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23 March 2023
Two KCK Residents Indicted for Fentanyl ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Kansas, man and woman have been indicted by a federal grand jury for their roles in a conspiracy to distribute fentanyl.
Alonso Alfredo Nunez, also known as “Bullet,” 19, and Jaloany Garcia-Medina, also known as “J. Lo,” 20, were charged in a four-count indictment returned by a federal grand jury in Kansas City, Mo., on March 14, 2023. They were arrested today and had their initial court appearance.
The federal indictment alleges that Nunez and Garcia-Medina participated in a conspiracy to distribute 400 grams or more of fentanyl from July 25 to Dec. 18, 2022. In addition to the conspiracy, Nunez and Gacia-Medina are also charged together in one count of distributing fentanyl. Garcia-Medina is also charged with two counts of distributing fentanyl.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Jackson County Drug Task Force and the FBI.
Two Doctors Convicted for Unnecessary Urinalysis Testing SchemeRead the Press Release
A federal jury convicted two doctors today for their involvement in a scheme to commit health care fraud.
According to court documents and evidence presented at trial, Dr. William Lawrence Siefert, 69, of Dayton, Ohio, and Dr. Timothy Ehn, 50, of Union, Kentucky, orchestrated their health care fraud scheme through Northern Kentucky Center for Pain Relief, a pain clinic in Florence, Kentucky. Siefert, a medical doctor, was employed by the clinic, and Ehn, a chiropractor, was the clinic’s owner. Siefert and Ehn engaged in a scheme to bill Medicaid for millions of dollars in medically unnecessary urinalysis testing for their patients, which included urinalysis testing purportedly conducted on faulty machinery.
Siefert and Ehn were each convicted of health care fraud. Ehn was additionally convicted of conspiracy to commit health care fraud. Siefert and Ehn are both scheduled to be sentenced on Sept. 20. Siefert faces a maximum penalty of 10 years in prison. Ehn faces a maximum penalty of 10 years in prison on each of the health care fraud conspiracy and health care fraud counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, DEA Administrator Anne Milgram, Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG), and Kentucky Attorney General Daniel Cameron made the announcement.
The FBI, DEA, HHS-OIG, and Kentucky Medicaid Fraud Control Unit investigated the case.
Trial Attorneys Dermot Lynch, Lindsey Carson, and Assistant Chief Lauren Kootman of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in late 2018, ARPO has partnered with federal and state law enforcement agencies and U.S. Attorneys’ Offices throughout Alabama, Kentucky, Ohio, Virginia, Tennessee, and West Virginia to prosecute medical professionals and others involved in the illegal prescription and distribution of opioids. Over the past three years, ARPO has charged over 115 defendants collectively responsible for issuing prescriptions for over 115 million controlled substance pills. To date, more than 60 ARPO defendants have been convicted. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Timber Thief Sentenced in Connection with Large-Scale Theft from Government LandRead the Press Release
ROANOKE, Va.- One of three men accused of violating the Lacey Act and conspiring with others to illegally remove walnut trees from federally protected land, was sentenced recently in U.S. District Court in Roanoke.
William Riley Stump, 52, of Narrows, Virginia, was sentenced last week to four months in prison. He previously pleaded guilty to one count of illegal removal of timber from federally protected land.
According to court documents, Stump, and co-defendants Derrick Anthony Thompson and Justin Wayne Johnson, conspired to cut and remove black walnut trees located in the Bluestone Project in Giles County, Virginia and transport them to Lindside, West Virginia to sell. The Bluestone Project is a United States Army Corps of Engineers Flood Damage Reduction project designed to inhibit flood-level water flow along both the New River and Bluestone River. The project’s federally-protected area involves 21,000 acres of land that is a fertile habitat for growth of certain trees and plants, including the highly valuable black walnut trees, which are among the largest and longest living hardwood trees in the United States.
The U.S. Forest Service and the Army Corps of Engineers investigated the case.
Assistant U.S. Attorney Michael Baudinet prosecuted the case.
Three San Francisco Residents Plead Guilty to Crimes in Firearms Trafficking SchemeRead the Press Release
SAN FRANCISCO –John Dillon Sembrano, Kelly Mean, and Ryan Vinhnavong Chantha pleaded guilty today to crimes stemming from their respective roles in a firearms trafficking scheme, announced United States Attorney Ismail J. Ramsey and Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) Acting Special Agent in Charge Joshua Jackson. The pleas were accepted by the Hon. Charles R. Breyer, Senior United States District Judge.
On August 9, 2022, a federal grand jury indicted the defendants, charging all three with dealing firearms without a license between August 6, 2020, and November 16, 2021. Sembrano and Mean also were charged with being a felon in possession of a firearm. According to their plea agreements, all three defendants admitted to the charges that were pending against them.
Sembrano admitted in his plea agreement that he engaged in the business of dealing firearms in San Francisco. He admitted that he purchased or otherwise acquired dozens of firearms from a variety of sources and that he had another unlicensed firearms dealer sell them by using advertisements on Snapchat and Instagram. In addition, Sembrano admitted on November 16, 2021, he possessed seventeen firearms—four of which were stolen—that he stored in both the bedroom of his Bayview neighborhood residence and his vehicle. At the time Sembrano possessed the firearms, he already had been convicted of a felony and therefore was not permitted to possess weapons. Sembrano pleaded guilty to one count of dealing firearms without a license, in violation of 18 U.S.C. § 922(a)(1)(A), and one count of being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1).
For his part, Mean admitted that he also engaged in the business of dealing firearms without a license between August 6, 2020, and November 16, 2021, and that he acquired firearms from a variety of sources and then re-sold them. Mean admitted that on November 16, 2021, he possessed two Glock 9 mm caliber pistols with high-capacity magazines in connection with his firearms dealing business. Mean also admitted that he also had been convicted of a felony and was ineligible to possess the firearms. Like Sembrano, Mean pleaded guilty to one count of dealing firearms without a license, in violation of 18 U.S.C. § 922(a)(1)(A), and one count of being a felon in possession of a firearm in violation of 18 U.S.C. § 922(g)(1).
Chantha admitted that he posted advertisements on social media applications Snapchat and Instagram to sell dozens of firearms. Chantha also admitted he had reason to believe that at least two of the firearms he sold would be transferred to a person who could not lawfully possess a firearm or who would use the firearm unlawfully or would dispose of the firearm unlawfully. Chantha pleaded guilty to dealing firearms without a license in violation of 18 U.S.C. § 922(a)(1)(A).
Sembrano and Mean face a maximum statutory sentence of up to ten years in prison and Chantha faces a maximum statutory sentence of up to five years in prison. In addition, as part of sentencing, the court also may order that the defendants serve additional periods of supervised release as well as pay fines and special assessments. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Judge Breyer scheduled Sembrano’s sentencing hearing for June 7, 2023, and scheduled Chantha and Mean’s sentencing hearings for July 12, 2023.
Assistant United States Attorneys George Hageman and Daniel Kassabian are prosecuting the case with the assistance of Kevin Costello. The prosecution is the result of an investigation by the ATF and the San Francisco Police Department.Third Illinois Prison Guard Sentenced to Six Years of Imprisonment Following Guilty Plea to Civil Rights Deprivation Resulting in Bodily Injury and Death and Obstruction ChargesRead the Press Release
SPRINGFIELD, Ill. – Willie Hedden, 43, a former sergeant at the Western Illinois Correctional Center in Mt. Sterling, Illinois, was sentenced on March 22, 2023, to six years’ imprisonment, to be followed by five years of supervised release, for civil rights deprivation resulting in bodily injury and death and obstruction of justice offenses in connection with the death of Larry Earvin, an inmate at the facility.
In December 2019, a federal grand jury returned an indictment against Hedden, of Mt. Sterling; Todd Sheffler, 54, of Mendon, Illinois; and Alex Banta, 31, of Quincy, Illinois, charging each of them with civil rights resulting in bodily injury and death and obstruction offenses.
Hedden accepted responsibility for his crimes by pleading guilty in March 2022 to conspiracy to deprive civil rights and deprivation of civil rights under color of law resulting in bodily injury and death and conspiracy to engage in misleading conduct.
At the sentencing hearing in front of Senior U.S. District Judge Sue E. Myerscough, the government summarized the evidence from those trials. During the trials, the government presented evidence that Hedden, and co-defendants Sheffler, who was a lieutenant, and Banta, who was a correctional officer, participated in the May 17, 2018, assault of Earvin, 65, during their forcible escort of Earvin from the residential housing unit of the prison to the segregation housing unit while he was restrained and handcuffed behind his back and while he posed no physical threat to the defendants or other correctional officers. The government presented further evidence, and Hedden admitted in his plea agreement, that Hedden, as a sergeant and therefore a senior officer to co-defendant Banta, had a duty to intervene to prevent the assault in which he also participated. The assault resulted in serious bodily injury to Earvin, including multiple broken ribs, a punctured mesentery, and other serious internal injuries, and resulted in Earvin’s death in June 2018. After the assault, all three defendants failed to ensure Earvin received medical care and instead sought medical attention for their own minor scratches and thereafter falsified incident reports that they filed with prison officials and lied to the Illinois State Police by denying any knowledge of or participation in the assault.
Also at the sentencing, the government presented evidence that it was part of the culture at the facility to abuse inmates and lie to cover up the abuse. At Sheffler’s and Banta’s prior sentencings, during which Judge Myerscough sentenced each of them to a total of 20 years’ imprisonment, the government summarized the evidence establishing that Banta had inflicted the most serious blows leading to Earvin’s death, including jumping in the air and landing on Earvin with both knees. In recommending a reduced sentence of 10 years’ imprisonment, the government advised the court of Hedden’s acceptance of responsibility and remorse for his crimes.
At the first trial in April 2022, Banta was convicted of all five charges in the indictment. The jury in that joint trial was unable to reach verdicts as to Sheffler, resulting in a retrial in August 2022 at which he was convicted of the same charges.
“At the sentencings, we advised the court that the government’s job is to seek justice and not to win, and that an appropriate sentence in this case should include justice for the victim, Mr. Earvin,” said U.S. Attorney Gregory K. Harris. “We hope that the convictions of Todd Sheffler, Alex Banta, and Willie Hedden and now their imposed sentences provide a measure of justice for Larry Earvin and his family. We also hope it serves as a warning to all those who would abuse governmental power that they will be held accountable under the law. Although the vicious and brutal beating of Mr. Earvin cost him his life, and that is a loss that can never be remedied, all of those persons whom the evidence established violated Mr. Earvin’s constitutional rights and caused his death (Sheffler, Hedden, and Banta) have been and are being held accountable. Our prosecution of this case demonstrates our continued commitment to equal justice under the law and to protecting society’s vulnerable, including those in our prisons.”
