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Thursday 9 February 2023
Heroin and Fentanyl Dealer Sentenced to 13 Years in Prison, Investigation Launched After a Sale Led to an Overdose DeathRead the Press Release
RALEIGH, N.C. – A Burlington man was sentenced yesterday to 160 months in prison for distribution of heroin and fentanyl. On June 8, 2022, Justin Kyle Tripp pled guilty to the charge. The investigation into Tripp began after a purchase tied to Tripp resulted in an overdose death.
“Fentanyl is a dangerous synthetic drug that is driving the overdose epidemic and killing far too many Americans,” said U.S. Attorney Michael Easley. “We are targeting the drug dealers and criminal networks selling fentanyl and lacing their drug supply – fueling addiction and overdose deaths.”
According to court documents and other information presented in court, Tripp, 38, is responsible for distribution of a mixture of heroin and fentanyl. In June of 2020, officers with Raleigh Police Department were dispatched to a Raleigh residence for a reported death. An empty heroin bindle, a spoon and a used syringe were observed nearby the deceased victim. A review of the victim’s phone revealed a conversation between the victim and Tripp reflecting an arrangement for the victim to purchase heroin from Tripp. The victim’s cause of death was determined to be acute fentanyl and heroin intoxication. Law enforcement later obtained a search warrant for Tripp’s residence where they found a mixture of heroin and fentanyl, a digital scale and multiple empty heroin bindles.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Raleigh Police Department investigated the case and Assistant U.S. Attorney Kelly L. Sandling 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. 5:21-CR-00296-BO.
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Hearing Aid Dealer Pleads Guilty to Health Care FraudRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Jean Pierre Njock, Acting Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, announced that DENNIS DELLAGHELFA, 53, of Waterbury, waived his right to be indicted and pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to health care fraud.
According to court documents and statements made in court, Dellaghelfa is a licensed hearing instrument specialist and the owner of General Hearing, a Waterbury-based hearing aid dealer. Since approximately 2013, General Hearing has been a participating provider enrolled in the Connecticut Medical Assistance Program (CTMAP), Connecticut Department of Social Services-administered program that provides medical assistance to low income persons. CTMAP’s benefit packages, referred to as “HUSKY” or “Connecticut Medicaid,” are jointly funded by the State of Connecticut and the federal government.
From approximately June 2016 to April 2022, Dellaghelfa submitted, or caused to be submitted, false and fraudulent claims for payment for services and equipment that were not provided or were medically unnecessary. For example, in November 2018, Dellaghelfa submitted claims to Connecticut Medicaid for services provided to six patients during a period of time that Dellaghelfa was traveling outside the U.S. In 2019 and 2020, some of the fraudulent claims involved services that were purportedly provided by his three employees. However, Dellaghelfa knew that the employees performed hearing tests without having the required professional permit, and submitted paperwork for hearing tests and services that did not occur or were not medically necessary.
In addition, in violation of the CTMAP provider agreement, Dellaghelfa paid third-party “patient recruiters” for each Medicaid patient they brought to General Hearing for a hearing test, and that then failed the hearing test and received hearing aids. He also submitted false claims to Connecticut Medicaid for testing and hearing aids for five of the patient recruiters who did not need hearing aids.
As part of his plea agreement, Dellaghelfa has agreed to make restitution of $6,141,857 to the Connecticut Medicaid program. As part of his restitution obligation, Dellaghelfa has agreed to forfeit $332,675 currently held in personal and business bank accounts.
Dellaghelfa pleaded guilty to one count of health care fraud, an offense that carries a maximum term of imprisonment of 10 years. Judge Thompson scheduled sentencing for May 16.
Dellaghelfa is released pending sentencing.
This case is being investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), with the assistance of the Waterbury Police Department.
The matter is being prosecuted by Assistant U.S. Attorneys Heather L. Cherry and Elena L. Coronado.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Georgia Man Pleads Guilty to Aggravated Identity Theft and Conspiracy to Commit Bank FraudRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Anthony Jermaine Robinson (31, Covington, Georgia) has pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft. Robinson faces a maximum penalty of 32 in federal prison, to include a 2-year minimum mandatory term of imprisonment for the aggravated identity theft charge, and payment of restitution to the victims he defrauded. Robinson made his initial appearance in federal court on November 3, 2022, pursuant to a writ from a Georgia State Prison, where he is serving a prison sentence for violating parole on a fraud-related crime. He was ordered detained pending trial.
According to the plea agreement, in 2019, a deputy from the Columbia County Sheriff’s Office (CCSO) stopped a car driven by Robinson for a cracked windshield. Based on a probable cause search of the car, the deputy located counterfeit Social Security cards and driver licenses with the identities of genuine individuals, genuine credit cards in the names of individuals, and multiple phones. Pursuant to a search warrant, the CCSO conducted a forensic examination of Robinson’s iPhone and determined that it contained text messages between Robinson and his co-defendant, Kiana Fina Alphonse. The text messages outlined instructions on how to fraudulently set up business bank accounts using, among other items, fraudulent business documents for non-existent businesses, identification documents and Social Security numbers (SSNs).
Further investigation by law enforcement determined that, in 2019, Robinson and Alphonse obtained the personally identifiable information (PII) of multiple victims. They then obtained counterfeit driver licenses, purportedly from Washington and Delaware. The counterfeit licenses contained the PII of victims, but Alphonse’s photo. Using the PII, including the SSNs of victims, the counterfeit licenses, and documents created for fictitious businesses, Alphonse set up fraudulent business bank accounts in the names of various victims. These bank accounts were then utilized as part of a scheme to defraud multiple victims involving the online purchase of nonexistent cars. Once the bank accounts received funds from the victims, Robinson, Alphonse, and co-conspirators withdrew the money for their own personal use.
Kiana Fina Alphonse (28, Covington, Georgia) appeared in federal court on September 27, 2022. Her trial is set for March 2023.
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 Columbia County Sheriff’s Office and the U.S. Secret Service – Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Fresno Man Sentenced to 2 Years in Prison for Unemployment Benefit Fraud Scheme and Possession of Stolen MailRead the Press Release
FRESNO, Calif. — Garrett Scott Wheelen, 32, of Fresno, was sentenced today to two years in prison for mail fraud and possession of stolen mail, U.S. Attorney Phillip A. Talbert announced.
Wheelen was also ordered to pay $27,664 in restitution to California’s Employment Development Department (EDD).
According to court documents, between August and November 2020, Wheelen perpetrated a mail fraud scheme to defraud the State of California by submitting fraudulent Pandemic Unemployment Assistance (PUA) claims to EDD. PUA was a federal unemployment insurance program established by the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act and administered by EDD, to provide unemployment benefits to people impacted by the COVID-19 pandemic.
Wheelen used personally identifiable information (PII) and other information associated with real people to submit fraudulent unemployment insurance and PUA claims to EDD. The claims were submitted for his own benefit and included information relating to employment and mailing addresses that were not associated with the claimants. EDD approved at least some of the claims and caused Bank of America to mail debit cards containing unemployment benefits to an address under Wheelen’s control.
Wheelen obtained the PII of his victims by stealing U.S. mail from mailboxes, receptacles and at least one mail truck. He also harvested bankcards and checks for use in fraudulent activity. For example, on Sept. 4, 2020, in Fresno County, Wheelen was in possession of California State driver’s licenses, credit cards, and checks that he had stolen from U.S. mail. At least some of this mail came into his possession when he broke into a mail truck in Fresno on Aug. 11, 2020.
This case was the product of an investigation by the U.S. Postal Inspection Service, the California EDD’s Investigation Division, and the Reedley Police Department. Assistant U.S. Attorney Dhruv Sharma prosecuted the case.
Fort Smith Arms Dealer Arrested in Austin, TexasRead the Press Release
FORT SMITH – A Fort Smith man was arrested yesterday in Austin, Texas on criminal charges related to his alleged possession of an unregistered destructive device; namely, an improvised explosive bomb, which was not registered to him in the National Firearms Registration and Transfer Record as required by law. Mehta’s arrest ended a six-day manhunt, in which the public’s assistance was solicited in locating the defendant, who was assumed to be armed and dangerous.
According to court documents, Neil Ravi Mehta, 31, was found to be in possession of an “improvised explosive bomb” during a federal search warrant executed at his residence on Free Ferry Road, in Fort Smith, Ark. Law enforcement officers located the device in the top left corner of the kitchen island. The device was x-rayed by bomb technicians on-scene, made safe, and the evidence was collected. The following images were taken during the execution of the search warrant:
Mehta is charged in a Criminal Complaint with a single count of Unlawful Possession of an Unregistered Destructive Device. A Grand Jury will later hear evidence related to this investigation and determine whether additional criminal charges will be filed against Mehta. If convicted of the charge of Unlawful Possession of an Unregistered Destructive Device, Mehta faces a maximum penalty of ten years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
This is a joint investigation involving the following federal law enforcement agencies: the Federal Bureau of Investigation (FBI); the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the U.S. Department of Commerce (DOC), Bureau of Industry and Security (BIS), Office of Export Enforcement (OEE); the Internal Revenue Service-Criminal Investigation (IRS-CI); and the U.S. Department of Labor, Office of the Inspector General (DOL-OIG).
Assistant U.S. Attorney Steven Mohlhenrich and First Assistant U.S. Attorney Kenneth Elser are prosecuting the case.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Social Security Employee Pleads Guilty to Pandemic Fraud SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Takiyah Gordon Austin, age 47, formerly of Wilkes Barre, Pennsylvania, pleaded guilty yesterday before U.S. District Court Judge Malachy E. Mannion, for a scheme to fraudulently obtain unemployment benefits related to COVID-19 emergency relief funds
The Pandemic Unemployment Assistance (PUA) program was created by the March 27, 2020 CARES Act, as part of the United States government’s efforts to mitigate the impact of the COVID-19 pandemic on the public’s health and economic well-being. The PUA program was designed to provide unemployment benefits to individuals not eligible for regular unemployment compensation or extended unemployment benefits.
According to U.S. Attorney Gerard M. Karam, Austin pleaded guilty to one count wire fraud and one count of aggravated identify theft. From in or about May 2020 to in or about May 2021, Austin, a claims specialist with the Social Security Administration, filed PUA claims for ineligible recipients in exchange for payment from the individuals. Additionally, Austin filed claims after accessing SSA databases to obtain the personal identifying information from unsuspecting individuals and then diverted the unemployment funds to addresses she controlled in order to use the funds for her own personal expenses. Through the scheme, Austin defrauded the government of over $288,000.
“Former Social Security Administration (SSA) employee Gordon Austin abused her position by accessing Agency records for unofficial and illegal purposes. In her scheme, she used the stolen PII of innocent and unsuspecting persons to defraud federal benefits programs of over $288,000. Her criminal actions undermine the integrity of Social Security employees and programs,” said Michael McGill, Special Agent in Charge, Social Security Administration, Office of the Inspector General, Philadelphia Field Division. “My office will continue to work aggressively to hold perpetrators accountable for their crimes. I thank the U.S. Department of Labor for their assistance in this investigation, and Assistant U.S. Attorney Alison V. Martin and Special Assistant U.S. Attorney Megan Curran for their work in prosecuting this case.”
“Takiyah Gordon Austin engaged in a scheme to abuse her position as a claims specialist for the Social Security Administration in order to obtain the personally identifiable information of unsuspecting individuals. Austin then utilized that information to file for and receive fraudulent Pandemic Unemployment Assistance (PUA) claims and benefit payments. As part of the scheme, Austin also filed PUA claims for ineligible individuals in exchange for payment from the individuals. The U.S. Department of Labor’s Office of Inspector General remains committed to working with the Pennsylvania Department of Labor and Industry and our law enforcement partners to safeguard the integrity of unemployment compensation benefit programs," said Syreeta Scott, Special Agent-in-Charge, Mid-Atlantic Region, U.S. Department of Labor Office of Inspector General.
The case was investigated by the Social Security Administration, Office of the Inspector General, the Department of Labor, Office of the Inspector General, and the United States Postal Inspection Service. Special Assistant United States Attorney Megan Curran and Assistant United States Attorney Alisan V. Martin are prosecuting the case.
The maximum penalty under federal law for wire fraud is 20 years’ imprisonment. Aggravated identity theft carries a mandatory two-year sentence consecutive to sentences imposed for other offenses. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Former Hamilton man admits lying to receive Social Security Administration benefitsRead the Press Release
MISSOULA — A former Hamilton man today admitted to making false statements to receive disability payments from the Social Security Administration, U.S. Attorney Jesse Laslovich said.
Aaron Lee Grossman, 50, of Washington, Utah, and formerly of Hamilton, pleaded guilty to false statements to a government agency, a felony. Grossman faces a maximum of five years in prison, a $250,000 fine and three years of supervised release. In a plea agreement filed in the case, Grossman agrees to be responsible for complete restitution in the amount of approximately $71,456 to the Social Security Administration.
U.S. District Judge Donald W. Molloy presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for June 27. Grossman was released pending further proceedings.
