s Office, and the Virginia State Police.
Assistant U.S. Attorney Kristin B. Johnson is prosecuting the case.
Butler Township man pleads guilty to gun, drug crimes punishable by at least 15 years in prisonRead the Press Release
DAYTON, Ohio – Timothy Jefferson, 46, of Butler Township, pleaded guilty in U.S. District Court to drug and gun crimes that carry a mandatory minimum of 15 years and up to life in federal prison.
Specifically, Jefferson pleaded guilty to conspiring to possess with intent to distribute amounts of cocaine, methamphetamine and fentanyl that carry a mandatory minimum sentence of 10 years and up to life in prison. The defendant also admitted to possessing a firearm in furtherance of drug trafficking, a crime that carries a mandatory sentence of five years in prison consecutive to any other penalty.
According to court documents, from at least May 2021 until December 2021, Jefferson obtained bulk amounts of cocaine, fentanyl and methamphetamine for resale and distribution in the greater Dayton area. Jefferson and others would travel out-of-state to receive the bulk amounts of narcotics, driving the drugs back to Southern Ohio and staying in hotels along the way.
Jefferson’s plea details that he conspired to possess with intent to distribute five kilograms or more of cocaine, 500 grams or more of methamphetamine and 40 grams or more of fentanyl.
Jefferson kept firearms to protect the illegal drugs and the subsequent drug proceeds.
As part of his conviction, Jefferson will forfeit three firearms, multiple rounds of ammunition, a Chevy El Camino and more than $55,000 in cash.
Congress sets the mandatory 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 hearing at a later date.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); members of the Tactical Crime Suppression Unit; Kettering Police Chief Christopher N. Protsman; and Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration, announced the guilty plea entered on March 28 before U.S. District Judge Michael J. Newman. Assistant United States Attorney Amy M. Smith is representing the United States in this case.
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Big Stone Gap Man Sentenced for Role in Methamphetamine ConspiracyRead the Press Release
ABINGDON, Va. – A Big Stone Gap, Virginia man, who conspired with others to distribute methamphetamine in Southwest Virginia, was sentenced last week to 180 months in federal prison.
Gregory Miller, 47, pleaded guilty in September 2022 to one count of conspiring to distribute and possession with the intent to distribute 50 grams or more of methamphetamine, one count of distributing 50 grams or more of methamphetamine, and one count of possessing a firearm in furtherance of a drug trafficking crime.
According to court documents, between October 1, 2021 and April 2022, Miller was the source of supply of methamphetamine for a wide-range of drug dealers in and around the Wise County, Virginia area.
Miller regularly bought pounds of methamphetamine at a time from sources in West Virginia and Virginia before re-distributing it to co-conspirators for resale in Southwest Virginia. Miller sold “ice” methamphetamine, which is more than 97 percent pure. Law enforcement conducted three controlled purchases of methamphetamine from Miller immediately before his arrest, and a search of his residence in Big Stone Gap revealed three firearms and numerous rounds of ammunition, even though he was a felon with multiple prior convictions at the time.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia made the announcement.
The Southwest Virginia Multi-Jurisdictional Drug Task Force, comprised of the Wise County Sheriff’s Office, the Lee County Sheriff’s Office, the Scott County Sheriff’s Office, the Big Stone Gap Police Department, the Norton Police Department, the Virginia State Police, and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated the case.
Assistant U.S. Attorney Lena L. Busscher prosecuted the case for the United States.
Bath Man with Prior Sex Offense Conviction Pleads Guilty to Child Pornography ChargeRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Joshua Wormley, 38, of Bath, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to possession of child pornography by an individual with a prior sex offense conviction. The charge carries a mandatory minimum penalty of 10 years in prison and a maximum of 20 years.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that in July 2017, Wormley was convicted of attempted possession of a sexual performance of a child. In February 2021, Wormley possessed a cell phone containing approximately 800 images and two videos of child pornography. Some of the images and videos depicted prepubescent minors.
The plea is the result of an investigation by the Federal Bureau of Investigation Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia and the Yates County Sheriff's Office, under the direction of Sheriff Ronald Spike.
Sentencing is scheduled for August 16, 2023, at 2:30 p.m. before Judge Wolford.
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Bank robbery and 45-minute crime spree gets Texas man significant federal prison timeRead the Press Release
CORPUS CHRISTI, Texas – A 43-year-old Corpus Christi man has been ordered to federal prison for robbing American Bank in Corpus Christi and brandishing a firearm during the robbery, announced U.S. Attorney Alamdar S. Hamdani.
Anthony Dwayne Carrington pleaded guilty Jan. 4.
Today, U.S. District Judge David S. Morales handed Carrington a 51-month term of imprisonment for the robbery. He also received 84 months for the firearms charge which must be served consecutively to the other sentence imposed. The total 135-month prison term will be immediately followed by five years of supervised release. In handing down the sentence, the court noted the extremely serious and dangerous series of events that led up to apprehension.
On Aug. 8, 2022, Carrington entered the American Bank – Corpus Christi South branch on South Padre Island Drive in Corpus Christi. He approached the teller station while holding a silver pistol in his hand, pointed it directly at a bank employee and demanded he give Carrington all the money from the drawer. Carrington further warned the employee not to press the alarm or make a scene. Fearing for his life, the teller complied with Carrington’s demands.
Further investigation revealed two shootings that occurred a short distance from the bank within 45 minutes of the robbery - an attempted murder in a private residence and a homicide at P.F. Chang’s restaurant.
Authorities apprehended him after conducting a traffic stop later the same day. Carrington discarded the firearm used during the robbery and both shootings. The firearm was recovered by authorities in an empty grass lot.
Carrington will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation with the assistance of the Corpus Christi Police Department. Assistant U.S. Attorney John Marck prosecuted the case.
Baltimore Cocaine Dealer, Who Admitted Possessing a Loaded Firearm, Sentenced to Five Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Khary Owens, age 44, of Baltimore, Maryland, yesterday to five years in federal prison, followed by three years of supervised release, for possession with intent to distribute cocaine. As part of Owens’ plea agreement, he admitted that he possessed a .45-caliber handgun, loaded with 11 rounds of ammunition, in furtherance of his drug trafficking.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, in September and October 2020 Baltimore Police Department (“BPD”) detectives conducted covert surveillance on a residence in the 500 block of Sheridan Avenue in Baltimore after receiving information that the house was used for drug distribution. Detectives saw Owens on the front porch of the residence and on the sidewalk in front of the house. During their surveillance, detectives saw Owens supply drugs by engaging in hand-to-hand drug transactions.
As detailed in his plea agreement, detectives obtained a search warrant for the residence and for Owens’ person, which was executed on October 7, 2020. Detectives saw Owens arrive at the residence, then hang his vest and backpack on the front porch. When Owens saw the detectives approaching the residence, he ran inside the house and up the stairs, where he threw a package of 58 vials of cocaine out a second story window into the backyard. The package was retrieved by waiting BPD detectives. Officers entered the residence and placed Owens under arrest. From the backpack Owens left on the front porch, law enforcement recovered a .45-caliber firearm, loaded with 11 rounds of ammunition, a medicine bottle filled with a suspected cutting agent to mix with controlled substances, and drug packaging materials. Owens admitted that he intended to distribute the cocaine and that he possessed the firearm in furtherance of his drug trafficking.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Special Assistant U.S. Attorneys Jonathan Tsuei, 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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Assistant U.S. Attorney Pleads Guilty to Conflict of Interest ViolationRead the Press Release
An Assistant U.S. Attorney pleaded guilty yesterday to illegally steering contracts to her spouse, in violation of the federal criminal conflict of interest statute.