Harris added that his office also wanted to express its appreciation to the Federal Bureau of Investigation’s Springfield Office and highlighted the complete cooperation of the Illinois State Police and the Illinois Department of Corrections (IDOC), for their thorough and professional investigation of this most important civil rights matter. Harris also especially recognized and thanked the efforts of FBI Special Agents Angela Bray and Price McCarty for their tireless efforts, without which a just outcome in this matter would not have been possible. In addition, Harris noted the important testimony of IDOC witnesses who initially participated in the cover up of these offenses, but ultimately came forward and told the truth about the events surrounding Mr. Earvin’s death. Holding the defendants accountable for their murder of Mr. Earvin would not have been possible without their testimony. Finally, Harris noted that the actions of a few here had unfairly tarnished the reputations of the men and women in law enforcement who honorably serve their communities with professionalism on a daily basis.
“While the conduct of Willie Hedden and his co-defendants is not characteristic of the vast majority of those working in law enforcement, it unfortunately undermines the efforts of officers who serve with integrity and who bear the responsibility to respect and defend the rights of those under their watch,” said FBI Springfield Special Agent in Charge David Nanz. “Hedden’s actions tarnished the reputation and badge worn proudly by the many hard-working and upstanding officers who abide by their oath. The FBI is unyielding in our commitment to zealously protect the rights of all Americans and to hold accountable anyone charged with safeguarding those rights.”
“ISP thoroughly investigates civil rights violations to hold those who break the law accountable,” said Illinois State Police Director Brendan F. Kelly. “This type of conduct is unacceptable and cannot be tolerated.”
The statutory penalties for each of the civil rights resulting in death charges are up to life imprisonment. The statutory penalties for each of the obstruction of justice charges are up to 20 years of imprisonment.
The case was the result of a joint investigation by the U.S. Attorney’s Office for the Central District of Illinois, the FBI-Springfield Field Office, and the Illinois State Police Division of Internal Investigation, with the cooperation of the Illinois Department of Corrections. Assistant U.S. Attorneys Timothy A. Bass and Eugene L. Miller represent the government in the prosecution.
Tampa Felon Pleads Guilty to Possessing A FirearmRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces that Demetrius Sanchez Mitchell (38, Tampa) has pleaded guilty to possessing a firearm as a convicted felon. Mitchell faces a mandatory penalty of 15 years in prison. He has agreed to forfeit the firearm and ammunition traceable to his offense.
According to court documents, on July 2, 2022, officers with the Tampa Police Department stopped a vehicle being driven by Mitchell. During a search of the vehicle, officers located a loaded 9 mm pistol in the center console. At the time of the stop, Mitchell had multiple prior felony convictions, including convictions for aggravated assault with a deadly weapon, robbery, carjacking, and being a felon in possession of a firearm. As a previously convicted felon, Mitchell is prohibited from possessing a firearm under federal law.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney David P. Sullivan.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make 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.
St. Petersburg Woman Sentenced to 15 Years for Producing Child Sexual Abuse VideoRead the Press Release
Tampa, Florida – U.S. District Judge Mary Scriven today sentenced Emrah Kuc (27, St. Petersburg) to 15 years in federal prison for production, distribution, receipt, and possession of child sexual abuse material, to be followed by 10 years of supervised release, and a requirement to register as a sex offender. The court also ordered Kuc to forfeit a MacBook Pro and four iPhones, which were used in the commission of the offense. The court reserved ruling on the issue of restitution. Kuc had pleaded guilty on December 12, 2022.
According to court documents, after a cyber tip was reported to the National Center for Missing and Exploited Children (NCMEC), law enforcement investigated Kuc’s online activities and recovered multiple electronic devices from Kuc’s residence. A search of those devices revealed images and videos of children being sexually abused. Law enforcement discovered that Kuc was receiving and sharing videos and images of child sexual abuse on various social media applications and had also produced a video of child sexual abuse material with a toddler.
“This sentence demonstrates the unwavering dedication and commitment of HSI special agents who are working tirelessly to protect our most vulnerable,” said HSI Tampa Assistant Special Agent in Charge Kristopher Pagitt. “Our message is clear. HSI will work tirelessly with our law enforcement partners and the United States Attorney’s Office to bring to justice those who prey upon children.”
This case was investigated by Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Ilyssa M. Spergel.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
St. Petersburg Man Arrested for Possession of A Controlled Substance with Intent to DistributeRead the Press Release
Tampa, FL - United States Attorney Roger B. Handberg announces the arrest and filing of a criminal complaint charging Erik Barner (44, St. Petersburg) with one count of possession of a controlled substance with intent to distribute. If convicted, Barner faces up to 20 years in federal prison.
According to the complaint, on February 22, March 1, and March 10, 2023, Barner sold a total amount of 63 grams of crack cocaine to a confidential informant working with the St. Petersburg Police Department. The complaint further alleges that Barner has prior convictions for trafficking in cocaine and possession of cocaine with intent to distribute.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Petersburg Police Department. It will be prosecuted by Assistant United States Attorney Samantha Newman.
A complaint 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.
St. Louis County Man Admits Fraud that Cost $1.6 MillionRead the Press Release
ST. LOUIS – A man from St. Louis County, Missouri on Wednesday admitted defrauding business customers of Lowe’s of over $1 million.
Michael W. Burrus, 44, pleaded guilty in front of U.S. District Judge Matthew T. Schelp to one count of conspiracy to commit bank fraud and two counts of bank fraud. Burrus acknowledged that the conspiracy caused a total loss of $1.6 million.
Burrus admitted that from April of 2020 through November of 2021, he and others obtained stolen information for business customers of Lowe’s, including names, telephone numbers, addresses and credit card account numbers. Burrus used the information to gain access to the credit card accounts of the businesses, applied for additional credit cards and changed the mailing address on the accounts. Burrus then made purchases with the credit cards, all without the knowledge and consent of the businesses. Burrus and others charged more than $1 million worth of merchandise to 40 businesses.
Burrus is scheduled to be sentenced on June 29. Each charge carries a potential penalty of 30 years in prison, a $1 million fine, or both. He will also be ordered to repay the money.
The U.S. Postal Inspection Service and the U.S. Secret Service investigated the case. Assistant U.S. Attorney Edward Dowd III is prosecuting the case.
St. Bernard Man Pleads Guilty to Violating the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – DAWAYNE BOUTAIN, age 29, a resident of Violet, La. pleaded guilty on March 22, 2023 before United States District Judge Lance M. Africk to violating the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans.
According to court records, BOUTAIN arrived at an apartment in Violet as St. Bernard Parish Sheriff Officers were about to execute a search warrant. BOUTAIN was subsequently found in possession of a Ruger magazine with 10 live rounds. He had previously been convicted of four separate felonies and was federally prohibited from possessing guns or ammunition.
Judge Africk set sentencing for July 12, 2023. BOUTAIN faces up to 10 years imprisonment, a fine of up to $250,000, and up to three years of supervised release following any term of imprisonment. He also faces payment of a $100 mandatory special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the St. Bernard Parish Sheriff’s Office and the Federal Bureau of Investigation. The prosecution is being handled by Assistant United States Attorney David Haller of the Violent Crimes Unit.
South Florida Recidivist Fraudster Sentenced to 88 Months for COVID-19 Related Unemployment Insurance ScamRead the Press Release
MIAMI – Marlin Jean, 31, has been sentenced to 88 months in prison for stealing other people’s identities to fraudulently obtain $826,332 in COVID-19 related unemployment benefits from the State of California. The stolen benefits came from federal funds provided to state unemployment agencies to help Americans economically harmed by the global pandemic.
From August 2020 through October 2021, Jean spearheaded a scheme to use the stolen identities of dozens of Florida and California residents (among others) to fraudulently open accounts in their names with the California Employment Development Division (“EDD”). Jean then directed the EDD to mail the unemployment benefits, issued in the form of pre-paid debit cards, to addresses throughout South Florida. Acquaintances collected the cards for Jean to use for his personal benefit. Jean committed this crime soon after completing a federal sentence on a separate 2016 fraud conviction.
Jean pled guilty on December 21, 2022, to one count of possession of fifteen or more unauthorized access devices and one count of aggravated identity theft. In addition to his prison sentence, Jean has been ordered to pay $826,332 in restitution.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and acting Special Agent in Charge Michael E. Buckley, Homeland Security Investigations (HSI) Miami, announced the sentence imposed by U.S. District Judge Roy K. Altman.
HSI Miami investigated the case, with assistance from U.S. Customs and Border Protection and the Miami Beach Police Department. Assistant U.S. Attorney Eduardo Gardea Jr. prosecuted the case. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act provided hundreds of billions of dollars in federal funds for unemployment insurance benefits to be distributed by the states directly to their residents.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-20018.
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South Bend Man Sentenced to 36 Months in PrisonRead the Press Release
SOUTH BEND – Xavier Zebulon Marzette, 39 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after being found guilty during a 2-day jury trial of being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Marzette was sentenced to 36 months in prison followed by 3 years of supervised release.
According to documents in the case, in September of 2019, South Bend Police responded to a disturbance at an apartment complex and received information that some of the participants were armed. Officers stopped a car leaving the scene and found a loaded 9mm handgun inside which they were able to tie to Marzette whose DNA was found on the trigger.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the South Bend Police Department. This case was prosecuted by Assistant United States Attorneys Joel Gabrielse and Katelan Doyle.
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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Shiprock man pleads guilty to sexual abuse, child pornographyRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Allan Wilson pleaded guilty to sexual abuse of a minor in Indian Country and possession of child pornography. Wilson, 64, of Shiprock, New Mexico, and an enrolled member of the Navajo Nation, will remain in custody pending sentencing, which has not been scheduled.
According to his plea, sometime between Oct. 4 and Nov. 28, 2019, Wilson engaged in abusive sexual contact with a minor while she was spending the night in the home Wilson shared with his sister on the Navajo Nation. Wilson admitted that he had been drinking heavily. The victim, Identified as Jane Doe, who is also a member of the Navajo Nation, was less than twelve years old at the time.
During the investigation, the FBI conducted a search of Wilson’s phone. The search revealed pornographic pictures of a minor victim, identified as Jane Doe 2. Wilson admitted that he knew the images were on his phone.
By the terms of the plea agreement, Wilson faces up to 12 years in prison and must register as a sex offender.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department.
Assistant United States Attorney Nicholas J. Marshall is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
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Sex Trafficker Is Sentenced to 21 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Milton Antonio Hasty, a/k/a “Montana,” 31, of Salisbury, N.C., was sentenced to 21 years in prison followed by a lifetime of supervised release today for sex trafficking of a minor, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina, Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Johnny Jennings, of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
"For over five months, Hasty caused an underage girl to engage in commercial sex acts for his own profit. He trafficked the young victim across four states and made her engage in sexual activity even when she was sick, exhausted, and hungry. Hasty’s lengthy sentence reflects the appalling nature of his crime,” said U.S. Attorney King.