In court documents, the government alleged that in 2011, Grossman applied for Social Security Disability Insurance (SSDI) payments from the Social Security Administration. The agency reviewed and approved Grossman’s application and advised him of his legal obligation to notify it if he experienced a change in his ability to work, returned to work or if his medical condition improved. In 2019, Grossman received $36,210 from Lynch Insulation for work he performed through Grossman Consulting, LLC. In June 2020, Grossman submitted a Work Activity Report to the Social Security Administration and did not disclose this income. Had he done so, Grossman would have been ineligible for SSDI benefits. When questioned by Social Security Administration agents, Grossman claimed his wife earned those wages. However, records from Lynch Insulation indicted that Grossman, in fact, completed the work. In an interview in 2021, Grossman admitted he concealed his work for and income from Lynch Insulation so he could maintain his Social Security Administration benefits.
Assistant U.S. Attorney Karla E. Painter is prosecuting the case, which was investigated by the Social Security Administration Office of Inspector General.
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Former Foxborough Teacher Pleads Guilty to Child Pornography OffenseRead the Press Release
BOSTON – A former teacher at Foxborough High School pleaded guilty yesterday in federal court in Boston to possession of child pornography and receiving child pornography over the internet.
Thomas Davis, 42, of Mansfield, pleaded guilty to one count of possession and receipt of child pornography. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for May 18, 2023. Davis was arrested and charged by criminal complaint on Aug. 26, 2021.
On Aug. 26, 2021, a search warrant was executed at Davis’ residence and a laptop belonging to Davis was seized. An on-site examination revealed approximately 40 images of child pornography on the laptop, including images involving prepubescent minors under the age of 12-years-old. A forensic analysis of Davis’ laptop revealed additional child pornography.
The charge of receipt of child pornography provides for a sentence of at least five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Mansfield Police Department. Assistant U.S. Attorney David G. Tobin of Rollins’ Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Former FLDS Utah Man Sentenced to 60 Months in Prison After Admitting to Grooming and Sexually Abusing a Teenage GirlRead the Press Release
Salt Lake City, Utah – A Washington County, Utah man was sentenced Wednesday to five years imprisonment, and 15-years supervised release, after pleading guilty to the use of interstate facilities to transmit information about a minor.
According to court documents, James Steed Allred, 41, of Apple Valley, targeted a 14-year-old victim by using a fake social media account. Allred admitted to using a fake online persona in April 2020 to contact the teen who was living in North Dakota. Using a Snapchat account, he represented to the victim he was a teenage boy living in Washington County, Utah, and provided fake photos. Allred engaged in extensive romantic communication and sent gifts to the victim in an attempt to engage in illegal sexual activity with the minor. In April 2021, shortly after the teenage victim moved to Colorado City, Arizona with her family, Allred traveled from Utah to Arizona and engaged in illegal sexual conduct with the victim multiple times while continuing to deceive the teen that he was a teenage boy.
“The United States. Attorney’s Office is committed to protecting minor victims from violent criminals who prey on their innocence via the internet,” said U.S. Attorney Trina A. Higgins for the District of Utah. “Thanks to our law enforcement partners we were able to investigate this case and seek justice for the victim as she continues to heal from the trauma inflicted by this crime."
The case was investigated by the FBI Salt Lake City Field Office.
Assistant U.S. Attorney, Stephen Dent, for the District of Utah prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Former Correctional Officer Sentenced to 20 Months in Prison for Abusive Sexual Contact with InmateRead the Press Release
OAKLAND – Enrique Chavez was sentenced today to 20 months in prison for having abusive sexual contact with a female prison inmate while he was employed as a correctional officer at the Federal Correctional Institute Dublin (FCI Dublin) in Alameda County. The sentence was handed down by Hon. Yvonne Gonzalez Rogers, United States District Judge.
Chavez, 50, formerly of Manteca, California, pleaded guilty to the charge on October 27, 2022. Chavez was employed in October 2020 as a correctional officer at FCI Dublin. FCI Dublin is a correctional institution operated by the Federal Bureau of Prisons that houses female prisoners. According to his plea agreement, Chavez admitted that during October 2020 he met a female prisoner— identified only as Victim 1 in the plea agreement—in the food service pantry at FCI Dublin. Chavez acknowledged that Victim 1 was in detention at FCI Dublin and that she was under Chavez’s supervision and disciplinary authority at the time. After they met in the pantry, Chavez locked the door and the lights were turned off. Chavez admitted that he put his hand inside Victim 1’s underwear and touched her genitals; Chavez also admitted he touched the victim’s breasts.
A federal grand jury indicted Chavez on March 10, 2022, charging him with two counts of abusive sexual contact, in violation of 18 U.S.C. § 2244(a)(4). Chavez pleaded guilty to one of the counts. Judge Gonzalez Rogers dismissed the remaining count during the sentencing hearing.
In addition to the prison term, Judge Gonzalez Rogers also ordered the defendant to serve ten years of supervised release to begin after the prison term. Judge Gonzalez Rogers ordered the defendant to surrender on or before April 7, 2023, to begin serving his prison term.
U.S. Attorney Stephanie M. Hinds, DOJ Office of the Inspector General Los Angeles Field Office Special Agent in Charge Zachary Shroyer, and FBI Special Agent in Charge Robert K. Tripp made the announcement.
Assistant U.S. Attorneys Andrew Paulson and Molly K. Priedeman are prosecuting the case, with the assistance of Kay Konopaske and Leeya Kekona. The prosecution is the result of an investigation by the DOJ Office of the Inspector General and the FBI.Former Colstrip police officer admits to receiving child pornographyRead the Press Release
BILLINGS — A former Colstrip Police Department officer accused of communicating with a minor girl and directing her to send him pictures and videos of herself engaged in sexually explicit conduct admitted to a child pornography crime today, U.S. Attorney Jesse Laslovich said.
Hossein Cristiano Luigi Borhan, 49, of Billings, was arraigned on and pleaded guilty to an information charging him with receipt of child pornography. Borhan faces a mandatory minimum of five years to 20 years in prison, a $250,000 fine, a $5,000 special assessment and five years to a lifetime of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Borhan’s release was continued pending further proceedings.
The government alleged in court documents that between August 2021 and April 2022, while serving as a Colstrip police officer, Borhan was engaged in an online messaging relationship with a minor girl, identified as Jane Doe. The conversation became sexual in nature, and Jane Doe complied with Borhan’s instructions to send him pictures and videos of herself engaging in sexually explicit conduct. In an interview with law enforcement, Borhan admitted to sending Jane Doe approximately 20 sexual pictures and videos of himself and estimated receiving hundreds of sexual images and videos from her.
Assistant U.S. Attorney Benjamin D. Hargrove is prosecuting the case, which was investigated by the FBI, Montana Division of Criminal Investigation, Rosebud County Sheriff’s Office and Colstrip Police Department.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Five Defendants Sentenced to Federal Prison for Perpetrating Nationwide “Grandparent Scam” Fraud Against over 68 VictimsRead the Press Release
INDIANAPOLIS- Five people have been convicted and sentenced to prison for their roles in a nationwide fraud scheme that targeted senior citizens. Following a years-long investigation, each defendant pled guilty to mail fraud and money laundering charges. Investigators identified over 68 victims of the defendants’ crimes and identified losses totaling over $683,464. The federal court imposed the following sentences:
Defendant
Prison Sentence
Darlens Renard, 31
North Lauderdale, Florida
78 months
Jasaun Pope, 30
Valley Stream, New York
97 months
Princess Elizer, 30
Dallas, Georgia
41 months
Jennifer Glemeau, 28
Marietta Georgia
30 months
Kareem Brown, 30
North Baldwin, New York
36 months
According to court documents, from at least April 2020 and continuing for roughly 11 months, the defendants and other co-conspirators targeted and exploited the elderly and their relationships with their relatives for personal financial gain. Known as a “grandparent scam,” this criminal network exploited elderly Americans’ love for their family members making them believe a close relative was in extreme danger and inducing them to send thousands of dollars to “help.”
The defendants’ role in the scheme was to retrieve, transport, and launder the money the elderly victims were induced to send. The defendants traveled to cities throughout the United States to identify unoccupied houses where overnight packages could be sent and retrieved without detection, and then relay those addresses to their co-conspirators. Those co-conspirators then placed phone calls to seniors in Indiana and around the country claiming that their grandchild or other relative had an urgent legal or medical problem and needed money immediately. The caller, who often claimed to be an attorney, police officer, or other authority figure, told the victim to send an overnight delivery of cash—typically between $5,000 and $15,000—to the address the defendants provided. The defendants tracked the overnight package of cash to the address, picked it up shortly after delivery, and then took their cut of the proceeds before sharing it with their co-conspirators.
For example, according to court documents, one of the victims, age 82, from Crawfordsville, Indiana, was falsely told that her daughter had been in an accident and was in legal trouble because a gun was found in her vehicle. In addition to asking for money urgently, the caller allegedly told the victim that there was a “gag order” in her daughter’s case, to prevent the victim from contacting law enforcement or other family members. Concerned for her daughter’s welfare, the Crawfordsville victim sent a total of $12,500 in cash to the defendants.
Each defendant was ordered to pay hundreds of thousands of dollars in restitution to the victims for their roles in the scheme, and each was ordered to serve between one and three years of supervised release following their release from prison.
The Metro Drug Task Force, Internal Revenue Service-Criminal Investigation, and the United States Postal Inspection Service investigated the case. The investigation was supported by the Baltimore Field Office of the Federal Bureau of Investigation, Chicago Division of the U.S. Drug Enforcement Administration, Homeland Security Investigations, U.S. Marshal’s Service, and state and local law enforcement partners in Orleans, Massachusetts; Bartonville, Illinois; Starkville, Mississippi; New York, New York; Ossining, New York; Westchester County, New York; Delaware County, Ohio; Hermantown, Pennsylvania; Charleston, South Carolina; Myrtle Beach, South Carolina; Sumter County, South Carolina; Hendersonville, Tennessee; Sumner County, Tennessee; Hurst, Texas; and Richmond, Virginia.
“These scams ruthlessly exploited older Americans and their concern for their loved ones,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Each of these defendants will have years in federal prison to reflect on how their scheme harmed the seniors they targeted. These sentences demonstrate the ongoing commitment of our office, and our federal, state, and local partners to investigate and prosecute these despicable elder fraud schemes.”
“These defendants and their co-conspirators preyed on the good nature of people. The sentences in this case reinforce the justice system’s intolerance for people who take advantage of others”, said IRS-CI Chicago Field Office Special Agent in Charge Justin Campbell. “IRS-Criminal Investigation is committed to working with our law enforcement partners at the federal, state, local, and international levels to find and prosecute people who scam others out of their hard-earned money.”
The U.S. Postal Inspection Service is committed to investigating fraudulent imposter schemes designed to defraud innocent victims,” said Rodney M. Hopkins, U.S. Postal Inspector in Charge, Detroit Division. “Combating fraud schemes is a priority of the Postal Inspection Service given that a significant amount of the money in these frauds is sent through the United States mail. We are actively taking steps to educate Americans about the dangers of frauds that target our elderly citizens.”
U.S. Attorney Myers thanked Assistant U.S. Attorneys MaryAnn T. Mindrum and Nicholas J. Linder who prosecuted this case.
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available.
This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves.
Financial Advisor Sentenced to 42 Months in Prison on Fraud and False Statement ChargesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ADAM BELARDINO, the former chief executive officer of the Maddox Group, was sentenced in White Plains federal court to 42 months in prison for fraud in connection with separate schemes to defraud clients and to fail to pay over contributions made by Maddox Group employees to the Maddox Group 401(k) plan. BELARDINO had previously pled guilty to two counts of wire fraud and one count of making a false statement to a government agency. He was sentenced today by U.S. District Judge Kenneth M. Karas.
According to the allegations in the Superseding Information to which BELARDINO pled guilty and other court documents:
Embezzlement from Victim-1
BELARDINO had managed Victim-1’s investments at another firm before he founded Maddox in July 2019. In August 2019, BELARDINO convinced Victim-1 to liquidate some of her portfolio and to transfer the liquidated funds to Maddox for investment. Victim-1 then transferred more than $313,000 to Maddox in eight separate transactions between August 2019 and October 2020. Instead of investing Victim-1’s money as he had promised, BELARDINO used her money to pay the operating expenses of Maddox, including payroll and office rent; to pay down prior debt; to pay credit card charges, which consisted primarily of personal items; and to pay for personal travel.
In September 2021, Victim-1 directed BELARDINO to transfer her portfolio at Maddox to her brokerage account at another firm. From September 2021 to February 2022, BELARDINO sent Victim-1 and members of her family emails and texts in which he said he was liquidating the portfolio and would return the funds shortly. BELARDINO also provided Victim-1’s family with documents suggesting that a wire transfer of the funds to Victim-1’s bank account was imminent or pending. BELARDINO also deposited checks drawn on a checking account held by Maddox (“the Maddox Account”) into Victim-1’s bank account for what he claimed was the full value of her portfolio.