According to court documents, Kathryn Drey, 55, of Pensacola, Florida, directed contracts from the U.S. Attorney’s Office for the Northern District of Florida to companies in which her spouse had a financial interest, including while she served as chief of the office’s Civil Division. Drey concealed her spouse’s financial interest in contracts to conduct title searches in litigation defended by the U.S. Attorney’s Office.
“Kathryn Drey committed a federal crime by enriching her family at the expense of her duty to the American people,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The Department of Justice is committed to holding accountable public servants who act with unlawful conflicts of interest, prioritizing financial gain over their ethical duties.”
“The public trusts Department of Justice employees to act with the highest integrity. Instead, Drey acted in her own self-interest to improperly profit from her official position,” said Special Agent in Charge James F. Boyersmith of the Department of Justice Office of the Inspector General (DOJ-OIG) Miami Field Office. “DOJ-OIG is committed to rooting out this kind of egregious misconduct and bringing perpetrators to justice.”
Drey pleaded guilty to one count of acting with a conflict of interest. She is scheduled to be sentenced on June 28 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The DOJ-OIG is investigating the case.
Trial Attorneys Lauren Castaldi and Nicholas Cannon of the Criminal Division’s Public Integrity Section are prosecuting the case.
Albany Man Pleads Guilty to Unemployment Insurance FraudRead the Press Release
ALBANY, NEW YORK – Taliek Lanier, age 23, of Albany, pled guilty today to participating in a conspiracy to defraud the New York State Department of Labor (NYSDOL) by obtaining unemployment insurance benefits under the names of other people, including benefits funded by the federal government in response to the COVID-19 pandemic.
The announcement was made by United States Attorney Carla B. Freedman; New York State Inspector General Lucy Lang; Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS); and Jonathan Mellone, Special Agent in Charge, Northeast Region, United States Department of Labor, Office of Inspector General (USDOL-OIG).
As part of his guilty plea, Lanier admitted that he provided Jamie Johnson with the personal identifying information of three other people, which Johnson used to file false claims via the NYSDOL website. Lanier further admitted that as a result of the fraudulent applications submitted by Johnson, the NYSDOL paid $113,936 in unemployment insurance benefits. As part of his plea agreement, Lanier agreed to pay $113,936 in restitution to the State of New York.
Johnson previously pled guilty to fraudulently obtaining $701,441 in unemployment insurance benefits as part of the scheme.
Lanier faces a maximum term of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years when he is sentenced on August 2, 2023 by Senior U.S. District Judge Lawrence E. Kahn.
This case was investigated by the New York State Inspector General’s Office, HSI, USPIS, and USDOL-OIG, with assistance from the NYSDOL Office of Special Investigations, the Capital Region Crime Analysis Center, and the Albany County Department of Social Services. Assistant U.S. Attorneys Joshua R. Rosenthal and Joseph S. Hartunian are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
22 Individuals Charged with Drug Trafficking in the Municipalities of Sabana Grande, San Germán, Lajas, and Cabo Rojo, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On March 22, 2023, a federal grand jury in the District of Puerto Rico returned a six-count indictment charging 22 individuals with drug trafficking in the municipalities of Sabana Grande, San Germán, Lajas, and Cabo Rojo, Puerto Rico. The Federal Bureau of Investigation and the Puerto Rico Police Bureau Aguadilla Strike Force are in charge of the investigation, with the collaboration of Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA), United States Postal Inspection Service (USPIS), Internal Revenue Service (IRS), the United States Marshals Service (USMS), the Mayagüez Strike Force, Mayagüez Homicide Division, and the Mayagüez District Attorney. This arrest operation is part of the Organized Crime Drug Enforcement Task Force (OCDETF) program.
The indictment alleges that from 2019 to the date of the return of the indictment, the drug trafficking organization distributed heroin, cocaine base (commonly known as “crack”), cocaine, marihuana, Fentanyl, Tramadol, Oxycodone (Percocet), and Alprazolam (Xanax) in Majinas Ward, Las Guaras Ward, Cerro Gordo Ward, José A. Castillo Public Housing Project (PHP) in the municipality of Sabana Grande; Sabana Eneas Ward in the municipality of San Germán; Sabana Yeguas Ward in the municipality of Lajas; Parabueyon Ward in the municipality of Cabo Rojo, and areas nearby for significant financial gain and profit.
“The charges in this case reflect the Justice Department’s commitment to dismantling drug trafficking organizations that sow violence and fear in our communities. We will continue to work closely alongside our law enforcement partners to dismantle criminal organizations throughout Puerto Rico and break the cycle of violence that they perpetuate,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
“When I first came to San Juan, I said that violent crime would be amongst our top priorities. Today, I want to thank my FBI Aguadilla Team for helping me make good on that promise,” said FBI Special Agent in Charge Joseph González. “There will always be more work to be done, but this takedown dismantled an extremely violent criminal enterprise, which controlled most of the drug trafficking operations in the SW of Puerto Rico, with no regard for human life and no respect for law enforcement. I want to thank the USAO, IRS, USMS, PRPB Mayagüez Strike Force, USPIS, DEA, HSI, CBP and the Mayagüez District Attorney’s Office, for their assistance in this investigation and their continued support to the FBI mission.”
As part of the conspiracy, the members acted in different roles to further the goals of the conspiracy, including acting as leaders, enforcers, runners, sellers, and facilitators. The defendants had access to different vehicles which they used to transport money, narcotics, and firearms. They offered delivery services to their clients; they would meet up with clients at parking lots or wherever it was convenient to their customers.
