Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
27 March 2023
Brooklyn Man Pleads Guilty and Is Sentenced for Hacking into Online Accounts of Wegmans CustomersRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Maurice Sheftall, 24, of Brooklyn, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to fraud and related activity in connection with computers. Judge Siragusa then sentenced Sheftall to serve three years’ probation and pay restitution totaling $41,441.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that in January 2021, Sheftall obtained the customer credentials, including logins and passwords, of more than 50 individuals who had accounts on www.wegmans.com. He then logged into the accounts and changed passwords and e-mail contact information, locking each customer out of his or her account. Sheftall than used the customers saved credit card information, without their knowledge, to order groceries and have those groceries delivered to himself and his associates. Between January 22, 2021, and July 25, 2021, Sheftall intentionally defrauded Wegmans and approximately 50 customers by placing approximately 25 fraudulent orders, totaling approximately $9,297.05. Actual losses totaled $41,441, to include reimbursement to customers, the purchase of credit monitoring for affected customers, and the purchase of dark web monitoring to determine where and how Sheftall obtained the customer account information he used to access the accounts.
The plea and sentencing are the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
# # # #
Boston Men Indicted for Unlawful Trafficking of Machinegun Conversion DevicesRead the Press Release
BOSTON – Two Boston men have been indicted by a federal grand jury in Boston for illegally selling a dozen machinegun conversion devices.
Elijah Navarro, 24, and Michael Wilkerson, 22, were indicted on one count each of engaging in the business as a manufacturer or dealer in firearms. Wilkerson and Navarro were also indicted on one count and two counts, respectively, of transferring or possessing a machine gun. The defendants were previously arrested and charged by criminal complaint on Feb. 16, 2023.
“When we look at crime data for Boston in 2022, our city remains one of very few urban centers in the country where overall violent crime remains down. Every illegal firearm and conversion device we take off the street is preventing a potential homicide, shooting or maiming. Every piece of illegal ammunition we seize represents a life saved. The proliferation of illegal firearms and deadly conversion devices in our Commonwealth is a public health and a public safety crisis,” said United States Attorney Rachael S. Rollins. “Mr. Navarro and Mr. Wilkerson allegedly possessed unregistered machinegun conversion devices that turn already deadly firearms into weapons of war. Our city is far too familiar with the deadly and devastating effects of gun violence. In 2021, we had 40 homicides in Boston and in 2022 we had 41 homicides. The overwhelming majority of those murders were committed with an unregistered firearm by a person expressly prohibited from possessing one. According to the Boston Police Department, fatal shootings rose by eight between 2021 and 2022. Every case we charge that removes an illegal firearm, conversion device or ammunition from the streets of Boston and Massachusetts and ultimately holds prohibited users accountable matters. We will continue to charge these types of cases and work closely with our state, local and federal law enforcement partners to end gun violence.”
“Circumventing the law by selling unregistered machine guns, and operating as a licensed dealer without the benefit of following the legal requirements is egregious, particularly when the result is providing unlawful possessors with access to fully automatic firearms”, James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “ATF will continue to actively enforce federal firearms laws to keep our communities safe.”
“It is this type of cooperative effort with our federal partners at the ATF and the U.S. Attorney's Office that allows us to take dangerous individuals off our streets and to lessen the availability of high-powered firearms in our City,” said Boston Police Commissioner Michael A. Cox. “We will continue to work together to stem the tide of illegal guns in Boston utilizing all city, state and federal resources available to us in doing so.”
According to the charging documents, in January 2023, Navarro agreed to sell 12 machinegun conversion devices to an individual in exchange for $1,700. It is alleged that, following a series of communications, Navarro met the individual twice at a pre-arranged location. It is alleged that on Jan. 19, 2023, Navarro sold the first two machinegun conversion devices to the individual for $400 and later, on Jan. 25, 2023, Navarro sold the remaining 10 devices for an additional $1,300 out of Wilkerson’s residence.
It is alleged that during a search of Wilkerson’s residence on Feb. 16, 2023, two 3-D printers, 3-D printing material, machinegun conversion devices, a ballistic vest as well as firearms, ammunition and magazines were seized.
Neither Navarro nor Wilkerson possess licenses to import, manufacture, deal or possess firearms.
The charge of engaging in the business as a manufacturer or dealer in firearms provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $10,000. The charge of unlawful transferring or possession of a machinegun provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, ATF SAC Ferguson and BPD Commissioner Cox made the announcement today. Assistant U.S. Attorney John T. Dawley of Rollins’ Organized Crime & Gang Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Charged with Armed Robbery of Postal WorkerRead the Press Release
BOSTON – A Boston man has been charged with the Jan. 4, 2023 armed robbery of a United States Postal Service (USPS) letter carrier in Massachusetts.
Anthony Diaz, 20, was charged by an Information with forcibly assaulting, resisting, opposing, impeding, intimidating and interfering with a United States Postal Employee, while they were engaged in the performance of their official duties, and did so by use of a deadly weapon, a firearm. In addition, Diaz was also charged with assaulting a person having lawful charge, custody and control of United States mail, money and other property of the United States, with the intent to rob, steal and purloin that mail, money and other property of the United States, and in doing so put the life of that victim in jeopardy by the use of a firearm. Diaz was arrested on Feb. 17, 2023 and was detained following a hearing in U.S. District Court in Worcester on Feb. 27, 2023.
According to the charging documents, USPS has seen a rise in the use of Arrow Keys to facilitate the theft of U.S. Mail. An Arrow Key is a specific key designed to open designated blue USPS collection boxes in a specific area. These Arrow Keys are the property of USPS and it is a federal offense for an unauthorized person to possess one. Since July 2022, there have been at least 12 assaults on USPS letter carriers while in the performance of their official duties in Boston and surrounding cities and towns.
It is alleged that, on Jan. 4, 2023, in Peabody, Mass., Diaz approached a USPS letter carrier and stated, “Give me the keys,” while pointing a semi-automatic pistol at the victim. After the victim handed Diaz the USPS vehicle key, Diaz allegedly responded, “Give me the rest of the key,” and “Hurry up or I’ll shoot you.” The victim removed his keychain, which was attached to his belt, containing his USPS Arrow Key and asked if he could have his vehicle key back. Allegedly, Diaz did not respond, as he turned, placing the firearm in his right jacket pocket, and walked directly to the dark grey sedan parked in the area of 3A Veterans Memorial Drive. It is further alleged that Diaz stopped at the rear of the vehicle with the trunk open, before getting into the driver’s seat and departing.
The charge of assaulting, resisting, or impeding certain officers or employees, provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $250,000. The charge of robbery of any person having lawful charge, control, or custody of any mail matter or of any money or other property of the United States provides for a sentence of up to 25 years in prison, at least three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division made the announcement today. Valuable assistance was provided by the U.S. Postal Service, Office of the Inspector General. Assistant U.S. Attorney Luke A. Goldworm of Rollins’ Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bakersfield Man Sentenced to Prison for Laser Strikes on Sheriff Helicopter at Street Race GatheringRead the Press Release
FRESNO, Calif. — Andrew Nathan Hernandez, 20, of Bakersfield, was sentenced today to four months in prison for knowingly aiming the beam of a laser pointer at a Kern County Sheriff’s helicopter, Air One, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 26, 2020, Hernandez aimed the beam of a green laser at the Sheriff’s helicopter, striking it multiple times. Hernandez was attending a street race in the area of Hughes and White Lane in Bakersfield at the time. Once he was identified, Hernandez led law enforcement ground units on a nine-minute, 11-mile high-speed chase before he was eventually apprehended. The laser strikes caused the pilot to experience significant visual interference as a result of temporary flash blindness and after images.
According to the Federal Aviation Administration website, in 2020, the FAA received 6,852 reports of laser strikes, which was up from the year before. The FAA advises that, when aimed at an aircraft, lasers can cause visual interference and incapacitate pilots. Such incidents can occur anywhere, but have been reported most frequently in the Western Pacific and Southern regions of the United States.
This case was the product of an investigation by the Federal Bureau of Investigation, the Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant U.S. Attorney Karen Escobar prosecuted the case.
Assistant Attorney General Jonathan Kanter Delivers Opening Remarks at the Second Annual Spring Enforcers SummitRead the Press Release
Good morning. I am incredibly honored and grateful to welcome you all to the second annual Enforcers Summit. I am deeply humbled to be in the presence of so many esteemed, talented and dedicated competition law enforcement officials from throughout our country and around the world.
We are gathered in the “Great Hall” here at the Justice Department. Today, it is most certainly living up to its name. Today’s collection of enforcers is truly “great.” Just this morning we will hear from leaders in the U.S., U.K., South Africa and the National Association of State Attorneys General. In total, we are joined today by senior officials from 30 global jurisdictions, 21 states and the District of Columbia.
And we are joined this morning by a livestreamed audience of a public that rightly demands solutions to the problems of monopoly and oligopoly. We meet at a time when a popular movement is growing in support of more robust competition enforcement in the United States and around the globe. Our fellow citizens, who are feeling the effects of monopoly power, are advocating for greater protection of markets and opportunities to compete and benefit from competition.
So let me start by saying that this is not just another conference. This is a chance for expert enforcers confronting similar challenges to exchange ideas and collaborate regarding the path forward at a time when our markets are experiencing tectonic shifts. I know I speak for my co-host FTC Chair Lina Khan when I say we are eager to listen and to learn.
We are experiencing change in our economies on par with, if not exceeding, the industrial revolution. The ideas of competition policy are timeless but only if we are willing to adapt the familiar tools of competition to keep pace.
Poles and wires have given way to 1s and 0s. Intermediaries that once protected against information sharing have given way to digital collusion. Data has replaced oil as the power source for our new industrial tools.
The models of the smokestack economy reflected the simple geometries of the physical world. Goods used to move up and down supply chains. Competitive relationships were vertical and horizontal.
Those facts have changed. We have platforms that are multi-dimensional, serving distinct users and businesses all at once with complex relationships. The geometries of our markets today often look more like gemstones than two-dimensional drawings. Gatekeeper power has become the most pressing competitive problem of our generation at a time when many of the previous generations’ tools to assess and address gatekeeper power have become outmoded.
But we are working to meet the moment. The group assembled today in this Great Hall is not sitting by idly. Together, we are not just advancing the dialogue, but adapting our tools, analytical frameworks and internal expertise with the courage and creativity to protect competition for our generation and generations to come.
Look around you. We are surrounded by enforcers who are confronting the necessity and boundless opportunities of modernization on a daily basis. Not just through papers and panels, but through the hard work of investigation and enforcement.
This is not an academic conference: it is an enforcers summit.
In the United States, we are invigorating monopolization and merger enforcement. The deterrent effect is powerful and the results are tangible.
Simply put — most anticompetitive deals are no longer getting out of the boardroom.
And the ones that do are facing a sophisticated and empowered team of career enforcement officials who are ready to examine market realities and are up to the tough but noble task or protecting our fellow citizens from the ills of anticompetitive mergers.
And would-be monopolists know that the antitrust agencies are standing by to challenge exclusionary conduct.
When it comes to monopolization, we have more active litigation and investigations than several prior decades combined.
As a result, the economy is rebuilding itself all around us. Little by little, day by day, the natural forces of competition are taking root and rebuilding competitive markets.
That was the genius of our respective legislators in passing competition laws in the first place. When we stop anticompetitive conduct; prohibit exclusion; and stop mergers that risk lessening competition, we let the natural forces of free and fair competition elevate our economies and democracies.
So let me open this conference with a note of optimism. Our work is making a difference.
We have already changed the calculus for businesses contemplating preserving their power through mergers or exclusionary conduct or cartel behavior. And as a result, we have reopened markets for competition to gradually reappear and to flourish.
As we confront the pivot to AI and to new paradigms of health care, finance and agriculture, I am incredibly hopeful.
So long as we continue to build on and maintain an aggressive enforcement posture that accounts for modern market realities, new technology will bring a new competitive reality to our economies.
Today, I hope we can learn from each other how to continue that success. We will open the morning with publicly-broadcast interviews and panels. I want to make a request about that — I want the audience of our fellow enforcers to be part of this event.
We will have time for Q&A at each session, and I want to encourage you to actively participate and to share your ideas.
Before we begin, I want to acknowledge that a lot of effort goes into pulling off an event like this. I want to thank the staff of the Antitrust Division and FTC who worked tirelessly to make today’s event happen. In particular, our International Section Chief Lynda Marshall, Competition Policy and Advocacy Chief Karina Lubell, Special Counsel for State Relations Sarah Allen and international counsel Becky Valentine.
If you had a hand in planning this event, can you please stand up so we can all give you a round of applause.
Also if you will indulge me, we are joined by the Antitrust Division’s newest Deputy Assistant Attorney General, Manish Kumar, who is responsible for criminal enforcement. Welcome, Manish.
With that, it’s my honor to introduce my co-host, FTC Chair Lina Khan. We all know Lina is a rockstar, and she’s joined by another rockstar, former U.K. Competition and Markets Authority head Andrea Coscelli. Lina and Andrea, I’m looking forward to your discussion.
It is truly my privilege to officially kick off our second annual Enforcers Summit.
24 March 2023
“Ghost Preparer” Charged with Tax Fraud Appears in Federal CourtRead the Press Release
CHARLOTTE, N.C. – Tijan Mboob, a/k/a “TJ,” a/k/a “Teejay McBoob,” a/k/a “Sheikhtijan,” 58, of Charlotte, appeared in federal court today on tax fraud charges, announced Dena J. King U.S. Attorney for the Western District of North Carolina. Mboob was arrested on Thursday, after a federal grand jury returned a 20-count criminal indictment charging him with aiding and assisting in the preparation and filing of false tax returns over a five-year span.
Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI) joins U.S. Attorney King in making today’s announcement.
“With tax season upon us, I urge taxpayers to exercise caution and use tax preparers who are qualified and authorized to prepare and file tax returns,” said U.S. Attorney King. “Federal prosecutors and IRS criminal investigators work closely to uncover tax fraud and identify fraudulent tax preparers who violate our tax laws and compromise the integrity of our tax system.”
“As we approach the April 15 tax deadline, those who consider preparing false tax returns should be aware of the extremely negative consequences as evidenced today,” said Special Agent in Charge Eakins. “It is important for people to have confidence that when they pay their taxes, their neighbors and co-workers are doing the same. Today's indictment emphasizes that the Internal Revenue Service and U.S. Attorney’s office will continue their aggressive pursuit of those who would attempt to defraud America's tax system."
According to allegations in the indictment, beginning in at least 2014 through 2021, Mboob prepared or caused to be prepared hundreds of fraudulent tax returns that were submitted to the IRS. The indictment alleges that Mboob was a “ghost preparer,” who failed to identify himself as a paid tax preparer on tax returns he prepared or submitted as required by the IRS, despite receiving payment from clients for his tax services. The indictment further alleges that Mboob prepared income tax returns for clients that included fabricated and fraudulent items, including false filing status, false American Opportunity and education credits, false itemized deductions and false reforestation credits, among others. Mboob’s alleged inclusion of the fabricated and fraudulent items resulted in the reduction of his clients’ tax liabilities and inflated refunds totaling more than $4.7 million. The indictment also alleges that Mboob refused to assist clients who received correspondence from the IRS questioning items on their tax returns that Mboob had prepared and filed.
As alleged in the indictment, Mboob also failed to report any preparation fees he earned as income for tax years 2017 and 2020 and did not file any tax returns for tax years 2018 and 2019.
Following his initial appearance in federal court, Mboob was released on bond. Each charge of aiding and assisting in the preparation and filing of false tax returns carries a maximum prison term of three years and a $250,000 fine.
The charges against Mboob are allegations. The defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney King thanked IRS-CI for their investigation of the case.
Assistant U.S. Attorneys Cassye Cole and Graham Billings of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
* * *
This week, the IRS began its annual Dirty Dozen Tax Scams campaign, which lists the worst of the worst tax schemes that taxpayers may encounter and typically peak during filing season. To learn more about the Dirty Dozen scams and for help with recognizing and avoiding abusive tax schemes, the IRS offers educational material at IRS.gov. Suspected tax fraud can be reported to the IRS using Form 3949-A found on the IRS.gov website. If you have been financially impacted by a tax return preparer’s misconduct or improper tax preparation practices you can file a complaint here.
Zachary Louisiana Man Indicted for Gun OffenseRead the Press Release
NEW ORLEANS, LOUISIANA – TERRANCE PICKETT, age 27, a resident of Zachary, Louisiana, was charged on March 24, 2023, in a one-count indictment for violating the Federal Gun Control Act, announced United States Attorney Duane A. Evans.
PICKETT is charged with possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).
PICKETT faces a maximum term of imprisonment of 15 years, up to a $250,000 fine, up to three years of supervised release, and a mandatory special assessment fee of $100.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Mark A. Miller of the Violent Crime Unit is in charge of the prosecution.
White Hall Man Sentenced to Ten Years for Distribution of MethamphetamineRead the Press Release
SPRINGFIELD, Ill. – A White Hall, Illinois, man, Adam Dahl, 37, of the 300 block of Higbee Street, was sentenced to 120 months in prison, to be followed by eight years of supervised release, for possessing with the intent to distribute methamphetamine.
At the sentencing hearing the government presented evidence that Dahl possessed 30.6 grams of methamphetamine. During the hearing, Senior U.S. District Judge Sue E. Myerscough found that Dahl was a career offender, having previously been convicted of seven prior drug related offenses in the state of Illinois. She also found that Dahl was eligible for and received a sentencing enhancement for possessing a firearm at the time of the offense.
Dahl has been in the custody of the U.S. Marshals Service since his arrest in October of 2021.
The statutory penalties for possessing with the intent to distribute five grams of more of methamphetamine after having previously been convicted of a qualifying prior offense, are not less than ten years and not more than life in prison, not more than a $8,000,000 fine, and not less than eight years of supervised release.
The Drug Enforcement Administration, Illinois State Police, and Jacksonville Police Department investigated the case. Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution.
The case against Dahl 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.
West Georgia Man, Under Investigation for Allegations of Drugging Women, Pleads Guilty to Illegally Possessing 26 FirearmsRead the Press Release
COLUMBUS, Ga. – A Talbot County, Georgia, resident who was under investigation for allegedly drugging women admitted to illegally possessing numerous firearms in federal court today.
David Gibson, 59, of Talbotton, Georgia, pleaded guilty to possession of a firearm by a prohibited person today before U.S. District Judge Clay Land. Gibson faces a maximum sentence of 15 years in prison and a $250,000 fine. Sentencing is scheduled for June 14.
According to court documents and other evidence presented in court, as part of a larger investigation—including into allegations that Gibson was drugging women—FBI conducted a lawful search of his residence in Talbot County on Nov. 17, 2022. Agents seized 26 firearms, which consisted of a mix of pistols, shotguns and rifles. The weapons include, but are not limited to, a .45 colt/.410 caliber revolver called “The Judge,” a 9mm semi-automatic pistol, a .22 caliber semi-automatic pistol and a semi-automatic rifle. Gibson admits he is an unlawful user of illegal drugs, making him a prohibited person.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the FBI, DEA, Meriwether County Sheriff’s Office, Harris County Sheriff’s Office and Talbot County Sheriff’s Office.
Assistant U.S. Attorney Chris Williams is prosecuting the case for the Government.
Violent Fayetteville Pimp and Drug Dealer Sentenced to More Than 32 Years in Prison for Kidnapping, Drug and Gun OffensesRead the Press Release
WILMINGTON, N.C. – A Fayetteville man was sentenced today to 390 months in prison for charges associated with kidnapping and possession of illegal substances and firearms between 2018 and 2019. On May 3, 2022, Yomere Juan Busbee, 38, also known as “Ram,” pled guilty to the charge of possession with the intent to distribute several drugs and was later found guilty on September 2, 2022, following a three-day jury trial, of multiple charges involving kidnapping, a drug conspiracy, and firearms.
“The defendant drove violence and exploitation in the Fayetteville community,” said U.S. Attorney Michael Easley. “Busbee led a prostitution and drug ring using physical violence, threats, or drugs to cause women to engage in commercial sex and keep all their profits. He will now spend the next 32 years in prison.”
"It is heartbreaking to know the violence the victims suffered at the hands of Yomere Juan Busbee. We hope this federal prison sentence provides some sense of comfort. The FBI is committed to holding offenders accountable for the violent crimes they commit," said Special Agent in Charge Robert M. DeWitt.
According to court documents and other information presented in court, Busbee and two co-defendants, James Calvin McEachern, Jr. and Merianda Gray held three adult victims, along with a two-year-old child, against their will in a motel room in December of 2018 after Busbee accused the victims of stealing several hundred dollars from him. At the time, Busbee was a convicted felon engaged in dealing drugs and prostituting women, assisted by McEachern. The victims were physically and/or sexually assaulted throughout the several-hour incident during which they also witnessed Busbee brandish a firearm and McEachern brandish a taser to coerce the cooperation of the victims. One of the victims was eventually able to get a message to a family member who called 911. Upon learning that Fayetteville Police Officers were responding to the incident, Busbee and McEachern fled the motel.
Weeks later, in January of 2019, Fayetteville Police Department detectives investigating the kidnapping apprehended Busbee at another Fayetteville motel. A search of the motel room and Busbee’s vehicle revealed two handguns (one of which was stolen) and large amounts of heroin, cocaine, and crack. Gray previously pled guilty to conspiracy to commit kidnapping and was sentenced to 90 months custody, five years of supervised release, and $2,000 in restitution. McEachern also pled guilty to conspiracy to commit kidnapping and was sentenced today to 108 months in prison and 5 years of supervised release for his role in the kidnapping.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Federal Bureau of Investigation and the Fayetteville Police Department investigated the case and former Assistant U.S. Attorney Erin Blondel and Assistant U.S. Attorney Bryan M. Stephany prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00393-M.
U.S. Attorney’s Office Collects over $50 Million in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
COLUMBIA, SOUTH CAROLINA – The U.S. Attorney’s Office for the District of South Carolina collected $50,690,774.37 in criminal and civil actions in Fiscal Year 2022. Of this amount, $11,935,768.98 was collected in criminal actions and $38,755,005.39 was collected in civil actions. The District of South Carolina also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect $10,438,936.69 in criminal and civil cases pursued jointly by these offices.
“Making crime victims whole, forfeiting property used to commit crimes, and recovering money bilked from our taxpayers are critical components of our justice system,” said U.S. Attorney Adair F. Boroughs. “Our Criminal Division, Civil Division, Asset Forfeiture Unit, and Financial Litigation Unit work day in and day out to claw back ill-gotten gains and ensure victims are compensated, and we will continue to dedicate resources to holding wrongdoers financially accountable.”
In August 2022, Philips RS North America, LLC, formerly known as Respironics, Inc., agreed to pay a total of $24,750,000 to resolve False Claims Act allegations that it provided kickbacks to durable medical equipment (DME) suppliers to induce them to choose Respironics’ respiratory equipment for federal healthcare program beneficiaries. Of the $24,750,000 settlement, state Medicaid programs received $2.13 million. A relator (also known as a whistleblower) disclosed the alleged fraud by filing a qui tam action and received approximately $4.3 million of the federal settlement amount. Additionally, Respironics entered into a Corporate Integrity Agreement with HHS-OIG.
The matter was handled by Senior Trial Counsel Daniel A. Spiro of the Fraud Section of the Civil Division and Assistant U.S. Attorneys Beth Warren and Johanna Valenzuela of the District of South Carolina. The lawsuit resolved by this settlement is captioned United States, et al., ex rel. Respiratory Care., LLC v. Respironics, Inc., et al., Case No. 2:19-cv-02913-BHH (D.S.C). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Additionally, in United States v. Lavoie et al, Case No. 4:21-cr-00585-RBH (D.S.C.), the U.S. Attorney’s Office recovered $586,805 in restitution owed to the IRS for tax violations. Daniel A. Lavoie and Enrique R. Reyes pleaded guilty to charges related to employment tax fraud and hiring unauthorized aliens. They operated or assisted in the operation of a construction company that used unlicensed check cashers to facilitate under-the-table cash payments to employees, many of whom were unauthorized aliens. The off-the-books payments defrauded the United States out of applicable employment taxes on the employees. Lavoie and Reyes were each ordered to pay $293,402.50 in restitution for tax violations, all of which has been recovered. The matter was handled by Assistant U.S. Attorneys Carrie Fisher Sherard and Anne Hunter Young of the District of South Carolina.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The U.S. Attorney’s Office in South Carolina, working with partner agencies and divisions, also collected $6,130,476 in asset forfeiture actions in FY 2022. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
###
Two Walton County Men Sentenced to Federal Prison for Drug Trafficking ChargesRead the Press Release
PENSACOLA, FLORIDA – Jason R. Coody, United States Attorney for the Northern District of Florida announced the sentencings of Kenneth Ingram, 62, and Kadeem Ingram, 32, both of DeFuniak Springs. Kenneth Ingram was sentenced to 70 months in federal prison followed by 5 years of supervised release. Kadeem Ingram was sentenced to 150 months in federal prison followed by 5 years supervised release.
Ingrams’ sentences were the result of being convicted following a jury trial on August 17, 2022, for the offenses of conspiracy to distribute and possession with intent to distribute 500 grams or more of cocaine and 28 grams or more of cocaine base and possession with intent to distribute 500 grams or more of cocaine. Kadeem Ingram was also convicted of distribution of cocaine or cocaine base which occurred on two occasions in July 2019.
“This prosecution demonstrates the collaborative efforts of our local, state, and federal law enforcement partners, who work tirelessly to remove addictive and deadly controlled substances from our communities,” stated U.S. Attorney Coody. “We are grateful for their dedicated public service and remain committed in our efforts to investigate and vigorously prosecute criminals bringing drugs into North Florida.”
Evidence introduced at trial revealed that the Ingrams conspired with others to possess with the intent to distribute cocaine and cocaine base. In 2019, the Ingrams took monthly trips to South Florida to procure large quantities of cocaine. The cocaine purchased, which was, in part, converted to cocaine base, was then distributed by Kadeem Ingram and a co-conspirator. A months-long investigation culminated in law enforcement seizing approximately 1.5 kilograms of cocaine from a vehicle the Ingrams possessed on July 13, 2019.
"Let these sentences be a warning to those who are participating in the attempted destruction of our communities by selling this poison," said Walton County Sheriff Michael Adkinson. "Our agency continues our effort not only to make drug arrests but to ensure these dangerous dealers are prosecuted and stay behind bars."
“The success of this investigation is a direct result of the hard work and dedication of the men and women of the DEA in collaboration with our local, state, and federal law enforcement partners,” said DEA Miami Field Division Special Agent in Charge Deanne Reuter. “DEA remains committed to these important partnerships to keep these dangerous drugs out of our North Florida communities and hold those who bring this poison into our neighborhoods accountable for their actions.”