Victim-1 never received any funds by wire and the checks BELARDINO deposited into her bank account were returned because the Maddox Account did not have sufficient funds to cover the checks. BELARDINO sent members of Victim-1’s family emails and texts in which he said in substance and in part that he was working with bank officials to resolve the problem and that his family would repay Victim-1 if he was unable to do so. BELARDINO also sent members of Victim-1’s family a document that falsely stated that the Maddox Account had sufficient funds to repay Victim-1.
Scheme to Obtain Fraudulent Life Insurance Commissions – Victim-2
In or about May 2019, BELARDINO served as the agent for Insurance Company-1 in connection with an application by Victim-2 for a life insurance policy with a face amount of $1 million, which amount was eventually increased to $18 million. As an agent, BELARDINO received commissions from Insurance Company-1 once Victim-2’s application was approved.
In or about April 2020, BELARDINO applied for a life insurance policy with a face amount of $3 million with Insurance Company-2 on behalf of Victim-2 without Victim-2’s knowledge or authorization. BELARDINO made materially false statements regarding Victim-2’s income, net worth, and health in the application. In or about August 2020, BELARDINO caused Insurance Company-2 to increase the face amount of the policy to $6 million without Victim-2’s knowledge or authorization. BELARDINO paid and attempted to pay the policy premiums of $194,280 with Victim-2’s funds without her knowledge or authorization. BELARDINO received approximately $84,997 in commissions from Insurance Company-2.
In or about January 2021, BELARDINO applied for a life insurance policy with a face amount of $5 million with Insurance Company-3 on behalf of Victim-2 without Victim-2’s knowledge or authorization. BELARDINO made materially false statements regarding Victim-2’s income, net worth, and health in the application. BELARDINO caused Insurance Company-3 to increase the face amount of the policy to $6.5 million in March 2021 and to $12.1 million in May 2021, all without Victim-2’s knowledge or authorization. BELARDINO paid the policy premiums in a total amount of $105,000 with Victim-2’s funds without her knowledge or authorization. BELARDINO received approximately $94,500 in commissions from Insurance Company-3.
False Statement in Connection with Fraudulent Withholding of Employee 401(k) Contributions
BELARDINO adopted a retirement savings plan pursuant to Title 26, United States Code, Section 401(k) (the “Plan”) on behalf of the Maddox Group that became effective on January 1, 2020. He served as the trustee of the Plan. Under the Plan, an employee of Maddox could elect to have money withheld from his paycheck each pay period in an amount he chose within specified legal limits. BELARDINO was required to deposit these withheld funds into the Plan for investment at the employee’s direction in various options offered by the Plan. Taxes on the money deposited to the Plan as well as gains from investment of those funds would be deferred. BELARDINO was required to deposit funds withheld for the Plan into the Plan’s trust account for investment within seven business days.
From on or about November 1, 2020, through on or about August 13, 2021, BELARDINO withheld $8,004.67 from the paychecks of the four Maddox employees other than himself who chose to participate in the Plan. BELARDINO failed to deposit these withheld funds into the Plan’s trust account and instead converted those funds to his and Maddox’s use.
On or about October 14, 2021, BELARDINO authorized the Plan administrator to file with the Internal Revenue Service a Form 5500-SF for the 2020 calendar year in which he falsely answered in the negative when asked “During [2020]: Was there a failure to transmit to the plan any participant contributions . . .?”
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In addition to his prison sentence, BELARDINO, 36, of New York, New York, was sentenced to three years of supervised release. He was also ordered to pay restitution in the amount of $501,499.67 and to forfeit $501,499.67.
Mr. Williams praised the outstanding investigative work of the Special Agents of the Federal Bureau of Investigation and Criminal Investigators of the Employee Benefits Security Administration of the United States Department of Labor.
The prosecution of this case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney James McMahon is in charge of the prosecution.
Final Red River Army Depot Defendant Sentenced in Federal Bribery, Theft and Fraud SchemeRead the Press Release
TEXARKANA, Texas – The final defendant has been sentenced in a federal bribery, theft and fraud scheme at the Red River Army Depot (RRAD) in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Jimmy Scarbrough, 71, of Hooks, pleaded guilty on August 22, 2022, to conspiring with others to defraud the United States, commit theft of government property, and commit bribery. He was sentenced to 48 months in federal prison today by U.S. District Judge Robert W. Schroeder, III. Scarbrough was also ordered to forfeit his 1951 Ford F-1 pickup truck and $229,000 cash.
In September of 2022, Jeffrey Harrison, a former RRAD vendor, was sentenced to 30 months in federal prison and ordered to forfeit $300,000; Justin Bishop, a former RRAD vendor was sentenced to 12 months and 1 day in federal prison and ordered to forfeit $55,000; Devin McEwin, a former RRAD official was sentenced to a five-year term of federal probation, including eight months of home confinement and ordered to forfeit $21,000; and Louis Singleton, a former RRAD official was sentenced to five years of federal probation, including eight months of home confinement, and was ordered to forfeit $18,000.
“Scarbrough sold his position of public trust for personal gain, all at the expense of the hard-working men and women at the RRAD who support our armed forces around the globe,” said U.S. Attorney Brit Featherston. “We will continue vigorously uprooting corruption and fraud at the RRAD and the vendors that support its mission.”
“Today's sentencing is a fitting end for those who conspire to defraud the United States Army,” said Special Agent in Charge L. Scott Moreland of the Department of the Army Criminal Investigation Division’s Major Procurement Fraud Field Office. “Army CID is proud to work with our federal law enforcement partners to protect the coffers of the U.S. government from those who break the law and threaten the readiness of our Service.”
“Today’s sentence concludes the tireless work and dedication of multiple agencies to hold a group of people accountable for attempting to defraud and profit off the United States government,” said FBI Dallas Acting Special Agent in Charge, James J. Dwyer. “The public can rest assured that we remain committed to aggressively pursuing anyone that uses government programs for their own personal gain.”
According to information presented in court, Scarbrough was the Equipment Mechanic Supervisor at the RRAD in Texarkana, Texas, a position he held from November 2001 until May 2019. Scarbrough directed more than $7 million in purchases from RRAD to Harrison and Bishop through the government purchase card (GPC) program. In order to manipulate the GPC program, which is designed to ensure a competitive bidding process, Scarbrough told the vendors what to bid, including the item, the quantity, and the price. By collecting fake bids from multiple vendors, Scarbrough was able to direct RRAD purchases to his select vendors, in this case Harrison and Bishop, while maintaining the appearance of a competitive bidding process. Scarbrough also defrauded the United States by falsely certifying that he had received the purchased items, therefore causing the RRAD to pay his select vendors. However, the reality was that Scarborough instructed the vendors not to deliver certain RRAD-purchased items.
Scarbrough demanded hundreds of thousands of dollars in bribes from his selected vendors. Scarbrough accepted bribes in various forms, including receiving at least $116,000.00 in U.S. Postal Service money orders from Harrison. Scarbrough also had Harrison and Bishop purchase at least $135,000.00 in car parts or services for his hot rod collection, which included a red and black 1936 Ford Tudor, an electric green 1932 Ford Coupe, a cherry red 1951 Ford F-1 truck, and more. Scarbrough received more than $27,000.00 worth of firearms from Bishop, including rare Colt handguns and Wurfflein dueling pistols. Finally, Scarbrough directed at least $32,000.00 in donations to the Hooks Volunteer Fire Department while he was the Capitan of Operations. In total, Scarbrough received more than $300,000.00 in bribe payments from Harrison and Bishop.
Scarbrough is not the only official at RRAD who accepted bribes. Devin McEwin accepted more than $21,000.00 in bribes from Harrison, including hunting trips, donations directed to the Annona Volunteer Fire Department, and the refurbishment of his 1964 Ford truck. Additionally, Louis Singleton accepted more than $18,000 in bribes from Harrison and others, including tickets to the Hall of Fame section of AT&T Stadium for the Dallas Cowboys football game against the New England Patriots. Singleton was the supervisor of the GPC program at the RRAD and was responsible for approving purchases requested by Scarbrough.
This was investigated by the U.S. Army CID, Major Procurement Fraud Field Office; the Federal Bureau of Investigation-Dallas Division, Tyler Resident Agency, and the U.S. Postal Inspection Service. This case was prosecuted by Assistant U.S. Attorneys Jonathan R. Hornok, Stephan Oestreicher, Andrew Stover, and Robert Wells.
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Federal indictment cuts off major source of West Virginia drug supplyRead the Press Release
WHEELING, WEST VIRGINIA – A sophisticated drug trafficking network that served as one of the largest suppliers of illicit substances to West Virginia has been dismantled by a federal indictment returned this week against individuals from Ohio, California, and Mexico.
Juan Carlos Magana, 41, of Sinaloa, Mexico, and Personne “Rico” McGhee, age 52, of Bellaire, Ohio, were charged Tuesday with conspiring to distribute large quantities of fentanyl, cocaine, and methamphetamine. According to court documents, Magana coordinated with McGhee and others to have drugs shipped from the Southwest border to Ohio via tractor trailer. In return, McGhee made large cash payments to individuals who flew from California to the Pittsburgh International Airport, picked up the money, and then promptly boarded outbound flights. McGhee utilized a network of redistributors to sell the controlled substances in eastern Ohio and northern West Virginia, in Weirton, Wheeling, Morgantown, Fairmont and Clarksburg.
At the time of McGhee’s arrest in October 2022, agents recovered approximately 75 pounds of cocaine, 19 pounds of methamphetamine, and nearly 5 pounds of fentanyl from his home. Simultaneous with McGhee’s apprehension, arrests and searches occurred at the airport in Pittsburgh, and at homes and businesses in West Virginia and Ohio.
In addition to the seizure of drugs, agents recovered $295,038 in cash and five firearms.
“Rico McGhee was the most notorious drug dealer in the region and Juan Magana was his primary supplier,” said United States Attorney William Ihlenfeld. “Due to the tremendous efforts of our investigators, one of the greatest sources of illicit drugs to West Virginia has been shut down.”
The following people were also charged in Tuesday’s conspiracy indictment:
- Christopher Jason Kirk, 42, of Tracy, CA;
- Justin Dwayne Martin, 34, of San Diego, CA;
- Andres Dominguez, 25, of San Diego, CA;
- Roger Allen Woods, II, 48, of Bellaire, OH;
- Zachary Tyler Menough, 31, of Shadyside, OH; and
- Sherman L. Griffin, 45, of Martins Ferry, OH.
Others involved in the McGhee network who were charged federally prior to this week include:
- Ronald Shaw, 51, of Wheeling, WV (Methamphetamine distribution);
- Jaron Wells, 36, of Wheeling, WV (Fentanyl distribution);
- Rocco Pandoli, 34, of Wheeling, WV (Cocaine distribution);
- Ebony Miranda Webb, 34, of Wheeling (Cocaine distribution); and
- Chellsie S. Boyer, 32, of Weirton (Methamphetamine distribution).
Motor vehicles used in furtherance of the conspiracy have been seized and will be subject to forfeiture, to include a GMC Sierra, Chevrolet Tahoe, a Polaris Slingshot, a Mercedes G-Class 450, a Bentley Continental, a BMW 535, a Cadillac XTS, a Chevrolet Cruze, a Buick Lacrosse, a Nissan Sentra, a Freightliner motor home, and an Acura.
Eleven parcels of real estate, five handguns, and three pieces of jewelry are also subject to forfeiture, along with the aforementioned U.S. currency.
Each defendant is presumed innocent until and unless proven guilty in a court of law. The potential penalties will vary for each defendant and depend upon the quantity of drugs attributed to each and their criminal history, if any.
Several of those charged remain incarcerated, including McGhee, Kirk, Martin, Dominguez, Griffin, Shaw, and Wells.
Assistant U.S. Attorney Shawn M. Adkins is representing the government.
The case was investigated by the Ohio Valley Drug Task Force, which includes officers from the Wheeling Police Department, the West Virginia State Police, the Ohio County Sheriff’s Department, and the Drug Enforcement Administration.
The Belmont County (OH) Sheriff’s Office and the Belmont County Prosecutor’s Office provided important assistance.
The investigation was supported by the ATF, the Marshall County Drug Task Force, and the Hancock-Brooke-Weirton Drug Task Force, the Allegheny County (PA) Police, and the U.S. Marshals Service.
Federal Jury Convicts Tulsa Man of Brutal Assault on Elderly VictimRead the Press Release
A federal jury convicted a Tulsa man Thursday for holding a 72-year-old woman captive in her own home and brutally assaulting her, announced U.S. Attorney Clint Johnson.
Elga Eugene Harper, 40, of Tulsa, was found guilty of kidnapping in Indian Country; aggravated sexual abuse by force and threat in Indian Country; assault with a dangerous weapon with intent to do bodily harm in Indian Country; and assault resulting in serious bodily injury in Indian Country.
“Elga Harper is a violent sexual predator who beat and sexually assaulted an elderly woman in her home,” said U.S. Attorney Clint Johnson. “At trial, the victim testified and faced her attacker. It is never easy for victims to relive the details of their assault, and I always admire the courage and strength it takes to do so. This week, a federal jury heard her story, reviewed the evidence, and delivered justice for this victim.”
Harper, a transient, had previously performed work at the victim’s home, and the two had numerous conversations about philosophy and her work in counseling. At one point, the woman told Harper she no longer needed his assistance and paid him in full for his services.