The members of the gang used force, violence, and intimidation to maintain control of the areas in which they operated. Twenty-one defendants are also facing a charge of possession of firearms in furtherance of a drug trafficking crime. The defendants are:
José Alberto Pagán-Casiano, a/k/a “Pito Cansio”
Victor Galindo-Padilla, a/k/a “Junito”
John M. Hernández-Méndez, a/k/a “El Buster”
Terril Rivera-Calder, a/k/a “TJ”
Julio Argenis Figueroa-Martínez, a/k/a “Argenis”
Renty A. Areizaga-García
Alexander Rivera-Casiano, a/k/a “Papal”
Gustavo González-González, a/k/a “Gotay/GTA/Negro/Tavo”
Christian Belén-Silva, a/k/a “Belén”
Michael Nazario-Rivera, a/k/a “Michael Bolso/El Pri”
Yomvier Torres-Ruiz
Jaime Rodríguez-Juliá
Victor Casiano-Alameda, a/k/a “Junito”
Rodney A. Santiago-Ramírez
Gabriel Olmeda-Mercado, a/k/a “Rasta”
Justin Carlo-Padilla, a/k/a “Donald Trump”
José M. Rodríguez-Torres, a/k/a “JM”
Alex Ramírez-Sánchez, a/k/a “Pote”
Axel Vélez-Denizac, a/k/a “Axel el Enano”
Shariel Mercado-González
Yehudy Toro-Vargas
Francisco Ayala-Vega, a/k/a “Cabra/Sico”
If convicted, the defendants face a minimum sentence of 10 years in prison, and a maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Corinne Cordero-Romo from the Gang Section is in charge of the prosecution of 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.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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28 March 2023
কুইন্স ম্যান রিয়েল এস্টেট জালিয়াতি স্কিমের জন্য দোষী সাব্যস্ত হয়েছেনRead the Press Release
আজকের আগে, ব্রুকলিনের ফেডারেল আদালতে, রাশিদুন বোখারী (Rashidun Bokhari) একটি কথিত রিয়েল এস্টেট বিনিয়োগ প্রকল্প থেকে উদ্ভূত ওয়্যার জালিয়াতির জন্য দোষী সাব্যস্ত হয়েছেন। বোখারী-কে 2022 সালের অক্টোবরে গ্রেপ্তার করা হয়েছিল। মার্কিন যুক্তরাষ্ট্রের জেলা জজ পামেলা কে. চেন (Pamela K. Chen)-এর সম্মুখে আজকের কার্যক্রম অনুষ্ঠিত হয়। দণ্ডিত হলে, বোখারী-কে 20 বছরের কারাদণ্ডের সম্মুখীন হতে হয়।
নিউ ইয়র্কের ইস্টার্ন ডিস্ট্রিক্টের ইউনাইটেড স্টেট অ্যাটর্নি ব্রিয়ন পিস দোষী সাব্যস্ত করার ঘোষণা দিয়েছেন।
কোর্ট ফাইলিংয়ে উল্লেখ করা হয়েছে, সেপ্টেম্বর 2015 এবং এপ্রিল 2018 এর মধ্যে, বোখারী ভুক্তভোগীকে লং আইল্যান্ড সিটি এবং কুইন্সের অ্যাস্টোরিয়াতে অবস্থিত চারটি ভিন্ন রিয়েল এস্টেট সম্পত্তিতে প্রায় 935,000 মার্কিন ডলার বিনিয়োগ করতে প্ররোচিত করেছিলেন। বোখারী মিথ্যা দাবি করেছেন যে কথিত রিয়েল এস্টেট লেনদেনে তার বিনিয়োগের বিনিময়ে, ভুক্তভোগী বিনিয়োগকারী সম্পত্তিতে 50 শতাংশ মালিকানা পাবেন। বোখারী রিয়েল এস্টেট লেনদেনের নথি জাল করেছেন যা তিনি ভুক্তভোগী বিনিয়োগকারীকে প্রদান করেছিলেন। প্রায় 1 মিলিয়ন মার্কিন ডলার পাওয়ার পরে, বিবাদী বিদেশে তহবিল স্থানান্তর, বন্ধকী এবং জীবন বিমায় পেমেন্ট এবং এটিএম থেকে নগদ উত্তোলন সহ তার নিজের ব্যক্তিগত ব্যবহারের জন্য অর্থ অপব্যবহার করেন। তার আবেদনের চুক্তির অংশ হিসাবে, বোখারী ভুক্তভোগীকে 935,000 মার্কিন ডলার পরিমাণ ক্ষতিপূরণ দিতে সম্মত হয়েছেন।
সরকারের তদন্তে আরো জানা গেছে যে 20 ডিসেম্বর 2020 এবং মে 2022 এর মধ্যে, বোখারী কুইন্সে আরো দুইজন ভুক্তভোগীকে প্রতারণার জন্য একটি পৃথক স্কিমে নিযুক্ত ছিলেন। তার আবেদন চুক্তির অংশ হিসাবে, বোখারী এই দুই ভুক্তভোগীকে 191,100 মার্কিন ডলার পরিমাণ ক্ষতিপূরণ দিতে সম্মত হয়েছেন।
বোখারী এর দ্বারা ভুক্তভোগীরা বাঙালি বংশোদ্ভূত এবং তিনি তার স্কিমের জন্য তাদের শেয়ার করা জাতিগত পটভূমিকে কাজে লাগিয়েছেন।
যারা মনে করেন যে তারা বোখারী এর দ্বারা সংঘটিত অপরাধের শিকার হয়েছেন, তাদেরকে মার্কিন যুক্তরাষ্ট্রের নিম্নোক্ত অ্যাটর্নি অফিসে যোগাযোগ করতে বলা হয়েছে এই ঠিকানায় https://www.justice.gov/usao-edny/report-crime
সরকারের মামলাটি ব্যবসা এবং সিকিউরিটিজ জালিয়াতি সেকশনের অফিস দ্বারা পরিচালিত হচ্ছে। যুক্তরাষ্ট্রের সহকারি অ্যাটর্নি লরেন বোম্যান (Lauren Bowman) প্রসিকিউশনের দায়িত্বে রয়েছেন এবং তদন্তের নেতৃত্বে ছিলেন নিউ ইয়র্কের ইস্টার্ন ডিস্ট্রিক্টের বিশেষ এজেন্ট মার্টিন সুলিভান (Martin Sullivan)।
বিবাদী:
রাশিদুন বোখারী
বয়স 57
অ্যাস্টোরিয়া, কুইন্স (Astoria, Queens)
E.D.N.Y. Docket No. 23-CR-58 (PKC)
Wisconsin Man Charged with Firebombing BuildingRead the Press Release
A Wisconsin man was arrested today on a charge related to the May 2022 firebombing of a Madison office building.
According to court documents, Hridindu Sankar Roychowdhury, 29, of Madison, is charged with one count of attempting to cause damage by means of fire or an explosive. Roychowdhury was arrested earlier today in Boston.
“According to the complaint, Mr. Roychowdhury used an incendiary device in violation of federal law in connection with his efforts to terrorize and intimidate a private organization,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “I commend the commitment and professionalism of law enforcement personnel who worked exhaustively to ensure that justice is served.”
“This group of local and federal law enforcement officers has worked, with the federal prosecutors, diligently and creatively to move the investigation forward,” said U.S. Attorney Timothy M. O’Shea for the Western District of Wisconsin. “This case is an example of the results law enforcement can achieve when local and federal law investigators work as a team.”
“Violence is never an acceptable way for anyone to express their views or their disagreement,” said Assistant Director Robert R. Wells of the FBI’s Counterterrorism Division. “Today’s arrest demonstrates the FBI’s commitment to vigorously pursue those responsible for this dangerous attack and others across the country, and to hold them accountable for their criminal actions.”
According to the complaint, on Mother’s Day, Sunday, May 8, 2022, at approximately 6:06 a.m., law enforcement responded to an active fire at an office building located in Madison, Wisconsin. Once inside the building, police observed a mason jar under a broken window; the jar was broken, and the lid and screw top were burned black. The police also saw a purple disposable lighter near the mason jar. On the opposite wall from the window, the police saw another mason jar with the lid on and a blue cloth tucked into the top; the cloth was singed. The jar was about half full of a clear fluid that smelled like an accelerant. Outside of the building, someone spray painted on one wall, “If abortions aren’t safe then you aren’t either” and, on another wall, a large “A” with a circle around it and the number “1312.” During the investigation, law enforcement collected DNA from the scene of the attack.