The case was investigated by the Drug Enforcement Administration and the Walton County Sheriff’s Office with the assistance of the Office of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Department of Law Enforcement, the Bay County Sheriff’s Office, the Washington County Sheriff’s Office, the Lynn Haven Police Department, the Panama City Police Department, and the Panama City Beach Police Department. First Assistant United States Attorney Michelle Spaven prosecuted the case.
The prosecution, part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) OCDETF, is a joint federal, state, and local cooperative approach tocombat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to take down criminal organizations and seize assets.
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.
Two Maryland Men Each Sentenced to More Than 12 Years in Federal Prison on Charges Related to a Washington County Armed Heroin and Fentanyl Distribution ConspiracyRead the Press Release
Baltimore – U.S. District Judge Deborah K. Chasanow today sentenced Jarvis Antonio Coleman-Fuller, age 35, of Hagerstown, Maryland and Eric Tyrell Johnson, a/k/a “E,” age 39, of Owings Mills, Maryland, to 156 months and 150 months in federal prison, respectively, each followed by five years of supervised release, on charges related to a conspiracy to distribute controlled substances, specifically fentanyl and heroin in Washington County, Maryland. A federal jury convicted the defendants on November 17, 2022, after a two-week trial
The sentences were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Washington County Sheriff Brian K. Albert; Chief Paul “Joey” Kifer of the Hagerstown Police Department; and Washington County States’ Attorney Gina Cirincion.
According to the evidence presented at trial, beginning in about April 2019 and continuing to about November 2019, the defendants and their co-conspirators conspired to distribute heroin and fentanyl in the Washington County area. During the investigation, law enforcement seized narcotics, including at least 1.3 kilograms of fentanyl, five firearms, hundreds of rounds of ammunition, and more than $12,534 in cash. Witnesses testified that Johnson and Coleman-Fuller distributed fentanyl and illegally possessed firearms. Johnson and Coleman-Fuller both had previous felony convictions and were prohibited from possessing firearms and ammunition. The trial evidence also proved that Coleman-Fuller possessed a firearm in furtherance of his drug trafficking crimes.
Eight co-defendants previously pleaded guilty to their roles in the conspiracy and were sentenced to between 10 years in prison and time served.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the DEA, HSI, the Washington County Sheriff’s Office, the Washington County Narcotics Task Force, and the Washington County State’s Attorney’s Office for their work in the investigation and prosecution Mr. Barron also thanked the Baltimore County Police Department and the Baltimore County State’s Attorney’s Office for their assistance in the case. Mr. Barron commended Assistant U.S. Attorneys Joan C. Mathias and Adeyemi Adenrele, who are prosecuting this 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 and https://www.justice.gov/usao-md/project-safe-neighborhoods-psn.
# # #
Two Individuals Charged with Operating Multimillion-Dollar Pyramid SchemesRead the Press Release
A federal grand jury in Wisconsin returned an indictment that was unsealed yesterday charging an Illinois woman and man with running illegal multimillion-dollar pyramid schemes in at least four different states.
According to court documents, Candice V. Cunningham, 35, and Joseph E. Johnson Jr., 50, both of Chicago, allegedly operated a series of pyramid schemes that were advertised to potential victim-participants under various names, including Wealth Partners Publishing, Wealth Wise, Zero to Profit, 30 Day Success Formula, Lav Label, Beckett Group, and DTR Group. Marketing materials for the pyramid schemes allegedly misrepresented that if a victim-participant invested money in one of the schemes, that victim-participant would receive payments from other participants he or she recruited. The materials also are alleged to have falsely promised that if a victim-participant did not receive payments from other participants, the victim-participant was guaranteed that his or her initial investment would be fully refunded. Most victim-participants allegedly did not receive any payments from other participants and were denied the return of their initial investment. Cunningham, Johnson, and others obtained millions of dollars as a result of their alleged scheme.
Cunningham and Johnson are each charged with one count of conspiracy to commit mail fraud and seven counts of mail fraud. If convicted, they each face a maximum penalty of 20 years in prison for each count.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Gregory J. Haanstad for the Eastern District of Wisconsin, Special Agent in Charge Michael E. Hensle of the FBI Milwaukee Field Office, and Inspector in Charge Ruth Mendonca of the U.S. Postal Inspection Service (USPIS) Chicago Division made the announcement.
The FBI and USPIS are investigating the case.
Trial Attorneys Amanda Swanson and Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Farris Martini for the Eastern District of Wisconsin are prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. Victims can find case updates and additional information at https://www.justice.gov/criminal-vns/case/united-states-v-candice-v-cunningham-et-al.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Individuals Charged with Operating Illegal Multimillion-Dollar Pyramid SchemesRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin joined Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, and other federal officials in announcing that on March 21, 2023, a federal grand jury in Wisconsin returned an indictment that was unsealed charging an Illinois woman and man with running illegal multimillion-dollar pyramid schemes in at least four different states.
According to court documents, Candice V. Cunningham, 35, and Joseph E. Johnson Jr., 50, both of Chicago, allegedly operated a series of pyramid schemes that were advertised to victim-participants under various names including Wealth Partners Publishing, Wealth Wise, Zero to Profit, 30 Day Success Formula, Lav Label, Beckett Group, and DTR Group. Marketing materials for the pyramid schemes allegedly misrepresented that if a victim-participant invested money in one of the schemes, that victim-participant would receive payments from other participants he or she recruited.
The materials also are alleged to have falsely promised that if a victim-participant did not receive payments from other participants, the victim-participant was guaranteed that his or her initial investment would be fully refunded. Most victim-participants allegedly did not receive any payments from other participants and were denied the return of their initial investment. Cunningham, Johnson, and others obtained millions of dollars as a result of their alleged scheme.
Cunningham and Johnson are each charged with one count of conspiracy to commit mail fraud and seven counts of mail fraud. If convicted, they each face a maximum penalty of 20 years in prison for each count.
The FBI and U.S. Postal Inspection Service are investigating the case.
Trial Attorneys Amanda Swanson and Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Farris Martini for the Eastern District of Wisconsin are prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. Victims can find case updates and additional information at https://www.justice.gov/criminal-vns/case/united-states-v-candice-v-cunningham-et-al.
# # #
For Additional Information Contact:
Public Information Officer
414-297-1700
Follow us on Twitter
Teacher accused of child pornography offensesRead the Press Release
HOUSTON – A 29-year-old College Station resident has been arrested for distribution and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Daniel Byrd is expected to make his initial appearance before U.S. Magistrate Judge Andrew M. Edison at 2 p.m. today. Authorities took him into custody yesterday.
Byrd is employed as a teacher at Navasota High School.
The criminal complaint, filed today, alleges Byrd came to the attention of law enforcement upon discovery of a folder containing child pornography shared in a Kik chat group. Byrd was allegedly in control of that folder.
According to the complaint, Byrd used Kik and Telegram to view and download child pornography. He allegedly joined groups dedicated to sharing child pornography and would download content to his MEGA account. Byrd then posted links from his MEGA account into Kik groups, thereby allowing others to access folders containing child pornography, according to the charges.
If convicted, Byrd faces up to 20 years for distribution of child pornography as well a maximum of 10 years for possessing it.
The FBI - Bryan resident agency conducted the investigation with the assistance of College Station Police Department.
Assistant U.S. Attorney Kimberly Ann Leo is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Tampa Man Pleads Guilty to Carrollwood Bank RobberyRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Timothy Paul Longworth (43, Tampa) has pleaded guilty to bank robbery. Longworth faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to court documents, at approximately 9 a.m. on July 8, 2022, Longworth entered a bank on Dale Mabry Highway in Tampa, jumped over the teller’s counter, and demanded that the bank’s employees open their cash drawers. After obtaining approximately $4,000 from the bank, Longworth fled the scene and escaped in a van driven by an indicted co-conspirator, John Kennedy Braun. Braun is awaiting trial for his alleged role in the robbery.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Hillsborough County Sherriff’s Office and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney David P. Sullivan.
St. Paul Man Sentenced to Prison for Straw Purchasing Multiple FirearmsRead the Press Release
MINNEAPOLIS – A St. Paul man has been sentenced to 24 months in prison followed by three years of supervised release for making a false statement during the purchase of a firearm, announced U.S. Attorney Andrew M. Luger.
According to court documents, on March 20, 2021, Clifton Earl Jiles, 31, purchased a Glock Model 27, 40 caliber, semi-automatic pistol, stating on the ATF Form 4473 that he was the actual buyer of the firearm, however he was not. Jiles admitted to making false statements to purchase at least nine firearms. Jiles also admitted he gave one of the firearms to an individual who was legally unable to possess it.
Jiles pleaded guilty on October 20, 2022, to one count of false statement during the purchase of a firearm. Jiles was sentenced yesterday before Senior Judge Michael J. Davis.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case was prosecuted by Assistant U.S. Attorney David P. Steinkamp.
Springfield Woman Pleads Guilty to Stealing Social Security BenefitsRead the Press Release
BOSTON – A Springfield woman pleaded guilty today to stealing Social Security benefits.
Hilda Griffin, 41, pleaded guilty one count of false representations to Social Security Administration. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 30, 2023.
Griffin served as the representative payee for three individuals who were receiving Social Security benefits. Griffin failed to disclose that the individuals stopped living with her in October 2014, and she continued to receive benefits on the individuals’ behalf through December 2014, when she stopped serving as the personal representative. In October 2016, Griffin reapplied to receive Social Security benefits on behalf of the three individuals, despite the fact that they were not in her custody. Griffin then improperly received benefits for two of the individuals through March 2017, and through May 2018 for the third individual. In total, Griffin stole more than $26,970 in benefits intended for the three individuals
The charge of false representations to the Social Security Administration provides for a sentence of up to one year in prison, one year of supervised release and a fine of $1,000. 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 Sharon MacDermott, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistant U.S. Attorney Christopher Morgan of Rollins’ Springfield Branch Office is prosecuting the case.
Springfield Illinois Man Sentenced to 96 Months in Prison for Distribution and Possession of Child PornographyRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois man, Robert Merriman, 25, of the 1000 block of South Fourth Street, has been sentenced to 96 months imprisonment followed by a lifetime term of supervised release, for distribution and possession of child pornography. Merriman was arrested and indicted in March of 2020 and pleaded guilty in October of 2022.
At the sentencing hearing, the government presented evidence that between April of 2019 and August of 2019 the defendant engaged in the receipt, distribution, and trading of child pornography of prepubescent children using multiple online applications. According to the defendant’s own statements, he “owned” a group on Reddit with 900 members where he posted child pornography.
During the hearing, Senior U.S. District Judge Sue E. Myerscough found that the defendant’s conduct included distributing and receiving over six hundred images or videos of child pornography, and that at least one of the images included sexually explicit conduct involving a toddler or portrayed sadistic or masochistic conduct.
The statutory penalties for distribution of child pornography are not less than five years but not more than twenty years in prison, up to life of supervised release, and a $250,000 fine. The statutory penalties for possession of child pornography are not more than ten years in prison, up to life of supervised release, and a $250,000 fine.
The United States Department of Homeland Security, Homeland Security Investigations investigated the case, with assistance from the National Center for Missing and Exploited Children (NCMEC). Assistant United States Attorney Tanner K. Jacobs represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Six Erie Residents Indicted on Drug ChargesRead the Press Release
ERIE, Pa. – Six residents of Erie, Pennsylvania have been indicted by a federal grand jury in Erie on charges of violating federal drug laws, Acting United States Attorney Troy Rivetti announced today.
The two-count Indictment returned on March 14th and unsealed today, named: Larry Tremel Alexander, 46; Dennis Levar Jones, 45; Pernell Tequin Orr, 33; Nicole Grace Fox, 33; Shalin Nicole Pepperman, 41; and Malissa Mae Perry, 41, all of Erie, Pennsylvania.
According to the Indictment presented to the court, from in and around March 2019, and continuing thereafter to in and around October 2022, Larry Alexander, Dennis Jones, Pernell Orr, Nicole Fox, Shalin Pepperman, and Malissa Perry engaged in a conspiracy to distribute methamphetamine, cocaine, heroin, and hydrocodone in the Western District of Pennsylvania and elsewhere. During that same time, Larry Alexander and Malissa Parry conspired to engaged in interstate money laundering transactions intended to promote the drug conspiracy and conceal the proceeds of the drug conspiracy.