On May 4, 2022, several months after their last meeting, Harper returned unexpectedly to the victim’s home and approached her asking for work or counseling services. The woman declined then Harper asked to use the bathroom in her home. She agreed. When Harper did not exit the bathroom, the victim walked toward the back of the home and saw Harper standing naked in her room. He immediately attacked the victim.
During the next four-hours, Harper violently physically and sexually assaulted the victim and refused to call 911 when she pleaded for him to do so. He further ransacked her home in search of her car title, took her car keys, and told the victim to “shut up” when she prayed aloud. When he finally fled from her home at approximately 6 pm, the victim called 911, reporting the assault and that Elga Harper was responsible.
When officers arrived at the scene, they found the victim gravely injured, and she again identified her attacker as Harper. The victim was transported to the hospital. She suffered extensive injuries to her face, head, neck, arms, hands, and legs and continues to receive treatment for her injuries.
Harper was located and taken into custody on May 10, 2022.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorneys Chantelle D. Dial and Melody N. Nelson are prosecuting the case.
Enlisted Sailor Stationed in Belle Chasse, Louisiana Sentenced to 38 Years for Producing Files Depicting the Sexual Victimization of Children, Including Through ExtortionRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that BIAGIO WILLIAM AMBROSINO, age 20, originally from Queens, NY, who was an enlisted sailor stationed in Belle Chasse, Louisiana, was sentenced on February 7, 2023 by United States District Judge Wendy B. Vitter to 360 months as to Count 1, 240 months as to Count 3, with 100 months to be served consecutively, for a total of 460 months in prison, supervised release for a term of Life, a $200 mandatory special assessment fee, and registration as a sex offender.
The Court also scheduled a hearing to determine the amount of restitution AMBROSINO will owe to the victims for May 2, 2023, at 12:00pm. AMBROSINO previously pleaded guilty to one count of producing images and videos depicting the sexual exploitation of children, in violation of Title 18, United States Code, Section 2251(a) (Count 1) and transmitting interstate threats for the purpose of extorting a thing of value, in violation of Title 18, United States Code, Section 875(b) (Count 2).
According to court documents, the charges stem from AMBROSINO’S implementation of an exploitative and extortionate scheme to convince individuals to send him sexually explicit content between August 2020 and January 2022. AMBROSINO utilized several different strategies depending on victims’ ages, cognitive ability, level of compliance, and whether he previously knew them. For individuals he knew, AMBROSINO would, anonymously, either prey on their friendship or use information he already had about the individuals and their families to obtain sexually explicit depictions from them. For individuals he did not already know, AMBROSINO would utilize other measures. For example, AMBROSINO would contact some minors via social media direct message, purport to be a social media mogul, and inquire whether the minor wanted “to be Instagram famous.” He would then request a sexually suggestive or sexually explicit photograph to prove that the minor was serious about being famous or receiving a gift. Alternatively, AMBROSINO would offer items of value to minors, including a camera, a lighting system, sponsorship, or stuffed animals as enticements to take and send him sexually explicit pictures and videos or to engage in sexually explicit conduct while on a video chat with him. When victims expressed reluctance to provide him sexually explicit depictions or to continue doing so, AMBROSINO would extort them by threatening reputational harm or physical violence. Once AMBROSINO successfully obtained sexually explicit content from a victim, he continued to demand increasingly explicit, invasive, and humiliating content from his victims. Thereafter, AMBROSINO transmitted some of the sexually explicit depictions he obtained to other individuals in exchange for the identities of other, future potential victims.
AMBROSINO victimized at least eleven people, including nine minors ranging in age from ten to seventeen years old, one of whom had a diagnosed developmental cognitive disability and a speech disability. The identified victims were residents of eight different states and the country of Australia.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to 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.
U.S. Attorney Evans praised the work of the Naval Criminal Investigative Service (NCIS) in investigating this matter, with assistance from the New York Police Department. U.S. Attorney Evans also commended the efforts of Brandi Calagna, Victim-Witness Coordinator, and Melissa Meunier, Victim-Witness Specialist, in this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
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Elkhart Man Sentenced to 120 Months in PrisonRead the Press Release
SOUTH BEND – Toby Ray Taylor, 36 years old, of Elkhart, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Taylor was sentenced to 120 months in prison followed by 3 years of supervised release.
According to documents in the case, Taylor, had an outstanding parole warrant and when he was identified, police attempted to pull over his car. He tried to flee but was apprehended and law enforcement recovered a handgun under the driver’s seat which was loaded, had an extended magazine, and an obliterated serial number. Methamphetamine and marijuana was also discovered in the car. Taylor has a prior felony conviction and is prohibited from possessing the firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the St. Joseph County Police Department. This case was prosecuted by Assistant United States Attorney Luke N. Reilander and former Assistant United States Attorney Frank E. Schaffer.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Eastern District of Pennsylvania’s U.S. Attorney’s Office Hosts Presentation on Autism-Based Discrimination in Schools, Camps, and Childcare FacilitiesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that her Office, along with the United States Department of Education, Office for Civil Rights (“OCR”), in Philadelphia, hosted a panel presentation yesterday for disability rights organizations to discuss the problem of discrimination against children in public and private schools, camps, and childcare facilities, based on an autism spectrum diagnosis. The virtual event was attended by organizations that routinely work with families of children with disabilities.
The focus of the presentation was to inform the public of the efforts and enforcement tools of the United States Attorney’s Office and OCR to combat disability discrimination, with an emphasis on less-recognized and under-reported discrimination against children who have been diagnosed with autism.
The United States Attorney’s Office’s segment of the presentation focused on its primary tool to combat autism-based discrimination, the Americans with Disabilities Act (“ADA”). The Department of Justice enforces the ADA, which prohibits discrimination in a variety of settings because of disability. The presentation discussed the provisions of the ADA that apply to public and private schools, camps, and childcare facilities, and informed the public that these entities are required to comply with the ADA by providing disabled children with an equal opportunity to participate in programs, activities, and services.
To assist the public with identifying potential autism-based discrimination, and increase reporting, several examples of allegations investigated or resolved by the Department of Justice were discussed, including situations where children with autism were denied enrollment, disenrolled, or treated differently than other children in schools, camps, and childcare facilities.
“Autism is a spectrum condition, meaning that each child has different needs and abilities. The ADA prohibits schools, camps, and childcare facilities, whether public or private, from making blanket denials of enrollment, services, or activities without conducting an individualized assessment of the needs of children with autism. Our Office is committed to combating autism-based discrimination by helping the public identify and understand the options for reporting such potential violations of the ADA,” said U.S. Attorney Romero.
U.S. Attorney Jacqueline C. Romero; Assistant United States Attorney Stacey L. B. Smith, from the Civil Division of the United States Attorney’s Office in Philadelphia; and Andrea DelMonte, an attorney with the United States Department of Education, Office for Civil Rights in Philadelphia, presented to the attendees.
The United States Attorney’s Office encourages anyone who believes their child is being discriminated against by public or private schools, camps, or childcare facilities based on autism to review Department of Justice guidance and resources provided at www.ADA.gov, where complaints may also be filed. Individuals in Philadelphia and the surrounding counties of Berks, Bucks, Chester, Delaware, Lancaster, Lehigh, Montgomery, and Northampton may also file a complaint with the United States Attorney’s Office directly at 615 Chestnut Street, Suite 1250, Philadelphia, PA 19106, ATTN: Lauren DeBruicker, Civil Rights Deputy Chief. She may also be emailed at [email protected] or [email protected]
Individuals may also contact OCR at [email protected] to discuss the Department of Education’s enforcement options detailed during the presentation.
Eastern District of Pennsylvania’s U.S. Attorney’s Office Hosts Presentation on Autism-Based Discrimination in Schools, Camps, and Childcare FacilitiesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that her Office, along with the United States Department of Education, Office for Civil Rights (“OCR”), in Philadelphia, hosted a panel presentation yesterday for disability rights organizations to discuss the problem of discrimination against children in public and private schools, camps, and childcare facilities, based on an autism spectrum diagnosis. The virtual event was attended by organizations that routinely work with families of children with disabilities.
The focus of the presentation was to inform the public of the efforts and enforcement tools of the United States Attorney’s Office and OCR to combat disability discrimination, with an emphasis on less-recognized and under-reported discrimination against children who have been diagnosed with autism.
The United States Attorney’s Office’s segment of the presentation focused on its primary tool to combat autism-based discrimination, the Americans with Disabilities Act (“ADA”). The Department of Justice enforces the ADA, which prohibits discrimination in a variety of settings because of disability. The presentation discussed the provisions of the ADA that apply to public and private schools, camps, and childcare facilities, and informed the public that these entities are required to comply with the ADA by providing disabled children with an equal opportunity to participate in programs, activities, and services.
To assist the public with identifying potential autism-based discrimination, and increase reporting, several examples of allegations investigated or resolved by the Department of Justice were discussed, including situations where children with autism were denied enrollment, disenrolled, or treated differently than other children in schools, camps, and childcare facilities.
“Autism is a spectrum condition, meaning that each child has different needs and abilities. The ADA prohibits schools, camps, and childcare facilities, whether public or private, from making blanket denials of enrollment, services, or activities without conducting an individualized assessment of the needs of children with autism. Our Office is committed to combating autism-based discrimination by helping the public identify and understand the options for reporting such potential violations of the ADA,” said U.S. Attorney Romero.
U.S. Attorney Jacqueline C. Romero; Assistant United States Attorney Stacey L. B. Smith, from the Civil Division of the United States Attorney’s Office in Philadelphia; and Andrea DelMonte, an attorney with the United States Department of Education, Office for Civil Rights in Philadelphia, presented to the attendees.
The United States Attorney’s Office encourages anyone who believes their child is being discriminated against by public or private schools, camps, or childcare facilities based on autism to review Department of Justice guidance and resources provided at www.ADA.gov, where complaints may also be filed. Individuals in Philadelphia and the surrounding counties of Berks, Bucks, Chester, Delaware, Lancaster, Lehigh, Montgomery, and Northampton may also file a complaint with the United States Attorney’s Office directly at 615 Chestnut Street, Suite 1250, Philadelphia, PA 19106, ATTN: Lauren DeBruicker, Civil Rights Deputy Chief. She may also be emailed at [email protected] or [email protected]
Individuals may also contact OCR at [email protected] to discuss the Department of Education’s enforcement options detailed during the presentation.
Drug Dealer Sentenced to 78 Months for Conspiracy to Distribute Approximately 90,000 Counterfeit Pills Containing FentanylRead the Press Release
TUCSON, Ariz. – Last week, Eduardo Flores-Diaz, 43, of Mexico, was sentenced by United States District Judge Jennifer G. Zipps to 78 months in prison. Flores-Diaz pleaded guilty to Conspiracy to Possess with Intent to Distribute Fentanyl.
In April 2022, Flores-Diaz, traveled from Tucson, Arizona, with three co-conspirators. The conspirators were subsequently stopped in Scottsdale, Arizona, by federal agents and troopers from the Arizona Department of Public Safety (DPS), during a buy/bust operation. Approximately 90,000 counterfeit oxycodone pills containing fentanyl were discovered in their possession.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force operation. The OCDETF Strike Force Initiative identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The investigation was conducted by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Arizona Department of Public Safety. Assistant United States Attorney David Petermann, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-1094-JGZ-JR
RELEASE NUMBER: 2023-2016_Flores-Diaz# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Dallas man heads to prison for deed fraud schemeRead the Press Release
HOUSTON – A 61-year-old man has been sent to federal prison following his conviction of money laundering as well as conspiracy to commit and committing wire fraud, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury deliberated for approximately half a day following an eight-day trial before returning a guilty verdict Sept. 20, 2022, on all counts against Clarence Roland III.
Today, U.S. District Judge Lee H. Rosenthal ordered Roland to serve 120 months in federal prison to be immediately followed by three years of supervised release. Roland was ordered to pay restitution in the amount of $3,251,897.41. A money judgment in the amount of $1,984,642.09 was also entered. In handing down the sentence, the court noted Roland knew what he was doing was illegal and he pocketed the proceeds.
In 2009, Roland began working with co-conspirator Arlando Jacobs, 57, Oakland, California, in a deed fraud scheme to cancel and challenge mortgage loans held in the name of Jacobs or others. During this time, Roland frequently used the alias Joshua Stein, while Jacobs used Caleb Wright or Dexter Ponzey.
According to testimony, they solicited and received the help of other co-conspirators to establish over 11 business entities or shell companies and office spaces with mailing addresses in Houston, The Woodlands and Katy to carry out the scheme.
The jury heard that Roland and co-conspirators fraudulently acquired real property by manipulating and filing fraudulent deeds and other documents. Roland sold the properties and received profits from the sales. The original mortgage liens were not paid off and the mortgage holders were ultimately defrauded. Some title insurance companies were forced to pay buyer claims who had acquired the title when purchasing the real property Roland sold to them.
The co-conspirators fabricated a series of documents to falsely create the appearance of transferred ownership of real property to the shell companies. In order to do so, they signed documents claiming to represent one of the many entities in the transactions. The same names were used as signors on many documents and purported to represent different entities. They were also fraudulently notarized by using fake notary stamps.