In March 2023, law enforcement identified Roychowdhury as a possible suspect. Local police officers observed Roychowdhury dispose of food in a public trash can; the officers recovered the leftover food and related items, and law enforcement collected DNA from the food. On March 17, 2023, law enforcement advised that a forensic biologist examined the DNA evidence recovered from the attack scene and compared it to the DNA collected from the food contents. The forensic biologist found the two samples matched and likely were the same individual.
In March 2023, Roychowdhury travelled from Madison, Wisconsin, to Portland, Maine, and he purchased a one-way ticket from Boston to Guatemala City, departing this morning. Law enforcement arrested Roychowdhury at Boston Logan International Airport. Roychowdhury will have a detention hearing in Boston.
Roychowdhury is scheduled to appear in U.S. District Court in Boston today. A date for his appearance in federal court in Madison has not been set.
If convicted, Roychowdhury faces a mandatory minimum penalty of five years and a maximum of 20 years in prison.
The Madison Police Department, Wisconsin State Capitol Police Department, ATF, the FBI’s Joint Terrorism Task Force, Homeland Security Investigations, Dane County Sheriff’s Office investigated the case, with assistance provided by the FBI Boston Field Office, Boston Police Department, Massachusetts State Police, U.S. Coast Guard, Federal Air Marshal Service, and Transportation Security Administration.
Assistant U.S. Attorney Elizabeth Altman for the Western District of Wisconsin and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section are prosecuting the case. Assistant U.S. Attorney Amanda Beck for the District of Massachusetts handled the appearance in Boston.
A complaint is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Utah Lab Owner Admits $89 Million Health Care Fraud Kickback Scheme Involving Cancer Genetic Screening TestsRead the Press Release
NEWARK, N.J. – A Utah resident today admitted his role in a $89 million health care fraud and kickback scheme involving genetic cancer screening tests (CGX Tests), Attorney for the United States Vikas Khanna announced.
Jordan Bunnell, 41, of Sandy, Utah, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count each of conspiring to commit wire fraud, conspiracy to commit health care fraud, and conspiring to defraud the United States in connection with a scheme to violate the Anti-Kickback Statute.
According to documents filed in this case and statements made in court:
Bunnell and others owned, operated, and had a financial interest in a marketing call center, a clinical laboratory, and a telemedicine company that conducted or arranged for a variety of medical tests. Bunnell and others paid kickbacks and bribes to various parties in exchange for referrals and orders for CGX Tests for beneficiaries of the Medicare program and other health care benefit programs, without regard for medical necessity. From October 2018 through July 2019, Bunnell and his conspirators caused a loss to Medicare and other federal and private health care benefit programs of approximately $89 million.
The charge of conspiracy to violate the Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison; the charge of conspiracy to commit health care fraud is punishable by a maximum potential penalty of 10 years in prison; the charge of conspiracy to commit wire fraud is punishable by a maximum potential penalty of 20 years in prison. All three charges are also punishable by a maximum fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; special agents of the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty; and special agents of the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sean M. Sherman of the Opioid Abuse Prevention & Enforcement Unit in Newark.
bunnell.information.pdfTwo California Men Indicted for $150 Million Securities FraudRead the Press Release
BOSTON – Two California men have been indicted for their alleged involvement in a sophisticated securities fraud scheme that generated over $150 million in illicit profits.
Joseph A. Padilla, 53, of Carlsbad, Calif. and Cabo San Lucas, Mexico, was charged with one count of conspiracy to commit securities fraud, two counts of securities fraud and one count of attempting to cause the production of an identification document without lawful authority. Kevin C. Dills, 66, of Carlsbad, Calif., was charged with one count of conspiracy to commit securities fraud and one count of securities fraud. The defendants will appear in federal court in Boston via remote hearing on March 29, 2023.
According to the indictment, Padilla is a former stockbroker who was barred from the securities industry in 2012 by the U.S. Securities and Exchange Commission (“SEC”). Dills is the former owner of a broker-dealer who was barred from the securities industry in 2001 by the SEC. Between 2020 and 2022, Padilla allegedly conspired with Dills and others to commit securities fraud by facilitating and participating in pump-and-dumps involving the concealed-control of the shares of penny-stock companies.
The indictment alleges that, between October 2020 and July 2022, Padilla and Dills participated in a lucrative pump-and-dump involving the shares of Oncology Pharma, Inc., a thinly traded company that traded on the over-the-counter securities market under the ticker symbol ONPH. As part of the scheme, Dills allegedly used two companies under his control to exercise convertible debt issued by ONPH and acquire nearly all of ONPH’s free-trading shares.
Dills, who allegedly used the two companies to disguise that he was an affiliate of ONPH, then transferred the ONPH shares to nominees of Padilla, who in turn, caused the shares to be transferred to a broker-dealer in the Cayman Islands with which he had a close association. Padilla and several of his associates then allegedly engaged in manipulative trading in ONPH to drive up the company’s stock price, after which Padilla allegedly began dumping ONPH shares to unsuspecting investors in Massachusetts and throughout the United States, while Dills caused ONPH to issue positive press releases. According to court documents, the scheme generated more than $150 million in illicit profits, $19 million of which Dills allegedly received through his companies for his role in the scheme.
The indictment further alleges that, between January 2020 and April 2021, Padilla participated in a pump-and-dump fraud scheme involving the shares of Charlestowne Premium Beverages Inc., a thinly traded company that traded on the over-the-counter market under the ticker symbol FPWM. As part of the scheme, Padilla allegedly orchestrated the manipulation of Charlestowne’s stock price using his brokerage account and those of several other individuals. He then allegedly facilitated the sale of millions of Charlestowne’s shares at pumped up prices to unsuspecting investors in Massachusetts and throughout the United States, generating over $7 million in illicit profits.
Padilla was arrested on a criminal complaint in August 2022 and released on pre-trial conditions, which included surrendering his passport and not obtaining another passport. The indictment alleges that while on pre-trial release, Padilla attempted to acquire a fraudulent Ukrainian passport so that he could flee prosecution. Based on this alleged conduct, Padilla was arrested in January 2023 for violating his terms of release.
The charge of securities fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $5 million. The charge of conspiracy to commit securities fraud provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000. The charge of attempt to cause the production of an identification document without lawful authority provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant United States Attorneys James R. Drabick and Ian J. Stearns of Rollins’ Securities, Financial & Cyber Fraud Unit are prosecuting the case.The details contained in the charging document are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tucson Man Sentenced to 10 Years for Drug and Firearm OffensesRead the Press Release
TUCSON, Ariz. – David Wayne Radde, 60, of Tucson, was sentenced last week by United States District Judge John C. Hinderaker to 120 months in prison. Radde pleaded guilty to Possession with Intent to Distribute Methamphetamine and Felon in Possession of a Firearm.
On November 10, 2020, Pima County Sheriff’s deputies stopped a vehicle driven by Radde for multiple traffic violations. A drug detection canine was called to the scene and alerted to the presence of drugs inside the vehicle. Sheriff’s deputies then searched the vehicle and found 2.68 kilograms of methamphetamine inside the passenger area of the vehicle. Due to the large quantity of methamphetamine, Drug Enforcement Administration agents were called to the scene. Inside the trunk, agents found a loaded Taurus 9 mm firearm and $14,695 in cash. A criminal records check revealed that Radde had multiple prior felony convictions, which prohibited him from possessing firearms.