The law provides for a maximum total sentence of 120 years in prison, a fine of $8,500,000, or both for Alexander; a maximum total sentence of 60 years in prison, a fine of $5,500,000, or both for Jones and Orr; a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both for Fox and Pepperman; and a maximum total sentence of 40 years in prison, a fine of $1,500,000, or both for Perry. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Pennsylvania State Police Drug Law Unit, Drug Enforcement Administration, Erie Police Department, and Erie County Detectives conducted the investigation leading to the Indictment in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The investigation was also conducted in association with the Northwest Pennsylvania Drug Initiative which was formed following Erie County’s designation as a High Intensity Drug Trafficking Area (HIDTA) in 2021. The HIDTA program was created by Congress in 1988 to coordinate and assist Federal, State, and Local law enforcement agencies in addressing regional drug threats with the purpose of reducing drug trafficking and drug production in the United States. The Northwest Pennsylvania Drug Initiative coordinates personnel and resources between multiple agencies including the Pennsylvania State Police, Federal Burau of Investigation, Erie Police Department, Erie County District Attorney’s office, Erie County Detectives, United States Postal Inspection Service, the Federal Bureau of Investigation Safe Streets Task Force, and other participating agencies.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Russian National “Illegal” Charged with Acting as Agent of a Russian Intelligence Service in the United StatesRead the Press Release
Russian National Fraudulently Obtained Entry to the United States Using Brazilian Alias to Attend a University in the District of Columbia and Obtain Information
WASHINGTON – Sergey Vladimirovich Cherkasov (“Cherkasov”), 37, a national of the Russian Federation who operated as an “Illegal” agent for a Russian Intelligence Service (“RIS”) under the Brazilian alias of Victor Muller Ferreira, was charged today for acting as an agent of a foreign power, visa fraud, bank fraud, wire fraud, and other charges stemming from his illegal activities in the United States. Cherkasov started acting as an Illegal agent in 2012 in Brazil using the Ferreira name, and he moved to the United States in 2018 after obtaining admission to a graduate school program at a University 1, a university located in the District of Columbia. Cherkasov is currently incarcerated in Brazil on fraud charges.
According to a Criminal Complaint filed on March 24, 2023, in the United States District Court for the District of Columbia, between 2012 and April 2022. Cherkasov acted as an illegal agent of a RIS using a Brazilian cover identity. In October 2017, Cherkasov maintained his cover as a Brazilian national to apply to graduate programs in the United States, including University 1, and he obtained admission to University 1 at the behest of the RIS. Using that same fraudulent cover, Cherkasov fraudulently applied for, and obtained, a visa to enter the United States in 2017. In March 2018, Cherkasov obtained admission to University 1, and again fraudulently applied for, and obtained, a student visa to enter the United States. According to the complaint, after entering the United States, Cherkasov fraudulently opened bank accounts at a U.S. bank under the Brazilian alias Victor Muller Ferreira and obtained a U.S. driver’s license from the Commonwealth of Virginia. Cherkasov further made connections to persons of interest in the United States and maintained communications with his RIS handlers. While in the United States, Cherkasov obtained information about U.S. persons that he passed to his RIS handlers. Cherkasov obtained his graduate degree using the fraudulent Ferreira identity from University 1, and left the United States in or about May 2020. Cherkasov continued his activities for the RIS after leaving the United States, and he continued to use his connections from University 1 to obtain information about U.S. foreign policy to provide to the RIS in 2021 and 2022. Cherkasov attempted to obtain employment at the International Criminal Court in The Hague, Netherlands, in April 2022. After being turned away by Dutch officials, Cherkasov returned to Brazil where he was arrested on fraud charges stemming from his use of the false Ferreira identity.
“When foreign adversaries, such as Russia, send undercover operatives into the United States, we will find them and prosecute them to the fullest extent of the law,” said US Attorney Matthew M. Graves. “Such adversaries seek to operate in secret to undermine our national security in ways that could jeopardize the safety of our citizens. With our partners in the FBI, we will root out anyone who intends to do harm to the United States and bring them to justice.”
“For years, Cherkasov worked as an illegal agent for a Russian intelligence service and committed fraud against the United States,” said David Sundberg, Assistant Director in Charge of the FBI’s Washington Field Office. “Today’s criminal complaint is a result of the hard work, determination, and collaborative efforts of the FBI and our international partners in a complex investigation holding him accountable for his attempts to collect intelligence on the United States at the behest of the Russian government.”
This investigation was conducted by the FBI’s Washington Field Office and coordinated by the FBI’s Counterintelligence Division.
Assistant U.S. Attorney Tejpal S. Chawla and Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case, with support from Paralegals Michael Watts and Mariela Andrade.
Recruiter and Director of Money Mule Sentenced to Two Years in Prison for Participation in Business Email Compromise SchemeRead the Press Release
TRENTON, N.J. – An Essex County, New Jersey, woman was sentenced to 24 months in prison for her role in a business email compromise (BEC) scheme that affected numerous corporate and individual victims throughout the nation, U.S. Attorney Philip R. Sellinger announced today.
Lucy Beswick, 31, of Newark, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging her with one count of conspiracy to commit wire fraud. Judge Sheridan imposed the sentence on March 23, 2023, in Trenton federal court.
According to documents filed in this case and statements made in court:
From July 2017 to March 2018, Beswick and others participated in a BEC scheme designed to enrich its conspirators financially by stealing more than $400,000 in proceeds from individual and corporate victims. Conspirators recruited money mules to provide their personal identifying information in connection with the incorporation of sham businesses with the New Jersey Department of the Treasury under the money mules’ names. Under the instruction of conspirators, including Beswick, the money mules then opened bank accounts under the names of the sham corporations.
A related cyber-attack arm of the scheme involved the creation of email addresses mimicking, but differing slightly from, legitimate email addresses of supervisory employees of various victim companies, of vendors that did business with those victim companies, of mortgage lenders and brokers that dealt with individual victims in connection with real estate purchases, and of advisors and accountants who performed financial services for their clients. Conspirators sent emails from these addresses to several victims, which appeared to request the payment of legitimate invoices or debts owed by the victims, but in actuality deceived the victims into transferring funds by wire into the bogus bank accounts. After the victims complied with the fraudulent wiring instructions, Beswick and others, under the direction of other conspirators, quickly debited from the bank accounts they had opened and which they controlled, thousands of dollars in cash through in-person and ATM withdrawals and debit card purchases, while also transferring by wire from the bogus bank accounts to foreign bank accounts controlled by conspirators hundreds of thousands of dollars in stolen funds. Beswick ordinarily kept a fraction of the ill-gotten proceeds as compensation.
In addition to the prison term, Judge Sheridan sentenced Beswick to three years of supervised release and ordered her to pay $328,467 in restitution and $15,000 in forfeiture.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James D. Dennehy in Newark, and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Jose Riera, with the investigation leading to the sentencing.
The government is represented by Eric A. Boden, Attorney in Charge of the Trenton Office of the U.S. Attorney’s Office.
Raleigh County Woman Sentenced for Role in Beckley-to-Philadelphia Firearms Trafficking ConspiracyRead the Press Release
BECKLEY, W.Va. – Sequoyah Swain, 22, of Beckley, was sentenced today to five years of federal probation for her role in a conspiracy to traffic over 140 firearms from the Beckley area to Philadelphia, Pennsylvania.
According to court documents and statements made in court, Swain admitted to recruiting straw purchasers to obtain firearms for a trafficking conspiracy led by Bisheem Jones, also known as “Bosh,” 37, of Philadelphia. Between early 2020 and mid-2021, Jones and his co-conspirators obtained over 140 firearms purchased in the Beckley area which they took back to Philadelphia to sell for profit. Approximately 45 of the trafficked firearms have been recovered at crime scenes primarily in Philadelphia and have been connected to two homicides, crimes of domestic violence, and other violent offenses.
Jones paid Swain with drugs and money to recruit straw purchasers. Swain also acted as an intermediary for Jones by accompanying straw purchasers to Beckley-area stores, telling them which firearms to buy, and taking the purchased firearms to Jones.
Jones or an intermediary would provide the money for the firearms purchases. The straw purchasers falsely certified on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Record Form 4473 that they were purchasing the firearms for themselves when they knew they were buying them for Jones and his trafficking conspiracy.
Swain pleaded guilty to aiding and abetting another individual in making false statements in acquisition of firearms, for the straw purchase of a Ruger Model Ruger 57, 5.7x28mm 5.7 caliber pistol for Jones in Beckley on April 18, 2021.
Swain is among 18 defendants who pleaded guilty in connection with the firearms trafficking. After five days of trial, a federal jury found Jones guilty on December 16, 2022, of conspiracy to travel interstate with the intent to deal in firearms without a license, conspiracy to commit money laundering, and interstate travel with the intent to deal in firearms without a license. Jones is scheduled to be sentenced on April 28, 2023, and faces a maximum penalty of 35 years in prison.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Philadelphia Police Department.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Negar M. Kordestani and Steve Loew prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-81.
###
Raleigh County Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Treyvon Pankey, 22, of Beckley, was sentenced today to three years and 10 months in prison, to be followed by three years of supervised release, for distributing methamphetamine.
According to court documents and statements made in court, on February 17, 2022, Pankey sold approximately 27 grams of methamphetamine to a confidential informant at a Beckley residence. Pankey admitted to the transaction and also admitted to selling approximately 44 grams of methamphetamine and an AR-15, .223-caliber semi-automatic rifle to a confidential informant at a Beckley residence on March 8, 2022.
On June 8, 2022 law enforcement officers executed a search warrant at a Beckley residence where Pankey was staying. Officers found a quantity of fentanyl, a digital scale, and a Glock model 41, .45-caliber semi-automatic pistol. Pankey admitted to officers that he possessed the firearm and had been selling approximately 3.5 grams of methamphetamine daily from January 22, 2022, until his arrest on June 8, 2022. Pankey further admitted that he sold approximately 3.5 grams of cocaine base, also known as “crack,” daily for an unknown period of time.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Andrew D. Isabell and Alex Hamner prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-116.
###
Petersburg Armed Drug Trafficker Convicted by Federal JuryRead the Press Release
RICHMOND, Va. – A federal jury convicted a Petersburg man today of possessing 50 grams or more of methamphetamine and cocaine hydrochloride, possession of firearms in furtherance of that drug trafficking crime, and possession of firearms by a convicted felon.
According to court records and evidence presented at trial, Melvin Leon Myrick, 24, crashed a Silver Nissan near Pine Forest Drive in Colonial Heights after fleeing an attempted traffic stop. When a Colonial Heights Police Department officer came upon the scene, Myrick exited the driver side door, went to the rear of the car, and then ran to the passenger door before fleeing into the woods.
An inventory search of the car resulted in the recovery of over 130 grams of methamphetamine and 45 grams of cocaine hydrochloride from passenger side floorboard, two loaded Glock, Model 22 semiautomatic pistols, an AK-style pistol, and digital scales. A search warrant obtained and executed on Myrick’s cellular phone revealed ongoing drug trafficking and connection to the firearms recovered from the Silver Nissan.
Myrick faces a mandatory minimum of 10 years in prison for the possession with intent to distribute methamphetamine and a maximum penalty of life in prison. For the conviction of possession of firearms in furtherance of drug trafficking, Myrick faces a mandatory minimum of 5 years in prison and maximum of life in prison. For the possession of firearms by a convicted felon he faces a maximum of 10 years in prison. Myrick will be sentenced on July 28. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Mike Weddel, Acting Special Agent in Charge of the ATF’s Washington Field Division; and William Anspach, Chief of Colonial Heights Police, made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the verdict.
Assistant U.S. Attorneys Kenneth R. Simon, Jr. and Peter S. Duffey are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-148.
Pawn Shop Owner Pleads Guilty to $744,000 Scheme to Sell over 14,000 Stolen Items OnlineRead the Press Release
KANSAS CITY, Mo. – The owner of a Kansas City, Mo., pawn shop pleaded guilty in federal court today to engaging in a $744,000 scheme to fence more than 14,000 stolen items and sell them on eBay.
Dennis G. Russell, 65, waived his right to a grand jury and pleaded guilty before U.S. District Judge Howard F. Sachs to a federal information that charges him with one count of conspiracy to transport stolen property across state lines.
During the scheme, Russell was one of two members of the board of directors of Rison of KC, Inc., which does business as National Pawn at 6223 E. Truman Road in Kansas City, Mo. Rison of KC is also charged with the same offense but has entered into a deferred prosecution agreement with the U.S. Attorney’s Office.
By pleading guilty today, Russell admitted that he participated in a conspiracy from Jan. 1, 2017, to July 27, 2021, to purchase items he knew had been stolen from various retail locations in the Kansas City metropolitan area, then sell those items on eBay. Russell shipped approximately 14,672 stolen items across state lines, resulting in gross proceeds of approximately $744,222.
Multiple individuals, known as “boosters,” stole items from Target, Walmart, Home Depot, Lowe’s, CVS, Walgreens, and other retail locations. They sold such stolen items as robot vacuum cleaners, textbooks, Roku and Google Chromecast television streaming devices, and Crest Whitestrips to Russell at a fraction of their retail price. Russell then posted the stolen items for sale on eBay, using one of two accounts, and shipped them to purchasers in numerous other states.
On Oct. 21, 2021, law enforcement officers executed a search warrant at National Pawn and seized 3,400 items, which Russell and National Pawn do not contest were stolen property.
Rison of KC has entered into a deferred prosecution agreement with the U.S. Attorney’s Office. Under the terms of that agreement, the business admits to the criminal conspiracy and accepts responsibility for the acts of its officers and employees. The government will defer prosecution of Rison of KC for that conduct during the three-year term of the agreement and will not continue with prosecution if the business fully complies with its obligations under the agreement, which include:
- National Pawn must keep a current list of all employees, all financial accounts, and all auction websites it utilizes;
- National Pawn must obtain and retain a verifiable third-party receipt for any new product purchased;
- Russell must not work at or profit from National Pawn.
Russell must forfeit to the government any property obtained from the proceeds of this offense, including a money judgment of $744,222. Under the terms of his plea agreement, Russell will not work at National Pawn, direct the operations of National Pawn, or profit from National Pawn or any other pawn shop while serving any term of probation or supervised release.
Under federal statutes, Russell is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Nicholas Heberle, Matthew Wolesky, and Anthony Brown. It was investigated by the Kansas City, Mo., Police Department and the U.S. Postal Inspection Service.