“One of the most important missions in the FBI is to protect our children,” said Special Agent in Charge DeWitt. “That is one of the many reasons the FBI devotes a significant amount of resources to help sex trafficking victims recover from the trauma they suffer at the hands of ruthless people like Hasty. Today’s sentence is a stark warning, there is a harsh punishment for those who choose to sacrifice another person’s civil rights and freedom for their own profit.”
According to court documents and today’s sentencing hearing, from January 22, 2019, to June 5, 2019, Hasty sex trafficked an underage female, knowing the victim was a minor, for his financial benefit. Court documents show that Hasty met the victim through a mutual female acquaintance. Upon meeting the victim, Hasty took photographs of the victim, posted escort advertisements online, booked hotel rooms, and arranged the victim’s sexual encounters with customers. For over five months, Hasty and the minor victim traveled to various cities throughout North Carolina, South Carolina, Florida, and Georgia, where the victim engaged in commercial sex acts. Hasty set up sexual encounters for the minor victim twenty-four hours a day and seven-days a week. Hasty kept almost all of the money the victim earned from these commercial sexual encounters.
On October 13, 2021, Hasty pleaded guilty to sex trafficking of a minor. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
U.S. Attorney King praised the FBI, HSI, and CMPD for their investigation of the case and said, “Sex trafficking cases are some of the most important and difficult federal prosecutions that my office handles. I commend the investigative work of our law enforcement partners in this case, which led to Hasty’s substantial prison term.”
Assistant U.S. Attorney Erik Lindahl of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Repeat Sex Offender Sentenced to 20 Years in Prison for Sexually Exploiting Multiple ChildrenRead the Press Release
DETROIT – A Sterling Heights man, who qualifies as a repeat and dangerous sex offender, was sentenced today to 20 years in federal prison for sexually exploiting multiple children, announced United States Attorney Dawn N. Ison.
Ison was joined in her announcement by Angie M. Salazar, Special Agent in Charge of Homeland Security Investigations Detroit Field Office.
Thomas Neil, 42, of Sterling Heights, Michigan, admitted that in July 2020 he pretended to be a teenage female on the Instagram Internet messaging platform. Neil then tricked a 13-year-old male minor into creating sexually explicit images of himself and sending them to Neil.
The subsequent investigation determined that Neil used the same method to victimize approximately sixteen boys beginning as early as 2010. Neil often had the minors engage in behavior that would be humiliating or painful. According to Court records, Neil qualifies under federal sentencing guidelines as a repeat and dangerous sex offender based on his conduct.
Neil was sentenced by United States District Judge Terrence G. Berg.
“This investigation and subsequent prosecution ended this defendant’s repeated sexual exploitation of children. This significant sentence demonstrates that those that seek to harm our children through online exploitation will be held responsible. We will continue to work to make the Internet a safer place for our children,” stated U.S. Attorney Ison.
“Our communities are safer with predators like Neil off our streets, where he can no longer victimize innocent children,” said HSI Detroit Special Agent in Charge Angie M. Salazar. “Our agents and partners will continue to do the work necessary to ensure predators are brought to justice and victims receive the care and assistance they need.”
The case was investigated by Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Christopher Rawsthorne.
Pryor man admits domestic assaultRead the Press Release
BILLINGS — A Pryor man accused of beating a woman on the Crow Indian Reservation admitted to a domestic assault crime today, U.S. Attorney Jesse Laslovich said.
Christian Aaron Monroy, 25, pleaded guilty to an indictment charging him with domestic assault by a habitual offender. Monroy faces a maximum of five years in prison, a $250,000 fine and three years 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. Monroy was detained pending further proceedings.
In court documents, the government alleged that in June 2021, the victim, identified as Jane Doe, was driving a car with Monroy as a passenger. Monroy began to tease and tickle Jane Doe, who accidently hit Monroy in the face with her elbow. Later, with Monroy now driving, Jane Doe threw a bottle of Monroy’s alcohol out of the window. Monroy stopped the car near Chief Plenty Coups Park and began assaulting Jane Doe. The assault continued after the two arrived at Monroy’s home. Jane Doe received treatment for injuries at a Billings hospital. Monroy and Jane Doe were in a dating relationship at the time. Monroy had been convicted in January 2020 and June 2021 of partner or family member assault for assaulting previous girlfriends.
Assistant U.S. Attorney Lori Harper Suek and Special Assistant U.S Attorney Jeanne Torske are prosecuting the case, which was investigated by the FBI and Bureau of Indian Affairs.
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Portland Man Caught Transporting Drugs to Central Oregon Sentenced to 10 Years in Federal PrisonRead the Press Release
PORTLAND, Ore.—A Portland drug dealer with a lengthy criminal history was sentenced to 10 years in federal prison today after he was arrested transporting methamphetamine, cocaine, heroin, and counterfeit oxycodone pills containing fentanyl to Redmond, Oregon.
Jason Robert Melcado, 51, a Portland resident, was sentenced to 120 months in federal prison and four years’ supervised release.
According to court documents, in June 2021, the Bend Police Department received information that Melcado was delivering methamphetamine and heroin to Deschutes County from Portland. Officers soon learned Melcado had an active felony arrest warrant and had recently been investigated by the U.S. Drug Enforcement Administration (DEA).
On July 12, 2021, Bend police determined that Melcado was traveling to Redmond. Upon his arrest, officers found Melcado to be carrying a loaded 9mm pistol with an obliterated serial number and approximately one dozen counterfeit oxycodone pills containing fentanyl. The next day, after obtaining a search warrant, officers found 217 grams of methamphetamine, nearly 1,000 counterfeit pills, and smaller quantities of heroin and cocaine in Melcado’s vehicle.
On August 19, 2021, a federal grand jury in Eugene returned a three-count indictment charging Melcado with possessing with intent to distribute methamphetamine, possessing a firearm in furtherance of a drug trafficking crime, and illegally possessing a firearm as a convicted felon.
On November 22, 2022, Melcado pleaded guilty to possessing with intent to distribute methamphetamine.
This case was investigated by the Central Oregon Drug Enforcement (CODE) Team and DEA. It was prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
The CODE team is a multi-jurisdictional narcotics task force supported by the Oregon-Idaho High-Intensity Drug Trafficking Area (HIDTA) program. CODE includes members of the Bend, Redmond, Prineville, Madras, Sunriver, and Black Butte Police Departments; the Warm Springs Tribal Police Department; the Deschutes, Crook, and Jefferson County Sheriff and District Attorney’s Offices; the Oregon State Police; the Oregon National Guard; DEA; and the FBI.
Peoria Man Sentenced to 35 Years in Prison for Drugs, Weapons OffensesRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, Harold U. McGhee, 48, formerly of the 700 block of East LaSalle Street, was sentenced on March 21, 2023, to a total sentence of 35 years in prison, to be followed by five years of supervised release, for the following offenses:
- Count 1: Possession with Intent to Distribute 50 Grams or More of Methamphetamine
- Count 2: Possession with Intent to Distribute 28 Grams or More of a Mixture or Substance Containing Cocaine Base
- Count 3: Possession with Intent to Distribute Cocaine
- Count 4: Possession with Intent to Distribute Heroin
- Count 5: Possession with Intent to Distribute Fentanyl
- Count 6: Possession of a Firearm in Furtherance of Drug Trafficking
- Count 7: Felon in Possession of a Firearm
- Count 8: Possession of a Firearm in Furtherance of Drug Trafficking
At the sentencing hearing before Senior U.S. District Judge Michael M. Mihm, the United States summarized the evidence from McGhee’s trial, which resulted in a guilty verdict on all counts in December 2022. Law enforcement officers obtained a search warrant in February 2022 for McGhee’s house, car, cell phones, and his person. In the dining room of the house, officers found three bags of crack cocaine totaling 177 grams, a bag containing 60 grams of powder cocaine, a digital scale, sandwich bags, and plastic gloves. In a kitchen cabinet, officers found 442 grams of methamphetamine; 40 grams of a substance containing heroin, fentanyl, and Xylazine; and another digital scale. In McGhee’s living room, officers found $6,770 in cash. In McGhee’s basement, officers found other tools of the drug trade like blenders, a cocaine press, and a vacuum sealer. Under McGhee’s bed, officers found a loaded Glock 9 mm handgun with an extended magazine. The gun had been reported stolen in Evansville, Indiana, in 2019. McGhee admitted that the drugs in the house were his. He also admitted that the gun belonged to him and that he received it as payment for two or three grams of heroin that he sold to someone around February 2021.
At the time of his arrest, McGhee was on federal supervised release for a 2016 conviction for conspiracy to possess heroin with intent to distribute. He has multiple other prior felony convictions, including for possession with intent to distribute cocaine base and aggravated battery. McGhee has remained in the custody of the U.S. Marshals Service since his arrest on February 14, 2022.
McGhee faced a mandatory minimum sentence of 25 years and up to life in prison. Each of the counts individually carried the following possible penalties:
- Count 1: 10 years to life imprisonment; up to a $250,000 fine; and a five-year to life term of supervised release.
- Count 2: Five to 40 years’ imprisonment; up to a $250,000 fine; and a four-year to life term of supervised release
- Counts 3-5: Up to 20 years’ imprisonment; up to a $250,000 fine; and a three-year to life term of supervised release
- Counts 6, 8: Not less than five years’ imprisonment for each count, consecutive to all other counts; maximum fine of $2 million; and not less than a five-year term of supervised release
- Count 7: 15 years to life imprisonment; up to a $250,000 fine and up to a three-year term of supervised release
The case was the result of an investigation conducted by the Peoria Police Department and the Drug Enforcement Administration – Springfield Resident Office, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Marshals Service. Assistant U.S. Attorneys Keith Hollingshead-Cook and Ronald L. Hanna represented the United States in the prosecution.
Orion Township Man Sentenced to 15 Years for Distributing Child PornographyRead the Press Release
DETROIT – An Orion Township man was sentenced to 15 years in federal prison for distributing images of child pornography over the internet for the purpose of trading such images with other child predators, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Arron Robert Muhlitner, 27, was sentenced by United States District Judge David M. Lawson. Muhlitner had pleaded guilty to sending images of minors engaged in sexual acts to another person in order to induce that person to send Muhlitner similar images. Muhlitner used the internet messaging application Kik to trade the child pornography.