The defense attempted to convince the jury the law allowed him to file fraudulent documents in the real property records to transfer title of houses on which there were mortgages so he could then sell them free of those mortgages. They did not believe those claims and found Roland guilty as charged.
Jacobs pleaded guilty in advance of trial in an unrelated fraud case in the Eastern District of Texas and was sentenced to 51 months in prison and ordered to pay restitution of $7.6 million.
Roland will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, Federal Housing Finance Agency - Office of Inspector General (OIG) and Housing and Urban Development - OIG conducted the investigation. Assistant U.S. Attorneys John Braddock and John Wakefield prosecuted the case.
Cocaine, Meth Trafficker Who Stashed $1.5 Million in Trap House Sentenced to 20 Years in Federal PrisonRead the Press Release
A drug trafficker who had more than $1.5 million stashed in his residence when agents raided his home was sentenced Wednesday to 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Hector Manuel Castro-Quirino, 49, pleaded guilty in September 2022 to conspiracy to distribute controlled substances and was sentenced this week by U.S. District Judge Barbara M.G. Lynn, who also ordered him to forfeit the $1,595,185 in U.S. currency seized from his home.
According to court documents, in June 2021, a confidential informant tipped off law enforcement about a drug house on South Acres Drive in Dallas. Over the next few weeks, agents and officers made a series of undercover purchases at the home.
On July 13, 2021, a SWAT team executed a search warrant. Officers initially confronted Mr. Castro in his kitchen, but he then fled to the attic before finally surrendering.
During a search of his master bedroom, law enforcement located five gallon sized bags containing bulk quantities of methamphetamine (594 grams) and cocaine (1,447.8 grams), along with drug ledgers containing customer and payment information and 14 firearms, several of them loaded. They also recovered copious amounts of cash stashed inside tube socks, shoe boxes, a trash bag, and a banker box. It took them several hours to count.
In plea papers, Mr. Castro-Quirino admitted that he regularly sold methamphetamine and cocaine, noting that he received roughly a kilogram of cocaine each week and a kilogram of methamphetamine each month. He said his common law wife, Vanesa Cervantes, 39, kept his books.
Ms. Cervantes pleaded guilty in September 2022 to misprision (concealment) of a felony and was sentenced in Wednesday to 21 months in federal prison.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division, the Dallas Police Department, and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Phelesa Guy prosecuted the case.
Christian County Man Sentenced to 10 Years in Federal Prison for Narcotics Trafficking and Weapons ChargesRead the Press Release
Paducah, KY – A Christian County man was sentenced yesterday to 10 years in prison, followed by a 5-year term of supervised release, for distributing methamphetamine and possessing a firearm after having previously been convicted of felony offenses.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Acting Special Agent in Charge Robert Maynard of the ATF Louisville Field Division made the announcement.
According to court documents, David Phillips, 43, distributed methamphetamine on three occasions between June 7, 2021, and July 1, 2021. On July 7, 2021, a search warrant was executed at his residence. Phillips was found to be in possession of over 50 grams of methamphetamine, a large amount of U.S. currency and a firearm. Phillips has prior felony convictions for third degree burglary, possession of a firearm by a convicted felon, and first-degree trafficking in a controlled substance – methamphetamine.
“I appreciate the excellent work in this case by ATF Bowling Green, the Christian County Sheriff’s Office, and AUSA Dycus,” stated U.S. Attorney Bennett. “As a result of the commitment that exists between our federal, state, and local law enforcement partners, the defendant, a previously convicted drug trafficker, will spend the next decade in federal prison unable to sell his poison and harm our citizens.”
“It is ATF’s core commitment to protect the public from offenders like David Phillips, whose continued armed drug trafficking places the community at risk,” said ATF Acting Special Agent in Charge Robert Maynard of the Louisville Field Division. “I want to extend my gratitude to ATF’s Bowling Green Office, the Christian County Sheriff’s Office, and the U.S. Attorney’s Office for this thorough investigation. This case is another great example of the collaborative work to continue to identify, arrest and convict the armed drug traffickers that are plaguing our communities and destroying our families.”
This case was investigated by the ATF Bowling Green Field Office and the Christian County Sheriff’s Office.
Assistant U.S. Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
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Chicago Resident Sentenced to Seven Years in Connection to International “Romance Scam”Read the Press Release
CHICAGO — A man who helped lead a multi-year fraud scheme carried out by individuals in the United States and Nigeria has been sentenced to more than seven years in federal prison.
OLANIYI NASIRU OJIKUTU, a 39-year-old legal permanent resident of the U.S., who was born in Nigeria and was residing in Chicago at the time of the crimes, was one of ten individuals indicted as the result of “Operation Gold Phish,” a Chicago-based investigation which identified a variety of cyber-enabled scams primarily targeting elderly victims. The schemers built trust with victims through a purported online romance before convincing the victims to send money. The victims were contacted via websites such as Match.com, Facebook, and Instagram.
After being notified of the charges against him in May of 2019, Ojikutu fled via bus to Canada but was apprehended seven months later. He was turned over to United States authorities in January 2020 and pled guilty to one count of wire fraud in July 2022.
Over the course of approximately three years, Ojikutu opened approximately 25 bank accounts in his own name, a fake name, and a shell company name through which approximately $3.4 million in fraudulently obtained proceeds were transferred. Ojikutu used the fraudulently obtained funds for his own personal benefit, including to purchase vehicles in the United States and ship them to Nigeria for resale. As the result of Ojikutu’s actions, some victims lost hundreds of thousands of dollars.
On February 8, 2023, U.S. District Judge John Robert Blakey imposed an 88-month prison sentence for Ojikutu. All but one of the nine defendants in U.S. custody have pled guilty in this case. The alleged leader, DANIEL SAMUEL ETA, also known as “Captain” and “Etaoko,” 35, of Skokie has plead not guilty and his case is still pending.
The sentence is announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Kai Pickens, Acting Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. Valuable assistance was provided by the Nigerian Economic and Financial Crimes Commission. Assistant U.S. Attorney Charles W. Mulaney represented the government.
The FBI estimates that approximately 24,000 people lost more than $956 million in romance scams in 2021 alone. For tips on how to protect yourselves and your loved ones, visit the Federal Trade Commission’s romance scam webpage. To report a suspected romance fraud, file a report via the FBI’s Internet Crime Complaint Center at www.ic3.gov.
Carrabba’s Robber Who Forced Employees into Closet Gets 97 Months in PrisonRead the Press Release
WILMINGTON, N.C. – A Wilmington man was sentenced today to 97 months in prison for Interference with Commerce by Robbery and Brandishing a Firearm in the Furtherance of a Crime of Violence. On June 1, 2022, Cornelius Riley, age 62, pled guilty to the charges. Through witness interviews, officers learned that Riley arrived at Carrabba’s Italian Grill in Wilmington after it was closed to the public and encountered an employee exiting the restaurant after finishing their shift. He then brandished a firearm and forced his way into the restaurant where he forced the employees to open the safe and empty cash drawers. Riley also demanded the security footage, but when the CD wouldn’t eject, he unhooked the recorder and threw it on the ground. Riley then forced the employees into a closet where he told them to wait.
According to court documents and other information, on November 20, 2020 at approximately 11:50 p.m., officers with the Wilmington Police Department responded to the Carrabba’s after receiving a call about an armed robbery in progress. When officers responded, they saw the defendant attempting to exit the restaurant with multiple items in his hands, however, when he saw police, he ran back inside. After a short standoff, Riley exited the restaurant and was placed under arrest. In a search incident to arrest, officers located approximately $490.00 in US Currency on Riley’s person that belonged to the restaurant. When officers searched the restaurant, they located a .22 caliber pistol in a trashcan, a pair of vinyl gloves, a closed zipper bank bag containing $1,900.00 in US Currency and assorted restaurant receipts and saw that multiple cash registers were disturbed, and the video recording system was on the floor. Officers interviewed the defendant who admitted to possessing the firearm found in the restaurant and admitted to trying to rob the restaurant.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Wilmington Police Department investigated the case and Special Assistant United States Attorney William Van Trigt prosecuted the case. Mr. Van Trigt is a prosecutor with the New Hanover County District Attorney’s Office. District Attorney Ben David has assigned him to the United States Attorney’s Office to prosecute federal violent crimes and other criminal matters. This has been made possible by a grant funded by New Hanover County.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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. 7:22-cr-00143FL
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Cape Girardeau Man Sentenced to Serve 9 Years in Federal Prison for Unlawfully Possessing FirearmRead the Press Release
CAPE GIRARDEAU - The United States Attorney's Office announced that Mark A. Brand, 33, of Cape Girardeau, Missouri, was sentenced to serve 9 years in federal prison for the offense of Felon in Possession of a Firearm. Brand appeared for his sentencing hearing today before United States District Judge Stephen N. Limbaugh, Jr. at the federal courthouse in Cape Girardeau, Missouri.
At a guilty plea hearing last year, Brand admitted that he attempted to flee from law enforcement officers in the City of Cape Girardeau during a criminal investigation in October 2019. A high-speed pursuit ensued. Brand eventually lost control of his car and crashed, at which point he tried to run away on foot. He was apprehended after a short foot chase. A backpack was found lying on the ground near Brand’s car, which contained a semi-automatic pistol and a revolver. Brand is prohibited from possessing firearms under federal law because of his status as a convicted felon, including a 2009 federal drug-trafficking conviction.
After serving his sentence, Brand will be placed on supervised release for a period of three years.
This case was investigated by the Cape Girardeau Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Jack Koester handled the prosecution for the government.
Calais Man Sentenced to 5 Years for Distributing Child Sexual Abuse MaterialRead the Press Release
BANGOR, Maine: A Calais man was sentenced today in U.S. District Court in Bangor for distributing child sexual abuse material.
U.S. District Judge Lance E. Walker sentenced Samuel Staples, 27, to 60 months in prison and five years of supervised release. Staples pleaded guilty on August 31, 2022.
According to court records, in September 2021, Staples began a chat session with the administrator of a social networking group dedicated to sharing child sexual abuse material and sent the administrator a sexually explicit image of a prepubescent female child. Based on this information, a search warrant was executed at Staples’ residence, and during the search, Staples admitted sending the image. Multiple images and videos of child pornography were also found on his cell phone.
Homeland Security Investigations, the Maine State Police Computer Crimes Unit, and the Calais Police Department investigated the case.
To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material – "child pornography" – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer re-victimization each time the images are viewed. File a report with the National Center for Missing & Exploited Children at https://report.cybertip.org/ or 1-800-843-5678. Your report will be forwarded to a law enforcement agency for investigation and action. If you have an emergency that requires an immediate law enforcement response, call 911 or contact your local police or sheriff’s department.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
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Biloxi Man Sentenced to 3 Years in Prison for Possession with Intent to Distribute FentanylRead the Press Release
Gulfport, Miss. – A Biloxi man was sentenced to 36 months in federal prison for possession with intent to distribute fentanyl, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
Dean Carlin Fender, 26, was sentenced in U.S. District Court in Gulfport.
According to court documents, in July of 2021, as part of the investigation into the death of an airman at Keesler Air Force Base, a drug trafficking organization was identified as operating in the sale of counterfeit pills containing fentanyl in Harrison County, Mississippi. It was learned that this drug organization had provided fentanyl to Emmett Bennett who then caused a traffic accident on the base, killing one airman and injuring three others. As a result of this investigation, Dean Fender was identified as the person who sold fentanyl to Bennett. On September 2, 2021, 20 counterfeit Percocet tablets containing fentanyl were purchased from Fender in a controlled drug buy.
Fender was indicted by a federal grand jury on September 7, 2022. He pled guilty on November 9, 2022, to possession with intent to distribute fentanyl.
The case was investigated by the Drug Enforcement Agency.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
Auburn Man Sentenced to 6 1/2 Years for Receipt and Possession of Child Sexual Abuse MaterialRead the Press Release
PORTLAND, Maine: An Auburn man, formerly of Hollis, was sentenced today in U.S. District Court in Portland for receipt and possession of child sexual abuse material.
Chief U.S. District Judge Jon D. Levy sentenced Dylan Carmichael-Margel, 31, to 78 months in prison followed by five years of supervised release. He was also ordered to pay $34,000 in restitution. Carmichael-Margel pleaded guilty on June 23, 2022.
According to court records, between May 2020 and January 2021, Carmichael-Margel knowingly received and possessed images and videos of child sexual abuse material. Some of the images depicted children under 12. In January 2021, Homeland Security Investigations (HSI) executed a search warrant at Carmichael-Margel’s Hollis residence and seized a cell phone and laptop. Child sexual abuse material was recovered from both devices. Child sexual abuse images recovered from the cell phone included victims as young as two years old.
HSI investigated the case.