The Drug Enforcement Administration conducted the investigation in this case with the assistance of the Pima County Sheriff’s Department. Assistant U.S. Attorney Serra M. Tsethlikai, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-0940-TUC-JCH
RELEASE NUMBER: 2023-044_Radde# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Total Orthopedics & Sports Medicine Agrees to Provide Sign Language Interpreters in Settlement of Claim that it Violated the Americans with Disabilities ActRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, announced today that an agreement has been reached with Orthopaedics, Spine, and Sports Medicine, LLC, d/b/a Total Orthopedics & Sports Medicine (Total Orthopedics), under Title III of the Americans with Disabilities Act, to resolve allegations that Total Orthopedics failed to comply with its communications obligations for individuals who are deaf or hard of hearing. Title III of the ADA prohibits discrimination against people with disabilities in places of public accommodations such as medical centers. Individuals who are deaf or hard of hearing fall within the protection of the ADA.
Total Orthopedics is an orthopedic clinic with locations throughout New York City, New Jersey, and on Long Island. The settlement resolves claims made by an individual who is deaf, that Total Orthopedics refused to provide her with appropriate auxiliary aids and services, including a qualified sign-language interpreter, to ensure effective communication during a medical appointment at Total Orthopedics’ location in Massapequa in January 2020.
Under the settlement agreement, Total Orthopedics has agreed to provide appropriate auxiliary aids and services, including qualified sign-language interpreters, to patients who are deaf or hard of hearing. Total Orthopedics also agreed to update and maintain appropriate policies, to revise its training materials and provide annual training to its personnel, to post notices in its medical centers and on its website to inform patients of their right to auxiliary aids and services, and to cooperate with the United States Attorneys’ Office for the Eastern District of New York to ensure ongoing compliance with the terms of the settlement agreement. Total Orthopedics will pay $1,500 to the complainant.
“This Office is deeply committed to protecting the civil rights of all individuals and will not hesitate to vigorously enforce the laws protecting people with disabilities when necessary,” stated United States Attorney Peace. “Today’s resolution ensures that the deaf and hard of hearing will be able to effectively and efficiently communicate with health care professionals at Total Orthopedics locations throughout New York City, Long Island, and New Jersey.”
The United States’ case was handled by Assistant U.S. Attorney Ekta Dharia of the Office’s Civil Division with assistance from Civil Rights Investigator Laura Riley.
Any member of the public who wishes to file a complaint alleging that the office of a health care provider or any other place of public accommodation or public entity in the Eastern District of New York is not accessible to persons with disabilities may contact this Office via the following link: https://www.justice.gov/usao-edny/civil-rights.
Three Brooklyn Residents Charged in Kidnapping New Jersey Teenager for RansomRead the Press Release
NEWARK, N.J. – Three individuals from Brooklyn, New York, were charged today in connection with a kidnapping for ransom that left a teenager with stab wounds after a dispute over a drug transaction, U.S. Attorney Philip R. Sellinger announced.
Dennis Reyes Mora, 37, Alexander Cruz, 26, and Cindy Aleman Fernandez, 27, all of Brownsville, Brooklyn, are each charged by complaint with one count of conspiracy to commit kidnapping. They appeared before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and were detained.
According to documents filed in this case and statements made in court:
On March 17, 2023, after a failed drug deal in Delaware, Cruz, Reyes, Aleman, and another individual kidnapped the 18-year-old victim, who they drove through New Jersey and held for ransom in the basement of a house in Queens, New York. During the drive, the kidnappers bound the victim with tape and stabbed the victim multiple times. Once they reached the house in Queens, the kidnappers covered the victim’s eyes and bound the victim’s wrists and ankles with tape. While holding the victim captive, the kidnappers tortured the victim, including by running a knife on the victim’s neck, holding a gasoline-soaked rag against the victim’s eyes, burning the victim with cigarettes, and beating the victim. One of the kidnappers also threatened the victim with a gun and rounds of ammunition. Aleman looked on and laughed while the victim was tortured.
The kidnappers ultimately released the victim after the victim’s family, aided by law enforcement, paid a ransom. Before their arrest, the kidnappers tried to cover up their crimes by, among other things, removing and cleaning the seats of the car used in the kidnapping.
The charge of conspiracy to commit kidnapping carries a maximum potential penalty of life in prison and a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Hackensack Police Department, under the direction of Police Director Raymond Guidetti; the Bergen County Prosecutor’s Office, under the direction of Prosecutor Mark Musella; the Paterson Police Department, under the direction of the New Jersey Department of Law and Public Safety; the Clifton Police Department, under the direction of Chief Thomas Rinaldi; the Passaic County Sheriff’s Office, under the direction of Sheriff Richard Berdnik; and the New York Police Department, under the direction of Commissioner Keechant L. Sewell, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
reyes.complaint.pdfSuburban Chicago Health Care Company and Its Owner Ordered to Pay False Claims Act Judgment of More Than $25 MillionRead the Press Release
CHICAGO — A former owner of a home visiting physician company in suburban Chicago, who was previously convicted of theft from the Medicare program, has been ordered by a federal judge to pay more than $25 million in damages and penalties as the result of more than 4,000 violations of the False Claims Act.
AJIBOLA AYENI, 63, of Flossmoor, formerly operated DOCS AT THE DOOR, P.C., a home visiting physician company in Matteson, Illinois. In 2017, the government intervened in a sealed whistleblower lawsuit that had been brought against him and other defendants in 2013. The United States filed its own complaint-in-intervention against Ayeni and his wife, JOY H. TURNER-AYENI, 61, of Flossmoor, and their companies, including Docs at the Door, alleging that they had violated the federal False Claims Act by knowingly submitting claims for Medicare payments for services not rendered, services that were not medically necessary, and services that were “upcoded” to a higher level reimbursement than was appropriate or provided. The allegations included that Ayeni and Docs at the Door had submitted thousands of claims for a Medicare service called care plan oversight, which they knew had not been provided. Care plan oversight is a covered Medicare service, where a physician who has certified a plan of care for a home health patient spends an additional 30 minutes in a calendar month performing certain oversight functions that are not related to the certification itself or a face-to-face visit with the patient, which are separately billed.
Also in 2017, Ayeni was charged in a related criminal case alleging care plan oversight fraud. That case resolved in a guilty plea on August 22, 2019, when Ayeni pleaded guilty to one count of theft or embezzlement in connection with a health care benefit program. In his plea, Ayeni specifically admitted that the Medicare program paid Docs at the Door approximately $523,600 from 2011 through June 2015 as the result of 4,367 false claims for the care plan oversight service that he, as the owner and authorized official of the business, knowingly caused to be submitted although he knew that care plan oversight service had not been rendered. He also admitted that he instructed others to create false documentation to support those false claims for care plan oversight.