Muhlitner’s offense was discovered when an individual he knew found a phone belonging to Muhlitner and reviewed it. That person discovered images of child pornography and a conversation in which Muhlitner bragged about sexually assaulting a child in a manner that was similar to a sexual assault that he had previously been accused of committing. Law enforcement later examined the phone, finding numerous images of child pornography and multiple instances in which Muhlitner bragged about sexually assaulting children or expressing a desire to engage in sex acts with children. In total, Muhlitner’s phone contained 212 images and 58 videos of child pornography.
“Child pornography victimizes the most vulnerable and innocent in our community and protecting children from predators remains a critical mission for our office,” stated U.S. Attorney Ison. “Our community is now safer with this defendant’s lengthy sentence.”
“The significance of this sentence underscores the importance of keeping innocent children safe from dangerous predators and serves as a warning to those individuals who prey upon the most vulnerable in our society,” said James A. Tarasca, Special Agent in Charge of the FBI Detroit Field Office. “I would like to thank our law enforcement partners for their critical support in this investigation. The FBI continues to dedicate resources to the investigation and prosecution of sexual predators who commit crimes against children.”
“This person and his disgusting and abhorrent criminal behavior with children has rightfully been held accountable for his actions,” Oakland County Sheriff Michael Bouchard said. “I greatly appreciate the teamwork with our federal partners and the U.S. Attorney’s Office in bringing this case to closure.”
This case was investigated by the Federal Bureau of Investigation and the Oakland County Sheriff’s Office and was prosecuted by Assistant United States Attorneys Jeremiah Smith and Christopher Rawsthorne.Orange County Felon Sentenced for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas– An Orange, Texas man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Michael Lawrence Geral, Jr., 35, pleaded guilty on Oct. 4, 2022, to being a felon in possession of a firearm and was sentenced to 50 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on Dec. 13, 2021, Geral was stopped for a traffic violation by officers with the Orange Police Department. As officers spoke with Geral, they smelled the odor of burnt marijuana coming from the vehicle. Officers searched the vehicle and found a firearm which Geral admitted was his. Geral is a previously convicted felon and prohibited from possessing firearms.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Orange Police Department and prosecuted by Assistant U.S. Attorney Russell James.
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Ophthalmology Practice Agrees to Pay over $2.9 Million to Settle Kickback AllegationsRead the Press Release
SHERMAN, Texas – Ophthalmology provider group, Arlington Ophthalmology Association, P.L.L.C. d/b/a Kleiman Evangelista Eye Centers (“K&E”), with offices located in Arlington, Dallas, Plano, Southlake, Mount Pleasant, and Gun Barrel City, Texas, has agreed to pay $2,902,505 to resolve False Claims Act allegations that it offered and paid kickbacks to optometrists to induce referrals of patients who were candidates for cataract surgery in in violation of the False Claims Act and Anti-Kickback Statute, announced Eastern District of Texas U.S. Attorney Brit Featherston.
“The Eastern District of Texas is committed to looking beyond labels and examining providers' actual conduct. Although co-management can be a legitimate practice, merely applying that label does not give providers carte blanche to remunerate referring providers in order to secure business,” said U.S. Attorney Brit Featherston. “We are committed to investigating any financial incentives offered to secure referrals, which cloud providers' medical judgement, and violate the Anti-Kickback Statute.”
“Paying kickbacks to providers incentivizes doctors to treat patients based on illegitimate financial gain, rather than the patient's needs and best interests,” said Korby Harshaw, acting Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will not tolerate kickback arrangements, which undermine medical responsibility, put patients at risk, and can waste taxpayer dollars.”
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
K&E routinely engaged in the practice of co-management of cataract surgery patients with optometrists who referred patients to K&E. Patients who undergo cataract surgery require post-operative monitoring and care. When post-operative care is rendered by another provider other than the surgeon, such as an optometrist outside the surgeon’s practice, this practice is generally referred to as co-management.
The settlement announced today resolves certain allegations that K&E’s remunerative arrangement with referring optometrists who co-managed patient care with K&E violated the Anti-Kickback Statute. The United States contends K&E provided remuneration to referring optometrists when it paid referring optometrists money untethered to actual non-Medicare and non-Medicaid covered services for referring cataract patients who received premium intraocular lenses (IOLs) or laser-assisted cataract surgery, guaranteed the automatic return of patients referred, provided optometrists free continuing education courses, rewarded top referring optometrists with expensive dinners, and invited referring optometrists, their family, and staff to Texas Rangers stadium games at the company suite. The fees paid to referring optometrists for patients who received premium lenses or laser-assisted cataract surgery were in addition to the reimbursement already received by the optometrists from Medicare and Medicaid for performing post-operative cataract care and were not tied to or commensurate with actual post-operative services specifically attributed to premium IOLs or laser-assisted cataract surgery rendered, and thus constituted unlawful remuneration under the Anti-Kickback Statute.
As part of the settlement, K&E has agreed to cooperate with the Department of Justice’s investigations of and litigation against other parties involved in the alleged violations of law.
This investigation originated from a civil lawsuit filed by a Relator, or whistleblower, under the qui tam provisions of the False Claims Act, which allows private parties to bring suit on behalf of the government for false claims and to share in any recovery. The whistleblower in this matter will receive a percentage of this civil settlement.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
This civil settlement was the result of a coordinated effort between the U.S. Attorney’s Office, Eastern District of Texas, and the United States Department of Health and Human Services, Office of Inspector General. This matter was handled by Assistant U.S. Attorneys James Gillingham, Adrian Garcia, and Betty Young, Investigator Ann Williams, and Paralegal Christina Cate.
The claims resolved by this settlement is allegations only, and there has been no determination of liability.
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Operator of Tax Return Preparer Business Sentenced to Prison for Filing False Income Tax ReturnsRead the Press Release
LAS VEGAS – A Las Vegas tax return preparer was sentenced today by U.S. District Judge Andrew P. Gordon to 15 months in prison followed by one year of supervised release for preparing false tax returns for clients and causing the returns to be filed with the IRS.
Brenda Eleana Reyna (38) pleaded guilty in September 2022 to one count of aiding and assisting in the preparation and filing of a false tax return and one count of making and subscribing a false tax return.
According to court documents and admissions made in court, Reyna — the operator of USA Tu Casa Tax Services, a tax return preparation business in Las Vegas — fraudulently claimed deductions and misrepresented to her clients the contents of their returns that she would file on their behalf. For tax years 2015 through 2019, Reyna caused at least $2,750,000 in tax loss to the IRS. In addition, when preparing her own tax returns, Reyna fraudulently filed returns that did not accurately report her income. For tax years 2015 through 2020, Reyna failed to report approximately $606,663 in net income, causing at least $169,866 in tax loss to the IRS.
“During the ongoing tax season, tax return preparers are entrusted by their clients to accurately prepare and file tax information,” said United States Attorney Jason M. Frierson for the District of Nevada. “Together with IRS Criminal Investigation, we are committed to investigating and charging those who act improperly and attempt to defraud the IRS.”
“Ms. Reyna not only cheated the IRS, but she victimized her clients as well,” said Albert Childress, Special Agent in Charge, IRS Criminal Investigation. “She claimed larger refunds on her client’s behalf so that she could steal some of the refund for herself. Tax preparers should take note that if they attempt to defraud the IRS and their clients, they will be caught and held accountable.”
IRS Criminal Investigation investigated the case. Assistant United States Attorney Tony Lopez prosecuted the case.
If you suspect tax fraud, you can report a tax return preparer for misconduct to the IRS at www.irs.gov/tax-professionals/make-a-complaint-about-a-tax-return-preparer.
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North Providence Man Sentenced to Thirty Years in Federal Prison for Sexual Exploitation of Minors, Possession of Child PornographyRead the Press Release
PROVIDENCE – A North Providence man who previously admitted to a federal judge that he coerced and sexually assaulted two minor females, assaults that he recorded and retained on his cell phone, was sentenced today to thirty years in federal prison, announced United States Attorney Zachary A. Cunha.
In pleading guilty to two counts of sexual exploitation of a minor and one count of possession of child pornography, Francis Scott, 42, admitted that on February 14, 2017, while falsely posing as a ride-share driver, he offered a ride to a 15-year-old girl who requested that she be brought to her Providence school. Rather than driving her to the school, Scott drove the girl to a secluded area behind some commercial buildings where, after taking her cell phone from her, he coerced and sexually assaulted her. Scott recorded the assault on his cell phone.
Additionally, Scott admitted to coercing and sexually assaulting a 17-year-old female months earlier. Scott admitted that after he offered the 17-year-old female a ride, he provided her with marijuana and sexually assaulted her. The victim told police that, in addition to providing her with marijuana, Scott provided her with alcohol, and that she felt drugged before passing out. Scott recorded the sexual assault on his cell phone.
“The degradation, exploitation, and depravity represented by this defendant’s abuse of his victims - and his recording of those acts for his own obscene enjoyment, are contemptible,” remarked U.S. Attorney Cunha. “Today’s sentence should serve notice that we will bring to bear every law enforcement resource to address this kind of appalling abuse of children.”
According to court documents, the Providence Police Major Crimes Unit, the Providence Police Special Victims Unit, and the FBI’s Child Exploitation Unit also discovered videos allegedly filmed by Scott of him engaging in sex acts with numerous unidentified women, some of whom appear in the videos to be unconscious or semi-conscious.
Scott was sentenced today by U.S. District Court Judge William E. Smith to 360 months of incarceration in federal prison to be followed by 20 years of federal supervised release. Additional charges against Scott are pending in Rhode Island state court.
The case in U.S. District Court was prosecuted by Assistant U.S. Attorney Denise M. Barton.
United States Attorney Cunha thanks the Rhode Island Attorney General’s Office for their assistance in preparing the case charged in federal court.
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New York Doctor Who Performed Unnecessary Back Surgeries as Part of Trip-And-Fall Fraud Scheme Sentenced to 36 Months in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that SADY RIBEIRO, a New York-licensed pain management doctor, was sentenced today to 36 months in prison for his participation in a scheme to obtain fraudulent insurance reimbursements and other compensation from fraudulent trip-and-fall accidents. U.S. District Judge Sidney H. Stein imposed today’s sentence.
U.S. Attorney Damian Williams said: “Sady Ribeiro abused his professional license and broke his vow to do no harm by performing scores of medically unnecessary, invasive surgeries to increase the value of fraudulent trip-and-fall lawsuits. In carrying out the scheme, Ribeiro and his co-conspirators preyed upon the most vulnerable members of society – many of whom were poor, drug addicts, or homeless – in order to enrich themselves. Ribeiro now faces serious penalties for his callous crime.”
According to the Indictment, the Superseding Information, evidence presented in court, and statements made in court:
RIBEIRO, among others, was involved in an extensive fraud scheme through which fraud scheme participants defrauded businesses and insurance companies by staging trip-and-fall accidents and filing fraudulent lawsuits arising from those staged trip-and-fall accidents.