To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material – “child pornography” – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer re-victimization each time the images are viewed. File a report with the National Center for Missing & Exploited Children at https://report.cybertip.org/ or 1-800-843-5678. Your report will be forwarded to a law enforcement agency for investigation and action. If you have an emergency that requires an immediate law enforcement response, call 911 or contact your local police or sheriff’s department.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
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Armed Fentanyl Dealer Sentenced to More Than Seven Years in Federal PrisonRead the Press Release
Jacksonville, FL – U.S. District Judge Marcia Morales Howard has sentenced Brandon Corey Skeith (40, Jacksonville) to seven years and eight months in federal prison for possessing fentanyl and cocaine base with the intent to distribute it and possessing a firearm in furtherance of a drug trafficking crime. Skeith had pleaded guilty on November 3, 2022.
According to court documents, Skeith was selling drugs out of a motel near Dunn Avenue in Jacksonville. In April 2022, the Jacksonville Sheriff’s Office Narcotics Unit observed Skeith selling fentanyl from the motel and obtained a search warrant for his room. During the execution of the search warrant, Skeith was caught with fentanyl packaged for sale, cocaine base, scales, beakers and a loaded Smith and Wesson 9mm pistol. The Florida Department of Law Enforcement analyzed the pistol and found Skeith’s DNA on the firearm.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Frank Talbot. Assistant United States Attorney Mai Tran handled the forfeiture of the firearm and ammunition.
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.
Armed Career Criminal Sentenced to over a Decade in Federal PrisonRead the Press Release
A man who barricaded himself in a residence with a small child, stolen firearms, narcotics, and dozens of rounds of ammunition, was sentenced on February 8, 2023, to 15 years in federal prison.
Darren Ackerman, age 39, from Waterloo, Iowa, received the prison term after an August 22, 2022 guilty plea to being a felon in possession of firearms.
At a prior hearing in the case, evidence showed that, on October 25, 2020, Ackerman assaulted a victim who fled the home they were in. After the police were called, Ackerman refused to come to the door and barricaded himself inside with a small child. Police were forced to break down Ackerman’s door in order to rescue the child. Ackerman had narcotics in his possession and there were dozens of rounds of ammunition as well as five stolen firearms in the house. Ackerman was previously convicted of multiple felonies in the state of Iowa including burglary, theft, and narcotics related offenses.
Ackerman was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Ackerman was sentenced to 180 months’ imprisonment and fined $100. He was ordered to pay restitution. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Ackerman is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Liz Dupuich and was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-cr-2023.
Follow us on Twitter @USAO_NDIA.
Arkansas Man Sentenced to Ten Years in Federal Prison for Meth ConvictionRead the Press Release
A man who conspired to distribute methamphetamine and distributed methamphetamine was sentenced on February 2, 2023, in federal court in Sioux City.
Leocadio Contreras-Sebastian, 38, from Warren, Arkansas, pled guilty on August 24, 2022, to one count of conspiracy to distribute methamphetamine and one count of distributing methamphetamine.
At the plea and sentencing hearings, evidence showed that from January 2020 through April 2, 2022, Contreras-Sebastian and others distributed at least 3.53 kilograms of pure methamphetamine in the Sioux City, Iowa area. On April 2, 2022, law enforcement conducted a controlled drug buy operation from defendant and his co-conspirators. Contreras-Sebastian distributed over 3 kilograms of pure methamphetamine in exchange for an initial payment of $5,000. Contreras-Sebastian admitted that he traveled from Arkansas to Sioux City, Iowa for the purposes of delivering the methamphetamine to another co-conspirator.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Contreras-Sebastian was sentenced to 10 years’ imprisonment and must serve a five-year term of supervised release. There is no parole in the federal system. Contreras-Sebastian remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4026. Follow us on Twitter @USAO_NDIA.
Anchorage Man Sentenced to 10 Years for Stealing 22 GunsRead the Press Release
Defendants fired weapons during police chase and used stolen vehicle in commission of crimes
ANCHORAGE – An Anchorage man was sentenced yesterday to 10 years in federal prison for stealing 22 firearms from an Anchorage gun store in 2019.
According to court documents, Gian Carlo Clemente Pangilinan aka “G,” 26, pleaded guilty in September 2022 to stealing 22 firearms from Granny’s Guns, a federally licensed firearms dealer located in Anchorage, on June 6, 2019, along with three co-conspirators.
Pangilinan and the three co-conspirators drove a stolen Chevy Trailblazer to Wrightway Auto Carriers in Anchorage where they broke into the building and stole license plates, filing cabinets and a GMC Sierra pickup. Pangilinan and a co-conspirator then got into another stolen vehicle, a Chevy Suburban, and drove it through the front window of Granny’s Guns. The two other co-conspirators drove the stolen pickup alongside the broken window and loaded 22 firearms into the back of the truck and drove away. They later transferred the stolen firearms from the truck into a black GMC Denali and lit the stolen GMC Sierra pickup on fire in an effort to destroy evidence.
Later the same day, officers with the Anchorage Police Department tried to stop the GMC Denali and an associated gold pickup when multiple shots were fired from the gold pickup, occupied by Pangilinan and a co-conspirator. On June 18, 2019, Pangilinan and two co-conspirators attempted to recover an impounded vehicle which contained one of the stolen firearms from the Granny’s Guns burglary. All four co-conspirators were indicted in October 2020 and subsequently arrested on the charges. Pangilinan is also facing charges in state court.
“Stolen firearms are a threat to the safety of all Alaskans,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “The blatant disregard for public safety and law enforcement both during and after this series of violent crimes by Pangilinan and his co-conspirators show just how dangerous they are to our community. We will continue to work closely with local, state and federal law enforcement to fight violent crime and keep our communities safe from people who endanger our neighborhoods.”
“All of the involved defendants demonstrated a complete indifference to the safety of others through their actions in their violent crime spree,” stated Police Chief Michael Kerle. “From the theft of multiple vehicles, to firing shots in public, driving erratically on our streets, and stealing multiple firearms; it is imperative they are held accountable for their behavior. Pangilinan’s sentencing is a big part of that. We are grateful for the efforts of all our law enforcement partners who were involved in seeing this case through.”
Co-conspirators in this case include:
- Muna Junior Rode, 23, pleaded guilty to stealing firearms and is awaiting sentencing.
- Kao Chiang Saelee, aka “Robbie,” 40, pleaded guilty to conspiracy to steal firearms from a licensed dealer and was sentenced to 5 years’ imprisonment.
- Hans Mikaele Wells, aka “Mika,” 26, pleaded guilty to stealing firearms and was sentenced to 9 years’ imprisonment.
The Anchorage Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case.
Assistant U.S. Attorney Jennifer Ivers prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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80-year-sentence imposed for sexual exploitation of multiple minor female victimsRead the Press Release
HOUSTON – A 26-year-old Houston resident has been ordered to federal prison for production and distribution of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Xavier Jay Reyes pleaded guilty Aug. 15, 2022, to two counts of sexual exploitation of a child and one count of distribution of child pornography.
Today, U.S. District Judge David Hittner sentenced Reyes to a total of 960 months in federal prison for all counts of conviction. He must also serve 10 years of supervised release, during which time, he will have to comply with numerous requirements designed to restrict his access to children and the internet.
In imposing the sentence, Judge Hittner also considered numerous impact statements from the exploited child victims Reyes used to create the child pornography he possessed in his collection.
Restitution will decided at a later date.
“Abhorrent and serial sexual abuse of minors will not be tolerated in the Southern District of Texas. Today’s sentencing makes that clear,” said Hamdani. “The damage has been done, but we hope this sentence gives some peace to the victims and helps in the long process of rebuilding their lives.”
In 2020, during an undercover online child pornography investigation, law enforcement discovered Reyes was producing and sharing images and videos of a minor female child engaging in sexually explicit conduct. The produced material included images and videos depicting Reyes engaging in violent, coercive and degrading abuse of the minor female victim.
A search warrant led to the discovery that Reyes abused and exploited at least two minor female victims for over a year. Reyes ultimately admitted to abusing at least one child victim.
Additionally, authorities discovered a collection of 907 images and 781 videos containing child pornography.
Reyes has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility in the near future.
Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorneys Sherin Daniel and Luis Batarse are 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 tab on that page.
Wednesday 8 February 2023
Worcester Man Pleads Guilty to Firearm and Ammunition OffenseRead the Press Release
BOSTON – A Worcester man pleaded guilty on Feb. 6, 2023 to unlawfully possessing a loaded firearm while a convicted felon.
Ahmed Sullay, 26, pleaded guilty to one count of being a felon in possession of a firearm and ammunition before U.S. District Court Judge Mark G. Mastroianni who scheduled sentencing for May 17, 2023. Sullay was indicted by a federal grand jury in May 2021.
On the evening of Nov. 18, 2020, a local officer on patrol observed a driver – later identified as Sullay – travelling in the wrong direction of a one-way road in Worcester. When the officer activated his emergency lights, Sullay reversed his vehicle at high speed and crashed into a traffic sign before fleeing on foot wearing sweatpants and a sweatshirt. The officer followed in pursuit before eventually losing sight of Sullay when he ran onto a nearby street. Soon after, Sullay was seen wearing only his underwear as he ran from a darkened alley in the vicinity towards a nearby parking lot. There, Sullay stole a black SUV and sped away without headlights before colliding with another vehicle at an intersection. Sullay was immediately taken into custody.
Sullay discarded a loaded Jimenez Arms, Model J.A. Nine, 9mm firearm while fleeing after his initial crash. Sullay is prohibited from possessing a firearm due to prior convictions.
The charging statute provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Worcester Police Chief Steven M. Sargent made the announcement. Assistant U.S. Attorney Danial E. Bennett of Rollins’ Worcester Branch Office is prosecuting 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.
Williston Man Sentenced for Threatening Department of Veterans Affairs EmployeesRead the Press Release
BISMARCK – United States Attorney Mac Schneider announced that on February 8, 2023, U.S. District Court Judge Daniel L. Hovland sentenced Curtis Lee Moran, age 41, from Williston, ND, to serve 12 months in federal prison and 3 years of supervised release for committing the offense of Threatening Interstate Communications, in violation of 18 U.S.C. § 875(c). On June 16, 2022, law enforcement arrested Moran for this offense. Subsequently, the District Court ordered that Moran be detained pending resolution of his case. On November 3, 2022, the defendant pleaded guilty to the offense of Threatening Interstate Communications.
On June 14, 2022, Moran made several threatening phone calls to individuals employed with the United States Department of Veterans Affairs (VA). Initially, Moran called the White House VA Call Center and stated that he was going to kill his doctor. Thereafter, Moran called the Fargo VA Medical Center and left voice messages stating he was going to stab and harm his Fargo VA Medical Center doctor. The next day, on June 15, 2022, Moran again called the Fargo VA Medical Center and left a voicemail stating that he was going to shoot up the hospital.
“VA personnel and the veterans they serve should feel safe while working and receiving care within VA facilities,” said Special Agent in Charge Gregory Billingsley with the Department of Veterans Affairs Office of Inspector General’s Central Field Office. “The VA OIG and our law enforcement partners are committed to identifying and stopping individuals who would threaten VA personnel and operations.”
This case was investigated by the United States Department of Veterans Affairs- Office of Inspector General and prosecuted by Assistant U.S. Attorney Jonathan J. O’Konek.
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Visalia Resident Sentenced to 16.5 Years in Prison for Trafficking MethamphetamineRead the Press Release
FRESNO, Calif. — James Cox, 60, of Visalia, was sentenced today to 16 years and six months in prison for conspiring to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Cox and a third party, acting at Cox’s direction, received over a pound of methamphetamine in two separate transactions from co-defendant Renato Aguilera, 31, of Porterville, after negotiating with Pedro Delgado-Montenegro, 43, a former Porterville resident and a citizen of Mexico.
This case is the product of an investigation by the Drug Enforcement Administration with assistance from the Federal Bureau of Investigation, the Porterville Police Department, the Coalinga Police Department, and the Fresno Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Aguilera has pleaded guilty to participating in the drug conspiracy and was sentenced to seven years and three months in prison. Charges are pending against Delgado-Montenegro; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Visa holder convicted on drug conspiracy chargesRead the Press Release
LAREDO, Texas – A 53-year-old Mexican national who was residing in Houston has been convicted of trafficking approximately $650,000 in meth, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury sitting in Laredo deliberated for less than two hours before convicting Ana Maria Pena Gutierrez on both counts as charged following a two-day trial.
A former member of the conspiracy testified at trial and explained how Pena had hired and paid him to drive vehicles to and from Mexico. He also described he had 60 kilograms of meth on Feb. 25, 2021, which led to his arrest at a Laredo port of entry.
The jury also heard from an expert in financial records describing how irregular Pena’s bank activities were. Law enforcement also testified and detailed Pena’s confession and the entire conspiracy.
The jury heard approximately 100 kilograms of meth could be attributed to Pena which had an estimated street value of $650,000.
Pena attempted to convince the jury she did not know the drivers were transporting drugs into the United States. They did not believe her claims and found her guilty as charged.
U.S. District Judge Diana Saldana presided over the trial and will set sentencing at a later date. At that time, Pena faces up to life in prison as well as a possible $10 million fine. As a visa holder, she could also face removal proceedings.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Matthew Isaac and Jose Angel Moreno prosecuted the case.