On March 24, 2023, Chief U.S. District Judge Rebecca R. Pallmeyer granted summary judgment to the United States regarding the care plan oversight false claims in its civil case, holding that Ayeni and Docs at the Door are liable under the False Claims Act for those false care plan oversight claims to Medicare based upon Ayeni’s earlier guilty plea and his admissions within the plea agreement. On March 28, 2023, the court entered judgment against Ayeni and Docs at the Door in the amount of $25,589,300, made up of $1,570,800 in treble damages and $24,018,500 in civil penalties.
The ruling is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Mario Pinto, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General. The government is represented in its civil fraud case by Assistant U.S. Attorney Sarah North. The government was represented in the criminal case against Ayeni by Assistant U.S. Attorneys Jeremy Daniel and Sarah North.
To combat fraud, the False Claims Act permits private individuals to sue for false claims on behalf of the government and to share in any recovery. The Act also allows the government to intervene or take over the lawsuit, as it has done in this case, and to recover three times damages plus civil penalties, that ranged from $5,500 to $11,000 for each false claim submitted by the defendants during the fraud scheme in this case.
St. Louis Woman Admits Bank Fraud, Pandemic FraudRead the Press Release
ST. LOUIS – A woman from St. Louis, Missouri on Monday pleaded guilty to two counts of bank fraud and admitted committing both check fraud and pandemic fraud.
Nikia A. French, 30, admitted recruiting people on Instagram who were willing to let French use their bank accounts. French created counterfeit checks, deposited them in the accounts to which she had access and then watched until the bank made the money available. She then withdrew money or made debit card purchases before the bank learned that the checks were bogus.Between February 2022 and April 2022, French deposited or attempted to deposit counterfeit checks totaling at least $73,515 and received at least $34,109 in proceeds.
In the pandemic fraud scheme, French submitted two fraudulent Paycheck Protection Program loan applications in April of 2021, seeking a total of about $23,000 as a self-employed person. She falsely inflated her gross income, submitted false documents and lied about not having been convicted of a felony involving fraud in the last five years. She used the money at restaurants and clothing stores and took some out in cash, according to her plea agreement.
At her August 4 sentencing, French could face up to 30 years in prison, a $1 million fine or both.
In a 2019 bank fraud case, French was sentenced to a year and a day in prison and ordered to repay nearly $62,000.
The U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.St. Louis County Man Admits Statutory Rape of Foster ChildRead the Press Release
ST. LOUIS – A man from St. Louis County, Missouri on Tuesday admitted impregnating a minor and sexually abusing her when she was in foster care.
Edward Wiseman, 43, pleaded guilty in U.S. District Court in St. Louis to two felonies: coercion and enticement of a minor and solicitation of child pornography. He admitted sexually abusing a minor for multiple years and impregnating her when she was 14. After she was placed in foster care, Wiseman sent her naked pictures of himself and requested the same from her and met her to have sex when she was 16.
He initially lied to authorities when questioned about the rape and impregnation of the girl.
That victim’s younger sister told authorities that Wiseman had also sexually abused her. Wiseman disputes those allegations.
Law enforcement officers later found child pornography on Wiseman’s phone.
At his August 4 sentencing, Wiseman could face at least 10 years and up to life in prison for the coercion charge and at least five years and up to 20 years for the child pornography charge. Wiseman is also facing charges including statutory rape and statutory sodomy in St. Louis County Circuit Court.
The U.S. Secret Service, the North County Police Cooperative and the St. Louis County Police Department investigated the case. Assistant U.S. Attorney Jillian Anderson is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
St. Elmo Man Facing Multiple Charges After Shooting Rifle at Federal AgentsRead the Press Release
EAST ST. LOUIS, Ill. – A federal grand jury returned a 15-count indictment charging a St. Elmo man on several assault and firearms charges after he allegedly opened fire on federal law enforcement agents who attempted to serve an arrest warrant at his residence in Fayette County.
Dax Baldrige, 46, is facing seven counts of assault of a federal officer, seven counts of using a firearm in during and in relation to a crime of violence and one count of possession of a firearm by a felon.
“Fortunately, the law enforcement officers returned home safely to their families after the incident in Fayette County,” said U.S. Attorney Rachelle Aud Crowe. “Attacks on those who protect us will not be tolerated.”
“As the U.S. Marshal for the Southern District of Illinois, I am thankful and relieved that none of our task force personnel were injured or worse during this incident,” said David Davis, U.S. Marshal for the Southern District of Illinois. “This incident highlights the danger our task force members and other law enforcement encounter on a daily basis.”
“This case serves as a grim reminder of the dangers that federal law enforcement officers face every day, while protecting our communities,” said Special Agent in Charge, Bernard Hansen, ATF, Kansas City Field Division. “As we did in this investigation ATF will continue to work with our law enforcement partners to focus on those that use firearms to facilitate acts of violence in Illinois, and across the country.”
“Law enforcement officers put their lives on the line every day and those who attack the people charged with protecting the public’s safety will be held accountable and brought to justice,” said ISP Director Brendan F. Kelly.
“Fayette County Sheriff’s Office would like to reiterate that we are extremely thankful that no law enforcement , local or federal officers were injured during this incident. We are also extremely proud of all the assisting agencies response to the incident that aided in a peaceful resolution and that no one was injured,” said Fayette County Sheriff Ronnie Stevens.
On Oct. 17, 2022, task force members with the U.S. Marshals attempted to serve an arrest warrant to Baldrige at his residence in Fayette County when he allegedly used a rifle to fire multiple shots at the officers. After a 10-hour stand-off with police, Baldrige was taken into custody without incident, and no injuries were reported.
An indictment is merely a formal charge against a defendant. Under the law, the defendant is presumed to be innocent of the charges until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Baldrige could face more than 70 years in prison and fines up to $250,000. The U.S. Marshal Service Great Lakes Task Force, the Bureau of Alcohol Tobacco and Firearms, the Illinois State Police and the Fayette County Sheriff’s Department are contributing to the investigation. Assistant U.S. Attorney Kimberly Arshi is prosecuting the case.
Sexual Predator Sentenced to 120 Months for Attempting to Engage in Sexual Activity with a Teenager He Met on FacebookRead the Press Release
Salt Lake City, Utah – A Salt Lake City man was sentenced today to 10 years’ imprisonment for attempting to meet a 13-year-old girl he was communicating with via Facebook Messenger – who was in fact an undercover officer.
According to court documents, Christopher Philip Padilla, 33, of Salt Lake City, admitted that between September 2020 and January 2021 he used Facebook Messenger and his cell phone to communicate with a 13-year-old girl. On January 15, 2021, Padilla drove to an area in Salt Lake City intending to meet and engage in sexual activity with the minor. Padilla also admitted that by using Facebook Messenger and his mobile phone, the communications transferred across state lines because they were transported via the internet, a facility of interstate or foreign commerce. In addition to his sentence of 120 months’ imprisonment, Padilla was ordered to a lifetime of supervised release and must register and maintain his information under the federal Sex Offender Registration and Notification Act.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case was investigated by the Salt Lake City Police Department.Assistant U.S. Attorney, Carol Dain, of the District of Utah prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Salisbury Man Charged with Possession of a Stolen FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Scott Clark, 40, of Salisbury, Vermont, was arraigned today before United States Magistrate Judge Kevin J. Doyle after Clark’s indictment for possession of a stolen firearm. Clark was ordered detained pending trial.