The fraud scheme participants recruited individuals (the “Patients”) to stage or falsely claim to have suffered trip-and-fall accidents at particular locations throughout the New York City area (the “Accident Sites”). In the course of the fraud scheme, scheme participants recruited more than 400 Patients. Members of the fraud scheme often recruited individuals who were extremely poor as Patients. For example, it was common for Patients to ask for food when they would appear for their intake meetings with the lawyers. Many of the Patients did not have sufficient clothing to keep them warm during the wintertime and had poor-quality shoes. Members of the fraud scheme also recruited Patients who were drug addicts, and it was common for scheme participants to recruit Patients from homeless shelters in New York City.
In the beginning, scheme participants would instruct Patients to claim they had tripped and fallen at a particular location, when in fact, the Patients had suffered no such accidents. Eventually, at the direction of the lawyers who filed fraudulent lawsuits on behalf of the Patients, scheme participants began to instruct Patients to stage trip-and-fall accidents, i.e., to go to a location and deliberately fall. Common Accident Sites used during the fraud scheme included cellar doors, cracks in concrete sidewalks, and purported “potholes.”
After the staged trip-and-fall accidents, Patients were referred to specific attorneys who would file personal injury lawsuits (the “Fraudulent Lawsuits”) against the owners of the Accident Sites and/or insurance companies of the owners of the accident sites (the “Victims”). The Fraudulent Lawsuits did not disclose that the Patients had deliberately fallen at the accident sites or, in some cases, had not fallen at all. During the course of the fraud scheme, the defendants, together with others known and unknown, attempted to defraud the Victims of more than $31,000,000.
The Patients were also instructed to receive ongoing chiropractic and medical treatment from certain chiropractors and doctors, including RIBEIRO. The fraud scheme participants advised the Patients that if they intended to continue with their lawsuits, they were required to undergo surgery. As an incentive to getting surgery, the recruited Patients were offered a payment typically between $1,000 and $1,500 after they completed surgery (“Post-Surgery Payments”). Patients generally were told to undergo two surgeries.
Doctors in the fraud scheme, including RIBEIRO, were expected to, and in fact did, conduct these surgeries, such as discectomies, regardless of the legitimate medical needs of the Patients. RIBEIRO performed discectomies, among other medical procedures, on more than 200 Patients. To maximize his patient base, RIBEIRO paid participants cash kickbacks in exchange for patient referrals.
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In addition to the prison term, RIBEIRO, 72, of New York, New York, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Williams also thanked the National Insurance Crime Bureau for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Nicholas Chiuchiolo, Nicholas Folly, Danielle Kudla, and Alexandra Rothman are in charge of the prosecution.
New Orleans Man’s Failure to Pay Employment Taxes Results in Federal Conviction and SentenceRead the Press Release
NEW ORLEANS, LOUISIANA – JOEY J. STEVENSON, age 41, from New Orleans, was sentenced to 5 years probation for failing to pay employment taxes for his business, Community Care Solutions, Inc to the IRS, announced U.S. Attorney Duane A. Evans.
STEVENSON was indicted and pled guilty to failure to pay over employment taxes owed to the IRS, in violation of 26 U.S.C. § 7202. According to court documents, STEVENSON owned and operated Community Care Solutions, Inc. From 2015 through 2019, STEVENSON withheld over $500,000 in Medicare, Social Security, and income taxes from his employees’ paychecks, but failed to pay that money to the IRS. STEVENSON also failed to pay an additional $254,181.21 in taxes for the employer’s share of Medicare and Social Security taxes. In total, STEVENSON failed to pay $796,077.41 in taxes owed to IRS in connection with Community Care’s employees.
The Honorable Ivan L.R. Lemelle sentenced STEVENSON to 5 years probation, restitution in the amount of $796,077.41 to the IRS, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of IRS Criminal Investigations. Assistant United States Attorney Nicholas D. Moses of the Financial Crimes Unit is in charge of the prosecution.
New Jersey Man Sentenced to 14 Months of Imprisonment for Human Smuggling ConspiracyRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont stated that Jose Alvarez, 31, of Trenton, New Jersey, was sentenced to 14 months of imprisonment today in United States District Court by United States District Judge Christina Reiss. Alvarez previously pleaded guilty to conspiracy to transport foreign nationals in furtherance of their illegal entry into the United States. Judge Reiss also ordered that Alvarez serve three years of supervised release after he serves his term of imprisonment.
According to court records, at about 3:00 a.m. on September 25, 2022, Alvarez was arrested near East Berkshire, Vermont after he had picked up four Guatemalan citizens who had just entered the United States illegally. Three of the foreign nationals stated each expected to pay $2000 to $3000 to Alvarez or his associates as a fee to be smuggled into the United States. Alvarez admitted to soliciting others to engage in the transportation of foreign nationals and to coordinating payment and pick up logistics with other members of the conspiracy.
U.S. Attorney Nikolas P. Kerest credited the agents of the United States Border Patrol for their investigation and apprehension of Alvarez and their continued efforts to prevent the exploitation of foreign nationals by human-smuggling organizations.
This matter was investigated by the United States Border Patrol. Assistant U.S. Attorney Michael Drescher was the prosecutor. Alvarez was represented by Michael Straub, Esq., of Burlington.
New Castle Man Sentenced to over Five Years in Prison for Drug and Gun CrimesRead the Press Release
PITTSBURGH – Jgenus Steele was sentenced to 63 months in prison for committing fentanyl, heroin, and crack cocaine trafficking and firearm crimes, Acting United States Attorney Troy Rivetti announced today.
Steele, age 23 of New Castle, Pennsylvania, was sentenced by United States District Judge Robert J. Colville. Judge Colville ordered Steele to serve three years of supervised release following his prison sentence.
Steele’s sentence is a result of a Lawrence County Drug Task Force investigation in 2019 and 2020. Steele was on parole at that time as a result of a prior conviction for aggravated assault. The Task Force made a controlled purchase of 12.44 grams of crack directly from Steele in December 2019 in New Castle. The Task Force thereafter served a search warrant at Steele’s apartment in New Castle in February 2020. A mixture containing 2.68 grams of fentanyl and heroin was located inside the apartment along with, among other things, five loaded pistols and $1,255.00 in drug trafficking proceeds.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Lawrence County Drug Task Force and the Federal Bureau of Investigation conducted the investigation in this case. This case was prosecuted 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 gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department of Justice 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.
Navajo man pleads guilty to sexual abuse of a minor in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Bryon Yazzie, Jr. pleaded guilty to sexual abuse of a minor, sexual abuse, and aggravated sexual abuse in Indian Country. Yazzie, 21, of Tohatchi, New Mexico, and an enrolled member of the Navajo Nation, will remain in custody pending sentencing, which has not been scheduled.
According to the plea agreement, between August 2020 and continuing to November 2020, Yazzie engaged in sexual acts with a minor who had attained the age of 12 but had not yet attained the age of sixteen. Yazzie was nineteen years old at the time.
Yazzie faces up to 15 years in prison for sexual abuse of a minor and any term of years up to life for sexual abuse and aggravated sexual abuse. Upon his release from prison, Yazzie must register as a sex offender.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case. Assistant United States Attorney Caitlin L. Dillon is prosecuting the case.
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Navajo man pleads guilty to second degree murderRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Evan Haceesa pleaded guilty to second degree murder. Haceesa, 29, of Nageezi, New Mexico, and an enrolled member of the Navajo Nation, will remain in custody pending sentencing, which has not been scheduled.
According to the plea agreement, on Aug. 28, Haceesa attacked Jane Doe at his residence in Nageezi on the Navajo Nation. Haceesa punched Jane Doe in the face until she lost consciousness and kicked her several times. Upon arriving at the home, a Navajo Police Department officer responding to a report of domestic violence found the victim unclothed and unresponsive, lying in a wheelbarrow outside the house. Jane Doe died as a result of her injuries.
Haceesa faces up to life in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department. Assistant United States Attorney Matthew McGinley is prosecuting the case.
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Multi-Convicted Violent Felon Pleads Guilty to Possessing FirearmsRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Shawn Lanier Lowman, Jr. (23, Tampa) today pleaded guilty to possessing a firearm as a convicted felon. Lowman faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been set.
According to court documents, at approximately 11:00 p.m. on November 1, 2022, Lowman was a passenger in a black BMW 328i sedan that fled after officers from the Tampa Police Department (TPD) had attempted to conduct a traffic stop near the intersection of East Sligh Avenue and North Central Avenue, in the Old Seminole Heights neighborhood of Tampa. A short time later, TPD officers located the same black sedan in the Sulphur Springs neighborhood of Tampa, near the intersection of North Klondyke Street and East Bird Street. The car was eventually parked on the side of the road, and three occupants, including Lowman, exited the vehicle.
Two TPD officers attempted to make contact with Lowman, but Lowman fled on foot through the neighborhood evading the officers. A TPD Air Service helicopter positioned above Sulphur Springs used a Forward Looking InfraRed (“FLIR”) camera to track Lowman as he fled through the neighborhood and into the backyard of a residence where he hid in a shed. The helicopter’s FLIR camera was able to see the thermal signature of Lowman inside the shed. TPD officers converged on the shed and arrested Lowman. Inside the shed, the officers located 10.9 grams of bagged cocaine. During a search of Lowman, officers recovered three pills which tested positive for oxycodone. The officers then retraced Lowman’s path and found a backpack containing two loaded firearms: (1) a Glock 9mm pistol; and (2) a Smith & Wesson Model 659 9mm pistol (loaded with 14 rounds of ammunition, including one in the chamber). The backpack also contained a digital scale, an extended magazine (11 rounds) and a black ski mask. Latent fingerprints belonging to Lowman were located on the slide of the Glock pistol and two of Lowman’s latent fingerprints were found on the magazine of the 9mm Smith & Wesson pistol. In an interview with officers following his arrest, Lowman admitted that the fingerprints found on the firearms belonged to him and that he had possessed the firearms.
Lowman had previously served approximately six years in state prison for armed carjacking with a deadly weapon and armed burglary in July 2017. As a convicted felon, he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Tampa Police Department, the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney David W.A. Chee.
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.
Moving assault weapons into Mexico lands former cartel leader’s son in prisonRead the Press Release
BROWNSVILLE, Texas – Osiel Cardenas-Salinas Jr. has been sent to federal prison following his conviction of smuggling goods from the United States into Mexico, announced U.S. Attorney Alamdar S. Hamdani.
Cardenas aka Osiel Cardenas Jr., 31, Brownsville, pleaded guilty Aug. 2, 2022, to attempting to purchase 10 assault rifles to export into Mexico. Cardenas is the son of former head of the Gulf Cartel Osiel Cardenas-Guillen who was convicted and previously sentenced to 25 years in federal prison.