U.S. Attorney’s Office Reaches Settlement Resolving Allegations that Charter Jet Service Repeatedly Violated Aviation Safety RegulationsRead the Press Release
The United States Attorney for the Southern District of Indiana, Zachary A Myers, announced today that Indy Jet Management, LLC and associated parties, Gary Aletto, GSA Investment, Inc., AirXL, LLC, Excel 2 LLC, Excel 3 LLC, Excel 4 LLC, CJI LLC, Indy Bravo LLC, Bradley Cable, and Citation Management LLC (“AirXL et al.”), have agreed to resolve allegations that they conducted illegal charter flights.
The settlement resolves allegations that between March 2017 and February 2018, Indy Jet Management operated approximately 168 paid passenger-carrying flights in violation of Federal Aviation Administration (“FAA”) safety regulations.
The FAA recognizes two types of leases of aircraft: “wet leases,” in which a charter jet company provides an aircraft and crew, and “dry leases,” in which an aviation leasing company leases only an aircraft—and the lessee is responsible for obtaining its own pilots and services. The FAA requires charter jet companies that provide aircraft and crew to their customers through “wet leases” to obtain operating or air carrier certificates. These charter jet companies must also ensure their pilots adhere to certain qualification standards for training, testing, and competency.
The FAA alleges that the Indy Jet Management and its associated entities sold customers charter jet services under sham “dry leases” with one company to purportedly lease aircraft without any pilots or services provided. Customers then simultaneously entered into contracts for pilot services with another Indy Jet Management-related company. Together, the contracts served as a package deal to provide a piloted charter jet service while evading the FAA certification and pilot qualification regulations that apply to “wet leases.” The FAA further alleged that the parties used unqualified pilots who did not complete the training, testing, and competency checks that the FAA requires.
Under the terms of settlement agreement, AirXL et al. agreed that it no longer operates in the same manner and has paid a $187,500 civil penalty.
U.S. Attorney Myers thanked Assistant United States Attorney Rachana Fischer, who represented the United States in this case.
The claims resolved by this settlement are only allegations; there has been no determination of liability.
U.S. Attorney’s Office Collects over $1 Billion in Civil and Criminal Actions, over $10 Million in Forfeiture, and Seizes 341 Firearms in Fiscal Year 2022Read the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that the Eastern District of Louisiana collected slightly over $1 billion in criminal and civil actions in fiscal year 2022. Of this amount, $7.78 million was collected in criminal actions and $992.4 million was collected in civil actions.
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 assistance programs.
Additionally, the U.S. Attorney’s Office for the Eastern District of Louisiana, working with partner agencies and components, collected over $10 million in asset forfeiture actions and seized 341 firearms in FY 2022. Forfeited funds are used to restore funds to crime victims and for a variety of law enforcement purposes. Seizing firearms not only deprives criminals of the weapons they use to commit their crimes, it also helps dismantle criminal organizations. The weapons are destroyed after the case in which they were seized is closed, the weapons are judicially forfeited, and they are no longer needed as evidence.
Highlights of the Eastern District of Louisiana’s 2022 collection and forfeiture efforts include:
- The collection of over $850 million in civil penalties, damages, and costs from BP Exploration & Production Inc. imposed as a result of the 2010 Deepwater Horizon oil spill.
- Following a guilty plea to one count of wire fraud, Ritchel Morehead’s payment of $310,205.91 to satisfy the outstanding balance of the restitution obligation she owed to the victims of her fraudulent investment scheme.
- The forfeiture of $1,473,393.50 in ill-gotten gains stemming from the prosecution of Erik Martin and Darrel Fitzpatrick for what the sentencing judge called a “massive bribery and fraud scheme” involving kickbacks and payoffs targeting the United States Marine Corps.
- The seizure of thirty-six (36) firearms from Michael Malone, a convicted felon and prohibited possessor of firearms, pursuant to an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
“These statistics demonstrate our commitment and dedication to victims of crimes and to the citizens of the Eastern District of Louisiana through the successful forfeiture and collection of funds in civil and criminal cases,” said U.S. Attorney Evans. “Our office’s Monetary Penalties and Recovery Unit helps to protect the public by holding accountable those who have profited from the crimes they committed both in our District, and beyond. Equally important, the seizure of dangerous firearms from prohibited individuals helps reduce violent crime in our community.”U.S. Attorney Evans thanks Asset Forfeiture Assistant United States Attorney Alexandra Giavotella, Financial Litigation Assistant United States Attorney Churita Hansell, as well as the Office’s outstanding support professionals Jerrilyn A. Dufauchard, David Vigier, Ilan Adona, Danielle Smith-Graham, Christina Garcia, and Monica Washington for their hard work and dedication to the pursuit of justice.
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Two Defendants Sentenced to 202 Years' and 40 Years' Imprisonment, Respectively, for their Participation in the Murder and Extortion of Queens Business OwnerRead the Press Release
Earlier today, in federal court in Brooklyn, Ppassim Elder, also known as “Bsam,” “Big Sam” and “Sam,” and Wilbert Bryant, also known as “Will” and “La,” were sentenced by United States District Judge William F. Kuntz II, to terms of imprisonment of 202 years and 40 years, respectively. The defendants were sentenced for extortion and fraud offenses following their conviction after a three-week trial in September and October 2021. At trial, the evidence showed that Elder and Bryant participated in an extortion scheme during which one victim was pistol-whipped and another victim was fatally shot in the face.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
“The defendants are guilty of multiple crimes of violence and fraud that victimized many persons, including the patriarch of a Queens family who was gunned down in his place of business,” stated United States Attorney Peace. “The defendants will deservedly serve lengthy prison sentences for their ruthless and vicious conduct.”
Mr. Peace also expressed his thanks to the Federal Bureau of Investigation, New York Field Office, the New York City Police Department, and the Queens County District Attorney’s Office for their assistance during the investigation and prosecution.
As proven at trial, on the morning of October 23, 2017, Bryant and two co-conspirators entered Garden Valley Distributors, a family-owned wholesale distribution center in Ozone Park, Queens. The perpetrators said that “Big Sam” sent them to collect his money. Earlier that year, Elder, who was known as “Big Sam,” had loaned Hani Kasem’s son money, which the son used to support the business. When Elder demanded full repayment, the son was unable to repay the debt because the money had been used to purchase merchandise for the business. Elder then began a campaign of intimidation against the son and his family. On one occasion, Elder paid co-conspirators to throw a rock through a window of the victim’s home. On another occasion, Elder barged into Kasem’s home, intimidating members of his family. Finally, Elder dispatched Bryant and two co-conspirators to the Garden Valley Distributors business where the perpetrators brandished a firearm, pistol-whipped the son and shot Kasem in the face, mortally wounding him.
In addition to the murder, Elder extorted another person whose brother had stolen the proceeds of a fraud scheme perpetrated by Elder. Although the victim was not involved in the theft, Elder punched him in his face in front of his daughters, breaking and bloodying his nose in order to “send a message” to the victim’s brother. Elder and Bryant were also convicted of bank fraud conspiracy for lying to banks about the true owner of certain bank accounts, which permitted Elder to defraud innocent victims across the country, including an elderly man who lost over $30,000 when he was tricked into believing he was purchasing a car and another individual who lost over $150,000 when he was defrauded into believing he was purchasing two real estate properties. Elder was also convicted of crimes committed after his arrest in this case, including stealing his attorney’s identity and lying to federal officials.
This case was brought as 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 make our neighborhoods safer for everyone. As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Genny Ngai and Anna L. Karamigios are in charge of the prosecution.
The Defendants:
PPASSIM ELDER (also known as “Bsam,” “Sam,” and “Big Sam”)
Age: 43
Staten Island, New YorkWILBERT BRYANT (also known as “Will” and “La”)
Age: 58
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-92 (S-5) (WFK)
Tucson Man Sentenced for Making False Statement to Federal Agents During Investigation into Mass ShootingRead the Press Release
TUCSON, Ariz. – Josue Lopez Quintana, 25, of Tucson, Arizona, was sentenced last week by United States District Judge Jennifer G. Zipps to a time-served sentence and three years of supervised release. He also was ordered to pay a $3,000 fine for lying to federal agents in connection with an investigation into a mass shooting in Tucson. As a result of Quintana’s felony conviction, he will be prohibited from possessing a firearm.
On August 25, 2022, following a mass shooting in Tucson, Arizona, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) initiated an investigation into the purchase of a firearm used in the shooting that resulted in the deaths of four individuals. An ATF trace of the firearm confirmed that the firearm’s lower receiver was purchased by Quintana at a Federal Firearms Licensee (FFL) in Tucson, Arizona, in November 2021. According to court records, Quintana filled out an ATF form at the FFL stating that he was the true purchaser of the lower receiver, and that he was not acquiring it on behalf of another person.
On August 26, 2022, federal agents interviewed Quintana about the purchase, at which point Quintana falsely stated that he purchased the lower receiver for himself and not someone else. After agents presented text messages contradicting his story, Quintana admitted he lied and that he purchased the lower receiver on behalf of the individual who later perpetrated the mass shooting. There is no evidence that Quintana knew the intent of the shooter, and Quintana quickly accepted responsibility for his actions.
The investigation was conducted by the ATF with assistance from the Tucson Police Department and Homeland Security Investigations. The Financial Crimes and Public Corruption Section of the United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-02232-JGZ-EJM
RELEASE NUMBER: 2023-014_Quintana# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Texas Man Pleads Guilty to 90 Federal Hate Crimes and Firearms Violations for August 2019 Mass Shooting at Walmart in El Paso, TexasRead the Press Release
A Texas man who carried out the mass shooting at the Cielo Vista Walmart in El Paso, Texas, on Aug. 3, 2019, killing 23 people and injuring 22 more, pleaded guilty today in U.S. District Court to a 90-count indictment, including 45 counts of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act and 45 counts of using a firearm during and in relation to crimes of violence.
Pursuant to the plea agreement, the defendant, Patrick Wood Crusius, 24, has agreed to accept 90 consecutive life sentences, one for each count in the indictment. The guilty plea included 23 counts for hate crime acts that resulted in the deaths of Andre Anchondo, Jordan Anchondo, Arturo Benavides, Jorge Calvillo Garcia, Guillermo Garcia, Leonardo Campos, Angelina Englisbee, Maria Flores, Raul Flores, Adolfo Cerros Hernandez, Alexander Hoffmann, David Johnson, Luis Alfonso Juarez, Maria Legarreta Rothe, Maribel Loya Hernandez, Ivan Filiberto Manzano, Gloria Irma Marquez, Elsa Mendoza Marquez, Margie Reckard, Sara Regalado Monreal, Javier Amir Rodriguez, Teresa Sanchez, and Juan Velasquez.
The plea also included 22 hate crime acts that caused bodily injury and involved attempts to kill 22 people injured in the shooting. In addition to the hate crimes, the defendant pleaded guilty to 45 firearms violations, 23 counts of using a firearm in a federal crime of violence resulting in death, and 22 counts of using a firearm in a federal crime of violence.
“Today, the Justice Department secured the guilty plea of Patrick Wood Crusius, a self-described white nationalist, for federal hate crime and firearms offenses in connection with the deadly mass shooting targeting people perceived to be Hispanic immigrants at a Walmart in El Paso, Texas, in 2019,” said Attorney General Merrick B. Garland. “Nothing can undo the immeasurable loss suffered by the loved ones of the victims of that attack or the terror inflicted on the El Paso community in its wake. Today’s action makes clear that the Justice Department will not tolerate hate-fueled violence that endangers the safety of our communities.”
“Today’s guilty plea marks one more step towards justice for the El Paso community; however, we must remember that the survivors and victims’ families will be on a lifelong journey of healing because of this defendant’s actions,” said FBI Director Christopher Wray. “We extend our heartfelt sympathy to the Hispanic community who had their sense of security shattered by this heinous attack. The FBI will continue to seek justice for all those whose civil rights and safety are threatened by hate.”
“White nationalist-fueled violence has no place in our society today,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “This senseless massacre violates the law, runs contrary to our values as Americans and defies the principles of tolerance and inclusion that define us as a nation. By pleading guilty, the defendant has admitted that he murdered innocent people based on their national origin and targeted Hispanics. The Justice Department will continue to use every tool at its disposal to combat hate crimes, hold perpetrators accountable, and seek justice for the victims and survivors. This guilty plea cannot bring back those whose lives were lost, or heal those still suffering, but it does put us firmly on the path to justice. Our hearts are with the victims of this horrendous crime, their families, and the entire community.”
“It has always been our intent to obtain proper justice for all the victims of the senseless El Paso shooting, their ever-resilient families, and the courageous community that continues to feel the pain of that day,” said First Assistant U.S. Attorney Margaret Leachman for the Western District of Texas. “We continue to stand in support of all whose lives have been impacted, and my hope is that this plea leads to a sentence that can serve as an example of how the United States justice system does not tolerate anyone who chooses to harm our loved ones and our neighbors, especially when motivated by hatred.”
According to the statement of facts agreed to and signed by Crusius and entered into the court record at his guilty plea hearing, Crusius admitted that he killed and wounded people at the Walmart because of the actual and perceived Hispanic national origin of the people he expected to be at the Walmart. He further admitted that he intended to kill everyone he shot.