According to court records, on September 23, 2022, a concerned citizen, who had observed suspicious activity indicative of ongoing burglaries at the Waterhouses Campground in Salisbury, contacted Vermont State Police. The responding trooper encountered Clark and Clark’s female companion at the Waterhouses Campground and in the vicinity of a white Jeep Liberty. Clark gave the trooper the false name “Nathan Clark” and also a false date of birth. During the encounter, Clark was observed putting something in his female companion’s purse and then dropping a black holster to the ground. The companion’s purse was inspected by the trooper and sitting on top of the purse was a black Glock .40 semi-automatic handgun. Records from a local firearm store confirmed the firearm found in the purse was originally purchased by an individual who owns a residence at the Waterhouses Campground. The investigation revealed that Clark had been burglarizing residences at the campground, and while doing so, had stolen the Glock .40 handgun from one of the residences. A subsequent search of the Jeep Liberty revealed additional stolen property, including a spare .40 caliber magazine and box of .40 caliber ammunition which was reported by a campground resident as having been stored with the Glock prior to the burglary.
The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Clark remains presumed innocent until and unless he is convicted of a crime. Clark faces a maximum sentence of 10 years of imprisonment if convicted. The actual sentence would be determined with reference to federal sentencing guidelines.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Vermont State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The prosecutor is Assistant United States Attorney Jonathan Ophardt. Clark is represented by Mark Oettinger, Esq.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. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn.
Rochester Man Pleads Guilty to Conspiracy to Distribute Fentanyl and MethamphetamineRead the Press Release
CONCORD – Bradford Sargent, 41, of Hampton, pleaded guilty in federal court to conspiracy to distribute controlled substances, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, Sargent and his co-defendant Jennelle Brown sold drugs multiple times from their hotel room in Portsmouth. Law enforcement then searched their room and uncovered large quantities of money, drugs, and drug ledgers. A search of two vehicles the defendants used in their drug operations revealed more money and drugs. Officers also searched storage units and safety deposit boxes the defendants controlled and discovered additional money and drugs. In total, law enforcement seized over $130,000, 1.3 kilograms of fentanyl, almost 650 grams of methamphetamine, and smaller amounts of cocaine.
Sargent is scheduled to be sentenced on July 6, 2023. Brown previously pleaded guilty on January 18, 2023, and is scheduled to be sentenced on April 27, 2023.
The case was investigated by the Federal Bureau of Investigation and Rockingham County Sheriff’s Office, with assistance from the Drug Enforcement Administration and Strafford County Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorneys Alexander S. Chen and Jarad Hodes.
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Reno Woman Sentenced to Prison for Straw Purchasing FirearmsRead the Press Release
RENO – A Reno woman who made false statements when she purchased multiple firearms that were bought for her son, a convicted felon, was sentenced today by U.S. District Judge Howard D. McKibben to 18 months in prison followed by three years of supervised release.
In December 2022, a jury found Gail Manney (48) guilty of illegal acquisition of firearms.
According to court documents, on April 21, 2021, Manney illegally purchased seven firearms from a Federal Firearms Licensee for her son — who is a convicted felon and is prohibited by law from buying and possessing firearms. At the time of purchase, Manney completed a federal firearms transaction form representing that she was the actual buyer of the firearms.
“Buying a firearm for someone who is a prohibited person — be it a family member, a friend, a neighbor, or a stranger — is a serious offense and a violation of federal law,” said United States Attorney Jason M. Frierson for the District of Nevada. “Our office and ATF combine resources to ensure firearms do not end up in the hands of prohibited persons.”
“Straw purchasing is not a victimless crime,” said Acting Special Agent in Charge Joshua Jackson. “The act of willfully providing a prohibited person with a firearm by purchasing the firearm on their behalf puts firearms in the hands of criminal organizations and violent criminals which presents a grave threat to the safety of our communities. It is a federal crime to conduct the act of straw purchasing and ATF will continue to work with our prosecutorial partners to ensure that straw purchasers are held accountable.”
United States Attorney Jason M. Frierson for the District of Nevada and Acting Special Agent in Charge Joshua Jackson for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
The ATF investigated the case. Assistant United States Attorneys Megan Rachow and Andrew Keenan prosecuted the case.
The case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
If you have information pertaining to illegal firearms activity such as a straw purchase, please contact the ATF at 1-800-ATF-GUNS (1-800-283-4867). Anonymous tips may also be submitted to ATF through the ReportIt mobile app.
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Recidivist Fraudster Pleads Guilty to $40 Million Ponzi SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that FRANKLIN RAY pled guilty today to four counts of wire fraud, including one count of wire fraud while released under conditions of bail, and one count of aggravated identity theft in connection with various fraud schemes relating to his operation of a trucking business known as CSA Business Solutions LLC and another Michigan-based trucking company. RAY, who was previously convicted of wire fraud and bank fraud in the Eastern District of Michigan and was released from prison in 2010, pled guilty before United States District Judge Analisa Torres.
U.S. Attorney Damian Williams said: “As he admitted in court today, between June 2020 and April 2022, Franklin Ray engaged in four separate fraudulent schemes by lying about the business operations of his purported trucking companies, including two separate PPP frauds and a $40 million Ponzi scheme. Ray continued his crime spree even after he was arrested by federal authorities in March 2022, brazenly defrauding investors in his fake trucking company of nearly $2 million while he was on bail following his arrest. Thanks to the hard work of the FBI and this Office, he is being held accountable for his serial fraudulent conduct.”
As alleged in the previously filed Complaint and Indictment and other court documents:
Beginning in at least June 2021, FRANKLIN RAY began to offer investors an opportunity to invest in his trucking and logistics company, CSA Business Solutions LLC (the “Truck Investment Scheme”). Specifically, RAY and the investors entered into contracts pursuant to which CSA Business Solutions LLC would procure and operate a truck in its trucking business for each $20,000 contributed by the investor. RAY told investors that the trucks would perform delivery services for a multinational e-commerce company and/or a multinational shipping company and that the investors would be entitled to 77% of the net income of the trucks. In reality, CSA Business Solutions LLC operated few trucks and had minimal revenues from trucking activities. Instead, investors in the Truck Investment Scheme received payments from new investments into the scheme or from other sources. After the investors purchased the rights to trucks from CSA Business Solutions LLC, RAY sent them falsified spreadsheets at regular intervals, purporting to show the performance of their trucks during the relevant period. RAY ultimately induced approximately 275 investors to invest at least $40 million and fraudulently claimed to have purchased over 2,000 trucks with the investments.
RAY also pled guilty to carrying out fraudulent schemes to obtain over $1.9 million in government-guaranteed loans designed to provide relief to small businesses during the COVID-19 pandemic on behalf of CSA Business Solutions LLC and another Michigan-based trucking company (the “SBA Loan Fraud Schemes”). In connection with the SBA Loan Fraud Schemes, RAY submitted false information and forged documents to the Small Business Administration and commercial lenders. RAY claimed that these businesses engaged in significant trucking business, but they had minimal revenues and trucking activity.
Finally, RAY pled guilty to fraudulently inducing a New York City-based real estate company (the “Company”) to pay $175,000 in startup costs for a joint venture (the “Join Venture”) between the Company and CSA Business Solutions LLC. RAY misrepresented CSA Business Solutions LLC and his own personal business experience to the Company. Rather than pay for startup costs, RAY spent the funds on personal expenses, including private airplane trips. The Joint Venture was never formed.