Today, U.S. District Judge Fernando Rodriguez Jr. ordered Cardenas-Salinas to serve 109 months in federal prison to be immediately followed by three years of supervised release and to pay a $20,000 fine. At the hearing, the court heard additional evidence that described Cardenas-Salinas’s role as a supervisor/manager. In handing down the sentence, the court noted Cardenas-Salinas had two firearms related cases in his criminal history and continued to engage in additional criminal activity with the smuggling of weapons, repeatedly engaging in violations involving firearms. At the hearing, Cardenas-Salinas apologized to the court and asked for mercy.
On April 22, 2021, Cardenas and others attempted to purchase five AK-47 type rifles and five AR-15 type rifles.
The undercover operation took place in a Brownsville store parking lot. Cardenas had instructed another individual to cross into Mexico to pick up the $15,000 for the weapons and to inform him when the weapons transaction had been completed.
At the time of his plea, Cardenas admitted he committed the crime while on supervised release for a previous felony.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigation conducted the investigation. Assistant U.S. Attorney Elena Salinas prosecuted the case.
Michigan Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
BECKLEY, W.Va. – Kyle L. Thomas, also known as “Trip,” 23, of Detroit, Michigan, was sentenced today to one year and 10 months in prison, to be followed by three years of supervised release, for distribution of fentanyl.
According to court documents and statements made in court, on October 18, 2021, Thomas sold a quantity of fentanyl to a confidential informant in Amigo, Raleigh County. Thomas sold quantities of fentanyl on two other occasions in Raleigh County.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Beckley/Raleigh County Drug and Violent Crime Unit (BRCDVCU).
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Andrew D. Isabell prosecuted the case.
The case is a result of a months-long investigation, dubbed “Operation Wolverine Carousel,” into the widespread distribution of heroin and fentanyl in Raleigh and Fayette counties.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-29.
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Man Sentenced to 10 Years After Being Caught with Fentanyl, MethamphetamineRead the Press Release
ST. LOUIS – U.S. District Judge Rodney W. Sippel on Thursday sentenced a man caught with methamphetamine and fentanyl to 10 years in prison.
Antoine Demetrius Meeks, 31, was caught by the O’Fallon Police Department with 208 grams of methamphetamine and 26 grams of fentanyl during an August 19, 2022 traffic stop.
Meeks pleaded guilty in U.S. District Court in St. Louis in December to possession with intent to distribute controlled substances. He was on federal supervised release at the time of the drug offense after a conviction in a 2015 case for being a felon in possession of a firearm.
The case was investigated by the O’Fallon Police Department, the St. Ann Police Department and the Drug Enforcement Administration.
Man Gets Prison Time for Meth TraffickingRead the Press Release
KANSAS CIY, KAN. – A Kansas man who led police on a high-speed chase was sentenced to 195 months in prison for drug trafficking.
According to court documents, in October 2022, Russell Loomis, 50, of Kansas City, Kansas, pleaded guilty to one count of possession with intent to distribute more than 50 grams of methamphetamine.
In September 2019, Loomis went to a home in Kansas City, Kansas, to deliver approximately 86 grams of methamphetamine in what was a controlled buy set up by the Drug Enforcement Administration (DEA). Loomis drove away from the residence, and a short time later the Kansas City, Missouri police attempted to pull him over. Loomis refused to stop and initiated a chase in which multiple law enforcement agencies and an aerial unit joined in the pursuit. Loomis struck two DEA vehicles, a Kansas Highway Patrol vehicle, and a Kansas Department of Transportation dump truck before eventually losing control and crashing. He was then taken into custody. Law enforcement officers found 150.6 grams of methamphetamine and guns in his vehicle.
The Drug Enforcement Administration (DEA), the Kansas City, Kansas Police Department, the Kansas Highway Patrol, and the Olathe Police Department investigated the case.
Assistant U.S. Attorneys Faiza Alhambra, Trent Krug, and Michelle McFarlane prosecuted the case.
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Long-Time Sex Trafficker Sentenced to More than 15 Years in PrisonRead the Press Release
NEWS RELEASE SUMMARY – March 23, 2023
SAN DIEGO – Kevin Lamont Beal of San Diego was sentenced in federal court today to 188 months in prison for knowingly coercing and enticing a teenage girl to engage in commercial sex acts.
According to court records, Beal has a long criminal past involving state convictions for pimping and pandering from 2012 through 2019.
A complaint was filed against Beal in April 2021, charging him with sex trafficking of underage girls and adult females. Beal pleaded guilty to federal charges in January 2022. In his plea agreement, Beal admitted that he transported underage girls and women and provided them to customers for commercial sex acts, which took place in California and elsewhere from December 2016 through August 2018. During this time, Beal used his cellular telephone to entice and coerce an underage girl (while she was 16 and 17 years old) for the purpose of having her engage in commercial sex acts and prostitution in San Diego County and elsewhere. As part of his efforts to entice and coerce this underage girl, Beal continued to communicate with her by text message and through social media for almost two years.
As part of his guilty plea, Beal also admitted that he recruited, transported, and provided another underage girl (while she was 16 and 17 years old) for the purpose of her to engage in commercial sex acts and prostitution from December 2016 through March 2017. As part of his human trafficking activities, Beal instructed this underage girl to meet with customers, commonly referred to as “johns,” by walking the street, commonly referred to as the “blade” (an area known for prostitution activities). Beal also caused online advertisements of the underage girl to be posted on various websites for customers solicit her for commercial sex acts.
Lastly, Beal admitted he recruited, enticed, transported, and provided an adult female for the purpose of her to engage in commercial sex acts and prostitution from April 2018 through May 2018. As part of his human trafficking activities, Beal also instructed the adult female to meet customers by walking the “blade” and by posting online advertisements offering her to customers for commercial sex acts. During this time, Beal used force against the adult female by striking her multiple times in the face causing serious bodily injuries. Beal admitted he used a combination of force and coercion to cause the adult female to engage in commercial sex acts.
“No city is immune from traffickers seeking to entice and coerce underage and adult victims to engage in sex trafficking,” said U.S. Attorney Randy Grossman. “Today’s sentence sends a strong message that we will continue to work together with our local, state, and federal partners to protect our community’s most vulnerable victims from these heinous crimes by prosecuting their traffickers.” Grossman thanked the prosecution team and members of the San Diego Human Trafficking Task Force for their excellent work on this case.
“Sex trafficking is an abhorrent crime with long-lasting consequences,” said San Diego FBI Special Agent in Charge Stacey Moy. “The FBI is committed to the unceasing pursuit of sex traffickers and to the rescue and recovery of the children and adults they victimize. These criminals can only be stopped with the collaboration of our law enforcement partners and the public."
Beal has been detained in custody since his arrest in April 2021.
At the sentencing hearing today, U.S. District Todd W. Robinson not only imposed the 15-year prison sentence, but also ordered Beal to serve a 10-year term of supervised release and to pay a $5,000 mandatory penalty assessment pursuant to the Justice for Victims of Trafficking Act. Beal will also be required to register as a sex offender under the Sex Offender Registration and Notification Act. Judge Robinson also ordered the criminal forfeiture of a blue, 2015 Maserati Ghibli, $2,420 in U.S. currency, and other personal luxury items by Gucci and Versace. These personal luxury items were previously ordered as restitution to one of Beal’s trafficking victims in May 2022.
DEFENDANT Case Numbers: 21CR1565-TWR
Kevin Lamont Beal Age: 29 San Diego, CA
SUMMARY OF CHARGES
Coercion and Enticement of a Minor, in violation of Title 18, United States Code, Section 2422(b)
Maximum Penalties: Life in prison; mandatory Sex Offender Registration; a maximum term of supervised release of life; a $5,000 mandatory penalty assessment pursuant to the Justice for Victims of Trafficking Act; mandatory restitution to the victims.
INVESTIGATING AGENCIES
San Diego Human Trafficking Task Force, which consists of:
- Federal Bureau of Investigation
- California Department of Justice
- California Department of Corrections & Rehabilitation – Parole
- California Highway Patrol
- ICE/Homeland Security Investigations
- National City Police Department
- San Diego City Attorney’s Office
- San Diego County District Attorney’s Office
- San Diego County Probation Department
- San Diego County Sheriff’s Department
- San Diego Police Department
- The United States Attorney’s Office, Southern District of California
Lincoln Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Dillen Lynn Marzolf, 30, of Lincoln, Nebraska was sentenced on March 23, 2023, by Senior United States District Judge John M. Gerrard to 15 years in federal prison for possession with the intent to distribute 50 grams or more of actual methamphetamine with a prior serious felony drug conviction. Following the prison term, Marzolf will serve 10 years on supervised release. There is no parole in the federal system.
In late September of 2021, a confidential informant, working with the Lincoln/Lancaster County Narcotics Task Force, bought a total of approximately 19 grams of methamphetamine from Marzolf at his apartment in Lincoln. On October 1, 2021, investigators obtained a search warrant for his apartment. Marzolf was stopped after leaving the apartment prior to the execution of the warrant and was found in possession of a baggie containing 99 blue pills marked “M30.” He also a had total of about 1 ¼ ounces of marijuana, more than $1,000 in cash and a digital scale. Marzolf was wearing an ankle monitor and said he was on parole. During the search of his apartment, four baggies of methamphetamine and numerous items of drug paraphernalia were found. Testing at the Nebraska State Patrol Crime Lab showed a total of approximately one pound of methamphetamine mixture. Two of the baggies were tested for purity and were found to contain at least 200 grams, (approximately seven ounces) of actual methamphetamine. Marzolf admitted the methamphetamine belonged to him. Marzolf said he had about five customers and had last sold methamphetamine earlier that day. He said the pills were fentanyl which he also intended to sell, and some of the cash came from drug sales.
At the time of his arrest, Marzolf was on parole from an Adams County conviction for distribution of marijuana. He was sentenced to 10 to 15 years in 2012 for that crime. His state parole was revoked following his arrest in the federal case. Marzolf’s federal sentence will run consecutive to (after) the remainder of his state sentence.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Key Deer Killer Sentenced in Federal CourtRead the Press Release
MIAMI – Wendy C. Kilheffer, 77, of Big Pine, Florida was sentenced today in Key West federal district court for violating the Endangered Species Act by shooting and killing a Key deer.
On November 16, 2022, several Florida Keys residents discovered a Key deer lying on the ground with its antlers entangled in rope. Kilheffer arrived on the scene and -- despite having zero veterinary training or related experience -- decided that the deer was in distress and would not survive. Kilheffer went to her vehicle, secured a high caliber handgun, shot the deer in the head at close range, and killed it. According to witnesses, the deer’s death was not immediate.