Palm Beach County Man Sentenced to Twelve Years in Federal Prison for Possession of A Firearm by A FelonRead the Press Release
GAINESVILLE, FLORIDA – Tzaddi Lamed D’Marcus Allen, 32, of Palm Beach County, Florida, was sentenced to twelve years in federal prison followed by five years’ supervised release for possession of a firearm and ammunition by a convicted felon. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“The collaborative efforts of our partners in the Gainesville Gun Violence Initiative continue to produce impactful results, and we will continue working tirelessly to make North Florida safer,” said U.S. Attorney Coody. “This sentence ensures that our community will be safer and sends a message that there are real and severe consequences for federal firearm offenses.”
“The Men and Women of the Alachua County Sheriff’s Office, in concert with our local, state and federal partners, will continue to pursue violent criminals who unlawfully possess firearms, to ensure that the citizens and visitors of this great county remain safe,” said Alachua County Sheriff Clovis Watson, Jr.
On the afternoon of January 31, 2022, a traffic stop was conducted by an Alachua County Sheriff’s Office deputy, on a vehicle that Allen was operating. During the traffic stop, deputies confirmed that Allen did not have a valid driver’s license and that the vehicle’s window tint was darker than the legal limit of twenty eight percent. Deputies further detected the odor of marijuana emanating from the vehicle’s interior. During a probable cause search of the vehicle, deputies located marijuana throughout the vehicle and noticed that a piece of center console paneling appeared to have been removed and put back into place. A deputy removed the piece of panel and discovered a bag containing approximately 8 grams of a powdery substance (which was later identified as a combination of fentanyl and synthetic cathinone) sitting on top of a Canik 9-millimeter pistol. The pistol had a live round in the chamber, seventeen additional rounds of ammunition in the magazine, and had previously been reported stolen. Deputies on scene determined that Allen was a multi-time convicted felon and arrested him for state charges of possession of a firearm by a convicted felon and possession of a controlled substance. Upon arrival at the Alachua County Jail, Allen alerted deputies that he had another small baggie of the powdery substance concealed on his person.
Following his arrest, the Bureau of Alcohol, Tobacco, and Firearms adopted the case for federal prosecution and conducted a follow-up investigation. That additional investigation included sending evidence to the Florida Department of Law Enforcement’s crime lab, which recovered DNA consistent with Allen from the firearm. Allen had prior felony convictions including Attempted Robbery, Aggravated Battery on Person 65 Years or Older, Fleeing and Eluding Law Enforcement, Sale of Cocaine, and Sale of Heroin within 1000 feet of a Convenience Business. Allen had only been out of prison for approximately one month when the traffic-stop and arrest occurred.
This federal conviction resulted from the joint efforts of local, state, and federal law enforcement agencies that form the Gainesville Gun Violence Initiative (GVI). The Gainesville GVI was established in April 2019, by the United States Attorney’s Office for the Northern District of Florida in an effort to stem the escalating gun violence in Gainesville and the surrounding area. As GVI partners, the State Attorney’s Office for the Eight Judicial Circuit, the Bureau of Alcohol, Tobacco and Firearms, the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Gainesville Police Department, the Alachua County Sheriff’s Office, the Alachua Police Department, the University of Florida Police Department, and the Florida Department of Corrections share this commitment to protecting public safety.
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.
Pakistani Hunting Outfitter and Galt Big Game Hunter Charged with Conspiring to Smuggle Endangered Ladakh Urial Trophy into the United StatesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment yesterday against Pir Danish Ali, 43, of Pakistan, and Jason Keith Bruce, 49, of Galt, charging both defendants with conspiracy to violate the Endangered Species Act, to make false statements, and to smuggle goods into the United States, and charging Bruce with smuggling and violating the Endangered Species Act, U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed upon Bruce’s arrest this morning.
According to court documents, Pir was the CEO of a hunting outfitter and guide company based in Pakistan, and Bruce was a recreational big game hunter who hunted as a client of Pir’s company. Beginning in February 2016, Pir and Bruce conspired to hunt a Ladakh urial, an endangered wild sheep, in Pakistan and smuggle the resulting trophy from Pakistan to the United States. (“Trophy” means a whole animal, or a readily recognizable part of an animal, that is prepared for display.) Shortly before the hunt, Pir told Bruce that a recent survey had shown a local population of only 180 animals. The defendants agreed that the export of the Ladakh urial trophy would be achieved through bribery and fraud by declaring it to Customs and Border Protection and the U.S. Fish and Wildlife Service (FWS) as a different species and presenting forged documents purporting to be issued by Pakistani authorities. Bruce paid Pir $50,000 for the hunt, during which he shot a Ladakh urial.
On March 29, 2018, Bruce flew into San Francisco International Airport from Pakistan carrying eight trophies in his personal baggage, including the Ladakh urial trophy. U.S. Customs and Border Protection agents stopped him and alerted the FWS. After the FWS seized the trophy, Pir and Bruce conspired together to lie and did in fact lie to the FWS agents. Further investigation revealed that, between 2013 and 2018, at least 25 hunters who had hunted with Pir’s company presented forged documents to import at least 97 hunting trophies into the United States.
This case is the product of an investigation by the U.S. Fish and Wildlife Service’s Office of Law Enforcement. Assistant U.S. Attorney Katherine T. Lydon is prosecuting the case.
If convicted of the conspiracy, Pir and Bruce face a maximum sentence of five years in prison and a $250,000 fine. If convicted of the smuggling charge, Bruce faces a maximum statutory penalty of 20 years in prison and a $250,000 fine, and if convicted of the violation of the Endangered Species Act, Bruce faces a prison term of up to one year and a fine of up to $50,000 or both. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Northampton County Man Sentenced to 151 Months in Prison for CyberstalkingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 23, 2023, Anthony Elonis, age 39, formerly of Bethlehem, Pennsylvania, was sentenced to 151 months in prison by U.S. District Court Judge Edward G. Smith, in Easton, Pennsylvania, for cyberstalking.
According to United States Attorney Gerard M. Karam, Elonis was found guilty after a five-day jury trial in Easton in August 2022, of three counts of cyberstalking involving three separate victims, including a government employee in the Eastern District of Pennsylvania, Elonis’ former girlfriend, and Elonis’ ex-wife. Between 2018 and 2021, Elonis sent numerous threatening, harassing and intimidating emails directly to the governmental employee, and sent or posted numerous threatening, harassing and intimidating communications via Twitter, text message, voice mail or other form of electronic communication regarding the governmental employee, his former girlfriend, and his ex-wife.
The matter was specially assigned to the United States Attorney’s Office in the Middle District of Pennsylvania for prosecution.
The charges resulted from an investigation conducted by the Federal Bureau of Investigation, Allentown Office. Assistant U.S. Attorneys Robert J. O’Hara and Geoffrey MacArthur prosecuted the case.
###
Morris County Woman Charged in $10 Million Scheme to Commit Health Care FraudRead the Press Release
NEWARK, N.J. – A Morris County woman has been charged for her role in a conspiracy to commit health care fraud, U.S. Attorney Philip Sellinger announced today.
Aysha Khan, 33, of Kinnelon, New Jersey, is charged by indictment with one count of conspiracy to commit health care fraud and four counts of health care fraud. She was arrested today and will have her initial appearance this afternoon before U.S. Magistrate Judge Edward S. Kiel in Newark federal court.
According to documents filed in this case:
Khan controlled and operated a network of “specialty pharmacies” with locations in New Jersey, New York, Texas, and Florida. These pharmacies processed expensive medications used to treat various conditions, including Hepatitis C, Crohn’s disease, and rheumatoid arthritis.
At Khan’s direction, the pharmacies billed health insurance providers for medications that the pharmacies did not actually provide to patients. While the pharmacies generally provided medications for initial prescriptions it received, it systematically and intentionally billed for refills for those same medications without ever dispensing them. On certain occasions, the pharmacies also billed for initial prescriptions without ever shipping or dispensing them.
From 2015 through 2022, the Khan Pharmacies received over $10 million in reimbursement payments from Medicare for medications the pharmacy not only failed to give patients, but never ordered or had in stock.
The conspiracy to commit healthcare fraud count and the substantive healthcare fraud counts charged are each punishable by a maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents and an analyst of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Daniel B. Brubaker, New York Division; special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; and the Kinnelon Police Department, under the direction of Chief Joseph Napoletano, with the investigation leading to the charges and arrest.
The government is represented by Assistant U.S. Attorney George L. Brandley of the Health Care Fraud Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
khan.indictment_redacted.pdfMorgan County Child Molester Sentenced to 30 Years in Federal Prison for Sexual Exploitation and Distribution of Child Sexual Abuse MaterialRead the Press Release
INDIANAPOLIS- Justin Herrington, 32, of Whitaker, Indiana, has been sentenced to 30 years in federal prison after pleading guilty to sexual exploitation of a child and distributing and possessing child sexual abuse material.
According to court documents, in 2012, Herrington sexually abused Minor Victim 1, a 5-year-old child in his care, custody, or control, in Morgan County, Indiana. Herrington’s abuse of the child was discovered in 2012 and he was arrested and charged in state court. He was convicted of child molestation in 2014 and spent 446 days in prison before being released to serve the remainder of his sentence on probation. Herrington was also ordered to register as a sex offender against children for the remainder of his life.
After his release from prison, Herrington began distributing, receiving, and possessing child sex abuse material—including a previously unknown image he produced of Minor Victim 1 engaged in sexually explicit conduct in approximately 2012, when he was sexually abusing the child.
On March 6, 2019, law enforcement officials received a report from a drugstore employee who believed that Herrington had submitted images of child sexual abuse to the store for photo processing. Law enforcement officers arrested Herrington later that day when he arrived at the store to pick up the images. Further investigation of Herrington’s digital devices uncovered numerous images and videos of child sexual abuse material of prepubescent children under the age of 12, including the image of Minor Victim 1. Many of the images, messages, and search terms located on Herrington’s devices demonstrate a sexual obsession with children in diapers.
Forensic investigation of all of Herrington’s digital devices proved that he belonged to a Russian-based website known by law enforcement for spreading child sexual abuse material. The investigation also revealed that Herrington was in the process of grooming a 13-year-old girl via Chat Hour and Snapchat. Online, Herrington claimed to be an 18-year-old and nearly enticed the girl to send him sexually explicit images of herself and meeting him in person.
At the time of his arrest, Herrington was in a relationship with an individual that had a 5-year-old child, in violation of the terms of his release for child molestation. Information on Herrington’s devices revealed that he attempted to get jobs at local daycares and as a babysitter, and even responded to a Craigslist advertisement seeking a babysitter for a 4-year-old.
On or about August 6, 2019, Herington was charged with federal offenses, and ordered detained pending trial. In August 2021, while in federal custody, Herrington used detention facility mail to send sexually suggestive depictions of children wearing diapers, including Minor Victim 1, that were produced to his attorneys during his state prosecution to at least 19 other inmates around the country.
Zachary A. Myers, United States Attorney for the Southern District of Indiana, John Richards, Chief of Martinsville Police Department, Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office, and Doug Carter, Indiana State Police Superintendent made the announcement.
“For years, this insatiable child sex predator demonstrated utter disregard for the safety and dignity of children to satisfy his own sick lusts,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “It is especially chilling that he was grooming an additional victim online and repeatedly sought to work in daycares and as a babysitter. The sentence imposed today demonstrates that a civilized society will simply not tolerate these heinous crimes against our children. I commend the Martinsville Police Department, Indiana State Police, and the Indiana Internet Crimes Against Children Task Force for working together to remove this dangerous pedophile from our community.”
Martinsville Police Department, Indiana State Police, the Indiana Internet Crimes Against Children Task Force, and FBI investigated the case. The Morgan County Prosecuting Attorney’s Office prosecuted the related state cases. The sentence was imposed by U.S. District Court Judge James R. Sweeney. Judge Sweeney also ordered that Herrington be supervised by the U.S. Probation Office for life following his release from federal prison. Herrington must continue to register as sex offender where he lives, works, and goes to school as required by law and has been ordered to pay restitution to Minor Victim 1.
U.S. Attorney Myers thanked Assistant United States Attorney Tiffany J. Preston, who prosecuted this case.
This investigation was conducted by the Indiana Internet Crimes Against Children (ICAC) Task Force, a partnership of federal, state, and local law enforcement agencies led by the Indiana State Police. The Task Force is dedicated to investigating and prosecuting crimes involving the technology-facilitated sexual exploitation of children and the trafficking of child sexual abuse material. Each year, Indiana ICAC investigators evaluate thousands of tips, investigate hundreds of cases, and rescue dozens of children from ongoing sexual abuse. In fiscal year 2019, the most recent year for which data is available, the Southern District of Indiana was second out of the 94 federal districts in the country for the number of child sexual exploitation cases prosecuted.
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 U.S. Attorneys’ Offices and the 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
###
Miami Man Pleads Guilty to Retaliatory Attack on Federal Cooperating WitnessRead the Press Release
MIAMI – Aurelio Luis Perez, a 55-year-old Miami resident, has pled guilty to retaliating against a witness in violation of Title 18, United States Code, Section 1513(b)(2). Perez faces a maximum term of imprisonment of up to 20 years.