Crusius also admitted he wrote a manifesto, titled “An Inconvenient Truth,” and uploaded it to the internet minutes before he commenced his attack. In it, he characterized himself as a white nationalist, motivated to kill Hispanics because they were immigrating to the United States. Crusius admitted to selecting El Paso, a border city, as his target to dissuade Mexican and other Hispanic immigrants from coming to the United States.
The FBI investigated the case, in partnership with the El Paso Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); the Texas Department of Public Safety; the El Paso County Sheriff’s Office; the El Paso County Office of the Medical Examiner; the Allen Police Department; and the Dallas Police Department.
Assistant U.S. Attorneys Ian Hanna, Gregory McDonald, and Patricia Acosta for the Western District of Texas’ El Paso Division and Trial Attorneys Kyle Boynton of the Civil Rights Division’s Criminal Section and Michael Warbel of the Criminal Division’s Capital Case Section are prosecuting the case.
The U.S. District Court has not yet set a sentencing date.
Related court documents and information may be found on the website of the District Court for the Western District of Texas at http://www.txwd.uscourts.gov/ or on http://ecf.txwd.uscourts.gov/
For more information about DOJ’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to DOJ hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.
Texan convicted for multimillion-dollar COVID-19 relief fraudRead the Press Release
HOUSTON – A federal jury convicted a Texas man today for his role in a scheme to fraudulently obtain and launder millions of dollars in forgivable Paycheck Protection Program (PPP) loans the Small Business Administration (SBA) guarantees under the Coronavirus Aid, Relief and Economic Security (CARES) Act, announced U.S. Attorney Alamdar S. Hamdani.
According to court documents and evidence presented at trial, Abdul Fatani, 57, Richmond, conspired with others to submit fraudulent PPP loan applications by falsifying the number of employees and the average monthly payroll expenses of the applicant businesses. In total, the co-conspirators sought over $35 million through more than 80 fraudulent PPP loans. Fatani distributed over $500,000 in fraudulent loan proceeds to his co-conspirators and himself using bogus payroll checks and laundered a portion of the proceeds by transferring the funds from one of his bank accounts to another bank account he controlled.
“Fatani’s pilfering of the PPP fund defrauded the government of funds that were supposed to help people with real businesses, suffering real losses and facing real struggles,” said Hamdani. “This man, instead, had no business and no employees. Just a scheme to defraud. Today’s jury’s verdict shows that his fraudulent actions are not acceptable and will not be tolerated in this district.”
Fatani was convicted of one count of conspiracy to commit wire fraud, one count of wire fraud and one count of unlawful monetary transactions (money laundering). He is scheduled to be sentenced May 8 and faces a maximum penalty of 20 years in prison for conspiracy and wire fraud and 10 years in prison for money laundering.
In addition, 15 other individuals have pleaded guilty to their involvement in the loan fraud scheme.
Hamdani made the announcement along with Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Inspector General Hannibal “Mike” Ware of the SBA Office of Inspector General (OIG); Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency OIG (FHFA-OIG); Special Agent in Charge Mark B. Dawson of Homeland Security Investigations (HSI) Houston Field Office; Acting Inspector General Tyler Smith of the Federal Deposit Insurance Corporation – OIG (FDIC-OIG); and Inspector General J. Russell George of the Treasury Inspector General for Tax Administration (TIGTA).
Assistant U.S. Attorney (AUSA) Rodolfo Ramirez for the Southern District of Texas prosecuted the case along with Trial Attorneys Kate McCarthy, Spencer Ryan, Della Sentilles and Louis Manzo of the Criminal Division’s Fraud Section. AUSA Kristine Rollinson for the Southern District of Texas handled asset forfeiture.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Tes Nez Iah Man Sentenced for Sexual Abuse of a MinorRead the Press Release
PHOENIX, Ariz. – Last week, Verdell Yazzie, 31, of Tes Nez Iah, Arizona, was sentenced by United States District Judge Michael T. Liburdi to 120 months in prison, followed by a lifetime term of supervised release. Yazzie pleaded guilty to one count of Sexual Abuse of a Minor.
Yazzie admitted that sometime between 2011 and 2012, he knowingly engaged in a sexual act with a 12-year-old minor. The sexual abuse took place on the Navajo Nation Indian Reservation where Yazzie is an enrolled tribal member.
The Federal Bureau of Investigation and the Navajo Division of Public Safety conducted the investigation in this case. Assistant U.S. Attorneys Amy Chang and Sharon Sexton, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-20-08102-PCT-MTL
RELEASE NUMBER: 2023-013_Yazzie# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Taylorville, Illinois, Man Sentenced to 20 years in Prison for Possession of More than 50 Grams of Methamphetamine (“Ice”) with the Intent to DistributeRead the Press Release
SPRINGFIELD, Ill. – A Taylorville, Illinois, man, Donald R. Felton, 37, of the 900 block of West Poplar Street, was sentenced on February 7, 2023, to 20 years in prison for possession with intent to distribute 50 or more grams of actual methamphetamine (“Ice”).
At the sentencing hearing, the government presented evidence to establish that beginning in May 2019, law enforcement officers initiated an investigation of Felton for traveling to the St. Louis area to obtain methamphetamine for redistribution in the Taylorville area. On June 8, 2019, officers observed Felton drive his SUV to a rest area near Hamel, Illinois, north of St. Louis, where he met with an unknown man, and then returned to Taylorville. Once Felton returned to Taylorville, officers executed a traffic stop and then searched his SUV. During the search, officers seized 398 grams (nearly one pound) of pure methamphetamine (“Ice”) and a digital scale. They also seized more than $800 in cash from Felton.
In imposing a sentence above the 15-year mandatory minimum, Chief U.S. District Judge Sara Darrow noted the devastating impacts that pure methamphetamine (“Ice”) has had on communities in Central Illinois. She further emphasized Felton’s more than 20-year criminal history, which began in 1996 when he was just 11 years old.
Felton was indicted in June 2019 and was convicted after a two-day jury trial in June 2022.
The statutory penalties for possession with intent to distribute 50 or more grams of actual methamphetamine (“Ice”) are a minimum of 15 years and up to life in prison, up to a $20,000,000 fine, and a minimum of 10 years and up to a life term of supervised release.
“This case represents the Department’s continuing commitment to holding persons accountable for the distribution of Ice methamphetamine and, as Judge Darrow noted, its devastating impact on communities in Central Illinois,” said Assistant U.S. Attorney Timothy A. Bass. “I would also like to thank the local, state, and federal agencies for their cooperative and dedicated efforts in this successful prosecution.”
The Illinois State Police Central Illinois Enforcement Group, Christian County Sheriff’s Office, Taylorville Police Department, and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorneys Bass and Sierra Senor-Moore represented the government in the prosecution.
Strongsville Man Sentenced to Four Years in Prison for Attempted Tax Evasion and Criminal Contempt of CourtRead the Press Release
CLEVELAND – Douglas Smith, 68, of Strongsville, Ohio, was sentenced on Tuesday, Feb. 7, 2023, to four years in prison by U.S. District Judge Dan Aaron Polster after a federal jury convicted him in October 2022 of attempted tax evasion.
Judge Polster sentenced Smith to serve 41 months in prison for the attempted tax evasion conviction and seven months for criminal contempt of court. In addition to the prison sentence, Smith was ordered to pay $726,976.25 restitution and a $19,000 fine for criminal contempt.
According to court documents and evidence presented during the trial, Smith, a licensed dentist in the State of Ohio, attempted to evade paying income taxes for the tax years 2004 to 2012. As part of his efforts, Smith placed his assets, including a home in Columbia Station, into a trust, purchased gold bars and coins, and filed for bankruptcy. Additionally, from 2014 to 2017, Smith again attempted to evade paying income taxes by depositing his paychecks in the bank account of a second holding trust.
During the trial, evidence was presented that showed Smith failed to file an income tax return since 1992 and owed more than $490,000 in back taxes and penalties to the IRS. Court records state that in April 2008 and March 2009, the IRS notified Smith of its intent to collect taxes owed that Smith had failed to pay. Around 2006, Smith began to transfer his assets into a trust that he controlled to evade the collection of taxes and payment of his mortgage.
In October of 2010, court records say that the IRS filed with the Lorain County Recorder’s Office a tax lien against Smith, his trust, and its trustee. In August of 2011, the IRS again sent Smith a letter notifying him that their next action was to recommend administrative seizure and sale of any of his assets to satisfy the federal tax liens.
In January 2012, federal authorities seized approximately $250,000 in cash, gold bars, and gold and silver coins from Smith’s Columbia Station home for non-payment of income taxes to satisfy federal tax liens. After the seizure, Smith purported to transfer all his assets, including his Columbia Station home, to a second trust to defeat collection efforts and avoid foreclosure of his home.
Court documents show that the IRS continued to attempt to collect unpaid income tax from Smith and, around December 2015, served a levy on Smith’s employer. Smith then filed for bankruptcy and made false statements about his assets to shield them from IRS collection actions.
This case was investigated by IRS Criminal Investigations (CI) and was prosecuted by Assistant U.S. Attorney Robert J. Patton.
Spokane Woman Pleads Guilty to Failing to File Federal Income Tax ReturnsRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Rhonda Ackerman, age 54 of Spokane, Washington pleaded guilty to two counts of willfully failing to file federal income tax returns. Ackerman faces a maximum statutory penalty of a 1-year term of imprisonment, a $100,000 fine, followed by a 1-year term of supervised release, the payment of restitution and the costs of prosecution for each count of conviction.
According to court documents, in 2014, 2015 and 2016, Ackerman was employed as a liability claims technician at Spokane County Department of Risk Management. In each year, Ackerman willfully failed to file federal income tax returns reporting gross income. Court documents state the United States will recommend certain sentencing enhancements for Ackerman’s failure to report the source of income exceeding $10,000 in any year from criminal activity and using a minor to commit a crime and abusing a position of public trust. Ackerman can oppose such enhancements.
“Law abiding taxpayers fund critical services that keep our community safe and strong,” said U.S. Attorney Waldref. “Each of us is responsible for filing a tax return when required and for paying the correct amount of tax due. While working for Spokane County, Ms. Ackerman chose to ignore her duty to file and pay taxes and will now face the consequences. I’m grateful to the investigators who diligently investigate tax schemes like Ms. Ackerman’s and ensure that all taxpayers pay their fair share.”
“Ms. Ackerman’s actions hurts all Americans,” said IRS Criminal Investigation (CI) Special Agent in Charge Bret Kressin, “CI will continue its efforts to hold accountable those who feel they’re above the law in partnership with the United States Attorney’s office.”
Senior United States District Judge Rosanna Malouf Peterson will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Ackerman is scheduled to be sentenced on May 16, 2023, at 10:00 a.m. in Spokane, Washington.
In a separate prosecution in Spokane County Superior Court, Ackerman was convicted on one count of First Degree Theft. On January 4, 2023, she was sentenced in the state court matter to serve a year in state prison and required to repay Spokane County $1,378,541 in public funds, which she stole over a decade while employed as a liability claims technician.
This case was investigated by the Internal Revenue Service, Criminal Investigation, with the assistance of the Spokane Police Department. This case is being prosecuted by George J.C. Jacobs, III, Assistant United States Attorney for the Eastern District of Washington.
2:22-CR-22-RMP
Rockport Man Faces up to 30 Years, $1M Fine Following Guilty Plea for PPP Loan FraudRead the Press Release
PORTLAND, Maine: A Rockport man pleaded guilty today in U.S. District Court in Portland to a bank fraud scheme in which he filed nine fraudulent Paycheck Protection Program (PPP) loan applications and received over $1 million in fraud proceeds.
According to court records, Mark X. Haley II, 42, filed fraudulent PPP loan applications at two banks for businesses he controlled. Haley listed false employee and payroll information on each application and submitted fraudulent documents to support the false information to the banks. These documents included false federal employment tax returns, fake timesheets and falsified bank records. As a result of the scheme, Haley fraudulently obtained $1,010,581 in PPP funds. He used some of the funds to make a down payment on a sailboat.
Haley faces up to 30 years in prison and a $1 million fine. He also faces up to five years of supervised release. Haley will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Internal Revenue Service, Criminal Investigations investigated the case.
“While many legitimate businesses used PPP loans to keep their businesses afloat, Mark Haley, motivated by personal greed, set his sails on a scheme to obtain lavish luxuries,” said Joleen Simpson, Special Agent in Charge of IRS- Criminal Investigation’s Boston Field Office. “Today’s plea should serve as a stark reminder that criminals, such as Haley, will be held accountable for their misdeeds.”
Paycheck Protection Plan (PPP): The PPP was a COVID-19 pandemic relief program administered by the Small Business Administration (SBA) that provided forgivable loans to small businesses for job retention and certain other expenses. The PPP permitted participating third-party lenders to approve and disburse SBA-backed PPP loans to cover payroll, fixed debts, utilities, rent/mortgage, accounts payable and other bills incurred by qualifying businesses during, and resulting from, the COVID-19 pandemic. PPP loans were fully guaranteed by the SBA.
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