When law enforcement later questioned Kilheffer, she denied even being at the scene. Video surveillance and eyewitness statements refuted her lie.
Kilheffer pled guilty and now has a federal conviction. She must serve one year of probation, pay a $4,000 criminal fine, complete 100 hours of community service, and strictly abide by all laws and regulations involving human interaction with the Key deer.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and acting Resident Agent in Charge Robert Register of the U.S. Fish & Wildlife Service (USFWS), Office of Law Enforcement, Miami Field Office, made the announcement.
Congress enacted the Endangered Species Act (“ESA”) to conserve endangered and threatened species and the ecosystems upon which they depend. The term “endangered species” means any species, or part thereof, which is in danger of extinction throughout all or a significant portion of its range. Title 16, United States Code, Section 1532(6). The Florida Key deer is included within the list of designated endangered species, set forth in Title 50, Code of Federal Regulations, Section 17.21(c)(1).
U.S. Fish & Wildlife Service Miami investigated this case, with assistance from Florida Fish & Wildlife Conservation Commission (FWC) and the National Fish & Wildlife Service Forensics Laboratory in Ashland, Oregon. Assistant U.S. Attorney Thomas Watts-FitzGerald prosecuted this case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-10023.
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Kentucky Man Sentenced to Federal Prison for Attempted Sexual Exploitation of A MinorRead the Press Release
NASHVILLE – A Walton, Kentucky man was sentenced yesterday in U.S. District Court in Nashville to 15 years in federal prison for attempting to coerce and entice a 13-year-old girl to engage in unlawful sexual activity, announced U.S. Attorney Henry C. Leventis.
Thomas Niemeyer, 43, was also ordered to serve 10 years of supervised release at the conclusion of his prison sentence.
Niemeyer was arrested in July 2021 in Covington, Kentucky, after initiating conversations with who he believed to be a 13-year-old female through online dating applications. Niemeyer was actually communicating with an undercover FBI agent who was conducting online proactive child exploitation investigations on apps known to be used by minors and individuals such as Niemeyer, who have a sexual interest in children.
During the conversations, Niemeyer inquired about the 13-year-old’s sexual experiences, discussed engaging in sexual activity with her, requested nude photographs, sent sexually explicit photographs and videos, and mailed the undercover agent a sexual device.
A federal grand jury in Nashville indicted Niemeyer in August 2021 and he pleaded guilty in October 2022.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Monica R. Morrison.
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Kentucky Man Pleads Guilty to Sex Offense Against A MinorRead the Press Release
BECKLEY, W.Va. – Richard L. Barksdale, 69, of Goshen, Kentucky, pleaded guilty today to traveling in interstate commerce to engage in illicit sexual conduct with a minor.
According to court documents and statements made in court, on July 18, 2022, Barksdale contacted an individual he found on a fetish website he believed to be the single mother of two girls, ages 11 and 13, in Beckley, West Virginia. Barksdale admitted that he began communicating with the woman in phone calls and text messages, telling the woman that he wanted to engage in sexual activity with both of her daughters. Barksdale further admitted that he discussed methods to avoid the minor children getting pregnant, such as by putting them on birth control pills.
Barksdale arranged to rent a hotel room in Beckley where he would meet the two minor females to engage in sexual activity with both of them. He also arranged to bring gift cards and candy to make the minors more comfortable with him. On September 11, 2022, Barksdale traveled from his Kentucky residence to the Beckley hotel, where he was arrested.
Barksdale is scheduled to be sentenced on July 7, 2023, and faces a maximum penalty of 30 years in prison, five years and up to a lifetime of supervised release, and a $250,000 fine. Barksdale must also register as a sex offender.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) Violent Crimes Against Children Task Force.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Jennifer Rada Herrald is prosecuting the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-207.
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Justice Department Recognizes One-Year Anniversary of the PAVE Task ForceRead the Press Release
The Justice Department today is joining interagency partners across the Biden-Harris Administration in highlighting the progress made to ensure that every American who buys a home has the same opportunities to build generational wealth through homeownership. The White House released a roundup of highlights of what the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) accomplished over the last year.
The Department of Justice is an engaged member of the Task Force, working to reduce barriers to homeownership and erode the influence of bias on the entire U.S. economy.
“The Department of Justice celebrates PAVE’s many significant accomplishments over the past year to identify and address illegal discrimination in appraisals,” said Associate Attorney General Vanita Gupta. “For too long, appraisal bias has created yet another obstacle to homeownership and all the benefits homeownership offers, including financial stability and a path to developing intergenerational wealth. The department remains steadfast in its commitment to combat appraisal discrimination and to promote fair and accurate appraisals for all families, regardless of their race or ethnicity.”
One year ago today, the PAVE – led by U.S. Department of Housing and Urban Development (HUD) Secretary Marcia L. Fudge and White House Domestic Policy Advisor Ambassador Susan Rice – released the PAVE Action Plan, the most wide-ranging set of commitments ever announced to advance equity in the home appraisal process.
More information on the PAVE Task Force’s progress and work can be found in this fact sheet.
Jury Convicts Former Harrisonville Man of Social Security Fraud in Second TrialRead the Press Release
KANSAS CITY, Mo. – A former Harrisonville, Mo., man was convicted at trial today after his testimony in a previous trial for Social Security fraud resulted in an additional charge of perjury being filed against him.
Michael Sylvara, 37, who currently lives in Ozark, Mo., but lived in Harrisonville at the time of the offense, was found guilty of one count of Social Security fraud and one count of perjury.
Sylvara was originally indicted for Social Security fraud. Sylvara, who oversaw his disabled father’s Social Security benefits from 2016 to 2019, converted $42,369 of his father’s benefits to his own use. Sylvara testified in his own defense during a trial in October 2022, which resulted in a hung jury.
Sylvara was subsequently charged in a superseding indictment on Nov. 17, 2022. The superseding indictment contains the original charge of Social Security fraud and adds the perjury charge.
Sylvara was designated as the representative payee for his father, who is now deceased. As the representative payee, Sylvara was legally obligated to use all of the benefit payments to meet his father’s needs. Evidence introduced during the trial indicated that Sylvara instead converted some of his father’s benefit payments for his personal use to pay his utility, insurance and student loan bills, as well as his realtor association fees.
Sylvara also presented testimony that he knew was false while under oath during his first trial in October 2022. Sylvara attempted to justify multiple cash withdrawals (totaling over $23,000) he made from the representative payee account. He claimed under oath he had an agreement with Social Security that he could be paid $14 an hour for taking care of his father. Subsequent investigation showed there is no such agreement and there never has been.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for an hour and a half before returning guilty verdicts to U.S. District Judge Roseann Ketchmark, ending a trial that began Tuesday, March 21.
Under federal statutes, Sylvara is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Courtney R. Pratten and Special Assistant U.S. Attorney Bradley Cooper. It was investigated by the Social Security Administration.
Jackson Man Pleads Guilty to Assaulting a U.S. Postal Service EmployeeRead the Press Release
Jackson, Miss. – A Jackson man pled guilty to assaulting a federal employee, announced U.S. Attorney Darren J. LaMarca.
According to court documents and statements made in open court, Rodrick Jeems, 37, punched a U.S. Postal Service employee after asking the employee for five dollars. At the time, the employee was collecting mail from bins located outside of the Medgar Wiley Evers U.S. Post Office in Jackson. Jeems was apprehended by a Capitol Police Officer as he attempted to flee on foot.
Jeems is scheduled to be sentenced on June 30, 2023; he faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The United States Postal Inspection Service investigated the case.
Assistant U.S. Attorneys Bert Carraway and Adam Stuart prosecuted the case.
Illinois Man Sentenced to 188 Months in PrisonRead the Press Release
FORT WAYNE – Adam Henry, 33 years old, of Naperville, Illinois, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to possession with intent to distribute a controlled substance, announced United States Attorney Clifford D. Johnson.
Henry was sentenced to 188 months in prison to be followed by 6 years of supervised release.
According to documents in the case, on September 28, 2019, an Allen County Airport Authority police officer observed Henry driving erratically through the parking lot of the Fort Wayne International Airport. He was stopped as he left the airport and officers discovered that Henry was driving an airport rental car but had no driver’s license. A subsequent search of car Henry had rented revealed a handgun under the driver’s seat and several baggies of different pills/drugs to include Xanax and 53.9 grams of cocaine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with the assistance of the Fort Wayne Police Department, the Fort Wayne Allen County Airport Authority – Public Safety Department, and the Indiana State Police. The case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
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Idaho Springs Man Pleads Guilty to Executing Million Dollar PPP Fraud SchemeRead the Press Release
Denver - The United States Attorney’s Office for the District of Colorado announces Edward Baker Harrington, age 59, of Idaho Springs, pleaded guilty today to wire fraud and money laundering.
According to the plea agreement, from April 2020 through September 2021, the defendant submitted a number of fraudulent Paycheck Protection Program (PPP) applications to seven banks and one lender on behalf of business entities that he purportedly controlled. These PPP applications contained a number of false and fraudulent certifications and representations. The defendant obtained more than $1,000,000 in PPP loans as a result of the scheme. He falsely represented that all PPP funds would be used to pay eligible business expenses, when, in fact, the proceeds were used for his personal benefit to purchase goods and property, including real estate and vehicles. The defendant also sought loan forgiveness for PPP loans by submitting loan forgiveness applications in which he made false representations and certifications regarding his businesses and his compliance with the PPP program rules, including rules related to the eligible uses of PPP loan proceeds.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted in March 2020 and was designed to provide emergency financial assistance to Americans dealing with the economic impact of the COVID-19 pandemic. The CARES Act created PPP, a program administered by the Small Business Administration that provided loans to small businesses to retain workers, maintain payroll, and certain other expenses consistent with PPP rules.
A wire fraud conviction carries with it a prison term of up to 20 years and a fine of not more than $250,000. A money laundering conviction carries with it a prison term of up to 10 years and a fine of not more than $250,000.
This case is being investigated by Internal Revenue Service – Criminal Investigation. This case is being prosecuted by Assistant United States Attorneys Nicole Cassidy and Martha Paluch.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Case Number: 22-cr-00324
Houston resident sent to prison for soliciting sexually-explicit videos of minorsRead the Press Release
HOUSTON - A 25-year-old Houston resident has been ordered to federal prison after his convictions of production and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Austin Gray Roberson pleaded guilty Jan. 27, 2022, to three counts of sexual exploitation of a minor and one count of possession of child pornography.
Today, U.S. District Judge Kenneth M. Hoyt sentenced him to 180 months on each of the sexual exploitation of a minor counts and 120 months for possessing child pornography. They will run concurrently for a total 180-month-term of imprisonment. The court heard additional evidence as to how Roberson had reached out to 18 different minor males requesting them to send naked photos and videos of themselves to him. In imposing the sentence, Judge Hoyt also considered how Roberson’s conduct affected one of those minors through his victim impact statement.