Perez assaulted a federal cooperating witness at a local club on September 4, 2021, just several days after the victim was identified as a government witness in a federal criminal trial. Specifically, Perez followed the victim into the restroom and assaulted him at the urinal while yelling, “This is for snitching” in Spanish. As a result of the assault, the witness suffered inflammation, bruising, lacerations to his lip, and a cracked front tooth. The victim did not know Perez. Court records indicate that Perez was a close associate of another individual under investigation at the time of the attack. Perez’s associate was subsequently charged for his role in allegedly distributing over $230 million of adulterated HIV medication.
U.S. District Judge Robert N. Scola will sentence Perez on June 5 in Miami, Florida.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Miami Region; and Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Atlanta Region, made the announcement.
HHS-OIG Miami and FDIC-OIG investigated the case. Assistant United States Attorney Timothy Abraham of the Southern District of Florida and Trial Attorney Alexander Thor Pogozelski of the Criminal Division’s Fraud Section prosecuted the case.
An indictment contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
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 22-cr-20253.
###
Mequon Man Sentenced to 18 Months’ Imprisonment for Paying Healthcare KickbacksRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that, on March 21, 2023, Alexander Shister was sentenced to 18 months’ incarceration for paying healthcare kickbacks in violation of the Anti-Kickback Statute. Shister was also ordered to pay nearly $1 million in restitution to Medicare and Medicaid as well as a $40,000 fine.
Shister owned four Milwaukee-area pharmacies. Beginning in 2016, Shister engaged in a nearly two-years’ long scheme to pay his co-defendant, David Guerrero, kickbacks in exchange for referrals of Medicare and Medicaid patients to Shister’s pharmacies for expensive compound pain creams. Shister paid Guerrero $100 for each patient referral. Guerrero was not a licensed medical provider, but he worked at two Milwaukee-area clinics and used his access at the clinics to order the pain creams from Shister’s pharmacies, often without the patients’ knowledge or consent. As a result of the scheme, Medicare and Medicaid paid Shister’s pharmacies about $1 million for medically unnecessary pain creams, including creams not even received by patients. Shister paid Guerrero over $100,000 in kickbacks during the scheme. Guerrero was previously sentenced to 32 months’ imprisonment for his role in the kickback scheme with Shister as well as a second kickback scheme involving a local medical laboratory company.
At sentencing, United States District Judge J.P. Stadtmueller emphasized the seriousness of Shister’s crime, including Shister’s breach of trust and abuse of the Medicare and Medicaid programs. Judge Stadtmueller further noted that owners of medical providers like Shister have an enhanced responsibility to ensure that their billings to Medicare and Medicaid comply with the law, rather than take advantage of the system. In addition to his sentence, Shister will also be excluded from participation in the Medicare and Medicaid programs. He has also shut down or sold his pharmacies.
“Pharmacies and other medical providers simply cannot pay kickbacks in exchange for patient referrals. As this case demonstrates, kickbacks result in Medicare and Medicaid paying for unnecessary services, rather than services that doctors determine patients actually need or that patients actually want,” said United States Attorney Haanstad. “Shister abused the trust placed in his pharmacies by the Medicare and Medicaid programs to line his own pockets. This office is committed to working with our federal, state, and local partners to prevent kickback schemes and other frauds against the Medicare and Medicaid programs.”
"Health care fraud affects everyone and causes tens of billions of dollars in losses each year," said Michael E. Hensle Special Agent in Charge of the FBI Milwaukee Field Office. "Health care fraud is a federal crime and erodes the stability of our health care system. The FBI will utilize all resources necessary to pursue those who exploit the medical system for personal gain over the needs of patients."
“The payment of kickbacks in exchange for referrals can undermine the trust that we place in our nation’s medical providers and can also result in the delivery of unnecessary and costly medical services and supplies,” said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services Office of Inspector General. “Our agency is committed to working with our law enforcement partners to ensure that those who engage in these activities are held accountable.” [insert quotes from FBI and HHS OIG]
The Federal Bureau of Investigation and the Office of the Inspector General, Department of Health and Human Services investigated the case. Assistant United States Attorneys Benjamin Proctor and Michael Carter handled the prosecution.
###
For further information contact:
Public Information Officer
(414) 297-1700
Follow us on Twitter
Mayor of Wildwood Admits Assisting in Preparation of Fraudulent Tax ReturnsRead the Press Release
CAMDEN, N.J. – The mayor of Wildwood, New Jersey, today admitted that he aided and assisted in the preparation and presentation of false and fraudulent tax returns, U.S. Attorney Philip R. Sellinger announced.
Peter J. Byron of Wildwood, 67, pleaded guilty before U.S. District Court Judge Karen M. Williams in Camden federal court to an information charging him with two counts of willfully aiding and assisting in the preparation and presentation of fraudulent tax returns to the IRS for calendar years 2017 and 2018.
According to documents filed in this case and statements made in court:
From January 2017 through December 2018, Byron served as a commissioner for the city of Wildwood, in charge of the Revenue and Finance departments. From June through August of 2017, Byron sent multiple emails to the managing partner of a law firm located in Gloucester County, seeking assistance in obtaining a job. Byron received a letter in October 2017 on the letterhead of the managing partner’s law firm which purported to set forth an employment offer to Byron from a company. According to the terms of the October 2017 letter, Byron was to receive an annual salary from the company for working as a salesman.
From October 2017 through September 2018, Byron received $40,425 in payments from the company. He did not report this income on his tax returns for calendar years 2017 and 2018, resulting in a tax loss to the I.R.S.
The tax charges each carry a maximum potential sentence of three years in prison and a maximum fine of $250,000 or twice the gross amount of any pecuniary gain that any persons derived from the offense, whichever is greater. Sentencing is scheduled for Aug. 2, 2023.
U.S. Attorney Sellinger credited the FBI Atlantic City Public Corruption Task Force which includes the agencies the Cape May County Prosecutor’s Office, and New Jersey State Police, under the direction of FBI Special Agent in Charge James E. Dennehy in Newark; and special agents of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
byron.information.pdfMaryland Man Sentenced for Trafficking Firearms with Obliterated Serial NumbersRead the Press Release
ALEXANDRIA, Va. – A Maryland man was sentenced today to 25 months in prison for trafficking firearms with obliterated serial numbers.
According to court documents, between September 2020 and October 2021, Chase O’Neil Pulliam, 25, purchased at least 49 firearms from federal firearms licensees throughout the Eastern District of Virginia. After purchasing the firearms, Pulliam transported the firearms across state lines to Maryland and Washington, D.C., where he re-sold the firearms to other individuals. At least two individuals who purchased firearms from Pulliam were convicted felons prohibited from possessing firearms. In furtherance of his firearms trafficking operation, an associate of Pulliam obliterated the serial numbers from approximately 35 firearms on Pulliam’s behalf.
At least eight of the firearms purchased and re-sold by Pulliam were recovered at crime scenes throughout Maryland and Washington, D.C. One of the firearms purchased and re-sold by Pulliam was recovered in connection with a domestic violence incident in Prince George’s County, Maryland. Another firearm purchased and re-sold by Pulliam was recovered during a joint federal and local narcotics investigation in the Washington, D.C.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Mike Weddel, Acting Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge T. S. Ellis, III.
Assistant U.S. Attorney Nicholas J. Patterson and Special Assistant U.S. Attorney Colin W. Trundle prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-211.
Lowell Woman Pleads Guilty to Selling FirearmsRead the Press Release
BOSTON – A Lowell woman pleaded guilty to selling firearms to a prohibited person.
Leticia Alcantara, 25, pleaded guilty on March 22, 2023 to one count of selling or transferring firearms to a prohibited person. U.S. District Court Judge Angel Kelley scheduled sentencing for June 5, 2023. Alcantara was charged on Aug. 1, 2022.An investigation began in October 2021 which identified Alcantara as a firearms dealer in Massachusetts. On Feb. 15, 2022, Alcantara offered to sell a 9mm handgun to two individuals who, unbeknownst to her, were cooperating with law enforcement. On March 15, 2022, Alcantara met with the cooperating witnesses at a prearranged meeting location in a parking lot in Falmouth to conduct the transaction. There, Alcantara was observed entering the vehicle occupied by the cooperating witnesses and produced a black trash bag from her purse containing the firearm.
On multiple occasions in July 2022, Alcantara communicated with one of the cooperating witnesses regarding additional firearms she was offering for sale, including sending photos of: a 9mm handgun on July 2, 2022; a small holster-grip revolver and one large black pistol on July 7, 2022; and two handguns on July 9, 2022. At the direction of law enforcement, the cooperating witness agreed to purchase the last two handguns Alcantara offered for sale. On July 12, 2022, Alcantara met with the cooperating witnesses during a controlled purchase in Plymouth. There, Alcantara was observed entering the vehicle and producing one .45 caliber pistol and one 9mm pistol from a dark colored bag.
On July 12, 2022, Alcantara sent additional photos of two firearms for sale which, at the direction of law enforcement, the cooperating witness agreed to purchase. On July 19, 2022, Alcantara arrived at the same prearranged meeting location in Plymouth where she entered the cooperating witnesses’ vehicle and provided two 9mm pistols. Following the transaction, Alcantara continued communicating with the cooperating witness about additional firearms for sale, including a handgun and an AR-15 rifle. Alcantara was arrested on July 29, 2022.
The charging statute provides for a sentence of up to 15 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance in the investigation was provided by the Plymouth and Falmouth Police Departments. Assistant U.S. Attorney Charles Dell’Anno of Rollins’ Major Crime Unit is prosecuting the case.
Longtime Zapata resident indicted on multiple charges in fraud schemeRead the Press Release
LAREDO, Texas – A 45-year-old resident of Zapata is now in custody for defrauding financial institutions as well as state and federal welfare programs, lying to federal authorities and using someone else’s identity, announced U.S. Attorney Alamdar S. Hamdani.
Authorities arrested Mirza Lydia Rodriguez today. She is expected to appear before U.S. Magistrate Judge Diana Song Quiroga March 27 at 9:30 a.m.
A federal grand jury returned 13-count indictment March 21, which was unsealed upon her arrest.
According to the charges, Rodriguez submitted fraudulent applications to the Laredo Housing Authority’s (LHA) Housing Choice Voucher Program (HCVP).
The HCVP is the federal government’s major program for assisting very low-income families, the elderly and disabled to afford decent, safe and sanitary housing in the private market. Public housing agencies administer the housing choice vouchers who receive the finds from Housing and Urban Development (HUD). The LHA is the local agency responsible for the administration of the HCVP.
When submitting applications to the LHA, Rodriguez allegedly omitted material information relevant to considering whether she qualified for housing assistance. The charges allege she submitted paperwork to LHA under the guise that someone else was the property owner and landlord of where she was living, when this was not true. She then submitted a direct deposit authorization using this same falsified information for the property’s landlord, but included banking information allegedly belonging to herself, according to the indictment.
Falcon International Bank was responsible for maintaining LHA’s funds, according to the indictment. The bank would allegedly disburse housing and utility assistance payments, which are, under the HCVP, meant for the property’s landlord. However, the charges allege the funds were directly deposited into Rodriguez’s account.
According to the indictment, Rodriguez allegedly received more than $30,000 over the course of five years.
Rodriguez is also charged with three counts of wire fraud in connection with applications to the Texas Workforce Commission (TWC). The TWC is the state agency tasked with administering Texas’ unemployment insurance program.
Rodriguez allegedly represented herself as a tax preparer and would collect the personal identifying information for her clients when preparing returns. She would then tell people she could assist in obtaining unemployment benefits, according to the indictment. As part of the application process, Rodriguez allegedly used the personal information of others, but included a bank account associated with her. As a result of the scheme and in addition to the funds fraudulent acquired from HUD, Rodriguez allegedly obtained over $30,000 in unemployment benefits.
Rodriguez is further charged with one count of aggravated identity theft in connection with one of the fraudulent applications to the TWC, three counts of defrauding HUD and five counts of lying to a federal agency.
If convicted, Rodriguez faces up to 30 years for the bank fraud, 20 years for each count of wire fraud, up to two years for each count of HUD fraud and up to five years for each count of lying to authorities. She will also receive a mandatory two years for the identity theft, upon conviction, which must be served consecutively to any other prison term imposed.
The FBI, Texas Department of Public Safety-Texas Rangers, Zapata County Sheriff’s Office and Housing and Urban Development-Office of Inspector General conducted the investigation with assistance from the Drug Enforcement Administration, Federal Deposit Insurance Corporation, Texas Workforce Commission and the LHA. Assistant U.S. Attorney Brian Bajew is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Landscaping Business Owner Pleads Guilty to Tax Evasion After Not Filing and Paying Taxes for Nine YearsRead the Press Release
HOT SPRINGS – A Hot Springs man and owner of a landscaping business pleaded guilty today to evading more than $507,000 in federal income taxes. U.S. District Chief Judge Susan O. Hickey presided over the plea hearing, in which Jerry Christopher Wade, age 43, waived indictment and pleaded guilty to a criminal information charging him with tax evasion.
According to court documents, from 2011 through 2019, Wade owned and operated Four Seasons Landscaping, located in Hot Springs Village, Arkansas. Wade started Four Seasons Landscaping approximately 12 years ago and is 100% owner. The landscaping business was Wade’s only source of income. Despite earning income each year, Wade did not timely file federal income tax returns for the years 2011 through 2019. Wade admitted to federal agents he knew he was required file his tax returns. Wade told agents he did not keep business records, including records documenting income or expenses. Wade further admitted he did not issue IRS Forms W-2 or 1099 to his workers or to himself and he did not keep payroll records for the wages paid to himself or his workers.