RAY was arrested in early March 2022, and a CSA Business Solutions LLC bank account was seized at that time. After his arrest, up until his Indictment in April 2022, RAY continued to operate the Truck Investment Scheme. RAY hid the fact of his arrest and the seizure of the bank account and lied to investors about why he did not make expected payments after his arrest. During the period after his arrest, RAY opened new bank accounts on behalf of CSA Business Solutions LLC and continued to solicit and accept investor funds for trucks that did not exist. In the post-arrest period alone, RAY defrauded investors into paying at least $1.9 million into his scheme.
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RAY, 51, of Canton, Michigan, pled guilty to four counts of wire fraud, including one count of wire fraud while released under conditions of bail and two counts of wire fraud affecting a financial institution, and one count of aggravated identity theft. The counts of wire fraud while released under conditions of bail and wire fraud affecting a financial institution each carry a maximum sentence of 30 years in prison. The remaining count of wire fraud carries a maximum sentence of 20 years in prison. Aggravated identity theft carries an additional mandatory two-year sentence, which must be imposed consecutively to any other sentence. RAY also agreed to forfeit $42,128,912, including the funds on deposit at several bank accounts used in connection with the fraudulent schemes, including the primary CSA Business Solutions bank account. RAY also agreed to pay restitution to the victims.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. RAY is scheduled to be sentenced at 11:40 a.m. on July 25, 2023, by U.S. District Judge Analisa Torres.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Matthew Weinberg is in charge of the prosecution.
If you believe you have been a victim of the schemes described above, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact Wendy Olsen-Clancy, the Victim Witness Coordinator at the United States Attorney’s Office for the Southern District of New York, at 866-874-8900 or [email protected].
Queens Man Pleads Guilty to Real Estate Fraud SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Rashidun Bokhari pleaded guilty to wire fraud stemming from a purported real estate investment scheme. Bokhari was arrested in October 2022. Today’s proceeding was held before United States District Judge Pamela K. Chen. When sentenced, Bokhari faces up to 20 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, announced the guilty plea.
As set forth in court filings, between September 2015 and April 2018, Bokhari induced the victim to invest approximately $935,000 in four different real estate properties located in Long Island City and Astoria in Queens. Bokhari falsely claimed that in exchange for his investment in the purported real estate transactions, the victim investor would receive a 50 percent ownership in the properties. Bokhari fabricated real estate transaction documents which he provided to the victim investor. After receiving almost $1 million, the defendant misappropriated the money for his own personal use, including transferring funds overseas, making mortgage and life insurance payments, and withdrawing cash from ATMs. As part of his plea agreement, Bokhari has agreed to pay restitution in the amount of $935,000 to the victim.
The government’s investigation also revealed that between December 20, 2020 and May 2022, Bokhari engaged in a separate scheme to defraud two additional victims in Queens. As part of his plea agreement, Bohkari has agreed to pay these two victims restitution in the amount of $191,100.
Bokhari’s victims are of Bengali descent and he exploited their shared ethnic background in furtherance of his schemes.
Anyone who believes they are a victim of a crime committed by Bokhari is asked to contact the United States Attorney’s Office at https://www.justice.gov/usao-edny/report-crime
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Lauren Bowman is in charge of the prosecution and the investigation was led by Special Agent Martin Sullivan of the Eastern District of New York.
The Defendant:
RASHIDUN BOKHARI
Age: 57
Astoria, QueensE.D.N.Y. Docket No. 23-CR-58 (PKC)
Puerto Rican Man Sentenced to over Thirteen Years in Prison for Drug TraffickingRead the Press Release
GAINESVILLE, FLORIDA – Emmanuel Martinez Vega, 27, of Vega Baja, Puerto Rico, has been sentenced to serve more than thirteen years in federal prison followed by five years’ supervised release after previously pleading guilty to conspiracy to distribute more than five kilograms of cocaine. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“Our local, state, and federal law enforcement partners work tirelessly to keep us safe by removing addictive and deadly controlled substances from our communities,” said U.S. Attorney Coody. “This sentence demonstrates our commitment to support their efforts through the investigation and vigorous prosecution of criminals who would bring drugs into North Florida.”
In May 2021, local investigators received information regarding a drug trafficker receiving large quantities of cocaine through the mail from Puerto Rico. The Drug Enforcement Administration and the United States Postal Inspection Service worked in concert with the local investigators to further identify the conspirators and establish a historical record of the cocaine-laded parcels being shipped to Gainesville from Puerto Rico. As a result of the combined investigative efforts, Vega was held accountable for trafficking approximately 129 kilograms of cocaine between 2018 and June 2022. Authorities were able to seize a total of 12 kilograms of cocaine and tens of thousands of dollars over the course of the investigation.
“Ridding our communities of this poison and ensuring the safety and health of our citizens is one of DEA’s top priorities,” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “The success of this investigation is a direct result of the tireless efforts of these dedicated investigators and highlights our continued commitment to working with our law enforcement partners to protect our Florida communities.”
“We will continue to work with our partners to take deadly drugs off our streets,” said Miami Division U.S. Postal Inspection Service, Inspector in Charge Juan Vargas. “Preventing the use of the nation’s mail system for illegal activities or illicit gains is a primary focus of the U.S. Postal Inspection Service.”
This case resulted from a joint investigation by the Drug Enforcement Administration and the United States Postal Inspection Service. Assistant United States Attorney Christopher M. Elsey prosecuted the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Plant City Man Sentenced to 20 Years for Distribution, Receipt, and Possession of Child Sexual Abuse MaterialRead the Press Release
Tampa, Florida – U.S. District Judge Mary Scriven has sentenced Michael Conover (32, Plant City) to 20 years in federal prison for distribution, receipt, and possession of child sexual abuse material. Conover was also ordered to serve a 20-year term of supervised release and register as a sex offender. The court also ordered Conover to forfeit an Apple iPhone, which was used in the commission of the offense. Restitution will be determined at a later time. Conover had pleaded guilty on September 1, 2022.
According to court documents, federal agents received a cyber tip from the National Center for Missing and Exploited Children (NCMEC) regarding a user on a social media platform distributing images and videos of minors engaged in sexual activity. That same user was also the subject of an additional cyber tip which referenced the hands-on abuse of a child. Federal agents executed a search warrant on Conover’s cellphone and social media accounts and discovered that Conover had sent, received, and viewed hundreds of images and videos of child sexual abuse.
“This predator traded child sexual abuse material of very young children online and has caused irreparable harm to his victims,” said HSI Tampa Special Agent in Charge John Condon. “The abhorrent actions of child predators will not go undetected, and thanks to the painstaking, tireless efforts of the HSI Special Agents, the Hillsborough County Sheriff’s Office, and the U.S. Marshals Service, he will be held accountable for his actions.”
This case was investigated by Homeland Security Investigations (HSI) with assistance from the Hillsborough County Sheriff’s Office and the U.S. Marshals Service. It was prosecuted by Assistant United States Attorney Ilyssa M. Spergel.
This case was brought as 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 Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.