Roberson was furthered ordered to pay restitution to the victims and will serve 15 years on supervised release following the completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to the internet. He will also be required to register as a sex offender.
“As a parent myself, it scares me to know how easy it is for sexual predators to misrepresent themselves and target children,” said Hamdani. “In today’s online world, we must remember to remain vigilant to help protect our kids. I hope this sentence makes these criminals think twice before trying to solicit our most vulnerable for their sick desires.”
In June 2018, authorities in California had executed a search warrant at a residence as a result of a child pornography investigation, at which time they seized several electronic devices. Forensic analysis revealed that individual had been communicating with others on the social media application Kik for the purpose of obtaining and trading child pornography. The investigation revealed Roberson was one of those individuals.
Roberson ultimately admitted he would portray himself on Kik as a minor female named “Kayla” that he would use to target minor males between 12 and 17 years of age. Roberson sent nude selfies and videos of a suspected minor female masturbating in an attempt to get those minor males to reciprocate.
Authorities ultimately discovered 18 minor victims from whom Roberson solicited child pornography.
Law enforcement also conducted a forensic exam on Roberson’s cellphone and found 3,765 images and 746 videos of young children engaged in sexually explicit conduct. The images and videos include children under the age of 12, bondage, bestiality and acts of violence such as the penetration of the victims.
Roberson was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI conducted the investigation.
Assistant U.S. Attorney Kimberly Ann Leo is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Greenville Man Sentenced to Prison for Illegal Possession of a GunRead the Press Release
Oxford, Mississippi – A Greenville man was sentenced yesterday to 40 months in prison for possession of a firearm by a convicted felon.
According to court documents, Justin Simmons, 23, of Greenville, Mississippi, previously pled guilty to possession of a firearm by a convicted felon. He was sentenced by Chief U.S. District Judge Debra Brown on Wednesday to serve 40 months in prison, followed by 3 years of supervised release.
U.S. Attorney Clay Joyner of the Northern District of Mississippi and Greenville Police Chief Marcus Turner made the announcement.
This case was investigated by the Greenville Police Department. Assistant U.S. Attorney Robert Mims prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Grand Island Man Sentenced for Firearm and Drug Trafficking CrimesRead the Press Release
United States Attorney Steven Russell announced that Mark A. Barraza Saenz, 22, of Grand Island, Nebraska, was sentenced today in federal court in Lincoln, Nebraska, for possessing with intent to distribute 50 grams or more of methamphetamine and possessing a firearm in furtherance of that drug trafficking crime. Senior United States District Judge John M. Gerrard sentenced Barraza Saenz to 72 months’ imprisonment on the drug charge and a consecutive 60 months’ imprisonment on the firearm charge, for a total sentence of 132 months. There is no parole in the federal system. After his release from prison, he will begin a five-year term of supervised release.
On October 12, 2021, in the early morning hours, a Merrick County Sheriff’s Office deputy observed a silver sedan heading east bound in Central City, Nebraska. Based on driving infractions, the deputy initiated a traffic stop. Two males were in the sedan, including Barraza Saenz in the front passenger seat. Barraza Saenz admitted to smoking marijuana approximately an hour earlier and consented to the deputy searching him. While searching Barraza Saenz, the deputy found two bundles of methamphetamine. The deputy then searched the trunk of the sedan and found a bag containing methamphetamine. Under the bag was an American Tactical M1911 Military .45 caliber semi-automatic pistol with the magazine containing one bullet next to it. The methamphetamine from Barraza Saenz’s person and the vehicle was laboratory tested and confirmed to be approximately 209 grams of methamphetamine.
This case was investigated by the Federal Bureau of Investigation and Merrick County Sheriff’s Office.
Government Contractor Pays $742,500 to Settle False Claims Act Allegations in Obtaining Contracts Reserved for Eligible Small BusinessesRead the Press Release
ALEXANDRIA, Va. – Advanced Systems Technology & Management, Inc. (AdSTM), a government contractor specializing in science and technology-based engineering and consulting located in McLean, and AdSTM’s former CEO, Bing Ran, also of McLean, agreed to pay $742,500 to settle allegations that AdSTM used alter ego companies to allow AdSTM to obtain contracts “set aside” for contractors participating in the Small Business Administration’s (SBA’s) 8(a) Program, after AdSTM was no longer eligible under the 8(a) Program.
“It is vital to the purpose of the SBA’s programs that government contracts set aside for disadvantaged small businesses are issued only to those companies that are eligible. EDVA encourages anyone to come forward with information about instances where the small business set aside program has been victimized,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia.
The settlement arises in connection with a lawsuit filed by a former AdSTM employee under the whistleblower provision of the False Claims Act. United States ex rel. Guan v. AdSTM, et al. The settlement resolves allegations that AdSTM and Ran conspired to fraudulently induce federal agencies to award multiple small business set-aside contracts to Qi Tech and Foredata for which they were not eligible because they were controlled by AdSTM and Ran after AdSTM was no longer eligible under the 8(a) program because of its size. Among other criteria, to be eligible to participate in the SBA’s 8(a) Program, a company must be (1) a small business, (2) at least 51% owned by U.S. citizens who are socially and economically disadvantaged, and (3) the management and daily operations of the company must be controlled by one or more individuals that are both socially and economically disadvantaged.
“We are very pleased with today’s announcement,” said Special Agent in Charge L. Scott Moreland of the Department of the Army Criminal Investigation Division’s Major Procurement Fraud Field Office. “This settlement, which is the result of great cooperative efforts among our law enforcement partners, is yet another example that misuse of the government contracting process will not go unchecked.”
A whistleblower suit, or qui tam action under the False Claims Act, is commenced by an individual, known as a “relator,” filing a complaint under seal in the U.S. District Court, and providing a copy of the complaint and other evidence to the U.S. Attorney’s Office. The United States then has an opportunity to investigate the claims. The False Claims Act provides whistleblowers with a share of the government’s recovery. The relator here, a former AdSTM employee, will receive a share of the False Claims Act settlement.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the Department of Defense Office of Inspector General, Defense Criminal Investigative Service’s Mid-Atlantic Field Office, the Nuclear Regulatory Commission Office of the Inspector General, U.S. Army Criminal Investigation Division Major Procurement Fraud Field Office, and the Defense Contract Audit Agency.
The matter was handled by Assistant U.S. Attorney Kristin Starr.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information from the civil lawsuit can be accessed on PACER by searching for No. 1:18-cv-795 (E.D. Va., Alexandria Div.).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Ghanaian National Sentenced to Prison for Role in Romance Fraud SchemeRead the Press Release
HUNTINGTON, W.Va. – Abdul Inusah, 32, of Ghana, was sentenced today to two years in prison, to be followed by three years of supervised release, for his role in a Huntington-based scheme that defrauded individuals in multiple states through the use of false online personas. Inusah was also ordered to pay $128,000 in restitution.
After three days of trial, a federal jury found that Inusah was part of a conspiracy that targeted victims using false personas via email, text messaging, online dating websites and social media platforms. From at least January 2018 through at least December 2019, the scheme participants sought to induce victims into believing they were in a romantic relationship, friendship, or business relationship with the various false personas. The victims were persuaded to send money for a variety of false and fraudulent reasons for the benefit of the false personas.
One false persona, “Miarama,” was used to induce an Alabama resident into providing $106,000 via wire transfers and cashier’s checks. The amount included $48,000 to pay overdue taxes on a nonexistent gold inheritance in Ghana and $21,000 wired to Bitsav Supply LLC, a shell company set up by Inusah. Another false persona, “Grace,” persuaded a Washington resident to wire funds so “Grace” could maintain her South African cocoa plantation and move to the United States to marry the victim. Other victims of the false personas included residents of Ohio and Florida.
The federal jury found Inusah guilty of receipt of stolen money, conspiracy to commit money laundering, and two counts of wire fraud on August 12, 2022.
“Perhaps more than others involved, Abdul Inusah understood the scope of the criminal conspiracy and that it was exploiting innocent and often vulnerable victims,” said United States Attorney Will Thompson. “The defendant even recruited others to help commit this fraud, while taking steps to conceal his own involvement.”
U.S. Attorney Thompson made the announcement and commended the investigative work of the United States Secret Service, the United States Postal Inspection Service, the Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG), the West Virginia State Police and the South Charleston Police Department.
“I also commend Assistant United States Attorney Kathleen Robeson and former Assistant United States Attorney R. Gregory McVey and the trial team for prosecuting the case and securing the guilty verdicts,” Thompson said.
United States District Judge Robert C. Chambers imposed the sentence.
The public is encouraged to report potential online fraud activity or scams at https://www.ic3.gov.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. 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 hotline is staffed 10 a.m. to 6 p.m. Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-70.
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Former owner of Savannah restaurant sentenced to prison, ordered to pay more than $400,000 restitution in tax caseRead the Press Release
SAVANNAH, GA: The former owner of a Savannah pizza franchise has been sentenced to federal prison and ordered to pay restitution for failing to remit more than $400,000 in payroll taxes.
Melissa Metts Johnson, 48, of Statesboro, Ga., was sentenced to 18 months in prison after pleading guilty to Failure to Account for and Pay Over Employment Taxes, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker ordered Johnson to pay restitution of $428,203.48 and to serve one year of supervised release upon completion of her prison term.
There is no parole in the federal system.
“For several years, Melissa Johnson withheld taxes from her employees’ paychecks and kept that money for her own enrichment rather than remit it to the IRS,” said U.S. Attorney Steinberg. “She’s now being held accountable for stealing from the U.S. Treasury at the expense of other law-abiding taxpayers.”
As described in court documents and testimony, Johnson was the sole owner of LHMS Inc., which operated a franchise of the Mellow Mushroom pizza restaurant in Savannah. In her guilty plea, Johnson acknowledged that her company withheld payments for federal income taxes, Medicare, and Social Security from employees’ paychecks from 2015 through 2019, but then failed to pay all of those taxes to the IRS.
“Altogether,” the plea agreement says, the “LHMS, Inc. to failed to account for and pay over $428,203.48 in payroll taxes.”
“Melissa Johnson’s employees were dedicated over the years, keeping her business running, and she repaid them by stealing their employment taxes,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Employers have a responsibility to their employees to pay over federal income taxes withheld from their payroll checks to the IRS. IRS Criminal Investigation will continue to investigate dishonest employers who evade their responsibilities and abuse their employees’ trust.”
The case is being investigated by IRS-Criminal Investigation, and prosecuted for the United States by Assistant U.S. Attorney Jennifer J. Kirkland.