During the years under investigation, Wade received checks from customers (income) totaling $2,537,771.86 from 2011 through 2019. Wade did not deposit all of these checks into his bank accounts, and he received cash back from the bank totaling $878,983.48 when he negotiated the checks.
As part of his plea, Wade admitted he intentionally attempted to evade and defeat his income tax responsibilities by taking the following actions, amount others: conducting business transactions in cash, paying employees without reporting said payments to the IRS, cashing customer checks at his financial institution, and asking customers to write multiple checks in amounts of less than $10,000 to avoid bank reporting requirements.
In total, Wade did not pay federal income taxes of $507,554.00 to the IRS, and also admitted that he failed to file income taxes with the state of Arkansas. Wade agreed to pay restitution, including penalties and interest, to both the U.S. Treasury and Arkansas Department of Finance and Administration.
Wade is scheduled to be sentenced at a later date and faces a maximum penalty of five years in prison. He also faces a period of supervised release, monetary penalties, and restitution. The U.S. District Judge will determine his sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
IRS-Criminal Investigation is investigating the case.
Assistant U.S. Attorney Steven Mohlhenrich is prosecuting the case for the United States.
Justice Department Announces Arrest of the Founder of One of the World’s Largest Hacker Forums and Disruption of Forum’s OperationRead the Press Release
The founder of BreachForums made his initial appearance today in the Eastern District of Virginia on a criminal charge related to his alleged creation and administration of a major hacking forum and marketplace for cybercriminals that claimed to have more than 340,000 members as of last week. In parallel with his arrest on March 15, the FBI and Department of Health and Human Services Office of Inspector General (HHS-OIG) have conducted a disruption operation that caused BreachForums to go offline.
According to court documents unsealed today, Conor Brian Fitzpatrick, 20, of Peekskill, New York, allegedly operated BreachForums as a marketplace for cybercriminals to buy, sell, and trade hacked or stolen data and other contraband since March 2022. Among the stolen items commonly sold on the platform were bank account information, social security numbers, other personally identifying information (PII), means of identification, hacking tools, breached databases, services for gaining unauthorized access to victim systems, and account login information for compromised online accounts with service providers and merchants.
“Today, we continue our work to dismantle key players in the cybercrime ecosystem,” said Deputy Attorney General Lisa O. Monaco. “Like its predecessor RaidForums, which we took down almost a year ago, BreachForums bridged the gap between hackers hawking pilfered data and buys eager to exploit it. All those operating in dark net markets should take note: Working with our law enforcement partners, we will take down illicit forums and bring administrators to justice in U.S. courtrooms.”
“People expect that their online data will be protected, and the Department of Justice is committed to doing just that,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Criminal Division. “We must and will remain vigilant to the threat posed by those who attempt to undermine our digital security. We will continue to disrupt the forums that facilitate the theft and distribution of personal information and prosecute those responsible.”
Fitzpatrick’s alleged victims have included millions of U.S. citizens and hundreds of U.S. and foreign companies, organizations, and government agencies. Some of the stolen datasets contained the sensitive information of customers at telecommunication, social media, investment, health care services, and internet service providers. For instance, on Jan. 4, a BreachForums user posted the names and contact information for approximately 200 million users of a major U.S.-based social networking site. Further, on Dec. 18, 2022, another BreachForums user posted details of approximately 87,760 members of InfraGard, a partnership between the FBI and private sector companies focused on the protection of critical infrastructure.
“Cybercrime victimizes and steals financial and personal information from millions of innocent people,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “This arrest sends a direct message to cybercriminals: your exploitative and illegal conduct will be discovered, and you will be brought to justice.”
“The FBI will continue to devote all available resources to deter, disrupt, and diminish criminal enterprise activity,” said FBI Deputy Director Paul Abbate. “We will work alongside our federal and international partners to impose costs on malicious cyber actors around the world and continue to bring justice to those who victimize the American public.”
“Following the seizure of RaidForums last year, cybercriminals turned to BreachForums to buy and sell stolen data, including breached databases, hacking tools, and the personal and financial information of millions of U.S. citizens and businesses,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “The FBI and our partners will not let cybercriminals and those who enable them profit from the theft of sensitive data while hiding behind keyboards. This arrest and disruption of yet another criminal marketplace demonstrates the potency of our joint work to dismantle the digital structures that facilitate cybercrime.”
As part of the scheme, Fitzpatrick allegedly supported the activities of cybercriminals by creating and operating a “Leaks Market” subsection that was dedicated to buying and selling hacked or stolen data, tools for committing cybercrime, and other illicit material. To facilitate transactions on the forum, Fitzpatrick allegedly offered to act as a trusted middleman, or escrow service, between individuals on the website who sought to conduct these types of illicit transactions. In addition, Fitzpatrick allegedly managed an “Official” databases section through which BreachForums directly sold access to verified hacked databases through a “credits” system administered by the platform. As of Jan. 11, the Official database section purported to contain 888 datasets, consisting of over 14 billion individual records. These databases belong to a wide variety of both U.S. and foreign companies, organizations, and government agencies. Fitzpatrick allegedly profited from the scheme by charging for forum credits and membership fees.
“This case sends a clear message that illicitly stealing, selling, and trading the personal information of innocent members of the public will not be tolerated, and that malicious cyber actors will be held accountable,” said Special Agent in Charge Stephen Niemczak of the HHS-OIG. “HHS-OIG and our law enforcement partners remain dedicated to protecting the American public and the integrity of government networks and data from these egregious cyberattacks.”
The BreachForums website has supported additional sections in which users discuss tools and techniques for hacking and exploiting hacked or stolen information, including in the “Cracking,” “Leaks,” and “Tutorials” sections. The BreachForums website also includes a “Staff” section that appears to be operated by the BreachForums administrators and moderators.
Fitzpatrick is charged with conspiracy to commit access device fraud. If convicted, he faces a maximum penalty of five years in prison.
Fitzpatrick’s arrest and the disruption of BreachForums comes nearly a year after the Department of Justice announced the seizure of a predecessor hacking marketplace, Raidforums, and unsealed criminal charges against RaidForums’ founder and chief administrator, who is the subject of extradition proceedings in the United Kingdom. The Justice Department’s Office of International Affairs is handling the extradition.
The law enforcement actions against Fitzpatrick and BreachForums are the result of an ongoing criminal investigation by the FBI Washington Field Office, FBI San Francisco Division, and HHS-OIG, with assistance provided by the U.S. Secret Service, Homeland Security Investigations New York Field Office, New York Police Department, U.S. Postal Inspection Service, and Peekskill Police Department. The U.S. Attorneys’ Office for the Northern District of California, the District of Maryland, and the Southern District of New York have also provided assistance in this matter.
The Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Carina A. Cuellar for the Eastern District of Virginia are prosecuting the case.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Announces Arrest of the Founder of One of the World’s Largest Hacker Forums and Disruption of Forum’s OperationRead the Press Release
ALEXANDRIA, Va. – The founder of BreachForums made his initial appearance today in the Eastern District of Virginia on a criminal charge related to his alleged creation and administration of a major hacking forum and marketplace for cybercriminals that claimed to have more than 340,000 members as of last week. In parallel with his arrest on March 15, the FBI and U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) have conducted a disruption operation that caused BreachForums to go offline.
“Cybercrime victimizes and steals financial and personal information from millions of innocent people,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “This arrest sends a direct message to cybercriminals: your exploitative and illegal conduct will be discovered, and you will be brought to justice.”
According to court documents unsealed today, Conor Brian Fitzpatrick, 20, of Peekskill, New York, allegedly operated BreachForums as a marketplace for cybercriminals to buy, sell, and trade hacked or stolen data and other contraband since March 2022. Among the stolen items commonly sold on the platform were bank account information, social security numbers, other personally identifying information (PII), means of identification, hacking tools, breached databases, services for gaining unauthorized access to victim systems, and account login information for compromised online accounts with service providers and merchants.
“Today, we continue our work to dismantle key players in the cybercrime ecosystem,” said Deputy Attorney General Lisa O. Monaco. “Like its predecessor RaidForums, which we took down almost a year ago, BreachForums bridged the gap between hackers hawking pilfered data and buys eager to exploit it. All those operating in dark net markets should take note: Working with our law enforcement partners, we will take down illicit forums and bring administrators to justice in U.S. courtrooms.”
“People expect that their online data will be protected, and the Department of Justice is committed to doing just that,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Criminal Division. “We must and will remain vigilant to the threat posed by those who attempt to undermine our digital security. We will continue to disrupt the forums that facilitate the theft and distribution of personal information and prosecute those responsible.”
Fitzpatrick’s alleged victims have included millions of U.S. citizens and hundreds of U.S. and foreign companies, organizations, and government agencies. Some of the stolen datasets contained the sensitive information of customers at telecommunication, social media, investment, health care services, and internet service providers. For instance, on Jan. 4, a BreachForums user posted the names and contact information for approximately 200 million users of a major U.S.-based social networking site. Further, on Dec. 18, 2022, another BreachForums user posted details of approximately 87,760 members of InfraGard, a partnership between the FBI and private sector companies focused on the protection of critical infrastructure.
“The FBI will continue to devote all available resources to deter, disrupt, and diminish criminal enterprise activity,” said FBI Deputy Director Paul Abbate. “We will work alongside our federal and international partners to impose costs on malicious cyber actors around the world and continue to bring justice to those who victimize the American public.”
“Following the seizure of RaidForums last year, cybercriminals turned to BreachForums to buy and sell stolen data, including breached databases, hacking tools, and the personal and financial information of millions of U.S. citizens and businesses,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “The FBI and our partners will not let cybercriminals and those who enable them profit from the theft of sensitive data while hiding behind keyboards. The arrest of Conor Fitzpatrick and the disruption of yet another criminal marketplace demonstrates the potency of our joint work to dismantle the digital structures that facilitate cybercrime.”
As part of the scheme, Fitzpatrick allegedly supported the activities of cybercriminals by creating and operating a “Leaks Market” subsection that was dedicated to buying and selling hacked or stolen data, tools for committing cybercrime, and other illicit material. To facilitate transactions on the forum, Fitzpatrick allegedly offered to act as a trusted middleman, or escrow service, between individuals on the website who sought to conduct these types of illicit transactions. In addition, Fitzpatrick allegedly managed an “Official” databases section through which BreachForums directly sold access to verified hacked databases through a “credits” system administered by the platform. As of Jan. 11, the Official database section purported to contain 888 datasets, consisting of over 14 billion individual records. These databases belong to a wide variety of both U.S. and foreign companies, organizations, and government agencies. Fitzpatrick allegedly profited from the scheme by charging for forum credits and membership fees.
“This case sends a clear message that illicitly stealing, selling, and trading the personal information of innocent members of the public will not be tolerated, and that malicious cyber actors will be held accountable,” said Special Agent in Charge Stephen Niemczak of the HHS-OIG. “HHS-OIG and our law enforcement partners remain dedicated to protecting the American public and the integrity of government networks and data from these egregious cyberattacks.”
The BreachForums website has supported additional sections in which users discuss tools and techniques for hacking and exploiting hacked or stolen information, including in the “Cracking,” “Leaks,” and “Tutorials” sections. The BreachForums website also includes a “Staff” section that appears to be operated by the BreachForums administrators and moderators.
Fitzpatrick is charged with conspiracy to commit access device fraud. If convicted, he faces a maximum penalty of five years in prison.
Fitzpatrick’s arrest and the disruption of BreachForums comes nearly a year after the Department of Justice announced the seizure of a predecessor hacking marketplace, Raidforums, and unsealed criminal charges against RaidForums’ founder and chief administrator.
The law enforcement actions against Fitzpatrick and BreachForums are the result of an ongoing criminal investigation by the FBI Washington Field Office, FBI San Francisco Division, and HHS-OIG, with assistance provided by the U.S. Secret Service, Homeland Security Investigations New York Field Office, New York Police Department, U.S. Postal Inspection Service, and Peekskill Police Department. The U.S. Attorneys’ Office for the Northern District of California, the District of Maryland, and the Southern District of New York have also provided assistance in this matter.
The Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Carina A. Cuellar for the Eastern District of Virginia are prosecuting the case against Fitzpatrick.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jury Convicts Colonie Pimp of Sex Trafficking MinorsRead the Press Release
ALBANY, NEW YORK – Christopher Thomas, age 39, of Colonie, New York, was convicted today of 16 counts of sex trafficking and related offenses, following a five-day jury trial.
United States Attorney Carla B. Freedman; Special Agent in Charge Janeen DiGuiseppi of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police (NYSP) Acting Superintendent Steven A. Nigrelli made the announcement.
The trial evidence established that between 2018 and 2020, Thomas trafficked and exploited victims, including minors as young as 16, whom he recruited to work in commercial sex for his financial benefit. His crimes spanned New York, Vermont, Connecticut and Massachusetts. Thomas was also convicted of sexual exploitation of a child, distribution of child pornography and tampering with a witness.
When United States District Judge Mae A. D’Agostino sentences Thomas, he faces at least 15 years and up to life in prison, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Thomas must also register as a sex offender.
In addition to the FBI and NYSP, the Colonie Police Department, Albany County Sheriff’s Office and Albany Police Department assisted in investigating the case. Assistant United States Attorneys Katherine Kopita and Rachel Williams are prosecuting the case.
Ithaca Man Pleads Guilty to Drug ChargesRead the Press Release
SYRACUSE, NEW YORK – Odell, Tindley, age 30, of Ithaca, New York pled guilty today being a member of a conspiracy to distribute and possess with intent to distribute controlled substances in Watertown, New York.
United States Attorney Carla B. Freedman, Matthew Scarpino, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo, New York Field Office, and Jefferson County District Attorney Kristyna S. Mills made the announcement.
As part of his guilty plea today, Odell Tindley admitted that he distributed 83 grams (over two ounces) of cocaine in Watertown on May 25, 2021, and arranged for delivery of methamphetamine later the same day. Investigators of the Metro-Jefferson Drug Task Force interdicted a car driven by an associate of Tindley as it entered Watertown late in the evening of May 25, 2021. A search of this vehicle resulted in the recovery of 904 grams (just under 32 ounces) of methamphetamine and approximately a pound of marijuana.
At sentencing on July 26, 2023, Tindley faces a minimum sentence of ten years and maximum sentence of life in prison, a fine of up to $10 million dollars, and a post-imprisonment term of supervised release of at least five years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The case was investigated by the Metro-Jefferson Drug Task Force, consisting of Special Agents from U.S. Homeland Security Investigations (HSI), U.S. Border Patrol Agents, Detectives from the Watertown Police Department, Detectives from the Jefferson County Sheriff’s Department, and Investigators from the Jefferson County District Attorney’s Office. Assistant U.S. Attorney Richard Southwick and Special Assistant U.S. Attorney Paul Tuck are prosecuting the case.
Inmate at FCI-Berlin Charged with AssaultRead the Press Release
CONCORD – United States Attorney Jane E. Young announced today that Anniel Gomez, an inmate at the Federal Correctional Institution FCI-Berlin, has been charged with one count of assault in connection with an incident on December 19, 2022.
According to the indictment and statements made in court, Gomez beat another inmate with a weapon consisting of two padlocks strapped together. As a result, the alleged victim lost four teeth and suffered head trauma, including lacerations above the right eyebrow and back of the head.
The charges in the indictment are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This matter was investigated by the Federal Bureau of Investigation and FCI-Berlin’s Office of the Special Investigative Supervisor. The case is being prosecuted by Assistant U.S. Attorney Matthew T. Hunter.
###
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on March 24 was:
Kyle D. Evenson, 35, of Billings, on charges of prohibited person in possession of a firearm and receipt of a firearm by a person under indictment. If convicted of the most serious crime, Evenson faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Evenson was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 23-24.
Appearing on March 23 was:
Brandon Daniel Fernandes, 31, of Billings, on charges of possession of unregistered silencer and possession of firearm with an obliterated serial number. If convicted of the most serious crime, Fernandes faces a maximum of 10 years in prison, a $10,000 fine and three years of supervised release. Fernandes was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 23-28.
Appearing on March 21 was:
Elias Miguel Nava, 19, and Lawrence Alexander Foster-Nava IV, 19, both of Billings, on charges of possession of an unregistered silencer and possession of a firearm with an obliterated serial number. Elias Miguel Nava also is charged with prohibited person in possession of a firearm. If convicted of the most serious crime, Elias Miguel Nava faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. If convicted of the most serious crime, Lawrence Alexander Foster-Nava IV faces a maximum of 10 years in prison, a $10,000 fine and three years of supervised release. Both defendants were detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 23-28.
Le Erland Fannin, 41, of Livingston, on charges of possession with intent to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious crime, Fannin faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Fannin was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Park County Sheriff’s Office investigated the case. PACER case reference. 23-17.
Kenneth Crazymule, Jr., 58, of Lame Deer, on charges of assault resulting in substantial bodily injury to dating or intimate partner and assault with a dangerous weapon. If convicted of the most serious crime, Crazymule faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Crazymule was detained pending further proceedings. The Bureau of Indian Affairs and FBI investigated the case. PACER case reference. 23-16.
Vincent Charles McCall, 21, of Fort Worth, Texas, on charges of conspiracy to commit bank fraud, bank fraud and aggravated identity theft. If convicted of the most crime, McCall faces a maximum of 30 years in prison, a $1 million fine and five years of supervised release on bank fraud and a mandatory minimum two years in prison, consecutive to any other sentence, a $250,000 fine and one year of supervised release on aggravated identity theft. McCall was detained pending further proceedings. The U.S. Secret Service, Yellowstone County Sheriff’s Office, Teton County Sheriff’s Office and Liberty County Sheriff’s Office investigated the case. PACER case reference. 23-27.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Indiana, PA Man Pleads Guilty to Selling Meth in Indiana CountyRead the Press Release
PITTSBURGH - A resident of Indiana, Pennsylvania, pleaded guilty yesterday in federal court to charges of violating federal narcotics laws, Acting United States Attorney Troy Rivetti announced today.
James Emmanuel Emerson, age 51, pleaded guilty to two counts before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that on or about Feb. 15, 2022, and on or about March 3, 2022, in Indiana County, Mr. Emerson knowingly, intentionally, and unlawfully possessed with the intent to distribute and distributed 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
Judge Schwab scheduled sentencing for June 7, 2023, at 10:30 a.m. The law provides for a sentence of no less than five years to no more than 40 years in prison, a fine of $5,000,000, or bothat each count. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carl J. Spindler is prosecuting this case on behalf of the government.
The FBI Southwest Pennsylvania Safe Streets Task Force, Indiana County Drug Task Force, and Federal Bureau of Investigation – Laurel Highlands Resident Agency conducted the investigation that led to the prosecution of Mr. Emerson.
Husband and wife charged in multi-million dollar home health fraudRead the Press Release
HOUSTON – Two Houston residents are set to appear on allegations in an $8.7 million fraud scheme connected to a home health company they jointly owned and operated, announced U.S. Attorney Alamdar S. Hamdani.
Caroline Zamora, 63, and Rommel Zamora, 59, are set to appear before U.S. Magistrate Judge Andrew M. Edison at 2 p.m.
The indictment, returned March 1, alleges the Zamoras owned and operated 24/7 Stat Care Home Health Services Inc. aka Parkway Healthcare Services. From approximately February 7, 2014 through November 9, 2018, the couple allegedly conspired to pay illegal cash kickbacks to Medicare patients to sign up for home health services with Parkway. The Zamoras are also alleged to have conspired to pay kickbacks to doctors to certify and refer patients for home health who did not qualify.
The indictment further alleges the Zamoras fraudulently billed Medicare for home health services that were not provided or for patients who did not qualify for such services. Parkway billed Medicare $8.7M and was paid $6.7M, according to the indictment.
If convicted, both face up to 10 years in prison on each count of health care fraud in addition to another five years for the conspiracy. All counts also carry as possible punishment a maximum $250,000 fine.
The Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services - Office of Inspector General and the FBI conducted the investigation. Special Assistant U.S. Attorney Abdul Farukhi is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Healthcare Fraudster Charged with Fleeing U.S. Before Serving SentenceRead the Press Release
A Flower Mound woman who allegedly absconded from the United States in order to avoid serving a 46-month prison sentence has been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Florence Enerwim Onyegbu, 64, also known as Florence Oshiegbe, was charged via criminal complaint with failure to surrender for service of sentence. She made her initial appearance in federal court Friday afternoon.
According to court documents, on February 14, 2011, a federal judge sentenced Ms. Onyegbu to 46 months in federal prison for her role in a healthcare fraud scheme.
Ms. Onyegbu had pleaded guilty to one count of offer and payment of illegal remuneration. In plea papers, she had admitted that her home health company, De-Promise, paid kickbacks to induce Medicare beneficiaries to arrange for home health services, then billed Medicare for home health services that were not provided – knowing full well that the beneficiaries were not home-bound or confined to a hospital and did not need those services. She had admitted she submitted more than $1.8 million in fraudulent claims and received more than $1.3 million in fraudulently-obtained payments.
At her 2011 sentencing, the judge ordered Ms. Onyegbu to self-surrender to a Bureau of Prisons facility on Monday, April 14, 2011 before 11 a.m. Ms. Onyegbu allegedly failed to do so.
She was arrested in Lagos, Nigeria on February 22, 2022 by the Nigerian Economic and Financial Crimes Commission at the request of the United States. Following court proceedings in Nigeria, she was extradited to the United States and arrived in Texas on Thursday.
A criminal complaint is merely an allegation of criminal conduct, not evidence. Ms. Onyegbu is presumed innocent unless and until proven guilty in a court of law.
If convicted, she faces five years in prison on the failure to surrender charge.
The U.S. Marshals Service and the Federal Bureau of Investigation’s Dallas Field Office conducted the investigation into the alleged failure to surrender. The US. Department of Health and Human Services’ Office of Inspector General and the FBI’s Dallas Field Office investigated the healthcare fraud. Assistant U.S. Attorney Marty Basu is prosecuting the case with the help of Assistant U.S. Attorney Katherine Miller, who prosecuted the original fraud case alongside Assistant U.S. Attorneys John de la Garza and Megan Fahey (fmr).
The U.S. Department of Justice’s Office of International Affairs and the FBI’s Legal Attaché Office at the U.S. Embassy in Nigeria provided significant assistance in securing the defendant’s extradition from Nigeria, as did FBI’s Dallas Field Office. The United States Attorney’s Office also thanked Nigeria’s Federal Ministry of Justice, Nigeria’s Economic and Financial Crimes Commission (“EFCC”), the Central Authority Unit of Nigeria’s Ministry of Justice, and the Attorney General of the Federal Republic of Nigeria for their assistance with her arrest and extradition.
Hale County Man Pleads Guilty to $4 Million PPP FraudRead the Press Release
A Plainview man admitted to defrauding pandemic-era financial programs out nearly $4 million, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Andrew Travis Johnson, 58, was charged earlier this month and pleaded guilty Friday to three counts of bank fraud, one count of aggravated identity theft, and one count of engaging in monetary transactions in property derived from unlawful activity.
According to plea papers, Mr. Johnson admitted the he fraudulently applied for an obtained 27 Paycheck Protection Program (PPP) loans totaling almost $4 million.
He admitted he applied for loans on behalf of three entities: an actual business that provided contract speech and occupational therapy services, an actual nonprofit that organized community fundraisers for individuals with intellectual limitations, and a fictitious entity that never provided goods or services of any kind and had no employees.
In the business’s application, Mr. Johnson falsely claimed the company paid 49 employees an average of $441,667 per month and provided a fabricated IRS Form 940 that indicated it paid its employees more than $5.1 million in calendar year 2019. In actuality, the company employed about 10 individuals on an ad hoc basis and paid less than $100,000 in wages in 2019. Nevertheless, based on his application, the business qualified for a $1.1 million PPP loan, which it re-drew the following year, for a total of $2.2 million.
In the nonprofit’s application, he falsely claimed the organization employed 33 individuals (in actuality, it employed fewer than five), and in the application submitted on behalf of the fictitious entity, he falsely claimed the company employed 24 individuals (in actuality, the company did not exist). For each entity, he provided fabricated list of employees, some of which did not exist and others of which were clients, along with fabricated IRS forms. Nevertheless, he qualified for a $326,770 loan for the entity and a $523,00 loan for the nonprofit. He redrew a loan for the non-existent entity the following year for a total of $653,540.
Each entity sought – and received – forgiveness on the principal and interest on each of the small business PPP loans. Yet very little, if any, of the money was used for payroll or business expenses. Instead, Mr. Johnson spent nearly $3.5 million on home renovations, vacations, clothing, cosmetic surgery, college tuition, cars, wedding expenses, and equipment for an unrelated business venture.
In addition to the small business loans, Mr. Johnson also fraudulently obtained $436,524.80 in first and second draw loans for 11 purported independent contractors, several of whom were related to him.
At least four of the recipients were unaware that Mr. Johnson had used their identifying information to obtain the loans, nor did they ever receive any proceeds of the loans. Mr. Johnson opened bank accounts under the victim’s names, transferred to loan proceeds into the accounts, and obtained debit cards for each account; he used the cards to spend the loan monies.
Mr. Johnsons and others sought – and received – forgiveness on the principal and interest on each of the independent contractor loans, which ranged from roughly $15,000 to nearly $24,000 each.
Mr. Johnson now faces up to 102 years in federal prison. His sentencing date has not yet been set.
In plea papers, he agreed to pay more than $4 million in restitution.
The Federal Bureau of Investigation’s Dallas Field Office and IRS – Criminal Investigations conducted the investigation with the assistance of Homeland Security Investigations. Assistant U.S. Attorneys Ann Howey and Jeff Haag are prosecuting the case with help from Assistant U.S. Attorneys Beverly Chapman and John de la Garza .
The Paycheck Protection Program (PPP) was authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted on March 29, 2020, to provide emergency financial assistance to Americans suffering economic hardship due to the COVID-19 pandemic. The PPP provided forgivable loans to small businesses to cover payroll, rent, and other certain business expenses; the program ended in May 2021.
Grand Jury Indicts Falconer Man in Cold Case Murder InvestigationRead the Press Release
BUFFALO, N.Y. — U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an indictment charging Anthony Neubauer, 36, of Falconer, NY, kidnapping resulting in death. The charge carries a mandatory minimum penalty of life in prison.
Assistant U.S. Attorney Michael J. Adler, who is handling the case stated that according to the complaint, on May 27, 2014, Neubauer kidnapped an individual identified as J.A. Neubauer then transported J.A. from New York to Pennsylvania, resulting in the death of J.A.
Neubauer was arraigned this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention hearing on March 28, 2023.
The complaint is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #